Pangea LNG (North America) Holdings, 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 25-Year Period, 13330-13333 [2013-04540]

Download as PDF 13330 Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Notices not received at least 10 calendar days before the first day of the meeting which is the subject of this notice, then it may not be provided to or considered by the BoV until its next open meeting. The DFO will review all timely submissions with the BoV Chairman and ensure they are provided to members of the BoV before the meeting that is the subject of this notice. For the benefit of the public, rosters that list the names of BoV members and any releasable materials presented during the open portions of this BoV meeting shall be made available upon request. If after review of timely submitted written comments and the BoV Chairman and DFO deem appropriate, they may choose to invite the submitter of the written comments to orally present the issue during an open portion of the BoV meeting that is the subject of this notice. Members of the BoV may also petition the Chairman to allow specific personnel to make oral presentations before the BoV. In accordance with 41 CFR 102–3.140(d), any oral presentations before the BoV shall be in accordance with agency guidelines provided pursuant to a written invitation and this paragraph. Direct questioning of BoV members or meeting participants by the public is not permitted except with the approval of the DFO and Chairman. FOR FURTHER INFORMATION CONTACT: For additional information or to attend this BoV meeting, contact Capt Bobby Hale, Accessions and Training Division, AF/ A1PT, 1040 Air Force Pentagon, Washington, DC 20330, (703) 695–4066. Henry Williams Jr, Acting Air Force Federal Register Liaison Officer. [FR Doc. 2013–04501 Filed 2–26–13; 8:45 am] BILLING CODE 5001–10–P DEPARTMENT OF EDUCATION [Docket No.: ED–2012–ICCD–0074] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and approval; Comment Request; Part 601 Preferred Lender Arrangements Department of Education (ED), Federal Student Aid (FSA). ACTION: Notice. erowe on DSK2VPTVN1PROD with NOTICES AGENCY: SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 3501 et seq.), ED is proposing an extension of an existing information collection of a previously approved information collection. VerDate Mar<15>2010 15:18 Feb 26, 2013 Jkt 229001 Interested persons are invited to submit comments on or before March 29, 2013. ADDRESSES: Comments submitted in response to this notice should be submitted electronically through the Federal eRulemaking Portal at http:// www.regulations.gov by selecting Docket ID number ED–2012–ICCD–0074 or via postal mail, commercial delivery, or hand delivery. Please note that comments submitted by fax or email and those submitted after the comment period will not be accepted. Written requests for information or comments submitted by postal mail or delivery should be addressed to the Director of the Information Collection Clearance Division, U.S. Department of Education, 400 Maryland Avenue SW., LBJ, Room 2E103, Washington, DC 20202–4537. FOR FURTHER INFORMATION CONTACT: Electronically mail ICDocketMgr@ed.gov. Please do not send comments here. SUPPLEMENTARY INFORMATION: The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public’s reporting burden. It also helps the public understand the Department’s information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records. Title of Collection: Part 601 Preferred Lender Arrangements OMB Control Number: 1845–0101 Type of Review: Extension of an existing collection of information Respondents/Affected Public: Individual or households DATES: PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 Total Estimated Number of Annual Responses: 13,674,883 Total Estimated Number of Annual Burden Hours: 3,197,761 Abstract: Part 601—Institution and Lender Requirements Relating to Education Loans is a new section of the regulations governing private education loans offered at covered institutions by lenders also participating in the FFEL program. These regulations assure the Secretary that the integrity of the program is protected from fraud and misuse of program funds and places requirements on institutions and lenders to insure that borrowers receive additional disclosures about Title IV, HEA program assistance prior to obtaining a private education loan. These regulations require covered institutions to provide a variety of new loan disclosures, disclosures on private loans, for institutions to prepare and submit an annual report on the use of private loans, and to establish and adopt a code of conduct for institutions participation in a preferred lender arrangement. The Department, in conjunction with outside entities are submitting the Private Education Loan Applicant Self-Certification form for OMB’s approval. While information about the applicant’s cost of attendance and estimated financial assistance must be provided to the student, if available, the student will provide the data to the private loan lender who must collect and maintain the self-certification form prior to disbursement of a Private Education Loan. The Department will not receive the Private Education Loan Applicant Self-Certification form and therefore will not be collecting and maintaining the form or its data. Dated: February 21, 2013. Kate Mullan, Acting Director, Information Collection Clearance Division, Privacy, Information and Records Management Services, Office of Management. [FR Doc. 2013–04436 Filed 2–26–13; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY [FE Docket No. 12–184–LNG] Pangea LNG (North America) Holdings, 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 25Year Period Office of Fossil Energy, DOE. Notice of application. AGENCY: ACTION: E:\FR\FM\27FEN1.SGM 27FEN1 erowe on DSK2VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Notices SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy (DOE) gives notice of receipt of an application (Application) filed on December 19, 2012, by Pangea LNG (North America) Holdings, LLC (Pangea), requesting long-term, multi-contract authorization to export domestically produced liquefied natural gas (LNG) in an amount up to the equivalent of 398.5 billion cubic feet (Bcf) per year (Bcf/y) of natural gas (equal to 1.09 Bcf/day of natural gas), the equivalent of 8 million metric tons per annum (mtpa), from its proposed South Texas LNG Export Project (ST LNG Project) located at the Port of Corpus Christi in Ingleside, Texas. Pangea requests this authorization for a 25-year term 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 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) that 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. Pangea 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, April 29, 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 Marc Talbert, U.S. Department of Energy (FE–34), Office of Natural Gas Regulatory Activities, Office of Fossil Energy, Forrestal VerDate Mar<15>2010 15:18 Feb 26, 2013 Jkt 229001 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 Avenue SW., Washington, DC 20585, (202) 586–3397. SUPPLEMENTARY INFORMATION: Background Pangea is a Delaware limited liability company with its principal place of business in The Woodlands, Texas. Pangea is a wholly owned subsidiary of Pangea LNG B.V. (Pangea LNG), a Netherlands-based company that is developing floating LNG liquefaction and storage solutions around the globe. Pangea LNG’s ordinary shares are owned by Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) (70%), D&H Solutions AS (20%), and ¨ NextDecade International Cooperatief U.A. (NextDecade International) (10%). DSME is a South Korea-based company whose major shareholders consist of Korea Development Bank (31.27%) and Korea Asset Management Corporation (19.11%), with the remaining shares being widely-held (with no individual entities holding five (5) percent or more of DSME’s shares).1 D&H Solutions AS is a Norwegian-based joint venture company that is owned by Hemla II AS (50%) and DSME (50%). NextDecade International is a Netherlands-based cooperative and has six (6) individual investors from the United States, Spain, and The Netherlands. Pangea states that consistent with an executed Letter of Intent, it is working with Statoil North America, Inc. on the development of the ST LNG Project. Statoil North America, Inc. is a subsidiary of Statoil ASA (Statoil), a Norwegian upstream oil and gas company listed on the Oslo and New York stock exchanges. Pangea states that headquartered in Stavanger, Norway, Statoil is an international energy company with 40 years of offshore oil and gas production experience on the Norwegian Continental Shelf and currently has operations in 36 countries. Pangea states that Statoil’s LNG activities include being the operator of the Sn<hvit, and LNG export facility in Norway; exercising its capacity holder rights with respect to the Cove Point import and regasification terminal (in the U.S.); and producing, transporting 1 Pangea LNG states that Treasury shares comprise 1.2% of the total shares of DSME. PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 13331 and marketing LNG worldwide. Pangea states that Statoil has been active in the U.S. oil and gas industry for 25 years. Pangea states that over the past decade, Statoil has increased its North American business substantially through upstream positions in the Gulf of Mexico, acreages in the Marcellus shale gas play, the Eagle Ford shale gas play, the Bakken shale oil play and oil sands acreages in Alberta, Canada. Pangea further states that it and Statoil are in active negotiations with respect to Statoil procuring up to a 50% equity stake in the ST LNG Project and utilizing up to 50% of the liquefaction and export capacity of the ST LNG Project.2 Current Application In the instant Application, Pangea seeks long-term, multi-contract authorization to export domestically produced LNG in an amount up to the equivalent of 398.5 billion cubic feet (Bcf) per year (Bcf/y) of natural gas (equal to 1.09 Bcf/day of natural gas), the equivalent of 8 million metric tons per annum (mtpa), 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. Pangea seeks to export this LNG to any nation with which the United States does not have an FTA requiring national treatment for trade in natural gas or LNG with which trade is not prohibited by United States law or policy. Pangea is seeking this export authorization in conjunction with its proposal to construct, own, and operate the ST LNG Project.3 Pangea states that the ST LNG Project will consist of both land-based and floating components and will include natural gas treatment, compression, liquefaction and storage 2 Should a change in control occur prior to DOE/ FE’s issuance of an order in this proceeding, Pangea will file a supplement to the instant Application to update the relevant applicant information. Pangea acknowledges that in any order granting the authorization requested in the Application, DOE/FE may require that Pangea request approval from the Assistant Secretary for Fossil Energy prior to a change in control of the authorization holder, whether by asset sale, stock transfer or other means. 3 Pangea states: (i) Regulatory approval also must be obtained from the Federal Energy Regulatory Commission (FERC) under Section 3 of the NGA for the siting, construction, and operation of the ST LNG Project and under Section 7 of the NGA for the siting, construction, and operation of an affiliated natural gas pipeline that will bring feed gas and fuel gas to the ST LNG Project; (ii) Pangea will initiate the process to obtain such authorizations in Spring 2013 by requesting authorization from the Director of the Office of Energy Projects to commence the FERC’s mandatory National Environmental Policy Act pre-filing review process for the ST LNG Project and associated pipeline; (iii) the potential environmental impacts of the ST LNG Project, as well as the affiliated pipeline, will be reviewed by FERC in conjunction with that proceeding. E:\FR\FM\27FEN1.SGM 27FEN1 13332 Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Notices facilities, as well as ancillary facilities required to receive and liquefy natural gas, and to store and deliver LNG. Pangea states that the ST LNG Project will be capable of processing an average of approximately 398.5 Bcf/y, approximately 1.09 Bcf/d, of pipelinequality natural gas. Pangea states that such gas will be delivered to the ST LNG Project through an approximately 27-mile-long pipeline, South Texas Pipeline, to be developed by a Pangea affiliate. Pangea intends to interconnect the ST LNG Project with nine interstate and intrastate pipeline systems 4 via the South Texas Pipeline, thereby allowing natural gas to be supplied through displacement or direct access from a wide variety of supply sources. erowe on DSK2VPTVN1PROD with NOTICES Public Interest Considerations Pangea states that the ST LNG Project has been proposed, in part, due to the markedly improved outlook for domestic natural gas reserves and production. Pangea states that improved drilling techniques and extraction technologies have contributed to the rapid growth in new supplies from unconventional gas-bearing formations across the U.S. and have been utilized to enhance production in some conventional fields. Pangea states that such developments have completely changed the complexion of the U.S. natural gas industry and radically expanded the resource base. Pangea states that LNG exports via the ST LNG Project represents a marketdriven path toward deploying the country’s vast energy reserves in a manner that will meaningfully contribute to the public interest through a variety of benefits, including: (1) More jobs 5 and personal income, greater tax 4 Pangea states these nine pipelines are: Texas Eastern Transmission Corporation, Kinder Morgan Tejas Pipeline, LLC, Natural Gas Pipeline Company of America, Transcontinental Gas Pipeline Corporation, Tennessee Gas Pipeline Company, Gulf South Pipeline Company, LP, Crosstex Energy, L.P., GulfTerra Texas Pipeline, LP, and Channel Industries Gas Company. Their total estimated combined throughput is approximately 4.4 Bcf/d. The South Texas Pipeline’s actual interconnects and delivery/receipt points ultimately will be determined in accordance with the needs of the users of the South Texas Pipeline. Significantly, there are various other natural gas pipelines crossed by, or in proximity to, the South Texas Pipeline’s proposed route that may provide additional transportation options if needed. 5 As discussed in the Perryman Report supporting this Application, Pangea asserts that the ST LNG Project will spur substantial job creation. The statement found at page 2 of the NERA Report (‘‘LNG exports are not likely to affect the overall level of employment in the U.S.’’) should not be read to contradict this. http://www.fe.doe.gov/ programs/gasregulation/reports/nera_lng_ report.pdf. NERA had as a base assumption ‘‘full employment’’ within the U.S. economy. NERA Report at 103. Therefore, NERA could only use its VerDate Mar<15>2010 15:18 Feb 26, 2013 Jkt 229001 revenues, and increased economic activity; (2) Improved U.S. balance of payments (by between $3.7 billion and $6 billion annually) through the exportation of natural gas and the displacement of imports of other petroleum liquids; (3) Enhanced national security, as a result of the U.S.’s larger role in international energy markets, assistance provided to our allies, and reduced U.S. dependency on foreign oil and natural gas production; 6 (4) Better opportunities to market U.S. products and services abroad, as a result of new competitively priced gas supplies introduced into world markets leading to improved economies among the U.S.’s trading partners; (5) Increased economic trade and closer ties with foreign trading partners and hemispheric allies, while displacing environmentally damaging fuels in those countries; (6) Increased production capacity able to better adjust to varying domestic demand scenarios; and (7) Dampened volatility in domestic natural gas prices. Pangea submits that these benefits, and others discussed in this Application, demonstrate that Pangea’s export proposal is not inconsistent with the public interest. Pangea states that this stance is now buttressed by the independent NERA Report, which key findings related to the macroeconomic impacts of LNG exports are overwhelmingly positive. Further discussion of the public interest and analysis of the impact of LNG exports is included in the Application and Appendix A of the Application. Environmental Impact Pangea states that it will request NGA Section 3 authorization from FERC so that it may site, construct, and operate the ST LNG Project. Pangea states that it intends to commence the FERC’s mandatory pre-filing process in Spring 2013 and then file its final application to obtain Section 3 authorization in the Fall 2013. Pangea states that its affiliate developing the ST Pipeline will file an application for NGA Section 7(c) authorization to construct, own, and operate the South Texas Pipeline. Pangea states that the potential environmental impacts of the ST LNG Project will be reviewed by FERC under the National Environmental Policy Act (NEPA). Pangea further states that model to assess shifts in employment, which were found to be within industry norms. Id. at 2. 6 John Deutch, The U.S. Natural-Gas Boom Will Transform the World, Wall Street Journal (August 14, 2012), http://online.wsj.com/article/ SB1000142405270230334340457751462246942 6012.html. PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 consistent with the NEPA scheme applicable to applications for authorizations under NGA Section 3 delineated by Congress in the Energy Policy Act of 2005,7 it expects that FERC shall act as the lead agency, with DOE/FE acting as a cooperating agency, in connection with the ST LNG Project. 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 7 Public E:\FR\FM\27FEN1.SGM Law 109–58, 119 Stat. 594. 27FEN1 erowe on DSK2VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Notices 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. 12–184–LNG in the title line; (2) mailing an original and three paper copies of the filing to the Office Natural Gas Regulatory Activities at the address listed in ADDRESSES. The filing must include a reference to FE Docket No. 12–184–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. 12–184–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. 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 Pangea is available for inspection and copying in the Office of Natural Gas Regulatory VerDate Mar<15>2010 15:18 Feb 26, 2013 Jkt 229001 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: http://www.fe.doe.gov/programs/ gasregulation/index.html. Issued in Washington, DC, on February 21, 2013. John A. Anderson, Manager, Natural Gas Regulatory Activities, Office of Oil and Gas Global Security and Supply, Office of Fossil Energy. [FR Doc. 2013–04540 Filed 2–26–13; 8:45 am] BILLING CODE 6450–01–P DEPARTMENT OF ENERGY U.S. Energy Information Administration Agency Information Collection Extension U.S. Energy Information Administration (EIA), Department of Energy (DOE). ACTION: Agency Information Collection Activities: Information Collection Extension; Notice and Request for Comments. AGENCY: SUMMARY: The EIA, pursuant to the Paperwork Reduction Act of 1995, intends to extend for three years with the Office of Management and Budget (OMB), Form FE–746R, ‘‘Natural Gas Imports and Exports.’’ Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Comments regarding this proposed information collection must be received on or before April 29, 2013. If you anticipate difficulty in submitting comments within that period, contact DATES: PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 13333 the person listed in ADDRESSES as soon as possible. ADDRESSES: Send comments to Lisa Tracy. To ensure receipt of the comments by the due date, submission by email (lisa.tracy@hq.doe.gov) is recommended. The mailing address is 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, Attn: Lisa Tracy. Alternatively, Ms. Tracy may be contacted by telephone at (202) 586–4523 or by fax at (202) 586–6050. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection instrument and instructions should be directed to Lisa Tracy at the contact information given above. Forms and instructions are also available on the Internet at: http://www.fe.doe.gov/ programs/gasregulation/ report_guidelines.html. SUPPLEMENTARY INFORMATION: This information collection request contains: (1) OMB No.: 1901–0294; (2) Information Collection Request Title: Natural Gas Imports and Exports; (3) Type of Request: Three-year extension; (4) Purpose: The Federal Energy Administration Act of 1974 (15 U.S.C. 761 et seq.) and the DOE Organization Act (42 U.S.C. 7101 et seq.) require the EIA to carry out a centralized, comprehensive, and unified energy information program. This program collects, evaluates, assembles, analyzes, and disseminates information on energy resource reserves, production, demand, technology, and related economic and statistical information. This information is used to assess the adequacy of energy resources to meet near and longer term domestic demands. The EIA, as part of its effort to comply with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), provides the general public and other Federal agencies with opportunities to comment on collections of energy information conducted by or in conjunction with the EIA. Also, the EIA will later seek approval by the Office of Management and Budget (OMB) under Section 3507(a) of the Paperwork Reduction Act of 1995. DOE’s Office of Fossil Energy (FE) is delegated the authority to regulate natural gas imports and exports under section 3 of the Natural Gas Act of 1938, 15 U.S.C. 717b. In order to carry out its delegated responsibility, FE requires those persons seeking to import or export natural gas to file an application providing basic information on the E:\FR\FM\27FEN1.SGM 27FEN1

Agencies

[Federal Register Volume 78, Number 39 (Wednesday, February 27, 2013)]
[Notices]
[Pages 13330-13333]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04540]


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DEPARTMENT OF ENERGY

[FE Docket No. 12-184-LNG]


Pangea LNG (North America) Holdings, 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 25-Year Period

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of application.

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[[Page 13331]]

SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy 
(DOE) gives notice of receipt of an application (Application) filed on 
December 19, 2012, by Pangea LNG (North America) Holdings, LLC 
(Pangea), requesting long-term, multi-contract authorization to export 
domestically produced liquefied natural gas (LNG) in an amount up to 
the equivalent of 398.5 billion cubic feet (Bcf) per year (Bcf/y) of 
natural gas (equal to 1.09 Bcf/day of natural gas), the equivalent of 8 
million metric tons per annum (mtpa), from its proposed South Texas LNG 
Export Project (ST LNG Project) located at the Port of Corpus Christi 
in Ingleside, Texas. Pangea requests this authorization for a 25-year 
term 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 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) that 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. Pangea 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, April 29, 
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 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 Avenue SW., Washington, DC 20585, (202) 
586-3397.

SUPPLEMENTARY INFORMATION:

Background

    Pangea is a Delaware limited liability company with its principal 
place of business in The Woodlands, Texas. Pangea is a wholly owned 
subsidiary of Pangea LNG B.V. (Pangea LNG), a Netherlands-based company 
that is developing floating LNG liquefaction and storage solutions 
around the globe. Pangea LNG's ordinary shares are owned by Daewoo 
Shipbuilding & Marine Engineering Co., Ltd. (DSME) (70%), D&H Solutions 
AS (20%), and NextDecade International Co[ouml]peratief U.A. 
(NextDecade International) (10%).
    DSME is a South Korea-based company whose major shareholders 
consist of Korea Development Bank (31.27%) and Korea Asset Management 
Corporation (19.11%), with the remaining shares being widely-held (with 
no individual entities holding five (5) percent or more of DSME's 
shares).\1\ D&H Solutions AS is a Norwegian-based joint venture company 
that is owned by Hemla II AS (50%) and DSME (50%). NextDecade 
International is a Netherlands-based cooperative and has six (6) 
individual investors from the United States, Spain, and The 
Netherlands.
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    \1\ Pangea LNG states that Treasury shares comprise 1.2% of the 
total shares of DSME.
---------------------------------------------------------------------------

    Pangea states that consistent with an executed Letter of Intent, it 
is working with Statoil North America, Inc. on the development of the 
ST LNG Project. Statoil North America, Inc. is a subsidiary of Statoil 
ASA (Statoil), a Norwegian upstream oil and gas company listed on the 
Oslo and New York stock exchanges. Pangea states that headquartered in 
Stavanger, Norway, Statoil is an international energy company with 40 
years of offshore oil and gas production experience on the Norwegian 
Continental Shelf and currently has operations in 36 countries. Pangea 
states that Statoil's LNG activities include being the operator of the 
Sn[oslash]hvit, and LNG export facility in Norway; exercising its 
capacity holder rights with respect to the Cove Point import and 
regasification terminal (in the U.S.); and producing, transporting and 
marketing LNG worldwide. Pangea states that Statoil has been active in 
the U.S. oil and gas industry for 25 years. Pangea states that over the 
past decade, Statoil has increased its North American business 
substantially through upstream positions in the Gulf of Mexico, 
acreages in the Marcellus shale gas play, the Eagle Ford shale gas 
play, the Bakken shale oil play and oil sands acreages in Alberta, 
Canada. Pangea further states that it and Statoil are in active 
negotiations with respect to Statoil procuring up to a 50% equity stake 
in the ST LNG Project and utilizing up to 50% of the liquefaction and 
export capacity of the ST LNG Project.\2\
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    \2\ Should a change in control occur prior to DOE/FE's issuance 
of an order in this proceeding, Pangea will file a supplement to the 
instant Application to update the relevant applicant information. 
Pangea acknowledges that in any order granting the authorization 
requested in the Application, DOE/FE may require that Pangea request 
approval from the Assistant Secretary for Fossil Energy prior to a 
change in control of the authorization holder, whether by asset 
sale, stock transfer or other means.
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Current Application

    In the instant Application, Pangea seeks long-term, multi-contract 
authorization to export domestically produced LNG in an amount up to 
the equivalent of 398.5 billion cubic feet (Bcf) per year (Bcf/y) of 
natural gas (equal to 1.09 Bcf/day of natural gas), the equivalent of 8 
million metric tons per annum (mtpa), 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. Pangea seeks to 
export this LNG to any nation with which the United States does not 
have an FTA requiring national treatment for trade in natural gas or 
LNG with which trade is not prohibited by United States law or policy. 
Pangea is seeking this export authorization in conjunction with its 
proposal to construct, own, and operate the ST LNG Project.\3\ Pangea 
states that the ST LNG Project will consist of both land-based and 
floating components and will include natural gas treatment, 
compression, liquefaction and storage

[[Page 13332]]

facilities, as well as ancillary facilities required to receive and 
liquefy natural gas, and to store and deliver LNG. Pangea states that 
the ST LNG Project will be capable of processing an average of 
approximately 398.5 Bcf/y, approximately 1.09 Bcf/d, of pipeline-
quality natural gas. Pangea states that such gas will be delivered to 
the ST LNG Project through an approximately 27-mile-long pipeline, 
South Texas Pipeline, to be developed by a Pangea affiliate. Pangea 
intends to interconnect the ST LNG Project with nine interstate and 
intrastate pipeline systems \4\ via the South Texas Pipeline, thereby 
allowing natural gas to be supplied through displacement or direct 
access from a wide variety of supply sources.
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    \3\ Pangea states: (i) Regulatory approval also must be obtained 
from the Federal Energy Regulatory Commission (FERC) under Section 3 
of the NGA for the siting, construction, and operation of the ST LNG 
Project and under Section 7 of the NGA for the siting, construction, 
and operation of an affiliated natural gas pipeline that will bring 
feed gas and fuel gas to the ST LNG Project; (ii) Pangea will 
initiate the process to obtain such authorizations in Spring 2013 by 
requesting authorization from the Director of the Office of Energy 
Projects to commence the FERC's mandatory National Environmental 
Policy Act pre-filing review process for the ST LNG Project and 
associated pipeline; (iii) the potential environmental impacts of 
the ST LNG Project, as well as the affiliated pipeline, will be 
reviewed by FERC in conjunction with that proceeding.
    \4\ Pangea states these nine pipelines are: Texas Eastern 
Transmission Corporation, Kinder Morgan Tejas Pipeline, LLC, Natural 
Gas Pipeline Company of America, Transcontinental Gas Pipeline 
Corporation, Tennessee Gas Pipeline Company, Gulf South Pipeline 
Company, LP, Crosstex Energy, L.P., GulfTerra Texas Pipeline, LP, 
and Channel Industries Gas Company. Their total estimated combined 
throughput is approximately 4.4 Bcf/d. The South Texas Pipeline's 
actual interconnects and delivery/receipt points ultimately will be 
determined in accordance with the needs of the users of the South 
Texas Pipeline. Significantly, there are various other natural gas 
pipelines crossed by, or in proximity to, the South Texas Pipeline's 
proposed route that may provide additional transportation options if 
needed.
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Public Interest Considerations

    Pangea states that the ST LNG Project has been proposed, in part, 
due to the markedly improved outlook for domestic natural gas reserves 
and production. Pangea states that improved drilling techniques and 
extraction technologies have contributed to the rapid growth in new 
supplies from unconventional gas-bearing formations across the U.S. and 
have been utilized to enhance production in some conventional fields. 
Pangea states that such developments have completely changed the 
complexion of the U.S. natural gas industry and radically expanded the 
resource base.
    Pangea states that LNG exports via the ST LNG Project represents a 
market-driven path toward deploying the country's vast energy reserves 
in a manner that will meaningfully contribute to the public interest 
through a variety of benefits, including: (1) More jobs \5\ and 
personal income, greater tax revenues, and increased economic activity; 
(2) Improved U.S. balance of payments (by between $3.7 billion and $6 
billion annually) through the exportation of natural gas and the 
displacement of imports of other petroleum liquids; (3) Enhanced 
national security, as a result of the U.S.'s larger role in 
international energy markets, assistance provided to our allies, and 
reduced U.S. dependency on foreign oil and natural gas production; \6\ 
(4) Better opportunities to market U.S. products and services abroad, 
as a result of new competitively priced gas supplies introduced into 
world markets leading to improved economies among the U.S.'s trading 
partners; (5) Increased economic trade and closer ties with foreign 
trading partners and hemispheric allies, while displacing 
environmentally damaging fuels in those countries; (6) Increased 
production capacity able to better adjust to varying domestic demand 
scenarios; and (7) Dampened volatility in domestic natural gas prices.
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    \5\ As discussed in the Perryman Report supporting this 
Application, Pangea asserts that the ST LNG Project will spur 
substantial job creation. The statement found at page 2 of the NERA 
Report (``LNG exports are not likely to affect the overall level of 
employment in the U.S.'') should not be read to contradict this. 
http://www.fe.doe.gov/programs/gasregulation/reports/nera_lng_report.pdf. NERA had as a base assumption ``full employment'' within 
the U.S. economy. NERA Report at 103. Therefore, NERA could only use 
its model to assess shifts in employment, which were found to be 
within industry norms. Id. at 2.
    \6\ John Deutch, The U.S. Natural-Gas Boom Will Transform the 
World, Wall Street Journal (August 14, 2012), http://online.wsj.com/article/SB10001424052702303343404577514622469426012.html.
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    Pangea submits that these benefits, and others discussed in this 
Application, demonstrate that Pangea's export proposal is not 
inconsistent with the public interest. Pangea states that this stance 
is now buttressed by the independent NERA Report, which key findings 
related to the macroeconomic impacts of LNG exports are overwhelmingly 
positive.
    Further discussion of the public interest and analysis of the 
impact of LNG exports is included in the Application and Appendix A of 
the Application.

Environmental Impact

    Pangea states that it will request NGA Section 3 authorization from 
FERC so that it may site, construct, and operate the ST LNG Project. 
Pangea states that it intends to commence the FERC's mandatory pre-
filing process in Spring 2013 and then file its final application to 
obtain Section 3 authorization in the Fall 2013. Pangea states that its 
affiliate developing the ST Pipeline will file an application for NGA 
Section 7(c) authorization to construct, own, and operate the South 
Texas Pipeline.
    Pangea states that the potential environmental impacts of the ST 
LNG Project will be reviewed by FERC under the National Environmental 
Policy Act (NEPA). Pangea further states that consistent with the NEPA 
scheme applicable to applications for authorizations under NGA Section 
3 delineated by Congress in the Energy Policy Act of 2005,\7\ it 
expects that FERC shall act as the lead agency, with DOE/FE acting as a 
cooperating agency, in connection with the ST LNG Project.
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    \7\ Public Law 109-58, 119 Stat. 594.
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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

[[Page 13333]]

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. 12-184-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office Natural Gas Regulatory Activities at the 
address listed in ADDRESSES. The filing must include a reference to FE 
Docket No. 12-184-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. 12-184-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.
    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 Pangea 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: http://www.fe.doe.gov/programs/gasregulation/index.html.

    Issued in Washington, DC, on February 21, 2013.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2013-04540 Filed 2-26-13; 8:45 am]
BILLING CODE 6450-01-P