UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY







THE CONSUMERS' GAS COMPANY LTD.

FE DOCKET NO. 97-110-NG








ORDER GRANTING BLANKET AUTHORIZATION

TO EXPORT NATURAL GAS TO CANADA













DOE/FE ORDER NO. 1346







DECEMBER 19, 1997




I. DESCRIPTION OF REQUEST

On December 4, 1997, The Consumers' Gas Company Ltd. (Consumers 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, requesting blanket authorization to export to Canada up to 100 Bcf of natural gas over a two-year period beginning on January 1, 1998.(2) Consumers Gas is an Ontario corporation with its principal place of business in Willowdale, Ontario. Consumers Gas is a large natural gas distribution utility which serves residential, commercial and industrial customers primarily within the metropolitan Toronto, Ottawa, and Niagara Falls regions of Ontario, Canada. Consumers Gas intends to export the gas under spot and short-term transactions. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by Consumers Gas has been evaluated to determine if the proposed 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 export of natural gas 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 Consumers Gas to export natural gas 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. The Consumers' Gas Company Ltd. (Consumers Gas) is authorized to export up to 100 Bcf of natural gas to Canada over a period of two years beginning on January 1, 1998, and ending December 31, 1999. This natural gas may be exported at any point on the U.S./Canada border.

B. With respect to the natural gas exports authorized by this Order, Consumers 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 exports of natural gas have been made. If no exports have been made, a report of "no activity" for that calendar quarter must be filed. If exports have occurred, Consumers Gas must report monthly total volumes in Mcf and the average purchase price per MMBtu at the international border. The reports shall also provide the details of each export 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 exit; and (6) the geographic market(s) served.

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 April 30, 1998, and should cover the period from January 1, 1998, until the end of the first calendar quarter, March 31, 1998.

Issued in Washington, D.C., on December 19, 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. § 717.b.

2. Consumers Gas' existing blanket export authorization granted by DOE/FE Order No. 1129, dated December 14, 1997, (1 FE ¶ 71,213) expires December 31, 1997.