WESTERN GAS RESOURCES, INC.
FE DOCKET NO. 97-54-NG
I. DESCRIPTION OF REQUEST
On July 11, 1997, Western Gas Resources, Inc. (Western)
filed an application with the Office of Fossil Energy of the
Department of Energy (DOE), under section 3 of the Natural Gas
Act (NGA) 1/ and DOE Delegation Order Nos. 0204-111 and 0204-
127, for blanket authorization to import up to 73 Bcf of natural
gas from Canada and to export up to 73 Bcf of natural gas to
Canada over a two-year term beginning on the date of first import
or export delivery after July 31, 1997. 2/ Western, is a _
natural gas marketer with its principal place of business in Denver, Colorado. Western will import and export the natural gas under spot and short-term purchase arrangements, either on its own behalf or as the agent for others. The requested authorization does not involve the construction of new pipeline facilities.
The application filed by Western has been evaluated to determine if the proposed import/export arrangement meets the public interest requirement of section 3 of the NGA, as amended by section 201 of the Energy Policy Act of 1992 (Pub. L. 102-486). Under section 3(c), the import or export of natural gas from or to a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas is deemed to be consistent with the public interest and must be granted without modification or delay. The authorization sought by Western to import and export natural gas from and to Canada, a nation with which a free trade agreement is in effect, meets the section 3(c) criterion and, therefore, is consistent with the public interest. This blanket order authorizes transactions under contracts with terms of no longer than two years.
Pursuant to section 3 of the Natural Gas Act, it is ordered that:
A. Western Gas Resources, Inc. (Western) is authorized to import up to 73 Bcf of natural gas from Canada and to export up to 73 Bcf of natural gas to Canada over a two-year term beginning on the date of first import or export delivery after July 31, 1997. This natural gas may be imported and exported at any U.S./Canada border point.
B. Within two weeks after deliveries begin, Western shall provide written notification to the Office of Natural Gas & Petroleum Import and Export Activities, Fossil Energy, Room 3F- 056, FE-50, Forrestal Building, 1000 Independence Avenue, S.W., Washington, D.C. 20585, of the date that the first import or export delivery of natural gas authorized in Ordering Paragraph A above occurred.
C. With respect to the natural gas imports and exports authorized by this Order, Western shall file with the Office of Natural Gas & Petroleum Import and Export Activities, within 30 days following each calendar quarter, quarterly reports indicating whether imports or exports of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no imports or exports of natural gas have been made, a report of "no activity" for that calendar quarter must be filed. If imports or exports have occurred, Western must report the following: (1) total monthly volumes in Mcf; (2) the average monthly purchase price of gas per MMBtu at the international border; (3) the name of the seller(s); (4) the name of the purchaser(s); (5) the estimated or actual duration of the agreement(s); (6) the name of the United States transporter(s); (7) the point(s) of entry and exit; and (8) the geographic market(s) served (for imports, by State). For import transactions only, the report shall also include: (1) whether sales are being made on an interruptible or firm basis; and, if applicable, (2) the per unit (MMBtu) demand/commodity/reservation charge breakdown of the contract price.
D. The first quarterly report required by Ordering Paragraph C of this Order is due not later than October 30, 1997, and should cover the period from August 1, 1997, until the end of the third calendar quarter, September 30, 1997.
Issued in Washington, D.C., on July 31, 1997.
Wayne E. Peters
Manager, Natural Gas Regulation
Office of Natural Gas & Petroleum
Import and Export Activities
Office of Fossil Energy
1. 15 U.S.C. Sec. 717b. 2. This is the date which Western's existing blanket import/export authorization, granted by DOE/FE Order No. 1050 dated May 17, 1995, (1 FE Para. 71,117) expires.