End-users do not have allocation entitlements. If an end-user is unable to locate a supplier or is unable to purchase a volume of a petroleum product sufficient to meet its requirements, it may petition the DOCA for relief pursuant to Part 661 of this chapter.

(b) Entitlements: wholesale purchasers. A wholesale purchaser shall be entitled to receive a volume of a petroleum product equal to the sum of the volumes allocable to it from each of its suppliers in the Commonwealth. The volume supplied to a purchaser by each of its suppliers in the Commonwealth shall be the product of that supplier's allocation fraction multiplied by that purchaser's base period use purchased or obtained from that supplier.

(c) Base period volume determination. (1) (i) By October 31, 1974, each wholesale purchaser shall certify to each of its suppliers the amount of a petroleum product purchased from that supplier and which it exported or sold for export from the Commonwealth in each base period. If a wholesale purchaser is unable to determine the supplier from which the petroleum product it exported or sold for export was purchased, the wholesale purchaser shall certify to each supplier a pro rata share of the total volume of petroleum product it exported or sold for export in each base period.

(ii) By November 4, 1974, each supplier which sells a petroleum product to a wholesale purchaser shall report to each of its wholesale purchasers with respect to each petroleum product, the volume of petroleum product it sold to or transferred to that purchaser in each base period, less any amount reported to the supplier by the wholesale purchaser pursuant to paragraph (c)(1)(i) of this section.

(2) In the event that the purchaser disagrees with the base period volume computed by its supplier, it should make application to the DOCA for a corrected base period volume pursuant to Part 661 of this chapter. Copies of the purchaser's records for base period purchases should be included with the application.

(d) New wholesale purchasers—(1) Mutual arrangements. (i) Subject to the provisions of paragraph (d)(1)(ii)

of this section, a wholesale purchaser without a base period supplier or a new supplier as provided in § 660.103(d)(1) and a supplier may agree upon a proposed base period volume for the wholesale purchaser. The base period volume agreed upon shall afford the wholesale purchaser a fair and equitable volume in light of its requirements together with other relevant circumstances including the supplier's supply obligations to its other wholesale purchasers.

(ii) With respect to any arrangement made pursuant to paragraph (d)(1)(i) of this section, the supplier must notify the DOCA of the name of the wholesale purchaser, the proposed base period volume and the basis upon which the proposed base period volume was determined within ten (10) days of the effective date of these regulations. The supplier may not provide the wholesale purchaser with petroleum products until he has so notified the DOCA of the mutual arrangement. The DOCA may assign the wholesale purchaser to another supplier and may adjust the proposed base period volume.

(2) Assignment of supplier. (i) Any wholesale purchaser which does not have a base period supplier, or new supplier as provided in § 660.103(d)(1), or which is unable to locate a supplier pursuant to paragraph (d)(1) of this section, and any other wholesale purchaser which is otherwise unable to obtain sufficient supplies may petition the DOCA pursuant to Part 661 of this section, for the assignment of a supplier and a base period volume.

(ii) Any assignment of a base period volume will be deemed to have been adjusted for growth through the date of the assignment and may be adjusted thereafter under the provisions of § 660.106(b).

(iii) Any wholesale purchaser which is assigned to or accepted by the supplier under the provisions of this part shall be accepted by the supplier for the duration of the program or until otherwise directed by the DOCA.

(e) New end-user and wholesale purchaser-consumer importer. End-users and wholesale purchaser-consumers which have not previously imported a petroleum product or which import a

petroleum product in excess of the volumes imported in the base period, must report pursuant to § 660.153(b) such imports to the DOCA within five (5) days of receipt of the petroleum product. Unless the DOCA orders a directed sale of the imported petroleum product pursuant to the provisions of § 660.9, the importer may retain the petroleum product for its own use.

§ 660.106 Adjustments to base period vol

umes.

(a) Scope. The adjustment procedures under this section are applicable to the allocation of all petroleum products. This section describes the means by which wholesale purchasers may receive adjustments to their base period volumes.

(b) Adjustments. (1) Suppliers shall adjust a wholesale purchaser's base period volume for gasoline or middle distillates without an application of the wholesale purchaser if the supplier's records indicate that the volume of the wholesale purchaser's purchases of that product in a 1973 period corresponding to a base period exceed the base period volume of that product. The increase to the base period volume shall be calculated as the difference between the volume purchased in the 1973 period corresponding to a base period, and the volume purchased in the base period.

(2) Any wholesale purchaser of any petroleum product may apply to the DOCA pursuant to Part 661 of this chapter for an adjustment to a base period volume for changed circumstances of growth pursuant to forms and instructions issued by the DOCA. Such adjustments shall be based upon applications which are fully supported by detailed facts, figures and other relevant documentation.

§ 660.107 Allocation of unleaded gasoline. (a) General. All the provisions of this part shall apply to all substances meeting the definition of motor gasoline, including leaded and unleaded gasoline, without regard to the different characteristics of those substances except as provided in this section.

(b) Definitions. For purposes of this section

a

"Allocation entitlement" for wholesale purchaser means its allocation entitlement as described in § 660.105.

"Allocation ratio" means that ratio of a supplier's total supply of unleaded gasoline to the supplier's total supply of motor gasoline (leaded and unleaded).

"Unleaded gasoline" means unleaded gasoline as defined by the Environmental Protection Agency.

(c) Supplier/purchaser relationships. In addition to the provisions of § 660.102, a supplier of unleaded gasoline shall further allocate unleaded gasoline in accordance with the provisions of this section to wholesale purchasers which are entitled to receive motor gasoline (whether leaded or unleaded) from that supplier without regard to whether the supplier has previously supplied unleaded gasoline to that purchaser.

(d) Method of allocation for unleaded gasoline. (1) For each allocation period each supplier shall make available to each of its wholesale purchasers of motor gasoline a volume of unleaded gasoline which bears the same ratio to that purchaser's allocation entitlement as the supplier's allocation ratio for that period. Suppliers may refuse to supply unleaded gasoline to any wholesale purchaser-reseller which does not have facilities suitable for the storage and delivery of unleaded gasoline, as required by the provisions of 40 CFR Chapter I, Part 80, Subpart B.

(2) No purchaser may be required to accept any quantity of unleaded gasoline in lieu of part or all of its allocation entitlement to motor gasoline for a period which corresponds to a base period.

(3) (i) After its initial offer of unleaded gasoline pursuant to paragraph (c)(1) of this section a supplier shall offer any of its supply of unleaded gasoline which remains only to purchasers which are entitled to receive motor gasoline from that supplier and which desire to purchase unleaded gasoline. New car dealers, fleet owners or operators, or any other wholesale purchaser-consumers which require unleaded gasoline as a greater proportion of their allocation entitlement than the supplier's allocation ratio

(4) The total volume of leaded and unleaded gasoline which a supplier allocates to a purchaser for an allocation period shall equal the total amount of motor gasoline which the supplier could otherwise allocate to that purchaser pursuant to this part without regard to the provisions of this section.

(5) Any purchaser which has been notified that its supplier will not supply it with unleaded gasoline and which with reasonable diligence cannot otherwise obtain a supply of unleaded gasoline under the provisions of this part, may apply to the DOCA pursuant to Part 661 for an assignment of a supplier of unleaded gasoline.

(6) DOCA may require recipients of assigned quantities of unleaded gasoline to provide leaded gasoline in exchange for the assigned product.

(e) Prime suppliers. Prime suppliers shall make available in their set-aside a ratio of unleaded gasoline to all motor gasoline equal to their allocation ratio.

(f) Relationship to EPA regulations. Nothing in this section shall be interpreted to supersede any regulation concerning unleaded gasoline issued by the Environmental Protection Agency, or any regulation issued by the DOCA concerning gasoline.

§ 660.110 Set-aside system.

(a) Purpose and scope. The DOCA shall establish and administer a setaside system for all petroleum products. The set-aside shall be utilized by the DOCA in making assignments and in meeting hardship and emergency requirements of all wholesale purchasers and end-users.

(b) Definitions. For purposes of this section-"Percentage set-aside level"

means:

(1) For gasoline, three (3%) percent; (2) For propane, three (3%) percent; (3) For butane, one (1%) percent; (4) For middle distillates, four (4%) percent; and

(5) For residual fuel oil, three (3%) percent.

(c) Prime suppliers-(1) Calculation of set-aside volume. The set-aside volume of a prime supplier of a particular petroleum product shall be calculated by multiplying the prime supplier's estimated allocable supply for the forthcoming allocation period in its capacity as a prime supplier by the percentage set-aside level for that product.

(2) Reports of set-aside volumes. Fifteen (15) days prior to the beginning of each allocation period each prime supplier shall calculate its set-aside volume for each petroleum product for the forthcoming allocation period and shall report pursuant to § 660.152 the volume and calculations according to forms and instructions issued by the DOCA.

(3) Sales of set-aside volumes. A prime supplier must sell a petroleum product from the set-aside volume for a particular month within three (3) working days of presentation by a wholesale purchaser or end-user, of an order of the DOCA issued pursuant to Part 661. No other sale may be made from the set-aside volume. The petroleum product remaining in a prime supplier's set-aside volume at the end of a particular allocation period shall become part of that supplier's total supply for the subsequent allocation period and shall be distributed according to the procedures set forth in this part.

(d) DOCA orders. If the DOCA approves a hardship or emergency petition submitted by a wholesale purchaser or end-user pursuant to the provisions of Part 661 of this chapter, it shall issue to the petitioner a written order to purchase a specified volume from the set-aside volume of a specified prime supplier.

(e) Changes in percentage set-aside levels. The Administrator may alter the percentage set-aside level for a

particular petroleum product for a particular allocation period through the issuance of an order fifteen (15) days prior to the beginning of that allocation period.

§ 660.114 Energy conservation.

Unless otherwise ordered for good cause shown, no wholesale purchaser or end-user shall receive an allocation pursuant to the procedures of Part 661 of this chapter unless he shall have certified that he has in effect an energy conservation program consistent with the conservation program of the Commonwealth.

Subpart D-Reporting and Recordkeeping

§ 660.151 Initial reports.

(a) By November 15, 1974, each supplier shall report to the DOCA consistent with forms and instructions issued by the DOCA the following information concerning each petroleum product:

(1) Name and address of supplier;

(2) Total sales volume (including internal transfers and volume of its own end-use) for each completed period of 1972, 1973 and 1974 corresponding to a base period; and

(3) The percentage of total sales volume and actual sales volume exported or sold for export for each completed period of 1972, 1973 and 1974 corresponding to a base period.

(b) Notwithstanding the provisions of paragraph (a) of this section, information filed in accordance with Regulation No. 41 of the DOCA need not be repeated.

§ 660.152 Periodic reports.

(a) Except as provided in paragraph (b) of this section, each supplier must file a report for each petroleum product for each allocation period beginning with the allocation period including November 1974 which sets forth the (1) estimated allocable supply, (2) estimated set-aside volume, and (3) the estimated volume of surplus product subject to § 660.103 (e)(2) or (f)(2). The report, consistent with forms and instructions issued by the DOCA, must be filed with the DOCA fifteen (15)

days prior to the beginning of each allocation period; except however, the report for the allocation period including November must be filed by November 1, 1974.

(b) The reporting requirement of paragraph (a) of this section does not apply to:

(1) A supplier to the extent he is subject to § 660.103(g), Provided, however, That the supplier makes reports pursuant to § 660.153.

(2) Sales by a supplier which sells exclusively to end-users.

§ 660.153 Other reports.

(a) Suppliers without base period supplier/purchaser relationships. Each supplier subject to § 660.103(g) must file a report for each petroleum product for each allocation period beginning with the allocation period including November 1974. The report, consistent with forms and instructions issued by the DOCA must be filed with the DOCA fifteen (15) days prior to the beginning of each allocation period; except however, the report for the allocation period including November 1974, must be filed by November 1, 1974. The report for each petroleum product shall contain the following information concerning the next allocation period:

(1) Name and address of the supplier submitting the report;

(2) Total estimated inventory; (3) Estimated volume of exports; and (4) Estimated volume which it will consume in its capacity as an end-user or wholesale purchaser-consumer. Pursuant to the provisions of § 660.9 the DOCA may order a directed sale of such petroleum product.

(b) End-user and wholesale purchaser-consumer importers. Each end-user and wholesale purchaser-consumer which imports a petroleum product in excess of the volume imported during the base period, and each end-user and wholesale purchaser consumer which did not import a petroleum product prior to January 1, 1974, must report to the DOCA within five (5) days of receipt of that imported petroleum product on forms and instructions issued by the DOCA. These reports

shall contain the following information:

(1) Name and address of supplier submitting the report;

(2) The volume received, point of origin, and seller of the imported petroleum product;

(3) The intended use of the import; (4) The base period volume, current requirements, and the amount purchased or expected to be purchased from suppliers subject to this part in the most recently completed, the current, and the next allocation period; and

(5) The volume of imported petroleum product anticipated to be received in the next allocation period. Pursuant to the provisions of § 660.9 the DOCA may order the directed sale of such a petroleum product.

(c) Duplication of information. Notwithstanding the provisions of paragraphs (a) and (b) of this section, information filed in accordance with Regulation No. 41 of the DOCA need not be repeated.

(d) Surplus product reports. Each supplier of surplus product subject to the provisions of § 660.103 (e)(2) or (f)(2) which is not reported pursuant to § 660.152(a), shall be reported to the DOCA within five (5) days of the supplier's determination of such surplus product.

(e) Additional reports. Whenever the DOCA considers it necessary for the effective administration of the program it may order any firm to file special or separate reports, setting forth information relating to the DOCA regulations in addition to any other report required by this part.

§ 660.154 Recordkeeping requirements.

(a) General. Each firm subject to this part shall keep such records that serve as source for the information submitted under this part.

(b) Inspection. Records required to be kept under paragraph (a) of this section, shall be made available for inspection at any time upon the request of a representative of the DOCA.

(c) Justification. Upon the request of a representative of the DOCA any supplier which has filed a notice of a proposed method of allocation

or

makes a sale subject to the allocation regulations of this part shall:

(1) Specify the records that it is maintaining to comply with this paragraph; and

(2) Justify that action pursuant to the allocation provisions of this part.

(d) Period for keeping records. Each firm required to keep records under this paragraph shall maintain and preserve those records for at least four (4) years after the last day of the calendar year in which the transaction or other events recorded in the record occurred or the property was acquired by that firm whichever is later.

(b) Waiver of prenotification. The prenotification requirements of paragraph (a) of this section do not apply to:

(1) A supplier to the extent he is subject to § 660.103(g), Provided, however, That the supplier makes periodic reports pursuant to § 660.153.

(c) Notification to wholesale purchaser-resellers. Eighteen (18) days prior to the beginning of each allocation period each supplier shall notify each of its wholesale purchaser-resellers in writing of its allocation enti