[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Notices]
[Pages 2093-2095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-481]
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DEPARTMENT OF ENERGY
[FE Docket No. 10-152-LNG]
Eni USA Gas Marketing LLC; 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
November 30, 2010, by Eni USA Gas Marketing LLC (Eni USA), 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 100 billion cubic feet
(Bcf) of natural gas. The LNG would be exported from the Cameron LNG
Terminal (Cameron Terminal), owned by Cameron, LNG, LLC 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. Eni USA 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). 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., eastern time, February 11, 2011.
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 Electricity and Fossil Energy, Forrestal Building,
Room 6B-159, 1000 Independence Ave., SW., Washington, DC 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
Eni USA is a Delaware limited liability company with its principal
place of business in Houston, Texas. Eni USA is a wholly-owned
subsidiary of Eni Petroleum Co., Inc., a Delaware corporation. Eni USA
is engaged in the business of purchasing and marketing supplies of
natural gas and LNG. Eni USA is a customer of the Cameron Terminal in
Cameron Parish, LA.
On May 12, 2010, FE granted Eni USA blanket authorization to import
LNG up to the equivalent of 400 Bcf of natural gas from various
international sources for a two-year term beginning on May 12, 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\ Eni USA Gas Marketing LLC, DOE/FE Order No. 2786 issued May
12, 2010.
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Current Application
In the instant application, Eni USA is seeking blanket
authorization to export from its capacity at the Cameron 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. Eni USA seeks authorization to
export this LNG over a two-year period in an amount up to the
equivalent of 100 Bcf of natural gas beginning on the date such
authorization is granted, but no later than March 1, 2011. Eni USA
states that it does not seek authorization to export domestically-
produced LNG or natural gas.
[[Page 2094]]
Public Interest Considerations
In support of its application, Eni USA 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\ Eni USA states that there is
thus a presumption in favor of a finding that the Application is in the
public interest that must be rebutted.\3\ Eni USA states further that
in reviewing an application to export LNG under Section 3, DOE/FE
applies the principles set forth in DOE Delegation Order No. 0204-111,
focusing primarily on the domestic need for the gas to be exported, and
the Secretary of Energy's natural gas policy guidelines. Eni USA
asserts that in its order issued on October 5, 2010, granting LNG
export authorization to the Dow Chemical Company, the DOE/FE considered
another application to export LNG that was not produced domestically in
the U.S. Eni USA asserts that the DOE/FE stated that the fundamental
question posed by such an application with respect to the public
interest standard was whether the foreign-sourced LNG to be exported is
needed to meet domestic demand.\4\ Further, Eni USA states that the
order pointed to a number of factors indicating that U.S. consumers
currently have access to substantial quantities of natural gas
sufficient to meet U.S. domestic demand without drawing on the foreign-
sourced LNG sought to be re-exported, including the fact that the DOE's
Energy Information Agency forecasts increasing U.S. domestic shale gas
production through 2015.\5\
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\2\ 15 U.S.C. 717b.(a).
\3\ Panhandle Producers and Royalty Owners Association v. ERA,
822 F.2d 1105, 1111 (DC Cir. 1987).
\4\ Dow Chemical Co., DOE/FE Order No. 2859, October 5, 2010 at
pp. 3 and 4.
\5\ Id. at pp. 4 and 5.
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As detailed in the application, Eni USA states the blanket export
authorization it seeks satisfies the public interest standard, based on
the same evidence recognized by DOE/FE in two recent similar
applications/orders.\6\ Eni USA states that the LNG that may be
exported pursuant to the blanket authorization requested in the
Application is not needed to meet domestic demand. Eni USA states that
granting the requested export authorization will encourage the
continued importation of LNG into the United States. Eni USA also
states that granting the requested export authorization will not
diminish domestically-produced natural gas supplies. Further details
can be found in the Application, which has been posted at http://www.fe.doe.gov/programs/gasregulation/index.html.
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\6\ Id, and Cheniere Marketing, LLC, DOE/FE/Order No. 2795, June
1, 2010.
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Environmental Impact
Eni USA states that its requested LNG export authorization does not
require the construction of any new facilities (or modifications to any
existing facilities) at the Cameron Terminal but that the owner of the
Cameron Terminal, Cameron LNG, LLC, has filed a still-pending
application before the Federal Energy Regulatory Commission seeking
authority to provide LNG export services at the Cameron Terminal.
Exports of LNG from the Cameron Terminal also would not increase the
number of LNG carriers that the Cameron Terminal is designed and
authorized to accommodate. Eni USA states that approval of the
Application would not constitute a federal action significantly
affecting the human environment under the National Environmental Policy
Act (NEPA).\7\ Eni USA further states, as the DOE/FE has recognized in
similar cases, approval of this Application would not require an
environmental impact statement or environmental assessment.\8\
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\7\ 42 U.S.C. 4321 et seq.C
\8\ For example, Cheniere Marketing, LLC, DOE/FE Order No. 2795,
June 1, 2010 at p. 7.
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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. 00-002.00J (Sept. 17, 2010) 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
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. 10-152-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.
In addition to electronic filings using the procedures above, 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 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
[[Page 2095]]
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 Eni USA is available for inspection and
copying in the Office of Oil and Gas Global Security and Supply docket
room, 3E-042, at the address listed in ADDRESSES. 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 January 5, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2011-481 Filed 1-11-11; 8:45 am]
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