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CHAPTER IV-PETROLEUM CONSERVATION
DEPARTMENT OF THE INTERIOR
Part 401 Petroleum conservation orders 402 Certificates of clearance for move
ments of petroleum and petroleum
products in interstate commerce EDITORIAL NOTE: For list of abbreviations used in this chapter, see note to § 401.1.
PART 401–PETROLEUM CONSERVATION ORDERS
nated as agent of President. 401.4 Approving Federal forms. 401.2 Authorizing establishment Pe
troleum Conservation Division;
purpose. Section 401.1 Secretary of the Interior designated as agent of President. I hereby designate and appoint the Secretary of the Interior as the agent of the President to execute all of the powers and functions vested in the President by the said Act (49 Stat. 30; 15 U.S.C. 715–7151) except those vested in him by section 4 thereof: Provided, That no regulation prescribed by the Secretary of the Interior under section 5 (a) of the said Act the violation of which is punishable by fine or imprisonment shall be effective unless and until approved by the President. (Secs. 5, 11, 49 Stat. 31, 33, 50 Stat. 257; 15 U.S.C., Sup., 7150, 715j, 7151) [E.Q. 7756, Dec. 1, 1937, 2 F.R. 2664]
ABBREVIATIONS: The following abbreviations are used in this chapter :
401.2 Authorizing establishment Petroleum Conservation Division; purpose. I hereby expressly authorize the Secretary of the Interior to establish a Petroleum Conservation Division in the Department of the Interior, the functions and duties of which shall be: (a) to assist, in such manner as may be prescribed by the Secretary of the Interior, in administering the said Act, (b) to cooperate with the oil- and gas-producing States in the prevention of waste in oil and gas production and in the adoption of uniform oil- and gasconservation laws and regulations, and (c) to keep informed cur
rently as to facts which may be required for the exercise of the responsibility of the President under section 4 of the said Act. (Secs. 5, 11, 49 Stat. 31, 33, 50 Stat. 257; 15 U.S.C., Sup., 715d, 715j, 7151) [E.O. 7756, Dec. 1, 1937, 2 F.R. 2664]
401.3 Designated area. That part of the State of Texas included within the Counties of Gregg, Upshur, Smith, Rusk, and that part of Cherokee County covered by the Miguel de los Santos Coy, Pratt and Wesley Dikes Surveys (to be known as the East Texas Field) is hereby constituted a designated area within the meaning of $ 402.3, and the regulations prescribed by said section shall apply to all petroleum and petroleum products in or from said area and to all persons producing, refining, processing, manufacturing, storing, shipping or transporting petroleum or petroleum products in or from said area.
(a) Establishing Federal Tender Board No. 1. I hereby establish a board to be known as Federal Tender Board No. 1, for the purpose of issuing certificates of clearance for such area under said Act and administering the regulations prescribed under said Act. Such Board shall consist of one or more persons who shall be appointed by the Secretary of the Interior and shall serve at his pleasure. The principal office of Federal Tender Board No. 1 shall be located at Kilgore, Texas.
(b) Prescribing forms. Applications to Federal Tender Board No. 1 for certificates of clearance, supporting affidavits for said applications, and returns relative thereto shall be made on forms in accordance with instructions prescribed and approved by the Secretary of the Interior and appearing thereon.
(c) Prescribing monthly reports. Monthly reports by refineries, reclamation plants, casing-head gasoline plants, pipe lines and producers operating in the East Texas Field shall be made on forms in accordance with instructions prescribed and approved by the Secretary of the Interior and appearing thereon.
(d) Effective date. The operation of this section shall be immediately effective. (Secs. 5, 11, 49 Stat. 31, 33, 50 Stat. 257;
15 U.S.C., Sup., °715d, 715j, 7151) [E.O. 7758, Dec. 1, 1937, 2 F.R. 2669, 2670]
401.4 Approving Federal forms. Pursuant to Executive Orders Nos. 7756, 7757, and 7758,1 Forms OCR-1 and OCR-2, Forms 1, 2, 3, and 4, and Forms A, B, C, D, and E, all dated April 1, 1938, are prescribed and approved this date. (Secs. 5, 11, 49 Stat. 31, 33, 50 Stat. 257; 15 U.S.C., Sup., 715d, 715j, 7151) [A.O. 1263, Apr. 1, 1938, 3 F.R. 689]
12 F.R. 2664–2670.
PART 402–CERTIFICATES OF CLEARANCE FOR MOVEMENTS OF PETROLEUM AND PETROLEUM PRODUCTS IN INTERSTATE COMMERCE
Sec. 402.1 Regulations adopted.
402.11 Examination books, records, fa402.2 Definitions.
cilities. 402.3 Establishment of Board in des- 402.12 Measurements; records. ignated area.
402.13 Records. 402.4 Shipments from designated area. 402.14 Accurate billing. 402.5 Federal Tender Board.
402.15 Monthly reports. 402.6 Application when destination un- 402.16 Way bills. known.
402.17 Maps. 402.7 Commingling.
402.18 Affidavits. 402.8 Quantity transported; returns
402.19 Water-borne cargoes. showing quantity required. 402.9 Stamp on shipping papers; con- 402.20 Investigation. signee notification.
402.21 Saving clause and revocation of 402.10 Non-tendered intrastate ship
Executive Order No. 6980-B. ments; notations; notifications.
CROSS REFERENCE Interstate Commerce Commission: See Transportation and Railroads, 49 CFR Chapter I.
Section 402.1 Regulations adopted. The regulations in this part are hereby adopted for the administration and enforcement of the provisions of the Act of February 22, 1935 (49 Stat. 30; 15 U.S.C., Sup., 715–7151) **
*88 402.1 to 402.21, inclusive, issued under the authority contained in secs. 5, 11, 49 Stat. 31, 33, 50 Stat. 257; 15 U.S.C., Sup., 7150, 7153, 7151.
†The source of $$ 402.1 to 402.21, inclusive, is Executive Order 7757, Dec. 1, 1937, 2 F.R. 2664-2669.
402.2 Definitions. When used in this part or in subsequent orders and regulations prescribed pursuant to said Act and Executive orders, or in any forms prescribed thereunder:
(a) Person. The term “person” shall include any individual, partnership, corporation or joint stock company:
(b) Producer. The term “producer” shall include every person having any part in the control or management of any operation by which petroleum is produced from any property. Every person in possession of crude petroleum who refuses to identify the prior owner thereof, from whom he acquired the same, shall be deemed the producer of such petroleum within the meaning of the regulations in
(c) Refiner. The term "refiner" shall include every person who has any part in the control or management of any operation by which the physical or chemical characteristics of petroleum or petroleum products are changed, but exclusive of the operations of passing petroleum through separators to remove gas, placing petroleum in settling tanks to remove basic sediment and water, dehydrating petroleum and generally cleaning and purifying petroleum. Within the term shall be included every person who blends petroleum with any product of petroleum.
(d) Reclamation plant. The term “reclamation plant” shall include every plant operated in the process of reclaiming, treating or
washing waste petroleum, wash oil, pit oil, fugitive oil, basic sediment, or tank bottoms.
(e) Casing-head gasoline plant. The term "Casing-head gasoline plant” shall include every plant or device by the use of which gasoline or natural gasoline or casing-head gasoline (as those terms are commonly understood in the industry), or any of them, is extracted by any process or method from natural gas or casing-head gas, or from any gas liberated from petroleum in the process of refining.
(f) Pipe line. The term “pipe line” shall include every line of pipe, however constructed and regardless of length, and all receiving, storage and delivery tanks and facilities used in the operation thereof, by which petroleum or any petroleum product is transported, regardless of whether or not such line of pipe is owned, in whole or in part, by the person producing, refining, processing, manufacturing, purchasing, cleansing, or marketing such petroleum or such petroleum product, or by any or all such persons jointly, or by any other person or combination of persons, except that the term “pipe line” shall not include any line from a well to lease storage, or any line used in actual plant operations, and not used in the receipt or delivery of petroleum or petroleum products. The terms “pipe line system” and “gathering system” are included within the term “pipe line.”
(g) Transporting agency. The term “transporting agency" shall include railroads, pipe lines, gathering systems, tankers, barges, trucks, or any other means of conveyance used for transporting petroleum or petroleum products.
(h) Storer. The term "storer” shall include every person who places petroleum or any petroleum product in any receptacle and keeps the same in any such receptacle for any period of time longer than is usually required in the ordinary conduct of business to move the same currently into the channels of trade and commerce; but excluding the ordinary working stocks of refiners and transporters by pipe line.
(i) Petroleum. The term “petroleum” when used singly and separate and apart from "product" shall include petroleum in its crude form, and the terms “product (or products) of petroleum” or “petroleum product (or products)” shall include any article produced or derived in whole or in part from petroleum or any product thereof by refining, processing, manufacturing or otherwise. Whenever natural gas is produced in conjunction or coincidentally with petroleum, such natural gas and all products derived therefrom shall be considered petroleum products. The terms "oil", "crude oil”, and "crude petroleum” shall be considered synonymous with petroleum in the regulations in this part.
(j) Barrel of petroleum. The term “barrel of petroleum” means 42 United States gallons of petroleum measured and calculated to net or gross quantities in accordance with the regulations of the State authorities in force at the point of production, or in the absence of such regulations, measured and calculated in the manner generally in use in the industry at such point of production. The term "barrel” as used otherwise in the regulations in this part shall mean 42 United States gallons of the article referred to.
(k) Contraband oil. The term “contraband oil” means petroleum which, or any constituent part of which, was produced, transported, or withdrawn from storage in excess of the amounts permitted to be produced, transported, or withdrawn from storage under the laws of à State or under any regulation or order prescribed thereunder by any board, commission, officer, or other duly authorized agency of such Ştate, or any of the products of such petroleum.
(1) Interstate commerce. The term "interstate commerce” means commerce between any point in a State and any point outside thereof, or between points within the same State but through any place outside thereof, or from any place in the United States to a foreign country, but only in so far as such commerce takes place within the United States.** [Reg. I]
402.3 Establishment of Board in designated area. The Secretary of the Interior shall, whenever the facts in any area render it necessary or appropriate for the enforcement of the provisions of said Act, designate such area (hereinafter sometimes referred to as “designated area”) and shall establish a Board or Boards to issue certificates of clearance in accordance with the provisions of said Act. He shall establish such further regulations as may be necessary or appropriate in order to enforce the provisions of the said Act in any such area.** [Reg. II]
402.4 Shipments from designated area-(a) Certificate of clearance. No person shall ship or transport in interstate commerce from any designated area petroleum or petroleum products unless a certificate of clearance covering such petroleum or petroleum products has been issued in conformity with the provisions of this part.
(b) Commingling. No person shall ship or transport from any designated area petroleum or petroleum products not covered by a certificate of clearance if such petroleum or petroleum products are commingled with petroleum or petroleum products all or part of which are to be shipped or transported in interstate commerce.
(c) Shipments. Whenever petroleum or petroleum products shall be shipped or transported from any designated area without a certificate of clearance first having been issued therefor, no person shall ship, reship or transport in or divert into interstate commerce such petroleum or petroleum products, in whole or in part, or any petroleum or petroleum products commingled therewith unless a certificate of clearance covering such petroleum or petroleum products has been issued therefor.
(d) Vehicles. The provisions of this part shall apply to petroleum and petroleum products transported in interstate commerce in railroad engine tenders, in fuel or other tanks of automotive vehicles, or in vessels of all kinds whether as part of the cargoes or for consumption.
(e) Tenders. The certificates of clearance hereinabove referred to shall be known as “Tenders.” ** [Reg. III]
402.5 Federal Tender Board-(a) Tender hearings; tender approval; forms; reports. Each Board established in accordance with 8 402.3, hereinafter referred to as "Boards”, shall consist of one
**For statutory and source citations, see note to § 402.1.