Proclamation 3794—Modifying Proclamation 3279 Adjusting Imports of Petroleum and Petroleum Products

Whereas, pursuant to section 2 of the act of July 1, 1954, as amended (72 Stat. 678), and section 232 of the Trade Expansion Act of 1962 (76 Stat. 877), 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), Proclamation 3389 (26 F.R. 507, 811), Proclamation 3509 (27 F.R. 11985), Proclamation 3531 (28 F.R. 4077), Proclamation 3541 (28 F.R. 5931), Proclamation 3693 (30 F.R. 15459), and Proclamation 3779 (32 F.R. 5919); and

Whereas, I find and determine that, in support of Federal, state and local rules and regulations for air pollution control, it is necessary to enhance the ability of the petroleum industry to provide adequate supplies of low sulfur residual fuel oil to be used as fuel; and

Whereas, I find that it is necessary to permit the entrance of new importers and to provide for allocations which will assure that adequate supplies of low sulfur residual fuel oil to be used as fuel will be distributed to users of such products; and

Whereas, I find and determine that such action will be compatible with the purposes of Proclamation 3279:

Now, Therefore, I, Lyndon B. Johnson, 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:

1. Subparagraph (2) of paragraph (a) of section 2 of Proclamation 3279, as amended, is amended to read as follows:

(2) The maximum level of imports of residual fuel oil to be used as fuel into District 1, Districts II–IV, and District V for a particular allocation period shall be the level of imports of that product into those districts during the calendar year 1957 as adjusted by the Secretary as he may determine to be consonant with the objectives of this proclamation.

2. Paragraph (d) of section 2 of Proclamation 3279, as amended, is revoked and paragraph (e) of section 2 is redesignated as paragraph (d).

3. Subparagraph (5) of paragraph (b) of section 3 of Proclamation 3279, as amended, is amended to read as follows:

(5) With respect to the allocation of imports of residual fuel oil to be used as fuel into Districts II–IV, District V, and Puerto Rico, 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 among persons who were importers of that product into the respective districts or Puerto Rico during the respective base periods specified in section 2 of this Proclamation. In addition, in District V, and Puerto Rico, the Secretary by regulation may, to the extent possible, provide for a fair and equitable distribution of imports of residual fuel oil to be used as fuel, the maximum sulfur content of which is acceptable to the Secretary (i) among persons who are in the business in the respective districts or Puerto Rico of selling residual fuel oil to be used as fuel and who have had inputs of that product to deep-water terminals located in the respective districts or Puerto Rico, and (ii) among persons who are in the business in the respective districts or Puerto Rico of selling residual fuel oil to be used as fuel and who have throughput agreements (warehouse agreements) with deep-water terminal operators. 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 (i) among persons who were importers of that product into such district during the calendar year 1957, (ii) 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, and (iii) among persons who are in the business in District I of selling residual fuel oil to be used as fuel and have throughput agreements (warehouse agreements) with deep-water terminal operators. With respect to the allocation of imports of residual fuel oil to be used as fuel into District I, Districts II-IV, District V, and Puerto Rico, such regulations shall also provide, to the extent possible, for the granting and adjustment of allocations of imports of residual fuel oil to be used as fuel in accordance with procedures established pursuant to section 4 of this proclamation.

4. A new paragraph (e), reading as follows, is added to section 3 of Proclamation 3279, as amended:

(e) Notwithstanding the levels established in section 2 of this proclamation and the provisions of paragraph (b) of this section, the Secretary may provide by regulation for additional allocations of imports of crude oil and unfinished oils to persons in Districts I-IV and District V who manufacture in the United States residual fuel oil to be used as fuel, the maximum sulfur content of which is acceptable to the Secretary, in consultation with the Secretary of Health, Education and Welfare. These allocations to each of such persons shall not exceed the amount of such residual fuel oil produced by that person.

5. Subparagraph (7) of paragraph (g) of section 9 of Proclamation 3279, as amended, is amended to read as follows:

(7) Residual fuel oil—topped crude oil or viscous residuum which has a viscosity of not less than 45 seconds Saybolt universal at 100° F. and crude oil which has a viscosity of not less than 45 seconds Saybolt universal at 100° F. minimum viscosity and which is to be used as fuel without further processing other than by blending by mechanical means.

In Witness Whereof, I have hereunto set my hand this seventeenth day of July in the year of our Lord nineteen hundred and sixty-seven, and of the Independence of the United States of America the one hundred and ninety-second.

LYNDON B. JOHNSON