Proclamation 4018—Modifying Proclamation No. 3279 Relating to Imports of Petroleum and Petroleum Products

The Director of the Office of Emergency Preparedness has found, with the advice of the Oil Policy Committee

1. that the importation from Western Hemisphere sources into District I, without charge to import quotas, of 14.6 million barrels of No. 2 fuel oil during the period January 1, 1971 through December 31, 1971 for allocation to independent deepwater terminal operators under appropriate seasonal restrictions, would not adversely affect the national security;

2. that the importation authorized by this Proclamation of Canadian crude oil, unfinished oils, and finished products produced in Canada from Canadian crude oil by means of vessels operating on waterways (other than ocean waterways) in or between the United States and Canada, would not adversely affect the national security;

3. that the importation other than by sea from Canada of natural gas liquids produced in Canada, without charge to import quotas, would not adversely affect the national security;

4. that imports of ethane, propane and butane derived from Western Hemisphere sources may be increased without adversely affecting the national security;

5. that crude oil may be imported into District I to be topped for use as burner fuel subject to such conditions as the Secretary may specify by regulation, without adversely affecting the national security;

6. that Canadian crude oil may be imported into the United States from Canada to be topped for use as burner fuel under such conditions as the Secretary may specify by regulation, without adversely affecting the national security; and

7. that crude oil may, without regard to its viscosity, be imported for use as burner fuel, under the same conditions and restrictions as now apply to residual fuel oil imported for use as fuel, without adversely affecting the national security.

The Director has recommended, with the advice of the Oil Policy Committee, that Proclamation No. 3279, as amended, be amended to adjust imports in conformity with these findings.

I accept these findings and deem it necessary and consistent with the security objectives of Proclamation No. 3279, as amended, to adjust imports as hereinafter provided.

Now, Therefore, I, Richard Nixon, President of the United States of America, acting under and by virtue of the authority vested in me by the Constitution and statutes, including section 232 of the Trade Expansion Act of 1962, do hereby proclaim that, effective immediately:

(1) Clause (ii) of the last sentence of subparagraph (1) of paragraph (a) of Section 2 of Proclamation No. 3279 of March 10, 1959, as added by Proclamation No. 3990 of June 17, 1970, is amended by striking "December 31, 1970", and inserting in lieu thereof "December 31, 1971";

(2) Section 1A of Proclamation No. 3279, as added by Proclamation No. 3969 of March 10, 1970, is amended by adding four new subsections as follows:

"(d) Any crude oil, unfinished oils, or finished products that may otherwise be transported into the United States from Canada under the provisions of this proclamation, may also be transported into the United States by vessel, as defined in 1 U.S.C. 3, so long as such transportation involves only waterways (other than ocean waterways) in or between the United States and Canada.

"(e) On and after October 1, 1970, any natural gas liquids, as defined in subparagraph (1) of paragraph (a) of Section 2 of this proclamation, derived solely from Canadian natural gas, may be transported other than by sea into the United States from Canada without license and without reducing the quantities of crude oil, unfinished oils, or finished products that may be imported into the United States under the provisions of Section 1, Section 1A, and Section 2 of this proclamation.

"(f) On or after October 1, 1970, ethane, propane and butane produced in the Western Hemisphere from Western Hemisphere crude or gas may be imported into the United States without reducing the quantities of crude oil, unfinished oils and finished products that may be imported into the United States under the provisions of Section 1, Section 1A, and Section 2 of this proclamation.

"(g) Crude oil may be imported into District I to be topped for use as burner fuel under such conditions as the Secretary may, by regulation, provide. Crude oil may be imported into the United States from Canada to be topped for use as burner fuel under such conditions as the Secretary may, by regulation, provide. The quantities of crude oil, unfinished oils, and finished products that may be imported into the United States under the provisions of Section 1, Section 1A, and Section 2 shall not be reduced by reason of imports of crude oil used as fuel under this paragraph (g)."

(3) Subparagraph (7) of paragraph (g) of Section 9 of Proclamation No. 3279 is amended to read as follows:

"(7) residual fuel oil—(i) topped crude oil or viscous residuum which has a viscosity of not less than 45 seconds Saybolt universal 100°F. and (ii) crude oil 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 sixteenth day of October, in the year of our Lord nineteen hundred seventy, and of the Independence of the United States of America the one hundred ninety-fifth.

RICHARD NIXON