[Federal Register Volume 88, Number 226 (Monday, November 27, 2023)]
[Notices]
[Pages 82876-82878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26060]


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DEPARTMENT OF ENERGY

[Docket No. 22-167-LNG]


Notice of Availability for the Draft Environmental Assessment for 
the Mexico Pacific Limited Facility

AGENCY: Office of Fossil Energy and Carbon Management, Department of 
Energy.

ACTION: Notice of availability.

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SUMMARY: The U.S. Department of Energy (DOE) has prepared a Draft 
Environmental Assessment (EA) to determine how to review the potential 
environmental impacts associated with authorizing Mexico Pacific 
Limited LLC (MPL) to export natural gas to Mexico and, after 
liquefaction in Mexico, to other countries from the proposed MPL 
Facility. DOE is also announcing a public comment period to receive 
comments on the Draft EA. DOE prepared the Draft EA in accordance with 
the National Environmental Policy Act of 1969 (NEPA), to inform its 
decision on authorization under the Natural Gas Act (NGA).

DATES: The 30-day public comment period extends from the date of 
publication of this Notice in the Federal Register through December 27, 
2023.

ADDRESSES: Questions concerning the Draft EA or requests for a paper 
copy should be directed to: Brian Lavoie via email to 
[email protected] or phone at (202) 586-2459.
    Electronic Filing by email (Strongly encouraged): 
[email protected].
    Postal Mail, Hand Delivery, or Private Delivery Services (e.g., 
FedEx, UPS, etc.): U.S. Department of Energy (FE-34), Office of 
Regulation, Analysis, and Engagement, Office of Fossil Energy and 
Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence 
Avenue SW, Washington, DC 20585.
    Due to potential delays in DOE's receipt and processing of mail 
sent through the U.S. Postal Service, we encourage respondents to 
submit filings electronically to ensure timely receipt.
    An electronic copy of the Draft EA may be found online on the 
following website: https://www.energy.gov/sites/default/files/2023-11/MPL_Draft%20Environmental%20Assessment_Final_11.21.23.pdf.

FOR FURTHER INFORMATION CONTACT: Brian Lavoie, U.S. Department of 
Energy (FE-34) Office of Regulation, Analysis, and Engagement, Office 
of Resource Sustainability, Office of Fossil Energy and Carbon 
Management, Forrestal Building, Room 3E-042, 1000 Independence Avenue 
SW, Washington, DC 20585, (202) 586-2459, [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On December 28, 2022, MPL filed an application (Application) \1\ 
with DOE's

[[Page 82877]]

Office of Fossil Energy and Carbon Management (FECM) under section 3 of 
the Natural Gas Act (NGA).\2\ MPL supplemented its Application on 
January 24, 2023.\3\ MPL stated that it was seeking additional export 
authority in connection with the continuing development of its proposed 
liquefied natural gas (LNG) production and offtake facility, referred 
to as the MPL Facility, to be located on the Gulf of California, in the 
State of Sonora, Mexico.\4\ Previously, in Docket No. 18-70-LNG, DOE 
authorized MPL to export U.S.-sourced LNG from the MPL Facility in a 
total volume equivalent to 621 billion cubic feet (Bcf) per year (Bcf/
yr) of natural gas. MPL also stated that it has since advanced and 
refined the Facility's design to ``enhance the efficiency and optimize 
the operational capabilities of the MPL Facility.'' \5\
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    \1\ Mexico Pacific Limited LLC, Application for Additional Long-
Term, Multi-Contract Authorization to Export Natural Gas to Mexico 
and to Re-Export Liquefied Natural Gas to Free Trade Agreement and 
Non-Free Trade Agreement Nations, Docket No. 22-167-LNG (Dec. 28, 
2022) [hereinafter MPL App.].
    \2\ 15 U.S.C. 717b. The authority to regulate the imports and 
exports of natural gas, including liquefied natural gas, under 
section 3 of the NGA has been delegated to the Assistant Secretary 
for FECM in Redelegation Order No. S4-DEL-FE1-2023, issued on April 
10, 2023.
    \3\ Mexico Pacific Limited LLC, Supplement to Application, 
Docket No. 22-167-LNG (Jan. 24, 2023) [hereinafter MPL App. Supp.].
    \4\ See MPL App. at 4, 6.
    \5\ Id. at 4.
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    MPL requests long-term, multi-contract authorization to export an 
additional quantity of U.S.-sourced natural gas to Mexico, and after 
liquefaction in Mexico, to other countries, in a total volume 
equivalent to 425.57 billion cubic feet (Bcf) per year (Bcf/yr) of 
natural gas (1.17 Bcf per day (Bcf/d)),\6\ as follows:
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    \6\ Id. at 1.
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    (i) To use approximately 134.35 Bcf/yr (0.37 Bcf/d) in Mexico as 
``fuel for pipeline transportation or liquefaction in Mexico;'' \7\
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    \7\ Id. at 3.
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    (ii) To use approximately 291.22 Bcf/yr of natural gas (0.80 Bcf/d) 
of natural gas in the proposed MPL Facility, where the U.S.-sourced 
natural gas would be liquefied, then re-exported \8\ as LNG by vessel 
to:
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    \8\ For purposes of this proceeding, ``re-export'' means to ship 
or transmit U.S.-sourced natural gas in its various forms (gas, 
compressed, or liquefied) subject to DOE's jurisdiction under the 
NGA, 15 U.S.C. 717b, from one foreign country (i.e., a country other 
than the United States) to another foreign country.
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    (a) Any country with which the United States has entered into a 
free trade agreement (FTA) requiring national treatment for trade in 
natural gas (FTA countries), under NGA section 3(c); \9\ and
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    \9\ 15 U.S.C. 717b(c). 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.
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    (b) Any other country with which trade is not prohibited by U.S. 
law or policy (non-FTA countries), under NGA section 3(a).\10\
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    \10\ 15 U.S.C. 717b(a); see MPL App. at 3, 4, 10.
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    MPL requests these FTA and non-FTA authorizations on a non-additive 
basis for a term to commence on the earlier of the date of first export 
or seven years from the date of the final order granting export 
authorization, and extending through December 31, 2050.\11\ MPL states 
that the total volume of 425.57 Bcf/yr that it is seeking authorization 
to export, when added to the 621 Bcf/yr that MPL is currently 
authorized to export in Docket No. 18-70-LNG, would equal a total of 
1,046.57 Bcf/yr to be exported from the MPL Facility.\12\
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    \11\ MPL App. at 10. Additionally, MPL requests these 
authorizations on its own behalf and as agent for other entities 
that hold title to the U.S.-sourced natural gas at the time it is 
exported to Mexico and/or at the time it is re-exported as LNG from 
Mexico. Id. at 11.
    \12\ Id. at 3, 8-9.
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    On April 28, 2023, in Order No. 4995, DOE granted the FTA portion 
of the Application, as required by NGA section 3(c).\13\ MPL is thus 
authorized to export natural gas to Mexico in the total requested 
additional volume of 425.57 Bcf/yr of natural gas--which includes 
export by pipeline for use as a fuel for pipeline transportation or 
liquefaction (134.35 Bcf/yr) and re-export after liquefaction in Mexico 
to FTA countries (291.22 Bcf/yr).\14\ The requested non-FTA volume, if 
approved, would not be additive to this FTA volume.
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    \13\ Mexico Pac. Ltd. LLC, DOE/FECM Order No. 4995, Docket No. 
22-167-LNG, Order Granting Long-Term Authorization to Export Natural 
Gas to Mexico and to Other Free Trade Agreement Nations (Apr. 28, 
2023).
    \14\ See id. at 5, 13.
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    According to MPL, the U.S-sourced natural gas would be exported to 
Mexico at the United States-Mexico border via existing and, 
potentially, future cross-border natural gas transmission 
pipelines.\15\ MPL adds that it would not source natural gas for the 
MPL Facility from Mexico.\16\ MPL plans initially to receive the 
natural gas produced in the United States and exported to Mexico 
through existing cross-border natural gas transmission pipelines, 
including an interstate pipeline owned by Sierrita Gas Pipeline LLC, 
and intrastate natural gas pipelines owned by Comanche Trail Pipeline, 
LLC, Roadrunner Gas Transmission, LLC and Trans Pecos Pipeline, 
LLC.\17\ MPL asserts that, if the proposed border crossing pipeline 
owned by Saguaro Connector Pipeline, L.L.C. obtains authorization and 
the related Presidential Permit from the Federal Energy Regulatory 
Commission (FERC), MPL would expect to add that pipeline to the several 
existing pipeline routes over which MPL and its customers may transport 
natural gas from the United States to Mexico for delivery to the MPL 
Facility.\18\
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    \15\ See MPL App. at 9; see also MPL App. Supp. at 1-2.
    \16\ See MPL App. at 9.
    \17\ See id.
    \18\ MPL App. Supp. at 2.
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    For the non-FTA portion of MPL's request,\19\ DOE published a 
notice of the Application in the Federal Register (Notice of 
Application) on February 1, 2023.\20\ The Notice of Application called 
on interested persons to submit protests, motions to intervene, notices 
of intervention, and comments by April 3, 2023.\21\ On March 29, 2023, 
the Institute for Energy Economics and Financial Analysis filed 
comments opposing MPL's Application.\22\ On April 3, 2023, Public 
Citizen, Inc. and Sierra Club each filed a motion to intervene and 
protest, with Sierra Club's filing including additional exhibits.\23\
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    \19\ DOE finds that the requirement for public notice of 
applications, as well as other hearing-type procedures in 10 CFR 
part 590, apply only to applications seeking to export natural gas, 
including LNG, to non-FTA countries.
    \20\ See Mexico Pacific Limited LLC; Application for Additional 
Long-Term, Multi-Contract Authorization to Export U.S.-Sourced 
Natural Gas to Mexico and to Re-Export Liquefied Natural Gas from 
Mexico to Non-Free Trade Agreement Countries; Notice of Application, 
88 FR 6716 (Feb. 1, 2023) [hereinafter Notice of App.].
    \21\ Id.
    \22\ Institute for Energy Economics and Financial Analysis, 
Comments Regarding the Application to Expand Export and Re-Export 
Operations by Mexico Pacific Limited LLC, Docket No. 22-167-LNG 
(Mar. 29, 2023).
    \23\ Public Citizen, Inc., Motion to Intervene and Protest, 
Docket No. 22-167-LNG (Apr. 3, 2023); Sierra Club, Motion to 
Intervene and Protest, Docket No. 22-167-LNG (Apr. 3, 2023). For 
additional procedural history, including but not limited to 
Supplemental Comments subsequently filed by Sierra Club and opposed 
by MPL, see Docket No. 22-167-LNG.
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    Before reaching a final decision on a non-FTA application under NGA 
section 3(a), DOE must also comply with NEPA.\24\ In evaluating 
applications for re-export authorization similar to MPL's Application, 
DOE has used recent guidance to inform its environmental analysis. On 
January 27, 2021, the President issued Executive Order (E.O.) No. 
14008, Tackling the Climate Crisis at Home and Abroad.\25\

[[Page 82878]]

Additionally, on April 20, 2022, the Council on Environmental Quality 
(CEQ) issued a final rule for implementing CEQ's NEPA regulations, 
including the definition of environmental ``effects.'' \26\ DOE has 
determined that, consistent with E.O. 14008 and its obligations under 
NEPA, it is appropriate to evaluate the potential environmental 
impacts--including the greenhouse gas emissions--of exporting (or re-
exporting) U.S.-sourced LNG from the proposed MPL Facility to non-FTA 
countries. Therefore, on October 23, 2023, DOE issued a ``Notice of 
Environmental Assessment'' announcing that it is undertaking an 
environmental assessment (EA) under NEPA to analyze MPL's requested 
exports of U.S.-sourced LNG to non-FTA countries.\27\
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    \24\ 42 U.S.C. 4321 et seq.
    \25\ E.O. 14008 sets forth policies to address climate change, 
specifically to ``organize and deploy the full capacity of [Federal] 
agencies to combat the climate crisis.'' Exec. Order No. 14008 of 
Jan. 27, 2021, Tackling the Climate Crisis at Home and Abroad, 86 FR 
7619 (Feb. 1, 2021), www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad. E.O. 14008 
further requires the ``Federal Government [to] drive assessment, 
disclosure, and mitigation of climate pollution and climate-related 
risks in every sector'' of the U.S. economy. Id.
    \26\ See Council on Envtl. Quality, National Environmental 
Policy Act Implementing Regulations Revisions; Final Rule, 87 FR 
23453 (Apr. 20, 2022).
    \27\ Mexico Pac. Ltd. LLC, Notice of Environmental Assessment, 
Docket No. 22-167-LNG (Oct. 23, 2023).
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    The Draft EA examined the potential environmental impacts 
associated with unconventional natural gas exploration and production 
activities in the lower-48 states; the utilization of the cross-border 
pipelines that interconnect the United States and Mexico and that MPL 
may utilize for its U.S. natural gas supply; descriptions of Mexico's 
environmental review process for the construction and operation of 
liquefaction terminals and related facilities; marine transport of LNG 
exported from the proposed MPL Facility; and the global nature of GHG 
emissions associated with re-exporting U.S.-sourced LNG from Mexico 
from a life cycle perspective.

NEPA Process and Public Involvement

    DOE prepared the Draft EA in accordance with the CEQ regulations at 
Title 40, Code of Federal Regulations, parts 1500-1508 (40 CFR 1500-
1508) and DOE's NEPA implementing procedures at 10 CFR part 1021. DOE 
published a Notice of Environmental Assessment to Docket No. 22-167-LNG 
on October 23, 2023, announcing its intent to prepare an EA. DOE is 
providing opportunities for public review and comments on this Draft EA 
(see DATES and ADDRESSES sections of this notice).

    Signed in Washington, DC, on November 21, 2023.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of 
Resource Sustainability.
[FR Doc. 2023-26060 Filed 11-24-23; 8:45 am]
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