Document ID: USCG-2015-0472-0004
Agency: uscg
Document Type: Notice
Title: Deepwater Port License Applications: Delfin LNG, LLC
Posted Date: 2015-07-29T04:00Z

[Federal Register Volume 80, Number 145 (Wednesday, July 29, 2015)]
[Notices]
[Pages 45270-45274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18594]

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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. USCG-2015-0472]

Deepwater Port License Application: Delfin LNG LLC, Delfin LNG 
Deepwater Port

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of intent; notice of public meeting; request for 
comments.

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SUMMARY: The Maritime Administration (MARAD), in coordination with the 
U.S. Coast Guard (USCG), will prepare an environmental impact statement 
(EIS) as part of the environmental review of the Delfin LNG LLC (Delfin 
LNG) deepwater port license application. The application proposes the 
ownership, construction, operation and eventual decommissioning of an 
offshore liquefied natural gas (LNG) deepwater port export facility 
that would be located in Federal waters within the Outer Continental 
Shelf (OCS) West Cameron Area, West Addition Protraction Area (Gulf of 
Mexico), approximately 37.4 to 40.8 nautical miles off the coast of 
Cameron Parish, Louisiana, in water depths ranging from approximately 
64 to 72 feet (19.5 to 21.9 meters). The deepwater port would consist 
of four semi-permanently moored floating liquefaction natural gas 
vessels (FLNGVs), and would reuse and repurpose two existing offshore 
natural gas pipelines: The former U-T Operating System (UTOS) pipeline 
and the High Island Operating System (HIOS) pipeline (see Summary of 
the Application for additional project specifics).
    The onshore components of the proposed deepwater port would be 
located in Cameron Parish, Louisiana and would be reviewed by the 
Federal Energy Regulatory Commission (FERC) under a separate 
authorization process (see FERC Docket No. CP15-490-000; 80 FR 30226 
(May 27, 2015)). The onshore facility would consist of reactivating 
approximately 1.1 miles of the existing UTOS pipeline; the addition of 
74,000 horsepower of new compression and associated metering and 
regulation facilities; the installation of new supply header pipelines 
(which would consist of 0.25 miles of new 42-inch pipeline to connect 
the former UTOS line to the new meter station); and 0.6 miles of new 
twin 30-inch pipelines between Transco Station 44 and the new 
compressor station site. Publication of this Notice of Intent (NOI) 
begins a 30 day scoping process that will help identify and determine

[[Page 45271]]

the scope of environmental issues to be addressed in the EIS. MARAD and 
the USCG will consider both the Delfin LNG deepwater port license 
application and the FERC application to be included in this review. For 
your convenience, we have included the Delfin LNG application to FERC 
under docket number USCG-2015-0472. This NOI requests public 
participation in the scoping process, provides information on how to 
participate and announces informational open houses and public meetings 
in Louisiana and Texas. Pursuant to the criteria provided in the 
Deepwater Port Act of 1974, as amended, 33 U.S.C. 1501 et seq. (the 
Act), both Louisiana and Texas are the Adjacent Coastal States for this 
application.

DATES: There will be two public scoping meetings held in connection 
with the application. The first public meeting will be held in Lake 
Charles, Louisiana on August 18, 2015, from 6 p.m. to 8 p.m. The second 
public meeting will be held in Beaumont, Texas on August 19, 2015, from 
6 p.m. to 8 p.m. Both public meetings will be preceded by an 
informational open house from 4 p.m. to 5:30 p.m.
    Each of the public meetings may end later than the stated time, 
depending on the number of persons wishing to speak. Additionally, 
materials submitted in response to this request for comments on the 
Delfin LNG deepwater port license application must reach the Federal 
Docket Management Facility as detailed below by August 28, 2015.

ADDRESSES: The open house and public meeting in Lake Charles, Louisiana 
will be held at the Lake Charles Civic Center, 900 Lakeshore Drive, 
Lake Charles, Louisiana 70601, telephone: 337-491-1256. The open house 
and public meeting in Beaumont, Texas will be held at the Holiday Inn 
Beaumont Plaza, 3950 Walden Road, Beaumont, Texas 77705, telephone: 
409-842-5995. Free parking is available at both the Lake Charles Civic 
Center and the Holiday Inn Beaumont Plaza locations.
    The public docket for USCG-2015-0472 is maintained by the U.S. 
Department of Transportation, Docket Management Facility, West 
Building, Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., 
Washington, DC 20590.
    The Federal Docket Management Facility accepts hand-delivered 
submissions, and makes docket contents available for public inspection 
and copying at this address between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays. The Federal Docket Management 
Facility's telephone number is 202-366-9329, the fax number is 202-493-
2251 and the Web site for electronic submissions or for electronic 
access to docket contents is http://www.regulations.gov. keyword search 
``USCG-2015-0472''.

FOR FURTHER INFORMATION CONTACT: Mr. Roddy Bachman, USCG, telephone: 
202-372-1451, email: Roddy.C.Bachman@uscg.mil, or Ms. Yvette M. Fields, 
MARAD, telephone: 202-366-0926, email: Yvette.Fields@dot.gov. For 
questions regarding viewing the Docket, call Docket Operations, 
telephone 202-366-9826.

SUPPLEMENTARY INFORMATION: 

Public Meeting and Open House

    We invite you to learn about the proposed deepwater port at any of 
the above informational open houses and to comment at any of the above 
public meetings on environmental issues related to the proposed 
deepwater port. Your comments will help us identify and refine the 
scope of the environmental issues to be addressed in the EIS.
    Speaker registrations will be available at the door. Speakers at 
the public scoping meetings will be recognized in the following order: 
Elected officials, public agencies, individuals or groups in the sign-
up order and then anyone else who wishes to speak.
    In order to allow everyone a chance to speak at a public meeting, 
we may limit speaker time, extend the meeting hours or both. You must 
identify yourself, and any organization you represent, by name. Your 
remarks will be recorded or transcribed for inclusion in the public 
docket.
    You may submit written material at a public meeting, either in 
place of or in addition to speaking. Written material must include your 
name and address and will be included in the public docket.
    Public docket materials will be made available to the public on the 
Federal Docket Management Facility Web site (see Request for Comments).
    Our public meeting locations are wheelchair-accessible. If you plan 
to attend an open house or public meeting and need special assistance 
such as sign language interpretation, non-English language translator 
services or other reasonable accommodation, please notify the USCG (see 
FOR FURTHER INFORMATION CONTACT) at least 5 business days in advance. 
Include your contact information as well as information about your 
specific needs.

Request for Comments

    We request public comments or other relevant information on 
environmental issues related to the proposed deepwater port. The public 
meeting is not the only opportunity you have to comment on the Delfin 
LNG deepwater port license application. In addition to or in place of 
attending a meeting, you can submit comments directly to the Federal 
Docket Management Facility during the public comment period (see 
DATES). We will consider all comments and material received during the 
30-day scoping period. The license application, comments and associated 
documentation as well as the draft and final EISs (when published) are 
available for viewing at the Federal Docket Management System (FDMS) 
Web site: http://www.regulations.gov under docket number USCG-2015-
0472.
    Public comment submissions should include:
     Docket number USCG-2015-0472.
     Your name and address.
    Submit comments or material using only one of the following 
methods:
     Electronically (preferred for processing) to the Federal 
Docket Management System (FDMS) Web site: http://www.regulations.gov 
under docket number USCG-2015-0472.
     By mail to the Federal Docket Management Facility (USCG-
2015-0472), U.S. Department of Transportation, West Building, Ground 
Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-
0001
     By personal delivery to the room and address listed above 
between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays.
     By fax to the Federal Docket Management Facility at 202-
493-2251.
    Faxed, mailed or hand delivered submissions must be unbound, no 
larger than 8\1/2\ by 11 inches and suitable for copying and electronic 
scanning. The format of electronic submissions should also be no larger 
than 8\1/2\ by 11 inches. If you mail your submission and want to know 
when it reaches the Federal Docket Management Facility, please include 
a stamped, self-addressed postcard or envelope.
    Regardless of the method used for submitting comments or material, 
all submissions will be posted, without change, to the FDMS Web site 
(http://www.regulations.gov) and will include any personal information 
you provide. Therefore, submitting this information to the docket makes 
it public. You may wish to read the Privacy and Use Notice that is 
available on the FDMS Web site and the Department of Transportation 
Privacy Act Notice that appeared in the Federal Register on April 11, 
2000 (65 FR 19477), see Privacy Act. You may

[[Page 45272]]

view docket submissions at the Federal Docket Management Facility or 
electronically on the FDMS Web site.

Background

    Information about deepwater ports, the statutes, and regulations 
governing their licensing, including the application review process, 
and the receipt of the current application for the proposed Delfin LNG 
deepwater port appears in the July 16, 2015 edition of the Federal 
Register. The ``Summary of the Application'' from that publication is 
reprinted below for your convenience.
    Consideration of a deepwater port license application includes 
review of the proposed deepwater port's impact on the natural and human 
environment. For the proposed deepwater port, USCG and MARAD are the 
co-lead Federal agencies for determining the scope of this review, and 
in this case, it has been determined that review must include 
preparation of an EIS. This NOI is required by 40 CFR 1501.7. It 
briefly describes the proposed action, possible alternatives and our 
proposed scoping process. You can address any questions about the 
proposed action, the scoping process or the EIS to the USCG project 
manager identified in this notice (see For Further Information 
Contact).

Proposed Action and Alternatives

    The proposed action requiring environmental review is the Federal 
licensing of the proposed deepwater port described in ``Summary of the 
Application'' below. The alternatives to licensing the proposed port 
are: (1) Licensing with conditions (including conditions designed to 
mitigate environmental impact), (2) proposed deepwater port site 
alternatives or (3) denying the application, which for purposes of 
environmental review is the ``no-action'' alternative.

Scoping Process

    Public scoping is an early and open process for identifying and 
determining the scope of issues to be addressed in the EIS. Scoping 
begins with this notice, continues through the public comment period 
(see DATES), and ends when USCG and MARAD have completed the following 
actions:
     Invites the participation of Federal, state, and local 
agencies, any affected Indian tribe, the applicant, in this case Delfin 
LNG, and other interested persons;
     Determines the actions, alternatives and impacts described 
in 40 CFR 1508.25;
     Identifies and eliminates from detailed study, those 
issues that are not significant or that have been covered elsewhere;
     Identifies other relevant permitting, environmental review 
and consultation requirements;
     Indicates the relationship between timing of the 
environmental review and other aspects of the application process; and
     At its discretion, exercises the options provided in 40 
CFR 1501.7(b).
    Once the scoping process is complete, USCG will prepare a draft EIS 
in conjunction with MARAD. Also, MARAD will publish a Federal Register 
notice announcing public availability of the draft EIS. (If you want 
that notice to be sent to you, please contact the USCG project manager 
identified in For Further Information Contact). You will have an 
opportunity to review and comment on the draft EIS. USCG will consider 
those comments and then prepare the final EIS. As with the draft EIS, 
we will announce the availability of the final EIS and once again, give 
you an opportunity for review and comment and include final public 
hearings as required by the Act.

Summary of the Application

    Delfin LNG is proposing to construct, own, operate, and eventually 
decommission a deepwater port (referred to hereafter as the Delfin 
deepwater port) in the Gulf of Mexico to liquefy domestically-sourced 
natural gas for export to nations with which the United States has a 
Free Trade Agreement (FTA) and with non-FTA nations.
    The proposed Delfin deepwater port has both onshore and offshore 
components. As previously described, the proposed Delfin deepwater port 
would be located in Federal waters within the OCS West Cameron Area, 
West Addition Protraction Area (Gulf of Mexico) approximately 37.4 to 
40.8 nautical miles off the coast of Cameron Parish, Louisiana, in 
water depths ranging from approximately 64 to 72 feet (19.5 to 21.9 
meters). The Delfin deepwater port would consist of four semi-
permanently moored FLNGVs located as follows: #1 (29[deg]8'13.1'' N./
93[deg]32'2.2'' W.), #2 (29[deg]6'13.6''N./93[deg]32'42.4'' W.), #3 
(29[deg]6'40.7'' N./93[deg]30'10.1'' W.), and #4 (29[deg]4'40.9'' N./
93[deg]30'51.8'' W.) located in West Cameron (WC) lease blocks 319, 
327, 328, and 334, respectively. Delfin LNG would reuse and repurpose 
two existing offshore natural gas pipelines, the former UTOS pipeline 
and the HIOS pipeline. Four new 30-inch diameter pipeline laterals, 
each approximately 6,400 feet in length, connecting the HIOS pipeline 
to each of the FLNGVs, would be constructed. In addition, a 700-foot 
42-inch diameter new pipeline would be constructed to bypass a platform 
at WC lease block 167 (WC 167) and connect the UTOS and HIOS pipelines. 
Feed gas would be supplied through the new pipeline laterals to each of 
the FLNGVs where it would be super cooled to produce LNG. The LNG would 
be stored onboard the FLNGVs and transferred via ship-to-ship transfer 
to properly certified LNG trading carriers. Each of the FLNGVs would be 
semi-permanently moored to four new weathervaning tower yoke mooring 
systems (TYMS).
    The onshore components in Cameron Parish, Louisiana are described 
specifically in an application submitted to FERC. The onshore 
components of the Delfin deepwater port will consist of constructing 
and operating a new natural gas compressor station, gas supply header 
and a metering station at an existing gas facility (see the FERC 
Application referenced below). The proposal would require: (1) 
Reactivation of approximately 1.1 miles of existing 42-inch pipeline, 
formerly owned by UTOS, which runs from Transcontinental Gas Pipeline 
Company Station No. 44 (Transco Station 44) to the mean highwater mark 
along the Cameron Parish Coast; (2) installation of 74,000 horsepower 
of new compression; (3) construction of 0.25 miles of 42-inch pipeline 
to connect the former UTOS line to the new meter station; and (4) 
construction of 0.6 miles of twin 30-inch pipelines between Transco 
Station 44 and the new compressor station.
    Onshore pipeline quality natural gas from the interstate grid would 
be sent to the existing, but currently idle, 42-inch UTOS pipeline. The 
gas transported through the UTOS pipeline would then bypass the 
existing manifold platform located at WC 167 via a newly installed 
pipeline segment, 700 feet in length, connecting to the existing 42-
inch HIOS pipeline.
    The bypass of the WC 167 platform would be trenched so that the top 
of the pipe is a minimum of 3 feet below the seafloor. From the bypass, 
the feed gas would then be transported further offshore using the HIOS 
pipeline portion leased by Delfin LNG between WC 167 and High Island 
A264. The existing UTOS and HIOS pipelines transect OCS Lease Blocks WC 
314, 318, 319, 327, and 335, and would transport feed gas from onshore 
to offshore (one-directional flow). Delfin LNG proposes to install four 
new lateral pipelines along the HIOS pipeline, starting approximately 
16.0 nautical miles south of the WC 167 platform. Each subsea lateral 
pipeline would be 30 inches in

[[Page 45273]]

diameter and approximately 6,400 feet in length, extending from the 
HIOS pipeline to the Delfin deepwater port. The maximum allowable 
operating pressure of the pipeline system (UTOS, bypass, HIOS and 
laterals) would be 1,250 pounds per square inch gauge (psig).
    The FLNGVs would receive pipeline quality natural gas via the 
laterals and TYMS where it would be cooled sufficiently to completely 
condense the gas and produce LNG. The produced LNG would be stored in 
International Maritime Organization (IMO) type B, prismatic, 
independent LNG storage tanks aboard each of the FLNGVs. Each vessel 
would have a total LNG storage capacity of 165,000 cubic meters (m\3\).
    An offloading mooring system would be provided on each FLNGV to 
moor an LNG trading carrier side-by-side for cargo transfer of LNG 
through loading arms or cryogenic hoses using ship-to-ship transfer 
procedures. LNG carriers would be moored with pilot and tug assist. The 
FLNGVs would be equipped with fenders and quick-release hooks to 
facilitate mooring operations. The offloading system would be capable 
of accommodating standard LNG trading carriers with nominal cargo 
capacities up to 170,000 m\3\. Delfin LNG estimates that the typical 
LNG cargo transfer operation would be carried out within 24 hours, 
including LNG trading carrier berthing, cargo transfer and sail-away. 
Approximately 31 LNG trading carriers are expected to visit each of the 
four FLNGVs per year for a total of up to 124 cargo transfer operations 
per year. Each LNG trading carrier would be assisted by up to three 
tugs during approach and mooring and up to two tugs while departing the 
Delfin deepwater port.
    The FLNGVs would be self-propelled vessels and have the ability to 
disconnect from the TYMS and set sail to avoid hurricanes or to 
facilitate required inspections, maintenance and repairs.
    In the nominal design case, each of the four FLNGVs would process 
approximately 330 million standard cubic feet per day (MMscfd), which 
would total 1.32 billion standard cubic feet per day (Bscf/d) of input 
feed gas for all four of the FLNGVs. Based on an estimated availability 
of 92 percent and allowance for consumption of feed gas during the 
liquefaction process, each FLNGV would produce approximately 97.5 
billion standard cubic feet per year (Bscf/y) of gas (or approximately 
2.0 million metric tonnes per annum [MMtpa]) for export in the form of 
LNG. Together, the four FLNGVs are designed to have the capability to 
export 390.1 Bscf/y of gas (or approximately 8.0 MMtpa) in the form of 
LNG.
    As detailed engineering and equipment specification advances during 
the design process and operating efficiencies are gained post-
commissioning, the liquefaction process could perform better than this 
nominal design case. It is therefore anticipated that LNG output, based 
on the high-side design case of 375 MMscfd of input feed gas, would be 
as much as approximately 110.8 Bscf/y of gas (or approximately 2.3 
MMtpa) for each FLNGV. Taken together, the four FLNGVs would be capable 
of exporting the equivalent of 443.3 Bscf/y of natural gas in the form 
of LNG. Therefore, Delfin LNG is requesting authorization to construct 
and operate facilities capable of exporting up to 443.3 Bscf/y of 
natural gas in the form of LNG (which equates to approximately 9.2 
MMtpa).
    The proposed Delfin deepwater port would take a modular 
implementation approach to allow for early market entry and accommodate 
market shifts. Offshore construction activities are proposed to begin 
at the end of first quarter of 2018 and would be completed in four 
stages, with each stage corresponding to the commissioning and 
operation of an FLNGV. The anticipated commissioning of FLNGV 1 is the 
third quarter of 2019 with start-up of commercial operation of FLNGV 1 
by the end of 2019. It is anticipated that FLNGVs 2 through 4 would be 
commissioned 12 months apart. Following this schedule and barring 
unforeseen events, the Delfin deepwater port would be completed and all 
four FLNGVs would be fully operational by the summer of 2022.

FERC Application

    The onshore component and nearshore pipeline component of the 
proposed Delfin deepwater port falls under the jurisdiction of and is 
processed under a separate authorization by FERC. On May 8, 2015, 
Delfin LNG filed an application with FERC to construct and operate the 
onshore/nearshore components of the proposed deepwater port. This 
application was noticed on FERC's Docket: No. CP15-490-000 on May 20, 
2015, and in the Federal Register Vol. 80, No. 101/Wednesday, May 27, 
2015/Notices. The following is an excerpt from FERC's Federal Register 
Notice:

    Take notice that on May 8, 2015 Delfin LNG LLC (Delfin LNG), 
1100 Louisiana Street, Houston, Texas 77002, filed in Docket No. 
CP15-490-000, an Application pursuant to section 7(c) of the 
Commission's Regulations under the Natural Gas Act and Parts 157 of 
the Federal Energy Regulatory Commission's (Commission) regulations 
requesting authorization to (1) reactivate approximately 1.1 miles 
of existing 42-inch pipeline formerly owned by U-T Offshore System 
(UTOS), which runs from Transcontinental Gas Pipeline Company 
Station No. 44 (Transco Station 44) to the mean highwater mark along 
the Cameron Parish Coast; (2) install 74,000 horsepower of new 
compression; (3) construct 0.25 miles of 42-inch pipeline to connect 
the former UTOS line to the new meter station; and (4) construct 0.6 
miles of twin 30-inch pipelines between Transco Station 44 and the 
new compressor station in Cameron Parrish, Louisiana that comprise 
the onshore portion of Delfin LNG's proposed deepwater port (DWP), 
an offshore liquefied natural gas facility located off the coast of 
Louisiana in the Gulf of Mexico, all as more fully set forth in the 
application, which is on file with the Commission and open to public 
inspection. Additionally, Delfin LNG requests a blanket construction 
certificate under Part 17, Subpart F of the Commission's 
regulations. This filing may be viewed on the Web at http://www.ferc.gov using the ``eLibrary'' link. Enter the docket number 
(excluding the last three digits) in the docket number field to 
access the document. For assistance, please contact FERC at 
FERCOnlineSupport@ferc.gov or call toll-free (866) 208-3676 or TYY, 
(202) 502-8659.

    It is important to note that the onshore facilities will connect 
with the offshore deepwater port facilities which are subject to the 
jurisdiction of MARAD and USCG. As previously discussed, Delfin LNG 
proposes to lease a segment of pipeline from HIOS that extends from the 
terminus of the UTOS pipeline offshore. Delfin LNG states in its 
application that HIOS will submit a separate application with FERC 
seeking authorization to abandon by lease its facilities to Delfin LNG. 
Because the review of the deepwater port proposal is the jurisdiction 
of MARAD and USCG, FERC has acknowledged receipt of the Delfin LNG 
application, provided under Docket No. CP15-490-000 on May 8, 2015; 
however, FERC will not begin processing the Delfin LNG application 
until such time that HIOS submits an abandonment application to FERC 
for review and processing. Accordingly, although the USCG and MARAD 
will commence review and processing of the Delfin deepwater port 
license application, upon the publication of this Notice of Intent, 
MARAD and USCG will not publish the draft EIS until FERC has received 
an application for abandonment of the HIOS pipeline and has begun to 
process Delfin's application for the construction and operation of the 
onshore components of the proposed deepwater port.

Privacy Act

    The electronic form of all comments received into the FDMS can be 
searched

[[Page 45274]]

by the name of the individual submitting the comment (or signing the 
comment, if submitted on behalf of an association, business, labor 
union, etc.). The Department of Transportation Privacy Act Statement 
can be viewed in the Federal Register published on April 11, 2000 
(Volume 65, Number 70, pages 19477-78) or by visiting http://www.regulations.gov.

(Authority: 33 U.S.C. 1501, et seq., 49 CFR 1.93(h)).

    Dated: July 24, 2015.
    By Order of the Maritime Administrator.

T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2015-18594 Filed 7-28-15; 8:45 am]
BILLING CODE 4910-81-P