UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








NORTH AMERICAN ENERGY, INC.

FE DOCKET NO. 98-55-NG







ORDER GRANTING BLANKET AUTHORIZATION

TO IMPORT NATURAL GAS FROM CANADA












DOE/FE ORDER NO. 1402








JULY 27, 1998




I. DESCRIPTION OF REQUEST

On July 21, 1998, North American Energy, Inc. (North American Energy) 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, requesting blanket authorization to import up to 15 Bcf of natural gas from Canada over a two year period. North American Energy is a Delaware corporation with its principal place of business in Jamestown, New York. North American Energy currently has authorization to import natural gas from Canada, in DOE/FE Order No. 1162, which expires on August 2, 1998.(2) The requested authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by North American Energy has been evaluated to determine if the proposed 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 importation of natural gas from 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 North American Energy to import natural gas from 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. North American Energy, Inc. (North American Energy) is authorized to import from Canada up to 15 Bcf of natural gas over a two-year term beginning on August 3, 1998, and expiring on August 2, 2000. The gas may be imported at any United States/Canada border point.

B. With respect to the natural gas imports authorized by this Order, North American Energy shall file with the Office of Natural Gas & Petroleum Import and Export Activities, Fossil Energy, within 30 days following each calendar quarter, quarterly reports indicating whether imports of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no imports have been made, a report of "no activity" for that calendar quarter must be filed. If imports occur, North American Energy must report total monthly volumes in Mcf and the average purchase price per MMBtu at the international border. The reports shall also provide the details of each import transaction, including: (1) the name of the seller(s); (2) the name of the purchaser(s); (3) the estimated or actual duration of the agreement(s); (4) the name of the U.S. transporter(s); (5) the point(s) of entry; (6) the geographic market(s) served (by state); (7) whether sales are being made on an interruptible or firm basis; and, if applicable, (8) the per unit (MMBtu) demand/commodity/reservation charge breakdown of the contract price.

C. 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 August 3, 1998, until the end of the third calendar quarter, September 30, 1998.

D. The quarterly 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.

Issued in Washington, D.C., on July 27, 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/ 1 FE ¶ 71,255, April 30, 1996.