[Federal Register Volume 73, Number 176 (Wednesday, September 10, 2008)]
[Notices]
[Pages 52650-52652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20991]


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DEPARTMENT OF ENERGY

[FE Docket No. 08-70-LNG]


Freeport LNG Development, L.P.; 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 on August 1, 2008 
by Freeport LNG Development, L.P. (Freeport LNG), requesting blanket 
authorization to

[[Page 52651]]

export liquefied natural gas (LNG) that previously had been imported 
from foreign sources on their own behalf or as agent for others on a 
short-term or spot market basis from existing facilities on Quintana 
Island, Texas in an amount up to the equivalent of 24 Billion cubic 
feet (Bcf) of natural gas to the United Kingdom, Belgium, Spain, 
France, Italy, Japan, South Korea, India, China, and/or Taiwan over a 
two-year period commencing on the date of the authorization.
    The application is filed under section 3 of the Natural Gas Act (15 
U.S.C. 717b), as amended by section 201 of the Energy Policy Act of 
1992 (Pub. L. 102-486), and DOE Delegation Order No. 00-002.00G (Jan. 
29, 2007) and DOE Redelegation Order No. 00-002.04C (Jan. 30, 2007). 
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, October 10, 2008.

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 Fossil Energy and Energy Efficiency, Forrestal 
Building, Room 6B-159, 1000 Independence Ave. SW., Washington, DC 
20585, (202) 586-3397.

SUPPLEMENTARY INFORMATION:

Background

    Freeport LNG is a Delaware limited partnership with one general 
partner, Freeport LNG-GP, Inc., a Delaware corporation, which is owned 
50% by an individual, Michael S. Smith, and 50% by ConocoPhillips 
Company. Freeport LNG's limited partners are: (1) Freeport LNG 
Investments, LLLP, a Delaware limited liability limited partnership, 
which owns a 45% limited partnership interest in Freeport LNG; (2) 
Cheniere FLNG, L.P., a Delaware limited partnership, which owns a 30% 
limited partnership interest in Freeport LNG; (3) Texas LNG Holdings 
LLC, a Delaware limited liability company and wholly-owned subsidiary 
of The Dow Chemical Company, which owns a 15% limited partnership 
interest in Freeport LNG; and (4) Turbo LNG LLC, a Delaware limited 
liability company and wholly-owned subsidiary of Osaka Gas Co., Ltd., 
which owns a 10% limited partnership interest in Freeport LNG.
    The Federal Energy Regulatory Commission (FERC) has authorized 
Freeport LNG to site, construct and operate a new LNG import, storage, 
and vaporization terminal on Quintana Island, Texas and an associated 
9.6-mile long send-out pipeline which will be utilized to import up to 
1.55 Bcf per day of LNG.\1\ On July 1, 2008, FERC issued a letter Order 
granting Freeport LNG's request to commence service at its Quintana 
Island import terminal.
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    \1\ Freeport LNG Development, L.P., Order Granting Authorization 
Under Section 3 of the Natural Gas Act, 107 FERC ] 61,278 (2004), 
Order Granting Rehearing and Clarification, 108 FERC ] 61,253 
(2004); Order Amending Section 3 Authorization, 112 FERC ] 61,194 
(2005).
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    On January 15, 2008, FE granted Freeport LNG blanket authorization 
to import up to 30 Bcf of LNG from various international sources for a 
two-year term beginning March 1, 2008.\2\
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    \2\ Freeport LNG Development L.P., DOE/FE Order No. 2457, issued 
January 15, 2008.
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Current Application

    In the instant application, Freeport LNG is seeking blanket 
authorization to export LNG over a two-year period, on a short-term or 
spot market basis, in an amount up to the equivalent of 24 Bcf of 
natural gas, that has been imported into the United States. Freeport 
LNG is seeking this authorization so that it may sell in non-U.S. 
markets any imported LNG that is not required for the operation of its 
facilities should U.S. market prices not support the sale of such 
imported LNG domestically.

Public Interest Considerations

    In support of its application, Freeport LNG states that there is no 
domestic reliance on the LNG that it seeks to export. Due to global LNG 
market conditions, U.S. natural gas demand and prices do not currently 
support the importation of LNG into the U.S., and export authorization 
is needed in order to enable the applicant to economically import LNG 
for the maintenance and continual operation of the Freeport LNG 
facilities.
    Freeport LNG also states in its application that local natural gas 
supplies will not be reduced. The applicant states that it intends to 
export only foreign sourced LNG, and does not intend to export 
domestically produced natural gas. Further, the applicant states that 
U.S. natural gas supplies would actually increase if the requested 
authorization were granted, since the boil-off gas from any LNG cargoes 
delivered to the Freeport LNG terminal would be sold into U.S. markets. 
Additionally, granting of the requested authorization would encourage 
Freeport LNG to obtain and store spot-market LNG cargoes, making it 
available to supply local markets when conditions support it, thereby 
serving to moderate U.S. natural gas price volatility.

DOE/FE Evaluation

    This export application will be reviewed pursuant to section 3 of 
the Natural Gas Act, as amended, and the authority contained in DOE 
Delegation Order No. 00-002.00G (Jan. 29, 2007) and DOE Redelegation 
Order No. 00-002.04C (Jan. 30, 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.
    Freeport LNG asserts the proposed authorization is in the public 
interest. Under section 3 of the Natural Gas Act, as amended, an LNG 
export from the United States to a foreign country must be authorized 
unless ``the proposed exportation will not be consistent with the 
public interest.'' Section 3 thus creates a statutory presumption in 
favor of approval of this application, and parties opposing the 
authorization bear the burden of overcoming this presumption.
    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 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

[[Page 52652]]

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 should 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 Freeport LNG Development, L.P. 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 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 September 4, 2008.
Robert F. Corbin,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. E8-20991 Filed 9-9-08; 8:45 am]
BILLING CODE 6450-01-P