Organic fuel around lake Ed gathered (7)
I believe the answer is:
pleated
'gathered' is the definition.
(I've seen this before)
'organic fuel around lake ed' is the wordplay.
'organic fuel' becomes 'peat' (I've seen this in another clue).
'around' is an insertion indicator.
'lake' becomes 'L' (geographical abbreviation).
'peat' enclosing 'l' is 'pleat'.
'pleat'+'ed'='PLEATED'
(Other definitions for pleated that I've seen before include "Given creases" , "Folded and stitched" , "Gathered" , "(Garment) with folds" , "With folds sewn in" .)