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[Federal Register: January 11, 2011 (Volume 76, Number 7)]
[Notices]               
[Page 1659]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11ja11-97]                         

[[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 YuanAW@state.gov. 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 YuanAW@State.gov 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 StewartMP@State.gov.

    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
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