[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Pages 4677-4679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01713]


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DEPARTMENT OF ENERGY

[FE Docket No. 13-155-LNG]


ConocoPhillips Alaska Natural Gas Corporation; Application for 
Blanket Authorization To Export Liquefied Natural Gas to Non-Free Trade 
Agreement Countries 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 
December 11, 2013, by ConocoPhillips Alaska Natural Gas Corporation 
(CPANGC), requesting blanket authorization to export a quantity of 
liquefied natural gas (``LNG'') in an amount up to the equivalent of 40 
billion cubic feet (``Bcf'') of natural gas on a cumulative basis over 
a two-year period. CPANGC seeks blanket authorization to export this 
volume of LNG from facilities located in the Cook Inlet near Kenai, 
Alaska, acting on its own behalf or as agent for others, to any country 
with which the United States does not have a free trade agreement 
requiring national treatment for trade in natural gas and with which 
trade is not prohibited by U.S. law or policy (``non-FTA countries''). 
CPANGC seeks such authorization for a two-year period to commence on 
the date of issuance of the order granting the requested authorization.
    The Application was filed under section 3 of the Natural Gas Act 
(NGA), 15 U.S.C. 717b.

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 28, 
2014.

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 Lisa Tracy, 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) 586-4523.
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

    CPANGC is a Delaware corporation with its principal place of 
business in Anchorage, Alaska. CPANGC is a wholly-owned subsidiary of 
ConocoPhillips Company (``ConocoPhillips''), a publicly-traded Delaware 
corporation. CPANGC is authorized to do business in the State of 
Alaska, among other states. CPANGC is the operator and indirect owner 
of existing natural gas liquefaction and marine terminal facilities 
located in the Cook Inlet near Kenai, Alaska (``Kenai LNG Facility'').
    CPANGC states in the Application that either itself or its 
predecessors have exported LNG from the Kenai LNG Facility over a 
forty-five year period pursuant to several, sequential export 
authorizations granted by DOE/FE or its predecessor agencies. The more 
recent such authorizations have included DOE Order and Opinion No. 
2500, issued June 3, 2008, which authorized CPANGC and Marathon Oil 
Company (co-owners of the Kenai LNG Facility at the time) to export up 
to 99 trillion British thermal units (TBtus) of LNG on a short-term or 
spot-market basis to Japan and/or one or more countries in the Pacific 
Rim over a two-year period commencing April 1, 2009, and terminating 
March 31, 2011. DOE/FE denied rehearing of Order No. 2500 in DOE 
Opinion and Order No. 2500-A, issued July 30, 2008.
    Most recently, on October 5, 2010, DOE/FE issued Order No. 2860, 
which granted CPANGC and Marathon blanket authorization to export the 
balance of the 99 TBtus of LNG authorized for export in Order Nos. 2500 
and 2500-A, which had not been exported by the expiration of that 
authorization on March 31, 2011. This most recent authorization to 
export LNG from the Kenai LNG Facility to Japan and/or one or more 
other countries in the Pacific Rim with which trading is not prohibited 
by U.S. law commenced on April 1, 2011, and expired on March 31, 2013.
    CPANGC did not apply to extend its prior export authorizations 
beyond March 31, 2013. According to the Application, this was due to 
perceived uncertainties regarding the near-term adequacy of natural gas 
supplies in the Cook Inlet region for regional needs. CPANGC states, 
however, that the uncertainties have been removed and this change of 
circumstances justifies the instant Application.

Current Application

    CPANGC seeks blanket authorization to export a quantity of LNG in 
an amount up to the equivalent of 40 Bcf of natural gas from the Kenai 
LNG Facility, acting on its own behalf or as agent for others, to any 
country with which the United States does not have a free trade 
agreement requiring national treatment for trade in natural gas and 
with which trade is not prohibited by U.S. law or policy. CPANGC is 
willing to comply with the agency requirements imposed by DOE/FE in a 
series of recent orders. CPANGC seeks such authorization for a two-year 
period to commence on the date of issuance of the order granting the 
requested authorization. CPANGC expects that LNG prices will vary from 
time to time to reflect changes in market conditions.

[[Page 4678]]

Consistent with the DOE/FE precedent, natural gas purchase and sales 
contracts are not being filed as part of this application for blanket 
authorization to export LNG from the Kenai LNG Facility. CPANGC 
certifies that there are no other proceedings related to this 
Application currently pending at either DOE or any other Federal 
agency.
    CPANGC states that approval of this application is not a major 
Federal action significantly affecting the quality of the human 
environment within the meaning of the National Environmental Policy Act 
of 1969, 42 U.S.C. 4321 et seq., and no environmental impact statement 
or environmental assessment is required. CPANGC further states that the 
proposed export of LNG would not require any changes to the Kenai LNG 
Facility and that the LNG manufacturing and storage facilities that 
will be utilized during the blanket authorization already exist and 
have been operated safely without major disruption of supply or 
accident since their startup in 1969.

Public Interest Considerations

    CPANGC states that, under section 3 of the NGA, DOE/FE must 
authorize an export of natural gas from the United States to a foreign 
country unless there is a finding that the export will not be 
consistent with the public interest. CPANGC further states that DOE/FE 
has found that section 3 of the NGA creates a statutory presumption in 
favor of approval of a properly-framed export application, which 
opponents bear the burden of overcoming. According to CPANGC, DOE/FE's 
public interest determination is guided by DOE Delegation Order No. 
0204-111, which designates domestic need for the natural gas proposed 
to be exported as the only explicit criterion that must be considered 
in determining the public interest. CPANGC states that DOE/FE has found 
the regional need for the natural gas proposed to be exported to be the 
principal focus of its review for an application for authorization to 
export LNG from the State of Alaska and that DOE/FE has in turn 
evaluated regional need in Southcentral Alaska by determining whether 
there is sufficient evidence that regional natural gas supplies will be 
adequate to meet both regional needs and the proposed LNG export during 
the relevant export period. CPANGC also states that DOE/FE has 
considered other factors to the extent they are shown to be relevant to 
the public interest determination for an export authorization.
    CPANGC maintains that its Application for blanket authorization to 
export LNG from the Kenai LNG Facility to non-FTA countries is not 
inconsistent with the public interest. It asserts that the natural gas 
to be exported under the requested blanket authorization is not needed 
to meet regional demand for natural gas during the proposed export 
period. CPANGC adds that, by providing an additional source of demand, 
particularly during the warmer months when domestic demand is low, the 
requested export authorization will provide tangible benefits to the 
local community by not only preserving gas well deliverability and 
enhancing the current supply security of Southcentral Alaska, but also 
by providing an economic incentive and market opportunity for continued 
exploration and additional gas supply development in Alaska's Cook 
Inlet.
    Additional details can be found in CPANGC's Application, which is 
posted on the DOE/FE Web site at: http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/13_155_LNG.pdf.

Request for Expedited Action

    CPANGC requests that DOE/FE act upon the Application as 
expeditiously as possible, preferably within 90 days, in order that LNG 
export activity can be resumed during the second quarter of 2014. In 
view of the submission of letters in support of the Application from 
the State of Alaska Department of Natural Resources (DNR) and others 
(reproduced respectively in Appendix C and Appendix E to the 
Application), CPANGC does not expect material, substantive opposition 
to the requested export authorization from key stakeholders in 
Southcentral Alaska. In addition, CPANGC states that it is relying upon 
a supply and demand study that DOE/FE has already evaluated in DOE 
Opinion and Order No. 2860, as supplemented by a 2011 DNR Study that is 
incorporated by reference in the Application.

DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a). In reviewing this LNG export Application, DOE 
will consider issues required by law or policy. The Application is 
considered a renewal of previously issued authority (see discussion 
above). To the extent determined to be relevant or appropriate, DOE/
FE's review will include the impact of LNG exports associated with this 
Application on Alaskan regional domestic need for the natural gas 
proposed for export, adequacy of domestic natural gas supply in Alaska, 
and other issues, 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 the Application should address these issues in 
their comments and/or protests, as well as other issues deemed relevant 
to the Application.
    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 environmental 
responsibilities. Interested persons will be provided 30 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. 13-155-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 before 4:30 p.m. 
EST. All filings must include a reference to FE Docket No. 13-155-LNG. 
Please Note: If submitting a filing via email, please include all 
related documents and attachments (e.g., exhibits) in the original 
email correspondence. Please do not include any active hyperlinks or 
password protection in any of the documents or attachments related to 
the filing. All electronic filings submitted to DOE must follow these 
guidelines to

[[Page 4679]]

ensure that all documents are filed in a timely manner. Any hardcopy 
filing submitted greater in length than 50 pages must also include, at 
the time of the filing, a digital copy on disk of the entire 
submission.
    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 submit an answer to the Request for 
Expedited Action,\1\ or 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.
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    \1\ Under section 590.302(c) of the Department of Energy's 
regulations (10 CFR 590.302(c)), the Request for Expedited Action 
would be deemed denied by operation of law in the absence of agency 
action within 30 days after the Request was filed. In order to 
permit sufficient time for the submission of answers to the Request, 
the deadline for answers is being reset to February 28, 2014.
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    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 
Division 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 January 23, 2014.
John A. Anderson,
Director, Division of Natural Gas Regulatory Activities, Office of Oil 
and Gas Global Security and Supply, Office of Oil and Natural Gas.
[FR Doc. 2014-01713 Filed 1-28-14; 8:45 am]
BILLING CODE 6450-01-P