Civil Functions, Department of the Army Appropriations, 1955, Hearings Before ... 83-2, on H.R. 8367

Senator DANIEL. You may file your statement. (The statement referred to follows:)

STATEMENT OF DUANE ORR, DISTRICT ENGINEER, NUECES COUNTY NAVIGATION DISTRICT, CORPUS CHRISTI, TEX.

Mr. Chairman and gentlemen of the subcommittee, My name is Duane Orr, and I am district engineer of the Nueces County Navigation District, which operates the port of Corpus Christi, Tex. I appear before you today in support of the budget recommendation of $500,000 to commence construction of the important Tule Lake extension of the Port Aransas-Corpus Christi Waterway. It is the purpose of this statement to show that all requirements imposed on the navigation district by HD-574, 75th Congress, 3d session, have been fulfilled and that the Federal Government is fully justified in initiating construction of this project immediately.

The Tule Lake Channel extension was originally authorized by Congress in 1938 (H. Doc. 574, 75th Con., 3d sess.) as a 32 by 150 foot project; however, it was later modified by increasing the bottom width to 200 feet and the depth to 34 feet (H. Doc. 544, 78th Con., 2d sess). In 1948 the project depth was increased to 36 feet to correspond with the authorized depth of the remainder of the Port Arkansas- Corpus Christi Waterway (H. Doc. 560, 80th Cong. 2d sess).

The congressional authorization for extending deep water from Avery Point Turning Basin to and including a turning basin near Tule Lake required local interests to:

1. Furnish free of cost to the United States all rights-of- way and spoildisposal areas required for the initial dredging and subsequent maintenance; 2. Release the United States from all claims for damages attributable to the work;

3. Furnish assurances satisfactory to the Secretary of War that bona fide arrangements have been made with various industries to guarantee additional tonnage sufficient to warrant the construction and maintenance of an extension of the Industrial Canal with a turning basin in the vicinity of Tule Lake. Although the project was authorized in 1938, Federal funds have not been provided for dredging this project to its authorized dimensions. However, in 1948, as an inducement to have Corn Products Refining Co. locate at Corpus Christi, the Nueces County Navigation District dredged with its own funds an 18 by 100 foot channel along the alinement of the authorized project. This channel, which is 34 miles long, extends from the Avery Point Basin to the Corn Products Refining Co. plant, and was dredged at a cost of $332,484.12 to the navigation district.

It is estimated, based on present day dredging costs and the Government quantities shown in House Document 574, 75th Congress, 3d session, and House Document 544, 78th Congress, 2d session, that the annual Federal carrying charge to dredge and maintain the deepwater channel to full project dimensions from Avery Point to and including the Tule Lake turning basin will total $84,110 per year. Shown elsewhere in this report is the estimated savings in transportation costs which would accrue to the public by virtue of this deepwater channel. The annual savings are several times the annual carrying charges.

Two docks have been constructed and are in operation on the channel which is a part of the authorized Federal project. One dock, which is owned by the American Smelting & Refining Co., is used for loading acid into tank barges. A second dock, which is owned by the navigation district and known as public oil dock No. 6, is used by Corpus Christi Refining Co., and a second company has indicated that it will extend its pipelines to this oil dock. The Corpus Christi Refining Co. is negotiating with General Services Administration for a contract to store and handle petroleum products for the Federal Government when deep water is made available.

Because of plant operating problems and uncertainties of the market at the beginning of operations, Corn Products Refining Co. deferred construction of its dock, and as an alternate, loaded export shipments into boxcars and switched them to the public docks for loading aboard ships; however, with a deepwater channel, increased export tonnages and need of additional warehouse space will justify the company constructing a deep sea cargo dock.

The Corn Products Refining Co. plant is located on the authorized Tule Lake project at the westerly end of the present 18 by 100 foot channel which was dredged by the navigation district in 1948. This plant was located at Corpus

have interested various industries to locate along this waterway to develop the tonnage which we thought essential and which was required under the provisions of the document.

Since 1938 when this project was authorized, the following industries have located along this waterway: The Corpus Christi Refining Co., the American Smeltering & Refining Co., the Corn Products Refining Co., the Suntide Refining Co., and more recently a small shipyard.

Senator HAYDEN. What means of transportation do they use now in the absence of the construction of this channel? How do they get in and out?

Mr. ORR. The ones that are on the barge canal can use the barge water on that. The others are now having to either pipe their products down to deep water or in the case of package products load them into rail cars and switch them to the public docks and carry on their operations in that manner.

Senator HAYDEN. Obviously, there would be a reduction in cost to them to be able to bring a large vessel up to the plant.

Mr. ORR. It would be an extremely large saving to them and certainly justifies the project in any respect you want to consider it.

Senator HAYDEN. What means do they use for dredging the channel? Suction dredges?

Mr. ORR. Yes, hydraulic suction dredges. This is all very soft alluvial material that has drifted down from the river in the years past. There is no rock or hard material in that area.

In addition to the plants I mentioned that were already located there, and all of these are explained fully in the statement submitted, Columbia Southern Corp., has acquired a large site for development in the near future. Heldenfelds Bros., a material supplier, has also acquired a site. Likewise, Fordyce Gravel Co.; Cargill, Inc., a grain firm; and two offshore companies interested in the oil well drilling program have requested sites cn property owned by the navigation commission there. We hope in the near future to have those located on the site.

I shall ask Mr. Harris and Mr. Miller to hold this map up, and I believe we can possibly show you in a brief way a bit more about this project. Shown in red is the turning basin, which is the westwardly limit of deep water now, and extending to the west is this red line to the authorized Tule Lake turning basin. This is the project for which we are requesting $500,000 as recommended.

Senator YOUNG. You are asking for the amount in the budget estimate?

Mr. ORR. That is right. The industries shown in brown-the Corpus Chirsti Refining Co., the Corn Products Refining Co., the Humble Oil Co. plant, and the Suntide Refining Co.-are all plants located there and in operation.

The areas shown in yellow there are sites that have been acquired by other industries to build as soon as there is some assurance the deep water will be provided.

We feel that we have met all the requirements imposed on the navigation commission, and we earnestly request that this $500,000 that the Budget Bureau has recommended remain as the sum for the beginning of this project.

Senator YOUNG. Thank you.