[Federal Register Volume 75, Number 126 (Thursday, July 1, 2010)]
[Notices]
[Pages 38092-38093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16044]
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DEPARTMENT OF ENERGY
[FE Docket No. 10-57-LNG]
The Dow Chemical Company; Application for Blanket Authorization
To Export Liquefied Natural Gas
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of application.
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SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy
(DOE) gives notice of receipt of an application (Application), filed on
May 26, 2010, by The Dow Chemical Company (Dow), requesting blanket
authorization to export liquefied natural gas (LNG) that previously had
been imported into the United States from foreign sources in an amount
up to the equivalent of 390 billion cubic feet (Bcf) of natural gas on
a short-term or spot market basis. The LNG would be exported from
existing facilities on Quintana Island, Texas, 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. Dow seeks to export the LNG over
a two-year period commencing on the date of the authorization. The
application was filed under section 3 of the Natural Gas Act (NGA), as
amended by section 201 of the Energy Policy Act of 1992. 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 in ADDRESSES no later than
4:30 p.m., e.t., August 2, 2010.
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 Lisa Tracy, U.S. Department of Energy (FE-34), Office
of Oil and Gas Global Security and Supply, Office of Fossil Energy,
Forrestal Building, Room 3E-042,1000 Independence Avenue, SW.,
Washington, DC 20585, (202) 586-9478; (202) 586-9387.
Edward Myers, U.S. Department of Energy, Office of the Assistant
General Counsel for Electricity and Fossil Energy, Forrestal Building,
Room 6B-159, 1000 Independence Ave. SW., Washington, D.C. 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
Dow is a Delaware corporation with its principal place of business
in Midland, Michigan. Dow is an international chemical and plastics
manufacturing company with operations in a number of U.S. states. Dow
owns and operates a large petrochemical manufacturing facility in
Freeport, Texas, which is in close proximity to the LNG import/export
terminal owned and operated by Freeport LNG Development, L.P. (FLNG) on
Quintana Island, Texas. Dow contracted terminal capacity from FLNG for
a twenty-year period beginning in July 2008 in order to secure natural
gas supplies for various operations at its Freeport petrochemical
facility. Dow's Freeport facility has the capability to receive
regasified LNG from the FLNG terminal via several pipelines that extend
directly to its petrochemical manufacturing plant.
On February 25, 2010, FE granted Dow blanket authorization to
import and export natural gas from and to Canada and Mexico and to
import LNG from various international sources for a two-year term
beginning on June 1, 2010.\1\ Under the terms of the blanket
authorization, the LNG may be imported to any LNG receiving facility in
the United States or its territories.
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\1\ The Dow Chemical Company, DOE/FE Order No. 2754 issued
February 25, 2010.
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Current Application
In the instant application, Dow is seeking blanket authorization to
export from the FLNG terminal LNG that has been previously imported
from foreign sources to any country with the capacity to import LNG via
ocean-going carrier and with which trade is not prohibited by U.S. law
over a two-year period, on a short-term or spot market basis, in an
amount up to the equivalent of 390 Bcf of natural gas. Dow further
requests that the authorization extend to LNG supplies imported from
foreign sources to which Dow acquires title, as well as to LNG supplies
imported from foreign sources that Dow may export on behalf of other
entities who themselves hold title. Dow states that it does not seek
authorization to export domestically-produced natural gas.
Public Interest Considerations
In support of its application, Dow states that pursuant to section
3 of the NGA, FE is required to authorize exports to a foreign country
unless there is a finding that such exports ``will not be consistent
with the public interest.'' \2\ Dow states that section 3 thus creates
a statutory presumption in favor of a properly framed export
application.\3\ Dow states further that the public interest
determination is guided by DOE Delegation Order No. 0204-111, which
provides that the domestic need for natural gas is the principal factor
to be considered when evaluating an export application.\4\
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\2\ 15 U.S.C. 717b.(a)
\3\ Phillips Alaska Natural Gas Corp. and Marathon Oil Co., DOE/
FE Order No. 1473 (2 FE ] 70,317) at 13 (April 2, 1999), citing
Panhandle Producers and Royalty Owners Association v. ERA, 822 F.2d
1105, 1111 (DC Cir. 1987).
\4\ Id at 14.
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As detailed in the application, Dow states the blanket export
authorization requested by Dow satisfies the public interest standard
for the following
[[Page 38093]]
reasons. Dow states that the LNG that may be exported pursuant to the
blanket authorization requested in the Application is not needed to
meet domestic demand. Dow states that granting the requested export
authorization will facilitate the importation of LNG into the United
States. Dow also states that granting the requested export
authorization will not reduce domestically-produced natural gas
supplies. Finally, Dow states that granting the requested export
authorization will have positive international effects. Further details
can be found in the Application.
Environmental Impact
Dow states that its requested export authorization does not raise
any environmental concerns. Dow states that FERC performed an
environmental review under the National Environmental Policy Act
(NEPA), with DOE acting as a cooperating agency, prior to granting FLNG
the authority to modify its LNG terminal facilities to enable LNG
exports as well as imports. Dow states that DOE/FE relied on such NEPA
review and found it to be sufficient in the granting of FLNG's
application for blanket authority to export previously imported LNG \5\
as well as the granting of authority to ConocoPhillips Company to
export previously imported LNG from the FLNG terminal.\6\ Dow asserts
that consequently, the same conclusion is applicable to this
Application insofar as the blanket authorization requested by Dow is
substantially identical to the blanket authorization granted to FLNG
and ConocoPhillips Company.
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\5\ Freeport LNG Development, L.P., Order No. 2644, June 8, 2009
at p. 12.
\6\ ConocoPhillips Company, DOE/FE Order No. 2731, November 30,
2009 at p. 11.
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DOE/FE Evaluation
This export application will be reviewed pursuant to section 3 of
the NGA, as amended, and the authority contained in DOE Delegation
Order No. 00-002.00I (Nov. 10, 2009) and DOE Redelegation Order No. 00-
002.04D (Nov. 6, 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.
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 and written comments, as
provided in DOE's regulations at 10 CFR 590.301, et seq. 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 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 shall 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 Dow is available for inspection and
copying in the Office of Oil and Gas Global Security and Supply docket
room, 3E-042, 1000 Independence Avenue, SW., Washington, DC 20585. 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 June 28, 2010.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2010-16044 Filed 6-30-10; 8:45 am]
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