UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








BURLINGTON RESOURCES TRADING INC.

FE DOCKET NO. 98-37-NG







ORDER GRANTING BLANKET AUTHORIZATION

TO EXPORT AND IMPORT NATURAL GAS TO AND FROM MEXICO












DOE/FE ORDER NO. 1388








MAY 28, 1998




I. DESCRIPTION OF REQUEST

On May 22, 1998, as amended on May 27, 1998, Burlington Resources Trading Inc. (Burlington) 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 export and import up to 100 Bcf of natural gas to and from Mexico. The term of the authorization would be for a period of two years beginning on June 1, 1998, through May 31, 2000.(2) Burlington is a Delaware corporation with its principal place of business in Houston, Texas. Burlington is a supplier, gatherer, processor, and marketer of natural gas. Burlington is engaged in the short-term export of domestically produced gas to Mexico and may engage in the import of Mexican produced gas to the United States. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by Burlington has been evaluated to determine if the proposed export/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 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 Burlington to export and import natural gas to and from 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. Burlington Resources Trading Inc. (Burlington) is authorized to export and import up to a 100 Bcf of natural gas to and from Mexico over a two-year term, beginning on June 1, 1998, through May 31, 2000. This natural gas may be exported and imported at any point along the international U.S./Mexico border.

B. With respect to the natural gas exports and imports authorized by this Order, Burlington shall file, within 30 days following each calendar quarter, quarterly reports indicating whether exports or imports of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no exports or imports of natural gas have been made, a report of "no activity" for that calendar quarter must be filed. If exports or imports have occurred, Burlington 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. The reports required by Ordering Paragraph B 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.

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 June 1, 1998, until the end of the second calendar quarter June 30, 1998.

Issued in Washington, D.C., on May 28, 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/ Burlington's blanket import/export authorization granted by DOE/FE Order Nos. 1119 and 1119-A, dated November 13, 1995 and October 31, 1996, respectively, expired April 30, 1998 (1 FE ¶ 71,199 and 1 FE ¶ 71,325).