DOE SEEKS BIDDERS FOR SPR SITE

The U.S. Department of Energy is seeking bidders for the 25.8 million bbl Sulphur Mines Strategic Petroleum Reserve site. DOE wants to sell the 26 million bbl facility, 12 miles west of Lake Charles, La., because it is the smallest, least economical to operate of the six SPR storage sites. It has planned for 3 years to close the site (OGJ, Aug. 22, 1988, p. 20). DOE figures closing Sulphur Mines and moving its crude to other SPR sites will save $3-5 million/year in overhead and maintenance

July 8, 1991

2 min read

The U.S. Department of Energy is seeking bidders for the 25.8 million bbl Sulphur Mines Strategic Petroleum Reserve site.

DOE wants to sell the 26 million bbl facility, 12 miles west of Lake Charles, La., because it is the smallest, least economical to operate of the six SPR storage sites. It has planned for 3 years to close the site (OGJ, Aug. 22, 1988, p. 20).

DOE figures closing Sulphur Mines and moving its crude to other SPR sites will save $3-5 million/year in overhead and maintenance costs. It plans to open bids for the facility Sept. 17.

Sulphur Mines is a "one cycle" site, which can be drawn down only once using fresh water before the salt storage caverns leach into each other.

By contrast, other SPR sites can be drawn down four or more times.

Last December DOE began transferring Sulphur Mines' sour crude to the Big Hill site near Beaumont, Tex.

DOE has shipped 10.8 million bbl to Big Hill and will empty Sulphur Mines by December, shipping another 5.6 million bbl to Big Hill and 8.6 million bbl to the West Hackberry, La., site.

The Sulphur Mines site consists of 174 acres of fee owned land and 250 acres of assignable leases. It has three salt dome storage caverns, pumping and control facilities, maintenance and administrative buildings, and fire protection and electrical service facilities. Offsite facilities include four brine disposal wells and a fresh water intake system.

DOE acquired Sulphur Mines, which had existing underground storage caverns due to industrial brine production, in February 1979 during the initial, accelerated SPR buildup. It began filling the caverns with crude in July 1981 and completed that process in 1983.