[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Notices]
[Pages 55443-55445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22056]


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DEPARTMENT OF ENERGY


Record of Decision and Floodplain Statement of Findings for the 
Cameron LNG, LLC Export Application

AGENCY: Office of Fossil Energy, Department of Energy.

ACTION: Record of decision.

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SUMMARY: The U.S. Department of Energy (DOE) announces its decision in 
Cameron LNG, LLC, DOE/FE Docket No. 11-162-LNG, to issue DOE/FE Order 
No. 3391-A, its Final Opinion and Order Granting Long-Term Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessel From 
the Cameron LNG Terminal in Cameron Parish, Louisiana to Non-Free Trade 
Agreement Countries (Order No. 3391-A). Order No. 3391-A is issued 
under section 3 of the Natural Gas Act. DOE participated as a 
cooperating agency with the Federal Energy Regulatory Commission (FERC) 
in preparing an environmental impact statement (EIS) analyzing the 
potential environmental impacts of a proposed liquefaction project 
(Liquefaction Project) and a proposed pipeline project (Pipeline 
Project) and alternatives that, if constructed, will be used to support 
the export authorization sought from DOE's Office of Fossil Energy 
(FE).

ADDRESSES: The EIS and this Record of Decision (ROD) are available on 
DOE's National Environmental Policy Act (NEPA) Web site at http://energy.gov/nepa/nepa-documents. Order No. 3391-A is available on DOE/
FE's Web site at http://energy.gov/fe/downloads/listing-doefe-authorizations-issued-2014. Copies of these documents may be requested 
by writing John Anderson, U.S. Department of Energy (FE-34), Office of 
Natural Gas Regulatory Activities, Office of Fossil Energy, 1000 
Independence Avenue SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
the project, the EIS, or the ROD, contact Mr. John Anderson as 
indicated above under ADDRESSES or Mr. Edward LeDuc, U.S. Department of 
Energy (GC-51), Office of the Assistant General Counsel for 
Environment, 1000 Independence Avenue SW., Washington, DC 20585.

SUPPLEMENTARY INFORMATION: DOE prepared this ROD and Floodplain 
Statement of Findings pursuant to the National Environmental Policy Act 
of 1969 (42 United States Code [U.S.C.] 4321, et seq.), and in 
compliance with the Council on Environmental Quality (CEQ) implementing 
regulations for NEPA (40 Code of Federal Regulations [CFR] parts 1500 
through 1508), DOE's implementing procedures for NEPA (10 CFR part 
1021), and DOE's ``Compliance with Floodplain and Wetland Environmental 
Review Requirements'' (10 CFR part 1022).

Background

    Cameron is a limited liability company organized under the laws of 
Delaware, with its executive offices located in San Diego, California. 
Cameron owns the existing Cameron LNG Terminal and has an existing 
interconnection with Cameron Interstate Pipeline, LCC (Cameron 
Interstate). Cameron Interstate, an affiliate of Cameron, is an 
interstate pipeline regulated by FERC. Cameron Interstate's facilities 
consist primarily of a 36.2 mile pipeline connecting the Cameron 
Terminal with five other interstate pipelines. The Terminal initially 
was used for the sole purpose of receiving and storing foreign-sourced 
LNG, re-gasifying such LNG, and sending it out for delivery to domestic 
markets. In January 2011, FERC authorized Cameron to operate the 
Cameron Terminal for the additional purpose of exporting previously 
imported (i.e., foreign sourced) LNG on behalf of its customers.\1\
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    \1\ Cameron LNG, LLC, 134 FERC ] 61,049 (2011).
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Project Description

    Cameron proposes to site, construct, and operate the Liquefaction 
Project, including liquefaction and export facilities, on a 502 acre 
site that is partially within the existing Terminal fence line in 
Cameron Parish, Louisiana. The Liquefaction Project includes three 
liquefaction systems and a 160,000 cubic meter LNG storage tank, and 
would allow Cameron to liquefy domestic natural gas supplies for the 
export of approximately 12 million metric tons per year (mtpy) of LNG.
    Cameron Interstate proposes to site, construct, operate, and 
maintain the Pipeline Project, consisting of a new natural gas pipeline 
in Cameron, Calcasieu and Beauregard Parishes, Louisiana. The Pipeline 
Project includes the construction of 21 miles of 42-inch diameter 
pipeline and a compressor station, and would add bi-directional flow 
capability to Cameron Interstate's existing pipeline to enable the 
transport of natural gas to the Cameron Terminal for export. The 
pipeline right-of-way would be within or abutting existing rights-of-
way, and about 15.5 miles of the pipeline would be collocated with 
Cameron Interstate's existing pipeline right-of-way.

Cameron's Application

    Cameron filed its application with DOE in Docket No. 11-162-LNG on 
December 21, 2011, seeking authorization to export up to 12 mtpy of 
domestically produced LNG (the equivalent of 620 billion cubic feet 
(bcf) per year of natural gas) for a 20-year period to nations with 
which the United States has not entered into a free trade agreement 
providing for national treatment for trade in natural gas (non-FTA 
nations).\2\ On February 11, 2014, DOE/FE issued Order No. 3391 to 
Cameron, conditionally granting Cameron's application for long-term, 
multi-contract authorization to export domestically produced LNG by 
vessel to non-FTA nations. DOE/FE conditionally authorized Cameron to 
export LNG in a volume equivalent to 620 bcf per year of natural gas, 
or approximately 12 mtpy of LNG, for a term of 20 years. The 
Conditional Order addressed the record evidence and DOE/FE's findings 
on all non-environmental issues considered under NGA section 3(a), 
including economic impacts, international impacts, and security of gas 
supply. Because DOE/FE must also consider environmental issues, DOE/FE 
conditioned the authorization on satisfactory completion of the 
environmental review process under NEPA and DOE/FE's issuance of a 
finding of no significant impact or a record of decision.
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    \2\ Cameron previously sought authorization to export the same 
quantity of LNG to any country with which the United States has, or 
in the future may enter into, a FTA requiring national treatment for 
trade in natural gas (FTA countries). DOE/FE granted that FTA 
authorization by order dated January 17, 2012.

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[[Page 55444]]

EIS Process

    FERC was the lead federal agency and initiated the NEPA process by 
publishing a notice of intent (NOI) to prepare an EIS in the Federal 
Register (FR) on August 6, 2012 (77 FR 48145); DOE was a cooperating 
agency. FERC issued the draft EIS for the Liquefaction Project and 
Pipeline Project on January 10, 2014 (79 FR 3197), and the final EIS on 
April 30, 2014 (79 FR 26244). The final EIS recommended that FERC 
approve Cameron's proposed projects subject to 76 environmental 
conditions. Accordingly, on June 19, 2014, FERC issued an ``Order 
Granting Authorization Under Section 3 of the Natural Gas Act and 
Issuing Certificates'' (FERC Order), which authorized Cameron to site, 
construct, and operate the Liquefaction Project, and for Cameron 
Interstate to construct the associated Pipeline Project, subject to the 
76 environmental conditions contained in Appendix A of that order.\3\ 
In accordance with 40 CFR 1506.3, after an independent review of FERC's 
final EIS, DOE adopted the EIS on August 7, 2014 (DOE/EIS-0488), and 
the U.S. Environmental Protection Agency published a notice of that 
adoption in the Federal Register on August 15, 2014. (79 FR 48140)
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    \3\ Cameron LNG, LLC, 147 FERC ] 61,230 (2014).
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Addendum to Environmental Review Documents Concerning Exports of 
Natural Gas From the United States (Addendum)

    On June 4, 2014, DOE/FE published the Draft Addendum for public 
comment (79 FR 32258). Although not required by NEPA, DOE/FE prepared 
the Addendum in an effort to be responsive to the public and to provide 
the best information available on a subject that had been raised by 
commenters. The Addendum is a review of existing literature and was 
intended to provide information only on the resource areas potentially 
impacted by unconventional gas production.
    The 45-day comment period on the Draft Addendum closed on July 21, 
2014. DOE/FE received 40,745 comments in 18 separate submissions, and 
considered those comments in issuing the Addendum on August 15, 2014. 
DOE provided a summary of the comments received and responses to 
substantive comments in Appendix B of the Addendum. DOE/FE has 
incorporated the Draft Addendum, comments, and final Addendum into the 
record in its Cameron proceeding.

Alternatives

    The EIS assessed alternatives that could achieve the project 
objectives. The range of alternatives analyzed included the No-Action 
Alternative, alternative energy sources, system alternatives, 
alternative Terminal Expansion sites, alternative Terminal Expansion 
configurations and designs, alternative Pipeline Expansion above ground 
facility sites, and alternative compressor station designs. 
Alternatives were evaluated and compared to the proposed project to 
determine if the alternatives were environmentally preferable.
    The EIS evaluated system alternatives for the Terminal Expansion, 
including five operating LNG import terminals in the Gulf of Mexico 
area, and seven proposed or planned liquefaction and export projects 
along the Gulf Coast. All of the system alternatives were eliminated 
from further consideration for reasons that include comparatively 
greater construction, production volume limitations, in-service dates 
scheduled significantly beyond Cameron's commitments to its customers, 
and environmental impacts that were considered comparable to or greater 
than those of the proposed project.
    The EIS evaluated two alternative sites for the Terminal Expansion. 
Construction of the Terminal Expansion at each of the alternative sites 
would have comparatively greater impacts on open water, marshes, 
aquatic resources, wetlands and wildlife.
    For the Terminal Expansion, the EIS considered the use of on-site 
power generation as a design alternative to the proposed use of 
purchased power. During operation, emissions and noise levels of the 
turbine generators under this alternative would be greater than those 
of purchased power in the vicinity of the Terminal Expansion site. 
However, based on the available data, it was not possible to determine 
the overall difference in the levels of the key air emissions of the 
two design options.
    For the Pipeline Expansion, the EIS evaluated three existing 
pipeline systems as system alternatives. None of the systems were 
determined to be environmentally preferable, as each would require 
significant expansion of the existing facilities and would likely 
result in environmental impacts similar to or greater than those of the 
Pipeline Expansion. The EIS did not identify any site-specific 
environmental concerns that would necessitate consideration of 
alternative pipeline routes, because the proposed route largely 
overlaps or is parallel to existing rights-of-way.
    The EIS evaluated four alternative sites for the Holbrook 
Compressor Station and determined that these alternative sites were not 
environmentally preferable to the proposed site. The EIS also evaluated 
four design options for the compressor station. The use of purchased 
power would result in increased impacts due to installation of an 
additional 3.5-mile-long electrical distribution line, would not 
provide the flexibility and quality of service Cameron Interstate 
requires, would increase the cost of operation, and does not appear to 
offer an emissions advantage over the proposed on-site power 
generation. The use of larger turbine engines would decrease the 
flexibility and reliability of service because the turbines would not 
have variable speed control, and larger turbines would require more 
than 35 percent more fuel, resulting in a substantial increase in 
annual fuel expense. Best available control technology analysis 
indicated selective catalytic reduction and use of an oxidation 
catalyst were not feasible pollution control options due to economic, 
environmental, and energy impacts. As a result, the EIS determined that 
there was not a significant advantage to any of the design alternatives 
considered for the Holbrook Compressor Station.

Environmentally Preferred Alternative

    When compared against the other action alternatives assessed in the 
EIS, as discussed above, the Cameron project is the environmentally 
preferred alternative. While the No-Action Alternative would avoid the 
environmental impacts identified in the EIS, adoption of this 
alternative would not meet the project objectives.

Decision

    DOE has decided to issue Order No. 3391-A authorizing Cameron to 
export domestically produced LNG by vessel from the Cameron LNG 
Terminal in Cameron Parish, Louisiana, up to the equivalent of 620 bcf/
yr of natural gas for a term of 20 years to commence on the earlier of 
the date of first export or seven years from the date that the Order is 
issued (September 10, 2014).
    Concurrently with this Record of Decision, DOE is issuing Order No. 
3391-A in which it finds that a grant of the requested authorization 
has not been shown to be inconsistent with the public interest, and 
that the Application should be granted subject to compliance with the 
terms and conditions set forth in the Order, including the 76 
environmental conditions recommended in the EIS and adopted in

[[Page 55445]]

the FERC Order at Appendix A. Additionally, this authorization is 
conditioned on Cameron's compliance with any other preventative and 
mitigative measures imposed by other Federal or state agencies.

Basis of Decision

    DOE's decision is based upon the analysis of potential 
environmental impacts presented in the EIS, and DOE's determination in 
Order No. 3391-A that the opponents of Cameron's application have 
failed to overcome the statutory presumption that the proposed export 
authorization is consistent with the public interest. Although not 
required by NEPA, DOE also considered the Addendum, which summarizes 
available information on potential upstream impacts associated with 
unconventional natural gas activities, such as hydraulic fracturing.

Mitigation

    As a condition of its decision to issue Order No. 3391-A 
authorizing Cameron to export LNG, DOE is imposing requirements that 
will avoid or minimize the environmental impacts of the project. These 
conditions include the 76 environmental conditions recommended in the 
EIS and adopted in the FERC Order at Appendix A. Mitigation measures 
beyond those included in DOE's Order that are enforceable by other 
Federal and state agencies are additional conditions of Order No. 3391-
A. With these conditions, DOE has determined that all practicable means 
to avoid or minimize environmental harm from the Cameron project have 
been adopted.

Floodplain Statement of Findings

    DOE prepared this Floodplain Statement of Findings in accordance 
with DOE's regulations entitled ``Compliance with Floodplain and 
Wetland Environmental Review Requirements'' (10 CFR Part 1022). The 
required floodplain and wetland assessment was conducted during 
development and preparation of the EIS (see Table 3.6.1-1 and Section 
4.1.4.1 of the EIS). DOE determined that the placement of some project 
components within floodplains would be unavoidable. However, the 
current design for the project minimizes floodplain impacts to the 
extent practicable.

    Issued in Washington, DC, on September 10, 2014.
Christopher A. Smith,
Principal Deputy Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2014-22056 Filed 9-15-14; 8:45 am]
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