UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







VERMONT GAS SYSTEMS, INC.

FE DOCKET NO. 97-96-NG








ORDER GRANTING BLANKET AUTHORIZATION TO

IMPORT AND EXPORT NATURAL GAS

FROM AND TO CANADA












DOE/FE ORDER NO. 1334







NOVEMBER 14, 1997




I. DESCRIPTION OF REQUEST

On November 5, 1997, Vermont Gas System, Inc. (Vermont Gas) 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 20 billion cubic feet (Bcf) of natural gas and export up to 20 Bcf of natural gas from and to Canada over a two-year term beginning on December 23, 1997.(2) Vermont Gas, a Vermont corporation, is a local distribution company whose principal place of business is in South Burlington, Vermont. Vermont Gas will import and export the gas under short-term and spot market purchase arrangements, either on its behalf for system supply or as the agent for others. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by Vermont Gas has been evaluated to determine if the proposed import and 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 and export of natural gas from and 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 Vermont Gas to import and export natural gas from and 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.

ORDER

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

A. Vermont Gas Systems, Inc. (Vermont Gas) is authorized to import up to 20 Bcf of natural gas and to export up to 20 Bcf of natural gas from and to Canada over a two-year term beginning on December 23, 1997, through December 22, 1999. This natural gas may be imported and exported at any point on the border of the United States and Canada.

B. With respect to the natural gas imports and exports authorized by this Order, Vermont Gas 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 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, Vermont Gas 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 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 United States transporter(s); (7) the point(s) of entry and exit; and (8) the geographic market(s) served (for imports, by State). For imports transactions only, the report shall 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. 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 December 23, 1997, until the end of the fourth calendar quarter, December 30, 1997.

Issued in Washington, D.C., on November 14, 1997.



_________________________________
Wayne E. Peters
Manager, Natural Gas Regulation
Office of Natural Gas & Petroleum
Import & Export Activities
Office of Fossil Energy

1. / 15 U.S.C. § 717b.

2. / December 22, 1997, is the expiration date of Vermont Gas's existing blanket import and export authorization granted by DOE/FE Order No. 1112, dated November 1, 1995(1 FE ¶ 71,192).