justments under paragraph (5)(d)(1)(iii) of this Standby Regulation for voluntary or mandatory sales under the IEP for that allocation period, where the operations of the refiner making the sale could be adversely affected by reason of the sale and where the refiner could not reasonably forsee the sale so as to have adjusted its estimated crude oil runs to stills accordingly.

(h) Terms and Conditions of Sales. (1) The terms and conditions of each sale, processing agreement, or exchange of crude oil, other than sales prices, shall be consistent with normal business practices.

(2) Sellers shall deliver crude oil purchased pursuant to this Standby Regulation to any refinery designated by the buyer, whether or not it is operated by the buyer; provided, that the buyer (i) has title to the product or products refined from the purchased crude oil when the refining process is completed, or (ii) sells or exchanges such product in accordance with normal business practices.

(3) Crude oil offered for sale must be suitable for processing in the buyer's refinery or the refinery designated by the buyer, provided, that the refinery so designated does not require a significantly higher quality of crude oil than the buyer's own refinery or refineries. Crude oil is deemed to be suitable for processing in a refinery if it has historically been processed in the refinery or if it has the same or similar characteristics as crude oil that has historically been processed in the refinery. A seller may not be required to supply a specific type of crude oil to a buyer's refinery if the crude oil supplied would account for a greater percentage of the refinery's total crude oil runs to stills in the allocation period concerned than was the case with similar or higher quality crude oils during the previous twenty-four month period.

(4) Crude oil offered to a buyer must be practical for delivery to and physically capable of being delivered to the buyer's refinery or a refinery designated by the buyer. The seller and the buyer shall make mutually satisfactory arrangements for the delivery of allocated crude oil to the buyer's refinery or to the designated refinery.

(5) All crude oil except SPR crude oil sold pursuant to this Standby Regulation shall be priced in accordance with the provisions of Standby Regulation 212-1. SPR crude oil shall be priced in accordance with the provisions of § 220.32 of this chapter.

(6) Exchanges of crude oil may be utilized to comply with the purchase and sale provisions of this Standy Regulation.

(7) Sales of SPR crude oil pursuant to this Standby Regulation shall be conducted in accordance with the procedures set forth in Subpart C of Part 220 of this chapter.

(8) The buyer shall be responsible for the transportation, including the cost thereof,

of SPR crude oil from the delivery points specified by DOE to its refinery.

(i) Failure to Negotiate Transactions. (1) Each buyer shall make its best effort to consummate purchases of crude oil under this Standby Regulation from sellers prior to requesting assistance from the ERA. A buyer that is able to demonstrate its inability to consummate a sale despite making such effort may request that the ERA direct one or more sellers to sell a suitable type of crude oil to such buyer. Such a request must be made in accordance with the procedures established under 10 CFR Part 205, Subpart G that were in effect on January 27, 1981, and must be received by the ERA no later than 12 days after the publication of the buy/sell notice for the allocation period for which the assignment of a seller is requested. Such a request must also document the buyer's inability to purchase crude oil from sellers by supplying the following to the ERA:

(i) Name of the buyer and the person authorized to act for the buyer in transactions under this Standby Regulation.

(ii) Names and locations of each refinery for which crude oil has been sought; whether the buyer owns the refinery; the amount of crude sought for each refinery; and the technical specifications and proportions of crude oil that have historically been processed in each refinery.

(iii) Statement of any restrictions, limitations or constraints on the buyer's purchases of crude oil, particularly concerning the manner or time of deliveries.

(iv) Statement describing terms and conditions or processing agreements that the buyer plans to enter into for purposes of having the crude oil refined and the extent to which such processing agreements are consistent with the buyer's normal business practices.

(v) Names and locations of all sellers from which crude oil has been sought under the buy/sell notice and the volume and specifications of the crude oil sought from each seller.

(vi) The response of each seller to which a request to purchase crude oil has been made, and the name and telephone number of the individual contacted at each such seller.

(vii) Such other pertinent information as the ERA may request.

(2) Upon receipt of a request for a directed sale under paragraph (1), the ERA may direct one or more sellers that have not sold their required sales obligations for the allocation period to sell crude oil to the buyer. In directing sellers to make such sales, the ERA shall consider which seller or sellers can best be expected to consummate particular directed sales. If the buyer declines to purchase crude oil from the seller speci

fied by the ERA, the rights of that buyer to purchase that volume of crude oil are forfeited during that allocation period, provided that the seller or sellers have fully complied with the provisions of this Standby Regulation. If the ERA determines that a valid directed sale request cannot reasonably be expected to be consummated by a seller that has not completed all or substantially all of its sales obligation for the allocation period, the ERA may issue one or more directed sales orders that would result in one or more sellers selling more than their published sales obligations for that allocation period.

(j) Coordination with the IEP. (1) An IEPdesignated domestic reporting company that submits a written voluntary offer pursuant to the IEP shall simultaneously transmit a copy of the offer to the ERA if the offer either results in crude oil or petroleum products intended to be imported to the U.S. being rerouted to another country, or results in crude oil being exported from the U.S., or crude oil or petroleum products being rerouted from another country to the U.S.

(2) The DOE will notify the IEA within forty-eight (48) hours of being notified of a voluntary offer as to whether acceptance of such offer by the IEA could impair the operation of the U.S. domestic allocation system.

6. Procedures and reporting requirements. For purposes of this Standby Regulation, the following reports must be made:

(a) Filing. All matters pertaining to the allocation of crude oil and the refinery yield control program shall be addressed to the ERA in accordance with the provisions of 10 CFR section 205.12 that were in effect on January 27, 1981, unless otherwise provided.

(b) Monthly Reports. Not later than the tenth (10th) day of each allocation period, unless ordered otherwise by the Administrator, each firm subject to this Standby Regulation shall file with the ERA a report for each of its refineries which includes (1) a statement of the actual crude oil runs to stills for each refinery for the preceding allocation period and an estimate of its crude oil runs to stills for the next allocation period; (2) a statement of its actual total crude oil supply as defined in paragraph (4) of this Standby Regulation for the preceding allocation period and an estimate of its total crude oil supply for the next allocation period; and (3) a statement of the volume of crude oil (other than crude oil sold pursuant to the provisions of this Standby Regulation) sold during the preceding allocation period and an estimate of such sales for the next allocation period. For the first allocation period, such information must be filed on the date specified by the Administrator.

(c) Transaction Report. Within fortyeight hours of the completion of arrange

ments therefor, each transaction made to comply with this Standby Regulation shall be reported by telephone and confirmed in writing or by telex to the ERA by both the buyer and seller. This report shall identify the seller, the buyer, the refineries to which the crude oil is to be delivered, the volumes of crude oil sold or purchased, and the period over which the delivery is expected to take place.

7. Mandatory refinery yield control program. (a) Purpose. The refinery yield control program is designed to require each refiner to utilize available supplies of crude oil in a manner best suited to ensure adequate production levels of refined petroleum products and residual fuel oil which are or may be in short supply.

(b) Scope. This paragraph applies as specified to the production of refined petroleum products and residual fuel oil from crude oil by each refiner in the United States.

(c) Product Yield Controls. (1) Definitions. As used in this paragraph.

"Base percentage yield" means the ratio, expressed as a percentage, of the total number of barrels of a particular refined petroleum product or residual fuel oil produced by a refiner during a specified base period to the refiner's total crude runs to stills in that base period.

"Base period" means an appropriate historical period determined by the Administrator during which the petroleum product or residual fuel oil was produced by the refiner.

(2) Adjustment of Base Percentage Yield. Whenever a refined petroleum product o residual fuel oil is or will be in short supply. the ERA may direct refiners to adjust their base percentage yield of that product or residual fuel oil in order to increase the relative output of that product or residual fuel oil in short supply. Such directives may require either percentage changes in yields or changes in yields that would permit the refiner(s) to supply a product or residual fuel oil at specified levels. The ERA may direct a refiner or refiners to adjust yields of a particular refined petroleum product or residual fuel oil for a specific refinery or on a geographic or national basis.

(3) Joint Compliance. Upon approval by the ERA, two or more refiners may adjust their base percentage yield of a particular refined petroleum product or residual fuel oil on a pooled basis such that the combined production of that product or residual fuel oil by the two or more refiners would equal the combined production of those refiners if each refiner had separately equalled or exceeded its base percentage yield of that product or residual fuel oil.

(d) Allocation of Crude Oil. The ERA may adjust the quantities of crude oil allocated among refiners pursuant to this Standby

Regulation in a manner designed to ensure desired production levels of refined petroleum products or residual fuel oil in short supply for which an adjusted base percentage yield has been directed. Such adjustments shall be designed to meet the objectives of this Standby Regulation, so that refiners which increase production in excess of their adjusted percentage yield of that product or residual fuel oil, or which decrease production to less than the adjusted percentage yield of that product or residual fuel oil, may be allocated greater or lesser quantities of crude oil during the next allocation period, respectively.

8. Special Allocation Procedures. When the provisions of this Standby Regulation are in effect, the Administrator may order the provisions of §§ 211.62, 211.65 and 211.71 of this Part that were in effect on January 27, 1981 to be effective with the following modifications to paragraphs (c) and (i) of § 211.65 and, in that event, paragraphs 3, 4 (except the definitions of "Administrator," "DOE" and "ERA"), 5, 6 and 7 of this Standby Regulation shall not be in effect:

(a) Paragraph (c) is modified by revising the heading and subparagraph (2) to read as follows:

"(c) Review of eligibility for allocations, adjustments to purchase opportunities, and emergency allocations.

"(2)(i) Notwithstanding any provision of $211.62 or any other provision of this section, upon application at any time by any refiner, the ERA may grant that refiner an emergency allocation for one or more allocation periods, or for part of an allocation period, the effect of which shall be to maintain that refiner's crude oil supplies at a level equivalent to that refiner's supply level for the corresponding period of the previous year; provided, that, such refiner shall be required to demonstrate that it is incurring, or will incur in the allocation period for which the allocation is sought, a significant reduction, due to circumstances over which such refiner reasonably had no control, in its supply of crude oil due directly or indirectly to shortages of crude oil in the world markets. Each application shall contain the information (including documentation where appropriate) necessary for the ERA to determine that the applicant's reduction in crude oil supplies is due to circumstances over which the applicant reasonably had no control. In granting a request of a refiner for an emergency allocation, the ERA may direct one or more refiner-sellers to sell a suitable type of crude oil to such refiner pursuant to paragraph (j) of this section.

"(ii) In the event the ERA grants an emergency allocation to any refiner that is a re

finer-seller under this section, that refinerseller shall be relieved of the appropriate portion of its sales obligation for a period of time as specified by the Administrator and the sales obligation of such refiner-seller so relieved shall be distributed on a pro-rata basis among all remaining refiner-sellers.

"(iii) The ERA may (A) grant an emergency allocation to a refiner under this paragraph, (B) adjust any allocation or sales obligation shown on the buy/sell notice specified in paragraph (g) of this section or (C) issue one or more directed sales orders that would result in one or more refiner-sellers selling more than their published sales obligations for that allocation period pursuant to subparagraph (3) of paragraph (j) of this section, without issuing a supplemental buy/sell notice listing such emergency allocations, adjustments to allocations or increased sales obligations; provided, that, no such directed sale shall increase any refinerseller's sales obligation by more than twenty-five percent (25%) and any such directed sale amounts shall serve to reduce the refiner-seller's obligation in the next allocation period."

(b) Paragraph (i) is modified by revising subparagraph (4) to read as follows:

"(4) All crude oil sold pursuant to this section to refiners other than small refiners shall be priced in accordance with the provisions in standby Regulation 212-1 of Part 212. All crude oil sold pursuant to this section to small refiners whose DOE certified crude oil refining capacity is 50,000 barrels per day or less shall be priced in accordance with the provisions in § 212.94 of this chapter that were in effect on January 27, 1981. With respect to sales of crude oil pursuant to this section to refiners whose DOE certified crude oil refining capacity is greater than 50,000 barrels per day but less than 175,000 barrels per day, the Administrator may determine that either the provisions in § 212.94 of this chapter that were in effect on January 27, 1981 or the provisions in standby Regulation 212-1 of Part 212 shall apply."

(The information collection requirements contained in Standby Regulation 211-1, paragraphs 5(a)(4)(i), 5(i)(1), 6(b), and 6(c) were approved by the Office of Management and Budget under control number 1903-0074)

[46 FR 20512, Apr. 3, 1981, as amended at 46 FR 63209, Dec. 31, 1981]

Subparts B-C-[Reserved]

Subpart D-Producers of Crude Oil 212.78 Tertiary incentive crude oil.

Subparts E-H-[Reserved]

Subpart I-Prenotification and Reporting 212.126 Reports.

212.127 Manner of reporting.

APPENDIX A TO PART 212-STANDBY REGULATIONS

AUTHORITY: Emergency Petroleum Allocation Act of 1973, Pub. L. 93-159, E.O. 11748, 38 FR 33577; Economic Stabilization Act of 1970, as amended, Pub. L. 92-210, 85 Stat. 743; Pub. L. 93-28, 87 Stat. 27; E.O. 11748, 38 FR 33575; Cost of Living Council Order Number 47, FR 24.

Subpart A-General

§ 212.10 General rules.

(a) [Reserved]

(b) No firm (including an individual) may knowingly pay a price for any covered product which exceeds the maximum price at which that product is permitted to be sold to the class of purchaser concerned under this part.

(c) Paragraph (b) of this section does not apply to the purchase of a covered product under circumstances of economic or other coercion in which the purchaser, because of its need for that product, had no reasonable alternative but to pay the unlawful price and he promptly reports the payment of the unlawful price to the Department of Energy.

[40 FR 60037, Dec. 31, 1975, as amended at 46 FR 20516, Apr. 3, 1981]

Subparts B-C-[Reserved]

Subpart D-Producers of Crude Oil

§ 212.78 Tertiary incentive crude oil. Annual prepaid expenses report. By January 31 of each year after 1980,

the project operator with respect to any enhanced oil recovery project for which a report had been filed previously with DOE pursuant to paragraph (h)(2)(i) of this section as that paragraph was in effect on January 27, 1981, shall file with DOE a report in which the operator shall certify to DOE (a) which of the expenses that had been reported previously to DOE pursuant to paragraph (h)(2)(i) of this section as that paragraph was in effect on January 27, 1981, were prepaid expenses; (b) the goods or services for which such expenses had been incurred and paid; (c) the dates on which such goods or services are intended to be used; (d) the dates on which such goods or services actually are used; (e) the identity of each quali fied producer to which such prepaid expenses had been attributed; and (f) the percentage of such prepaid expenses attributed to each such qualified producer. An operator shall file an annual prepaid expenses report each year until it has reported the actual use of all the goods and services for which a prepaid expense had been incurred and paid. For purposes of this paragraph, a prepaid expense is an expense for any injectant or fuel used after September 30, 1981, or an expense for any other item to the extent that IRS would allocate the deductions (including depreciation) for that item to the period after September 30, 1981.

(Approved by the Office of Management and Budget under OMB Control No.: 19030069)

[46 FR 43654, Aug. 31, 1981, as amended at 46 FR 63209, Dec. 31, 1981]

Subparts E-H-[Reserved]

Subpart I-Prenotification and Reporting

§ 212.126 Reports.

(a)-(c) [Reserved]

(d)(1) Resubmissions and refiling of reports by refiners. A refiner shall exercise due care and diligence in the preparation of cost allocation reports filed pursuant to this section. DOE will routinely accept resubmissions or

refiling of such reports only within one year after the original filing or submission. Any entry contained in an otherwise timely report which purports to change or adjust retroactively an entry or allocation contained in a report previously filed or submitted shall be considered a refiling or resubmission for purposes of this paragraph and will not be given force or effect absent compliance with the provisions of this paragraph.

(2) Exceptions. Notwithstanding the provisions of paragraph (d)(1) of this section, a refiner may resubmit or refile reports until June 1, 1979, for months of measurement beginning with September 1973; where expressly authorized by DOE regulation or order; or where DOE grants written permission to resubmit or refile for good cause shown.

(3) Applications to resubmit or refile. In any application for permission to resubmit or refile a report pursuant to paragraph (d)(2) of this section, DOE will not make a finding of good cause routinely. Where it appears that such a finding may adversely affect the interest of the consuming public, a firm must demonstrate in its application, at a minimum, that the claimed errors or omissions in the report or reports which the firm seeks to replace or modify did not result from a failure to exercise due care and diligence. Firms must apply for permission pursuant to paragraph (d)(2) of this section, in writing, to the DOE Office of Special Counsel for Compliance or Office of Enforcement, as appropriate. Applications to resubmit or refile must be accompanied by a written statement completely describing the proposed adjustments and the reasons therefor, and a numerical schedule which reflects both the previously submitted figures and the proposed adjusted figures. The appropriate DOE Office will dispose of each application in writing, with a concise statement of the reasons for granting or denying the application. The disposition of such an application shall be subject to appeal as an order under subpart H of part 205. (Emergency Petroleum Allocation Act of 1973, Pub. L. 93-159, as amended, Pub. L. 93-511, Pub. L. 94-99, Pub. L. 94-133, Pub. L. 94-163, and Pub. L. 94-385; Federal Energy

Administration Act of 1974, Pub. L. 93-275, as amended, Pub. L. 94-332, Pub. L. 94-385, Pub. L. 95-70, and Pub. L. 95-91; Energy Policy and Conservation Act, Pub. L. 94-163, as amended, Pub. L. 94-385, and Pub. L. 9570; Department of Energy Organization Act, Pub. L. 95-91; E.O. 12009, 42 FR 46267) [39 FR 1949, Jan. 15, 1974, as amended at 39 FR 7582, Feb. 27, 1974; 44 FR 14536, Mar. 13, 1979; 46 FR 20516, Apr. 3, 1981]

STANDBY REGULATION 212-1-MANDATORY ALLOCATED CRUDE OIL PRICING RULES

1. Scope. This Standby Regulation sets forth the rules for pricing of crude oil subject to the DOE's Standby Mandatory Crude Oil Allocation and Refinery Yield Control Programs.

2. Applicability. (a) This Standby Regulation is effective beginning on the day when Standby Regulation 211-1 becomes effective pursuant to paragraph 2(a) thereof.

(b) If the exemption in paragraph 3(a) of Standby Regulation 211-1 is applicable, the provisions in § 212.94 of this Part that were in effect on January 27, 1981 shall apply to sales of crude oil pursuant to Standby Regulation 211-1 to small refiners whose DOE certified crude oil refining capacity is 50,000 barrels per day or less. With respect to sales of crude oil pursuant to Standby Regulation 211-1 to refiners whose DOE certified refining capacity is greater than 50,000 barrels per day but less than 175,000 barrels per day, the Administrator may determine that either the provisions in section 212.94 of this Part that were in effect on January 27, 1981 or the provisions in this Standby Regulation shall apply.

(c) This Standby Regulation terminates when Standby Regulation 211-1 terminates. 3. (a) Definitions. For the purpose of this Standby Regulation all terms shall have the same meaning as they had for the provisions of 10 CFR section 211.65 that were in