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[Federal Register: July 1, 2010 (Volume 75, Number 126)]
[Notices]               
[Page 38092-38093]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jy10-62]                         

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DEPARTMENT OF ENERGY

[FE Docket No. 10-57-LNG]

 
The Dow Chemical 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 (Application), filed on 
May 26, 2010, by The Dow Chemical Company (Dow), 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 390 billion cubic feet (Bcf) of natural gas on 
a short-term or spot market basis. The LNG would be exported from 
existing facilities 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. Dow seeks to export the LNG over 
a two-year period commencing on the date of the authorization. The 
application was filed under section 3 of the Natural Gas Act (NGA), as 
amended by section 201 of the Energy Policy Act of 1992. 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 in ADDRESSES no later than 
4:30 p.m., e.t., August 2, 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 Lisa Tracy, 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 Electricity and Fossil Energy, Forrestal Building, 
Room 6B-159, 1000 Independence Ave. SW., Washington, D.C. 20585, (202) 
586-3397.

SUPPLEMENTARY INFORMATION:

Background

    Dow is a Delaware corporation with its principal place of business 
in Midland, Michigan. Dow is an international chemical and plastics 
manufacturing company with operations in a number of U.S. states. Dow 
owns and operates a large petrochemical manufacturing facility in 
Freeport, Texas, which is in close proximity to the LNG import/export 
terminal owned and operated by Freeport LNG Development, L.P. (FLNG) on 
Quintana Island, Texas. Dow contracted terminal capacity from FLNG for 
a twenty-year period beginning in July 2008 in order to secure natural 
gas supplies for various operations at its Freeport petrochemical 
facility. Dow's Freeport facility has the capability to receive 
regasified LNG from the FLNG terminal via several pipelines that extend 
directly to its petrochemical manufacturing plant.
    On February 25, 2010, FE granted Dow blanket authorization to 
import and export natural gas from and to Canada and Mexico and to 
import LNG from various international sources for a two-year term 
beginning on June 1, 2010.\1\ Under the terms of the blanket 
authorization, the LNG may be imported to any LNG receiving facility in 
the United States or its territories.
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    \1\ The Dow Chemical Company, DOE/FE Order No. 2754 issued 
February 25, 2010.
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Current Application

    In the instant application, Dow is seeking blanket authorization to 
export from the FLNG 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 
over a two-year period, on a short-term or spot market basis, in an 
amount up to the equivalent of 390 Bcf of natural gas. Dow further 
requests that the authorization extend to LNG supplies imported from 
foreign sources to which Dow acquires title, as well as to LNG supplies 
imported from foreign sources that Dow may export on behalf of other 
entities who themselves hold title. Dow states that it does not seek 
authorization to export domestically-produced natural gas.

Public Interest Considerations

    In support of its application, Dow 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.'' \2\ Dow states that section 3 thus creates 
a statutory presumption in favor of a properly framed export 
application.\3\ Dow states further that the public interest 
determination is guided by DOE Delegation Order No. 0204-111, which 
provides that the domestic need for natural gas is the principal factor 
to be considered when evaluating an export application.\4\
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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 13 (April 2, 1999), citing 
Panhandle Producers and Royalty Owners Association v. ERA, 822 F.2d 
1105, 1111 (DC Cir. 1987).
    \4\ Id at 14.
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    As detailed in the application, Dow states the blanket export 
authorization requested by Dow satisfies the public interest standard 
for the following

[[Page 38093]]

reasons. Dow states that the LNG that may be exported pursuant to the 
blanket authorization requested in the Application is not needed to 
meet domestic demand. Dow states that granting the requested export 
authorization will facilitate the importation of LNG into the United 
States. Dow also states that granting the requested export 
authorization will not reduce domestically-produced natural gas 
supplies. Finally, Dow states that granting the requested export 
authorization will have positive international effects. Further details 
can be found in the Application.

Environmental Impact

    Dow states that its requested export authorization does not raise 
any environmental concerns. Dow states that FERC performed an 
environmental review under the National Environmental Policy Act 
(NEPA), with DOE acting as a cooperating agency, prior to granting FLNG 
the authority to modify its LNG terminal facilities to enable LNG 
exports as well as imports. Dow states that DOE/FE relied on such NEPA 
review and found it to be sufficient in the granting of FLNG's 
application for blanket authority to export previously imported LNG \5\ 
as well as the granting of authority to ConocoPhillips Company to 
export previously imported LNG from the FLNG terminal.\6\ Dow asserts 
that consequently, the same conclusion is applicable to this 
Application insofar as the blanket authorization requested by Dow is 
substantially identical to the blanket authorization granted to FLNG 
and ConocoPhillips Company.
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    \5\ Freeport LNG Development, L.P., Order No. 2644, June 8, 2009 
at p. 12.
    \6\ ConocoPhillips Company, DOE/FE Order No. 2731, November 30, 
2009 at p. 11.
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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.
    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 Dow is available for inspection and 
copying in the Office of Oil and Gas Global Security and Supply docket 
room, 3E-042, 1000 Independence Avenue, SW., Washington, DC 20585. 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 June 28, 2010.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2010-16044 Filed 6-30-10; 8:45 am]
BILLING CODE 6450-01-P
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