[Federal Register Volume 75, Number 196 (Tuesday, October 12, 2010)]
[Notices]
[Pages 62510-62512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25545]
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DEPARTMENT OF ENERGY
[FE Docket No. 10-114-LNG]
Chevron U.S.A. Inc.; 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
September 9, 2010, by Chevron U.S.A. Inc. (Chevron), 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 72 billion cubic feet (Bcf) of natural gas on a
short-term or spot market basis over a two year period commencing on
the date of the authorization. The LNG would be exported from the
Sabine Pass LNG Terminal (Sabine Pass) owned by Sabine Pass LNG, L.P.,
in Cameron Parish, Louisiana 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. 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 no later than 4:30 p.m.,
eastern time, November 12, 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 Marc Talbert, 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) 586-7991.
Edward Myers, U.S. Department of Energy, Office of General Counsel,
Fossil Energy and Energy Efficiency, Forrestal Building, Room 6B-159,
1000 Independence Ave. SW., Washington, DC 20585, (202) 586-3397.
SUPPLEMENTARY INFORMATION:
Background
Chevron is a Pennsylvania corporation with its principal place of
business in San Ramon, California. Chevron Global Gas is a division of
Chevron that engages in the global business of marketing and trading
LNG. Chevron has contracted for 1.0 Bcf per day of terminal capacity
from Sabine Pass for an initial term of twenty years that commenced in
November 2004 with the option to extend the term for a period of twenty
years. On July 14, 2010, DOE/FE Order No. 2813 granted Chevron blanket
authorization to import the equivalent of up to 800 Bcf of natural gas
from various international sources for a two year period beginning on
August 1, 2010. Under the terms of the blanket authorization, LNG may
be imported at any LNG receiving facility in the United States and its
territories.
Current Application
In the instant application, Chevron requests blanket authorization
to export up to 72 Bcf of previously imported LNG, on a cumulative
basis, over a two-year period beginning on the date the authorization
is granted. Chevron requests that such authorization apply to
previously imported LNG to which Chevron holds title, and to previously
imported LNG that Chevron may export on behalf of other parties that
hold title to such LNG. Chevron is seeking authorization to export such
previously imported LNG to any country with the capacity to import LNG
via ocean-going carrier and with which trade is not prohibited by
Federal law or policy. Chevron does not request authority to export any
domestically produced natural gas or LNG.
The blanket export authorization requested by Chevron would be
applicable to exports from the Sabine Pass terminal, owned by Sabine
Pass LNG, L.P. in Cameron Parish, Louisiana. Chevron states that DOE/FE
recently granted an authorization for exports from this terminal by
another party \1\ and has granted other authorizations under similar
requests.\2\ Chevron states that there are no other proceedings related
to this application currently pending before the DOE or any other
federal agency.
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\1\ Cheniere Marketing, LLC, FE 10-31-LNG, DOE/FE Opinion and
Order No. 2795 (June 1, 2010).
\2\ Freeport LNG Development, L.P., DOE/FE 08-70-LNG, DOE/FE
Order Nos. 2644 (May 28, 2009),
2644-A (September 22, 2009), and 2644-B (May 11, 2010); and
ConocoPhillips Company, FE 09-92-LNG, DOE/FE
Order No. 2731 (November 30, 2009).
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As background, Chevron states the request to export previously
imported LNG is based on its desire to optimize long-term capacity it
has contracted for at the Sabine Pass terminal by responding
effectively to periodic changes in domestic and world markets for
natural gas and LNG. More specifically, Chevron asserts it desires the
option to either export previously imported LNG to other world markets,
or regasify the imported LNG for sale in domestic markets. Chevron
states that it would base any decision related to the sale of imported
LNG on prevailing market conditions. Chevron asserts that it does not
intend to export any LNG when market conditions dictate that the LNG be
used to meet domestic needs.
Public Interest Considerations
In support of its application, Chevron states that pursuant to
section 3 of the NGA, FE must authorize exports to a foreign country
unless there is a finding that such exports ``will not be consistent
with the public interest.'' \3\ Chevron states that section 3 creates a
statutory presumption in favor of approval of a properly framed export
Application.\4\
[[Page 62511]]
Chevron states further, in evaluating an export application, FE applies
the principles described in DOE Delegation Order No. 0204-111 which
states that domestic need for natural gas shall be the primary focus of
DOE when evaluating an export application.\5\ Finally, as detailed
below, Chevron states that this blanket export authorization request
satisfies the public interest standard of section 3 of the NGA, as
construed by DOE.
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\3\ 15 U.S.C. 717b(a).
\4\ See Phillips Alaska Natural Gas Corp. and Marathon Oil Co.,
DOE/FE Order No. 1473, 2 FE]70,317 at p. 13, n. 42 (April 2, 1999),
citing Panhandle Producers and Royalty Owners Association v. ERA,
822 f. 2d 1105, 1111 (DC Cir. 1987).
\5\ Ibid, at p. 14.
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Chevron states that there is no domestic reliance on the imported
LNG that Chevron would export pursuant to the blanket authorization
requested. In support, Chevron states that in June 2010, FE granted
Cheniere Marketing, LLC (Cheniere) blanket authorization to export up
to 500 Bcf of previously imported LNG. Chevron states that FE concluded
that ``the record shows there is sufficient supply of natural gas to
satisfy domestic demand from multiple other sources at competitive
prices without drawing on the LNG which Cheniere seeks to export
throughout the authorization timeframe.'' \6\ Chevron also states that
DOE/FE reached the same conclusion for the ConocoPhillips Company
proceeding granting ConocoPhillips blanket authorization to export
previously imported LNG up to the equivalent of 500 Bcf of natural
gas.\7\ Chevron states that FE based its conclusions on data prepared
by DOE's Energy Information Administration, as detailed in DOE/FE Order
No. 2795. Specifically, FE stated, ``DOE's review of domestic natural
gas market data in 2009 versus 2007 shows an increase in domestic dry
gas production, a slight decrease in domestic demand, and a decrease in
both total LNG imports and net natural gas imports.'' With this
background, Chevron states that the 72 Bcf of previously imported LNG
for which Chevron seeks blanket authorization to export is not needed
to meet domestic demand.
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\6\ Cheniere Marketing, LLC, DOE/FE Order No. 2795 (June 1,
2010) at p. 11.
\7\ ConocoPhillips Company, DOE/FE Order No. 2731 (November 30,
2009).
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Chevron asserts that granting the blanket export authorization
would encourage Chevron to purchase spot market LNG cargoes for import
into the United States, and would make more natural gas available to
the domestic market if it were needed, or alternatively, export the
previously imported LNG to other world markets, depending on the
prevailing market conditions.
Chevron states it is only seeking the authority to export
previously imported LNG, and not seeking the authority to export
domestically produced natural gas supplies. Thus, Chevron states that
its request for blanket authorization, herein, will not reduce
domestically produced natural gas supplies available to the domestic
market.
Environmental Impact
Chevron states that no modifications to the Sabine Pass LNG
Terminal are required to enable the proposed exports of LNG. Chevron
asserts that consequently, granting this application will not
constitute a federal action significantly affecting the human
environment within the meaning of the National Environmental Policy Act
(NEPA), 42 U.S.C. 4321 et seq.
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 natural 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
You may submit comments in electronic form on the Federal
eRulemaking Portal at http://www.regulations.gov. Alternatively,
written comments can be submitted using the procedures discussed below.
If using electronic filing, follow the on-line instructions and submit
such comments under FE Docket No. 10-114-LNG. DOE/FE suggests that
electronic filers carefully review information provided in their
submissions, and include only information that is intended to be
publicly disclosed. You may not electronically file a protest, motion
to intervene, or notice of intervention, but may submit such pleadings
using the following process.
In response to this notice, any person may file a protest, motion
to intervene or notice of intervention or written comments, as provided
in DOE's regulations at 10 CFR part 590.
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 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 may 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. Except
where comments are filed electronically, as described above, comments,
protests, motions to intervene, notices of intervention, and requests
for additional procedures 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.
[[Page 62512]]
The application filed by Chevron 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 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: http://www.fe.doe.gov/programs/gasregulation/index.html. In addition, any
electronic comments filed will also be available at: http://www.regulations.gov.
Issued in Washington, DC, on October 4, 2010.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2010-25545 Filed 10-8-10; 8:45 am]
BILLING CODE 6450-01-P