Monthly Archives: July 2020

Implications of Jones Act Changes to the Offshore Energy Industry – JD Supra

Posted: July 5, 2020 at 9:50 am

Vessels are the backbone of any offshore construction project, and the Jones Act, which celebrated its centennial this month, regulates their operations in U.S. waters on the Outer Continental Shelf. Originally promulgated as a transportation statute, the Jones Act has governed vessels engaging in offshore construction for nearly four decades. While offshore oil and gas construction operations have been conducted in compliance with the Jones Act for decades, with the burgeoning offshore wind sector there is renewed interest on how the Jones Act will be applied to such projects. Indeed, planning for Jones Act compliance is a major component of successful wind farm installation operations, as has been the case for years with oil and gas-related work. Interestingly, despite the fact that the Jones Act is now a century old, there have been recent significant regulatory and legal developments in its interpretation.

Specifically, after years of debate within the offshore industry, on December 19, 2019, U.S. Customs and Border Protection (CBP) issued its decision in its Customs Bulletin, Modification and Revocation of Ruling Letters Relating to CBPs Application of the Jones Act to the Transportation of Certain Merchandise and Equipment Between Coastwise Points (the Decision). The Decision became effective on February 17, 2020. Offshore developers, vessel operators, and other stakeholders must now face the question: How does the Decision affect offshore activities?

Further, the Decision currently faces challenges both in Congress and the courts. Some members of Congress who are not pleased with CBPs actions have been focused on legislating in this area and modifying the Jones Act to include restrictions on lifting operations undertaken by installation vessels. This would effectively overrule parts of the Decision. Stakeholders in the offshore wind, ocean renewable energy, and offshore oil and gas sectors should pay attention to these developments as they will intimately impact offshore construction activities.

Background on the CPB Decision

In both 2009 and 2017, CBP published notices to revoke or modify various rulings, which potentially could have overturned decades of precedent with regard to a sweeping range of offshore operations that have never been subject to the Jones Act. To be frank, CBP did not fully understand how the offshore industry operated offshore, and the proposals were potentially overbroad without CBP understanding the economic impacts on the various types of offshore operations these proposals would have adversely affected. As a result of strong industry backlash on both occasions, the proposals were withdrawn for reconsideration. Finally, following the 2017 withdrawal, CBP undertook an intensive exchange of information with all facets of industry to fully understand how industry actually operates offshore and to fine-tune and focus its 2019 proposal on vessel equipment issues and lifting operations, which resulted in a decision that took into account comments and input from all stakeholders.

As far as substance, the Decision eliminates previous erroneous decisions that permitted non-coastwise-qualified vessels to transport items that should have been considered merchandise under the Jones Act. The Decision also clarifies that lifting operations may be conducted by non-Jones Act vessels. Specifically, as discussed in more detail below, the Decision 1)broadens the definition of merchandise to make it clear that non-Jones Act vessels can no longer carry out certain offshore activities that they have performed for years under a misguided and overly broad mission of the vessel theory, and 2) establishes a new interpretation of Lifting Operations to specify the movements that a non-Jones Act vessel can perform when conducting installation or decommissioning operations, which will not be considered transportation within the meaning of the Jones Act.

Should the Decision be overturned either in court or through legislation, it will have a significant impact on the market for offshore construction, whether for renewable energy or fossil fuel production. Currently, there are few or no Jones Act-qualified vessels that can perform the necessary lifting operations needed to undertake the multitude of varying construction projects offshore, depending on the crane capacity and vessel and stability characteristics required for a particular lifting operation.

The Changes in the Decision

Vessel Equipment

For decades, CBP used a Mission of the Vessel concept to justify certain subsea installation, repair, and maintenance work. CBP incorrectly applied this concept to the Jones Act. Notwithstanding that these transportations should have been reserved to the Jones Act fleet, the application of this concept allowed foreign-flag vessels to undertake transportation of certain items. The Decision specifically revoked the application of Mission of the Vessel and established a new definition of vessel equipment. Under this interpretation, the Decision narrowed the scope of vessel equipment to include only items that are necessary and appropriate for the navigation, operation, or maintenance of a vessel and for the comfort and safety of the persons on board.

CBP stressed that if an item is necessary and appropriate for the operation or maintenance of a vessel, it is considered vessel equipment. Items considered necessary and appropriate for the operation of the vessel are those items that are integral to the function of the vessel and are carried by the vessel. CBP also emphasized that the fact that an item is returned to and departs with the vessel after an operation is completed and is not left behind on the seabed is a factor that weighs in favor of an item being classified as vessel equipment, but it is not the sole determinative factor. In addition, CBP determined that other historically used rationale using the terms foreseeability, incidental to an activity, de minimis, or unforeseen, can no longer be relied on to support an interpretation of vessel equipment.

Lifting Operations

While non-Jones Act vessels have been used for decades to perform lifting operations that were never considered subject to the Jones Act, in a series of three rulings that were issued in 2012 and 2013, CBP ruled that movement of a vessel, even a short distance, while a topside is suspended from its crane and off its central axis in order to avoid hitting the offshore facility before unlading the topside, is a violation of the Jones Act because this movement of the vessel is interpreted by CBP as providing part of the transportation of the topside between a point in the U.S. and the offshore facility. This created great confusion and consternation in the industry by virtually making any lifting operation potentially a violation of the Jones Act.

As a result of its discussions with industry on this point, CBP made it a priority to clarify in its Decision that lifting operations are distinct from transportation within the meaning of the Jones Act. Accordingly, offshore lifting operations now include the lifting by cranes, winches, or lifting beams, or other similar activities or operations, from the time that the lifting activity begins when unlading from a vessel or removing offshore facilities or subsea infrastructure until the time that the lifting activities can be safely terminated in relation to the unlading, installation, or removal of offshore facilities or subsea infrastructure. CBP explained that offshore lifting operations are distinct from transportation in that any lateral movement of the vessel or the item in the vicinity of the structure or facility where the item is being positioned or removed is merely subordinate to and a direct consequence of the lifting operations. CBP reasoned that this interpretation was necessitated by safety and practical concerns, including the physical demands of the lifting operations, the mitigation of risk to human life and health, and the avoidance of damage to the marine environment. Importantly, CBP confirmed this interpretation applies to all offshore lifting operations and is not limited to heavy lifts.

Pipelaying, Drilling-Related Operations, and Offshore Wind Energy Facilities

CBP specifically confirmed in its Decision that CBPs existing rulings on pipelaying and cable laying remain valid and are unaffected by its Decision. In addition, while not providing a similar statement with regard to drilling, it noted that drilling ruling letters previously identified for revocation pertaining to cement, chemicals, and other consumable materials remain in force.

Several comments sought clarification regarding the impact of the Decision on the development of offshore wind energy facilities. CBP responded that any future interpretations by CBP on the application of the Jones Act to wind energy facilities or other activities will be in response to ruling requests based on specific transactions. Accordingly, it remains prudent to assume for the most part that the Jones Act applies to wind projects similar to the manner it applies to oil and gas projects until CBP issues rulings in the future.

Ongoing Attempts to Overturn the Decision

Congressional Legislation

Meanwhile, as of the time of the writing of this article, Installation Vessel legislation is pending in Congress in the form of an amendment to the Jones Act that would create a waiver procedure for certain lifting operations that could statutorily overturn the Decision with regard to lifting operations as discussed above. The House of Representatives provision is contained in the House-passed version of the Coast Guard Authorization Act of 2019. The Senate version of this bill is silent on this point. Negotiations are ongoing.

One issue that Congress is considering in its decision is the fact that there are press releases concerning the potential building of Jones Act-compliant installation vessels to service the domestic offshore wind market. Some stakeholders assert that the plans to build this vessel demonstrates the need for further protections for the domestic industry. However, other stakeholders see these plans as demonstrating that the Jones Act as written continues to provide the necessary support to incentivize the domestic industry to thrive without the need for Congress to intervene with a waiver regime.

Court Case

At the time of the original notice and revocation in 2017, the Offshore Marine Service Association (OMSA) along with the Shipbuilders Council of America (Shipbuilders) filed suit against CBP. Count One of the three counts included in theOMSA-Shipbuilders original complaint challenged the 25 vessel equipment rulings that were the subject of CBPs 2017 proposal to revoke.

When CBP issued the Decision, CBP filed a motion to the court asking the court to find that first count 1) was made moot by the CBP Decision and that the court should throw out the other two counts based on previous submittals.The case has largely been on hold while CBP considered the Decision issued by CBP.

The day after the Decision became effective, OMSA-Shipbuilders filed an administrative appeal with CBP challenging the Decision as unlawful. CBP denied the appeal on April 16, 2020. On April 30, the plaintiffs filed for Leave to Amend its Complaint. CBP, along with the American Petroleum Institute (API), who intervened in the lawsuit, have filed an opposition.

The sum of the opposition is that a significant amount of time has passed and leave should not be granted to amend the complaint. CBP/API note that there is an unexplained two-year delay in the litigation, which should be fatal to OMSA-Shipbuilders motion, and assert that the delay in a ruling on the CBP/API May 2018 motion for judgment on the pleadings has negatively affected their operations.CBP/API note that denying OMSA-Shipbuilders motion would not prejudice them, as they could reassert their claims in a new complaint.

It is unclear when or how the court will rule on these motions, but they raise continued questions regarding the ability of CBP to interpret the Jones Act. From a practical standpoint, stakeholders in offshore energy construction should monitor this litigation as it could have an impact on future operations.

Conclusions

Businesses involved in offshore renewable or oil and gas offshore energy production should continue to monitor these changes in the interpretation of the Jones Act. Due to the Decision, non-Jones Act vessels must now comply with a narrower definition of what constitutes vessel equipment not subject to the Jones Act. On the other hand, non-Jones Act vessels may conduct lifting operations in accordance with the Decisions new interpretation without fear of enforcement action because such operations are not transportation subject to the Jones Act. However, industry must closely watch what action Congress ultimately takes on the installation vessel provision passed by the House to determine if the Decisions interpretation of lifting operations will be changed. Similarly, the ongoing litigation against CBP could change the landscape for Jones Act compliance in the offshore energy production space.

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Offshore Patrol Vessels Market Growth By Manufacturers, Type And Application, Forecast To 2026 – 3rd Watch News

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New Jersey, United States,- Market Research Intellect sheds light on the market scope, potential, and performance perspective of the Global Offshore Patrol Vessels Market by carrying out an extensive market analysis. Pivotal market aspects like market trends, the shift in customer preferences, fluctuating consumption, cost volatility, the product range available in the market, growth rate, drivers and constraints, financial standing, and challenges existing in the market are comprehensively evaluated to deduce their impact on the growth of the market in the coming years. The report also gives an industry-wide competitive analysis, highlighting the different market segments, individual market share of leading players, and the contemporary market scenario and the most vital elements to study while assessing the global Offshore Patrol Vessels market.

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COVID-19 Impact on Global Offshore Inflatable Boats, Market Insights and Forecast to 2026 Bulletin Line – Bulletin Line

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In this report, the COVID-19 Impact on Global Offshore Inflatable Boats market is valued at USD XX million in 2019 and is expected to reach USD XX million by the end of 2026, growing at a CAGR of XX% between 2019 and 2026. COVID-19 Impact on Global Offshore Inflatable Boats market has been broken down by major regions, with complete market estimates on the basis of products/applications on a regional basis.

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Naumatec

Humber Ribs

Ice Marine

Qingdao Lian Ya Boat Co

Sacs

Salthouse Boatbuilders

UFO

ASIS BOATS

Narwhal

Skipper

Offshore Inflatable Boats Breakdown Data by Type

Roll-up inflatables

Rigid-hull inflatable boats (RIBs)

Offshore Inflatable Boats Breakdown Data by Application

Rescue

Fishing

Amusement

Racing

Others

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Offshore AUV Market Growth By Manufacturers, Type And Application, Forecast To 2026 – 3rd Watch News

Posted: at 9:49 am

New Jersey, United States,- Market Research Intellect sheds light on the market scope, potential, and performance perspective of the Global Offshore AUV Market by carrying out an extensive market analysis. Pivotal market aspects like market trends, the shift in customer preferences, fluctuating consumption, cost volatility, the product range available in the market, growth rate, drivers and constraints, financial standing, and challenges existing in the market are comprehensively evaluated to deduce their impact on the growth of the market in the coming years. The report also gives an industry-wide competitive analysis, highlighting the different market segments, individual market share of leading players, and the contemporary market scenario and the most vital elements to study while assessing the global Offshore AUV market.

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Leading Offshore AUV manufacturers/companies operating at both regional and global levels:

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Sales Forecast:

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Market Research Intellect provides syndicated and customized research reports to clients from various industries and organizations with the aim of delivering functional expertise. We provide reports for all industries including Energy, Technology, Manufacturing and Construction, Chemicals and Materials, Food and Beverage, and more. These reports deliver an in-depth study of the market with industry analysis, the market value for regions and countries, and trends that are pertinent to the industry.

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Offshore Supply Vessel (OSV) Market Growth By Manufacturers, Type And Application, Forecast To 2026 – 3rd Watch News

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New Jersey, United States,- Market Research Intellect sheds light on the market scope, potential, and performance perspective of the Global Offshore Supply Vessel (OSV) Market by carrying out an extensive market analysis. Pivotal market aspects like market trends, the shift in customer preferences, fluctuating consumption, cost volatility, the product range available in the market, growth rate, drivers and constraints, financial standing, and challenges existing in the market are comprehensively evaluated to deduce their impact on the growth of the market in the coming years. The report also gives an industry-wide competitive analysis, highlighting the different market segments, individual market share of leading players, and the contemporary market scenario and the most vital elements to study while assessing the global Offshore Supply Vessel (OSV) market.

The research study includes the latest updates about the COVID-19 impact on the Offshore Supply Vessel (OSV) sector. The outbreak has broadly influenced the global economic landscape. The report contains a complete breakdown of the current situation in the ever-evolving business sector and estimates the aftereffects of the outbreak on the overall economy.

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Sales Forecast:

The report contains historical revenue and volume that backing information about the market capacity, and it helps to evaluate conjecture numbers for key areas in the Offshore Supply Vessel (OSV) market. Additionally, it includes a share of each segment of the Offshore Supply Vessel (OSV) market, giving methodical information about types and applications of the market.

Reasons for Buying Offshore Supply Vessel (OSV) Market Report

This report gives a forward-looking prospect of various factors driving or restraining market growth.

It renders an in-depth analysis for changing competitive dynamics.

It presents a detailed analysis of changing competition dynamics and puts you ahead of competitors.

It gives a six-year forecast evaluated on the basis of how the market is predicted to grow.

It assists in making informed business decisions by performing a pin-point analysis of market segments and by having complete insights of the Offshore Supply Vessel (OSV) market.

This report helps the readers understand key product segments and their future.

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In the end, the Offshore Supply Vessel (OSV) market is analyzed for revenue, sales, price, and gross margin. These points are examined for companies, types, applications, and regions.

To summarize, the global Offshore Supply Vessel (OSV) market report studies the contemporary market to forecast the growth prospects, challenges, opportunities, risks, threats, and the trends observed in the market that can either propel or curtail the growth rate of the industry. The market factors impacting the global sector also include provincial trade policies, international trade disputes, entry barriers, and other regulatory restrictions.

About Us:

Market Research Intellect provides syndicated and customized research reports to clients from various industries and organizations with the aim of delivering functional expertise. We provide reports for all industries including Energy, Technology, Manufacturing and Construction, Chemicals and Materials, Food and Beverage, and more. These reports deliver an in-depth study of the market with industry analysis, the market value for regions and countries, and trends that are pertinent to the industry.

Contact Us:

Mr. Steven Fernandes

Market Research Intellect

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Danes expedite Hessel investigations – 4C Offshore

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Energinethas received orders to initiate preliminary investigations for the Hesseloffshore wind farm and the establishment of a grid connection point onland.

From 22 June 2020 itwas decided that in addition to the two energy islands in the North Seaand at Bornholm, an independent offshore wind farm should also be established.Thisis the so-called "park 2" from the energy agreement 2018. Park2 will be placed at Hesseland the park must be advanced so that it is completed one year ahead oftime, from 2028 to 2027. The Danish government requires that that Hesselis completed at the same time as Thoroffshore wind farm.The schedule for the Hesseloffshore wind farm has been advanced, which means that the feasibilitystudies in particular must be completed in a shorter time.This ispossible because the park is located in Kattegat, which is less exposedto harsh winter weather than the North Sea.This means the feasibilitystudy vessels can sail during the winter season.As early as August, the Danish Energy Agency will submit a draft explorationpermit to Energinet in consultation with the relevant authorities.Thefeasibility study permit will give Energinet the right to start collectingrelevant information on the feasibility study area at sea, including cablecorridors to land, and in particular environmental information.

Transplantation meansthat concession winners are allowed to set up more capacity than the 1,000MW that can be delivered to the electricity grid at the grid connectionpoint.The transplant is expected to help optimise the use of thecables inland, and concession winners can use the extra capacity to ensurea more continuous flow of power to the grid.It is up to the biddersto assess whether this will be financially attractive.Concession winners will also be able to supply the power, including fromthe additional wind turbines, into a Power-to-X system or to a batteryinstead of directly to the grid.

For more information on offshore windfarms worldwide,clickhere.

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Danes expedite Hessel investigations - 4C Offshore

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Boca Chica State Park (Brownsville) – 2020 All You Need to …

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Would you send a friend who is visiting for the first time to this place or activity?Yes No Unsure

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Does this place or activity allow pets?Yes No Unsure

Is this one of the best places or activities to watch the sunset?Yes No Unsure

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Is this place or activity good for small groups (less than four)?Yes No Unsure

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Boca Chica State Park (Brownsville) - 2020 All You Need to ...

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Visit Boca Chica Beach in Texas – TripSavvy

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Due to its southernlocation in the United States that border the Gulf of Mexico, Texas is home to a number of great beaches, but many people forget about one beach on the southernmost point of the state, Boca Chica Beach.

While residents and visitors alike usually know about the desolate stretches of beach along the Padre Island National Seashore near Corpus Christiandthousands visitthe resort shores of South Padre Island each year, Boca Chica receives surprisingly few visitors each year.

Boca Chica Beach is about 23 miles east of Brownsville on Highway 4, which dead-ends at the Gulf of Mexico. Street-licensed vehicles can travel on the sand, but the refuge rules strictly forbid off-roading otherwise. The beach is openfrom sunrise to sunset and entrance is free, however, you cannot camp or otherwise stay overnight in the refuge.

Boca Chica Beach sits on asandy peninsula separated from Mexico by the Rio Grande River and detached from South Padre Island by the Brazos Santiago Pass. Technically part of the Lower Rio Grande Valley National Wildlife Refuge,which is managed by the U.S. Fish & Wildlife Service, the eight-mile beach at Boca Chica fronts tidal salt flats, mangrove marshes, and clay dunes calledlomas.

Aside from a few homes on stilts near the pass, which you can see from South Padre Island, and a jetty protruding into the Gulf of Mexico, you won't find any development at Boca Chica Beach. However, since it is the southernmostbeach in Texas, you will usually find clean, clear green water lapping against the sand.

The Kemp's ridley sea turtle, the most critically endangered sea turtle in the world, comes ashore to nest in spring and summer. Aplomado and peregrine falcons migrate through the area, and hawks, osprey, and other birds of prey frequent the shoreline. You should also keep an eye out for the Portuguese man o' war, a floating jellyfish-like creature that inflicts a painful sting and becomes particularly plentiful following storms.

What Boca Chica lacks in modern amenities, it makes up for with a wide variety of outdoor recreational activities, including surf fishing, swimming, surfing, snorkeling, kiteboarding, and birdwatching. However,the lack of facilities means you must bring all of your own gear for whichever activity you want to pursue, in addition to plenty of drinking water, food, sunscreen, insect repellent, a first-aid kit, and any other essentials for your own safety and comfort.

Most often, you'll only meet local residents atthis remote destination, butit can get more crowded than you might expect, particularly on weekends. Bring a sack to carry out your own garbage and any you find left behind by less conscientious visitors. Refuge rules prohibit alcoholic beverages and unleashed pets; in addition, visitors should refrain from feeding wildlife and collecting or otherwise disturbing thebeach.

Another interesting thing to do is travel down to the mouth of the Rio Grande, where you can see the border wall between the United States and Mexico, which continues out to see about 30 feet into the ocean. This is the southernmost point in Texas, which is almost as far south as the Florida Keys, the southernmost point on the continental U.S.

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Boca Chica Texas Monthly

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Lower Rio Grande Valley National Wildlife Refuge

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Jump to15 Best Spots on the CoastBoca ChicaRedhead RidgeKenedy Ranch ShorelineEnd of Kleberg County Road 1120South BeachFish PassDagger PointThe Big TreeLa Salle LoopPrairie TrailMatagorda Island LighthouseNorth JettyGambusia Nature TrailTexas Highway 87Frozen Point

A sandy eight-mile beachon a narrow spit of arid land between the Rio Grande delta and the salt flats of the lower Laguna Madre, Boca Chica is the alpha and omega of Texasthe place where a once mighty river spills into the mightier Gulf, where the U.S. ends and Mexico begins, and where the high-rises of South Padre Island give way to an untamed, undeveloped coast. Protected by both state and federal authorities as part of the Lower Rio Grande Valley National Wildlife Refuge, this gloriously empty stretch of shore calls to anyone wanting to give civilization the slip.

Thats exactly what drew me as far east as I could go on Texas Highway 4. Just past the U.S. Border Patrol checkpoint, I was greeted by an old fuel tank with a spray-painted scrawl: Boca Chica Village Welcomes You. The depopulated village was as ghostly as the Civil War markers Id seen along the road, and I continued driving past the windswept grasslands and tidal inlets until the pavement ended at a break in the dunes. Except for the brown pelicans skimming the breakers and the red knots hunting the tide line for a meal, the beach was desolate. I turned south onto the sand, following a multitude of tire tracks about three miles to the small mouth of the Rio Grande.

When I visited Boca Chica back in 2001, the river was a mere trickle. A few months later, it halted at a sandbar that had formed at its mouth and made national headlines. But lately things have improved. In 2010 Falcon Dam was at capacity, and Mexico had major tropical storms, said Bryan Winton, the manager at the Rio Grande Valley refuge. With that dam release, we saw significant flooding. We have had no sizable rainfall since then, but we have farmers that need freshwater, so the river is still flowing.

The mouth of the river makes a fine place for a short hike. I got out of my car and explored the shell-specked sand, relieved to see a thirty-foot-wide inlet, its dark green water flashing occasional whitecaps, that offered a glimpse upstream. Patches of prickly pear and yucca hunched behind the dunes, and across the way, a lighthouse stood sentinel over the sands of Matamoros. I caught sight of a juvenile green turtle lying dead in a mat of sargassum weed and was filled with dismay, but I reminded myself that the five species of sea turtle known to breed in Texas would soon begin nesting nearby. Another end, another beginning.

To get there:Boca Chica is always open. Drive 23 miles east on Texas Highway 4 from Brownsville; the road dead-ends at the beach. There are no services, so youll need to bring your own food, water, and surfboard. Camping is not allowed.

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Jump to15 Best Spots on the CoastBoca ChicaRedhead RidgeKenedy Ranch ShorelineEnd of Kleberg County Road 1120South BeachFish PassDagger PointThe Big TreeLa Salle LoopPrairie TrailMatagorda Island LighthouseNorth JettyGambusia Nature TrailTexas Highway 87Frozen Point

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Boca Chica Texas Monthly

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at Boca Chica

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Carancahua Bay is teaming over with redfish, flounder, black drum, trout, crab, shrimp and so much more! Call 361-484-0373

Enjoy great saltwater fishing, boating, hunting, birdwatching and southern outdoor living on the Texas coast

Bring your RV for the weekend or a lifetime. Either way, you can set it up on your own lot so it's ready whenever you are. All Fisherman's Village lots have both water and sewer utilities that are ready to tap. You can buy a lot for less than it would cost to put a septic tank anywhere else. Fisherman's Village is a terrific value! Call 361-484-0373

All lots are just minutes from that bay. As a Fisherman's Village property owner, you have access rights to the property owner's pier, boat ramp, and pool. These are not public facilities, theyare for the property owner's and their guests, only! CALL STANLEY KAZWELL@ 361-484-0373

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Fisherman's Village,TX has great saltwater fishing on Carancahua Bay. It's only a few minutes to Matagorda Bay with the Gulf of Mexico just beyond. Call Stan today! 361-484-0373

Call me, Stanley Kazwell,

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Another new cabin moving into Fisherman's Village!

Fisherman's Village is a great place to spend your holidays, summers, winters, or a lifetime! There is always something going on at Fisherman's Village at Boca Chica.

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READY FOR SOMETHING DIFFERANT?Fisherman's Village is building a unique & charming community that encourages rising property values. It a fun place to relax and a great investment! Make an appointment today. Call 361-484-0373

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This laidback fishing village is friendly and peaceful. We have many great community gatherings and events that nclude:

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