[Federal Register Volume 80, Number 73 (Thursday, April 16, 2015)]
[Notices]
[Pages 20482-20484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-08760]


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DEPARTMENT OF ENERGY

[FE Docket No. 15-33-LNG]


Bear Head LNG Corporation and Bear Head LNG (USA), LLC; 
Application for Long-Term, Multi-Contract Authorization To Export 
Domestically Produced Natural Gas Through Canada to Non-Free Trade 
Agreement Countries After Liquefaction for a 25-Year Term

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 
February 25, 2015, by Bear Head LNG Corporation and Bear Head LNG 
(USA), LLC (collectively, Bear Head),\1\ requesting long-term, multi-
contract authorization to export domestically produced natural gas as 
follows: (i) To export the natural gas by pipeline to Canada at the 
United States-Canada border (at a point near Calais, Maine, and St. 
Stephen, New Brunswick, respectively) on the Maritimes & Northeast 
(M&N) Pipeline in a volume of 440 billion cubic feet per year (Bcf/yr), 
or approximately 1.2 Bcf per day (Bcf/d); \2\ (ii) to use approximately 
42.4 Bcf/yr of the U.S.-sourced natural gas as feedstock in a Canadian 
natural gas liquefaction and export facility currently being developed 
by Bear Head within the Point Tupper/Bear Head Industrial Park near the 
town of Port Hawksbury, on the Straight of Canso, in Richmond County, 
Cape Breton, Nova Scotia, Canada (Project); \3\ and (iii) to export a 
portion of the U.S.-sourced natural gas in the form of LNG in a volume 
equivalent to approximately 397.6 Bcf/yr of natural gas (1.1 Bcf/d) by 
vessel from Nova Scotia, Canada, to one or more countries with which 
the United States does not have a free trade agreement (FTA) requiring 
national treatment for trade in natural gas and with which trade is not 
prohibited by U.S. law or policy (non-FTA countries).\4\ Only Bear 
Head's proposed export of LNG produced from U.S-sourced natural gas to 
non-FTA countries is subject to this Notice. Bear Head states that its 
proposed Project and LNG exports will not involve the construction of 
any facilities in the

[[Page 20483]]

United States giving rise to cognizable effects under the National 
Environmental Policy Act (NEPA), 42 U.S.C. 4321, et seq., but may 
require modification and expansion of the M&N Pipeline system, which 
Bear Head expects will interconnect with the Project's proposed 
pipeline header near Goldboro, Nova Scotia, for the delivery of natural 
gas feedstock to the Project.\5\ Bear Head requests the authorization 
for a 25-year term to commence on the earlier of the date of first 
export or 10 years from the date the authorization is granted. Bear 
Head seeks to export this LNG on its own behalf and as agent for other 
entities who hold title to the LNG at the time of export. The 
Application was filed under section 3 of the Natural Gas Act (NGA). 
Additional details can be found in Bear Head's Application, posted on 
the DOE/FE Web site at: https://cms.doe.gov/sites/prod/files/2015/04/f21/15_33_lng_fta_nfta.pdf.
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    \1\ Bear Head states that Bear Head Corp. is a Canadian company 
incorporated pursuant to the laws of Nova Scotia, and that Bear Head 
(USA) is a Delaware limited liability company. Both have their 
principal place of business in Houston, Texas, and both are wholly-
owned indirect subsidiaries of Liquefied Natural Gas Limited, a 
publicly listed Australian company based in Perth, Australia.
    \2\ Bear Head refers to this requested authorization as the ``NG 
Authorization.'' Bear Head states that the M&N Pipeline is operated 
by Maritimes & Northeast Pipeline, L.L.C. in the United States and 
by its Canadian pipeline affiliate, Maritimes & Northeast Pipeline 
Limited Partnership, in Canada.
    \3\ See Application at 1 n.3 (``approximately 42.4 Bcf/y of the 
natural gas volume proposed to be exported will be consumed in 
Canada and not exported as LNG [liquefied natural gas]''); id. at 12 
(description of project).
    \4\ In the Application, Bear Head also requests authorization to 
export U.S.-sourced LNG to any nation that currently has, or in the 
future may enter into, a FTA requiring national treatment for trade 
in natural gas (FTA countries). DOE/FE will review Bear Head's 
request for a FTA export authorization separately pursuant to NGA 
Sec.  3(c), 15 U.S.C. 717b(c). Additionally, on January 23, 2015, 
Bear Head filed a separate application with DOE/FE requesting 
authorization to access certain Canadian natural gas supplies, in a 
volume up to 250 Bcf/yr, that it states must flow through the United 
States due to the configuration of existing North American pipeline 
infrastructure. Application at 2-3 n.7. Bear Head refers to this 
requested authorization as the ``Canadian NG authorization.'' Id. 
That application is pending before DOE/FE in FE Docket No. 15-14-NG, 
and is the subject of a notice being published in the Federal 
Register concurrently with this Notice.
    \5\ See Application at 4-5 & n.18.
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    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 using procedures detailed in the Public Comment 
Procedures section no later than 4:30 p.m., Eastern time, June 15, 
2015.

ADDRESSES: 
    Electronic Filing of Comments Using Online Form: http://www.energy.gov/node/1044731/.
    Electronic Filing of Protests, Motions To Intervene, and Notices of 
Intervention: <a href="/cdn-cgi/l/email-protection#4f292a3d282e3c0f273e612b202a61282039"><span class="__cf_email__" data-cfemail="04626176636577446c752a606b612a636b72">[email protected]</span></a>.
    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), 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 Benjamin Nussdorf, 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) 586-7991.
    Edward Myers or Cassandra Bernstein, U.S. Department of Energy (GC-
76), Office of the Assistant General Counsel for Electricity and Fossil 
Energy, Forrestal Building, 1000 Independence Avenue SW., Washington, 
DC 20585, (202) 586-3397; (202) 586-9793.

SUPPLEMENTARY INFORMATION: 

DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a), and DOE will consider any issues required by 
law or policy. To the extent determined to be relevant, these issues 
will include the domestic need for the natural gas proposed to be 
exported, the adequacy of domestic natural gas supply, U.S. energy 
security, and the cumulative impact of the requested authorization and 
any other LNG export application(s) previously approved on domestic 
natural gas supply and demand fundamentals. DOE may also consider other 
factors bearing on the public interest, including the impact of the 
proposed exports on the U.S. economy (including GDP, consumers, and 
industry), job creation, the U.S. balance of trade and international 
considerations; and whether the authorization is consistent with DOE's 
policy of promoting competition in the marketplace by allowing 
commercial parties to freely negotiate their own trade arrangements.
    Additionally, DOE will consider the following environmental 
documents:
    <bullet> Addendum to Environmental Review Documents Concerning 
Exports of Natural Gas From the United States, 79 FR 48132 (Aug. 15, 
2014); \6\ and
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    \6\ The Addendum and related documents are available at: http://energy.gov/fe/draft-addendum-environmental-review-documents-concerning-exports-natural-gas-united-states.
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    <bullet> Life Cycle Greenhouse Gas Perspective on Exporting 
Liquefied Natural Gas From the United States, 79 FR 32260 (June 4, 
2014).\7\
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    \7\ The Life Cycle Greenhouse Gas Report is available at: http://energy.gov/fe/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states.
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Parties that may oppose this Application should address these issues in 
their comments and/or protests, as well as other issues deemed relevant 
to the Application.
    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 environmental 
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. Due to the complexity of the issues raised by the 
Applicant, interested parties will be provided 60 days from the date of 
publication of this Notice in which to submit their comments, protests, 
motions to intervene, or notices of intervention.
    Any person wishing to become a party to the proceeding must file a 
motion to intervene or notice of intervention. 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, as supplemented below.
    Comments may be submitted using one of the following supplemental 
methods: (1) Submitting the comments using the online form at http://www.energy.gov/node/1044731/; (2) mailing an original and three paper 
copies of the comments 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 comments to the Office of Oil 
and Gas Global Security and Supply at the address listed in ADDRESSES. 
For administrative efficiency, DOE/FE prefers comments to be filed 
electronically using the online form (method 1). However, for those 
commenters lacking access to the Internet, comments may be filed in 
hard copy using one of the other two methods identified above. All 
filings must include a reference to FE Docket No. 15-33-LNG.
    Protests, motions to intervene, and notices of intervention 
(including those consolidated with comments) may be submitted using one 
of the following supplemental methods: (1) Emailing the filing to 
<a href="/cdn-cgi/l/email-protection#482e2d3a2f293b082039662c272d662f273e"><span class="__cf_email__" data-cfemail="b5d3d0c7d2d4c6f5ddc49bd1dad09bd2dac3">[email protected]</span></a>, with FE Docket No. 15-33-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 Supply at the address 
listed in ADDRESSES. All filings must include a reference to FE Docket 
No. 15-33-LNG. Please note: If submitting a filing via email, please 
include all related documents and attachments (e.g., exhibits) in the 
original email correspondence. Please

[[Page 20484]]

do not include any active hyperlinks or password protection in any of 
the documents or attachments related to the filing. All electronic 
filings submitted to DOE must follow these guidelines to ensure that 
all documents are filed in a timely manner. Any hardcopy filing 
submitted greater than 50 pages in length must also include, at the 
time of the filing, a digital copy on disk of the entire submission.
    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. 
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 
Division of Natural Gas Regulatory Activities 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 April 10, 2015.
John A. Anderson,
Director, Office of Oil and Gas Global Security and Supply, Office of 
Oil and Natural Gas.
[FR Doc. 2015-08760 Filed 4-15-15; 8:45 am]
 BILLING CODE 6450-01-P


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