HomeMy WebLinkAboutBeach Communities and Oil Spills: Environmental and Economic Consequences Summary Report-1982Beach Communities and Oil Spills:
Environmental and Economic
Consequences for
Brunswick County, North Carolina
Summary Report
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Division of Coastal Management Copy
SEPTEMBER 1982
North Carolina
Coastal Energy Impact Program
Office of Coastal Management
North Carolina Department of Natural Resources
and Community Development
CEIP REPORT NO.13
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Series Edited by James F. Smith
Cover Design by Jill Miller
BEACH COMMUNITIES AND OIL SPILLS:
ENVIRONMENTAL AND ECONOMIC CONSEQUENCES FOR
BRUNSWICK COUNTY, NORTH CAROLINA
SUMMARY REPORT
Kenneth Creveling Associates
McLean, Virginia
Prepared for the
Board of County Commissioners
Brunswick County, North Carolina
The preparation of this report was financed through a Coastal Energy Impact
Program grant provided by the North Carolina Coastal Management Program,
through funds provided by the Coastal Zone Management Act of 1972, as amend-
ed, which is administered by the Office of Coastal Zone Management, National
Oceanic and Atmospheric Administration. This CEIP grant was part of NOAA
grant NA-79-AA-D-CZ097.
September 1982
CEIP Report No. 13
ACKNOWLEGMENTS
The author wishes to acknowledge with thanks the following individuals and
organizations.....
..... for their general guidance and support:
James F. Smith
CEIP Coordinator
North Carolina Office of Coastal Management
John B. Harvey
Planning Director
Brunswick County
.....for their assistance in the Conduct of local business surveys:
Southport -Oak Island Chamber of Commerce
South Brunswick Islands Chamber of Commerce
Our sincere thanks, too, to the coastal businesses which provided data and
information through surveys and interviews.
ii
ABSTRACT
Coastal areas are vulnerable to environmental damage and economic loss from
oil spills. This report describes the recreational resources and economic
activities in the coastal area of Brunswick County, North Carolina, and
discusses their vulnerabilities to oil spills. Detailed economic analyses
are made of the commercial fishing industry, recreational fishing and boat-
ing, the vacation and retirement housing industry, and seasonal visitation.
Surveys of coastal businesses provided much of the data and information
contained in these analyses. Potential sources, risks, and types of eco-
nomic impact of oil spills are identified and reviewed. Additional data and
research needed are recommended and guidelines for local planning for oil
spill contingencies are outlined.
Technical appendices include reviews of.impacts of major oil spills in other
coastal locations and descriptions of relevant techniques and procedures
for oil spill containment and cleanup.. Major benefits of this study are the
provision of detailed information to facilitate assessments of economic im-
pacts of future oil spills affecting the County and to aid state and local
governments in making decisions relative to coastal development and energy
facility siting. While this study focuses on Brunswick County,.many method-
ologies, findings, and recommendations are applicable to other coastal
counties and communities.
iii
TABLE OF CONTENTS
Section and Title
Acknowledgments
Abstract
Table of Contents
List of Figures
List of Tables
BACKGROUND
Issues and Objectives
Study Area
THE COASTAL ECONOMY
Commercial Fishing Industry
Recreational Fishing and Boating
Vacation and Retirement Housing Industry
Other Visitor Facilities
Seasonal Visitation and Its Impacts
OIL SPILL SOURCES, RISKS, AND IMPACTS
Sources of Potential Spills
Spill Probabilities and Risks
Impacts of Potential Spills
RECOMMENDATIONS
Data and Research Needs
Contingency Planning
iv
Page
ii
iv
v
vi
1
1
2
7
7
11
17
24
28
33
33
35
37
41
41
45 .
LIST OF FIGURES
Number and Title
Page
1 Natural and Recreational Resources 3
2 Seafood Industry Establishments 9
3 Recreational Boating and Sport Fishing Facilities 14
4 Residential Development Projects 18
5 Transient Lodgings 25
6 Prevailing Wind and Ocean Currents 39
LIST OF TABLES.
Number and Title
Page
1 Summary of Population and Housing Characteristics
in the Beach Communities 5
2 Characteristics of Seasonal Units Rented Through
Local Realty Firms, 1980 20
3 Summary of Key Economic Impacts of the Vacation and
Retirement Housing Industry in the Beach Communities, 1980 23
4 Summary of Estimated Visitor Days Spent in the
Brunswick County Coastal Area, 1980 29
u
BACKGROUND
ISSUES AND OBJECTIVES
Need for Study
Concerns about oil spills and their impacts on coastal resources and economic
activities in Brunswick County came to the surface shortly after plans were
announced early in 1979 by the Brunswick Energy Company (BECO) to construct
a major oil refinery on the Brunswick County side of the Cape Fear River
near Wilmington. Operation of the refinery would have added greatly to the
quantity of oil and refined products moving to and from the Cape Fear River,
thereby increasing the risks of groundings, collisions, and other causes of
oil spills.
In May, 1981,.BECO withdrew its plans, citing financial reasons and a de-
creasing demand for petroleum products, but impact issues raised by the
refinery proposal also surround other oil production and transportation
activities. These include the outer continental shelf (OCS) oil and gas
exploration and development program, coastal shipping lane traffic, and
other ship and barge traffic using local waterways. While risks of acute
oil spills from various potential sources are small, impacts can be severe
when they occur. Moreover, the aggregate impacts of more common spills
from ballast tank flushing and other sources are becoming chronic problems
in many coastal areas.
The barrier islands and coastal waters of Brunswick County play important
roles in the local economy. The area has historical ties to the commercial
fishing industry, but recent economic growth along the coast has been based
on a developing recreation and vacation/retirement home industry. These
industries and the natural resources on which they depend are exposed and
vulnerable to aesthetic and environmental damages and economic loss from
oil spills.
Objectives and Scope
Recognizing its susceptibility to future oil spills, Brunswick County
applied for a Federal Coastal Energy Impact Program (CEIP) grant to finance
a study of the matter. In 1980, the grant award was made through the North
Carolina Department of Natural Resources and Community Development (DNRCD),
and a consulting firm, Kenneth Creveling Associates, was retained by the
County to conduct a study with three basic objectives in mind:
1). To identify and document those significant resources and economic
activities vulnerable to future oil spills.
2). To assess potential impacts of oil spills on these resources and
economic activities.
-1-
3). To provide guidance to local officials and residents in dealing
with future oil spill situations.
The primary thrust of this study
economic activities in Brunswick
to oil spills. These include th
fishing and boating, the vacatio
activities which support coastal
STUDY AREA
e
n
was to document and examine in detail key
County's coastal area which are vulnerable
commercial fishing industry, recreational
and retirement home industry, and other
travel and recreation.
Brunswick County is located in southeastern North Carolina between the port
City of Wilmington on the Cape Fear River and South Carolina's "Grand Strand"
vacation area, centering around popular Myrtle Beach. The County has a 43-
mile coastline extending from Cape Fear, on the east, to the South Carolina
state boundary, on the west. Several barrier islands separated by river
estuaries and tidal inlets characterize this coastline. All but six miles
of the coastline face south.
The study concerns that portion of the County generally within a.few miles
of its coastline. Included within this coastal area are eight small in-
corporated municipalities --six barrier island communities and two others
on the mainland. These municipalities are:
Oak Island South Brunswick Islands Mainland
Caswell Beach Holden Beach Southport
Yaupon Beach Ocean Isle Beach Calabash
Long Beach Sunset Beach
Natural Resources
Growth in the Brunswick County coastal region and its attractiveness to
residents and visitors are related directly to its natural resources --
specifically, its beaches, waterways, salt marshes, finfish and shellfish.
These resources and an almost semi -tropical climate continue to be great
lures to retirees, vacationers, and fishermen.
The marshes and inside waters of Brunswick County are highly productive
resources which most finfish and shellfish species found in the region
inhabit for part of their life cycles. The sandy barrier islands, inlets,
estuaries, salt marshes, and offshore waters of Brunswick County are havens
for a great variety and abundance of fish and wildlife. The waters are
popular locations for fishing from surf, boats, and piers. Beaches and
marshes serve as habitat and migratory areas for a wide range of birds,
mammals, and other wildlife, including a few rare and endangered species.
-2-
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Figure 1
NATURAL AND RECREATIONAL RESOURCES
COASTAL ENERGY IMPACT STUDY
BRUNSWICK COUNTY,NORTH CAROLINA
KENNETH CREVELING ASSOCIATES
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Many species of finfish are found in inside and offshore waters. Leading
commercial species include menhaden, grouper, snapper, mullet, sea bass,
and spot. Recreational fisheries in the area include bluefish, croaker,
drum, flounder, jack, king mackerel, sea bass, sea trout, spanish mackerel,
spot and whiting. Principal types of shellfish found locally include oyster,
hard clam, blue crab, and shrimp.
Development Patterns
The permanent population of the six beach communities more than doubled
between 1970 and 1980, increasing to over 3,000 residents. Only nine per-
cent of the County's population resides in the beach communities, but these
six towns contributed 16 percent of the County's overall growth during the
1970s. Beach communities, are populated by older, more affluent residents,
most of whom are retirees.
Over recent years, two-thirds of new housing construction in the County
has taken place in the six beach communities, averaging more than 300 new
units annually. Sixty percent of building permits for new housing units
have been issued in the South Brunswick Islands. Multi -unit condominiums
represent an increasing share of new housing starts in the beach communi-
ties. This type of housing is restricted in some towns but is prevalent
in Ocean Isle Beach. In unincorporated mainland areas near the beach
communities, development is characterized largely by mobile and modular
homes.
In 1980, 77 percent of all 5,550 housing units in the six beach communities
were seasonal cottages and apartments. In the South Brunswick Islands,
these seasonal units were 89 percent of all units, versus only 69 percent
in Oak Island. In addition to the 4,275 seasonal units in the six beach
communities in 1980, there were another 3,690 in other sections of the
coast. Between 1975 and 1980, seasonal housing in the coastal area increased
by an estimated 2,750 units, averaging 550 per year. Seasonal housing in the
beach communities increased by some 1,275 units during the same period,
averaging over 250 units annually.
Businesses dependent on beach, water, and fishery resources in the County
generally are small and pay relatively low wages. Most establishments and
firms are family operations with few paid employees other than family members.
Field survey in early 1981 revealed more than 400 establishments in the coast-
al area which are sensitive to non-resident activity and spending. Total
numbers of businesses are somewhat equally divided between the Southport -Oak
Island and South Brunswick Islands -Calabash areas. The business mix, however,
differs by area.
Restaurants and specialty shops are found in greater abundance in the South
Brunswick Islands area. This is largely because of concentrations of both
in Calabash, the principal tourist center in the coastal area. Greater num-
-4-
Table 1
SUMMARY OF POPULATION AND HOUSING CHARACTERICTICS
IN THE BEACH COMMUNITIES
Average Annual
Year Round
Permits for
Total
Seasonal or
Population,
Housing Units,
Housing Units,
Vacant Units,
Percent
Beach Community
1980
Past Few Years
1980
1980
Seasonal
Oak Island
Caswell Beach
90
5
100
65
65.0
74.2
Long Beach
1,835(1)
110(2)
2,850
2,115
135
34.6
Yaupon Beach
570(l)
12
390
2,495
127
3,340
2,315
69.3
South Brunswick Islands
Holden Beach
240
46
910
815
89.6
Ocean Isle Beach
200
91
885
805
91.0
Sunset Beach
190
36
415
340
81.9
630
173
2,210
1,960
88.7
All Communities
3,125
310(3)
5,550
4,275
77.0
1 U.S. Census counts; others are estimates from other sources.
(2) New construction only; mobile home permits not included.
(3) Column does not add to total, as total is average of annual averages from 1976 through 1980;
records for individual towns vary.
Source: Kenneth Creveling Associates
bers of recreation and marine service establishments are also found in the
South Brunswick Islands area. The Southport -Oak Island area has the edge
in service stations, personal and business service establishments (includ-
ing banks), and building supply and general merchandise stores. The com-
paratively large permanent populations of Southport -and Long Beach provide
support for these types of business.
Many of the establishments identified during the field survey and others
were surveyed by mail questionnaire in early 1981 to determine character-
istics of coastal businesses. A few general characteristics are as follows:
9 71 percent attributed more than half of their business sales or
receipts to seasonal vi tis ation.
• 57 percent had fewer than five employees during their peak business
season.
9 38 percent indicated gross sales or receipts of under $50,000,
while 36 percent exceeded $200,000.
• 55 percent derived at least half of their annual business volume
during the summer season (June -August).
Dependency on seasonal visitation varies by location and type of business.
Those in the beach communities and Calabash are substantially more oriented
to"Visitors than those in Shallotte and Southport. Only four of ten busi-
nesses in these two centers responded that more than half of their business
volume was associated with non-residents, versus nine of ten establishments
in the beach communities and 100 percent of those in Calabash.
All beach communities have public water supplies, but none have public
sewer systems, which limits growth potentials. Lots as small as 5,000
square feet are typical of beach community development, and all are served
by on -site waste disposal methods. Only the City of Southport has a public
sewerage system, although a few major developments also have common systems.
Plans have been drawn to include all beach communities in future regional
waste treatment systems. Implementation appears to be a long way off, in
view of diminishing Federal funds for sewer construction and waste treatment.
Continued development of Brunswick County beach communities should be rela-
tively unaffected by emerging Federal policies for the nation's barrier
islands. Under new regulations, no Federal flood insurance will be made
available to undeveloped barrier islands after October 1983. Moreover,
the cost of insurance for existing barrier island development may increase
in order to reduce or eliminate the Federal subsidy. The U.S. Department
of the Interior has recently recommended areas subject to the October 1983
cutoff. In Brunswick County, only the undeveloped Bird Island and the west-
ern tip of Sunset Beach adjacent to Mad Inlet are included.
10
THE COASTAL ECONOMY
Economic activities dependent on the coastal attributes and resources of
Brunswick County range from commercial and recreational fishing to the
construction and rental of seasonal housing. These activities and their
associated economic impacts are profiled under -the following headings:
• Commercial Fishing Industry
Recreational Fishing and Boating
• Vacation and Retirement Housing Industry
9 Other Visitor Facilities
• Seasonal Visitation and Its Impacts
COMMERCIAL FISHING INDUSTRY
Commercial fishing is an historically important industry in Brunswick
County, although its role in the overall economy has diminished greatly
over the years. Still, the industry is the major or secondary source of
employment and income to many hundreds of County residents. The industry
provides employment not only for commercial fishermen, but also supports
a number of seafood packing and processing houses, wholesale and retail
outlets, and boat builders. In addition, a great many restaurants along
the coast serve seafood from local waters.
All sections of the coast are affected by the commercail fishing industry,
with Southport and the Holden Beach area as the centers of activity. In
Brunswick County, the industry is highly fragmented and is typified by
numerous independent fishermen and small family operations. This frag-
mentation greatly limits assessment of the dimensions and impacts of the
local industry, since a great deal of information on employment, catch,
and other indicators is unreported, undocumented, or inaccurate.
The Catch
For all seafood, the recorded catch reached its peak in 1980. Thirty-seven
species were landed in the County having a total dockside value of $3.7
million. This reported catch was two percent of the total statewide
quantity (in pounds), but six percent of statewide dollar value. The pro-
portionally higher value of Brunswick County landings is attributable to
the dominance of shellfish, particularly shrimp and clams, in the County
catch. Crabs and oysters are also important. Shellfish landings accounted
for three -fourths of the County's total catch value in 1980.
-7-
Despite, the County's position as a leader in shellfishing, pollution of
harvest areas has surpressed the size of the catch over recent years. The
County has more than 22,000 acres of oyster and clam harvest bottom,
roughly 80 percent of which is off-limits due to pollution.
Summer and fall are the prime local catch seasons for finfish. The.summer
fishery is primarily deep sea, with groupers and snappers being the princi-
pal catches in 1980. The fall fishery, which includes spot and mullet, is
closer to shore. The shellfish season varies by species. From conver-
sations with knowledgeable local industry representatives, it was learned
that well over half and perhaps as much as 80-90 percent of the local
catch is exported out of the County. Oysters tend to be consumed locally,
while most clams and about half the shrimp catch are exported because of
their high cost relative to the local market. Local restaurants rely
heavily on imported shellfish to maintain adequate supplies throughout
their business seasons. Finfish used by restaurants in the area include
flounder and trout, most of which are imported from coastal areas in'north-
ern sections of the State.
Brunswick County also is a leader in landing and processing "industrial
fish", principally menhaden. Industrial fish were an estimated 95 percent
by weight and 40 percent by value of total commercial landings recorded in
the County in 1980. With industrial fish included, Brunswick County
would rank second only to Carteret County in total quantity of catch.
Menhaden are surface -running fish which migrate north and south along the
coast in compact schools, generally close to shore. Large boats frequently
can be seen close to shore following schools. Fish spills have become a
somewhat normal occurrence, but are a particular nuisance when they occur
along beaches during the tourist season.
Employment and Income
Commercial Fishing. An estimated 2,500 persons may have derived some part
of their livelihood from fishing in 1979, according to the Brunswick County
Planning Department. Only a few hundred, however, are dependent on fishing
for most or all of their incomes.
Rising operating costs and dependency on variable local shellfish resources
make commercial fishing a very fragile sector of the local economy. Many
fishermen in the County barely maintain a subsistence level of earnings
and must seek other sources of income. The average dockside value of catch
per fishermen in Brunswick County is only about half the statewide average.
In real dollar earnings, fishermen in the County and elsewhere have probably
lost ground over the last 10-15 years, despite recent increases in landings.
Brunswick County was home port in 1980 for an estimated 400-450 full-time
commercial fishermen who derive at least half of their incomes from fishing.
In addition, Brunswick County probably attracts many non-resident fishermen
because of the numbers of packing and processing facilities, dealers, and
retail outlets (e.g., Calabash restaurants) in the County. The snapper/
grouper and swordfish fisheries, for example, have brought a number of out-
of-state fishermen in local ports during recent years.
Shrimp leads all fisheries in generating full-time employment, but Standard
Products Co., the menhaden processor near Southport, maintains the largest
individual fishing operation.
State income tax records reveal an average gross income of $7,900 for
commercial fishermen in 1979, based on a sample of returns. This was iden-
tical to the 1977 average from the same source, indicating declining real
incomes (after inflation), despite substantial increases in the quantity
and value of the commerical catch. By comparison, menhaden fishermen do
relatively well, having averaged an estimated $12,900 for Brunswick County
landings in 1980.
Packing and Processing. Packing and processing operations in Brunswick
County include oyster shucking, crab picking and packing, and menhaden
processing. Several firms in the area are wholesale dealers. A few, such
as oyster houses, also sell at retail. A field survey conducted in February
1981 revealed 15 establishments in the County which appeared to be packing
houses or processing plants.
Five seafood firms responded to the questionnaire survey conducted in 1981.
Firms ranged in size from two to 45 full-time employees during their.peak
season. Estimates of gross sales or receipts ranged from less than $50,000,
for the smallest firm, to over $2.5 million,for the largest. Businesses
were dependent on coastal area visitors (i.e., sales to restaurants, etc.)
to varying degrees. The largest firm surveyed indicated that 75 percent
of its business was attributable to visitation. Oyster shucking and packing
houses are most active generally from September through March/April, and
are closed or maintain a much reduced operation during the rest of the year.
Other firms are active generally during the March/April to November/December
season.
For 1980, the NC Bureau of Employment Security Research (BESR) reported
nine firms in the County, with an average annual employment total of 204.
This was sharply down from the 263 employees (annual average) for the same
number of firms reported in 1979. The drop was associated with declines
in commercial landings of crabs, oysters, and menhaden --three principal
species processed locally. Similarly, average annual payrolls per worker
declined from $10,770 in 1979 to $10,610 in 1980.
-10-
Estimated per worker averages and total payrolls by sector for 1980 are as
follows:
Seafood Menhaden
Avg. Payroll/Worker($) 8,900 15,600
Total Payroll($) 1.4 million 0.8 million
Avg. Annual Employment (No.) 154 50
Total estimated 1980 payrolls from packing and processing operations in
the County were $2.2 million. The total value of shipments or products
sold by County firms in 1980 is conservatively estimated to have been $13.0
million. Of this amount, the seafood sector accounted for $7.0 million.
(54 percent), and the menhaden processing sector for $6.0 million (46 per-
cent).
Wholesale Trade. This sector consists of three types of dealers: those
who catch and sell, those who buy from fishermen and sell, and those who
buy from other dealers and sell. Many fishermen in the County fall into
the catch and sell category. Several local packing/processing firms are
also wholesale dealers. In 1980, Brunswick County had 30 dealers who buy
from fishermen and sell according to the U.S. National Marine Fisheries
Service (NMFS). Most operations are very small, averaging only 1-2 persons.
The State issued licenses to 104 "seafood dealers" in the County in 1980.
Licensees include numerous individuals and retail stores and several shuck-
ing/packing houses. Only Carteret County, with 116 licensees, exceeded the
Brunswick County number. The seafood catch in Carteret County, however,
was 16 times greater in quantity and five times greater in dockside value
•than the Brunswick County catch in 1980. This comparison illustrates the
fragmented, small business nature of the local industry.
Payrolls in the fish and seafood wholesale sector were an estimated $140,000
in 1980, averaging $4,650 per worker. Total sales of goods wholesaled by
Brunswick County firms in 1980 were an estimated'$1.75 million.
Boat Building and Repair. Boat building and repairing is a minor industry
in Brunswick County, but directly tied to commercial fishing.. Five firms
with annual average of 20 employees were reported in BESR data for 1980.
RECREATIONAL FISHING AND BOATING
Sport fishing recreational boating are among the most popular pastimes of
seasonal visitors and permanent residents in Brunswick County. Millions
of dollars flow through the local economy annually from a variety of
facilities and services in the coastal area which cater to fishermen and
boat owners.
-11-
Coastal Fishin
The fishing season in Brunswick County extends generally from early spring
(March -April) to late fall (November -December). Spring and fall months are
favored for surf and pier fishing by serious fishermen, although pier usage
peaks during summer months with the arrival of family vacationers and sea-
sonal residents. Summer months are preferred for offshore and deep sea
fishing because of more favorable sea and weather conditions. Boat fishing
in inside waters occurs throughout the season, but also tends to peak during
the warmer months.
Most species found in local waters can be fished successfully for several
months, but many are better at certain times of the year. Spring and fall,
for example, are the best for bluefish, croaker, trout, and kingfish (whit-
ing). Others, including flounder and spanish mackerel, are most in evidence
during summer months. The fall months are best for spot and king mackerel,
among others.
An estimated 425,000 saltwater fishing occasions (days or parts thereof)
generated expenditures of $4.9 million in Brunswick County. Average expendi-
tures per occasion were estimated to be $11.50, excluding costs of lodging,
travel, and capital goods. These estimates were based on data from a 1979
NMFS survey of marine recreational fishing in the South Atlantic states.
Fishing tournaments have become a popular way to extend the tourist season
in coastal areas. The U.S. Open King Mackerel Tournament held in local
waters has a three-year history, beginning in 1979 with 314 boats registered
and carrying some 1,500 fishermen. The 1981 tournament drew an estimated
472 boats and over 2,500 fishermen. Many fishermen are accompanied by family
and friends, suggesting that the three-day tournament may have generated as
many as.5,000 visitors to Brunswick County in 1981 and spending of $0.25
million on food, fuel, lodging, and other local goods and services.
Recreational Boating
Boating in Brunswick County is generally incidental to fishing. Lacking the
large open water areas characteristic of northern coastal counties, pleasure
boating and sailing are relatively less important recreational pastimes in
local waters. Nevertheless, motorboat registrations in the County increased
from 35 per 1,000 residents in 1970 to 100 boats per 1,000 residents by 1979.
Growth of local registrations results from several factors, among which have
been the development of numerous lagoon homesites in the South Brunswick
Islands.
The ratio of pleasure boats with commercial fishing gear to total motorboat
registrations in the County is exceeded in only one other coastal county,
indicating the more utilitatian nature of boating activity in Brunswick
County than that of many other coastal counties.
-12-
Boating activity by local residents and visitors picks up in March/April
and tapers off around November, generally corresponding to the fishing sea-
son. Peak activity occurs during the summer months, influenced largely by
the arrival of non-resident homeowners.
The Intracoastal Waterway accommodates a range of commercial and recreational
traffic, including trawlers, barges, sailboats, small power boats, and large
motor yachts. Counts at the Ocean Isle Beach drawbridge showed over 4,000
sailboats and yachts in 1980. Distinct peaks occur in the spring and fall,
with heaviest traffic occurring in October and May. The spring peak, which
begins in April and continues into June, results from interstate traffic
heading north along the Waterway. Interstate movements to the south are the
basis for the more exaggerated fall peak, which begins abruptly in October
and ends in November. This long-distance Waterway traffic is unrelated to
the local recreational boating season, which peaks during the summer months.
The same traffic is probably not significant in local economic terms, since
much of its may traverse the County without stopping for goods and services.
Local Facilities and Services
Facilities and services found in the County include fishing piers, charter
and head boat services, marinas, and launch ramps. The center for fishing
and boating is Southport, but facilities and services are located all along
the coastline and Intracoastal Waterway.
Fishing Piers. Brunswick County has six commercial ocean fishing piers --
three on Oak Island and one each in Holden Beach, Ocean Isle Beach, and
Sunset Beach. All have food service, amusement/game rooms, and rent fish-
ing tackle. Three piers provide overnight accommodations on or near the
site. Piers are open from April through November. Ranging in length from
800-1,100 feet, they extend beyond the breaker zone, increasing the variety
of fish available to anglers.
Piers averaged an estimated 35,000 visits in 1980, but ranged from less than
15,000 to over 50,000 for individual piers. Generally, those with on -site
lodging had the highest overall attendance. The summer season (June -August)
accounts for half of total annual business at most piers. During this 1980
season, piers averaged 150-200 patrons daily.
All six piers generated an estimated $1.1 million in revenues in 1980,
exclusive of lodgings, but including entry fees, bait sales, food sales,
and receipts from amusements on the site. Overall revenues average to
approximately $180,000 per pier. Commercial piers provided an estimated
$330,000 in payrolls in 1980 and 49 full-time equivalent jobs, averaging
around eight per pier.
Brunswick County's piers accounted for an estimated 49 percent of all local
fishing occasions, but only 20 percent of expenditures.
-13-
Charter and Head Boat Services. Charter and head boats provide opportunities
or deep sea fishing to novices and others not having proper equipment or
means of access to offshore fishing grounds. Charter boats cater to small
cohesive groups (usually 4-8) for a group fee. Head boats, also called party
boats, cater to much larger groups of unrelated anglers for individual (per
head) fees. Thirteen charter boats and three head boats operated in the
County in 1981.
Charter fishing takes place from early spring to late fall, but has only an
approximate 150-day season. Weekend and weekday fishing is typical during
summer months, while spring and fall months are limited generally to week-
end fishing. Only about 60 percent (90 days) of this season may actually
be fished because of inclement weather. The summer months account for one-
third to one-half of annual usage, but charter groups tend to be larger per
day in spring and fall months.
Charter fees vary by operator and size of group and averaged $250 in 1981
for a 6-person charter, exclusive of food and drink. The 13 charter boats
in the County generated estimated gross fees of $292,500 in 1981, averaging
less than $25,000 per boat. Head boats generated another $95,500 in fees.
Neither charter nor head boat fishing are sources of year-round employment
to operators and employees. Charter boats typically have a crew of two
(captain and mate), but only fish for perhaps 90 days or less per year.
Head boats have larger crews, but also fish a limited season. Both are
relatively marginal economic ventures, in which operators often double as
commercial fishermen or require other income sources. Employment is season-
al and probably averaged not more than 25-30 part-time jobs during 1981,
many of which may have been filled by members of boat operator's families.
In the aggregate, charter and head boat fishing accounted for an estimated
$388,000 in gross income to operators and 13,400 fishing occasions in 1981.
These estimates represented approximately seven percent of saltwater fishing
expenditures and three percent of fishing occasions in the County.
Marinas and Landings. Brunswick County has 18 marine commercial establish-
ments along the. Intracoastal Waterway and connecting water areas. Facil-
ities range from full -service marinas to restaurant docks. Concentrations
-are found in Southport,-Shallotte Point, and Calabash.
In general, local establishments are modest both in size and services pro-
vided. Most are oriented to local boating and fishing rather than long
distance Intracoastal Waterway traffic. Typical features include a launch
ramp, dock, and fuel sales. Local marinas have an aggregate capacity of
approximately 175 slips, in contrast to New Hanover County and Horry County
(Myrtle Beach and vicinity), which have approximately 1,000 and 600, respec-
tively.
-15-
Summer and fall are the peak seasons for local marinas and landings. Two
establishments which responded to the questionnaire survey indicated that
these seasons accounted for 75-80 percent of all boats stopping for service
(e.g., fuel). Telephone interviews with other establishments confirmed this
general seasonal business pattern. The Southport Marina, on the other hand,
noted a higher business volume in spring and fall months, as a result of
fuel and other sales to large yachts passing through on the Waterway. While
indicating that the number of boats may be greater during the summer, they
are smaller and consume much less fuel than Waterway -oriented boats, which
peak in the spring and fall.
Assessment of the economics and impacts of commercial marinas and landings
in the County was precluded by lack of data and the widely different mix
and scale of facilities and services at individual establishments. At the
State level, marine service establishments averaged an estimated $175,000
in gross income in 1979, but this average is likely to be much higher than
that in Brunswick County.
Economic Impacts
Assessment of income and employment impacts of local recreational fishing
and boating excludes costs of lodging and travel to/from the area, since
the major portions of these activities are incidential to other reasons for
visiting the coastal area. Omitting these expenditures, recreational fish-
ing and boating in the County may be as much as a $10 million industry, the
largest component of which is saltwater finfishing. Local expenditures for
this fishing activity were estimated to have been $4.9 million in 1979, as
previously noted, or $5.5 million in 1980, after adjusting for inflation.
The balance is composed of expenditures on marine equipment and supplies,
repair services, pleasure boating activity, and recreational shellfishing.
Principal components are assessed below.
Saltwater Finfishing. An expenditure level of $5.5 million in 1980, would
support an estimated $1.38 million in payrolls and 205 full-time equivalent
jobs. These estimates encompass fishing pier operations and charter and
head boat services, as well as payrolls and employment associated with ex-
penditures made by fishermen at marinas, food stores, restaurants and grills,
and other places of business. Many fishing -related jobs are part-time;
thus, actual employment will be greater during the peak season than the
number of equivalent full-time jobs estimated above.
Marine Retail Trade. Gross sales by boat and marine supply dealers in the
County totalled 1,587,000 in FY 79-80, as shown by the records of the NC
Department of Taxation. These sales generated an estimated $143,000 in
local payrolls and 18 equivalent full-time jobs. Employment is highly sea-
sonal, having fluctuated from less than 10 jobs in the winter months to
over 30 during the peak season of FY 79-80.
-16-
VACATION AND RETIREMENT HOUSING INDUSTRY
Vacation and retirement housing along the coast is the mainstay of the
County's recreation/tourism industry. Moreover, an increasing percentage
of coastal residents are retirees who settle in the area, in part, because
of its amenities and recreational resources. Vacation homes and apartments
constitute the major share of overnight lodging in the County by a wide
margin, accounting for over 90 percent of capacity in the coastal area.
Outside the City of Southport, the majority of housing is seasonal. Re-
tirees occupy the largest share of homes used year round in the beach
communities and in unincorporated coastal mainland sections. Nearly four
of every five new units are built as second homes for use by out-of-town
owners and/or renters.
Motivations for investments in coastal properties range from immediate
retirement to speculation and equity appreciation. On or near the ocean-
front, principal motivations are personal use and financial return from
rentals and equity appreciation. Properties away from the oceanfront or on
the mainland more often are sought by those planning immediate or eventual
retirement.
Over the long term, demographic and economic factors favor continued growth
of vacation and retirement housing in coastal areas. The extent of growth
is more likely to be limited by physical and regulatory factors, which
affect the amount and cost of buildable land. The future growth of Bruns-
wick County is not significantly limited. The supply of oceanfront land
is diminishing, but this trend is somewhat offset by the increasing con-
struction of condominiums.
Market Characteristics
Subdivision Activity. Brunswick County has the distinction as the most
subdivided county in North Carolina. The county's physical characteris-
tics, low taxes, and absence of strong land use regulations have en-
couraged numerous subdividers and developers to plat thousands of lots
in the coastal area.
Federal records indicate that Brunswick County accounts for 15-20 percent
of all reported subdivision lots in North Carolina. In the order of 48,000
lots in some 100 different subdivisions in Brunswick County were reported
by HUD's Office of Interstate Land Sales Registration through 1980. Largest
among these subdivisions is Boiling Springs Lake, with over 10,800 lots.
Seasonal Housing. Housing used on a seasonal or occasional basis in the
coastal area has grown from 5,225 units in 1975 to an estimated 7,965 units
in 1980--a 52 percent increase. The average annual rate of growth since
1975 has been 550 units. The six beach communities averaged 255 new units
annually, while nearby unincorporated areas have grown at a faster rate --
an estimated 296 units annually.
-17-
Most units are single-family "cottages", but multi -unit condominiums repre-
sent an increasing share of starts in the beach communities. This type of
housing will be in even greater demand in the future, as land on or near
the beachfront becomes increasingly scarce and housing costs escalate.
Price. In the beach communities,the major price variable is land. Costs
of lots vary widely from one community to another, as well as within a
community.- Lots are highest priced along the oceanfront, fall off dramat-
ically moving away from the oceanfront, and rise slightly adjacent to
natural and man-made waterways. Costs of waterway lots generally reflect
dredging and bulkheading costs. These patterns are consistent for all
beach communities, but differences among communities are substantial.
Lot prices increase from east to west along the coast, with Sunset Beach
having the highest -priced lots. A number of factors account for this
phenomenon, including beach conditions, community character, amount of
available oceanfrontage, and proximity to the Myrtle Beach area. In Ocean
Isle Beach and Sunset Beach,the cost of oceanfront lots exceeds the average
cost of homes erected on them. Average costs of site -built homes ranged up
to $50,000 during 1980-81, depending on location.
Seasonal Rentals. Rentals of seasonal units provide substantial incomes
to owners and local realty firms, but affect less than half of all seasonal
units in the six beach communities. Proportions of rented units to total
seasonal units vary, however, by community. Of 2,270 seasonal units on
Oak Island, only 22 percent are rented through local firms. In the South
Brunswick Islands, 53 percent of an estimated 1,925 seasonal units are
rented through local -firms. Altogether, over 1,500 units were rented
through local firms in 1980.
An estimated 80-90 percent of all beach community rentals are advertised
and managed by local realty firms as a regular business activity. More
than half (52 percent) of all agency -rented units in the beach communities
are oceanfront, the prime rental location.
Seventy percent of the agency -managed rental units were single family
cottages. Nineteen percent were separate apartments in larger cottages
or units in duplex dwellings. Eleven percent of units were located in multi-
unit projects, including condominiums.
Rents increase moving west along the coast from Oak Island to Sunset Beach
for two principal reasons:
• Overall averages in Oak Island and Holden Beach are held down by
older and smaller units.
• Ocean Isle Beach and, particularly, Sunset Beach are nearer to
Calabash and South Carolina's "Grand. Strand".
-19-
t�
Table 2
CHARACTERISTICS OF SEASONAL UNITS
RENTED THROUGH LOCAL REALTY FIRMS, 1980
Percent of
Percent
Average
Weekly Rent,
Number
Total Sea-
Percent on
Single Unit
Peak Season ($)
Beach Community
of Units
sonal Units
Oceanfront
Cottages
Oceanfrt.
All
Oak Island
Caswell Beach
16
24.6
68.8
81.3
---
---
Long Beach
467
22.5
62.7
66.2
---
---
Yaupon Beach
18
13.8
11.1
94.4
---
---
501
22.1
61.1
67.7
325
300
South Brunswick Islands
Holden Beach
374
46.8
49.5
67.1
375
300
Ocean Isle Beach
436
55.2
54.1
64.2
400
350
Sunset Beach
206
61.5
27.7
91.3
550
375
1,016
52.8
47.0
70.8
---
---
All Communities
1,517
36.2
51.7
69.7
---
---
Not calculated or
averaged
separately.
Source: Kenneth Creveling Associates
While rents are comparable for newer, larger single family cottages in all
beach communities, a mix of older units, cottage apartments, duplex units,
and multi -family units affects average rents for each community. This is
particularly true for oceanfront units, which range from $325 per week, on
average, in Oak Island to $550 in Sunset Beach.
Units on the oceanfront have the highest rents, with those on natural water-
ways next. Second row and dredged canal units are about equal in price.
Rents fall -off substantially away from the oceanfront. Rents for second
row units, on average, are one-third less than oceanfront units.
Occupancy. Rental units in the South Brunswick Islands have an estimated
average annual occupancy rate of 35 percent, compared with 40 percent in
Oak Island. Some local motels and rental homes on Oak Island are sources
of temporary housing for CP&L nuclear plant workers and their families
during fuel change and repair cycles.
During the summer months (June-August),occupancy averages 90 percent, reach-
ing almost full occupancy during July and August. Spring and fall months
average 25-30 percent occupancy, while winter months average less than five
percent. The average length of stay for renters during the summer is one
week. Saturdays are the peak turnover days. Some renters (approx. 20-25
percent) stay two weeks or longer. At other times, weekend use is typical.
Owner and Visitor Origin. Seasonal units are owned largely by North Carolina
residents. Seasonal visitors are more widely distributed. It is estimated
that most owners live within four hours driving range of their property, but
that typical renters travel much longer distances. North Carolina is the
leading state of origin for renters, but South Carolina and states north and
west of North Carolina are also well represented.
Economic Impacts
The vacation and retirement housing industry in Brunswick County has wide-
spread impacts -on the local and regional economies. Direct impacts include:
• Incomes to developers, builders, and owners from sales and rentals.
• Commissions to real estate agents and property management firms.
• Employment and payrolls generated by construction and maintenance
activities.
• Sales of building materials, appliances, and furnishings.
-21-
Real Estate Employment and Income. Sales and rentals of vacation and re-
tirement properties in the beach communities supported an estimated 40 real
estate offices, 170 average annual employees, and payrolls of nearly $1.5
million in 1980. Two dozen of these firms serve as rental agents and several
are also involved in home building. Those responding to the questionnaire
survey averaged 7-8 full-time and part-time employees during the summer
season and 4-5 employees in the off-season. Altogether, there were 49 real
estate offices in the coastal area in 1980, plus sales offices for 10 land
development companies or projects.
Rentals. Rentals in the six beach communities generate income to owners
and commissions and management fees to local real estate agents and property
managers. In 1980, owners grossed an estimated $8.1 million from seasonal
rentals of 1,517 units handled through local firms. Local firms received
an estimated $0.9 million in management fees from these rentals.
Maintenance and Repair. Virtually all units need maintenance or repair
annually. Oceanfront units average $450 in maintenance and repair costs
annually (1980 dollars), while non -oceanfront units average $250. Ocean-
front units are larger, as a general -rule, have higher occupancy rates, and
are more exposed to the elements. The estimated local economic impact of
maintenance and repair activities in connection with vacation and retirement
housing in the six beach communities in 1980 is $1.24 million.
Construction. The typical beach community unit averaged $50,000 in new
construction cost in 1980. Of this, labor cost is an estimated 35 percent
on $17,500 per unit. Each unit will generate 1.8 jobs in the local con-
struction sector, versus less than 0.2 jobs per mobile home. At 1.8
construction -related jobs per new unit, the annual employment impact based
on the number of permits issued in 1980 (i.e., 310) was 560 jobs, not in-
'cluding builders and general contractors. It is estimated that another 150
construction jobs were required in connection with new vacation and retire-
ment housing in other sections of the coastal area, for a total of 710 jobs.
Building Materials and Supplies. Costs of lumber, hardware, and other
materials and supplies represent an estimated 40 percent of total costs,
or $20,000 for the typical beach community unit. Based on 310 construction
permits issued for dwelling units in the beach communities in 1980, an
estimated $6.2 million in materials and supplies were purchased. These
purchases translate to payrolls of $560,000 and employment of 50 persons.
Summar . The vacation and retirement hous
communities had an estimated direct econom
in 1980, not including property sales. Th
nesses in Brunswick County may only be hal
of labor and building materials come from
rental units are non-residents, therefore,
County.
-22-
ing industry in the six beach
is impact in excess of $25 million
e impacts on residents and busi-
f this total. Significant shares
other counties. Most owners of
rental incomes largely leave the
Table 3
SUMMARY OF KEY ECONOMIC IMPACTS
OF THE VACATION AND RETIREMENT HOUSING INDUSTRY
IN THE BEACH COMMUNITIES, 1980
Average
Type of Impact Impact per Unit Total Impact
Real Estate Employment and
Payroll (40 offices)
• Annual average jobs
NA
170
• Annual payrolls
NA
$1.5
million
Seasonal Rentals (1,517 units)
• Income to owners
$5,340
$8.1
million
• 'Commissions/fees to
local agents
$ 600
$0.9
million
Maintenance and Repair (5,550 units)(1)
• Labor and materials cost
variable
$1.24
million
Construction (310 units)
• Jobs (full-time equivalent)
1.8
560
• Payrolls
$17,500
$5.4
million
• Total value (excluding land)
$50,000
$15.5
million
Building Materials and Supplies
(310 units)
• Retail cost
$20,000
$6.2
million
• Payrolls
$1,800
$0.56
million
• Jobs (full-time equivalent)
0.16
50
NA Not applicable.
(1) All residential units counted as either vacation or retirement
homes.
Source: Kenneth Creveling Associates
-23-
OTHER VISITOR FACILITIES
Other businesses strongly affected by visitors
motels, campgrounds, restaurants, food stores,
golf courses, and amusements. Selected types
are reviewed below.
Motels and Campgrounds
to the coastal area include
specialty shops, gas stations,
of visitor -oriented facilities
Motels and campgrounds constitute a minor ten percent of total overnight
capacity in the coastal area, but a larger share of available capacity dur-
ing off-season months when most seasonal cottages and apartments are closed.
Accommodations in the County are smaller, on average, than those of many
other coastal counties. According to state directories, Brunswick County
had only one motel with over 50 rooms and one campground with over 100 sites
in 1980.
The Brunswick County coastal area contained 25 motels/inns and 10 campgrounds
with an estimated 486 rooms and 464 campsites in 1980. The majority of motel
units and campsites are found in the beach communities. Two-thirds of the
motel units are located in the Southport -Oak Island area, while over 80
percent of the campsites are located in the South Brunswick Islands area.
Type of
Southport -Oak
South Brunswick
Total
Unit
Island area
Islands -Calabash area
Units
Motel/inn
322
164
486
Campground
74
390
464
396
554
950
Local motels and campgrounds have a collective average annual occupancy rate
of 40-45 percent. The industry -wide break-even rate is 60-65 percent, but
much lower occupancy rates are not uncommon in seasonal vacation and tourist
areas. In such areas, closing a business for part of the year is one means
of achieving a higher effective occupancy rate. Lodgings in Southport and
Shallotte, in general, are open all year, since they cater to more than
beach visitors. In contrast, most lodgings in the beach communities close
during the winter months. Only one campground and a few motels in or near
the beach communities remain open year round.
Revenues generated by coastal area motels and campgrounds totalled an esti-
mated $2.3 million in 1980. Of this total, motels accounted for $1.9 million
and campgrounds for $0.4 million.
-24-
Supply o.
BWUna SprhWs Le" �+ � '
lShallolt• Carolina_w% 1 Baaoh
44
1i %J
M 1i ' 1 T
•\ M $� — M C �� ,,;lea J
Hold* go
loop each r ' c:'• ,
Ocean NN each
Sunset a ` M C C aupon 8seU� 'I: ,nCi
—`_ •\M i' b C C M M `(�` ` M Caswell Beach i, M
Bald Head Wood
ATLANTIC OCEAN
Ilf
i 1
O JI
`I � • i
e 1 1
1 i 1
• ` � i it
1 �
` 1
t
Figure 5 '
TRANSIENT LODGINGS p MOTELS art INNS
CO CAMPGROUNDS
COASTAL ENERGY IMPACT STUDY
BRUNSWICK COUNTY,NORTH CAROLINA Miles
0 1 2 3 4 5
KENNETH CREVELING ASSOCIATES sou.o.:Flwsl..w.s/e,
These revenues averaged an estimated $3,800 per room and $900 per campsite
in 1980. Actual revenues vary by establishment size and location; thus,
these unit averages should not be used to assess individual businesses.
Highest average revenues per motel room are associated generally with the
largest facilities, both in the beach communities and on the mainland.
Generally, establishments with 40 or more units averaged $6,500 per room,
while those with less than 40 units averaged $3,000 per room. Revenue
estimates ranged from around $2,000 or less per room for small seasonal
motels (10 units or less) to over $8,000 per room for the largest year-
round motel in Southport.
Motels and campgrounds in the County are almost entirely family -run businesses.
Only half have payrolls. Most establishments in the County are simply too
small, on average, to maintain payroll levels comparable to many other coastal
counties. Payrolls and equivalent wages in the coastal area were $460,000 in
1980. Altogether, an estimated 120 proprietors, family workers, and other
employees were supported in whole or part by coastal motels and campgrounds
in the County in 1980.
Restaurants
Over 80 restaurants, grills, dairy bars, and fast food establishments were
counted in the coastal area during a field survey in February, 1981. Several
are part of or are associated with larger businesses, such as marinas and
fishing piers. The largest concentration is found in Calabash, with over 23
establishments counted. The eating -out business is a major industry in the
western part of the County, with Calabash -style seafood as the principal
attraction.
Southport- South Brunswick Coastal area
Oak Island area Islands area total
All establishments 32 49 81(1)
No. combined with piers,
marinas, etc. 6 8 14
No. fast food, grills,
dairy bars, etc. 12 10 22
No. closed or out of
operation in 2/81 11 29 40
Excludes Shal otte and other non -coastal areas of the County.
Local eating places are highly sensitive to tourists and seasonal visitors.
Seven of ten questionnaire survey respondents indicated that 75 percent or
more of their business was attributable to non-residents. As shown above,
nearly half of those counted were either closed or out of operation in 2/81,
including 60 percent of those in the South Brunswick Islands -Calabash area.
-26-
Receipts averaged an estimated $1,500 per seat for restaurants having fewer
than 100 seats and $2,000 per seat for those having more than 100 seats..
Total estimated 1980 sales by all establishments in the coastal area are
$11.9 million. Average estimated sales per establishment in 1980 were
$147,000. Calabash restaurants averaged $340,000 each and, as a group,
accounted for 60 percent of total restaurant sales in the coastal area.
Coastal area establishments generated an estimated $2.7 million in labor
income and employed an average of 665 persons in 1980. Restaurant worker
wages are much lower than other businesses because of the seasonal, part
time nature of the business in the area. A wide majority of jobs are part
time or are full time for limited periods. Wage and salary employment in
1980 ranged from around 300 during mid -winter months to over 700 in,the
peak season.
Recreational Attractions
Aside from six commercial fishing piers, coastal area facilities in 1980
included six golf courses (seven, if the Boiling Springs Lake course is
added), five miniature golf courses, two water slides, and several amuse-
ment arcades.
Golf Courses. An estimated 125,000 rounds were played on the seven courses
in or near the coastal area in 1980. Greens fees, cart rentals, pro shop
and food sales, and related expenditures totaled an estimated $2.3 million.
This activity generated $680,000 in payrolls and employed an annual average
of 100 persons. Golf patrons are largely non-residents. Activity peaks in
the spring and fall for those courses closest to Myrtle Beach, and during
*the summer at other courses. Golfing and associated revenues and impacts
are expected to increase with continued growth of the retirement population
and seasonal visitation in the area.
Miniature Golf. Courses range from modest to elaborate, although less
e aborate than many found in the Myrtle Beach area. These facilities rely
most heavily on summer visitors, and generally close for several months
during the year. Rounds played and revenues vary greatly by facility. For
most facilities, gross revenues averaged around $30,000, based on approxi-
mately 20,000 rounds played in 1980. A typical local facility will support
1-2 seasonal employees.
Water Slides. These attractions were found in Long Beach and Ocean Isle
Beach. Like miniature golf, water slides are oriented almost totally to
summer visitors, and are closed for much of the year. A typical facility
generated $125,000 in revenues and employed 2.2 persons in 1980. Individual
operations will vary substantially if food sales and other attractions are
included.
-27-
SEASONAL VISITATION AND ITS IMPACTS
County -level tourist -expenditure estimates developed by the State presently
are based on receipts from hotels, motels, and other commerical places of
accommodation. This technique is seriously misleading for Brunswick County,
in which 90 percent of overnight visitor capacity is in seasonal cottages
and apartments. Rentals of these units, in all but a few cases, are not
taxed as retail sales; thus, the State method uses a much smaller data
base for expanding to total estimated expenditures.
Because of shortcomings in the State method, another procedure was utilized,
which takes local characteristics into account. Visitor expenditures were
developed from estimates of the number of visitor days spent in the area
and assumptions of per person per day expenditures by overnight and day
visitors.
Visitation
Overnight visitors spent an estimated 3.3 million visitor days in the coastal
area in 1980. These included cottage and apartment renters and guests, non-
resident owners and guests, and motel and campground users in the beach
communities and in other sections of the coastal area. Day visitors spent
another 1.2 million visitor days in the area, for a total of 4.5 million
visitor days. A visitor day is defined as a day or part thereof spent in
the coastal area by a non-resident, during which time an expenditure for
goods and/or services is assumed. Not included in these estimates are
travelers passing through on U.S. 17, unless they stopped for services in
the coastal area.
An estimated 1.5 million visitor days were spent in the Southport -Oak Island
area, including 1.2 million by overnight visitors. The South Brunswick
Islands -Calabash area generated an estimated 3.0 million visitor days, of
which 2.1 million were by overnight visitors. Another 0.9 million visitor
days were spent by day visitors in this area, attracted mainly by Calabash
restaurants.
Visitor day estimates for overnight visitors reflect the following number
of visitor days per unit.
Type of Accommodation Visitor Days Per Unit
Seasonal cottages/apartments rented
through local realty firms --
beach communities only 725-765
Seasonal cottages/apartments used or
rented directly by owners--
beach communities 360-380
-28-
Table 4
SUMMARY OF ESTIMATED VISITOR DAYS SPENT
IN THE BRUNSWICK COUNTY.COASTAL AREA, 1980
By Overnight
By Da
(000)(2)
By All
Percent of
Area
Visitors (000)(1) Visitors
Visitors (000)
Coastal Total
Southport -Oak Island
Oak Island
1,150.8
230.2
.1,381.0
30.6
Other (incl. Southport)
69.7
50.0
119.7
2.7
1,220.5
280.2
1,500.7
33.3
South Brunswick Islands -Calabash
r'v Holden Beach
577.6
28.9
606.5
13.4
to
' Ocean Isle Beach
477.3
23.9
501.2
11.1
Sunset Beach
240.0
12.0
252.0
5.6
Other (incl. Calabash)
799.3
850.0
1,649.3
36.6
2,094.2
914.8
3,009.0
66.7
Total --Beach Communities
2,445.7
295.0
2,740.7
60.7-
Total--Coastal Area
3,314.7
1,195.0
4,509.7
100.0
(1 Estimated by location
of overnight lodging.
(21 Visitors not staying
overnight in the coastal
area.
Source: Kenneth Creveling Associates.
Seasonal homes used or rented directly
by owners --mainland 180-190
Motels --all 440
Campgrounds --all 585
Note: These indicies were calculated from estimates of the numbers
of visitor days and numbers of units of each type.
Expenditures
There are three types of local spending by visitors to the Brunswick
County coastal area, as follows:
• Normal vacation and trip -related expenditures for lodging, food,
fuel, recreation, and related items.
• Home -related expenditures by non-resident owners of seasonal cot-
tages and apartments on such goods as furniture, equipment, and
supplies and on services associated with maintenance and -repair of
seasonal homes.
• Other expenditures, usually by non-resident owners, related to the
purchase and servicing of recreational equipment, including boats
and motors, and other capital goods.
Day and overnight visitors to the coastal area in 1980 spent an estimated
$48 million on normal vacation and trip -related items, which constitute
the major share of expenditures by non-residents. Of this total, however,
only $37 million was directly spent or retained in the County. This in-
cludes 28 million by overnight visitors and $9 million by day visitors.
Seasonal cottage and apartment rental expenditures accrue almost entirely
to non-resident owners and, thus, leave the County. Some returns to the
County, however, in the form of commissions paid to local realty firms,
purchases of furnishings and other home -related goods, and expenditures
for maintenance and repair services. In addition to exporting rental expen-
ditures, some portion of spending by overnight visitors occurs on side trips
to nearby areas, such as Myrtle Beach.
Estimates of total vacation and trip -related expenditures for 1980 are
based on the following per capita per day spending assumptions applied to
estimated numbers of visitor days for each category of visitor:
-30-
Type of Visitor
and Accommodation
Overnight Visitor
Seasonal cottage/apartment--
beach communities, rented locally
Seasonal cottage/apartment--
beach communities, other
Seasonal home --mainland
Motel --all
Campground --all
Day Visitor
Assumed'Expenditures
Per Person Per Day ($)
17.000)
9.00(2)
5.00
22.00
9.00
7.50
1 Includes rent averaged out at $7.00 per person per day)
(2) Rents are negligible.
Vacation and trip -related expenditures made in the County by coastal area
visitors are distributed among the following categories:
Category
Food (markets, restaurants, etc.)
Transportation (fuel,etc)
Lodging (motels/campgrounds)
Recreation (golf, fishing, etc.)
Other (souvenirs, gifts, etc.)
Total --All Categories
Estimated 1980 Percent of
Expenditures Total
($ millions) Expenditures
21.6
58.4
3.4
9.2
2.3
6.2
5.7
15.4
4.0
10.8
37.0 100.0
Fifty-eight percent of the visitor dollar spent in the County in 1980 went
for food, which accounts for the disproportionate shares of retail sales
by grocery stores/markets and by eating/drinking places in the County.
Spending for auto services, lodging (other than seasonal cottage/apartment
rentals), recreation, and other goods and services were relatively minor
by comparison.
-31-
With the addition of seasonal cottage/apartment rentals, home furnishings
and housekeeping -related purchases by non-resident owners, and other capital
goods purchases, total spending by visitors to the coastal area probably
exceeded $50 million in 1980.
Direct Economic Impacts
An estimated $37.0 million of vacation and trip -related expenditures in the
County in 1980 by coastal area visitors had the following impacts:
• Generated $6.3 million in local payrolls.
• Supported approximately 1,165 average annual jobs.
• Supported in whole or part 275-300 local businesses.
These payroll and employment impacts are inclusive of those previously and
individually assessed for fishing piers, charter and head boats, and marinas,
and for motels and campgrounds, restaurants, and recreational attractions.
Not reflected in the above estimates Cf payrolls and employment are impacts
from the construction and rental d seasonal cottages and apartments, from
local purchases of housing -related goods and services by non-resident owners
of seasonal homes, and from local purchases of out -of -the -ordinary capital
goods and services by visitors, such as the purchase and overhaul of boats
and motors.
Coastal area visitor expenditures accounted for 11 percent of all local wage
and salary employment. Average annual wages for jobs in the travel/recre-
ation sector, however, were less than half of the countywide average for
all jobs, because of the seasonal nature of employment related to travel
and recreation.
Money brought into the area by visitors turns over several times, generating
additional income and supporting more jobs with each successive turnover.
Assuming a multiplier of 1.5, a direct expenditure of $37.0 million by
visitors will generate additional incomes of $18.5 million in the area, -as
expenditures are made by businesses and employees.
-32-
OIL SPILL SOURCES, RISKS, AND IMPACTS
Coastal areas are susceptible to crude oil and petroleum product spills
from a variety of sources. These include refineries, marine terminals,
vessel traffic, and offshore oil exploration and development. Sources
and risks of potential spills in the Brunswick County area, and vulner-
abilities of local natural resources and economic activities to spill
damage are summarized herein.
SOURCES OF POTENTIAL SPILLS
Announcement of plans in 1979 by the Brunswick Energy Company (BECO) to
construct a 150,000 barrel -per -day refinery on the Cape Fear River trig-
gered expressions of concern over the impact of oil spills on the region's
natural resources and the economic activities which those resources support.
For the present, the refinery is no longer an oil spill issue, plans having
been withdrawn by BECO in May 1981. Yet, other sources of spills continue
to exist, as was vividly illustrated by the spill which reached Dare County
beaches that same month. That spill resulted from the collision of two
cargo ships, with a reported 40,000-50,000 gallons of fuel oil reaching
shore and spreading along several miles of beachfront. One year earlier
(May 1980), a 644-foot tanker bound for Wilmington and carrying a reported
300,000 barrels of fuel oil nearly sank in waters near Frying Pan Shoals
some 26 miles from the mouth of the Cape Fear River. Fortunately, a poten-
tial spill of major proportions was averted, but the incident illustrates
the susceptibility of coastal areas to oil spill dangers.
Principal sources of oil spills which would affect coastal resources and
economic activities in Brunswick County are marine transportation, particu-
larly vessels transporting oil and oil products to/from the port of Wilmington
and along the coast, and offshore exploration and development. Trends of
marine commerce and the status of OCS activities in the region are reviewed
in this subsection.
Marine Transportation
During the nine-year period from 1969 through 1977, crude oil and petroleum
products moving through the port of Wilmington averaged nearly 4,800 tons.
Only four percent was crude oil. The remainder was composed of a variety
of refined products, chiefly residual fuel oil and gasoline. An estimated
85 percent of total annual tonnage of oil and oil products was inbound from
foreign and other U.S. ports.
Shipments increased rapidly during the early 1970s, peaking at over 6,500
tons in 1973. Foreign crude oil interruptions and resultant changes in
domestic production and demand caused a sharp decline in shipments, which
hit bottom in 1975. Shipments were up again in 1976 and 1977, but were well
below the 1973 high.
-33-
Fluctuations in shipments through Wilmington have been largely the result
of swings in imports of crude oil and refined products from foreign ports.
Meanwhile, shipments from other U.S. ports followed an upward trend in most
years, in response to growing regional demand for refined products. Imports
were more than half of all shipments into Wilmington in the early 1970s,
but slipped to around 30-35 percent by 1975-1977.
Fluctuations in tank ship and tank barge traffic paralleled the ups and
downs in oil and oil product shipments, peaking in 1973 and bottoming -out
in 1975. Between 1972 and 1977,.tank ship traffic averaged 750 arrivals
and departures, or approximately two per day. Roughly 350-400 of these
deep -draft ships serviced local petroleum terminals. Tanker barge traffic
averaged 1,550 movements during this period, or approximately four daily.
Tank ship traffic has been a small percentage of overall ship traffic,
averaging 5-6 percent of the total. Tank barge traffic, meanwhile, has
averaged 40-50 percent of total barge traffic on the River.
Tank ships calling at the port of Wilmington between 1972 and 1977 were
relatively small by contemporary standards. U.S. Army Corps of Engineers
data indicated that only 24 percent had drafts of 35 feet or more. Most
ships were probably less than 25,090,tons in deadweight capactity (DWT),
and average cargos appear to have been much smaller than that.
Offshore Oil Exploration and Development
The Federal government's outer continental shelf (OCS) oil and gas leasing
program permits commercial exploration and development of suspected undersea
oil and natural gas deposits in coastal waters of the United States. Several
lease sales have been held and are planned under the aegis of the U.S.
Department of the Interior. One such lease sale, No. 56, involves offshore
waters extending from the Outer Banks in North Carolina to southeastern
Georgia.
Lease Sale 56 includes 286 tracts covering some 2,500 square miles. Tracts
range from 15 to 115 miles from shore and lie in waters from 60 feet to
over 4,000 feet deep. An initial sale was held in August, 1981. Only 54
tracts were bid on and 47 of these were actually leased. A re -offering sale
is planned for June, 1982 for tracts on which no bid were received initially
and those others which were bid on but not accepted for lease. Bid and
lease activity was concentrated in clusters of tracts at the edge of the
continental shelf (approximately the 600-foot contour) and in deeper waters
offshore of the North Carolina coastline and in shallow waters near Savannah,
Georgia. Those tracts nearest to Brunswick County lie in deep waters 100 or
more miles southeast of Cape Fear.
If oil is discovered in commercial quantities, means of transportation to
land will have to be decided. Under ordinary circumstances, pipelines may
be preferred over tankers because of their comparatively safer operational
history, among other factors. Pipelines are the principal facilities for
-34-
transporting oil from offshore fields in the Gulf of Mexico. Pipeline
transportation to nearby coastal areas may be less feasible, however, if
plans for proposed refineries in the region are withdrawn, as in the case
of the BECO refinery. On the other hand, an offshore oil find may boost
industry plans for development of coastal refineries.
SPILL PROBABILITIES AND RISKS
Vessel -Related Spills
December, January, February, and June were the leading months for vessel -
related spills over 1,000 gallons along the Atlantic coast from 1975
through 1980. Spills over 1,000 gallons are regarded as major spills.
The winter season (December -March accounted for 46.5 percent of such spills
over this six -year period. For spills over 100,000 gallons, 71 percent
occurred during this four month season. This data illustrates the relative-
ly greater hazards associated with the colder months, when weather and sea
conditions are generally more adverse and long-lasting. These adverse
conditions increase risks of ship groundings and collisions and faulty
bulk transfer operations at sea moorihgs and marine terminals.
The coastal region extending from the Outer Banks to the vicinity of Hilton
Head Island, South Carolina, has had a very limited history of spills over
1,000 gallons from 1975 to 1980. Only eight such spills were recorded
during this six -year period, the largest of which was only 8,700 gallons.
No monthly or seasonal patterns are discernible from this limited data.
Altogether, an estimated 310 vessel -related spills of all sizes were record-
ed between 1975 and 1980 in this coastal region. Vessel -related incidents
peaked in 1978 with 76 spills. After that, the number dropped significantly
to only 30 vessel -related spills in 1980. Spills over 1,000 gallons were
2.6 percent of all vessel -related incidents during the six -year period.
A BECO study of oil spill impacts included estimates of the probabilities
of spills resulting from tank barge and tank ship accidents -- collisions,
groundings, rammings, etc. -- and from normal vessel operations, such as
ballast tank cleaning, cargo loading/off-loading, etc.
Probabilities of accident -caused spills of any size were conservatively
estimated at 5.22 per 100,000 trips (one-way movements) for tank barges and
36.4 spills per 100,000 port calls (two-way movements). Return intervals
for non -catastrophic spills were estimated at 8.6 years for tank barges,
9.1 years for product tank ships, and 200.2 years for crude oil tank ships
without the BECO refinery. A return interval is the statistical average
length of time between spills. For catastrophic spills, return intervals
were estimated to be at least ten times greater than those for non -cata-
strophic spills. The return interval for a catastrophic spill from a crude
oil tanker, for example, was estimated at 2,123.1 years.
-35-
Study findings suggest a negligible risk of accident -caused spills from
barges and ships transporting oil and oil products to/from the port of
Wilmington. Spills associated with two other types of vessel movements,
however, do not appear to have been included in this BECO study.
• Spills of cargo and fuel related to offshore accidents involving
tank ships not calling at Wilmington, but merely passing by en
route to/from other ports.
• Spills of fuel related to accidents involving other cargo ships.
These other accident -related spill sources, plus those associated with other
vessel operations, tend to increase overall risks to the Brunswick County
coastline.
OCS-Related Spills
Spill probability estimates were made by the U.S. Bureau of Land Management
(BLM) for OCS Lease Sale 56. Only six spills over 1,000 barrels (42,000
gallons) were predicted over a 25 to 30-year production life of the sale
area, including both platform and transportation -related spills. In making
this prediction, the BLM considered Gulf of Mexico OCS experience with
pipeline leaks and breaks, blowouts, fires and explosions, storm damage,
and ship -platform collisions. Probabilities that one or more such spills
will reach the Brunswick County coastline are summarized on the following
page.
Percent Probability
Source of Spill 3 days 10 days 30 days
Platform 0 0
Transportation Route
All
4
Note: Percentages are for highest probability tract areas and
transportation routes.
The only clusters of tracts for which a probability of platform spills
reaching the Brunswick County coastline was determined, however, are those
within which no bids were made during the initial sale. Greater probabil-
ities were associated with transportation -related spills, but the concel-
lation of.BECO refinery plans lessens the significance of Wilmington as a
crude oil receiving port, either by ship or pipeline.
-36-
IMPACT OF POTENTIAL SPILLS
Information thus far presented in this Section points to very low probabili-
ties of the 'occurrence of damaging oil spills. Yet the history of the past
10-15 years has shown that oil spills of major proportions can occur at any-
time, anywhere -- occasionally with catastrophic effects. Vivid recent ex-
amples of unpredictible spills of unprecedented size include the Amoco Cadiz
tanker spill in 1978, which affected 135 miles of French coastline, and the
IXTOC-I offshore platform blowout in 1979, which impacted hundreds of miles
of Mexican and Texas coastline. These incidents involved spills of approxi-
mately 65 million and 130 million gallons of crude oil.
The environmental effects of oil spills on marine plant and animal life
have been subjects of a great many research efforts, most precipitated by
major oil spills in the U.S. and abroad. Even so, actual cause -effect re-
lationships have not been thoroughly researched or conclusively shown, because
of the limited number of major incidents and great variability in their
characteristics.
Significantly less is known about economic impacts, as research has focused
almost entirely on environmental effects. Measurement of tangible impacts,
in most areas, is precluded by an absence of appropriate data on ecomomic
conditions before and after a spill. Moreover, there is very little research,
if any, on the effects of a spill incident on the perceptions and resultant
travel behavior of potential visitors to an affected area. Therefore, effects
on local coastal resources and economic activities are discussed in quali-
tative terms.
Coastal areas are vulnerable to two types of spills:
e Acute - Spills of large size which occur rarely, but can be devas-
tating to coastal marine life, recreational resources, and economic
activities.
• Chronic - Small spills which occur frequently and which are individ-
ually minor and manageable, but can cause environmental and economic
damage after repeated incidents.
Acute oil spills draw regional, national, or world attention when they occur,
and normally attract large-scale commitments of financial and human resources
for containment and cleanup operations. Chronic spills, however, can be
more insidious, since their recurrence over time tends to degrade the amen-
ities and alter perceptions of the affected area. in most cases, areas
jeapordized or impacted by acute spills return to normal in a relatively
short time, with the knowledge that such spills are rare and unlikely to
recur.
-37-
Vessel -Related Oil Spill Scenarios
A number of oil spill impact scenarios were defined in the BECO oil spill
impact study in terms of the cause, location, size, and duration of spills
of different materials. These scenarios cover a range of possibilities
and impacts, including crude and product tanker groundings on Frying Pan
Shoals and groundings and collisions at several locations in the Cape Fear
River.
Spills from vessels running aground on Frying Pan Shoals were shown to stay
at sea, moving off to the northeast or southwest with prevailing winds.
Nearby coastal areas would not be impacted. Despite a greater probability
of accident -caused spills occurring during times when wind and sea conditions
are not prevailing (i.e., typical), the BECO study conclusion is considered
reasonable for the Brunswick County coastline. Winds and ocean current data
suggest an extremely low probability of an alignment of environmental con-
ditions which would push spills occurring on Frying Pan Shoals in a north-
westerly direction towards Brunswick County beaches. Instead, such spills
appear to pose a much greater threat to beaches in New Hanover County and
areas farther north. Brunwick County beaches, on the other hand, appear to
be more threatened by potential splllg south of the Cape Fear arch.
Spills occurring in the Cape Fear River would affect different portions of
the estuary, depending on location, size, material spilled, and tidal direc-
tion. Analyses were made by BECO for spills of crude oil, light distillate,
and gasoline averaging in the order of 5,000 barrels, (over 200,000 gallons).
Spills occurring farther upriver would have a progressively smaller impact
on the coastal area. The Southport waterfront, a portion of the Caswell
Beach oceanfront, and the west -facing beach on Bald Head Island would be
impacted by lower estuary spills. Nearby tidal marshes would also be affect-
ed.
Potential Impacts on Economic Activities and Recreation
Commercial Fishing. Fishermen may be particularly hard hit by a major
spill in coastal waters because of local dependency on species most vulner-
able to impacts --shellfish. Not only are reductions of catch possible,
but affected fish and shellfish may become tainted and lose market value.
Moreover, trawls, nets, and other fishing gear can become oiled and rendered
temporarily or permanently useless.
Many dealers and packing and processing plants, would be able to continue
operations by obtaining catch from areas unaffected by spills. Local res-
taurants should be relatively unaffected by reductions in or damages to
local fisheries, since they too are able to obtain supplies from other areas.
Recreational Fishing and Boating. Pier and surf fishing dominate recre-
ational fishing in the County. A beach spill during the season can have
a significant temporary impact on these activities by driving fish away
-38-
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PREVAILING WIND AND OCEAN CURRENTS
COASTAL ENERGY IMPACT STUDY
BRUNSWICK COUNTY,NORTH CAROLINA Miles I fV
0 1 2 3 4 5
KENNETH CREVELING ASSOCIATES
040" SPIbW ►w
Swq: fttM l oe..,re ow A-e AdoArrmUM ,Ob Allet
from the affected area, fouling lines and nets, and creating generally un-
pleasant conditions. More long-lasting effects can occur depending on the
extent to which fish are kept away by oil mixed with subtidal sands and
clinging to pier pilings.
Ocean spills should not significantly affect boating and deep sea fishing,
which could avoid impacted waters. This includes charter and head boats
and other offshore fishermen using private boats. On the other hand, a
spill in inside waters could have significant adverse and long-lasting im-
pacts on boating. Unless contained or diverted, oil could find its way
into marinas, launch areas, and residential lagoons. This would limit
access, stain boats, and inhibit boating and boat -related fishing.
Seasonal Visitation. Beaches are the principal attractions for visitors
to the County s coastal area. Regardless of actual spill conditions,
potential visitors may cancel travel plans, rather than face an uncertain
trip and vacation. Similarly, trips and vacations may be cut short if
spills occur when visitors are in the area. However, the extent and dur-
ation of visitor loss is dependent on so many variables as to defy esti-
mation beforehand.
With the probability of major spills"being greater during winter months,
incidents are least likely during the main tourist seasons in most beach -
oriented areas of the Atlantic coast. Beach spills occurring during
winter months generally will be gone by the summer tourist season. How-
ever, a large winter spill may give pause to those planning summer
vacations in areas such as Brunswick County, where seasonal cottage and
apartment rentals tend to be made months in advance. This points to the
need to counter any adverse publicity, so that conditions which may in
fact be localized or temporary are not perceived by potential visitors
as widespread and long-lasting.
Coastal Businesses. Businesses most dependent on seasonal visitors, such
as motels, campgrounds, and fishing piers, are those most susceptible to
economic loss from oil spills. Moreover, many seasonally -oriented busi-
nesses are marginal, and a significant loss of patronage could result in
some failures and closures.
Investment and Construction. Investment in new retirement and seasonal
housing and the related construction trades are less likely to to impacted
by a single acute oil spill than by a succession of smaller incidents, which
tend to degrade coastal amenities over a long period of time. However,
without major increa-ses in vessel traffic and offshore drilling in the Cape
Fear area relative to competitive coastal recreation/tourist areas, long
term impacts from chronic spills are not significant concerns.
-40-
RECOMMENDATIONS
Recommendations from this study are concentrated in two areas, as follows:
• Additional data and research needed to improve abilities to measure
and assess economic impacts of potential oil spills.
• Local contingency planning to supplement Federal and state respon-
sibilities in oil spill containment and cleanup.
DATA AND RESEARCH NEEDS
Oil spill impact prediction and assessment can benefit from additional or
improved data sources and research in the following key areas:
• Perceptions and behavior of user groups, such as seasonal home
buyers and tourists, with respect to coastal recreation areas
affected by acute and chronic spills.
• Comprehensive baseline economic data for such areas, from which
measurements and assessments of impacts can be made after spills
take place.
• Measurements and assessments of the extent, duration, and types of
changes in economic activities which have occurred over time after
actual major oil spills and, in the case of.chronic spills, after
repeated incidents.
.Only until sufficient research fingings and data are available are correla-
tions between oil spill circumstances and characteristics and user behavior
and economic impacts likely to become more apparent, predictable, and quan-
tifiable than at present. This Brunswick County study has some major limi-
tations in this regard. Principal benefits, however, are: (1) the develop-
ment of profiles of important local economic activities in the coastal area
from which impacts of potential future oil spills can be more easily mea-
sured and assessed; and (2) the provision of information to aid state and
local officials in the establishment of policies and priorities for coastal
and offshore development and oil spill management.
Since oil spills can impact any section of the North Carolina coastline,
responsible state agencies should initiate or sponsor basic research on
coastal economic activities and user groups to the degree not possible in
this study. Specific needs include those outlined below.
Economic Activities
Additional surveys and assessments of the following economic activities and
businesses are recommended:
-41-
• Commercial fishing --numbers of fishermen, dependency on local
fisheries and on fishing, income characteristics.
• Commercial fishing -oriented businesses, such as retail outlets,
wholesalers, and packing and processing plants --linkages to local
fishermen and catch, distribution channels, revenues and operations,
payrolls and employment.
• Boating -oriented businesses, such as marinas, marine sales firms,
and boat builders --dependency on residents and non-residents,
revenues and operations, payrolls and employment.
• Amusements and recreation services, such as fishing piers, charter/
head boat services, and golf courses --usage, dependency on non-
residents, revenues, and operations, payrolls and employment.
User Groups
Basic surveys and assessments of the following user groups are recommended:
Coastal tourists and vacationers, such as day visitors, cottage/
apartment renters, and motel/campground users --type and amount of
local expenditures, origin, party size, reactions to oil spills.
a Non-resident owners of properties and second homes --home origin,
usage (by owners, guests, and renters), costs of operation, income
(from rentals), local spending for household -related goods and
services, reasons for ownership (e.g., income, investment, retire-
ment, etc.), reactions to oil spills.
Recreational fishermen --mode of fishing, origin, expenditures,
reaction to oil spills.
Expenditure data would permit verification, modification, and expension of
assumptions used in this study. Information on visitor origin would aid in
assessing the competitive positions of various coastal sections and in tar-
geting promotional efforts aimed at overcoming adverse publicity. And, in-
formation on the probable reactions by visitors and non-resident owners to
oil spills would greatly improve abilities to estimate potential economic
losses.
CONTINGENCY PLANNING
Planning in anticipation of an oil spill is the key to maximizing contain-
ment and cleanup operations and minimizing adverse impacts if and when a
spill occurs. Federal regulations give the U.S.Coast Guard and the U.S.
Environmental Protection Agency national responsibilities in oil spill pre-
vention and management. In -each of several regions, a designated On -Scene
-42-
Coordinator is responsible for coordinating and documenting all activities
and circumstances related to oil spills. The ranking officer of the.U.S.
Coast Guard office in Wilmington is the On -Scene Coordinator for oil spills
affecting the Brunswick County coastal area. State activities in oil spill
management are the responsibility of the Department of Natural Resources
and Community Development (NRCD), which works closely with Federal officials.
In general, the discharger has primary responsibility and legal liability
for an accidental or intentional discharge of oil in coastal waters. The
major roles of Federal and state governments are to identify the discharger,
supervise cleanup operations, and to assume control of cleanup where the
discharger or spill source is unknown. The State of North Carolina does
not have physical response capability and relies on the Federal On -Scene
Coordinator to mobilize equipment and personnel needed.
Local Contingency Planning
Although responsibility rests primarily with higher levels of government
local governments can make a significant contribution to the total response
effort in the first few hours after a spill, as it may take several hours
for Federal and state governments to organize and mobilize on -scene activi-
ties. In many instances, if a county or town government had the capability
to deal with a spill situation, it could provide a first line of defense
in protecting sensitive resources from a spill.
Contingency planning by or on behalf of Brunswick County and its constituent
municipalities should accomplish the following:
• Establish procedures for reporting and responding to spills.
• Assign and train designated local personnel.
• Inventory available containment and cleanup equipment and purchase
supplemental equipment as needed.
Establish policies and priorities for use of local personnel and
equipment until responsible Federal and state authorities are on
the scene.
• Identify proper containment and cleanup techniques and procedures
to be used in relation to the resource threatened or impacted and
the material spilled.
9 Determine local sites or facilities for the disposal of captured
oil and sand/oil mixtures.
In the case of offshore spills, there is general agreement among contingency
planners that tidal inlets should have priority for protection over beaches,
to safeguard marshes and important or fragile fishery nursery and harvest
-43-
areas. Recognizing the difficulty in protecting miles of beachfront against
oil spills driven by winds and waves, contingency planning for beach spills
should focus instead on cleanup.
For spills in or threatening estuaries and other inside waters, priorities
must be established between and among natural resources and man-made features,
such as marinas and residential lagoons, where personnel and equipment are
limited and more than one resource or feature is threatened.
It is recommended that an oil spill contingency plan for Brunswick County
be developed with assistance from the NRCD in the following four phases:
Phase 1. This phase would involve the assembly of local information
needed to plan a spill response. An inventory of equipment and support
services readily available for use should be prepared. Maps identifying
vulnerable resources and features should be compiled to guide deploy-
ment of personnel and equipment. Note: Much of this information is
already available; some has been compiled in this study.
Phase 2. Next, a local response organization and procedural format
should be developed and local response teams designated, using local
police, fire, and civil defense personnel as the base. The nature and
responsibilities of local response personnel and procedures should be
defined in relation to Federal and state responsibilities. Emergency
service numbers should be established to facilitate local reporting of
oil slicks and other evidence of spills.
Phase 3. This third phase would identify techniques and detail proce-
ures for local involvement in containment and cleanup operations.
Note: A review or applicable techniques and procedures is included in
this study.
Phase 4. Under this last phase of the plan, local response teams would
Fe trained in the handling of oil and associated materials in various
stages of containment and cleanup. Each team should also be equipped
with communications gear, truck, boat, boom, and sorbent materials, to
the extent that such equipment is not readily available.
The contingency plan should place emphasis on having equipment and capacity
on hand -to contain spills occurring in or reaching the inlets, estuaries,
and Intracoastal Waterway, until such time as Federal and state authorities
can reach the scene and take over operations. Removal and disposal of oily
material resulting from beach spills should also be addressed in the plan.
The need for such a plan in Brunswick County is not a major priority at the
present time. If and when offshore oil lease areas show evidence of commer-
cial yields or plans for a new Cape Fear River refinery re-emerge, however,
the need for contingency planning at the local level will become much more
apparent.
-44-
Overcoming Adverse Publicity
In coastal areas affected by major spills, adverse publicity can sometimes
be more damaging than spills themselves. This may be particularly true for
the North Carolina coast, where most beach communities are oriented to fam-
ily vacations and plans to visit are made well in advance. Word of a large
spill, whether or not actual damage was severe or long-lasting, may cause
some families to cancel reservations and vacation elsewhere or reduce their
stay in the affected area. Those who visit Brunswick County travel consi-
derable distances. Many are also repeat visitors who might shift their
travel habits and loyalties to other coastal areas offering similar, but
spill -free, amenities.
Actions to overcome adverse publicity fall mainly on the private sector --
chambers of commerce, rental agents, and operators of local facilities.
If certain beaches are temporarily impacted by spills, other attractions
in the area should be promoted and arrangements made for use of nearby
beaches. In the event of a major spill, the Southport -Oak Island Chamber
of Commerce and the South Brunswick Islands Chamber of Commerce should
initiate and coordinate fact sheets distributed by rental agents, news re-
leases, travel articles, and cooperative arrangements.
The North Carolina Travel and Tourism Division can supplement local efforts
by providing information through its media and distribution channels, as
well as providing emergency funds needed for stepped -up promotion at the
local level.
Oil Spill Notification Directory
To initiate response to an oil spill situation, one of two numbers may be
called by local officials and citizens in the following order:
PRIORITY 1 CALL: U. S. Coast Guard (USCG)
Captain of the Port -Wilmington (COTP)
USCG COTP - Wilmington
919/343-4881
PRIORITY 2 CALL: If the above number cannot be reached, then the
following number should be called:
U. S. Coast Guard National Response Center
1-800/424-8802
Spill sighting may also be reported to the Wilmington office of the N. C.
Department of Natural Resources and Community Development (NRCD):
919/762-3394.
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Residents and businesses may also call the following local numbers, to
trigger response actions by local governmental officials. Upon receiving
such calls from local residents, responsible officials should also im-
mediately notify the Coast Guard and NRCD.
Telephone Number
Location
to Call
Party Called
Southport
457-5211
Fire and police dis-
patcher
Caswell Beach
278-5472
Oak Island fire/rescue
253-4321
County Sheriff
Yaupon Beach
278-5472
Oak Island fire/rescue
278-5230
Town police
Long Beach
278-5472
Oak Island fire/rescue
278-5595
Town police
Holden Beach
842-6868
Tri-Beach fire reporting
842-6707
Town police
253-4321
County Sheriff
Ocean Isle Beach
579-2345
Fire reporting
579-2166
Town police
253-4321
County Sheriff
Sunset Beach
579-6949
Fire reporting
253-4321
County Sheriff
Calabash
579-2123
Fire reporting
All Areas
253-4376
County Civil Preparedness
253-4321
County Sheriff
When notifying Federal, state, and local officials of a spill or potential
spi11, the following information should be provided as completely as
possible:
• Date and time of spill or sighting.
• Precise location.
• Type of material involved (if known).
• Quantity observed or discharged (large, small, etc.).
• Reason for and source of spill (if known).
• Proximity of spilled material to vulnerable resources/features.
• Actions (if any) being taken at the scene to contain/remove the
material.
is Your name and telephone number in case further information is
necessary.
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CEIP Publications
1. Hauser, E. W., P. D. Cribbins, P. D. Tschetter, and R. D. Latta.
Coastal Energy Transportation Needs to Support Major Energy Projects
in North Carolina's Coastal Zone. CEIP Report #1. September 1981. $10.
2. P. D. Cribbins. A Study of OCS Onshore Support Bases and Coal Export
Terminals. CEIP Report #2. September 1981. $10.
3. Tschetter, P. D., M. Fisch, and R. D. Latta. An Assessment of
Potential Impacts of Energy -Related Transportation Developments on
North Carolina's Coastal Zone. CEIP Report #3. July 1981. $10.
4. Cribbins, P. S. An Analysis of State and Federal Policies Affecting
Major Energy Projects in North Carolina's Coastal Zone. CEIP Report
#4. September 1981. $10.
5. Brower, David, W. D. McElyea, D. R. Godschalk, and N. D. Lofaro.
Outer Continental Shelf Development and the North Carolina Coast:
A Guide for Local Planners. CEIP Report #5. August 1981. $10.
6. Rogers, Golden and Halpern, Inc., and Engineers for Energy and the
Environment, Inc. Mitigating the Impacts of Energy Facilities: A
Local Air Quality Program for the Wilmington, N. C. Area. CEIP
Report #6. September 1981. $10.
7. Richardson, C. J. (editor). Pocosin Wetlands: an Integrated Analysis
of Coastal Plain Freshwater Bogs in North Carolina. Stroudsburg (Pa):
Hutchinson Ross. 364 pp. $25. Available from School of Forestry,
Duke University, Durham, N. C. 27709. (This proceedings volume is for
a conference partially funded by N. C. CEIP. It replaces the N. C.
Peat Sourcebook in this publication list.)
8. McDonald, C. B. and A. M. Ash.. Natural Areas Inventory of Tyrrell
County, N. C. CEIP Report #8. October 1981. $10.
9. Fussell, J., and E. J. Wilson. Natural Areas Inventory of Carteret
County, N. C. CEIP Report #9. October 1981. $10.
10. Nyfong, T. D. Natural Areas Inventory of Brunswick County, N. C.
CEIP Report #10. October 1981. $10.
11. Leonard, S. W., and R. J. Davis. Natural Areas Inventory for'Pender
County, N. C. CEIP Report #11. October 1981. $10.
12. Cribbins, Paul D., and Latta, R. Daniel. Coastal Energy Transporta-
tion Study: Alternative Technologies for Transporting and Handling
Export Coal. CEIP Report #12. January 1982. $10.
13. Creveling, Kenneth. Beach Communities and Oil Spills: Environmental
and Economic Consequences for Brunswick County, N. C. CEIP Report
#13. May 1982. $10.
CEIP Publications
14. Rogers, Golden and Halpern, Inc., and Engineers for Energy and the
Environment. The Design of a Planning Program to Help Mitigate Energy
Facility -Related Air Quality Impacts in the Washington County, North
Carolina Area. CEIP Report #14. September 1982. $10.
15. Fussell, J., C. B. McDonald, and A. M. Ash. Natural Areas Inventory
of Craven County, North Carolina. CEIP Report #15. October 1982.
$10.
16. Frost, Cecil C. Natural Areas Inventory of Gates County, North
Carolina. CEIP Report #16. April 1982. $10.
17. Stone, John R., Michael T. Stanley, and Paul T. Tschetter. Coastal
Energy Transportation Study, Phase III, Volume 3: Impacts of Increased
Rail Traffic on Communities in Eastern North Carolina. CEIP Report #17.
August 1982. $10.
19. Pate, Preston P., and Jones, Robert. Effects of Upland Drainage on
Estuarine Nursery Areas of Pamlico Sound, North Carolina. CEIP
Report #19. December 1981. $1.00.
25. Wang Engineering Co., Inc. Analysis of the Impact of Coal Trains
Moving Through Morehead City, North Carolina. CEIP Report #25.
October 1982. $10.
26. Anderson & Associates, Inc. Coal Train Movements Through the City of
Wilmington, North Carolina. CEIP Report #26. October 1982. $10.
27. Peacock, S. Lance and J. Merrill Lynch. Natural Areas Inventory of
Mainland Dare County, North Carolina. CEIP Report #27. November 1982.
$10.
28. Lynch, J. Merrill and S. Lance Peacock. Natural Areas Inventory of
Hyde County, North Carolina. CEIP Report #28. October 1982. $10.
29. Peacock, S. Lance and J. Merrill Lynch. Natural Areas Inventory of
Pamlico County, North Carolina. CEIP Report #29. November 1982. $10.
30. Lynch, J. Merrill and S, Lance Peacock. Natural Areas Inventory of
Washington County, North Carolina. CEIP Report #30. October 1982.
$10.
31. Muga, Bruce J. Review and Evaluation of Oil Spill Models for Applica-
tion to North Carolina Waters. CEIP Report #31. August 1982. $10.
33. Sorrell, F. Yates and Richard R. Johnson. Oil and Gas Pipelines in
Coastal North Carolina: Impacts and Routing Considerations. CEIP
Report #33. December 1982. $10.
34. Roberts and Eichler Associates, Inc. Area Development Plan for Radio
Island. CEIP Report #34. June 1983. $10.
35. Cribbins, Paul D. Coastal Energy Transportation Study, Phase III,
Volume 4: The Potential for Wide -Beam, Shallow -Draft Ships to Serve
Coal and Other Bulk Commodity Terminals along the Cape Fear River.
CEIP Report #35. August 1982. $10.