[Federal Register Volume 76, Number 7 (Tuesday, January 11, 2011)]
[Notices]
[Page 1659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-352]
[[Page 1659]]
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DEPARTMENT OF STATE
[Public Notice 7291]
Notice of Receipt of Application for a Presidential Permit To
Construct, Operate and Maintain Pipeline Facilities on the Border of
the United States
Notice is hereby given that the Department of State has received an
application to construct, operate and maintain pipeline facilities on
the border of the United States from Vantage Pipeline US LP
(``Applicant'' or ``Vantage''), a limited partnership duly organized
under the laws of the State of Delaware. According to the application,
Vantage's general partner is Vantage Pipeline US GP LLC, a Delaware
limited liability company, and its limited partner is Mistral Energy US
Inc., a subsidiary of Mistral Energy Inc., which is a private company
based in Calgary, Alberta, Canada with over 25 years experience in the
design, construction and operation of energy infrastructure projects in
western Canada.
The application also states that Mistral Energy US Inc. intends to
transfer its ownership position in Vantage prior to construction of the
pipeline facilities to a yet to be formed limited partnership named
Riverstone-Mistral US LP (``Riverstone-Mistral''). Riverstone-Mistral
US LP will be a Delaware limited partnership located at: 712 Fifth
Avenue, 19th Floor, New York, NY 10019. According to information
submitted to the Department, the limited partners of Riverstone-Mistral
US LP will be Mistral Energy US Inc, an affiliate of Mistral Energy,
Inc., and Riverstone/Carlyle Fund IV, which is managed by Riverstone
Holdings, LLC. The Department has also been advised that Riverstone
Holdings, LLC, a Delaware entity owned by the two founders of
Riverstone Holdings LLC, David Leuschen and Pierre Lepeyre, Jr, is an
energy and power-focused private equity firm founded in 2000.
In a supplemental submission from the Vantage Pipeline's legal
counsel, it was explained that Riverstone/Carlyle Fund IV LP is also a
Delaware partnership based at the same address as Riverstone-Mistral US
LP and that its General Partner is Riverstone/Carlyle Energy Partners
IV, LP. The submission also explained that the Carlyle Group, a
Washington DC-based asset management firm, holds an indirect minority
interest (less than 20%) in Riverstone/Carlyle Energy Partners IV, LP
and, through that ownership, has an indirect ownership interest in
Riverstone/Carlyle Fund IV LP. Lastly, the submission explains that
Riverstone/Carlyle Fund IV LP is controlled by an investment committee,
which is in turn controlled by Riverstone/Carlyle Energy Partners, LP,
and that Riverstone Holdings LLC is the General Partner of Riverstone/
Carlyle Energy Partners, LP and thus indirectly controls Riverstone/
Carlyle Fund IV LP.
The applicant seeks a Presidential Permit authorizing the
construction, operation, and maintenance of a 10-12 inch diameter
liquid pipeline, known as the Vantage Pipeline, at the U.S.-Canada
border near Fortuna, North Dakota. Vantage seeks authorization to
construct, operate and maintain this cross-border pipeline between the
northern-most valve in the United States and the U.S.-Canada border
(i.e., the border crossing facilities).
The planned Vantage Pipeline will be a high vapor pressure
(``HVP'') pipeline designed to transport liquid ethane from Hess
Corporation's natural gas processing plant in Tioga, North Dakota to
the Alberta Ethane Gathering System (AEGS) in Alberta, Canada, a
distance of approximately 430 miles. Approximately 80 of those miles of
pipeline will be located in the United States.
According to the application, the ethane transported in the Vantage
Pipeline is a flammable liquid that is non-corrosive, odorless, and
colorless It has similar characteristics to natural gas, the fuel that
is used in furnaces to heat homes. Ethane is currently used as a
feedstock by the Alberta petrochemical industry and is ultimately
converted to plastics, anti-freeze, rubber, detergents, solvents and
like products.
The Applicant submits that the Vantage Pipeline will serve the
national interest by providing the natural gas, oil and ethane-
producing Bakken Formation region of North Dakota with access to the
existing ethane AEGS infrastructure and market in Alberta. Currently no
market exists for petrochemical grade (also known as ``specification''
or ``pure grade'') ethane in North Dakota; however, the construction of
the Vantage Pipeline will make it feasible to extract the ethane
byproduct from North Dakota-produced natural gas and export it for use
in the Canadian petrochemical industry. The Applicant contends that the
pipeline therefore will enhance exports from the United States, allow
U.S. natural gas producers to recognize benefits from an existing
resource from which they are not presently recognizing any financial
benefit, and will contribute to the national economy in terms of job
creation and tax payments.
As required by E.O. 13337, the Department of State is circulating
this application to concerned federal agencies for comment. Consistent
with Section 102(C) of the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4332(C)) and implementing regulations promulgated by
the Council on Environmental Quality (40 CFR Parts 1500-1508) and the
Department of State (22 CFR Part 161), including in particular 22 CFR
161.7(c)(1), the Department of State intends to prepare an
environmental assessment (EA) to evaluate the potential environmental
effects of the proposed project and to determine whether to prepare an
environmental impact statement. In that connection, the applicant
states that it intends to provide the Department with an environmental
report in the coming weeks in support of the application. The
Department also intends to conduct consultations on possible impacts to
traditional or cultural properties with interested Native American
tribes consistent with Section 106 of the National Historical
Preservation Act (NHPA).
The purpose of this Notice of Intent is to inform the public about
the application and to solicit public comments.
DATES: Interested parties are invited to submit, in duplicate, comments
relative to this application on or before [30 days from publication of
this notice] to Alexander Yuan, OES/ENV, NEPA Compliance Officer, Room
2627, Office of Environment, Oceans and International Environmental
Affairs, Department of State, Washington, DC 20520. Comments can also
be e-mailed to [email protected]. The application and related documents
that are part of the record to be considered by the Department of State
in connection with this application are available for inspection in the
Office of International Energy and Commodities Policy during normal
business hours.
FOR FURTHER INFORMATION CONTACT: Alex Yuan at (202) 647-4284; or by e-
mail at [email protected] or Michael P. Stewart, Office of International
Energy and Commodity Policy (EB/ESC/IEC/EPC), Department of State,
Washington, DC 20520; or by telephone at (202) 647-1291; or by e-mail
at [email protected].
Dated: January 5, 2011.
Stephen J. Gallogly,
Director, Office of International Energy and Commodity Policy,
Department of State.
[FR Doc. 2011-352 Filed 1-10-11; 8:45 am]
BILLING CODE 4710-07-P