Sabine Pass Liquefaction, 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, 8698-8701 [2014-03162]
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Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
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Dated: February 10, 2014.
Michael K. Yudin,
Acting Assistant, Secretary for Special
Education and Rehabilitative Services.
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
[FE Docket No. 13–121–LNG]
Sabine Pass Liquefaction, 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:
The Office of Fossil Energy
(FE) of the Department of Energy (DOE)
gives notice of receipt of an application
(Application) filed on September 10,
2013, by Sabine Pass Liquefaction, LLC
(SPL), requesting long-term
authorization to export liquefied natural
gas (LNG) produced from domestic
sources in a volume equivalent to
approximately 314 billion cubic feet per
year of natural gas (Bcf/yr). SPL requests
authorization to export the LNG for a
20-year term from the Sabine Pass LNG
Terminal in Cameron Parish, Louisiana.
In the portion of SPL’s Application
subject to this Notice, SPL seeks
authorization under § 3(a) of the Natural
Gas Act (NGA), 15 U.S.C. 717b(a), to
export LNG to any country with which
the United States does not have a free
trade agreement (FTA) requiring
national treatment for trade in natural
gas (non-FTA countries), and with
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SUMMARY:
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Regular Mail
U.S. Department of Energy (FE–34),
Office of Oil and Gas Global Security
and Supply, Office of Fossil Energy,
P.O. Box 44375, Washington, DC 20026–
4375.
Hand Delivery or Private Delivery
Services (e.g., FedEx, UPS, etc.)
[FR Doc. 2014–03209 Filed 2–12–14; 8:45 am]
ACTION:
which trade is not prohibited by U.S.
law or policy.1 SPL seeks to export this
LNG on its own behalf and as agent for
other entities who hold title to the LNG
at the time of export. SPL requests that
this authorization commence on the
earlier of the date of first export or eight
years from the date the authorization is
issued.
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 14,
2014.
ADDRESSES: Electronic Filing by email:
fergas@hq.doe.gov.
U.S. Department of Energy (FE–34),
Office of Oil and Gas Global Security
and Supply, 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 Oil and Gas Global Security and
Supply, 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
Avenue SW., Washington, DC 20585,
(202) 586–3397.
SUPPLEMENTARY INFORMATION:
Background
SPL states that, together with its
affiliate, Sabine Pass LNG, L.P. (Sabine
Pass LNG), it is developing a
1 In its Application, SPL also requested
authorization to export LNG to any nation that
currently has, or in the future develops into, a FTA
requiring national treatment for trade in natural gas
(FTA countries). On January 22, 2014, DOE/FE
granted that portion of SPL’s Application pursuant
to NGA § 3(c), 15 U.S.C. 717b(c). See Sabine Pass
Liquefaction, LLC, DOE/FE Order No. 3384, Order
Granting Long-Term, Multi-Contract Authorization
to Export Liquefied Natural Gas by Vessel from the
Sabine Pass LNG Terminal to Free Trade Agreement
Nations (Jan. 22, 2014).
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liquefaction project consisting of four
LNG production trains (Trains 1 through
4) located at the Sabine Pass LNG
Terminal (Liquefaction Project).2
Additionally, SPL states that it has
announced plans to construct two
additional LNG production trains—
Trains 5 and 6 (Liquefaction Expansion
Project)—for a total of six trains.
Applicant. SPL, a limited liability
company with its principal place of
business in Houston, Texas, is an
indirect subsidiary of Cheniere Energy
Partners, L.P. (Cheniere Partners).
Cheniere Partners is a Delaware limited
partnership owned by Cheniere Energy,
Inc. (Cheniere Energy), with its primary
place of business in Houston, Texas.
Cheniere Energy is a Delaware
corporation with its primary place of
business in Houston, Texas. Cheniere
Energy is developing the Sabine Pass
LNG Terminal in Louisiana, as well as
other LNG terminals and natural gas
pipelines on the Gulf Coast. SPL states
that it is authorized to do business in
the States of Texas and Louisiana.
Procedural History. SPL provides an
overview of the history and/or existing
authorizations associated with the
Liquefaction Project and proposed
Liquefaction Expansion Project, which
is summarized as follows:
On September 7, 2010, DOE/FE issued
DOE/FE Order No. 2833, in which it
authorized SPL to export LNG from the
Sabine Pass LNG Terminal to FTA
nations in a volume totaling 803 Bcf/yr
of natural gas (2.2 Bcf per day (Bcf/d)).3
Subsequently, on April 16, 2012, the
Federal Energy Regulatory Commission
(FERC) authorized the construction and
operation of the Liquefaction Project.4
SPL notes that Trains 1 through 4 are
currently under construction.
On August 7, 2012, in DOE/FE Order
No. 2961–A, DOE/FE granted final
authorization to SPL to export LNG from
the Sabine Pass LNG Terminal to nonFTA countries in a volume equivalent to
approximately 803 Bcf/yr of natural gas
(2.2 Bcf/d).5 Therefore, the total, non2 SPL states that the Sabine Pass LNG Terminal
is currently being used for the import, storage, and
vaporization of LNG.
3 Sabine Pass Liquefaction, LLC, DOE/FE Order
No. 2833, Order Granting Long-Term Authorization
to Export Liquefied Natural Gas from Sabine Pass
LNG Terminal to Free Trade Nations (Sept. 7, 2010).
4 Sabine Pass Liquefaction, LLC & Sabine Pass
LNG, L.P., 139 FERC ¶ 61,039 (2012), reh’g denied,
140 FERC ¶ 61,076 (2012).
5 Sabine Pass Liquefaction, LLC, DOE/FE Order
No. 2961–A, Final Opinion and Order Granting
Long-Term Authorization to Export Liquefied
Natural Gas from Sabine Pass LNG Terminal to
Non-Free Trade Agreement Nations (Aug. 7, 2012).
This order finalized the conditional authorization
granted to SPL in DOE/FE Order No. 2961, dated
May 20, 2011, to export domestically produced
LNG from the Sabine Pass LNG Terminal to nonFTA nations.
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Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
additive volume of LNG authorized in
both DOE/FE Order No. 2833 (FTA) and
No. 2961–A (non-FTA) is equivalent to
803 Bcf/yr of natural gas.
On February 27, 2013, SPL and its
affiliates (Sabine Pass LNG and Sabine
Pass Liquefaction Expansion, LLC)
sought authorization from FERC to
initiate the pre-filing review process for
the Liquefaction Expansion Project,
which would consist of siting,
constructing, and operating Trains 5 and
6.6 SPL states that the peak combined
LNG production capacity of Trains 5
and 6 is estimated to be 503 Bcf/yr of
natural gas, or 251.5 Bcf/yr for each
train.
Most recently, DOE/FE granted SPL
two additional long-term export
authorizations to FTA countries. First,
on July 11, 2013, in DOE/FE Order No.
3306, DOE/FE authorized SPL to export
LNG in a volume equivalent to 101 Bcf/
yr of natural gas, pursuant to a LNG Sale
and Purchase Agreement (SPA) with
Total Gas & Power North America, Inc.
(TGPNA).7 Second, on July 12, 2013, in
DOE/FE Order No. 3307, DOE/FE issued
a similar authorization in a volume
equivalent to 88.3 Bcf/yr of natural gas,
pursuant to a SPA with Centrica plc
(Centrica).8 SPL’s applications for nonFTA export authorization under the
terms of its SPAs with TGPNA and
Centrica are pending in DOE/FE Docket
Nos. 13–30–LNG and 13–42–LNG,
respectively.
Current Application
In this Application, SPL requests
long-term authorization to export any
surplus LNG from the Sabine Pass LNG
Terminal to both FTA and non-FTA
countries—specifically, any volume of
natural gas produced from Trains 5 and
6 that is not already committed for
export under its SPAs with TGPNA and
Centrica, in an amount not to exceed the
equivalent of 314 Bcf/yr of natural gas
for the requested 20-year term.9 DOE/FE
recently granted the FTA portion of
SPL’s Application in DOE/FE Order No.
3348, pursuant to NGA section 3(c), 15
6 See
FERC Docket No. PF13–8–000.
Pass Liquefaction, LLC, DOE/FE Order
No. 3306, Order Granting Authorization to Export
Liquefied Natural Gas by Vessel Pursuant to the
Long-Term Contract with Total Gas & Power North
America, Inc. from the Sabine Pass LNG Terminal
to Free Trade Agreement Nations (July 11, 2013).
8 Sabine Pass Liquefaction, LLC, DOE/FE Order
No. 3307, Order Granting Authorization to Export
Liquefied Natural Gas by Vessel Pursuant to the
Long-Term Contract with Centrica plc from the
Sabine Pass LNG Terminal to Free Trade Agreement
Nations (July 12, 2013).
9 SPL states that its obligation to deliver LNG
under the two SPAs will arise when the fifth LNG
train becomes commercially operable. SPL also
states, however, that its delivery obligations under
its SPAs are not tied to individual LNG trains.
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U.S.C. 717b(c).10 The portion of SPL’s
Application that seeks authorization to
export domestically produced LNG to
non-FTA countries will be reviewed
pursuant to NGA section 3(a), 15 U.S.C.
717b(a), and is the subject of this Notice.
SPL seeks authorization to export the
LNG for a 20-year term, commencing on
the earlier of the date of first export or
eight years from the date the
authorization is issued. SPL is
requesting this authorization to export
LNG on its own behalf and as agent for
other parties who will hold title to the
LNG at the time of export. SPL states
that it will comply with all DOE/FE
requirements for exporters and agents,
including registration requirements
articulated in recent DOE/FE orders.
SPL states that it intends to purchase
natural gas to be used as fuel and
feedstock for LNG production from the
interstate and intrastate grid at points of
interconnection with other pipelines
and with points of liquidity, both
upstream and downstream of the
Cheniere Creole Trail Pipeline system
and other systems that interconnect
with the Liquefaction Expansion
Project. SPL anticipates that the
Liquefaction Expansion Project will
have access to multiple interstate and
intrastate pipeline systems, enabling it
to purchase natural gas from
conventional and unconventional basins
across the Gulf Coast region and
throughout the United States. SPL notes
that this supply of natural gas can be
sourced in large volumes in the spot
market or pursued under long-term
arrangements. SPL states that, to date, it
has not entered into any purchase
agreements for the purpose of supplying
natural gas feedstock for the proposed
exports.
Additionally, SPL states that it has
not yet entered into any long-term gas
supply or export agreements in
connection with the proposed exports.
According to SPL, it is not submitting
transaction-specific information at this
time, but states that it will file, or cause
to be filed, the transaction-specific
information (e.g., long-term supply and/
or export agreements) requested in
Section 590.202(b) of DOE/FE’s
regulations (10 CFR 590.202(b)),
consistent with DOE/FE precedent.11
Citing Section 590.402 of DOE’s
regulations,12 SPL requests that DOE/FE
grant its Application and issue a
10 See
supra n.1
at 8–9 (citing Lake Charles Exports, LLC,
DOE/FE Order No. 3324, Order Conditionally
Granting Long-Term Multi-Contract Authorization
to Export Liquefied Natural Gas by Vessel From the
Lake Charles Terminal to Non-Free Trade
Agreement Nations (Aug. 7, 2013)).
12 10 CFR 590.402.
11 App.
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8699
conditional non-FTA export
authorization before March 31, 2014,
followed by issuance of a final order
immediately upon FERC’s completion of
the environmental review of the
Liquefaction Expansion Project by
FERC, as discussed below.
Public Interest Considerations
SPL states that DOE/FE should grant
the requested authorization because
there is ample evidence in the public
record that exports of LNG, such as
those proposed by SPL in the
Application, are in the public interest.
According to SPL, DOE/FE previously
determined that LNG exports from the
Liquefaction Project were in the public
interest when it issued Orders No. 2961
and 2961–A—the conditional and final
non-FTA authorizations issued to SPL
and discussed above. SPL states that, in
granting those orders in FE Docket No.
10–111–LNG, DOE/FE pointed to
market studies and other evidence that
SPL submitted in the proceeding, which
(according to SPL) demonstrated the
substantial economic and public
benefits that are likely to follow from
exports of natural gas as LNG. SPL
asserts that the same rationale applies
here to show the public benefits
associated with the proposed exports. It
therefore incorporates by reference the
record in its earlier non-FTA
proceeding. SPL also references the
macroeconomic study commissioned by
DOE and conducted by NERA Economic
Consulting in 2012 (NERA Study),13 as
well as letters from members of the
United States Congress submitted in
response to the NERA Study, which SPL
states expressed their approval of the
export of domestic natural gas as LNG.
Finally, SPL states that, because it
intends to sell natural gas from Trains
5 and 6 the Liquefaction Expansion
Project under contractual arrangements
that will be priced competitively with
domestic natural gas, it will satisfy the
public interest standard as set forth in
DOE’s Policy Guidelines.14
Next, SPL points to the current
supply/demand balance of natural gas
in the United States in asserting that the
proposed exports will not impinge on
any national or regional need for the
gas. SPL addresses these issues in
Appendix B to the Application, entitled
‘‘Further Discussion of the Projected
Need for the Natural Gas to be
13 NERA Economic Consulting, Macroeconomic
Impacts of LNG Exports from the United States
(Dec. 3, 2012), available at https://energy.gov/sites/
prod/files/2013/04/f0/nera_lng_report.pdf [NERA
Study].
14 Policy Guidelines & Delegation Orders Relating
to the Regulation of Imported Natural Gas, 49 FR
6684 (Feb. 22, 1984).
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Exported.’’ Specifically, SPL states as
follows:
(1) The Liquefaction Expansion
Project supports and encourages the
continued development of natural gas
resources during times when domestic
prices of natural gas are depressed, and
subsidizes the production of a quantity
of natural gas that can be deployed on
short notice when and if market prices
induce the cancellation of the export of
LNG cargoes, thereby mitigating
volatility that would otherwise arise and
ensuring that domestic supplies will be
available over the duration of
commodity market cycles.
(2) SPL previously commissioned a
report from Advanced Resources
International (ARI), entitled U.S.
Natural Gas Resources and Productive
Capacity: Mid-2012 (ARI Resource
Report), to assess the scope of domestic
natural gas resources and its potential
for future recovery. SPL states that the
ARI Resource Report demonstrates that
the United States has significant natural
gas resources available to meet projected
future domestic needs, including the
quantities contemplated for export
under this Application. SPL further
states that the ARI Resource Report
establishes that the availability of new
natural gas reserves is likely to continue
expanding into the future, as new
unconventional formations are
discovered and the oil and gas industry
continues to improve drilling and
extraction techniques.
(3) SPL states that the United States
Energy Information Administration’s
(EIA) Annual Energy Outlook 2013
(AEO 2013) supports the assumption
that the domestic natural gas resource
base continues to expand rapidly.
According to SPL, AEO 2013 forecasts
that domestic dry natural gas
production will increase by an average
of 1.3% per year through 2040. SPL
states that AEO 2013 also predicts U.S.
dry natural gas production will total
33.14 trillion cubic feet (Tcf) by 2040, a
44.1% increase from production levels
of 23.0 Tcf in 2011. SPL further notes
that the AEO 2013 Reference Case
projects that domestic demand growth
for natural gas will average 0.7%
annually through 2040, with domestic
demand projected to expand to 29.54
Tcf (80.9 Bcf/d) by 2040. According to
SPL, over this same period of time,
domestic natural gas production is
projected to grow by 1.3% per year on
average, or approximately twice the rate
of growth in domestic natural gas
demand. SPL cites AEO 2013 in stating
the United States will become a net
exporter of natural gas after 2020.
In summary, SPL states that domestic
natural gas resources are currently
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available for export and will not
interfere with the public interest. SPL
cites the ARI Resource Report, EIA’s
AEO 2013, and other publicly-available
information in stating that the United
States has sufficient natural gas
resources available at modest prices to
meet projected domestic demand over
the next 25 years. According to SPL,
these reports indicate that the
availability of new natural gas reserves
is likely to continue expanding in the
future, as new unconventional
formations are discovered and drilling
and extraction techniques are improved.
SPL maintains that this anticipated
future surplus of deliverable supply, in
excess of domestic need, demonstrates
that the resources proposed for export
by SPL from the Liquefaction Expansion
Project are not required to meet
domestic need.
Additional details can be found in
Appendix B of the Application, which
has been posted at https://www.fossil.
energy.gov/programs/gasregulation/
authorizations/2013_applications/13_
121_lng_fta1.pdf.
Environmental Impact
SPL states that the potential
environmental impact of the
Liquefaction Expansion Project will be
reviewed by FERC as the lead agency for
the purposes of coordinating all
applicable federal authorizations and
complying with the National
Environmental Policy Act (NEPA). SPL
anticipates that DOE/FE will participate
as a cooperating agency in FERC’s
environmental review process. SPL
maintains that DOE/FE has adopted
regulations of the Council on
Environmental Quality (CEQ) that
govern its role as a cooperating agency
in the NEPA process, and that these
regulations require DOE to cooperate
with the other agencies in developing
environmental information. Finally, SPL
states that CEQ’s regulations further
provide for DOE/FE to adopt FERC’s
findings, so long as FERC has
satisfactorily addressed any comments
raised by DOE/FE in its role as a
cooperating agency.
DOE/FE Evaluation
The Application will be reviewed
pursuant to section 3(a) of the NGA, 15
U.S.C. 717b(a). In reviewing the
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 on domestic need
for the gas proposed for export,
adequacy of domestic natural gas
supply, U.S. energy security, and the
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cumulative impact of the requested
authorization and any other LNG export
application(s) previously approved on
domestic natural gas supply and
demand fundamentals. DOE will also
consider other relevant 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 address
these issues in their comments and/or
protests, as well as 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 Applicant, 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. 13–121–LNG in the title
line; (2) mailing an original and three
paper copies of the filing to the Office
Oil and Gas Global Security and Supply
at the address listed in ADDRESSES; or (3)
hand delivering an original and three
paper copies of the filing to the Office
of Oil and Gas Global Security and
Supply at the address listed in
ADDRESSES before 4:30 p.m. EST. All
filings must include a reference to FE
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Docket No. 13–121–LNG. Please Note: If
submitting a filing via email, please
include all related documents and
attachments (e.g., exhibits) in the
original email correspondence. Please
do not include any active hyperlinks or
password protection in any of the
documents or attachments related to the
filing. All electronic filings submitted to
DOE must follow these guidelines to
ensure that all documents are filed in a
timely manner. Any hardcopy filing
submitted greater in length than 50
pages must also include, at the time of
the filing, a digital copy on disk of the
entire submission.
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 is available for
inspection and copying in the Office of
Oil and Gas Global Security and Supply
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:
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AGENCY:
This notice announces the
Environmental Protection Agency’s
(EPA) approval of the City of Grand
Rapids’ request to revise its General
Pretreatment Regulations for Existing
and New Sources of Pollution EPAauthorized program to allow electronic
reporting.
DATES: EPA’s approval is effective
February 13, 2014.
FOR FURTHER INFORMATION CONTACT:
Karen Seeh, U.S. Environmental
Protection Agency, Office of
Environmental Information, Mail Stop
2823T, 1200 Pennsylvania Avenue NW.,
Washington, DC 20460, (202) 566–1175,
seeh.karen@epa.gov.
SUPPLEMENTARY INFORMATION: On
October 13, 2005, the final Cross-Media
Electronic Reporting Rule (CROMERR)
was published in the Federal Register
(70 FR 59848) and codified as part 3 of
title 40 of the CFR. CROMERR
establishes electronic reporting as an
acceptable regulatory alternative to
paper reporting and establishes
requirements to assure that electronic
documents are as legally dependable as
their paper counterparts. Subpart D of
CROMERR requires that state, tribal or
local government agencies that receive,
or wish to begin receiving electronic
reports under their EPA-authorized
programs must apply to EPA for a
revision or modification of those
programs and obtain EPA approval.
Subpart D provides standards for such
approvals based on consideration of the
electronic document receiving systems
that the state, tribe, or local government
will use to implement the electronic
reporting. Additionally, § 3.1000(b)
through (e) of 40 CFR part 3, subpart D
provides special procedures for program
revisions and modifications to allow
electronic reporting to be used at the
option of the state, tribe or local
government in place of procedures
available under existing programspecific authorization regulations. An
application submitted under the subpart
D procedures must show that the state,
tribe or local government has sufficient
legal authority to implement the
electronic reporting components of the
programs covered by the application
and will use electronic document
receiving systems that meet the
applicable subpart D requirements.
On October 23, 2012, the City of
Grand Rapids Environmental Services
Department (Grand Rapids ESD)
submitted an application titled
‘‘LinkoExchange System’’ for revision of
its EPA-authorized authorized part 403
program under title 40 CFR. EPA
reviewed Grand Rapids ESD’s request to
revise its EPA-authorized part 403—
General Pretreatment Regulations for
Existing and New Sources of Pollution
program and, based on this review, EPA
determined that the application met the
standards for approval of authorized
program revision set out in 40 CFR part
3, subpart D. In accordance with 40 CFR
3.1000(d), this notice of EPA’s decision
to approve Grand Rapids ESD’s request
to revise its Part 403—General
Pretreatment Regulations for Existing
and New Sources of Pollution program
to allow electronic reporting under 40
CFR part 403 is being published in the
Federal Register.
Grand Rapids ESD was notified of
EPA’s determination to approve its
application with respect to the
authorized program listed above.
Dated: January 30, 2014.
Andrew Battin,
Director, Office of Information Collection.
https://www.fe.doe.gov/programs/
gasregulation/.
Issued in Washington, DC, on February 7,
2014.
John A. Anderson,
Director, Division of Natural Gas Regulatory
Activities, Office of Oil and Gas Global
Security and Supply, Office of Oil and
Natural Gas.
[FR Doc. 2014–03162 Filed 2–12–14; 8:45 am]
BILLING CODE 6450–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–9906–69–OEI]
Cross-Media Electronic Reporting:
Authorized Program Revision
Approval, City of Grand Rapids,
Michigan
Environmental Protection
Agency (EPA).
ACTION: Notice.
SUMMARY:
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
[FR Doc. 2014–03178 Filed 2–12–14; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–9906–63–OAR]
Notification of a Public Meeting of the
Clean Air Scientific Advisory
Committee (CASAC) Oxides of
Nitrogen Primary NAAQS Review Panel
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
The Environmental Protection
Agency (EPA) Science Advisory Board
(SAB) Staff Office announces a public
SUMMARY:
E:\FR\FM\13FEN1.SGM
13FEN1
Agencies
[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8698-8701]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03162]
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DEPARTMENT OF ENERGY
[FE Docket No. 13-121-LNG]
Sabine Pass Liquefaction, 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
September 10, 2013, by Sabine Pass Liquefaction, LLC (SPL), requesting
long-term authorization to export liquefied natural gas (LNG) produced
from domestic sources in a volume equivalent to approximately 314
billion cubic feet per year of natural gas (Bcf/yr). SPL requests
authorization to export the LNG for a 20-year term from the Sabine Pass
LNG Terminal in Cameron Parish, Louisiana. In the portion of SPL's
Application subject to this Notice, SPL seeks authorization under Sec.
3(a) of the Natural Gas Act (NGA), 15 U.S.C. 717b(a), to export LNG to
any country with which the United States does not have a free trade
agreement (FTA) requiring national treatment for trade in natural gas
(non-FTA countries), and with which trade is not prohibited by U.S. law
or policy.\1\ SPL seeks to export this LNG on its own behalf and as
agent for other entities who hold title to the LNG at the time of
export. SPL requests that this authorization commence on the earlier of
the date of first export or eight years from the date the authorization
is issued.
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\1\ In its Application, SPL also requested authorization to
export LNG to any nation that currently has, or in the future
develops into, a FTA requiring national treatment for trade in
natural gas (FTA countries). On January 22, 2014, DOE/FE granted
that portion of SPL's Application pursuant to NGA Sec. 3(c), 15
U.S.C. 717b(c). See Sabine Pass Liquefaction, LLC, DOE/FE Order No.
3384, Order Granting Long-Term, Multi-Contract Authorization to
Export Liquefied Natural Gas by Vessel from the Sabine Pass LNG
Terminal to Free Trade Agreement Nations (Jan. 22, 2014).
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 14,
---------------------------------------------------------------------------
2014.
ADDRESSES: Electronic Filing by email: fergas@hq.doe.gov.
Regular Mail
U.S. Department of Energy (FE-34), Office of Oil and Gas Global
Security and Supply, 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 Oil and Gas Global
Security and Supply, 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 Oil and Gas Global Security and Supply, 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 Avenue SW., Washington, DC 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
SPL states that, together with its affiliate, Sabine Pass LNG, L.P.
(Sabine Pass LNG), it is developing a liquefaction project consisting
of four LNG production trains (Trains 1 through 4) located at the
Sabine Pass LNG Terminal (Liquefaction Project).\2\ Additionally, SPL
states that it has announced plans to construct two additional LNG
production trains--Trains 5 and 6 (Liquefaction Expansion Project)--for
a total of six trains.
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\2\ SPL states that the Sabine Pass LNG Terminal is currently
being used for the import, storage, and vaporization of LNG.
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Applicant. SPL, a limited liability company with its principal
place of business in Houston, Texas, is an indirect subsidiary of
Cheniere Energy Partners, L.P. (Cheniere Partners). Cheniere Partners
is a Delaware limited partnership owned by Cheniere Energy, Inc.
(Cheniere Energy), with its primary place of business in Houston,
Texas. Cheniere Energy is a Delaware corporation with its primary place
of business in Houston, Texas. Cheniere Energy is developing the Sabine
Pass LNG Terminal in Louisiana, as well as other LNG terminals and
natural gas pipelines on the Gulf Coast. SPL states that it is
authorized to do business in the States of Texas and Louisiana.
Procedural History. SPL provides an overview of the history and/or
existing authorizations associated with the Liquefaction Project and
proposed Liquefaction Expansion Project, which is summarized as
follows:
On September 7, 2010, DOE/FE issued DOE/FE Order No. 2833, in which
it authorized SPL to export LNG from the Sabine Pass LNG Terminal to
FTA nations in a volume totaling 803 Bcf/yr of natural gas (2.2 Bcf per
day (Bcf/d)).\3\
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\3\ Sabine Pass Liquefaction, LLC, DOE/FE Order No. 2833, Order
Granting Long-Term Authorization to Export Liquefied Natural Gas
from Sabine Pass LNG Terminal to Free Trade Nations (Sept. 7, 2010).
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Subsequently, on April 16, 2012, the Federal Energy Regulatory
Commission (FERC) authorized the construction and operation of the
Liquefaction Project.\4\ SPL notes that Trains 1 through 4 are
currently under construction.
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\4\ Sabine Pass Liquefaction, LLC & Sabine Pass LNG, L.P., 139
FERC ] 61,039 (2012), reh'g denied, 140 FERC ] 61,076 (2012).
---------------------------------------------------------------------------
On August 7, 2012, in DOE/FE Order No. 2961-A, DOE/FE granted final
authorization to SPL to export LNG from the Sabine Pass LNG Terminal to
non-FTA countries in a volume equivalent to approximately 803 Bcf/yr of
natural gas (2.2 Bcf/d).\5\ Therefore, the total, non-
[[Page 8699]]
additive volume of LNG authorized in both DOE/FE Order No. 2833 (FTA)
and No. 2961-A (non-FTA) is equivalent to 803 Bcf/yr of natural gas.
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\5\ Sabine Pass Liquefaction, LLC, DOE/FE Order No. 2961-A,
Final Opinion and Order Granting Long-Term Authorization to Export
Liquefied Natural Gas from Sabine Pass LNG Terminal to Non-Free
Trade Agreement Nations (Aug. 7, 2012). This order finalized the
conditional authorization granted to SPL in DOE/FE Order No. 2961,
dated May 20, 2011, to export domestically produced LNG from the
Sabine Pass LNG Terminal to non-FTA nations.
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On February 27, 2013, SPL and its affiliates (Sabine Pass LNG and
Sabine Pass Liquefaction Expansion, LLC) sought authorization from FERC
to initiate the pre-filing review process for the Liquefaction
Expansion Project, which would consist of siting, constructing, and
operating Trains 5 and 6.\6\ SPL states that the peak combined LNG
production capacity of Trains 5 and 6 is estimated to be 503 Bcf/yr of
natural gas, or 251.5 Bcf/yr for each train.
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\6\ See FERC Docket No. PF13-8-000.
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Most recently, DOE/FE granted SPL two additional long-term export
authorizations to FTA countries. First, on July 11, 2013, in DOE/FE
Order No. 3306, DOE/FE authorized SPL to export LNG in a volume
equivalent to 101 Bcf/yr of natural gas, pursuant to a LNG Sale and
Purchase Agreement (SPA) with Total Gas & Power North America, Inc.
(TGPNA).\7\ Second, on July 12, 2013, in DOE/FE Order No. 3307, DOE/FE
issued a similar authorization in a volume equivalent to 88.3 Bcf/yr of
natural gas, pursuant to a SPA with Centrica plc (Centrica).\8\ SPL's
applications for non-FTA export authorization under the terms of its
SPAs with TGPNA and Centrica are pending in DOE/FE Docket Nos. 13-30-
LNG and 13-42-LNG, respectively.
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\7\ Sabine Pass Liquefaction, LLC, DOE/FE Order No. 3306, Order
Granting Authorization to Export Liquefied Natural Gas by Vessel
Pursuant to the Long-Term Contract with Total Gas & Power North
America, Inc. from the Sabine Pass LNG Terminal to Free Trade
Agreement Nations (July 11, 2013).
\8\ Sabine Pass Liquefaction, LLC, DOE/FE Order No. 3307, Order
Granting Authorization to Export Liquefied Natural Gas by Vessel
Pursuant to the Long-Term Contract with Centrica plc from the Sabine
Pass LNG Terminal to Free Trade Agreement Nations (July 12, 2013).
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Current Application
In this Application, SPL requests long-term authorization to export
any surplus LNG from the Sabine Pass LNG Terminal to both FTA and non-
FTA countries--specifically, any volume of natural gas produced from
Trains 5 and 6 that is not already committed for export under its SPAs
with TGPNA and Centrica, in an amount not to exceed the equivalent of
314 Bcf/yr of natural gas for the requested 20-year term.\9\ DOE/FE
recently granted the FTA portion of SPL's Application in DOE/FE Order
No. 3348, pursuant to NGA section 3(c), 15 U.S.C. 717b(c).\10\ The
portion of SPL's Application that seeks authorization to export
domestically produced LNG to non-FTA countries will be reviewed
pursuant to NGA section 3(a), 15 U.S.C. 717b(a), and is the subject of
this Notice.
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\9\ SPL states that its obligation to deliver LNG under the two
SPAs will arise when the fifth LNG train becomes commercially
operable. SPL also states, however, that its delivery obligations
under its SPAs are not tied to individual LNG trains.
\10\ See supra n.1
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SPL seeks authorization to export the LNG for a 20-year term,
commencing on the earlier of the date of first export or eight years
from the date the authorization is issued. SPL is requesting this
authorization to export LNG on its own behalf and as agent for other
parties who will hold title to the LNG at the time of export. SPL
states that it will comply with all DOE/FE requirements for exporters
and agents, including registration requirements articulated in recent
DOE/FE orders.
SPL states that it intends to purchase natural gas to be used as
fuel and feedstock for LNG production from the interstate and
intrastate grid at points of interconnection with other pipelines and
with points of liquidity, both upstream and downstream of the Cheniere
Creole Trail Pipeline system and other systems that interconnect with
the Liquefaction Expansion Project. SPL anticipates that the
Liquefaction Expansion Project will have access to multiple interstate
and intrastate pipeline systems, enabling it to purchase natural gas
from conventional and unconventional basins across the Gulf Coast
region and throughout the United States. SPL notes that this supply of
natural gas can be sourced in large volumes in the spot market or
pursued under long-term arrangements. SPL states that, to date, it has
not entered into any purchase agreements for the purpose of supplying
natural gas feedstock for the proposed exports.
Additionally, SPL states that it has not yet entered into any long-
term gas supply or export agreements in connection with the proposed
exports. According to SPL, it is not submitting transaction-specific
information at this time, but states that it will file, or cause to be
filed, the transaction-specific information (e.g., long-term supply
and/or export agreements) requested in Section 590.202(b) of DOE/FE's
regulations (10 CFR 590.202(b)), consistent with DOE/FE precedent.\11\
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\11\ App. at 8-9 (citing Lake Charles Exports, LLC, DOE/FE Order
No. 3324, Order Conditionally Granting Long-Term Multi-Contract
Authorization to Export Liquefied Natural Gas by Vessel From the
Lake Charles Terminal to Non-Free Trade Agreement Nations (Aug. 7,
2013)).
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Citing Section 590.402 of DOE's regulations,\12\ SPL requests that
DOE/FE grant its Application and issue a conditional non-FTA export
authorization before March 31, 2014, followed by issuance of a final
order immediately upon FERC's completion of the environmental review of
the Liquefaction Expansion Project by FERC, as discussed below.
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\12\ 10 CFR 590.402.
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Public Interest Considerations
SPL states that DOE/FE should grant the requested authorization
because there is ample evidence in the public record that exports of
LNG, such as those proposed by SPL in the Application, are in the
public interest.
According to SPL, DOE/FE previously determined that LNG exports
from the Liquefaction Project were in the public interest when it
issued Orders No. 2961 and 2961-A--the conditional and final non-FTA
authorizations issued to SPL and discussed above. SPL states that, in
granting those orders in FE Docket No. 10-111-LNG, DOE/FE pointed to
market studies and other evidence that SPL submitted in the proceeding,
which (according to SPL) demonstrated the substantial economic and
public benefits that are likely to follow from exports of natural gas
as LNG. SPL asserts that the same rationale applies here to show the
public benefits associated with the proposed exports. It therefore
incorporates by reference the record in its earlier non-FTA proceeding.
SPL also references the macroeconomic study commissioned by DOE and
conducted by NERA Economic Consulting in 2012 (NERA Study),\13\ as well
as letters from members of the United States Congress submitted in
response to the NERA Study, which SPL states expressed their approval
of the export of domestic natural gas as LNG. Finally, SPL states that,
because it intends to sell natural gas from Trains 5 and 6 the
Liquefaction Expansion Project under contractual arrangements that will
be priced competitively with domestic natural gas, it will satisfy the
public interest standard as set forth in DOE's Policy Guidelines.\14\
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\13\ NERA Economic Consulting, Macroeconomic Impacts of LNG
Exports from the United States (Dec. 3, 2012), available at https://energy.gov/sites/prod/files/2013/04/f0/nera_lng_report.pdf [NERA
Study].
\14\ Policy Guidelines & Delegation Orders Relating to the
Regulation of Imported Natural Gas, 49 FR 6684 (Feb. 22, 1984).
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Next, SPL points to the current supply/demand balance of natural
gas in the United States in asserting that the proposed exports will
not impinge on any national or regional need for the gas. SPL addresses
these issues in Appendix B to the Application, entitled ``Further
Discussion of the Projected Need for the Natural Gas to be
[[Page 8700]]
Exported.'' Specifically, SPL states as follows:
(1) The Liquefaction Expansion Project supports and encourages the
continued development of natural gas resources during times when
domestic prices of natural gas are depressed, and subsidizes the
production of a quantity of natural gas that can be deployed on short
notice when and if market prices induce the cancellation of the export
of LNG cargoes, thereby mitigating volatility that would otherwise
arise and ensuring that domestic supplies will be available over the
duration of commodity market cycles.
(2) SPL previously commissioned a report from Advanced Resources
International (ARI), entitled U.S. Natural Gas Resources and Productive
Capacity: Mid-2012 (ARI Resource Report), to assess the scope of
domestic natural gas resources and its potential for future recovery.
SPL states that the ARI Resource Report demonstrates that the United
States has significant natural gas resources available to meet
projected future domestic needs, including the quantities contemplated
for export under this Application. SPL further states that the ARI
Resource Report establishes that the availability of new natural gas
reserves is likely to continue expanding into the future, as new
unconventional formations are discovered and the oil and gas industry
continues to improve drilling and extraction techniques.
(3) SPL states that the United States Energy Information
Administration's (EIA) Annual Energy Outlook 2013 (AEO 2013) supports
the assumption that the domestic natural gas resource base continues to
expand rapidly. According to SPL, AEO 2013 forecasts that domestic dry
natural gas production will increase by an average of 1.3% per year
through 2040. SPL states that AEO 2013 also predicts U.S. dry natural
gas production will total 33.14 trillion cubic feet (Tcf) by 2040, a
44.1% increase from production levels of 23.0 Tcf in 2011. SPL further
notes that the AEO 2013 Reference Case projects that domestic demand
growth for natural gas will average 0.7% annually through 2040, with
domestic demand projected to expand to 29.54 Tcf (80.9 Bcf/d) by 2040.
According to SPL, over this same period of time, domestic natural gas
production is projected to grow by 1.3% per year on average, or
approximately twice the rate of growth in domestic natural gas demand.
SPL cites AEO 2013 in stating the United States will become a net
exporter of natural gas after 2020.
In summary, SPL states that domestic natural gas resources are
currently available for export and will not interfere with the public
interest. SPL cites the ARI Resource Report, EIA's AEO 2013, and other
publicly-available information in stating that the United States has
sufficient natural gas resources available at modest prices to meet
projected domestic demand over the next 25 years. According to SPL,
these reports indicate that the availability of new natural gas
reserves is likely to continue expanding in the future, as new
unconventional formations are discovered and drilling and extraction
techniques are improved. SPL maintains that this anticipated future
surplus of deliverable supply, in excess of domestic need, demonstrates
that the resources proposed for export by SPL from the Liquefaction
Expansion Project are not required to meet domestic need.
Additional details can be found in Appendix B of the Application,
which has been posted at https://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/13_121_lng_fta1.pdf.
Environmental Impact
SPL states that the potential environmental impact of the
Liquefaction Expansion Project will be reviewed by FERC as the lead
agency for the purposes of coordinating all applicable federal
authorizations and complying with the National Environmental Policy Act
(NEPA). SPL anticipates that DOE/FE will participate as a cooperating
agency in FERC's environmental review process. SPL maintains that DOE/
FE has adopted regulations of the Council on Environmental Quality
(CEQ) that govern its role as a cooperating agency in the NEPA process,
and that these regulations require DOE to cooperate with the other
agencies in developing environmental information. Finally, SPL states
that CEQ's regulations further provide for DOE/FE to adopt FERC's
findings, so long as FERC has satisfactorily addressed any comments
raised by DOE/FE in its role as a cooperating agency.
DOE/FE Evaluation
The Application will be reviewed pursuant to section 3(a) of the
NGA, 15 U.S.C. 717b(a). In reviewing the 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 on domestic need for the gas
proposed for export, adequacy of domestic natural gas supply, U.S.
energy security, and the cumulative impact of the requested
authorization and any other LNG export application(s) previously
approved on domestic natural gas supply and demand fundamentals. DOE
will also consider other relevant 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
address these issues in their comments and/or protests, as well as
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 Applicant,
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. 13-121-LNG
in the title line; (2) mailing an original and three paper copies of
the filing to the Office Oil and Gas Global Security and Supply at the
address listed in ADDRESSES; or (3) hand delivering an original and
three paper copies of the filing to the Office of Oil and Gas Global
Security and Supply at the address listed in ADDRESSES before 4:30 p.m.
EST. All filings must include a reference to FE
[[Page 8701]]
Docket No. 13-121-LNG. Please Note: If submitting a filing via email,
please include all related documents and attachments (e.g., exhibits)
in the original email correspondence. Please do not include any active
hyperlinks or password protection in any of the documents or
attachments related to the filing. All electronic filings submitted to
DOE must follow these guidelines to ensure that all documents are filed
in a timely manner. Any hardcopy filing submitted greater in length
than 50 pages must also include, at the time of the filing, a digital
copy on disk of the entire submission.
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 is available for inspection and copying in the
Office of Oil and Gas Global Security and Supply 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 February 7, 2014.
John A. Anderson,
Director, Division of Natural Gas Regulatory Activities, Office of Oil
and Gas Global Security and Supply, Office of Oil and Natural Gas.
[FR Doc. 2014-03162 Filed 2-12-14; 8:45 am]
BILLING CODE 6450-01-P