UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








TRISTAR GAS MARKETING COMPANY

FE DOCKET NO. 98-21-NG







ORDER GRANTING BLANKET AUTHORIZATION TO IMPORT

NATURAL GAS FROM CANADA AND TO IMPORT AND

EXPORT NATURAL GAS FROM AND TO MEXICO










DOE/FE ORDER NO. 1369








MARCH 19, 1998



I. DESCRIPTION OF REQUEST

On March 17, 1998, Tristar Gas Marketing Company (Tristar) 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 from Canada and to import and export from and to Mexico up to a combined total of 20 Bcf of natural gas. The term of the authorization would be for two years beginning on April 1, 1998, through March 31, 2000.(2) Tristar is a general partnership organized and existing under the laws of the State of Texas, with its principal place of business in Dallas. The volumes will be imported and exported by Tristar 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 Tristar 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 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 Tristar to import natural gas from Canada and to import and export natural gas from and to 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. Tristar Gas Marketing Company (Tristar) is authorized to import from Canada and to import and export from and to Mexico up to a combined total of 20 Bcf of natural gas. The term of this authorization is for a period of two years beginning on April 1, 1998, and ending March 31, 2000. The natural gas may be imported and exported along any United States international border point between Canada and Mexico.

B. With respect to the natural gas imports and exports authorized by this Order, Tristar 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, Tristar 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 United States 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. Quarterly reports shall be filed with the Office of Natural Gas & Petroleum Import and Export Activities, Fossil Energy, Room 3E-042, 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 July 30, 1998, and should cover the period from April 1, 1998, through the end of the second calendar quarter, June 30, 1998.

Issued in Washington, D.C., on March 19, 1998.





_________________________________

John W. Glynn

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. March 31, 1998 is the expiration date of Tristar's existing blanket authorization granted by DOE/FE Order No. 1229 dated December 23, 1996 (1 FE ¶ 71,343).