[Federal Register Volume 76, Number 248 (Tuesday, December 27, 2011)]
[Notices]
[Pages 80913-80915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33168]


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DEPARTMENT OF ENERGY

[FE Docket No. 11-141-LNG]


Carib Energy (USA) LLC; Application for Long-Term Authorization 
To Export Domestically Produced Liquefied Natural Gas for a 25-Year 
Period

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 
October 20, 2011 by Carib Energy (USA) LLC (Carib), requesting long-
term, multi-contract authorization to export up to a total of 120,000 
gallons per day of domestically produced liquefied natural gas (LNG) 
(equivalent to approximately 3.44 Billion cubic feet (Bcf) of natural 
gas per year) over a twenty-five year period, commencing on the earlier 
of the date of first export or five years from the date the requested 
authorization is granted. The Application states that the LNG would be 
exported from ports of export in the southeastern United States, which 
may include Jacksonville, FL, West Palm Beach, FL, Miami, FL, Tampa, 
FL, Mobile, AL, Gulfport, MS, Savannah, GA, New Orleans, LA, Houston, 
TX, Galveston, TX, and Pensacola, FL, to any country with which the 
United States has not entered into a free trade agreement (FTA) 
providing for national treatment for trade in natural gas located 
within South America, Central America or the Caribbean that has, or in 
the future will have, the capacity to import LNG via use of approved 
ISO IMO7/TVAC-ASME LNG containers (ISO containers) transported on 
ocean-going carriers, and with which trade is not prohibited by United 
States 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, February 27, 2012.

ADDRESSES: Electronic Filing on the Federal eRulemaking Portal under FE 
Docket No. 11-141-LNG: http://www.regulations.gov.
    Electronic Filing by email: [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-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) 586-7991.
Edward Myers, U.S. Department of Energy, Office of General Counsel, 
Fossil Energy and Energy Efficiency, Forrestal Building, Room 6B-159,

[[Page 80914]]

1000 Independence Ave. SW., Washington, DC 20585, (202) 586-3397.

SUPPLEMENTARY INFORMATION:

Background

    Carib is a Delaware limited liability company with its principal 
place of business in Coral Springs, Florida. Stock in Carib is held 
equally by Everything for Gas International LLC d/b/a EFG Industries, a 
Florida limited liability company based in Coral Springs, Florida (EFG) 
and Argosy Transportation Group Inc., a Texas limited liability company 
based in Bellaire, Texas (Argosy). The Application states that EFG has 
more than 31 years experience in the liquefied petroleum gas (LPG) 
industry on an international level, engineering, designing, and 
installing LPG plant, terminals, and transporters, and supplying LPG 
equipment, including storage and transportation tanks. The Application 
further states that Argosy is an asset-based marine transport company 
specializing in solutions for shippers of break-bulk, heavy-lift and 
project cargo and that its management has more than 30 combined years 
experience in the marine transportation industry. On July 27, 2011, 
DOE/FE issued Order No. 2993, which granted Carib long-term, multi-
contract authorization to export domestically produced LNG in an amount 
up to the equivalent of 11.53 Bcf of natural gas per year over a 
twenty-five year period to nations in Central America, South America, 
or the Caribbean with which the United States has entered into FTAs 
providing for the national treatment for trade in natural gas. The 
authorization issued in Order No. 2993 is to commence on the earlier of 
the date of first export or July 27, 2016.

Current Application

    In the instant Application, Carib seeks long-term, multi-contract 
authorization to export domestically produced LNG up to the equivalent 
of 3.44 Bcf of natural gas per year for a period of twenty-five years 
beginning on the earlier of the date of first export or five years from 
the date the authorization is granted by DOE/FE. Carib requests that 
such long-term authorization provide for export from ports of export in 
the southeastern Unites States, which may include Jacksonville, FL, 
West Palm Beach, FL, Miami, FL, Tampa, FL, Mobile, AL, Gulfport, MS, 
Savannah, GA, New Orleans, LA, Houston, TX, Galveston, TX, and 
Pensacola, FL, to any country located within South America, Central 
America, or the Caribbean with which the United States has not entered 
into an FTA providing for the national treatment for trade in natural 
gas that has, or in the future will have, the capacity to import LNG 
via use of approved ISO LNG containers transported on ocean-going 
carriers, and with which trade is not prohibited by United States law 
or policy. Carib states that the source of natural gas supply to be 
exported will be the robust and liquid United States natural gas 
market.
    In its Application, Carib requests approval of exports to non-FTA 
countries of LNG purchased under the purchase and sale arrangement 
described in the Letter of Intent (LOI) included as Appendix C to this 
Application. The LOI describes the term of the proposed arrangement, 
the counter-party, the maximum yearly gas volumes to be purchased, and 
the facility from which the LNG will be delivered (Facility), as well 
as a commitment from the counter-party that no Facility modifications 
or additions to the Facility will be required in order for the Facility 
to deliver LNG to Carib and for Carib to export LNG from the United 
States under the arrangement described in the LOI. Carib states that it 
will file the Master Agreement and any Transaction Confirmations, as 
defined in the LOI, with the DOE/FE under seal following their 
execution. Carib expects to begin exporting LNG under the Master 
Agreement and Transaction Confirmations by the first quarter of 2012.
    The Application states that Carib plans to transport the LNG 
proposed for export from the Facility to the destination port over 
highways in 40-foot ISO containers that comply with all United States 
Department of Transportation regulations. Carib affirms that the third 
parties with which it will contract to handle transportation will 
comply with all Required Permits, including but not limited to any 
federal, state, and local permits relating to hazardous material and 
cryogenic handling regulations and requirements. Additionally, the 
Application states that all ISO containers will be tracked from the 
time of loading until delivery by a proprietary GPS tracking system.
    According to the Application, deliveries from the Facility will 
take place throughout the year on a daily basis, spaced roughly 
equally, such that deliveries in any one day would not vary extremely 
from others. The Application states that physical limitations at the 
Facility ensure that will be the case and that, currently, no more than 
120,000 gallons of LNG can be loaded from the Facility per day. Carib 
states that each container that it plans to use for LNG transport has a 
capacity of 10,200 gallons. Carib further states that truck traffic 
from the Facility under this arrangement, therefore, will be limited to 
no more than eleven trucks per day, or less than one truck per hour 
over a twelve-hour period.

Public Interest Considerations

    In support of its Application, Carib 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.'' \1\ Carib 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.\2\
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    \1\ 15 U.S.C. 717b(a).
    \2\ Sabine Pass Liquefaction, LLC, DOE/FE Order 2961 (May 20, 
2011) at 29.
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    Carib states that United States consumers currently have access to 
substantial quantities of natural gas, as a result of, among other 
things, technological advances that have allowed for development of 
previously undeveloped reserves of domestic shale gas.\3\ The Annual 
Energy Outlook 2010, prepared by the U.S. Energy Information 
Administration (EIA), forecasted shale gas production to increase to 
2.85 Tcf by 2015 and 6.0 Tcf by 2035, representing 5.3% annual growth 
from 2008-2035.\4\ EIA's Annual Energy Outlook 2011 more than doubled 
its estimate of technically recoverable shale gas reserves, and doubled 
its projected shale gas production to 12.0 Tcf by 2035.\5\ Carib 
further states that large volumes of domestic shale gas reserves and 
its development and extraction, as well as continued low productions 
costs, will enable the United States to develop significant quantities 
of natural gas and LNG, which will be able to meet domestic demand for 
decades to come, and, as a result, also will provide an over-capacity 
of natural gas and LNG that would be available for export.
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    \3\ U.S. EIA, Annual Energy Outlook 2011, Executive Summary 
(2011), available at http://www.eia.gov/forecasts/aeo/pdf/0383(2011).pdf. (``2011 EIA Energy Outlook'').
    \4\ U.S. EIA, Annual Energy Outlook 2010 135, Table A-14 (2010), 
available at http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2010.pdf.
    \5\ 2011 EIA Energy Outlook at Table 8.
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    Carib states that it expects that its export of domestic LNG will 
encourage the development of jobs in the United States. Qualified 
domestic transportation companies will be used to transport the LNG 
from each Facility to port, thereby supporting those

[[Page 80915]]

businesses. Carib also states that as a growing company, it will also 
be creating jobs as its marketing and sale of LNG to new markets 
increases its need for additional sales and administrative staff.
    Carib states that because the requested exports will have minimal 
effect on domestic natural gas supply based on current projections, and 
the DOE/FE has retained the ability to address changes in the domestic 
gas supply, if, in the future, there are unexpected changed 
circumstances, granting this Application for the requested term is 
consistent with the public interest.

Environmental Impact

    Carib states that no modifications to the Facility would be 
required in order for it to export LNG, and accordingly, under 
Categorical Exclusion B5.7 of the National Environmental Policy Act 
(NEPA), approval of this Application would not constitute a federal 
action significantly affecting the human environment within the meaning 
of NEPA.

DOE/FE Evaluation

    This export Application will be reviewed pursuant to section 3(a) 
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. 11-141-
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) emailing the filing to 
[email protected] with FE Docket No. 11-141-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 Carib 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. To the 
extent that FE determines that certain material included with the 
Application is confidential information not appropriate for release to 
the general public, procedures will be established on request from 
intervenors to make that information available for their inspection. 
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 December 19, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2011-33168 Filed 12-23-11; 8:45 am]
BILLING CODE 6450-01-P