Capitol Hill Ocean Week Managing Emerging Demands for LNG

LNG Two Points It’s Natural Gas and is the environmental fuel of choice 96% of natural gas reserves are outside North America

LNG Terminals 2 Primary Issues Safety Environment

The LNG Map Has Changed 2002 vs Existing and Proposed LNG Terminals

Why? U.S. Needs All Sources to Meet Gas Demand NET PIPELINE IMPORTS 85% 64% 14% 7% LNG IMPORTS 24% 1% ALASKAN GAS 5% LOWER 48 PRODUCTION 14% 1%

The Energy Policy Act of 2005 – LNG Highlights – Mandatory PF Rulemaking Lead agency for NEPA, Federal Authorizations, and establish an expeditious schedule FERC’s exclusive siting authority does not impact State’s authority under CZMA, CWA, and CAA Consultation with designated State Safety agency Consultation with DoD Emergency response plan prior to construction

Mandatory Pre-filing Process for New LNG Import Facilities – October 2005 Promotes early identification and resolution of issues Facilitates State agency and community involvement

FERC LNG Program LNG program ensures safe operation and reliability Work closely with the US Coast Guard, Department of Transportation, the States and local governments Process ensures terminals and associated LNG vessel traffic meet safety and environmental requirements during construction and operation

April 30, 2015 LNG Engineering Branch Terry Turpin (Acting) LNG Compliance Branch Chris M. Zerby OEP Structure

Interagency Agreement on LNG Import/Export Facilities Address safety and security issues in a comprehensive manner Maximize coordination, avoid duplication of effort FERC- Siting approval, lead Federal agency for NEPA USDOT – Safety regulations for onshore facility Coast Guard – Safety and security of LNG vessels and waterfront facility, site security

Safety is the First Priority Safety Terminal Operations Offloading Storage Breach Potential/Outcomes Vaporization Send out Pipeline Security Fire & Rescue Vessel Transit USCG/Pilot Boarding Transit Time (exposure) Escort Tugs Breach Potential/Outcomes Security Fire & Rescue FERC / USDOTUSCG

Assessing Impacts to the Environment Environmental Construction Pile Driving Dredging (coastal resources) Anchors Impacts Air Emissions Cultural Resource Avoidance Pipeline Trenching (coastal resources) EFH T&E Species CZMA Terminal Operations Air Emissions Socioeconomics Traffic Cooling Water Uptake Vessel Transit Vessel Traffic Recreational Conflict Ballast Uptake/Discharge Marine Mammals/Sea Turtles Transit Corridor Features Spill Consequences CZMA T&E Species FERCUSCG

Commercial Vessel Traffic to U.S. Ports In 2004, a total of 7,241 individual vessels, greater than or equal to 500 Gross Ton made 72,178 port calls 1 Overall, vessels came from 81 different flag States In 2005 LNG tankers made 275 arrivals in US ports from 7 countries 1 Source: The 2004 Annual Report on Port State Control for the United States

New Vessel Traffic from LNG Facilities Under Construction LNG Terminals Currently Under Construction Number of LNG Ships per Year Corpus Christi300 Elba Island Expansion68 Freeport, TX200 Hackberry, LA210 Lake Charles, LA Expansion123 Sabine, LA500 Total1,401

LNG Vessel Safety Examples Examples of Potential Risks Examples Examples of Potential Mitigations Collision with LNG carrier Moving safety zone around LNG carrier Vessel escort Vessel traffic management LNG carrier grounding Testing of navigation, propulsion, steering State pilots WSR Consequence Management Avoidance/ Security Develop / test emergency response plan

Contact Information: Richard R. Hoffmann, Director Division of Gas Environment and Engineering Office of Energy Projects Federal Energy Regulatory Commission

Calais, ME Everett, MA (A) Offshore Boston – Neptune Fall River, MA North East LNG Terminals Offshore Boston – Excelerate Providence, RI Rejected Robbinston, ME Boston, MA – Battery Rock Pleasant Point, ME Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal

Cove Point, MD Logan Township, NJ Mid-Atlantic LNG Terminals Long Island Sound, NY Philadelphia, PA Baltimore, MD Offshore New York – Safe Harbor Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal

South East LNG Terminals Elba Island, GA Bahamas (Pipelines only) Offshore Florida Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal

Corpus Christi, TX Lake Charles, LA Port Pelican Freeport, TX Golden Pass Port Lavaca, TX Port Arthur Sabine Pass, LA Gulf Coast LNG Terminals Freeport McMoran Hackberry Gulf Landing Galveston, TX Pascagoula, MS Cameron Beacon Port Gulf Gateway Vista Del Sol Ingleside LNG EA Compass Port Bienville Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal

Long Beach, CA California Offshore Southwest LNG Terminals Chevron Texaco BHP Billiton Crystal Energy Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal Ocean Way Pacific Gateway

North West LNG Terminals Coos Bay, OR Bradwood, OR Astoria, OR St. Helens, OR Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal