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