[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Notices]
[Pages 62048-62050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-25887]


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DEPARTMENT OF ENERGY

[FE Docket No. 11-109-LNG]


ConocoPhillips Company; Application for Blanket Authorization To 
Export Previously Imported Liquefied Natural Gas on a Short-Term Basis

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 22, 2011, by ConocoPhillips Company (ConocoPhillips), 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 500 Billion cubic feet 
(Bcf) of natural gas on a short-term or spot market basis over a two 
year period commencing on November 30, 2011. ConocoPhillips further 
requests that such authorization extend to LNG supplies imported from 
foreign sources to which ConocoPhillips holds title, as well as to LNG 
supplies imported from foreign sources that ConocoPhillips may export 
on behalf of other entities who themselves hold title. The LNG would be 
exported from the LNG terminal facilities owned by Freeport LNG 
Development, L.P. (Freeport LNG) on Quintana Island, Texas, 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. The 
application was filed under section 3 of the Natural Gas Act (NGA), as 
amended by section 201 of the Energy Policy Act of 1992. 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 using procedures detailed in Public Comment Procedures 
below no later than 4:30 p.m., eastern time, November 7, 2011.

ADDRESSES: Electronic Filing on the Federal eRulemaking Portal under FE 
Docket No. 11-109-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 Marc Talbert, U.S. Department of Energy (FE-4), 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) 586-7991.
Edward Myers, U.S. Department of Energy, Office of General Counsel, 
Fossil Energy and Energy Efficiency, Forrestal Building, Room 6B-159, 
1000 Independence Ave., SW., Washington, DC 20585, (202) 586-3397.

SUPPLEMENTARY INFORMATION: 

Background

    ConocoPhillips is a Delaware corporation with its principal place 
of business in Houston, Texas. ConocoPhillips is an independent 
producer and seller of natural gas that imports LNG into the United 
States and exports foreign-sourced LNG from the United States. On 
November 30, 2009, DOE/FE issued Order No. 2731, which granted 
ConocoPhillips authorization to export LNG that previously had been 
imported from foreign sources in an amount up to the equivalent of 500 
Bcf of natural gas on a cumulative basis over

[[Page 62049]]

a two-year period commencing on the date of the authorization.\1\
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    \1\ ConocoPhillips' blanket authorization to export LNG granted 
in DOE/FE Order No. 2731 on November 30, 2009, extends through 
November 29, 2011.
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Current Application

    In the instant application, ConocoPhillips seeks to renew its 
blanket authorization to export LNG previously imported into the United 
States from foreign sources from the Freeport LNG terminal facilities. 
ConocoPhillips states that its interest in securing this blanket 
authorization is driven by its desire to continue to utilize and 
optimize the long-term LNG terminalling capacity for which it has 
contracted at the Freeport LNG facilities and its need for flexibility 
to respond to periodic changes in domestic and world markets for 
natural gas and LNG. Specifically, ConocoPhillips asserts that once LNG 
has been imported into the United States and is in storage at the 
Freeport LNG import terminal, ConocoPhillips desires the flexibility 
either to export the imported LNG to other world markets or to have LNG 
regassified for sale into domestic markets, with this decision based 
primarily on prevailing market conditions.

Public Interest Considerations

    In support of its application, ConocoPhillips states that pursuant 
to section 3 of the NGA, FE must authorize exports to a foreign country 
unless there is a finding that such exports ``will not be consistent 
with the public interest.'' \2\ ConocoPhillips states that section 3 
creates a statutory presumption in favor of approval of a properly 
framed export application.\3\ ConocoPhillips states further, in 
evaluating an export application, FE applies the principles described 
in DOE Delegation Order No. 0204-111 which states that domestic need 
for natural gas shall be the primary focus of DOE when evaluating an 
export application.\4\ Finally, as detailed below, ConocoPhillips 
states that this blanket export authorization request satisfies the 
public interest standard of section 3 of the NGA, as construed by DOE.
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    \2\ 15 U.S.C. 717b(a).
    \3\ Phillips Alaska Natural Gas Corp. and Marathon Oil Co., DOE/
FE Order No. 1473, 2 FE] 70,317 at p. 13, n. 42 (April 2, 1999), 
citing Panhandle Producers and Royalty Owners Association v. ERA, 
822 f. 2d 1105, 1111 (DC Cir. 1987).
    \4\ Ibid. at p. 14.
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    ConocoPhillips asserts that there is no domestic need for the LNG 
to be exported by ConocoPhillips pursuant to the blanket authorization 
requested. In support, ConocoPhillips states that in recent years, DOE/
FE has issued a number of blanket authorizations to export previously-
imported LNG, including the one issued to ConocoPhillips in Order No. 
2731, finding that such LNG is not needed to meet domestic demand for 
natural gas.\5\ ConocoPhillips cites numerous recent authorizations 
issued by DOE/FE that were all approved. ConocoPhillips states that 
DOE/FE concluded in a recent Freeport LNG Development L.P. 
authorization 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 Development L.P. seeks to export.'' \6\ Conoco Phillips states that 
this record evidence also supports the conclusion that the foreign-
sourced LNG that ConocoPhillips may export from the Freeport LNG 
terminal facilities pursuant to the blanket authorization requested 
herein is not needed to meet domestic demand.
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    \5\ ENI USA Gas Marketing LLC, DOE/FE Order No. 2923 (March 3, 
2011); Sempra Marketing, LLC, DOE/FE Order No. 2885 (December 3, 
2010); Cheniere Marketing, LLC DOE/FE Order No. 2795 (June 1, 2010).
    \6\ Freeport LNG Development, L.P., DOE/FE Order No. 2986 (July 
19, 2011) at 7.
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    ConocoPhillips states that the monthly reports that it has filed 
with DOE/FE pursuant to Order No. 2731 confirm that it has used its 
currently effective blanket authorization to export previously-imported 
LNG from the United States ConocoPhillips states that the Order No. 
2731 blanket export authorization has also facilitated the importation 
of LNG cargos into the U.S. by enabling it to import LNG cargos into 
the U.S without fear that such cargos will become captive to the U.S. 
market if, in ConocoPhillip's view, market conditions ultimately do not 
support delivering regassified LNG into the U.S. market. ConocoPhillips 
states that is has also sold LNG to Freeport LNG to replace boil off, 
thereby contributing to the operational stability of the Freeport LNG 
terminal facilities.

Environmental Impact

    ConocoPhillips states that no modifications to Freeport LNG's 
Quintana Island terminal are required to enable the proposed exports of 
LNG. ConocoPhillips also states the environmental impacts of permitting 
the exportation of LNG from Freeport LNG's Quintana Island terminal 
facilities were already reviewed by DOE/FE in Order No. 2644 \7\ and 
that DOE/FE previously found that the export of LNG by ConocoPhillips 
from the Freeport LNG terminal facilities will have no additional 
environmental impact.\8\
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    \7\ Freeport LNG Development, L.P.'s blanket authorization to 
export LNG granted in DOE/FE Order No. 2644 on May 28, 2009, 
extended through May 28, 2011.
    \8\ ConocoPhillips' blanket authorization to export LNG granted 
in DOE/FE Order No. 2731 on November 30, 2009, extends through 
November 29, 2011.
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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. 00-002.00L (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 natural 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.gov, by following the on-line 
instructions and submitting such comments under FE Docket No.

[[Page 62050]]

11-109-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. 11-109-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 ConocoPhillips 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 30, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2011-25887 Filed 10-5-11; 8:45 am]
BILLING CODE 6450-01-P