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[Federal Register Volume 79, Number 83 (Wednesday, April 30, 2014)]
[Notices]
[Pages 24411-24413]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09886]

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DEPARTMENT OF ENERGY

[FE Docket No. 14-31-LNG]

Cheniere 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 
March 7, 2014, by Cheniere Marketing, LLC (CMI), requesting blanket 
authorization to export liquefied natural gas (LNG) previously imported 
into the United States from foreign sources in a volume equivalent to 
approximately 500 Billion cubic feet (Bcf) of natural gas on a 
cumulative basis. CMI seeks authorization to export the LNG by vessel 
from the Sabine Pass LNG Terminal, owned by Sabine Pass LNG, L.P. and 
located in Cameron Parish, Louisiana, on a short-term or spot market 
basis for a two-year period commencing on June 1, 2014. CMI requests 
authorization to export the 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 or policy. CMI requests this authorization on 
its own behalf and as agent for other parties who hold title to the LNG 
at the time of export. 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.

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, May 30, 2014.

ADDRESSES: 

Electronic Filing by email: fergas@hq.doe.gov
Regular Mail: U.S. Department of Energy (FE-34), Office of Oil and Gas 
Global Security and Supply, 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 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.
Cassandra Bernstein, U.S. Department of Energy (GC-76), Office of the 
Assistant General Counsel for Electricity and Fossil Energy, Forrestal 
Building, 1000 Independence Ave. SW., Washington, DC 20585, (202) 586-
9793.

SUPPLEMENTARY INFORMATION: 

Background

    Applicant. CMI states that it is a Delaware limited liability 
company with its principal place of business in Houston, Texas. CMI 
further states that it is a wholly-owned subsidiary of Cheniere 
Development, Inc., which in turn is a wholly-owned subsidiary of 
Cheniere Energy, Inc. Both Cheniere Development and Cheniere Energy are 
Delaware corporations with their primary place of business in Houston, 
Texas. According to CMI, Cheniere Energy is a developer of LNG import 
terminals and natural gas pipelines on the U.S. Gulf Coast, including 
the Sabine Pass LNG Terminal.
    Procedural History. On June 7, 2012, DOE/FE issued Order No. 3102, 
in which it authorized CMI to export, on its own behalf or as agent for 
others, LNG previously imported from foreign sources in a volume 
equivalent to approximately 500 Bcf of natural gas on a cumulative 
basis over a two-year period commencing on June 7, 2012, and extending 
through June 6, 2014.\1\ The Application subject to this Notice,

[[Page 24412]]

if granted by DOE/FE, would renew that existing blanket authorization.
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    \1\ Cheniere Marketing, LLC, DOE/FE Order No. 3102, Order 
Granting Blanket Authorization to Export Previously Imported 
Liquefied Natural Gas by Vessel (June 7, 2012).
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    Additionally, on December 3, 2012, DOE/FE issued Order No. 3208, in 
which it authorized CMI (in relevant part) to import LNG from various 
international sources in a total volume equivalent to approximately 
1,600 Bcf for a two-year term beginning on January 29, 2013, and 
extending through January 28, 2015.\2\ Under the terms of this 
authorization, CMI may import the LNG by vessel to any LNG terminal in 
the United States and its territories.
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    \2\ Cheniere Marketing, LLC, DOE/FE Order No. 3208, Order 
Granting Blanket Authorization to Import and Export Natural Gas from 
and to Canada and Mexico, to Import Liquefied Natural Gas from 
Various International Sources by Vessel, and to Export Liquefied 
Natural Gas to Canada and Mexico by Vessel and Truck (Dec. 3, 2013).
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Current Application

    CMI seeks to export LNG previously imported into the United States 
from foreign sources in a volume equivalent to approximately 500 Bcf of 
natural gas on a cumulative basis. CMI notes that it is not seeking 
authorization to export domestically-produced natural gas or LNG. CMI 
states that it plans to export the LNG from the Sabine Pass LNG 
Terminal to any country with the capacity to import the LNG via ocean-
going carrier and with which trade is not prohibited by U.S. law or 
policy. CMI requests this blanket authorization for a two-year period 
commencing on June 7, 2014--the day after its blanket authorization in 
DOE/FE Order No. 3102 expires.
    CMI proposes to export LNG that is derived from its LNG importing 
activities and that resides in LNG storage tanks at the Sabine Pass LNG 
Terminal. CMI states that the LNG either will be re-exported or 
regasified for consumption in the domestic natural gas market, 
contingent on U.S. and global market price signals. CMI states that no 
physical modification to the Sabine Pass LNG Terminal will be required 
to accommodate the proposed exports. CMI further states that there are 
no other proceedings related to this Application currently pending 
before DOE or any other federal agency.
    CMI seeks to export the requested LNG on its own behalf and as 
agent for third parties who hold title to the LNG at the time of 
export. CMI states that it will comply with all DOE/FE requirements for 
exporters and agents as set forth in recent DOE/FE orders, including 
registering each LNG title holder for whom CMI seeks to export as 
agent. CMI proposes that this registration include a written statement 
by the title holder acknowledging and agreeing to comply with all 
applicable requirements set forth in CMI's export authorization, and to 
include those requirements in any subsequent purchase or sale agreement 
entered into by that title holder.

Public Interest Considerations

    CMI states that section 3 of the NGA creates a statutory 
presumption in favor of approval of its Application, which opponents 
bear the burden of overcoming.\3\ Citing DOE/FE policy on evaluating an 
export application,\4\ CMI contends that the proposed export of 
previously imported LNG is consistent with section 3 of the NGA.
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    \3\ See, e.g., Panhandle Producers & Royalty Owners Ass'n v. 
ERA, 822 F.2d 1105, 1111 (D.C. Cir. 1987).
    \4\ New Policy Guidelines and Delegations Order Relating to 
Regulation of Imported Natural Gas, 49 FR 6684 (Feb. 22, 1984).
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    In support of its assertion that the requested authorization is in 
the public interest, CMI cites its existing blanket authorization--DOE/
FE Order No. 3102--in which DOE/FE authorized the export of the same 
volume of previously-imported, foreign-sourced LNG as sought here. CMI 
states that, in granting that authorization in 2012, DOE/FE determined 
that the record showed sufficient supply of natural gas to satisfy 
domestic demand from multiple other sources at competitive prices, 
without relying on the volumes of imported LNG that CMI would seek to 
export.\5\
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    \5\ See Cheniere Marketing, LLC, DOE/FE Order No 3102, at 8.
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    CMI states that DOE/FE made a similar finding in November 2103, 
when it issued DOE/FE Order No. 3359 to ConocoPhillips Company. In that 
order, DOE/FE granted ConocoPhillips blanket authority to export LNG 
previously imported from foreign sources in a cumulative volume 
equivalent to approximately 500 Bcf of natural gas.\6\ CMI quotes DOE/
FE's finding, ``United States consumers will 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 ConocoPhillips seeks to export.'' \7\
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    \6\ ConocoPhillips Company, DOE/FE Order No. 3359, Order 
Granting Blanket Authorization to Export Previously Imported 
Liquefied Natural Gas by Vessel (Nov. 7, 2013) (granting authority 
to export LNG from the LNG terminal facilities on Quintana Island, 
Texas, owned by Freeport LNG Development, L.P.).
    \7\ Id. at 7.
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    CMI states that, in DOE/FE Order 3359 (as well as in other blanket 
authorizations issued in recent years), DOE/FE authorized the export of 
previously imported LNG based in part on data compiled by the U.S. 
Energy Information Administration (EIA). CMI asserts that this data 
substantiates U.S. consumer access to ample volumes of natural gas to 
meet domestic demand from other competitively-priced sources. In Order 
No. 3359, for example, CMI states that DOE/FE took administrative 
notice that EIA's Annual Energy Outlook 2013 (AEO 2013) showed annual 
domestic dry natural gas production increasing from 21.33 trillion 
cubic feet (Tcf) in 2010 to a projection of 26.61 Tcf by 2020--an 
annual increase of 5.28 Tcf.\8\ Consumption over the same period 
increased only by 2.54 Tcf annually. CMI cites DOE/FE's findings in 
these proceedings, in addition to EIA's more recent estimates in Annual 
Energy Outlook 2014 Early Release Overview,\9\ to support the 
conclusion that the foreign-sourced LNG proposed for export in this 
Application is not needed to meet domestic demand.
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    \8\ See id. at 6-7.
    \9\ CMI states that, in December 2013, EIA issued its Annual 
Energy Outlook 2014 Early Release Reference case, in which EIA 
increased its forecast of cumulative dry natural gas production 
(from 2012 to 2040) by 11% from its forecast in AEO 2013.
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    Finally, CMI states that the requested authorization would provide 
CMI with necessary flexibility to respond to changes in domestic and 
global markets for natural gas and LNG. Under its existing 
authorization in DOE/FE Order No. 3102, CMI has been able to avail 
itself of spot-market LNG import cargoes, which promotes the liquidity 
of supply available to the U.S. market. According to CMI, natural gas 
derived from the imported LNG will be available to supply local markets 
when conditions support it, which may moderate the volatility of U.S. 
gas prices. For these reasons, CMI states that the requested export 
authorization is consistent with the public interest.
    Additional details can be found in CMI's Application, which is 
posted on the DOE/FE Web site at: http://www.fossil.energy.gov/programs/gasregulation/authorizations/2014_applications/14_31_lng_howard_re-export.pdf

Environmental Impact

    CMI states that the proposed export of previously-imported LNG 
would require no modifications to the Sabine Pass LNG Terminal. 
Therefore, CMI maintains that a grant of its Application would not 
constitute a federal action significantly affecting the human 
environment within the meaning of the National Environmental Policy Act

[[Page 24413]]

(NEPA), 42 U.S.C. 4321 et seq., nor would an environmental impact 
statement or environmental assessment be required.

DOE/FE Evaluation

    The 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. 00-002.04F 
(July 11, 2013). 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) 
Emailing the filing to fergas@hq.doe.gov, with FE Docket No. 14-31-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 
Supply at the address listed in ADDRESSES. All filings must include a 
reference to FE Docket No. 14-31-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. 
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 is available for inspection and copying in the 
Division 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 8:00 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 April 22, 2014.
John A. Anderson,
Director, Division of Natural Gas Regulatory Activities, Office of Oil 
and Gas Global Security and Supply, Office of Oil and Natural Gas.
[FR Doc. 2014-09886 Filed 4-29-14; 8:45 am]
BILLING CODE 6450-01-P
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