UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








NATIONAL FUEL RESOURCES, INC.

FE DOCKET NO. 98-45-NG







ORDER GRANTING BLANKET AUTHORIZATION TO

IMPORT AND EXPORT NATURAL GAS

FROM AND TO CANADA










DOE/FE ORDER NO. 1392








JUNE 26, 1998




I. DESCRIPTION OF REQUEST

On June 25, 1998, National Fuel Resources, Inc. (NFR) 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 an aggregate of 20 billion cubic feet (Bcf) of natural gas from and to Canada over a two-year term beginning on June 1, 1998, through May 31, 2000.(2) NFR is a New York corporation, with its principal place of business in Williamsville, New York. NFR is a wholly-owned subsidiary of National Fuel Gas Company and is a marketer of natural gas. NFR will import and export the natural gas under spot and short-term purchase arrangements on its own behalf and on the behalf of others. The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by NFR 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 NFR 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.

ORDER

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

A. National Fuel Resources, Inc. (NFR) is authorized to import and export up to an aggregate of 20 Bcf of natural gas from and to Canada over a two-year term beginning on June 1, 1998, through May 31, 2000. This natural gas may be imported or 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, NFR shall file with 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, NFR must report the following: (1) total monthly volumes in Mcf; (2) the average 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 or exit; (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, 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 June 26, 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/ National Fuel Resources, Inc.'s blanket authorization to import and export natural gas from and to Canada expired on May 31, 1998. See DOE/FE Order No. 1172 issued June 7, 1996 (1 FE ¶ 71,268).