UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







WILLIAMS ENERGY SERVICES COMPANY

FE DOCKET NO. 97-79-NG








ORDER GRANTING BLANKET AUTHORIZATION TO

IMPORT NATURAL GAS

FROM CANADA












DOE/FE ORDER NO. 1318







OCTOBER 27, 1997




I. DESCRIPTION OF REQUEST

On October 14, 1997, Williams Energy Services Company (WESCO) 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 200 Bcf of natural gas from Canada over a two-year term beginning on November 1, 1997.(2) WESCO, a Delaware corporation with its principal place of business in Tulsa, Oklahoma, is a subsidiary of Williams Holdings of Delaware, Inc., which in turn is a subsidiary of The Williams Companies, Inc. WESCO 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 does not involve the construction of new pipeline facilities. II. FINDING

The application filed by WESCO 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 WESCO 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. Williams Energy Services Company is authorized to import up to 200 Bcf of natural gas from Canada over a two-year term from November 1, 1997, through October 31, 1999. This natural gas may be imported at any point on the border of the United States and Canada.

B. With respect to the natural gas imports authorized by this Order, WESCO 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, WESCO 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(s); (5) the point(s) 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.

C. Quarterly reports shall be filed 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.

D. 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 27, 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 WESCO's existing blanket authorization to import natural gas from Canada granted by DOE/FE Order No. 1091 dated October 2, 1995 (1 FE ¶ 71,168).