[Federal Register Volume 77, Number 215 (Tuesday, November 6, 2012)]
[Notices]
[Pages 66597-66599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27032]


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DEPARTMENT OF ENERGY

[FE Docket No. 12-113-LNG]


Chevron U.S.A. Inc.; 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 
September 10, 2012, by Chevron U.S.A. Inc. (Chevron), 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 72 billion cubic feet 
(Bcf) of natural gas on a short-term or spot market basis for a two-
year period commencing on December 8, 2012.\1\ The LNG would be 
exported from the Sabine Pass LNG Terminal owned by Sabine Pass LNG, 
L.P., in Cameron Parish, Louisiana 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). Protests, motions to intervene, 
notices of intervention, and written comments are invited.
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    \1\ Chevron U.S.A. Inc.'s, current blanket authorization to 
export previously imported LNG granted in DOE/FE Order No. 2888 
(December 8, 2010) extends through December 7, 2012.

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 the Public Comment 
Procedures section no later than 4:30 p.m., eastern time, December 6, 
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2012.

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 Electricity and Fossil Energy, Forrestal Building, 
Room 6B-256, 1000 Independence

[[Page 66598]]

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

SUPPLEMENTARY INFORMATION: 

Background

    Chevron is a Pennsylvania corporation with its principal place of 
business in San Ramon, California. Chevron Global Gas is a division of 
Chevron that engages in the global business of marketing and trading 
LNG. Chevron has contracted for 1.0 Bcf/day of terminal capacity from 
Sabine Pass LNG L.P. for an initial term of twenty years that commenced 
in November 2004 with the option to extend the term for a period of 
twenty years. On June 22, 2012, DOE/FE Order No. 3113 granted Chevron 
blanket authorization to import LNG up to the equivalent of 800 Bcf of 
natural gas from various international sources for a two-year period 
beginning on August 1, 2012. Under the terms of the blanket 
authorization, LNG may be imported at any LNG receiving facility in the 
United States and its territories.

Current Application

    In the instant Application, Chevron requests blanket authorization 
to export previously imported LNG to which Chevron holds title on a 
short-term or spot market basis in an amount up to the equivalent of 72 
Bcf of natural gas, on a cumulative basis, over a two-year period 
beginning on December 8, 2012. Chevron is seeking such authorization to 
export previously imported LNG to any country with the capacity to 
import LNG via ocean-going carrier and with which trade is not 
prohibited by Federal law or policy. Chevron states that it does not 
seek authorization to export domestically-produced natural gas or LNG.
    The blanket export authorization requested by Chevron would be 
applicable to exports from the Sabine Pass LNG Terminal, owned by 
Sabine Pass LNG, L.P. in Cameron Parish, Louisiana. Chevron states that 
DOE/FE has issued a number of blanket authorizations to export 
previously-imported LNG, including the recently granted authorization 
for such re-exports from this terminal to Cheniere Marketing LLC in 
DOE/FE Order No. 3102 granted on June 7, 2012. Chevron states that 
there are no other proceedings related to this Application currently 
pending before the DOE or any other federal agency.
    Chevron states that the request to export previously imported LNG 
is based on its desire to optimize the long-term capacity it has 
contracted for at the Sabine Pass LNG Terminal by responding 
effectively to periodic changes in domestic and world markets for 
natural gas and LNG. More specifically, Chevron asserts it desires the 
option to either export previously imported LNG to other world markets, 
or regasify the imported LNG for sale in domestic markets. Chevron 
states that it would base any decision related to the sale of imported 
LNG on prevailing market conditions. Chevron asserts that it does not 
intend to export any LNG when market conditions dictate that the LNG be 
used to meet domestic needs.

Public Interest Considerations

    In support of its Application, Chevron states that pursuant to 
section 3 of the NGA, DOE/FE must authorize natural gas exports to a 
foreign country unless there is a finding that such exports ``will not 
be consistent with the public interest.'' \2\ Chevron states that 
section 3 thus creates a statutory presumption in favor of a properly 
framed export application.\3\ Chevron states further that the public 
interest determination is guided by DOE Delegation Order No. 0204-111, 
which ``focuses primarily on domestic need for the gas to be exported, 
as described in the Secretary's natural gas policy guidelines''.\4\
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    \2\ 15 U.S.C. 717b.(a). Natural gas is defined to include LNG in 
10 CFR 590.102(i).
    \3\ Phillips Alaska Natural Gas Corp. and Marathon Oil Co., DOE/
FE Order No. 1473 (2 FE ] 70,317) at 13 (April 2, 1999), citing 
Panhandle Producers and Royalty Owners Association v. ERA, 822 F.2d 
1105, 1111 (D.C. Cir. 1987).
    \4\ Cheniere Marketing, LLC, Order Granting Blanket 
Authorization to Export Previously Imported Liquefied Natural Gas by 
Vessel, DOE/FE Order No. 3102 (FE Docket No. 12-36-LNG) at 5 (June 
7, 2012).
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    As detailed in the Application, Chevron states the blanket export 
authorization requested by Chevron satisfies the public interest 
standard for the following reasons. Chevron states that there is no 
domestic reliance on the imported LNG that Chevron would export 
pursuant to the blanket authorization requested in the Application. 
Specifically, Chevron states that in the DOE/FE Order No. 3102 \5\ DOE/
FE took administrative notice that recent data and analysis shows 
domestic natural gas production has increased significantly over the 
last several years, due to improved drilling technologies, and the 
ability to produce natural gas trapped in shale gas geologic 
formations. Chevron asserts that granting the blanket export 
authorization would encourage the importation of LNG into the United 
States by providing Chevron the option, based on prevailing market 
conditions, to either export previously imported LNG to other world 
markets or regassify the LNG for sale in domestic markets. Chevron 
asserts that the authorization would encourage Chevron to purchase spot 
market LNG cargoes for import into the United States, and would make 
more gas available to the domestic market if it were needed. Finally, 
Chevron states that granting the blanket export authorization would not 
reduce domestically-produced natural gas supplies because it is not 
seeking to export domestically-produced natural gas supplies.
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    \5\ Id.
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Environmental Impact

    Chevron states that no modifications to the Sabine Pass LNG 
Terminal are required to enable the proposed exports of LNG. Chevron 
asserts that consequently, granting this Application would not be a 
federal action significantly affecting the human environment under the 
National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq.

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.
    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, 
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

[[Page 66599]]

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) 
Emailing the filing to [email protected], with FE Docket No. 12-113-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office of Oil and Gas Global Security and Supply at 
the address listed in ADDRESSES; or (3) hand delivering an original and 
three paper copies of the filing to the Office of Oil and Gas Global 
Security and Supply 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 Chevron is available for inspection and 
copying in the Office of Natural Gas Regulatory Activities docket room, 
3E-042, 1000 Independence Avenue SW., Washington, DC 20585. The docket 
room is open between the hours of 8:00 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.

    Issued in Washington, DC, on October 31, 2012.
Robert F. Corbin,
Director, Office of Oil and Gas Global Security and Supply, Office of 
Fossil Energy.
[FR Doc. 2012-27032 Filed 11-5-12; 8:45 am]
BILLING CODE 6450-01-P