MEMORANDUM LTO: FROM: WPC Mit Spe 114&c44r7 Doug Brown DATE: August 9, 1979 RE: Texas Deepwater Port Authority - License Facts: The Texas Deepwater Port Authority is in the process of receiving its final operational license from the U. S. Department of Transportation for construction and operation of its facility in the Gulf. According to2..flisi&s of the Authority, the license is accep_t2ble and contains none of the onerous restrictions which were propo-s-FdThy other federal agencies. There is, however, a provision in the license which will impinge upon the Governor's discretion in selecting members to the Board of Commissioners of the Texas Deepwater Port Authority. The language of the provision is as follows: of - "The Board of Commissioners of the Licensee shall not at any time contain more than three (3) members who are directors, officers, management officials or significant shareholders of either any shipper using the port or any significant seller of crude oil or petroleum products in the area served by the port." It should be noted that the enabling legislation at the state level contains no such restriction. According to Hobbyall, this provision is non-negotiable from D.O.T.'s stand- point and that it must be contained in the final license. It is imperative that the Authority receive its license as soon as possible, in that the White House's recent cabinet shake-up may result in new personnel in the Department of Transpor- tation's hierarchy, and thus move the license back to "square one". Question: Mr. McCall has asked me to inform you of this provision and has asked whether it would be an acceptable restriction upon your power to appoint the Board. \-Wok.41 k \Nt. '%•0 L. vJ v\CAL-- k) Li