[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 76013-76015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31005]
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DEPARTMENT OF ENERGY
[FE Docket No. 12-155-LNG]
Sempra LNG Marketing, LLC; Application for Blanket Authorization
To Export Previously Imported Liquefied Natural Gas on a Short-Term
Basis
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
October 26, 2012, by Sempra LNG Marketing, LLC (Sempra LNG Marketing),
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 250 billion cubic feet
(Bcf) of natural gas on a short-term or spot market basis for a two-
year period commencing on February 1, 2013.\1\ The LNG would be
exported from the Cameron LNG Terminal (Cameron Terminal) owned by
Sempra LNG Marketing's affiliate Cameron LNG, LLC, in Cameron Parish,
Louisiana 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. 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.
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\1\ Sempra LNG Marketing, LLC, DOE/FE Order No. 2885 (December
3, 2010) extends through January 31, 2013.
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, January 25,
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2013.
ADDRESSES: U.S. Department of Energy (FE-34), Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy, Forrestal
Building, Room 3E-042, 1000 Independence Avenue SW, Washington, DC
20585.
FOR FURTHER INFORMATION CONTACT: Larine Moore or Beverly Howard, U.S.
Department of Energy (FE-34), Office of Oil and Gas Global Security and
Supply Office of Fossil Energy, Forrestal Building, Room 3E-042, 1000
Independence Avenue SW, Washington, DC 20585, (202) 586-9478; (202)
586-9387; Edward Myers, U.S. Department of Energy, Office of the
Assistant General Counsel for Electricity and Fossil Energy, Forrestal
Building, Room 6B-256, 1000 Independence Ave. SW., Washington, DC
20585, (202) 586-3397.
SUPPLEMENTARY INFORMATION:
Background
Sempra LNG Marketing, a Delaware limited liability company with its
principal place of business in San Diego, California, is a wholly-owned
subsidiary of Sempra LNG, a Delaware corporation. Sempra LNG, through
its other subsidiaries, owns and operates LNG receipt and storage
terminals in North America, including the Cameron Terminal in Cameron
Parish, Louisiana.
Sempra LNG Marketing is engaged in the business of purchasing and
marketing supplies of LNG. Sempra is a customer of the Cameron
Terminal. On June 22, 2012, FE issued DOE/FE Order No. 3122, which
granted Sempra LNG Marketing blanket authorization to import LNG from
various international sources for a two year period beginning on
September 1, 2012. On December 3, 2010, FE issued Order No. 2885, which
granted Sempra LNG Marketing authority to export a cumulative total of
[[Page 76014]]
250 Bcf of previously imported LNG from the Cameron Terminal to any
country with which trade is not prohibited by U.S. law or policy. The
export authorization granted by Order No. 2885 is effective for a two
year period that commenced on February 1, 2011.
Current Application
In the instant Application, Sempra LNG Marketing requests blanket
authorization to export LNG from the Cameron Terminal that has been
previously imported into the United States from foreign sources. Sempra
requests this authority over a two-year period in an amount up to the
equivalent of 250 Bcf of natural gas, on a cumulative basis, over a
two-year period beginning on February 1, 2013, immediately on
expiration of the authorization in Order No. 2885. Sempra LNG Marketing
is seeking such authorization to export previously imported LNG to any
country with the capacity to import LNG via ocean-going carrier and
with which trade is not prohibited by Federal law or policy. Sempra LNG
Marketing states that it does not seek authorization to export
domestically-produced natural gas or LNG.
Sempra LNG Marketing states that its requested blanket
authorization would provide the additional option of exporting volumes
of foreign-sourced LNG that are not needed to service the domestic
market. Sempra LNG Marketing states that it is not proposing, and is
not seeking authorization to export any domestically produced natural
gas or LNG. This application seeks authorization only to export LNG
that has been previously imported into the United States.
Sempra LNG Marketing asserts that no facility modifications or
additions are required in order for it to export foreign-sourced LNG
from the Cameron Terminal.
Public Interest Considerations
Sempra LNG Marketing states that the requested blanket
authorization will allow it to purchase LNG at prevailing international
prices for import to the United States, even when prices in other
markets may be higher, by giving it the ability to store LNG at the
Cameron Terminal and later sell it in the most competitive market.
Sempra LNG Marketing states that this ability to react to changing
market conditions by either importing LNG for sale in the United
States, or importing LNG for subsequent export to other markets will
enhance the potential supply or natural gas in the U.S. market. Sempra
LNG Marketing states that when gas supplies are in balance with
domestic demand, LNG will be imported and used to supplement domestic
gas supplies. When there is a surplus of domestic gas supplies, as at
the present time, there will be the opportunity to import LNG with the
ability to later export it to serve other markets.
In support of its application, Sempra LNG Marketing states that
section 3 of the NGA provides that application to export natural gas to
foreign countries will be authorized unless there is a finding that
they ``will not be consistent with the public interest.\2\ Sempra LNG
Marketing states that in reviewing an export application, FE applies
the principles set forth in DOE Delegation Order No. 0204-111, which
focuses primarily on the domestic need for the gas to be exported and
the Secretary of Energy's natural gas policy guidelines.\3\
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\2\ 15 U.S.C. 717b.(a). Natural gas is defined to include LNG in
10 CFR part 590.102(i).
\3\ Sempra LNG Marketing referenced 49 FR 6684, February 22,
1984.
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Sempra LNG Marketing states that in its existing authorization to
export foreign-sourced LNG granted in DOE/FE Order No. 2885, FE noted
that the ``U.S. consumers presently 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 Sempra LNG Marketing seeks to export.'' \4\ Sempra LNG Marketing
asserts that the relevant circumstances have not changed in the nearly
two years since that finding.
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\4\ Quoting Order No. 2885 at 5.
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Environmental Impact
Sempra LNG Marketing states that no new facilities or modifications
to any existing facilities at the Cameron Terminal would be required in
order for Sempra LNG Marketing to export LNG from that facility. Sempra
LNG Marketing asserts that exports of LNG from the Cameron Terminal
also would not increase the number of LNG carriers that the Cameron
Terminal is designed and authorized to accommodate. Finally, Sempra LNG
Marketing states that granting this application will not constitute a
federal action significantly affecting the human environment within the
meaning of the National Environmental Policy Act (NEPA), 42 U.S.C. 4321
et seq.
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 natural 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. Persons that may oppose this Application
should comment in their responses on these issues.
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 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. The information
contained in any filing will not be held confidential and will be
posted to DOE's public Web site except to the extent confidential
treatment is requested and granted.
Filings may be submitted using one of the following methods: (1)
Emailing the filing to [email protected], with FE Docket No. 12-155-LNG
in the title line; (2) mailing an original and three paper copies of
the filing to the Office of Oil and Gas Global Security and Supply at
the address listed in ADDRESSES; or (3) hand delivering an original and
three paper copies of the filing to the Office of Oil and Gas Global
Security and Supply 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
[[Page 76015]]
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 Sempra LNG Marketing is available for
inspection and copying in the Office of Natural Gas Regulatory
Activities Docket Room, 3E-042, 1000 Independence Avenue SW.,
Washington, DC 20585. The docket room is open between the hours of 8:00
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 December 20, 2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2012-31005 Filed 12-21-12; 4:15 pm]
BILLING CODE 6450-01-P