[Federal Register Volume 75, Number 188 (Wednesday, September 29, 2010)]
[Notices]
[Pages 60095-60097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24389]


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DEPARTMENT OF ENERGY

[FE Docket No. 10-110-LNG]


Sempra LNG Marketing, LLC; 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 September 2, 
2010, by Sempra LNG Marketing, LLC (Sempra), requesting blanket 
authorization to export up to a total of 250 billion cubic feet (Bcf) 
of foreign sourced liquefied natural gas (LNG) for a two-year period 
commencing on February 1, 2011. The LNG would be exported from the 
Cameron LNG Terminal (Cameron Terminal) owned by Sempra's affiliate, 
Cameron LNG, LLC, in Cameron Parish, Louisiana 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, 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 no later than 4:30 p.m., 
Eastern time, October 29, 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 Marc Talbert, 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, U.S. Department of Energy, Office of General Counsel, 
Fossil Energy and Energy Efficiency, Forrestal Building, Room 6B-159, 
1000 Independence Ave., SW., Washington, DC 20585, (202) 586-3397.

SUPPLEMENTARY INFORMATION:

Background

    Sempra, a Delaware limited liability company, is a wholly-owned 
subsidiary of Sempra LNG, a Delaware corporation. Sempra LNG, through 
its other subsidiaries, owns and operates LNG receipt and storage 
terminals in North America, including the Cameron Terminal in Cameron 
Parish, Louisiana.
    Sempra is engaged in the business of purchasing and marketing 
supplies of LNG. Sempra is a customer of the Cameron Terminal. On June 
22, 2010, FE issued DOE/FE Order No. 2806, which granted Sempra blanket 
authorization to import LNG from various international sources for a 
two-year period commencing on September 1, 2010.

Current Application

    In the instant application, Sempra is seeking blanket authorization 
to export LNG from the Cameron Terminal that has been previously 
imported into the United States from foreign sources. Sempra requests 
this authority over a two-year period in an amount up to 250 billion 
cubic feet (Bcf) of natural gas. Sempra requests the blanket 
authorization provide for export 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.
    Sempra states it uses its blanket DOE/FE LNG import authorization 
and its capacity in the Cameron Terminal to receive, store and send out 
to domestic markets cargoes of LNG that have been imported from foreign 
countries. Sempra states that its requested blanket export 
authorization would provide Sempra the additional option of exporting 
volumes of foreign-sourced LNG that are not needed to service the 
domestic market. Sempra states that it is not proposing, and is not 
seeking authorization to export any domestically produced natural gas 
or LNG. This application seeks authorization only to export LNG that 
has been previously imported into the United States.
    Sempra asserts that no facility modifications or additions are 
required in order for Sempra to export foreign-sourced LNG from the 
Cameron Terminal. FE takes notice that on September 3, 2010, Cameron 
LNG, LLC, the owner and operator of the Cameron Terminal, filed a 
petition under section 3(a) of the NGA with the Federal Energy 
Regulatory Commission to amend the authorizations issued September 11, 
2003, in Docket No. CP02-378-000 for the additional purpose of 
exporting foreign-sourced LNG.

Public Interest Considerations

    Sempra states that the requested blanket export authorization will 
allow Sempra to purchase LNG at prevailing international prices for 
import to the United States, even when prices in other markets may be 
higher, by giving it the ability to store LNG at the Cameron Terminal 
and later sell it in the most competitive market. Sempra states that

[[Page 60096]]

this ability to react to changing market conditions by either importing 
LNG for sale in the United States or importing LNG for subsequent 
export to other markets will enhance the potential supply and moderate 
the price of natural gas in the U.S. market. Sempra states that when 
natural gas supplies are in balance with domestic demand, LNG will be 
imported and used to supplement domestic natural gas supplies. Sempra 
states that when there is a surplus of domestic natural gas supplies, 
as at the present time, there will be the opportunity to import LNG 
with the ability to later export it to serve other markets. Sempra 
states that since only foreign-sourced LNG would be exported, the 
authorization would not negatively affect the availability of domestic 
natural gas supplies.
    In support of its application, Sempra states that Section 3 of the 
NGA provides that applications to export natural gas to foreign 
countries will be authorized unless there is a finding that such 
exports ``will not be consistent with the public interest.'' \1\ Sempra 
states, in reviewing an export application, FE applies the principles 
set forth in DOE Delegation Order No. 0204-111, which focuses primarily 
on the domestic need for the gas to be exported and the Secretary of 
Energy's natural gas policy guidelines.\2\ Sempra states that DOE/FE 
has recently issued blanket LNG export authorizations to other 
applicants, in each case finding that existing domestic supplies are 
sufficient to serve U.S. markets, without reliance on imported LNG 
supplies.
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    \1\ 15 U.S.C. 717b.
    \2\ See 49 FR 6684, February 22, 1984.
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    Sempra states that in DOE/FE Order No. 2795, which granted Cheniere 
Marketing, LLC (Cheniere) blanket authorization to export previously 
imported foreign-sourced LNG, FE found that ``United States consumers 
presently 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 [Cheniere] seeks to 
export.'' \3\ Sempra also states that in support of that finding, DOE/
FE cited, among other sources, both the DOE 2010 Annual Energy Outlook 
and additional independently produced publicly available data. Sempra 
states that in light of the sufficiency and diversity of domestic 
supplies, and the benefits described above that would result from the 
ability to export foreign-sourced LNG, Sempra states the requested 
blanket authorization is consistent with the public interest.
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    \3\ Cheniere, DOE/FE Order No. 2795, June 1, 2010 at 7.
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Environmental Impact

    Sabine states that no new facilities or modification to any 
existing facilities at the Cameron Terminal would be required in order 
for Sempra to export LNG from that facility. Sempra asserts that 
exports of LNG from the Cameron Terminal also would not increase the 
number of LNG carriers that the Cameron Terminal is designed and 
authorized to accommodate. Finally, Sempra states that approval of this 
application would therefore not constitute a federal action 
significantly affecting the human environment within the meaning of the 
National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq.

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 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. Parties that may oppose this application should 
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

    You may submit comments in electronic form on the Federal 
eRulemaking Portal at http://www.regulations.gov. Follow the on-line 
instructions. Submit comments under FE Docket No. 10-110-LNG. DOE/FE 
suggests that you carefully review information provided in your 
submission, and include only information that you want publicly 
disclosed. You may not electronically file a protest, motion to 
intervene or notice of intervention, but may do so using the following 
process to submit these filings.
    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 part 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 Sempra 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

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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. In addition, any electronic comments 
filed will also be available at: http://www.regulations.gov.

    Issued in Washington, DC, on September 23, 2010.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas 
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2010-24389 Filed 9-28-10; 8:45 am]
BILLING CODE 6450-01-P