UNITED STATES OF AMERICA
BEFORE THE
DEPARTMENT OF ENERGY
OFFICE OF FOSSIL ENERGY

APPLICATION OF CANWEST GAS SUPPLY U.S.A., INC.
FOR AUTHORIZATION TO IMPORT AND EXPORT
NATURAL GAS FROM AND TO CANADA

Communications with respect to this Application
should be addressed to:

Paul W. Fox, Esq.
Sarah G. Novosel, Esq.
Bracewell & Patterson, L.L.P.
A Registered Limited Liability Partnership
2000 K Street, N.W.
Suite 500
Washington, D.C. 20006
(202) 828-5800

Robert C. Beattie, Esq.
General Counsel and Corporate Secretary
CanWest Gas Supply U.S.A., Inc.
1285 West Pender Street, 7th Floor
Vancouver, B.C., Canada V6E4B1

February 12, 1997

UNITED STATES OF AMERICA
BEFORE THE
DEPARTMENT OF ENERGY
OFFICE OF FOSSIL ENERGY

APPLICATION OF CANWEST GAS SUPPLY U.S.A., INC.
FOR AUTHORIZATION TO IMPORT AND EXPORT
NATURAL GAS FROM AND TO CANADA

Pursuant to Section 3 of the Natural Gas Act ("NGA"), 15 U.S.C. Section 717b, Part 590 of the Regulations of the Department of Energy ("DOE"), Office of Fossil Energy ("FE"), and Section 201 of the Energy Policy Act of 1992 ("Energy Policy Act"), CanWest Gas Supply U.S.A., Inc. ("CanWest") hereby submits the instant application for blanket authorization to import and export natural gas from and to Canada. In support of this application, CanWest respectfully shows as follows:

I.
GENERAL

Correspondence and communications regarding this application should be addressed to the following:

II.
BACKGROUND

CanWest is a corporation organized under the laws of the State of Delaware, with its principal place of business at 1285 West Pender Street, 7th Floor, Vancouver, B.C., Canada V6E4B1. CanWest is owned by CanWest Gas Supply Inc., with its principal place of business in Vancouver, British Columbia. CanWest is actually engaged in the business of purchasing natural gas from various Canadian gas producers, and reselling that gas throughout the United States.

III.
AUTHORIZATION REQUESTED

By the instant application, CanWest requests that its import and export authorization from and to Canada be extended for another two-year period. CanWest was issued blanket authorization by the DOE/FE in Order No. 1029 on February 24, 1995 to import and export natural gas from and to Canada for a two-year term beginning on the date of first import. CanWest’s first delivery was made on March 1, 1995. This authorization is due to expire on February 28, 1997.

CanWest request authorization to import from and export to Canada a combined total of up to 400 Bcf of natural gas over a two-year term. The requested authorization will enable CanWest to participate in short-term or spot-market natural gas transactions with U.S. customers. Since a

transaction arranged by CanWest may be structured with CanWest either purchasing and taking title to the gas, or acting as agent for Canadian sellers and U.S. purchasers, CanWest requests authorization to import and export gas for its own account as well as for the account of its Canadian suppliers and its U.S. purchasers.

CanWest’s negotiations with prospective customers in the United States are of a continuing nature. Therefore, CanWest requests that such import and export authority be granted on a blanket basis at all existing points of import and export from and to Canada to provide CanWest with the flexibility necessary to respond quickly to these marketing opportunities. CanWest cannot be competitive with other sellers if t must apply for import and export authorization for each transaction. The subject application is similar to other blanket import and export arrangements approved by DOE.

IV.
PUBLIC INTEREST

The Energy Policy Act provides that the importation and exportation of natural gas from or to a nation with which there is in effect a free trade agreement shall be deemed to be within the public interest, and that applications for such importation and exportation shall be granted without modification or delay. Because CanWest’s application is for the importation and exportation of

natural gas from and to Canada, a nation with which the United States has a free trade agreement, CanWest submits that its application is within the public interest.

V.
ENVIRONMENTAL IMPACT

No new facilities will be constructed in the United States for the proposed importation and exportation of natural gas. Consequently, granting this application will not be a federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act, 42 U.S.C. � 4321, et seq. Therefore, an environmental impact statement or environmental assessment is not required.

VI.
REPORTING REQUIREMENTS

With respects to all imports and exports made pursuant to the authorization requested herein, CanWest will undertake to file with the DOE/FE in the month following the close of each calendar quarter, reports indicating by month whether imports or exports have occurred, and if so, the details of each transaction, including the total volumes of imports and exports in Mcf and the average price for the imports and exports per MMBtu at the international border. The reports shall include the name of the seller, the name of the purchaser, the estimated or actual duration of the agreements, the name of the U.S. transporter(s), the point of entry or point of exit, whether the sales are made on an interruptible of firm basis, and, if applicable, the per unit (MMBtu)

demand/commodity/reservation charge breakdown of the contract price. CanWest will notify the DOE/FE in writing of the date of the first delivery of natural gas imported or exported under the requested authorization within two weeks of such delivery.

VII.
CONCLUSION

WHEREFORE, for the foregoing reasons CanWest respectfully requests that the DOE/FE expeditiously consider the instant application and, pursuant to section 3 of the NGA and section 201 of the Energy Policy Act, grant its request for blanket import and export authorization. CanWest submits that a grant of such authorization would not be inconsistent with the public interest.

Respectfully submitted,

CanWest Gas Supply, U.S.A., Inc.

Paul W. Fox, Esq.
Sarah G. Novosel, Esq.
Bracewell & Patterson, L.L.P.
A Registered Limited Liability Partnership
2000 K Street, N.W.
Suite 500
Washington, D.C. 20006
(202) 828-5800

Attorneys for
CANWEST GAS SUPPLY U.S.A., INC.

February 12, 1997