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[Federal Register: April 16, 2010 (Volume 75, Number 73)]
[Notices]               
[Page 19954-19956]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ap10-49]                         

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DEPARTMENT OF ENERGY

[FE Docket No. 10-31-LNG]

 
Cheniere Marketing, LLC; Application for Blanket Authorization To 
Export 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, filed on March 23, 
2010, by Cheniere Marketing, LLC (CMI), 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 500 Billion cubic feet (Bcf) of natural gas on 
a short-term or spot market basis. The LNG would be exported from the 
Sabine Pass LNG terminal owned by CMI's affiliate, Sabine Pass LNG, 
L.P., 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, over a two year period commencing on 
the date of the authorization. In addition, CMI requests that FE vacate 
the blanket authorization issued in DOE/FE Order 2651 on June 8, 2009, 
requesting the export of previously imported LNG, as amended by Order 
2651-A on July 31, 2009, (Orders 2651 and 2651-A) effective on the date 
of the proposed authorization. The proposed authorization will 
supersede CMI's current authorization.
    The application was filed under section 3 of the Natural Gas Act 
(NGA) (15 U.S.C. 717b), as amended by section 201 of the Energy Policy 
Act of 1992 (Pub. L. 102-486) and part 590 of DOE's regulations, 10 CFR 
part 590 (2009). 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 at the address listed below no later than 4:30 p.m., 
eastern time, May 17, 2010.

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 General Counsel, 
Fossil Energy and Energy Efficiency, Forrestal Building, Room 6B-159, 
1000 Independence Ave., SW., Washington, DC 20585, (202) 586-3397.

SUPPLEMENTARY INFORMATION: 

Background

    CMI is a Delaware limited liability company with its principal 
place of business in Houston, Texas. CMI is a wholly-owned subsidiary 
of Cheniere Energy, Inc. (Cheniere Energy), which is also a Delaware 
corporation with its primary place of business in Houston, Texas. 
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.
    On June 8, 2009, FE granted CMI blanket authorization to export on 
its own behalf or as agent for others LNG that previously had been 
imported from foreign sources in an amount up to the equivalent of 64 
Bcf of natural gas on a cumulative basis. The authorization permitted 
such exports on a short term or spot market basis from the Sabine Pass 
LNG terminal to the United Kingdom, Belgium, Spain, France, Italy, 
Portugal, Turkey, Brazil, Argentina, Chile, Mexico, the Dominican 
Republic, Japan, South Korea, India, China, and/or Taiwan over a two-
year period commencing on the date of the authorization. On July 31, 
2009, the authorization was amended to reflect a name change from 
Cheniere Marketing, Inc to Cheniere Marketing, LLC.\1\
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    \1\ Cheniere Marketing, LLC, DOE/FE Order Nos. 2651 and 2651-A, 
issued June 8, 2009 and July 31, 2009 respectively.
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    On January 23, 2009, FE granted CMI blanket authorization to import 
LNG from various international sources for a two-year term beginning on 
January 29, 2009.\2\ Under the terms of the blanket authorization the 
LNG may be imported at any LNG receiving facility in the United States 
and its territories.
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    \2\ Cheniere Marketing LLC, DOE/FE Order No. 2606 issued January 
23, 2009.
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Current Application

    In the instant application, CMI is seeking blanket authorization to 
export from the Sabine Pass LNG terminal LNG that has been previously 
imported from foreign sources 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 over a two-year period, on a short-term or 
spot market basis, in an amount up to the equivalent of 500 Bcf of 
natural gas. CMI is also concurrently seeking to vacate Order 2651, as 
amended by Order 2651-A since the proposed authorization will supersede 
its current authorization. CMI states that no additional physical 
modifications to the Sabine Pass LNG terminal are required to 
accommodate the export authorization requested.

[[Page 19955]]

Public Interest Considerations

    In support of its application, CMI 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.'' \3\ CMI states that section 3 thus creates 
a statutory presumption in favor of approval of this Amendment which 
opponents bear the burden of overcoming.\4\ CMI states further, in 
evaluating an export application, FE applies the principles described 
in DOE Delegation Order No. 0204-111, which focuses primarily on 
domestic need for the gas to be exported, and the Secretary's natural 
gas policy guidelines.\5\ Finally, as detailed below, CMI states that 
their proposal to export LNG to those countries with the capacity to 
import LNG via ocean-going carrier and with which trade is not 
prohibited by U.S. law or policy is consistent with Section 3 of the 
NGA and FE's policy.
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    \3\ 15 U.S.C. 717b.
    \4\ In Panhandle Producers and Royalty Owners Associations v. 
ERA, 822 F.2d 1105, 1111 (D.D. Circ. 1987), the court found that 
Section 3 of the NGA ``requires an affirmative showing of 
inconsistency with the public interest to deny an application'' and 
that a ``presumption favoring * * * authorization * * * is 
completely consistent with, if not mandated by, the statutory 
directive.''
    \5\ See 49 FR 6684, February 22, 1984.
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    CMI states that in DOE/FE Order No. 2651, which granted CMI blanket 
authorization to export up to 64 Bcf (cumulative) of previously 
imported foreign-sourced LNG, FE determined that there presently is no 
domestic reliance on the volumes of imported LNG that CMI would seek to 
export. CMI also states that in November 2009, FE made the same finding 
in granting ConocoPhillips Company (ConocoPhillips) blanket authority 
to export from the Freeport LNG Development, L.P. Quintana Island 
terminal up to 500 Bcf of previously imported LNG.\6\ CMI points out 
that FE stated that ``the record shows there is sufficient supply of 
natural gas to satisfy 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, DOE/FE Order No. 2731, November 30, 2009.
    \7\ Id. at p. 11.
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    CMI is requesting authorization, for itself and as agent for third 
parties, to periodically export LNG imported under DOE/FE Order No. 
2606, as well as LNG of third parties, to any other country with the 
capacity to import LNG via ocean-going vessel and with which trade is 
not prohibited by U.S. law or policy, should market conditions in the 
United States not support domestic sale of those supplies. CMI states 
that granting of CMI's short term blanket authorization as requested 
herein would provide CMI with the necessary flexibility it requires to 
respond to changes in domestic and global markets for natural gas and 
LNG. CMI states that the additional flexibility sought herein would 
further encourage CMI to obtain and store spot market LNG cargoes. 
Natural gas derived from imported LNG will be available to supply local 
markets when conditions support it, and will thereby serve to moderate 
U.S. gas price volatility. As such, CMI states the requested export 
authorization is consistent with the public interest.

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. 00-002.00I (Nov. 10, 2009) and DOE Redelegation Order No. 00-
002.04D (Nov. 6, 2007). 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.
    CMI states that since no changes to the Sabine Pass LNG facilities 
would be required for CMI's proposed exportation of LNG. CMI asserts 
that consequently, granting this application will not be a Federal 
action significantly affecting the human environment within the meaning 
of the National Environmental Policy Act, 42 U.S.C. 4321 et seq. CMI 
states therefore, an environmental impact statement or environmental 
assessment is not required.
    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, motion 
to intervene or notice of intervention and written comments, as 
provided in DOE's regulations at 10 CFR 590.301, et seq. Any person 
wishing to become a party to the proceeding and to have their written 
comments considered as a basis for any decision on the application must 
file a motion to intervene or notice of intervention, as applicable. 
The filing of a protest with respect to the application will not serve 
to make the 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, motions to intervene, notices of intervention, and 
written comments must meet the requirements specified by the 
regulations in 10 CFR part 590. Protests, motions to intervene, notices 
of intervention, requests for additional procedures, and written 
comments shall be filed with the Office of Oil and Gas Global Security 
and Supply at the address listed above.
    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 CMI is available for inspection and 
copying in the Office of Oil and Gas Global Security and Supply docket 
room, 3E-042, at the above address. 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 is also available

[[Page 19956]]

electronically by going to the following Web address: http://www.fe.doe.gov/programs/gasregulation/index.html.

    Issued in Washington, DC, on April 9, 2010.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2010-8753 Filed 4-15-10; 8:45 am]
BILLING CODE 6450-01-P
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