Previously, we have introduced the linear scaling coupled cluster (CC) divide-expand-consolidate (DEC) method, using an occupied space partitioning of the standard correlation energy. In this article, we show that the correlation energy may alternatively be expressed using a virtual space partitioning, and that the Lagrangian correlation energy may be partitioned using elements from both the occupied and virtual partitioning schemes. The partitionings of the correlation energy leads to atomic site and pair interaction energies which are term-wise invariant with respect to an orthogonal transformation among the occupied or the virtual orbitals. Evaluating the atomic site and pair interaction energies using local orbitals leads to a linear scaling algorithm and a distinction between Coulomb hole and dispersion energy contributions to the correlation energy. Further, a detailed error analysis is performed illustrating the error control imposed on all components of the energy by the chosen energy threshold. This error control is ultimately used to show how to reduce the computational cost for evaluating dispersion energy contributions in DEC.