[Federal Register Volume 65, Number 8 (Wednesday, January 12, 2000)]
[Notices]
[Pages 1856-1857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-747]



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DEPARTMENT OF ENERGY

[FE Docket No. 99-110-LNG]


Office of Fossil Energy; Phillips Alaska Natural Gas Corporation 
and Marathon Oil 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 filed jointly on 
December 16, 1999, by Phillips Alaska Natural Gas Corporation (PANGC) 
and Marathon Oil Company (Marathon) requesting blanket authorization to 
export up to 10 trillion Btu's (approximately 10 billion cubic feet 
(Bcf)) of liquefied natural gas (LNG) to various countries. The 
proposed exports would take place over a period of two years, beginning 
on the date of first export, from the existing PANGC/Marathon LNG 
facilities at Kenai, Alaska.
    The application is filed under section 3 of the Natural Gas Act and 
DOE Delegation Order Nos. 0204-111 and 0204-127. Protests, motions to 
intervene or 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, February 11, 2000.

ADDRESSES: Office of Natural Gas and Petroleum Import and Export 
Activities, Office of Fossil Energy, U.S. Department of Energy, 
Forrestal Building, Room 3E-042, FE-34, 1000 Independence Avenue, SW, 
Washington, DC 20585.

FOR FURTHER INFORMATION:

Patrick J. Fleming, Allyson C. Reilly, Office of Natural Gas and 
Petroleum Import and Export Activities, Office of Fossil Energy, U.S. 
Department of Energy, Forrestal Building, Room 3E-042, 1000 
Independence Avenue, SW, Washington, DC 20585, (202) 586-4819, (202) 
586-9394
Diane Stubbs, Office of the Assistant General Counsel for Fossil 
Energy, U.S. Department of Energy, Forrestal Building, Room 6E-042, GC-
75, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-6667

SUPPLEMENTARY INFORMATION:
    PANGC, a Delaware corporation with its principal place of business 
in Bartlesville, Oklahoma, is a wholly owned subsidiary of Phillips 
Petroleum Company, a Delaware corporation. Marathon, an Ohio 
corporation with its principal place of business in Houston, Texas, is 
a wholly owned subsidiary of USX Corporation, also a Delaware 
corporation. PANGC and Marathon are not affiliated with each other. 
They own and operate natural gas liquefaction and marine terminal 
facilities at Kenai, Alaska.
    On March 17, 1993, DOE granted a request by PANGC and Marathon for 
a two-year blanket authorization to export up to 10 Bcf of LNG from 
their Kenai facilities beginning on the date of the first delivery. See 
DOE/FE Order No. 786 (1 FE para. 70,777). That authorization was first 
used March 25, 1997, and expired March 24, 1999. PANGC and Marathon 
currently have long-term authority to export to Japan up to 64.4 
trillion Btu's (approximately 64.4 Bcf) of LNG per year through March 
31, 2009, pursuant to DOE/FE Opinion and Order Nos. 261, et al. (July 
28, 1988-March 2, 1995) and 1473 (April 2, 1999). See 1 ERA para. 
70,130, 1 FE para. 70,454, para. 70,506, 1 FE para. 70,607, 1 FE para. 
71,087, and 2 FE para. 70,317. In granting Order 1473, DOE determined 
an extension of the LNG export would not be inconsistent with the 
public interest. In particular, DOE found there is a sufficient supply 
of natural gas in Alaska to satisfy local and export demand through the 
extension period.
    PANGC and Marathon indicate the Kenai facilities at times can 
manufacture LNG in excess of the volume required by their currently 
authorized long-term sales arrangements with Japan. They would like to 
make this additional LNG available to international markets. PANGC and 
Marathon further indicate the short-term LNG export transactions for 
which they now request authorization will be subject to monthly price 
adjustments based on market conditions and the prices of comparable 
competing fuels. They also assert the proposed exports will benefit 
Alaskan producers and suppliers who otherwise may not have a market for 
their excess gas. In addition, they maintain the exports will benefit 
Alaskan citizens by generating tax and other revenues related to gas 
production that may not otherwise have a market.
    The decision on the application of PANGC and Marathon for export 
authority will be made consistent with the DOE's gas export policy 
guidelines, under which DOE considers the domestic need for the gas to 
be exported and any other issues determined to be appropriate, 
including whether the arrangement is consistent with the DOE policy of 
promoting competition in the natural gas 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 as they relate to the requested export 
authority. PANGC and Marathon assert the proposed export arrangement 
will be in the public interest. Parties opposing the arrangement bear 
the burden of overcoming this assertion.

NEPA Compliance

    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 the written comments considered as the basis for any decision on 
the application must, however, file a motion to intervene or notice of 
intervention, as applicable. The filing of a protest with respect to 
this 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 that are 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 Natural Gas and Petroleum Import and Export Activities at the 
address listed above.
    It is intended that a decisional record on this 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

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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 provide notice 
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.
    Phillips and Marathon's application is available for inspection and 
copying in the Natural Gas and Petroleum Import and Export Activities 
Docket Room, 3E-042, at the above address. The docket room is open 
between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday, 
except Federal holidays.

    Issued in Washington, D.C., on January 6, 2000.
John W. Glynn,
Manager, Natural Gas Regulation, Office of Natural Gas and Petroleum, 
Import and Export Activities, Office of Fossil Energy.
[FR Doc. 00-747 Filed 1-11-00; 8:45 am]
BILLING CODE 6450-01-P