

[Federal Register: March 21, 2006 (Volume 71, Number 54)]
[Notices]               
[Page 14200-14203]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21mr06-66]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PF06-11-000]

 
Quoddy Bay, LLC; Notice of Intent To Prepare an Environmental 
Impact Statement for the Proposed Quoddy Bay LNG Project, Request for 
Comments on Environmental Issues and Notice of Public Scoping Meetings

March 14, 2006.
    The Federal Energy Regulatory Commission (FERC or Commission) and 
the U.S. Department of Homeland Security, U.S. Coast Guard (Coast 
Guard) are in the process of evaluating the Quoddy Bay L.L.C. (Quoddy 
Bay) Liquefied Natural Gas (LNG) Import and Regasification Terminal 
project (the Project) which involves the construction and operation of 
facilities by Quoddy Bay on the western shore of Passamaquoddy Bay in 
Washington County, Maine. The Project would consist of an onshore LNG 
import terminal located in Pleasant Point, ME with an approximate 
eight-mile-long pipeline connecting to a storage facility located in 
Perry, Maine., and 35-mile-long natural gas sendout pipeline 
interconnecting with the Maritimes and Northeast (M&NE) Pipeline 
system.
    As part of this evaluation, FERC staff will prepare an 
environmental impact statement (EIS) that will address the 
environmental impacts of the project and the Coast Guard will assess 
the maritime safety and security of the Project. As explained further 
in the Public Participation Section of this notice, the FERC and Coast 
Guard will hold joint public scoping meetings to allow the public and 
interested agencies the opportunity to provide input to these 
assessments.
    This notice explains the scoping process that will help us \1\ 
determine which issues/impacts need to be evaluated in the EIS. This 
EIS will be used by the Commission in its decision-making process to 
determine whether the Project is in the public convenience and 
necessity. Please note that the scoping period for the Project will 
close on April 28, 2006.
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    \1\ ``We,'', ``us'', and ``our'' refer to the environmental 
staff of the Office of Energy Projects.
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    The FERC will be the lead Federal agency in the preparation of an 
EIS that will satisfy the requirements of the National Environmental 
Policy Act (NEPA). The Coast Guard; the U.S. Army Corps of Engineers; 
and Department of Interior, Bureau of Indian Affairs will serve as 
cooperating agencies during preparation of the EIS. In addition, we 
have invited the U.S. Department of Commerce, National Oceanic and 
Atmospheric Administration, National Marine Fisheries Service; the U.S. 
Environmental Protection Agency; the U.S. Department of the Interior, 
Fish and Wildlife Service; the Advisory Council on Historic 
Preservation, the Natural Resources Conservation Service; the Maine 
Department of Environmental Protection; the Maine Department of Marine 
Resources; and the Maine Division of Inland Fisheries and Wildlife.
    Comments may be submitted in written form or verbally. In lieu of 
or in addition to sending written comments, you are invited to attend 
the public scoping meetings that have been scheduled in the Project 
area. Further instructions on how to submit written comments and 
additional details of the public scoping meetings are provided in the 
public participation section of this NOI.
    The Coast Guard is responsible for matters related to navigation 
safety, vessel engineering and safety standards, and all matters 
pertaining to the safety of facilities or equipment located in or 
adjacent to navigable waters up to the last valve immediately before 
the receiving tanks. The Coast Guard also has authority for LNG 
facility security plan review, approval, and compliance verification as 
provided in Title 33 CFR 105, and recommendation for siting as it 
pertains to the management of vessel traffic in and around the LNG 
facility.
    Upon receipt of a letter of intent from an owner or operator 
intending to build a new LNG facility, the Coast Guard Captain of the 
Port (COTP) conducts an analysis that results in a letter of 
recommendation issued to the owner or operator and to the state and 
local governments having jurisdiction, addressing the suitability of 
the waterway to accommodate LNG vessels. Specifically the letter of 
recommendation addresses the suitability of the waterway based on:
     The physical location and layout of the facility and its 
berthing and mooring arrangements.
     The LNG vessels' characteristics and the frequency of LNG 
shipments to the facility.
     Commercial, industrial, environmentally sensitive, and 
residential area in and adjacent to the waterway used by the LNG 
vessels en route to the facility.
     Density and character of the marine traffic on the 
waterway.
     Bridges or other manmade obstructions in the waterway.
     Depth of water.
     Tidal range.
     Natural hazards, including rocks and sandbars.
     Underwater pipelines and cables.
     Distance of berthed LNG vessels from the channel, and the 
width of the channel.
    In addition, the Coast Guard will review and approve the facility's 
operations manual and emergency response plan (33 CFR 127.019), as well 
as the facility's security plan (33 CFR 105.410). The Coast Guard will 
also provide input to other Federal, state, and local government 
agencies reviewing the project.
    In order to complete a thorough analysis and fulfill the regulatory 
mandates cited above, the COTP Sector Northern New England will be 
conducting a formal risk assessment evaluating the various safety and 
security aspects associated with the Quoddy Bay's LNG proposed project. 
This risk assessment will be accomplished through a series of workshops 
focusing on the areas of waterways safety, port security, and 
consequence management, with involvement from a broad cross-section

[[Page 14201]]

of government and port stakeholders with expertise in each of the 
respective areas. The workshops will be by invitation only. However, 
comments received during the public comment period will be considered 
as input in the risk assessment process.
    This notice is being sent to affected landowners within 0.5 mile of 
the proposed LNG Terminal; landowners within 200 feet of the pipeline 
route under consideration; Federal, state, and local government 
agencies; elected officials; environmental and public interest groups; 
Native American tribes; and local libraries and newspapers; and other 
interested parties.
    Some affected landowners may be contacted by a project 
representative about the acquisition of an easement to construct, 
operate, and maintain the proposed facilities. If so, Quoddy Bay and 
the affected landowners should seek to negotiate a mutually acceptable 
agreement. In the event that the Project is certificated by the 
Commission, that approval conveys the right of eminent domain for 
securing easements for the facilities. Therefore, if easement 
negotiations fail to produce an agreement, Quoddy Bay could initiate 
condemnation proceedings in accordance with state law.
    A fact sheet prepared by the FERC entitled ``An Interstate Natural 
Gas Facility On My Land? What Do I Need To Know?'' addresses a number 
of typically asked questions, including the use of eminent domain and 
how to participate in the Commission's proceedings. It is available for 
viewing on the FERC Internet Web site (http://www.ferc.gov).


Summary of the Proposed Project

    Quoddy Bay proposes to site, construct, and operate an LNG terminal 
and storage facility, and associated natural gas sendout pipeline with 
a capacity of 2.0 billion cubic feet per day. More specifically, Quoddy 
Bay's facilities would consist of:
     An LNG import and marine LNG terminal, including a double, 
staggered berth, 1,700-foot-long pier, capable of handling about 90 LNG 
tankers per year, ranging in size from 135,000 to 200,000 cubic meters 
(m\3\) per ship;
     An onshore storage and regasification facility which 
includes three full-containment insulated storage tanks with a capacity 
of 160,000 m\3\ each.
     LNG being unloaded from either of two berths. Each berth 
has four identical unloading arms, three in liquid service and one in 
vapor service. Each arm is provided with an emergency release system. 
Tankers can be unloaded at 4,000 to 12,000 cubic meters per hour;
     The platform on the unloading pier will be equipped with 
submerged combustion vaporizers which can vaporize the LNG on site and 
send gas directly to the sendout line bypassing the shore side storage 
facility;
     The electrical power distribution, including power 
substations, transformers, switchgear, multiple voltage distribution, 
emergency and UPS power systems;
     Ancillary terminal facilities being located on the pier, 
including enclosed control rooms, and platform firefighting capability;
     A computer-based distributed control system, measurement 
controls and natural gas metering facilities;
     LNG being pumped via a cryogenic transfer line 
approximately 6,000 ft., crossing under a state highway, across a small 
inlet bay to the storage facility.
     A comprehensive hazard monitoring system incorporating 
flammable gas detectors, high and low temperature detectors, smoke 
detectors, and local emergency shut-down controls.
     The proposed sendout pipeline would consist of a 35.1 
miles of 36-inch diameter pipeline that would extend from the Import 
Facility through the Storage Facility and interconnect with the M&NE 
Pipeline in Princeton, Maine.
    A map depicting the general location of the Project facilities and 
pipeline is shown in Appendix 1.\2\
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    \2\ The appendices referenced in this notice are not being 
printed in the Federal Register. Copies are available from the 
Commission's Public Reference and Files Maintenance Branch, at (202) 
502-8371. For instructions on connecting to eLibrary refer to the 
last page of this Notice.
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    Quoddy Bay is requesting approval such that the pier facilities are 
completed and placed into service in 2009 with the storage facilities 
being placed into service in 2010.

Land Requirements for Construction

    Construction of the project would disturb about 993 acres of land. 
Following construction, about 337 to 340 acres of the total would be 
retained for the operation of the LNG Terminal and Sendout Pipeline.
    As proposed, the Import Facility would be constructed on submerged 
lands that extend from mean low water at Split Rock eastward towards 
the United States shore between Pleasant Point, Maine and Deer Island 
in New Brunswick Canada. Construction of this facility would require 
approximately 431 acres of land, of this amount, 30 acres consists of 
submerged lands that would be permanently impacted by the operation of 
the facility.
    The Support Facility would be located on Split Rock within the 
Passamaquoddy Indian Reservation in Pleasant Point, Maine. About 4 
acres of land would be temporarily impacted by the construction of the 
Support Facility, of which about 2.5 acres of land would be permanently 
impacted by the operation of the proposed facility.
    Construction of the LNG Transfer System would temporarily impact 
about 8 acres of land and would including a segment of submerged land 
in Half Moon Cove. About 6 acres would be required for operation of the 
LNG Transfer System.
    The Storage Facility would be located in the town of Perry, Maine 
and affect about 100 acres of land. About 88 acres would be affected by 
operation.
    The 35.1-mile-long, 36-inch-diameter sendout pipeline in Washington 
County, Maine would temporarily affect about 430 to 450 acres of land 
during construction. About 210 to 213 acres would be required for 
operations. Quoddy Bay would use a maximum 100-wide right-of-way for 
construction, of this amount 50 feet would consist of permanent right-
of-way and 50 feet would consist of temporary workspace. The 
construction right-of-way near wetlands and water bodies would be 
limited to 75 feet and in residential areas to 50 feet.

The EIS Process

    The Project is currently in the preliminary stages of design, and 
at this time a formal application has not been filed with the 
Commission. For this proposal, the Commission is initiating the 
National Environmental Policy Act (NEPA) review prior to receiving the 
application. This allows interested stakeholders to become involved 
early in project planning and to identify and resolve issues before an 
application is filed with the FERC. A docket number (PF06-11-000) has 
been established to locate in the public record information filed by 
Quoddy Bay and related documents issued by the Commission.\3\ Once a 
formal application is filed with the FERC, a new docket number will be 
established.
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    \3\ To view information in the docket, follow the instructions 
for using the eLibrary link at the end of this notice.
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    NEPA requires the Commission to take into account the environmental 
impacts that could result from an action whenever it considers the 
issuance of a Certificate of Public Convenience and Necessity under 
Section 7 of the Natural Gas Act. NEPA also requires us to

[[Page 14202]]

identify and address concerns the public would have about proposals. 
This process is referred to as ``scoping.'' The main goal of the 
scoping process is to focus the analysis in the EIS on important 
environmental issues and reasonable alternatives. By this Notice of 
Intent, the Commission staff requests agency and public comments on the 
scope of the issues to be addressed in the EIS. All comments received 
are considered during the preparation of the EIS.
    In the EIS we will discuss impacts that could occur as a result of 
the construction, operation, maintenance, and abandonment of the 
proposed project under these general headings:
     Geology and Soils,
     Water Resources,
     Fish, Wildlife, and Vegetation,
     Endangered and Threatened Species,
     Cultural Resources,
     Land Use, Recreation and Special Interest Areas, and 
Visual Resources,
     Socioeconomics,
     Marine Transportation,
     Air Quality and Noise,
     Reliability and Safety, and
     Alternatives.
    Our independent analysis of the issues will be included in the 
draft EIS. The draft EIS will be published and mailed to Federal, 
state, and local agencies, Native American tribes, public interest 
groups, interested individuals, affected landowners, newspapers, 
libraries, and the Commission's official service list for this 
proceeding. A comment period will be allotted for review of the draft 
EIS. We will consider all timely comments on the draft EIS and revise 
the document, as necessary, before issuing a final EIS.
    We have already started to meet with Quoddy Bay, agencies, and 
other interested stakeholders to discuss the Project and identify 
issues/impacts and concerns. Between February 13 and 17, 2006, 
representatives of FERC staff participated in public open houses 
sponsored by Quoddy Bay in the Project area to explain the NEPA 
environmental review process to interested stakeholders and take 
comments about the Project. In addition, the Coast Guard, which would 
be responsible for reviewing the safety and security aspects of the 
planned project and regulating safety and security if the project is 
approved, has initiated its review of the project as well.
    With this notice, we are asking other Federal, state, and local 
agencies with jurisdiction and/or special expertise with respect to 
environmental issues in the project area to formally cooperate with us 
in the preparation of the EIS. These agencies may choose to participate 
once they have evaluated the proposal relative to their 
responsibilities. Agencies that would like to request cooperating 
status should follow the instructions for filing comments described 
later in this notice. We encourage government representatives to notify 
their constituents of this planned project and encourage them to 
comment on their areas of concern.
    To ensure your comments are considered, please carefully follow the 
instructions in the public participation section below.

Currently Identified Environmental Issues

    We have identified several issues that we think deserve attention 
based on a preliminary review of the proposed facilities and the 
information provided by Quoddy Bay. This preliminary list of issues may 
be changed based on your comments and our analysis.
     Impact of LNG ship traffic on other water-body users, 
including recreational boaters, tour-boats, and commercial fishing 
vessels.
     Potential impacts on regional aquaculture and commercial 
fishing activities.
     Safety and security issues relating to LNG ship traffic, 
including transits through Head Harbor Passage.
     Potential impacts on the residents of neighboring 
communities, including safety issues at the import and storage 
facility, noise, air quality, and visual resources.
     Project impacts on threatened and endangered species and 
nearby National Wildlife Refuges.
     Project impacts on cultural resources.
    We will make recommendations on how to lessen or avoid impacts on 
the various resource areas and evaluate possible alternatives to the 
proposed Project or portions of the Project.

Public Participation

    You are encouraged to become involved in this process and provide 
your specific comments or concerns about Quoddy Bay's proposal. Your 
comments should focus on the potential environmental effects, 
reasonable alternatives, and measures to avoid or lessen environmental 
impacts. The more specific your comments, the more useful they will be. 
Please carefully follow these instructions to ensure that your comments 
are received in time and properly recorded:
     Send an original and two copies of your letter to: Magalie 
R. Salas, Secretary, Federal Energy Regulatory Commission, 888 First 
St. NE.; Room 1A, Washington, DC 20426.
     Label one copy of the comments for the attention of Gas 
Branch 1.
     Reference Docket No. PF06-11-000 on the original and both 
copies.
     Mail your comments so that they will be received in 
Washington, DC on or before April 28, 2006 (Applicable copies will be 
provided to the Coast Guard).
    Please note that the Commission encourages electronic filing of 
comments. See 18 Code of Federal Regulations 385.2001(a)(1)(iii) and 
the instructions on the Commission's Internet Web site at http://www.ferc.gov
 under the ``eFiling'' link and the link to the User's 

Guide. Prepare your submission in the same manner as you would if 
filing on paper and save it to a file on your hard drive. Before you 
can file comments you will need to create an account by clicking on 
``Login to File'' and then ``New User Account.'' You will be asked to 
select the type of filing you are making. This filing is considered a 
``Comment on Filing.''
    In addition to or in lieu of sending written comments, we invite 
you to attend the public scoping meetings we will conduct in the 
Project area.\4\ The locations for these meetings are listed below. All 
meetings are scheduled to begin at 7 p.m.:
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    \4\ The Quoddy Bay scoping meetings were originally scheduled 
for March 28 and 29, 2006. However, due to scheduling conflicts for 
the FERC staff, the meetings were moved as noted above.
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Wednesday, April 5, 2006, 7 p.m.
    Pleasant Point Recreational Dept./Sipayik Boy's and Girl's Club, 
Passamaquoddy Drive, Perry, ME 04667, 207-853-6161.
Thursday, April 6, 2006, 7 p.m.
    Perry School, 1587 U.S. Route 1, Perry, ME 04667, 207-853-2522.

    The scoping meetings listed above will be combined with the Coast 
Guard's public meeting regarding the safety and security of the 
project. At the meetings, the Coast Guard will discuss (1) the waterway 
safety assessment that it will conduct to determine whether or not the 
waterway can safely accommodate the LNG carrier traffic and operation 
of the planned LNG marine terminal, and (2) the security assessment it 
will conduct in accordance with the requirements of the Maritime 
Transportation Security Act. The Coast Guard will not be issuing a 
separate meeting notice for the maritime safety and security aspects of 
the project.
    The joint public scoping meetings are designed to provide state and 
local agencies, interested groups, affected

[[Page 14203]]

landowners, and the general public with another opportunity to offer 
your comments on the Project. Interested groups and individuals are 
encouraged to attend the meetings and to present comments on the 
environmental issues they believe should be addressed in the EIS and 
LNG vessel transit safety concerns for consideration by the Coast 
Guard. A transcript of each meeting will be made so that your comments 
will be accurately recorded.
    All public meetings will be posted on the Commission's calendar 
located at http://www.ferc.gov/EventCalendar/EventsList.aspx along with 

other related information.
    When Quoddy Bay submits its application for authorization to 
construct and operate the project, the Commission will publish a Notice 
of Application in the Federal Register and will establish a deadline 
for interested persons to intervene in the proceeding. Because the 
Commission's Pre-Filing Process occurs before an application to begin a 
proceeding is officially filed, petitions to intervene during this 
process are premature and will not be accepted by the Commission.

Environmental Mailing List

    If you received this notice, you are on the environmental mailing 
list for this Project and will continue to receive Project updates 
including the draft and final EISs. If you want your contact 
information corrected or you do not want to remain on our mailing list, 
please return the Correct or Remove From Mailing List Form included as 
Appendix 3.
    To reduce printing and mailing costs, the draft and final EISs will 
be issued in both CD-ROM and hard copy formats. The FERC strongly 
encourages the use of the CD-ROM format in its publication of large 
documents. If you wish to receive a paper copy of the draft EIS instead 
of a CD-ROM, you must indicate that choice on the return postcard 
(Appendix 3).

Additional Information

    Additional information about the Project is available from the 
Commission's Office of External Affairs, at 1-866-208-FERC or on the 
FERC Internet Web site (http://www.ferc.gov) using the eLibrary link. 

Click on the eLibrary link, click on ``General Search'' and enter the 
docket number excluding the last three digits in the Docket Number 
field. Be sure you have selected an appropriate date range. For 
assistance, please contact FERC Online Support at 
FercOnlineSupport@ferc.gov or toll free at 1-866-208-3676, or for TTY, 

contact (202) 502-8659. The eLibrary link also provides access to the 
texts of formal documents issued by the Commission, such as orders, 
notices, and rulemakings.
    In addition, the Commission now offers a free service called 
eSubscription which allows you to keep track of all formal issuances 
and submittals in specific dockets. This can reduce the amount of time 
you spend researching proceedings by automatically providing you with 
notification of these filings, document summaries and direct links to 
the documents. Go to http://www.ferc.gov/esubscribenow.htm.

    Finally, Quoddy Bay L.L.C. LNG has established an Internet Web site 
for this project at http://www.quoddylng.com. The website includes a 

project overview, status, and answers to frequently asked questions. 
You can also request additional information by calling Quoddy Bay LNG 
at 207-853-6631, or by e-mail at ABarstow@quoddylng.com.

Magalie R. Salas,
Secretary.
[FR Doc. E6-4041 Filed 3-20-06; 8:45 am]

BILLING CODE 6717-01-P
