NEW YORK STATE ELECTRIC & GAS CORPORATION

FE DOCKET NO. 98-43-NG

I. DESCRIPTION OF REQUEST

On June 19, 1998, New York State Electric & Gas Corporation (NYSEG) 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 50 billion cubic feet (Bcf) of natural gas from and to Canada over a two-year term beginning on July 1, 1998, through June 30, 2000.⁽²⁾ NYSEG, an electric and gas utility, is a New York corporation having an office in the Town of Dryden. NYSEG will import and export the gas under short-term and spot market purchase arrangements, either on its 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 NYSEG 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 and export of natural gas from and 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 NYSEG to import and export natural gas from and 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.

Pursuant to section 3 of the Natural Gas Act, it is ordered that:

A. New York State Electric & Gas Corporation (NYSEG) is authorized to import and export up to a combined total of 50 Bcf of natural gas from and to Canada over a two-year term beginning on July 1, 1998, through June 30, 2000. This natural gas may be imported and exported at any point on the international border of the United States and Canada.

B. With respect to the natural gas imports and exports authorized by this Order, NYSEG shall file within 30 days following each calendar quarter, quarterly reports indicating whether imports or exports of natural gas have been made. 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, NYSEG 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 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 October 30, 1998, and should cover the period from July 1, 1998, through the end of the third calendar quarter, September 30, 1998.

Issued in Washington, D.C., on June 23, 1998.

_________________________________

John W. Glynn

Manager, Natural Gas Regulation

Office of Natural Gas & Petroleum

Import & Export Activities

Office of Fossil Energy

1. 1/ 15 U.S.C. § 717b.

2. 2/ NYSEG's current blanket import and export authorization, granted by DOE/FE Order No. 1158, April 4, 1996 (1 FE ¶ 71,249) is due to expire June 30, 1998.