UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







AMOCO ENERGY TRADING CORPORATION

FE DOCKET NO. 97-62-NG








ORDER GRANTING BLANKET AUTHORIZATION

TO EXPORT NATURAL GAS TO MEXICO












DOE/FE ORDER NO. 1300







SEPTEMBER 15, 1997




I. DESCRIPTION OF REQUEST

On September 12, 1997, Amoco Energy Trading Corporation (Amoco) 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, requesting blanket authorization to export to Mexico up to 300 Bcf of natural gas, over a two-year period beginning on the date of first delivery after November 7, 1997.(2) Amoco is a Delaware corporation with its registered office in Wilmington, Delaware, and its principal place of business in Houston, Texas. Amoco is a wholly owned subsidiary of Amoco Production Company, a wholly owned subsidiary of Amoco Company, which in turn is a wholly owned subsidiary of Amoco Corporation. Amoco will export these gas volumes under short-term and spot market transactions. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by Amoco has been evaluated to determine if the proposed 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 export of natural gas to nations 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 Amoco to export natural gas to Mexico, 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.

ORDER

Pursuant to section 3 of the Natural Gas Act, it is ordered that:

A. Amoco Energy Trading Corporation (Amoco) is authorized to export a total of up to 300 Bcf of natural gas to Mexico over a period of two years beginning on the date of the first delivery after November 7, 1997. These authorized transactions may take place at any United States-Mexico border point.

B. Within two weeks after deliveries begin, Amoco shall provide written notification to the Office of Natural Gas & Petroleum Import and Export Activities, Fossil Energy, Room 3F-056, FE-34, Forrestal Building, 1000 Independence Avenue, S.W., Washington, D.C. 20585, of the date that the first export of natural gas authorized in Ordering Paragraph A above occurred.

C. With respect to the natural gas exports authorized by this Order, Amoco shall file with the Office of Natural Gas & Petroleum Import and Export Activities, within 30 days following each calendar quarter, quarterly reports indicating whether exports of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no exports have been made, a report of "no activity" for that calendar quarter must be filed. If exports have occurred, Amoco must report monthly the following: (1) total volumes in Mcf; (2) the average 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 U.S. transporter(s); and (7) the point(s) of exit.

E. The first quarterly report required by Ordering Paragraph C of this Order is due not later than January 30, 1998, and should cover the period from November 8, 1997, until the end of the fourth calendar quarter, December 31, 1997.

Issued in Washington, D.C., on September 15, 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. § 717.b.

2. 2/ This is the expiration date of Amoco's current blanket authorization to export natural gas, granted by DOE/FE Order No. 1094 on October 17, 1995 (1 FE ¶ 71,172).