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last update: September 2002 
  
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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 32-97]

 
Foreign-Trade Zone 84--Houston, Texas; Application for Foreign-Trade 
Subzone Status; LYONDELL-CITGO Refining Company, Ltd. (Oil 
Refinery and Petrochemical Complex), Harris County, Texas

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Port of Houston Authority, grantee of FTZ 84, 
requesting special-purpose subzone status for the oil refinery and 
petrochemical complex of LYONDELL-CITGO Refining Company Ltd. 
(LYONDELL-CITGO), located in Harris County, Texas. LYONDELL-CITGO is a 
limited liability company owned by subsidiaries of CITGO Petroleum 
Corporation (subsidiary of Petroleos de Venezuela, S.A., the national 
oil company of Venezuela) and Lyondell Petrochemical Corporation. The 
application was submitted pursuant to the provisions of the Foreign-
Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of 
the Board (15 CFR part 400). It was formally filed on April 15, 1997.
    The refinery and petrochemical complex (645 acres, 1,300 employees) 
consists of 4 sites in the Houston metropolitan area of Harris County, 
Texas: Site 1 (500 acres)-refinery complex located at 12000 Lawndale 
Road, on the Houston Ship Channel, within the city limits of both 
Houston and Pasadena; Site 2 (20 acres)--Allendale Tank Farm (4 tanks/
713,000 barrel capacity) located south of the refinery, across Lawndale 
Rd.; Site 3 (65 acres) South Tank Farm (16 tanks/1.9 million barrel 
capacity) located south of the refinery across Lawndale Rd., east of 
Site 2; Site 4 (60 acres)--``225'' Tank Farm (13 tanks/3.6 million 
barrel capacity) located south of Sites 1-3, across State Highway 225.
    The refinery (265,000 BPD) is used to produce fuels and 
petrochemical feedstocks. Fuel products include include gasoline, jet 
fuel, distillates, residual fuels, naphthas and motor fuel blendstocks. 
Petrochemical feedstocks and refinery by-products include methane, 
ethane, propane, liquid natural gas. propylene, ethylene, butylene, 
butane, butadiene, benzene, toluene, xylene, petroleum coke, asphalt, 
carbon black oil and sulfur. Some 95 percent of the crude oil (83 
percent of inputs), and some motor fuel blendstocks are sourced abroad.

---- page 24081 ----

    Zone procedures would exempt the refinery from Customs duty 
payments on the foreign products used in its exports. On domestic 
sales, the company would be able to choose the Customs duty rates that 
apply to certain petrochemical feedstocks and refinery by-products 
(duty-free) by admitting incoming foreign crude oil and natural gas 
condensate in non-privileged foreign status. The duty rates on inputs 
range from 5.25 cents/barrel to 10.5 cents/barrel. Under the FTZ Act, 
certain merchandise in FTZ status is exempt from ad valorem inventory-
type taxes. The application indicates that the savings from zone 
procedures would help improve the refinery's international 
competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
July 1, 1997. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to July 16, 1997).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, Suite 1160, 500 
Dallas, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., 
Washington, DC 20230.

    Dated: April 23, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-11456 Filed 5-1-97; 8:45 am]
BILLING CODE 3510-DS-P