Proclamation 4092—Modifying Proclamation No. 3279 Relating to Imports of Petroleum and Petroleum Products

The Director of the Office of Emergency Preparedness, with the advice of the Oil Policy Committee, has found that the national security will not be adversely affected by changes in the oil import program which would

—extend indefinitely the provision permitting the importation of No. 2 fuel oil into District I,

—enable holders of allocations made pursuant to this program to obtain No. 2 fuel oil manufactured in Puerto Rico, and

—authorize the suspension, from time to time, of the requirement that such No. 2 fuel oil be manufactured in the Western Hemisphere from crude oil produced in that hemisphere.

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

I agree with the findings and recommendations of the Director and deem it necessary and consistent with the security objectives of Proclamation No. 3279, as amended, to adjust the imports of petroleum and petroleum products, and to improve the administration of the program, 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 laws of the United States, including section 232 of the Trade Expansion Act of 1962, do hereby proclaim that, effective as of the date of this Proclamation, Proclamation No. 3279, as amended, is further amended as follows:

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

"Except as otherwise provided in this proclamation, the maximum level of imports (exclusive of imports from Canada provided for in paragraph (a) of section 1 A), subject to allocation, of crude oil, unfinished oils, and finished products (other than residual fuel oil to be used as fuel) into Districts I—IV for a particular allocation period, shall be an amount equal to the difference between (i) 960,000 barrels per day during that allocation period and (ii) the quantity of crude oil and unfinished oils which may be imported pursuant to paragraph (h) of section lA of this proclamation during the particular allocation period plus the quantity estimated by the Secretary by which shipments of unfinished oils and finished products (other than residual fuel oil to be used as fuel) from Puerto Rico to Districts I—IV during that allocation period will exceed the quantity (as adjusted by the Secretary as he may determine to be consonant with the objectives of this proclamation) so shipped during a comparable base period in the year 1965. Within this maximum level, imports of unfinished oils and imports of finished products (other than residual fuel oil to be used as fuel) shall not exceed such levels as the Secretary may determine to be consonant with the objectives of this proclamation. In addition to the imports permitted under the first sentence of this paragraph, for the period January 1, 1971 through December 31, 1971, and for each allocation period thereafter, there may be imported into District I, an average of 45,000 barrels per day of No. 2 fuel oil, manufactured in the Western Hemisphere from crude oil produced in the Western Hemisphere, for allocation, under regulations of the Secretary, to persons in the business in District I of selling No. 2 fuel oil who do not have crude oil import allocations into Districts I—IV and who operate deep water terminals in District I or have throughput agreements with deep water terminal operators in District I who do not have crude oil import allocations into Districts I—IV, on a fair and equitable basis, to the extent possible, in relation to such persons' inputs of No. 2 fuel oil to such terminals, having regard to any product import allocations into Districts I—IV made to such persons. No person who manufactures in Puerto Rico No. 2 fuel oil from crude oil produced in the Western Hemisphere shall incur a reduction of an allocation or be deemed to have violated a condition of an allocation by reason of a shipment of such oil to a person who holds an allocation under the preceding sentence and who relinquishes an amount of the allocation equal to the amount so shipped, so long as the total of all such shipments from Puerto Rico during a particular allocation period does not exceed an average of 5,000 barrels per day. Whenever the Director of the Office of Emergency Preparedness, as a result of his surveillance under paragraph (a) of section 6, finds that because of supply, price or other considerations, the requirement that such No. 2 fuel oil be manufactured and produced in the Western Hemisphere is restricting the availability of such oil for importation into District I and is not required for the national security, he shall so advise the Secretary who may then suspend such requirement by appropriate regulation. No such suspension shall be renewed except upon a new finding by the Director of the Office of Emergency Preparedness as required under the preceding sentence. The Secretary may, by regulation, provide that a holder of an allocation for the importation of No. 2 fuel oil under the provisions of this subparagraph may import crude oil produced in the Western Hemisphere in lieu of No. 2 fuel oil, barrel for barrel, and exchange such crude oil for No. 2 fuel oil."

In Witness Whereof, I have hereunto set my hand this 5th day of November, in the year of our Lord nineteen hundred and seventy one, and of the Independence of the United States of America the one hundred and ninety-sixth.

RICHARD NIXON