(2) With respect to licenses issued against a surety bond pursuant to this paragraph, fees shall be paid no later than the last day of the month following the month in which such imports were released from customs custody or entered or withdrawn from warehouse for consumption, whichever occurs first.

(3) With respect to imports made on or before December 21, 1975, all supplemental fees payable under this part as in effect on December 21, 1975, shall be payable in accordance with this part as in effect on that date.

(d)(1) Applications for refund under this paragraph shall be filed in such form as the Director may prescribe.

(2) Upon application by the importer of record, the Director may reduce or refund fees prescribed pursuant to paragraph (c):

(i) In the case of licenses issued upon prepayment, for payment to the importer of record, on a monthly basis, of sums equal to the sums collected by way of net duties paid to the U.S. Customs Service, on imports made on or after December 17, 1978, provided, that said importer certifies the amount of net duties paid; provided further, that where the applicable duty paid on a barrel of crude oil, unfinished oil, or finished product exceeds the amount of the fee paid with respect to that barrel, the reduction shall not exceed the amount of the fee nor may any excess duty be used to reduce or refund the fee on any other barrel. With respect to imports made prior to December 17, 1978, reduction in payments for net duties paid on such shipments may continue to be made in accordance with the regulations in effect at that time.

(ii) Where the licensee failed to use, wholly or in part, the license issued to him;

(iii) To the extent that they reflect volume adjustments made subsequent

to entries made against the license at the time of importation, e.g., corrections made by the Customs Service of contained basic sediment and water; corrections of mistakes made in calculating tank volumes; or corrections of mistakes made in calculating volumes to standard temperature;

(iv) Where the District Director of Customs determines, after entry, that a particular shipment of crude oil, unfinished oils, or finished products imported pursuant to a license for which fees have been paid, should have been assessed at a lower fee;

(v) To the extent that imports of crude oil or unfinished oils have been incorporated into petrochemicals as defined in § 213.10 which are subsequently exported, or refined into finished products subseqeuntly exported. No petrochemical exports earning a refund of license fee may earn an allocation pursuant to § 213.10;

(vi) Where refunds of license fees, whether wholly or in part, where ordered by the former Oil Import Appeals Board or by the Office of Exception and Appeals;

(vii) Where crude oil imported by virtue of a license for which a fee was paid has been manufactured into asphalt; and

(viii) For payment in accordance with paragraph (e) of this section.

(3) Applications for refund under this paragraph (d) shall, insofar as practicable, be processed by the Director and presented to the Treasury for payment, within ten (10) days of their receipt.

(4) No refunds under this paragraph (d) to an allocation holder shall exceed the fees and supplemental fees paid by such allocation holder.

(5) With respect to imports made on or before December 21, 1975, all refunds from and reductions in fees and supplemental fees provided under this part, shall be made in accordance with this part as in effect on that date.

(e)(1) On a monthly basis, the Director shall, in accordance with this paragraph (e) of this section, with respect to crude oil, unfinished oils, and finished products imported into Puerto Rico (or imported into Districts I-V and shipped to Puerto Rico with or without further processing) and not

shipped to Districts I-V, as crude oil, unfinished oils, or finished products, make reductions in and refunds from fees by the amount of any excise tax or other levy imposed subsequent to December 21, 1975 and collected by the Government of Puerto Rico on such materials, provided that refunds from or reductions in such excise tax or other levy are authorized in the same manner as are authorized with respect to payments prescribed by paragraph (c) of this section.

(2) For the purpose of obtaining refunds or reductions under this paragraph, the importer of record shall furnish the Director for the particular month the following documents:

(i) Copies of customs entry documents 7501 or 7505, as appropriate, where crude oil, unfinished oils, or finished products were imported into Puerto Rico;

(ii) Copies of any bills of lading or other documents filed with the Commonwealth of Puerto Rico relating to shipments of crude oil, unfinished oils, or finished products from Districts I-V to Puerto Rico and from Puerto Rico to Districts I-V; and

(iii) Certified copies of documents prepared for the Government of Puerto Rico containing computations of the volumes of material subject to a tax or other levy in effect after December 21, 1975 on crude oil, unfinished oils, or finished products not shipped to Districts I-V, and calculations based thereon of the amounts owing to Puerto Rico for payment of said tax or other levy, Provided, That such computations and calculations shall be subject to adjustment based on a determination of their accuracy by the Department of Energy and the Government of Puerto Rico.

(3) In the case of licenses issued pursuant to a bond, the importer shall pay to the Director, with respect to the following to the extent applicable:

(i) Fees applicable per barrel on the volumes of crude oil, unfinished oils and finished products imported into Puerto Rico and not shipped into Districts I-V, less the tax or other levy per barrel (up to the amount of the applicable fee net of any reductions pursuant to paragraph (a)(1) of Section 3 of Proclamation No. 3279, as

amended) on those volumes paid to Puerto Rico; and

(ii) Fees applicable per barrel on the volumes of crude oil, unfinished oils and finished products imported into Districts I-V and shipped to Puerto Rico with or without further processing, less the tax or other levy per barrel on those volumes paid to Puerto Rico; and

(iii) Fees and supplemental fees applicable per barrel on the volumes of crude oil, unfinished oils and finished products imported.

(4) Upon receipt of the documents specified in paragraph (e)(2) of this section, the Director shall, with respect to licenses issued by prepayment of the fees prescribed in paragraphs (c) of this section, refund to the importer of record such fees on the following crude oil, unfinished oils and finished products:

(i) Imports into Puerto Rico, plus (ii) Imports into Districts I-V which are shipped to Puerto Rico, less

(iii) Fees applicable per barrel on the volumes of crude oil, unfinished oils and finished products imported.

(5) Crude oil, unfinished oil, and finished products shipped to Puerto Rico from Districts IV, shall be deemed to be crude oil imported into Districts IV or to have been processed from such imported crude oil to the extent that the refiner shipping such products has imported into Districts I-V crude oil in equivalent or greater volumes.

(6) The fee payable pursuant to paragraph (e)(3) of this section for the month in question shall be that attributable to the feedstock which was processed or further processed in Puerto Rico. In the event that material which could have been derived from different feedstocks having different fees is shipped into Districts I-V from Puerto Rico, the material will be deemed, to the extent possible, to have been derived from the feedstock having the lowest fee. Any excess will be deemed to have been derived from the feedstock having the next lowest fee. To the extent that material is shipped form Puerto Rico into Districts I-V in excess of the amount that could have been derived from crude oil or unfinished oils, such shipments will be considered to be transshipments of

that material without further processing, and the fee applicable to that material shall apply.

(7) In the event that an importer of material into Puerto Rico sells crude oil, unfinished oils, or finished products to another person in Puerto Rico, the importer shall ascertain whether the material sold will be shipped into Districts I-V. Where such material will be shipped into Districts I-V, the importer of the materials into Puerto Rico shall be liable for the fees imposed pursuant to subparagraph (3) of this paragraph on the materials introduced into Puerto Rico and shipped into Districts I-V.

(Department of Energy Organization Act, Pub. L. 95-91; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267; Trade Expansion Act of 1962, as amended, Pub. L. 87-794; Presidential Proclamation No. 3279, as amended)

[41 FR 2228, Jan. 15, 1976, as amended at 41 FR 14260, Apr. 2, 1976; 43 FR 59462, Dec. 20, 1978; 44 FR 24051, Apr. 24, 1979]

§ 213.36 Imports of unfinished oils from Canada-District V.

(a) The term "Canadian imports" as used in this section, shall, except as provided in paragraph (f), mean imports from Canada of unfinished oils (except ethane, propane, and butanes) which have been derived from crude oil or natural gas produced in Canada and which have been transported into the United States by overland means or over waterways other than ocean waterways, but shall not include any material subject to allocation under Part 214.

(b) To be eligible for an allocation of Canadian imports under this section, a person must have in District V a facility capable of processing Canadian imports.

(c) The Director shall, in accordance with the terms of paragraph (d)(1) of this section, make allocations for the allocation period May 1, 1979 through April 30, 1980 such that the amount of such allocations, plus the amount of allocations under § 213.33 and § 213.28 (a) and (c), shall not exceed 248,000 average barrels per day per year.

(d)(1) The Director shall make allocations not subject to license fees of Canadian imports to eligible applicants who received allocations of such

imports for the period May 1, 1975 through April 30, 1976 pursuant to § 213.36. Each such applicant shall be entitled to an allocation of Canadian imports calculated in accordance with the following formula:

(Eligible applicant's Canadian imports into District V during the period May 1, 1973 through April 30, 1974, expressed in barrels per day) × 0.20.

(2) The Director shall issue not later than May 1, 1979, to each eligible applicant a license equal to the total of the allocation calculated pursuant to paragraph (d)(1). Such licenses shall expire on April 30, 1980.

(e)(1) Except as provided for in paragraph (e)(2), a person who imports Canadian imports must process all such imports in his own facility. For the purpose of this paragraph, blending by mechanical means does not constitute processing.

(2)(i) Canadian imports may be exchanged on a barrel for barrel basis for other Canadian imports but each person receiving Canadian imports in the exchange must process the imports received in his own facilities. Settlements, credits, monetary, or accounting adjustments reflecting the relative values of the oils involved in the exchange are permissible.

(ii) Canadian imports which are sold to meet the requirements of regulations published by the Department of Energy shall not be required to be processed in the licensee's own facility.

(f) A person to whom an allocation is made by the Director under this section shall report and certify in writing to the Director, not later than August 31, 1979, (1) the total quantity of Canadian imports which that person imported during the period May 1, 1978 through April 30, 1979, pursuant to an allocation made under § 213.28 and (2) the quantity of such imports that were processed in his facilities before July 1, 1979. The amount so reported and certified shall be subject to verification by the Director. If a person to whom an allocation is made under this section fails to file by August 31, 1979, the written report and certification required by this paragraph, the Director shall suspend all licenses issued under an allocation made under this section

until the written report and certification are received. For the purpose of this paragraph only, "Canadian imports" shall mean both imports from Canada of crude oil which has been produced in Canada and unfinished oils which have been derived from crude oil or natural gas produced in Canada and which have been transported into the United States by overland means or over waterways other than ocean waterways.

(g) An allocation made pursuant to this section shall not be sold, assigned or otherwise transferred.

(h) An application for an allocation under this section shall be made by letter or telegram to the Director, Oil Imports, P.O. Box 19267, Washington, D.C. 20036, unless an application has been previously filed. Applications must have been received by April 2, 1979. An application must contain the following information which shall be certified by an officer of the applicant:

(1) The nature of each of the applicant's facilities in which Canadian imports will be processed.

(2) The location of each such facility.

(3) The total barrels of Canadian imports imported into District V during the period May 1, 1973 through April 30, 1974, expressed in barrels per day. (Trade Expansion Act of 1962, as amended, Pub. L. 87-794, as amended; Proclamation 3279, as amended; Department of Energy Organization Act, Pub. L. 95-91; Federal Energy Administration Act of 1974, Pub. L. 93-275, as amended, E. O. 12009, 42 FR 46267; E. O. 12038, 43 FR 64849)

[41 FR 18308, May 3, 1976, as amended at 42 FR 39088, Aug. 2, 1977; 44 FR 17961, Mar. 23, 1979]

§ 213.37 Mexican imports: Districts I-IV and District V.

(a) For the allocation period July 1, 1979, or such other beginning date as the Secretary may prescribe in accordance with the provisions of § 213.39 through April 30, 1980, the Director shall allocate, as provided in paragraph (c) of this section, approximately 6,500 average barrels daily x 305 days or such other number of days as determined in § 213.39 of Mexican imports into Districts I-IV and District V.

(b) As used in this section, the term "Mexican imports" means imports from Mexico of crude oil which has been produced in Mexico and unfinished oils except ethane, propane, and butanes which have been derived from crude oil or natural gas liquids produced in Mexico.

(c) The Director shall make allocations not subject to license fee to each eligible applicant for the allocation period July 1, 1979, or such other beginning date as the Secretary may prescribe in accordance with the provisions of section 213.39 through April 30, 1980 and subsequent allocation periods on the basis of the pro rata share of Mexican imports made by each applicant during the calendar year 1972, relative to the total of all Mexican imports made by all applicants during the calendar year 1972.

(d) Each eligible applicant shall make applications for an allocation under this section by letter only signed by an officer of the company. Applications will be in accordance with the provisions of § 213.5.

(e) No allocation made pursuant to this section may be sold, assigned, or otherwise transferred, and any license issued pursuant to such allocation may be sold only in accordance with § 213.22.

(Department of Energy Organization Act, Pub. L. 95-91; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267; Trade Expansion Act of 1962, as amended, Pub. L. 87-794; Presidential Proclamation No. 3279, as amended)

[39 FR 45275, Dec. 31, 1974, as amended at 40 FR 18769, Apr. 30, 1975; 41 FR 2229, Jan. 15, 1976; 41 FR 14260, Apr. 2, 1976; 44 FR 24052, Apr. 24, 1979]

Upon a finding made by the Secretary with respect to any type of crude oil, unfinished oil, or finished product that re-imposition of the fee and tariff would not be in accordance with the purposes of Proclamation 3279, as amended, the $0.00 fee and suspension of the tariff shall remain in effect with respect to that type of crude oil, unfinished oil, or finished product until January 1, 1980 at which time tariffs, and the fees prescribed in § 213.35(c)(1)(ii) of these regulations, shall be re-imposed except upon a sim

ilar finding. In the event of a similar finding, the $0.00 fee and suspension of the tariff shall remain in effect with respect to that type of crude oil, unfinished oil, or finished product until July 1, 1980.

An allocation not subject to license fee authorized by §§ 213.9, 213.10, 213.11, 213.12, 213.13, 213.15, 213.16, 213.19, 213.20, 213.21, 213.28(a), 213.29, 213.30, 213.32, 213.34, or 213.37 of these regulations shall not be issued for any period in which a $0.00 fee is in effect with respect to all types of petroleum encompassed by the allocation. Such an allocation, reduced to reflect the number of days remaining in the allocation period, will be issued at such time as a fee other than $0.00 is re-imposed with respect to any type of petroleum encompassed by the allocation.

(Department of Energy Organization Act, Pub. L. 95-91; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267; Trade Expansion Act of 1962, as amended, Pub. L. 87-794; Presidential Proclamation No. 3279, as amended) [44 FR 24052, Apr. 24, 1979]

1974, Pub. L. 93-275; E.O. 11790, 39 FR 23185.

SOURCE: 41 FR 4719, Jan. 30, 1976, unless otherwise noted.

Subpart A-General Provisions

§ 214.1 Scope.

(a) General. This part provides for the allocation of crude oil imported from Canada among certain refineries and other consumers in the United States. The purpose of this part is to mitigate the adverse effects on dependent firms of the scheduled reductions in export levels of Canadian crude oil.

(b) Applicability. This part applies to all Canadian crude oil imported after July 1, 1977, except for (1) crude oil authorized for export by the Canadian National Energy Board for the period ending June 30, 1977, that was not actually imported into the United States by that date, (2) Canadian crude oil the export of which is not a factor in the calculations for the maximum export levels fixed by Canada, and (3) Canadian crude oil which DOE determines pursuant to § 214.31(b) is not subject to this part.

(Emergency Petroleum Allocation Act of 1973, Pub. L. 93-159, as amended, Pub. L. 93-511, Pub. L. 94-99, Pub. L. 94-133, and Pub. L. 94-163, and Pub. L. 94-385, Federal Energy Administration Act of 1974, Pub. L. 93-275, as amended, Pub. L. 94-385, Energy Policy and Conservation Act, Pub. L. 94-163, as amended, Pub. L. 94-385; E.O. 11790, 39 FR 23185)

[41 FR 4719, Jan. 30, 1976, as amended at 42 FR 29298, June 8, 1977]