OI REG. 1—OIL IMPORT REGULATION

Sec.

1. Purpose.

2. Oil Import Administration.

3. Allocation periods.

4. Eligibility for allocations.

5. Applications for allocations and licenses 6. Records and inspections.

7. Licenses.

8. Small quantities.

9. Determination of quantities available for allocation.

10. Allocations of crude oil and unfinished oils-Districts I-IV.

11. Allocations of crude oil and unfinished oils-District V.

12. Allocations of residual fuel oil to be used as fuel in District I.

12a. Emergency advances. 13. Allocations of finished products-Districts I-IV, Districts II-IV, District V. 14. Determination of maximum level of imports-Puerto Rico.

15. Allocations of crude oil and unfinished oils Puerto Rico.

16. Allocations of finished products-Puerto Rico.

17. Use of imported crude oil and unfinished oils.

18. Reports.

19. False statements.

20. Revocation or suspension of allocations or licenses.

21. Appeals.

22. Definitions.

AUTHORITY: Secs. 1 to 22 issued under Proclamation 3279, as amended, 24 F.R. 1781, 3527, 10133; 25 F.R. 13945; 26 F.R. 507, 811; 27 F.R 9683, 11985; and 28 F.R. 4077, 5931; sec. 232, 76 Stat. 877.

SOURCE: Sections 1 to 22 appear in Oil Import Reg. 1, Rev. 4, 28 F.R. 14318, Dec. 27, 1963, unless otherwise noted.

Section 1. Purpose.

These regulations implement Presidential Proclamation 3279, "Adjusting Imports of Petroleum and Petroleum Products into the United States," dated March 10, 1959 (24 F.R. 1781), as amended, by providing for the discharge of the responsibilities imposed upon the Secretary of the Interior.

Sec. 2. Oil Import Administration.

There is in the Department of the Interior an Oil Import Administration under the direction of an Administrator designated by the Secretary of the Interior. The Administrator is hereby empowered to exercise, pursuant to this regulation, all of the authority conferred upon the Secretary by Proclamation 3279, as amended, and the Administrator may redelegate such authority.

33-613 O-65-12

Sec. 3. Allocation periods.

Allocations of imports of crude oil, unfinished oils and finished products will be made for periods of six months beginning July 1 and January 1, respectively, except that allocations of imports into District I and into Districts II-IV of residual fuel oil to be used as fuel will be made for periods of twelve months April 1 through March 31.

Sec. 4. Eligibility for allocations.

(a) To be eligible for an allocation of imports of crude oil and unfinished oils in Districts I-IV or in District V, a person must (1) have refinery capacity in the respective districts and (2) have had refinery inputs in the respective districts for the year ending three months prior to the beginning of the allocation period for which the allocation is requested.

(b) To be eligible for an allocation of imports of crude oil and unfinished oils for Puerto Rico, a person must have refinery capacity in Puerto Rico and must have had refinery inputs in Puerto Rico during the months of July, August, and September of the year 1958.

(c) To be eligible for an allocation of imports of finished products, other than residual fuel oil to be used as fuel, in Districts I-IV or District V, a person must have imported such products into the respective districts during the calendar year 1957.

(d) To be eligible for an allocation of imports into District I of residual fuel oil to be used as fuel a person must:

(1) Have imported residual fuel oil used as fuel into District I during the calendar year 1957; or

(2) Be in the business in District I of selling residual fuel oil to be used as fuel and, at the time an application for an allocation is made, have under his management and operational control a deep-water terminal located in District I, and have had terminal inputs into such deep-water terminal during the year ending three months prior to the beginning of the allocation period for which the allocation is requested.

(e) To be eligible for an allocation of imports into Districts II-IV or into District V of residual fuel oil to be used as fuel, a person must have imported residual, fuel oil used as fuel into the respective districts during the calendar year 1957.

(f) To be eligible for an allocation of imports of finished products, other than

residual fuel oil to be used as fuel, in Puerto Rico, a person must have imported such products into Puerto Rico during the last half of the calendar year 1958.

(g) To be eligible for an allocation of imports of residual fuel oil to be used as fuel in Puerto Rico, a person must have imported residual fuel oil used as fuel into Puerto Rico during the last half of the calendar year 1958.

(h) A person is not eligible individually for an allocation of crude oil and unfinished oils or finished products if the person is a subsidiary or affiliate owned or controlled, by reason of stock ownership or otherwise, by any other individual, corporation, firm or other business organization or legal entity. The controlling person and the subsidiary or affiliate owned or controlled will be regarded as one. Allocations will be made to the controlling person on behalf of itself and its subsidiary or affiliate but, upon request, licenses will be issued to the subsidiary or affiliate.

Sec. 5. Applications for allocations and licenses.

An application for allocations of imports of crude oil, unfinished oils, or finished products and for a license or licenses must be filed with the Administrator, in such form as he may prescribe, not later than 60 calendar days prior to the beginning of the allocation period for which the allocation is required. However, if the 60th day is a Saturday, Sunday, or holiday, the application may be filed on the next succeeding business day. However, no application for an allocation of imports of finished products need be filed for the allocation period January 1, 1964 through June 30, 1964. Allocation periods are provided for in section 3 of this regulation.

Sec. 6. Records and inspections.

All persons receiving allocations pursuant to these regulations shall maintain complete records of imports, refinery inputs, and terminal inputs. These records shall be maintained on a current basis so that they will be available for inspection by a representative of the Oil Import Administration. All records required to be maintained pursuant to this section shall be retained for a period of three (3) years. In connection with the

performance of the Oil Import Administration's responsibility for assuring full compliance with these regulations and Proclamation 3279, as amended, the person shall permit representatives of the Oil Import Administration to enter upon his office, property, plants and facilities to examine such records and, if deemed necessary in order to verify such records, to inspect the refinery and terminal and all operations being performed within the facilities which include, but are not necessarily limited to refining, receiving, shipping, testing and storage. If requested by the Oil Import Administration representatives, the person shall be required to assign an employee to accompany the representatives of the Oil Import Administration in all inspections, record evaluations, and verification operations. The Oil Import Administration representatives shall not be required to sign any releases prior to entering upon a person's property or installation. Sec. 7. Licenses.

(a) When an allocation has been made to a person under this regulation, the Administrator shall issue a license or licenses based on the allocation, specifying the amount of crude oil and unfinished oils or finished products which may be imported, the period of time such license shall be in effect, and the districts (District I, Districts I-IV, Districts IIIV, District V, or Puerto Rico) into which the importation may be made. The Administrator may amend such licenses.

(b) No license issued pursuant to this section may be sold, assigned, or otherwise transferred.

Sec. 8. Small quantities.

(a) Collectors of Customs are authorized to permit without a license baggage entries, and entries for consumption of small quantities of crude oil, unfinished oils, or finished products which are certified as samples for testing or analysis and which do not exceed 110 gallons per entry.

(b) Persons desiring to import small quantities not covered by paragraph (a) of this section shall file with the Administrator a written request for an authorization for entry without a license for each shipment describing the oil and quantity to be imported and listing the port of entry.

Sec. 9. Determination of quantities available for allocation.

(a) Prior to the beginning of each allocation period the Adminitrator shall determine in accordance with the limitations imposed by section 2 of Proclamation 3279, as amended, the quantities of imports of crude oil and unfinished oils and finished products other than residual fuel oil to be used as fuel which are available for allocation in Districts I-IV and in District V.

(b) Prior to April 1 of each year and for the allocation period which will begin on that day, the Bureau of Mines shall estimate the demand in District I for residual fuel oil to be used as fuel and the domestic production of that product in District I, transfers from crude, and the domestic supply from other Districts and Puerto Rico of that product to District I. If the estimates of the Bureau indicate that domestic production and supply will not be sufficient to meet demand, and adjustment will be made, pursuant to paragraph (d) of section 2 of Proclamation 3279, as amended, in the maximum level of imports into District I of residual fuel oil to be used as fuel adequate to meet the deficit indicated for the ensuing allocation period.

Sec. 10.

Allocations of crude oil and unfinished oils-Districts I–IV.

(a) The quantity of imports of crude oil and unfinished oils determined to be available for allocation in Districts I-IV for the allocation period January 1, 1965 through June 30, 1965, shall be allocated by the Administrator among eligible applicants as provided in paragraphs (b) and (c) of this section.

(b) Except as provided in paragraph (c) of this section, each eligible applicant shall receive an allocation based on refinery inputs for the year ending September 30, 1964, and computed according to the following schedule:

tary Oil Import Program and if an allocation computed under paragraph (b) of this section would be less than 59.0 percent of the applicant's last allocation of imports of crude oil under the Voluntary Oil Import Program, the applicant shall, nevertheless, receive an allocation under this section equal to 59.0 percent of his last allocation of imports of crude oil under the Voluntary Oil Import Program.

(2) If an applicant imported crude oil pursuant to an allocation under the Voluntary Oil Import Program which reflected imports of crude oil that would now be exempt from restrictions pursuant to clause (4) of paragraph (a) of section 1 of Proclamation 3279, as amended, and if an allocation computed under paragraph (b) of this section would be less than 49.75 percent of the applicant's last allocation of imports of crude oil under the Voluntary Oil Import Program, the applicant shall, nevertheless, receive an allocation under this section equal to 49.75 percent of his last allocation of imports of crude oil under the Voluntary Oil Import Program.

(d) No allocation made pursuant to this section shall entitle a person to a license which will allow the importation of unfinished oils in excess of 10 percent of the allocation.

(e) No allocation made pursuant to this section may be sold, assigned, or otherwise transferred.

[OI Reg. 1, Rev. 4, Amdt. 3, 29 F.R. 16986, Dec. 11, 1964]

Sec. 11. Allocations of crude oil and unfinished oils-District V.

(a) The quantity of imports of crude oil and unfinished oils determined to be available for allocation in District V for the allocation period January 1, 1965 through June 30, 1965, shall be allocated by the Administrator among eligible applicants as provided in paragraphs (b) and (c) of this section.

(b) Except as provided in paragraph (c) of this section, each eligible applicant shall receive an allocation based on refinery inputs for the year ending September 30, 1964, and computed according to the following schedule: