UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








INDECK-YERKES LIMITED PARTNERSHIP

FE DOCKET NO. 95-112-NG







AMENDING ORDER TO VACATE LONG-TERM AUTHORIZATION

TO IMPORT NATURAL GAS FROM CANADA











DOE/FE ORDER NO. 1136-A














Indeck-Yerkes Limited Partnership (Indeck-Yerkes) is currently authorized in DOE/FE Order No. 1136(1) to import up to seven Bcf of Canadian natural gas over an eight-year term that began November 1, 1995. On August 28, 1998, Indeck-Yerkes supplemented an application the company had filed on August 24, 1998, with a request the Department of Energy rescind and terminate its authorization.

Indeck-Yerkes owns and operates a non-utility generating facility and sells its power output to Niagara Mohawk Power Corporation (NMPC). As the result of the implementation of a "Master Restructuring Agreement," effective June 30, 1998, between NMPC and certain non-utility generators, including Indeck-Yerkes, Indeck-Yerkes has entered into a new ten-year term power sales arrangement with NMPC at market sensitive prices. Due to this change in the nature of its contractual relationship with NMPC, Indeck-Yerkes also has entered into agreements to terminate its long-term gas supply contracts with Canadian producers. Future purchases of Canadian natural gas will be made in spot and short-term open market transactions with various Canadian suppliers.(2)

Accordingly, pursuant to section 3 of the Natural Gas Act, the authorization to import natural gas granted to Indeck-Yerkes Limited Partnership in DOE/FE Order No. 1136 is hereby vacated.

Issued in Washington, D.C., on September 10, 1998.



_________________________________

John W. Glynn

Manager, Natural Gas Regulation

Office of Natural Gas & Petroleum

Import and Export Activities

Office of Fossil Energy

1. 1 FE ¶ 71,221 (December 21, 1995).

2. The Department is granting Indeck-Yerkes short-term blanket import authority by separate order.