UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







NORTH ATLANTIC PIPELINE PARTNERS, L.P.

FE DOCKET NO. 97-82-NG








ORDER GRANTING BLANKET AUTHORIZATION TO

IMPORT NATURAL GAS

FROM CANADA











DOE/FE ORDER NO. 1312







OCTOBER 22, 1997




I. DESCRIPTION OF REQUEST

On October 15, 1997, North Atlantic Pipeline Partners, L.P. (North Atlantic) 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 500 Bcf of natural gas from Canada over a two-year term beginning on the date of the initial delivery. North Atlantic is a limited partnership organized under the laws of the State of Delaware and has its principal place of business in Houston, Texas. The principal business of North Atlantic is the transportation of natural gas for shippers who contract for service on its pipeline facilities.

North Atlantic will import the natural gas under spot and short-term purchase arrangements, either on its own behalf or as the agent for others. The proposed authorization involves the construction of approximately 190 miles of new pipeline facilities originating at the U.S.-Canada border in the Gulf of Maine and terminating onshore in the United States in East Kingston, New Hampshire.

II. FINDING

The application filed by North Atlantic has been evaluated to determine if the proposed import 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 of natural gas from 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 North Atlantic to import natural gas from 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.

ORDER

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

A. North Atlantic Pipeline Partners, L.P. (North Atlantic) is authorized to import up to 500 Bcf of natural gas from Canada over a two-year term beginning on the date of the initial delivery. This natural gas may be imported at the U.S.-Canada International Boundary in the Gulf of Maine.

B. Within two weeks after deliveries begin, North Atlantic 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 import of natural gas authorized in Ordering Paragraph A above occurred.

C. With respect to the natural gas imports authorized by this Order, North Atlantic 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 of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no imports of natural gas have been made, a report of "no activity" for that calendar quarter must be filed. If imports have occurred, North Atlantic must report total monthly volumes in Mcf and the average purchase price of gas per MMBtu at the international border. The reports shall also provide the details of each import transaction, including: (1) the name of the seller(s); (2) the name of the purchaser(s); (3) the estimated or actual duration of the agreement(s); (4) the name of the United States transporter; (5) the point of entry; (6) the geographic market(s) served; (7) whether sales are being made on an interruptible or firm basis; and, if applicable, (8) 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 January 30, 1998, and should cover the period from the date of this Order until the end of the fourth calendar quarter, December 31, 1997.

Issued in Washington, D.C., on October 22, 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. § 717b.