UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








WILLIAMS ENERGY SERVICES COMPANY

FE DOCKET NO. 98-24-NG







ORDER GRANTING BLANKET AUTHORIZATION

TO IMPORT AND EXPORT NATURAL GAS

FROM AND TO MEXICO










DOE/FE ORDER NO. 1372








MARCH 31, 1998




I. DESCRIPTION OF REQUEST

On March 20, 1998, 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 and export up to a combined total of 400 Bcf of natural gas from and to Mexico. The authorization would be for a two-year term beginning on April 1, 1998, through March 31, 2000.(2) WESCO, a Delaware corporation with its principal place of business in Tulsa, Oklahoma, is a subsidiary of Williams Holdings of Delaware, Inc. WESCO plans to import and export the natural gas under short-term and spot market arrangements on its own behalf or on behalf of 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 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 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 WESCO to import and export natural gas, from and to Mexico, 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 (WESCO) is authorized to import and export up to a combined total of 400 Bcf of natural gas from and to Mexico over a two-year term beginning on April 1, 1998, through March 31, 2000.

B. This natural gas may be imported or exported at any point on the border between the United States and Mexico.

C. With respect to the natural gas imports and exports 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 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, WESCO 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 U. S. 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 (2) the per unit (MMBtu) demand/commodity/reservation charge breakdown of the contract price.

D. The quarterly reports required by Ordering Paragraph C of this Order 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.

F. The first quarterly report required by Ordering Paragraph C 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 31, 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/ WESCO's current blanket authority to import and export natural gas granted in DOE/FE Order No. 1146 expires on March 31, 1998 (1 FE ¶ 71,236).