Notice2023-07873
Magnolia LNG, LLC; Request for Limited Extension to Start Date of Term of Authorization
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Published
April 14, 2023
Issuing agencies
Energy Department
Abstract
The Office of Fossil Energy and Carbon Management (FECM) (formerly the Office of Fossil Energy) of the Department of Energy (DOE) gives notice (Notice) of receipt of a request (Request), filed by Magnolia LNG, LLC (Magnolia) on March 20, 2023. Magnolia requests an amendment to its existing authorization to export domestically produced liquefied natural gas (LNG) to non-free trade agreement countries set forth in DOE/FE Order No. 3909, as amended most recently in DOE/FECM Order No. 3909-C--specifically, an extension of its deadline to commence export operations. Magnolia filed its request under the Natural Gas Act (NGA). Protests, motions to intervene, notices of intervention, and written comments are invited.
Full Text
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<title>Federal Register, Volume 88 Issue 72 (Friday, April 14, 2023)</title>
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[Federal Register Volume 88, Number 72 (Friday, April 14, 2023)]
[Notices]
[Pages 23020-23022]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-07873]
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DEPARTMENT OF ENERGY
[Docket No. 13-132-LNG]
Magnolia LNG, LLC; Request for Limited Extension to Start Date of
Term of Authorization
AGENCY: Office of Fossil Energy and Carbon Management, Department of
Energy.
ACTION: Notice of request.
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SUMMARY: The Office of Fossil Energy and Carbon Management (FECM)
(formerly the Office of Fossil Energy) of the Department of Energy
(DOE) gives notice (Notice) of receipt of a request (Request), filed by
Magnolia LNG, LLC (Magnolia) on March 20, 2023. Magnolia requests an
amendment to its existing authorization to export domestically produced
liquefied natural gas (LNG) to non-free trade agreement countries set
forth in DOE/FE Order No. 3909, as amended most recently in DOE/FECM
Order No. 3909-C--specifically, an extension of its deadline to
commence export operations. Magnolia filed its request under the
Natural Gas Act (NGA). Protests, motions to intervene, notices of
intervention, and written comments are invited.
DATES: Protests, motions to intervene, or notices of intervention, as
applicable, and written comments are to be filed electronically as
detailed in the Public Comment Procedures section no later than 4:30
p.m., Eastern time, May 15, 2023.
ADDRESSES:
Electronic Filing by Email
<a href="/cdn-cgi/l/email-protection#d0b6b5a2b7b1a390b8a1feb4bfb5feb7bfa6"><span class="__cf_email__" data-cfemail="deb8bbacb9bfad9eb6aff0bab1bbf0b9b1a8">[email protected]</span></a>
Although DOE has routinely accepted public comment submissions
through a variety of mechanisms, including postal mail and hand
delivery/courier, DOE has found it necessary to make temporary
modifications to the comment submission process in light of the ongoing
Covid-19 pandemic. DOE is currently accepting only electronic
submissions at this time. If a commenter finds that this change poses
an undue hardship, please contact Office of Resource Sustainability
staff at (202) 586-4749 or (202) 586-7893 to discuss the need for
alternative arrangements. Once the Covid-19 pandemic health emergency
is resolved, DOE anticipates resuming all of its regular options for
public comment submission, including postal mail and hand delivery/
courier.
FOR FURTHER INFORMATION CONTACT:
Jennifer Wade or Peri Ulrey, U.S. Department of Energy (FE-34) Office
of Regulation, Analysis, and Engagement, Office of Resource
Sustainability, Office of Fossil Energy and Carbon Management,
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW,
Washington, DC 20585, (202) 586-4749 or (202) 586-7893,
<a href="/cdn-cgi/l/email-protection#ed87888383848b889fc39a8c8988ad859cc3898288c38a829b"><span class="__cf_email__" data-cfemail="701a151e1e191615025e071114153018015e141f155e171f06">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#cebeabbca7e0bba2bcabb78ea6bfe0aaa1abe0a9a1b8"><span class="__cf_email__" data-cfemail="6b1b0e1902451e07190e122b031a450f040e450c041d">[email protected]</span></a>.
Cassandra Bernstein, U.S. Department of Energy (GC-76), Office of the
Assistant General Counsel for Energy Delivery and Resilience, Forrestal
Building, Room 6D-033, 1000 Independence Avenue SW, Washington, DC
20585, (202) 586-9793, <a href="/cdn-cgi/l/email-protection#1172706262707f7563703f7374637f626574787f5179603f757e743f767e67"><span class="__cf_email__" data-cfemail="2043415353414e4452410e4245524e535445494e6048510e444f450e474f56">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Under DOE/FE Order No. 3909, as amended most
recently in DOE/FECM Order No. 3909-C,\1\ Magnolia is authorized to
export domestically produced LNG by vessel from the proposed Magnolia
LNG Project, a natural gas liquefaction and LNG export terminal to be
located near Lake Charles, Calcasieu Parish, Louisiana, to any country
with which the United States has not entered into a free trade
agreement (FTA) requiring national treatment for trade in natural gas,
and with which trade is not prohibited by U.S. law or policy (non-FTA
countries).\2\ Magnolia is authorized to export this LNG in a volume
equivalent to 449 billion cubic feet per year (Bcf/yr) of natural gas
for a term extending through December 31, 2050.\3\
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\1\ Magnolia LNG, LLC, DOE/FE Order No. 3909, Docket No. 13-132-
LNG, Opinion and Order Granting Long-Term, Multi-Contract
Authorization to Export Liquefied Natural Gas by Vessel from the
Proposed Magnolia LNG Terminal to be Constructed in Lake Charles,
Louisiana, to Non-Free Trade Agreement Nations (Nov. 30, 2016),
reh'g denied, Order No. 3909-A (Apr. 2, 2018), amended by Order No.
3909-B (Dec. 10, 2020) (extending export term), further amended by
Order No. 3909-C (Apr. 27, 2022) (increasing export volume), reh'g
denied, Order No. 3909-D (June 24, 2022). On August 22, 2022, Sierra
Club filed a petition for review of DOE/FECM Order Nos. 3909-C and
3909-D in the United States Court of Appeals for the District of
Columbia Circuit. That case is ongoing. See Sierra Club v. U.S.
Dep't of Energy, No. 22-1217, Order (D.C. Cir. Feb. 28, 2023).
\2\ 15 U.S.C. 717b(a).
\3\ See supra note 1 (Order Nos. 3909-B and 3909-C).
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As relevant here, Order No. 3909-C requires Magnolia to ``commence
export operations using the planned liquefaction facilities no later
than seven years from the date of issuance of Order No. 3909 (i.e., by
November 30, 2023).'' \4\ In the Request, Magnolia asks DOE to extend
this commencement deadline from November 30, 2023, to April 15, 2026--
an extension of approximately 29 months.\5\
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\4\ Magnolia LNG, LLC, DOE/FE Order No. 3909-C, at 68 (Ordering
Para. D) (citing Magnolia LNG, LLC, DOE/FE Order No. 3909, at 161
(Term and Condition B), 168 (Ordering Para. D)).
\5\ Magnolia LNG, LLC, Request for Limited Extension to Start
Date of Term Authorization, Docket No. 13-132-LNG, 1, 5 (Mar. 20,
2023) [hereinafter Request].
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In support of this Request, Magnolia states that, on October 7,
2020, FERC issued an order granting Magnolia's request for a five-year
extension of time--from April 15, 2021, to April 15, 2026--to complete
construction of the Magnolia LNG Project and to make it available for
service (FERC Extension Order).\6\ Magnolia states that its
[[Page 23021]]
Request, if granted, would ``align its commencement of [export]
deadline under Order No. 3909 (as amended) with its completion of
construction deadline under its FERC Authorization, as amended by the
FERC Extension of Time Order.'' \7\ According to Magnolia, this
alignment of DOE and FERC deadlines would ``ensure the terms of its
non-FTA authorization accommodates its current construction schedule
and its non-FTA authorization remains valid during construction.'' \8\
Magnolia further states that it is not seeking to modify any aspect of
Order No. 3909, as amended, beyond extending the existing export
commencement deadline to April 15, 2026.\9\
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\6\ Id. at 4 (citing Magnolia LNG, LLC, FERC Staff Letter Order,
Request for Extension of Time (Oct. 7, 2020)). The FERC Extension
Order is available at <a href="https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20201007-3041">https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20201007-3041</a>.
\7\ Id. at 7.
\8\ Id. at 5.
\9\ Id. at 8; see also id. at 5.
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Magnolia asserts that good cause exists to grant the requested
extension to its export commencement deadline. Magnolia identifies the
actions it has taken to date to develop the Magnolia LNG Project, the
``unforeseeable developments in the global LNG market'' that have
affected Magnolia (and its former parent company, Glenfarne Group,
LLC), and its intention to execute commercial agreements sufficient to
support a positive final investment decision for the Magnolia LNG
Project within the requested timeframe.\10\
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\10\ Id. at 7.
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Magnolia adds that, because it is not proposing any change to the
approved design, operation, or export capacity of the Magnolia LNG
Project, DOE's public interest analyses under NGA section 3(a) \11\ set
forth in Order Nos. 3909 and 3909-C ``need not be revisited by [DOE] in
granting the Request.'' \12\
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\11\ 15 U.S.C. 717b(a).
\12\ Request at 8.
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Additional details can be found in the Request, posted on the DOE
website at: <a href="http://www.energy.gov/sites/default/files/2023-03/Magnolia%20LNG%20LLC%20Request%20for%20Extension%20of%20NFTA%20Commencement%20of%20Service%20Deadline.pdf">www.energy.gov/sites/default/files/2023-03/Magnolia%20LNG%20LLC%20Request%20for%20Extension%20of%20NFTA%20Commencement%20of%20Service%20Deadline.pdf</a>.
DOE Evaluation
In reviewing Magnolia's Request, DOE will consider any issues
required by law or policy under NGA section 3(a). To the extent
appropriate, DOE will consider the study entitled, Macroeconomic
Outcomes of Market Determined Levels of U.S. LNG Exports (2018 LNG
Export Study),\13\ DOE's response to public comments received on that
Study,\14\ and the following environmental documents:
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\13\ See NERA Economic Consulting, Macroeconomic Outcomes of
Market Determined Levels of U.S. LNG Exports (June 7, 2018),
<a href="http://www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf">www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf</a>.
\14\ U.S. Dep't of Energy, Study on Macroeconomic Outcomes of
LNG Exports: Response to Comments Received on Study; Notice of
Response to Comments, 83 FR 67251 (Dec. 28, 2018), <a href="http://www.govinfo.gov/content/pkg/FR-2018-12-28/pdf/2018-28238.pdf">www.govinfo.gov/content/pkg/FR-2018-12-28/pdf/2018-28238.pdf</a>.
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<bullet> Addendum to Environmental Review Documents Concerning
Exports of Natural Gas From the United States, 79 FR 48132 (Aug. 15,
2014); \15\
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\15\ The Addendum and related documents are available at
<a href="http://www.energy.gov/fecm/addendum-environmental-review-documents-concerning-exports-natural-gas-united-states">www.energy.gov/fecm/addendum-environmental-review-documents-concerning-exports-natural-gas-united-states</a>.
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<bullet> Life Cycle Greenhouse Gas Perspective on Exporting
Liquefied Natural Gas From the United States, 79 FR 32260 (June 4,
2014); \16\ and
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\16\ The 2014 Life Cycle Greenhouse Gas Report is available at
<a href="http://www.energy.gov/fecm/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states">www.energy.gov/fecm/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states</a>.
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<bullet> Life Cycle Greenhouse Gas Perspective on Exporting
Liquefied Natural Gas From the United States: 2019 Update, 84 FR 49278
(Sept. 19, 2019), and DOE's response to public comments received on
that study.\17\
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\17\ U.S. Dep't of Energy, Life Cycle Greenhouse Gas Perspective
on Exporting Liquefied Natural Gas from the United States: 2019
Update--Response to Comments, 85 FR 72 (Jan. 2, 2020). The 2019
Update and related documents are available at <a href="https://fossil.energy.gov/app/docketindex/docket/index/21">https://fossil.energy.gov/app/docketindex/docket/index/21</a>.
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Parties that may oppose the Request should address these issues and
documents in their comments and/or protests, as well as other issues
deemed relevant to the Request.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et
seq., requires DOE to give appropriate consideration to the
environmental effects of its proposed decisions. No final decision will
be issued in this proceeding until DOE has met its environmental
responsibilities.
Public Comment Procedures
In response to this Notice, any person may file a protest,
comments, or a motion to intervene or notice of intervention, as
applicable, addressing the Request. Interested parties will be provided
30 days from the date of publication of this Notice in which to submit
comments, protests, motions to intervene, or notices of intervention.
The public previously was given an opportunity to intervene in,
protest, and comment on Magnolia's prior non-FTA applications in Docket
No. 13-132-LNG.\18\ Therefore, DOE will not consider comments or
protests that do not bear directly on this Request.
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\18\ See supra note 1.
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Any person wishing to become a party to this proceeding evaluating
Magnolia's Request must file a motion to intervene or notice of
intervention.\19\ The filing of comments or a protest with respect to
the Request will not serve to make the commenter or protestant a party
to this proceeding, although protests and comments received from
persons who are not parties will be considered in determining the
appropriate action to be taken on the Request. All protests, comments,
motions to intervene, or notices of intervention must meet the
requirements specified by the regulations in 10 CFR part 590, including
the service requirements.
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\19\ Status as an intervenor in prior proceeding(s) in this
docket does not continue to this proceeding evaluating Magnolia's
Request, and therefore any person interested in intervening must
file a new motion to intervene (or notice of intervention, as
applicable). 10 CFR 590.303.
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As noted, DOE is only accepting electronic submissions at this
time. Please email the filing to <a href="/cdn-cgi/l/email-protection#fd9b988f9a9c8ebd958cd3999298d39a928b"><span class="__cf_email__" data-cfemail="f4929186939587b49c85da909b91da939b82">[email protected]</span></a>. All filings must
include a reference to ``Docket No. 13-132-LNG'' or ``Magnolia LNG, LLC
Request for Limited Extension'' in the title line.
Please Note: Please include all related documents and attachments
(e.g., exhibits) in the original email correspondence. Please do not
include any active hyperlinks or password protection in any of the
documents or attachments related to the filing. All electronic filings
submitted to DOE must follow these guidelines to ensure that all
documents are filed in a timely manner.
The Request and any filed protests, motions to intervene, notices
of intervention, and comments will also be available electronically by
going to the following DOE Web address: <a href="http://www.energy.gov/fecm/regulation">www.energy.gov/fecm/regulation</a>.
A decisional record on the Request will be developed through
responses to this Notice by parties, including the parties' written
comments and replies thereto. Additional procedures will be used as
necessary to achieve a complete understanding of the facts and issues.
If an additional procedure is scheduled, notice will be provided to all
parties. If no party requests additional procedures, a final Order may
be issued based on the official record, including the Request and
responses filed by parties pursuant to this Notice, in accordance with
10 CFR 590.316.
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Signed in Washington, DC, on April 10, 2023.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of
Resource Sustainability.
[FR Doc. 2023-07873 Filed 4-13-23; 8:45 am]
BILLING CODE 6450-01-P
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