TEXASTEXASCurrent Status of

Liquid Natural Gas Terminals & Offshore Wind Farms

Jerry PattersonCommissioner

Capitol Hill Ocean Week 2006 – State and Federal Role in Management of Ocean Resources: Addressing Emerging Demands for Liquid Natural Gas and

Offshore Wind Farms.

Presented by Eddie R. Fisher

Director of Coastal Resources

Texas General Land Office

Both LNG & Offshore Wind Active in Texas

Number of LNG Facilities Existing or Proposed in Texas 10 Years Ago.

Number of Offshore Wind Farms Existing or Proposed 5 Years Ago.

ZERO

ZERO

LNG

Existing LNG Facilities - US

Permitted Sites1. Freeport, TX: 1.5 Bcfd (Cheniere/Freeport LNG Dev)2. Sabine, TX: 1.0 Bcfd (Golden Pass – ExxonMobil)Permit Pending Sites3. Corpus Christi, TX: 2.6 Bcfd (Cheniere LNG)4. Corpus Christi, TX: 1.0 Bcfd (Vista del Sol – ExxonMobil5. Corpus Christi, TX: 1.0 Bcfd (Ingleside Energy –

Occidental E.V.) 6. Port Arthur, TX: 1.5 Bcfd (Sempra)7. Port Lavaca, TX: 1.0 Bcfd (Calhoun LNG – Gulf Coast

LNG) Potential Sites (No Permit Filed)

8. Galveston, TX: 1.2 Bcfd (Pelican Island – BP)9. Offshore Galveston, TX: (ConocoPhillips)

Proposed LNG Facilities in Texas

4

1

8

9

6

7

34

5

2

Wind Energy

First Offshore Lease in Texas Signed October 2005

Texas Land Commissioner Jerry Patterson announced Oct. 26, 2005 the first offshore wind energy project in the United States will be built off the Texas coast. The multi-million dollar lease, signed with Louisiana-based Wind Energy Systems Technologies (W.E.S.T.), allows work to begin immediately on the construction of two meteorological towers. These towers will help gather data to determine exactly where the 150 MW wind energy development will be built on an 11,355-acre lease about seven miles off the coast of Galveston. Revenue from the agreement - expected to be at least $26.5 million - will be deposited in the state's Permanent School Fund, which helps pay for public education.

The Great Texas Wind Rush Is On….

Artist’s rendering of Proposed 150 MW offshore wind farm located approximately seven miles offshore of Galveston Island, on an 11,355-acre lease, partnership with Galveston-Offshore Wind, LLC ― a subsidiary of W.E.S.T., LLC out of New Iberia, Louisiana

Migratory Bird Impacts To Be Studied Before Wind Farms Implemented.

RESEARCH PHASE will consist of collecting actual wind data, doing bird migration studies/planning for ways to minimize any potential impact, and obtaining review through all the necessary state and federal resource agencies. • Research phase anticipated to last anywhere from one year to 18 months from the date the analysis is begun but with a deadline of February 2007. • Structurally, will involve two meteorological towers, 80 meters (260 feet) above sea level, within blocks 187L and 188L.

The multi-million dollar agreement — the second such lease in less than a year from the Land Office’s “Texas wind rush” — grants Superior Renewable Energy rights to 39,900 acres of submerged lands in the Gulf of Mexico, just off the coast of Padre Island and south of Baffin Bay. The company plans to build a wind farm there that will generate up to 500 Mw of power — enough to satisfy a small city, or about 125,000 homes.

Corpus Christi, Texas

Second Texas Wind Farm Lease Executed May 2006

Does Texas Have An Advantage?Some Of The Factors Needed

Relatively High Wind Speeds Year RoundProximity to a substation (and capacity)Easements

What Texas OffersWindy CoastlineProximity to SubstationsTexas owns 10.35 miles of submerged land, other coastal states own 3 miles.

10.35 Miles Owned by Texas

Goals of Texas in Wind Energy

To become thenational leader in wind industry in:

– Manufacturing– Research– Service Industry– Infrastructure– Other lessees

A Little Perspective

475 Feet

310 Feet 305 Feet

More Perspective