UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







NATURAL GAS CLEARINGHOUSE

FE DOCKET NO. 97-78-NG








ORDER GRANTING BLANKET AUTHORIZATION TO IMPORT

NATURAL GAS FROM CANADA AND MEXICO AND

TO EXPORT NATURAL GAS TO CANADA AND MEXICO











DOE/FE ORDER NO. 1316







OCTOBER 24, 1997




I. DESCRIPTION OF REQUEST

On October 10, 1997, Natural Gas Clearinghouse (NGC) 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 an aggregate of 600 Bcf of natural gas from Canada and Mexico and to export up to an aggregate of 330 Bcf of natural gas to Canada and Mexico. The term of the authorization would be for two years beginning on October 31, 1997.(2) NGC is a Colorado partnership. NGC's principal place of business is in Houston, Texas. NGC is a subsidiary of NGC Corporation, which has subsidiaries involved in the gathering, processing, and marketing of natural gas, natural gas liquids and crude oil, as well as the generation and marketing of electric power. The volumes will be imported and exported by NGC under spot and short-term sales arrangements, either on its own behalf or as the agent for others. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by NGC 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 nations with which there are in effect free trade agreements 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 NGC to import and export natural gas from and to Canada and Mexico, nations with which free trade agreements are 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. Natural Gas Clearinghouse (NGC) is authorized to import up to an aggregate of 600 Bcf of natural gas from Canada and Mexico and to export up to an aggregate of 330 Bcf of natural gas to Canada and Mexico. The term of this authorization is for a period of two years, from October 31, 1997, through October 30, 1999. The natural gas may be imported and exported at any United States border point.

B. With respect to the natural gas imports and exports authorized by this Order, NGC 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 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, NGC 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 U.S. 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.

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 October 31, 1997, until the end of the fourth calendar quarter, December 31, 1997.

Issued in Washington, D.C., on October 24, 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 . This is the expiration date of NGC's existing blanket import/export authorization granted by DOE/FE Order No. 1110 dated October 31, 1995 (1 FE ¶ 71,190).