Jordan Cove Energy Project, L.P.; Application for Long-Term Authorization to Export Liquefied Natural Gas Produced From Domestic and Canadian Natural Gas Resources to Non-Free Trade Agreement Countries for a 25-Year Period, 33446-33449 [2012-13679]
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Federal Register / Vol. 77, No. 109 / Wednesday, June 6, 2012 / Notices
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[FR Doc. 2012–13660 Filed 6–5–12; 8:45 am]
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DEPARTMENT OF ENERGY
[FE Docket No. 12–32–LNG]
Jordan Cove Energy Project, L.P.;
Application for Long-Term
Authorization to Export Liquefied
Natural Gas Produced From Domestic
and Canadian Natural Gas Resources
to Non-Free Trade Agreement
Countries for a 25-Year Period
Office of Fossil Energy, DOE.
Notice of application.
AGENCY:
ACTION:
The Office of Fossil Energy
(FE) of the Department of Energy (DOE)
gives notice of receipt of an application
(Application), filed on March 23, 2012,
by Jordan Cove Energy Project, L.P.
(Jordan Cove), requesting long-term,
multi-contract authorization to export as
liquefied natural gas (LNG) both natural
gas produced domestically in the United
States and natural gas produced in
Canada and imported into the United
States, in an amount up to the
equivalent of 292 billion cubic feet (Bcf)
of natural gas per year, 0.8 Bcf per day
(Bcf/d), over a 25-year period,
commencing on the earlier of the date
of first export or seven years from the
date the requested authorization is
granted. The LNG would be exported
from the proposed LNG terminal to be
located on the North Spit of Coos Bay
in Coos County, Oregon, to any country
(1) with which the United States does
not have a free trade agreement (FTA)
requiring national treatment for trade in
natural gas, (2) which has developed or
in the future develops the capacity to
import LNG via ocean-going carrier, and
(3) with which trade is not prohibited
by U.S. law or policy. Jordan Cove is
requesting this authorization to export
LNG both on its own behalf and as agent
for other parties who hold title to the
LNG at the point of export. The
Application was filed under section 3 of
the Natural Gas Act (NGA). Protests,
motions to intervene, notices of
intervention, and written comments are
invited.
DATES: Protests, motions to intervene or
notices of intervention, as applicable,
requests for additional procedures, and
written comments are to be filed using
procedures detailed in the Public
Comment Procedures section no later
than 4:30 p.m., eastern time, August 6,
2012.
ADDRESSES:
Electronic Filing on the Federal
eRulemaking Portal under FE Docket
No. 12–32–LNG: https://
www.regulations.gov.
Electronic Filing by email:
fergas@hq.doe.gov.
SUMMARY:
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Federal Register / Vol. 77, No. 109 / Wednesday, June 6, 2012 / Notices
Regular Mail: U.S. Department of
Energy (FE–34), Office of Natural Gas
Regulatory Activities, Office of Fossil
Energy, P.O. Box 44375, Washington,
DC 20026–4375.
Hand Delivery or Private Delivery
Services (e.g., FedEx, UPS, etc.): U.S.
Department of Energy (FE–34), Office of
Natural Gas Regulatory Activities, Office
of Fossil Energy, Forrestal Building,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT:
Larine Moore or Marc Talbert, U.S.
Department of Energy (FE–34), Office of
Natural Gas Regulatory Activities, Office
of Fossil Energy, Forrestal Building,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585,
(202) 586–9478; (202) 586–7991.
Edward Myers, U.S. Department of
Energy, Office of the Assistant General
Counsel for Electricity and Fossil
Energy, Forrestal Building, Room 6B–
256, 1000 Independence Ave. SW.,
Washington, DC 20585, (202) 586–3397.
SUPPLEMENTARY INFORMATION:
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Background
Jordan Cove is a Delaware limited
partnership with its principal place of
business in Coos Bay, Oregon. The
general partner of Jordan Cove is Jordan
Cove Energy Project L.L.C., a Delaware
limited liability company. Both Jordan
Cove and its general partner are owned
by the two limited partners in Jordan
Cove. The first, Fort Chicago LNG II
U.S.L.P., a Delaware limited partnership
owns seventy-five percent. It is wholly
owned and controlled, through a
number of intermediate wholly owned
and controlled companies, by Veresen,
Inc., a Canadian corporation based in
Calgary, Alberta, which, prior to its
organization as a corporation, was Fort
Chicago Energy Partners L.P., a
Canadian limited partnership (although
the name of the parent changed, the
name of the subsidiary owning Jordan
Cove did not). The second, Energy
Projects Development L.L.C., a Colorado
limited liability company, owns twentyfive percent. It is owned by various
private individuals, all of whom are
U.S. citizens.
Jordan Cove states that its
construction and operation of an LNG
terminal in Coos Bay, Oregon has
already been authorized by the Federal
Energy Regulatory Commission (FERC)
as an import facility.1 Jordan Cove states
that it has developed modified plans for
1 Pacific Connector Gas Pipeline, LP; Jordan Cove,
129 FERC ¶ 61,234 (December 17, 2009) (FERC
Order). Rehearing requests of the FERC Order was
pending before FERC at the time of the Application
submission to DOE/FE.
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the terminal to operate as an export
facility. The terminal facilities
authorized by the FERC Order that will
be used for exports include two 160
cubic meter LNG full-containment
storage tanks, a single marine berth, and
on-site utilities and services. The
modified plans include large diameter
LNG piping configured for exports and
electrically driven liquefaction
equipment. On February 29, 2012,
Jordan Cove filed a request for FERC’s
Office of Energy Projects to commence
the mandatory National Environmental
Policy Act (NEPA) pre-filing review
process for an application to amend its
FERC authorization to add export
facilities, which was docketed in FERC
Docket No. PF12–7–000 and approved
by letter dated March 6, 2012. Jordan
Cove anticipates completing the prefiling review process and filing its
application to amend in October, 2012.
Jordan Cove states that provided that
FERC authorizes the export facilities by
the end of 2013, Jordan Cove would be
able to complete construction and
commence export service in the fourth
quarter of 2017. Jordan Cove further
states that this service would offer
benefits unique to the Jordan Cove
terminal, because it is the only currently
proposed liquefaction and export
project that will provide customers the
opportunity to export LNG from the U.S.
West Coast with natural gas likely to be
sources from Canadian and the U.S.
Rocky Mountain supply basins.
Current Application
In the instant application, Jordan
Cove seeks long-term, multi-contract
authorization to export as LNG both
natural gas produced domestically in
the United States and natural gas
produced in Canada and imported into
the United States, up to the equivalent
of 292 Bcf of natural gas per year, 0.8
Bcf/d, for a period of 25 years beginning
on the earlier of the date of first export
or seven years from the date the
authorization is granted by DOE/FE.
Jordan Cove requests that such longterm authorization provide for export
from its LNG terminal to be located on
the North Spit of Coos Bay in Coos
County, Oregon to any country with
which the United States does not have
an FTA requiring national treatment for
trade in natural gas, which has
developed or in the future develops the
capacity to import LNG via ocean-going
carrier, and with which trade is not
prohibited by U.S. law or policy.
Jordan Cove states that rather than
enter into long-term natural gas supply
or LNG export contracts, it contemplates
that its business model will be based
primarily on Liquefaction Tolling
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Agreements (LTA), under which
individual customers who hold title to
natural gas will have the right to deliver
that gas to the Jordan Cove terminal for
liquefaction services and to receive LNG
in exchange for a processing fee paid to
Jordan Cove.2
Jordan Cove requests long-term,
multi-contract authorization to engage
in exports of LNG on behalf of or as
agent for others, as well as on its own
behalf. Jordan Cove states that the title
holder at the point of export, if not
Jordan Cove, may be an LTA customer
or a party that purchases LNG from an
LTA customer pursuant to a long-term
contract. Jordan Cove will file, or cause
others to file, under seal, executed
contracts associated with the long-term
supply of natural gas to, or the longterm export of LNG from, the Jordan
Cove terminal, including LTAs, within
30 days of their execution.3 Jordan Cove
states that Jordan Cove’s terminal, via
the Pacific Connector Gas Pipeline
(PCGP),4 will be connected to the
Northwest United States market hub at
Malin, Oregon, providing access to
abundant and diverse gas supplies in
both the United States and Canada. At
the Malin hub, PCGP will interconnect
with Gas Transmission Northwest
Pipeline, delivering gas from western
Canada, and via its Stanfield
interconnection with Northwest
Pipeline, delivering gas from the U.S.
Rockies; Ruby Pipeline, delivering gas
from western Wyoming, northwestern
Colorado and northern Utah; and, PG&E
Redwood Path, serving northern
California.
Public Interest Considerations
In support of its Application, Jordan
Cove states that in DOE/FE Order No.
2961 (Sabine Pass Liquefaction, LLC) 5
authorizing LNG exports to non-FTA
nations, DOE/FE acknowledged its
longstanding position that ‘‘Section 3(a)
creates a rebuttable presumption that a
proposed export of natural gas is in the
2 Jordan Cove states that under the LTA business
model, the decision whether to utilize liquefaction
capacity will be made by the LTA customer: If the
marginal cost of producing or purchasing natural
gas, liquefying it, and transporting the resulting
LNG to a destination market is higher than other
competing source of supply in any month, the LTA
customer may forego its nomination rights for that
month.
3 Jordan Cove states that when any such
agreement is executed, and the transaction specific
information required under 10 CFR 590.202(b)
becomes available, Jordan Cove will comply with
that provision.
4 Jordan Cove states that PCGP is a new interstate
natural gas pipeline also certificated by the FERC
Order (PCGP, together with the Jordan Cove
terminal, the Jordan Cove Project).
5 Sabine Pass Liquefaction, LLC, DOE/FE Order
No. 2961, FE Docket No. 10–111–LNG (May 20,
2011).
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public interest, and DOE must grant
such an application unless those who
oppose the application overcome that
presumption ‘‘by making an affirmative
showing of inconsistency with the
public interest.’’ 6
Jordan Cove states that the LNG
export authorization will serve the
public interest in multiple ways. It will
permit exports when competitive and
otherwise promote healthy domestic
and international natural gas markets.
Jordan Cove states that the exports will
not pose any threat to the security of
domestic natural gas supplies, but to the
contrary, they will result in significant
economic benefits. Jordan Cove states
that the demand created by the exports
will stimulate increased revenues and
jobs in upstream industries, which in
turn will benefit the overall U.S.
economy. Jordan Cove states that the
construction and operation of the Jordan
Cove Project will also create jobs and
produce revenues to the benefit of the
local and regional economies. Jordan
Cove states that exports will have
positive international trade impacts for
the United States. In sum, Jordan Cove
states that the Jordan Cove Project’s
economic benefits advance the
Administration’s efforts to expand
exports, create jobs, and otherwise
stimulate the beleaguered U.S.
economy.
Jordan Cove commissioned
independent experts to conduct studies
and prepare the following reports that
Jordan Cove claims demonstrate these
public interest impacts:
1. Jordan Cove LNG Export Project
Market Analysis Study, January 2012 by
Navigant Consulting, Inc. (Navigant)
analyzing gas supply and demand
outlooks and modeling potential price
effects of the proposed exports for the
North American natural gas market to
2045 (Navigant Study).
2. Whitepaper: Analysis of the EIA
Export Report ‘Effect of Increased
Natural Gas Exports on Domestic
Energy Markets’ Dated January 19, 2012,
February 2012 by Navigant commenting
on the EIA Report 7 (Navigant
Whitepaper).
3. An Economic Impact Analysis of
the Construction of an LNG Terminal
and Natural Gas Pipeline in Oregon,
6 Id. at 28 and n. 38, citing Phillips Alaska Natural
Gas Corporation and Marathon Oil Company, 2 FE
¶ 70,317 (1999) (Phillips Order).
7 In January 2012, the U.S. Energy Information
Administration (EIA) released Effect of Increased
Natural Gas Exports on Domestic Energy Markets
(EIA Report), a case study, prepared at the request
of DOE/FE, evaluating the impact of increased
natural gas demand reflecting exports of LNG on
domestic energy consumption, production and
demand under four scenarios. The EIA Report is
addressed infra at 16–18.
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March 6, 2012 by ECONorthwest
examining impacts on the states of
Oregon and Washington of the
construction of the Jordan Cove Project
(Construction Study).
4. An Economic Impact Analysis of
Jordan Cove LNG Terminal and Pacific
Connector Gas Pipeline Operations,
March 23, 2012 by ECONorthwest
examining impacts on the local
communities of the operations of the
Jordan Cove Project (Operations Study).
5. Upstream Economic Contributions
of the Jordan Cove Energy Project,
February 29, 2012 by ECONorthwest
quantifying direct and indirect
contributions of the Jordan Cove Project
to the United States economy (Upstream
Contributions Study).
6. Effect of the Jordan Cove Energy
Project’s LNG Exports on United States
Balance of Trade, March 20, 2012 by
ECONorthwest analyzing the impact of
the Jordan Cove Project on the nation’s
balance of trade (Balance of Trade
Study).
Copies of the complete reports are
appended to Jordan Cove’s application.
Jordan Cove provides further discussion
on their views that the proposed export
authorization is in the public interest,
discussed briefly below.
(1) Jordan Cove Exports Will Benefit
Natural Gas Markets—Jordan Cove
claims: (a) That natural gas supply is
more than adequate to serve the
projected domestic demand and
proposed LNG exports; (b) that the effect
of Jordan Cove exports on natural gas
prices is minimal; and (c) that LNG
exports will strengthen the U.S. natural
gas market.
(2) Jordan Cove Exports Will Cause
Economic Benefits—Jordan Cove claims:
(a) That construction of the Jordan Cove
Project will benefit the regional
economy; (b) that operation of the
Jordan Cove Project will benefit the
local economy; (c) that exports from
Jordan Cove will foster upstream
industry growth and stimulate the U.S.
economy; (d) that Jordan Cove exports
will provide trade benefits; and (e) that
Jordan Cove exports will provide
additional international benefits.
(3) Jordan Cove claims that exports
will offer unique advantages due to its
location.
A more complete discussion of the
above public benefits claimed by Jordan
Cove is highlighted in Jordan Cove’s
application. Based on the reasoning
provided in the Application, Jordan
Cove requests that the DOE/FE
determine that Jordan Cove’s request for
long-term, multi-contract authorization
to export LNG to non-FTA countries
would be consistent with the goal of the
DOE Policy Guidelines to ‘‘minimize
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regulatory impediments to a freely
operating market.’’ 8
Environmental Impact
Jordan Cove states that FERC has
found that the proposed Jordan Cove
LNG import terminal is environmentally
acceptable if constructed and operated
in accordance with the environmental
mitigation measures set forth in the
FERC Order. Jordan Cove also states that
the potential environmental impacts of
the terminal as modified to permit
exports of LNG will be reviewed by
FERC under NEPA when Jordan Cove’s
application to amend its certificate to
authorize liquefaction and export is
filed. Jordan Cove requests that DOE/FE
issue an order authorizing exports of
LNG conditioned upon satisfactory
completion of the environmental review
process by FERC.
DOE/FE Evaluation
The Application will be reviewed
pursuant to section 3 of the NGA, as
amended, and the authority contained
in DOE Delegation Order No. 00–
002.00L (April 29, 2011) and DOE
Redelegation Order No. 00–002.04E
(April 29, 2011). In reviewing this LNG
export Application, DOE will consider
any issues required by law or policy. To
the extent determined to be relevant or
appropriate, these issues will include
the impact of LNG exports associated
with this Application, and the
cumulative impact of any other
application(s) previously approved, on
domestic need for the gas proposed for
export, adequacy of domestic natural
gas supply, U.S. energy security, and
any other issues, including the impact
on the U.S. economy (GDP), consumers,
and industry, job creation, U.S. balance
of trade, international considerations,
and whether the arrangement is
consistent with DOE’s policy of
promoting competition in the
marketplace by allowing commercial
parties to freely negotiate their own
trade arrangements. Parties that may
oppose this Application should
comment in their responses on these
issues, as well as any other issues
deemed relevant to the Application.
NEPA requires DOE to give
appropriate consideration to the
environmental effects of its proposed
decisions. No final decision will be
issued in this proceeding until DOE has
met its NEPA responsibilities.
Due to the complexity of the issues
raised by the Applicants, interested
persons will be provided 60 days from
the date of publication of this Notice in
which to submit comments, protests,
8 DOE
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Policy Guidelines at 6685.
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motions to intervene, notices of
intervention, or motions for additional
procedures.
Public Comment Procedures
In response to this notice, any person
may file a protest, comments, or a
motion to intervene or notice of
intervention, as applicable. Any person
wishing to become a party to the
proceeding must file a motion to
intervene or notice of intervention, as
applicable. The filing of comments or a
protest with respect to the Application
will not serve to make the commenter or
protestant a party to the proceeding,
although protests and comments
received from persons who are not
parties will be considered in
determining the appropriate action to be
taken on the Application. All protests,
comments, motions to intervene or
notices of intervention must meet the
requirements specified by the
regulations in 10 CFR part 590.
Filings may be submitted using one of
the following methods: (1) Submitting
comments in electronic form on the
Federal eRulemaking Portal at https://
www.regulations.gov, by following the
on-line instructions and submitting
such comments under FE Docket No.
12–32–LNG. DOE/FE suggests that
electronic filers carefully review
information provided in their
submissions and include only
information that is intended to be
publicly disclosed; (2) emailing the
filing to fergas@hq.doe.gov with FE
Docket No. 12–32–LNG in the title line;
(3) mailing an original and three paper
copies of the filing to the Office Natural
Gas Regulatory Activities at the address
listed in ADDRESSES; or (4) hand
delivering an original and three paper
copies of the filing to the Office of
Natural Gas Regulatory Activities at the
address listed in ADDRESSES.
A decisional record on the
Application will be developed through
responses to this notice by parties,
including the parties’ written comments
and replies thereto. Additional
procedures will be used as necessary to
achieve a complete understanding of the
facts and issues. A party seeking
intervention may request that additional
procedures be provided, such as
additional written comments, an oral
presentation, a conference, or trial-type
hearing. Any request to file additional
written comments should explain why
they are necessary. Any request for an
oral presentation should identify the
substantial question of fact, law, or
policy at issue, show that it is material
and relevant to a decision in the
proceeding, and demonstrate why an
oral presentation is needed. Any request
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for a conference should demonstrate
why the conference would materially
advance the proceeding. Any request for
a trial-type hearing must show that there
are factual issues genuinely in dispute
that are relevant and material to a
decision and that a trial-type hearing is
necessary for a full and true disclosure
of the facts.
If an additional procedure is
scheduled, notice will be provided to all
parties. If no party requests additional
procedures, a final Opinion and Order
may be issued based on the official
record, including the Application and
responses filed by parties pursuant to
this notice, in accordance with 10 CFR
590.316.
The Application filed by Jordan Cove
is available for inspection and copying
in the Office of Natural Gas Regulatory
Activities docket room, Room 3E–042,
1000 Independence Avenue SW.,
Washington, DC 20585. The docket
room is open between the hours of 8:00
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays. The
Application and any filed protests,
motions to intervene or notice of
interventions, and comments will also
be available electronically by going to
the following DOE/FE Web address:
https://www.fe.doe.gov/programs/
gasregulation/. In addition,
any electronic comments filed will also
be available at: https://
www.regulations.gov.
Issued in Washington, DC, on May 29,
2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities,
Office of Oil and Gas Global Security and
Supply, Office of Fossil Energy.
[FR Doc. 2012–13679 Filed 6–5–12; 8:45 am]
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DEPARTMENT OF ENERGY
DOE/NSF High Energy Physics
Advisory Panel
Office of Science, Department
of Energy.
ACTION: Notice of open meeting.
AGENCY:
This notice announces a
meeting of the DOE/NSF High Energy
Physics Advisory Panel (HEPAP). The
Federal Advisory Committee Act (Pub.
L. 92–463, 86 Stat. 770) requires that
public notice of these meetings be
announced in the Federal Register.
DATES: Monday, August 27, 2012; 9:00
a.m.–6:00 p.m. and Tuesday, August 28,
2012; 9:00 a.m. to 1:00 p.m.
ADDRESSES: Hilton Hotel, 1750
Rockville Pike, Rockville, MD 20852.
SUMMARY:
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John
Kogut, Executive Secretary; High Energy
Physics Advisory Panel; U.S.
Department of Energy; SC–25/
Germantown Building, 1000
Independence Avenue SW.,
Washington, DC 20585–1290;
Telephone: 301–903–1298.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Purpose of Meeting: To provide
advice and guidance on a continuing
basis to the Department of Energy and
the National Science Foundation on
scientific priorities within the field of
high energy physics research.
Tentative Agenda: Agenda will
include discussions of the following:
Monday, August 27, 2012 and Tuesday,
August 28, 2012
• Discussion of Department of Energy
High Energy Physics Program.
• Discussion of National Science
Foundation Elementary Particle Physics
Program.
• Reports on and Discussions of
Topics of General Interest in High
Energy Physics.
• Public Comment (10-minute rule).
Public Participation: The meeting is
open to the public. If you would like to
file a written statement with the
Committee, you may do so either before
or after the meeting. If you would like
to make oral statements regarding any of
these items on the agenda, you should
contact John Kogut by telephone: 301–
903–1298 or email at:
John.Kogut@science.doe.gov. You must
make your request for an oral statement
at least 5 business days before the
meeting. Reasonable provision will be
made to include the scheduled oral
statements on the agenda. The
Chairperson of the Panel will conduct
the meeting to facilitate the orderly
conduct of business. Public comment
will follow the 10-minute rule.
Minutes: The minutes of the meeting
will be available on the High Energy
Physics Advisory Panel’s Web site at:
https://science.energy.gov/hep/hepap/.
LaTanya R. Butler,
Acting Deputy Committee Management
Officer.
[FR Doc. 2012–13674 Filed 6–5–12; 8:45 am]
BILLING CODE 6450–01–P
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 77, Number 109 (Wednesday, June 6, 2012)]
[Notices]
[Pages 33446-33449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13679]
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DEPARTMENT OF ENERGY
[FE Docket No. 12-32-LNG]
Jordan Cove Energy Project, L.P.; Application for Long-Term
Authorization to Export Liquefied Natural Gas Produced From Domestic
and Canadian Natural Gas Resources to Non-Free Trade Agreement
Countries for a 25-Year Period
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of application.
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SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy
(DOE) gives notice of receipt of an application (Application), filed on
March 23, 2012, by Jordan Cove Energy Project, L.P. (Jordan Cove),
requesting long-term, multi-contract authorization to export as
liquefied natural gas (LNG) both natural gas produced domestically in
the United States and natural gas produced in Canada and imported into
the United States, in an amount up to the equivalent of 292 billion
cubic feet (Bcf) of natural gas per year, 0.8 Bcf per day (Bcf/d), over
a 25-year period, commencing on the earlier of the date of first export
or seven years from the date the requested authorization is granted.
The LNG would be exported from the proposed LNG terminal to be located
on the North Spit of Coos Bay in Coos County, Oregon, to any country
(1) with which the United States does not have a free trade agreement
(FTA) requiring national treatment for trade in natural gas, (2) which
has developed or in the future develops the capacity to import LNG via
ocean-going carrier, and (3) with which trade is not prohibited by U.S.
law or policy. Jordan Cove is requesting this authorization to export
LNG both on its own behalf and as agent for other parties who hold
title to the LNG at the point of export. The Application was filed
under section 3 of the Natural Gas Act (NGA). Protests, motions to
intervene, notices of intervention, and written comments are invited.
DATES: Protests, motions to intervene or notices of intervention, as
applicable, requests for additional procedures, and written comments
are to be filed using procedures detailed in the Public Comment
Procedures section no later than 4:30 p.m., eastern time, August 6,
2012.
ADDRESSES:
Electronic Filing on the Federal eRulemaking Portal under FE Docket
No. 12-32-LNG: https://www.regulations.gov.
Electronic Filing by email: fergas@hq.doe.gov.
[[Page 33447]]
Regular Mail: U.S. Department of Energy (FE-34), Office of Natural
Gas Regulatory Activities, Office of Fossil Energy, P.O. Box 44375,
Washington, DC 20026-4375.
Hand Delivery or Private Delivery Services (e.g., FedEx, UPS,
etc.): U.S. Department of Energy (FE-34), Office of Natural Gas
Regulatory Activities, Office of Fossil Energy, Forrestal Building,
Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT:
Larine Moore or Marc Talbert, U.S. Department of Energy (FE-34),
Office of Natural Gas Regulatory Activities, Office of Fossil Energy,
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW.,
Washington, DC 20585, (202) 586-9478; (202) 586-7991.
Edward Myers, U.S. Department of Energy, Office of the Assistant
General Counsel for Electricity and Fossil Energy, Forrestal Building,
Room 6B-256, 1000 Independence Ave. SW., Washington, DC 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
Jordan Cove is a Delaware limited partnership with its principal
place of business in Coos Bay, Oregon. The general partner of Jordan
Cove is Jordan Cove Energy Project L.L.C., a Delaware limited liability
company. Both Jordan Cove and its general partner are owned by the two
limited partners in Jordan Cove. The first, Fort Chicago LNG II
U.S.L.P., a Delaware limited partnership owns seventy-five percent. It
is wholly owned and controlled, through a number of intermediate wholly
owned and controlled companies, by Veresen, Inc., a Canadian
corporation based in Calgary, Alberta, which, prior to its organization
as a corporation, was Fort Chicago Energy Partners L.P., a Canadian
limited partnership (although the name of the parent changed, the name
of the subsidiary owning Jordan Cove did not). The second, Energy
Projects Development L.L.C., a Colorado limited liability company, owns
twenty-five percent. It is owned by various private individuals, all of
whom are U.S. citizens.
Jordan Cove states that its construction and operation of an LNG
terminal in Coos Bay, Oregon has already been authorized by the Federal
Energy Regulatory Commission (FERC) as an import facility.\1\ Jordan
Cove states that it has developed modified plans for the terminal to
operate as an export facility. The terminal facilities authorized by
the FERC Order that will be used for exports include two 160 cubic
meter LNG full-containment storage tanks, a single marine berth, and
on-site utilities and services. The modified plans include large
diameter LNG piping configured for exports and electrically driven
liquefaction equipment. On February 29, 2012, Jordan Cove filed a
request for FERC's Office of Energy Projects to commence the mandatory
National Environmental Policy Act (NEPA) pre-filing review process for
an application to amend its FERC authorization to add export
facilities, which was docketed in FERC Docket No. PF12-7-000 and
approved by letter dated March 6, 2012. Jordan Cove anticipates
completing the pre-filing review process and filing its application to
amend in October, 2012.
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\1\ Pacific Connector Gas Pipeline, LP; Jordan Cove, 129 FERC ]
61,234 (December 17, 2009) (FERC Order). Rehearing requests of the
FERC Order was pending before FERC at the time of the Application
submission to DOE/FE.
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Jordan Cove states that provided that FERC authorizes the export
facilities by the end of 2013, Jordan Cove would be able to complete
construction and commence export service in the fourth quarter of 2017.
Jordan Cove further states that this service would offer benefits
unique to the Jordan Cove terminal, because it is the only currently
proposed liquefaction and export project that will provide customers
the opportunity to export LNG from the U.S. West Coast with natural gas
likely to be sources from Canadian and the U.S. Rocky Mountain supply
basins.
Current Application
In the instant application, Jordan Cove seeks long-term, multi-
contract authorization to export as LNG both natural gas produced
domestically in the United States and natural gas produced in Canada
and imported into the United States, up to the equivalent of 292 Bcf of
natural gas per year, 0.8 Bcf/d, for a period of 25 years beginning on
the earlier of the date of first export or seven years from the date
the authorization is granted by DOE/FE. Jordan Cove requests that such
long-term authorization provide for export from its LNG terminal to be
located on the North Spit of Coos Bay in Coos County, Oregon to any
country with which the United States does not have an FTA requiring
national treatment for trade in natural gas, which has developed or in
the future develops the capacity to import LNG via ocean-going carrier,
and with which trade is not prohibited by U.S. law or policy.
Jordan Cove states that rather than enter into long-term natural
gas supply or LNG export contracts, it contemplates that its business
model will be based primarily on Liquefaction Tolling Agreements (LTA),
under which individual customers who hold title to natural gas will
have the right to deliver that gas to the Jordan Cove terminal for
liquefaction services and to receive LNG in exchange for a processing
fee paid to Jordan Cove.\2\
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\2\ Jordan Cove states that under the LTA business model, the
decision whether to utilize liquefaction capacity will be made by
the LTA customer: If the marginal cost of producing or purchasing
natural gas, liquefying it, and transporting the resulting LNG to a
destination market is higher than other competing source of supply
in any month, the LTA customer may forego its nomination rights for
that month.
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Jordan Cove requests long-term, multi-contract authorization to
engage in exports of LNG on behalf of or as agent for others, as well
as on its own behalf. Jordan Cove states that the title holder at the
point of export, if not Jordan Cove, may be an LTA customer or a party
that purchases LNG from an LTA customer pursuant to a long-term
contract. Jordan Cove will file, or cause others to file, under seal,
executed contracts associated with the long-term supply of natural gas
to, or the long-term export of LNG from, the Jordan Cove terminal,
including LTAs, within 30 days of their execution.\3\ Jordan Cove
states that Jordan Cove's terminal, via the Pacific Connector Gas
Pipeline (PCGP),\4\ will be connected to the Northwest United States
market hub at Malin, Oregon, providing access to abundant and diverse
gas supplies in both the United States and Canada. At the Malin hub,
PCGP will interconnect with Gas Transmission Northwest Pipeline,
delivering gas from western Canada, and via its Stanfield
interconnection with Northwest Pipeline, delivering gas from the U.S.
Rockies; Ruby Pipeline, delivering gas from western Wyoming,
northwestern Colorado and northern Utah; and, PG&E Redwood Path,
serving northern California.
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\3\ Jordan Cove states that when any such agreement is executed,
and the transaction specific information required under 10 CFR
590.202(b) becomes available, Jordan Cove will comply with that
provision.
\4\ Jordan Cove states that PCGP is a new interstate natural gas
pipeline also certificated by the FERC Order (PCGP, together with
the Jordan Cove terminal, the Jordan Cove Project).
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Public Interest Considerations
In support of its Application, Jordan Cove states that in DOE/FE
Order No. 2961 (Sabine Pass Liquefaction, LLC) \5\ authorizing LNG
exports to non-FTA nations, DOE/FE acknowledged its longstanding
position that ``Section 3(a) creates a rebuttable presumption that a
proposed export of natural gas is in the
[[Page 33448]]
public interest, and DOE must grant such an application unless those
who oppose the application overcome that presumption ``by making an
affirmative showing of inconsistency with the public interest.'' \6\
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\5\ Sabine Pass Liquefaction, LLC, DOE/FE Order No. 2961, FE
Docket No. 10-111-LNG (May 20, 2011).
\6\ Id. at 28 and n. 38, citing Phillips Alaska Natural Gas
Corporation and Marathon Oil Company, 2 FE ] 70,317 (1999) (Phillips
Order).
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Jordan Cove states that the LNG export authorization will serve the
public interest in multiple ways. It will permit exports when
competitive and otherwise promote healthy domestic and international
natural gas markets. Jordan Cove states that the exports will not pose
any threat to the security of domestic natural gas supplies, but to the
contrary, they will result in significant economic benefits. Jordan
Cove states that the demand created by the exports will stimulate
increased revenues and jobs in upstream industries, which in turn will
benefit the overall U.S. economy. Jordan Cove states that the
construction and operation of the Jordan Cove Project will also create
jobs and produce revenues to the benefit of the local and regional
economies. Jordan Cove states that exports will have positive
international trade impacts for the United States. In sum, Jordan Cove
states that the Jordan Cove Project's economic benefits advance the
Administration's efforts to expand exports, create jobs, and otherwise
stimulate the beleaguered U.S. economy.
Jordan Cove commissioned independent experts to conduct studies and
prepare the following reports that Jordan Cove claims demonstrate these
public interest impacts:
1. Jordan Cove LNG Export Project Market Analysis Study, January
2012 by Navigant Consulting, Inc. (Navigant) analyzing gas supply and
demand outlooks and modeling potential price effects of the proposed
exports for the North American natural gas market to 2045 (Navigant
Study).
2. Whitepaper: Analysis of the EIA Export Report `Effect of
Increased Natural Gas Exports on Domestic Energy Markets' Dated January
19, 2012, February 2012 by Navigant commenting on the EIA Report \7\
(Navigant Whitepaper).
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\7\ In January 2012, the U.S. Energy Information Administration
(EIA) released Effect of Increased Natural Gas Exports on Domestic
Energy Markets (EIA Report), a case study, prepared at the request
of DOE/FE, evaluating the impact of increased natural gas demand
reflecting exports of LNG on domestic energy consumption, production
and demand under four scenarios. The EIA Report is addressed infra
at 16-18.
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3. An Economic Impact Analysis of the Construction of an LNG
Terminal and Natural Gas Pipeline in Oregon, March 6, 2012 by
ECONorthwest examining impacts on the states of Oregon and Washington
of the construction of the Jordan Cove Project (Construction Study).
4. An Economic Impact Analysis of Jordan Cove LNG Terminal and
Pacific Connector Gas Pipeline Operations, March 23, 2012 by
ECONorthwest examining impacts on the local communities of the
operations of the Jordan Cove Project (Operations Study).
5. Upstream Economic Contributions of the Jordan Cove Energy
Project, February 29, 2012 by ECONorthwest quantifying direct and
indirect contributions of the Jordan Cove Project to the United States
economy (Upstream Contributions Study).
6. Effect of the Jordan Cove Energy Project's LNG Exports on United
States Balance of Trade, March 20, 2012 by ECONorthwest analyzing the
impact of the Jordan Cove Project on the nation's balance of trade
(Balance of Trade Study).
Copies of the complete reports are appended to Jordan Cove's
application. Jordan Cove provides further discussion on their views
that the proposed export authorization is in the public interest,
discussed briefly below.
(1) Jordan Cove Exports Will Benefit Natural Gas Markets--Jordan
Cove claims: (a) That natural gas supply is more than adequate to serve
the projected domestic demand and proposed LNG exports; (b) that the
effect of Jordan Cove exports on natural gas prices is minimal; and (c)
that LNG exports will strengthen the U.S. natural gas market.
(2) Jordan Cove Exports Will Cause Economic Benefits--Jordan Cove
claims: (a) That construction of the Jordan Cove Project will benefit
the regional economy; (b) that operation of the Jordan Cove Project
will benefit the local economy; (c) that exports from Jordan Cove will
foster upstream industry growth and stimulate the U.S. economy; (d)
that Jordan Cove exports will provide trade benefits; and (e) that
Jordan Cove exports will provide additional international benefits.
(3) Jordan Cove claims that exports will offer unique advantages
due to its location.
A more complete discussion of the above public benefits claimed by
Jordan Cove is highlighted in Jordan Cove's application. Based on the
reasoning provided in the Application, Jordan Cove requests that the
DOE/FE determine that Jordan Cove's request for long-term, multi-
contract authorization to export LNG to non-FTA countries would be
consistent with the goal of the DOE Policy Guidelines to ``minimize
regulatory impediments to a freely operating market.'' \8\
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\8\ DOE Policy Guidelines at 6685.
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Environmental Impact
Jordan Cove states that FERC has found that the proposed Jordan
Cove LNG import terminal is environmentally acceptable if constructed
and operated in accordance with the environmental mitigation measures
set forth in the FERC Order. Jordan Cove also states that the potential
environmental impacts of the terminal as modified to permit exports of
LNG will be reviewed by FERC under NEPA when Jordan Cove's application
to amend its certificate to authorize liquefaction and export is filed.
Jordan Cove requests that DOE/FE issue an order authorizing exports of
LNG conditioned upon satisfactory completion of the environmental
review process by FERC.
DOE/FE Evaluation
The Application will be reviewed pursuant to section 3 of the NGA,
as amended, and the authority contained in DOE Delegation Order No. 00-
002.00L (April 29, 2011) and DOE Redelegation Order No. 00-002.04E
(April 29, 2011). In reviewing this LNG export Application, DOE will
consider any issues required by law or policy. To the extent determined
to be relevant or appropriate, these issues will include the impact of
LNG exports associated with this Application, and the cumulative impact
of any other application(s) previously approved, on domestic need for
the gas proposed for export, adequacy of domestic natural gas supply,
U.S. energy security, and any other issues, including the impact on the
U.S. economy (GDP), consumers, and industry, job creation, U.S. balance
of trade, international considerations, and whether the arrangement is
consistent with DOE's policy of promoting competition in the
marketplace by allowing commercial parties to freely negotiate their
own trade arrangements. Parties that may oppose this Application should
comment in their responses on these issues, as well as any other issues
deemed relevant to the Application.
NEPA requires DOE to give appropriate consideration to the
environmental effects of its proposed decisions. No final decision will
be issued in this proceeding until DOE has met its NEPA
responsibilities.
Due to the complexity of the issues raised by the Applicants,
interested persons will be provided 60 days from the date of
publication of this Notice in which to submit comments, protests,
[[Page 33449]]
motions to intervene, notices of intervention, or motions for
additional procedures.
Public Comment Procedures
In response to this notice, any person may file a protest,
comments, or a motion to intervene or notice of intervention, as
applicable. Any person wishing to become a party to the proceeding must
file a motion to intervene or notice of intervention, as applicable.
The filing of comments or a protest with respect to the Application
will not serve to make the commenter or protestant a party to the
proceeding, although protests and comments received from persons who
are not parties will be considered in determining the appropriate
action to be taken on the Application. All protests, comments, motions
to intervene or notices of intervention must meet the requirements
specified by the regulations in 10 CFR part 590.
Filings may be submitted using one of the following methods: (1)
Submitting comments in electronic form on the Federal eRulemaking
Portal at https://www.regulations.gov, by following the on-line
instructions and submitting such comments under FE Docket No. 12-32-
LNG. DOE/FE suggests that electronic filers carefully review
information provided in their submissions and include only information
that is intended to be publicly disclosed; (2) emailing the filing to
fergas@hq.doe.gov with FE Docket No. 12-32-LNG in the title line; (3)
mailing an original and three paper copies of the filing to the Office
Natural Gas Regulatory Activities at the address listed in ADDRESSES;
or (4) hand delivering an original and three paper copies of the filing
to the Office of Natural Gas Regulatory Activities at the address
listed in ADDRESSES.
A decisional record on the Application will be developed through
responses to this notice by parties, including the parties' written
comments and replies thereto. Additional procedures will be used as
necessary to achieve a complete understanding of the facts and issues.
A party seeking intervention may request that additional procedures be
provided, such as additional written comments, an oral presentation, a
conference, or trial-type hearing. Any request to file additional
written comments should explain why they are necessary. Any request for
an oral presentation should identify the substantial question of fact,
law, or policy at issue, show that it is material and relevant to a
decision in the proceeding, and demonstrate why an oral presentation is
needed. Any request for a conference should demonstrate why the
conference would materially advance the proceeding. Any request for a
trial-type hearing must show that there are factual issues genuinely in
dispute that are relevant and material to a decision and that a trial-
type hearing is necessary for a full and true disclosure of the facts.
If an additional procedure is scheduled, notice will be provided to
all parties. If no party requests additional procedures, a final
Opinion and Order may be issued based on the official record, including
the Application and responses filed by parties pursuant to this notice,
in accordance with 10 CFR 590.316.
The Application filed by Jordan Cove is available for inspection
and copying in the Office of Natural Gas Regulatory Activities docket
room, Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585.
The docket room is open between the hours of 8:00 a.m. and 4:30 p.m.,
Monday through Friday, except Federal holidays. The Application and any
filed protests, motions to intervene or notice of interventions, and
comments will also be available electronically by going to the
following DOE/FE Web address: https://www.fe.doe.gov/programs/gasregulation/. In addition, any electronic comments filed
will also be available at: https://www.regulations.gov.
Issued in Washington, DC, on May 29, 2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2012-13679 Filed 6-5-12; 8:45 am]
BILLING CODE 6450-01-P