Cheniere Marketing, LLC; Application for Blanket Authorization To Export Previously Imported Liquefied Natural Gas on a Short-Term Basis, 24411-24413 [2014-09886]
Download as PDF
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 83 / Wednesday, April 30, 2014 / Notices
Government-wide effort to streamline
the process for seeking feedback from
the public on service delivery. This
notice announces our intent to submit
this collection to OMB for approval and
solicits comments on specific aspects
for the proposed information collection.
DATES: Comments regarding this
proposed information collection must
be received on or before June 30, 2014.
If you anticipate difficulty in submitting
comments within that period, contact
the person listed below as soon as
possible.
ADDRESSES: Written comments may be
sent to Mrs. Chris Rouleau, PRA Officer,
Records Management Division (IM–23),
Office of the Chief Information Officer,
U.S. Department of Energy, 1000
Independence Ave. SW., Washington,
DC 20585, or by email at
InformationCollection@hq.doe.gov.
FOR FURTHER INFORMATION CONTACT:
Request for additional information or
copies of the information collection
supporting statement should be directed
to the person listed in ADDRESSES of this
document.
SUPPLEMENTARY INFORMATION: This
information collection request contains
(1) OMB No.: 1910–5160; (2)
Information Collection Request Title:
‘‘Generic Clearance for the Collection of
Qualitative Feedback on Agency Service
Delivery’’; (3) Type of Review:
Extension; (4) Purpose: The proposed
information collection activity provides
a means to garner qualitative customer
and stakeholder feedback in an efficient,
timely manner, in accordance with the
Administration’s commitment to
improving service delivery. By
qualitative feedback we mean
information that provides useful
insights on perceptions and opinions,
but are not statistical surveys that yield
quantitative results that can be
generalized to the population of study.
This feedback will provide insights into
customer or stakeholder perceptions,
experiences and expectations, provide
an early warning of issues with service,
or focus attention on areas where
communication, training or changes in
operations might improve delivery of
products or services. These collections
will allow for ongoing, collaborative and
actionable communications between the
Agency and its customers and
stakeholders. It will also allow feedback
to contribute directly to the
improvement of program management;
(5) Annual Estimated Number of
Respondents: 10,000; (6) Annual
Estimated Number of Total Responses:
10,000; (7) Annual Estimated Number of
Burden Hours: 200,000; (8) Annual
Estimated Reporting and Recordkeeping
VerDate Mar<15>2010
17:41 Apr 29, 2014
Jkt 232001
Cost Burden: There are no costs for
Reporting and Recordkeeping.
Statutory Authority: Executive Order
(EO) 13571, Streamlining Service
Delivery and Improving Customer
Service.
Issued in Washington, DC on April 23,
2014.
Troy Manigault,
Director, Records Management Division, IT
Planning, Architecture, and E-Government,
Office of the Chief Information Officer, U.S.
Department of Energy.
[FR Doc. 2014–09873 Filed 4–29–14; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
[FE Docket No. 14–31–LNG]
Cheniere Marketing, LLC; Application
for Blanket Authorization To Export
Previously Imported Liquefied Natural
Gas on a Short-Term Basis
Office of Fossil Energy, DOE.
Notice of application.
AGENCY:
ACTION:
The Office of Fossil Energy
(FE) of the Department of Energy (DOE)
gives notice of receipt of an application
(Application), filed on March 7, 2014,
by Cheniere Marketing, LLC (CMI),
requesting blanket authorization to
export liquefied natural gas (LNG)
previously imported into the United
States from foreign sources in a volume
equivalent to approximately 500 Billion
cubic feet (Bcf) of natural gas on a
cumulative basis. CMI seeks
authorization to export the LNG by
vessel from the Sabine Pass LNG
Terminal, owned by Sabine Pass LNG,
L.P. and located in Cameron Parish,
Louisiana, on a short-term or spot
market basis for a two-year period
commencing on June 1, 2014. CMI
requests authorization to export the
LNG to any country with the capacity to
import LNG via ocean-going carrier and
with which trade is not prohibited by
U.S. law or policy. CMI requests this
authorization on its own behalf and as
agent for other parties who hold title to
the LNG at the time of export. The
Application was filed under section 3 of
the Natural Gas Act (NGA). Protests,
motions to intervene, notices of
intervention, and written comments are
invited.
DATES: Protests, motions to intervene or
notices of intervention, as applicable,
requests for additional procedures, and
written comments are to be filed using
procedures detailed in the Public
Comment Procedures section no later
than 4:30 p.m., Eastern time, May 30,
2014.
SUMMARY:
PO 00000
Frm 00041
Fmt 4703
Sfmt 4703
24411
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 Beverly Howard, 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) 586–9387.
Cassandra Bernstein, U.S. Department of
Energy (GC–76), Office of the
Assistant General Counsel for
Electricity and Fossil Energy,
Forrestal Building, 1000
Independence Ave. SW., Washington,
DC 20585, (202) 586–9793.
SUPPLEMENTARY INFORMATION:
Background
Applicant. CMI states that it is a
Delaware limited liability company with
its principal place of business in
Houston, Texas. CMI further states that
it is a wholly-owned subsidiary of
Cheniere Development, Inc., which in
turn is a wholly-owned subsidiary of
Cheniere Energy, Inc. Both Cheniere
Development and Cheniere Energy are
Delaware corporations with their
primary place of business in Houston,
Texas. According to CMI, Cheniere
Energy is a developer of LNG import
terminals and natural gas pipelines on
the U.S. Gulf Coast, including the
Sabine Pass LNG Terminal.
Procedural History. On June 7, 2012,
DOE/FE issued Order No. 3102, in
which it authorized CMI to export, on
its own behalf or as agent for others,
LNG previously imported from foreign
sources in a volume equivalent to
approximately 500 Bcf of natural gas on
a cumulative basis over a two-year
period commencing on June 7, 2012,
and extending through June 6, 2014.1
The Application subject to this Notice,
1 Cheniere Marketing, LLC, DOE/FE Order No.
3102, Order Granting Blanket Authorization to
Export Previously Imported Liquefied Natural Gas
by Vessel (June 7, 2012).
E:\FR\FM\30APN1.SGM
30APN1
24412
Federal Register / Vol. 79, No. 83 / Wednesday, April 30, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
if granted by DOE/FE, would renew that
existing blanket authorization.
Additionally, on December 3, 2012,
DOE/FE issued Order No. 3208, in
which it authorized CMI (in relevant
part) to import LNG from various
international sources in a total volume
equivalent to approximately 1,600 Bcf
for a two-year term beginning on
January 29, 2013, and extending through
January 28, 2015.2 Under the terms of
this authorization, CMI may import the
LNG by vessel to any LNG terminal in
the United States and its territories.
Current Application
CMI seeks to export LNG previously
imported into the United States from
foreign sources in a volume equivalent
to approximately 500 Bcf of natural gas
on a cumulative basis. CMI notes that it
is not seeking authorization to export
domestically-produced natural gas or
LNG. CMI states that it plans to export
the LNG from the Sabine Pass LNG
Terminal to any country with the
capacity to import the LNG via oceangoing carrier and with which trade is
not prohibited by U.S. law or policy.
CMI requests this blanket authorization
for a two-year period commencing on
June 7, 2014—the day after its blanket
authorization in DOE/FE Order No.
3102 expires.
CMI proposes to export LNG that is
derived from its LNG importing
activities and that resides in LNG
storage tanks at the Sabine Pass LNG
Terminal. CMI states that the LNG either
will be re-exported or regasified for
consumption in the domestic natural
gas market, contingent on U.S. and
global market price signals. CMI states
that no physical modification to the
Sabine Pass LNG Terminal will be
required to accommodate the proposed
exports. CMI further states that there are
no other proceedings related to this
Application currently pending before
DOE or any other federal agency.
CMI seeks to export the requested
LNG on its own behalf and as agent for
third parties who hold title to the LNG
at the time of export. CMI states that it
will comply with all DOE/FE
requirements for exporters and agents as
set forth in recent DOE/FE orders,
including registering each LNG title
holder for whom CMI seeks to export as
agent. CMI proposes that this
registration include a written statement
by the title holder acknowledging and
2 Cheniere Marketing, LLC, DOE/FE Order No.
3208, Order Granting Blanket Authorization to
Import and Export Natural Gas from and to Canada
and Mexico, to Import Liquefied Natural Gas from
Various International Sources by Vessel, and to
Export Liquefied Natural Gas to Canada and Mexico
by Vessel and Truck (Dec. 3, 2013).
VerDate Mar<15>2010
17:41 Apr 29, 2014
Jkt 232001
agreeing to comply with all applicable
requirements set forth in CMI’s export
authorization, and to include those
requirements in any subsequent
purchase or sale agreement entered into
by that title holder.
Public Interest Considerations
CMI states that section 3 of the NGA
creates a statutory presumption in favor
of approval of its Application, which
opponents bear the burden of
overcoming.3 Citing DOE/FE policy on
evaluating an export application,4 CMI
contends that the proposed export of
previously imported LNG is consistent
with section 3 of the NGA.
In support of its assertion that the
requested authorization is in the public
interest, CMI cites its existing blanket
authorization—DOE/FE Order No.
3102—in which DOE/FE authorized the
export of the same volume of
previously-imported, foreign-sourced
LNG as sought here. CMI states that, in
granting that authorization in 2012,
DOE/FE determined that the record
showed sufficient supply of natural gas
to satisfy domestic demand from
multiple other sources at competitive
prices, without relying on the volumes
of imported LNG that CMI would seek
to export.5
CMI states that DOE/FE made a
similar finding in November 2103, when
it issued DOE/FE Order No. 3359 to
ConocoPhillips Company. In that order,
DOE/FE granted ConocoPhillips blanket
authority to export LNG previously
imported from foreign sources in a
cumulative volume equivalent to
approximately 500 Bcf of natural gas.6
CMI quotes DOE/FE’s finding, ‘‘United
States consumers will continue to have
access to substantial quantities of
natural gas sufficient to meet domestic
demand from multiple other sources at
competitive prices without drawing on
the LNG which ConocoPhillips seeks to
export.’’ 7
CMI states that, in DOE/FE Order
3359 (as well as in other blanket
authorizations issued in recent years),
DOE/FE authorized the export of
3 See, e.g., Panhandle Producers & Royalty
Owners Ass’n v. ERA, 822 F.2d 1105, 1111 (D.C. Cir.
1987).
4 New Policy Guidelines and Delegations Order
Relating to Regulation of Imported Natural Gas, 49
FR 6684 (Feb. 22, 1984).
5 See Cheniere Marketing, LLC, DOE/FE Order No
3102, at 8.
6 ConocoPhillips Company, DOE/FE Order No.
3359, Order Granting Blanket Authorization to
Export Previously Imported Liquefied Natural Gas
by Vessel (Nov. 7, 2013) (granting authority to
export LNG from the LNG terminal facilities on
Quintana Island, Texas, owned by Freeport LNG
Development, L.P.).
7 Id. at 7.
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
previously imported LNG based in part
on data compiled by the U.S. Energy
Information Administration (EIA). CMI
asserts that this data substantiates U.S.
consumer access to ample volumes of
natural gas to meet domestic demand
from other competitively-priced
sources. In Order No. 3359, for example,
CMI states that DOE/FE took
administrative notice that EIA’s Annual
Energy Outlook 2013 (AEO 2013)
showed annual domestic dry natural gas
production increasing from 21.33
trillion cubic feet (Tcf) in 2010 to a
projection of 26.61 Tcf by 2020—an
annual increase of 5.28 Tcf.8
Consumption over the same period
increased only by 2.54 Tcf annually.
CMI cites DOE/FE’s findings in these
proceedings, in addition to EIA’s more
recent estimates in Annual Energy
Outlook 2014 Early Release Overview,9
to support the conclusion that the
foreign-sourced LNG proposed for
export in this Application is not needed
to meet domestic demand.
Finally, CMI states that the requested
authorization would provide CMI with
necessary flexibility to respond to
changes in domestic and global markets
for natural gas and LNG. Under its
existing authorization in DOE/FE Order
No. 3102, CMI has been able to avail
itself of spot-market LNG import
cargoes, which promotes the liquidity of
supply available to the U.S. market.
According to CMI, natural gas derived
from the imported LNG will be available
to supply local markets when
conditions support it, which may
moderate the volatility of U.S. gas
prices. For these reasons, CMI states that
the requested export authorization is
consistent with the public interest.
Additional details can be found in
CMI’s Application, which is posted on
the DOE/FE Web site at: https://
www.fossil.energy.gov/programs/
gasregulation/authorizations/2014_
applications/14_31_lng_howard_reexport.pdf
Environmental Impact
CMI states that the proposed export of
previously-imported LNG would require
no modifications to the Sabine Pass
LNG Terminal. Therefore, CMI
maintains that a grant of its Application
would not constitute a federal action
significantly affecting the human
environment within the meaning of the
National Environmental Policy Act
8 See
id. at 6–7.
states that, in December 2013, EIA issued
its Annual Energy Outlook 2014 Early Release
Reference case, in which EIA increased its forecast
of cumulative dry natural gas production (from
2012 to 2040) by 11% from its forecast in AEO
2013.
9 CMI
E:\FR\FM\30APN1.SGM
30APN1
Federal Register / Vol. 79, No. 83 / Wednesday, April 30, 2014 / Notices
(NEPA), 42 U.S.C. 4321 et seq., nor
would an environmental impact
statement or environmental assessment
be required.
mstockstill on DSK4VPTVN1PROD with NOTICES
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. 00–002.04F
(July 11, 2013). In reviewing this LNG
export application, DOE will consider
domestic need for the gas, as well as any
other issues determined to be
appropriate, including 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.
NEPA requires DOE to give
appropriate consideration to the
environmental effects of its proposed
decisions. No final decision will be
issued in this proceeding until DOE has
met its NEPA responsibilities.
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. 14–31–LNG in the title line;
(2) mailing 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; or (3)
hand delivering an original and three
paper copies of the filing to the Office
of Oil and Gas Global Supply at the
address listed in ADDRESSES. All filings
must include a reference to FE Docket
No. 14–31–LNG.
Please Note: If submitting a filing via
email, please include all related documents
VerDate Mar<15>2010
17:41 Apr 29, 2014
Jkt 232001
24413
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.
Issued in Washington, DC, on April 22,
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.
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 Division
of Natural Gas Regulatory Activities
docket room, Room 3E–042, 1000
Independence Avenue SW.,
Washington, DC 20585. The docket
room is open between the hours of 8:00
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays. The
Application and any filed protests,
motions to intervene or notice of
interventions, and comments will also
be available electronically by going to
the following DOE/FE Web address:
https://www.fe.doe.gov/programs/
gasregulation/.
Federal Energy Regulatory
Commission
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
[FR Doc. 2014–09886 Filed 4–29–14; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
[Docket No. IC14–6–000]
Commission Information Collection
Activities (FERC–600); Comment
Request
Federal Energy Regulatory
Commission, Department of Energy
(DOE).
ACTION: Comment request.
AGENCY:
In compliance with the
requirements of the Paperwork
Reduction Act of 1995, the Federal
Energy Regulatory Commission
(Commission or FERC) is submitting its
information collection FERC–600 (Rules
of Practice and Procedure: Complaint
Procedures) to the Office of
Management and Budget (OMB) for
review of the information collection
requirements. Any interested person
may file comments directly with OMB
and should address a copy of those
comments to the Commission as
explained below. The Commission
previously issued a Notice in the
Federal Register (79 FR 7651,
2/10/2014) requesting public comments.
The Commission received no comments
on the FERC–600.
DATES: Comments on the collection of
information are due by May 30, 2014.
ADDRESSES: Comments filed with OMB,
identified by the OMB Control No.
1902–0180, should be sent via email to
the Office of Information and Regulatory
Affairs: oira_submission@omb.gov.
Attention: Federal Energy Regulatory
Commission Desk Officer. The Desk
Officer may also be reached via
telephone at 202–395–4718.
A copy of the comments should also
be sent to the Commission, in Docket
No. IC14–6–000, by either of the
following methods:
• eFiling at Commission’s Web site:
https://www.ferc.gov/docs-filing/
efiling.asp.
• Mail/Hand Delivery/Courier:
Federal Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street NE., Washington, DC 20426.
SUMMARY:
E:\FR\FM\30APN1.SGM
30APN1
Agencies
[Federal Register Volume 79, Number 83 (Wednesday, April 30, 2014)]
[Notices]
[Pages 24411-24413]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09886]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
[FE Docket No. 14-31-LNG]
Cheniere Marketing, LLC; Application for Blanket Authorization To
Export Previously Imported Liquefied Natural Gas on a Short-Term Basis
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of application.
-----------------------------------------------------------------------
SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy
(DOE) gives notice of receipt of an application (Application), filed on
March 7, 2014, by Cheniere Marketing, LLC (CMI), requesting blanket
authorization to export liquefied natural gas (LNG) previously imported
into the United States from foreign sources in a volume equivalent to
approximately 500 Billion cubic feet (Bcf) of natural gas on a
cumulative basis. CMI seeks authorization to export the LNG by vessel
from the Sabine Pass LNG Terminal, owned by Sabine Pass LNG, L.P. and
located in Cameron Parish, Louisiana, on a short-term or spot market
basis for a two-year period commencing on June 1, 2014. CMI requests
authorization to export the LNG to any country with the capacity to
import LNG via ocean-going carrier and with which trade is not
prohibited by U.S. law or policy. CMI requests this authorization on
its own behalf and as agent for other parties who hold title to the LNG
at the time of export. The Application was filed under section 3 of the
Natural Gas Act (NGA). Protests, motions to intervene, notices of
intervention, and written comments are invited.
DATES: Protests, motions to intervene or notices of intervention, as
applicable, requests for additional procedures, and written comments
are to be filed using procedures detailed in the Public Comment
Procedures section no later than 4:30 p.m., Eastern time, May 30, 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 Beverly Howard, 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) 586-9387.
Cassandra Bernstein, U.S. Department of Energy (GC-76), Office of the
Assistant General Counsel for Electricity and Fossil Energy, Forrestal
Building, 1000 Independence Ave. SW., Washington, DC 20585, (202) 586-
9793.
SUPPLEMENTARY INFORMATION:
Background
Applicant. CMI states that it is a Delaware limited liability
company with its principal place of business in Houston, Texas. CMI
further states that it is a wholly-owned subsidiary of Cheniere
Development, Inc., which in turn is a wholly-owned subsidiary of
Cheniere Energy, Inc. Both Cheniere Development and Cheniere Energy are
Delaware corporations with their primary place of business in Houston,
Texas. According to CMI, Cheniere Energy is a developer of LNG import
terminals and natural gas pipelines on the U.S. Gulf Coast, including
the Sabine Pass LNG Terminal.
Procedural History. On June 7, 2012, DOE/FE issued Order No. 3102,
in which it authorized CMI to export, on its own behalf or as agent for
others, LNG previously imported from foreign sources in a volume
equivalent to approximately 500 Bcf of natural gas on a cumulative
basis over a two-year period commencing on June 7, 2012, and extending
through June 6, 2014.\1\ The Application subject to this Notice,
[[Page 24412]]
if granted by DOE/FE, would renew that existing blanket authorization.
---------------------------------------------------------------------------
\1\ Cheniere Marketing, LLC, DOE/FE Order No. 3102, Order
Granting Blanket Authorization to Export Previously Imported
Liquefied Natural Gas by Vessel (June 7, 2012).
---------------------------------------------------------------------------
Additionally, on December 3, 2012, DOE/FE issued Order No. 3208, in
which it authorized CMI (in relevant part) to import LNG from various
international sources in a total volume equivalent to approximately
1,600 Bcf for a two-year term beginning on January 29, 2013, and
extending through January 28, 2015.\2\ Under the terms of this
authorization, CMI may import the LNG by vessel to any LNG terminal in
the United States and its territories.
---------------------------------------------------------------------------
\2\ Cheniere Marketing, LLC, DOE/FE Order No. 3208, Order
Granting Blanket Authorization to Import and Export Natural Gas from
and to Canada and Mexico, to Import Liquefied Natural Gas from
Various International Sources by Vessel, and to Export Liquefied
Natural Gas to Canada and Mexico by Vessel and Truck (Dec. 3, 2013).
---------------------------------------------------------------------------
Current Application
CMI seeks to export LNG previously imported into the United States
from foreign sources in a volume equivalent to approximately 500 Bcf of
natural gas on a cumulative basis. CMI notes that it is not seeking
authorization to export domestically-produced natural gas or LNG. CMI
states that it plans to export the LNG from the Sabine Pass LNG
Terminal to any country with the capacity to import the LNG via ocean-
going carrier and with which trade is not prohibited by U.S. law or
policy. CMI requests this blanket authorization for a two-year period
commencing on June 7, 2014--the day after its blanket authorization in
DOE/FE Order No. 3102 expires.
CMI proposes to export LNG that is derived from its LNG importing
activities and that resides in LNG storage tanks at the Sabine Pass LNG
Terminal. CMI states that the LNG either will be re-exported or
regasified for consumption in the domestic natural gas market,
contingent on U.S. and global market price signals. CMI states that no
physical modification to the Sabine Pass LNG Terminal will be required
to accommodate the proposed exports. CMI further states that there are
no other proceedings related to this Application currently pending
before DOE or any other federal agency.
CMI seeks to export the requested LNG on its own behalf and as
agent for third parties who hold title to the LNG at the time of
export. CMI states that it will comply with all DOE/FE requirements for
exporters and agents as set forth in recent DOE/FE orders, including
registering each LNG title holder for whom CMI seeks to export as
agent. CMI proposes that this registration include a written statement
by the title holder acknowledging and agreeing to comply with all
applicable requirements set forth in CMI's export authorization, and to
include those requirements in any subsequent purchase or sale agreement
entered into by that title holder.
Public Interest Considerations
CMI states that section 3 of the NGA creates a statutory
presumption in favor of approval of its Application, which opponents
bear the burden of overcoming.\3\ Citing DOE/FE policy on evaluating an
export application,\4\ CMI contends that the proposed export of
previously imported LNG is consistent with section 3 of the NGA.
---------------------------------------------------------------------------
\3\ See, e.g., Panhandle Producers & Royalty Owners Ass'n v.
ERA, 822 F.2d 1105, 1111 (D.C. Cir. 1987).
\4\ New Policy Guidelines and Delegations Order Relating to
Regulation of Imported Natural Gas, 49 FR 6684 (Feb. 22, 1984).
---------------------------------------------------------------------------
In support of its assertion that the requested authorization is in
the public interest, CMI cites its existing blanket authorization--DOE/
FE Order No. 3102--in which DOE/FE authorized the export of the same
volume of previously-imported, foreign-sourced LNG as sought here. CMI
states that, in granting that authorization in 2012, DOE/FE determined
that the record showed sufficient supply of natural gas to satisfy
domestic demand from multiple other sources at competitive prices,
without relying on the volumes of imported LNG that CMI would seek to
export.\5\
---------------------------------------------------------------------------
\5\ See Cheniere Marketing, LLC, DOE/FE Order No 3102, at 8.
---------------------------------------------------------------------------
CMI states that DOE/FE made a similar finding in November 2103,
when it issued DOE/FE Order No. 3359 to ConocoPhillips Company. In that
order, DOE/FE granted ConocoPhillips blanket authority to export LNG
previously imported from foreign sources in a cumulative volume
equivalent to approximately 500 Bcf of natural gas.\6\ CMI quotes DOE/
FE's finding, ``United States consumers will continue to have access to
substantial quantities of natural gas sufficient to meet domestic
demand from multiple other sources at competitive prices without
drawing on the LNG which ConocoPhillips seeks to export.'' \7\
---------------------------------------------------------------------------
\6\ ConocoPhillips Company, DOE/FE Order No. 3359, Order
Granting Blanket Authorization to Export Previously Imported
Liquefied Natural Gas by Vessel (Nov. 7, 2013) (granting authority
to export LNG from the LNG terminal facilities on Quintana Island,
Texas, owned by Freeport LNG Development, L.P.).
\7\ Id. at 7.
---------------------------------------------------------------------------
CMI states that, in DOE/FE Order 3359 (as well as in other blanket
authorizations issued in recent years), DOE/FE authorized the export of
previously imported LNG based in part on data compiled by the U.S.
Energy Information Administration (EIA). CMI asserts that this data
substantiates U.S. consumer access to ample volumes of natural gas to
meet domestic demand from other competitively-priced sources. In Order
No. 3359, for example, CMI states that DOE/FE took administrative
notice that EIA's Annual Energy Outlook 2013 (AEO 2013) showed annual
domestic dry natural gas production increasing from 21.33 trillion
cubic feet (Tcf) in 2010 to a projection of 26.61 Tcf by 2020--an
annual increase of 5.28 Tcf.\8\ Consumption over the same period
increased only by 2.54 Tcf annually. CMI cites DOE/FE's findings in
these proceedings, in addition to EIA's more recent estimates in Annual
Energy Outlook 2014 Early Release Overview,\9\ to support the
conclusion that the foreign-sourced LNG proposed for export in this
Application is not needed to meet domestic demand.
---------------------------------------------------------------------------
\8\ See id. at 6-7.
\9\ CMI states that, in December 2013, EIA issued its Annual
Energy Outlook 2014 Early Release Reference case, in which EIA
increased its forecast of cumulative dry natural gas production
(from 2012 to 2040) by 11% from its forecast in AEO 2013.
---------------------------------------------------------------------------
Finally, CMI states that the requested authorization would provide
CMI with necessary flexibility to respond to changes in domestic and
global markets for natural gas and LNG. Under its existing
authorization in DOE/FE Order No. 3102, CMI has been able to avail
itself of spot-market LNG import cargoes, which promotes the liquidity
of supply available to the U.S. market. According to CMI, natural gas
derived from the imported LNG will be available to supply local markets
when conditions support it, which may moderate the volatility of U.S.
gas prices. For these reasons, CMI states that the requested export
authorization is consistent with the public interest.
Additional details can be found in CMI's Application, which is
posted on the DOE/FE Web site at: https://www.fossil.energy.gov/programs/gasregulation/authorizations/2014_applications/14_31_lng_howard_re-export.pdf
Environmental Impact
CMI states that the proposed export of previously-imported LNG
would require no modifications to the Sabine Pass LNG Terminal.
Therefore, CMI maintains that a grant of its Application would not
constitute a federal action significantly affecting the human
environment within the meaning of the National Environmental Policy Act
[[Page 24413]]
(NEPA), 42 U.S.C. 4321 et seq., nor would an environmental impact
statement or environmental assessment be required.
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. 00-002.04F
(July 11, 2013). In reviewing this LNG export application, DOE will
consider domestic need for the gas, as well as any other issues
determined to be appropriate, including 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.
NEPA requires DOE to give appropriate consideration to the
environmental effects of its proposed decisions. No final decision will
be issued in this proceeding until DOE has met its NEPA
responsibilities.
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. 14-31-LNG
in the title line; (2) mailing 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; or (3) hand delivering an original and
three paper copies of the filing to the Office of Oil and Gas Global
Supply at the address listed in ADDRESSES. All filings must include a
reference to FE Docket No. 14-31-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
Division of Natural Gas Regulatory Activities docket room, Room 3E-042,
1000 Independence Avenue SW., Washington, DC 20585. The docket room is
open between the hours of 8:00 a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays. The Application and any filed
protests, motions to intervene or notice of interventions, and comments
will also be available electronically by going to the following DOE/FE
Web address: https://www.fe.doe.gov/programs/gasregulation/.
Issued in Washington, DC, on April 22, 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. 2014-09886 Filed 4-29-14; 8:45 am]
BILLING CODE 6450-01-P