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V 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 paragraph (e)(3) of this section 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) of this section, mean imports from Canada of unfinished oils (except ethane, pro

pane, 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) of this section. 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 × 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 § 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]

§ 213.39 Deferral of fees.

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 similar 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]

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215.5 Pricing and volume reports. 215.6 Notice of negotiations.

AUTHORITY: Emergency Petroleum Allocation Act of 1973, Pub. L. 93-519, 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.

SOURCE: 42 FR 48330, Sept. 23, 1977, unless otherwise noted.

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As used in this subpart:

"Administrator" means the Federal Energy Administrator or his delegate. "DOE" means the Department of Energy.

"Host government" means the government of the country in which crude oil is produced and includes any entity which it controls, directly or indirectly.

"Person" means any natural person, corporation, partnership, association, consortium, or any other entity doing business or domiciled in the U.S. and includes (a) any entity controlled directly or indirectly by such a person and (b) the interest of such a person in any joint venture, consortium or other entity to the extent of entitlement to crude oil by reason of such interest.

§ 215.3 Supply reports.

(a) Any person having the right to lift for export by virtue of any equity

interest, reimbursement for services, exchange or purchase, from any country, from fields actually in production, (1) an average of 150,000 barrels per day or more of crude oil for a period of at least one year, or (2) a total of 55,000,000 barrels of crude oil for a period of less than one year, or (3) a total of 150,000,000 barrels of crude oil for the period specified in the agreement, pursuant to supply arrangements with the host government, shall report the following information.

(1) Parties (including partners and percentage interest, where applicable). (2) Grade or grades available; loading terminal or terminals.

(3) Government imposed production limits, if any.

(4) Minimum lifting obligation and maximum lifting rights.

(5) Details of lifting options within the above limits.

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(7) Price terms including terms of rebates, discounts, and number of days of credit calculated from the date of loading.

(8) Other payments to or interests retained by the host government (i.e. taxes, royalties, and any other payment to the host government) expressed in terms of the applicable rates or payment or preemption terms, or the base to which those rates or terms are applied.

(9) Related service or other fees and cost of providing services.

(10) Restrictions on shipping or disposition.

(11) Other material contract terms. (b) Reports under this section shall be made no later than (1) 60 days after final issuance of reporting forms implementing this regulation,

as an

nounced in the FEDERAL REGISTER, (2) fourteen days after the date when supply arrangements are entered into, or (3) fourteen days after the initial lifting under an agreement in which the parties have tentatively concurred but not signed, whichever occurs first. Reporting shall be based on actual practice between the parties. Material changes in any item which must be reported pursuant to this section shall be reported no later than 30 days after

a person receives actual notice of such changes.

(c) Where reports under this section by each participant in a joint operation would be impracticable, or would result in the submission of inaccurate or misleading information, the participants acting together may designate a single participant to report on any of the rights, obligations, or limitations affecting the operation as a whole. Any such designation shall be signed by a duly authorized representative of each participant, and shall specify:

(1) The precise rights, obligations, or limitations to be covered by the designation; and

(2) The reasons for the designation. Such designations shall be submitted to the Assistant Administrator for International Energy Affairs, and shall take effect only upon his written approval, which may at any time be revoked.

§ 215.4 Production of contracts and documents.

Whenever the Administrator determines that certain foreign crude oil supply information is necessary to assist in the formulation of energy policy or to carry out any other function of the Administrator, he may require the production by any person of any agreement or document relating to foreign oil supply arrangements or reports related thereto. Such material shall be provided pursuant to the conditions prescribed by the Administrator at the time of such order or subsequently. As used in this section, the term "agreement" includes proposed or draft agreements, and agreements in which the parties have tentatively concurred but have not yet signed, between or among persons and a host country.

8 215.5 Pricing and volume reports.

To the extent not reported pursuant to § 215.3, any person lifting for export crude oil from a country shall report to the DOE within 30 days of the date on which he receives actual notice:

(a) Any change (including changes in the timing of collection) by the host government in official selling prices,

royalties, host government taxes, service fees, quality or port differentials, or any other payments made directly or indirectly for crude oil; changes in participation ratios; changes in concessionary arrangements; and

(b) Any changes in restrictions on lifting, production, or disposition.

§ 215.6 Notice of negotiations.

Any person conducting negotiations with a host government which may reasonably lead to the establishment of any supply arrangement subject to reporting pursuant to § 215.3(a), or may reasonably have a significant effect on the terms and conditions of an arrangement subject to § 215.3(a), shall notify DOE of such negotiations. Such notice shall be made no later than the later of 30 days after the effective date of this regulation or within 14 days after such negotiations meet the conditions of this section, and shall specify all persons involved and the host government affected. Notice must be in writing to the Assistant Administrator for International Energy Affairs. Where this notice pertains to negotiations to modify a supply agreement previously reported to the Department of Energy under this Part, such notice shall include the agreement serial number assigned to the basic agreement.

PART 216-MATERIALS ALLOCATION AND PRIORITY PERFORMANCE UNDER CONTRACTS OR ORDERS TO MAXIMIZE DOMESTIC ENERGY SUPPLIES

Sec.

216.1 Introduction.

216.2 Definitions.

216.3 Requests for assistance.

216.4 Evaluation by DOE of applications.
216.5 Notification of findings.
216.6 Petition for reconsideration.
216.7 Conflict in priority orders.
216.8 Communications.
216.9 Violations.

AUTHORITY: Sec. 104, Energy Policy and Conservation Act (EPCA); sec. 101(c), Defense Production Act of 1950, as amended (DPA) (50 U.S.C. App. 2071(c)); sec. 7, E.O. 11912, April 13, 1976; Defense Mobilization Order No. 13, September 22, 1976, 41 FR 43720; Department of Commerce, Bureau of

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(a) This part describes and establishes the procedures to be used by the Department of Energy ("DOE") in considering and making certain findings required by section 101(c)(3) of the Defense Production Act of 1950, as amended, 50 U.S.C. App. 2071(c)(3) ("DPA"). Section 101(c) authorizes the allocation of, or priority performance under contracts or orders (other than contracts of employment) relating to, supplies of materials and equipment in order to maximize domestic energy supplies if the findings described in section 101(c)(3) are made. Among these findings are that such supplies of materials and equipment are critical and essential to maintain or further exploration, production, refining, transportation or the conservation of energy supplies or for the construction and maintenance of energy facilities. The function of finding if such supplies are critical and essential was delegated to the Administrator of the Department of Energy ("DOE") pursuant to Executive Order 11912 of April 13, 1976, Defense Mobilization Order ("DMO") No. 13 dated September 22, 1976, 41 FR 43720, and Department of Commerce, Bureau of Domestic Commerce, Delegation No. 4, effective date December 1, 1976, 41 FR 52331. On October 1, 1977, pursuant to section 301(a) of the Department of Energy Organization Act (Pub. L. 95-91), all of the functions of DOE and all of the functions of the DOE Administrator were transferred to the Secretary of Energy.

(b) The purpose of these regulations is to establish the procedures and the criteria to be used by DOE in determining whether programs or projects maximize domestic energy supplies and finding whether or not supplies of material and equipment are critical and essential, as required by DPA section 101(c)(3). The critical and essential finding will be made only for supplies of materials and equipment related to those programs or projects determined by DOE to maximize domestic

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