Veresen Inc. T.VSN.DB.B

DOE pushing back against LNG opponents

[righand2]

The U.S. Department of Energy (DOE) has issued an order denying Sierra Clubs request for rehearing of DOEs order, which authorizes Dominion Cove Point LNG (DCP) to export 281 Bcf/year of LNG over a 20-year period from DCPs proposed LNG export terminal at Lusby, Md. to nations without a Free Trade Agreement with the United States.

On rehearing, Sierra Club asserted that DOEs environmental review of DCPs export proposal failed to comply with the National Environmental Policy Act because FERCs Environmental Assessment of the project, which DOE adopted, did not take a hard look at the indirect and cumulative impacts of LNG exports, such as the environmental effects of the proposed export terminal on the adjacent neighborhood and induced natural gas production. Sierra Club also argued that DOE should have assessed the cumulative impacts of drilling induced by all other approved and pending [non-FTA] export projects as part of its cumulative impacts analysis.

DOE rejected Sierra Clubs arguments stating, among other things, that because the footprint of [DCPs] Liquefaction Project is entirely within the existing Cove Point Terminalwhere much of the land has been previously disturbed by multiple prior projectsthe environmental impacts are small in number and well-defined. In addition, DOE stated that induced natural gas production attributable to DCPs Project is not reasonably foreseeable and we therefore reject this argument.