[Federal Register Volume 80, Number 95 (Monday, May 18, 2015)]
[Notices]
[Pages 28256-28258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11926]


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DEPARTMENT OF ENERGY


Record of Decision and Floodplain Statement of Findings for the 
Cheniere Marketing, LLC and Corpus Christi Liquefaction, LLC 
Application To Export Liquefied Natural Gas to Non-Free Trade Agreement 
Countries

AGENCY: Office of Fossil Energy, DOE.

ACTION: Record of Decision.

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SUMMARY: The U.S. Department of Energy (``DOE'') announces its decision 
in FE Docket No. 12-97-LNG to issue DOE/FE Order No. 3638, granting 
long-term, multi-contract authorization for Cheniere Marketing, LLC and 
Corpus Christi Liquefaction, LLC (collectively ``CMI'') to engage in 
export of domestically produced liquefied natural gas (``LNG'') in an 
amount up to 782 million million Btu (million MMBtu) per year, which is 
equivalent to approximately 767 billion cubic feet (``Bcf'') of natural 
gas per year, for a 20-year period commencing the earlier of the date 
of first export or seven-years from the date of issuance of the 
authorization requested. CMI is seeking authorization to export LNG 
from the proposed Corpus Christi Liquefaction Project (``Liquefaction 
Project'') near Corpus Christi, Texas, to any nation with which the 
United States has not entered into a free trade agreement (``FTA'') 
that requires national treatment for trade in natural gas (non-FTA 
countries). Order No. 3638 is issued under section 3 of the Natural Gas 
Act (``NGA'') and 10 CFR part 590 of the DOE regulations. 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 the proposed 
Liquefaction Project and associated pipeline that, if constructed, will 
support the export authorization sought from DOE's Office of Fossil 
Energy (``DOE/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. 3638 is available on 
DOE/FE's Web site at http://energy.gov/fe/downloads/listing-doefe-authorizations-issued-2015. For additional information about the docket 
in these proceedings, contact Larine Moore, U.S. Department of Energy, 
Office of Natural Gas Regulatory Activities, Office of Fossil Energy, 
Room 3E-042, 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, U.S. 
Department of Energy, Office of Oil & Gas Global Security & Supply, 
Office of Oil and Natural Gas, Office of Fossil Energy, Room 3E-042, 
1000 Independence Avenue SW., Washington, DC 20585, (202) 586-5600; or 
Mr. Edward LeDuc, U.S. Department of Energy, Office of the Assistant 
General Counsel for Environment, 1000 Independence Avenue SW., 
Washington, DC 20585, (202) 586-4007.

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

    Cheniere Marketing, LLC, a Delaware limited liability company with 
its principal place of business in Houston, Texas, is affiliated with 
Corpus Christi Liquefaction, LLC (Cheniere Marketing, LLC's co-
Applicant in this proceeding) and Cheniere Corpus Christi Pipeline, 
L.P. (``CCP''), the developers of the Corpus Christi LNG Project 
(``Corpus Christi LNG Project'' or ``Project'' collectively refers to 
the Liquefaction Project and the Cheniere Pipeline). Cheniere 
Marketing, LLC is an indirect subsidiary of Cheniere Energy, Inc., a 
Delaware corporation with its primary place of business in Houston, 
Texas. Cheniere Energy, Inc. is a developer of LNG terminals and 
natural gas pipelines on the Gulf Coast, including the Corpus Christi 
LNG Project.
    Cheniere Marketing, LLC filed an application (``Application'') with 
DOE/FE on August 31, 2012, seeking long-term, multi-contract 
authorization to export to non-FTA countries up to 782 million MMBtu 
per year of LNG, equivalent to approximately 767 Bcf per year of 
natural gas, for a period of 22 years beginning on the earlier of the 
date of first export or eight years from the date the authorization is 
granted by DOE/FE. On October 10, 2012, Cheniere Marketing, LLC 
clarified that it is requesting authorization to export LNG both on its 
own behalf and as agent for other parties who hold title to the LNG

[[Page 28257]]

at the point of export. On August 15, 2014, Cheniere Marketing, LLC 
amended its Application to include Corpus Christi Liquefaction, LLC as 
an additional applicant.
    The Application was filed in conjunction with the Liquefaction 
Project being developed by Corpus Christi Liquefaction, LLC and 
Cheniere Corpus Christi Pipeline, L.P. at the site of the previously 
authorized import terminal and associated pipeline in San Patricia and 
Nueces Counties Texas.\1\ Concurrent with the Application, Corpus 
Christi Liquefaction, LLC filed an application with FERC for 
authorization pursuant to Section 3(a) of the NGA \2\ to site, 
construct and operate the Liquefaction Project. In addition, Cheniere 
Corpus Christi Pipeline, L.P. filed an application with the FERC 
pursuant to Section 7(c) of the NGA to construct, own, and operate the 
Cheniere Pipeline (``Pipeline'') to connect the Liquefaction Project to 
interstate and intrastate natural gas supplies and markets.
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    \1\ The CCL Project is being developed at the same general 
locations proposed for the previously authorized Corpus Christi LNG 
L.P. import terminal and associated pipeline. See Corpus Christi LNG 
L.P. and Cheniere Corpus Christi Pipeline Company, Order Granting 
Authority Under Section 3 of the Natural Gas Act and Issuing 
Certificates, 111 FERC ] 61,081 (2005). Since the facilities were 
never constructed, the Commission vacated Corpus Christi LNG, L.P.'s 
and Corpus Christi Pipeline Company's authorizations to construct 
the proposed LNG facility and associated pipeline. Corpus Christi 
LNG, L.P., 139 FERC ] 61,195 (2012).
    \2\ The authority to regulate the imports and exports of natural 
gas, including liquefied natural gas, under section 3 of the NGA (15 
U.S.C. 717b) has been delegated to the Assistant Secretary for FE in 
Redelegation Order No. 00-006.02 issued on November 17, 2014.
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    On August 31, 2012, in Docket No. 12-99-LNG, Cheniere Marketing, 
LLC 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 782 million MMBtu per year, to any nation with which the United 
States has or in the future will have an FTA that requires national 
treatment for trade in natural gas; 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. On October 16, 2012, DOE/FE Order 
No. 3164 was issued in FE Docket No 12-99-LNG granting long-term export 
authorization to FTA countries from the Project.\3\
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    \3\ Cheniere Marketing, LLC, Order Granting Long-Term Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessel 
from the Proposed Corpus Christi Liquefaction Project to Free Trade 
Agreement Nations, DOE/FE Order No. 3164, October 16, 2012 (FE 
Docket No 12-99-LNG).
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Project Description

    The Liquefaction Project will be located on a 991-acre site located 
along the northern shore of the La Quinta Channel north and east of the 
City of Corpus Christi, Texas and will include three ConocoPhillips 
Optimized Cascade\SM\ LNG trains, each capable of liquefying 
approximately 700 million standard cubic feet (MMcf) per day of natural 
gas. Natural gas will be liquefied into LNG and stored in three 160,000 
cubic meters LNG storage tanks, each equipped with five in-tank well 
columns and safety and monitoring systems. The Liquefaction Project 
will also include two trains of ambient air vaporizers, each with an 
average vaporization capacity of approximately 200 MMcf per day of 
natural gas, and marine terminal facilities with two LNG carrier 
berths. The Pipeline will include an approximately 23-mile-long, 48-
inch-diameter pipeline and two compressor stations to be located wholly 
within San Patricio County, Texas. The Pipeline will function to 
transport domestic natural gas to the Liquefaction Project for 
liquefaction and export, as well as to transport regasified imported 
LNG from the LNG terminal to interconnections with the existing 
pipeline systems.

The EIS Process

    In accordance with NEPA, FERC issued a draft EIS for the proposed 
Corpus Christi LNG Project on June 13, 2014. The notice of availability 
(``NOA'') for the draft EIS was published in the Federal Register on 
June 20, 2014 (79 FR 35344). The NOA included notice of a public 
comment meeting on July 15, 2014, in Portland, Texas. The NOA also 
provided summary information regarding the draft EIS. Copies of the 
draft EIS were also sent to agencies, elected officials, media 
organizations, Native American Tribes, private landowners, and other 
interested parties.
    Issues raised by commenters included concerns regarding: Air 
pollution (including greenhouse gas emissions and mitigation and 
compliance with the National Ambient Air Quality Standards), 
construction dust and noise vibrations, land use changes, impacts of 
water discharges on aquatic species (including impacts to an essential 
fish habitat (``EFH'')), light pollution, visual impacts, public safety 
and lack of an emergency response plan, water use and CMI's source of 
water, impacts on property values, expanding the scope of the 
cumulative impact analysis and alternatives analysis, recreational 
impacts and workforce availability.\4\
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    \4\ See Final EIS at 1-12, Table 1.4-1 Issues Identified and 
Comments Received During the Scoping Process for the Corpus Christi 
LNG Project.
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    The final EIS was published on October 8, 2014, and recommended 
that the FERC approve the Corpus Christi LNG Project. It concluded that 
the Project will result in some adverse environmental impacts; however, 
those impacts would not be significant if the Project is constructed 
and operated in accordance with applicable laws and regulations.
    Accordingly FERC issued an Order \5\ granting authorization to the 
Project on December 30, 2014, subject to the 104 environmental 
conditions contained in Appendix A of that Order.
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    \5\ Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi 
Pipeline, L.P., Order Granting Authorization Under Section 3 of the 
Natural Gas Act, 149 FERC ] 61,283 (December 30, 2014).
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    In accordance with 40 CFR 1506.3, after an independent review of 
the FERC's final EIS, DOE adopted the EIS and the U.S. Environmental 
Protection Agency published a notice of that adoption in the Federal 
Register on April 24, 2015 (80 FR 22992).

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/FE 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 CMI proceeding.

Alternatives

    The EIS conducted an alternatives analysis for the Liquefaction 
Project that could achieve the Project objectives. The range of 
alternatives analyzed included the No-Action Alternative,

[[Page 28258]]

system alternatives, alternative Liquefaction Project sites, 
alternative Pipeline routes, and alternative compressor station sites. 
Alternatives were evaluated and compared to the Liquefaction Project to 
determine if these alternatives were environmentally preferable.
    While the No-Action Alternative would avoid the potential adverse 
and beneficial environmental impacts identified in the EIS, adoption of 
this alternative would preclude meeting the Project objectives. Other 
LNG export/import projects could also be developed elsewhere in the 
Gulf Coast region or in other areas of the United States, but would 
likely result in similar or potentially greater environmental impacts 
than those of the proposed Project. The No-Action Alternative could 
also require potential end users to make other arrangements to obtain 
natural gas service, or continue the use of alternative fossil fuel 
energy sources (such as coal or fuel oil) to compensate for the reduced 
availability of natural gas that would otherwise be supplied by the 
Corpus Christi LNG Project.
    The EIS evaluated 12 system alternatives for the Project, including 
6 operating LNG import terminals in the Gulf of Mexico area, and 6 
proposed or planned export projects along the Gulf Coast. All of the 
systems were eliminated from further consideration for reasons that 
include the need for substantial construction beyond that currently 
proposed, production volume limitations, in-service dates scheduled 
significantly beyond the Project schedule, and potential environmental 
impacts that were considered comparable to or greater than those of the 
Project.
    The EIS also evaluated three alternative Liquefaction Project 
sites, two in proximity to the proposed site and one near Brownsville, 
Texas. Construction of the terminal at each of the alternative sites 
would have comparable or greater environmental impacts when compared to 
the proposed terminal site; therefore, none of the three sites 
evaluated were determined to be environmentally preferable.
    Approximately 86 percent of the Pipeline would be co-located, 
overlap, or parallel existing rights-of-way, so many types of 
environmental impacts have already been reduced or avoided. While two 
route alternatives were evaluated, the EIS did not identify any site-
specific environmental concerns along the proposed route that would 
make the alternative pipeline routes preferable.
    The EIS evaluated a total of five alternative sites for the 
proposed compressor stations but determined that none of these sites 
were environmentally preferable to the proposed sites.

Environmentally Preferred Alternative

    When compared against the other action alternatives assessed in the 
EIS, as discussed above, the Corpus Christi LNG 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/FE has decided to issue Order No. 3638 to grant the long-term, 
multi-contract authorization for CMI to engage in exports of 
domestically produced liquefied natural gas in an amount up to 767 Bcf 
per year for a 20-year period, commencing the earlier of the date of 
first export or seven-years from the date of issuance of the 
authorization requested. The authorization is to export LNG from the 
proposed Corpus Christi Liquefaction Project to any nation with which 
the United States does not now or in the future have an FTA requiring 
the 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.
    Concurrently with this Record of Decision, DOE/FE is issuing Order 
No. 3638 in which it finds that the granting 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 Order No. 3638, 
including the environmental conditions adopted in the FERC Order at 
Appendix A. Additionally, the authorization is conditioned on CMI's 
compliance with any other preventative and mitigative measures imposed 
by other Federal or state agencies.

Basis of Decision

    DOE/FE's decision is based upon the analysis of potential 
environmental impacts presented in the EIS, and DOE/FE's determination 
in Order No. 3638 that the opponents of the Application have failed to 
overcome the statutory presumption that the proposed export 
authorization is not inconsistent with the public interest. Although 
not required by NEPA, DOE/FE 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. 3638 authorizing 
CMI to export LNG to non-FTA countries, DOE/FE is imposing requirements 
that will avoid or minimize the environmental impacts of the project. 
These conditions include the environmental conditions adopted in the 
FERC Order at Appendix A. Mitigation measures beyond those included in 
DOE/FE Order No. 3638 that are enforceable by other Federal and state 
agencies are additional conditions of Order No. 3638. With these 
conditions, DOE/FE has determined that all practicable means to avoid 
or minimize environmental harm from the 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.\6\ No alternative Liquefaction 
Project sites were evaluated outside of a floodplain because, as 
discussed in section 4.1.1.5 of the final EIS, the facilities would be 
placed above predicted storm surge elevations, and the site is 
necessarily tied to marine/port locations. Similarly, no Pipeline route 
alternatives outside of floodplains were evaluated because, as 
discussed in section 4.1.2.4 of the Final EIS, Cheniere Corpus Christi 
Pipeline, L.P. has proposed to implement acceptable mitigation measures 
at waterbody crossings and areas subject to flooding to compensate for 
negative buoyancy. 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.
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    \6\ See Final EIS at Section 3.0. Table 3.1-1 and Section 
3.2.3.3 were revised to include information regarding the proximity 
of alternative Terminal sites with respect to floodplains.

    Issued in Washington, DC, on May 12, 2015.
Christopher A. Smith,
Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2015-11926 Filed 5-15-15; 8:45 am]
 BILLING CODE 6450-01-P