Proclamation 3823—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), Proclamation 3779 (32 F.R. 5919), Proclamation 3794 (32 F.R. 10547), and Proclamation 3820 (32 F.R. 15701); and

Whereas, I find and determine that the provisions in Proclamation 3279, as amended, respecting allocations of imports into Puerto Rico and shipments from Puerto Rico to Districts I–IV should be made applicable with respect to District V, in the interests of effective administration in District V of the program established by that proclamation; and

Whereas, I find and determine that authority should be provided for the making of allocations based upon exports of finished products and petrochemicals without impairing the objectives of Proclamation 3279, as amended; and

Whereas, I find and determine that in view of the disruptions to petroleum supply and transport occasioned by the recent Middle East crisis, the Secretary of the Interior should be authorized to make certain adjustments with respect to allocations of imports and licenses for imports of crude oil, unfinished oils, and finished products; and

Whereas, imports of liquids derived from tar sands are in effect imports of petroleum, I find and determine that imports of such liquids should be subject to the provisions of Proclamation 3279, as amended:

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 statutes, including section 232 of the Trade Expansion Act of 1962, do hereby proclaim that:

1. Effective with respect to the allocation period beginning April 1, 1968 paragraph (c) of section 2 of Proclamation 3279, as amended, is amended to read as follows:

(c) The Secretary, having taken into account the standards prescribed for allocation of imports of crude oil and unfinished oils into Puerto Rico, any actions taken pursuant to section 4, and shipments from Puerto Rico into Districts I–IV and into District V, shall establish for each allocation period a maximum level of imports into Puerto Rico of crude oil and unfinished oils which, in his judgment, is consonant with the objectives of this proclamation. The maximum level of imports of finished products into Puerto Rico for a particular allocation period shall be approximately the level of such imports during all or part of the calendar year 1958 as determined by the Secretary to be consonant with the purposes of this proclamation or such higher level as the Secretary may determine is required to meet a demand in Puerto Rico for finished products that would not otherwise be met.

2. Effective with respect to the allocation period beginning January 1, 1968 subparagraph (1) of paragraph (b) of section 3 of Proclamation 3279, as amended, is amended to read as follows:

(b) (1) With respect to the allocation 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 (excluding inputs of crude oil or unfinished oils imported pursuant to clause (4) of paragraph (a) of section 1). The Secretary may by regulation also provide for the making of allocations of imports of crude oil and unfinished oils into Districts I-IV and into District V to persons having petrochemical plants in these districts in relation to the outputs of such plants or in relation to inputs to such plants (excluding inputs of crude oil or unfinished oils imported pursuant to clause (4) of paragraph (a) of section 1). Provision may be made in the regulations for the making of such allocations on the basis of graduated scales. Notwithstanding the levels prescribed in section 2 of this proclamation, the Secretary may also by regulation make such provisions as he deems consonant with the objectives of this proclamation for the making of allocations of imports of crude oil and unfinished oils into Districts I-IV and into District V to persons who manufacture from crude oil and unfinished oils (other than crude oil or unfinished oils imported pursuant to clause (4) of paragraph (a) of section 1) and who export finished products and petrochemicals, subject to such designations as the Secretary may make. Provision shall be made in the regulations for the gradual reduction of historical allocations made on the basis of the last allocations of imports of crude oil under the Voluntary Oil Import Program: Provided, That provision shall be made for a more rapid reduction of historical allocations based on allocations made 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: Provided further, That the regulations shall provide that no further reduction shall be made in a historical allocation of the class mentioned in the preceding proviso if the reduction provided for the next allocation period would result in a reduced historical allocation which is smaller than an allocation for the same period would be if computed (for the purposes of comparison only) on the basis of a total of refinery inputs (of the holder of the historical allocation) which includes inputs of crude oil and unfinished oils imported pursuant to clause (4) of paragraph (a) of section 1.

3. Effective with respect to shipments made during the calendar year 1968 from Puerto Rico to District V, subparagraph (2) of paragraph (b) of section 3 of Proclamation 3279, as amended, is amended to read as follows:

(2) Such regulations shall provide for the allocation of imports of crude oil and unfinished oils into Puerto Rico among persons having refinery capacity in Puerto Rico in the calendar year 1964 on the basis of estimated requirements, acceptable to the Secretary, of each such person for crude oil and unfinished oils. The regulations shall provide also that if, during a period comprising the same number of months as an allocation period and ending three months before the beginning of the allocation period, any such person ships to Districts I-IV or to District V unfinished oils or finished products (other than residual fuel oil to be used as fuel) or sells unfinished oils or finished products (other than residual fuel oil to be used as fuel) which are shipped to Districts I-IV or to District V in excess of the volume of unfinished oils or finished products (other than residual fuel oil to be used as fuel) which he so shipped or which he sold and were so shipped during the year 1965, the person's allocation for the next allocation period shall be reduced by the amount of the excess. In addition, the Secretary may provide by regulation for the making, in instances in which the Secretary determines that such action would not impair the accomplishment of the objectives of this proclamation, of allocations of imports of crude oil and unfinished oils into Puerto Rico to persons as feedstocks for facilities which will be established or for the operation of facilities which are established and which in the judgment of the Secretary will promote substantial expansion of employment in Puerto Rico through industrial development, and such regulations shall provide for the imposition of such conditions and restrictions upon such allocations as the Secretary may deem necessary to assure that any imports so allocated are used for the purposes for which an allocation is made and that the holder of such an allocation fulfills commitments made in connection with the making of the allocation.

4. Effective with respect to the allocation period beginning January 1, 1968 a new subparagraph (6), reading as follows, is added to paragraph (b) of section 3 of Proclamation 3279, as amended:

(6) Because of disruptions in petroleum transport and supply resulting from recent actions in the. Middle East, the Secretary is authorized to provide that persons who did not fully utilize licenses to import crude oil and unfinished oils which were issued under allocations made in Districts I-IV and in District V for the allocation period January 1, 1967 through December 31, 1967 may utilize such licenses during the calendar years 1968 and 1969 and that such persons who did not fully utilize licenses to import finished products other than residual fuel oil to be used as fuel which were issued under allocations made in Districts I-IV and in District V for the allocation period January 1, 1967 through December 31, 1967 may utilize such licenses during the calendar year 1968, and notwithstanding the levels established in section 2 of this proclamation, the Secretary is authorized to make such adjustments in allocations of imports of crude oil, unfinished oils, and finished products as he deems necessary.

5. Effective with respect to the allocation period beginning January 1, 1968 paragraph (f) of section 9 of Proclamation 3279, as amended, is amended to read as follows:

(f) "crude oil" means crude petroleum as it is produced at the wellhead 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 and the initial liquid hydrocarbons produced from tar sands.

6. Effective with respect to the allocation period beginning January 1, 1968 a new paragraph (i), reading as follows, is added to section 9 of Proclamation 3279, as amended:

(i) As used in paragraph (g) and paragraph (h) of this section, the term "petroleum oils" includes liquid hydrocarbons derived from crude oil.

In Witness Whereof, I have hereunto set my hand this 29th day of January in the year of our Lord nineteen hundred and sixty-eight, and of the Independence of the United States of America the one hundred and ninety-second.

LYNDON B. JOHNSON