UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








INDECK-YERKES LIMITED PARTNERSHIP

FE DOCKET NO. 89-21-NG







AMENDING ORDER TO VACATE LONG-TERM AUTHORIZATION

TO IMPORT NATURAL GAS FROM CANADA











DOE/FE ORDER NO. 425-B














Indeck-Yerkes Limited Partnership (Indeck-Yerkes) is currently authorized in DOE/FE Opinion and Order No. 425 (Order 425)(1) to import from Indeck Gas Supply Corporation up to 4.5 Bcf of Canadian natural gas per year over a term of 15 years beginning November 1, 1990.(2) In an application filed August 24, 1998, Indeck-Yerkes requested the Department of Energy rescind its authorization.

Indeck-Yerkes owns and operates a non-utility generating facility and sells its power output to Niagara Mohawk Power Corporation (NMPC). As the result of the implementation of a "Master Restructuring Agreement," effective June 30, 1998, between NMPC and certain non-utility generators, including Indeck-Yerkes, Indeck-Yerkes has entered into a new ten-year term power sales arrangement with NMPC at market sensitive prices. Due to this change in the nature of its contractual relationship with NMPC, Indeck-Yerkes has also entered into agreements to terminate its long-term gas supply contracts with Canadian producers. Future purchases of Canadian natural gas will be made in spot and short-term open market transactions with various Canadian suppliers.(3)

Accordingly, pursuant to section 3 of the Natural Gas Act, Order 425 is amended to vacate the authorization granted to Indeck-Yerkes Limited Partnership to import natural gas. Issued in Washington, D.C., on September 10, 1998.



_________________________________

John W. Glynn

Manager, Natural Gas Regulation

Office of Natural Gas & Petroleum

Import and Export Activities

Office of Fossil Energy

1. 1 FE ¶ 70,353 (September 29, 1990). Order 425 is a consolidated order that granted several companies authority to import natural gas.

2. This authorization was formerly held by Indeck-Yerkes Energy Services, Inc. and was transferred to Indeck-Yerkes Limited Partnership by DOE/FE Order No. 732 (1 FE ¶ 70,705, November 20, 1992).

3. The Department is granting Indeck-Yerkes short-term blanket import authority by separate order.