LAKE CHARLES CRACKER PROJECT (LCCP) & GAS-TO-LIQUIDS PROJECT (GTL)

Rezoning Application

PREPARED FOR: PREPARED BY: APRIL 2014

CALCASIEU PARISH POLICE JURY C.H. FENSTERMAKER & ASSOCIATES, LLC

Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Project Team

C.H. Fenstermaker & Associate, LLC 135 Regency Square Lafayette, 70508 Tel: 337‐237‐2200 www.fenstermaker.com

Kean Miller LLP 400 Convention Street, Suite 700 Baton Rouge, Louisiana 70802 Tel: 225‐382‐3411

Villavaso & Associates, LLC 6304 Beauregard Avenue New Orleans, Louisiana 70124 Tel: 504‐343‐9096

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

TABLE OF CONTENTS

1.0 INTRODUCTION ...... 4 2.0 SASOL GLOBAL ...... 4 3.0 THE PROJECTS ...... 5 4.0 SITE LAYOUT ...... 6 5.0 ZONING REQUEST ...... 10 6.0 ECONOMIC IMPACT ASSESSMENT ...... 14 7.0 SAFETY, HEALTH, AND ENVIRONMENTAL ...... 16 8.0 ENVIRONMENTAL PERMITTING ...... 19 9.0 TRAFFIC IMPACT ANALYSIS ...... 21 10.0 DRAINAGE IMPACT ANALYSIS ...... 25 11.0 CONCLUSION ...... 28 REFERENCES ...... 29 EXHIBITS ...... 30

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

1.0 INTRODUCTION

Sasol North America Inc. (Sasol) plans to make a significant investment in Southwest, Louisiana, with the proposed construction of a world‐scale ethane cracker and derivatives complex as well as a gas‐to‐ liquids facility at its Westlake site. This innovative complex will not only benefit our nation’s energy security, but will also be a tremendous economic stimulus to this region.

To begin construction on this project, Sasol is requesting the rezoning of purchased property within its site plan. This application has been prepared to summarize the economic, traffic, drainage, and environmental impacts associated with this project, and to address these impacts in accordance with local, state, and federal standards. This information is being presented to the Calcasieu Parish Police Jury (CPPJ) – Division of Planning and Development so that it can make a decision on this rezoning request.

Details pertaining to Sasol’s cooperation with other public and private entities are detailed in the developer’s agreement that accompanies this application.

2.0 SASOL GLOBAL

Sasol is an international integrated energy and chemical company that leverages the talent and expertise of our more than 35,000 people working in 37 countries. Sasol develops and commercializes technologies and builds and operates world‐scale facilities to produce a range of products including

SASOL GLOBAL

 Based in Johannesburg, South Africa  US Headquarters in Houston,  35,000 Employees in 37 Countries  Operations produce the building blocks that help make everyday products including detergents, plastics, and liquid fuels.

CORE VALUES

Safety-People-Integrity-Accountability- Stakeholder Focus-Excellence in all that they do

COMMITMENT

 Committed to providing a safe working environment for their employees and being a good neighbor in the communities where they operate.  Committed to advancing sustainable development.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application liquid fuels, high‐value chemicals and low‐carbon electricity. These fuels and chemicals are then used to produce the LAKE CHARLES CRACKER building blocks that make everyday products such as PROJECT (LCCP) detergents, plastics, and fragrances. Ethane “cracking” is the Sasol is headquartered in Johannesburg, South Africa. Its process of breaking down headquarters is in Houston, Texas. molecules of ethane contained in natural gas to Sasol’s Louisiana industrial facility, known as the Lake create ethylene Charles Chemical Complex (LCCC), purchased in 2001 from RWE DEA (and formerly known as Condea‐Vista), began Will produce approximately initial operations in 1961 with the world's largest synthetic 1.5 million tons of ethylene Alcohol Unit. Through the 1960s and 1970s, the facility per year expanded to include a Normal Paraffin Unit, Ethoxylation Estimated Cost Unit, Ethylene Unit and Alumina Unit. In 1981, a Linear $5-$7 billion Alkylbenzene Unit was added to the facility and in 2004 the R&D facility was relocated from Austin, Texas to the LCCC. Schedule 2014 Begin Construction Sasol’s goal is to minimize risk, eliminate incidents, 2017 Startup responsibly manage environmental impacts, and enable excellence in operations and business performance while providing a workplace that protects our employees, service providers, and neighbors. GAS-TO-LIQUIDS Sasol makes important economic contributions to the PROJECT (GTL) communities in which it operates. Each year Sasol donates more than $300,000 to local nonprofit organizations and is a First in the US major contributor to the economy of Southwest Louisiana through annual taxes and the purchase of goods and Proven Technology that services totaling more than $160 million. coverts natural gas into GTL diesel and other products

3.0 THE PROJECTS Will convert natural gas into more than 96,000 barrels Sasol is proposing construction and development of per day of GTL diesel approximately 3,034 acres of property just west of Estimated Cost Westlake, Louisiana in central Calcasieu Parish. The projects $11-$14 billion are composed of two facilities: A chemical facility known as the Lake Charles Cracker Project (LCCP) and a Gas‐To‐Liquids Schedule facility (GTL). The two projects have separate economic 2016 Begin Construction drivers, and each can stand alone without the need for the 2019 Phase 1 Startup 2020 Phase 2 Startup other.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

The chemical facility will be a world‐scale ethane cracker. Ethane “cracking” is the process of breaking down molecules of ethane contained in natural gas to create ethylene, one of the building blocks of the petrochemical industry. The facility will produce approximately 1.5 million tons of ethylene per year. The ethylene will be used in seven downstream derivative plants to produce a range of products such as detergents, fragrances, paints, film, synthetic fibers, and food LCCP and GTL Projects packaging. Estimated cost of the facility is $5 to $7 billion. Pending final investment decision, construction is set to begin in Largest single 2014, with beneficial operations commencing in 2017. manufacturing investment in the history of The GTL facility will be the first in the United States. The GTL Louisiana. facility converts natural gas into diesel for transportation, as well as other products. GTL diesel burns cleaner and has lower greenhouse gas emissions than conventional diesel. It is also virtually free of sulfur and aromatic compounds. The facility will product more than 96,000 barrels per day of liquid fuels and chemicals including: GTL diesel, GTL naphtha, liquefied petroleum gas, paraffin, GTL base oils and medium hard waxes. Estimated cost of the facility is $11 to $14 billion. Pending final investment decision, construction would begin in 2016, with beneficial operations commencing in 2019. The project is the largest single manufacturing investment in the history of Louisiana and one of the largest foreign direct investment manufacturing projects in the history of the United States.

The project will be designed with proven, modern pollution control equipment and waste minimization process. The project will also have processes in place that recycle wastewater to minimize environmental impact and conserve water resources.

4.0 SITE LAYOUT

The existing Sasol Lake Charles Chemical Complex is located west of Westlake, Louisiana and is bound by Houston River Road to the north and Old Spanish Trail to the South. The proposed site expansion will occur to the west of the existing Sasol facility.

A general plot plan showing the boundaries of the existing operations, LCCP, GTL, shared facilities, and construction support can be seen in Figure 1.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 1: Project Plot Plan

Similar to Sasol’s existing facility, the LCCP and GTL projects will predominantly be buffered through the use of berms, natural vegetation, and facility buildings. Sasol plans to minimize the visual impact of the LCCP and GTL projects. A driver on Houston River Road would see something similar to what is shown in Figures 2, 3, and 4. Figure 2 represents the visual along Houston River Road looking towards the GTL facility. Similarly, Figure 3 and Figure 4 represent the views of the LCCP from Houston River Road. As you can see, from both angles, the majority of the facilities will be obstructed by a berm which will be manicured with trees and shrubbery. Along Old Spanish Trail, a driver would see tanks and pipe racks in the foreground (Figure 5). The general location of the renderings in relation to the facility plot plan can be seen in Figure 6.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 2: View #1 – Conceptual Rendering of the GTL facility from Houston River Road looking Southwest

Figure 3: View #2 – Conceptual Rendering of the LCCP facility from Houston River Road looking Southwest

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 4: View #3 – Conceptual Rendering of the LCCP facility from Houston River Road looking Southwest

Figure 5: View #4 – Conceptual Rendering of the LCCP facility from Old Spanish Trail looking Northwest

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 6: General location of the renderings views

5.0 ZONING REQUEST

Sasol is requesting that Calcasieu Parish:

1. REZONE SASOL OWNED PROPERTY: Rezone 1,470 acres of Sasol‐owned property from agricultural, single family residential, mixed residential, manufactured home park, general commercial, and light industrial to I‐2 Heavy Industrial (Figure 7).

2. COMPLETE A FEASIBILITY STUDY FOR REZONING NON‐SASOL OWNED PROPERTY: Complete a feasibility study to rezone approximately 177 acres of non‐Sasol owned properties within the overall boundary to I‐2 Heavy Industrial. Figure 8 shows both the areas that Sasol is requesting to be rezoned (purple color), as well as the areas they are requesting a feasibility study be completed (green color). If granted, this would result in a uniform I‐2 Heavy Industrial zone in this area. A map showing the final proposed zoning can be found in Figure 9 (I‐2 Heavy Industrial is shown in purple). Detailed maps and legal descriptions of the proposed rezoning are included as part of the developer’s agreement that is part of this rezoning application.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

3. REVOKEMENT AND REDEDICATION OF PUBLIC ROADS: Revoke the following public roads as currently located in their entirety, except for the portions of such roads that may be needed to allow owners to access their properties: 1st Avenue, 2nd Avenue, 3rd Avenue, 4th Avenue, 5th Avenue, 6th Avenue, 7th Avenue, 8th Avenue, Bolsius Road, Center Street, Cynthia Street, Electric Drive (existing location and originally platted location), Evergreen Road, Goldrich Drive, Independence Road, Laurel Avenue, Lincoln Avenue, Madison Street, Merlin Street, Michigan Avenue, Orphanage Road, Powell lane, Rigmaiden Avenue, Trousdale Road, Verret Road, and WB Noris Subdivision Road. In addition revoke all roads within the Sasol property boundary that were previously dedicated or recorded but were not constructed. It is being requested that the 45 acres of revoked roads also be rezoned as I‐2 Heavy Industrial. A map showing the requested roads to be revoked can be found in Figure 10.

4. COMPLETE A STUDY FOR THE INCLUSION OF REZONED PROPERTY INTO LOCKPORT INDUSTRIAL DISTRICT: Complete a study to include the 1,692 acres of rezoned I‐2 Heavy Industrial property into the existing Lockport Industrial District. A map showing the existing and proposed limits of the Lockport Industrial District can be seen in Figure 11.

See the EXHIBITS section of this report for larger (11”x17”) maps of Figure 1 to Figure 11.

Figure 7: Existing Zoning Map

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 8: Proposed Zoning Map

Figure 9: Final Zoning Map

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Figure 10: Proposal for Streets to be Remain, Rededicate, and Revoke

Figure 11: Proposed Lockport Industrial District Expansion

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

6.0 ECONOMIC IMPACT ASSESSMENT

On behalf of Sasol, NERA Economic Consulting performed the economic impact assessments for establishment of the two proposed stand alone industrial facilities. With cooperation from Sasol, NERA used detailed facility information and customized a state‐of‐the‐art economic model developed by Regional Economic Models, Inc. (REMI) to study the potential economic impacts of the two proposed projects for both the state of Louisiana and the United States. Based on the model results and NERA’s calculations, the LCCP construction is expected to account for 20‐40% of total private investment in the state of Louisiana while the GTL Project will account for as much as The LCCP 44%. construction is The NERA team also identified expected trends concerning gains expected to account within the Louisiana and United States economies. On the front end, for 20-40% of the total private project construction expenditures will result in direct economic investment in the growth through the employment of construction crews in Louisiana state of Louisiana. and procurement of construction materials from the United States. Indirect gains can result from the projects’ various needs for goods and services. Income from both direct and indirect sources will induce further gains within the state and national economies. For example, higher employment rates and wages will result in increased spending on other goods and services. Therefore, the construction of the projects presents a multiplier effect. The proposed projects will directly employee more than 5,000 construction workers during peak construction in 2016, increasing overall employment in Louisiana by 30,000 during 2016 due to multiplier effects. Although Sasol plans to hire locally as much as possible, the influx of construction workers will increase the housing demand in Calcasieu Parish. These projects will have a large impact housing availability, rentals, hotels, campgrounds and RV parks, furthering the multiplier effect. When operational the facilities will employee approximately 1,200 workers at an estimated median salary of $89,000 a year, compared with the Calcasieu Parish median salary of $35,772. Calcasieu Parish median salary Additionally, economists have determined that the construction of $35,772 such sophisticated operating facilities as those proposed by Sasol would create an agglomeration effect. This essentially means small Sasol Production communities or towns will be generated by the additional businesses, Employee median salary restaurants, and housing that will develop near the proposed project $89,000 sites to accommodate its workers. Once construction is complete and the facilities are operational, local, state and national economies will continue to experience direct gains through the employment of facility workers. Indirect gains will come from the consumption of domestic goods and services, ranging from local purchases to using natural gas from the United States. Increased spending from direct and indirect gains will continue to promote economic growth on the local, state and national level. In addition, the agglomeration effect will persist throughout the facilities’ operations to accommodate the facility workers.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

The sophistication of these projects brings a need for higher education. SOWELA Technical Community College will provide training for these and similar projects. As a result, the College has received $20 million in state funding to begin construction of new facilities and training programs. Construction on the new facilities will SOWELA Technical begin in 2014, furthering the multiplier effect. Community College received $20 million in NERA used the REMI model along with detailed expenditure and funds from State of operational information from Sasol, to estimate gains in the Louisiana specifically for Louisiana economy throughout the two proposed projects’ training programs as a result of these projects. construction and operations. The table below identifies the average annual economic gains for the LCCP and GTL projects. Gains from the LCCP are calculated over the period of 2013‐2041, and the GTL Project gains are predicted for the period of 2013‐2044.

Category LCCP GTL Project Increase / year Increase / year Louisiana Gross State Product (GSP) $900 million $3.3 billion Louisiana Personal Income $300 million $1.7 billion Louisiana Employment 3,900 jobs 21,000 jobs Louisiana Government Revenue $50 million $235 million

According to the economic models, Sasol will pay an average of $150 million in property taxes to Calcasieu Parish in “year 11” between the two facilities. Beyond the local and state level, income generated by the two projects will contribute to the national economy through the purchase of domestic goods and services by Sasol, its employees, and the members of the agglomeration. NERA used the REMI model to also estimate monetary gains for the United States economy from the construction and operations of the two proposed projects. The table below identifies average annual gains estimated for both projects. As with Louisiana’s economic forecast, gains for the LCCP are averaged over the period of 2013‐2041, and the GTL Project gains are averaged for the period of 2013‐ 2044. Economic growth for the United States economy includes the predicted values shown above in Louisiana’s gains.

Category LCCP GTL Project Increase / year Increase / year US Gross Domestic Product (GDP) $5.1 billion $7.8 billion US Personal Income $2.1 billion $3 billion US Employment 38,000 jobs 55,000 jobs US Government Revenue $260 million $439 million US Net Exports ‐‐ $1.7 billion

Overall, the NERA study results indicate that substantial growth is expected within Calcasieu Parish, the state of Louisiana, and U.S. economies as a result of the proposed construction and operations of Sasol’s two projects.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

7.0 SAFETY, HEALTH, AND ENVIRONMENTAL

Sasol is committed, at the highest level, to safe and SASOL’S COMMITMENT TO reliable operations. Sasol’s Safety, Health, & Environment SAFETY, HEALTH, AND THE (SHE) policies articulate their corporate commitment to ENVIRONMENT (SHE) safety and reliability. We, the people of Sasol, striving Resource Report 11, which is part of the Environmental for excellence in all we do, Assessment completed by URS Corporation on behalf of recognize the impact that our Sasol, describes the design, construction, operation, and activities can have on people maintenance measures to maximize the projects’ reliability and the environment. Safety, and to minimize potential hazards to the public from health and protection of the potential failure of project components and/or chemical environment will form an releases as a result of accidents or natural catastrophes. integral part of our planning and Sasol follows a wide range of state and federal regulations decision making. We will and guidance documents that apply to the design and manage our company, wherever operations of new facilities. Some of these include: we do business, in an ethical way that strikes an appropriate  Process Safety Management (29 CFR 1910.119) and well‐reasoned balance  Risk Management Program (40 CFR Part 68) between economic, social and  The National Oil and Hazardous Substances environmental needs. We expect Pollution Contingency Plan and the Area our employees and service Contingency Plans for the local Area providers globally, to take  US Coast Guard Marine (USCG) Safety Manual personal responsibility to  Occupational Safety and Health Administration embrace this ambition in all of (OSHA) requirements for worker health and safety our day‐to‐day activities. (29 CFR 1910.120) Our goal is to eliminate  USCG National Preparedness for Response incidents, minimize risk, Exercise Program responsibly manage  OSHA Employee Emergency Plans and Fire environmental impacts and Prevention enable excellence in operations  Spill Prevention and Control and business performance while  Startup, Shutdown, and Malfunction Plans (40 CFR providing a workplace that Part 63) takes into account the safety  Department of Homeland Security CFATS Program and wellbeing of our people and  Louisiana Department of Natural Resources service providers. Pipeline Safety Program

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Sasol has many Sasol-Specific operation standards that will govern the design and operations of the new facilities with rules, regulations and guidelines for:

 Incident Investigation and Reporting  LCCC Emergency Response Team  Personal Protective Equipment Procedure  LCCC Railroad Car Derailment  LCCC Community Awareness and  Respiratory Protection Procedure Emergency Response (CAER) Procedure  Hazardous Waste Operations And Emergency  LCCC Southwest Louisiana Mutual Aid Response Procedure  Hurricane Preparedness  LCCC Emergency Head Count Procedure  Fire Protection  Incident Command System  LCCC Emergency Notification/Call-Out  Emergency Telephone Numbers Procedure  Site Topography  LCCC Security Procedure

Sasol has planned the design, construction, and operation of its proposed LCCP and GTL projects to avoid potential and real adverse environmental effects as much as possible. Strategized planning, well designed engineering technologies, and best operating practices will be used to avoid both potential and real adverse environmental effects.

The likelihood for potential hazards will be reduced during the design phase by using buffer strips or other methods of physical separation around the project sites and siting and safety design to prevent failures due to natural risks. Other engineered designs, when applicable will use the International Code Council for further protection of human life and environment. The proposed projects would be built to meet or exceed the most stringent national and international safety standards, which include full containment storage tanks, multiple gas detectors, infrared fire detectors, closed‐circuit cameras, stringent security measures and advanced safety training. Equipment‐design specifications are rigorously reviewed to protect operational integrity.

All construction will be conducted pursuant to guidelines of a quality assurance program as implemented by the project management team. The operation will benefit from intensive personnel selection and training, strict procedures, knowledgeable supervision, and diligent overview by management.

Sasol is a proud and active member of the Lake Area Industry Alliance (LAIA), Sasol is a which is comprised of 23 local industries. Sasol’s participation in the LAIA member of the enhances the safety of its facility in several ways. It enables Sasol to learn best Lake Area practices from other industries, it provides incentive for Sasol to achieve high Industry Alliance and levels of safety as these safety records will be communicated by LAIA the Southwest throughout the area, and it enables Sasol to develop communications with Louisiana community officials that are beneficial in the event of an emergency. Mutual Aid

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

In addition Sasol is a long‐standing member of the Southwest Louisiana Mutual Aid (SLMA). The objective of this organization is the joining together of fire‐fighting, law enforcement, rescue, and first aid manpower and facilities among Southwest Louisiana industries and municipalities for mutual assistance in case of emergency situations ‐ either natural or man‐made.

SASOL’S SAFETY, HEALTH, AND THE ENVIRONMENT PRINCIPLES

 Conducting their business with respect and care for people and the environment  Responsible utilization of natural resources  Implementing responsible care for all Sasol’s chemical and associated businesses. Non-chemical business will implement appropriate, recognized codes of practice.  Continually improving our safety, health and environmental performance.  Complying, as a minimum, with all applicable legal and other agreed requirements.  Promoting dialogue with stakeholders about safety, health, and environmental performance.

SASOL ACHIEVES THESE BY:

 Implementing internationally recognized safety, health, environmental and quality management systems.  Developing and implementing inherently safer and cleaner technologies.  A ‘cradle to grave’ approach to the products we develop, manufacture, use, distribute, and sell.  Informing and appropriately training all employees and contractors on safety, health, and environmental matters.  Responding effectively to safety, health, and environmental emergencies involving our operations and products.  Engaging with relevant authorities and institutions on the formulation of legislation, standards, and the implementation thereof.  Benchmarking internationally on best safety, health, and environmental practices.  Sharing safety, health, and environmental reduction best practices throughout Sasol.  Providing appropriate resources required to implement the above.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

8.0 ENVIRONMENTAL PERMITTING

Sasol’s goal is to responsibly manage potential environmental impacts while promoting operational excellence and business performance. Sasol is committed to complying with all environmental regulations, specifically to implement the necessary mitigation measures in cooperation with all regulatory agencies. Sasol is seeking various permits from state and federal agencies to allow the new construction of the LCCP and GTL projects. Some of these permits include various air quality permits, wastewater permits, pre‐construction and post‐construction stormwater permits, and US Army Corps of Engineers (USACE) wetland permits. A complete list including the agency and status are listed within this report.

LCCP and GTL Permits Agency Status Clean Air Act (CAA) Prevention of Louisiana Department Permit application submitted to LDEQ: April 30, 2013 Significant Deterioration (PSD) of Environmental Public hearing: March 25, 2014 Permit Quality (LDEQ) Anticipated authorization date: May 2014 CAA Title V Permits LDEQ Permit applications submitted to LDEQ: April 30, 2013 Public hearing: March 25, 2014 Anticipated authorization date: May 2014 Clean Water Act (CWA) Section 404 U.S. Army Corps of LCCP/GTL and Rivers and Harbors Act (RHA) Engineers (USACE) Application submitted: July 24, 2013 Section 10 Permit Anticipated authorization date: June 2014 Construction Dock Application submitted: May 20, 2013 Anticipated authorization date: June 2014 CWA Section 401 Water Quality LDEQ Application Submitted: July 24, 2013 Certification Anticipated Authorization date: June 2014 CWA Louisiana Pollutant Discharge LDEQ Permit renewal and modification application submitted to Elimination System (LPDES) Permit LDEQ: April 30, 2013 (Industrial Wastewater Discharge Anticipated authorization date: May 2014 Permit) LPDES Storm Water General Permit LDEQ Notice of Intent submitted: January 7, 2014 for Construction Activities ‐ Five Permits received: January 22, 2014 Acres or More (LAR100000) Louisiana Multi‐Sector General LDEQ Obtained: the existing facilities holds a Multi‐Sector Permit (MSGP, LAR05M448) for General Permit that will need to be modified at the Storm Water appropriate time to cover the LCCP and GTL projects Louisiana General Permit for LDEQ Obtained: the existing facilities hold a Hydrotest permit Hydrotest Water (LAG679012) and can be utilized by the LCCP and GTL projects Solid Waste Permit LDEQ Obtained: the existing facility has a solid waste generator ID and no new solid waste permitted units are anticipated for the LCCP and GTL Projects. Hazardous Waste Permit/RCRA LDEQ GTL ‐ Application submitted: February 10, 2014. Compliance GTL ‐ Anticipated authorization data: January 2015

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ENVIRONMENTAL PERMITS FOR THE LAKE CHARLES CHEMICAL COMPLEX EXISTING FACILITIES

Existing LCCC Permits Agency Description and Status Clean Air Act Prevention of LDEQ Alumina Unit No. PSD‐LA‐644 (approval of modification to LCCC Alumina Significant Deterioration Unit, in effect from 9/19/00 to 3/19/02) Permit LAB Unit No. PSD‐LA‐291 (M‐3) (approval of modification to LCCC Linear Alkyl Benzene Unit on 11/29/10) Clean Air Act Title V Permits LDEQ Alumina Unit Title V No. 2565‐V6 (approval of operating permit renewal and modification for the LCCC Alumina Unit, in effect from 10/8/12 until 10/8/17) Ethylene‐Activated Sludge‐Steam Unit Title V No. 2743‐V5 (approval of permit modification for the LCCC Ethylene/Activated Sludge /Steam Unit, in effect from 7/12/12 until 8/8/13) LAB Unit Title V No. 2894‐V4 (approval of permit modification for the LCCC Linear Alkyl Benzene Unit, in effect from 7/13/12 until 11/29/15) NPU Unit Title V No. 2896‐V5 Alcohol Unit Title V No. 2865‐V4 (approval of permit modification for the LCCC Alcohol Unit, in effect from 9/27/11 until 6/14/16) ETO Unit Title V No. 2325‐V4 (approval of permit modification for the LCCC Ethoxylation Unit, in effect from 11/1/12 until 12/9/13) CoMonomer Unit Title V No. 3088‐V1 (approval of permit modification for the LCCC CoMonomer‐1 Unit, in effect from 2/22/13 until 4/25/16) CWA Section 404 and Rivers USACE MVN‐2011‐02625‐WNN (for work related to construction of the and Harbors Act Section 10 Comonomer 1 unit (a/k/a Tetramerization unit including parking lot, Permit warehouse, receiving area, construction access and haul roads, material storage area) MVN‐2012‐1425‐WB (for construction of a railcar storage facility off of E. Burton St.) MVN‐2004‐294‐WKK (for construction of a locker room for alcohol unit and a first aid bldg.) MVN‐2001‐1302‐WJJ (to install box culverts) CWA Louisiana Pollutant LDEQ LPDES Permit No. LA0003336 in effect from 12/1/09 until 11/30/14; Discharge Elimination System renewal application was filed on 4/30/13) (LPDES) Permit (Industrial Wastewater Discharge Permit) Louisiana LPDES Storm Water LDEQ LPDES Storm Water Multi‐Sector General Permit No. LAR05M448 Multi‐Sector General Permit (reissuance notice on 5/27/11 for LPDES storm water general permit for the (MSGP, LAR05M448) LCCC) Active Construction Storm Water Permit LAR10H509 (for discharges to Bayou Verdine resulting from construction activities associated with construction of the Comonomer 1 unit – construction nearly complete at this time) CWA Section 401 Water LDEQ WQC 120613‐01 issued 8/8/12 for Corps Permit MVN‐2012‐1425‐WB to Quality Certification clear land and place fill material for the construction of a railcar storage facility WQC 111208 issued 1/6/12 for Corps Permit MVN‐2011‐02625‐WNN to clear land and place fill material for industrial facility expansion WQC 110602‐02 issued 6/21/11 for Corps Permit MVN‐2001‐1302‐WJJ to install box culverts for industrial facility expansion WQC 090625‐02 issued 7/21/09 for Corps Permit MVN‐2004‐2924‐WKK to clear land and place fill material for construction of an alcohol locker room and first aid office building

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Existing LCCC Permits Agency Description and Status LPDES General Permit for LDEQ Reissuance of LPDES General Permit (LAG670000) for Sasol North America, Discharges of Hydrostatic Inc. on February 1, 2013 under Permit No. LAG679012, covering discharge Test and Vessel Testing of hydrostatic test and vessel testing wastewater by Sasol North America, Wastewater Inc. for statewide pipeline operations located in multiple parishes in Louisiana. Solid Waste Permit LDEQ Standard Type I Permit No. P‐0251R1 (covers Sand Filter Settling Basins (North and South); Holding Pond; and Stormwater Diversion Ponds (North and South)), in effect 1/23/10 until 6/23/20. Hazardous Waste LDEQ Hazardous and Solid Waste Amendment (HSWA) Post‐Closure Permit, Part Permit/RCRA Compliance B, LAR000041087‐PC‐RN‐1. Pursuant to this permit, Sasol North America will perform post‐closure care of the Closed Activated Sludge Unit and the required corrective actions. Permit is in effect from 8/15/12 to 8/14/22. Radioactive Material License LDEQ License No. LA‐4902‐L01 (Amendment No. 24) was issued following renewal on July 1, 2013 and expires on July 31, 2018

9.0 TRAFFIC IMPACT ANALYSIS

A development the size of Sasol’s LCCP and GTL facilities will inevitably impact traffic within the Parish. Sasol contracted Alliance Transportation Group to complete a Traffic Impact Analysis (TIA) to evaluate the traffic impacts of the site on the adjacent roadway network and to determine the road traffic improvements necessary to mitigate these impacts.

Analysis was performed under the following scenarios: Sasol has completed a  Existing Conditions (2013) Traffic Impact Analysis  Construction Ramp‐Up Phase 1 (January 2015) (TIA) to evaluate the  Construction Ramp‐Up Phase 2 (May 2015) traffic impacts of the  Peak Construction Phase (February 2016) LCCP and GTL projects  Plant Operations and Maintenance Phase (2020) on the local traffic and to determine the road The study was completed using a timeline of worker activity which traffic improvements anticipates that the project site will generate approximately: necessary to mitigate these impacts.  1,700 worker trips during construction Ramp‐up Phase 1  3,400 worker trips during construction Ramp‐up Phase 2  5,100 worker trips during Peak Construction Phase  1,700 worker trips post construction during the Plant Operations and Maintenance Phase

The Traffic Impact Analysis (TIA) evaluated the impact of the traffic associated with the project on the surrounding roadway network. A total of 26 intersection operations were evaluated: 15 within the immediate study area and 11 related to off‐site parking facilities.

To mitigate the effect of site generated traffic in the immediate proximity of the construction site, Sasol has proposed to implement three off‐site parking facilities and shuttle service for its employees. The off‐ site parking locations analyzed include:

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

 Cities Service Highway (LA 108) and Napoleon Street (US 900  Beglis Parkway (LA 27) and Louis Alleman Parkway  Beglis Parkway (LA 27) and Mosswood Road.

Additionally, Sasol identified that there will be multiple shifts during construction to minimize disruptions to the surrounding roadway network. There will be two day shifts; one beginning at 6:00 AM and one beginning at 6:30 AM. Approximately 45 percent of the workforce will be assigned to each of these shifts. The remaining 10 percent of the workforce will be assigned to the night shift, which is proposed to begin at 6:00 PM. The intersection improvement locations and corresponding phase for all mitigation measures are illustrated in Figure 12.

Figure 12: Improvement Locations by Construction Phase

At the time of this application Sasol has received comments from CPPJ and LA DOTD on the TIA. Sasol will address these, as well as any additional comments. Sasol also agrees it will continue to work with both the Parish and LA DOTD to mitigate traffic impacts. At a minimum the road traffic improvements included in this report will be completed upon completion of the financial investment decision to move forward with the projects. Some of these intersections will be analyzed for potential roundabout locations, based on comments from CPPJ and LA DOTD.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Ramp‐Up Phase 1 (January 2015)

Sasol Mitigation Strategies: During the Ramp‐up Phase 1, all construction employee traffic will  Off-site Parking Facilities and Shuttle be on‐site with access to the site Service for Employees from Evergreen Road, west of the  Multiple Employee Shifts KCS rail line. It is expected that  Installation of Traffic Signals 1,700 workers will be on site for this  Modification of Signal Timing Parameters  Construction of Turn Lanes phase of construction. After analysis  Roadway Widening of the existing infrastructure in the area surrounding the project site, construction of the following roadway improvements prior to the beginning of Ramp‐up Phase 1 include:

 I‐10 Service Road and I‐10 Eastbound Westlake Ramps: Modify signal timing  Sampson Street (LA 378) at Sulphur Avenue (LA 379): Modify signal timing  Sampson Street (LA 378) at John Stine Road: Modify signal timing  Old Spanish Trail at Trousdale Road: Construct eastbound right‐turn lane  Old Spanish Trail at Prater Road: Install traffic signal; Construct westbound left‐turn bay and eastbound right‐turn bay  Old Spanish Trail at Evergreen Road: Install traffic signal; Construct eastbound left‐turn bay; Construct channelized westbound right‐turn bay with additional northbound acceleration lane on Evergreen Road exiting the intersection; Construct southbound right‐turn bay  Houston River Road (LA 379) at Beglis Parkway (LA 27): Modify signal timing

Preliminary construction cost estimates for the improvements associated with this construction phase total $1,288,000.

Ramp‐Up Phase 2 (May 2015)

In Ramp‐up Phase 2, some laborer parking will be on‐site with additional parking provided at two off‐ site locations. The off‐site parking will be implemented near the intersections of Napoleon Road (US 90) at Coach Williams Drive (LA 108) and Beglis Parkway (LA 27) at Louis Alleman Parkway. On‐site parking will continue to access the site from Evergreen Road, west of the KCS rail line. It is expected that 3,400 workers will be on site for this phase of construction.

The following intersection improvements and traffic control modifications will be implemented to accommodate all the site generated traffic.

 Beglis Parkway (LA 27) at Louis Alleman Parkway: Install traffic signal; Construct westbound lane to be shared by through and right turning vehicles  Beglis Parkway (LA 27) at Burton Street: Construct westbound right‐turn bay

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

 Napoleon Street (US 90) at Coach Williams Drive (LA 108): Modify signal timing to allow for permissive/protected eastbound left turn  Coach Williams Drive (LA 108) at Maplewood Drive: Modify signal timing

Preliminary construction cost estimates for the improvements associated with this construction phase total $427,000.

Peak Construction Phase (February 2016)

During the Peak Construction Phase, parking will be the same Road Traffic as Ramp‐up Phase 2 with an additional off‐site parking facility Improvements Cost located near the intersection of Mosswood Road and Beglis

Parkway (LA 27). On‐site parking will continue to be accessed Ramp-Up Phase 1 via Evergreen Road. It is expected that 5,100 workers will be January 2015 on site for peak construction. $1.3 Million

In order to accommodate the site generated traffic from the Ramp-Up Phase 2 Peak Construction Phase, the construction of the following May 2015 roadway improvements prior to the beginning of this phase $0.4 Million include: Peak Construction Phase  Napoleon Street (US 90) at Prater Road: Modify signal February 2016 timing $3.3 Million  Napoleon Street (US 90) at Trousdale Road: Modify signal timing Plant Operations and  Beglis Parkway (LA 27) at Houston River Road (LA 379): Maintenance Phase Construct eastbound right‐turn bay and northbound 2020 right‐turn bay $0.2 Million  Beglis Parkway (LA 27) at Louis Alleman Parkway: Modify striping on the westbound approach to allow for a dual TOTAL left‐turn during the PM peak hour $5.2 Million  Beglis Parkway (LA 27) at I‐10 WB Ramps: Install traffic signal; Modify pavement markings to create a westbound right‐turn bay  Arizona Street (LA 27) at Patton Street: Construct westbound right‐turn bay  Arizona Street (LA 27) from south of Patton Street to Mosswood Road: Widen roadway to four lanes (two in each direction)

Preliminary construction cost estimates for the improvements associated with this construction phase total $3,298,000.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Plant Operations & Maintenance Phase (2020)

During the Operations and Maintenance Phase, all traffic will be located on‐site with access primarily from Evergreen Road, west of the KCS rail line. It is expected that 1,700 workers will be on site for the post construction phase of normal plant operations and maintenance.

In order to accommodate for all construction employee trips being directed to on‐site parking, the analysis determined the following mitigation measure:

 Sampson Street (LA 378) at John Stine Road: Construct eastbound and westbound left‐turn bays and modify signal phasing for protected/permissive left turns

Preliminary construction cost estimates for the improvements associated with this phase total $228,000.

Total construction cost estimates for the improvements associated with all phases of construction total $5,241,000.

10.0 DRAINAGE IMPACT ANALYSIS

As part of the local permitting process with Calcasieu Parish, Sasol submitted a Drainage Impact Analysis (DIA) to CPPJ per the requirements of Parish Ordinance 5429. The main goal of the DIA was to demonstrate that the LCCP and GTL projects were designed to have no adverse impact on surrounding drainage.

No adverse impact means that total flood risk, contamination, erosion, and peak runoff rates will not increase on surrounding areas as a result of the project. The report demonstrated that the interim phases of construction and final site will be built in a manner to ensure no adverse impact on surrounding property. Sasol’s DIA (signed and dated January 20th, 2014) was prepared by URS Corporation and provides an in‐depth evaluation of the future effects of the LCCP and GTL projects on surrounding drainage. This DIA was approved by the CPPJ on February 20, 2014.

A potential impact during the development of Greenfield property is an increase in stormwater runoff. The DIA established baseline land use drainage conditions and runoff characteristics and compared them to the proposed runoff conditions from the development. The DIA proposes methods to mitigate these impacts. Detention ponds are a standard practice to reduce runoff and flood potential from new developments.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Bayou Verdine and Contamination Control

Bayou Verdine is the controlling variable in the drainage on this site and design measures were taken to ensure that the project would not increase the flood levels on this system. Offsite areas to the north flow through the site via Bayou Verdine and these areas were included in the DIA. The Bayou Verdine system eventually flows Sasol proposes 9 into the Calcasieu River. The design basis for this project was detention ponds as part the 100‐year and 10‐year return period rainfall events. of the construction to mitigate the increased Drainage areas for the proposed site include only those areas runoff volume from the that will contribute to the pond/Bayou Verdine system. Areas development. that contain potentially contaminated runoff will be collected internally and will not contribute to the stormwater system. These areas were not included in the drainage areas.

Rainfall Runoff Determination

The Soil Conservation Service Curve (SCS) Number Method was used to calculate the existing and post‐ development runoff potential from the site. This method assigns a number to a parcel of land based on the type of soil, conditions of the soil, and land cover. A higher curve number (e.g., paved surface) produces more stormwater runoff per acre.

The SCS Unit Hydrograph method was used to transform runoff potential into actual flow rates passing for the site and surrounding areas. The main variable in the SCS method is time of concentration. Time of concentration measures how fast water accumulates from a given area. Sloped areas (e.g. rooftops and parking lots) and hardened surfaces speed up the water and shorten the time of concentration compared to grassed or forested areas. Detailed calculations were performed to establish the SCS variables for each sub‐basin within the project and surrounding study area. Sasol proposes nine (9) detention ponds as part of the construction to mitigate the increased runoff volume from Areas that contain the development. potentially contaminated runoff will be collected The DIA used FEMA‐approved numerical models to calculate internally and will not contribute to the current conditions and to evaluate the effectiveness of the stormwater system. proposed mitigation measures. HEC‐HMS calculates the peak runoff values and HEC‐RAS computes the flood risk (flood depths) on surrounding property. Taken together the models have the capability of accurately evaluating the entire drainage system and are the most frequently used design combination for pre‐post drainage analysis.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Flood Risk Determination

The hydraulic (HEC‐RAS) model of the site analyzed the existing flood depths of the onsite channel network and was used to ensure the post‐development conditions would not adversely impact the floodplain. A geometric model of the channel network stream centerlines and channel cross‐sections was created using LiDAR data for the area and site‐specific topographic survey data. Components of the hydraulic model are channel slope, vegetation density and bank conditions, and bridge and culvert crossings. These were investigated closely and are crucial in the models water surface elevation results.

A major component of the proposed development is re‐routing of Bayou Verdine which currently flows through the proposed development area. The rerouted channel will be lined with concrete through the bends and bridge crossings to minimize scour potential in these vulnerable sections. Figure 13 shows a comparison of the existing Bayou Verdine alignment with the proposed channel alignment.

Figure 13: Existing versus Proposed Channel Alignment of Bayou Verdine

Mitigation Measures and FEMA Flood Zone Implications

The results suggest that the re‐routed channel coupled with a 9 pond detention system will provide adequate mitigation to ensure no adverse impact on surrounding flood levels. The channel re‐route will keep the 100‐year floodplain within its banks and will not increase the limits of the flood zone on surrounding property. Bayou Verdine

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

Note that the current effective FEMA Flood Insurance Study for this area was completed in 1988 – long before the creation of LiDAR products and expansion of surrounding industrial areas. Any future revisions to the FEMA flood insurance maps on Bayou Verdine (if any) will be the result of external factors not attributable to the LCCP and GTL facilities. Such external factors typically include improved modeling technology, use of high‐resolution LiDAR and topographic survey data, changes in survey methods, and increased development of surrounding industrial areas. It was not the purpose or scope of this local study to revise the regional FEMA flood insurance maps for Bayou Verdine.

However, for the channel re‐route a Conditional Letter of Map Revision (CLOMR) permit request will be prepared and submitted to FEMA as part of the permit process. This is required by FEMA when proposed projects could alter the hydrologic or hydraulic characteristics of a flooding source and result in modifications The Drainage Impact to the floodway, Base Flood Elevations (BFE), or Special Flood Analysis (DIA) shows that Hazard Area (SFHA). Once construction is complete, a Letter of the proposed LCCP and Map Revision (LOMR) study will be performed to verify that GTL facilities will have no adverse impacts to the the development took place as proposed. Once the LOMR is local drainage, approved by FEMA, the effective Flood Insurance Rate Map floodplain and flooding (FIRM) is updated on location to reflect the completed project. depths. The DIA shows that the proposed development will cause no adverse impacts to the local floodplain and flooding depths.

A phasing analysis was conducted as part of the DIA to ensure that during construction no adverse floodplain impacts would occur. This is due to the possibility that the GTL Project may not be constructed coincident with the LCCP. The DIA proves that construction phasing of the development will not cause adverse impacts to surrounding areas.

11.0 CONCLUSION

This report details Sasol’s commitment to the Parish, through the completion of its economic, drainage, and traffic impact analysis. Sasol will continue to work to ensure that all safety, environmental, and health aspects are met throughout the planning, construction, and implementation of the projects described herein.

This rezoning application details Sasol’s request that Calcasieu Parish rezone 1,470.85 acres of Sasol owned property to I‐2 Heavy Industrial. In addition Sasol is requesting that the Calcasieu Parish – Division of Planning and Development complete a feasibility study to rezone approximately 176.52 acres of isolated properties within the overall boundary to I‐2 Heavy Industrial. Sasol is also requesting that the Parish complete a study to incorporate the newly rezoned, I‐2 Heavy Industrial properties into the existing Lockport Industrial District.

The accompanying Developer’s Agreement, maps, and legal descriptions also detail Sasol’s further commitment to the entities within the area.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

REFERENCES

Alliance Transportation Group. Sasol Lake Charles Ethane Cracker/Gas‐to‐Liquids Project (LCCP/GTL) – Traffic Impact Analysis. January 2014.

NERA Economic Consulting. Economic Impact Assessment of the Sasol Gas‐to‐Liquids (GTL) Facility on the Louisiana and US Economies. November 12, 2013

NERA Economic Consulting. Economic Impact Assessment of the Sasol Chemical Facility on the Louisiana and US Economies. November 12, 2013.

URS Corporation. Revised Drainage Impact Analysis – Sasol North America, Inc. Westlake Sasol GTL and Lake Charles Cracker Westlake, Calcasieu Parish Louisiana. January 2014.

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Lake Charles Cracker Project & Gas‐to‐Liquids Project Rezoning Application

EXHIBITS

EXHIBIT 1: Project Plot Plan

EXHIBIT 2: View #1 – Conceptual Rendering of the GTL facility from Houston River Road looking Southwest

EXHIBIT 3: View #2 – Conceptual Rendering of the LCCP facility from Houston River Road looking Southwest

EXHIBIT 4: View #3 – Conceptual Rendering of the LCCP facility from Houston River Road looking Southwest

EXHIBIT 5: View #4 – Conceptual Rendering of the LCCP facility from Old Spanish Trail looking Northwest

EXHIBIT 6: General location of the renderings views

EXHIBIT 7: Existing Zoning Map

EXHIBIT 8: Proposed Zoning Map

EXHIBIT 9: Final Zoning Map

EXHIBIT 10: Proposal for Streets to Remain, Rededicate, and Revoke

EXHIBIT 11: Proposed Lockport Industrial District Expansion

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u J Overall Rezoning Boundary Lines Parcel (a1) Agricultural Commercial Light (c1) (c2) General Commercial (c3) Central Business Commercial (city) Zoned by Local Municipality Industrial Light (i1) (i2) Heavy Industrial (i2r) Heavy IndustrialRestricted (r1) Single FamilyResidential Mixed(r2) Residential (rm) Multi-Family Residential (rmhp) Manufactured Home Park Legend 0 0.35 Miles This map shows the streets005 to be revoked, rededicated, and streets to remain.

Public Road (COB 241_Pg 321)

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Streets To Be Revoked Public Road (COB 1064_Pg 462) - 402' 1st - 261' Public Road (COB 1064_Pg 468) - 556' 2nd - 1325' Public Road (COB 241_Pg 321) - 6646' 3rd - 1768' Public Road (COB 323_Pg 252) - 1567' 4th - 3143' Rigmaiden - 1442' 5th - 2900' Trousdale - 2311' 6th - 1555' Verret - 1747' 7th - 1500' W.B. Noris Sub. Rd - 1416' 8th - 981' Streets To Remain Bolsius - 395' Murrell - 518' Center - 1336' 1st - 1066' Cynthia - 329' 3rd - 656' Electric (Recorded) - 582' 4th - 213' Electric - 587' 5th - 430' Evergreen - 4409' 6th - 307' Goldrich - 2327' 7th - 155' Independence - 1303' Electric (Current) - 582' Laurel - 883' Evergreen - 9080' Lincoln - 1433' Hardey - 1215' Madison - 558' Harvey Miller - 1017' Merlin - 767' Michigan - 289' Michigan - 2234' Ora - 612' Orphanage - 1153' VCM - 2603' Proposal For Streets To Remain,Rededicate, & Revoke Powell - 2133' Streets To Be Rededicated Public Road (1131779,1132404) - 1547' 3rd - 656' Expansion proposed Lockport District This map shows the existing the shows map This Lockport & Nelson Districts & Districts & Nelson Lockport

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Proposed Lockport Expansion Proposed Lockport District

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v E e g r e r n e Existing Nelson District Nelson Existing Proposed LockportExpansion District Lockport Existing Legend