Proclamation 3509—Modifying Adjusting Imports of Petroleum and Petroleum Products

Whereas, pursuant to section 2 of the act of July 1, 1954, as amended (72 Stat. 678), findings and determinations have been made that adjustments in the imports of crude oil, unfinished oils, and finished products were necessary so that such imports would not threaten to impair the national security, such adjustments have been made by Proclamation 3279 (24 F.R. 1781) and modified by Proclamation 3290 (24 F.R. 3527), Proclamation 3328 (24 F.R. 10133), Proclamation 3386 (25 F.R. 13945), and Proclamation 3389 (26 F.R. 507); and

Whereas, under subsection (f), section 257, of the Trade Expansion Act of 1962 (Public Law 87 794), such actions are now deemed to have been taken pursuant to section 232 of that Act; and

Whereas I find and determine that in order to enhance the ability of the petroleum industry to meet possible national security demands, it is necessary to relate maximum levels of authorized imports into Districts I-IV to domestic production of crude oil and natural gas liquids and to adjust these levels; and

Whereas I find and determine that certain revisions in the system of allocating imports will operate to maintain the competitive capability of refining companies of varying sizes aid thus strengthen the national security:

Now, Therefore, I, John F. Kennedy, President of the United States of America, acting under and by virtue of the authority vested in me by the Constitution and the statutes, including section 232 of the Trade Expansion Act of 1962, do hereby proclaim that Proclamation 3279, as amended, is hereby further amended as follows:

1. Effective January 1, 1963, subparagraph (1) of paragraph (a) of section 2 is amended to read as follows:

(a) (1) In Districts I-IV, for a particular allocation period the maximum level of imports, subject to allocation, of crude oil, unfinished oils, and finished products other than residual fuel oil to be used as fuel shall be an amount equal to the difference between 12.2 percent of the quantity of crude oil and natural gas liquids produced in these districts during the period of six months which ends six months prior to the beginning of the allocation period and the quantity of imports of crude oil, unfinished oils, and finished products excepted by clause (4) of paragraph (a) of section 1 which the Secretary of the Interior estimates will be imported into Districts I-IV during the allocation period. As used in this subparagraph, the term "natural gas liquids" means natural gas products and other hydrocarbons such as isopentane, propane, butane, propylene, and butylene, or mixtures thereof, recovered from natural gas by means other than refining. Within such maximum level, the imports of finished products other than residual fuel oil to be used as fuel shall not exceed the level of imports of such products into these districts during the calendar year 1957 and imports of unfinished oils shall not exceed 10 percent of the permissible imports of crude oil and unfinished oils. The maximum level of imports, subject to allocation, of crude oil, unfinished oils, and finished products other than residual fuel oil to be used as fuel which is determined pursuant to the first sentence of this subparagraph for the allocation period beginning January 1, 1963 shall be increased or decreased by 9 percent of the amount by which the total demand estimated by the Bureau of Mines for the allocation period that began January 1, 1962 fell short of or exceeded the actual demand for that allocation period and the maximum level so determined for the allocation period beginning July 1, 1963 shall be similarly adjusted on the basis of estimated and actual demand for the allocation period that began July 1, 1962.

2.            Effective January 1, 1963, paragraph (c) of section 2 is revoked, and paragraphs (d), (e), and (f) of that section are respectively redesignated as paragraphs (c), (d), and (e).

3.            As of the date of this amendatory proclamation, subparagraph (1) of paragraph (b) of section 3 is amended to read as follows

(b) (1) With respect to the allocations of imports of crude oil and unfinished oils into Districts I-IV and into District V, such regulations shall provide, to the extent possible, for a fair and equitable distribution among persons having refinery capacity in these districts in relation to refinery inputs on the basis of a graduated scale (excluding inputs of crude oil or unfinished oils imported pursuant to clause (4 of paragraph (a) of section 1) during an appropriate period or periods selected by the Secretary. Provision shall be made in such regulations for the gradual reduction of allocations made on the basis of the last allocations of imports of crude oil under the Voluntary Oil Import Program, except that provisions shall be made for a more rapid reduction of those allocations based on allocations under the Voluntary Oil Import Program which reflected imports of crude oil in the category now covered by clause (4) of paragraph (a) of section 1.

4.            Effective as of the date of this amendatory proclamation the second sentence of subparagraph (5) of paragraph (b) of section 3 is amended to read as follows:

(5) * * * With respect to the allocation of imports into District I of residual fuel oil to be used as fuel, such regulations shall, to the extent possible, provide for a fair and equitable distribution of imports of residual fuel oil to be used as fuel anion persons who have been importers of that product into such district during the calendar year 1957 and among persons who are in the business in District I of selling residual fuel oil to be used as fuel and who have had inputs of that product to deep-water terminals located in District I, in relation to such terminal inputs on the basis of a graduated scale. * * *

5.            (a) Paragraph (f) of section 9 is amended to read as follows:

(f) "Crude oil" means crude petroleum as it is produced at the well-head and liquids (under atmospheric conditions) that have been recovered from mixtures of hydrocarbons which existed in a vaporous phase in a reservoir and that are not natural gas products;

(b)                 A new subparagraph (9), reading as follows, is added to paragraph (g) of section 9:

(9) "natural gas products" means liquids (under atmospheric conditions), including natural gasoline, which are recovered by a process of absorption, adsorption, compression, refrigeration, cycling, or a combination of such processes, from mixtures of hydrocarbons that existed in a vaporous phase in a reservoir and which, when recovered and without processing in a refinery, otherwise fall within any of the definitions of products contained in clauses (2) through (5), inclusive, of this paragraph (g).

(c)                  The amendments set forth in paragraphs (a) and (b) of this section 5 shall become effective upon the date of this amendatory proclamation with respect to the restrictions imposed by section 1 of Proclamation 3279, as amended, and on January l, 1963 with respect to the maximum levels of imports prescribed by section 2 of Proclamation 3279, as amended, and, in connection with the Making of allocations, shall be effective with respect to the allocation period beginning July 1, 1963.

In Witness Whereof, I have hereunto set my hand and caused the Seal of the United States of America to be affixed.

DONE at the City of Washington this 30th day of November in the year of our Lord nineteen hundred and sixty-two, and of the Independence of the United States of America the one hundred and eighty-seventh.

JOHN F. KENNEDY

By the President:

DEAN RUSK,

Secretary of State