Gulf LNG Liquefaction Company, LLC; Application for Long-Term Authorization To Export Liquefied Natural Gas Produced From Domestic Natural Gas Resources to Non-Free Trade Agreement Countries for a 20-Year Period, 66454-66457 [2012-26928]
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Federal Register / Vol. 77, No. 214 / Monday, November 5, 2012 / Notices
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Dated: October 29, 2012.
Michael Yudin,
Acting Assistant Secretary for Special
Education and Rehabilitative Services.
[FR Doc. 2012–26939 Filed 11–2–12; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
WREIER-AVILES on DSK5TPTVN1PROD with NOTICES
[FE Docket No. 12–101–LNG]
Gulf LNG Liquefaction Company, LLC;
Application for Long-Term
Authorization To Export Liquefied
Natural Gas Produced From Domestic
Natural Gas Resources to Non-Free
Trade Agreement Countries for a 20Year 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
SUMMARY:
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(Application) filed on August 31, 2012,
by Gulf LNG Liquefaction Company,
LLC (GLLC), requesting long-term,
multi-contract authorization to export
up to 11.5 million tons per annum
(mtpa) of domestically produced
liquefied natural gas (LNG), the
equivalent of approximately 547.5
billion cubic feet (Bcf) of natural gas per
year (Bcf/yr), or 1.5 Bcf per day (Bcf/d),
over a 20-year period, commencing on
the earlier of the date of first export or
ten years from the date the requested
authorization is granted. The LNG
would be exported from the Gulf LNG
Energy, LLC Terminal (Gulf LNG
Terminal), a facility located in
Pascagoula, Mississippi, to any country
that has or in the future develops the
capacity to import LNG via ocean-going
carrier and with which the United
States does not prohibit trade but also
does not have a free trade agreement
(FTA) requiring national treatment for
trade in natural gas. GLLC is requesting
this authorization both on its own
behalf and as agent for other parties who
themselves hold title to the LNG at the
time 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, January 4,
2013.
ADDRESSES:
Electronic Filing by email: fergas@hq.
doe.gov.
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 Lisa Tracy, 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) 586–4523
Edward Myers, U.S. Department of
Energy, Office of the Assistant
General Counsel for Electricity and
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Fossil Energy, Forrestal Building,
Room 6B–256, 1000 Independence
Ave. SW., Washington, DC 20585,
(202) 586–3397
SUPPLEMENTARY INFORMATION:
Background
GLLC is a Delaware limited liability
company with its principal place of
business in Birmingham, Alabama.
GLLC is a wholly owned subsidiary of
Gulf LNG Holdings Group, LLC (Gulf
LNG Holdings). GLLC is a wholly
owned subsidiary of Gulf LNG Holdings
Group, LLC (Gulf LNG Holding). Kinder
Morgan, Inc., indirectly through its
wholly-owned subsidiary, Southern
Gulf LNG Company, LLC, owns a fifty
percent interest in Gulf LNG Holdings.
GE Energy Financial Services, a unit of
GE, directly and indirectly owns a fortysix percent interest in Gulf LNG
Holdings. Other investors identified in
the Application own the remaining four
percent interest of Gulf LNG Holdings.
GLLC states that this application
represents the second part of a two-part
application request. On May 2, 2012, in
Docket No. 12–47–LNG, GLLC filed
with DOE/FE a separate application for
long-term, multi-contract authorization
to export up to 11.5 mtpa of
domestically produced LNG for 25 years
(equivalent to approximately 547.5 Bcf/
yr, or 1.5 Bcf/d) to any country with
which the United States currently has,
or in the future may enter into, an FTA
requiring national treatment for trade in
natural gas, and which has or in the
future develops the capacity to import
LNG via ocean-going carrier. DOE/FE
granted this authorization on June 15,
2012, in Order No. 3104.
On October 28, 2005, Gulf LNG
Energy, LLC, a subsidiary of Gulf LNG
Holdings, filed an application with the
Federal Energy Regulatory Commission
(FERC) under Section 3 of the Natural
Gas Act requesting authority to site,
construct and operate an LNG import
terminal in Jackson County, Mississippi.
Concurrently Gulf LNG Pipeline, LLC
filed an application under Section 7(c)
of the Natural Gas Act to construct, own
and operate an approximately five milelong pipeline from the proposed LNG
terminal. FERC authorized the
construction of the terminal and
pipeline (collectively, the ‘‘Gulf LNG
Terminal’’) on February 16, 2007. The
Gulf LNG Terminal commenced service
on October 1, 2011.
GLLC plans to build natural gas
processing and liquefaction facilities to
receive and liquefy domestic natural gas
at the Gulf LNG Terminal (the
‘‘Project’’). The Project facilities will be
integrated into the existing terminal
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WREIER-AVILES on DSK5TPTVN1PROD with NOTICES
facilities which currently consist of a
single marine berth, two storage tanks,
vaporization units and associated piping
and control equipment, associated
utilities, infrastructure and support
systems; and a 5.02 mile send-out
pipeline extending to several interstate
pipelines. The Gulf LNG Terminal has
a peak sendout capacity of 1.5 Bcf/d.
GLLC states that the new facilities
planned for the project will include
natural gas pre-treatment, liquefaction,
and export facilities with a capacity of
up to 11.5 mtpa of LNG, plus
enhancements to the existing equipment
and additional utilities. GLLC states that
the additional facilities would permit
gas to be received by pipeline at the
Gulf LNG Terminal, where it would be
liquefied and then loaded from the Gulf
LNG Terminal’s storage tanks onto
vessels berthed at the existing marine
facility. GLLC also states that once the
project is operational, it will have the
capability to: (1) Liquefy domestic
natural gas for export, or (2) import LNG
and either re-gasify the imported LNG
for delivery to domestic markets or
export the LNG to foreign markets.
GLLC does not expect the Export Project
to result in vessel traffic to or from the
facility in excess of that currently
authorized for the existing import
facility.
GLLC acknowledges that the proposed
facilities would be subject to review and
approval by the FERC. Upon completion
of initial facility planning and design,
GLLC will request that the Commission
initiate the mandatory pre-filing review
process for the Export Project. GLLC
states it anticipates that this request will
be made before the end of 2013.
Current Application
In the instant Application, GLLC
seeks long-term, multi-contract
authorization to export up to 11.5 mtpa
of domestically produced natural gas, as
LNG (equivalent to approximately 547.5
Bcf/yr, or 1.5 Bcf/d of natural gas), for
a period of 20 years beginning on the
earlier of the date of first export or ten
years from the date the authorization is
granted by DOE/FE. GLLC requests that
such long-term authorization provide
for export from the Gulf LNG Terminal
to any country (i) with which the United
States does not have an FTA requiring
national treatment for trade in natural
gas, (ii) which has developed or in the
future develops the capacity to import
LNG via ocean-going carrier, and (iii)
with which trade is not prohibited by
U.S. law or policy.
GLLC requests authorization to export
LNG on its own behalf and as agent for
other parties who themselves hold title
to the LNG at the time of export. GLLC
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states that to ensure that all exports are
permitted and lawful under U.S. laws
and policies, it will comply with all
DOE requirements for an exporter or
agent.
GLLC asserts that in recent orders
granting long-term authorization to
export LNG to FTA countries, DOE
found that the applicants were not
required to submit, with their
applications, transaction-specific
information, as specified in section
509.202(b) of DOE’s regulations. GLLC
requests that DOE make the same
finding for this Application.
GLLC seeks authorization to export
natural gas available in the integrated
U.S. natural gas pipeline system. GLLC
notes that due to the Gulf LNG
Terminal’s direct access to multiple
major interstate pipelines and indirect
access to the national gas pipeline grid,
the Project’s customers will have a wide
variety of stable and economical supply
options from which to choose.
Public Interest Considerations
GLLC states that DOE/FE’s primary
consideration is whether the exports
will be transacted on a market-driven,
competitive basis. GLLC states that this
is the case here: The owners of gas or
the holders of capacity at the Export
Project facilities will make decisions
whether to export gas based on then
prevailing market conditions in the
domestic market and the destination
markets. GLLC states that with export
capability at the Gulf LNG Terminal,
both exports and imports will be subject
to the ultimate market test: Those with
capacity at the terminal will decide
whether the market warrants imports of
LNG, exports of LNG or neither. GLLC
states that while its transactions will be
competitive, market-based transactions
consistent with DOE/FE’s public
interest policy, it is aware of the
ongoing debate over whether LNG
exports will cause price increases in the
domestic market that run counter to the
public interest.
In order to address such concerns,
GLLC commissioned Navigant
Consulting, Inc. (Navigant) to undertake
a study of the potential impact to
domestic supply and prices that might
result from LNG exports. The Navigant
Market Analysis Study, attached to the
Application as Appendix A, considered
the possible impacts that the Export
Project might have on natural gas
supply and pricing. Navigant’s analysis
also assumed the existence of additional
LNG exports from other projects as well
as an aggressive increase in natural gas
demand due to the use of natural gas in
transportation vehicles. GLCC states that
even in the High Demand Base Case,
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66455
which assumes 6.2 Bcf/d of LNG exports
in addition to GLLC’s requested 1.5 Bcf/
d and makes aggressive assumptions
about natural gas vehicle demand, the
impact on domestic prices over the term
of the requested authorization is
minimal.
GLLC states that Navigant concludes
that LNG exports will actually
encourage a more reliable and stable
domestic natural gas market with less
volatility, which will benefit all market
participants. By providing an additional
outlet for supply, LNG exports will help
to level the peaks and valleys
historically common to the natural gas
industry. GLLC states that in other
words, LNG exports will reduce the
price volatility that can lead producers
to curtail production and reduce
investment when prices are declining,
which, in turn, leads to prices to
subsequently spike when production
falls too low. GLLC also states that its
Export Project will not rely on any
particular source of gas, but rather,
through the nationally integrated gas
pipeline grid, and will be able to access
gas supplies from a variety of producing
basins within the U.S.
To further support its Application,
GLLC states that it also commissioned
Navigant Economics to perform an
Economic Impact Assessment Study.
Highlighted in Appendix B of the
Application, GLLC states that the study
shows that the GLLC Export Project will
create material economic benefits in the
Southeast region where the Export
Project is to be located. GLLC further
states that during both the construction
and operation phases, the GLLC Export
Project will contribute to and stimulate
the local and regional economy. GLLC
maintains that because development of
the GLLC Export Project will take place
wholly within a brownfield
development area, the environmental
impacts of the project will be minimal.
Finally, GLLC states that the
Application demonstrates that exports
of LNG from the Gulf LNG Terminal
will be in the public interest for the
following reasons:
First, exports from the GLLC Export
Project will involve the sale of gas in
volumes and at prices responsive to
market needs.
Second, GLLC states that there are
more than adequate gas reserves to
supply the U.S. market, even with
exports from GGLC, exports from other
projects in the amount of an additional
6.2 Bcf/d and with aggressive growth in
demand for natural gas vehicles.
Third, GLLC states that natural gas to
be exported from the GLLC Export
Project may be sourced from a variety of
conventional and unconventional
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Federal Register / Vol. 77, No. 214 / Monday, November 5, 2012 / Notices
supply basins by using the highly
efficient and integrated U.S. natural
pipeline grid.
Fourth, GLLC states that the impact of
LNG exports on the price of domestic
gas will be minimal, and will be
expected to average less than 8 percent.
Fifth, GLLC states that the Export
Project will create economic benefits to
the local and regional economies in the
Southeast region surrounding the
project location in Jackson County,
Mississippi, as well as the national
economy.
Sixth, GLLC contends that LNG
exports will lead to less volatility in
domestic natural gas markets and
increased stability that benefits
producers and consumers by levelizing
demand.
Seventh, GLLC states that LNG
exports will benefit the United States by
contributing toward a decreased trade
deficit and advancing U.S. interests
abroad.
Eighth, GLLC maintains that the
Export Project will have relatively small
environmental impacts because the
construction will take place wholly
within a brownfield development area
and displace environmentally damaging
fuels in those countries.
Further details can be found in the
Application, which has been posted at
https://www.fe.doe.gov/programs/
gasregulation/.
WREIER-AVILES on DSK5TPTVN1PROD with NOTICES
Environmental Impact
GLLC states that the Export Project
will have minimal environmental
impacts. GLLC states that although the
export facilities will be constructed on
property adjacent to the existing import
facilities, the project will be located
wholly in a brownfield development
area. GLLC anticipates that, given this
project scope, the FERC will prepare an
Environmental Impact Statement as part
of its environmental review. The FERC
conducted an environmental review of
the Gulf LNG Terminal site in
connection with authorization of the
siting, construction, and operation of
the Terminal in Docket No. CP06–12–
000. GLLC also states that any
additional environmental impacts
associated with construction and
operation of the Export Project will be
reviewed by the FERC and the
applicable state and federal permitting
agencies (e.g., United States Army Corps
of Engineers, Georgia Department of
Natural Resources, and Coast Guard,
among others) as part of the permitting
process for the Export Project.
Consistent with its practice regarding
other applications, DOE/FE will be a
cooperating agency in the FERC’s
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environmental review.1 GLLC further
states that it will keep DOE/FE apprised
of the progress of the environmental
review conducted by the FERC.
GLLC states that it currently is in the
process of evaluating the necessary
infrastructure modifications and
additions necessary to accommodate
both FTA and non-FTA exports. GLLC
states that, following such evaluation, it
will initiate the pre-filing review
process at the FERC for the proposed
Export Project facilities. GLLC requests
that DOE/FE issue an order approving
the Application, with such approval
subject to a satisfactory environmental
review by the 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 environmental 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,
motions to intervene, notices of
intervention, or motions for additional
procedures.
1 DOE/FE
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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) Emailing the
filing to fergas@hq.doe.gov with FE
Docket No. 12–101–LNG in the title
line; (2) mailing an original and three
paper copies of the filing to the Office
of Natural Gas Regulatory Activities at
the address listed in ADDRESSES. The
filing must include a reference to FE
Docket No. 12–101–LNG; or (3) 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. The filing
must include a reference to FE Docket
No. 12–101–LNG.
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.
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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 GLLC 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/.
Issued in Washington, DC, on October 26,
2012.
Robert F. Corbin,
Director, Office of Oil and Gas Global Security
and Supply, Office of Fossil Energy.
[FR Doc. 2012–26928 Filed 11–2–12; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
WREIER-AVILES on DSK5TPTVN1PROD with NOTICES
Combined Notice of Filings #1
Take notice that the Commission
received the following electric corporate
filings:
Docket Numbers: EC13–23–000.
Applicants: AEE2, L.L.C., AES ES
Westover, LLC.
Description: Joint Application for
Authorization Under Section 203 of the
Federal Power Act and Request for
Expedited Action of AEE2, L.L.C., et al.
Filed Date: 10/24/12.
Accession Number: 20121024–5140.
Comments Due: 5 p.m. ET 11/14/12.
Take notice that the Commission
received the following electric rate
filings:
Docket Numbers: ER12–50–001.
Applicants: California Independent
System Operator Corporation.
Description: 2012–10–24 CAISO
Flexible Ramping Constraints
Compliance Filing to be effective 11/1/
2012.
Filed Date: 10/24/12.
Accession Number: 20121024–5126.
Comments Due: 5 p.m. ET 11/14/12.
Docket Numbers: ER12–1021–001.
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15:30 Nov 02, 2012
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Applicants: Midwest Independent
Transmission System Operator, Inc.
Description: 10–24–2012 CDC
Compliance Filing to be effective 9/1/
2012.
Filed Date: 10/24/12.
Accession Number: 20121024–5121.
Comments Due: 5 p.m. ET 11/14/12.
Docket Numbers: ER13–182–000.
Applicants: PJM Interconnection,
L.L.C.
Description: Queue No. W4–010,
Original Service Agreement No. 3405 to
be effective 9/24/2012.
Filed Date: 10/24/12.
Accession Number: 20121024–5134.
Comments Due: 5 p.m. ET 11/14/12.
Docket Numbers: ER13–183–000.
Applicants: Clear Choice Energy, LLC.
Description: Baseline New to be
effective 12/8/2012.
Filed Date: 10/25/12.
Accession Number: 20121025–5002.
Comments Due: 5 p.m. ET 11/15/12.
Take notice that the Commission
received the following land acquisition
reports:
Docket Numbers: LA12–3–000.
Applicants: Canastota Windpower,
LLC, Caney River Wind Project, LLC
EGP Stillwater Solar, LLC, Enel
Stillwater, LLC, Smoky Hills Wind
Farm, LLC, Smoky Hills Wind Project II,
LLC, Rocky Ridge Wind Project, LLC,
Chisholm View Wind Project, LLC.
Description: Quarterly Land
Acquisition Report of Enel Green Power
North America, Inc.
Filed Date: 10/25/12.
Accession Number: 20121025–5030.
Comments Due: 5 p.m. ET 11/15/12.
The filings are accessible in the
Commission’s eLibrary system by
clicking on the links or querying the
docket number.
Any person desiring to intervene or
protest in any of the above proceedings
must file in accordance with Rules 211
and 214 of the Commission’s
Regulations (18 CFR 385.211 and
385.214) on or before 5:00 p.m. Eastern
time on the specified comment date.
Protests may be considered, but
intervention is necessary to become a
party to the proceeding.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
Dated: October 25, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012–26921 Filed 11–2–12; 8:45 am]
BILLING CODE 6717–01–P
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DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Combined Notice of Filings #2
Take notice that the Commission
received the following electric corporate
filings:
Docket Numbers: EC13–24–000.
Applicants: Stony Creek Wind Farm,
LLC.
Description: Application for
Authorization Under Section 203 of the
Federal Power Act, Requests for Waivers
of Filing Requirements, Expedited
Consideration and Confidential
Treatment of Stony Creek Wind Farm,
LLC.
Filed Date: 10/25/12.
Accession Number: 20121025–5062.
Comments Due: 5 p.m. ET 11/15/12.
Take notice that the Commission
received the following electric rate
filings:
Docket Numbers: ER12–2233–002.
Applicants: Berry Petroleum
Company.
Description: Berry Petroleum
Company MBR Compliance Filing to be
effective 9/10/2012.
Filed Date: 10/25/12.
Accession Number: 20121025–5048.
Comments Due: 5 p.m. ET 11/15/12.
Docket Numbers: ER13–70–001.
Applicants: Texas Dispatchable Wind
1, LLC.
Description: Amendment to be
effective 10/25/2012.
Filed Date: 10/25/12.
Accession Number: 20121025–5064.
Comments Due: 5 p.m. ET 11/15/12.
Docket Numbers: ER13–184–000.
Applicants: PacifiCorp.
Description: WAPA–LAP Short Term
and Non-Firm Point-to-Point
Transmission Service Agreements to be
effective 10/22/2012.
Filed Date: 10/25/12.
Accession Number: 20121025–5067.
Comments Due: 5 p.m. ET 11/15/12.
Docket Numbers: ER13–185–000.
Applicants: ISO New England Inc.
Description: 2013 Administrative
Costs Budget Filing to be effective 1/1/
2013.
Filed Date: 10/25/12.
Accession Number: 20121025–5068.
Comments Due: 5 p.m. ET 11/15/12.
Docket Numbers: ER13–186–000.
Applicants: Midwest Independent
Transmission System Operator, Inc.
Description: 10–25–12 BRP to be
effective 12/31/2012.
Filed Date: 10/25/12.
Accession Number: 20121025–5069.
Comments Due: 5 p.m. ET 11/15/12.
E:\FR\FM\05NON1.SGM
05NON1
]]>Agencies
[Federal Register Volume 77, Number 214 (Monday, November 5, 2012)]
[Notices]
[Pages 66454-66457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26928]
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DEPARTMENT OF ENERGY
[FE Docket No. 12-101-LNG]
Gulf LNG Liquefaction Company, LLC; Application for Long-Term
Authorization To Export Liquefied Natural Gas Produced From Domestic
Natural Gas Resources to Non-Free Trade Agreement Countries for a 20-
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
August 31, 2012, by Gulf LNG Liquefaction Company, LLC (GLLC),
requesting long-term, multi-contract authorization to export up to 11.5
million tons per annum (mtpa) of domestically produced liquefied
natural gas (LNG), the equivalent of approximately 547.5 billion cubic
feet (Bcf) of natural gas per year (Bcf/yr), or 1.5 Bcf per day (Bcf/
d), over a 20-year period, commencing on the earlier of the date of
first export or ten years from the date the requested authorization is
granted. The LNG would be exported from the Gulf LNG Energy, LLC
Terminal (Gulf LNG Terminal), a facility located in Pascagoula,
Mississippi, to any country that has or in the future develops the
capacity to import LNG via ocean-going carrier and with which the
United States does not prohibit trade but also does not have a free
trade agreement (FTA) requiring national treatment for trade in natural
gas. GLLC is requesting this authorization both on its own behalf and
as agent for other parties who themselves hold title to the LNG at the
time 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, January 4,
2013.
ADDRESSES:
Electronic Filing by email: fergas@hq.doe.gov.
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 Lisa Tracy, 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) 586-4523
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
GLLC is a Delaware limited liability company with its principal
place of business in Birmingham, Alabama. GLLC is a wholly owned
subsidiary of Gulf LNG Holdings Group, LLC (Gulf LNG Holdings). GLLC is
a wholly owned subsidiary of Gulf LNG Holdings Group, LLC (Gulf LNG
Holding). Kinder Morgan, Inc., indirectly through its wholly-owned
subsidiary, Southern Gulf LNG Company, LLC, owns a fifty percent
interest in Gulf LNG Holdings. GE Energy Financial Services, a unit of
GE, directly and indirectly owns a forty-six percent interest in Gulf
LNG Holdings. Other investors identified in the Application own the
remaining four percent interest of Gulf LNG Holdings.
GLLC states that this application represents the second part of a
two-part application request. On May 2, 2012, in Docket No. 12-47-LNG,
GLLC filed with DOE/FE a separate application for long-term, multi-
contract authorization to export up to 11.5 mtpa of domestically
produced LNG for 25 years (equivalent to approximately 547.5 Bcf/yr, or
1.5 Bcf/d) to any country with which the United States currently has,
or in the future may enter into, an FTA requiring national treatment
for trade in natural gas, and which has or in the future develops the
capacity to import LNG via ocean-going carrier. DOE/FE granted this
authorization on June 15, 2012, in Order No. 3104.
On October 28, 2005, Gulf LNG Energy, LLC, a subsidiary of Gulf LNG
Holdings, filed an application with the Federal Energy Regulatory
Commission (FERC) under Section 3 of the Natural Gas Act requesting
authority to site, construct and operate an LNG import terminal in
Jackson County, Mississippi. Concurrently Gulf LNG Pipeline, LLC filed
an application under Section 7(c) of the Natural Gas Act to construct,
own and operate an approximately five mile-long pipeline from the
proposed LNG terminal. FERC authorized the construction of the terminal
and pipeline (collectively, the ``Gulf LNG Terminal'') on February 16,
2007. The Gulf LNG Terminal commenced service on October 1, 2011.
GLLC plans to build natural gas processing and liquefaction
facilities to receive and liquefy domestic natural gas at the Gulf LNG
Terminal (the ``Project''). The Project facilities will be integrated
into the existing terminal
[[Page 66455]]
facilities which currently consist of a single marine berth, two
storage tanks, vaporization units and associated piping and control
equipment, associated utilities, infrastructure and support systems;
and a 5.02 mile send-out pipeline extending to several interstate
pipelines. The Gulf LNG Terminal has a peak sendout capacity of 1.5
Bcf/d. GLLC states that the new facilities planned for the project will
include natural gas pre-treatment, liquefaction, and export facilities
with a capacity of up to 11.5 mtpa of LNG, plus enhancements to the
existing equipment and additional utilities. GLLC states that the
additional facilities would permit gas to be received by pipeline at
the Gulf LNG Terminal, where it would be liquefied and then loaded from
the Gulf LNG Terminal's storage tanks onto vessels berthed at the
existing marine facility. GLLC also states that once the project is
operational, it will have the capability to: (1) Liquefy domestic
natural gas for export, or (2) import LNG and either re-gasify the
imported LNG for delivery to domestic markets or export the LNG to
foreign markets. GLLC does not expect the Export Project to result in
vessel traffic to or from the facility in excess of that currently
authorized for the existing import facility.
GLLC acknowledges that the proposed facilities would be subject to
review and approval by the FERC. Upon completion of initial facility
planning and design, GLLC will request that the Commission initiate the
mandatory pre-filing review process for the Export Project. GLLC states
it anticipates that this request will be made before the end of 2013.
Current Application
In the instant Application, GLLC seeks long-term, multi-contract
authorization to export up to 11.5 mtpa of domestically produced
natural gas, as LNG (equivalent to approximately 547.5 Bcf/yr, or 1.5
Bcf/d of natural gas), for a period of 20 years beginning on the
earlier of the date of first export or ten years from the date the
authorization is granted by DOE/FE. GLLC requests that such long-term
authorization provide for export from the Gulf LNG Terminal to any
country (i) with which the United States does not have an FTA requiring
national treatment for trade in natural gas, (ii) which has developed
or in the future develops the capacity to import LNG via ocean-going
carrier, and (iii) with which trade is not prohibited by U.S. law or
policy.
GLLC requests authorization to export LNG on its own behalf and as
agent for other parties who themselves hold title to the LNG at the
time of export. GLLC states that to ensure that all exports are
permitted and lawful under U.S. laws and policies, it will comply with
all DOE requirements for an exporter or agent.
GLLC asserts that in recent orders granting long-term authorization
to export LNG to FTA countries, DOE found that the applicants were not
required to submit, with their applications, transaction-specific
information, as specified in section 509.202(b) of DOE's regulations.
GLLC requests that DOE make the same finding for this Application.
GLLC seeks authorization to export natural gas available in the
integrated U.S. natural gas pipeline system. GLLC notes that due to the
Gulf LNG Terminal's direct access to multiple major interstate
pipelines and indirect access to the national gas pipeline grid, the
Project's customers will have a wide variety of stable and economical
supply options from which to choose.
Public Interest Considerations
GLLC states that DOE/FE's primary consideration is whether the
exports will be transacted on a market-driven, competitive basis. GLLC
states that this is the case here: The owners of gas or the holders of
capacity at the Export Project facilities will make decisions whether
to export gas based on then prevailing market conditions in the
domestic market and the destination markets. GLLC states that with
export capability at the Gulf LNG Terminal, both exports and imports
will be subject to the ultimate market test: Those with capacity at the
terminal will decide whether the market warrants imports of LNG,
exports of LNG or neither. GLLC states that while its transactions will
be competitive, market-based transactions consistent with DOE/FE's
public interest policy, it is aware of the ongoing debate over whether
LNG exports will cause price increases in the domestic market that run
counter to the public interest.
In order to address such concerns, GLLC commissioned Navigant
Consulting, Inc. (Navigant) to undertake a study of the potential
impact to domestic supply and prices that might result from LNG
exports. The Navigant Market Analysis Study, attached to the
Application as Appendix A, considered the possible impacts that the
Export Project might have on natural gas supply and pricing. Navigant's
analysis also assumed the existence of additional LNG exports from
other projects as well as an aggressive increase in natural gas demand
due to the use of natural gas in transportation vehicles. GLCC states
that even in the High Demand Base Case, which assumes 6.2 Bcf/d of LNG
exports in addition to GLLC's requested 1.5 Bcf/d and makes aggressive
assumptions about natural gas vehicle demand, the impact on domestic
prices over the term of the requested authorization is minimal.
GLLC states that Navigant concludes that LNG exports will actually
encourage a more reliable and stable domestic natural gas market with
less volatility, which will benefit all market participants. By
providing an additional outlet for supply, LNG exports will help to
level the peaks and valleys historically common to the natural gas
industry. GLLC states that in other words, LNG exports will reduce the
price volatility that can lead producers to curtail production and
reduce investment when prices are declining, which, in turn, leads to
prices to subsequently spike when production falls too low. GLLC also
states that its Export Project will not rely on any particular source
of gas, but rather, through the nationally integrated gas pipeline
grid, and will be able to access gas supplies from a variety of
producing basins within the U.S.
To further support its Application, GLLC states that it also
commissioned Navigant Economics to perform an Economic Impact
Assessment Study. Highlighted in Appendix B of the Application, GLLC
states that the study shows that the GLLC Export Project will create
material economic benefits in the Southeast region where the Export
Project is to be located. GLLC further states that during both the
construction and operation phases, the GLLC Export Project will
contribute to and stimulate the local and regional economy. GLLC
maintains that because development of the GLLC Export Project will take
place wholly within a brownfield development area, the environmental
impacts of the project will be minimal.
Finally, GLLC states that the Application demonstrates that exports
of LNG from the Gulf LNG Terminal will be in the public interest for
the following reasons:
First, exports from the GLLC Export Project will involve the sale
of gas in volumes and at prices responsive to market needs.
Second, GLLC states that there are more than adequate gas reserves
to supply the U.S. market, even with exports from GGLC, exports from
other projects in the amount of an additional 6.2 Bcf/d and with
aggressive growth in demand for natural gas vehicles.
Third, GLLC states that natural gas to be exported from the GLLC
Export Project may be sourced from a variety of conventional and
unconventional
[[Page 66456]]
supply basins by using the highly efficient and integrated U.S. natural
pipeline grid.
Fourth, GLLC states that the impact of LNG exports on the price of
domestic gas will be minimal, and will be expected to average less than
8 percent.
Fifth, GLLC states that the Export Project will create economic
benefits to the local and regional economies in the Southeast region
surrounding the project location in Jackson County, Mississippi, as
well as the national economy.
Sixth, GLLC contends that LNG exports will lead to less volatility
in domestic natural gas markets and increased stability that benefits
producers and consumers by levelizing demand.
Seventh, GLLC states that LNG exports will benefit the United
States by contributing toward a decreased trade deficit and advancing
U.S. interests abroad.
Eighth, GLLC maintains that the Export Project will have relatively
small environmental impacts because the construction will take place
wholly within a brownfield development area and displace
environmentally damaging fuels in those countries.
Further details can be found in the Application, which has been
posted at https://www.fe.doe.gov/programs/gasregulation/.
Environmental Impact
GLLC states that the Export Project will have minimal environmental
impacts. GLLC states that although the export facilities will be
constructed on property adjacent to the existing import facilities, the
project will be located wholly in a brownfield development area. GLLC
anticipates that, given this project scope, the FERC will prepare an
Environmental Impact Statement as part of its environmental review. The
FERC conducted an environmental review of the Gulf LNG Terminal site in
connection with authorization of the siting, construction, and
operation of the Terminal in Docket No. CP06-12-000. GLLC also states
that any additional environmental impacts associated with construction
and operation of the Export Project will be reviewed by the FERC and
the applicable state and federal permitting agencies (e.g., United
States Army Corps of Engineers, Georgia Department of Natural
Resources, and Coast Guard, among others) as part of the permitting
process for the Export Project. Consistent with its practice regarding
other applications, DOE/FE will be a cooperating agency in the FERC's
environmental review.\1\ GLLC further states that it will keep DOE/FE
apprised of the progress of the environmental review conducted by the
FERC.
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\1\ DOE/FE Order No. 2961-A, at 27.
---------------------------------------------------------------------------
GLLC states that it currently is in the process of evaluating the
necessary infrastructure modifications and additions necessary to
accommodate both FTA and non-FTA exports. GLLC states that, following
such evaluation, it will initiate the pre-filing review process at the
FERC for the proposed Export Project facilities. GLLC requests that
DOE/FE issue an order approving the Application, with such approval
subject to a satisfactory environmental review by the 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 environmental
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,
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)
Emailing the filing to fergas@hq.doe.gov with FE Docket No. 12-101-LNG
in the title line; (2) mailing an original and three paper copies of
the filing to the Office of Natural Gas Regulatory Activities at the
address listed in ADDRESSES. The filing must include a reference to FE
Docket No. 12-101-LNG; or (3) 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. The filing must include
a reference to FE Docket No. 12-101-LNG.
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.
[[Page 66457]]
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 GLLC 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/.
Issued in Washington, DC, on October 26, 2012.
Robert F. Corbin,
Director, Office of Oil and Gas Global Security and Supply, Office of
Fossil Energy.
[FR Doc. 2012-26928 Filed 11-2-12; 8:45 am]
BILLING CODE 6450-01-P
