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 person), or

(2) An agreement or contract under which any such person 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 person who controls, is controlled by, or is under common control with such refiner), but who 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) (1) or (2)) of this definition, and who does not control such refiner.

(b) The term "nonbranded independent marketer" means a person who is engaged in the marketing or distributing of refined petroleum products, but who (1) is not a refiner, (2) is not a person who controls, is controlled by, is under common control with, or is affiliated with a refiner (other than by means of a supply contract), and (3) is not a branded independent marketer.

"Independent refiner" means a refiner who (a) obtained, directly or indirectly, in the calendar quarter which ended immediately prior to November 27, 1973. more than 70 percent of his refinery input of domestic crude oil for 70 percent of his refinery input of domestic and imported crude oil) from producers who do not control, are not controlled by, and are not under common control with, such refiner, and (b) marketed or distributed in such quarter and continues to market or distribute a substantial volume of gasoline refined by him through branded independent marketers or nonbranded independent marketers.

"Local governmental unit" means any county, city, or other political subdivision of a State, and any special purpose district.

"LPG" means propane and butane, but not ethane.

"Medical and nursing buildings" are buildings that house medical, dental and nursing practices including the use of clinics, hospitals, nursing homes and other facilities (including those for the elderly) listed in Appendix I of 6 CFR 300.18 and 300.19.

"Middle distillates" means any derivatives of petroleum used for burning, including kerosene, home heating fuel, range oil, stove oil and diesel fuel, which have a fifty percent boiling point in the ASTM D86 standard distillation test falling between 371 and 700° F.

"Motor gasoline" means a mixture of volatile hydrocarbons, suitable for operation of an internal combustion engine, whose major components are hydrocarbons with boiling points ranging from 140° to 390° F. and whose source is through distillation of petroleum and cracking, polymerization, and other chemical reactions by which the naturally occurring petroleum hydrocarbons

RULES AND REGULATIONS

are converted to those that have superior fuel properties.

"New customer" means a purchaser with a new fuel requirement, which is not the result of a change in ownership where a fuel requirement previously existed.

"Notice of violation" means a written statement issued to a person by the Federal Allocation Officer or the Regional Administrator setting forth one or more charges of alleged violations of the Program.

"Priority allocation" means the quantity of the substance being allocated which a supplier must distribute to all of his purchasers for their priority need as provided elsewhere in these regulations.

"Priority allocation requirement" for a supplier of end-users is the product of the aggregate priority needs of all his end-user purchasers for each priority class of use multiplied by the applicable allocation level for that use classification. The priority allocation requirement for a supplier selling for resale is the aggregate priority allocation requirements of his purchasers. Suppliers selling for both end-use and resale should combine these two figures to determine their priority allocation requirement.

"Priority need" means the priority base period volume, adjusted priority base period volume, or (where the relevant allocation level is in terms of current requirements) current requirements of an end-user.

"Products" mean all refined petroleum products and residual fuel oil.

"Public health, safety, and welfare" are those qualities of life preserved and protected by hospitals and law enforcement, fire fighting, and emergency medical services, both public and private. In addition, public health is protected by the maintenance of residential heating in individual homes, apartments, and similar occupied dwelling units. Public health is also protected by the provision of sanitation services.

"Public services" are

(a) All services provided by all levels of government, including local governmental units;

(b) Mail delivery;

751

"Residual fuel oil" means those fuel oils commonly known as Nos. 4, 5, and 6 fuel oils, Bunker C. Navy Special Fuel Oil, crude oil when burned directly as fuel, and all other fuel oils which have a fifty percent boiling point over 700° F. In the ASTM D86 standard distillation test. "Sanctions" means the penalties as described in Subpart F. of part 202 of this chapter.

"School" means an educational institution up through the secondary level that maintains a regular facility and curriculum and has a regularly organized body of students in attendance at the place where its educational activities are regularly carried on. The term school, as used in this regulation, does not include post-secondary education facilities.

"Small refiner" means a refiner whose total refinery capacity (including the refinery capacity of any person who controls, is controlled by, or is under common control with such refiner) does not exceed 175,000 barrels per day.

"State" means each of the 50 States, the District of Columbia, Puerto Rico, possessions and territories of the United States, but excluding the Panama Canal Zone.

"State office" means the office designated by the governor or chief executive of each State, pursuant to this regulation, to handle requests for assistance from the State set-aside.

"State set-aside" means a percentage of the total supply of middle distillates, motor gasoline, residual fuel oil (except as used by utilities or as bunker fuel for maritime shipping) which a refinersupplier or importer-supplier intends to distribute within that State during the following month. The set-aside will be taken from all refined and imported supplies of a refiner, but only from imported supplies of other importer-suppliers. The State set-aside is not a physical set-aside of product. It cannot be accumulated or deferred. It is made available to the States from working stocks of refiners and importers.

"Supplier" means any refiner, importer, marketer, jobber, distributor, terminal operator, firm, corporation (including any broker), cooperative, Fed

(d) Facilities and services provided by municipally, cooperatively, or investor owned utilities.

"Refined petroleum product" means gasoline, kerosene, distillates (including Number 2 fuel oil), LPG, refined lubricating oils, or diesel fuel.

"Regional Administrator" means, for the purpose of this regulation, the Director of a Regional Office of the FEO. The Regional Administrators shall be located in Boston, Massachusetts; New York, New York; Philadelphia, Pennsylvania; Atlanta, Georgia; Chicago, Illinois; Dallas, Texas; Kansas City, Missouri; Denver, Colorado; San Francisco, California; and Seattle, Washington.

"Regional office" means regional office of the Federal Energy Office.

other person who supplies, sells, consigns, transfers or otherwise furnishes any allocated substance either to endusers or for resale. A supplier may also be a wholesale purchaser.

"Total allocable supply" means the total supply of each allocated substance of a supplier. This includes supplies produced and/or received during the allocation month, plus a portion of inventory pro rated so as to assure a fairly constant allocation fraction throughout the period of peak use. In the case of a refiner-supplier or importer-supplier, total allocable supply is total supply of each allocated substance less State set-aside quantities.

"Transportation services" are:

(a) Surface, including water and rail, facilities and services for carrying pass

752

engers whether public or privately owned, which serve the general public; and

(b) Transportation of pupils to and from school in a school bus.

"Utility" means a facility that generates electricity, by any means, and sells it to the public.

any

"Wholesale purchaser" means person, firm, corporation, cooperative, or government unit which purchases, receives through transfer, or otherwise obtains an allocated substance in bulk or under contract at the wholesale level, specifically including: (1) only those agricultural users who consume more than 20,000 gallons per year; (2) only those multi-family residences consuming more than 50,000 gallons per year; and (3) all other purchasers who normally purchase more than 84,000 gallons of the product per year.

Subpart C-Crude Oil and Refinery Yield Control

§ 200.26 Scope of coverage.

(a) This subpart provides for the mandatory allocation of all crude oil produced in or imported into the United States for use in refineries, and a program of refinery yield control, except as exempted under § 200.2(b) (1).

(b) This subpart applies to all producers, refiners, and others who purchase crude oil from producers directly or indirectly for resale or transfer to refineries. However, only refiners are required to report to the FEO and to take certain actions based on directives by the FEO. All persons able to increase the amount of imported crude oil, through competition or control, are especially encouraged to do so. $ 200.27

Definitions.

(a) "Refineries" are those industrial plants, regardless of capacity, processing crude oil feedstock and manufacturing refined petroleum products, except when such plant is a petrochemical plant as that term is defined in section 22, Ofl Import Regulation 1 (Revision 5), as amended.

(b) "Refiners" are those persons, companies, or other corporate entities that own, operate or control the operations of one or more refineries.

(c) For each refinery, "refining capacity" is defined as the greater of that capacity reported to the Bureau of Mines as of January 1, 1973, or actual crude oil runs (on a calendar day basis) as reported to the Bureau of Mines for January through October, 1973. A refiner who has received a starter allocation under section 25 of the Oil Import Regulations, and who has requested and received certification of his incremental refinery capacity from FEO, pertaining to a new refinery expansion or reactivation subsequent to the January 1, 1973 capacity report to the Bureau of Mines, may elect to have his net new capacity added to the capacity as reported to the Bureau of Mines on January 1, 1973: Provided, however, That for the first re

RULES AND REGULATIONS

porting period, FEO certification will not be required as provided in § 200.31(b) (4).

Any refiner's capacity which has become inoperable since the January 1973, report to the Bureau of Mines must be deducted from refinery capacity.

(d) For purposes of this section, the term crude oil will include lease condensate.

§ 200.28 Allocation.

under this program.

§ 200.29 Distribution system.

(a) Refiners who are required to sell crude oil must offer this crude oil, directly or through exchange, to refiners who are eligible to purchase crude oil under this program. The crude oil offered must be suitable for processing in and practical for delivery to plants or purchasing refiner.

(b) The type of crude oil purchased or sold, the location of each sale, and the terms and conditions of sale shall be agreed upon by individual companies conducting the transactions consistent with normal business practice, subject to provisions of these regulations and to the applicable laws in effect at the time of the transaction.

(c) In the event of supply disruptions that substantially affect the program, or any refiner, the FEO may terminate or reduce the sales volumes of any agreements made as required by this program, publish new lists or partial new lists, and issue additional instructions for sales to bring the program back into reasonable balance.

(d) Refiners who are eligible to purchase crude oil under this program and who desire to purchase crude oil but are unable to negotiate a contract for crude oil within the time period allotted may request that the FEO compel a refiner, required to sell crude oil, to sell an acceptable type of crude oil to the deficit refiner. Upon such request, the FEO may direct a refiner who has not sold its required volume to sell crude to the deficit refiner. Should the deficit refiner then decline to purchase the crude oil specifled by the FEO, any of that refiner's rights to purchase that volume of crude oil based on the allocation program are forfeited during the quarter, provided that all other terms of the allocation program have been met by the seller.

(e) Refiners required to sell crude oil under the provisions of this program who have not negotiated contracts for the sale of the required volumes to refiners allowed to purchase crude oil, within 30 days of issuance of legal notification shall notify the FEO and may be directed by the FEO to sell certain volumes of a particular crude oil to specified customers to comply with the program.

(f) Any refiner who has not negotiated a contract to sell or purchase the required amount of crude oil within 30 days, and any eligible purchaser who has requested assistance of FEO, and who is directed to respectively sell or buy crude

allowed.

(h) Ali sales, purchases and exchanges of domestic crude oil made by any person, in effect on December 1, 1973, shall remain in effect, except purchases and sales made to comply with this program.

(i) Notwithstanding any provision to the contrary contained herein, upon written notice given to the then purchaser of crude at least 30 days prior to the commencement of any allocation quarter that this program is in effect, a producer may sell all or any portion of his crude oil to another purchaser for that allocation quarter. New crude petroleum and released crude as defined in 6 CFR 150.354 shall be priced in accordance with that regulation.

§ 200.30 Method of allocation.

(a) One program is established for all of the U.S. For purposes of this subpart, Puerto Rico and the Virgin Islands are included in PAD Distriots I-IV and Guam is included in PAD District V.

(b) Each refiner will estimate the total supplies of crude oil (including crude oil from stripper wells) to become available for processing during a given quarter and report their estimate to the FEO together with the supply of domestic crude oil and imported crude oil available during the equivalent quarter of 1973, as described in $ 200.31. Based on these estimates and refining capacity as reported, a refiner supply/capacity ratio will be calculated and announced by FEO. In calculating a national refiner supply/capacity ratio the maximum allocable supply attributed to any refiner by the FEO will be the lesser of estimated supply available for the forthcoming quarter or the amount of crude oil available during the corresponding period of 1973.

(c) Refiners who have crude oil processed by other refiners and who retain control of the products therefrom for sale will also report this as described in

200.31. The refiner who has crude oil processed by others will include that volume of crude oil in his estimate of available supply of crude oil. That volume of crude oil will also be added to the capacity of the reporting refiner. Refiners who process crude oil for others will not include that volume of crude oil in their estimate of available supply of crude oil. That volume of crude oil will be subtracted from the capacity of the processing refiner.

(1) Refiners whose estimate of allocable crude supplies to become available during the quarter would result in a

supply/capacity ratio exceeding FEO's prescribed ratio are required to offer for sale and to sell crude oil supplies to eligible purchasers in amounts sufficient to reduce the aggregate allocable supply/ capacity ratio for its refineries to the respective FEO ratio.

(2) An eligible purchaser listing, consisting of those refiners whose refinery operations are so deficient in crude oil supplies to become available that their supply/capacity ratio is more than 0.02 below the FEO ratio, will be published in the form of a legal notification together with a listing of those required to sell.

(d) The price at which crude oil shall be offered for sale as required in this program in Districts I-IV or District V during any particular month that this subpart is in effect shall be the weighted average price of all crude oil delivered to the seller's plants in Districts I-IV, or District V (calculated as two separate values), during a particular month, plus a 6 percent handling fee, plus any transportation adjustment specified in paragraph (f) of this section, plus a gravity adjustment as specified in paragraph (g) of this section. Each refiner required to sell oil under this program shall maintain records, which shall be made available to the FEO upon request, listing the volumes and delivered prices of all crude oils delivered to its refineries during each month. Two separate weighted average costs shall be calculated, one for crude oils delivered to refineries in Districts I-IV and one for crude oils delivered to refineries in District V.

(e) For the purpose of calculating the weighted average delivered price, the delivered cost of such domestic crude oil shall be the purchase price of the crude oil, at the point of purchase, plus any gathering or trucking allowances, pipeline tariffs, water transportation costs, terminalling costs and exchange differentials paid to deliver the crude oil to the seller's refineries. For imported crude oil, the delivered price shall be the contract purchase price, if purchased from a noncontrolled company, or the world market price at which the foreign crude oil is transferred to the U.S. corporation for U.S. income tax purposes for the specific crude oil involved, if purchased or transferred from a subsidiary or branch of the U.S. corporation, plus any pipeline tariffs, water transportation costs, terminalling costs, exchange differentials, import fees, insurance, duty, and taxes paid to deliver crude oil to the seller's refineries. All costs are as defined by the COLC (if defined) to calculate raw material cost passthroughs.

(f) Actual additional transportation expenses incurred to move the offered crude oil to the purchasers' refinery shall be paid by the purchaser. Actual transportation expenses saved as a result of moving the offered crude oil directly to the purchaser's refinery shall be deducted from the selling price.

(g) Each refiner required to sell crude oil will also calculate a weighted aver

RULES AND REGULATIONS

age gravity (API) for all crude oil estimated to be delivered to refineries in Districts I-IV and District V. The price of crude oil offered for sale will be the weighted average price plus or minus 24 per barrel per API that the actual crude oil being offered for sale is above or below the weighted average API in District I-IV and 5¢ per barrel per API that the actual crude oil being offered for sale is above or below the weighted average in District V.

(h) Refiners required to sell crude oil under this program will be allowed to recover through an increase in their product prices the entire cost of crude oil purchased or transferred less the proceeds of crude oil sold under this program.

(1) Refiners required to sell crude oil under this program will also be allowed to increase their product prices to recover an additional amount equal to 844 per barrel of crude oil sold to comply with this program.

(j) The Cost of Living Council, or its successor, will modify 6 CFR 150.354 to allow the pricing provisions as specified in this subpart. $ 200.31

Procedures and reporting re

quirements.

(a) Initial report. By January 10, 1974, each refiner will provide the FEO with a report showing the following:

fineries, as defined in § 200.27 (c). (1) The capacity of each of his re

(2) Estimated runs of all domestic and imported crude oil for the refiner's own account at each of his refineries during the period from February 1, 1974, through April 30, 1974.

(3) The estimated amount of crude oil to be delivered to other refiner's plants for processing for his own account under period. a processing agreement during the same

(4) The estimated amount of crude oil processed in each of his refineries for other refiners under a processing agreement during the same period.

(5) The amount of crude oil supply available to the refiner for processing at his refineries for his own account and the amount of crude oil processed by other refiners for his account during the corresponding period in 1973.

quarterly (b) Subsequent reports. Within ten (10) days before the end of each calendar quarter, each refiner will provide the FEO with a report showing the following:

(1) Estimated crude oil available during the following allocation quarter.

(2) Any changes in refinery capacity since the previous report. In order for reported new refinery capacity, expansion, or reactivation to be eligible for use in determining a refiner's supply/capacity ratio, it will be necessary for such capacity to qualify for allocation under section 25 of the Oil Import Regulations. Further, at the time that notice in advance of anticipated start-up is provided under section 25 of the Oil Import Regulations, application for certification of

753

the net operating rate of such increased capacity will be filed with FEO. FEO or its duly designated agent will, within 30 days of receipt of such application, conduct a physical inspection of the subject facilities and upon verification of the new capacity operating rate, will certify such capacity. This new capacity will be eligible for use in determining crude oil allocations only after FEO certification.

(1) In determining capacity for the first reporting period of 1974, only the stream day inputs of crude oil certified for purposes of earning an oil import allocation under section 25 of Oil Import Regulation 1 (Revision 5), as amended, will be considered to be an increase in operating capacity as defined in these regulations. Applications for permanent certification of the capacity must be filed with FEO before March 20, 1974, if such capacity is to be included in subsequent quarters.

(3) Capacity which has become inoperable in the preceding quarter will be reported and will be deducted from operable refinery capacity for the current and subsequent quarters. This includes those refineries or portions of those refineries charging crude oil which operate only for certain portions of the year.

(4) The estimated amount of crude oil to be delivered to other refiner's plants during the quarter for processing for the account of the reporting refiner under a processing agreement.

(5) The actual amount of crude oil delivered to other refiners for processing for the account of the reporting refiner during the preceding quarter.

(c) Monthly reports. The general reporting requirements specified in Subpart L apply.

(d) These reports shall identify each domestic and foreign crude oil by stream or name and give the average daily volume delivered or estimated to be delivered to each refiner. All reports shall be certified for correctness by an officer of the company. Supporting documents necessary. may be required by the FEO as it deems

(e) On January 15, 1974, and on the first day of each calendar quarter, and following receipt of the initial report or the subsequent quarterly reports the FEO will publish a legal notification showing required sales volumes and purchase opportunities for each refiner in Districts I-V and will constitute instructions to the refiners to sell the required volumes of crude oil or inform them of their opportunities to purchase additional supplies. The commencement date for making sales as required under this program will be 15 days from the date the initial lists are published and one month following the date that subsequent lists are published. Any agreements for the sale or purchase of crude oil after the commencement date shall be retroactive to such date.

(f) Within 30 days of the date the lists are published, each refiner shall make a report to the FEO showing purchases and sales made to comply with the program.

754

(g) For succeeding quarters, the FEO will recalculate the fraction of available supplies and republish the list showing required sales volumes and purchase opportunities. The volumes on the sales and purchase list will be modified by the difference between the estimated available volume of crude oil during the preceding quarter and the actual volumes of crude oil delivered to refiners during the preceding quarter. Refiners are urged to maintain the same buy/sell relationships, where possible, during succeeding quarters.

RULES AND REGULATIONS

(1) All exchanges of foreign oll for domestic crude oil in effect at the initiation of this regulation shall remain in effect as long as the foreign crude oil being delivered for. exchange continues to be available. In the event that supplies of foreign crude oil being exchanged become unavailable through circumstances not under the control of the person, firm, or corporation that is supplying the foreign crude oil, and other replacement crude oils cannot be secured, then the exchange agreement may be terminated, upon 7 days notice, provided that a full report is sent to the FEO and that the FEO is notified by telegram at the time of the notice.

(1) It shall be each refiner's responsibility to report to the FEO any changes in available supply subject to allocation. Such reports may be filed at any time. (k) In the event that a refiner's estimated supply has been reduced during the allocation period through circumstances not within his control, the refiner shall properly document the circumstances to the FEO which will then in

vestigate and attempt to resolve the shortfall equitably as provided in paragraph (c) of this section.

$200.32 Crude oil sales periods.

(a) The first crude oil sale period shall be for the three month period from February 1, 1974, through April 30, 1974. Subsequent crude oil sales shall be for three month allocation quarters beginning May 1, 1974.

§ 200.33 Mandatory refinery yield control program.

(a) Intent of program. It is the intent of the refinery yield program to meet the essential requirements of the aviation fuels, distillate, residual fuels and petrochemical feedstocks allocation programs by reducing the total supply of gasoline and encouraging refiners to maximize production of these essential products. It is assumed that the requirements for these essential products will be reduced to absolutely essential levels through various conservation programs. Gasoline production is to be curtailed by limiting gasoline sales to an assigned

States. The mandatory provisions of the program will apply to the sale of gasoline and petroleum fractions used in blending in all cases where the final finished product is gasoline.

(c) Basis of product control. Each refiner will be permitted to produce for sale a fraction of the gasoline produced from crude oil at his refineries during the period equal to his historical ratio of gasoline produced and sold per barrel of crude run at his refineries during the corresponding quarter of 1972 multiplied by a gasoline sales fraction. FEO will develop the gasoline sales fraction based on reported refinery production and actual production required to most nearly meet the needs of the various product allocation programs. The FEO will establish and publish the gasoline sales fraction and adjust this fraction on a quarterly basis as circumstances warrant. Each refiner will sell or distrib

ute gasoline to all his customers in accordance with the gasoline allocation program.

(1) The FEO may establish or change sales fractions of other refinery products, provided, however, the FEO will not establish sales fractions of products other than gasoline without first announcing its intent to assign other sales fractions, and giving the public time to comment on such proposed sales fractions.

(2) Two or more refiners may, with the consent of the FEO, agree to meet the specified assigned gasoline fractions on a pooled basis such that the combined relative gasoline sales of these refineries will be reduced by an amount equal to the gasoline sales fraction specified by

the FEO.

(d) Exceptions. The intent of this program is maximization of petroleum produets in critical short supply. Any application for an exception to allocations applicable to refiners because of refinery equipment limitations, quality of crude feedstocks available, or for any reason, would be granted only if FEO determines that information submitted by the refiner and other information such as the results of onsite inspections conclusively supports such application.

Subpart D-Propane and Butane

grams.

allocation pro

(a) Propane-The effective date of this mandatory propane allocation program, pursuant to section 4(f) (2) of the Act, is

delayed until January 11, 1974. Energy Policy Regulation 3 shall continue in ef

fect until that time..

(b) Butane:

(1) There shall be established a separate butane program.

(2) This program shall cover all butane produced from gas plants and refineries and all butane imported into the United States, except for butane produced and used within the same refinery as part of a feedstock for other refinery products or as refinery fuel.

(3) Butane-propane mixes sold in the LPG market shall be regulated under the propane program if the fraction of propane exceeds 10%. Mixtures with lesser quantities of propane shall be considered butanes.

(4) Priorities: There shall be three categories of priorities in descending order:

ing synthetic rubber (1) Petrochemical production, includ

(11) Traditional LPG markets including industrial fuel

(iii) Gasoline blending

(5) Method of allocation-No butane

shall be delivered to a lower priority use before first satisfying all higher priority uses. If a supplier can only meet his wholesale purchasers needs for part of a particular priority category, he shall allocate the available butane (not committed for a higher priority use) to his wholesale customers in proportion to their use during 1972. Existing contracts will be honored (except to the extent inconsistent with the above). New suppliers will be determined as in Subpart I, Petrochemicals.

Subpart E-Motor Gasoline

NOTE-Pursuant to 4(f) (1) of the Act, the Mandatory Motor Gasoline Allocation Program will become effective no later than January 11, 1974, and be implemented on January 15, 1974. The pricing provisions described in Part 201 of this chapter shall, however, apply to Motor Gasoline immediately.

Subpart F-Middle Distillate

NOTE. Pursuant to section 4(f) (2) of the Emergency Petroleum Allocation Act of 1973, the effective date of the Mandatory Middle Distillate Allocation Program promulgated under that Act is delayed until January 11, 1974. Until January 11, 1974, the Mandatory Allocation Program for Middle Distillate Fuels published as EPO Reg. 1 on October 16, 1973, shall continue in effect.

Subpart G-Aviation Fuels

§ 200.51 Scope of coverage.

(a) This subpart applies to the mandatory allocation of aviation fuels produced in or imported into the United States.

(b) There are two primary allocation systems for aviation fuels. One, for Civil Air Carriers, is administered by the headquarters of the Federal Energy Office and assures equitable distribution of available fuel among the Civilian Air Carriers. The other program allocates to all other users of aviation fuel where aviation fuels are distributed by the supplier (retailer) to his customers, including transients, on a fair and equitable basis. This program is administered by the FEO regional offices for general aviation and by the federal FEO for public aviation.

(c) Bonded aviation fuel is specifically excluded from allocation in this subpart.

(a) "Civil Air Carrier" means (1) Domestic Air Carriers-those air carriers holding a certificate of public convenience and necessity. providing for interstate and overseas air transportation, issued pursuant to section 401 of the Federal Aviation Act of 1958. as amended; (2) International Air Carriers those air carriers holding a certificate of public convenience and necessity, providing for foreign air transportation, issued pursuant to section 401 of the Federal Aviation Act of 1958, and foreign air carriers holding permits issued pursuant to section 402 of the Federal Aviation Act of 1958, but excluding those with permits which restrict their operations to the use of aircraft not exceeding 12,500 pounds gross take-off weight; (3) Intrastate Carriers-those carriers licensed by a State regulatory agency and operating equipment having more than 30 seats or a pay load of at least 7500 pounds: (4) "Regional Carriers"-those carriers holding a certificate pursuant to Sec. 401 of the Federal Aviation Act of 1958, receiving Federal subsidy and those carriers holding a certificate pursuant to section 401 of the Federal Aviation Act of 1958 and (i) receiving Federal subsidy. or (ii) operating solely within the States of Hawaii or Alaska, or (iii) operating scheduled helicopter service; and (5) "Other Air Carriers" those carriers holding a Federal Aviation Administration Air Taxi Commercial Operating Certificate and a 298 exemption from the Civil Aeronautics Board including operations by scheduled commuter airlines and non-scheduled air taxi operations; foreign carriers holding permits under section 402 of the Federal Aviation Act of 1958 authorizing casual and infrequent service with aircraft not exceeding 12,500 pounds gross take-off weight; and those carriers holding a license issued under Part 135 of the Federal Aviation Regulations.

RULES AND REGULATIONS

(b) "General Aviation" means (1) Industrial Flying-that use of aircraft associated with industry, (1) "Agricultural Production Flying"-the use of general aviation aircraft in the production of agriculture, including seeding, spraying, fertilizing, and dusting of food and forestry crops by air, the use of aircraft by those engaged in agriculture to transport priority supplies and personnel to sustain or increase crop and animal yields and to transport crop and animal products to distribution points, and in commercial fishing; (ii) "Energy Production Flying"-the use of general aviation aircraft in the production of energy sources, including pipeline and powerline patrol, oil and gas exploration activities, necessary movement of supplies and personnel for the production of energy resources, and other essential flying for energy production; (iii) "Aircraft Manufacturing"-that consumption of aviation fuels associated with aircraft production, static and fight testing of aircraft and components, training of flight crews and the ferrying of aircraft. (2) Business Flying-any use of aircraft not for compensation or hire by an individual for the purpose of transportation required by business in which he is engaged and any use of an aircraft by a corporation, company or other organization for the purpose of transporting its employees and/or property not for compensation or hire and employing professional pilots for the operation of the aircraft. Business flying includes such aerial uses as photography, advertising, survey and helicopter hoist. (3) Personal Pleasure/Instructional Flying any use of aircraft for personal purposes not associated with a business or a profession and not for hire, and any use of aircraft for the purpose of formal instruction with the flight instructor aboard or with maneuvers on its particular flight specified by the flight instructor. (4) Air Travel Club Flyingany use of aircraft operated under Part 123 of the Federal Aviation Regulations.

(c) "Public Aviation" means any aircraft used exclusively in the service of the government and the political subdivisions thereof including the government of any state, territory, or possession of the United States or the District of Columbia. for example: FAA aircraft. state and city police and forest firefighting aircraft, etc.

(d) "Emergency Services, Safety, and Mercy Missions"-Public or private aircraft dedicated to emergency operations, safety and mercy missions.

(e) "Aviation Gasoline" means those petroleum-based fuels designed for use in aircraft internal combustion engines and complying with MIL-G-5572 specification (ASTM Specification D-910-70).

(f) "Aviation Turbine Fuel" means all refined petroleum fuel designed to operate aircraft turbine engines. The basic specification is ASTM D-1655 which covers both type A (kerosene base) and type B naphtha base).

735

(g) "Aviation Fuels" means aviation gasoline and aviation turbine fuel.

(h) "Bonded Aviation Fuels" means those aviation fuels produced outside the territorial limits of the United States, held in bond under continuous United States customs custody in accordance with Treasury Department Regulations. and destined for use outside of the United States, its territories or possessions.

(1) "Non-aviation use of Aviation Fuels"-that consumption of aviation fuels associated with gas turbine drive power plants in industry, utilities and transportation.

(j) The base period for aviation fuels except for the Department of Defense is the corresponding month in calendar year 1972 or as adjusted by the FEO. For general aviation, this may be modified to be the average monthly consumption at the option of the user. $ 200.53

Allocation.

(a) Civil Air Carriers-Allocations will be made to the end-users and supplied by those suppliers with whom the endusers were dealing on October 31, 1973. or as suppliers have changed through normal business practices.

(1) Domestic Air Carriers-to receive ninety-five percent of their base period consumption.

(2) International Air Carriers-to receive ninety-five percent of their base period consumption; this applies to nonbonded fuel only.

(3) Intra-State Carriers-to receive ninety-five percent of their base period consumption.

(4) Regional Carriers-to receive onehundred percent of their base period consumption.

(5) Other Air Carriers-to receive one-hundred percent of their base period consumption.

(b) General Aviation Allocations will be made to the supplier (wholesaler) and to the supplier (retailer) and other sellers based upon eighty percent of base period consumption. The supplier (retailer) and other sellers will assure fair and equitable distribution among his customers including transients in accordance with the following allowances.

(1) Industrial Flying

(i) Agricultural Flying-to receive one-hundred percent of current requirements.

ii) Energy Production Flying-to receive one-hundred percent of current requirements.

(ii) Aircraft Manufacturing-to receive one-hundred percent of current requirements not to exceed one-hundredand-thirty percent of base period consumption.

(2) Aircraft for Business Flying-to receive eighty-percent of their base period consumption.

(3) Aircraft for Personal Pleasure and Instructional Flying-to receive seventypercent of their base period consumption.