[Federal Register Volume 76, Number 183 (Wednesday, September 21, 2011)]
[Notices]
[Pages 58488-58490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24225]


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DEPARTMENT OF ENERGY

[FE Docket No. 11-98-LNG]


Dominion Cove Point LNG, LP; Application for Blanket 
Authorization to Export Previously Imported 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 
August 8, 2011, by Dominion Cove Point LNG, LP (DCP), 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 150 billion cubic feet 
(Bcf) of natural gas. The LNG would be exported from the Cove Point LNG 
Terminal (Cove Point Terminal), owned by DCP, in Calvert County, 
Maryland, 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. DCP seeks authorization to act as an agent for others who own 
title to the LNG who will export the LNG over a two-year period 
commencing on December 1, 2011. 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.

[[Page 58489]]


DATES: Protests, motions to intervene or notices of intervention, as 
applicable, requests for additional procedures, and written comments 
are to be filed using procedures detailed in Public Comment Procedures 
below no later than 4:30 p.m., eastern time, October 21, 2011.

ADDRESSES: Electronic Filing on the Federal eRulemaking Portal under FE 
Docket No. 11-98-LNG: http://www.regulations.gov.
    Electronic Filing by e-mail: [email protected].
    Regular Mail: U.S. Department of Energy (FE-34), Office of Natural 
Gas Regulatory Activities, Office of Fossil Energy, P.O. Box 44375, 
Washington, DC 20026-4375.
    Hand Delivery or Private Delivery Services (e.g., FedEx, UPS, etc.) 
: U.S. Department of Energy (FE-34), Office of Natural Gas Regulatory 
Activities, Office of Fossil Energy, Forrestal Building, Room 3E-042, 
1000 Independence Avenue, SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Larine Moore or Lisa Tracy, U.S. 
Department of Energy (FE-34), Office of Natural Gas Regulatory 
Activities, Office of Fossil Energy, Forrestal Building, Room 3E-042, 
1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-9478; 
(202) 586-4523.
    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

    DCP is a Delaware limited partnership with its principal place of 
business in Lusby, Maryland, and offices in Richmond, Virginia. DCP is 
the current owner of the Cove Point Terminal. DCP is a subsidiary of 
Dominion Resources, Inc. (DRI), a producer and transporter of energy. 
DRI is a corporation organized and existing under the laws of the 
Commonwealth of Virginia with its principal place of business in 
Richmond, Virginia.

Current Application

    In the instant application, DCP is seeking blanket authorization to 
export from its Cove Point Terminal LNG that previously had been 
imported from foreign sources. DCP seeks authorization to export this 
LNG to any country with the capacity to import LNG via ocean-going 
carrier and with which trade is not prohibited by U.S. law over a two-
year period commencing on December 1, 2011, in an amount up to the 
equivalent of 150 Bcf of natural gas. DCP states that it does not seek 
authorization to export domestically produced LNG or natural gas. DCP 
also states that it will engage in short-term (or ``blanket'') re-
exports of previously imported LNG. DCP does not intend to hold title 
to the LNG itself, and is requesting authorization to act as agent on 
behalf of other entities who themselves hold title to the LNG but will 
register each such LNG title holder with DOE/FE consistent with 
registration requirements previously adopted in DOE/FE Order 2986, 
issued July 19, 2011, which granted blanket export authorization to 
Freeport LNG Development, L.P.

Public Interest Considerations

    In support of its application, DCP 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.'' \1\ DCP states that section 3 creates a 
statutory presumption in favor of a finding that the Application is in 
the public interest, which opponents bear the burden of overcoming. DCP 
states further that in reviewing an application to export LNG under 
section 3, DOE/FE has applied the principles set forth in DOE 
Delegation Order No. 0204-111, which focuses primarily on the domestic 
need for the gas to be exported. DCP asserts that DOE/FE has issued 
numerous recent blanket authorizations to re-export previously imported 
LNG, which cite evidence that indicates that consumers in the United 
States presently have access to substantial quantities of natural gas 
sufficient to meet domestic demand from multiple other sources at 
competitive prices without the LNG sought to be exported. Specifically, 
DCP asserts that DOE/FE Order 2986, issued July 19, 2011, which granted 
blanket authorization to Freeport LNG Development, L.P. to export LNG 
that previously had been imported from foreign sources, concluded that 
``the evidence of record indicates that United States consumers 
continue to have access to substantial quantities of natural gas 
sufficient to meet domestic demand from multiple other sources at 
competitive prices without drawing on the LNG which Freeport LNG seeks 
to export.'' \2\
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    \1\ 15 U.S.C. 717b.(a).
    \2\ Freeport LNG Development, L.P., FE 11-51-LNG, DOE/FE Opinion 
and Order No. 2986 at 7.
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    In addition, DCP notes that a DOE/FE review of the most recent data 
and analysis prepared by the Energy Information Administration (EIA) 
shows an increasing volume of shale gas production compared to the data 
and projections referenced in Dow Chemical Company, DOE/FE Order No 
2859 (October 5, 2010), highlighting EIA's more recent projections of 
rising gas production as published in the Annual Energy Outlook 2011. 
Based on these findings, DCP asserts that the evidence clearly shows 
that U.S. consumers have access to substantial supplies of natural gas 
that will meet demand without the foreign-sourced LNG which DCP 
proposes to re-export.
    DCP states that its application seeks only to re-export foreign-
sourced LNG that has been imported and stored at the Cove Point LNG 
Terminal, and does not propose to export domestically produced natural 
gas. DCP states that the additional flexibility to re-export previously 
imported LNG will provide additional flexibility to its customers and 
should encourage the continued importation of LNG into the United 
States.
    DCP also states that re-exports of previously imported LNG will 
allow the Cove Point Terminal to remain in a cooled-down state so that 
it is operationally capable of providing DCP's certificated services. 
DCP 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.

Environmental Impact

    DCP states that its requested LNG export authorization does not 
require the construction of any new facilities (or modifications to any 
existing facilities) at the Cove Point Terminal except for the 
conversion of six check valves located on the pier, which would allow 
ships to both load and unload at the terminal. In addition, DCP would 
modify its computer software for Emergency Shutdown to include loading 
operations and prepare a loading procedure for the U.S. Coast Guard. 
DCP states that exports of LNG from the Cove Point Terminal would not 
increase ship traffic beyond the number already stated in the U.S. 
Coast Guard Letter of Recommendation and Waterway Suitability Report 
issued for the Cove Point Terminal. DCP states that approval of the 
Application would not constitute a federal action significantly 
affecting the human environment under the National Environmental Policy 
Act (NEPA).\3\
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    \3\ 42 U.S.C. 4321 et seq.

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[[Page 58490]]

    DCP states that it plans in the near future to file an application 
with the Federal Energy Regulatory Commission (FERC) for the necessary 
authorization to allow for the re-export of foreign-sourced LNG from 
the Cove Point Terminal. DCP acknowledges that the requested 
authorization to be issued by DOE/FE would not take effect until FERC 
has completed its NEPA review and has granted DCP authorization for the 
re-export of LNG at the Cove Point facility. DCP requests that DOE/FE 
issue a conditional order authorizing the re-export of LNG from the 
Cove Point Terminal conditioned on completion of the environmental 
review and subsequent authorization by FERC.

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. 00-002.00L (April 29, 2011) and DOE Redelegation Order No. 
00-002.04E (April 29, 2011). 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.
    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

    In response to this notice, any person may file a protest, 
comments, or a motion to intervene or notice of intervention, as 
applicable. Any person wishing to become a party to the proceeding 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 will be considered in determining the appropriate 
action to be taken on the Application. All protests, comments, motions 
to intervene or notices of intervention must meet the requirements 
specified by the regulations in 10 CFR part 590.
    Filings may be submitted using one of the following methods: (1) 
Submitting comments in electronic form on the Federal eRulemaking 
Portal at http://www.regulations.govSec.  , by following the on-line 
instructions and submitting such comments under FE Docket No. 11-98-
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; (2) e-mailing the filing to 
[email protected], with FE Docket No. 11-98-LNG in the title line; (3) 
mailing an original and three paper copies of the filing to the Office 
Natural Gas Regulatory Activities at the address listed in ADDRESSES; 
or (4) hand delivering an original and three paper copies of the filing 
to the Office of Natural Gas Regulatory Activities at the address 
listed in ADDRESSES.
    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 DCP is available for inspection and 
copying in the Office of Natural Gas Regulatory Activities docket room, 
Room 3E-042, 1000 Independence Avenue, SW., Washington, DC 20585. 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 September 14, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
 [FR Doc. 2011-24225 Filed 9-20-11; 8:45 am]
BILLING CODE 6450-01-P