UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







HUSKY GAS MARKETING INC.

FE DOCKET NO. 97-97-NG








ORDER GRANTING BLANKET AUTHORIZATION

TO IMPORT NATURAL GAS FROM CANADA












DOE/FE ORDER NO. 1336







NOVEMBER 20, 1997





I. DESCRIPTION OF REQUEST

On November 7, 1997, Husky Gas Marketing Inc. (Husky) 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, requesting blanket authorization to import up to 200 Bcf of natural gas from Canada over a two-year term beginning on the date of first delivery after November 30, 1997.(2) Husky, a Delaware corporation with its principal place of business in Calgary, Alberta, is an indirectly wholly-owned subsidiary of Husky Oil Operations Ltd. Husky will import the gas under short-term and spot market conditions. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by Husky 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 importation 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 Husky 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. Husky Gas Marketing Inc. (Husky) is authorized to import from Canada, at any point on the international border, up to 200 Bcf of natural gas over the two-year term beginning on the date of first delivery after November 30, 1997.

B. Within two weeks after deliveries begin, Husky 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 delivery of natural gas authorized in Ordering Paragraph A above occurred.

C. With respect to the natural gas imports authorized by this Order, Husky shall file with the Office of Fuels Programs, within 30 days following each calendar quarter, quarterly reports indicating whether imports of natural gas have been made. If no imports have been made, a report of "no activity" for that calendar quarter must be filed. If imports occur, Husky must report total monthly volumes in Mcf and the average purchase price 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 U.S. 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.

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 December 1, 1997, until the end of the fourth calendar quarter, December 31, 1997.

Issued in Washington, D.C., on November 20, 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. Husky's blanket import authorization, granted by DOE/FE Order No. 1117, dated November 13, 1995, 1 FE ¶ 71,197, expires November 30, 1997.