[Federal Register Volume 81, Number 30 (Tuesday, February 16, 2016)]
[Pages 7776-7777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03093]



[FE Docket No. 15-168-LNG]

Flint Hills Resources, LP; Application for Long-Term, Multi-
Contract Authorization To Export Liquefied Natural Gas to Non-Free 
Trade Agreement Nations

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of application.


SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy 
(DOE) gives notice of receipt of an application (Application), filed on 
November 5, 2015, by Flint Hills Resources, LP (Flint Hills), 
requesting long-term, multi-contract authorization to export 
domestically produced liquefied natural gas (LNG) primarily by use of 
approved ISO IMO7-TVAC-ASME LNG (ISO) containers transported on ocean-
going carriers to any country with which the United States does not 
have a free trade agreement (FTA) requiring national treatment for 
trade in natural gas, and with which trade is not prohibited by U.S. 
law or policy (non-FTA countries).\1\ Flint Hills seeks authorization 
to export the LNG in a volume equivalent to approximately 3.62 billion 
cubic feet of natural gas per year (Bcf/yr) (0.01 Bcf per day), which 
it states is approximately 120,000 gallons of LNG per day. Flint Hills 
seeks to purchase the LNG for export from a LNG liquefaction facility 
owned by Stabilis LNG Eagle Ford, LLC (Stabilis Facility), located in 
George West, Texas.\2\ According to Flint Hills, the Stabilis Facility 
has the capacity to produce 120,000 gallons of LNG per day and to store 
approximately 270,000 gallons of LNG. Flint Hills states that the 
Stabilis Facility is currently operational and can accommodate both ISO 
container loadings and tanker truck loadings.\3\ Flint Hill therefore 
asserts that no additional plant infrastructure will be required as a 
result of the proposed exports. Flint Hills requests the authorization 
for a 20-year term to commence on the earlier of the date of first 
commercial export or a date three months from the issuance of a final 
order granting the requested authorization. Flint Hills seeks to export 
this LNG on its own behalf and as agent for other entities who hold 
title to the LNG at the time of export. The Application was filed under 
section 3 of the Natural Gas Act (NGA). Additional details can be found 
in Flint Hills's Application, posted on the DOE/FE Web site at: http://energy.gov/sites/prod/files/2015/11/f27/15_168_lng%20fta_nfta.pdf. 
Protests, motions to intervene, notices of intervention, and written 
comments are invited.

    \1\ In the Application, Flint Hills also requests authorization 
to export LNG to any nation that currently has, or in the future may 
enter into, a FTA requiring national treatment for trade in natural 
gas, and with which trade is not prohibited by U.S. law or policy 
(FTA countries). DOE/FE will review that request for a FTA export 
authorization separately pursuant to NGA section 3(c), 15 U.S.C. 
    \2\ Flint Hills states that Stabilis LNG is owned in part (49%) 
by Flint Hills's affiliate, FHR LNG, LLC. App. at 3 n.4.
    \3\ Flint Hills states that it generally intends to use ISO 
containers to export LNG. Under this scenario, the ISO containers 
will be trucked to a port or dock located along the Gulf Coast, 
where the containers will be loaded onto a barge or ship for 
delivery to non-FTA countries. If Flint Hills uses tanker trucks, it 
will truck LNG from the Stabilis Facility directly to a bulk 
transport barge, ship, or floating storage container for 
distribution to customers in both FTA and non-FTA countries. App. at 
4-5. Appendix A of the Application contains a list of ports from 
which Flint Hills may export 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, April 18, 

ADDRESSES: Electronic Filing by email: [email protected].

Regular Mail

U.S. Department of Energy (FE-34), Office of Regulation and 
International Engagement, 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 Regulation and 
International Engagement, Office of Fossil Energy, Forrestal Building, 
Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585.

Larine Moore or Benjamin Nussdorf, U.S. Department of Energy (FE-34), 
Office of Regulation and International Engagement, Office of Fossil 
Energy, Forrestal Building, Room 3E-042, 1000 Independence Avenue SW., 
Washington, DC 20585, (202) 586-9478; (202) 586-7893.

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) 


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 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. As 
part of this analysis, DOE will consider the following two studies 
examining the cumulative impacts of LNG:
     Effect of Increased Levels of Liquefied Natural Gas on 
U.S. Energy Markets, conducted by the U.S. Energy Information 
Administration upon DOE's request (2014 EIA LNG Export Study); \4\ and

    \4\ The 2014 EIA LNG Export Study, published on Oct. 29, 2014, 
is available at: https://www.eia.gov/analysis/requests/fe/.

     The Macroeconomic Impact of Increasing U.S. LNG Exports, 
conducted jointly by the Center for Energy Studies at Rice University's 
Baker Institute for Public Policy and Oxford Economics, on

[[Page 7777]]

behalf of DOE (2015 LNG Export Study).\5\

    \5\ The 2015 LNG Export Study, dated Oct. 29, 2015, is available 
at: http://energy.gov/sites/prod/files/2015/12/f27/20151113_macro_impact_of_lng_exports_0.pdf.

    Additionally, DOE will consider the following environmental 
document: Addendum to Environmental Review Documents Concerning Exports 
of Natural Gas From the United States, 79 FR 48132 (Aug. 15, 2014).\6\ 
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.

    \6\ The Addendum and related documents are available at: http://energy.gov/fe/draft-addendum-environmental-review-documents-concerning-exports-natural-gas-united-states.

    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 

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. Due to the complexity of the issues raised by the 
Applicant, interested parties will be provided 60 days from the date of 
publication of this Notice in which to submit their comments, protests, 
motions to intervene, or notices of intervention.
    Any person wishing to become a party to the proceeding must file a 
motion to intervene or notice of intervention. 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. 15-168-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office of Regulation and International Engagement at 
the address listed in ADDRESSES; or (3) hand delivering an original and 
three paper copies of the filing to the Office of Regulation and 
International Engagement at the address listed in ADDRESSES. All 
filings must include a reference to FE Docket No. 15-168-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. 
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 Regulation and International Engagement 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 February 9, 2016.
John A. Anderson,
Director, Office of Regulation and International Engagement, Office of 
Oil and Natural Gas.
[FR Doc. 2016-03093 Filed 2-12-16; 8:45 am]