f. What are the anticipated reactions of the recipients of programs using only cooperative agreements?

g. What are the anticipated liability, accountability, and other implications for the programs using only cooperative agreements?

h. What are the agency guidelines on the selection of instruments for programs that may use either grants or cooperative agreements?

i. What is the anticipated dollar volume of grants and cooperative agreements to be awarded under these programs?

j. How will the opportunity to use either grants or cooperative agreements improve administration of these programs?

k. What negative effects are anticipated from the requirement to make a choice of instruments?

1. What programs will use assistance instruments that formerly used contracts and what is the dollar volume of these new uses of assistance instruments?

4. Nonmonetary assistance transfers:

a. What were the types and dollar value of nonmonetary transfers made by the agency using grant instruments?

b. How do these grant instruments compare with monetary grant instruments?

c. What were the types and dollar value of nonmonetary transfer made under the OMB exception that did not use grant instruments?

d. How would the agency have treated these transfers had not OMB granted the exception?

e. What were the types and dollar value of nonmonetary transfers made through cooperative agreements?

f. What was the agency's experience with this use of cooperative agreements?

5. Overall evaluation of the Act:

a. What elements of the Act are contributing to improved program performance and administration?

b. What elements of the Act are particularly troublesome? Why?

c. What proposals would the agency make for revising the Act?

SOURCE: 39 FR 39024, Nov. 5, 1974, unless otherwise noted.

Subpart A-General Provisions

§ 660.1 Purpose.

The purpose of this part is to set forth the regulations applicable to the mandatory allocation of motor gasoline, middle distillates, propane and butane in the Commonwealth. To the extent of any conflict, the provisions of this part supersede the provisions of the Mandatory Petroleum Allocation Regulations of the Department of Energy.

§ 660.2 Applicability.

(a) Effective 11:59 p.m., October 31, 1974, the provisions of this part apply to each petroleum product produced in or imported into the Commonwealth up to the volume of that product sold for use within the Commonwealth during the corresponding calendar quarter of 1973.

(b) Effective 11:59 p.m., October 31, 1974, the provisions of this part apply to each firm which refines, imports, exports, purchases or sells petroleum products in the Commonwealth.

§ 660.3

Exclusions.

(a) Any volume of a petroleum product in the Commonwealth in a particular calendar quarter in excess of the volume of that petroleum product sold for use within the Commonwealth in the corresponding calendar quarter of 1973, is excluded from the provisions of this part and remains subject to the Mandatory Petroleum Allocation Regulations of the DOE.

(b) Exports of petroleum products subject to Subchapter B of Chapter III of Title 15 of the Code of Federal Regulations are excluded from this part.

§ 660.4 Exceptions and exemptions.

When necessary to accomplish the purposes of the Act, the DOCA may

permit an exception or an exemption from the regulations of this part. Requests for exception and exemption shall be submitted in accordance with the provisions of Part 661 of this subchapter.

§ 660.5 Ratification of prior directives, orders and actions.

Unless modified by any provisions of this part any directive, order or action in effect pursuant to the Act shall remain in effect:

(a) Until its expiration by its own terms; or

(b) Until its revocation or amendment by any directive or order or superseding regulation issued under the provisions of this part.

§ 660.6 Retaliatory actions.

No firm (including an individual) may take retaliatory action against any other firm (including an individual) that files or manifests an intent to file a complaint of alleged violation of, or that otherwise exercises any rights conferred by the Act, any provision of this part, or any order issued under this part. For the purposes of this paragraph, “retaliatory action" means any action contrary to the purpose or intent of the Act or the DOCA to allocate petroleum products and may include a refusal to continue to sell, any reduction in quality, any reduction in quantity of services or products customarily available for sale or lease, any slowdown in customary delivery time or schedule, any violation of privacy, any form of harassment, or any inducement of others to retaliate.

§ 660.7 Normal business practices.

(a) Suppliers will deal with purchasers of a petroleum product according to normal business practices in effect during the base period specified in this part for that petroleum product, and no supplier may modify any normal business practice so as to result in the circumvention of any provision of this part. "Summer fill" programs and other "dating" or seasonal credit programs are among the normal business practices which must be maintained by a supplier under this paragraph, if that supplier had such programs in effect during the base period. Credit

with seasonal credit programs are included as a part of the May 15, 1973 price charged to a class of purchasers under Part 212 of this chapter. Nothing in this paragraph shall be construed to require suppliers to sell to purchasers who do not arrange proper credit or payments for petroleum products, as customarily associated with that class of purchaser during the base period (for seasonal credit), or on May 15, 1973 (for other credit terms). However, no supplier may require or impose more stringent credit terms or payment schedules on purchasers than those in effect for that class of purchaser during the base period (for seasonal credit), or on May 15, 1973 (for other credit terms).

(b) No supplier shall engage in any form of discrimination among purchasers of any petroleum product. For purposes of this paragraph, "discrimination" means extending any preference or sales treatment which has the effect of frustrating or impairing the objectives, purposes and intent of this part or the Act, and includes, but is not limited to, refusal by a retail marketer of motor gasoline or diesel fuel to furnish or sell any petroleum product due to the absence of a prior selling relationship with the purchaser, or establishment of new volume purchase arrangements where customers of retailers agree in advance to purchase in excess of normal amounts of motor gasoline or diesel fuel and thereby receive preferential treatment.

(c) Any practice which constitutes a means to impose terms or conditions not customarily imposed upon the sale of a petroleum product is in violation of these regulations.

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were directly supplied by the original supplier using that supplier's allocation fraction.

(b) In order to alleviate imbalance, suppliers and refiners may make normal business exchanges among themselves.

(c) To accommodate seasonal and other fluctuations in both supply and demand such as requirements for agricultural production, suppliers and wholesale purchasers may agree between and among themselves either to borrow on future allocations or to defer current allocations or both within the total allocations for one calendar year as long as such arrangements do not result in an involuntary reduction in allocations to other wholesale purchasers.

§ 660.9 Administrative actions.

(a) Authority of the DOCA. (1) If necessary, the DOCA may take any of the actions described in this part.

(2) Criteria. In taking any action described in this part the DOCA shall consider the criteria stated in section 4(b) of the Act, the purpose and goals of the mandatory allocation program and the need to alleviate or prevent serious hardship or gross inequity.

(b) Directed sales. (1) Notwithstanding any other provisions of this part, the DOCA may order any supplier, including a refiner, importer, exporter, or any other seller of petroleum products to sell a particular petroleum product to a specified purchaser or class of purchasers if it is determined that such a sale or sales are necessary in order to further the purpose and goals of the Act and these regulations.

(2) With respect to suppliers described in § 660.103(g), the DOCA will notify the supplier of the volume of its petroleum products subject to directed sales five (5) days prior to the allocation period for which the sale or sales are directed.

(c) Inventories of petroleum products. No supplier, importer, wholesale purchaser or end-user shall accumulate inventories of any petroleum product which exceed customary inventories maintained by that supplier, importer, wholesale purchaser or enduser in the conduct of his normal business practices unless otherwise direct

ed by the DOCA. Normal inventory practices shall be observed in determining allocable supplies of petroleum products for each period corresponding to a base period. The DOCA may review inventory practices and may direct an increase or decrease in inventories if:

(1) The inventory practices employed are inconsistent with the provisions of this part;

(2) The inventory practices circumvent or otherwise violate other provisions of this part; or

(3) The DOCA determines that an adjustment is necessary in order to allocate petroleum products in a manner consistent with the objectives of the allocation program.

(d) Adjustment to calculations. Upon a finding that incorrect or otherwise inaccurate data have been used in calculating the allocation of any petroleum product subject to this part, the DOCA may take appropriate action to adjust any such figures or data and any allocations based thereon to account for the error.

(e) Adjustments to allocable supply. Notwithstanding any other provision of this part, the DOCA may order any supplier, including a refiner, importer, exporter or any other seller of petroleum products to increase its allocable supply in excess of the amount computed under § 660.103(b)(1) if necessary in order to assure that the total volume of petroleum products subject to this part in a particular calendar quarter are equal to the volume sold for use in the Commonwealth in the corresponding calendar quarter of

1973.

(f) Redirection of product. To meet imbalances that may occur in the supplies of any petroleum product, the DOCA may order the transfer of specified amounts of any such product from one area to another or may order that different allocation fractions be used in different areas. Furthermore, the DOCA may transfer supplies of petroleum products among suppliers in order to remedy supply imbalances.

(g) Reassignment of wholesale purchasers. Any supplier which for reason beyond its control is unable to supply petroleum product in its specific customary ways or which has significant

ly reduced marketing or distribution activities in any area and which is obligated to supply its base period purchasers in that area under the terms of this program may apply to the DOCA to seek a change in the method of supplying such purchasers. The DOCA may order the reassignment of wholesale purchasers from one supplier to another.

Subpart B-Definitions

§ 660.51 General definitions.

“Act” means the Emergency Petroleum Allocation Act of 1973, the Federal Energy Administration Act of 1974, and the Economic Stabilization Act of 1970, as amended, as appropriate.

"Adjusted base period volume" means base period volume as adjusted pursuant to § 660.106.

“Administrator" means the Secretary of the Department of Consumer Affairs or his delegate.

"Allocable supply" means allocable supply as defined in § 660.103(b)(1).

"Allocation fraction" means allocation fraction as defined in § 660.103(b). "Allocation period" means a period corresponding to a base period. "ASTM" means American Society for Testing Materials.

"Assignment" means an action designating that an authorized purchaser be supplied a specified or unspecified volume of a specified petroleum product by a specified supplier.

"Base period" means:

(a) For motor gasoline and middle distillates, the month of 1972 corresponding to the current month; and

(b) For propane and butane, the month of 1973 corresponding to the current month.

"Base period use" means base period volume or adjusted base period volume.

"Branded independent marketer" means a firm which is engaged in the marketing or distributing of refined petroleum products pursuant to:

(a) An agreement or contract with a refiner (or a firm which controls, is controlled by, or is under common control with such refiner) to use a trademark, trade name, service mark, or other identifying symbol or name

owned by such refiner (or any such firm); or

(b) An agreement or contract under which any such firm engaged in the marketing or distributing of refined petroleum products is granted authority to occupy premises owned, leased, or in any way controlled by a refiner (or firm which controls, is controlled by, or is under common control with such refiner), but which is not affiliated with, controlled by, or under common control with any refiner (other than by means of a supply contract, or an agreement or contract described in paragraph (a) or (b) of this definition), and which does not control such refiner.

"Butane" means the chemical C,H10 in its commercial forms, including both normal butane and isobutane, their mixtures and mixtures of butane and propane containing ten (10) percent by weight or less of propane. Included within the definition of butane is the butane content of other mixtures in which either or both butane isomer constitute greater than ten (10) percent by weight.

"Commonwealth" means the Commonwealth of Puerto Rico.

"DOCA" means the Department of Consumer Affairs of the Commonwealth.

"End-user" means any firm which is an ultimate consumer of a petroleum product in the Commonwealth other than a wholesale purchaser-consumer.

"Ethane" means a hydrocarbon whose chemical composition is C2H6.

"Exporter" means any firm which owns at the last place of storage in the Commonwealth any petroleum product leaving the Commonwealth, provided, however, that a commercial fisherman whose primary harbor is in the Commonwealth, and a commercial freighter engaged in the business of transporting cargo between points in the Commonwealth or to or from the Commonwealth is not an exporter of a petroleum product it purchases for use as fuel in that freighter.

"DOE" means the Department of Energy or its delegate or its predeces

sor.

"Firm" means any association, company, corporation, estate, individual, joint-venture, partnership, or sole pro