Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi Pipeline, L.P. Docket No. PF Request to Initiate Pre-Filing Review Process

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June 1, 2015

Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.W. Room 1A, East Washington, D.C. 20426

Re:

Norton Rose Fulbright US LLP 666 Fifth Avenue, 31st Floor New York, New York 10103-3198 United States Lisa Tonery Partner Direct line +1 212 318 3009 [email protected] Tel +1 212 318 3000 Fax +1 212 318 3400 nortonrosefulbright.com

Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi Pipeline, L.P. Docket No. PF15-___-000 Request to Initiate Pre-Filing Review Process

Dear Ms. Bose: Pursuant to the requirements of 18 C.F.R. § 157.21 (2014), Corpus Christi Liquefaction, LLC (“CCL”) and Cheniere Corpus Christi Pipeline, L.P. (“CCPL”) hereby request that the Federal Energy Regulatory Commission (“Commission” or “FERC”) initiate the Commission’s National Environmental Policy Act (“NEPA”) 1 pre-filing review of a proposed expansion (“Stage 3 Project”) of the Corpus Christi Liquefaction Project approved by the Commission in Docket No. CP12-507-000 and currently under construction (“Liquefaction Project”), as well as new associated bi-directional interstate natural gas pipeline facilities (“Stage 3 Pipeline”). The Stage 3 Project consists of the addition of two liquefaction trains and a fourth LNG tank to the Liquefaction Project. In order to deliver feed gas to the Stage 3 Project, CCPL is proposing to construct and operate the Stage 3 Pipeline, a new 22-mile-long, 42-inch-diameter pipeline that would run parallel to the 48-inch-diameter pipeline approved by the Commission in Docket No. CP12-508-000. The Stage 3 Project and Stage 3 Pipeline are referred to collectively as the “Project”. In compliance with the Commission’s mandatory pre-filing procedures, CCL and CCPL submit the following:

1. Project Schedule2 CCL and CCPL anticipate filing their formal application pursuant to Sections 3 and 7(c) of the Natural Gas Act (“NGA”) 3 no later than January 2016 and will respectfully request that the Commission issue an Order authorizing the siting, construction and operation of the Project no later than March 2017. CCL and CCPL anticipate filing the Project Implementation Plan immediately thereafter and requesting authorization to commence construction by May 2017. 1

42 U.S.C. § 4321 et seq. (2012).

2

18 C.F.R. § 157.21(d)(1) (2014).

3

15 U.S.C. §§ 717c and 717f (2012).

Norton Rose Fulbright US LLP is a limited liability partnership registered under the laws of Texas. Norton Rose Fulbright US LLP, Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP and Norton Rose Fulbright South Africa Inc are separate legal entities and all of them are members of Norton Rose Fulbright Verein, a Swiss verein. Norton Rose Fulbright Verein helps coordinate the activities of the members but does not itself provide legal services to clients. Details of each entity, with certain regulatory information, are available at nortonrosefulbright.com.

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The Project in-service date is targeted for the 1st Quarter of 2021. Additional schedule detail is provided below.

Key Milestone Activities

Anticipated Schedule

Submit Request to Initiate Pre-filing Review Process

June 2015

File NGA Sections 3 and 7(c) Application

January 2016

Issuance of Environmental Assessment/Environmental Impact Statement

January 2017

Issuance of Authorization

March 2017

File Initial Implementation Plan

April 2017

Commence Terminal Construction

May 2017

Commence Pipeline Construction

March 2018

Project In Service

1st Quarter 2021

2. Zoning and Availability4 The proposed Stage 3 Project would be located on property southeast of the City of Gregory, Texas and immediately north of the Liquefaction Project site. The Stage 3 Project site is located in an industrial area, which was previously used for spent bauxite disposal, and was reviewed and authorized by the Commission for the disposal of dredge spoils associated with the siting and construction of the Liquefaction Project. The Stage 3 Project site will be situated in unincorporated San Patricio County and would not be subject to city or county zoning ordinances. The 22-mile-long, 42-inch-diameter Stage 3 Pipeline would be constructed from north of the City of Sinton, Texas, to the Stage 3 Project and would traverse mostly rural, agricultural areas. Land needed for construction and operation of the Stage 3 Pipeline would be leased from landowners. Pipeline compression facilities would be located on land leased or owned by CCPL.

3. Pre-Filing Request5 As an LNG project, the pre-filing process is required to be utilized and a formal application will not be filed less than 180 days from the date of approval from the Commission to enter the prefiling process.

4

18 C.F.R. § 157.21(d)(2).

5

18 C.F.R. § 157.21(d)(3).

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4. Project Description6 The Project consists of the siting, construction, and operation of (1) LNG liquefaction and storage facilities near Gregory, Texas, and (2) an approximately 22-mile-long pipeline from a location north of the City of Sinton, Texas, to the Stage 3 Project. Attachment 1 contains plot plans and figures of the Project location. Stage 3 Project Facilities The Stage 3 Project consists of (a) two ConocoPhillips Optimized CascadeSM LNG liquefaction trains, each capable of processing up to approximately 700 million cubic feet per day of natural gas and with average liquefaction capacity of approximately 5 million tonnes per annum, (b) one LNG full containment tank of approximately 160,000 cubic meters net capacity and (c) various new support facilities similar in nature to those authorized for the Liquefaction Project. The design of the liquefaction trains and LNG tank are identical to those reviewed and approved by the Commission as components of the Liquefaction Project. The Stage 3 Project will be interconnected with the Liquefaction Project facilities, some of which will require minor modifications. No additional marine facilities are proposed in conjunction with the Stage 3 Project, but rather, the Stage 3 Project will utilize the Liquefaction Project’s marine facilities. Each of the proposed LNG trains will contain the following equipment:

6

•

Facilities to remove carbon dioxide, hydrogen sulfide and other sulfur compounds from the feed gas;

•

Facilities to remove water and mercury from the feed gas;

•

Facilities to remove heavy hydrocarbons from the feed gas;

•

A thermal oxidizer for combusting waste gas;

•

Six aero-derivative mechanical drive LM2500 G4+ gas turbines with dry low emissions (“DLE”) combustion systems for emissions control and inlet air chilling;

•

Multiple ethylene, propane and methane refrigerant compressors and associated cold boxes;

•

Waste heat recovery systems;

•

Induced draft air coolers;

•

Associated fire and gas and safety systems; and

•

Associated control systems and electrical infrastructure.

18 C.F.R. § 157.21(d)(4).

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Stage 3 Pipeline The Stage 3 Pipeline will consist of: •

An approximately 22-mile-long, 42-inch-diameter pipeline originating at the Stage 3 Project facilities and terminating north of the City of Sinton, Texas;

•

Additional compression at the Sinton Compressor Station;7

•

Appurtenant facilities including metering, pressure regulation and filter separation;

•

Launcher/receiver facilities at both ends of the 22-mile-long pipeline; and

•

Mainline valve facilities.

The Stage 3 Pipeline will be bi-directional and designed for a maximum allowable operating pressure of 1,440 pounds per square inch gauge and a capacity of approximately 1.5 billion standard cubic feet per day. The Stage 3 Pipeline facilities will be located entirely within San Patricio County, Texas.

5. List of Relevant Federal and State Agencies in the Project Area with Relevant Permitting Requirements, and Statement Indicating Agency Awareness of Corpus Christi Liquefaction’s Intention to Use Pre-Filing Process (including contact names, phone numbers, and whether agencies agree to participate in this process).8 Attachment 2 to this letter identifies the federal and state agencies that have some form of review and/or permitting authority over the Project and further reflects contact information as well as the timeframe within which CCL and CCPL propose to file with such agencies for permits or other authorizations, where applicable. For the most part, CCL and CCPL intend to pursue such authorizations concurrent with the instant Commission process and expect to submit to the relevant agencies all applications for federal authorizations no later than January 2016. CCL and CCPL anticipate that the relevant agencies will issue their respective federal authorizations for the Project in accordance with the schedule set by the Commission pursuant to Section 157.9 of the Commission’s regulations. 9 CCL and CCPL are in the process of contacting the agencies to determine their level of interest in participating in the pre-filing process. The Railroad Commission of Texas has been designated by the Governor as the agency to consult with the Commission regarding state and local safety considerations.

7

The Sinton compressor station was approved in Docket No. CP12-508-000.

8

18 C.F.R. § 157.21(d)(5).

9

18 C.F.R. § 157.9.

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6. List and Description of the Interest of Other Persons/Organizations Contacted about the Project10 CCL and CCPL are initiating a public outreach program for the Project. CCL and CCPL have had meetings and discussions with agencies (federal and state) and are currently reaching out to individuals, groups, and organizations regarding the Project’s potential effects on the environment, the relationship with the community during construction and operation, and public safety issues.

7. Project Work Already Done11 As noted above, CCL and CCPL have contacted federal and state agencies about the Project (see Attachment 2). CCL and CCPL will continue to meet with various stakeholder groups and individuals as outlined in the Public Outreach Plan discussed below. 

Agency Consultations: See Item Nos. 5 and 6 above and Attachment 2 for a list of agency consultations.



Engineering: CCL has conducted some geotechnical investigations in the area of the proposed Stage 3 Project. CCL and CCPL are currently well advanced in the development of engineering and design plans for all components of the Project.



Environmental and Engineering Contractor Engagement: To date, CCL and CCPL have engaged the following contractors to help develop the Project: o o o o o o o

Bechtel Corporation (liquefaction facility engineering) Tetra Tech, Inc. (environmental) Project Consulting Services, Inc. (pipeline engineering) DiSorbo, Inc. (air permitting) GexCon US (hazard analysis) Tolunay-Wong Engineers, Inc. (geotechnical) HDR, Inc. (wetlands assessment)



Environmental Studies: CCL has initiated some environmental studies, including air modeling, for the proposed Stage 3 Project liquefaction facilities.



Public Outreach and Open House Meetings: See Item Nos. 6 and 10 for public outreach plans. Additionally, an Open House Meeting will be scheduled in coordination with Commission Staff at a location in the vicinity of the Project.

10

18 C.F.R. § 157.21(d)(6).

11

18 C.F.R. § 157.21(d)(7).

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8. Third Party Consultant12 CCL and CCPL propose that the Commission utilize Perennial Environmental Services, LLC (“Perennial”) as the third-party consultant for the Project. Perennial was the Commission’s thirdparty consultant for the preparation of the NEPA document for the Liquefaction Project and associated pipeline facilities in Docket Nos. CP12-507-000 and CP12-508-000. Accordingly, Perennial is very familiar with the Project area. Given the foregoing and the similarity of the Project to the facilities addressed in Docket Nos. CP12-507-000 and CP12-508-000, there would be significant efficiencies gained through use of Perennial as the Commission’s thirdparty consultant in this proceeding. Consequently, CCL and CCPL propose to expand the scope of their third-party contract with Perennial to include the Project, rather than issuing a request for proposals for a new third-party consultant to assist the Commission staff in this proceeding.

9. Acknowledgement:

Complete Environmental Report and Complete Application Required at the Time of Filing13

CCL and CCPL acknowledge that a complete Environmental Report and a complete application under Sections 3 and 7(c) of the NGA must be submitted to the Commission at the time of filing.

10. Public Participation Plan Details14 As part of its public outreach plan, CCL and CCPL will conduct the following activities: 1. Will make a formal announcement of the Project to the local, state, and federal elected officials, and also notify key special interest groups; 2. Will hold meetings with local, state and federal regulatory agencies previously contacted to identify other stakeholders and to initiate pre-filing activities with each agency; 3. Will continue to identify other governmental organizations to inform them about the Project and address any issues that are raised by the parties represented by these organizations; 4. Will continue to identify and meet with key audiences and stakeholder groups, local associations, neighborhood groups and other non-government organizations to inform them about the Project and address any issues that may be raised; 5. Will provide all required support needed for FERC to conduct public scoping meetings;

12

18 C.F.R. § 157.21(d)(8).

13

18 C.F.R. § 157.21(d)(10).

14

18 C.F.R. § 157.21(d)(11).

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6. CCL and CCPL are wholly-owned subsidiaries of Cheniere Energy, Inc. (“Cheniere”). Pertinent information regarding the status of the Project will be posted on the publicly available Cheniere website. The website address is www.cheniere.com and will be populated with the information listed below: • • • • • • • •

A list of public repositories where all project related information, including project maps, will be available for inspection; Frequently asked questions, with responses (“FAQs”); A list of questions and issues raised at open houses and CCL’s/CCPL’s responses to each; Newsletter contents; Applications filed with the FERC; Any data requests, and CCL’s/CCPL’s responses to each; Environmental documents issued by FERC; and Other appropriate project-related information.

A single point of contact has been established for the Project. The contact will be: Andrew Chartrand Director, Environmental and Regulatory Projects Cheniere Energy, Inc. 700 Milam Street Suite 1900 Houston, TX 77002 Office: (713) 375-5429 E-mail: [email protected] Through the pre-filing process, CCL and CCPL will endeavor to identify and resolve all of the stakeholders’ potential issues and concerns, thereby providing the Commission with an application that can be moved expeditiously through the NEPA process. The Commission’s early assistance in facilitating the NEPA process is greatly appreciated.

11. Submittal to U.S. Coast Guard of Letter of Intent and Preliminary Waterway Suitability Assessment pursuant to 33 C.F.R. § 127.007 15 CCL certifies that a Letter of Intent has been submitted to the U.S. Coast Guard (“USCG”). Additionally, a Waterway Suitability Assessment (“WSA”) for the Liquefaction Project was submitted to the USCG Captain of the Port (“COTP”) at Sector Corpus Christi on August 30, 2012. An Addendum to the WSA was submitted on January 28, 2013 to provide additional information requested by the USCG on vessel traffic management on the La Quinta Channel, waterside security resources, and dedicated tugs. The USCG COTP issued a Letter of Recommendation on March 21, 2013. (Docket No. CP12-507-000). Annual review reports were submitted to the USCG on March 6, 2014 and February 23, 2015. The only impact that the Stage 3 Project will have on marine operations is an anticipated increase in vessel traffic from the currently-authorized 300 vessels up to 400 vessels. 33 C.F.R. 15

18 C.F.R. § 157.21(d)(12).

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§ 127.007(h)(3) requires that “until the facility begins operation, owners or operators must... [u]pdate the WSA if there are any changes in conditions, such as changes to the port environment, the LNG or LHG facility, or the tanker route, that would affect the suitability of the waterway for LNG or LHG traffic.” Included herewith as Attachment 3 is e-mail correspondence from LCDR Russell Pickering, USCG Sector Corpus Christi, Waterways Branch, confirming that with submission of the LOI, CCL has satisfied the requirements of providing a Preliminary WSA for the Stage 3 Project and that a new Follow-On WSA will be submitted no later than the date that CCL submits its application to FERC following completion of the pre-filing process (see Attachment 3). CCL and CCPL respectfully request that the Commission grant its request to initiate the NEPA pre-filing process by no later than June 8, 2015. Should you have any questions about this request, please feel free to contact the undersigned at (212) 318-3009. Respectfully submitted, /s/Lisa M. Tonery Lisa M. Tonery Charles R. Scott Attorneys for Corpus Christi Liquefaction, LLC and Cheniere Corpus Christi Pipeline, L.P. Enclosures cc:

Ann Miles Terry Turpin

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Attachment 1

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Attachment 2

Federal and State Environmental Permits/Approvals/Consultations Corpus Christi Liquefaction, LLC / Cheniere Corpus Christi Pipeline, L.P. Agency and Agency Contact

Anticipated Submittal

Anticipated Receipt

Section 7 Endangered Species Act Consultation/Clearance; Migratory bird consultation; Fish and Wildlife Coordination Act

Initiate 2nd Quarter 2015

4th Quarter 2015

Called on 5/29/15. Pat Clements will be POC. Will respond to FERC requests but likely not officially cooperate.

Clean Water Act Section 404 Permit

January 2016

3rd Quarter 2016

Called and left message on 5/29/15.

Essential Fish Habitat; Endangered Species Act Aquatic Threatened and Endangered Species; Marine Mammal Protection Act; Fish and Wildlife Coordination Act

Initiate 2nd Quarter 2015

4th Quarter 2015

Received email that no additional EFH consultation necessary on 5/28/15.

Waterway Suitability Assessment

Initiated 1st Quarter 2015

1st Quarter 2016

Received email from USCG on 5/29/15 with concurrence on strategy for Preliminary WSA and Follow-On WSA.

Permit/Approval/Consultation

Comments/Notes

FEDERAL U.S. Fish & Wildlife Service Corpus Christi Ecological Services Field Office c/o TAMU-CC 6300 Ocean Drive, #5837 Corpus Christi, TX 78412 Dawn Gardiner Assistant Field Supervisor (361) 994-9005 U.S. Army Corps of Engineers Corpus Christi Field Office 5151 Flynn Parkway, Suite 306 Corpus Christi, TX 78411 Nicholas Laskowski (361) 814-5847 NOAA Fisheries, Southeast Region 263 13th Avenue South St. Petersburg, FL 33701 Dr. Roy Crabtree Regional Administrator (727) 824-5301 U.S. Coast Guard Sector Corpus Christi 8930 Ocean Drive Corpus Christi, TX 78419 Capt. Samuel R. Creech Commander (361) 939-6393

Page 1 of 3

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Stage 3 Project

Federal and State Environmental Permits/Approvals/Consultations Corpus Christi Liquefaction, LLC / Cheniere Corpus Christi Pipeline, L.P. Agency and Agency Contact U.S. Environmental Protection Agency Region 6 1445 Ross Avenue Suite 1200 Dallas, TX 75202

Permit/Approval/Consultation NPDES Industrial Water Discharge; Hydrostatic Test Water Discharge

Anticipated Submittal

Anticipated Receipt

January 2016

3rd Quarter 2016

Brent Larsen (214) 665-7523 U.S. Department of Energy FE-34 PO Box 44375 Washington, D.C. 20026-4375

Follow-up on 5/29/15. Received letter and passed on to LNG reviewer Maria Okpala (214-6653152). Re-sent email to Maria on 5/29/15. Left voicemail with Rob Lawrence for overall coordination on 6/1/15.

Authorization to Export LNG

January 2016

4th Quarter 2015 for FTA nations; 2nd Quarter 2017 for nonFTA nations

Meeting scheduled for 6/2/15.

Determination of No Hazard to Air Navigation (14 CFR Part 77)

January 2016

April 2016

No follow-up required, online permit.

Air Permits

August 2015

3rd Quarter 2016

Left message with assistant on 5/29/15.

Ms. Larine A. Moore Docket Room Manager (202) 586-4403 Federal Aviation Administration

Comments/Notes

STATE Texas Commission on Environmental Quality 12100 Park 35 Circle MC163 Austin, TX 78753

Received call back from Sean O’Brien (512-239-1137) who was forwarded email. TCEQ will not be a cooperating agency but will assist with modeling for new source review.

Mike Wilson Director (512) 239-1250

Page 2 of 3

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Stage 3 Project

Federal and State Environmental Permits/Approvals/Consultations Corpus Christi Liquefaction, LLC / Cheniere Corpus Christi Pipeline, L.P. Agency and Agency Contact Texas Parks and Wildlife Department Habitat Assessment Program 4200 Smith School Road Austin, TX 78744-3291

Permit/Approval/Consultation

Anticipated Submittal

Anticipated Receipt

State threatened and endangered species review

Initiate 2nd Quarter 2015

4th Quarter 2015

Follow-up email sent 6/1/15.

Section 106 NHPA Consultation, Clearance

Initiate 2nd Quarter 2015

4th Quarter 2015

Left message with assistant on 5/29/15.

Section 401 Water Quality Certification; Hydrostatic Test Water Discharge Permit; Coastal Zone Consistency Determination

January 2016

3rd Quarter 2016

Left voicemail on 5/29/15.

Comments/Notes

Michael Warriner (512) 389-4800 Texas Historical Commission 1511 Colorado P.O. Box 12276 Austin, TX 78711-2276 Mark Denton Archeology Division (512) 463-5711 Railroad Commission of Texas Oil and Gas Division 1701 North Congress P.O. Box 12967 Austin, TX 78711-2967 Leslie Savage (512) 463-7308

Page 3 of 3

Call returned on 6/1/15. RRC does not anticipate being a cooperating agency or participating during prefiling.

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Stage 3 Project

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Attachment 3

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Begin forwarded message: From: "Pickering, Russell T LCDR" Date: May 28, 2015 at 3:31:59 PM CDT To: "[email protected]" Cc: Andrew Chartrand , Joseph Moake , "Stineman, Jalyn G CDR" Subject: RE: Re: CCL LOI and WSA Confirmed. -----Original Message----From: [email protected] [mailto:[email protected]] Sent: Wednesday, May 27, 2015 6:06 PM To: Pickering, Russell T LCDR Cc: Andrew Chartrand; Joseph Moake Subject: Re: CCL LOI and WSA LCDR Pickering,

Now that we have submitted the new LOI, would you please confirm that we have satisfied the requirements of 33 CFR 127.007 with respect to the Preliminary WSA for the CCL Stage 3 project in that the USCG has accepted the previous WSA for Stages 1-2 as the Preliminary WSA for Stage 3 and that a new Follow-on WSA will be submitted no later than CCL's filing of its application with FERC. Thank you.

Best regards,

Tom

Capt. Tom Rodino, USCG (Ret.) 113 Calle Conejo Bayview, TX 78566-4467 Tel. 956-233-9931 Fax 956-233-4213 Cell 956-434-9841 This e-mail and any attachments are for the sole use of the intended recipient(s) and may contain information that is legally privileged and/or confidential information. If you are not the intended recipient(s) and have received this e-mail in error, please immediately notify the sender by return e-mail and delete this e-mail from your computer. Any distribution, disclosure or the taking of any other action by anyone other than the named recipient is strictly prohibited.

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Document Content(s) CCL and CCCP Transmittal.PDF..........................................1-8 Attachment 1.PDF......................................................9-12 Attachment 2.PDF......................................................13-16 Attachment 3.PDF......................................................17-18