Letter to Secretary Ernest Moniz, Department of Energy - Application Approvals To Export More Natural Gas

Letter

U.S. Senator Orrin Hatch (R-Utah) and U.S. Representatives Jim Matheson (UT-4), Rob Bishop (UT-1), Jason Chaffetz (UT-3), and Chris Stewart (UT-2) signed onto a letter sent to Department of Energy Secretary Ernest Moniz urging support for pending applications to export liquefied natural gas (LNG) to non-Free Trade Agreement countries. Currently, there are only two LNG export terminals proposed for the West Coast, which limits the amount of LNG that can be exported from Utah and other Western states.

"Revenues to Rocky Mountain states, such as Colorado, Utah, and Wyoming, depend significantly on the production of energy resources within their borders," the lawmakers wrote. "The Department's approvals of LNG exports from east coast and Gulf coast facilities will encourage future natural gas production in eastern and Gulf coast communities. We believe the Department should provide the people of the Rocky Mountain states and Indian tribes the same opportunity."

In addition to Hatch, Matheson, Bishop, Chaffetz and Stewart, the letter was signed by seven other Members of Congress representing Western states.

The full text of the letter is below:

November 12, 2013

The Honorable Ernest Moniz
Secretary
U.S. Department of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585

Dear Secretary Moniz:

We write to express our support for Jordan Cove's application to export liquefied natural gas (LNG) to non-Free Trade Agreement (FTA) countries. While we applaud the Department of Energy's approval of applications to export LNG from facilities located along the east coast and the Gulf of Mexico, it is imperative that the Department quickly review and act on applications to export LNG to non-FTA countries from facilities on the west coast. West coast facilities are essential to ensuring that Rocky Mountain states and Indian tribes have greater access to international markets and thus the opportunity to enjoy the economic benefits of LNG exports.

Revenues to Rocky Mountain states, such as Colorado, Utah, and Wyoming, depend significantly on the production of energy resources within their borders. For example, in 2012, roughly 18 percent of the revenues to the State of Wyoming came from Federal mineral royalties and state severance taxes collected on natural gas production. Likewise, revenues to Indian tribes, such as the Ute Indian Tribe on the Uintah and Ouray Reservation in Utah, depend heavily on royalties and tribal severance taxes collected on natural gas production. The nation's supply of natural gas, however, is projected to soon exceed domestic demand. Consequently, companies have cancelled natural gas projects which has resulted in or is expected to result in less revenue to state and tribal governments and the creation of fewer jobs in our communities.

West coast LNG export facilities, such as Jordan Cove, would provide Colorado, Utah, and Wyoming, and Indian tribes, such as the Ute Indian Tribe, direct access to international markets. Specifically, Jordan Cove would allow gas shipped on the Ruby pipeline to be exported to Asian markets. Access to international markets is critical to ensuring that companies have the incentive to produce natural gas in the future. The Department's approvals of LNG exports from east coast and Gulf coast facilities will encourage future natural gas production in eastern and Gulf coast communities. We believe the Department should provide the people of the Rocky Mountain states and Indian tribes the same opportunity. To that end, we ask that the Department expeditiously review and act on Jordan Cove's application to export LNG to non-FTA countries.

Thank you for your consideration and we look forward to your prompt response.

Sincerely,