[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Notices]
[Pages 72837-72840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29479]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

[FE Docket No. 12-156-LNG]


Golden Pass Products LLC; Application for Long-Term Authorization 
To Export Liquefied Natural Gas Produced From Domestic Natural Gas 
Resources to Non-Free Trade Agreement Countries for a 25-Year Period

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of application.

-----------------------------------------------------------------------

SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy 
(DOE) gives notice of receipt of an application (Application) filed on 
October 26, 2012, by Golden Pass Products LLC (GPP), requesting long-
term, multi-contract authorization to export domestically produced 
liquefied natural gas (LNG) in an amount up to the equivalent of 740 
billion cubic feet (Bcf) of domestically produced natural gas per year, 
equal to approximately 15.6 million metric tons per annum (mtpa), for a 
period of 25 years beginning on the earlier of the date of first export 
or seven years from the date the authorization is granted by DOE/FE. 
The LNG would be exported from the existing Golden Pass LNG Terminal 
(Golden Pass Terminal), a facility located in Sabine Pass, Texas, to 
any country (1) That has or in the future develops the capacity to 
import LNG via ocean-going carrier; (2) with which the United States 
does not prohibit trade; and (3) that does not have a Free Trade 
Agreement (FTA) requiring the national treatment for trade in natural 
gas (NFTA country). GPP seeks to export this LNG on its own behalf and 
also as agent for other entities who themselves hold title to the LNG. 
The Application was filed under section 3 of the Natural Gas Act (NGA). 
Protests, motions to intervene,

[[Page 72838]]

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 the Public Comment 
Procedures section no later than 4:30 p.m., eastern time, February 4, 
2013.

ADDRESSES: 
    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 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-256, 1000 Independence Avenue SW., Washington, DC 20585, (202) 
586-3397.

SUPPLEMENTARY INFORMATION:

Background

    GPP is a Delaware limited liability company with its principal 
place of business in Houston, Texas. GPP is owned by QTL U.S. Terminal 
LLC (an affiliate of Qatar Petroleum International Limited), and Golden 
Pass LNG Terminal Investments LLC. GPP is affiliated with Golden Pass 
LNG Terminal LLC (GPLNG) and Golden Pass Pipeline LLC (GPPL). GPP was 
formed by affiliates of Qatar Petroleum and Exxon Mobil Corporation.
    GPP states that the Application represents the second part of a 
two-part authorization request to export LNG from domestic sources. On 
August 17, 2012, in FE Docket No. 12-88-LNG, GPP filed with DOE/FE a 
separate application for long-term multi-contract authorization to 
engage in the export of LNG in an amount up to 740 million Bcf per 
year, to any country with which the U.S. has or in the future will have 
an FTA requiring the national treatment for trade in natural gas and 
LNG; that has developed, or in the future develops, the capacity to 
import LNG; and with which trade is not prohibited by U.S. law or 
policy. DOE/FE subsequently issued an order in FE Docket No 12-88-LNG 
granting long-term export authorization to FTA countries from the 
Golden Pass Terminal.\1\
---------------------------------------------------------------------------

    \1\ Golden Pass Products LLC, Order Granting Long-Term Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessel 
from the Golden Pass LNG Terminal to Free Trade Agreement Nations, 
DOE/FE Order No. 3147, September 27, 2012 (FE Docket No 12-88-LNG).
---------------------------------------------------------------------------

    GPLNG owns and operates an LNG import terminal located near Sabine 
Pass, in Jefferson County, Texas. GPPL is an interstate pipeline 
connected to the import terminal and regulated by the Federal Energy 
Regulatory Commission (FERC). The GPLNG import terminal is a receiving 
facility for LNG imported from abroad. The import terminal has a 
nominal output of 2 Bcf per day (Bcf/d), with a peak capacity of 2.7 
Bcf/d. In an order issued on July 6, 2005, the FERC authorized GPLNG 
under Section 3 of the NGA to site, construct and operate: (1) A 
berthing structure and unloading facilities for LNG ships; (2) 
vaporization equipment; (3) five LNG storage tanks with approximate 
working capacity of 155,000 cubic meters (m\3\) each; and (4) 
associated utilities, infrastructure and facilities required to send 
out natural gas from the import terminal. The July 6, 2005, FERC order 
also authorized GPPL to construct and operate a 70-mile interstate 
pipeline system to receive revaporized gas form the GPLNG import 
terminal to be transported to domestic markets. The import facilities 
were placed in service on March 14, 2011.
    GPP intends to construct and operate the GPP export facility 
contiguous to and interconnected with the GPLNG import terminal, for 
the liquefaction and export of domestically produced natural gas. GPP 
states that it intends to construct and operate the export facilities 
to maximize use of the existing GPLNG import terminal facilities, with 
the intent of preserving full import capability of the GPLNG import 
facilities while also creating new export capability.
    GPP states that domestic gas would be delivered to the GPP export 
facility through GPPL's existing pipeline. GPP states that the pipeline 
would be modified to flow gas (1) to the GPP export facility for export 
to other countries, or (2) from the GPLNG import terminal for delivery 
to interstate and intrastate markets. GPP also states that the existing 
facilities at the import terminal would be used as part of the 
liquefaction project. These facilities include insulated LNG and gas 
piping, ship berthing facilities, and the five LNG storage tanks and 
control systems. In addition, GPP states that it would construct new 
facilities to liquefy the natural gas delivered to the GPP export 
project through the pipeline owned by GPPL.

Current Application

    In the instant Application, GPP seeks long-term, multi-contract 
authorization to export LNG in an amount up to the equivalent of 740 
Bcf of domestically produced natural gas per year, for a period of 25 
years beginning on the earlier of the date of first export or seven 
years from the date the authorization is granted by DOE/FE. In order to 
engage in these exports, GPP requests authority to: (1) Engage in 
natural gas purchases and LNG sales for export, and (2) act as agent 
for third parties. In addition, GPP requests authorization to provide 
tolling services for third parties. GPP requests authorization to 
export this LNG to any country with which the United States does not 
have an FTA requiring national treatment for trade in natural gas, that 
has, or in the future develops, the capacity to import LNG, and with 
which trade is not prohibited by U.S. law or policy.
    GPP states that it anticipates entering into one or more long-term 
agreement to export LNG that do no exceed the term requested in the 
Application. GPP states that the contracts will provide for GPP to 
liquefy natural gas and load it onto LNG tankers for export. GPP states 
that the specific terms of GPP's future contracts for liquefaction end 
exportation of natural gas will include provisions governing dates of 
commencement and termination, pricing, volumes, and export 
destinations. GPP notes that market conditions and negotiations will 
determine the precise terms of these contracts. GPP further notes that 
such contracts will expressly require that the export destination be 
consistent with GPP's export authorization from DOE/FE, and that 
deliveries shall be reported to DOE/FE on a monthly basis.
    GPP states that customers contracting with GPP for tolling services 
will be responsible for procuring their own gas supplies and holding 
title to the gas delivered to the GPP facility for liquefaction. GPP 
states that customers will be responsible for arranging the delivery of 
gas to the terminal. GPP also states that consistent with prior DOE/FE 
orders authorizing export tolling services, GPP will accept a condition 
requiring GPP to register with DOE/FE

[[Page 72839]]

each title holder for whom GPP seeks to export LNG.\2\
---------------------------------------------------------------------------

    \2\ Freeport LNG Development, L.P., FE Docket No. 11-51-LNG, 
DOE/FE Order No. 2986 (July 19, 2011); Sabine Pass Liquefaction, 
LLC, FE Docket No. 10-111-LNG, DOE/FE Order No. 2961 (May 20, 2011).
---------------------------------------------------------------------------

    GPP states that it will file with DOE/FE any relevant long-term 
commercial agreements within thirty days of execution. GPP states that 
it will file either (1) a copy of each long-term contract with 
commercially sensitive information redacted, or (2) a summary of all 
major provision of the contract. GPP states that each of its contract 
filings will include a justification for non-disclosure of any redacted 
contract provisions or information.
    GPP states that the GPP export facility will have access to 
substantial quantities of natural gas from diverse domestic supply 
sources. GPP notes that the GPP export facility will be located close 
to the Onshore Gulf Coast, the Offshore Gulf of Mexico and the Mid-
Continent producing regions, which GPP states have long been 
significant U.S. natural gas supply areas. Specifically, GPP states 
that the export project is located close to well-developed pipeline and 
transportation infrastructure. GPP states that the export facility will 
be connected, through the GPPL pipeline, with the interstate pipeline 
systems of Florida Gas Transmission Company, LLC; Golden Triangle 
Storage, Inc.; Natural Gas Pipeline Company of America; Tennessee Gas 
Pipeline Company, LLC; Texas Eastern Transmission, LP; and 
Transcontinental Gas Pipeline Company, LLC. GPP notes that each of 
these pipelines in turn has interconnections with a larger network of 
pipeline traversing the Gulf Coast region.
    Lastly, GPP states that it intends to apply separately to the FERC 
for authorization to site, contract and operate the proposed GPP export 
facility under Section 3 of the NGA and Part 153 of the FERC's 
regulations.

Public Interest Considerations

    GPP states that the requested LNG export authorization is in the 
public interest. GPP states that approval of GPP's proposed exports 
will not impact the adequacy of domestic production to meet projected 
demand over the term of the requested authorization. GPP further states 
that it will contemplate contracts that will be based on market-
competitive terms. In addition, GPP states that it has considered the 
public benefits to its proposed exports, including the impact on U.S. 
job creation, U.S. gross domestic product, domestic energy security, 
U.S. trade, as well as the cumulative impacts of all LNG projects on 
the domestic need for gas. GPP concludes that the proposed export 
project is consistent with the public interest under all of these 
considerations.
    In support of the Application, GPP submitted an independent study 
by The Perryman Group to help identify the socioeconomic impacts of 
GPP's proposed export project (TPG Study). In particular, the TPG Study 
sought to quantify the potential gains in business activity in 
Jefferson County, Texas, the location of the terminal. GPP states that 
the TPG Study concludes that the project could create approximately $31 
billion in U.S. economic gains at the local, state and national levels 
over the life of the project. Specifically, the approximately $10 
billion investment in infrastructure to build the facility would 
generate: (1) An estimated $20 billion in national gross product during 
the five-year construction phase, and (2) an estimated $11 billion in 
national gross product from operations, about $460 million annually for 
the life of the facility. The TPG Study goes on to project that the GPP 
project would generate tens of thousands of jobs for American workers 
across the country including: (1) 324,000 person-years of direct and 
indirect work over the life of the project; (2) the equivalent of 
45,000 jobs nationally during the five-year construction phase, 
including 9,000 construction jobs as well as jobs across a wide 
spectrum of supporting industries, including manufacturing, 
transportation, and utilities; and (3) around 3,800 permanent jobs 
nationwide during the operation phase, including more than 200 jobs at 
the facility. Lastly, GPP states that the TPG Study projects cumulative 
tax revenues for federal, state, and local governments totaling about 
$4.6 billion across the construction and operating life of the project.
    To further support the Application, GPP engaged Deloitte 
MarketPoint (DMP) to provide a comprehensive analysis to evaluate the 
price impact of GPP's proposal to export natural gas. GPP states that 
the DMP study shows that exports of 2 Bcf/d from the GPP project would 
have less than a 1 percent effect on long-term annual average prices, 
despite an outlook of robust U.S. gas demand growth. GPP notes that the 
DMP study also concluded that the potential cumulative price effects 
from U.S. LNG export projects would be modest based on the idea that: 
(1) U.S. producers currently have access to abundant domestic natural 
gas that can be developed cost-effectively to supply both domestic and 
incremental LNG export opportunities; (2) only a limited number of 
projects will likely reach completion; and (3) competition for 
international markets will serve to balance the collective growth of 
U.S. export developments, further moderating domestic market 
implications.
    Additionally, in support of the Application, GPP cites numerous 
studies, statistics, and reports as prepared by the Energy Information 
Administration, MIT, the Brookings Institution, the American Chemistry 
Council, and the U.S. Census Bureau to demonstrate that the export of 
LNG and the approval of this Application are in the public interest.
    Further details can be found in the Application, which has been 
posted at http://www.fe.doe.gov/programs/gasregulation/index.html.

Environmental Impact

    GPP states that the export project will be designed to minimize or 
mitigate environmental or other adverse impacts. GPP contends that the 
proposal does not constitute a major federal action significantly 
affecting the quality of human environment, within the meaning of the 
National Environmental Policy Act (NEPA) of 1969. GPP states that it 
plans to file an application with the FERC for the necessary 
authorization to construct and operate the GPP export facility, and 
that the FERC will complete an environmental review prior to granting 
the requested authorization. GPP recognizes that it cannot engage in 
the export of LNG until after the FERC has granted its NGA section 3 
authorization and the necessary facilities have been constructed and 
placed in service. GPP states that DOE has previously participated in 
the FERC's environmental review process as a cooperating agency in 
other LNG export projects. Accordingly, GPP requests that DOE/FE 
condition the export authorization requested in this Application on 
GGP's receipt of all necessary FERC authorizations to construct and 
operate the GPP export facility.

DOE/FE Evaluation

    The 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 any issues required by law or policy. To the extent determined 
to be relevant or

[[Page 72840]]

appropriate, these issues will include the impact of LNG exports 
associated with this Application, and the cumulative impact of any 
other application(s) previously approved, on domestic need for the gas 
proposed for export, adequacy of domestic natural gas supply, U.S. 
energy security, and any other issues, including the impact on the U.S. 
economy (GDP), consumers, and industry, job creation, U.S. balance of 
trade, international considerations, and 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, as well as any other issues 
deemed relevant to the Application.
    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 environmental 
responsibilities.
    Due to the complexity of the issues raised by the Applicants, 
interested persons will be provided 60 days from the date of 
publication of this Notice in which to submit comments, protests, 
motions to intervene, notices of intervention, or motions for 
additional procedures.

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) 
Emailing the filing to [email protected] with FE Docket No. 12-156-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office Natural Gas Regulatory Activities at the 
address listed in ADDRESSES. The filing must include a reference to FE 
Docket No. 12-156-LNG; or (3) 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. The filing must include 
a reference to FE Docket No. 12-156-LNG.
    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 GPP 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 8:00 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 November 30, 2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2012-29479 Filed 12-5-12; 8:45 am]
BILLING CODE 6450-01-P