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Application for Texas Deepwater Port

Maritime Activity Reports, Inc.

December 16, 2008

The Texas Offshore Port System project has filed an application with the Maritime Administration seeking approval to build, own and operate a crude oil deepwater-port facility 30 miles off the coast of Texas in the Gulf of Mexico.

In accordance with the Deepwater Port Act, the project must also seek approval from the U.S. Coast Guard to build such a facility. If approved and constructed as planned, the deepwater port should be capable of importing 1.7 million barrels of oil per day into the United States, and should also facilitate delivery of the waterborne crude to refining centers along Texas' Gulf Coast.

Project plans call for the proposed deepwater port facility to be located in the Gulf, approximately 30 miles southeast of Freeport, Texas.

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