81 FR 4081 - Re-Consideration Concerning the Scope of Authorizations in a Presidential Permit Issued to Plains LPG Services, L.P. in May 2014 for Existing Pipeline Facilities on the Border of the United States and Canada Under the St. Clair River

DEPARTMENT OF STATE

Federal Register Volume 81, Issue 15 (January 25, 2016)

On May 23, 2014, the Department of State (Department) issued two Presidential Permits to Plains LPG Services, L.P. (Plains LPG) based on Plains LPG's acquisition of six existing pipelines under the St. Clair River and one existing pipeline under the Detroit River. Plains LPG had applied for new permits reflecting its ownership of the pipeline facilities, but it did not seek any change or expansion of the previous authorizations for the pipelines' use. The Presidential Permits issued in 2014 were intended to mirror previous authorizations from the 1970s, but the Department's records were incomplete, particularly with regard to the six pipelines under the St. Clair River in the vicinity of Marysville, Michigan. While Plains LPG's application asserted that the appropriate authorization was for the transport of any ``liquefied hydrocarbons,'' the Department issued one permit in 2014 for all of the St. Clair facilities authorizing the transport of ``light liquid hydrocarbons,'' which reflected the Department's understanding of how the St. Clair pipelines were actually used in the 1970s and more recently. After the new permits were issued, Plains LPG provided new information that alters the Department's understanding of the historic authorization for two of the six St. Clair pipelines. These two pipelines were constructed in 1918; they have an outer diameter of eight inches and have subsequently been fitted with five-inch diameter liners. Specifically, Plains LPG provided the Department with copies of correspondence from 1971 between the Department and Dome Petroleum Corp. (the previous owner). In that correspondence Dome informed the Department that it had acquired the two St. Clair pipelines and that it planned to use them to transport ``crude and other liquid hydrocarbons.'' The Department wrote back to Dome acknowledging the letter and the company's plans. The 1918 Presidential Permit had authorized the transport of crude oil. In light of this additional information, the Department is revisiting Plains LPG's 2012 application and considering whether to issue a new permit for these two St. Clair pipelines that would authorize the transport of crude and other liquid hydrocarbons, superseding the authorization in the 2014 Presidential Permit for the transport of only light liquid hydrocarbons. The Department published in the Federal Register a Notification of Receipt of Application for a Presidential Permit on December 5, 2012 (Federal Register Citation 77 FR 72430) and solicited public comment on the application for a 30-day period, during which time it received one public comment requesting the Department ensure the pipelines are maintained and operated under government environmental and safety oversight required by law. The Department notes that it is not reconsidering the scope of authorization for use of the other four Plains LPG pipelines under the St. Clair River, or the Plains LPG facilities under the Detroit River. Plains LPG is a Texas limited partnership with its principal place of business at 333 Clay Street, Suite 1600, Houston, Texas 77002. Plains LPG is a subsidiary of Plains All American Pipeline, L.P., a publicly traded master limited partnership organized under the laws of the State of Delaware and headquartered in Houston, Texas. The Department's consideration of the Presidential Permit for the St. Clair pipeline facilities is pursuant to E.O. 13337, which delegates to the Secretary of State the President's authority to receive applications for permits for the construction, connection, operation, or maintenance of a range of facilities at the borders of the United States, including pipelines for liquid petroleum products, and to issue or deny such Presidential Permits upon a national interest determination. The Department also is soliciting the views of concerned federal agencies. Consistent with E.O. 13337, the Department will determine whether issuance of a new Presidential Permit for two of the St. Clair Pipeline border facilities, as discussed in this notice, would serve the U.S. national interest.

[Federal Register Volume 81, Number 15 (Monday, January 25, 2016)]
[Notices]
[Pages 4081-4082]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01419]


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DEPARTMENT OF STATE

[Public Notice: 9422]


Re-Consideration Concerning the Scope of Authorizations in a 
Presidential Permit Issued to Plains LPG Services, L.P. in May 2014 for 
Existing Pipeline Facilities on the Border of the United States and 
Canada Under the St. Clair River

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: On May 23, 2014, the Department of State (Department) issued 
two Presidential Permits to Plains LPG Services, L.P. (Plains LPG) 
based on Plains LPG's acquisition of six existing pipelines under the 
St. Clair River and one existing pipeline under the Detroit River. 
Plains LPG had applied for new permits reflecting its ownership of the 
pipeline facilities, but it did not seek any change or expansion of the 
previous authorizations for the pipelines' use. The Presidential 
Permits issued in 2014 were intended to mirror previous authorizations 
from the 1970s, but the Department's records were incomplete, 
particularly with regard to the six pipelines under the St. Clair River 
in the vicinity of Marysville, Michigan. While Plains LPG's application 
asserted that the appropriate authorization was for the transport of 
any ``liquefied hydrocarbons,'' the Department issued one permit in 
2014 for all of the St. Clair facilities authorizing the transport of 
``light liquid hydrocarbons,'' which reflected the Department's 
understanding of how the St. Clair pipelines were actually used in the 
1970s and more recently.
    After the new permits were issued, Plains LPG provided new 
information that alters the Department's understanding of the historic 
authorization for two of the six St. Clair pipelines. These two 
pipelines were constructed in 1918; they have an outer diameter of 
eight inches and have subsequently been fitted with five-inch diameter 
liners. Specifically, Plains LPG provided the Department with copies of 
correspondence from 1971 between the Department and Dome Petroleum 
Corp. (the previous owner). In that correspondence Dome informed the 
Department that it had acquired the two St. Clair pipelines and that it 
planned to use them to transport ``crude and other liquid 
hydrocarbons.'' The Department wrote back to Dome acknowledging the 
letter and the company's plans. The 1918 Presidential Permit had 
authorized the transport of crude oil.
    In light of this additional information, the Department is 
revisiting Plains LPG's 2012 application and considering whether to 
issue a new permit for these two St. Clair pipelines that would 
authorize the transport of crude and other liquid hydrocarbons, 
superseding the authorization in the 2014 Presidential Permit for the 
transport of only light liquid hydrocarbons. The Department published 
in the Federal Register a Notification of Receipt of Application for a 
Presidential Permit on December 5, 2012 (Federal Register Citation 77 
FR 72430) and solicited public comment on the application for a 30-day 
period, during which time it received one public comment requesting the 
Department ensure the pipelines are maintained and operated under 
government environmental and safety oversight required by law. The 
Department notes that it is not reconsidering the scope of 
authorization for use of the other four Plains LPG pipelines under the 
St. Clair River, or the Plains LPG facilities under the Detroit River.
    Plains LPG is a Texas limited partnership with its principal place 
of business at 333 Clay Street, Suite 1600, Houston, Texas 77002. 
Plains LPG is a subsidiary of Plains All American Pipeline, L.P., a 
publicly traded master limited partnership organized under the laws of 
the State of Delaware and headquartered in Houston, Texas.
    The Department's consideration of the Presidential Permit for the 
St. Clair pipeline facilities is pursuant to E.O. 13337, which 
delegates to the Secretary of State the President's authority to 
receive applications for permits for the construction, connection, 
operation, or maintenance of a range of facilities at the borders of 
the United States, including pipelines for liquid petroleum products, 
and to issue or deny such Presidential Permits upon a national interest 
determination. The Department also is soliciting the views of concerned 
federal agencies. Consistent with E.O. 13337, the Department will 
determine whether issuance of a new Presidential Permit for two of the 
St. Clair Pipeline border facilities, as discussed in this notice, 
would serve the U.S. national interest.

DATES: Interested parties are invited to submit comments within 30 days 
of the publication date of this notice on http://www.regulations.gov 
with regard to whether issuing a new Presidential Permit for two of the 
St. Clair pipelines authorizing the transport of crude and other liquid 
hydrocarbons would serve the national interest. To submit a comment, go 
to http://www.regulations.gov, enter the title of

[[Page 4082]]

this Notice into the search field and follow the prompts.
    Comments are not private. They will be posted on the site. The 
comments will not be edited to remove identifying or contact 
information, and the State Department cautions against including any 
information that one does not want publicly disclosed. The State 
Department requests that any party soliciting or aggregating comments 
received from other persons for submission to the State Department 
inform those persons that the State Department will not edit their 
comments to remove identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Office of Energy Diplomacy, Energy 
Resources Bureau (ENR/EDP/EWA) Department of State 2201 C St. NW., Ste 
4428, Washington, DC 20520, Attn: Sydney Kaufman, Tel: 202-647-2041. 
Email: [email protected].

SUPPLEMENTARY INFORMATION: Additional information concerning the St. 
Clair pipeline facilities can be found at http://www.state.gov/e/enr/applicant/applicants/index.htm. Documents related to the Department of 
State's review of the application for a Presidential Permit can be 
found at http://www.state.gov/e/enr/applicant.

    Dated: January 15, 2016.
Chris Davy,
Deputy Director, Energy Resources Bureau, Energy Diplomacy, Bureau of 
Energy Resources, U.S. Department of State.
[FR Doc. 2016-01419 Filed 1-22-16; 8:45 am]
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