[Federal Register Volume 74, Number 176 (Monday, September 14, 2009)]
[Notices]
[Pages 46990-46991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21996]


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DEPARTMENT OF ENERGY

[FE Docket No. 09-92-LNG]


ConocoPhillips Company; 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 August 31, 
2009 by ConocoPhillips Company (ConocoPhillips), requesting blanket 
authorization to export liquefied natural gas (LNG) that previously had 
been imported from foreign sources on their own behalf or as agent for 
others on a short-term or spot market basis from existing facilities on 
Quintana Island, Texas in an amount up to the equivalent of 500 Billion 
cubic feet (Bcf) of natural gas to the United Kingdom, Belgium, Spain, 
Portugal, Turkey, Brazil, Argentina, Chile, Mexico, the Dominican 
Republic, Japan, South Korea, India, China, Taiwan, France, and/or 
Italy, as well as any country with the capacity to import ocean-going 
LNG, with which trade is not prohibited by U.S. law or policy. 
ConocoPhillips seeks to export the LNG over a two year period 
commencing on the date of the authorization.
    The application is filed under section 3 of the Natural Gas Act (15 
U.S.C. 717b), as amended by section 201 of the Energy Policy Act of 
1992 (Pub. L. 102-486), DOE Delegation Order No. 00-002.00G (Jan. 29, 
2007) and DOE Redelegation Order No. 00-002.04D (Nov. 6, 2007). 
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, October 14, 2009.

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 Fossil Energy and Energy Efficiency, Forrestal 
Building, Room 6B-159, 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 and an importer of LNG into the U.S. 
ConocoPhillips requests that the proposed authorization to export LNG 
requested herein be applicable to exports from the Freeport LNG 
Development, L.P. (FLNG) terminal. FLNG has previously received 
authorization from the Federal Energy Regulatory Commission (FERC) to 
site, construct and operate a new LNG import, storage, and vaporization 
terminal on Quintana Island, Texas and an associated 9.6-mile long 
send-out

[[Page 46991]]

pipeline.\1\ On July 1, 2008, FERC issued a letter Order granting 
FLNG's request to commence service at its Quintana Island import 
terminal. FLNG also received FERC authorization to modify its 
facilities so as to enable exports of LNG in addition to imports of 
LNG.\2\ ConocoPhillips has a long-term terminal use agreement with FLNG 
for 0.9 Bcf per day of LNG storage and regasification capacity. No 
additional facility modifications will be required to enable 
ConocoPhillips to also export LNG from the FLNG terminal.
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    \1\ Freeport LNG Development, L.P., Order Granting Authorization 
Under Section 3 of the Natural Gas Act, 107 FERC ] 61,278 (2004); 
Order Granting Requests for Rehearing and Clarification, 108 FERC ] 
61,253 (2004); and Order Amending Section 3 Authorization, 112 FERC 
] 61,194 (2005).
    \2\ See Freeport LNG Development, L.P., 127 FERC ] 61,105 
(2009); Sabine Pass LNG, L.P., 127 FERC ] 61,200 (2009).
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    On July 24, 2009, FE granted ConocoPhillips blanket authorization 
to import up to 500 Bcf of LNG from various international sources for a 
two-year term which began on August 1, 2009 and extends through July 
30, 2011.\3\
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    \3\  ConocoPhillips Company, DOE/FE Order No. 2673, issued July 
24, 2009.
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Current Application

    In the instant application, ConocoPhillips is seeking blanket 
authorization to export LNG 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, which has been imported into the U.S. ConocoPhillips is 
seeking this authorization so that it may sell in non-U.S. markets any 
LNG it has previously imported should U.S. market prices not support 
the sale of such imported LNG domestically.

Public Interest Considerations

    In support of its application, ConocoPhillips states that there is 
no domestic reliance on the LNG that it seeks to export. Due to global 
LNG market conditions, U.S. natural gas demand and prices do not 
currently support the importation of LNG into the U.S, and export 
authorization is needed in order to enable the applicant to 
economically import LNG should U.S. market conditions change.
    ConocoPhillips also states in its application that local natural 
gas supplies will not be reduced. The applicant states that it intends 
to export only foreign sourced LNG, and does not intend to export 
domestically produced natural gas. Additionally, ConocoPhillips states 
that granting the requested authorization would make the importation of 
LNG into the U.S. more attractive because, once imported, 
ConocoPhillips will have the option of either selling into U.S. markets 
or exporting to other markets based upon prevailing market conditions.

DOE/FE Evaluation

    This export application will be reviewed pursuant to section 3 of 
the Natural Gas Act, as amended, and the authority contained in DOE 
Delegation Order No. 00-002.00G (Jan. 29, 2007) 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.
    ConocoPhillips asserts the proposed authorization is in the public 
interest. Under section 3 of the Natural Gas Act, as amended, an LNG 
export from the U.S. to a foreign country must be authorized unless 
``the proposed exportation will not be consistent with the public 
interest.'' Section 3 thus creates a statutory presumption in favor of 
approval of this application, and parties opposing the authorization 
bear the burden of overcoming this presumption.
    Additionally, 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, as applicable, and written 
comments. 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 should 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 additional procedures are adopted, 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 ConocoPhillips Company 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 
electronically by going to the following Web address: http://www.fe.doe.gov/programs/gasregulation/index.html.

    Issued in Washington, DC, on September 8, 2009.
Robert F. Corbin,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. E9-21996 Filed 9-11-09; 8:45 am]
BILLING CODE 6450-01-P