The staff of the Federal Energy Regulatory Commission (FERC or Commission) has prepared a final environmental impact statement (EIS) for the Magnolia LNG Project proposed by Magnolia LNG, LLC (Magnolia), and the Lake Charles Expansion Project proposed by Kinder Morgan Louisiana Pipeline LLC (Kinder Morgan).
The Magnolia LNG and Lake Charles Expansion Projects consist of two main components: 1) the construction and operation of various liquefaction facilities, LNG storage tanks, LNG distribution facilities, LNG vessel berthing area, and appurtenant facilities within the boundaries of the site leased by Magnolia near Lake Charles, Louisiana; and 2) the reconfiguration of Kinder Morgan’s existing pipeline system in order to accommodate Magnolia’s request for natural gas service at the LNG terminal site, which includes a new compressor station (Compressor Station 760), new meter station (Magnolia Meter Station), a 40-foot-long interconnect pipeline that would be located within the LNG terminal, new low and high pressure natural gas header pipelines that would be located adjacent to Kinder Morgan’s existing easement, and modifications at six existing meter stations. The projects would provide an LNG export capacity of 1.08 billion cubic feet per day of natural gas.
The final EIS was prepared in compliance with the requirements of the National Environmental Policy Act (NEPA), the Council on Environmental Quality regulations for implementing NEPA (Title 40 Code of Federal Regulations Parts 1500–1508 [40 CFR 1500–1508]), and FERC regulations implementing NEPA (18 CFR 380). The U.S. Army Corps of Engineers, U.S. Coast Guard, U.S. Department of Energy, U.S. Department of Transportation, and U.S. Environmental Protection Agency participated as cooperating agencies in the preparation of the final EIS.
FERC’s environmental staff concludes that construction and operation of the Magnolia LNG and Lake Charles Expansion Projects would result in adverse environmental impacts. Most adverse environmental impacts would be temporary or short term during construction and operation, although some long-term and permanent environmental impacts on wetlands, vegetation, and land use would also occur as part of the projects. This determination is based on a review of the information provided by Magnolia and Kinder Morgan and further developed from data requests; field investigations; scoping; literature research; alternatives analysis; contacts with federal, state, and local agencies as well as Indian tribes; and comments from individual members of the public. The following factors also were considered in reaching this determination:
- Over 99 percent of the area permanently affected by the LNG terminal is within areas that have been previously disturbed by commercial or industrial activities.
- The facilities proposed by Kinder Morgan would occur either within the proposed LNG terminal site or within and adjacent to existing facilities, which would minimize new disturbance.
- Magnolia’s proposed beneficial
- use of dredge material to re-create historic emergent wetlands would be expected to offset adverse impacts on wetlands at the LNG terminal site, resulting in long-term benefits to wetlands in the vicinity of the LNG terminal.
- The FERC staff would complete the process of complying with section 7 of the Endangered Species Act prior to construction.
- The FERC staff has completed consultation under section 106 of the National Historic Preservation Act and implementing regulations at 36 CFR 800 and determined that no historic properties would be affected by the projects.
- Magnolia and Kinder Morgan would comply with all applicable air and noise regulatory requirements during construction and operation of the projects.
- Magnolia and Kinder Morgan would minimize impacts on environmental resources during construction and operation of the projects by implementing, as applicable, their spill prevention plans; Unanticipated Discovery Plans (for cultural resources); and by implementing the FERC’s Plan and Procedures (Kinder Morgan) or the project-specific Plan and Procedures (Magnolia).
- An environmental inspection program would be implemented to ensure compliance with the mitigation measures that become conditions of the FERC authorization.
The FERC Commissioners will take into consideration the FERC staff’s recommendations when the Commission makes a decision on the projects.