[Federal Register: September 10, 2008 (Volume 73, Number 176)]
[Notices]
[Page 52650-52652]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10se08-38]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
[FE Docket No. 08-70-LNG]
Freeport LNG Development, L.P.; Application for Blanket
Authorization To Export Liquefied Natural Gas
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 filed on August 1, 2008
by Freeport LNG Development, L.P. (Freeport LNG), requesting blanket
authorization to
[[Page 52651]]
export liquefied natural gas (LNG) that previously had been imported
from foreign sources on their own behalf or as agent for others on a
short-term or spot market basis from existing facilities on Quintana
Island, Texas in an amount up to the equivalent of 24 Billion cubic
feet (Bcf) of natural gas to the United Kingdom, Belgium, Spain,
France, Italy, Japan, South Korea, India, China, and/or Taiwan over a
two-year period commencing on the date of the authorization.
The application is filed under section 3 of the Natural Gas Act (15
U.S.C. 717b), as amended by section 201 of the Energy Policy Act of
1992 (Pub. L. 102-486), and DOE Delegation Order No. 00-002.00G (Jan.
29, 2007) and DOE Redelegation Order No. 00-002.04C (Jan. 30, 2007).
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 at the address listed below no later than 4:30 p.m.,
eastern time, October 10, 2008.
ADDRESSES: 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.
Edward Myers, U.S. Department of Energy, Office of the Assistant
General Counsel for Fossil Energy and Energy Efficiency, Forrestal
Building, Room 6B-159, 1000 Independence Ave. SW., Washington, DC
20585, (202) 586-3397.
SUPPLEMENTARY INFORMATION:
Background
Freeport LNG is a Delaware limited partnership with one general
partner, Freeport LNG-GP, Inc., a Delaware corporation, which is owned
50% by an individual, Michael S. Smith, and 50% by ConocoPhillips
Company. Freeport LNG's limited partners are: (1) Freeport LNG
Investments, LLLP, a Delaware limited liability limited partnership,
which owns a 45% limited partnership interest in Freeport LNG; (2)
Cheniere FLNG, L.P., a Delaware limited partnership, which owns a 30%
limited partnership interest in Freeport LNG; (3) Texas LNG Holdings
LLC, a Delaware limited liability company and wholly-owned subsidiary
of The Dow Chemical Company, which owns a 15% limited partnership
interest in Freeport LNG; and (4) Turbo LNG LLC, a Delaware limited
liability company and wholly-owned subsidiary of Osaka Gas Co., Ltd.,
which owns a 10% limited partnership interest in Freeport LNG.
The Federal Energy Regulatory Commission (FERC) has authorized
Freeport LNG to site, construct and operate a new LNG import, storage,
and vaporization terminal on Quintana Island, Texas and an associated
9.6-mile long send-out pipeline which will be utilized to import up to
1.55 Bcf per day of LNG.\1\ On July 1, 2008, FERC issued a letter Order
granting Freeport LNG's request to commence service at its Quintana
Island import terminal.
---------------------------------------------------------------------------
\1\ Freeport LNG Development, L.P., Order Granting Authorization
Under Section 3 of the Natural Gas Act, 107 FERC ] 61,278 (2004),
Order Granting Rehearing and Clarification, 108 FERC ] 61,253
(2004); Order Amending Section 3 Authorization, 112 FERC ] 61,194
(2005).
---------------------------------------------------------------------------
On January 15, 2008, FE granted Freeport LNG blanket authorization
to import up to 30 Bcf of LNG from various international sources for a
two-year term beginning March 1, 2008.\2\
---------------------------------------------------------------------------
\2\ Freeport LNG Development L.P., DOE/FE Order No. 2457, issued
January 15, 2008.
---------------------------------------------------------------------------
Current Application
In the instant application, Freeport LNG is seeking blanket
authorization to export LNG over a two-year period, on a short-term or
spot market basis, in an amount up to the equivalent of 24 Bcf of
natural gas, that has been imported into the United States. Freeport
LNG is seeking this authorization so that it may sell in non-U.S.
markets any imported LNG that is not required for the operation of its
facilities should U.S. market prices not support the sale of such
imported LNG domestically.
Public Interest Considerations
In support of its application, Freeport LNG states that there is no
domestic reliance on the LNG that it seeks to export. Due to global LNG
market conditions, U.S. natural gas demand and prices do not currently
support the importation of LNG into the U.S., and export authorization
is needed in order to enable the applicant to economically import LNG
for the maintenance and continual operation of the Freeport LNG
facilities.
Freeport LNG also states in its application that local natural gas
supplies will not be reduced. The applicant states that it intends to
export only foreign sourced LNG, and does not intend to export
domestically produced natural gas. Further, the applicant states that
U.S. natural gas supplies would actually increase if the requested
authorization were granted, since the boil-off gas from any LNG cargoes
delivered to the Freeport LNG terminal would be sold into U.S. markets.
Additionally, granting of the requested authorization would encourage
Freeport LNG to obtain and store spot-market LNG cargoes, making it
available to supply local markets when conditions support it, thereby
serving to moderate U.S. natural gas price volatility.
DOE/FE Evaluation
This export application will be reviewed pursuant to section 3 of
the Natural Gas Act, as amended, and the authority contained in DOE
Delegation Order No. 00-002.00G (Jan. 29, 2007) and DOE Redelegation
Order No. 00-002.04C (Jan. 30, 2007). 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.
Freeport LNG asserts the proposed authorization is in the public
interest. Under section 3 of the Natural Gas Act, as amended, an LNG
export from the United States to a foreign country must be authorized
unless ``the proposed exportation will not be consistent with the
public interest.'' Section 3 thus creates a statutory presumption in
favor of approval of this application, and parties opposing the
authorization bear the burden of overcoming this presumption.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et
seq., 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, motion
to intervene or notice of intervention, as applicable, and written
comments. Any person wishing to become a party to the proceeding and to
have their written comments considered as a basis for any decision on
the application must file a motion to intervene or notice of
intervention, as applicable. The filing of
[[Page 52652]]
a protest with respect to the application will not serve to make the
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, motions to intervene, notices of intervention, and written
comments must meet the requirements specified by the regulations in 10
CFR part 590. Protests, motions to intervene, notices of intervention,
requests for additional procedures, and written comments should be
filed with the Office of Oil and Gas Global Security and Supply at the
address listed above.
A decisional record on the application will be developed through
responses to this notice by parties, including the parties' written
comments and replies thereto. Additional procedures will be used as
necessary to achieve a complete understanding of the facts and issues.
A party seeking intervention may request that additional procedures be
provided, such as additional written comments, an oral presentation, a
conference, or trial-type hearing. Any request to file additional
written comments should explain why they are necessary. Any request for
an oral presentation should identify the substantial question of fact,
law, or policy at issue, show that it is material and relevant to a
decision in the proceeding, and demonstrate why an oral presentation is
needed. Any request for a conference should demonstrate why the
conference would materially advance the proceeding. Any request for a
trial-type hearing must show that there are factual issues genuinely in
dispute that are relevant and material to a decision and that a trial-
type hearing is necessary for a full and true disclosure of the facts.
If an additional procedure is scheduled, notice will be provided to
all parties. If no party requests additional procedures, a final
Opinion and Order may be issued based on the official record, including
the application and responses filed by parties pursuant to this notice,
in accordance with 10 CFR 590.316.
The application filed by Freeport LNG Development, L.P. is
available for inspection and copying in the Office of Oil and Gas
Global Security and Supply docket room, 3E-042, at the above address.
The docket room is open between the hours of 8 a.m. and 4:30 p.m.,
Monday through Friday, except Federal holidays. The application is also
available electronically by going to the following Web address: http://
www.fe.doe.gov/programs/gasregulation/index.html.
Issued in Washington, DC, on September 4, 2008.
Robert F. Corbin,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. E8-20991 Filed 9-9-08; 8:45 am]
BILLING CODE 6450-01-P