Proclamation 4178—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 increases in domestic production in 1973 will not be sufficient to supply the expanded demand for petroleum and petroleum products during the year. He has therefore recommended an increase of 915,000 barrels per day in licensed imports into Districts I—IV, including the Canadian component of those imports.

The Director, with the advice of the Oil Policy Committee, has also found that there may he a threat of temporary shortage of No. 2 fuel oil in the current season and has recommended that the requirement for allocations of such fuel oil be suspended for the period January 1, 1973, through April 30, 1973. He has also recommended certain technical amendments to Proclamation No. 3279, as amended, relating to foreign trade zones, gilsonite, oil shale and liquefied gases.

In each instance above, the Director has found that his recommended changes would not adversely affect the national security.

The Director, with the advice of the Oil Policy Committee, has taken into account the estimates of the Secretary of the Interior of the quantity of crude oil and natural gas liquids that will be produced in Districts I—IV, adjusted to reflect other national security determinations, and has recommended that Proclamation No. 3279, as amended, be further amended to adjust imports 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 this date, Proclamation No. 3279, as amended, is further amended as follows:

1. Paragraph (a) of Section 1 is revised to read as follows:

"SEC. 1(a) In Districts I—IV, in District V, and in Puerto Rico, no crude oil, unfinished oils, or finished products may be entered for consumption or withdrawn from warehouse for consumption, except (1) by or for the account of a person to whom a license has been issued by the Secretary of the Interior pursuant to an allocation made to such person by the Secretary in accordance with regulations issued by the Secretary, and such entries or withdrawals may be made only in accordance with the terms of such license, or (2) as authorized by the Secretary pursuant to paragraph (b) of this section, or (3) as to finished products, by or for the account of a department, establishment, or agency of the United States, which shall not be required to have such a license but which shall be subject to the provisions of paragraph (c) of this section, or (4) crude oil, unfinished oils, or finished products which are transported into the United States by pipeline, rail, or other means of overland transportation from the country where they were produced, which country, in the case of unfinished oils or finished products, is also the country of production of the crude oil from which they were processed or manufactured or (5) as provided in paragraph (d) of this section, or (6) as otherwise provided in this Proclamation."

2. Paragraph (a) of Section lA is amended as follows:

(a) In subparagraph (1) substitute "1973" for "1972."

(b) Subparagraph (2) is revised to read as follows:

"(2) During the period January 1, 1973, through December 31, 1973, Canadian imports under allocations made pursuant to this subparagraph (2) into Districts I—IV shall not exceed an average of 675,000 barrels per day. Entries for consumption of crude oil or unfinished oils transported by pipeline may be made until midnight January 15, 1974 under any license authorizing such imports from Canada for that period and until midnight January 15, 1973, under any license authorizing such imports from Canada for the preceding allocation period. The Secretary shall by regulation provide for allocations of such imports. The regulations shall provide that licenses issued under such allocations shall permit the entry, or withdrawal from warehouses, for consumption of Canadian imports only."

3. Subparagraph (1) of paragraph (a) of Section 2 is amended as follows:

(a) Substitute "2,025,000" for "1,165,000."

(b) Substitute the following for the third and fourth sentences:

"In addition to the imports permitted under the first sentence of this paragraph, for the period May 1, 1973, through December 31, 1973, and for each allocation period thereafter, there may be imported into District I, an average of 50,000 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 allocation into Districts I—IV made to such persons."

4. Add subparagraph (4) to paragraph (a) of Section 2 as follows:

"(4) For the period January 1, 1973, through April 30, 1973, any person who is in the business of selling No. 2 fuel oil in Districts I—IV to be used as fuel may import such No. 2 fuel oil into Districts I—IV without reducing the quantities of crude oil, unfinished oils, and finished products that have been or may be imported under the provisions of Section 1, Section 1 A, and Section 2 of this proclamation. Such imports shall require no allocation and licenses shall be available for such imports in accordance with regulations issued by the Secretary."

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

"(f) 'Crude Oil' means a mixture of hydrocarbons that existed in the liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating processes (and are not natural gas products) and the initial liquid hydrocarbons (at atmospheric conditions) produced from tar sands, gilsonite, and oil shale;."

6. Subparagraph (1) of paragraph (g) of Section 9 is amended to read as follows:

"(1) The following liquefied gases, namely ethane, propane, butanes, ethylene, propylene and butylenes, which are derived by refining or other processing of natural gas, crude oil, or unfinished oils;."

In Witness Whereof, I have hereunto set my hand this seventeenth day of January, in the year of our Lord nineteen hundred seventy-three and of the Independence of the United States of America the one hundred ninety-seventh.

RICHARD NIXON