Record of Decision and Floodplain Statement of Findings for the Lake Charles LNG Export Company, LLC Application To Export Liquefied Natural Gas to Non-Free Trade Agreement Countries, 51867-51870 [2016-18651]
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Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices
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all new proposals when a NEPA review
is initiated. CEQ recommends that
agencies consider applying this
guidance to projects in ongoing EIS or
EA processes where GHG emissions
may be a significant aspect of the
proposal.
The final guidance is available on the
National Environmental Policy Act Web
site (www.nepa.gov) specifically at,
https://ceq.doe.gov/ceq_regulations/
guidance.html, and on the CEQ Web site
at https://www.whitehouse.gov/
administration/eop/ceq/initiatives/
nepa/ghg-guidance. For the reasons
stated in the preamble, above, CEQ
issues the following guidance on the
consideration of GHG emissions and the
effects of climate change in NEPA
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Authority: 42 U.S.C. 4332, 4342, 4344 and
40 CFR parts 1500, 1501, 1502, 1503, 1505,
1506, 1507, and 1508.
Dated: August 1, 2016.
Christy Goldfuss,
Managing Director, Council on Environmental
Quality.
[FR Doc. 2016–18620 Filed 8–4–16; 8:45 am]
BILLING CODE 3225–F6–P
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Global Positioning System Directorate
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mstockstill on DSK3G9T082PROD with NOTICES
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Table of Contents
• DATES:
• ADDRESSES:
• FOR FURTHER INFORMATION
CONTACT:
Date/Time: 21–22 Sept 2016,
0830–1600 * (Pacific Standard Time
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Registration/check-in on 21 Sept 2016
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ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Captain Robyn Anderson,
robyn.anderson.1@us.af.mil, (310) 653–
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3064. Daniel Godwin, daniel.godwin.5@
us.af.mil, (310) 653–3640.
Bao-Anh Trinh,
Air Force Federal Register Liaison Officer.
[FR Doc. 2016–18595 Filed 8–4–16; 8:45 am]
BILLING CODE 5001–10–P
DEPARTMENT OF ENERGY
Record of Decision and Floodplain
Statement of Findings for the Lake
Charles LNG Export Company, LLC
Application To Export Liquefied
Natural Gas to Non-Free Trade
Agreement Countries
Office of Fossil Energy,
Department of Energy.
ACTION: Record of decision.
AGENCY:
The U.S. Department of
Energy (DOE) announces its decision in
Lake Charles LNG Export Company,
LLC (Lake Charles LNG Export), DOE/
FE Docket No. 13–04–LNG,1 to issue
DOE/FE Order No. 3868 granting final
long-term, multi contract authorization
for Lake Charles LNG Export to engage
in export of domestically produced
liquefied natural gas (LNG) from the
Lake Charles Terminal located in Lake
Charles, Calcasieu Parish, Louisiana
(Terminal), in a volume equivalent to
730 Bcf/yr of natural gas for a term of
20 years. Lake Charles LNG Export is
seeking to export LNG from the
Terminal to countries with which the
United States has not entered into a free
trade agreement (FTA) that requires
national treatment for trade in natural
gas, and with which trade is not
prohibited by U.S. law or policy (nonFTA countries). Order No. 3868 is
issued under section 3 of the Natural
Gas Act (NGA) 2 and 10 CFR part 590 of
the DOE regulations.3 DOE participated
as a cooperating agency with the Federal
Energy Regulatory Commission (FERC)
in preparing an environmental impact
statement (EIS) 4 analyzing the potential
SUMMARY:
1 On Oct. 10, 2014, Trunkline LNG Export, LLC
filed a request in DOE/FE Dkt. No. 13–04–LNG to
change its corporate name to Lake Charles LNG
Export Company, LLC. Subsequently, DOE/FE
issued Order 3252–A granting the name change. See
Lake Charles LNG Export Company, LLC, DOE/FE
Order No. 3252–A, FE Dkt. No. 13–04–LNG (March
18, 2015).
2 The authority to regulate the imports and
exports of natural gas, including liquefied natural
gas, under section 3 of the NGA (15 U.S.C. 717b)
has been delegated to the Assistant Secretary for FE
in Redelegation Order No. 00–006.02 issued on
November 17, 2014.
3 10 CFR part 590 (2012).
4 Federal Energy Regulatory Commission, Final
Environmental Impact Statement for the Lake
Charles Liquefaction Project, Docket Nos. CP14–
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Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices
environmental impacts resulting from
modification of the existing facilities at
the Terminal.
ADDRESSES: The EIS and this Record of
Decision (ROD) are available on DOE’s
National Environmental Policy Act
(NEPA) Web site at: https://energy.gov/
nepa/nepa-documents. Order No. 3868
is available on DOE/FE’s Web site at:
https://www.fossil.energy.gov/programs/
gasregulation/authorizations/2013_
applications/Lake_Charles_LNG_
Export_13-04-LNG.html. For additional
information about the docket in these
proceedings, contact Larine Moore, U.S.
Department of Energy (FE–34), Office of
Regulation and International
Engagement, Office of Oil and Natural
Gas, Office of Fossil Energy, Room 3E–
042, 1000 Independence Avenue SW.,
Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: To
obtain additional information about the
EIS or the ROD, contact Mr. Kyle W.
Moorman, U.S. Department of Energy
(FE–34), Office of Regulation and
International Engagement, Office of Oil
and Natural Gas, Office of Fossil Energy,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585,
(202) 586–5600, or Mr. Edward Le Duc,
U.S. Department of Energy (GC–51),
Office of the Assistant General Counsel
for Environment, 1000 Independence
Avenue SW., Washington, DC 20585.
SUPPLEMENTARY INFORMATION: DOE
prepared this ROD and Floodplain
Statement of Findings pursuant to the
National Environmental Policy Act of
1969 (42 United States Code [U.S.C.]
4321, et seq.), and in compliance with
the Council on Environmental Quality
(CEQ) implementing regulations for
NEPA (40 Code of Federal Regulations
[CFR] parts 1500 through 1508), DOE’s
implementing procedures for NEPA (10
CFR part 1021), and DOE’s ‘‘Compliance
with Floodplain and Wetland
Environmental Review Requirements’’
(10 CFR part 1022).
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Background
Lake Charles LNG Export is a
Delaware limited liability company,
with its principal place of business in
Houston, Texas.5 On January 10, 2013,
Lake Charles LNG Export filed the
application (Application) with DOE/FE
seeking authorization to export
domestically produced LNG from
119–000, CP14–120–000, and CP14–122–000 (Aug.
2015).
5 For more information on the corporate
background, see DOE Order 3868, Final Opinion
and Order Granting Long-Term, Multi-Contract
Authorization to Export Liquefied Natural Gas by
Vessels from the Lake Charles Terminal in
Calcasieu Parish, Louisiana to Non-Free Trade
Agreement Nations, issued July 29, 2016.
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proposed liquefaction facilities
(Liquefaction Project) to be located at
the existing Terminal in Lake Charles,
Louisiana. Lake Charles LNG Export
proposes to export this LNG to non-FTA
countries in a total volume equivalent to
730 billion cubic feet per year (Bcf/yr)
of natural gas.
The Terminal is owned and operated
by a corporate affiliate currently known
as Lake Charles LNG Company, LLC
(Lake Charles LNG).6 The Liquefaction
Project will be owned by Lake Charles
LNG Export. Both of these entities are
owned by Energy Transfer Equity, L.P.
and Energy Transfer Partners, L.P.
Lake Charles LNG Export states that
FERC certificated the Terminal in 1977
and the original construction was
completed in 1981.7 According to Lake
Charles LNG Export, the Terminal
currently has a firm sustained sendout
capacity of 1.8 Bcf/d and a peak sendout
capacity of 2.1 Bcf/day. The Terminal
has four LNG storage tanks with a
combined capacity of approximately
425,000 cubic meters of LNG, or
approximately 9.0 Bcf of natural gas.
The Terminal’s natural gas liquids
processing facilities allow the extraction
of ethane and other heavier
hydrocarbons from the LNG stream.
Project Description
Among other features, the
Liquefaction Project will include a new
liquefaction facility consisting of three
liquefaction trains, modifications and
upgrades at the existing Terminal, and
approximately 0.5 miles of 48-inch
diameter feed gas line in Calcasieu
Parish, Louisiana, to supply natural gas
to the liquefaction facility from existing
gas transmission pipelines.8
Lake Charles LNG Export states that,
following completion of the
Liquefaction Project, the Terminal will
be bi-directional, meaning it will be
capable of importing or exporting LNG,
and its peak and sustained sendout
capabilities will not be affected.
6 In September 2014, Trunkline LNG Company,
LLC changed its name to Lake Charles LNG
Company, LLC. See, Lake Charles LNG Export Co.
LLC, DOE/FE Order No. 3252–A, FE Docket No. 13–
04–LNG, Order Granting Request to Amend DOE/
FE Order No. 3252 and Pending Application to
Reflect Corporate Name Change (Mar. 18, 2015).
7 Trunkline LNG Co., et al., 58 FPC 726 (Opinion
No. 796), order on reh’g 58 FPC 2935 (1977)
(Opinion No. 796–A).
8 See Trunkline LNG Company, LLC et al.,
Supplemental Notice of Intent to Prepare an
Environmental Impact Statement for the Planned
Lake Charles Liquefaction Project and Request for
Comments on Environmental Issues, FERC Docket
No. PF12–8–000, at 2 (Mar. 21, 2013), available at
https://energy.gov/sites/prod/files/EIS-0491-FERCSNOI-2013.pdf.
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EIS Process
FERC was the lead federal agency and
initiated the NEPA process by
publishing a Notice of Intent (NOI) to
prepare an EIS in the Federal Register
(FR) on September 20, 2012 (77 FR
58373); DOE was a cooperating agency.
FERC issued the draft EIS for the
Liquefaction Project on April 10, 2015
(80 FR 20489), and the final EIS on
August 20, 2015 (80 FR 50622). The
final EIS addresses comments received
on the draft EIS. Among other resource
areas, the final EIS addresses geology,
soils, water, wetlands, wildlife, air
quality and noise, cumulative impacts
and alternatives.9
The final EIS recommended that
FERC subject any approval of Lake
Charles LNG Export’s proposed
Liquefaction Project to 96 conditions to
reduce the environmental impacts that
would otherwise result from the
construction and operation of the
project. On December 17, 2015, FERC
issued an Order Granting Section 3 and
Section 7 Authorizations and Approving
Abandonment (FERC Order),10 which
authorized Lake Charles LNG to site,
construct, and operate the Lake Charles
Liquefaction Project, subject to 95 of the
96 environmental conditions in
Appendix B of that Order.
In accordance with 40 CFR 1506.3,
after an independent review of FERC’s
final EIS, DOE/FE adopted FERC’s final
EIS for the Lake Charles Liquefaction
Project (DOE/EIS–0491), and the U.S.
Environmental Protection Agency
published a notice of the adoption on
July 15, 2016 (81 FR 46077).
Addendum to Environmental Review
Documents Concerning Exports of
Natural Gas From the United States
(Addendum)
On June 4, 2014, DOE/FE published
the Draft Addendum to Environmental
Review Documents Concerning Exports
of Natural Gas From the United States
(Draft Addendum) for public comment
(79 FR 32258). The purpose of this
review was to provide additional
information to the public concerning the
potential environmental impacts of
unconventional natural gas exploration
and production activities, including
hydraulic fracturing. Although not
required by NEPA, DOE/FE prepared
the Addendum in an effort to be
responsive to the public and to provide
9 See Final EIS at 1–10, Table 1.3–1 Key
Environmental Concerns Identified During the
Scoping Process for the Lake Charles Liquefaction
Project.
10 Trunkline Gas Co., LLC, et al., Order Granting
Section 3 and Section 7 Authorizations and
Approving Abandonment, 153 FERC ¶ 61,300 (Dec.
17, 2015).
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Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices
the best information available on a
subject that had been raised by
commenters in this and other LNG
export proceedings.
The 45-day comment period on the
Draft Addendum closed on July 21,
2014. DOE/FE received 40,745
comments in 18 separate submissions,
and considered those comments in
issuing the Final Addendum on August
15, 2014. DOE provided a summary of
the comments received and responses to
substantive comments in Appendix B of
the Addendum. DOE/FE has
incorporated the Draft Addendum,
comments, and Final Addendum into
the record in this proceeding.
mstockstill on DSK3G9T082PROD with NOTICES
Alternatives
The EIS assessed alternatives that
could achieve the Liquefaction Project
objectives. The range of alternatives
analyzed included the No-Action
Alternative, system alternatives,
pipeline system alternatives, alternative
liquefaction facility sites, alternative
terminal configurations, alternative
aboveground facility sites for pipeline
expansion, and alternative power
sources. Alternatives were evaluated
and compared to the Liquefaction
Project to determine if the alternatives
were environmentally preferable.
Under the No-Action Alternative, the
Liquefaction Project would not be
developed. Additionally, the potential
adverse and beneficial environmental
impacts discussed within the EIS would
not occur. Furthermore, this alternative
could also require that potential endusers make different arrangements to
obtain natural gas services, use other
fossil fuel energy sources (e.g. coal or
fuel oil), or possibly use traditional
long-term energy sources (e.g. nuclear
power) and/or renewable energy sources
to compensate for lack of natural gas
that would otherwise come from the
supplies produced by the Liquefaction
Project.
The EIS evaluated system alternatives
for the Liquefaction Project, including
six operating LNG import terminals in
the Gulf of Mexico area, and several
proposed or planned export projects
along the Gulf Coast. All of the system
alternatives were eliminated from
further consideration for reasons that
include the need for substantial
construction beyond that currently
proposed, production volume
limitations, in-service dates scheduled
significantly beyond Lake Charles LNG
Export’s commitments to its customers,
and potential environmental impacts
that were considered comparable to or
greater than those of the Liquefaction
Project.
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17:42 Aug 04, 2016
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The EIS evaluated three pipeline
system alternatives for the Liquefaction
Project. In order to be a viable pipeline
system alternative, the alternative
system would have to transport all or a
part of the volume of natural gas
required for liquefaction at the proposed
new facility and cause significantly less
impact on the environment.
Additionally, a legitimate pipeline
alternative must either connect directly
to the proposed facility or to the existing
pipeline system. Each of the three
alternatives pipeline systems considered
would require significant expansions in
their looping and compression
capabilities to achieve the necessary
delivery capacity and require the
construction of new segments to
connect directly with the liquefaction
facility. The construction associated
with the alternatives, including
significantly increasing pipeline looping
capability or expansion would result in
environmental impacts equal to or
greater than the proposed pipeline
system. As a result, none of the three
proposed pipeline alternatives would
provide a significant environmental
advantage over the existing and
proposed pipeline system.
The EIS evaluated five Liquefaction
Project sites (including the current
proposed site), all within relative close
proximity to the existing Terminal.
Construction of the Terminal at each of
the alternative sites would have greater
environmental impacts when compared
to the proposed Terminal site; therefore,
none of the four other sites evaluated
were determined to be environmentally
preferred.
For the Liquefaction Project
configuration (e.g. siting for components
such as liquefaction trains, pretreatment
units and pipeline connections), the EIS
considered the use design and
configuration subject to the
requirements of 49 CFR 193 and other
industry or engineering standards. The
EIS evaluated factors such as locations
of interconnecting LNG transfer piping,
operational noise, vapor dispersion
requirements, and site evaluation
associated with impacts on surrounding
wetlands. Regulatory requirements
associated with thermal exclusion and
vapor dispersion zones would require
additional fill material to increase
elevation at the site that will likely
cause further wetland losses on the site.
As a result, the proposed configuration
was determined to be environmentally
preferred.
The EIS evaluated several alternative
sites for the proposed above-ground
facilities (e.g. one new compressor
(Compressor Station 203–A) station and
five new metering stations) for pipeline
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Sfmt 4703
51869
expansion. In each of the alternative
sites analyzed for the facilities, the
environmental impacts from
construction and operational activities
(e.g., increased noise and air emissions)
would not be environmentally preferred
to the proposed sites.
Environmentally Preferred Alternative
When compared against the other
action alternatives assessed in the EIS,
as discussed above, the Lake Charles
Liquefaction Project is the
environmentally preferred alternative.
While the No-Action Alternative would
avoid the environmental impacts
identified in the EIS, adoption of this
alternative would not meet the
Liquefaction Project objectives.
Decision
DOE has decided to issue Order No.
3868 authorizing Lake Charles LNG
Export to export domestically produced
LNG by vessel from the Terminal
located in Lake Charles, Calcasieu
Parish, Louisiana, in a volume up to the
equivalent to 730 Bcf/yr of natural gas
for a term of 20 years to commence on
the earlier of the date of first export or
seven years from the date that the Order
is issued.
Concurrently with this Record of
Decision, DOE is issuing Order No. 3868
in which it finds that the requested
authorization has not been shown to be
inconsistent with the public interest and
the Application should be granted
subject to compliance with the terms
and conditions set forth in the Order,
including the environmental conditions
recommended in the EIS and adopted in
the FERC Order at Appendix B.
Additionally, this authorization is
conditioned on Lake Charles LNG
Export’s compliance with any other
preventative and mitigative measures
imposed by other Federal or state
agencies.
Basis of Decision
DOE’s decision is based upon the
analysis of potential environmental
impacts presented in the EIS, and DOE’s
determination in Order No. 3868 that
the opponents of Lake Charles LNG
Export’s Application have failed to
overcome the statutory presumption
that the proposed export authorization
is not inconsistent with the public
interest. Although not required by
NEPA, DOE/FE also considered the
Addendum, which summarizes
available information on potential
upstream impacts associated with
unconventional natural gas activities,
such as hydraulic fracturing.
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Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices
Mitigation
As a condition of its decision to issue
Order No. 3868 authorizing Lake
Charles LNG Export to export LNG to
non-FTA countries, DOE is imposing
requirements that will avoid or
minimize the environmental impacts of
the project. These conditions include
the environmental conditions
recommended in the EIS and adopted in
the FERC Order at Appendix B.
Mitigation measures beyond those
included in Order No. 3868 that are
enforceable by other Federal and state
agencies are additional conditions of
Order No. 3868. With these conditions,
DOE/FE has determined that all
practicable means to avoid or minimize
environmental harm from the
Liquefaction Project have been adopted.
Floodplain Statement of Findings
DOE prepared this Floodplain
Statement of Findings in accordance
with DOE’s regulations entitled
‘‘Compliance with Floodplain and
Wetland Environmental Review
Requirements’’ (10 CFR part 1022). The
required floodplain assessment was
conducted during development and
preparation of the EIS (see Sections
3.3.1, 3.3.2, 4.1.3.4, and 4.13.2.1 of the
EIS). DOE determined that the
placement of some project components
within floodplains would be
unavoidable. However, the current
design for the Lake Charles Liquefaction
Project minimizes floodplain impacts to
the extent practicable.
Issued in Washington, DC, on July 29,
2016.
Christopher A. Smith,
Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2016–18651 Filed 8–4–16; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Record of Decision and Floodplain
Statement of Findings for the Lake
Charles Exports, LLC Application To
Export Liquefied Natural Gas to NonFree Trade Agreement Countries
Office of Fossil Energy,
Department of Energy.
ACTION: Record of decision.
AGENCY:
The U.S. Department of
Energy (DOE) announces its decision in
Lake Charles Exports, LLC (LCE), DOE/
FE Docket No. 11–59–LNG, to issue
DOE/FE Order No. 3324–A, granting
final long-term, multi contract
authorization for LCE to engage in the
export of domestically produced
liquefied natural gas (LNG) from the
Lake Charles Terminal located in Lake
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SUMMARY:
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Charles, Calcasieu Parish, Louisiana
(Terminal), in a volume equivalent to
730 Bcf/yr of natural gas for a term of
20 years. LCE is seeking to export LNG
from the Terminal to countries with
which the United States has not entered
into a free trade agreement (FTA) that
requires national treatment for trade in
natural gas, and with which trade is not
prohibited by U.S. law or policy (nonFTA countries). Order No. 3324–A is
issued under section 3 of the Natural
Gas Act (NGA) 1 and 10 CFR part 590 of
DOE’s regulations.2 DOE participated as
a cooperating agency with the Federal
Energy Regulatory Commission (FERC)
in preparing an environmental impact
statement (EIS) 3 analyzing the potential
environmental impacts resulting from
modification of the existing facilities at
the Terminal.
ADDRESSES: The EIS and this Record of
Decision (ROD) are available on DOE’s
National Environmental Policy Act
(NEPA) Web site at: https://energy.gov/
nepa/nepa-documents. Order No. 3324–
A is available on DOE/FE’s Web site at:
https://www.fossil.energy.gov/programs/
gasregulation/authorizations/2011_
applications/lake_charles_exports.html.
For additional information about the
docket in these proceedings, contact
Larine Moore, U.S. Department of
Energy, Office of Regulation and
International Engagement, Office of Oil
and Natural Gas, Office of Fossil Energy,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: To
obtain additional information about the
EIS or the ROD, contact Mr. Kyle W.
Moorman, U.S. Department of Energy
(FE–34), Office of Regulation and
International Engagement, Office of Oil
and Natural Gas, Office of Fossil Energy,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585,
(202) 586–5600, or Mr. Edward Le Duc,
U.S. Department of Energy (GC–51),
Office of the Assistant General Counsel
for Environment, 1000 Independence
Avenue SW., Washington, DC 20585.
SUPPLEMENTARY INFORMATION: DOE
prepared this ROD and Floodplain
Statement of Findings pursuant to the
National Environmental Policy Act of
1969 (42 United States Code [U.S.C.]
1 The authority to regulate the imports and
exports of natural gas, including liquefied natural
gas, under section 3 of the NGA (15 U.S.C. 717b)
has been delegated to the Assistant Secretary for FE
in Redelegation Order No. 00–006.02 issued on
November 17, 2014.
2 10 CFR part 590 (2012).
3 Federal Energy Regulatory Commission, Final
Environmental Impact Statement for the Lake
Charles Liquefaction Project, Docket Nos. CP14–
119–000, CP14–120–000, and CP14–122–000 (Aug.
2015).
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Sfmt 4703
4321, et seq.), and in compliance with
the Council on Environmental Quality
(CEQ) implementing regulations for
NEPA (40 Code of Federal Regulations
[CFR] parts 1500 through 1508), DOE’s
implementing procedures for NEPA (10
CFR part 1021), and DOE’s ‘‘Compliance
with Floodplain and Wetland
Environmental Review Requirements’’
(10 CFR part 1022).
Background
LCE is a Delaware limited liability
company with its principal place of
business in Houston, Texas. In a Notice
of Change in Control recently submitted
to DOE/FE,4 LCE states that, on
February 15, 2016, Royal Dutch Shell,
plc (Shell) acquired all of the share
capital of BG Group plc (BG). Prior to
the transaction, LCE was owned by
subsidiaries of BG and Energy Transfer
Equity, L.P. (ETE), and LCE’s affiliate,
BG LNG Services, LLC (BGLS), was an
indirect subsidiary of BG. As a result of
the transaction, LCE is now owned by
subsidiaries of Shell and ETE 5 and
BGLS is now an indirect wholly-owned
subsidiary of Shell. According to LCE,
LCE will remain the authorization
holder for its existing DOE/FE
authorizations and/or the applicant in
its pending DOE/FE proceedings.
On May 6, 2011, LCE filed the
application (Application) with DOE/FE
seeking authorization to export
domestically produced LNG from
proposed liquefaction facilities
(Liquefaction Project) to be located at
the existing Terminal in Lake Charles,
Louisiana. LCE proposes to export this
LNG to non-FTA countries in a total
volume equivalent to 730 billion cubic
feet per year (Bcf/yr) of natural gas.
The Terminal is owned and operated
by Lake Charles LNG Company, LLC
(Lake Charles LNG, formerly Trunkline
LNG Company, LLC), a corporate
affiliate of LCE.6 The Liquefaction
Project will be owned by Lake Charles
LNG Export Company, LLC (formerly
Trunkline LNG Export, LLC), another
corporate affiliate of LCE which is
separately pursuing an authorization to
4 See Lake Charles Exports, LLC, Notice of Change
in Control (Feb. 17, 2016) and DOE/FE letter
responding to Notice (July 26, 2016) in DOE/FE
Docket No. 11–59–LNG.
5 DOE/FE takes administrative notice that Shell is
a public limited company incorporated in the
United Kingdom and headquartered in the
Netherlands. ETE is a Delaware master limited
partnership with its principal place of business in
Dallas, Texas.
6 In September 2014, Trunkline LNG Company,
LLC changed its name to Lake Charles LNG
Company, LLC. See, Lake Charles LNG Export Co.
LLC, DOE/FE Order No. 3252–A, FE Docket No. 13–
04–LNG, Order Granting Request to Amend DOE/
FE Order No. 3252 and Pending Application to
Reflect Corporate Name Change (Mar. 18, 2015).
E:\FR\FM\05AUN1.SGM
05AUN1
Agencies
[Federal Register Volume 81, Number 151 (Friday, August 5, 2016)]
[Notices]
[Pages 51867-51870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18651]
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DEPARTMENT OF ENERGY
Record of Decision and Floodplain Statement of Findings for the
Lake Charles LNG Export Company, LLC Application To Export Liquefied
Natural Gas to Non-Free Trade Agreement Countries
AGENCY: Office of Fossil Energy, Department of Energy.
ACTION: Record of decision.
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SUMMARY: The U.S. Department of Energy (DOE) announces its decision in
Lake Charles LNG Export Company, LLC (Lake Charles LNG Export), DOE/FE
Docket No. 13-04-LNG,\1\ to issue DOE/FE Order No. 3868 granting final
long-term, multi contract authorization for Lake Charles LNG Export to
engage in export of domestically produced liquefied natural gas (LNG)
from the Lake Charles Terminal located in Lake Charles, Calcasieu
Parish, Louisiana (Terminal), in a volume equivalent to 730 Bcf/yr of
natural gas for a term of 20 years. Lake Charles LNG Export is seeking
to export LNG from the Terminal to countries with which the United
States has not entered into a free trade agreement (FTA) that requires
national treatment for trade in natural gas, and with which trade is
not prohibited by U.S. law or policy (non-FTA countries). Order No.
3868 is issued under section 3 of the Natural Gas Act (NGA) \2\ and 10
CFR part 590 of the DOE regulations.\3\ DOE participated as a
cooperating agency with the Federal Energy Regulatory Commission (FERC)
in preparing an environmental impact statement (EIS) \4\ analyzing the
potential
[[Page 51868]]
environmental impacts resulting from modification of the existing
facilities at the Terminal.
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\1\ On Oct. 10, 2014, Trunkline LNG Export, LLC filed a request
in DOE/FE Dkt. No. 13-04-LNG to change its corporate name to Lake
Charles LNG Export Company, LLC. Subsequently, DOE/FE issued Order
3252-A granting the name change. See Lake Charles LNG Export
Company, LLC, DOE/FE Order No. 3252-A, FE Dkt. No. 13-04-LNG (March
18, 2015).
\2\ The authority to regulate the imports and exports of natural
gas, including liquefied natural gas, under section 3 of the NGA (15
U.S.C. 717b) has been delegated to the Assistant Secretary for FE in
Redelegation Order No. 00-006.02 issued on November 17, 2014.
\3\ 10 CFR part 590 (2012).
\4\ Federal Energy Regulatory Commission, Final Environmental
Impact Statement for the Lake Charles Liquefaction Project, Docket
Nos. CP14-119-000, CP14-120-000, and CP14-122-000 (Aug. 2015).
ADDRESSES: The EIS and this Record of Decision (ROD) are available on
DOE's National Environmental Policy Act (NEPA) Web site at: https://energy.gov/nepa/nepa-documents. Order No. 3868 is available on DOE/FE's
Web site at: https://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/Lake_Charles_LNG_Export_13-04-LNG.html. For additional information about the docket in these
proceedings, contact Larine Moore, U.S. Department of Energy (FE-34),
Office of Regulation and International Engagement, Office of Oil and
Natural Gas, Office of Fossil Energy, Room 3E-042, 1000 Independence
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Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: To obtain additional information about
the EIS or the ROD, contact Mr. Kyle W. Moorman, U.S. Department of
Energy (FE-34), Office of Regulation and International Engagement,
Office of Oil and Natural Gas, Office of Fossil Energy, Room 3E-042,
1000 Independence Avenue SW., Washington, DC 20585, (202) 586-5600, or
Mr. Edward Le Duc, U.S. Department of Energy (GC-51), Office of the
Assistant General Counsel for Environment, 1000 Independence Avenue
SW., Washington, DC 20585.
SUPPLEMENTARY INFORMATION: DOE prepared this ROD and Floodplain
Statement of Findings pursuant to the National Environmental Policy Act
of 1969 (42 United States Code [U.S.C.] 4321, et seq.), and in
compliance with the Council on Environmental Quality (CEQ) implementing
regulations for NEPA (40 Code of Federal Regulations [CFR] parts 1500
through 1508), DOE's implementing procedures for NEPA (10 CFR part
1021), and DOE's ``Compliance with Floodplain and Wetland Environmental
Review Requirements'' (10 CFR part 1022).
Background
Lake Charles LNG Export is a Delaware limited liability company,
with its principal place of business in Houston, Texas.\5\ On January
10, 2013, Lake Charles LNG Export filed the application (Application)
with DOE/FE seeking authorization to export domestically produced LNG
from proposed liquefaction facilities (Liquefaction Project) to be
located at the existing Terminal in Lake Charles, Louisiana. Lake
Charles LNG Export proposes to export this LNG to non-FTA countries in
a total volume equivalent to 730 billion cubic feet per year (Bcf/yr)
of natural gas.
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\5\ For more information on the corporate background, see DOE
Order 3868, Final Opinion and Order Granting Long-Term, Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessels
from the Lake Charles Terminal in Calcasieu Parish, Louisiana to
Non-Free Trade Agreement Nations, issued July 29, 2016.
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The Terminal is owned and operated by a corporate affiliate
currently known as Lake Charles LNG Company, LLC (Lake Charles LNG).\6\
The Liquefaction Project will be owned by Lake Charles LNG Export. Both
of these entities are owned by Energy Transfer Equity, L.P. and Energy
Transfer Partners, L.P.
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\6\ In September 2014, Trunkline LNG Company, LLC changed its
name to Lake Charles LNG Company, LLC. See, Lake Charles LNG Export
Co. LLC, DOE/FE Order No. 3252-A, FE Docket No. 13-04-LNG, Order
Granting Request to Amend DOE/FE Order No. 3252 and Pending
Application to Reflect Corporate Name Change (Mar. 18, 2015).
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Lake Charles LNG Export states that FERC certificated the Terminal
in 1977 and the original construction was completed in 1981.\7\
According to Lake Charles LNG Export, the Terminal currently has a firm
sustained sendout capacity of 1.8 Bcf/d and a peak sendout capacity of
2.1 Bcf/day. The Terminal has four LNG storage tanks with a combined
capacity of approximately 425,000 cubic meters of LNG, or approximately
9.0 Bcf of natural gas. The Terminal's natural gas liquids processing
facilities allow the extraction of ethane and other heavier
hydrocarbons from the LNG stream.
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\7\ Trunkline LNG Co., et al., 58 FPC 726 (Opinion No. 796),
order on reh'g 58 FPC 2935 (1977) (Opinion No. 796-A).
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Project Description
Among other features, the Liquefaction Project will include a new
liquefaction facility consisting of three liquefaction trains,
modifications and upgrades at the existing Terminal, and approximately
0.5 miles of 48-inch diameter feed gas line in Calcasieu Parish,
Louisiana, to supply natural gas to the liquefaction facility from
existing gas transmission pipelines.\8\
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\8\ See Trunkline LNG Company, LLC et al., Supplemental Notice
of Intent to Prepare an Environmental Impact Statement for the
Planned Lake Charles Liquefaction Project and Request for Comments
on Environmental Issues, FERC Docket No. PF12-8-000, at 2 (Mar. 21,
2013), available at https://energy.gov/sites/prod/files/EIS-0491-FERC-SNOI-2013.pdf.
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Lake Charles LNG Export states that, following completion of the
Liquefaction Project, the Terminal will be bi-directional, meaning it
will be capable of importing or exporting LNG, and its peak and
sustained sendout capabilities will not be affected.
EIS Process
FERC was the lead federal agency and initiated the NEPA process by
publishing a Notice of Intent (NOI) to prepare an EIS in the Federal
Register (FR) on September 20, 2012 (77 FR 58373); DOE was a
cooperating agency. FERC issued the draft EIS for the Liquefaction
Project on April 10, 2015 (80 FR 20489), and the final EIS on August
20, 2015 (80 FR 50622). The final EIS addresses comments received on
the draft EIS. Among other resource areas, the final EIS addresses
geology, soils, water, wetlands, wildlife, air quality and noise,
cumulative impacts and alternatives.\9\
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\9\ See Final EIS at 1-10, Table 1.3-1 Key Environmental
Concerns Identified During the Scoping Process for the Lake Charles
Liquefaction Project.
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The final EIS recommended that FERC subject any approval of Lake
Charles LNG Export's proposed Liquefaction Project to 96 conditions to
reduce the environmental impacts that would otherwise result from the
construction and operation of the project. On December 17, 2015, FERC
issued an Order Granting Section 3 and Section 7 Authorizations and
Approving Abandonment (FERC Order),\10\ which authorized Lake Charles
LNG to site, construct, and operate the Lake Charles Liquefaction
Project, subject to 95 of the 96 environmental conditions in Appendix B
of that Order.
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\10\ Trunkline Gas Co., LLC, et al., Order Granting Section 3
and Section 7 Authorizations and Approving Abandonment, 153 FERC ]
61,300 (Dec. 17, 2015).
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In accordance with 40 CFR 1506.3, after an independent review of
FERC's final EIS, DOE/FE adopted FERC's final EIS for the Lake Charles
Liquefaction Project (DOE/EIS-0491), and the U.S. Environmental
Protection Agency published a notice of the adoption on July 15, 2016
(81 FR 46077).
Addendum to Environmental Review Documents Concerning Exports of
Natural Gas From the United States (Addendum)
On June 4, 2014, DOE/FE published the Draft Addendum to
Environmental Review Documents Concerning Exports of Natural Gas From
the United States (Draft Addendum) for public comment (79 FR 32258).
The purpose of this review was to provide additional information to the
public concerning the potential environmental impacts of unconventional
natural gas exploration and production activities, including hydraulic
fracturing. Although not required by NEPA, DOE/FE prepared the Addendum
in an effort to be responsive to the public and to provide
[[Page 51869]]
the best information available on a subject that had been raised by
commenters in this and other LNG export proceedings.
The 45-day comment period on the Draft Addendum closed on July 21,
2014. DOE/FE received 40,745 comments in 18 separate submissions, and
considered those comments in issuing the Final Addendum on August 15,
2014. DOE provided a summary of the comments received and responses to
substantive comments in Appendix B of the Addendum. DOE/FE has
incorporated the Draft Addendum, comments, and Final Addendum into the
record in this proceeding.
Alternatives
The EIS assessed alternatives that could achieve the Liquefaction
Project objectives. The range of alternatives analyzed included the No-
Action Alternative, system alternatives, pipeline system alternatives,
alternative liquefaction facility sites, alternative terminal
configurations, alternative aboveground facility sites for pipeline
expansion, and alternative power sources. Alternatives were evaluated
and compared to the Liquefaction Project to determine if the
alternatives were environmentally preferable.
Under the No-Action Alternative, the Liquefaction Project would not
be developed. Additionally, the potential adverse and beneficial
environmental impacts discussed within the EIS would not occur.
Furthermore, this alternative could also require that potential end-
users make different arrangements to obtain natural gas services, use
other fossil fuel energy sources (e.g. coal or fuel oil), or possibly
use traditional long-term energy sources (e.g. nuclear power) and/or
renewable energy sources to compensate for lack of natural gas that
would otherwise come from the supplies produced by the Liquefaction
Project.
The EIS evaluated system alternatives for the Liquefaction Project,
including six operating LNG import terminals in the Gulf of Mexico
area, and several proposed or planned export projects along the Gulf
Coast. All of the system alternatives were eliminated from further
consideration for reasons that include the need for substantial
construction beyond that currently proposed, production volume
limitations, in-service dates scheduled significantly beyond Lake
Charles LNG Export's commitments to its customers, and potential
environmental impacts that were considered comparable to or greater
than those of the Liquefaction Project.
The EIS evaluated three pipeline system alternatives for the
Liquefaction Project. In order to be a viable pipeline system
alternative, the alternative system would have to transport all or a
part of the volume of natural gas required for liquefaction at the
proposed new facility and cause significantly less impact on the
environment. Additionally, a legitimate pipeline alternative must
either connect directly to the proposed facility or to the existing
pipeline system. Each of the three alternatives pipeline systems
considered would require significant expansions in their looping and
compression capabilities to achieve the necessary delivery capacity and
require the construction of new segments to connect directly with the
liquefaction facility. The construction associated with the
alternatives, including significantly increasing pipeline looping
capability or expansion would result in environmental impacts equal to
or greater than the proposed pipeline system. As a result, none of the
three proposed pipeline alternatives would provide a significant
environmental advantage over the existing and proposed pipeline system.
The EIS evaluated five Liquefaction Project sites (including the
current proposed site), all within relative close proximity to the
existing Terminal. Construction of the Terminal at each of the
alternative sites would have greater environmental impacts when
compared to the proposed Terminal site; therefore, none of the four
other sites evaluated were determined to be environmentally preferred.
For the Liquefaction Project configuration (e.g. siting for
components such as liquefaction trains, pretreatment units and pipeline
connections), the EIS considered the use design and configuration
subject to the requirements of 49 CFR 193 and other industry or
engineering standards. The EIS evaluated factors such as locations of
interconnecting LNG transfer piping, operational noise, vapor
dispersion requirements, and site evaluation associated with impacts on
surrounding wetlands. Regulatory requirements associated with thermal
exclusion and vapor dispersion zones would require additional fill
material to increase elevation at the site that will likely cause
further wetland losses on the site. As a result, the proposed
configuration was determined to be environmentally preferred.
The EIS evaluated several alternative sites for the proposed above-
ground facilities (e.g. one new compressor (Compressor Station 203-A)
station and five new metering stations) for pipeline expansion. In each
of the alternative sites analyzed for the facilities, the environmental
impacts from construction and operational activities (e.g., increased
noise and air emissions) would not be environmentally preferred to the
proposed sites.
Environmentally Preferred Alternative
When compared against the other action alternatives assessed in the
EIS, as discussed above, the Lake Charles Liquefaction Project is the
environmentally preferred alternative. While the No-Action Alternative
would avoid the environmental impacts identified in the EIS, adoption
of this alternative would not meet the Liquefaction Project objectives.
Decision
DOE has decided to issue Order No. 3868 authorizing Lake Charles
LNG Export to export domestically produced LNG by vessel from the
Terminal located in Lake Charles, Calcasieu Parish, Louisiana, in a
volume up to the equivalent to 730 Bcf/yr of natural gas for a term of
20 years to commence on the earlier of the date of first export or
seven years from the date that the Order is issued.
Concurrently with this Record of Decision, DOE is issuing Order No.
3868 in which it finds that the requested authorization has not been
shown to be inconsistent with the public interest and the Application
should be granted subject to compliance with the terms and conditions
set forth in the Order, including the environmental conditions
recommended in the EIS and adopted in the FERC Order at Appendix B.
Additionally, this authorization is conditioned on Lake Charles LNG
Export's compliance with any other preventative and mitigative measures
imposed by other Federal or state agencies.
Basis of Decision
DOE's decision is based upon the analysis of potential
environmental impacts presented in the EIS, and DOE's determination in
Order No. 3868 that the opponents of Lake Charles LNG Export's
Application have failed to overcome the statutory presumption that the
proposed export authorization is not inconsistent with the public
interest. Although not required by NEPA, DOE/FE also considered the
Addendum, which summarizes available information on potential upstream
impacts associated with unconventional natural gas activities, such as
hydraulic fracturing.
[[Page 51870]]
Mitigation
As a condition of its decision to issue Order No. 3868 authorizing
Lake Charles LNG Export to export LNG to non-FTA countries, DOE is
imposing requirements that will avoid or minimize the environmental
impacts of the project. These conditions include the environmental
conditions recommended in the EIS and adopted in the FERC Order at
Appendix B. Mitigation measures beyond those included in Order No. 3868
that are enforceable by other Federal and state agencies are additional
conditions of Order No. 3868. With these conditions, DOE/FE has
determined that all practicable means to avoid or minimize
environmental harm from the Liquefaction Project have been adopted.
Floodplain Statement of Findings
DOE prepared this Floodplain Statement of Findings in accordance
with DOE's regulations entitled ``Compliance with Floodplain and
Wetland Environmental Review Requirements'' (10 CFR part 1022). The
required floodplain assessment was conducted during development and
preparation of the EIS (see Sections 3.3.1, 3.3.2, 4.1.3.4, and
4.13.2.1 of the EIS). DOE determined that the placement of some project
components within floodplains would be unavoidable. However, the
current design for the Lake Charles Liquefaction Project minimizes
floodplain impacts to the extent practicable.
Issued in Washington, DC, on July 29, 2016.
Christopher A. Smith,
Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2016-18651 Filed 8-4-16; 8:45 am]
BILLING CODE 6450-01-P