AD-Ai44 658 EAST COAST REGIONAL PETROLEUM RESERVE (RPR) VOLUME 2 i/3POTENTIAL STORAGE SI..(U) ARMY ENGINEER DIV HUNTSVILLEAL R E SHANNON ET AL. 30 SEP 80 HNDTR-8-45-SP-VOL-2

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REGIONAL PETROLEUM RESERVEIEAST COASTIl

VOLUME 11

POTENTIAL STORAGE SITESCONCEPT DESIGN

JtUTIMON STATEMFN

ApDpoved for pulblic eso

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REPORT DOCUMENTATION PAGE READ INSTRUCTIONSBEFORE COMPLETING FORM

I. REPORT NUMBER 2. GOVT ACCESSION NO. 3. RECIPIENT'S CATALOG NUMBER

HNDTR-80-45-SP VOL II

4. TITLE (and Subtitle) 5. TYPE OF REPORT & PERIOD COVERED

REGIONAL PETROLEUM RESERVE EAST COAST. VOL II. _

POTENTIAL STORAGE SITES CONCEPT DESIGN.G. PERFORMING ORG. REPORT NUMBER

7. AUTHOR(e) 8. CONTRACT OR GRANT NUMBER(&)

ROBERT E. SHANNON, RICHARD M. WYSKIDA,JAMES D. JOHANNES

9. PERFORMING ORGANIZATION NAME AND ADDRESS 10. PROGRAM ELEMENT. PROJECT, TASKAREA & WORK UNIT NUMBERS

U.S. Army Engineers Division, HuntsvilleP.O. Box 1600, West StationHuntsville, AL 35807-4301

I. CONTROLLING OFFICE NAME AND ADDRESS 12. REPORT DATE

30 September 198013. NUMBEROF PAGES

197 PGS14. MONITORING AGENCY NAME & ADDRESS(II dlfferent from Controlling Office) IS. SECURITY CLASS. (of thie report)

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DISTRIBUTION STATEMENT A: APPROVED FOR PUBLIC RELEASE: DISTRIBUTIONUNLIMITED.

17. DISTRIBUTION STATEMENT (of the abstract entered In Block 20, If different from Report)

III. SUPPLEMENTARY NOTESMANAGERIAL AND TECHNICAL SUPPORT WAS PROVIDED BY THE

FOLLOWING ELEMENTS OF THE U.S. ARMY CORPS OF ENGINEERS: HUNTSVILLE DIVISION,NEW ENGLAND DIVISION, NORTH ATLANTIC DIVISION, SOUTH ATLANTIC DIVISION, ANDWATERWAYS EXPERIMENT STATION.

19. KEY WORDS (Continue on reveree aide it neceesary and identify by block number)

PETROLEUM PRODUCTS RESERVES (ENERGY) SITE SELECTION

STORAGE FUEL OIL NEW ENGLAND

NEW YORK NEW JERSEY20. AUST1ACT CCalthsae m rover"e side f nec 1ry md Identify by block number)

VOLUME I PRESENTS A DETAILED DESCRIPTION OF THE PROCEDURES AND RESULTS OF ASITE IDENTIFICATION AND EVALUATION PROCESS UNDERTAKEN IN SUPPORT OF THEREGIONAL AND NONCONTIGUOUS PETROLEUM RESERVE (RPR) PROPOSAL. THE CRITICALFACTORS AND RATING GUIDANCE USED FOR INITIAL SCREENING ARE DESCRIBED INAPPENDIX B. POTENTIAL SITES, ACCEPTED DURING THE INITIAL SCREENING, WERESUBJECTED TO A FINAL SCREENING WHERE THEY WERE POINT-SCORED ON THE BASIS OFAN EVALUATION OF SPECIFIC CHARACTERISTICS. THE SCORING SYSTEM, AS ESTABLISHED

DD I F 3 147 EDITION OF INOV 65I OBSOLETE UNCLASSIFIED

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UNCLASSIFIED

SECURITY CLASSIFICATION OF THIS PAGE(Whn Dta Ented)

BY THE REVIEW AND SUMMATION TEAM, IS DESCRIBED IN APPENDIX C. SITE SCORES ANDRANKING UNDER EACH OF THE THREE STORAGE MEDIA ARE SHOWN IN APPENDIX D.

VOLUME II PROVIDES CONCEPTUAL DESIGN DRAWINGS, CONSTRUCTION COST ESTIMATES,AND A LIFE CYCLE COST ECONOMIC ANALYSIS CONDUCTED TO IDENTIFY, ANDQUANTIFY, UNIQUE ECONOMIC ADVANTAGES THAT MAY BE ATTRIBUTABLE TO THE CANDIDATESITES.VOLUME III PROVIDES THREE RELATED ENGINEERING STUDIES: (1) DEVELOPMENT OF

CONDUCTIVE AND CONVECTIVE HEAT TRANSFER CONCEPTS FOR NO. 6 RESIDUAL OIL. (2)FEASIBILITY OF HEATING RESIDUAL OIL STORAGE FACILITIES WITH SOLAR ENERGY. (3)AN ANALYSIS ON LEASE VS PURCHASE OF STORAGE FACILITIES.

UNCLASSIFIEDSECURITY CLASSIFICATION OF THIS PAGE(Ien Data Entered)

IIHNDTR-80-45-SP

EAST COAST

REGIONAL PETROLEUM RESERVE(RPR)

VOLUME II

POTENTIAL STORAGE SITESCONCEPT DESIGN -

Prepared by

US Army Corps of EngineerHuntsville Division

L.

30 September 1980

HNDTR-80-45-SP

TABLE OF CONTENTS

CHAPTER PAGE

1 Conceptual Design Drawings forPotential Storage Sites ... ........... . .1

2 Construction Cost Estimates for

Potential Storage Sites ... ........... ... 67

3 Life Cycle Cost, Economic Analysis ....... ... 127

APPENDIXI

A Life Cycle Cost, Yearly Analysis ........... .. A-1

L

iii

HNDTR-80-45-SP

FOREWORD

Identification and evaluation of potential storage sites forthe Regional Petroleum Reserve were completed and submitted to DOE inMay 1980 as Volume I of a 3-volume set. In support of Volume I, con-cept designs, construction cost estimates, and life cycle costs havebeen prepared and comprise Volume II. Volume III contains three relatedungineering studies:

(1) Development of conductive and convective heat transfer con-cepts for No. 6 residual oil

(2) Feasibility of heating residual oil storage facilities withsolar energy

(3) An analysis on lease vs purchase of storage facilities

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CONSTRUCTION COST ESTIMATES

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HNDTR-80-45-SP

CHAPTER 3

LIFE CYCLE COST, ECONOMIC ANALYSIS

3-1. INTRODUCTION

This chapter pertains to the life cycle cost economic analysisconducted to identify, and quantify, unique economic advantages that maybe attributable to the candidate sites. The analyses include investment,operations, and maintenance costs.

3-2. ASSUMPTIONS

a. General Assumptions

(1) The life cycle consists of 20 years of storage afterthe initial fill.

(2) The candidate No. 6 fuel oil sites with associatedoptions are in Table 3-1.

(3) The costs are displayed in constant first quarter CY80dollars, escalated or inflated dollars, and discounted or present worthdollars. Escalation and discount rates of 10 percent were used for com-parative purposes only.

(4) The product cost of initial fill is assumed to be thesame for each comparable site and, therefore, does not affect the analysis.

(5) Investment costs are composed of real estate, environ-mental impact statement, site survey, core borings, design and construc-tion costs.

b. Drawdown and Refill

East Coast No. 6 fuel oil distribution is made to the eastcoast users by waterborne means. For this analysis, it is assumed thatNo. 6 fuel oil is distributed to the users during drawdown and willbe replaced by the recipients when conditions return to normal. Ineffect No. 6 fuel oil is traded rather than sold. A drawdown isassumed to occur at 5-year intervals.

c. Operations and Maintenance

(1) For operational and maintenance purposes, a No. 6 fueloil site is to be operated and maintained on a self-supporting basis.

127

HNDTR-80-45-SP

Where existir.g security or fire protection facilities and personnel areavailable to support a site, such resources are considered in the analy-ses. Local electrical power rates were also considered. The cost ofspare parts was assumed to be seven percent of the 'onstruction costsof the active functional equipment of each site.

(2) For all options studied, the basiz manpower level wasdetermined for the standby mode of operation and maintenance. Any addi-tional manpower required for embargo response was assumed to be satisfiedthrough the use of overtime.

TABLE 3-1

STORAGE CAPACITY TANKS MINE (M)

SITE 10 MMB 20 MMB Steel (ST) Concrete (CC)

Portsmouth, VA X X X

Canaveral, FL X X

Calverton, NY X X X

Portland, ME X X

Northville, NY X X X

West Deptford II, NJ X X

Harpswell, ME X X X

Brooksville, ME X X

West Deptford IV, NJ x x

128

HNDTR-80-45-SP

d. Investment and Salvage

(1) Construction costs used are those shown for each sitein Volume II, Chapter 2. Real estate costs are also shown for the varioussites.

(2) Design costs were based on six percent of the construc-tion cost. The EIS, site survey, core borings, etc., were estimated tobe $689,134.

(3) Twenty years of operational site usage is not expectedto appreciably degrade the site's functional use. Its salvage value isprimarily determined by the demand for such a site at the time of salvage.Thus, no salvage value is considered for any of the sites.

3-3. DISCUSSION

a. Life Cycle Profile

A typical life cycle mission profile for a No. 6 fuel oilsite is depicted in Table 3-2. Site operation begins in year sevenwith an embargo drawdown anticipated every fifth year. Upon completionof 20 years of site operation, salvage operations will be completedduring the following year.

b. Life Cycle Costs

Summary life cycle costs are presented in Table 3-3. Alldiscount and escalation rates utilized were 10%. Discount calculationswere performed in accordance with AR 11-28, "Economic Analysis and Pro-gram Evaluation For Resource Management," and the escalation rate wascompounded over the life of the sites.

More detailed analysis data are contained in Appendix A,pages 1-60. Pages 1-15 are the Constant 1980 Dollar Analysis sheets,pages 16-30 the Present Worth Analysis sheets, p ,,is 31-45 the 10%Discounted/10% Escalated Dollars Analysis sheets, and pages 46-60 thethe 10% Escalated Dollars Analysis sheets.

In general, the life cycle costs correlated with the con-struction and initial investment costs. Where two or more sites hadclose to the same initial investment cost, exceptions to this generalrule were as follows: cut and cover site over a steel tank site due toa lower heating fuel oil cost; short pipeline sites over longer pipelinesites due to a lower spare parts maintenance cost.

3-4. CONCLUSIONS

The least costly 10 MMB storage site is the Portmouth, NH (CC)site and the least costly 20 MMB storage site is the Northville, NY (CC)site. All life cycle cost analysis methods previously described wereused in making these determinations.

129

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HNDTR-80-45-:'

APPENDIX A

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