[Federal Register Volume 73, Number 143 (Thursday, July 24, 2008)]
[Notices]
[Pages 43218-43221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16928]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PF08-20-000]


Dominion Cove Point LNG, LP; Notice of Intent To Prepare an 
Environmental Assessment for the Proposed Pier Reinforcement Project 
and Request for Comments on Environmental Issues

July 16, 2008.
    The Federal Energy Regulatory Commission (FERC or Commission), the 
U.S. Department of Homeland Security, U.S. Coast Guard (Coast Guard), 
and the U.S. Army Corps of Engineers (Corps) are evaluating the Pier 
Reinforcement Project proposed by Dominion Cove Point LNG, LP (DCP). 
The Pier Reinforcement Project would involve modifications to the 
existing offshore pier in the Chesapeake Bay at the Cove Point 
Liquefied Natural Gas (LNG) import terminal in Calvert County, 
Maryland. The proposed project would allow DCP to accommodate larger-
sized LNG vessels carrying cargoes of up to 267,000 cubic meters of 
LNG. Currently, LNG vessels with a capacity of no greater than 148,000 
cubic meters are authorized.
    The FERC will be the lead federal agency in the preparation of an 
environmental assessment (EA) to address the environmental impacts of 
the proposed project, including the effects of proposed LNG vessel 
traffic on the waterway, and to satisfy the requirements of the 
National Environmental Policy Act of 1969 (NEPA). We have requested the 
formal cooperation of other federal and state resource agencies with 
jurisdiction or special expertise with respect to environmental issues. 
To date, the Corps and the Coast Guard have agreed to serve as 
cooperating agencies during preparation of the EA. The Commission will 
use the EA in its decision-making process to determine whether or not 
to authorize the project under section 3 of the Natural Gas Act. The 
Corps will use the EA to fulfill the requirements of its regulations 
and the Clean Water Act Section 404(b)(1) Guidelines. The Coast Guard 
will review the EA as part of its decision-making process to determine 
the suitability of the waterway for LNG marine traffic. The 
determination of suitability will be made in a Letter of Recommendation 
pursuant to Title 33 of the Code of Federal Regulations (CFR), Section 
127.009.
    This Notice of Intent to Prepare an Environmental Assessment for 
the Proposed Pier Reinforcement Project (NOI) explains the scoping 
process we \1\ will use to gather environmental input from the public 
and interested agencies, and summarizes the project review process for 
the FERC and our cooperating agencies. Details on how to submit 
comments are provided in the Public Participation section of this 
notice. Please note that the comment period will close on August 15, 
2008.
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    \1\ ``We,'' ``us,'' and ``our'' refer to the environmental staff 
of the FERC's Office of Energy Projects.
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    We have prepared this NOI with the cooperation of the Corps and 
Coast Guard staff. The NOI is being sent to federal, state, and local 
government agencies; elected officials; environmental and public 
interest groups; Native American groups; other interested parties; and 
local libraries and newspapers. We encourage government representatives 
to notify their constituents of this planned project and encourage them 
to comment on their areas of concern. Your input will help the 
Commission determine the issues that need to be evaluated in the EA.
    In accordance with Department of the Army (DA) permit procedures, 
the Corps is soliciting comments from the public; federal, state, and 
local agencies and officials; Indian tribes; and other interested 
parties in order to consider and evaluate the impacts of the proposed 
project to waters of the United States, including jurisdictional 
wetlands. The Corps project number is NAB-2008-01241-M05 (200861276 
T61277) (DOMINION COVE POINT LNG/PIER REINFORCEMENT PROJECT). Any 
comments received will be considered by the Corps to determine whether 
to issue, modify, condition or deny a permit for the proposal.
    The Coast Guard is also soliciting comments from the public; 
federal, state, and local agencies and officials; Indian tribes; and 
other interested parties in order to consider and evaluate the 
environmental impacts of its final suitability determination for the 
waterway for LNG marine traffic. This determination will be contained 
in its Letter of Recommendation (LOR). To make this determination, the 
Coast Guard will use comments received to assess environmental impacts 
on the entire waterway, including impacts on endangered species, 
historic properties, water quality, general environmental effects, and 
the other public interest factors, described in more detail below.

Summary of the Proposed Project

    DCP is planning the Pier Reinforcement Project to upgrade its 
existing pier located approximately 1.1 miles offshore of the Cove 
Point LNG Terminal. The project would enable the safe docking, 
discharge, and departure of larger vessels than currently authorized. 
The larger vessels would carry cargoes of up to 267,000 cubic meters of 
LNG. To the extent that larger vessels are utilized, comparable 
quantities of LNG could be delivered using fewer vessels. Therefore, 
the proposed project may modify the size and frequency of LNG marine 
traffic transiting the waterway from the territorial sea to the Cove 
Point LNG Terminal. The terminal would remain capable of receiving the 
types of vessels that are in use today. The general location of the 
proposed facilities and a depiction of the waterway for LNG

[[Page 43219]]

marine traffic are shown in the figures included as Appendix 1.\2\
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    \2\ The appendices referenced in this notice are not being 
printed in the Federal Register. Copies of all appendices are 
available on the Commission's Web site at the ``eLibrary'' link or 
from the Commission's Public Reference Room, 888 First Street, NE., 
Washington, DC 20426, or call (202) 502-8371. For instructions on 
connecting to eLibrary refer to the Public Participation section of 
this notice. Copies of the appendices were sent to all those 
receiving this notice in the mail.
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    The existing pier consists of two berths, referred to as the North 
Berth and South Berth. Proposed construction includes the addition of 
four new mooring dolphins and two new breasting dolphins \3\ at both 
the North Berth and the South Berth; new walkways to connect the 
mooring dolphins to the existing pier; service platform modifications; 
replacement of the existing gangway system with an automated gangway; 
upgrading the docking control system; and relocating some security 
systems. The proposed construction would increase the overall length of 
the pier by 300 feet. The modified pier would be able to accommodate 
vessels approximately 1,150 feet long and 187 feet wide, with a maximum 
draft of 39.4 feet.
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    \3\ Dolphins are marine structures mounted on piles, against 
which a moored ship rests (breasting dolphin) and is secured to the 
pier (mooring dolphin).
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    To accommodate deeper-draft vessels, DCP would dredge approximately 
150,000 cubic yards of sediment directly around the pier to achieve a 
final water depth of approximately 45 feet below mean lower low water. 
Depending on the chemical and physical properties of the dredged 
material, DCP may use the dredged material for beneficial use, but is 
also identifying a confined disposal facility in the case that 
beneficial use is not feasible.
    Dredging and constructing the mooring and breasting dolphins would 
permanently impact approximately 25 acres of Chesapeake Bay bottom and 
would increase the footprint of the pier by 1.03 acres. All offshore 
construction activities would occur from the existing pier structure 
and temporary barges. Onshore impacts would be limited to a staging 
area for construction equipment and materials. DCP is currently 
identifying likely staging areas in the project vicinity.
    DCP proposes to file a formal application with the Commission in 
December 2008. Pending Commission approval and receipt of applicable 
permits, DCP would begin construction in the third quarter of 2009. 
Work would extend approximately 18 months, and would be phased to allow 
construction on one berth while the other berth remains operational.

The EA Process

    NEPA requires the Commission to take into account the environmental 
impacts that could result from an action when it considers whether or 
not an LNG import terminal should be approved. The FERC and our 
cooperating agencies will use the EA to consider the environmental 
impact that could result if the project is authorized. NEPA also 
requires us to discover and address the public's concerns about 
proposals that require federal authorizations. This process is referred 
to as ``scoping.'' The main goal of the scoping process is to focus the 
analysis in the EA on the important environmental issues. With this 
NOI, we are requesting public comments on the scope of the issues to be 
addressed in the EA. All comments received will be considered during 
preparation of the EA.
    Although no formal application has been filed with the Commission, 
the FERC staff has initiated its review of the project under its NEPA 
Pre-filing Process to encourage the early involvement of stakeholders 
and to identify and resolve issues before an application is filed. As 
part of our Pre-Filing Process, we have begun to contact federal and 
state agencies to discuss their involvement in the scoping process and 
the preparation of the EA. In addition, the Coast Guard has received a 
Letter of Intent from DCP dated May 5, 2008, requesting that the Coast 
Guard approve the suitability of the planned Cove Point construction. 
The Coast Guard must determine the suitability of the waterway for LNG 
marine traffic pursuant to 33 CFR 127.009. Representatives from the 
FERC and the Coast Guard participated in a public open house sponsored 
by DCP in Solomons, Maryland on June 16, 2008, during which they 
discussed the agencies' regulatory responsibilities and explained the 
environmental review process to interested stakeholders.
    By this notice, we are formally announcing our preparation of the 
EA and requesting additional agency and public comments to help focus 
our analysis on potentially significant environmental issues related to 
the proposed actions. The EA will discuss impacts that could occur as a 
result of the construction and operation of the proposed project, and 
the associated LNG marine traffic in the waterway, under the general 
headings of geology and soils; land use; water resources, fisheries, 
and wetlands; cultural resources; vegetation and wildlife; threatened 
and endangered species; air quality and noise; safety and reliability; 
and cumulative impacts. The EA will also evaluate reasonable 
alternatives to the proposed project, alternatives for agency actions, 
and make recommendations on how to lessen or avoid impacts on affected 
resources.
    The Corps is responsible for evaluating DCP's application for a DA 
Individual permit pursuant to Section 404 of the Clean Water Act (33 
U.S.C. 1344) and Section 10 of the Rivers and Harbors Act of 1899 (33 
U.S.C. 403) for proposed structures in and under navigable waters, 
dredging and the discharge of dredged, excavated, and/or fill material 
into waters of the United States, including wetlands. The Corps staff 
has initiated its review of the project under pre-application 
coordination although no formal application has been filed. The EA will 
serve as the DA permit application for this proposed project.
    The Corps decision whether to issue the permits will be based on an 
evaluation of the probable impacts, including cumulative impacts, of 
the proposed project on the public interest. The evaluation of the 
impact on the public interest will include application, by the Corps, 
of the guidelines [Section 404(b)(1)] promulgated by the Administrator, 
U.S. Environmental Protection Agency, under authority of Section 404 of 
the Clean Water Act.
    The Corps' decision will reflect the national concern for the 
protection and utilization of important resources. The benefits, which 
would be reasonably expected to accrue from the proposed project, must 
be balanced against its reasonably foreseeable detriments. All factors 
which may be relevant to the proposed work will be considered, 
including the cumulative effects thereof; among those are conservation, 
economics, aesthetics, general environmental concerns, wetlands, 
cultural values, fish and wildlife values, flood hazards, floodplain 
values, land use, navigation, shore erosion and accretion, recreation, 
water supply, and conservation, water quality, energy needs, safety, 
food and fiber production, consideration of property ownership, and in 
general, the needs and welfare of the people.
    If applicable, the applicant is required to obtain a Water Quality 
Certification in accordance with Section 401 of the Clean Water Act 
from the Maryland Department of the Environment (MDE). The Section 401 
certifying agency has a statutory limit of one year in which to make 
their decision. Additionally, for Corps permitting purposes, the 
applicant is required to obtain Coastal

[[Page 43220]]

Zone Management Consistency concurrence from the MDE, as well. It 
should be noted that the MDE has a statutory limit of six months in 
which to make its consistency determination.

The Coast Guard Letter of Recommendation Process

    The Coast Guard's proposed action will be the issuance of a Letter 
of Recommendation (LOR), as required by regulation, as to the 
suitability of the waterway for the proposed LNG marine traffic 
associated with the project.
    The Coast Guard is responsible for matters related to navigation 
safety, vessel engineering and safety standards, and all matters 
pertaining to the safety of facilities or equipment located in or 
adjacent to navigable waters up to the last valve of an LNG facility 
immediately before the receiving tanks. The Coast Guard also has 
authority for LNG facility security plan review, approval, and 
compliance verification pursuant to Title 33 CFR Part 105, and 
recommendations for siting as it pertains to the management of vessel 
traffic in and around the LNG facility.
    More specifically, the Coast Guard is required to issue a LOR, as 
to the suitability of the waterway for LNG vessel traffic pursuant to 
33 CFR 127.009. DCP submitted a Letter of Intent (which initiates the 
LOR process), on May 5, 2008 to the Coast Guard Captains of the Port 
Baltimore and Hampton Roads, proposing to modify the Cove Point LNG 
Terminal pier and requesting an LOR regarding the suitability of the 
waterway for LNG marine traffic. Upon receipt of a Letter of Intent, 
the Coast Guard Captains of the Port request that the applicant conduct 
an analysis of the suitability of the waterway for LNG vessel traffic 
i.e., a Waterway Suitability Assessment (WSA). This will address the 
suitability of the waterway relating to the proposed changes to LNG 
vessel traffic. The WSA will be submitted to the Coast Guard to assist 
it in making its preliminary determination as to whether the waterway 
is suitable for proposed changes to LNG vessel traffic associated with 
the project. This preliminary determination will be contained in a 
Waterway Suitability Report (WSR) issued by the Coast Guard to the 
applicant.
    The following factors, along with comments received during the 
public comment period, and the EA (and any other appropriate NEPA 
documentation), will be evaluated by the Coast Guard prior to its final 
determination as to the suitability of the waterway for the proposed 
LNG marine traffic to be contained in a LOR:
     The physical location and description of the facility;
     The layout of the facility and its berthing and mooring 
arrangements;
     The LNG vessels' characteristics and frequency of facility 
shipments;
     Charts showing waterway channels and identifying 
commercial, industrial, environmentally sensitive, and residential 
areas in and adjacent to the waterway used by the LNG vessels en route 
to the facility within 15.5 miles of the facility;
     Density and character of the marine traffic on the 
waterway;
     Locks, bridges, or other man-made obstructions in the 
waterway; and
     The following factors adjacent to the facility:
     Depth of water;
     Tidal range;
     Protection from high seas;
     Natural hazards, including reefs, rocks, and sandbars;
     Underwater pipelines and cables; and
     Distance of berthed LNG vessels from the channel, and the 
width of the channel.
    A LOR will be issued to the owner or operator of the LNG facility, 
DCP, and to the state and local governments having jurisdiction over 
the facility.

Currently Identified Environmental Issues

    We have already identified issues that we think deserve attention 
based on preliminary agency consultations and information filed with 
the Commission. This preliminary list of issues, presented below, may 
be revised based on your comments and our continuing analyses.
     Potential impacts to the marine environment from 
construction activities and dredging including habitats, water quality, 
and aquatic life;
     Potential impacts to the public and environment from 
operation of larger LNG vessels along the entire waterway, including 
but not limited to, habitats, water quality, and aquatic life;
     Alternative dredge material disposal sites;
     Potential impacts on Essential Fish Habitat and state and/
or federally-listed threatened and endangered species and marine 
mammals, both in the project area and along the entire waterway;
     Potential impacts to public use resulting from any 
modification of the safety and security zone, including the zone around 
the pier;
     Potential impacts to the coastal zone;
     Potential cumulative effects upon the entire waterway; and
     Potential noise impacts due to pile driving.
    The Magnuson-Stevens Fishery Conservation and Management Act, as 
amended by the Sustainable Fisheries Act of 1996 (Pub. L. 04-267), 
requires all federal agencies to consult with the National Marine 
Fisheries Service (NMFS) on all actions, or proposed actions, 
permitted, funded, or undertaken by the agency that may adversely 
effect Essential Fish Habitat (EFH). The project site lies in or 
adjacent to EFH for the Scopthalmus aquosos (windowpane flounder) 
juvenile and adult; Pomatomus saltatrix (bluefish) juvenile and adult; 
Peprilus triacanthos (Atlantic butterfish) eggs, larvae, juvenile, and 
adult; Paralicthys dentatus (summer flounder) larvae, juvenile, and 
adult; Centropristus striata (black sea bass) juvenile and adult, and 
the eggs, larvae, juvenile, and adult stages of Sciaenops ocellatus 
(red drum), Scomberomorus cavalla (king mackerel), Scomberomorus 
maculatus (spanish mackerel), and Rachycentron canadum (cobia). The 
project has the potential to adversely affect EFH or the species of 
concern by loss of spawning, nursery, forage, and/or shelter habitat. 
The project area is not a Habitat Area of Particular Concern and is not 
colonized by submerged aquatic vegetation species. The Corps Baltimore 
District has preliminarily determined that the adverse effects of this 
project would be more than minimal, although not substantial, and an 
abbreviated consultation will be conducted with NMFS. NMFS will also be 
consulted regarding potential effects on EFH resulting from LNG vessel 
traffic along the waterway.

Public Participation

    You can make a difference by providing us with your specific 
comments or concerns about the Pier Reinforcement Project, and proposed 
larger LNG vessels transiting along the entire waterway. Your comments 
should focus on the potential environmental effects, including impacts 
to people, reasonable alternatives, and measures to avoid or lessen 
environmental impacts. All filed comments will be posted to the FERC's 
public record. To ensure timely and proper recording, please send in 
your comments so that they will be received in Washington, DC on or 
before August 15, 2008.
    For your convenience, there are three methods you can use to submit 
your comments to the Commission. In all instances please reference the 
FERC's project docket number PF08-20-000 with your submission. The 
Commission encourages electronic filing of comments and has dedicated 
eFiling

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staff available to assist you at 202-502-8258 or [email protected].
    (1) You may file your comments electronically by using the Quick 
Comment feature, which is located on the Commission's internet Web site 
at http://www.ferc.gov under the link to Documents and Filings. A Quick 
Comment is an easy method for interested persons to submit text-only 
comments on a project;
    (2) You may file your comments electronically by using the eFiling 
feature, which is located on the Commission's internet Web site at 
http://www.ferc.gov under the link to Documents and Filings. eFiling 
involves preparing your submission in the same manner as you would if 
filing on paper, and then saving the file on your computer's hard 
drive. You will attach that file as your submission. New eFiling users 
must first create an account by clicking on ``Sign up'' or 
``eRegister.'' You will be asked to select the type of filing you are 
making. A comment on a particular project is considered a ``Comment on 
a Filing;'' or
    (3) You may file your comments via mail to the Commission by 
sending an original and two copies of your letter to: Kimberly D. Bose, 
Secretary, Federal Energy Regulatory Commission, 888 First St., NE., 
Room 1A, Washington, DC 20426.
    Label one copy of the comments for the attention of Gas Branch 3, 
PJ11.3.
    You may also submit comments directly to the Corps. All comments 
received by the Corps will become part of the Corps' administrative 
record and will be considered by the Corps in evaluating the DA permit 
application. The Corps project number is NAB-2008-01241-M05 (200861276 
T61277) (DOMINION COVE POINT LNG/PIER REINFORCEMENT PROJECT). Copies of 
any written statements expressing concern for aquatic resources may be 
submitted to: Mrs. Kathy Anderson, Corps of Engineers, CENAB-OP-RMS, 
P.O. Box 1715, Baltimore, Maryland 21203-1715.
    In addition, you may submit comments directly to the Coast Guard. 
All comments received will become part of the Coast Guard's 
administrative record and will be considered by the Coast Guard in 
preparing the LOR regarding the suitability of the waterway for LNG 
vessel traffic. Comments may be submitted by mail to the below address: 
U.S. Coast Guard Sector Baltimore, 2401 Hawkins Point Road, Attn: 
Waterways Management Div (BLDG 70), Baltimore, MD 21226-1791; or e-mail 
at [email protected].
    Once DCP formally files its application with the FERC, you may want 
to become an ``intervenor,'' which is an official party to the 
Commission's proceeding. Intervenors play a more formal role in the 
process and are able to file briefs, appear at hearings, and be heard 
by the courts if they choose to appeal the Commission's final ruling. 
An intervenor formally participates in a Commission proceeding by 
filing a request to intervene. Instructions for becoming an intervenor 
are included in the User's Guide under the ``e-filing'' link on the 
Commission's web site. Please note that you may not request intervenor 
status at this time. You must wait until a formal application is filed 
with the Commission.

Environmental Mailing List

    We may mail the EA for comment. If you are interested in receiving 
the EA for review and/or comment, please return the Mailing List 
Retention Form (Appendix 2). If you do not return the Mailing List 
Retention Form, you will be taken off the mailing list. All individuals 
who provide written comments will remain on our environmental mailing 
list for this project.

Additional Information

    Additional information about the project is available from the 
Commission's Office of External Affairs, at 1-866-208-FERC (3372) or on 
the FERC Internet Web site (http://www.ferc.gov) using the ``eLibrary 
link.'' Click on the eLibrary link, select ``General Search'' and enter 
the project docket number excluding the last three digits in the 
``Docket Number'' field (i.e., PF08-20). Be sure you have selected an 
appropriate date range. For assistance, please contact FERC Online 
Support at [email protected] or toll free at 1-866-208-3676, 
or TTY, contact (202) 502-8659. The eLibrary link on the FERC Internet 
Web site also provides access to the texts of formal documents issued 
by the Commission, such as orders, notices, and rule makings.
    In addition, the FERC offers a free service called eSubscription 
that allows you to keep track of all formal issuances and submittals in 
specific dockets. This can reduce the amount of time you spend 
researching proceedings by automatically providing you with 
notification of these filings, document summaries, and direct links to 
the documents. To register for this service, go to http://www.ferc.gov/esubscribenow.htm.
    Fact sheets prepared by the FERC are also available for viewing on 
the FERC Internet Web site (http://www.ferc.gov), using the ``For 
Citizens'' link. These fact sheets, including ``A Guide to LNG--What 
All Citizens Should Know'' and ``Guide to Electronic Information at 
FERC,'' address a number of typically asked questions about LNG and 
provide instructions on how to participate in the Commission's 
proceedings.
    Finally, DCP has established an Internet Web site at http://www.dom.com/about/gas-transmission/covepoint/pier_reinforcement/pdf/cove_point_pier_reinforcement.pdf to provide the public with 
information about the Pier Reinforcement Project. DCP's Web site will 
be updated as the project review progresses. You may also use DCP's 
toll free telephone number, 1-888-330-2092.

Kimberly D. Bose,
Secretary.
[FR Doc. E8-16928 Filed 7-23-08; 8:45 am]
BILLING CODE 6717-01-P