The operating unit now stores and distributes about 2.2 million barrels of petroleum on a portion of the property adjacent to the deepwater port. The operating unit was known as Coastal Fuels Marketing Inc. prior to the recent merger between its parent, Coastal Corp., into El Paso Energy Corp., a subsidiary of El Paso Energy Partners.

Last week, the local operating unit of El Paso CGP Co., an El Paso Energy subsidiary, earned tentative final approval from the Fort Lauderdale city commission following the first reading of a project development order. Approval on second reading at the Apr. 17 commission meeting would authorize the storage and distribution operation to apply for building permits.

Although company officials would not comment on the plan, city records show the storage and distribution operation plans to develop the property over two, five-year phases with a build-out date scheduled for 2010.

Prior to the city commission action, the company's application for a development of regional impact required reviews by the South Florida Regional Planning Council and the Fort Lauderdale Planning & Zoning Board.

While no one spoke against the project during the P&Z review, members of the local review board expressed concern about the addition of new storage tanks at the site within an estimated 55 feet of a 240-unit multifamily apartment complex.

Originally opposed to construction of those apartments, El Paso Energy ultimately worked out an agreement with the residential-project developer to remedy any potential safety hazards, including the construction of a 16- to 20-foot concrete barrier.

It is uncertain exactly what economic factors motivated company officials now to propose the expansion, since the company has owned the undeveloped portion of the property for many years.

It is possible the company expects to take advantage of the site's recent designation as a subzone to the Broward County Foreign-Trade Zone. By awarding such a designation last December, the federal Foreign-Trade Zones Board authorized the storage and distribution operation to apply for duty and tax-free treatment on certain products refined at the facility.

Federal records show the subzone plans to receive, store, blend and distribute jet fuel, gasoline, crude oil, asphalt, distillates, residual fuels and motor fuel-blending stock for sale to domestic and overseas markets. As a subzone, for instance, the company would be exempt from duties and excise taxes on petroleum refined as jet fuel and then sold to air carriers for international flights.

"On domestic sales, the company would be able to defer customs' duty payments until the products leave the facility," according to records.

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