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[Federal Register Volume 78, Number 169 (Friday, August 30, 2013)]
[Notices]
[Pages 53737-53739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21215]

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DEPARTMENT OF ENERGY

[FE Docket No. 13-97-LNG]

ConocoPhillips Company; 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 
August 7, 2013, by ConocoPhillips Company (ConocoPhillips), 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 over a two 
year period commencing on November 30, 2013.\1\ ConocoPhillips further 
requests that such authorization extend to LNG supplies imported from 
foreign sources to which ConocoPhillips holds title, as well as to LNG 
supplies imported from foreign sources that ConocoPhillips may export 
on behalf of other entities who themselves hold title. The LNG would be 
exported from the LNG terminal facilities owned by Freeport LNG 
Development, L.P. (Freeport LNG) on Quintana Island, Texas, 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\ ConocoPhillips Company, DOE/FE Order No. 3038 (November 22, 
2011) extends through November 29, 2013 (FE Docket No. 11-109-LNG).

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 
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below no later than 4:30 p.m., eastern time, September 30, 2013.

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),

[[Page 53738]]

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 (FE-76),
Office of the Assistant General Counsel,
Electricity and Fossil Energy,
Forrestal Building, Room 6B-256,
1000 Independence Ave. SW.,
Washington, DC 20585,
(202) 586-3397.

SUPPLEMENTARY INFORMATION: 

Background

    ConocoPhillips is a Delaware corporation with its principal place 
of business in Houston, Texas. ConocoPhillips is an independent 
producer and seller of natural gas that imports LNG into the United 
States and exports foreign-sourced LNG from the United States. On 
November 22, 2011, DOE/FE issued Order No. 3038, which granted 
ConocoPhillips authorization to export LNG that previously had been 
imported from foreign sources in an amount up to the equivalent of 500 
Bcf of natural gas on a cumulative basis over a two-year period 
commencing on November 30, 2011.

Current Application

    The current Application is filed in anticipation of the pending 
expiration of Order No. 3038 on November 29, 2013, and requests the 
same type of authorization previously granted in that Order. 
ConocoPhillips therefore requests this blanket authorization to export 
previously imported foreign-sourced LNG on a short-term or spot market 
basis. ConocoPhillips requests such authorization on its own behalf or 
as agent for others who hold title to the LNG at the time of export, up 
to a cumulative total equivalent to 500 Bcf of natural gas from the 
Freeport LNG Terminal for a twenty-five month period, beginning on 
November 30, 2013. ConocoPhillips is seeking the proposed 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. ConocoPhillips states that it does 
not seek authorization to export domestically-produced natural gas or 
LNG.

Public Interest Considerations

    In support of its Application, ConocoPhillips states that pursuant 
to section 3 of the NGA, FE must authorize exports to a foreign country 
unless there is a finding that such exports ``will not be consistent 
with the public interest.'' \2\ ConocoPhillips states that section 3 
creates a statutory presumption in favor of approval of a properly 
framed export application.\3\ ConocoPhillips states further, in 
evaluating an export application, FE applies the principles described 
in DOE Delegation Order No. 0204-111 which states that domestic need 
for natural gas shall be the primary focus of DOE when evaluating an 
export application.\4\ Finally, as detailed below, ConocoPhillips 
states that this blanket export authorization request satisfies the 
public interest standard of section 3 of the NGA.
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    \2\ 15 U.S.C. 717b (a).
    \3\ Phillips Alaska Natural Gas Corp. and Marathon Oil Co., DOE/
FE Order No. 1473, 2 FE]70,317 at p. 13, n. 42 (April 2, 1999), 
citing Panhandle Producers and Royalty Owners Association v. ERA, 
822 f. 2d 1105, 1111 (DC Cir. 1987).
    \4\ Ibid, at p. 14.
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    ConocoPhillips asserts that there is no domestic need for the LNG 
to be exported by ConocoPhillips pursuant to the blanket authorization 
requested. In support, ConocoPhillips states that in recent years, DOE/
FE has issued a number of blanket authorizations to export previously-
imported LNG, including the one issued to ConocoPhillips in Order No. 
3038, finding that such LNG is not needed to meet domestic demand for 
natural gas.\5\ ConocoPhillips cites numerous recent authorizations 
issued by DOE/FE that were all approved. ConocoPhillips states that 
DOE/FE concluded in a recent Freeport LNG Development L.P. 
authorization 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 Development L.P. seeks to export.'' \6\ Conoco Phillips states that 
this record evidence also supports the conclusion that the foreign-
sourced LNG that ConocoPhillips may export from the Freeport LNG 
terminal facilities pursuant to the blanket authorization requested 
herein is not needed to meet domestic demand.
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    \5\ Freeport LNG Development, L.P., DOE/FE Order No. 3317 (July 
19, 2013); ENI USA Gas Marketing LLC, DOE/FE Order No. 3247 (March 
5, 2013); Sempra LNG Marketing, LLC, DOE/FE Order No. 3231 (February 
13, 2013); Chevron U.S.A. Inc., DOE/FE Order No. 3221 (January 4, 
2013); The Dow Chemical Company, DOE/FE Order No. 3162 (October 11, 
2012); Cheniere Marketing, LLC, DOE/FE Order No. 3102 (June 7, 
2012).
    \6\ Freeport LNG Development, L.P,. DOE/FE Order No. 3317 (July 
19, 2013) at p. 8.
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    ConocoPhillips states that the monthly reports that it has filed 
with DOE/FE pursuant to Order No. 3038 confirm that it has used its 
currently effective blanket authorization to export previously-imported 
LNG from the United States. ConocoPhillips states that the Order No. 
3038 blanket export authorization has also facilitated the importation 
of LNG cargos into the United States by enabling it to import LNG 
cargos without fear that such cargos will become captive to the U.S. 
market if, in ConocoPhillips' view, market conditions ultimately do not 
support delivering regassified LNG into the U.S. market. ConocoPhillips 
states that is has also sold LNG to Freeport LNG to replace boil off, 
thereby contributing to the operational stability of the Freeport LNG 
terminal facilities.

Environmental Impact

    ConocoPhillips states that no modifications to Freeport LNG's 
Quintana Island terminal are required to enable the proposed exports of 
LNG. ConocoPhillips also states the environmental impacts of permitting 
the exportation of LNG from Freeport LNG's Quintana Island terminal 
facilities were already reviewed by DOE/FE in Order No. 3317 \7\ and 
that DOE/FE previously found that the export of LNG by ConocoPhillips 
from the Freeport LNG terminal facilities will have no additional 
environmental impact.\8\
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    \7\ ibid at p. 10 n. 14.
    \8\ See DOE/FE Order No. 3038 (November 22, 2011).
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DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a), 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 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

[[Page 53739]]

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. 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 fergas@hq.doe.gov, with FE Docket No. 13-97-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. All filings 
must include a reference to FE Docket No. 13-97-LNG.
    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 
Office of Oil and Gas Global Security and Supply 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 August 22, 2013.
Marc P. Talbert,
Acting Manager, Natural Gas Regulatory Activities, Office of Oil and 
Gas Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2013-21215 Filed 8-29-13; 8:45 am]
BILLING CODE 6450-01-P
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