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controlled by, or is under common con- are converted to those that have superior "Residual fuel oil" means those fuel trol with such refiner) to use & trade- fuel properties.

oils commonly known as Nos. 4, 5, and 6 mark, trade name, service mark, or other "New customer" means & purchaser fuel oils, Bunker C, Navy Special Fuel identifying symbol or name owned by with a new fuel requirement, which is Oil, crude oil when burned directly as such refiner (or any such person), or not the result of a change in ownership fuel, and all other fuel oils which have a

(2) An agreement or contract under where & fuel requirement previously fifty percent boiling point over 700° F. In which any such person engaged in the existed.

the ASTM D86 standard distillation test. marketing or distributing of refined pe- "Notice of violation" means & written "Sanctions" means the penalties as troleum products is granted authority to statement issued to a person by the Fed- described in Subpart P, of part 202 of occupy premises owned, leased, or in eral Allocation Officer or the Regional this chapter. any way controlled by a refiner (or per- Administrator setting forth one or more "School" means an educational instituson who controls, is controlled by, or is charges of alleged violations of the Pro- tion up through the secondary level that under common control with such re- gram.

maintains a regular facility and curricufiner), but who is not affiliated with, con- "Priority allocation" means the quan- lum and has & regularly organized body trolled by. or under common control with tity of the substance being allocated of students in attendance at the place any refiner (other than by means of a which a supplier must distribute to all of where its educational activities are regusupply contract, or an agreement or con- his purchasers for their priority need as larly carried on. The term school, as tract described in paragraph (a) (1) or provided elsewhere in these regulations. used in this regulation, does not include (2)) of this definition, and who does not "Priority allocation requirements for a post-secondary education facilities. control such refiner.

supplier of end-users is the product of "Small refiner" means a refiner whose (b) The term "nonbranded independ- the aggregate priority needs of all his total refinery capacity (including the ent marketer" means & person who is en- end-user purchasers for each priority refinery capacity of any person who congaged in the marketing or distributing of class of use multiplied by the applicable trols, is controlled by, or is under comrefined petroleum products, but who (1) allocation level for that use classification. mon control with such refiner) does not is not a refiner, (2) is not a person The priority allocation requirement for exceed 175,000 barrels per day. who controls, is controlled by, is under & supplier selling for resale is the aggre- "State" means each of the 50 States, common control with, or is afiliated with gate priority allocation requirements of the District of Columbia, Puerto Rico, a refiner (other than by means of a sup- his purchasers. Suppliers selling for both possessions and territories of the United ply contract), and (3) is not a branded end-use and resale should combine these States, but excluding the Panama Canal independent marketer.

two figures to determine their priority Zone "Independent refiner" means a refiner allocation requirement.

"State office" means the office desigwho (a) obtained, directly or indirectly, "Priority need" means the priority nated by the governor or chief executive in the calendar quarter which ended im- base period volume, adjusted priority of each State, pursuant to this regulamediately prior to November 27, 1973. base period volume, or (where the rele- tion, to handle requests for assistance more than 70 percent of his refinery vant allocation level is in terms of cur- from the State set-aside. Input of domestic crude oil for 70 per rent requirements) current requirements "State set-aside" means a percentage cent of his refinery input of domestic of an end-user.

of the total supply of middle distillates, and imported crude oil) from producers "Products" mean all refined petroleum motor gasoline, residual fuel oil (except who do not control, are not controlled byproducts and residual fuel oil.

as used by utilities or as bunker fuel for and are not under common control with, "Public health, safety, and welfare" maritime shipping) which & refinersuch refiner, and (b) marketed or dis- are those qualities of life preserved and supplier or importer-supplier intends to tributed in such quarter and continues protected by hospitals and law enforce- distribute within that State during the to market or distribute a substantial yol- ment, fire fighting, and emergency med following month. The set-aside will be une ol gasoline refined by him through scal services, both public and private. taken from all refined and imported supbranded independent marketers or non- In addition, public health is protected plies of a refiner, but only from imported branded independent marketers.

by the maintenance of residential heat- supplies of other importer-suppliers. The "Local governmental unit" means any ing in Individual homes, apartments, and State set-aside is not a physical set-aside coumty, city, or other political subdivi- similar occupied dwelling units. Public of product. It cannot be accumulated or sion of a State, and any special purpose health is also protected by the provision deferred. It is made available to the distriot. of sanitation services.

States from working stocks of reaners "LPG" means propane and butane, but "Public services" are

and importers. not ethane.

(a) All services provided by all levels "Supplier" means any refiner, im. "Medical and nursing buildings" are of government, including local govern- porter, marketer, Jobber, distributor, buildings that house medical, dental and mental units;

terminal operator, firm, corporation (innursing practices including the use of (b) Mall delivery:

cluding any broker), cooperative, Fedclinics, hospitals, nursing homes and (c) Transportation services, as defined eral, State or local governmental unit or other facilities (including those for the in this subpart; and

other person who supplies, sells, conelderly) listed in Appendix I of 6 CFR (d) Facilities and services provided by signs, transfers or otherwise furnishes 300.18 and 300.19.

municipally, cooperatively, or investor any allocated substance either to end"Middle distillates" means any deriva- owned utilities.

users or for resale. A supplier may also tives of petroleum used for burning, in- "Refined petroleum product" means be a wholesale purchaser. cluding kerosene, home heating fuel, gasoline, kerosene, distillates (includ- "Total allocable supply" means the range oil, stove oil and diesel fuel, which ing Number 2 fuel of), LPG, refined lu- total supply of each allocated substance have a fifty percent boiling point in the bricating oils, or diesel fuel.

of a supplier. This includes supplies proASTM D86 standard distillation test fall- "Regional Administrator" means, for duced and/or received during the allocaing between 371 and 700° F.

the purpose of this regulation, the Direc- tion month, plus a portion of inventory Motor gasoline" means a mixture of tor of a Regional Office of the FEO. The pro rated so as to assure fairly convolatile hydrocarbons, suitable for oper- Regional Administrators shall be located stant allocation fraction throughout the ation of an internal combustion engine, in Boston, Massachusetts; New York, period of peak use. In the case of a rewhose major components are hydro- New York; Philadelphia, Pennsylvania; iner-supplier or importer-supplier, total carbons with boiling points ranging from Atlanta, Georgia; Chicago, Illinois; Dal- allocable supply is total supply of each 140° to 390° F. and whose source is las, Texas; Kansas City, Missouri; Den- allocated substance less State set-aside through distillation of petroleum and ver, Colorado; San Francisco, California; quantities. cracking, polymerization, and other and Seattle, Washington.

"Transportation services" are: chemical reactions by which the natu- "Regional office" means regional office (a) Surface, including water and rail, rally occurring petroleum hydrocarbons of the Federal Energy Office.

facilities and services for carrying pass

FEDERAL REGISTER, VOL. 39, NO. 1-WEDNESDAY, JANUARY 2, 1974

752

RULES AND REGULATIONS engers whether public or privately owned, porting period, FEO certification will not ou to comply with this program by the which serve the general public; and be required as provided in 200.31(b) (4). FEO, shall each pay to the FEO an ad(b) Transportation of pupils to and

ministrative fee of 25 cents per barrel from school in & school bus.

Any refiner's capacity which has be"Utility" means a facility that genercome inoperable since the January 1973,

of crude oil directed to be sold or pur

chased. This administrative fee cannot ates electricity, by any means, and sells report to the Bureau of Mines must be deducted from refinery capacity.

be passed on to a refiner's customers it to the public. "Wholesale purchaser" means

(d) For purposes of this section, the through a product price increase.
any
term crude oil will include lease con-

(g) Exchanges of crude oil may be person, firm, corporation, cooperative, densate.

utilized to comply with the purchase and or government unit which purchases, re

sell provisions of this program, provided ceives through transfer, or otherwise $200.28 Allocation.

they are on a barrel for barrel basis. obtains an allocated substance in bulk

All refiners will be treated equitably Normal quality exchange differentials are or under contract at the wholesale level, under this program.

allowed. specifically including: (1) only those

(h) Ali sales, purchases and exchanges agricultural users who consume more

$ 200.29
Distribution system.

of domestic crude on made by any perthan 20,000 gallons per year; (2) only (a) Refiners who are required to sell son, in effect on December 1, 1973, shall those multi-family residences consum- crude oil must offer this crude oil, di- remain in effect, except purchases and ing more than 50,000 gallons per year; rectly or through exchange, to refiners sales made to comply with this program. and (3) all other purchasers who norwho are eligible to purchase crude oil

(i) Notwithstanding any provision to mally purchase more than 84,000 gallons under this program. The crude oil of

the contrary contained herein, upon of the product per year.

fered must be suitable for processing in written notice given to the then purSubpart C-Crude Oil and Refinery Yield and practical for delivery to plants or

chaser of crude at least 30 days prior to Control purchasing refiner.

the commencement of any allocation

(b) The type of crude oil purchased quarter that this program is in effect, a & 200.26 Scope of coverage.

or sold, the location of each sale, and the producer may sell all or any portion of (a) This subpart provides for the terms and conditions of sale shall be his crude oil to another purchaser for mandatory allocation of all crude oil agreed upon by individual companies that allocation quarter. New crude peproduced in or imported into the United conducting the transactions consistent troleum and released crude as defined in States for use in refineries, and a pro- with normal business practice, subject to 6 CFR 150.354 shall be priced in accordgram of refinery yield control, except as provisions of these regulations and to ance with that regulation. exempted under $200.2(b) (1). the applicable laws in effect at the time

$ 200.30 Method of allocation. (b) This subpart applies to all pro- of the transaction. ducers, refiners, and others who pur- (c) In the event of supply disruptions (a) One program is established for all chase crude oil from producers directly that substantially affect the program, or

of the U.8. For purposes of this subpart, or indirectly for resale or transfer to any refiner, the FEO may terminate or

Puerto Rico and the Virgin Islands are refineries. However, only refiners are re- reduce the sales volumes of any agree

included in PAD Distriots I-IV and quired to report to the FEO and to take ments made as required by this program,

Guam is included in PAD District V. certain actions based on directives by the publish new lists or partial new lists, and

(b) Each refiner will estimate the FEO. All persons able to increase the issue additional instructions for sales to total supplies of crude oil (including amount of imported crude oil, through bring the program back into reasonable crude oil from stripper wells) to become competition or control, are especially balance.

available for processing during a given encouraged to do so.

(d) Refiners who are eligible to pur- quarter and report their estimate to the & 200.27 Definitions.

chase crude oil under this program and FEO together with the supply of domestic who desire to purchase crude oil but are

crude oil and imported crude oil avail(a) "Refineries" are those industrial unable to negotiate a contract for crude able during the equivalent quarter of plants, regardless of capacity, processing oil within the time period allotted may 1973, as described in $ 200.31. Based on crude oil feedstock and manufacturing request that the FEO compel a refiner,

these estimates and refining capacity as refined petroleum products, except when required to sell crude oil, to sell an ac- reported, a refiner supply/capacity ratio such plant is a petrochemical plant as ceptable type of crude oil to the deficit will be calculated and announced by that term is defined in section 22, on refiner. Upon such request, the FEO may

FEO. In calculating a national refiner Import Regulation 1 (Revision 5), as direct a refiner who has not sold its re- supply/capacity ratio the maximum amended.

quired volume to sell crude to the deficit allocable supply attributed to any refiner (b) "Refiners" are those persons, com- refiner. Should the deficit refiner then by the FEO will be the lesser of estimated panies, or other corporate entities that decline to purchase the crude oil spec- supply available for the forthcoming own, operate or control the operations of ified by the FEO, any of that refiner's quarter or the amount of crude oil availone or more refineries.

rights to purchase that volume of crude able during the corresponding period of (c) For each refinery. "refining ca- oil based on the allocation program are

1973. pacity" is defined as the greater of that forfeited during the quarter, provided

(c) Refiners who have crude oil proccapacity reported to the Bureau of Mines that all other terms of the allocation essed by other refiners and who retain as of January 1, 1973, or actual crude program have been met by the seller. control of the products therefrom for oil runs (on a calendar day basis) as (e) Refiners required to sell crude oil sale will also report this as described in reported to the Bureau of Mines for Jan- under the provisions of this program

$ 200.31. The refiner who has crude oil uary through October, 1973. A refiner who have not negotiated contracts for processed by others will include that volwho has received a starter allocation un- the sale of the required volumes to re- ume of crude oil in his estimate of avail

section 25 Oil Import Regula- finers allowed to purchase crude oil, able supply of crude oil. That volume of tions, and who has requested and re- within 30 days of issuance of legal noti

crude oil will also be added to the capaccetved certification of his incremental fication shall notify the FEO and may be ity of the reporting refiner. Refiners who refinery capacity from FEO, pertaining directed by the FEO to sell certain vol

process crude oil for others will not into a new refinery expansion or reactiva

umes of a particular crude oil to specified clude that volume of crude ou in their

customers to comply with the program. estimate of available supply of crude oil. tion subsequent to the January 1, 1973

(f) Any refiner who has not nego

That volume of crude oil will be subcapacity report to the Bureau of Mines, tiated a contract to sell or purchase the tracted from the capacity of the processmay elect to have his net new capacity required amount of crude oil within 30 ing refiner. added to the capacity as reported to the days, and any eligible purchaser who has (1) Refiners whose estimate of alloBureau of Mines on January 1, 1973: requested assistance of FEO, and who is cable crude supplies to become available Provided, however, That for the first re- directed to respectively sell or buy crude during the quarter would result in &

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supply/capacity ratio exceeding FEO'S age gravity (API) for all crude oil esti- the net operating rate of such increased prescribed ratio are required to offer for mated to be delivered to refineries in Dis- capacity will be fled with FEO. FEO or sale and to sell crude oil supplies to tricts I-IV and District V. The price of its duly designated agent will, within eligible purchasers in amounts suicient crude oil offered for sale will be the 30 days of receipt of such application, to reduce the aggregate allocable supply/ weighted average price plus or minus 24 conduct a physical inspection of the subcapacity ratio for its refineries to the re- per barrel per API that the actual crude Ject facilities and upon verification of the spective FEO ratio.

oil being offered for sale is above or below new capacity operating rate, will certify (2) An eligible purchaser listing, con

the weighted average API In District such capacity. This new capacity will be sisting of those refiners whose refinery I-IV and 5¢ per barrel per 'API that eligible for use in determining crude oil operations are so deficient in crude oil the actual crude oil being offered for allocations only after FEO certification. supplies to become available that their sale is above or below the weighted aver- (1) In determining capacity for the supply/capacity ratio is more than 0.02 age in District V.

first reporting period of 1974, only the below the FEO ratio, will be published (h) Refiners required to sell crude oll stream day Inputs of crude oil certified in the form of a legal notification to- under this program will be allowed to re- for purposes of earning an oil import gether with a listing of those required

cover through an increase in their prod- allocation under section 25 of Ou Import to sell.

uct prices the entire cost of crude oil · Regulation 1 (Revision 5), as amended, (d) The price at which crude oil shall purchased or transferred less the pro- will be considered to be an increase in be offered for sale as required in this

ceeds of crude oil sold under this operating capacity as defined in these program in Districts I-IV or District V program.

regulations. Applications for permanent during any particular month that this (1) Refiners required to sell crude oil certification of the capacity must be filed subpart is in effect shall be the weighted under this program will also be allowed with FEO before March 20, 1974, 1 such average price of all crude oil delivered to increase their product prices to re- capacity is to be included in subsequent to the seller's plants in Districts I-IV,

cover an additional amount equal to 84¢ quarters. or District V (calculated as two separate

per barrel of crude oil sold to comply with (3) Capacity which has become invalues), during a particular month, plus this program.

operable in the preceding quarter will a 6 percent handling fee, plus any trans

(j) The Cost of Living Council, or its be reported and will be deducted from portation adjustment specified in para

successor, will modify 6 CFR 150.354 to operable refinery capacity for the current graph (f) of this section, plus a gravity allow the pricing provisions as specified and subsequent quarters. This includes adjustment as specified in paragraph in this subpart.

those refineries or portions of those (g) of this section. Each refiner required $ 200.31 Procedures and reporting ro

refineries charging crude oil which operto sell of under this program shall main- quirements.

ate only for certain portions of the year. tain records, which shall be made avail

(4) The estimated amount of crude

(a) Initial report. By January 10, 1974, oil to be delivered to other refiner's able to the FEO upon request, listing the

each refiner will provide the FEO with plants during the quarter for processing volumes and delivered prices of all crude oils delivered to its refinertes during each & report showing the following:

for the account of the reporting refiner month. Two separate weighted average

(1) The capacity of each of his re

under a processing agreement. fineries, as defined in $ 200.27(c). costs shall be calculated, one for crude

(5) The actual amount of crude oil

(2) Estimated runs of all domestic and delivered to other refiners for processing oils delivered to refineries in Districts I-IV and one for crude oils delivered to imported crude oil for the refiner's own for the account of the reporting

refiner account at each of his refineries during during the preceding quarter. refineries in District V.

the period from February 1, 1974, (e) For the purpose of calculating the

(c) Monthly reports. The general reweighted average delivered price, the through April 30, 1974.

porting requirements specified in Sub

(3) The estimated amount of crude delivered cost of such domestic crude oil

part L apply. oil to be delivered to other refiner's plants shall be the purchase price of the crude

(d) These reports shall identify each oll, at the point of purchase, plus any for processing for his own account under

domestic and foreign crude oil by stream a processing agreement during the same gathering or trucking allowances, pipe

or name and give the average daily volline tariffs, water transportation costs, period.

úme delivered or estimated to be deliv

(4) The estimated amount of crude oil terminalling costs and exchange differ

ered to each refiner. All reports shall be entlals paid to deliver the crude oil to processed in each of his refineries for the seller's refineries. For imported crude ment during the same period.

certined for correctness by an oficer of other refiners under a processing agree- the company. Supporting documents oil, the delivered price shall be the con

may be required by the FEO as it deems

(5) The amount of crude oil supply tract purchase price, if purchased from

necessary. available to the refiner for processing at & noncontrolled company, or the world his refineries for his own account and

(e) On January 15, 1974, and on the market price at which the foreign crude

first day of each calendar quarter, and oil is transferred to the U.S. corporation

the amount of crude oil processed by for U.S. income tax purposes for the

other refiners for his account during the following receipt of the initial report or corresponding period in 1973.

the subsequent quarterly reports the specific crude oil involved, if purchased

FEO will publish a legal notification or transferred from a subsidiary or

(b) Subsequent quarterly reports. showing required sales volumes and purbranch of the U.S. corporation, plus any Within ten (10) days before the end of

chase opportunities for each refiner in pipeline tariffs, water transportation each calendar

quarter, each refiner will

Districts I-V and will constitute instruccosts, terminalling costs, exchange dil- provide the FEO with a report showing

tions to the refiners to sell the required ferentials, import fees, insurance, duty, the following:

volumes of crude oil or inform them of and taxes paid to deliver crude oil to

(1) Estimated crude oil available dur

their opportunities to purchase addithe seller's refineries. All costs are as ing the following allocation quarter.

tional supplies. The commencement date defined by the COLC (if defined) to cal- (2) Any changes in refinery capacity for making sales as required under this culate raw material cost passthroughs. since the previous report. In order for program will be 15 days from the date the

(f) Actual additional transportation reported new refinery capacity, expan- initial lists are published and one month expenses incurred to move the offered slon, or reactivation to be eligible for use following the date that subsequent lists crude oil to the purchasers' refinery shall in determining a refiner's supply/capac- are published. Any agreements for the be paid by the purchaser. Actual trans- ity ratio, it will be necessary for such sale or purchase of crude oil after the portation expenses saved as a result of capacity to qualify for allocation under commencement date shall be retroactive moving the offered crude oil directly to section 25 of the Oil Import Regulations. to such date. the purchaser's refinery shall be de- Further, at the time that notice in ad- (f) Within 30 days of the date the lists ducted from the selling price.

vance of anticipated start-up is provided are published, each refiner shall make a (g) Each refiner required to sell crude under section 25 of the Oil Import Reg- report to the FEO showing purchases and oil will also calculate a weighted aver- ulations, application for certification of sales made to comply with the program.

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(8) For succeeding quarters, the FEO fraction of sales during the base period. (e) To allow refiners the same level of whi recalculate the fraction of avallablo The assigned fraction of base period sales revenues with reduced gasoline producsupplies and republish the list showing will be adjusted quarterly as required. ton, the cost of Living Council or its required sales volumes and purchase op Since gasoline supplies will be signif- successor, will publish celling prico portunities. The volumes on the sales and cantly reduced, it will be necessary for changes that allow suficient price inpurchase list will be modided by the dit- all users to curtall severely gasoline con- creases on products desired to be proference between the estimated availablosumption during the period of this duced to encourage Increased rennery volume of crude oil during the preceding emergency allocation program Re- production of such products. quarter and the actual volumes of crudo finers are urged to maximize production oil delivered to renners during the pro of distillates, residual fuel oil and petro

Subpart D Propane and Butano coding quarter. Refiners are urged to chemical feedstocks. Production in- $200.34 Mandatory allocation promaintain the same bw/sell relation- creases for these products should be

grams. ships, where possible, during succeeding made at those redneries where increased

(a) Propane--The effective date of this quarters

volumes can be distributed to areas of (h) Each transaction made to comply the country experiencing shortages, con

mandatory propane allocation program, with this program shall be reported to sistent with process capabluty.

pursuant to section 4(0) (2) of the Act, 18 the FEO. This report will indicate the (b) Coverage of program. This pro

delayed until January 11, 1974. Enersy selling and purchasing refiner and the gram applies to all petroleum redners Policy Regulation 3 shall continuo in efidentity and volumes of the crude oil and all refineries located in the United rect untu that time..

(b) Butane: sold.

States. The mandatory provisions of the (1) AD exchanges of foreign on for program will apply to the sale of gasolino

(1) There shall be established a sepdomestic crude oil in effect at the initia- and petroleum fractions used in blending

arate butane program. tion of this regulation shall remain in in all cases where the final finished

(2) This program shall cover all bueffect as long as the foreign crude oil product is gasoline.

tane produced from gas plants and rebeing delivered for exchange continues (c) Basis of product control. Each Anerles and all butane imported into the to be avallable. In the event that supplies refiner will be permitted to produce for

United States, except for butane proof foreign crude ou being exchanged be- sale a fraction of the gasoline produced duced and used within the same rennery come unavailable through circumstances from crude oil at his refineries during

as part of a feedstock for other refinery not under the control of the person, firm, the period equal to his historical ratio

products or as refinery fuel. or corporation that is supplying the for- of gasoline produced and sold per bar

(3) Butane-propane mixes sold in tho eign crude oil, and other replacement rel of crudo run at his refinertes during

LPG market shall be regulated under crude oils cannot be secured, then the the corresponding quarter of 1972 multi

the propane program it the fraction of exchange agreement may be terminated, plled by gasoline sales fraction. FEO

propane exceeds 10%. Mixtures with upon 7 days notice, provided that a full

lesser quantities of propane shall be conwill develop the gasoline sales fraction report is sent to the FEO and that the based on reported refinery production

sidered butanes. FEO he notined by telegram at the time and actual production required to most

(4) Priorities: There shall be three of the notice.

categories of priorities in descending nearly meet the needs of the various () It shall be each refiner's respon- product allocation programs. The FEO

order: slbility to report to the FEO any changes will establish and publish the gasoline

(1) Petrochemical production, includin avallable supply subject to allocation sales fraction and adjust this fraction

ing synthetic rubber Such reports may be died at any time.

(0) Traditional LPG markets includ. (k) In the event that a refiner's estion & quarterly basis as circumstances

ing Industrial fuel

(101) Gasoline blending mated supply has been reduced during warrant. Each refiner will sell or distribthe allocation period through circumuto gasoline to all his customers in ac

(5) Method of allocation-No butano

shall be delivered to a lower priority uso stances not within his control, the redner cordance with the gasoline allocation shall properly document the circum- program.

before first satisfying all higher priority stances to the FEO which will then in

(1) Tho FEO may establish or change uses. L & sur Her can onk meet his vestigate and attempt to resolve the sales fractions of other refinery products,

wholesale purchasers needs for part of a shortfall equitably as provided in para provided, however, the FEO will not es

particular priority category, he shall algraph (c) of this section.

tablish sales fractions of products other locate the available butane (not commit

than gasoline without Arst announcing ted for « higher priority use) to his $ 200.32 Crude oil sales periods.

its Intent to assign other sales fractions, wholesale customers in proportion to (a) The first crude oil sale period shall and giving the public time to comment their use during 1972. Existing contracts be for the three month period from Feb- on such proposed sales fractions.

will be honored (except to the extent onruary 1, 1974, through April 30, 1974. (2) Two or more refiners may, with consistent with the above). New supplSubsequent crude oil sales shall be for the consent of the FEO, agree to meet

ers will be determined as in Subpart I three month allocation quarters begin- the specined assigned gasoline fractions Petrochemicals. ning May 1, 1974. on a pooled basis such that the combined

Subpart E-Motor Gasolina $ 200.33 Mandatory refinery yield con- relative gasoline sales of these refinerles

Nors Pursuant to 4(1)(1) of the Act, tho trol program will be reduced by an amount equal to

Mandatory Motor Gasoline Allocation Pro (a) Intent of program. It is the intent the gasoline sales fraction specified by

gram will become offectivo no later than Janthe FEO. of the refinery yleld program to meet the

uary 11, 1974, and be implemented on Januessential requirements of the aviation

(d) Exceptions. The intent of this pro- ary 16, 1974. The priang provisions described

in Part 201 of this chapter shall, however, fuels, distillate, residual fuels and petro- gram is maximization of petroleum prodchemical feedstocks allocation programs ucts in critical short supply. Any appli- apply to Motor Gasoline immediately. by reducing the total supply of gasolino cation for an exception to allocations ap- Subpart F—Middle Distillate and encouraging refiners to maximize plicable to refiners because of rednery

NOTE.- Pursuant to coction 4(1)() of the production of these essential products. equipment limitations, quality of crudo Emergency Petroloum Allocation Act of 1078. 1s assumed that the requirements for feedstocks available, or for any reason, tho otoctive date of the Mandatory Middlo these essential products will be reduced would be granted only 1 FEO determines

Distillato Allocation Program promulgated

under that Act is delayed until January 11, to absolutely essential levels through that information submitted by the refiner

1974. Until January 11, 1974, the Mandatory various conservation programs. Caso and other information such as the results

Allocation Program for Middle Distillato line production is to be curtalled by of onsite inspections conclusively sup- Fuels published as EPO Rog. 1 on October 16, limiting gasoline sales to an assigned ports such application.

1978, shall continue in offect

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3ubpart Aviation Fuels

(b) "General Aviation" means (1) (8) "Aviation Fuels" means aviation $ 200.51 Scope of coverage.

Industrial Flying-that use of aircraft gasoline and aviation turbine fuel.

associated with industry, (1) "Agricul- (h) "Bonded Aviation Fuels" means (a) This subpart applies to the manda- tural Production Flying"—the use of those aviation fuels produced outside the tory allocation of aviation fuels pro- general aviation aircraft in the produc- territorial limits of the United States, duced in or imported into the United tion of agricultura, including seeding, held in bond under continuous United States.

spraying, 'ertilizing, and dusting of food States customs custody in accordance (b) There are two primary alloca- and forestry crops by air, the use of air- with Treasury Department Regulations, tion systems for aviation fuels. One, for craft by those engaged in agriculture to and destined for use outside of the Civil Air Carriers, is administered by the transport priority supplies and personnel United States, its territories or possesheadquarters of the Federal Energy

to sustain or increase crop and animal sions. Office and assures equitable distribution yields and to transport crop and animal

"Non-aviation use of Aviation of available fuel among the Civilian Air

products to distribution points, and in Fuels"--that consumption of aviation Carriers. The other program allocates to commercial fishing; (ii) "Energy Pro- fuels associated with gas turbine drive all other users of aviation fuel where

duction Flying"-the use of general avia- power plants in industry, utilities and aviation fuels are distributed by the sup- tion aircraft in the production of energy transportation. plier (retailer) to his customers, includ

sources, including pipeline and power- (j) The base period for aviation fuels ing transients, on a fair and equitable

line patrol, oil and gas exploration except for the Department of Defense basis. This program is administered by activities, necessary movement of sup- is the corresponding month in calendar the FEO regional offices for general avia

plies and personnel for the production year 1972 or as adjusted by the FEO. For tion and by the federal FEO for public of energy resources, anu other essential general aviation, this may be modified aviation.

flying for energy production; (iii) "Air- to be the average monthly consumption (c) Bonded aviation fuel is specif- craft Manufacturing"- that consump- at the option of the user. cally excluded from allocation in this

tion of aviation fuels associated viith airsubpart.

$ 200.53 Allocation. craft production, static and fight test$ 200.52 Definitions.

ing of aircraft and components, training (a Civil Air Carriers-Allocations will

of flight crews and the ferrying of air- be made to the end-users and supplied (a) "Civil Air Carrier" means 1)

craft, (2) Business Flying-any use of by those suppliers with whom the endDomes Carriers-those air car

aircraft not for compensation or hire by users were dealing on October 31, 1973. or riers holding a certificate of public con

an individual for the purpose of trans- as suppliers have changed through norvenience and necessity. providing for

portation required by < business in which mal business practices. interstate and overseas air transporta

he is engaged and any use of an aircraft (1) Domestic Air Carriers to receive tion, issued pursuant to section 401 of the Federal Aviation Act of 1958. as

by a corporation, company or other ninety-five percent of their base period

organization for the purpose of trans- consumption. amended; (2) International Air Car

porting its employees and/or property (2) International Air Carriers-to reriers—those air carriers holding a cer

not for compensation or hire and em- ceive ninety-five percent of their base tificate of public convenience and neces

ploying professional pilots for the opera- period consumption; this applies to nonsity, providing for foreign air transporta

tion of the aircraft. Business flying in- bonded fuel only. tion, issued pursuant to section 401 of

cludes such aerial uses as photography, (3) Intrą-State Carriers to receive the Federal Aviation Act of 1958, and

advertising, survey and helicopter hoist. ninety-five percent of their base period foreign air carriers holding permits is

13) Personal Pleasure/Instructional Fly- consumption. sued pursuant to section 402 of the Fed

ing-any use of aircraft for personal pur- (41) Regional Carriers-to receive oneeral Aviation Act of 1958, but excluding

poses not associated with a business or a hundred percent of their base period those with permits which restrict their

profession and not for hire, and any use consumption. operations to the use of aircraft not ex

of aircraft for the purpose of formal (5) Other Air Carriers to receive ceeding 12,500 pounds gross take-off

instruction with the flight instructor one-hundred percent of their base pe. weight; (3) Intrastate Carriers those carriers licensed by a State regulatory ticular flight specified by the flight inaboard or with maneuvers on its par- riod consumption.

b) General Aviation Allocations will agency and operating equipment having

structor. (4) Air Travel Club Flying- be made to the supplier (wholesaler) and more than 30 seats or a pay load of at

any use of aircraft operated under Part to the supplier (retailer) and other sellers least 7500 pounds: 14) "Regional Car

123 of the Federal Aviation Regulations. based upon eighty percent of base period riers"- those carriers holding a certif

(c) "Public Aviation" means any aircate pursuant to Sec. 401 of the Federal

consumption. The supplier (retailer) and craft used exclusively in the service of other sellers will assure fair and equitAviation Act of 1958, receiving Federal

the government and the political sub- able distribution among his customers subsidy and those carriers holding a cer

divisions thereof including the govern- including transients in accordance with tificate pursuant to section 401 of the

ment of any state, territory, or possession the following allowances. Federal Aviation Act of 1958 and (i)

of the United States or the District of 111 Industrial Flying receiving Federal subsidy. or (ii) operat. Columbia, for example: FAA aircraft. ing solely within the States of Hawaii or

(1 Agricultural Flying-to receive state and city police and forest firefightAlaska, or (iii) operating scheduled

one-hundred percent of current requireing aircraft, etc. helicopter service: and (5) "Other Air

ments.

(d) "Emergency Services, Safety, and Carriers"_those carriers holding a Fed

11) Energy Production Flying-to reMercy Missions"-Public or private aireral Aviation Administration Air Taxi craft dedicated to emergency operations, requirements.

ceive one-hundred percent of current Commercial Operating Certificate and a

safety and mercy missions. 298 exemption from the Civil Aeronautics

(ii) Aircraft Manufacturing-to re

(e) "Aviation Gasoline" means those Board including operations by scheduled petroleum-based fuels designed for use

ceive one-hundred percent of current recommuter airlines and non-scheduled air taxi operations; foreign carriers hold

in aircraft internal combustion engines quirements not to exceed one-hundreding permits under section 402 of the Fed

and complying with MIL-G-5572 speci- and-thirty percent of base period con

fication (ASTM Specification D-910-70). sumption. eral Aviation Act of 1958 authorizing

f) "Aviation Turbine Fuel" means all casual and infrequent service with air

(2) Aircraft for Business Flying-10 refined petroleum fuel designed to opcraft not exceeding 12,500 pounds gross erate aircraft turbine engines. The basic

receive eighty-percent of their base petake-off weight; and those carriers holdspecification is ASTM D 1655 which

riod consumption. ing a license issued under Part 135 of the covers both type A (kerosene base) and

(3) Aircraft for Personal Pleasure and Federal Aviation Regulations. type B naphtha base).

Instructional Flying-to receive seventypercent of their base period consumption.

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