CENTRA GAS ONTARIO, INC.
FE DOCKET NO. 97-74-NG
I. DESCRIPTION OF REQUEST
On October 3, 1997, Centra Gas Ontario, Inc. (Centra Ontario) 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 export up to 16 billion cubic feet (Bcf) of natural gas to Canada over a two-year term beginning on November 1, 1997, which is the day after its previous export authorization will expire.(2) Centra Ontario, a Canadian corporation organized under the laws of the Province of Ontario, has its principal place of business in North York, Ontario. Centra Ontario is a natural gas distribution company and will export the volumes to supply its commercial, industrial, and residential customers. The proposed authorization does not involve the construction of new pipeline facilities.
The application filed by Centra Ontario 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 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 Centra Ontario to export natural gas 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. Centra Gas Ontario, Inc. (Centra Ontario) is authorized to export up to 16 Bcf of natural gas to Canada over a two-year term beginning on November 1, 1997. This natural gas may be exported at any point on the border of the United States and Canada.
B. With respect to the natural gas exports authorized by this Order, Centra Ontario shall file with 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, 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 of natural gas have been made, a report of "no activity" for that calendar quarter must be filed. If exports have occurred, Centra Ontario must report the following: (1) total monthly volumes in Mcf; (2) the average purchase price of gas per MMBtu at the international border; (3) the estimated or actual duration of the agreement(s); (4) the name of the United States transporter(s); (5) the point(s) of exit; and (6) the geographic market(s) served.
C. The first quarterly report required by Ordering Paragraph B of this Order is due not later than January 30, 1998, and should cover the period from November 1, 1997, until the end of the fourth calendar quarter, December 31, 1997.
Issued in Washington, D.C., on October 16, 1997.
Wayne E. Peters
Manager, Natural Gas Regulation
Office of Natural Gas & Petroleum
Import and Export Activities
Office of Fossil Energy
1. 1/ 15 U.S.C. § 717b.
2. 2/ October 31, 1997 is the expiration date of Centra Ontario's current blanket authorization to export natural gas to Canada, granted by DOE/FE Order No. 1085, issued September 25, 1995, (1 FE ¶ 71,162).