System out near Sector 715. Sector 715 had an asteroid belt rich in deutrinium ore that was highly valued by both the alternate Starfleet and the Grey Coats as a fuel source.
The USS Valdemar was sent to the Dytallix System to seek out a Grey Faction ship and try and negotiate for control of the asteroid belt. It met with the USS Potemkin and was heavily damage in the skirmish.