[Federal Register Volume 78, Number 113 (Wednesday, June 12, 2013)]
[Notices]
[Pages 35263-35265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13944]


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DEPARTMENT OF ENERGY

[FE Docket No. 13-51-LNG]


Freeport LNG Development, L.P.; 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 
April 19, 2013, by Freeport LNG Development, L.P. (Freeport LNG), 
requesting blanket authorization to export liquefied natural gas (LNG) 
that previously had been imported into the United States from foreign 
sources in a cumulative amount up to the equivalent of 24 billion cubic 
feet (Bcf) of natural gas on a short-term or spot market basis for a 
two-year period commencing on July 19, 2013.\1\ The LNG would be 
exported from the existing Freeport LNG Terminal facilities 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. Freeport LNG is requesting authorization both to export LNG 
to which it holds title on its own behalf and as agent for parties who 
hold title to the LNG at the time of export. 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\ Freeport LNG Development, L.P., DOE/FE Order No. 2986 (July 
19, 2011) extends through July 18, 2013 (FE Docket No. 11-51-LNG).

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, July 12, 
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2013.

ADDRESSES: Electronic Filing by email: [email protected]

Regular Mail

    U.S. Department of Energy (FE-34), Office of Oil and Gas Global 
Security and Supply, 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 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 Ave. SW., Washington, DC 20585, (202) 
586-3397.

SUPPLEMENTARY INFORMATION: 

Background

    Freeport LNG is a Delaware limited partnership with four limited 
partners: (1) Freeport LNG Investments, LLP, a Delaware limited 
liability limited partnership, which owns a 20% limited partnership 
interest in Freeport LNG; (2) ZHA FLNG Purchaser LLC, a Delaware 
limited liability company, which owns

[[Page 35264]]

a 55% limited partnership interest in Freeport LNG; (3) Texas LNG 
Holdings, LLC, a Delaware limited liability company and wholly-owned 
subsidiary of The Dow Chemical Company, which owns a 15% limited 
partnership interest in Freeport LNG; and (4) Turbo LNG, LLC, a 
Delaware limited liability company and wholly-owned subsidiary of Osaka 
Gas Co., Ltd., which owns a 10% limited partnership interest in 
Freeport LNG. In addition to the limited partners, Freeport LNG has one 
general partner that manages the company, Freeport LNG-GP, Inc., a 
Delaware corporation, which is owned 50% by MS GP Holdco, LLC, an 
entity owned by an individual, Michael S. Smith, and 50% by 
ConocoPhillips Company. Freeport LNG has its principal place of 
business in Houston, Texas.
    On June 18, 2004, the Federal Energy Regulatory Commission (FERC) 
authorized Freeport LNG to site, construct and operate the Freeport LNG 
Terminal on Quintana Island, southeast of the City of Freeport in 
Brazoria County, Texas. The facilities, completed in June 2008, include 
an LNG ship marine terminal and unloading dock, LNG transfer lines and 
storage tanks, high-pressure vaporizers, and a 9.6-mile long send-out 
pipeline extending to the Stratton Ridge meter station.\2\ On July 1, 
2008, FERC issued a letter Order granting Freeport LNG's request to 
commence service at its Quintana Island import terminal.
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    \2\ See Freeport LNG Development, L.P., 107 FERC ] 61,278, 
(2004), order granting rehearing and clarification, 108 FERC ] 
61,253 (2004), order amending Section 3 authorization, 112 FERC ] 
61,194 (2005), order issuing authorization, 116 FERC ] 61,290 
(2006).
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    On May 28, 2009, in DOE/FE Order No. 2644, DOE/FE granted Freeport 
LNG authorization to export previously imported foreign-sourced LNG, on 
its own behalf or as an agent for others, up to a cumulative total 
equivalent to 24 Bcf of natural gas from the Freeport LNG Terminal to 
certain countries in Europe and Asia for a two-year period that 
extended through May 27, 2011. In amendments set forth in DOE/FE Order 
Nos. 2644-A and 2644-B, Freeport LNG was authorized to export this LNG 
to any country not prohibited by U.S. law that has capacity to import 
LNG via ocean-going carrier.
    On July 19, 2011, in DOE/FE Order No. 2986, DOE/FE extended this 
authorization for an additional two years. Specifically, DOE/FE granted 
Freeport LNG blanket authorization to export previously imported 
foreign-sourced LNG, on its own behalf or as agent for others, up to a 
cumulative total equivalent to 24 Bcf of natural gas from the Freeport 
LNG Terminal for an additional two-year period that extends through 
July 18, 2013, to any country with the capacity to import LNG via 
ocean-going carrier and with which trade was not prohibited by U.S. law 
or policy.

Current Application

    The current Application is filed in anticipation of the upcoming 
expiration of Order No. 2986 on July 18, 2013, and requests the same 
type of authorization previously granted in that Order. Freeport LNG 
therefore requests this blanket authorization to export previously 
imported foreign-sourced LNG, on its own behalf or as agent for others 
who hold title to the LNG at the time of export, up to a cumulative 
total equivalent to 24 Bcf of natural gas from the Freeport LNG 
Terminal for a two-year period, beginning on July 19, 2013. Freeport 
LNG 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. Freeport 
LNG states that it does not seek authorization to export domestically-
produced natural gas or LNG.

Public Interest Considerations

    Freeport LNG asserts that the proposed authorization is in the 
public interest. In support of its Application, Freeport LNG states 
that section 3 of the NGA provides that application to export natural 
gas to foreign countries will be authorized unless there is a finding 
that such exports ``will not be consistent with the public 
interest.''\3\ Freeport LNG states that Section 3 thus creates a 
statutory presumption in favor of approval of this application, and 
that parties opposing the authorization bear the burden of overcoming 
this presumption.
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    \3\ 15 U.S.C. 717b(a). Natural gas is defined to include LNG in 
10 CFR 590.102(i).
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    Freeport LNG states that, in its existing authorization to export 
foreign-sourced LNG granted in Order 2986, DOE/FE determined that there 
was no domestic reliance on the volumes of imported LNG that Freeport 
LNG sought to export. As before, the imported LNG that Freeport LNG 
seeks to export will be surplus to the demands of U.S. markets during 
the period of requested authorization, and is needed primarily to 
enable Freeport LNG to economically maintain and operate its Quintana 
Island terminal. Freeport LNG asserts that, as there is no reliance on 
domestic supplies, the requested authorization is not inconsistent with 
the public interest. Freeport LNG further asserts that this proposed 
authorization meets the requirements of DOE Delegation Order No. 0204-
111, which requires ``consideration of the domestic need for the gas to 
be exported.'' \4\
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    \4\ New Policy Guidelines and Delegations Order Relating to 
Regulation of Imported Natural Gas, 49 FR 6684 (Feb. 22, 1984).
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    Freeport LNG states that the authorization requested will provide 
commercial flexibility to help ensure the full and continual operation 
of its LNG import facilities at the Quintana Island terminal. Freeport 
LNG further states that the proposed export of foreign-sourced LNG will 
not reduce local or domestic supplies of natural gas.
    Freeport LNG emphasizes that the requested authorization will 
ensure the operational readiness of essential infrastructure at its 
Quintana Island terminal. Freeport LNG states that, if the continuous 
cryogenic operations of the terminal facility were interrupted, it 
would require several weeks to restore the system to operational 
readiness. Furthermore, if operations were interrupted, Freeport LNG 
and its Quintana Island terminal would be unable to respond to changes 
in U.S. natural gas market conditions should those occur. For these 
reasons, Freeport LNG asserts that ensuring the continuing operation of 
essential U.S. energy infrastructure is consistent with the public 
interest.

Environmental Impact

    Freeport LNG states that no change to the Freeport LNG Terminal on 
Quintana Island would be required for the proposed export of foreign-
sourced LNG. Thus, according to Freeport LNG, approval of this 
application will not constitute a federal action significantly 
affecting the human environment within the meaning of the National 
Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq., and no 
environmental impact statement or environmental assessment will be 
required.

DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a), 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 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

[[Page 35265]]

policy of promoting competition in the marketplace by allowing 
commercial parties to freely negotiate their own trade arrangements. 
Persons 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. The information 
contained in any filing will not be held confidential and will be 
posted to DOE's public Web site except to the extent confidential 
treatment is requested and granted.
    Filings may be submitted using one of the following methods: (1) E-
Mailing the filing to [email protected], with FE Docket No. 13-51-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. All filings 
must include a reference to FE Docket No. 13-51-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 is available for inspection and copying in the 
Office of Oil and Gas Global Security and Supply 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 June 5, 2013.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2013-13944 Filed 6-11-13; 8:45 am]
BILLING CODE 6450-01-P