The U.S. Department of Energy (DOE) has conditionally authorized Freeport LNG to export domestically produced liquefied natural gas (LNG). While the approval is subject to environmental review and final regulatory approval, the facility is conditionally authorized to export on its own behalf, or as an agent for others, at a rate of up to 1.4-billion cubic feet of natural gas a day (511 billion cubic feet per year) for a period of 20 years. This is the second license awarded for the export of LNG from the lower 48 states to countries with which trade is not prohibited by U.S. law or policy.
“LNG exports are expected to play a vital role in supporting sustained development of U.S. natural gas supplies to meet growing domestic energy needs, while delivering significant job creation, economic stimulus, balance of trade improvement and national security benefits to the United States,” said Michael S. Smith, chief executive officer of Freeport LNG.
Brownstein Hyatt Farber Schreck played a vital role in the successful acquisition of the license. Brownstein’s team was led by Steve Demby, a shareholder in the Denver office who has served as outside general counsel for Freeport and helped shepherd this project through the regulatory process. Les Lo Baugh, a shareholder in the Los Angeles office, spearheaded the application process with the DOE. Given that a project like this faced a complicated, uncertain and challenging political landscape, Brownstein’s team developed and implemented a strategic Government Affairs plan with the support of Elizabeth Gore and Manny Ortiz, both from Brownstein’s Washington, D.C., office. Together, they played critical roles in interfacing regularly with the DOE, the White House and Capitol Hill. Brownstein’s team was able to build the political support for the license from members of Congress with broad-range geographical and philosophical backgrounds. This was critical in generating momentum for action from the Administration.
The full order can be found at www.energy.gov/node/645361.
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This document is intended to provide you with general information regarding DOE’s authorization of Freeport LNG Terminal. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorneys and policy advisors listed here or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions.