BRIEFING FOR BG DUKE DELUCA COMMANDER, MISSISSIPPI VALLEY DIVISION PRESIDENT-DESIGNEE, MISSISSIPPI RIVER COMMISSION JANUARY 22, 2014 William B. Hobgood.

BRIEFING FORBG DUKE DELUCA

COMMANDER, MISSISSIPPI VALLEY DIVISIONPRESIDENT-DESIGNEE, MISSISSIPPI RIVER

COMMISSIONJANUARY 22, 2014

William B. HobgoodExecutive Director

Ouachita River Valley Association1

ORVA HISTORY

• 1893 – “Ouachita River Improvement Association”

• 1950 – “Ouachita River Valley Association”

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AREA OF OPERATION

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ORVA MISSION

• Non-profit organization that promotes development of water and land resources

• Major focus is on operation, maintenance and completion of Ouachita-Black Rivers AR and LA,

Navigation Project

• Represent the private sector of the economy

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ORVA ORGANIZATIONAL STRUCTURE

OFFICERS BOARD OF DIRECTORS STAFF - President - Louisiana – 7 -Executive Director- Vice President - Arkansas – 7

- Sec./Treasurer

GENERAL MEMBERSHIP REVENUE

100 +

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PROJECT/STUDY

1. Ouachita-Black Navigation Project, Red River to Camden, AR

2. Ouachita-Black Navigation Project, Red River to Camden, AR – Bank Stabilization

3. Ouachita-Black Navigation Project, Red River to Camden, AR – Little River Addition

4. Ouachita River Levees, LA

5. Arkansas Lakes - Ouachita, DeGray, and Greeson

6. Ouachita River Watershed Study, AR and LA

ORVA SUPPORTED STUDIES/PROJECTS

OUACHITA RIVER BASIN, AR AND LA

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Ouachita-Black Navigation Project

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Red-Ouachita Basin Levees, Louisiana11

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Ouachita River Watershed13

OUACHITA-BLACK WATERWAY SYSTEM

“MUCH MORE THAN NAVIGATION”

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OUACHITA-BLACK RIVERS NAVIGATION PROJECT

FUNDING(in millions)

FY 2006-2010 FY FY FY FY Avg. 2011 2012 2013 2014$10.9 $7.5 $7.4 $7.5 $9.7 $3.2 supplemental $10.6

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Dredge Butcher Conducting Dredging Operations on the Ouachita River

$3.2 Million Needed Annually for Dredging Operations

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INLAND MARINE TRANSPORTATION SYSTEM STUDY

GUIDELINES TABLE

BUILDING STRONG®

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Guidelines Table

Level #

Title Guideline for Range of Lock Operation Data

1 Full 24/7/365 More than 1000 commercial lockages per year

2 Two Shifts Per Day

Between 500 to 1000 commercial lockages per year.

3 One Shift Per Day

Less than 500 commercial lockages per year

4 Set times per day Limited commercial and/or substantial recreational traffic, with a more consistent pattern of lockage

5 Weekends & Holidays

Little to no commercial lockages with significant recreational lockages (500 or more per year) with no consistent pattern.

6 Commercial Lockages by Appointment only

Limited commercial traffic with no consistent pattern of lockage.

Guidance to district to start the evaluation of possible reduction options:Identify initial candidates and then look at other factors (per the process)

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REDUCTION IN OPERATIONAL SERVICESOUACHITA-BLACK RIVERS NAVIGATION

PROJECT

-Effective July 29, 2012 - 3 shifts to 2 shifts

- Jonesville and Columbia Locks & Dams – 18 hrs. daily-Felsenthal & Thatcher Locks & Dams – 16 hrs. daily

August 1, 2013 - Jonesville and Columbia Locks & Dams – 20 hrs. daily

- Felsenthal & Thatcher Locks & Dams – No Change

- FUTURE – Jonesville and Columbia – Back to 24/7/365

-Felsenthal and Thatcher Lock and Dams – Based on IMTS Criteria After Installation of Remote Control

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OUACHITA-BLACK RIVERS NAVIGATION PROJECT

IMTS IMPACTS(July 29, 2012 – July 29, 2013)

No. of Commercial Lockages

No. of Tows Delayed

Average Delay Time

Total Delay Time

Direct Financial Loss

875 127 1.75 hours 220.8 hours $66,200----------------------------------------------------------------

- Shippers Incurring Delays/Financial Losses - One out of seven tows being delayed/15 percent- Recreational craft lockages down 50-60 percent- No new industries located on Ouachita-Black Rivers 19

RECENT POSITIVE DEVELOPMENTSOUACHITA-BLACK RIVERS

NAVIGATION PROJECT, AR & LA

-Operational Hours Increased at Jonesville/Columbia L&D

-2013 Tonnage Exceeds 1 mil.

-Significant New Fuel Shipment by Genesis Energy/Placid Refining Co.

-TETRA Technologies Growth

-Hydropower Initiative20

TONNAGEOUACHITA-BLACK RIVERS

NAVIGATION PROJECT, AR & LA

YEAR TONNAGE2000 1,476,0002003 2,198,0002006 2,029,0002009 1,283,0002011 942,5472012 955,0002013 1,023,000

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FUEL BARGES UNLOADINGRED RIVER TERMINAL, MONROE DIVISION

GENESIS ENERGY

TETRA TECHNOLOGIES, INC.BARGE SHIPMENTS*

CROSSETT, ARKANSAS

2011 82012 212013 302014 48

*Typically each barge holds 1,400 tons

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HYDROPOWER DEVELOPMENT INITIATIVEOUACHITA/BLACK RIVERS NAVIGATION

PROJECT, AR & LA

COMPANYFREE FLOW POWER

BOSTON, MA

STRUCTURES (L&D’s)

- Jonesville L&D Study in Process - Columbia L&D Permit Applied For - Felsenthal L&D Study in Process - H. K. Thatcher L&D Under Consideration

ORVA Semi-Annual Congressional Visits

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ORVA Meets With Senior USACE Officials 28

ORVA Briefs MRC During High and Low Water Inspections

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ORVA’S 49TH ANNUAL CONVENTIONAugust 26-27, 2014

West Monroe, LA Convention CenterWest Monroe, LA

Photos of West Monroe, LA Convention Center

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ORVA 2014 ANNUAL CONVENTIONAUGUST 26-27, 2014WEST MONROE, LA

PRINCIPAL FEDERAL SPEAKERS

- Senator David Vitter - BG Duke DeLuca, Commander, MVD - Congressman Vance McAllister - COL John Cross, District Engineer

STATE SPEAKERS-State Representative Karen St. Germain, Chairperson, House of

Representatives Transportation Committee-Robert Barham, Director, LA Dept of Wildlife and Fisheries

-Garrett Graves, Office of the Governor, LA Coastal Restoration

-PRIVATE SECTOR SPEAKERS-Dr. Keith Ouchley – LA Nature Conservancy

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CONCLUSIONS: 1.NAVIGATION PROJECT FACES DIFFICULTY2. THINGS ARE IMPROVING3. NEED MVD/MRC SUPPORT - Keep Projects Viable - Obtain Authorization4. ORVA’S POSITION - Fully Funded Navigation Project ($11 Million annually) - Operate Navigation Project 24/7/3655. ORVA will “Stay in Fight”6. Thanks

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