Notice2023-26060
Notice of Availability for the Draft Environmental Assessment for the Mexico Pacific Limited Facility
Primary source
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Published
November 27, 2023
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE) has prepared a Draft Environmental Assessment (EA) to determine how to review the potential environmental impacts associated with authorizing Mexico Pacific Limited LLC (MPL) to export natural gas to Mexico and, after liquefaction in Mexico, to other countries from the proposed MPL Facility. DOE is also announcing a public comment period to receive comments on the Draft EA. DOE prepared the Draft EA in accordance with the National Environmental Policy Act of 1969 (NEPA), to inform its decision on authorization under the Natural Gas Act (NGA).
Full Text
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<title>Federal Register, Volume 88 Issue 226 (Monday, November 27, 2023)</title>
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[Federal Register Volume 88, Number 226 (Monday, November 27, 2023)]
[Notices]
[Pages 82876-82878]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26060]
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DEPARTMENT OF ENERGY
[Docket No. 22-167-LNG]
Notice of Availability for the Draft Environmental Assessment for
the Mexico Pacific Limited Facility
AGENCY: Office of Fossil Energy and Carbon Management, Department of
Energy.
ACTION: Notice of availability.
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SUMMARY: The U.S. Department of Energy (DOE) has prepared a Draft
Environmental Assessment (EA) to determine how to review the potential
environmental impacts associated with authorizing Mexico Pacific
Limited LLC (MPL) to export natural gas to Mexico and, after
liquefaction in Mexico, to other countries from the proposed MPL
Facility. DOE is also announcing a public comment period to receive
comments on the Draft EA. DOE prepared the Draft EA in accordance with
the National Environmental Policy Act of 1969 (NEPA), to inform its
decision on authorization under the Natural Gas Act (NGA).
DATES: The 30-day public comment period extends from the date of
publication of this Notice in the Federal Register through December 27,
2023.
ADDRESSES: Questions concerning the Draft EA or requests for a paper
copy should be directed to: Brian Lavoie via email to
<a href="/cdn-cgi/l/email-protection#690b1b0008074705081f06000c290118470d060c470e061f"><span class="__cf_email__" data-cfemail="92f0e0fbf3fcbcfef3e4fdfbf7d2fae3bcf6fdf7bcf5fde4">[email protected]</span></a> or phone at (202) 586-2459.
Electronic Filing by email (Strongly encouraged):
<a href="/cdn-cgi/l/email-protection#eb8d8e998c8a98ab839ac58f848ec58c849d"><span class="__cf_email__" data-cfemail="204645524741536048510e444f450e474f56">[email protected]</span></a>.
Postal Mail, Hand Delivery, or Private Delivery Services (e.g.,
FedEx, UPS, etc.): U.S. Department of Energy (FE-34), Office of
Regulation, Analysis, and Engagement, Office of Fossil Energy and
Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence
Avenue SW, Washington, DC 20585.
Due to potential delays in DOE's receipt and processing of mail
sent through the U.S. Postal Service, we encourage respondents to
submit filings electronically to ensure timely receipt.
An electronic copy of the Draft EA may be found online on the
following website: <a href="https://www.energy.gov/sites/default/files/2023-11/MPL_Draft%20Environmental%20Assessment_Final_11.21.23.pdf">https://www.energy.gov/sites/default/files/2023-11/MPL_Draft%20Environmental%20Assessment_Final_11.21.23.pdf</a>.
FOR FURTHER INFORMATION CONTACT: Brian Lavoie, 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) 586-2459, <a href="/cdn-cgi/l/email-protection#690b1b0008074705081f06000c290118470d060c470e061f"><span class="__cf_email__" data-cfemail="f496869d959ada9895829b9d91b49c85da909b91da939b82">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
On December 28, 2022, MPL filed an application (Application) \1\
with DOE's
[[Page 82877]]
Office of Fossil Energy and Carbon Management (FECM) under section 3 of
the Natural Gas Act (NGA).\2\ MPL supplemented its Application on
January 24, 2023.\3\ MPL stated that it was seeking additional export
authority in connection with the continuing development of its proposed
liquefied natural gas (LNG) production and offtake facility, referred
to as the MPL Facility, to be located on the Gulf of California, in the
State of Sonora, Mexico.\4\ Previously, in Docket No. 18-70-LNG, DOE
authorized MPL to export U.S.-sourced LNG from the MPL Facility in a
total volume equivalent to 621 billion cubic feet (Bcf) per year (Bcf/
yr) of natural gas. MPL also stated that it has since advanced and
refined the Facility's design to ``enhance the efficiency and optimize
the operational capabilities of the MPL Facility.'' \5\
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\1\ Mexico Pacific Limited LLC, Application for Additional Long-
Term, Multi-Contract Authorization to Export Natural Gas to Mexico
and to Re-Export Liquefied Natural Gas to Free Trade Agreement and
Non-Free Trade Agreement Nations, Docket No. 22-167-LNG (Dec. 28,
2022) [hereinafter MPL App.].
\2\ 15 U.S.C. 717b. The authority to regulate the imports and
exports of natural gas, including liquefied natural gas, under
section 3 of the NGA has been delegated to the Assistant Secretary
for FECM in Redelegation Order No. S4-DEL-FE1-2023, issued on April
10, 2023.
\3\ Mexico Pacific Limited LLC, Supplement to Application,
Docket No. 22-167-LNG (Jan. 24, 2023) [hereinafter MPL App. Supp.].
\4\ See MPL App. at 4, 6.
\5\ Id. at 4.
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MPL requests long-term, multi-contract authorization to export an
additional quantity of U.S.-sourced natural gas to Mexico, and after
liquefaction in Mexico, to other countries, in a total volume
equivalent to 425.57 billion cubic feet (Bcf) per year (Bcf/yr) of
natural gas (1.17 Bcf per day (Bcf/d)),\6\ as follows:
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\6\ Id. at 1.
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(i) To use approximately 134.35 Bcf/yr (0.37 Bcf/d) in Mexico as
``fuel for pipeline transportation or liquefaction in Mexico;'' \7\
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\7\ Id. at 3.
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(ii) To use approximately 291.22 Bcf/yr of natural gas (0.80 Bcf/d)
of natural gas in the proposed MPL Facility, where the U.S.-sourced
natural gas would be liquefied, then re-exported \8\ as LNG by vessel
to:
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\8\ For purposes of this proceeding, ``re-export'' means to ship
or transmit U.S.-sourced natural gas in its various forms (gas,
compressed, or liquefied) subject to DOE's jurisdiction under the
NGA, 15 U.S.C. 717b, from one foreign country (i.e., a country other
than the United States) to another foreign country.
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(a) Any country with which the United States has entered into a
free trade agreement (FTA) requiring national treatment for trade in
natural gas (FTA countries), under NGA section 3(c); \9\ and
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\9\ 15 U.S.C. 717b(c). The United States currently has FTAs
requiring national treatment for trade in natural gas with
Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El
Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua,
Oman, Panama, Peru, Republic of Korea, and Singapore. FTAs with
Israel and Costa Rica do not require national treatment for trade in
natural gas.
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(b) Any other country with which trade is not prohibited by U.S.
law or policy (non-FTA countries), under NGA section 3(a).\10\
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\10\ 15 U.S.C. 717b(a); see MPL App. at 3, 4, 10.
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MPL requests these FTA and non-FTA authorizations on a non-additive
basis for a term to commence on the earlier of the date of first export
or seven years from the date of the final order granting export
authorization, and extending through December 31, 2050.\11\ MPL states
that the total volume of 425.57 Bcf/yr that it is seeking authorization
to export, when added to the 621 Bcf/yr that MPL is currently
authorized to export in Docket No. 18-70-LNG, would equal a total of
1,046.57 Bcf/yr to be exported from the MPL Facility.\12\
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\11\ MPL App. at 10. Additionally, MPL requests these
authorizations on its own behalf and as agent for other entities
that hold title to the U.S.-sourced natural gas at the time it is
exported to Mexico and/or at the time it is re-exported as LNG from
Mexico. Id. at 11.
\12\ Id. at 3, 8-9.
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On April 28, 2023, in Order No. 4995, DOE granted the FTA portion
of the Application, as required by NGA section 3(c).\13\ MPL is thus
authorized to export natural gas to Mexico in the total requested
additional volume of 425.57 Bcf/yr of natural gas--which includes
export by pipeline for use as a fuel for pipeline transportation or
liquefaction (134.35 Bcf/yr) and re-export after liquefaction in Mexico
to FTA countries (291.22 Bcf/yr).\14\ The requested non-FTA volume, if
approved, would not be additive to this FTA volume.
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\13\ Mexico Pac. Ltd. LLC, DOE/FECM Order No. 4995, Docket No.
22-167-LNG, Order Granting Long-Term Authorization to Export Natural
Gas to Mexico and to Other Free Trade Agreement Nations (Apr. 28,
2023).
\14\ See id. at 5, 13.
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According to MPL, the U.S-sourced natural gas would be exported to
Mexico at the United States-Mexico border via existing and,
potentially, future cross-border natural gas transmission
pipelines.\15\ MPL adds that it would not source natural gas for the
MPL Facility from Mexico.\16\ MPL plans initially to receive the
natural gas produced in the United States and exported to Mexico
through existing cross-border natural gas transmission pipelines,
including an interstate pipeline owned by Sierrita Gas Pipeline LLC,
and intrastate natural gas pipelines owned by Comanche Trail Pipeline,
LLC, Roadrunner Gas Transmission, LLC and Trans Pecos Pipeline,
LLC.\17\ MPL asserts that, if the proposed border crossing pipeline
owned by Saguaro Connector Pipeline, L.L.C. obtains authorization and
the related Presidential Permit from the Federal Energy Regulatory
Commission (FERC), MPL would expect to add that pipeline to the several
existing pipeline routes over which MPL and its customers may transport
natural gas from the United States to Mexico for delivery to the MPL
Facility.\18\
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\15\ See MPL App. at 9; see also MPL App. Supp. at 1-2.
\16\ See MPL App. at 9.
\17\ See id.
\18\ MPL App. Supp. at 2.
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For the non-FTA portion of MPL's request,\19\ DOE published a
notice of the Application in the Federal Register (Notice of
Application) on February 1, 2023.\20\ The Notice of Application called
on interested persons to submit protests, motions to intervene, notices
of intervention, and comments by April 3, 2023.\21\ On March 29, 2023,
the Institute for Energy Economics and Financial Analysis filed
comments opposing MPL's Application.\22\ On April 3, 2023, Public
Citizen, Inc. and Sierra Club each filed a motion to intervene and
protest, with Sierra Club's filing including additional exhibits.\23\
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\19\ DOE finds that the requirement for public notice of
applications, as well as other hearing-type procedures in 10 CFR
part 590, apply only to applications seeking to export natural gas,
including LNG, to non-FTA countries.
\20\ See Mexico Pacific Limited LLC; Application for Additional
Long-Term, Multi-Contract Authorization to Export U.S.-Sourced
Natural Gas to Mexico and to Re-Export Liquefied Natural Gas from
Mexico to Non-Free Trade Agreement Countries; Notice of Application,
88 FR 6716 (Feb. 1, 2023) [hereinafter Notice of App.].
\21\ Id.
\22\ Institute for Energy Economics and Financial Analysis,
Comments Regarding the Application to Expand Export and Re-Export
Operations by Mexico Pacific Limited LLC, Docket No. 22-167-LNG
(Mar. 29, 2023).
\23\ Public Citizen, Inc., Motion to Intervene and Protest,
Docket No. 22-167-LNG (Apr. 3, 2023); Sierra Club, Motion to
Intervene and Protest, Docket No. 22-167-LNG (Apr. 3, 2023). For
additional procedural history, including but not limited to
Supplemental Comments subsequently filed by Sierra Club and opposed
by MPL, see Docket No. 22-167-LNG.
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Before reaching a final decision on a non-FTA application under NGA
section 3(a), DOE must also comply with NEPA.\24\ In evaluating
applications for re-export authorization similar to MPL's Application,
DOE has used recent guidance to inform its environmental analysis. On
January 27, 2021, the President issued Executive Order (E.O.) No.
14008, Tackling the Climate Crisis at Home and Abroad.\25\
[[Page 82878]]
Additionally, on April 20, 2022, the Council on Environmental Quality
(CEQ) issued a final rule for implementing CEQ's NEPA regulations,
including the definition of environmental ``effects.'' \26\ DOE has
determined that, consistent with E.O. 14008 and its obligations under
NEPA, it is appropriate to evaluate the potential environmental
impacts--including the greenhouse gas emissions--of exporting (or re-
exporting) U.S.-sourced LNG from the proposed MPL Facility to non-FTA
countries. Therefore, on October 23, 2023, DOE issued a ``Notice of
Environmental Assessment'' announcing that it is undertaking an
environmental assessment (EA) under NEPA to analyze MPL's requested
exports of U.S.-sourced LNG to non-FTA countries.\27\
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\24\ 42 U.S.C. 4321 et seq.
\25\ E.O. 14008 sets forth policies to address climate change,
specifically to ``organize and deploy the full capacity of [Federal]
agencies to combat the climate crisis.'' Exec. Order No. 14008 of
Jan. 27, 2021, Tackling the Climate Crisis at Home and Abroad, 86 FR
7619 (Feb. 1, 2021), <a href="http://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad">www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad</a>. E.O. 14008
further requires the ``Federal Government [to] drive assessment,
disclosure, and mitigation of climate pollution and climate-related
risks in every sector'' of the U.S. economy. Id.
\26\ See Council on Envtl. Quality, National Environmental
Policy Act Implementing Regulations Revisions; Final Rule, 87 FR
23453 (Apr. 20, 2022).
\27\ Mexico Pac. Ltd. LLC, Notice of Environmental Assessment,
Docket No. 22-167-LNG (Oct. 23, 2023).
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The Draft EA examined the potential environmental impacts
associated with unconventional natural gas exploration and production
activities in the lower-48 states; the utilization of the cross-border
pipelines that interconnect the United States and Mexico and that MPL
may utilize for its U.S. natural gas supply; descriptions of Mexico's
environmental review process for the construction and operation of
liquefaction terminals and related facilities; marine transport of LNG
exported from the proposed MPL Facility; and the global nature of GHG
emissions associated with re-exporting U.S.-sourced LNG from Mexico
from a life cycle perspective.
NEPA Process and Public Involvement
DOE prepared the Draft EA in accordance with the CEQ regulations at
Title 40, Code of Federal Regulations, parts 1500-1508 (40 CFR 1500-
1508) and DOE's NEPA implementing procedures at 10 CFR part 1021. DOE
published a Notice of Environmental Assessment to Docket No. 22-167-LNG
on October 23, 2023, announcing its intent to prepare an EA. DOE is
providing opportunities for public review and comments on this Draft EA
(see DATES and ADDRESSES sections of this notice).
Signed in Washington, DC, on November 21, 2023.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of
Resource Sustainability.
[FR Doc. 2023-26060 Filed 11-24-23; 8:45 am]
BILLING CODE 6450-01-P
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