PART 211-MANDATORY PETROLEUM ALLOCATION REGULATIONS Aviation Fuels Allocation Methods These amendments are designed to provide interim guidelines for supplers of aviation fuels concerning the method of allocating aviation fuels. The January 15, 1974, Federal Energy Office regulations in Subpart H, § 211.145, specified that FEO would publish certain allocated amounts of these fuels. The data upon which these amounts would be determined, however, is not presently complete. It is necessary, therefore, to change the method of allocating aviation fuels temporarily.

The change requires that suppliers of wholesale purchasers shall allocate aviation fuels as specified in § 211.11(b). Suppliers of wholesale purchasers which are also end-users shall, in addition to complying with § 211.11(b), allocate aviation fuels to meet the requirements of these purchasers in accordance with the allocation levels set forth in § 211.143. Wholesale purchasers who sell to endusers will still be required to meet the needs of their end-users in accordance with the provisions of § 211.11(c).

Because of the present situation concerning the balance of the various uses of fuels among listed levels of allocation, FEO has determined that no significant difference in amounts of fuel allocated would result between the use of the method of allocation formerly

RULES AND REGULATIONS

provided and the use of the provisions of ƒ 211.11(b). Additionally, the application of the provisions of 211.11 (b) will permit greater flexibility for supphers to assure minimum allocation amounts at all distribution points. It is anticipated that the prior rule concernIng the publication of specific amounts of aviation fuels allocable to certain users will be re-established at a future date.

Because the purpose of these amendments is to provide immediate guidance and information with respect to the mandatory petroleum allocation rules and regulations, the Federal Energy Office finds that normal rulemaking procedure is impracticable and that good cause exists for making these amendments effective in less than 30 days. (Emergency Petroleum Allocation Act of 1973, Pub. L. 93-159, EO. 11748, 38 FR 38575; Economic Stabilization Act of 1970, as amended, Pub. L. 92-210, 85 Stat. 743; Pub. L. 93-28, 87 Stat. 27; E.O. 11780, 38 FR 19345; Cost of Living Council Order 47, 39 FR 24)

In consideration of the foregoing, Part 211 of Chapter II, Title 10 of the Code of Federal Regulations is amended as set forth below, effective 11:59 p.m., January 14, 1974.

Issued in Washington, D.C., January 28, 1974. JOHN C. SAWHILL, Deputy Administrator, Federal Energy Office. Section 211.145 is amended to read as follows:

§ 211.145 Method of allocation.

(a) Suppliers of wholesale purchasers shall allocate aviation fuels in accordance with the provisions of § 211.11 (b). Suppliers of wholesale purchasers which locate aviation fuels to meet the requireare also end-users shall, in addition, alments of these end-users in accordance with the allocation levels set forth in § 211.143.

(b) Aviation fuel for international flights shall be allocated on a non-discriminatory basis among international carriers, subject to modification by the FEO following consultation with appropriate Federal agencies on a case-by-case basis if required to encourage reciprocal non-discriminatory allocation of aviation fuel for U.S. carriers engaged in international flights.

(c) International Air Carriers which have traditionally used bonded aviation fuel for international flights shall be allocated non-bonded, naphtha-base jet fuel on a case-by-case basis to reduce their shortages of bonded fuel. Upon certification by the international carrier that its supplier is unable to provide sufficient bonded fuel at a desired location, the FEO may authorize that supplier to provide non-bonded naphtha base jet fuel to that carrier. Non-bonded fuel so authorized by the FEO shall be in amounts which, when added to the bonded fuel available to that carrier, shall not exceed the allocation levels of U.S. Civil Air Carriers.

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(d) Civil Air Patrol assigned to mercy missions shall be provided aviation fuel from the Department of Defense allocation.

(e) Notwithstanding the provisions of 211.143 (e), the use of aviation fuel for non-aviation purposes by a utility may not exceed those volumes of aviation fuel contracted for or purchased during the base period. Aviation fuel shall not be used for peaking as long as the utility continues service during such peaking to interruptible non-priority industrial users (except where no suitable substitute fuel is available to the user) or to any customer who can use a fuel other than aviation fuel.

[FR Doc.74-2602 Filed 1-29-74;8:45 am]

PART 211-MANDATORY PETROLEUM ALLOCATION REGULATIONS Residual Fuel Oil Conferming Amendments

These amendments to Subpart I, Residual Fuel Oil, are designed to establish the guidelines for suppliers to supply residual fuel oil to utilities. The amendments describe the procedure by which the announced quantity of residual fuel oil allocated to a utility must be supplied by a supplier.

Under § 211.165, describing the method of allocation, the amounts of residual fuel oil allocated to a utility will be published by FEO. Each utility will determine the portion of that amount which its suppliers must provide, based upon the percentage supplied to the utility between October 1, 1973, and December 31, 1973. Each utility must notify both the supplier and the FEO of the supplier's percentage amount, which will be applied in each month to the utility's total allocated supply to determine the supplier's obligation. The percentage calculated under § 211.165 (d) (1) (ii) will be constant during the program unless adjusted by FEO order.

In February and in subsequent months, the FEO will publish both the utility allocation amounts and the supplier percentage to apply to deliveries of residual fuel oil for the next month.

Suppliers of the period between October 1, 1973, and December 31, 1973, are the suppliers designated under the program to continue deliveries. This time frame assures the application of the most recent supply relationships with a utility. Amounts of residual fuel allocated to the utility must be delivered before any allocations are made to non-utility users. Non-utility users must be supplied with residual fuel before any residual fuel in excess of the amount allocated to a utility may be delivered to the utility. Suppliers may not pro-rate the allotation amount to a utility, but may apply the pro-rating provisions of § 211.11 to other deliveries.

The amendment establishes a time period within which a supplier must advise the utility if it cannot supply the required amount. Such a supplier may request an extension of the time for delivery, but if the request is not accepted, the supplier

3910

and the utility may request assistance from FEO.

A technical change is also made to $211.166 to require the reporting of certain information to FEO in addition to reports required presently by Federal Power Commission.

Because the purpose of these amendments is to provide immediate guidance and information with respect to the mandatory petroleum allocation rules and regulations, the Federal Energy Office finds that normal rulemaking procedure is impracticable and that good cause exists for making these amendments effective in less than 30 days. (Emergency Petroleum Allocation Act of 1978, Pub. L. 98-159, E.O. 11748, 38 FR 33575; Economic Stabilization Act of 1970, as amended, Pub. L. 92-210, 85 Stat. 743; Pub. L. 93-28, 87 Stat. 27; E.O. 11730, 38 FR 19345; Cost of Living Council Order 47, 39 FR 24)

In consideration of the foregoing, Part 211 of Chapter II, Title 10 of the Code of Federal Regulations is amended as set forth below, effective 11:59 p.m., January 14, 1974.

RULES AND REGULATIONS

(d) Utilities. (1) For purposes of calculating the allocation of residual fuel oil to utilities for delivery during the month of February 1974

(1) The FEO will determine the amount of residual fuel oil allocated to each utility for delivery during the month of February and publish that determination. The volume of residual fuel oil allocated to each utility shall be based upon the total supply available for utilities, the considerations specified in 211.163 (b) and other relevant considerations.

(11) Based upon total deliveries from suppliers during the base period, each utility shall calculate the percentage of the utility's total deliveries during the base period which were supplied by each supplier. Within 7 days following the date of notification of allocation amounts pursuant to paragraph (d) (1) (1) of this section, each utility shall notify each of its suppliers and the FEO of the amount required to be supplied by each supplier for delivery in February 1974 and of the percentage of the amount allocated to each utility which each

JOHN C. SAWHILL, Deputy Administrator, Federal Energy Office.

1. Section 211.162 is revised to read as follows:

(b) General. Based on the estimated total supply of residual fuel oil, on allocation levels set forth in § 211.163, on the State set-aside percentage, and other relevant considerations, the FEO shall determine each month the portion of total supply for non-uitility use and the portion of total supply for utility use for delivery the following month in accordance with the provisions of paragraphs (c) and (d) of this section.

(c) Non-utility. The portion of each supplier's allocable supply not directed by the FEO to be distributed for utility use shall be alocated pursuant to § 211.11. With respect to space heating uses, suppliers must comply, to the fullest extent practicable, with the provisions of paragraph (e) of this section. Notwithstanding the provisions of § 211.164 or § 211.11, suppliers may not supply a utility in excess of the amounts established pursuant to paragraph (d) of this section until the non-utility allocations levels listed in $211.163 have been filled, unless otherwise directed by the FEO.

quired to be supplied by a supplier shall be calculated by multiplying the utility's -specified monthly allocation amount by the percentage of the utility's total deliveries during the base period which were supplied by the supplier.

(iii) Following notification by the utilities of the amounts and percentages required to be supplied by each supplier for delivery in February 1974, FEO will publish these percentages.

allocation of residual fuel oil to utilities (2) For purposes of calculating the for delivery in every month after February, 1974

(1) Each month, the FEO will determine the amount of residual fuel oil allocated to each utility for delivery in the following month. The volume of residual fuel oil allocated to each utility in a particular month shall be based upon the total supply available for utilities, the considerations specified in § 211.163 (b) and other relevant considerations.

(11) Following the determination in paragraph (d) (2) (1) of this section, the FEO will publish the amounts of residual fuel oil allocated to each utility for delivery in the following month and the percentages of those amounts required to be supplied by each supplier for delivery in the following month. The amounts required to be supplied by each supplier will be calculated by multiplying each utility's specified monthly allocation amount by the percentage of the utility's total deliveries during the base period which were supplied by the supplier as computed from the information notified to FEO by the utility pursuant to the provisions of paragraph (d) (1) (11) of this section. →

(3) Within 48 hours of the notification by the utility to the supplier required in paragraph (d) (1) (11) and, within 7 days of the date of publication by the FEO

of the information set forth in paragraph (d) (2) (1), each supplier of a utility shall notify that utility of its anticipated ability to supply, during the following month, the entire amount of residual fuel required to be supplied by that supplier. If a supplier of a utility is unable to supply its specified amount, the supplier may request an extension to the delivery period in the following month of up to 12 days. Following receipt of a request for extension, the utility must notify the supplier within 48 hours of its determination of the acceptability of the requested extension and of the amount to be delivered during the extension period. If the utility refuses to accept the extension, the supplier and utility shall notify the FEO of the reasons for the request for extension by the supplier and the refusal to accept the extension by the utility. The FEO shall then determine the amounts to be delivered and the date or dates for delivery.

(4) Suppliers and utilities may petition the FEO for adjustment to the requirements of § 211.164(a) and paragraph (d) (1) (1) of this section, or assignment of a new supplier, in accordance with the procedures provided in Subpart B of Part 205 of this Chapter. Such petitions must be filled by the 10th day of the current month in order to be considered for decision or interim relief with respect to adjustment to the allocation amounts to be published in the following month or assignment of new supplier for the following month.

(5) Utilities may, and are encouraged to, by mutual agreement and after notice cated residual fuel oil volumes, other fuel to FEO, apportion their respective allovolumes, or generated power among themselves.

3. In 211.166 paragraph (d) is revised to read as follows:

§ 211.166 Procedures and reporting requirements.

wholesale purchasers were also supplied by Firm C during the base period, but that the remaining 25% were not. Firm C, therefore, replaces the 25% of its current purchasers which were not supplied during the base period with those former purchasers to which Firm C did sell fuels during the base period.

Because these former purchasers are not now buying fuel from Firm C, there is no current price being charged to them. Section 212.82(a) provides that a refiner may not charge to any class of purchaser a price in excess of the base price of that covered product except to the extent that it is prenotified and costjustified in accordance with the provisions of § 212.82(c)–(k). Firm C must therefore establish lawful base prices for these former wholesale purchasers which are now once again purchasing from Firm C.

Issue. How does Firm C calculate the base prices it may charge the former wholesale purchasers for sales under § 211.124?

Ruling. Pursuant to the provisions of 10 CFR 212.82(f), Firm C has already established base prices for sales of its middle distillate fuels to particular classes of purchasers. This base price is the weighted average price at which the item was lawfully priced in transactions with the class of purchaser concerned on May 15, 1973 plus increased product costs calculated pursuant to 10 CFR 212.83(b) and the refiner incentive factor calculated pursuant to 10 CFR 212.84.

The former base period purchasers which Firm C must now resume supplying must be assigned the same base price as that assigned to other purchasers in the most similarly situated existing class of purchaser (as defined in 10 CFR 212.31). Thus, if one class of purchaser exists for purchasers who buy in bulk and one of the former purchasers buys in bulk, the base price for that former purchaser should be the same as the base price of the class of bulk purchasers.

Firm C is not permitted to use the requirements of the allocation program as a rationale for rearranging its existing pattern of classes of purchasers or creating new classes of purchasers. The pattern of classes of purchasers created for the former purchasers should, în general, correspond to the previously existing pattern of classes of purchasers. For example, if the 25 percent of the current

RULES AND REGULATIONS

purchasers being replaced were patterned in classes of purchasers of which 20 percent had a low base price for contract purchases and 5 percent had a high base price for spot purchases, Firm C may not treat all of the former purchasers as falling into the class of purchaser for the spot purchases. Such a rearrangement of classes of purchasers would constitute an unlawful price increase. Instead, Firm C must fit the former purchasers into its existing classes of purchasers so that the 20 percent to 5 percent ratio is generally maintained. This same rule also applies to resellers who establish their selling prices pursuant to 10 CFR 212.93.

WILLIAM N. WALKER,

General Counsel,
Federal Energy Office.

JANUARY 25, 1974.
[FR Doc.74-2361 Filed 1-29-74;8:45 am}

APPENDIX RULINGS [Ruling 1974-2) Redirected Sales Pricing

Facts. Firm A, a refiner, supplies residual fuel oll to Utility B located in the Mid-Atlantic area. Under the authority of the exception clause of § 211.164(a), the Federal Energy Office has ordered that certain of Firm A's volume of residual fuel of under contract for delivery to Utility B now be redirected and delivered to Utility C, which is also a contract customer of Firm A for the same grade of residual fuel all; and that another volume of residual fuel ofl under contract for delivery to Utility B be redirected and delivered to Utility D, which is not a customer of Firm A and is located in a different geographical region than Utility B. Firm A treats Utility B and Utility C as separate classes of purchasers with the respective contract prices being the base prices for these two classes of purchasers.

Issue. What price may Firm A charge to Utilities C and D for the redirected volumes of residual fuel oil and what obligations, if any, exist to Indemnify Utilty B for the redirected fuel?

Rating. In accordance with 10 CFR #1282(a), Firm & may not charge Utalties C and D a price in excess of the base price, except to the extent that nonproduct costs increases are prenotifed and cost justined under the procedures

3911

in 10 CFR 212.82(c)–(k). Because Utility C is already a purchaser from Firm A of the same product as is sold to Utility B, a base price for Utility C for that product has already been established by Firm A. Assuming that no non-product cost increases have been prenotified, Firm A may charge Utility C for the redirected volume of residual fuel oil a price not in excess of the same lawful base price as it charges Utility C under the existing contract between Firm A and Utility C.

In the case of Utility D, because it is not a customer of Firm A, no base price for Utility D has yet been established. However, Utility D is clearly stepping into the same position as Utility B and, therefore, must be considered to belong to the same class of purchaser. The base price set by Firm A for Utility D will be the same as the contractual price presently charged to Utility B, which is the base price of Utility B, except to the extent that there is a difference in transportation costs to Utility D as compared with Utility B.

As defined in 10 CFR 212.82(1), the base price is the weighted average price at which the item was lawfully priced in transactions with the class of purchaser concerned on May 15, 1973 plus increased product costs incurred between the month of measurement and the month of May 1973. Because "Increased product costs" as defined in 10 CFR 212.83(b) include transportation costs, any increase or decrease in the transportation costs of Firm A caused by delivery to a different geographical area would result in a higher or lower base price to Utility D than the contractual price between Firm A and Utility B.

No obligations arise due to the redirection of fuel from Utility B which would require Utilities C and D to compensate Utility B in any marmer for the quantity of fuel being directed. Of course, should Utility B in the future develop a shortage in its supply, FEO could order diversion of supplies to Utility B from Utilities C and D or any other utilities that might have a comparative surpkas supply.

This same rule also applies to prices charged under the same circumstances by a reseller pursuant to 10 CR 212.93. WILLIAM N. WALKER

General Counsel
Federal Energy Ofice.

JANUARY 25, 1974.

FB Doc.74-2362 Filed 1-29-74;8:45 am]

Committee are $20,000 and involve approximately one-half man-years of staff support.

7. Meetings. The Committee will meetapproximately four times a year.

8. Termination date. The Committee will terminate two years from date of this Charter, unless prior to that date renewal action is taken by the Administrator, FEO, as described in paragraph 2 above.

9. Determination. Establishment of this Committee is determined to be in the public interest in connection with the performance of duties imposed on the Federal Energy Office by Executive Order No. 11748, dated December 4, 1973, which delegated to the Administrator, FEO, authority vested in the President by the Emergency Petroleum Allocation Act of 1973 (Pub. L. 93-159); section 203 (a)(3) of the Economic Stabilization Act of 1970 (Pub. L. 91-379) as amended; and specified authorities under the Defense Production Act of 1950 (50 U.S.C. App. 2061 et seq.), as amended.

Dated: January 22, 1974.

STATE LEGISLATURE ADVISORY COMMITTEE

CHARTER

1. Objectives and scope of activities. The objectives of the State Legislature Advisory Committee are to advise the Administrator, Federal Energy Office (FEO) with respect to general state legislative aspects of interests and problems related to the policy and implementation of programs to meet the current national energy crisis.

2. Committee tenure. In view of the

goals and purposes of the Committee, it will be expected to continue beyond the forseeable future. However, its continuation will be subject to biennial review and renewed as required by section 14 of Pub. L. 92-463.

3. Official to whom committee reports. The Committee will report to the Administrator, Federal Energy Office. 4. Support services. Necessary support for the Committee will be furnished by the Federal Energy Office.

5. Committee duties. The duties of the Committee are solely advisory and are stated in paragraph 1 above.

6. Estimated annual cost. The estimated annual operating costs for the Committee are $20,000 and involve approximately, one-half man-years of staff support.

7. Meetings. The Committee will meet approximately four times a year.

8. Termination date. The Committee will terminate two years from date of this Charter, unless prior to that date renewal action is taken by the Administrator, FEO, as described in paragraph 2 above.

9. Determination. Establishment of this Committee is determined to be in

NOTICES

the public interest in connection with the performance of duties imposed on the Federal Energy Office by Executive Order No. 11748, dated December 4, 1973, which delegated to the Administrator, FEO, authority vested in the President by the Emergency Petroleum Allocation Act of 1973 (Pub. L. 93-159); section 203 (a) (3) of the Economic Stabilization Act of 1970 (Pub. L. 91-379) as amended; and specified authorities under the Defense Production Act of 1950 (50 U.S.C. App. 2061 et seq.), as amended.

Dated: January 22, 1974.

WILLIAM E. SIMON,
Administrator.

[FR Doc.74-2360 Filed 1-29-74;8:45 am]

NATIONAL SUPPLY/CAPACITY RATIO AND REFINERS BUY-SELL LIST Correction of Crude Oil Allocation Notice On January 18, 1974, the Federal Energy Office issued a crude oil allocation notice setting forth the first national refiner supply/capacity ratio and the list of refiner-sellers and refiner-buyers in accordance with the provisions of 10 CFR 211.63 and 10 CFR 211.66 (f) (39 FR 2522, January 22, 1974). Subsequent to the issuance of that notice, errors were discovered in the computation. of both the national supply/capacity ratio and the were of sufficient buy-sell list which magnitude to warrant a complete re

calculation and reissuance of a corrected supply/capacity ratio and buysell list. This notice hereby publishes as an Appendix, the corrected figures which supersede the supply/capacity ratio and buy-sell list issued on January 18, 1974.

The errors in the January 18 notice primarily resulted from incorrect data supplied by the refiners due to misunderstandings and incorrect interpretations of the regulations. To help remedy these initial problems of implementing the crude oil allocation program, the FEO is on this same date amending Subpart

C of Part 211, Title 10, Code of Federal Regulations to further clarify the operation of the program. The FEO will also work closely with the refiners to assure their understanding of the reporting requirements of Subpart C.

Due to the republication of the buysell list, the FEO is also extending the date by which transactions made to comply with the crude oil allocation program must be reported to the FEO. Although § 211.66 (g) requires that each transaction must be reported within fifteen days of the publication of the buy-sell list, this date is being extended an additional ten days for this initial crude oil sales period so that a refiner will be allowed to complete whatever additional transactions are necessary under the revised list. Therefore, refiners will now have 25 days from January 22, 1974 to

3913

report transactions made to comply with the program.

The corrected supply/capacity ratio and the buy-sell list set forth as an Appendix to this notice are applicable through the period February 1, 1974April 30, 1974. The provisions of 10 CFR, Part 211, Subpart C apply to transactions under the buy-sell list.

The listing in the Appendix covers PAD districts I through V, and the amounts shown in columns 3 and 4 of the list are in barrels of 42 gallons each, for the specified period. Column 1 lists the name of the refiner. A refiner listed with an amount in Column 3 is required, pursuant to 10 CFR 211.65 (h), to offer that volume of crude oil to a refiner listed with an amount in Column 4. Refiners with amounts so listed in Column 4 have the opportunity to purchase crude oil pursuant to 10 CFR 211.65 (1). Column 2 lists the supply capacity ratio as reported by each refiner.

Refiners which are entitled to purchase crude oil but have not agreed upon a sale within 25 days from January 22, 1974, may request the National Office, FEO, to order a sale. Refiner-buyers making such requests must provide the FEO with the following information:

1. Name of the refiner and of the person authorized to act for the refiner in buy-sell transactions.

2. Name and location of the refineries for which crude oil is sought, the amount of crude oil sought for that refinery, and the technical specification range of crude oil which can be processed in that refinery.

3. Names and locations of all refiners from whom crude oil has been sought under this program and the volume and specification of the crude oil sought from each.

4. Statement of any restrictions, limitations or constraints made in the purchase requests with particular respect to manner or time of deliveries and price.

5. The response of each refiner with whom a request to purchase crude oil has been placed, and the name and telephone number of the contact in each selling refinery.

6. Such other pertinent information as the FEO may request.

Issued in Washington, D.C., January 28, 1974.

JOHN C. SAWHILL,
Deputy Administrator,
Federal Energy Office.
APPENDIX

1. The National refiner supply/capacity ratio for the period February 1, 1974 through April 30, 1974 is 0.7665.

2. The list of refiner-buyers and refinersellers for the period February 1, 1974 through April 30, 1974 is as follows: