81_FR_88149 81 FR 87915 - Record of Decision and Floodplain Statement of Findings for the Magnolia LNG, LLC Application To Export Liquefied Natural Gas to Non-Free Trade Agreement Countries

81 FR 87915 - Record of Decision and Floodplain Statement of Findings for the Magnolia LNG, LLC Application To Export Liquefied Natural Gas to Non-Free Trade Agreement Countries

DEPARTMENT OF ENERGY

Federal Register Volume 81, Issue 234 (December 6, 2016)

Page Range87915-87917
FR Document2016-29206

The U.S. Department of Energy (DOE) announces its decision in Magnolia LNG, LLC (Magnolia LNG), DOE/FE Docket No. 13-132-LNG, to issue DOE/FE Order No. 3909, granting final long-term, multi contract authorization for Magnolia LNG to engage in the export of domestically produced liquefied natural gas (LNG) from the proposed Magnolia LNG facility located near Lake Charles, Calcasieu Parish, Louisiana, in a volume equivalent to 394.2 Bcf/yr (equal to 1.08 Bcf/day) of natural gas for a term of 25 years. Magnolia LNG is seeking to export LNG from the terminal to countries with which the United States has not entered into a free trade agreement (FTA) that requires national treatment for trade in natural gas, and with which trade is not prohibited by U.S. law or policy (non-FTA countries). Order No. 3909 is issued under section 3 of the Natural Gas Act (NGA) and 10 CFR part 590 of DOE's regulations. DOE participated as a cooperating agency with the Federal Energy Regulatory Commission (FERC) in preparing an environmental impact statement (EIS) \1\ analyzing the potential environmental impacts resulting from the proposed LNG facility. ---------------------------------------------------------------------------

Federal Register, Volume 81 Issue 234 (Tuesday, December 6, 2016)
[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)]
[Notices]
[Pages 87915-87917]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29206]


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DEPARTMENT OF ENERGY


Record of Decision and Floodplain Statement of Findings for the 
Magnolia LNG, LLC Application To Export Liquefied Natural Gas to Non-
Free Trade Agreement Countries

AGENCY: Office of Fossil Energy, Department of Energy.

ACTION: Record of Decision.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) announces its decision in 
Magnolia LNG, LLC (Magnolia LNG), DOE/FE Docket No. 13-132-LNG, to 
issue DOE/FE Order No. 3909, granting final long-term, multi contract 
authorization for Magnolia LNG to engage in the export of domestically 
produced liquefied natural gas (LNG) from the proposed Magnolia LNG 
facility located near Lake Charles, Calcasieu Parish, Louisiana, in a 
volume equivalent to 394.2 Bcf/yr (equal to 1.08 Bcf/day) of natural 
gas for a term of 25 years. Magnolia LNG is seeking to export LNG from 
the terminal to countries with which the United States has not entered 
into a free trade agreement (FTA) that requires national treatment for 
trade in natural gas, and with which trade is not prohibited by U.S. 
law or policy (non-FTA countries). Order No. 3909 is issued under 
section 3 of the Natural Gas Act (NGA) and 10 CFR part 590 of DOE's 
regulations. DOE participated as a cooperating agency with the Federal 
Energy Regulatory Commission (FERC) in preparing an environmental 
impact statement (EIS) \1\ analyzing the potential environmental 
impacts resulting from the proposed LNG facility.
---------------------------------------------------------------------------

    \1\ Final Environmental Impact Statement for the Magnolia LNG 
and Lake Charles Expansion Projects, Docket Nos. CP14-347-000 and 
CP14-511-000, FERC/EIS--0260F (Nov. 2015).

ADDRESSES: The EIS and this Record of Decision (ROD) are available on 
DOE's National Environmental Policy Act (NEPA) Web site at: http://energy.gov/nepa/downloads/eis-0498-final-environmental-impact-statement. Order No. 3909 is available on DOE/FE's Web site at: http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/Magnolia_LNG%2C_LLC_-_FE_Dkt._No._13-132-L.html. For 
additional information about the docket in these proceedings, contact 
Larine Moore, U.S. Department of Energy, Office of Regulation and 
International Engagement, Office of Oil and Natural Gas, Office of 
Fossil Energy, Room 3E-042, 1000 Independence Avenue SW., Washington, 
---------------------------------------------------------------------------
DC 20585.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
the EIS or the ROD, contact Mr. Kyle W. Moorman, U.S. Department of 
Energy, Office of Regulation and International Engagement, Office of 
Oil and Natural Gas, Office of Fossil Energy, Room 3E-042, 1000 
Independence Avenue SW., Washington, DC 20585, (202) 586-5600, or Mr. 
Edward Le Duc, U.S. Department of Energy, Office of the Assistant 
General Counsel for Environment, 1000 Independence Avenue SW., 
Washington, DC 20585.

SUPPLEMENTARY INFORMATION: DOE prepared this ROD and Floodplain 
Statement of Findings pursuant to the National Environmental Policy Act 
of 1969 (42 United States Code [U.S.C.] 4321, et seq.), and in 
compliance with the Council on Environmental Quality (CEQ) implementing 
regulations for NEPA (40 Code of Federal Regulations [CFR] parts 1500 
through 1508), DOE's implementing procedures for NEPA (10 CFR part 
1021), and DOE's ``Compliance with Floodplain and Wetland Environmental 
Review Requirements'' (10 CFR part 1022).

Background

    Magnolia LNG, a Delaware limited liability company with its 
principal place of business in Houston, Texas, proposes to construct 
liquefaction facilities in Lake Charles, Calcasieu Parish Louisiana 
(Magnolia LNG Project). The Magnolia LNG Project will connect to the 
U.S. natural gas pipeline and transmission system through a proposed 
pipeline system modification and upgrade project (Lake Charles 
Expansion Project) to an interstate natural gas pipeline owned by 
Kinder Morgan Louisiana Pipeline LLC (KMLP).
    On October 15, 2013, Magnolia LNG filed the application 
(Application) with DOE/FE seeking authorization to export domestically 
produced LNG. Magnolia LNG proposes to export this LNG to non-FTA 
countries in a total volume equivalent to 394.2 billion cubic feet per 
year (Bcf/yr) of natural gas.
    Magnolia LNG has also submitted two applications to DOE/FE for 
authorizations to export LNG to FTA countries, each in the amount of 
197.1 Bcf/yr (0.54 Bcf/day) for a 25-year term, for a combined total 
authorized FTA export volume of 394.2 Bcf/yr (1.08 Bcf/day). DOE/FE 
subsequently granted these FTA applications.\2\ The authorized

[[Page 87916]]

FTA export volumes are not additive to the export volumes requested in 
this proceeding. Therefore, DOE's grant of the pending non-FTA export 
application in this proceeding will not provide Magnolia LNG with the 
authority to export more than 394.2 Bcf/yr of natural gas from the 
Magnolia LNG Project.
---------------------------------------------------------------------------

    \2\ Magnolia LNG, LLC, Order Granting Long-Term Multi-Contract 
Authorization to Export Liquefied Natural Gas by Vessel from the 
Proposed Magnolia LNG Terminal in Lake Charles, Louisiana to Free 
Trade Agreement Nations, DOE/FE Order No. 3245, February 26, 2013 
(FE Docket No 12-183-LNG); Magnolia LNG, LLC, Order Granting Long-
Term Multi-Contract Authorization to Export Liquefied Natural Gas by 
Vessel from the Proposed Magnolia LNG Terminal in Lake Charles, 
Louisiana to Free Trade Agreement Nations, DOE/FE Order No. 3406, 
March 5, 2014 (FE Docket No 13-131-LNG).
---------------------------------------------------------------------------

    In addition to its Application to DOE/FE for export authority, on 
April 30, 2014, Magnolia LNG submitted an applications to FERC under 
sections 3 of the NGA for the siting, construction, and operation of 
the Magnolia LNG Project and, on June 30, 2014, KMLP submitted an 
application under section 7 of the NGA for approval of the Lake Charles 
Expansion Project. FERC issued an order granting Magnolia LNG its 
requested Section 3 authorization and KMLP its requested certificate of 
public convenience and necessity under Section 7 (c) on April 15, 2016 
(the ``FERC Order'').\3\
---------------------------------------------------------------------------

    \3\ Order Granting Authorization Under Section 3 of the Natural 
Gas Act and Issuing Certificates, FERC Docket Nos. CP14-347-000 and 
CP14-511-000, 155 FERC ] 61,033 (issued April 15, 2016).
---------------------------------------------------------------------------

Project Description

    The Magnolia LNG Project will include a new liquefaction facility 
consisting of four liquefaction trains, two LNG storage tanks with a 
capacity of approximately 160,000 cubic meters each, a LNG vessel 
loading berth, and a LNG truck loading area. The Lake Charles Expansion 
Project will require varying lengths/diameters of new pipeline/pipeline 
facilities in Acadia, Calcasieu and Evangeline Parishes, Louisiana, to 
supply natural gas to the liquefaction facility from existing gas 
transmission pipelines. This pipeline project includes the construction 
of approximately 6,400 feet of 36-inch-diameter and 700 feet of 24-
inch-diameter header pipelines in existing KMLP right-of-way along with 
one new compressor station.

EIS Process

    FERC was the lead federal agency and initiated the NEPA process by 
publishing a Notice of Intent (NOI) to prepare an EIS for the Magnolia 
LNG Project in FERC Docket No. PF13-9 on June 18, 2013, and for the 
Lake Charles Expansion Project in CP14-511 on August 11, 2014. FERC 
conducted a single environmental review process, that addressed both of 
these projects and DOE was a cooperating agency. FERC issued the draft 
EIS for the Liquefaction and Expansion Projects on July 17, 2015 and 
published in the Federal Register a notice of availability (NOA) for 
the draft EIS on July 24, 2015 (80 FR 44093). FERC issued the final EIS 
on November 13, 2015 and published a NOA for the final EIS on November 
19, 2015 (80 FR 72431). The final EIS addresses comments received on 
the draft EIS. Among other resource areas, the final EIS addresses 
groundwater, water resources, socioeconomics, air quality and noise, 
reliability and safety, and cumulative impacts.
    The final EIS recommended that FERC subject any approval of the 
Magnolia LNG and Lake Charles Expansion Projects to 114 conditions to 
reduce the environmental impacts that would otherwise result from the 
construction and operation of the project. Accordingly, FERC issued an 
Order authorizing the Projects on April 15, 2016, subject to 115 
environmental conditions contained in Appendix H of that Order.\4\
---------------------------------------------------------------------------

    \4\Within its Order, FERC included an additional condition to 
the 114 conditions listed in the EIE related to commissioning 
volumes to its environmental mitigation measures. See Appendix H of 
the FERC Order for more details.
---------------------------------------------------------------------------

    In accordance with 40 CFR 1506.3, after an independent review of 
FERC's final EIS, DOE/FE adopted FERC's final EIS (DOE/EIS-0498). The 
U.S. Environmental Protection Agency published a notice of the adoption 
on September 30, 2016 (81 FR 67348).

Addendum to Environmental Review Documents Concerning Exports of 
Natural Gas From the United States (Addendum)

    On June 4, 2014, DOE/FE published the Draft Addendum to 
Environmental Review Documents Concerning Exports of Natural Gas from 
the United States (Draft Addendum) for public comment (79 FR 32258). 
The purpose of this review was to provide additional information to the 
public concerning the potential environmental impacts of unconventional 
natural gas exploration and production activities, including hydraulic 
fracturing. Although not required by NEPA, DOE/FE prepared the Addendum 
in an effort to be responsive to the public and to provide the best 
information available on a subject that had been raised by commenters 
in this and other LNG export proceedings.
    The 45-day comment period on the Draft Addendum closed on July 21, 
2014. DOE/FE received 40,745 comments in 18 separate submissions, and 
considered those comments in issuing the Final Addendum on August 15, 
2014. DOE provided a summary of the comments received and responses to 
substantive comments in Appendix B of the Addendum. DOE/FE has 
incorporated the Draft Addendum, comments, and Final Addendum into the 
record in this proceeding.

Alternatives

    The EIS assessed alternatives that could achieve the Magnolia LNG 
and Lake Charles Expansion Projects' objectives. The range of 
alternatives analyzed included the No-Action alternative, system 
alternatives, site alternatives, and process alternatives. Alternatives 
were evaluated and compared to the Magnolia LNG and Lake Charles 
Expansion Projects to determine if the alternatives were 
environmentally preferable.
    In analyzing the No-Action Alternative, the EIS reviewed the 
effects and actions that could result if the proposed Magnolia LNG and 
Lake Charles Expansion Projects were not constructed. FERC determined 
that other LNG export projects could be developed in the Gulf Coast 
region or elsewhere in the U.S., resulting in both adverse and 
beneficial environmental impacts. LNG terminal developments and 
pipeline system expansion of similar scope and magnitude to the 
proposed projects would likely result in environmental impacts of 
comparable significance, especially those projects in similar regional 
settings.
    The EIS evaluated system alternatives which included an evaluation 
of the LNG terminal design as well as the pipeline system. For the LNG 
terminal, the EIS evaluated nine existing LNG terminals with approved, 
proposed, or planned status and 19 greenfield LNG terminals that are 
approved, proposed, or planned along the Gulf Coast of the U.S. In 
order to be a compatible alternative, it would have to meet Magnolia 
LNG's purpose and objective: To construct and operate a terminal to 
serve both domestic and export markets for LNG. The alternatives each 
lacked infrastructure to support LNG truck loading facilities and/or 
the proposed liquefaction volume capacity, and were therefore not 
further considered as viable alternatives.
    For the alternatives to the pipeline system, the EIS evaluated 
three major natural gas pipeline systems within three miles of the 
proposed site. Although the proposed pipeline expansion requires 
reconfiguration (e.g. new metering station and new interconnect 
pipeline), the three alternatives either do not meet the necessary 
capacity requirements or require the construction of longer pipeline 
connections.

[[Page 87917]]

    The EIS evaluated four site alternatives. In order to meet the 
stated objectives of Magnolia LNG Project, the EIS considered following 
factors when identifying the site that would most likely pose some 
environmental advantage to the proposed terminal site: Waterfront 
access; property size; existing land use; site availability; natural 
gas pipelines and transmission lines; population center/residences; 
distance to an interstate highway; and wetlands. After evaluating each 
of the site alternatives, the EIS concluded that the proposed site 
would have less impact on wetlands, greater separation between 
population center/residences, and greater optimization of existing land 
use.
    For the process alternatives, the EIS considered several 
liquefaction technologies in addition to the proposed Optimized Single 
Mixed Refrigerant (OSMR) [supreg] Process by LNG Technology). Although 
the OSMR[supreg] Process uses anhydrous ammonia, which present several 
safety hazards, methods of mitigating the safety hazards are well 
understood and subject to additional federal regulation. The EIS 
determined that none of the alternatives would have a significant 
safety or environmental advantage over the OSMR[supreg] Process when 
considering additional mitigation measure outlined in LNG Facility 
Siting Requirements at section 4.12.5 of the EIS.

Environmentally Preferred Alternative

    When compared against the other action alternatives assessed in the 
EIS, as discussed above, the proposed Magnolia LNG and Lake Charles 
Expansion Projects are the environmentally preferred alternative. While 
the No-Action Alternative would avoid the environmental impacts 
identified in the EIS, adoption of this alternative would not meet the 
Magnolia LNG and Lake Charles Expansion Projects objectives.

Decision

    DOE has decided to issue Order No. 3909 authorizing Magnolia LNG to 
export domestically produced LNG by vessel from the Magnolia LNG 
terminal located in Lake Charles, Calcasieu Parish, Louisiana to non-
FTA countries, in a volume up to the equivalent to 394.2 Bcf/yr of 
natural gas for a term of 25 years to commence on the earlier of the 
date of first export or seven years from the date that the Order is 
issued.
    Concurrently with this Record of Decision, DOE is issuing Order No. 
3909 in which it finds that the requested authorization has not been 
shown to be inconsistent with the public interest, and the Application 
should be granted subject to compliance with the terms and conditions 
set forth in the Order, including the environmental conditions 
recommended in the EIS and adopted in the FERC Order at Appendix H. 
Additionally, this authorization is conditioned on Magnolia LNG's 
compliance with any other mitigation measures imposed by other federal 
or state agencies.

Basis of Decision

    DOE's decision is based upon the analysis of potential 
environmental impacts presented in the EIS, and DOE's determination in 
Order No. 3909 that the opponents of Magnolia LNG's Application have 
failed to overcome the statutory presumption that the proposed export 
authorization is not inconsistent with the public interest. Although 
not required by NEPA, DOE/FE also considered the Addendum, which 
summarizes available information on potential upstream impacts 
associated with unconventional natural gas activities, such as 
hydraulic fracturing.

Mitigation

    As a condition of its decision to issue Order No. 3909 authorizing 
Magnolia LNG to export LNG to non-FTA countries, DOE is imposing 
requirements that will avoid or minimize the environmental impacts of 
the project. These conditions include the environmental conditions 
recommended in the EIS and adopted in the FERC Order at Appendix H. 
Mitigation measures beyond those included in Order No. 3909 that are 
enforceable by other Federal and state agencies are additional 
conditions of Order No. 3909. With these conditions, DOE/FE has 
determined that all practicable means to avoid or minimize 
environmental harm from the Magnolia LNG and Lake Charles Expansion 
Projects have been adopted.

Floodplain Statement of Findings

    DOE prepared this Floodplain Statement of Findings in accordance 
with DOE's regulations, entitled ``Compliance with Floodplain and 
Wetland Environmental Review Requirements'' (10 CFR part 1022). The 
required floodplain assessment was conducted during development and 
preparation of the EIS (see Section 4.1.3.3 of the EIS). DOE determined 
that the majority of the LNG terminal site is outside the 500-year 
floodplain and the pipeline facilities are outside the 100- and 500-
year floodplains. However, placement of some project components within 
floodplains would be unavoidable. Overall, the current design for the 
Magnolia LNG and Lake Charles Expansion Projects minimizes floodplain 
impacts to the extent practicable.

    Issued in Washington, DC, on November 30, 2016.
Christopher A. Smith,
Assistant Secretary, Office of Fossil Energy.
[FR Doc. 2016-29206 Filed 12-5-16; 8:45 am]
BILLING CODE 6450-01-P



                                                                              Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices                                                87915

                                                  Mitigations Identified Through                          DEPARTMENT OF ENERGY                                  EIS or the ROD, contact Mr. Kyle W.
                                                  Consultation                                                                                                  Moorman, U.S. Department of Energy,
                                                                                                          Record of Decision and Floodplain                     Office of Regulation and International
                                                     Mitigation commitments resulting                     Statement of Findings for the Magnolia                Engagement, Office of Oil and Natural
                                                  from consultations with the State                       LNG, LLC Application To Export                        Gas, Office of Fossil Energy, Room 3E–
                                                  Historic Preservation Office (SHPO) and                 Liquefied Natural Gas to Non-Free                     042, 1000 Independence Avenue SW.,
                                                  Tribal Government (Appendix B of the                    Trade Agreement Countries                             Washington, DC 20585, (202) 586–5600,
                                                  EIS) are listed below:                                  AGENCY:  Office of Fossil Energy,                     or Mr. Edward Le Duc, U.S. Department
                                                     1. Idaho State Historical Society                    Department of Energy.                                 of Energy, Office of the Assistant
                                                  Compliance Archeologist concurred                                                                             General Counsel for Environment, 1000
                                                                                                          ACTION: Record of Decision.
                                                  with the recommendation of no adverse                                                                         Independence Avenue SW.,
                                                  effect if ‘‘Recommendations for                         SUMMARY:    The U.S. Department of                    Washington, DC 20585.
                                                  Additional Project Measures’’ as                        Energy (DOE) announces its decision in                SUPPLEMENTARY INFORMATION: DOE
                                                  identified in Section 8.3 of the 2013                   Magnolia LNG, LLC (Magnolia LNG),                     prepared this ROD and Floodplain
                                                  Cultural Resources Investigations Report                DOE/FE Docket No. 13–132–LNG, to                      Statement of Findings pursuant to the
                                                                                                          issue DOE/FE Order No. 3909, granting                 National Environmental Policy Act of
                                                  are adopted. A subset of the
                                                                                                          final long-term, multi contract                       1969 (42 United States Code [U.S.C.]
                                                  recommendations that meet the
                                                                                                          authorization for Magnolia LNG to                     4321, et seq.), and in compliance with
                                                  definition for mitigations are:                         engage in the export of domestically                  the Council on Environmental Quality
                                                     • Monitor sensitive archaeological                   produced liquefied natural gas (LNG)                  (CEQ) implementing regulations for
                                                  resources located in proximity to the                   from the proposed Magnolia LNG                        NEPA (40 Code of Federal Regulations
                                                  three defined direct areas of potential                 facility located near Lake Charles,                   [CFR] parts 1500 through 1508), DOE’s
                                                  effect for indirect impacts and                         Calcasieu Parish, Louisiana, in a volume              implementing procedures for NEPA (10
                                                  implement protective measures if                        equivalent to 394.2 Bcf/yr (equal to 1.08             CFR part 1021), and DOE’s ‘‘Compliance
                                                  warranted;                                              Bcf/day) of natural gas for a term of 25              with Floodplain and Wetland
                                                                                                          years. Magnolia LNG is seeking to                     Environmental Review Requirements’’
                                                     • Conduct cultural resource
                                                                                                          export LNG from the terminal to                       (10 CFR part 1022).
                                                  sensitivity training for personnel to
                                                                                                          countries with which the United States
                                                  discourage unauthorized artifact                        has not entered into a free trade                     Background
                                                  collection, off-road vehicle use, and                   agreement (FTA) that requires national                   Magnolia LNG, a Delaware limited
                                                  other activities that may impact cultural               treatment for trade in natural gas, and               liability company with its principal
                                                  resources;                                              with which trade is not prohibited by                 place of business in Houston, Texas,
                                                     • Implement a Stop Work Procedure                    U.S. law or policy (non-FTA countries).               proposes to construct liquefaction
                                                  to guide the assessment and protection                  Order No. 3909 is issued under section                facilities in Lake Charles, Calcasieu
                                                  of any unanticipated discoveries of                     3 of the Natural Gas Act (NGA) and 10                 Parish Louisiana (Magnolia LNG
                                                  cultural materials during construction                  CFR part 590 of DOE’s regulations. DOE                Project). The Magnolia LNG Project will
                                                  and operations.                                         participated as a cooperating agency                  connect to the U.S. natural gas pipeline
                                                                                                          with the Federal Energy Regulatory                    and transmission system through a
                                                     2. Provide the Shoshone-Bannock                      Commission (FERC) in preparing an                     proposed pipeline system modification
                                                  Tribes Heritage Tribal Office the                       environmental impact statement (EIS) 1                and upgrade project (Lake Charles
                                                  opportunity to monitor key ground-                      analyzing the potential environmental                 Expansion Project) to an interstate
                                                  disturbing activities that occur at NRF                 impacts resulting from the proposed                   natural gas pipeline owned by Kinder
                                                  in support of the recapitalization                      LNG facility.                                         Morgan Louisiana Pipeline LLC (KMLP).
                                                  activities.                                             ADDRESSES: The EIS and this Record of                    On October 15, 2013, Magnolia LNG
                                                  Mitigations Where Credit Is Taken for                   Decision (ROD) are available on DOE’s                 filed the application (Application) with
                                                  Impact Reduction                                        National Environmental Policy Act                     DOE/FE seeking authorization to export
                                                                                                          (NEPA) Web site at: http://energy.gov/                domestically produced LNG. Magnolia
                                                    Best Management Practices (BMPs)                      nepa/downloads/eis-0498-final-                        LNG proposes to export this LNG to
                                                  identified in the EIS that are part of                  environmental-impact-statement. Order                 non-FTA countries in a total volume
                                                  adopted DOE, INL, or NRF plans,                         No. 3909 is available on DOE/FE’s Web                 equivalent to 394.2 billion cubic feet per
                                                  contractor stipulations, or listed in                   site at: http://www.fossil.energy.gov/                year (Bcf/yr) of natural gas.
                                                  standard operating procedures for the                   programs/gasregulation/authorizations/                   Magnolia LNG has also submitted two
                                                  DOE, INL, or NRF are not considered a                   2013_applications/Magnolia_LNG%2C_                    applications to DOE/FE for
                                                  mitigation. Additional BMPs, where                      LLC_-_FE_Dkt._No._13-132-L.html. For                  authorizations to export LNG to FTA
                                                                                                          additional information about the docket               countries, each in the amount of 197.1
                                                  credit is taken for reducing an impact
                                                                                                          in these proceedings, contact Larine                  Bcf/yr (0.54 Bcf/day) for a 25-year term,
                                                  are listed below:
                                                                                                          Moore, U.S. Department of Energy,                     for a combined total authorized FTA
                                                    1. Use of high-performance generators                 Office of Regulation and International                export volume of 394.2 Bcf/yr (1.08 Bcf/
                                                  (Tier-4).                                               Engagement, Office of Oil and Natural                 day). DOE/FE subsequently granted
                                                    Issued in Washington, DC, on 15 November              Gas, Office of Fossil Energy, Room 3E–                these FTA applications.2 The authorized
                                                  2016.                                                   042, 1000 Independence Avenue SW.,
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          Washington, DC 20585.                                   2 Magnolia LNG, LLC, Order Granting Long-Term
                                                  James F. Caldwell, Jr.,                                                                                       Multi-Contract Authorization to Export Liquefied
                                                                                                          FOR FURTHER INFORMATION CONTACT: To
                                                  Director, Naval Nuclear Propulsion Program.                                                                   Natural Gas by Vessel from the Proposed Magnolia
                                                                                                          obtain additional information about the               LNG Terminal in Lake Charles, Louisiana to Free
                                                  [FR Doc. 2016–29203 Filed 12–5–16; 8:45 am]
                                                                                                                                                                Trade Agreement Nations, DOE/FE Order No. 3245,
                                                  BILLING CODE 6450–01–P                                    1 Final Environmental Impact Statement for the      February 26, 2013 (FE Docket No 12–183–LNG);
                                                                                                          Magnolia LNG and Lake Charles Expansion               Magnolia LNG, LLC, Order Granting Long-Term
                                                                                                          Projects, Docket Nos. CP14–347–000 and CP14–          Multi-Contract Authorization to Export Liquefied
                                                                                                          511–000, FERC/EIS—0260F (Nov. 2015).                                                          Continued




                                             VerDate Sep<11>2014   17:39 Dec 05, 2016   Jkt 241001   PO 00000   Frm 00014   Fmt 4703   Sfmt 4703   E:\FR\FM\06DEN1.SGM   06DEN1


                                                  87916                       Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices

                                                  FTA export volumes are not additive to                  July 17, 2015 and published in the                    substantive comments in Appendix B of
                                                  the export volumes requested in this                    Federal Register a notice of availability             the Addendum. DOE/FE has
                                                  proceeding. Therefore, DOE’s grant of                   (NOA) for the draft EIS on July 24, 2015              incorporated the Draft Addendum,
                                                  the pending non-FTA export application                  (80 FR 44093). FERC issued the final EIS              comments, and Final Addendum into
                                                  in this proceeding will not provide                     on November 13, 2015 and published a                  the record in this proceeding.
                                                  Magnolia LNG with the authority to                      NOA for the final EIS on November 19,
                                                                                                          2015 (80 FR 72431). The final EIS                     Alternatives
                                                  export more than 394.2 Bcf/yr of natural
                                                  gas from the Magnolia LNG Project.                      addresses comments received on the                       The EIS assessed alternatives that
                                                     In addition to its Application to DOE/               draft EIS. Among other resource areas,                could achieve the Magnolia LNG and
                                                  FE for export authority, on April 30,                   the final EIS addresses groundwater,                  Lake Charles Expansion Projects’
                                                  2014, Magnolia LNG submitted an                         water resources, socioeconomics, air                  objectives. The range of alternatives
                                                  applications to FERC under sections 3 of                quality and noise, reliability and safety,            analyzed included the No-Action
                                                  the NGA for the siting, construction,                   and cumulative impacts.                               alternative, system alternatives, site
                                                  and operation of the Magnolia LNG                          The final EIS recommended that                     alternatives, and process alternatives.
                                                  Project and, on June 30, 2014, KMLP                     FERC subject any approval of the                      Alternatives were evaluated and
                                                  submitted an application under section                  Magnolia LNG and Lake Charles                         compared to the Magnolia LNG and
                                                  7 of the NGA for approval of the Lake                   Expansion Projects to 114 conditions to               Lake Charles Expansion Projects to
                                                  Charles Expansion Project. FERC issued                  reduce the environmental impacts that                 determine if the alternatives were
                                                  an order granting Magnolia LNG its                      would otherwise result from the                       environmentally preferable.
                                                  requested Section 3 authorization and                   construction and operation of the                        In analyzing the No-Action
                                                  KMLP its requested certificate of public                project. Accordingly, FERC issued an                  Alternative, the EIS reviewed the effects
                                                  convenience and necessity under                         Order authorizing the Projects on April               and actions that could result if the
                                                  Section 7 (c) on April 15, 2016 (the                    15, 2016, subject to 115 environmental                proposed Magnolia LNG and Lake
                                                  ‘‘FERC Order’’).3                                       conditions contained in Appendix H of                 Charles Expansion Projects were not
                                                                                                          that Order.4                                          constructed. FERC determined that
                                                  Project Description                                        In accordance with 40 CFR 1506.3,                  other LNG export projects could be
                                                     The Magnolia LNG Project will                        after an independent review of FERC’s
                                                                                                                                                                developed in the Gulf Coast region or
                                                  include a new liquefaction facility                     final EIS, DOE/FE adopted FERC’s final
                                                                                                                                                                elsewhere in the U.S., resulting in both
                                                  consisting of four liquefaction trains,                 EIS (DOE/EIS–0498). The U.S.
                                                                                                                                                                adverse and beneficial environmental
                                                  two LNG storage tanks with a capacity                   Environmental Protection Agency
                                                                                                                                                                impacts. LNG terminal developments
                                                  of approximately 160,000 cubic meters                   published a notice of the adoption on
                                                                                                                                                                and pipeline system expansion of
                                                  each, a LNG vessel loading berth, and a                 September 30, 2016 (81 FR 67348).
                                                                                                                                                                similar scope and magnitude to the
                                                  LNG truck loading area. The Lake                        Addendum to Environmental Review                      proposed projects would likely result in
                                                  Charles Expansion Project will require                  Documents Concerning Exports of                       environmental impacts of comparable
                                                  varying lengths/diameters of new                        Natural Gas From the United States                    significance, especially those projects in
                                                  pipeline/pipeline facilities in Acadia,                 (Addendum)                                            similar regional settings.
                                                  Calcasieu and Evangeline Parishes,                                                                               The EIS evaluated system alternatives
                                                  Louisiana, to supply natural gas to the                    On June 4, 2014, DOE/FE published
                                                                                                          the Draft Addendum to Environmental                   which included an evaluation of the
                                                  liquefaction facility from existing gas                                                                       LNG terminal design as well as the
                                                  transmission pipelines. This pipeline                   Review Documents Concerning Exports
                                                                                                          of Natural Gas from the United States                 pipeline system. For the LNG terminal,
                                                  project includes the construction of                                                                          the EIS evaluated nine existing LNG
                                                  approximately 6,400 feet of 36-inch-                    (Draft Addendum) for public comment
                                                                                                          (79 FR 32258). The purpose of this                    terminals with approved, proposed, or
                                                  diameter and 700 feet of 24-inch-                                                                             planned status and 19 greenfield LNG
                                                                                                          review was to provide additional
                                                  diameter header pipelines in existing                                                                         terminals that are approved, proposed,
                                                                                                          information to the public concerning the
                                                  KMLP right-of-way along with one new                                                                          or planned along the Gulf Coast of the
                                                                                                          potential environmental impacts of
                                                  compressor station.                                                                                           U.S. In order to be a compatible
                                                                                                          unconventional natural gas exploration
                                                  EIS Process                                             and production activities, including                  alternative, it would have to meet
                                                    FERC was the lead federal agency and                  hydraulic fracturing. Although not                    Magnolia LNG’s purpose and objective:
                                                  initiated the NEPA process by                           required by NEPA, DOE/FE prepared                     To construct and operate a terminal to
                                                  publishing a Notice of Intent (NOI) to                  the Addendum in an effort to be                       serve both domestic and export markets
                                                  prepare an EIS for the Magnolia LNG                     responsive to the public and to provide               for LNG. The alternatives each lacked
                                                  Project in FERC Docket No. PF13–9 on                    the best information available on a                   infrastructure to support LNG truck
                                                  June 18, 2013, and for the Lake Charles                 subject that had been raised by                       loading facilities and/or the proposed
                                                  Expansion Project in CP14–511 on                        commenters in this and other LNG                      liquefaction volume capacity, and were
                                                  August 11, 2014. FERC conducted a                       export proceedings.                                   therefore not further considered as
                                                                                                             The 45-day comment period on the                   viable alternatives.
                                                  single environmental review process,
                                                                                                          Draft Addendum closed on July 21,                        For the alternatives to the pipeline
                                                  that addressed both of these projects
                                                                                                          2014. DOE/FE received 40,745                          system, the EIS evaluated three major
                                                  and DOE was a cooperating agency.
                                                                                                          comments in 18 separate submissions,                  natural gas pipeline systems within
                                                  FERC issued the draft EIS for the
                                                                                                          and considered those comments in                      three miles of the proposed site.
                                                  Liquefaction and Expansion Projects on
                                                                                                          issuing the Final Addendum on August                  Although the proposed pipeline
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                                                  Natural Gas by Vessel from the Proposed Magnolia
                                                                                                          15, 2014. DOE provided a summary of                   expansion requires reconfiguration (e.g.
                                                  LNG Terminal in Lake Charles, Louisiana to Free         the comments received and responses to                new metering station and new
                                                  Trade Agreement Nations, DOE/FE Order No. 3406,                                                               interconnect pipeline), the three
                                                  March 5, 2014 (FE Docket No 13–131–LNG).                  4Within its Order, FERC included an additional
                                                                                                                                                                alternatives either do not meet the
                                                    3 Order Granting Authorization Under Section 3        condition to the 114 conditions listed in the EIE
                                                  of the Natural Gas Act and Issuing Certificates,        related to commissioning volumes to its
                                                                                                                                                                necessary capacity requirements or
                                                  FERC Docket Nos. CP14–347–000 and CP14–511–             environmental mitigation measures. See Appendix       require the construction of longer
                                                  000, 155 FERC ¶ 61,033 (issued April 15, 2016).         H of the FERC Order for more details.                 pipeline connections.


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                                                                              Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices                                                 87917

                                                     The EIS evaluated four site                          and the Application should be granted                 for the Magnolia LNG and Lake Charles
                                                  alternatives. In order to meet the stated               subject to compliance with the terms                  Expansion Projects minimizes
                                                  objectives of Magnolia LNG Project, the                 and conditions set forth in the Order,                floodplain impacts to the extent
                                                  EIS considered following factors when                   including the environmental conditions                practicable.
                                                  identifying the site that would most                    recommended in the EIS and adopted in                   Issued in Washington, DC, on November
                                                  likely pose some environmental                          the FERC Order at Appendix H.                         30, 2016.
                                                  advantage to the proposed terminal site:                Additionally, this authorization is                   Christopher A. Smith,
                                                  Waterfront access; property size;                       conditioned on Magnolia LNG’s                         Assistant Secretary, Office of Fossil Energy.
                                                  existing land use; site availability;                   compliance with any other mitigation
                                                                                                                                                                [FR Doc. 2016–29206 Filed 12–5–16; 8:45 am]
                                                  natural gas pipelines and transmission                  measures imposed by other federal or
                                                                                                                                                                BILLING CODE 6450–01–P
                                                  lines; population center/residences;                    state agencies.
                                                  distance to an interstate highway; and
                                                                                                          Basis of Decision
                                                  wetlands. After evaluating each of the                                                                        DEPARTMENT OF ENERGY
                                                  site alternatives, the EIS concluded that                 DOE’s decision is based upon the
                                                  the proposed site would have less                       analysis of potential environmental                   Federal Energy Regulatory
                                                  impact on wetlands, greater separation                  impacts presented in the EIS, and DOE’s               Commission
                                                  between population center/residences,                   determination in Order No. 3909 that
                                                  and greater optimization of existing land               the opponents of Magnolia LNG’s                       [Project No. 1971–079]
                                                  use.                                                    Application have failed to overcome the
                                                                                                          statutory presumption that the proposed               Idaho Power Company; Notice of
                                                     For the process alternatives, the EIS
                                                                                                          export authorization is not inconsistent              Petition for Declaratory Order
                                                  considered several liquefaction
                                                  technologies in addition to the proposed                with the public interest. Although not                   Take notice that on November 23,
                                                  Optimized Single Mixed Refrigerant                      required by NEPA, DOE/FE also                         2016, Idaho Power Company (Idaho
                                                  (OSMR) ® Process by LNG Technology).                    considered the Addendum, which                        Power), licensee of the Hells Canyon
                                                  Although the OSMR® Process uses                         summarizes available information on                   Project No. 1971, filed a petition for a
                                                  anhydrous ammonia, which present                        potential upstream impacts associated                 declaratory order (petition) pursuant to
                                                  several safety hazards, methods of                      with unconventional natural gas                       Rule 207(a)(2) of the Federal Energy
                                                  mitigating the safety hazards are well                  activities, such as hydraulic fracturing.             Regulatory Commission’s Rules of
                                                  understood and subject to additional                    Mitigation                                            Practice and Procedure, 18 CFR
                                                  federal regulation. The EIS determined                                                                        385.207(a)(2). Idaho Power requests that
                                                  that none of the alternatives would have                  As a condition of its decision to issue             the Commission declare that, under the
                                                  a significant safety or environmental                   Order No. 3909 authorizing Magnolia                   Supremacy Clause of the U.S.
                                                  advantage over the OSMR® Process                        LNG to export LNG to non-FTA                          Constitution, Part I of the Federal Power
                                                  when considering additional mitigation                  countries, DOE is imposing                            Act (FPA) 1 preempts the fish passage
                                                  measure outlined in LNG Facility Siting                 requirements that will avoid or                       provisions contained in Oregon Revised
                                                  Requirements at section 4.12.5 of the                   minimize the environmental impacts of                 Statute 509.585 with respect to the Hells
                                                  EIS.                                                    the project. These conditions include                 Canyon Project, all as more fully
                                                                                                          the environmental conditions                          explained in its petition.
                                                  Environmentally Preferred Alternative                   recommended in the EIS and adopted in                    Any person desiring to intervene or to
                                                     When compared against the other                      the FERC Order at Appendix H.                         protest this filing must file in
                                                  action alternatives assessed in the EIS,                Mitigation measures beyond those                      accordance with Rules 211 and 214 of
                                                  as discussed above, the proposed                        included in Order No. 3909 that are                   the Commission’s Rules of Practice and
                                                  Magnolia LNG and Lake Charles                           enforceable by other Federal and state                Procedure, 18 CFR 385.211, 385.214.
                                                  Expansion Projects are the                              agencies are additional conditions of                 Protests will be considered by the
                                                  environmentally preferred alternative.                  Order No. 3909. With these conditions,                Commission in determining the
                                                  While the No-Action Alternative would                   DOE/FE has determined that all                        appropriate action to be taken, but will
                                                  avoid the environmental impacts                         practicable means to avoid or minimize                not serve to make protestants parties to
                                                  identified in the EIS, adoption of this                 environmental harm from the Magnolia                  the proceeding. Any person wishing to
                                                  alternative would not meet the Magnolia                 LNG and Lake Charles Expansion                        become a party must file a notice of
                                                  LNG and Lake Charles Expansion                          Projects have been adopted.                           intervention or motion to intervene, as
                                                  Projects objectives.                                                                                          appropriate. Such notices, motions, or
                                                                                                          Floodplain Statement of Findings
                                                                                                                                                                protests must be filed on or before the
                                                  Decision                                                   DOE prepared this Floodplain                       comment date. Anyone filing a motion
                                                     DOE has decided to issue Order No.                   Statement of Findings in accordance                   to intervene or protest must serve a copy
                                                  3909 authorizing Magnolia LNG to                        with DOE’s regulations, entitled                      of that document on the Petitioner.
                                                  export domestically produced LNG by                     ‘‘Compliance with Floodplain and                         The Commission encourages
                                                  vessel from the Magnolia LNG terminal                   Wetland Environmental Review                          electronic submission of protests and
                                                  located in Lake Charles, Calcasieu                      Requirements’’ (10 CFR part 1022). The                interventions in lieu of paper using the
                                                  Parish, Louisiana to non-FTA countries,                 required floodplain assessment was                    ‘‘eFiling’’ link at http://www.ferc.gov.
                                                  in a volume up to the equivalent to                     conducted during development and                      Persons unable to file electronically
                                                  394.2 Bcf/yr of natural gas for a term of               preparation of the EIS (see Section                   should submit an original and 5 copies
                                                  25 years to commence on the earlier of                  4.1.3.3 of the EIS). DOE determined that
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                                                                                                                                                                of the protest or intervention to the
                                                  the date of first export or seven years                 the majority of the LNG terminal site is              Federal Energy Regulatory Commission,
                                                  from the date that the Order is issued.                 outside the 500-year floodplain and the               888 First Street NE., Washington, DC
                                                     Concurrently with this Record of                     pipeline facilities are outside the 100-              20426.
                                                  Decision, DOE is issuing Order No. 3909                 and 500-year floodplains. However,                       This filing is accessible on-line at
                                                  in which it finds that the requested                    placement of some project components                  http://www.ferc.gov, using the
                                                  authorization has not been shown to be                  within floodplains would be
                                                  inconsistent with the public interest,                  unavoidable. Overall, the current design                1 16   U.S.C. 791a–823d (2016).



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Document Created: 2016-12-06 02:18:56
Document Modified: 2016-12-06 02:18:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionRecord of Decision.
ContactTo obtain additional information about the EIS or the ROD, contact Mr. Kyle W. Moorman, U.S. Department of Energy, Office of Regulation and International Engagement, Office of Oil and Natural Gas, Office of Fossil Energy, Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586-5600, or Mr. Edward Le Duc, U.S. Department of Energy, Office of the Assistant General Counsel for Environment, 1000 Independence Avenue SW., Washington, DC 20585.
FR Citation81 FR 87915 

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