Federal Register / Vol. 78, No. 238 / Wednesday, December 11, 2013 / Notices 75337 

Dated: December 4, 2013. 

N.A. Hagerty-Ford, 

Commander, Office of the Judge Advocate 

General, U.S. Navy, Federal Register Liaison 

Officer. 

[FR Doc. 2013–29517 Filed 12–10–13; 8:45 am] 

BILLING CODE 3810–FF–P 

DEPARTMENT OF ENERGY 

[FE Docket No. 13–116–LNG] 

Eos LNG LLC; Application for LongTerm Authorization To Export 

Liquefied Natural Gas Produced From 

Domestic Natural Gas Resources to 

Non-Free Trade Agreement Countries 

for a 25-Year Period 

AGENCY: Office of Fossil Energy, DOE. 

ACTION: Notice of application. 

SUMMARY: The Office of Fossil Energy 

(FE) of the Department of Energy (DOE) 

gives notice of receipt of an application 

(Application) filed on August 23, 2013, 

by Eos LNG LLC (Eos), requesting longterm, multi-contract authorization to 

export LNG produced from domestic 

sources in a volume equivalent to 

approximately 584 billion cubic feet per 

year (Bcf/yr) of natural gas, or 1.6 Bcf 

per day (Bcf/d). Eos seeks authorization 

to export the LNG for a 25-year term 

from the proposed Eos LNG Terminal 

(Project), to be located at the Port of 

Brownsville in Brownsville, Texas. Eos 

requests authorization to export LNG to 

any country with which the United 

States does not have a free trade 

agreement (FTA) requiring national 

treatment for trade in natural gas (nonFTA countries) with which trade is not 

prohibited by U.S. law or policy. Eos 

requests that this authorization 

commence on the earlier of the date of 

first export or 8 years from the date the 

authorization is granted. Eos requests 

this authorization both on its behalf and 

as agent for other parties who hold title 

to the LNG at the time of export. The 

Application was filed under section 3 of 

the Natural Gas Act (NGA), 15 U.S.C. 

717b. 

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, February 

10, 2014. 

ADDRESSES: Electronic Filing by email: 

fergas@hq.doe.gov. 

Regular Mail 

U.S. Department of Energy (FE–34), 

Office of Natural Gas Regulatory 

Activities, 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 Natural Gas Regulatory 

Activities, Office of Fossil Energy, 

Forrestal Building, Room 3E–042, 

1000 Independence Avenue SW., 

Washington, DC 20585. 

FOR FURTHER INFORMATION CONTACT: 

Larine Moore or Marc Talbert, U.S. 

Department of Energy (FE–34), Office 

of Natural Gas Regulatory Activities, 

Office of Fossil Energy, Forrestal 

Building, Room 3E–042, 1000 

Independence Avenue SW., 

Washington, DC 20585, (202) 586– 

9478; (202) 586–7991. 

Edward Myers, U.S. Department of 

Energy, Office of the Assistant 

General Counsel for Electricity and 

Fossil Energy, Forrestal Building, 

Room 6B–256, 1000 Independence 

Avenue SW., Washington, DC 20585, 

(202) 586–3397. 

SUPPLEMENTARY INFORMATION: 

Background 

Eos is a Delaware limited liability 

company with its principal place of 

business in Boston, Massachusetts. Eos 

states that it qualifies as an African 

American minority-owned business. 

Eos’s principal executives are Kent 

Strong, Eza Gadson, and Andrew 

Kunian. Eos states that it has recruited 

an LNG team to manage logistics and 

commercial operations of the venture. 

Eos proposes to develop, own, and 

operate a natural gas liquefaction 

facility and LNG export terminal at the 

Port of Brownsville in Brownsville, 

Texas. The Application includes a copy 

of a signed option agreement between 

Eos and the Brownsville Navigation 

District for the lease by Eos of a 15 acre 

tract of land. Eos states that the site will 

be based on a floating liquefaction unit 

on a barge (FLNG) and an existing LNG 

tanker (utilized solely for storage) that 

are anchored to a dock at the Port of 

Brownsville. Eos states that LNG tankers 

owned by third parties will be loaded 

via ship to ship transfer from Eos’s LNG 

storage tanker, then will set sail to 

buyers in Europe and Asia. Eos states 

that the FLNG is an autonomous floating 

structure that does not rely on any 

shore-based utilities to function. Eos 

states that the FLNG will be constructed 

in a shipyard and towed to its 

designated site, where it will be 

integrated with the gas source. Eos 

states that mooring and connection 

infrastructure requirements associated 

with the FLNG are minimal. 

Current Application 

Eos requests that DOE/FE grant a long 

term (in excess of two years), multicontract authorization to export LNG 

from export terminals to be constructed 

in Brownsville, Texas to any non-FTA 

country which has developed or in the 

future develops the capacity to import 

LNG, and with which trade is not 

prohibited by U.S. law or policy. Eos 

requests this authorization for a volume 

of LNG equivalent to approximately 1.6 

Bcf/d of natural gas (584 Bcf/yr) for a 

25-year term, up to 14.6 trillion cubic 

feet, beginning on the date of the first 

export or 8 years from the date of 

issuance of the authorization requested 

by this Application, whichever is 

sooner. 

Eos states that rather than enter into 

Liquefaction Tolling Agreements 

(LTAs), its business model will be to 

buy natural gas at the domestic price of 

the Henry Hub futures contract and sell 

it internationally at the prevailing 

market rate. However, if the profitability 

of this model declines, Eos states that it 

will maintain the option to convert to an 

LTA model, under which individual 

customers who hold title to the 

domestic natural gas will have the right 

to deliver that gas to Eos’s terminal and 

receive LNG in return. 

Eos requests long term, multi-contract 

authorization to engage in exports of 

LNG on its own behalf or as agent for 

others. Eos contemplates that the title 

holder at the point of export may be Eos 

or one of Eos’s customers, or another 

party that has purchased LNG from an 

LTA customer pursuant to a long term 

contract. Eos requests authorization to 

register each LNG title holder for whom 

Eos seeks to export as agent, and 

proposes that this registration include a 

written statement by the title holder 

acknowledging and agreeing to comply 

with all applicable requirements 

included by DOE/FE in Eos’s export 

authorization, and to include those 

requirements in any subsequent 

purchase or sale agreement entered into 

by that title holder. In addition to its 

registration of any LNG title holder for 

whom Eos seeks to export as agent, Eos 

states that it will file under seal with 

DOE/FE any relevant long term 

commercial agreements between Eos 

and such LNG title holder, including 

LTAs, once they have been executed. 

Eos states that DOE/FE has previously 

found that this commitment conforms to 

the requirements of 10 CFR 590.202(b), 

which calls upon applicants to supply 

transaction information ‘‘to the extent 

practicable.’’ 

Eos states that the natural gas supply 

underlying the proposed exports will 


emcdonald on DSK67QTVN1PROD with NOTICES
75338 Federal Register / Vol. 78, No. 238 / Wednesday, December 11, 2013 / Notices 

come from the interconnected and 

highly liquid domestic market for 

natural gas. Eos states that while some 

of the proposed export supply may be 

secured through long term contracts, 

large volumes are likely to be acquired 

on the spot market. Eos states that the 

biggest market hub in North America, 

the Henry Hub, is located in southern 

Louisiana, and the Houston Ship 

Channel and Katy Hub provide 

flexibility to natural gas shippers in 

Texas. Eos states that it will be able to 

source the gas from these locations. Eos 

states that, alternatively, it will be able 

to contract directly with exploration and 

production companies such as 

Chesapeake Energy, Anadarko, Devon 

Energy, Encana, Southwest Energy, EOG 

Resources, and EQT Resources. Eos 

anticipates that several natural gas 

basins will supply the Project, including 

the Permian, Eagle Ford, Barnett, 

Woodford, and Haynesville-Bossier 

basins. Eos states that these basins are 

served by several pipelines that can 

transfer the natural gas to the Project. 

Eos states that pursuant to the 

National Environmental Policy Act 

(NEPA), the Federal Energy Regulatory 

Commission (FERC) will be the lead 

agency for environmental review. Eos 

requests conditional authorization to 

export LNG from the Project, pending 

FERC authorization to site, construct, 

and operate it. Eos states that such 

conditional authorizations are routinely 

issued by DOE/FE, which may review 

an application to determine whether a 

proposed authorization is in the public 

interest concurrent with FERC’s 

environmental impact review. Eos states 

that it requests that DOE/FE authorize 

the requested export of LNG produced 

from domestically sourced natural gas 

conditioned upon FERC’s authorization 

of the Project pursuant to NEPA. 

Public Interest Considerations 

Eos states that as a result of 

technological advances, huge reserves of 

domestic shale gas that were previously 

uneconomic to develop are now 

producing natural gas in many regions 

of the United States. Eos states that the 

United States is now estimated to have 

more natural gas resources than it can 

use in a century. Eos states that large 

volumes of domestic shale gas reserves 

and continued low production costs 

will enable the United States to export 

LNG while also meeting domestic 

demand for natural gas for decades. 

Eos states that as U.S. natural gas 

reserves and production have risen, U.S. 

natural gas prices have fallen to the 

point where they are the lowest in the 

world. Eos states that LNG prices in 

Asia are indexed to crude oil prices and 

are generally higher than elsewhere in 

the world. Eos states that the lack of 

international natural gas pipelines in 

Asia means that, from a practical 

standpoint, the industrialized Asian 

countries, including Japan, Korea, and 

Taiwan, are dependent upon LNG 

imports for their natural gas supplies. 

Eos states that while Europe receives 

pipeline gas from various sources, the 

long supply chains and inflexibility of 

European markets have made 

diversification of supply a high priority. 

Eos states that competitively priced 

LNG supplies from the United States 

will play a significant role in this 

diversification. Eos states that domestic 

natural gas prices in the United States 

are projected to remain low relative to 

European and Asian markets far into the 

future, making exports of LNG by vessel 

a viable long term opportunity for the 

United States. 

Eos states that a grant of the 

Application will serve the public 

interest in several respects. These 

include: (1) Support to United States 

energy security; (2) significant 

environmental benefits due to 

substitution of cleaner burning natural 

gas for coal or oil; (3) direct and indirect 

job creation; (4) significant economic 

stimulus, including growing the tax base 

and increasing overall economic 

activity; and (5) material improvement 

in the United States’s balance of trade. 

Eos states that these benefits will be 

obtained with only a minimal effect on 

domestic natural gas prices. Eos states 

that at current and forecasted rates of 

demand, U.S. natural gas reserves will 

meet demand for 100 years. Eos states 

that the requested export authorization 

will allow the United States to benefit 

now from natural gas resources that may 

not otherwise be produced for many 

decades. 

Finally, Eos asks that, in its review of 

the Application, DOE/FE consider the 

status of Eos as an African-American 

minority-owned enterprise. Eos refers to 

Executive Orders 10925 and 11625 in 

support of this request. According to 

Eos, Executive Order 10925 stated that 

‘‘it is the policy of the executive branch 

of the Government to encourage by 

positive measures equal opportunity for 

all qualified persons within the 

Government.’’ Eos states that Executive 

Order 11625 sought the participation of 

all Federal departments and agencies in 

an increased minority enterprise effort 

and directed each Federal department 

and agency to continue all current 

efforts to foster and promote minority 

business enterprises. In particular, Eos 

asks that DOE/FE consider the adoption 

by the Federal Communications 

Commission of a policy of granting 

preferences to minority-owned 

businesses applying for radio and 

television licenses. This policy, 

according to Eos, was upheld by the 

Supreme Court in Metro Broadcasting v. 

FCC, 497 US 547 (1990). 

Additional details can be found in 

Eos’s Application, which is posted on 

the DOE/FE Web site at: http://

www.fossil.energy.gov/programs/

gasregulation/authorizations/2013_

applications/EOS_LNG_LLC_-_FE._DK._

-_13-116-LNG.html. 

DOE/FE Evaluation 

The Application will be reviewed 

pursuant to section 3(a) of the NGA, 15 

U.S.C. 717b(a), and the authority 

contained in DOE Delegation Order No. 

00–002.00N (July 11, 2013) and DOE 

Redelegation Order No. 00–002.04F 

(July 11, 2013). In reviewing this LNG 

export Application, DOE will consider 

any issues required by law or policy. To 

the extent determined to be relevant or 

appropriate, these issues will include 

the impact of LNG exports associated 

with this Application, and the 

cumulative impact of any other 

application(s) previously approved, on 

domestic need for the gas proposed for 

export, adequacy of domestic natural 

gas supply, U.S. energy security, and 

any other issues, including the impact 

on the U.S. economy (GDP), consumers, 

and industry, job creation, U.S. balance 

of trade, international considerations, 

and 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 the Application should address 

these issues in their comments and/or 

protests, as well as any other issues 

deemed relevant to the Application. 

NEPA requires DOE to give 

appropriate consideration to the 

environmental effects of its decisions. 

No final decision will be issued in this 

proceeding until DOE has met its 

environmental responsibilities. 

Due to the complexity of the issues 

raised by the Applicant, interested 

persons will be provided 60 days from 

the date of publication of this Notice in 

which to submit comments, protests, 

motions to intervene, notices of 

intervention, or motions for additional 

procedures. 

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 


emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 78, No. 238 / Wednesday, December 11, 2013 / Notices 75339 

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. 

Filings may be submitted using one of 

the following methods: (1) Emailing the 

filing to fergas@hq.doe.gov with FE 

Docket No. 13–116–LNG in the title 

line; (2) mailing an original and three 

paper copies of the filing to the Division 

of Natural Gas Regulatory Activities at 

the address listed in ADDRESSES; or (3) 

hand delivering an original and three 

paper copies of the filing to the Office 

of Natural Gas Regulatory Activities at 

the address listed in ADDRESSES. All 

filings must include a reference to FE 

Docket No. 13–116–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 

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 in length than 50 

pages 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. 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 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 December 5, 

2013. 

John A. Anderson, 

Manager, Natural Gas Regulatory Activities, 

Office of Oil and Gas Global Security and 

Supply, Office of Fossil Energy. 

[FR Doc. 2013–29545 Filed 12–10–13; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF ENERGY 

[FE Docket No. 13–118–LNG] 

Barca LNG LLC; Application for LongTerm Authorization To Export 

Liquefied Natural Gas Produced From 

Domestic Natural Gas Resources to 

Non-Free Trade Agreement Countries 

for a 25-Year Period 

AGENCY: Office of Fossil Energy, DOE. 

ACTION: Notice of application. 

SUMMARY: The Office of Fossil Energy 

(FE) of the Department of Energy (DOE) 

gives notice of receipt of an application 

(Application) filed on August 23, 2013, 

by Barca LNG LLC (Barca), requesting 

long-term, multi-contract authorization 

to export LNG produced from domestic 

sources in a volume equivalent to 

approximately 584 billion cubic feet per 

year (Bcf/yr) of natural gas, or 1.6 Bcf 

per day (Bcf/d). Barca seeks 

authorization to export the LNG for a 

25-year term from the proposed Barca 

LNG Terminal (Project), to be located at 

the Port of Brownsville in Brownsville, 

Texas. Barca requests authorization to 

export LNG to any country with which 

the United States does not have a free 

trade agreement (FTA) requiring 

national treatment for trade in natural 

gas (non-FTA countries) with which 

trade is not prohibited by U.S. law or 

policy. Barca requests that this 

authorization commence on the earlier 

of the date of first export or 8 years from 

the date the authorization is granted. 

Barca requests this authorization both 

on its behalf and as agent for other 

parties who hold title to the LNG at the 

time of export. The Application was 

filed under section 3 of the Natural Gas 

Act (NGA), 15 U.S.C. 717b. 

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, February 

10, 2014. 

ADDRESSES: Electronic Filing by email: 

fergas@hq.doe.gov. 

Regular Mail 

U.S. Department of Energy (FE–34), 

Office of Natural Gas Regulatory 

Activities, 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 Natural Gas Regulatory 

Activities, Office of Fossil Energy, 

Forrestal Building, Room 3E–042, 

1000 Independence Avenue SW., 

Washington, DC 20585. 

FOR FURTHER INFORMATION CONTACT: 

Larine Moore or Marc Talbert, U.S. 

Department of Energy (FE–34), Office 

of Natural Gas Regulatory Activities, 

Office of Fossil Energy, Forrestal 

Building, Room 3E–042, 1000 

Independence Avenue SW., 

Washington, DC 20585, (202) 586– 

9478; (202) 586–7991. 

Edward Myers, U.S. Department of 

Energy, Office of the Assistant 

General Counsel for Electricity and 

Fossil Energy, Forrestal Building, 

Room 6B–256, 1000 Independence 

Avenue SW., Washington, DC 20585, 

(202) 586–3397. 

SUPPLEMENTARY INFORMATION: 

Background 

Barca is a Delaware limited liability 

company with its principal place of 

business in Boston, Massachusetts. 

Barca states that it expects to qualify as 

a Service-Disabled Veteran Owned 

Business, as discussed below. Barca’s 

principal executives are Brendan Kelley, 

Mason Bridges, and Andrew Kunian. 


emcdonald on DSK67QTVN1PROD with NOTICES