Presidential Findings Regarding the Export of Alaskan Crude Oil to Canada

On September 28, 1988, I signed the United States-Canada Free-Trade Agreement Implementation Act of 1988. Section 305 of that Act implements Annex 902.5 of the United States-Canada Free-Trade Agreement that deals with trade in energy goods, including crude oil. Section 305(a) amends Section 7(d) of the Export Administration Act of 1979, as amended, to permit the export to Canada of up to 50,000 barrels per day of crude oil that has been transported by pipeline over a right-of-way granted pursuant to Section 203 of the Trans-Alaska Pipeline Authorization Act ("TAPS crude oil").

On June 14, 1985, I made a finding that the exports of certain crude oil to Canada are in the national interest. Before exports of these 50,000 barrels per day of crude oil to Canada can be authorized, I must make certain additional findings and determinations. I have decided to make the necessary findings and determinations under the following statutes: Section 103 of the Energy Policy and Conservation Act (42 U.S.C. 6212); Section 28(u) of the Mineral Leasing Act, as amended by the Trans-Alaska Pipeline Authorization Act of 1973 (30 U.S.C. 185(u)); Section 28 of the Outer Continental Shelf Lands Act (43 U.S.C. 1354); and 10 U.S.C. 7430(e).

To further implement Chapter Nine of the Free-Trade Agreement with regard to trade in energy goods, and as indicated in Chapter Nine of the Statement of Administrative Action that I transmitted to the Congress with the Free-Trade Agreement, I also am making these findings and determinations with regard to exports of petroleum (as defined in 10 U.S.C. 7420(3)) from the Naval Petroleum Reserves, where proof is lacking that those exports are not derived from or commingled with petroleum from the Naval Petroleum Reserves.

I hereby find and determine that exports of petroleum under these statutes are in the U.S. national interest, and I further find and determine that such U.S. petroleum exports to Canada-
• will not diminish the total quality or quantity of petroleum available to the United States;
• will not increase reliance on imported oil;
• are in accord with provisions of the Export Administration Act of 1979, as amended; and
• are consistent with the purposes of the Energy Policy and Conservation Act.

Therefore, effective upon the entry into force of the Free-Trade Agreement for the United States, such domestic petroleum may be exported to Canada, exports of crude oil to be for consumption or use therein.
These findings and determinations shall be published in the Federal Register. I direct the Secretary of Commerce to take all necessary and proper action to expeditiously implement this decision.

RONALD REAGAN
The White House,
December 31, 1988.