““Closing” Closing” thethe Mississippi River Gulf Outlet (MRGO): Mississippi River Gulf Outlet (MRGO):

Environmental and Economic ImplicationsEnvironmental and Economic Implications

Coastal Wetland Planning, Preservation, and Coastal Wetland Planning, Preservation, and Restoration Act (CWPPRA)Restoration Act (CWPPRA)

Outreach Committee Topic SeriesOutreach Committee Topic Series

December 2001 December 2001

Case Study of the MRGO Case Study of the MRGO

• Calls for actionCalls for action

• Future considerationsFuture considerations

• What does “What does “closingclosing” mean?” mean?

• Impacts to the regionImpacts to the region

• Project backgroundProject background

MRGO - Background InfoMRGO - Background Info

• Authorized dimensions:Authorized dimensions:

– 650’ surface width, 500’ bottom width650’ surface width, 500’ bottom width

– 36’ depth36’ depth

– 76 miles76 miles

• 1958-65: Construction $92 Million1958-65: Construction $92 Million

• 1956: Approved by Congress1956: Approved by Congress

• 311 million yd311 million yd33 of dredged volume of dredged volume

MRGO LocationMRGO Location

MRGO RationaleMRGO Rationale• Navigation shortcutNavigation shortcut

• Economic developmentEconomic development

New Orleans

“... the (MRGO) is a chance for the industrial development of St. Bernard parish as a

supplement to the great industrial growth of neighboring Orleans parish”

New Orleans States News, 1957

“...Excavation of the (MRGO) could result in major ecological change with widespread and

severe ecological consequences”

US Dept. of Interior, 1958

“... This department is greatly concerned about the direct (MRGO) influence on fish and wildlife

resources...we anticipate considerable indirect losses due to changes in currents, saltwater

intrusion, drifting of spoil into adjacent areas, and other project associated factors”

Louisiana Wildlife and Fisheries Commission, 1958

MRGO - Environmental ImpactsMRGO - Environmental Impacts

• Accelerated erosionAccelerated erosion

• Dredge disposalDredge disposal

• Land loss from excavationLand loss from excavation

1959-1961: 12 ppt 1962-1964: 12 ppt(US Dept. of Interior 1979)

Saltwater Intrusion

MRGO Habitat Loss & Transition MRGO Habitat Loss & Transition (USACE 1999)(USACE 1999)

• Lost, destroyed, or severely altered Lost, destroyed, or severely altered

– 1500 acres cypress swamps and levee forest 1500 acres cypress swamps and levee forest

– 3400 acres fresh/intermediate marsh3400 acres fresh/intermediate marsh

– 10300 acres brackish marsh10300 acres brackish marsh

– 4200 acres saline marsh4200 acres saline marsh• Habitat transition Habitat transition

– 11000 acres fresh/intermediate to brackish11000 acres fresh/intermediate to brackish

– 19000 acres brackish to saline19000 acres brackish to saline

Habitat Loss and Habitat Loss and DisplacementDisplacement

WaterfowlWaterfowl

Fur IndustryFur Industry

Fisheries Reduction and Fisheries Reduction and DisplacementDisplacement

Fisheries DisplacementFisheries Displacement

Storm-Surge Superhighway?Storm-Surge Superhighway?

MRGO - Economic ImpactsMRGO - Economic Impacts

• Regional barge traffic - limited exportRegional barge traffic - limited export

• Local employment: 5000-15000 jobs Local employment: 5000-15000 jobs

• $28/acre to impacted landowners $28/acre to impacted landowners

• Initial surge regional employmentInitial surge regional employment

• 3% of shipping in Southeast La3% of shipping in Southeast La

MRGO MRGO Maintenance Maintenance CostCost

• $22.1 Million per year $22.1 Million per year for dredgingfor dredging

• $41.7 Million in 1998 $41.7 Million in 1998 after Hurricane Georgesafter Hurricane Georges

• 1998: 4.8 deep draft (>=20’) vessels per day1998: 4.8 deep draft (>=20’) vessels per day

• $12,657 per deep draft vessel, per day$12,657 per deep draft vessel, per day

MRGO MRGO Maintenance Maintenance CostCost

Environmental costs?Environmental costs?

• 20,000 acres lost20,000 acres lost

• Ecosystem service values: $300 - $4300/acre Ecosystem service values: $300 - $4300/acre

• $250 million to - $2 billion over past 40 years $250 million to - $2 billion over past 40 years

• Estimating environmental cost:Estimating environmental cost:

– initial value?initial value?

– discount rates?discount rates?

– shape of loss function?shape of loss function?

Calls for ActionCalls for Action

• 1960s-1970s: USFWS, LDWF 1960s-1970s: USFWS, LDWF

• 1998 Formal recognition under Coast 20501998 Formal recognition under Coast 2050

• 1980s-1990s : Environmental groups1980s-1990s : Environmental groups

“…This council does hereby request Louisiana’s Southeast Congressional

Delegation establish a task force to develop a process that will result in the timely

closure of the MRGO”

St. Bernard Parish Council ResolutionDecember 1998

Calls for ActionCalls for Action

What does it mean to close the What does it mean to close the MRGO?MRGO?

• Closing Closing Closing Closing

• Series of mitigation and restoration proposals Series of mitigation and restoration proposals

• Halting of dredging Halting of dredging

• Channel maintenance for fishermen & boaters Channel maintenance for fishermen & boaters

• “ “Close” channel to vessels > 12’ draft Close” channel to vessels > 12’ draft

Draft> 12’

Cargo ShipSurface

Bottom

Keel

Closing the MRGOClosing the MRGO

Downstream Flow

Freshwater

DenseSaltwater

Closing the MRGOClosing the MRGO

Closing the MRGOClosing the MRGO

MRGO RestorationMRGO Restoration

A Diversion for MRGO?A Diversion for MRGO?

• Major funding needed to finance projectsMajor funding needed to finance projects

• Speed reductions proposed Speed reductions proposed

• Rock-buttressed dredge spoil Rock-buttressed dredge spoil

What has been done?What has been done?

• Formation of MRGO Policy Committee Formation of MRGO Policy Committee

Future ConsiderationsFuture Considerations

“…To revitalize the process for a plan to modify the MRGO, the key is to

expedite the Re-evaluation study…”

MRGO Policy CommitteeStatus Report 2000

Future ConsiderationsFuture Considerations

• Consensus for downsizing the MRGOConsensus for downsizing the MRGO

– Address displacement of navigation Address displacement of navigation

– Port of New Orleans expansionPort of New Orleans expansion

– Millenium PortMillenium Port

• USACE Re-evaluation Study of MRGO USACE Re-evaluation Study of MRGO

– Hinges economic feasibility for Hinges economic feasibility for navigationnavigation

• How long?How long?

A Similar Effort?A Similar Effort? The Cross The Cross

Florida Barge CanalFlorida Barge Canal

• GoalGoal: Connect Atlantic to Gulf via 107 miles of channel: Connect Atlantic to Gulf via 107 miles of channel

• 1971: Nixon halts construction - calls for re-evaluation1971: Nixon halts construction - calls for re-evaluation

• 1986: Congress deauthorizes project1986: Congress deauthorizes project

• 1990: Project lands revert back to Florida1990: Project lands revert back to Florida

• 2001: Restoration/mitigation debate ongoing2001: Restoration/mitigation debate ongoing

• The MRGO has accelerated the rate of The MRGO has accelerated the rate of coastal degradation in St. Bernardcoastal degradation in St. Bernard

• Estimated 20,000 acres lost and 20,000 Estimated 20,000 acres lost and 20,000 transitioned toward higher salinitytransitioned toward higher salinity

• Displacement and reductions of fisheries and Displacement and reductions of fisheries and wildlifewildlife

• Economic growth less than expectedEconomic growth less than expected

Summary and ConclusionsSummary and Conclusions

• Consensus for “closure” existsConsensus for “closure” exists

• Beyond the conceptual stage: Beyond the conceptual stage: – Formation of MRGO policy committeeFormation of MRGO policy committee

– Corps Re-evaluation studyCorps Re-evaluation study

– Negotiations with shipping industryNegotiations with shipping industry

• High maintenance, environmental costsHigh maintenance, environmental costs

Summary and ConclusionsSummary and Conclusions

• More realistic time horizons neededMore realistic time horizons needed

• Closing Closing Closing Closing

AcknowledgementsAcknowledgements