[Federal Register Volume 76, Number 183 (Wednesday, September 21, 2011)]
[Notices]
[Pages 58488-58490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24225]
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DEPARTMENT OF ENERGY
[FE Docket No. 11-98-LNG]
Dominion Cove Point LNG, LP; Application for Blanket
Authorization to Export Previously Imported Liquefied Natural Gas
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of application.
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SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy
(DOE) gives notice of receipt of an application (Application), filed on
August 8, 2011, by Dominion Cove Point LNG, LP (DCP), requesting
blanket authorization to export liquefied natural gas (LNG) that
previously had been imported into the United States from foreign
sources in an amount up to the equivalent of 150 billion cubic feet
(Bcf) of natural gas. The LNG would be exported from the Cove Point LNG
Terminal (Cove Point Terminal), owned by DCP, in Calvert County,
Maryland, to any country with the capacity to import LNG via ocean-
going carrier and with which trade is not prohibited by U.S. law or
policy. DCP seeks authorization to act as an agent for others who own
title to the LNG who will export the LNG over a two-year period
commencing on December 1, 2011. The application was filed under section
3 of the Natural Gas Act (NGA). Protests, motions to intervene, notices
of intervention, and written comments are invited.
[[Page 58489]]
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 Public Comment Procedures
below no later than 4:30 p.m., eastern time, October 21, 2011.
ADDRESSES: Electronic Filing on the Federal eRulemaking Portal under FE
Docket No. 11-98-LNG: http://www.regulations.gov.
Electronic Filing by e-mail: [email protected].
Regular Mail: U.S. Department of Energy (FE-34), Office of Natural
Gas Regulatory Activities, 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 Natural Gas Regulatory
Activities, Office of Fossil Energy, Forrestal Building, Room 3E-042,
1000 Independence Avenue, SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: Larine Moore or Lisa Tracy, U.S.
Department of Energy (FE-34), Office of Natural Gas Regulatory
Activities, Office of Fossil Energy, Forrestal Building, Room 3E-042,
1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-9478;
(202) 586-4523.
Edward Myers, U.S. Department of Energy, Office of the Assistant
General Counsel for Electricity and Fossil Energy, Forrestal Building,
Room 6B-159, 1000 Independence Ave., SW., Washington, DC 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
DCP is a Delaware limited partnership with its principal place of
business in Lusby, Maryland, and offices in Richmond, Virginia. DCP is
the current owner of the Cove Point Terminal. DCP is a subsidiary of
Dominion Resources, Inc. (DRI), a producer and transporter of energy.
DRI is a corporation organized and existing under the laws of the
Commonwealth of Virginia with its principal place of business in
Richmond, Virginia.
Current Application
In the instant application, DCP is seeking blanket authorization to
export from its Cove Point Terminal LNG that previously had been
imported from foreign sources. DCP seeks authorization to export this
LNG to any country with the capacity to import LNG via ocean-going
carrier and with which trade is not prohibited by U.S. law over a two-
year period commencing on December 1, 2011, in an amount up to the
equivalent of 150 Bcf of natural gas. DCP states that it does not seek
authorization to export domestically produced LNG or natural gas. DCP
also states that it will engage in short-term (or ``blanket'') re-
exports of previously imported LNG. DCP does not intend to hold title
to the LNG itself, and is requesting authorization to act as agent on
behalf of other entities who themselves hold title to the LNG but will
register each such LNG title holder with DOE/FE consistent with
registration requirements previously adopted in DOE/FE Order 2986,
issued July 19, 2011, which granted blanket export authorization to
Freeport LNG Development, L.P.
Public Interest Considerations
In support of its application, DCP states that pursuant to section
3 of the NGA, FE is required to authorize exports to a foreign country
unless there is a finding that such exports ``will not be consistent
with the public interest.'' \1\ DCP states that section 3 creates a
statutory presumption in favor of a finding that the Application is in
the public interest, which opponents bear the burden of overcoming. DCP
states further that in reviewing an application to export LNG under
section 3, DOE/FE has applied the principles set forth in DOE
Delegation Order No. 0204-111, which focuses primarily on the domestic
need for the gas to be exported. DCP asserts that DOE/FE has issued
numerous recent blanket authorizations to re-export previously imported
LNG, which cite evidence that indicates that consumers in the United
States presently have access to substantial quantities of natural gas
sufficient to meet domestic demand from multiple other sources at
competitive prices without the LNG sought to be exported. Specifically,
DCP asserts that DOE/FE Order 2986, issued July 19, 2011, which granted
blanket authorization to Freeport LNG Development, L.P. to export LNG
that previously had been imported from foreign sources, concluded that
``the evidence of record indicates that United States consumers
continue to have access to substantial quantities of natural gas
sufficient to meet domestic demand from multiple other sources at
competitive prices without drawing on the LNG which Freeport LNG seeks
to export.'' \2\
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\1\ 15 U.S.C. 717b.(a).
\2\ Freeport LNG Development, L.P., FE 11-51-LNG, DOE/FE Opinion
and Order No. 2986 at 7.
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In addition, DCP notes that a DOE/FE review of the most recent data
and analysis prepared by the Energy Information Administration (EIA)
shows an increasing volume of shale gas production compared to the data
and projections referenced in Dow Chemical Company, DOE/FE Order No
2859 (October 5, 2010), highlighting EIA's more recent projections of
rising gas production as published in the Annual Energy Outlook 2011.
Based on these findings, DCP asserts that the evidence clearly shows
that U.S. consumers have access to substantial supplies of natural gas
that will meet demand without the foreign-sourced LNG which DCP
proposes to re-export.
DCP states that its application seeks only to re-export foreign-
sourced LNG that has been imported and stored at the Cove Point LNG
Terminal, and does not propose to export domestically produced natural
gas. DCP states that the additional flexibility to re-export previously
imported LNG will provide additional flexibility to its customers and
should encourage the continued importation of LNG into the United
States.
DCP also states that re-exports of previously imported LNG will
allow the Cove Point Terminal to remain in a cooled-down state so that
it is operationally capable of providing DCP's certificated services.
DCP states that granting the requested export authorization will not
diminish domestically-produced natural gas supplies. Further details
can be found in the Application, which has been posted at http://www.fe.doe.gov/programs/gasregulation/index.html.
Environmental Impact
DCP states that its requested LNG export authorization does not
require the construction of any new facilities (or modifications to any
existing facilities) at the Cove Point Terminal except for the
conversion of six check valves located on the pier, which would allow
ships to both load and unload at the terminal. In addition, DCP would
modify its computer software for Emergency Shutdown to include loading
operations and prepare a loading procedure for the U.S. Coast Guard.
DCP states that exports of LNG from the Cove Point Terminal would not
increase ship traffic beyond the number already stated in the U.S.
Coast Guard Letter of Recommendation and Waterway Suitability Report
issued for the Cove Point Terminal. DCP states that approval of the
Application would not constitute a federal action significantly
affecting the human environment under the National Environmental Policy
Act (NEPA).\3\
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\3\ 42 U.S.C. 4321 et seq.
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[[Page 58490]]
DCP states that it plans in the near future to file an application
with the Federal Energy Regulatory Commission (FERC) for the necessary
authorization to allow for the re-export of foreign-sourced LNG from
the Cove Point Terminal. DCP acknowledges that the requested
authorization to be issued by DOE/FE would not take effect until FERC
has completed its NEPA review and has granted DCP authorization for the
re-export of LNG at the Cove Point facility. DCP requests that DOE/FE
issue a conditional order authorizing the re-export of LNG from the
Cove Point Terminal conditioned on completion of the environmental
review and subsequent authorization by FERC.
DOE/FE Evaluation
This export application will be reviewed pursuant to section 3 of
the NGA, as amended, and the authority contained in DOE Delegation
Order No. 00-002.00L (April 29, 2011) and DOE Redelegation Order No.
00-002.04E (April 29, 2011). In reviewing this LNG export application,
DOE will consider domestic need for the gas, as well as any other
issues determined to be appropriate, including whether the arrangement
is consistent with DOE's policy of promoting competition in the
marketplace by allowing commercial parties to freely negotiate their
own trade arrangements. Parties that may oppose this application should
comment in their responses on these issues.
NEPA 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 NEPA
responsibilities.
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. Any person wishing to become a party to the proceeding must
file a motion to intervene or notice of intervention, as applicable.
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)
Submitting comments in electronic form on the Federal eRulemaking
Portal at http://www.regulations.govSec. , by following the on-line
instructions and submitting such comments under FE Docket No. 11-98-
LNG. DOE/FE suggests that electronic filers carefully review
information provided in their submissions and include only information
that is intended to be publicly disclosed; (2) e-mailing the filing to
[email protected], with FE Docket No. 11-98-LNG in the title line; (3)
mailing an original and three paper copies of the filing to the Office
Natural Gas Regulatory Activities at the address listed in ADDRESSES;
or (4) hand delivering an original and three paper copies of the filing
to the Office of Natural Gas Regulatory Activities at the address
listed in ADDRESSES.
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.
A party seeking intervention may request that additional procedures be
provided, such as additional written comments, an oral presentation, a
conference, or trial-type hearing. Any request to file additional
written comments should explain why they are necessary. Any request for
an oral presentation should identify the substantial question of fact,
law, or policy at issue, show that it is material and relevant to a
decision in the proceeding, and demonstrate why an oral presentation is
needed. Any request for a conference should demonstrate why the
conference would materially advance the proceeding. Any request for a
trial-type hearing must show that there are factual issues genuinely in
dispute that are relevant and material to a decision and that a trial-
type hearing is necessary for a full and true disclosure of the facts.
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 filed by DCP is available for inspection and
copying in the Office of Natural Gas Regulatory Activities 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.
In addition, any electronic comments filed will also be available at:
http://www.regulations.gov.
Issued in Washington, DC, on September 14, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2011-24225 Filed 9-20-11; 8:45 am]
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