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DOCUMENT RESUME
04554 - [B0125026]
Mead to Minimize Risks of Using Salt Caverns for the Strategic
Petoleum Reserve. IND-78-25; 8-178205. January 9, 1978. 13 pp.
Report to Secretary, Department of Energy; by Monte Canfield,
Jr., Director, Inergy and Minerals Div.
Issue Area: Energy: Role of Fossil Fuels in Meeting Puture Needs
(1609).
Contact: Energy ad minerals Div.
Budget Function: Natural Resources, Environnent, and Energy:
Energy (305).
Organization Concerned: Pderal Energy Administration.
Congressional Relevance: House Committee on Interstate &,
Foreign Commerce; Senate Committee on Energy and Natural
Resources.
Authority: Energy Policy and Conservation Act (P.L. 94-163).
The Energy Policy and Conservation Act requires the
Federal Energy administration (PEA) to create a Strategic
Petroleum Reserve to pr&ect against interruptions in energy and
petroleum product suplies. Oil for the reserve will be stored
in caverns within salt doses and in salt and limestone mines.
PEA has identified nine potential sites--four salt doses, three
salt mines, and two limestone mines--with capacities totaling
402 million barrels. Three of the four salt domes have been
acquired through condemnation. Findings/Conclusions: The PEA
perm.tted the previous operators of the caverns at Bayou Choctaw
and lest Mackberry, Louisiana, to continue production of brine
after the caveris were tested and certified as suitable for
crude cil storage. In order to preclude potential problems
associated with continued brining at Bayou Choctaw and Vest
Hackberry, the PEA should negotiate with the the chemical
companies to eliminate brining operations. PEA officals believe
that there is no need to control brinct production or to retest
the caverns after brining is completed since they consider
cavern damage to be low risk. Two tests are necessary to
determine cavern suitability--a sonar survey and a casing and
cavern pressure test--vhich would take about 2 weeks per cavern
and cost $15,000 per cavern, a total of $90,000.
Recommendations: The secretary of Energy should: determine the
feasibility of amending the condemnation agreements to eliminate
continued brining operations, institute a formal system for
controlling the brining operations if the agreements are not
amended to assure that brine is not being produced in excess of
safe rates of production and operating pressures, and have the
caverns retested after brining has been completed. (RES)](ViewImageLocal?handle=hein.gao/gaobaawkj0001&div=1&collection=&method=preview&ext=.png&size=3)