are being lined up and it promises to be the best ever! You will be receiving more information in early 2007.

Transcription

1 NEWS FROM THE DOCKS Louisiana Ports Deliver ASSOCIATION OF LOUISIANA November 2006 Volume 7, No. 11 Message from the PAL Office This month PAL continued its November tradition of meeting in Natchitoches. The Red River Waterway Commission sponsored a golf outing the day before our meeting and all of our members enjoyed that as well as a memorable evening at PaPa s! Thanks to Ken Guidry, Randy Walters and members of the Red River Waterway Commission for making this such a nice event and for continuing to invite us back! are being lined up and it promises to be the best ever! You will be receiving more information in early As the holidays draw nearer, PAL would like to wish everyone a wonderful holiday season. Thanksgiving is the traditional holiday kick-off and that is just around the corner! We hope you will have a joyous time with your family. Remember to eat lots of turkey! PAL would also like to mention that we are nearing completion of our new Directory. This project was begun before the storms hit last year and was delayed because a lot of the information we had gathered was lost. However, everything is back on track and we hope to have a document available shortly after the first of the year. It will contain a lot of information about each of PAL s member ports with color pictures of operations and facilities. We anticipate that it will be an excellent marketing tool. We continue to remind you that this is the best time of year to join PAL. During the last quarter of each year, PAL offers associate memberships for the following year. If you join now, your membership will run through December of We work hard to keep port and maritime issues in the forefront and we need your help. Please call this office (225/ ) if you have any questions about membership. This month we welcome two new members who have taken advantage of this opportunity! The Ports of South Louisiana and Manchac are working hard on our annual conference to be held April 24-26, Our host hotel will be the Airport Hilton in Kenner, LA. The speakers Legislative Update The U.S. House and Senate overwhelmingly passed the conference report on the Security and Accountability for Every (SAFE) Port Act, which authorizes $3.4 billion over five years aimed at improving the security of U.S. ports and cargo container systems. The President signed the Bill on October 13, 2006 and it became P.L A major sticking point in debate on the bill had been calls for 100 percent scanning of all U.S.- bound cargo containers. In its final form, the legislation retains a provision requiring the Department of Homeland Security to establish a pilot project at three foreign seaports to test the practicality and effectiveness of systems designed to scan 100 percent of cargo. The DHS must report on the status of the pilot program 120 days after its deployment and every six months thereafter. The intent of this language is 3055 East Lakeshore Drive Baton Rouge, LA (225) fax (225)

2 to allow for the full deployment of an integrated system as soon as the DHS believes it can be done in a way that doesn't significantly disrupt trade. For full text of the bill follow this link: Corporate Member News Port of Greater Baton Rouge Governor Appoints Hall Davis, IV As New Commissioner Hall Davis, IV was recently appointed as a new commissioner for the Port of Greater Baton Rouge. Davis will represent West Baton Rouge Parish on the commission. Davis previously served on the port s board from 1989 to 1992 and was elected treasurer of the commission in Davis is the president of Hall Davis and Son Funeral Service, a familyowned and operated funeral home. He is a licensed funeral director. In addition, Davis is currently the president-elect of the National Funeral Directors and Morticians Association. Davis also has served on a number of volunteer boards in the community including Hall s We Care Kids, Sharing A Vision, and 100 Black Men Metro Baton Rouge. Port of Lake Charles 9 th Annual Rice Cook Off at the Port of Lake Charles September was National Rice Month. In celebration, the Calcasieu-Cameron Rice Growers sponsored the 9 th Annual Rice Cook Off on September 28, 2006, at the Port of Lake Charles. The Port of Lake Charles hosted the event and was the sponsor of the awards luncheon. The cook off and awards luncheon was held in the Port of Lake Charles Board Room. Family and Consumer Science students from area middle schools and high schools participated in the event. 1 st, 2 nd, and 3 rd place cash prizes were given in the Best Rice Dish category and a 1 st place prize was given to the most heart healthy dish. Farmers Rice Milling Co., Inc. sponsored rice cookers for each contestant. The Calcasieu- Cameron Rice Growers appreciated the support as the production, milling, and exporting of rice has a major economic affect on Southwest Louisiana. Rice Cook-off winners from left to right: Andre Williams, Reynaud Middle - 3 rd place, Jessica Gibbs, Washington Marion - 1 st place heart healthy dish, Lauren Hansen, W. W. Lewis - 1st place, and Luke Welcher, Hackberry High - 2nd Place The Greater Baton Rouge Port Commission was established in 1952 by an act of the Louisiana Legislature and encompasses 85 miles of the Mississippi River. This policy-making body is led by 15 commissioners appointed by the governor to represent the four-parish region the port serves. The port is both a deep water and shallow draft port and also provides access to mid-america through the Intracoastal Waterway and the upper Mississippi River system. Channing Hayden hired as the Port s Director of Navigation and Security R. Adam McBride, Port Director for the Lake Charles Harbor and Terminal District, is pleased to announce that Mr. Channing Hayden has been appointed as the Port s Director of Navigation and Security. Channing s areas of responsibility will include the coordination and oversight of navigation and disposal sites along the Calcasieu Ship Channel as well as maintenance of the channel and homeland security issues, said Mr. McBride. Channing will also act as the Port s liaison with the U.S.

3 Army Corp. of Engineers, the U.S. Coast Guard as well as other State and Federal Agencies critical energy infrastructure, such as Port Fourchon and the Louisiana Offshore Oil Port (LOOP). "We have long felt that there was something seriously wrong with security measures that omitted Port Fourchon and LOOP from competing for Port Security funding," said Ted Falgout, Port Director. Mr. Hayden is a graduate of Tulane University with a Master s Degree in Business Administration. He worked for the New Orleans Steamship Association of Louisiana from May 1967 to October 2005, serving in both its Labor Relations Department and General Department. The General Department is the trade association for the steamship industry on the Mississippi and Calcasieu Rivers. On January 1, 1995, Mr. Hayden was elected President and Chief Executive Officer of the Steamship Association and continued in the position through October 31, Mr. Hayden s qualifications include university training in General Management and Industrial Relations/Personnel Management, work experience in Industrial Relations, General Trade Association Management, and Management Consulting. "After trips to Washington D.C., countless letters and meetings, this inequity has finally been corrected. The approval of Senator Vitter's amendment to the Act to include the Energy Provision was a huge accomplishment which included the support and assistance of our entire Congressional delegation," said Falgout. "Congressmen Jindal and Melancon both played active roles in support of this effort," according to Falgout. Harbor Police Officers Receive Lifesaving Medals Harbor Police Officer Jason Plaisance and Officer Brent Constransitch received lifesaving medals at last Wednesday's Port Commission meeting for their gallant actions during an incident in April Their efforts prevented the loss of life and upheld the highest traditions of the Harbor Police and the Greater Lafourche Port Commission. I look forward to working with the Port Director, directors and staff, said Channing Hayden. The Port of Lake Charles is a powerful presence in the maritime industry and I am delighted to be apart of the Port of Lake Charles team. Port Fourchon Port Security Eligibility Changed The 2006 Security and Accountability for Every (SAFE) Port Act now has inclusion of "energy" as a national economic interest when determining port security funding and report language specifically mentioning LOOP/Port Fourchon as a national energy interest. The Conferees note that "energy" was specifically included in language to take into consideration current and future ports with Officers Plaisance and Constransitch responded to a report of two people unconscious in a tank in Fourchon. Once the officers arrived on the scene both people appeared to be unconscious due to unknown toxic fumes. Officers Plaisance and Constransitch, wearing Self Contained Breathing Apparatus (SCBA) gear, entered the tank and exposed themselves to potential harm from the unidentified toxic substance within. The Officers removed the people from the tank to safety. Both subjects

4 were stabilized by Lafourche Parish Ambulance District personnel and transported to Our Lady of the Sea Hospital for further medical treatment. The Officers later learned the tank was used at an offshore platform producing H2S, a potentially lethal substance. "We are very proud of these Officers and see the value of training they receive as an asset to this community," said Ted Falgout, Port Director. Coastal Restoration Partnership Announces Upcoming Marsh Plantings Thanks to a community-based restoration grant from the National Oceanic and Atmospheric Administration (NOAA), Nicholls State University (NSU), The Coalition to Restore Coastal Louisiana (CRCL) and The Barataria Terrebonne National Estuary Program (BTNEP) are teaming up to offer two vegetative planting field trips for kids and families in November. These field trips, which were scheduled for November 4 th and November 18 th, are great opportunities for kids, families, scout groups and classes to get out into newly-restored coastal lands, get muddy, and get the opportunity to plant new life in our precious coastal wetlands. The November 4 th trip took participants to Fifi Island, a small barrier island just north of Grand Isle, where participants got to plant coastal plants like smooth cordgrass and marsh hay cordgrass on a hundred-acre site recently restored using dredged sediments from near Grand Isle. Because of the large area, very short boat ride, and stable, sandy soils of Fifi Island, this outing was perfect for younger kids and lots of people. The BTNEP provided bus transportation from the Thibodaux and Raceland areas for this effort as well as lunch for all participants in the field. The November 18 th trip will take participants to Leeville, near the foot of the existing bridge over Bayou Lafourche. Participants will plant marsh plants to help hold together the newly pumped site near the Leeville Bridge. Because of the mucky nature of this site, this outing is better suited to teenagers and adults in smaller numbers working from boats and/or the shoreline. The BTNEP will provide lunch for this effort in the field as well as transportation if enough participants from one region sign up for this project. For more information regarding this activity, contact Joni Blanchard with BTNEP at (985) or by at joni@btnep.org Both of these field trips offer you and your family the chance to touch and see real coastal restoration projects, to make a difference in the health of our coast and to learn first-hand from real scientists and graduate students how the science of coastal restoration works. If you are interested in this or other volunteer activities within the estuary region, contact the Barataria-Terrebonne National Estuary Program at (985) , Joni Blanchard at joni@btnep.org or visit Port of New Orleans New Orleans Welcomes Norwegian Sun Norwegian Sun entered the Port of New Orleans on October 15 th as the first cruise ship to homeport in New Orleans since Hurricane Katrina. The ship docked at the city s new $37 million Erato Street Terminal, which is designed to accommodate larger cruise ships. Norwegian Sun calls the Crescent City home for the winter season sailing seven-day exotic Western Caribbean cruises with ports of call including Costa Maya, Mexico; Santo Tomas de Castilla, Guatemala; Belize City, Belize and Cozumel, Mexico. We re proud to demonstrate our commitment to the city of New Orleans by returning to the city with a big, new balcony-rich ship, said Bob Thye, senior vice president, revenue management and itinerary planning for NCL Corporation ( NCL ). With 47 million potential passengers living within a 500 mile radius of New Orleans, this vibrant city is a key partner for NCL. The Norwegian Sun marked the return of homeported cruise lines to the Port of New Orleans Oct. 15. The ship will sail seven-day exotic Western Caribbean cruises from New Orleans through April.

5 "The cruise passengers returning to New Orleans will see that the city s historic beauty and charm is still alive and thriving, said Gary LaGrange, president and CEO of the Port of New Orleans. With the addition of the Erato Street Cruise Terminal and Parking Garage, the Port is poised to continue to create new cruising opportunities for cruise lines and passengers." In 2004, New Orleans was one of the fastestgrowing homeports in the US, according to the Cruise Lines International Association (CLIA). Cruise passenger embarkations and disembarkations in New Orleans grew an astounding 818 percent in the last 11 years prior to Katrina, from approximately 80,000 in 1993 to 753,000 in Port, MARAD Agree to Wharf Transfer For Cruise Terminal Expansion Carnival Cruise Line s 2,056-passenger Fantasy docked at the Port of New Orleans this October, marking the return of year-round cruising from the Crescent City. The ship will sail four- and five-day Western Caribbean cruises. Carnival is the second of three home-ported cruise lines to return to the Port this fall. Norwegian Cruise Lines returned its Norwegian Sun Oct. 15 and Royal Caribbean s Grandeur of the Seas is scheduled to begin sailing seven-day Western Caribbean cruises from New Orleans Dec. 2. The Carnival Triumph is scheduled to begin cruising from New Orleans in August of The cruise industry also contributes $226 million to the city in direct and indirect sales, and supports more than 2,500 jobs. Built specifically for NCL s signature Freestyle Cruising, which leaves regimented schedules, meal times and dress codes behind, Norwegian Sun accommodates 1,936 passengers and features 10 restaurants, two pools, a casino, a batting cage, and much more. The ship will sail seven-day exotic Western Caribbean cruises from New Orleans for the remainder of 2006 and through April In late 2007, Norwegian Spirit will drop anchor in the Big Easy sailing seven-day exotic Western Caribbean cruises through April NCL Corp. Ltd. is an innovative cruise company headquartered in Miami, Florida, with a fleet of 15 ships in service and under construction. The corporation oversees the operations of Norwegian Cruise Line, NCL America, and Orient Lines. The company is currently building two ships, Norwegian Pearl for delivery in November of 2006 and Norwegian Gem for delivery in October of In addition, NCL plans to build up to three new third generation Freestyle Cruising ships for delivery between 2009 and NCL is on target to have the youngest fleet in the industry by 2010, providing guests the opportunity to enjoy the flexibility of Freestyle Cruising on the newest, most contemporary ships at sea. For further information, please contact NCL in the U.S. and Canada at (800) ; visit NCL s website at With an eye toward the future, Port officials also inked an agreement aboard the Fantasy with the U.S. Maritime Administration (MARAD) to transfer all federal interests in two berths at the Poland Avenue Wharf for the conversion of the cargo terminal to a cruise terminal. The new terminal, which is currently in the engineering and design phase, would allow the Port to expand cruise ship capacity to accommodate three of the industry s largest cruise ships simultaneously. This agreement will transfer part of the Poland Avenue Wharf to the Port of New Orleans so that we can grow the cruise industry for years to come, said Gary LaGrange, president and CEO of the Port of New Orleans. The return of the cruise industry represents a significant boost to the Port and to the City of New Orleans. It took the vision of long-time partners at Carnival to see that the events of 2005 did not change the inherent value of New Orleans as a cruise port. Passengers enjoy cruising from New Orleans because it adds another attractive port of call to any itinerary.

6 LaGrange told the group. It means a lot to this Port and to the City of New Orleans that you are here visiting us, seeing our progress and spending your dollars in our hotels and restaurants. Port of New Orleans officials signed an agreement on October 26, 2006, with the U.S. Maritime Administration to transfer all federal interests in two berths at the Poland Avenue Wharf for the conversion of the cargo terminal to a cruise terminal. Pictures seated left to right is Gary LaGrange, President and CEO of the Port of New Orleans, and Sean Connaughton, Maritime Administrator for the U.S. Maritime Administration Standing from left are Port of New Orleans Board of Commissioner members Conrad H. Appel, III, H. Danioel Hughes, II, Chairman Sammy Nunez, Jr., Thimas D. Westfield and John Kellenborn.. Breakbulk Cargo Surges To Spur Port Recovery Steel, Rubber Imports Up 37 percent, 23 percent In First Eight Months of 06 A surge in breakbulk cargo imports has helped spur the Port of New Orleans recovery efforts in the 12 months following Hurricane Katrina. Total general cargo figures for the first eight months of 2006 are up 9.5 percent overall, boosted by a nearly 38 percent gain in traditional breakbulk cargo imports. In addition, the 2006 figures are 9.5 percent ahead of the Port s fiveyear average for the period. We ve been able to achieve this mostly due to our traditional breakbulk cargoes, said Gary LaGrange, President and CEO of the Port of New Orleans. We lost about a third of our container capacity from the storm and container shipments reflect that. However, we ve been able to make up the difference with increased breakbulk shipments. Breakbulk cargo is loose cargo shipped on pallets or bundles and stowed in a vessel s hold as opposed to containerized or bulk cargo. Iron and steel, natural rubber, forestry products and non-ferrous metals are the Port s leading breakbulk commodities. Compared to the same period in 2005, iron and steel imports rose 37 percent during the first eight months of 2006, totaling 2.96 million short tons. Natural rubber rose 22.6 percent for the same period, totaling 316,418 short tons through August Forestry products, namely lumber, rose a modest 3 percent so far in 2006 to 265,885 short tons. A short ton equals 2,000 pounds. Overall, cargo at the Port s boardowned facilities totals more than 5.7 million short tons, up 9.5 percent compared the same period one year ago. West Feliciana Port Commission At a special meeting held on Tuesday, October 17, 2006 the West Feliciana Parish Port Commission voted to hire Roger P. Richard as the first Executive Director for the Port of West Feliciana. Port Commission President Kevin Couhig stated, We are pleased and proud to secure Roger Richard as our first Port Director. He continued, Mr. Richard will focus efforts on development of the port facility and work in conjunction with the West Feliciana Community Development Foundation (WFCDF) and its business park development. LaGrange delivered the cargo figures to transportation officials in New Orleans for the 17 th Annual Breakbulk Transportation Conference and Exhibition, held at the New Orleans Marriott. The Port of New Orleans traditionally serves as the conference s host. However, the conference was moved to Houston, Texas a year ago due to the aftermath of Katrina. The Port of New Orleans is proud to have the Breakbulk Conference back where it belongs, left to right Jim Roland, Jack Hanemann, Roger Richard, Leonard Sullivan, Harry Short and Kevin Couhig

7 Richard previously served as the Chief Executive Officer for the Port of Greater Baton Rouge from 1998 to Prior to that he was the Chief Executive Officer for the Port of Orange, Texas from 1990 to He has over 44 years of experience in port management, economic development, international banking, international and domestic transportation and international marketing of port services. Richard explains, I believe a port should be a driving force in the economic growth and vitality of a community. As director, I intend to intensify efforts to attract business to the new Port of West Feliciana. Richard also intends to promote economic development in West Feliciana Parish, by attracting the appropriate environmentally friendly businesses to the Parish, thereby increasing the tax base needed to improve schools and infrastructure. Harry Short, Chairman of the Strategic Planning Committee reported, Roger Richard knows our industry well and is dedicated to the success of the Port of West Feliciana. With his expertise and leadership, along with our chosen site, we are enthused with our progress! The site is located between Tembec Paper Mill and Entergy s River Bend Power Plant, it is simply the best location on the Mississippi River in Louisiana and the best location anywhere along the Mississippi River to build a new port due to its rail access and higher elevation on the east bank. Richard attended Loyola University in New Orleans and the University of New Orleans. He also graduated from the School for International Banking at the University of Colorado, the School of Industrial Development at Texas A&M University and is a Graduate of the Economic Development Institute at the University of Oklahoma. Richard is past president of the Louisiana Ports Association, the Texas Ports Association and is a Commissioner on the Louisiana Airport Authority and on the Governor s Maritime Advisory Task Force. Richard concluded, It is a tremendous honor to be Named the first Executive Director for the Port of West Feliciana and I thank the West Feliciana Parish Port Commission for selecting me to lead the Port of West Feliciana. I look forward to meeting the citizens of West Feliciana Parish and invite them to actively participate in our efforts and I pledge to work with them to promote and grow the Parish and other civic endeavors. Legal News HEDONIC DAMAGES ARE NOW RECOVERABLE In the case of McGee v. AC and S, Inc., et al. (933 So.2d 770, issued 7-06), the Supreme Court of Louisiana ruled that loss of enjoyment of life, sometimes known as hedonic damages, is recoverable as a separate element of general damages that may be included as a separate item on a jury verdict form. All of the Circuit Courts of Appeal, with the exception of the Fourth Circuit had previously allowed hedonic damages as a distinct recoverable element of damages. The Supreme Court defined loss of enjoyment of life or hedonic damages as the detrimental alterations of a person s life or lifestyle or a person s inability to participate in the activities or pleasures of life that were formerly enjoyed. In this case, the plaintiffs, the widow and children of James McGee, filed a wrongful death and survival action against a number of defendants including the decedent s former employers and manufacturers of asbestos containing products. In their list of damages sought, plaintiffs made a claim for decedents loss of enjoyment of life. The defendants filed a motion in liminae to preclude the plaintiffs from asserting a separate claim for loss of enjoyment of life on the theory that it was part of the general damage award and was not its own separate category of damages. The trial court found in favor of the plaintiffs. The matter was then appealed to the Fourth Circuit Court of Appeal which overruled the trial judge and found that a separate award for loss of enjoyment of life was erroneous as a matter of law and stated that any expert testimony concerning loss of enjoyment of life was to be inadmissible. Thereafter, the Supreme Court was asked to address the issue. The Supreme Court noted that loss of enjoyment of life falls within the definition of general damages because it involves the quality of a persons life. Coming

8 to this conclusion, the Court noted that since loss of enjoyment of life is a compensable component of general damages, the only remaining issue to be decided was whether loss of enjoyment of life may be separated from other elements of general damages, such as mental and physical pain and suffering, and whether that separation may be reflected by having a line for loss of enjoyment of life on a jury verdict form. In an exercise of reasoning which, this writer finds to be so esoteric as to be confounding, Justice Kimball, the author of this decision, wrote that loss of enjoyment of life is conceptually distinct from other components of general damages including pain and suffering. Continuing, she wrote that pain and suffering, both physical and mental, refers to the pain, discomfort, inconvenience, anguish, and emotional trauma that accompanies an injury. Loss of enjoyment of life, in comparison, refers to detrimental alterations in the persons life or lifestyle or the persons inability to participate in the activities or pleasures of life that were formerly enjoyed prior to the injury. She noted that in contrast to pain and suffering, whether or not a plaintiff experiences a detrimental lifestyle change depends on both the nature and severity of the injury and the lifestyle of the plaintiff prior to the injury. In the opinion of this writer, a reading of this decision leads one to believe that the distinctions drawn by the court are really distinctions without a difference. The Supreme Court noted that there is a conflict among State and Federal Courts nationwide on this issue, but nevertheless sided with the plaintiffs and allowed them to go forward with their claim for loss of enjoyment of life. While doing so, the Court also noted that whether or not loss of enjoyment of life is recoverable depends on the particular facts of the case and should be left to the District Court s discretion on a case-by-case basis. It should be noted that Justices Victory and Weimer dissented, observing that allowing separate awards for physical and mental pain and suffering and an award for loss of enjoyment of life is duplicitous. They also noted that a nationwide survey found that the majority of State courts have held that hedonic damages are included in the general damages award for pain and suffering, mental anguish and physical impairment and may not be considered as a separate element of general damages. In short, these Justices took the common sense approach and noted that allowing a separate award for hedonic damages amounts to double recovery for a single element of harm that would be more in the nature of punitive damages that are expressly not allowed under Louisiana law unless provided by statute. When given a jury of lay persons to consider one can only imagine the confusion and resulting inflated awards that will be handed down. A virtual who s who of Fortune 500 corporations, industry and manufacturing associations and litigation reform associations all filed amicus briefs in this matter. As a result of this ruling defendants should expect to see plaintiffs amending their lawsuits to make a claim. This writer would urge defendants to challenge the right of the plaintiff to recover such damages in each case. The Supreme Court does not provide any guidelines on how to determine when a particular case warrants a claim for hedonic damages. This ruling is detrimental to industry and will increase the cost of litigation and likely make cases more difficult to resolve prior to trial. If you would like a copy of this decision please contact undersigned at wbland@mblb.com and I will a copy to you. America s Wetlands News BY WILTON E. BLAND, PARTNER MOULEDOUX, BLAND, LEGRAND & BRACKETT OR Louisiana Continues Push for OCS Revenue With the passage of the state amendments dedicating all money received from OCS to coastal restoration, Louisiana continues to push for OCS revenue sharing legislation. In a statement, Governor Kathleen Babineaux Blanco urged "Our delegation has been fighting hard on

9 this issue. Now is the time for them to pull together to hold the feet of Congress to the fire." America's WETLAND continues to push for OCS Revenue sharing by raising awareness that while nearly 80% of all oil and gas harvested in the Gulf and passes through America's Energy Coast, the region does not receive any revenue from leases designed to support and shore up the region. On September 20, 2006, America's WETLAND placed two ads highlighting the need to pass Outer Continental Shelf revenue sharing legislation to coincide with the visit by the Women of the Storm. The half-page, color ads were placed in the DC publications, Roll Call and The Hill. Louisiana Sea Grant Program By Barry Bleichner Graduate Research Assistant Louisiana Sea Grant College Program The Expanding Deepwater Industry and Associated Trends As new sources of fossil fuels become increasingly difficult to locate close to our shores, the oil and gas industry has focused on expanding their search into previously unexplored depths of the Gulf of Mexico. This trend was recently underscored by Chevron Oil Company s announcement on September 5, 2006 of the successful production test of the Jack #2, a deepwater well located approximately 175 miles off the Louisiana coast.(1) The Jack #2 was drilled in over 7,000 feet of water and at a depth greater than 20,000 feet below the seafloor and the well likely represents the largest deepwater find to date.(2) A number of other figures are illustrative of the increased prominence that deepwater production has assumed in the Gulf of Mexico. The Foster Natural Gas Report states that deepwater oil production increased 840% from 1992 to 2002, with natural gas production increasing over 1600% during the same time period.(3) Moreover, deepwater production in the GoM surpassed shallow-water production for the first time in The regional director of MMS in the Gulf of Mexico, Chris Oynes, reports that the deepwater area of the Gulf of Mexico continues to serve as the major domestic energy source for the United States. (4) Coupled with the need to drill further and deeper from previous well locations is the requirement for vessels and facilities of ever increasing size and technological sophistication, as well as the construction of additional pipelines and refineries to handle the output.(5) One of the pressing questions then becomes how and to what extent will the burgeoning deepwater industry affect the existing energy infrastructure and environment of coastal Louisiana. The two most recent environmental impact statements ( EIS ) conducted by the MMS associated with lease sales on the Outer Continental Shelf (EIS and EIS ) have largely determined that the expanding deepwater industry presents little, if any, additional fabrication services and offshore support over traditional oil and gas production, exploration, and services. The MMS probably discounts the additional need, however. The EIS accedes that there may be some expansion of infrastructure to support the deepwater exploration but states that the improvements will be restricted to existing deepwater ports, thus limiting the areal extent of developmental impacts and perhaps reducing the potential for land-use conversion. (6) The MMS assessment ignores the likelihood that other ports will also seek to expand in order to improve deepwater access. For example, the Port of Iberia recently requested a permit and federal aid for a project to dredge a navigation channel connecting the port to the Gulf to Mexico. The EIS, conducted in association with the proposed improvement, states that shallowaccess ports are effectively constrained from the competition for deepwater work and that channel deepening from 12 to 20 feet is necessary to accommodate larger deepwater oil platform fabrication jobs. (7) On the one hand, the MMS has determined that existing navigation channels will suffice to accommodate most of the future deepwater business.(8) Yet, the agency also notes that shipyards have expanded their capabilities of handling larger vessels and that these facilities will require

10 access to a navigation channel of sufficient width and depth (20-23 ft). (9) The Port of Iberia is but one example. A review of applications for Coastal Use Permits reveals other ports also seeking permission to dredge navigation channels to expand oil and gas infrastructure. Similarly, an analysis of Port Fourchon demonstrated how an increase in deepwater production will affect the port s facilities. The study determined that for every new OCS deepwater well, truck traffic increases by 673 trips per year, inland barge traffic by 7 trips per year, and gross tonnage by 11,400 tons per year.(10) For every mile of approved pipeline, truck traffic increases 217 trips per year, barge traffic by three trips per year, and port tonnage by 46,000 tons.(11) The accumulated totals expected between 2001 and 2010 for only the Port of Fourchon is a 67% increase in truck traffic, a 25% increase in barge traffic, and a 100% increase in port tonnage. The associated increases will thus likely require greater expansion of the port itself, and possibly the construction of more access channels to the port. References (1) 05.asp (2) 05.asp (3) Foster Natural Gas Report, Report No May 12, 2006 (4) State News Service MMS announces seven deepwater discoveries to date in July 18, (5) Minerals Management Service (2000). Gulf of Mexico: Deepwater Operations and Activities. (6) A report issued by the MMS identifies the primary deepwater ports as Venice (pre-hurricane Katrina), Port Fourchon, Morgan City, and Galveston. (7) U.S. Army Corps of Engineers, New Orleans District (2005). Port of Iberia, Louisiana: Draft Feasibility Report. (8) Minerals Management Service (2000). Gulf of Mexico: Deepwater Operations and Activities. (9) Id. (10) Minerals Management Service (2004). Supply Network for Deepwater Oil and Gas Development in the Gulf of Mexico: An empirical analysis of demand for port services. (11) Id. (12) Id. International Workboat Show Largest U.S. Maritime Trade Show returns to New Orleans in November Offers Complimentary GOLD VIP Pass/ Conference Passport to Port Association of Louisiana Members Full Speed Ahead for International WorkBoat Show After a year hiatus, the International WorkBoat Show, the largest U.S. maritime trade show and conference, will return to Morial Convention Center from November 29 through December 1. The International WorkBoat Show is the leading commercial-marine event serving commercial vessel operators on offshore, inland, and coastal waters, and businesses that provide products and services to these markets. The show is produced by Diversified Business Communications, publishers of Work Boat Magazine and National Fisherman. The city and surrounding region remains a hotbed of workboat activity, said Dave Krapf, editor of WorkBoat Magazine. We want to send a message that the region is still important to the industry and help support the region's post-katrina rebuilding effort by bringing the industry's largest show back to New Orleans in 2006." This year s show promises to be the largest gathering and industry celebration, as thousands of commercial marine professionals reunite for the first time since the 2004 event, said Mike Lodato, Vice President of Commercial Marine Products. The International WorkBoat Show will feature more than 1,000 exhibitors on a sold out exhibit floor, and thousands of attendees, representing every segment of the workboat industry. They will have a rewarding opportunity to reconnect with customers who have relocated, and to renew important relationships with friends, clients and competitors, according to Lodato. This year, the Work Boat Show is pleased to offer members of the Ports Association of Louisiana a complimentary Gold VIP Passport (includes trade show floor, 2 keynote sessions, special events and all conference sessions) so that members may join in celebrating the rebuilding, rebirth and resilience of businesses and people in this industry and it s communities. Registration upgrade to additional sessions is also available.

11 This year s show includes these two timely keynote sessions: Gulf Coast Shipyards: After Katrina 2:00 pm - 3:00 pm, Wednesday, November 29 Keynote Speaker: Boysie Bollinger, Chairman & CEO, Bollinger Shipyards Inc. Maritime Industry's Response to Hurricane Katrina 12:30 pm - 1:30 pm, Thursday, November 30 Keynote Speakers: Scott Slatten, President, Bisso Towboat Co. Inc. Dave Krapf, Editor, WorkBoat Magazine Rounding out the conference program are targeted session tracks including a Charter Boat Track, Shipyard Track, Safety Security and Training Track, and a Technical Track, focusing on every segment of the industry. The International WorkBoat Show and WorkBoat magazine will also celebrate the boatbuilding industry on Wednesday November 29, with Shipyard Day Special events for vessel owners and operators as well as shipyard executives and employees include an awards ceremony, keynote session, conference sessions and a celebration at 3pm. Registration for PAL Members is easy: You ll need to pre-register to take advantage of the complimentary gold conference and trade show pass. Preregistering allows you to avoid waiting in line at registration at the convention center. To register for your complimentary gold passport, please or call Karyn Gilbert at (207) or kgilbert@divcom.com with your name, company, title, address, phone, address, and business type. Your registration will be completed for you, and you will receive an or fax confirmation. Full exhibitor listings, floor plans, conference program schedule, special event details and travel discounts are available at Welcome New Associate Members PAL would like to welcome two new associate members this month: DiMatter and Associates is a consulting firm in Sugar Lands., Texas. They will be represented by Mr. Mike McQuillan. Eagle Environmental Services. Inc. is an environmental consulting firm located in Baton Rouge. They will be represented by Ms. Jessica Plaisance. MARK YOUR CALENDARS November 29 th & 30 th International WorkBoat Show New Orleans see article above December 12 Millennium Port Authority 10am DOTD 3 rd floor conf. Rm. March 13, 2007 Millennium Port Authority 10am DOTD 3 rd floor conf. Rm. June 12, 2007 Millennium Port Authority 10am DOTD 3 rd floor conf. Rm. September 11, 2007 Millennium Port Authority 10am DOTD 3 rd floor conf. Rm. December 11, 2007 Millennium Port Authority 10am DOTD 3 rd floor conf. Rm. Louisiana Ports Deliver If you have questions or have multiple people to register, please also contact WorkBoat show management directly at (207) , attention Karyn Gilbert, Audience Development Manager, or kgilbert@divcom.com.