[Federal Register Volume 79, Number 101 (Tuesday, May 27, 2014)]
[Notices]
[Pages 30109-30112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12210]


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DEPARTMENT OF ENERGY

[FE Docket No. 13-69-LNG]


Venture Global LNG, 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.

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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 
May 13, 2013, by Venture Global LNG, LLC (Venture Global), requesting 
long-term, multi-contract authorization to export domestically produced 
liquefied natural gas (LNG) \1\ in a volume up to 5 million metric tons 
per year (mtpa), which is equivalent to approximately 243.6 billion 
cubic feet per year (Bcf/yr) of natural gas, or 0.67 Bcf per day (Bcf/
d).\2\ Venture Global seeks authorization to export the LNG by vessel 
\3\ from the proposed Venture Global LNG Project (Project), a natural 
gas liquefaction and LNG export terminal to be located along the 
Calcasieu Ship Channel in Cameron Parish, Louisiana. Venture Global 
requests authorization to export this LNG for a 25-year term commencing 
on the earlier of the date of first export or eight years from the date 
the authorization is granted.
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    \1\ The Application states that Venture Global also seeks 
authority to export previously imported LNG, but by email dated 
September 13, 2013, Venture Global informed DOE/FE that it no longer 
seeks that authority. Rather, it seeks only to export domestically 
produced LNG, as stated above.
    \2\ Applicants are required to provide volumes of natural gas in 
Bcf, 10 CFR 590.202(b)(1), and therefore DOE/FE will address Venture 
Global's requested authorization in Bcf/yr.
    \3\ As discussed below, Venture Global informed DOE/FE by letter 
dated December 12, 2013, that it seeks authority to export LNG only 
by loading the LNG directly onto vessels, not also by using LNG 
containers transported on vessels, as the Application stated. See 
Ltr. From J. Patrick Nevins, Counsel to Venture Global LNG, LLC, to 
John Anders, U.S. Dep't of Energy, FE Docket No. 13-69-LNG (Dec. 12, 
2013) [hereinafter Venture Global Ltr.].
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    In the portion of Venture Global's Application subject to this 
Notice, Venture Global requests authorization to export LNG to any 
country with which the United States does not have a free trade 
agreement (FTA) requiring national treatment for trade in natural gas 
(non-FTA countries), and with which trade is not prohibited by U.S. law 
or policy. Venture Global requests this authorization both on its own 
behalf and as agent for other 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.

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, June 26, 
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 Marc Talbert, 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
Cassandra Bernstein, U.S. Department of Energy (GC-76) Office of the 
Assistant General Counsel for Electricity and Fossil Energy, Forrestal 
Building, 1000 Independence Avenue SW., Washington, DC 20585, (202) 
586-9793

SUPPLEMENTARY INFORMATION: 

Background

    Applicant. Venture Global states that it is a Delaware limited 
liability company with its principal place of business in Washington, 
DC. Venture Global further states that it is wholly owned by its sole 
member, Venture Global Partners, LLC (VGP), which in turn is fifty 
percent owned and controlled by each of Robert B. Pender and Michael A. 
Sabel. Venture Global states that VGP and its affiliates, including 
Venture Global, are working to develop LNG liquefaction, export, 
import, storage, and re-gasification terminals, among other 
initiatives. Venture Global states that with the exception of its 
parent, VGP, and its affiliate, Venture Global Power, LLC,\4\ Venture 
Global is not currently affiliated with any other energy company or 
governmental organization.
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    \4\ According to Venture Global, Venture Global Power, LLC is an 
affiliate of VGP and Venture Global. It is majority owned and 
controlled by Robert B. Pender and Michael A. Sabel.
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    Procedural History. In the portion of the Application not subject 
to this Notice, Venture Global sought authorization to export LNG from 
the Project to FTA countries (i.e., countries with which the United 
States currently has, or in the future will have, a free trade 
agreement requiring national treatment for trade in natural gas) \5\ in 
a

[[Page 30110]]

volume equivalent to approximately 243.6 Bcf/yr of natural gas (0.67 
Bcf/d)--the same volume requested for export to non-FTA countries. DOE/
FE granted the FTA authorization on September 27, 2013, in DOE/FE Order 
No. 3345.\6\ Venture Global states that the FTA and requested non-FTA 
volumes of LNG are for the same volume of natural gas and thus are not 
additive.
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    \5\ The United States currently has FTAs requiring national 
treatment for trade in natural gas with Australia, Bahrain, Canada, 
Chile, Colombia, Dominican Republic, El Salvador, Guatemala, 
Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, 
Republic of Korea, and Singapore. FTAs with Israel and Costa Rica do 
not require national treatment for trade in natural gas.
    \6\ Venture Global LNG, LLC, DOE/FE Order No. 3345, Order 
Granting Long-Term Multi-Contract Authorization to Export Liquefied 
Natural Gas by Vessel from the Proposed Export Venture Global LNG 
Project in Cameron Parish, Louisiana to Free Trade Agreement Nations 
(Sept. 27, 2013).
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    Liquefaction Project. Venture Global seeks long-term authorization 
to export LNG from the Project, which it states is a proposed mid-scale 
natural gas liquefaction and export terminal to be located at the 
entrance of the Calcasieu Ship Channel in Cameron Parish, Louisiana. 
Venture Global states that it is currently developing the Project.
    In the Application, Venture Global states that it has executed an 
agreement for the exclusive right to lease approximately 69 acres for 
the Project site.\7\ Subsequently, by letter to DOE/FE dated December 
13, 2013, Venture Global informed DOE/FE that the original lease 
agreement referenced in the Application has been superseded by two 
definitive Lease Option Agreements, one for 59 acres and one for 10 
acres.\8\ Venture Global states that this land encompasses the same 
contiguous 69 acres covered by the original lease agreement. In the 
letter, Venture Global further states that it has entered into a third 
Lease Option agreement, for an additional 40 acres contiguous with the 
original 69 acres.\9\ Thus, according to Venture Global, it currently 
holds options to acquire a project site totaling 109 acres.
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    \7\ The Project site lease agreement is attached, in redacted 
form, to Venture Global's Application as Exhibit D.
    \8\ See Venture Global Ltr., at 1.
    \9\ Copies of the three executed Lease Option Agreements, in 
redacted form, are attached to the Venture Global Letter.
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Current Application

    Venture Global seeks to export domestically produced LNG in a total 
volume equivalent to approximately 243.6 Bcf/yr of natural gas, or 0.67 
Bcf/d. Venture Global states that it plans to export the LNG from the 
Project to any non-FTA country which 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. Venture Global requests this 
authorization for a 25-year term commencing on the earlier of the date 
of first export or eight years from the date the requested 
authorization is granted.
    Venture Global seeks to export the requested LNG on its own behalf 
and as agent for third parties who hold title to the LNG at the time of 
export. Venture Global states that these third parties may include its 
``Contract Parties,'' which Venture Global states are both (i) 
reputable, experienced, and credit-worthy international companies 
focusing on global infrastructure that will provide equity and project 
finance debt, and (ii) international energy and logistics companies 
that are experts in various aspects of natural gas and LNG businesses 
(including liquefaction, marine transportation, LNG terminal, LNG 
storage and regasification, and power generation businesses).\10\
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    \10\ App. at 5.
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    Venture Global states that it will comply with all DOE/FE 
requirements for exporters and agents as set forth in recent DOE/FE 
orders, including registering each LNG title holder for whom Venture 
Global seeks to export as agent. Venture Global proposes that this 
registration include a written statement by the title holder 
acknowledging and agreeing to comply with all applicable requirements 
set forth in Venture Global's export authorization, and to include 
those requirements in any subsequent purchase or sale agreement entered 
into by that title holder.
    Venture Global states that either directly, together with, or 
through one or more of its Contract Parties, Venture Global plans to 
procure natural gas supplies in the United States for liquefaction and 
export from the Project to supply its international projects. Venture 
Global also will arrange for the transportation of the LNG to LNG 
import facilities via ocean-going carriers.\11\
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    \11\ As noted above, the Application states that Venture Global 
intends to export LNG ``either directly or by use of approved LNG 
containers transported on ocean-going carriers'' (App. at 4), but 
Venture Global later clarified that it no longer seeks authority to 
export LNG using LNG containers. Venture Global Ltr. at 1.
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    Venture Global states that it has projects under development in 
multiple countries. It emphasizes its discussions with the Republic of 
Haiti (a non-FTA country) for the potential delivery of approximately 
200,000 to 350,000 metric tons per annum over the project term to serve 
power generation and related energy needs in the Republic of Haiti. 
According to Venture Global, if it receives the requested non-FTA 
export authorization, it intends to dedicate this portion of the total 
authorized volume of LNG to deliveries from the Project to the Republic 
of Haiti (one of the poorest countries in the world)--a proposal that 
Venture Globe states is a unique and significant benefit in the public 
interest.
    Venture Global states that it seeks authorization to export LNG 
produced from the United States natural gas supply and transmission 
network. Venture Global states that natural gas will be procured from 
the interstate and intrastate natural gas grid at points of liquidity 
upstream from the Project. Venture Global states that the Project site 
is located in close proximity to various interstate and intrastate 
pipeline systems, including those of Tennessee Gas Pipeline Company, 
ANR Pipeline Company, Bridgeline Holdings, L.P., Columbia Gulf 
Transmission Company, and Natural Gas Pipeline Company of America. 
Venture Global anticipates that the Project will be connected to one or 
more of these (or other) interstate or Louisiana intrastate pipeline 
systems through newly constructed, relatively short lateral 
pipeline(s). Venture Global further states that access to the pipeline 
grid will enable it to purchase natural gas from multiple sources of 
conventional and non-conventional U.S. production. Venture Global 
states that such supplies could be produced across the Gulf Coast 
region, both onshore and offshore, including traditional production 
regions and supplies produced from onshore shale formations, including 
the Barnett, Haynesville, and Bossier shale gas formations. Venture 
Global states that this supply may be sourced in requisite volumes in 
the spot market or pursued under long-term arrangements. Venture Global 
commits to filing all executed long-term purchase agreements with DOE/
FE under seal, as set forth in recent DOE/FE orders.\12\
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    \12\ DOE/FE has previously determined that this commitment meets 
the requirements of 10 CFR 590.202(b), which requires applicants to 
supply transaction-specific information ``to the extent 
practicable.'' See, e.g., Sabine Pass Liquefaction, LLC, DOE/FE 
Order No. 2833, Order Granting Long-Term Authorization to Export 
Liquefied Natural Gas from Sabine Pass LNG Terminal to Free Trade 
Nations, at 5-6 (Sept. 7, 2010).
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Public Interest Considerations

    Venture Global states that the proposed export of LNG to non-FTA 
countries is consistent with the public interest under section 3(a) of 
the NGA, 15 U.S.C. 717b(a). In support of this position, Venture Global 
discusses: (i) The domestic need for the LNG proposed to be exported; 
(ii) domestic

[[Page 30111]]

energy security and international impacts, including its plan to devote 
a portion of the exports from its Project to the Republic of Haiti; and 
(iii) other public benefits associated with its proposed exports, 
including impacts on the price of U.S. natural gas, environmental 
benefits, benefits to national security and foreign relations, and 
economic benefits.
    Focusing on domestic need for the LNG, Venture Global states that 
domestic natural gas resources are abundant, environmentally friendly, 
and affordable. It asserts that domestic resources are sufficient to 
meet both the domestic consumption demand and any expected level of LNG 
exports--including those proposed by Venture Global--in the long-term. 
According to Venture Global, recent technological developments in the 
natural gas industry have led to significant increases in domestically-
produced natural gas, particularly with regard to non-conventional 
production from onshore shale formations. Citing data from the U.S. 
Energy Information Administration (EIA), Venture Global states that 
total dry natural gas production in the United States was approximately 
24.04 trillion cubic feet (Tcf) in 2011--the highest level in U.S. 
history to that point and an increase of approximately 27% compared to 
production of approximately 18.05 Tcf in 2005.\13\
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    \13\ See http://www.eia.gov/dnav/ng/hist/n9070us2a.htm.
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    Focusing on projections from EIA's Annual Energy Outlook 2013 Early 
Release (AEO 2013 Early Release),\14\ Venture Global states that U.S. 
production will continue to increase significantly in the coming years. 
According to Venture Global, the Reference Case in the AEO 2013 Early 
Release projects that domestic dry gas production will increase to 
33.14 Tcf by 2040,\15\ an increase of 44% compared to the 2011 
production levels. Citing this data, Venture Global contends that the 
United States will become a net exporter of LNG in 2016 and a net 
exporter of natural gas in 2020.\16\ Venture Global further contends 
that, while domestic gas consumption is expected to increase over time 
and reach 29.83 Tcf in 2040, U.S. supply will grow faster, leading to 
increasing levels of excess supply over time.
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    \14\ U.S. Energy Information Administration, Annual Energy 
Outlook 2013 with Projections to 2040 (April 2013), available at: 
http://www.eia.gov/forecasts/aeo/pdf/0383(2013).pdf.
    \15\ Id., EIA, 2013 AEO Early Release at Table A1.
    \16\ Id., EIA, 2013 AEO Early Release at 11.
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    Venture Global asserts that the increase in U.S. gas reserves in 
recent years has been as dramatic as the growth in production. 
According to Venture Global, EIA estimated proved dry natural gas 
reserves of approximately 304.6 Tcf as of year-end 2010--the largest 
level in U.S. history and an increase of roughly one-third compared to 
EIA's estimate of proved reserves of 204.4 Tcf as of 2005.\17\
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    \17\ See http://www.eia.gov/dnav/ng/hist/rngr11nus_1a.htm.
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    Venture Global next states that the Potential Gas Committee, in its 
biennial report on potential U.S. supplies, concluded that the United 
States possesses a technically recoverable natural gas resource 
potential of 2,384 Tcf, the highest resource evaluation in the 
Potential Gas Committee's 48-year history.\18\ Venture Global states 
that when the Potential Gas Committee's latest results are combined 
with EIA's latest available determination of proved dry-gas reserves 
(304.6 Tcf for 2010), the United States has a total available future 
supply of 2,688.5 Tcf, representing an increase of 486.1 Tcf over the 
Potential Gas Committee's evaluation in 2010.
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    \18\ See http://potentialgas.org/press-release.
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    Venture Global contends that, for purposes of comparison with 
current reserves, total U.S. gas consumption in 2011 was approximately 
25.5 Tcf, meaning that the total available supply exceeds 105 years of 
the 2011 consumption levels. Venture Global asserts that, even if EIA's 
forecast for total consumption in 2040 (29.83 Tcf) is used for 
comparison, the current supply is equivalent to more than 90 years of 
consumption.
    Venture Global further states that numerous reports have projected 
sufficient volumes of domestic natural gas to meet both domestic demand 
and LNG exports.\19\ Citing the 2012 study conducted by NERA Economic 
Consulting (NERA) as part of DOE's LNG Export Study,\20\ Venture Global 
states that LNG exports will provide a net economic benefit to the 
United States, regardless of the amount of LNG exported from the United 
States.
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    \19\ See, e.g., Deloitte Center for Energy Solutions and 
Deloitte Market Point LLC, Made in America--The Economic Impact of 
LNG Exports from the Unites States, available at: http://www.deloitte.com/view/en_US/us/Industries/oil-gas/9f70dd1cc9324310VgnVCM1000001a56f00aRCRD.htm.
    \20\ Macroeconomic Impacts of LNG Export from the Unites States, 
NERA Economic Consulting, available at: http://www.fossil.energy.gov/programs/gasregulation/reports/nera_lng_report.pdf.
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    Venture Global maintains that it seeks to export relatively small 
volumes of LNG, as compared to other long-term LNG export applications 
granted by or pending before DOE/FE. Further, Venture Global states 
that its proposed volume of LNG--equivalent to approximately 243.6 Bcf/
yr of natural gas--is de minimis in the national gas market, where 
growing supplies are far in excess of that domestic need. Venture 
Global states that, given the current and projected amounts of domestic 
supply and demand of natural gas described above, its proposed export 
authorization will not have a negative impact on domestic needs for 
natural gas and therefore is not inconsistent with the public interest.
    Venture Global also contends that its proposed export volumes to 
non-FTA countries are sufficiently small that they will have a minimal 
effect, if any, on domestic energy supply. Further, according to 
Venture Global, the NERA study and other studies have demonstrated that 
the proposed export of LNG will not have a substantial impact on the 
domestic price of natural gas. Additional details can be found in 
Venture Global's Application, which is posted on the DOE/FE Web site 
at: http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/13_69_lng.pdf

Environmental Impact

    According to Venture Global, a grant of the Application would 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. Venture Global states that it will be 
seeking all necessary federal, state, and local permits to construct 
the necessary export facilities for the Project. Once plans for the 
Project are developed further, it will request permission to commence 
the Federal Energy Regulatory Commission's (FERC) mandatory pre-filing 
process under NEPA and will file an application for the necessary FERC 
authorization for the construction and operation of its facilities. 
Venture Global states that, consistent with prior orders by DOE/FE, the 
requested authorization should be conditioned on its receipt of all 
necessary FERC authorizations of the facilities needed for the export 
of LNG.

DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a), and DOE will consider any issues required by 
law or policy. To the extent determined to be relevant, these issues 
will include the domestic need for the natural gas proposed to be 
exported, the adequacy of domestic natural gas supply, U.S. energy 
security, and the cumulative impact of the requested authorization and 
any other

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LNG export application(s) previously approved on domestic natural gas 
supply and demand fundamentals. DOE may also consider other factors 
bearing on the public interest, including the impact of the proposed 
exports on the U.S. economy (including GDP, consumers, and industry), 
job creation, the U.S. balance of trade, and international 
considerations; and whether the authorization 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 address these issues in 
their comments and/or protests, as well as other issues deemed relevant 
to the Application.
    NEPA requires DOE to give appropriate consideration to the 
environmental effects of its 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 Applicant, 
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. 13-69-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 
Supply at the address listed in ADDRESSES. All filings must include a 
reference to FE Docket No. 13-69-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 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 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 
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 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 May 20, 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. 2014-12210 Filed 5-23-14; 8:45 am]
BILLING CODE 6450-01-P