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You are here:  Natural Gas Regulation > Authorizations > How to Obtain Authorizations

How to Obtain Authorization to Import and/or Export Natural Gas and LNG


I. Background

Section 3 of the Natural Gas Act (15 U.S.C. ยง 717b) prohibits the import or export of natural gas, including liquefied natural gas (LNG) from or to a foreign country without prior approval from the Department of Energy (DOE). Parties who want to enter into natural gas transactions with foreign sellers and buyers must file for an import and/or export authorization under the rules and procedures found in 10 CFR Part 590 of DOE's regulations.

The following general instructions are designed to assist applicants applying for an import and/or export authorization. While the process is not complicated, applications are required to be filed 30 days in advance of the proposed import and/or export.

Send all paper or non-electronic official communications by mail to:

U.S. Department of Energy
FE-34
P.O. Box 44375
Washington DC 20026-4375

A docket number will be assigned to the application when it is received by DOE and should be referenced in future communications involving each application. Please direct any questions concerning the filing of an application to Larine Moore at (202)586-9478.

II. Types of Authorizations

The two types of authorizations are as follows:

  • Long-Term Authorization (hardcopy)

    A company should apply for long-term import or export authorization if it has a signed gas purchase and/or sales contract for a period of time longer than two years. The regulations require an applicant to submit the contract(s) with the identity of the sellers of gas, the markets in which the gas is to be sold, and the terms of the sale agreement(s) along with a start date. 

  • Blanket (Short-term) Authorization (online)

    A blanket import and/or export authorization enables a company to import and/or export gas on a short-term or spot market basis for two years. Gas purchase and sales contracts are not filed as part of an application, however, a start date is required. 

III. Natural Gas Import & Export Regulation - LNG Exports (hardcopy)

The Energy Policy Act of 1992 (Policy Act) amended the NGA to change how a significant percentage of the applications are processed. NGA Section 3 applications for the import and/or export of natural gas from or to nations with which the United States has a Free Trade Agreement are deemed to be in the public interest, and must be granted without modification or delay. Currently, the United States has Free Trade Agreements with Canada and Mexico. Applications not covered by the Policy Act provisions include applications to export LNG, and applications to import or export natural gas from or to countries not having a Free Trade Agreement with the United States. These applications must be filed in the hard copy format, and require the issuance of a Federal Register Notice.

IV. Procedures for Filing an Application

A. General Requirements

  1. Each application shall consist of an original and five (5) copies.

  2. A filing fee of fifty dollars ($50) must be submitted with each application. Make checks payable to the Treasurer of the United States.

B. Contents of Application

While no specific format is required for an application, the following sequence for setting out the facts is provided for your convenience:

  1. State the exact legal name of the company, including the name of the parent company if the applicant is a subsidiary or affiliate.

  2. State the name, title, post office address and telephone number of the person(s) to whom correspondence regarding the application should be addressed. Also include the name, title, address and telephone number of a corporate officer or employee of the applicant to whom inquiries may be directed.

  3. Provide a concise statement which describes the proposed import and/or export arrangement, including the associated volume of natural gas expressed in Bcf (billion cubic feet), and a start date.

  4. For long-term applications, identify the supplier or purchaser of the natural gas to be imported and/or exported, the name of the U.S. transporter(s), the point(s) of entry or exit on the international border, and the geographic market(s) served, and a start date.

  5. Also for long-term applications, describe the major provisions of the gas purchase or sales contract, including base price, volume requirements, take-or-pay obligations, make-up provisions, transportation, reservation fees, and other costs.

  6. Exhibits to Application - The following exhibits must be included with each application:

    • Exhibit A. A statement, including a signed opinion of counsel, showing that the import and/or export of natural gas, and/or LNG, is within the corporate powers of the company.

    • Exhibit B. For long-term applications, a copy of the gas purchase or sales contract, or both.

V. Additional Requirement

Monthly Reports - Within 30 days following each calendar month, a report indicating whether imports and/or exports have been made should be filed.  The information contained in these reports include, among other things, (1) country of origin or destination; (2) point(s) of entry or exit; (3) volumes delivered at each point; (4) price; (5) supplier; and (6) geographic area served (for imports).  More information on these reports may be found in the Sample Reports Formats and Guidelines section of this web site. 

VI. Report of Contract Amendments and other changes

Any person authorized to import and/or export natural gas and/or LNG has a continuing obligation to provide written notification of any prospective or actual changes to the information submitted with or in the application including, but not limited to, amendments or other changes in the terms and conditions of any natural gas purchase contract, in volumes accepted or offered, or the import and/or export price paid. Notification must also be made in changes of company name as the result of a sale, merger, or the company ceases to exist.

VII.  Requirements for Vacating Existing Authorizations

In the event of a name change, the authorization holder must submit a request to vacate the current authorization and submit a new and separate application requesting authority to import or export. The request to vacate should identify the authorization holder (company), docket number and DOE/FE Order number and the effective date of the Order to Vacate. The new authorization will reflect the effective date of the name change. Applications requiring a retroactive effective date cannot be filed online, and must be filed in a hardcopy format.

 

 Page owner:  Fossil Energy Office of Communications
Page updated on: July 29, 2008 

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