Compilation of energy-related legislation

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Title:
Compilation of energy-related legislation
Physical Description:
4 v. : ; 24 cm.
Language:
English
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United States
United States -- Congress. -- House. -- Committee on Interstate and Foreign Commerce
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U.S. Govt. Print. Off.
Place of Publication:
Washington
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Subjects / Keywords:
Power resources -- Law and legislation -- United States   ( lcsh )
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federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
At head of title: 96th Congress, 1st session. Committee print. Committee print 96-IFC 26-96-IFC-29
General Note:
Aug. 1979.
Statement of Responsibility:
prepared by the staff, Committee on Interstate and Foreign Commerce, U.S. House of Representatives.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 026932793
oclc - 05990075
System ID:
AA00024904:00001

Full Text




C4 XTE PRINTTE
I{ PRINT 96-IFC 26







... .
CMIAION OF ENERGY-RE A
LEGISLATION



SI-OIL, GAS, AND C



PRPARED BY THE STAFF
COMMITTEE ON INTERSTATE AND
FEIGN COMMERCE
U.S HUS OF REPRESENTATIVES










A EUT 1979
i f





Is









96th Congress} COMMITTEE PRINT J COMMITTEE
1st Session j I PRINT 9-IFC 26







COMPILATION OF ENERGY-RELATED
LEGISLATION




VOLUME I-OIL, GAS, AND COAL




PREPARED BY THE STAFF

COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE

U.S. HOUSE OF REPRESENTATIVES










AUGUST 1979





U.S. GOVERNMENT PRINTING OFFICE 43-0680 WASHINGTON : 1979

For sale by the Superintendent of Documents. U.S. Government Printing Office Washington, D.C. 20402



























COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
HARLEY 0. STAGGERS, West Virginia, Chairman
JOHN D. DINGELL, Michigan JAMES T. BROYHILL, North Carolina
LIONEL VAN DEERLIN, California SAMUEL L. DEVINE, Ohio JOHN M. MURPHY, New York TIM LEE CARTER, Kentucky
DAVID E. SATTERFIELD III, Virginia CLARENCE J. BROWN, Ohio BOB ECKHARDT, Texas JAMES M. COLLINS. Texas
RICHARDSON PREYER, North Carolina NORMAN F. LENT, New York JAMES H. SCHEUER, New York EDWARD R. MADIGAN, Illinois
RICHARD L. OTTINGER, New York CARLOS J. MOORHEAD, California
HENRY A. WAXMAN, California MATTHEW J. RINALDO, New Jersey
TIMOTHY E. WIRTH, Colorado DAVE STOCKMAN, Michigan
PHILIP R. SHARP, Indiana MARC L. MARKS, Pennsylvania
JAMES J. FLORIO, New Jersey TOM CORCORAN, Illinois
ANTHONY TOBY MOFFETT, Connecticut GARY A. LEE, New York JIM SANTINI, Nevada TOM LOEFFLER, Texas
ANDREW MAGUIRE, New Jersey WILLIAM E. DANNEMEYER, California
MARTY RUSSO, Illinois
EDWARD J. MARKEY, Massachusetts THOMAS A. LUKEN, Ohio
DOUG WALGREN, Pennsylvania ALBERT GORE, JR., Tennessee BARBARA A. MIKULSKI, Maryland RONALD M. MOTTL, Ohio
PHIL GRAMM, Texas
AL SWIFT, Washington
MICKEY LELAND, Texas
RICHARD C. SHELBY, Alabama KENNETH J. PAINTER, Acting Clerk ELEANOR A. DINKINs, Assistant Clerk LEWIS E. BERRY, Minority Counsel

(II)














CONTENTS



VOLUME I-OIL, GAS, AND COAL

PART A-OIL
page
Emergency Petroleum Allocation Act of 1973-------------------------- 5
Economic Stabilization Act of 1970 (certain provisions) ------------------27
Trans-Alaska Oil Pipeline ------------------------------------------ 37
Petroleum M~arketing Practices Act ---------------------------------- 59
Crude Oil Transportation Systems (title V of Public Law 95-617) ---------79

PART B-GAS
Natural Gas Act ------------------------------------------------- 91
Natural Gas Pipeline Safety Act of 1968 ----------------------------- 119
Alaska Natural Gas Transportation Act of 1976 ----------------------- 135
Natural Gas Policy Act of 1978------------------------------------- 151
Miscellaneous gas provisions (sec. 605-608 of Public Law 95-6 17)-----215

PART C-COAL
Powerplant and Industrial Fuel Use Act of 1978 ----------------------- 227

VOLUME II-ELECTRIC AND NUCLEAR

PART A-ELECTRIC
Federal Power Act------------------------------------------------- 5
Public Utility Holding Company Act of 1935-------------------------- 77
Public Utility Regulatory Policies Act of 1978.------------------------ 119

PART B-NUCLEAR
Atomic Energy Act of 1954 ---------------------------------------- 161
Uranium Radiation Exposure Remedial Action (Public Law 92-3 14)-------263 Uranium Mill Tailings Control Act of 1978 --------------------------- 266

VOLUME III-ENERGY CONSERVATION, ORGANIZATION, AND RELATED MATTERS

PART A-CONSERVATION AND RELATED MATTERS
Energy Policy and Conservation Act --------------------------------- 5
Energy Conservation and Production Act----------------------------- 159
National Energy Conservation Pclicy Act ---------------------------- 207
National Energy Extension Service Act ------------------------------ 279
Energy Supply and Environmental Coordination Act of 1974 -------------295

PART B-ADMINISTRATION AND ORGANIZATION
Federal Energy Administration Act of 1974--------------------------- 321
Energy Reorganization Act of 1974---------------------------------- 351
Department of Energy Organization Act ----------------------------- 381
(111)





TV

VOLUME IV-SELECTED APPROPRIATION AUTHORIZATIONS AND OTHER LEGISLATION

PART A-SELECTED ENERGY APPROPRIATION AUTHORIZATIONS
Page
Federal Energy Administration Authorization Act of 1977 -----------------5
Nuclear Regulatory Commission Authorization of Appropriations for Fiscal Year 1979------------------------------------------------------ 13

PART B-SELECTED ENERGY-RELATED LEGISLATION
Federal Nonnuclear Energy Research and Development Act of 1974- 25 Energy Tax Act of 1978-------------------------------------------- 65
Outer Continental Shelf Lands Act ------------------------------------99

APPENDIX
National Environmental Policy Act of 1969 ----------------------------149
Title 5-Administrative Procedure----------------------------------- 157
Section 1905 of title 18, United States Code ----------------------------190






























PART A-OIL





(1)




















Digitized by the Internet Archive
in 2013














http://archive.org/details/compieneOOu nit





























EMERGENCY PETROLEUM ALLOCATION ACT OF 19'73














EMERGENCY PETROLEUM ALLOCATION ACT OF 1973
Public Law 93-159
93d Congress, S. 1570
November 27, 1973
AN ACT To authorize and require the President of the United States to allocate crude oil, residual fuel oil, and refined petroleum products to deal with existing or imminent shortages and dislocations in the national distribution system which jeopardize the public health, safety, or welfare; to provide for the delegation of authority; and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of Avwica in Congress assembled, That this Act may be cited as the "Emergency Petroleum Allocation Act of 1973".
FINDINGS AND PURPOSE
SEc. 2. (a) The Congress hereby determines that(1) shortages of crude oil, residual fuel oil, and refined petroleum products caused by inadequate domestic production, environmental constraints, and the unavailability of imports suf ficient to satisfy domestic demand, now exist or are imminent;
(2) such shortages have created or will create severe economic
dislocations and hardships, including loss of jobs, closing of f actories and businesses, reduction of cropylantings and harvesting, and curtailment of-- vital public services, including the transportation of food and other essential goods; and
(3) such hardships and dislocations jeopardize the normal
flow of commerce and constitute a national energy crisis -which is a threat to the public health, safety, and welf are and can be averted or minimized most efficiently and effectively through
prompt action by the Executive branch of Government.
(b) The purpose of this Act is to grant the President of the United States and direct him to exercise specific temporary authority to deal with shortages of crude oil, residual fuel oil, and refined petroleum products or dislocations in their national distribution system. The authority granted under this Act shall be exercised for the purpose of minimizing the adverse impacts of such shortages or dislocations on the American people and the domestic economy.

DEFINMONS
SEc. 3. For purposes of this Act:
(1) The term "branded independent marketer" means a person who is engaged in the marketing or distributing of refined
petroleum products pursuant to.(A) an agreement or contract with a refiner (or a person
who controls, is controlled by, or is under common control





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with such refiner) to use a trademark, trade name, service mark, or other identifying symbol or name owned by such
refiner (or any such person), or
(B) an agreement or contract under which any such person
engaged in the marketing or distributing of refined petroleum products is granted authority to occupy premises owned, leased, or in any way controlled by a refiner (or person who controls, is controlled by, or is under common control with
such refiner),
but who is not affiliated with, controlled by, or under common control with any refiner (other than by means of a supply contract, or an agreement or contract described in subparagraph
(A) or (B) ), and who does not control such refiner.
(2) The term "nonbranded independent marketer" means a
person who is engaged in the marketing or distributing of refined petroleum products, but who (A) is not a refiner, (B) is not a person who controls, is controlled by, is under common control with, or is affiliated with a refiner (other than by means of a supply contract), and (C) is not a branded independent marketer.
(3) The term "independent refiner" means a refiner who (A)
obtained, directly or indirectly, in the calendar quarter which ended immediately prior to the date of enactment of this Act, more than 70 per centum of his refinery input of domestic crude oil (or 70 per centum of his refinery input of domestic and imported crude oil) from producers who do not control, are not controlled by, and are not under common control with, such refiner, and (B) marketed or distributed in such quarter and continues to market or distribute a substantial volume of gasoline refined by him through branded independent marketers or nonbranded independent marketers.
(4) The term "small refiner" means a refiner whose total refinery capacity includingr the refinery capacity of any person who controls, is controlled by, or is under common control with such
refiner) does not exceed 175,000 barrels per day.
(5) The term "refined petroleum product" means szasoline,
kerosene, dlistillates (including Number 2 fuel oil), LPG, refined
lubricating oils, or diesel fuel.'
(6) The term "LPG" means propane and butane, but not
ethane.
(7) The term "U~nited States" when used in the geographic
sense means the States, the District of Columbia. Puerto Rico,
and the territories and possessions of the United States.

MANDATORY ALLOCATION
Src. 4. (a) Not later than fifteen days after the date of enactment of this Act, the President shall promulgate a regulation providing for the nianclatory allocation of crude oil, residual fuel oil, and each refined petroleum product, in amounts specified in (or determined in a manner prescribed by) and at prices specified in (or determined in a mannerTprescribed by) such regulation. Subject to subsection (d), such regulation shall take effect not later than fifteen days after its promulgation. Such regulation shall apply to all crude oil, residual





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fuel oil, and refined petroleum products produced in or imported into the United States.
(b) (1) The regulation under subsection (a), to the maximum extent practicable, shall provide for(A) protection of public health (including the production of
pharmaceuticals), safety and welfare (including maintenance of residential heating, such as individual homes, apartments and
similar occupied dwelling units), and the national defense;
(B) maintenance of all public services (including facilities and
services provided by municipally, cooperatively, or investorowned utilities or by any State or local government or authority, and including transportation facilities and services which serve the
public at large) ;
(C) maintenance of agricultural operations, including farming,
ranching, dairy, and fishing activities, and service directly related
thereto;
(D) preservation of an economically sound and competitive petroleum industry; including the priority needs to restore and foster competition in the producing, refining, distribution, marketing, and petrochemical sectors of such industry, and to preserve the competitive viability of independent refiners, small refiners, nonbranded independent marketers, and branded independent
marketers;
(E) the allocation of suitable types, grades, and quality of
crude oil to refineries in the United States to permit such refineries to operate at full capacity;
(F) equitable distribution of crude oil, residual f uel oil, and
refined petroleum products at equitable prices among all regions and areas of the United States and sectors of the petroleum industry, including independent refiners, small refiners, nonbranded independent marketers, branded independent marketers and
among all users;
(G) allocation of residual fuel oil and refined petroleum
products in such amounts and in such manner as may be necessary for the maintenance of exploration for, and production or extraction of(i) fuels, and
(ii) minerals essential to the requirements of the United
States,
and for required transportation related thereto;
(H) economic efficiency; and
(I) minimization of economic distortion, inflexibility, and unnecessary interference with market mechanisms.
(2) In specifying prices (or prescribing the manner for determining them), the regulation under subsection (a)
(A) shall provide for a dollar- for- dollar passthrough of net increases in the cost of crude oil, residual fuel oil, and refined petroleum products at all levels of distribution from the producer
through the retail level;
(B) (i) shall not permit any net crude oil cost increases(I) which are incurred by a refiner during the calendar
month immediately preceding the effective date of this paragraph, or in any month thereafter, and





8

(II) which are not passed through in prices charged pursuant to such regulation in the 2 calendar months following the calendar month in which such crude oil cost increases
were incurred,
to be passed through by such refiner in any month subsequent to the 2 calendar months following the calendar month in which such crude oil cost increases were incurred, unless the President makes the findings specified in clause (ii) (11) (aa), and such passthrough is consistent with the requirements specified in clause (ii) (II)
(bb).
(ii) shall not permit the passthrough in any month ofJ) any net crude oil cost increases incurred by a refiner
not later than the last day of the calendar month which begins two months prior to the effective date of this para graph and not passed through by the end of the last calendar month prior to the effective date of this paragraph unless such passthrough is not in excess of 10 percent of the total amount of such increased crude oil costs not passed throu. rh as of the last day of the last calendar month prior to the effective date
of the amendment promulgated under section 8 (a) ; and
(II) any net crude oil cost increases incurred by a refiner after the effective date of this paragraph, which net crude oil cost increases were not passed through within the 2 calendar months following the calendar month in which
such crude oil cost increases were incurred, unless
(aa) the President finds, and reports to the Congress
with respect to such finding, that a passthrough of such crude oil cost increases is necessary to alleviate the impact on refiners, marketers, or consumers of significant increases in costs, to provide for equitable cost recovery consistent with the attainment, to the maximum extent practicable, of the objectives specified in paragraph (1),
or to avoid competitive disadvantage; and
(bb) such passthrough in any month of such crude
oil cost increases is not in excess of 10 percent of the total amount of such crude oil cost increases as of the end of the calendar month in which the effective date of
this par,uzraph occurs or any month thereafter*,
(C) shall provide for the use of the, same date in the computation of markup, margin, and posted price for all marketers or distributors of crude oil, residual fuel, and refined petroleum products at all levels of marketing and distribution; and
(D) shall not permit more than a direct proportionate distribution (by volume) to Number 2 oils (Number 2 heating oil and Number 2-D diesel fuel), aviation fuel of a kerosene or naphtha type, and propane produced from crude oil, of any increased costs of crude oil incurred by a refiner; except that the President may, by amendment to the regulation under subsection (a) or by order, permit deviation from such proportionate distribution of costs, if the President finds that refinery operations justify such deviation and further finds that to permit such deviation is consistent with the attainment of the objectives in paragraph (1) and would not result in inequitable prices for any class of users of such product.





9

As used in this paragraph, the term "effective date cl this paragraph" means the effective date specified in section 402 (b) of the Energy Policy and Conservation Act.
(3) The President in promulgating the regulation under subsection
(a) shall give consideration to allocating crude oil, residual fuel oil, and refined petroleum products in a manner which results in making available crude oil, residual fuel oil, or refined petroleum products to any person whose use of fuels other than crude oil, residual fuel oil, and refined petroleum products has been curtailed by, or pursuant to a plan filed in compliance with, a rifle or order of a Federal or State agency, or where such person's supply of such other fuels is unobtainable by reason of an abandonment of service permitted or ordered by a Federal or State agency.
(c) (1) To the extent practicable and consistent with the objectives of subsection (b), the mandatory allocation program established under the regulation under subsection (a) shall be so structured as to result in the allocation, during each period during which the regulation applies, of each refined petroleum product to each branded independent marketer, each nonbranded independent marketer, each small refiner and each independent refiner, and of crude oil to each small refiner and each independent refiner, in an amount not less than the amount sold or otherwise supplied to such marketer or refiner during the corresponding period of 1972, adjusted to provide(A) in the case of refined petroleum products, a pro rata reduction in the amount allocated to each person engaged in the marketing or distribution of a refined petroleum product if the ag 2fregate amount of such product produced in and imported into the United States is less than the aggregate amount produced and imported
in calendar year 1972; and
(B) in the case of crude oil, a pro rata reduction in the amount
of crude oil allocated to each refiner if the aggregate amount produced in and imported into the United States is less than the aggregate amount produced and imported in calendar year 1972.
(2) (A) The President shall report to the Congress monthly, be i
ning not later than January 1, 1974, with respect to any change after calendar year 1972 in
(i) the aggregate share of nonbranded independent marketers, (ii) the aggregate share of branded independent marketers,
and
Gii) the agare(yate share of other persons engaged in the
marketing or distributing of refined petroleum products,
of the national market or the regional market in any refined petroleum product (as such regional markets shall be determined by the President). zn
(B) If allocation of any increase of the amount of any refined petroleum product produced in or imported into the United States in excess of the amount produced or imported in calendar year 1972 contributes to a significant increase in any market share described in clause (i),
(ii), or (iii) of subparagraph (A), the President shall by order require an equitable adjustment in allocations of such product under the regulation under subsection (a).
(3) The President shall. by order, require such adjustments in the allocations of crude oil, residual fuel oil, and refined petroleum prod-





10

ducts established under the regulation under subsection (a) as may reasonably be necessary (A) to accomplish the objectives of subsection
(b), or (B) to prevent any person from taking any action which would be inconsistent with such objectives.
(4) The President may, by order, require, such adjustments in the allocations of refined petroleum products and crude oil established under the regulation under subsection (a) as he determines may reasonably be necessary(A) in the case of refined petroleum products (i) to take into
consideration market entry by branded independent marketers and nonbranded independent marketers during or subsequent to calendar year 1972, or (ii) to take into consideration expansion or reduction of marketing or distribution facilities of such marketers
during or subsequent to calendar year 1972, and
(B) in the case of crude oil (i) to take into consideration
market entry by independent refiners and small refiners during or subsequent to calendar year 1972, or (ii) to take into consideration expansion or reduction of refining facilities of such refiners
during or subsequent to calendar year 1972.
Any adjustments made under this paragraph may be made only upon a finding that, to the maximum extent practicable, the objectives of subsection (b) of this section are attained.
(5) To the extent practicable and consistent with the objectives of subsection (b), the mandatory allocation program established under the regulation under subsection (a) shall not provide for allocation of LPG in a manner which denies LPG to any industrial user if no substitute for LPG is available for use by such industrial user.
(d) (1) 'The provisions of the regulation under subsection (a) respecting allocation of gasoline need not take effect until thirty days after the promulgation of such regulation, except that the provisions of such regulation respecting price of gasoline shall take effect not later than fifteen days after its promulgation.
(2) If(A) an order or regulation under section 203 (a) (3) of the
Economic Stabilization Act of 1970 applies to crude oil, residual fuel oil, or a refined petroleum product and has taken effect on or before the fifteenth day after the date of enactment of this Act,
and
(B) the President determines that delay in the effective date
of provisions of the regulation under subsection (a) relating to such oil or product is in the public interest and is necessary to effectuate the transition from the program under such section 203 (a) (3) to the mandatory allocation program required under this
Actl
he may in the regulation promulgated under subsection (a) of this section delay, until not later than thirty days after the date of the promulgation of the regulation, the effective date of the provisions of such regulation insofar as they relate to such oil or product. At the same time the President promulgates such regulation, he shall report to Congress setting forth his reasons for the action under this paragraph.
(e) Any provision of the regulation under subsection (a) of this section-





11

(1) which requires the purchase of entitlements, or the payment of money through any other similar cash transfer arrangement, the purpose of which is to reduce disparities in the crude oil
acquisition costs of domestic refiners, and
(2) which is based upon the number of barrels of crude oil
input, or receipts, or both, of any refiner,
shall not apply to the first 50,000 barrels per day of input, or receipts,
of any refiner whose total refining capacity (including the refining capacity of any person who controls, is controlled by, or is under common control with such refiner) did not exceed on January 1, 1975, and does not thereafter exceed 100,000 barrels per day. The preceding sentence shall not affect any provisions of the regulation under subsection (a) of this section with respect to the receipt by any small refiner as defined in section 3 (4) of payments for entitlements or any other similar cash transfer arrangement.
ADMINISTRATION AND ENFORCEMENT
SEC. 5. (a) (1) Except as provided in paragraph (2), (A) sections 205 through 207 and sections 209 through 211 of the Economic Stabilization Act of 1970 (as in effect on the date of enactment of this Act) shall apply to the regulation promulgated under section 4 (a), to any order under this Act, and to any action taken by the President (or his delegate) under this Act, as if such regulation had been promulgated, such order had been issued, or such action had been taken under the Economic Stabilization Act of 1970; and (B) section 212 (other than 212 (b) ) and 213 of such Act shall apply to functions under this Act to the same extent such sections apply to functions under the Economic Stabilization Act of 1970.
(2) The expiration of authority to issue and enforce orders an d regulations under section 218 of such Act shall not affect any authority to amend and enforce the regulation or to issue and enforce any order under this Act, and shall not effect any authority under sections 212 and 213 insofar as such authority is made applicable to functions under this Act.
(b) The President may delegate all or any portion of the authority granted to Hm under this Act to such officers, departments, or agencies of the United States, or to any State (or' officer thereof), as he deems appropriate.
(3) (A) Whoever violates any provision of the regulation under section 4 (a) of this Act, or any order under this Act shall be subject to a civil penaltyG) with respect to activities relating to the production, distribution. or refining of crude oil, of not more than $20,000 for each
violation;
(ii) with resT)ect to activities relating to the distribution of
residual fuel oil or any refined petroleum prodtict (other than activities entirely at the retail level), of not more than, $10,000 for
each violation; and
(iii) with respect to activities
(I) entirely relating to the distribution of residiial fuel oil
or any refined petroleum product at the retail level, or
JI) activities not referred to in clause (i) or (ii) of subclause J) of this clause, of not more than $2,500 for each
violation.





12

(B) Whoever willfully violates any provision of such regulation, or any such order shall be imprisoned not more than 1 year, or(i) with respect to activities relating to the production or refining of crude oil, shall be fined not more than $40,000 for each
violation;
(ii) with respect to activities relating to the distribution of
residual fuel oil or any refined petroleum product (other than at the retail level), shall be fined not more than $20,000 for each
violation;
(iii) with respect to activities relating to the distribution of
residual fuel oil or any refined petroleum product at the retail level or any other person shall be fined not more than $10,000 for
each violation;
or both.
(4) Any individual director, officer, or agent of a corporation who knowingly and willfully authorizes, orders, or performs any of the acts or practices constituting in whole or in part a violation of paragraph (3). shall be subject to penalties under this Subsection without regard to any penalties to which that corporation may be subject under paragraph (3) except that no such individual director, officer, or acrent shall be subject to imprisonment under paragraph (3), unless he also has knowledge, or reasonably should have known, of notice of noncompliance received by the corporation from the President.

EFFECT ON OTHER LAWS AND ACTIONS TAKEN THEREUNDER
SEC. 6. (a) All actions duly taken pursuant to clause (3) of the first sentence of section 203 (a) of the Economic Stabilization Act of 1970 in effect immediately prior to the effective date of the regulation promulgated under section 4 (a) of this Act, shall continue in effect until modified pursuant to this Act.
(b) The regulation under section 4 and any order issued thereunder shall preempt any provisions of any program for the allocation of crude oil, residual fuel oil, or any refined petroleum product established by any State or local government if such provision is in conflict with such regulation or any such order.
(c) There shall be available as a defense to any action brought for breach of contract in any Federal or State court arising out of delay or f ailure to provide, sell, or offer for sale or exchange crude oil, residual fuel oil. or any refined petroleum product. that such delay or failure was caused solely by compliance with the provisions of this Act~ or with the regulation or any order under this Act.

.MONITORING BY FEDERAL TRADE COMMISSION
SEC. 7. (a) During the forty-five day period beginning on the effective date on which the i'e~ulation. under section 4 first takes effect, the Federal Trade Commission sball monitor the nrogrsm established un-der such regulation: and. not later than sixty days after such effective date, shall report to the President and to the Congress respecting the effectiveness of this Act and actions taken pursuant thereto.
(b) For purposes of carrying out this section. the Federal Trade Commission's authority, under sections 6, 9, and 10 of the Federal





13

Trade Commission Act to gather and compile information and to require furnishing of information, shall extend to any individual or partnership, and to any common carrier subject to the Acts to regulate commerce (as such Acts are defined in section 4 of the Federal Trade Commission Act).
OIL PRICING POLICY
SEC. 8. (a) Not later than the first day of the second full calendar month following the date of enactment of this section, the President shall promulgate and make effective an amendment to the regulation under section 4(a) of this Act which regulation, as amended, shall establish ceiling prices (or the manner of determining ceiling prices) applicable to any first sale of crude oil produced in the United States, such that the resulting actual weighted average first sale price for all such crude oil during such calendar month and each of the 39 months thereafter shall not exceed a maximum of $7.66 per barrel (hereinafter in this section referred to as the "maximum weighted average first sale price"), except as may be adjusted pursuant to this section.
(b) (1) The regulation under section 4 (a), as amended pursuant to subsection (a) of this section or by any subsequent amendment thereto, may, subject to the limitations related to the maximum weighted average first sale price and other requirements of this section, provide for different ceiling prices (or manner of determining ceiling prices) for different classifications of crude oil produced in the United States. In providing for different ceiling prices (or the manner for determining such ceiling prices) and classifications for such crude oil, the President shall determine that such ceiling prices (or the manner for determining such ceiling prices) and such classifications(A) are administratively feasible; and
(B) are justified on the basis that such prices and such classifications are consistent with obtaining optimum production of crude
oil in the United States.
(2) No amendment to the regulation under section 4 (a) made after the date of enactment of this section may permit, in any month which begins after such date, an increase in the price for any volume of old crude oil production from any priorities, unless the President finds that such amendment
(A) will give positive incentives for (i) enhanced recovery
techniques, or (ii) deep horizon development, from such properties or
(B) is necessary to take into account declining production from
such properties; and
(C) is likely to result in a level of production from such properties beyond that which would otherwise occur if no such amendment were made.
(3) As used in paragraph (2), the term "old crude oil production" means that volume of crude oil produced and sold from a property in a month which is equal to or less than the volume of old crude oil, as defined in section 212.72 of title 10, Code of Federal Regulations (as in effect on November 1, 1975), produced and sold from such property in the months of September, October, and November of 1975, divided by 3.
(c) (1) Not later than 6 nionthsafter the effective date of the amendment promulgated under subsection (a), and not later than every 6
43-068 0 79 2





14

months thereafter, the President shall, on the basis of valid and reliable information (which may include. information obtained bya valid and reliable sampling technique) of actual first sale prices of domestic crude oil, determine whether and the extent to which the actual weighted average first sale price for crude oil produced in the United States during any 6-month period or portion thereof for which data are available following the effective date of the amendment promulgated under subsection (a) of this section, exceeded or was less than the maximum weighted average first sale price of such crude oil specified in subsection (a) as may be adjusted pursuant to this section.
(2) If the President finds, pursuant to paragraph (1) of this subsection, that the regulation under section 4(a), as amended, resulted in an actual weighted average first sale price in excess of the maximum weighted average first sale price specified in subsection (a) as adjusted pursuant to this section, he shall amend the regulation to make such compensating adjustments as are necessary to result, in a corresponding period, in an actual weighted average first sale price for domestic crude oil sufficient to offset such excess.
(3) If the President finds, pursuant to paragraph (1) of this subsection, that the regulation under section 4 (a), as amended, resulted in an actual weighted average first sale price less than the maximum weighted average first sale price specified in subsection (a) as adjusted pursuant to this section, he may, notwithstanding the requirements of this section pertaining to such maximum weighted average first sale price, amend the regulation to make such compensating adjustments in the regulation as are necessary to offset the deficiency in a corresponding period.
(d) (1) The amendment promulgated pursuant to subsection (a) of this section (or any subsequent amendment to the regulation under section 4(a)) may provide for an adjustment to the maximum weighted average first sale price specified in subsection (a), such adjustment to begin no earlier than in the calendar month following the first month the amendment is in effect(A) to tal%-.e into account the impact of inflation as measured by
theadjusted GNP deflator; and
(B) as a production incentive;
except that the combined effect of any such adjustments referred to in subparagraphs (A) and (B) shall not result in an increase in the maximum weighted average first sale price in excess of 10 per centum. per annum. (compounded annually), unless modified pursuant to this section.
(2) As used in this subsection, the term "adjusted GNP deflator" means the first revision of the quarterly percent change, seasonally adjusted at annual rates, of the most recent im. plicit price deflator for the gross national product which shall be computed and published for each calendar quarter by the Department of Commerce, subject to such additional modification as 6e President sl)all make to exclude therefrom any amount wl)ich he determines is attributable solelv and directly to increases which occur after the date of enactment f this section in prices of imported crude oil, residual fuel oil., or any refined petroleum product resulting from concerted action of two or more petroleum exporting countries.





15

(3) The adjustment as a production incentive referred to in paragraph (1) (B) may be made only on a finding by the President that such an adjustment is likely to provide positive incentive for(A) the discovery or development of high cost and high risk
properties (including new wildcat properties, and properties located on the Outer Continental Shelf, properties located north of the Arctic Circle, deep wells and deep horizons in onshore or offshore properties, and properties operated by independent
producers) ;
(B) the application of enhanced recovery techniques to producing properties to obtain a level of production bigger than would otherwise occur from those properties but for such adjustment; or
(C) sustaining Droduction from marginal wells.
(e) (1) Not earlier than 90 days after the effective date of the amendment promulgated under subsection (a) and not earlier than 90 days after the date of any previous submission under this subsection, the President may submit to the Congress, in accordance with the procedures specified in section 5.51 of the Energy Policy and Conservation Act, an amendment to the regulation promulgated under section 4 (a) which provides for a, combined adj ustment limitation in excess of the 10 per centum limitation specified in subsection (d) (1).
(2) Any such amendment shall be accompanied by a finding that a combined adjustment limitation greater than permitted by subsection (d) (1) is necessary to provide. a. more adequate incentive with respect to the matters referred to in subparagraph (A), (B), or (C) of subsection (d) (3).
(3) Any such amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act.
(f) (1) On February 15, 1977, the President shall submit to the Congress a report containing an analysis of the impact of any amendment adopted pursuant to this section on the economy and on the supply of crude oil, residual fuel oil, and refined petroleum products and an analysis of the effects on price and the production of domestic crude oil resulting from the amendments made to this section by sections 121 and 122 of the Energy Conservation and Production Act.
(2) On March 15,1977, the President may submit with such report to the Congress, in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act, an amendment to the regulation promulgated under section 4 (a) which(A) provides for the continuation of the adjustment as a production incentive (referred to in subsection (d)) ;
(B) provides for a modification of the combined adjustment
limitation (referred to in subsection (d) as may have been
amended pursuant to subsection (e) ) ; or
(C) provides for adjustments with respect to both subparagraphs (A) and (B).
(3) Such amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act.





16

(4) If any such amendment is disapproved by either House of Congress, the President may, not later than 30 days after the date of such disapproval, submit one additional amendment in accordance with paragraph (2), which amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act.
(5) If no amendment to continue the adjustment as a pTduction incentive takes effect, no such adjustment to the maximum weighted average first sale price thereafter may be taken into account in computing such price for any month which begins after
(A) the date on which a submission could have been made under paragraph (2) but was not, or (B) the last date on which a submission was disapproved and no further submission pursuant to paragraph (4) could be made, except that the President may, pursuant to the procedures under subsection (e), submit an amendment to the regulation to provide for a prospective reinstatement of such adjustment.
(g) (1) On April 15, 1977, the President shall submit to the Congress a report as to whether the regulation promulgated under section 4(a) and in effect on such date will provide positive price incentives for the development of the domestic crude -oil production referred to in paragraph (2) (A) without lessening needed incentives for sustaining or enhancing crude oil production in the remainder of the United States.
(2) If the President determines that a price required to provide positive price incentives for the development of the domestic crude oil production referred to in paragraph (2) (A) would, because of the maximum weighted average first sale price specified in subsection (a) of this section, as adjusted, have the effect of reducing or limiting ceiling prices permitted f or crude oil produced in the remainder of the United States to levels which would result in less production of such crude oil than would otherwise occur, the President may, together with such report, -or at any time thereafter not earlier than 90 days after any previous submission under this subsection, except as provided in paragraph (4), submit to the Conuess in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act an amendment to the regulation promulgated under section 4 (a) which
(A) excludes up to 2 million barrels a day of crude oil production transported through the trans-Alaska pipeline from the computation of the maximum weighted average first sale price
specified in subsection (a) ; and
(B) establishes ceiling prices (or a manner of determining
prices) for the first sale of crude oil production referred to in subparagraph (A) such that the actual weighted average first sale price for such production will not exceed the highest actual weighted average first sale price permitted under the regulation f or significant volumes of any other classification of domestic
crude oil.
(3) Any such amendment shall be accomptanied.by such findings and supporting rationale as the President determines justify such





17

ceilinor prices (or manner for determining such prices). Any amendment submitted to the Congress pursuant to this subsection shall not take effect if either House of Conorress disapproves such amendment in accordance with the procedures specified in section 3-51 of the Energy Policy and Conservation Act.
(4) If any such amendment is disapproved by either House of Congress, the President may not later than 30 days after the date of such disapproval submit one additional amendment in accordance with paragraphs (2) and (3), which amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section --1 of the Energy Policy and Conservation Act.
(5) If any amendment submitted by the President to the Congress pursuant to this subsection becomes effective, such amendment may thereafter be further amended by the President, subject to the procedures and requirements of paragraphs (2) and (3) of this subsection, except that no such further amendment shall be submitted earlier than January 1, 1978, and thereafter no earlier than 90 days after the date of an us submission made under this paragraph.
(h) In any judicial review of an amendment required by this section to be submitted to the Congress in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act, the reviewing court may not hold unlawful or set aside any such amendment on the ground that any findings made by the President were not adequate to meet the requirements of this section or of subparagraph
(A), (E), or (F) of section 706 (2) of title a-, United States Code.
(i) (1) The first sale price of stripper well crude oil shall be exempt from the regulation promulgated under section 4 of this Act as amended pursuant to the requirements of this section. For the purpose of this section, the President shall include in the computation of the actual weighted average first sale price for crude oil produced in the United States in any month subsequent to August 1976 the actual volume of stripper well crude oil produced in the United States in such subsequent month and such actual volume shall be deemed to have been sold at a first sale price equal to $11.63 per barrel plus the difference between the actual weighted average first sale price in August 1976, for crude oil, other than stripper well crude oil, produced in the United States, and the actual average first sale price in such subsequent month of all classifications of crude oil, other than stripper well crude oil, produced in the United States, weighted as if each such classification were produced in such subsequent month in the same proportion as such classification, or the most nearly comparable classification which existed on August 1, 1976, was produced in August 1976.
(2) For the purposes of this subsection, "stripper well crude oil" means crude oil produced and sold from a property whose maximum average daily production of crude oil per well during any consecutive 12-month period beginning after December 31, 1972, does not exceed 10 barrels.
(3) To qualify for the exemption under this subsection, a property must be producing crude oil at the maximum feasible rate through-





is

out the 12-month qualifying period and in accordance with recognized conservation practices.
(4) The President may define terms used in this subsection consistent with the ptirposes thereof.
(j) (1) As soon as practicable after the date of enactment of this subsection, taking into consideration the greater flexibility provided by the amendments relating to the production incentive adjustment under section 122 of the Energy Conservation and Production Act, the President shall promulgate such amendments to the regulation under section 4(a) relatingz to inice) as shall (A) provide additional price incentives for bona fide tertiary enhanced recovery techniques and (B)

provide for the adjustment of differentials in ceiling prices for crude oil that are the result of gravity differentials which are arbitrary, discriminatory, applied on a regional or local basis without reasonable justification, or fail substantially to reflect current relative, market valuations of such differentials.
(2) As used in this subsection, the term "teritary enhanced recovery techniques" means extraordinary and high cost enhancement technologies of a type associated with tertiary applications including, to the extent that such techniques would be uneconomical without additional price incentives, miscible fluid or gas injection, chemical flooding, steam flooding, microemulsion flooding, in situ combustion, cyclic steam injection, polymer flooding, and caustic flooding and variations of the same. The President shall have authority to further define the term by rule.
PASSTHROUGHS OF PRICE DECREASES
SEC. 9. Not later than the first day of the second full calendar month following the date of enactment of this section, the regulation under section 4 (a) shall provide for a dollar- for-dollar passthrough in prices at all levels of distribution from the producer through the retail level of decreases in the costs of crude oil, residual fuel oil, and refined petroleum products (including decreases in costs which result from a reduction in the price of crude oil produced in the United States because of the amendment to such regulation required under section 8 (a)

LIMITATIONS ON PRICING AUTHORITY
SEC. 10. The President shall have no authority, under this Act, or under the Energy Policy and Conservation Act, to prescribe minimum prices for crude oil (or any classification thereof), residual fuel oil, or any refined petroleum product.
REEVALUATION OF SECTION 4(a) REGULATION
SEC. 11. (a) Not later than 60 days after the date of enactment of this section, the President shall give appropriate notice and afford interested persons an opportunity to present written and oral data, views, and arguments respecting the appropriateness of, or the continuing need for, the application of any provision of the regulation promulgated under section 4 (a) as such provision relates to the attainment of the objectives specified in section 4(b) (1) of section 4. A





19

transcript shall be kept of any such oral presentations of data, views, and argument.
(b) The President shall, after consideration of such written and oral presentations and such other information as may be available to him
(1) analyze such presentations and report thereon to the Congress within 120 days after the date of enactment of this section;
and
(2) shall promulgate, pursuant to the limitations and authority
under section 12, such amendment, or amendments, to the regulation promulgated under section 4 (a) as he determines are necessary or appropriate(A) to modify any provisions of such regulation in a manner which is consistent with the attainment, to the maximum
extent practicable, of objectives specified in section 4(b) (1)
or
(B) to eliminate any provisions of such regulation no
longer necessary to provide for the attainment of such
objectives.
CONVERSION MECHANIS31 TO STANDBY AUTHORITIES
SEC. 12. (a) The President may not amend the regulation under section 4 (a) in any manner which(1) exempts crude oil produced in the United States from any
provision of such regulation required to be made a part of such
regulation by section 8; or
(2) results in making such regulation, as so amended, inconsistent with any limitation or other requirement specified in section 8.
(b) Except as provided in subsection (a), the President may amend the regulation under section 4 (a) if he determines that such amendment is consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 4 (b) (1) and that the regulation, as amended, provides for the attainment, to the maximum extent practicable, of such objectives.
(c) (1) Any such amendment which, with respect to a class of persons or class of transactions (including transactions with respect to any market level), exempts crude oil, residual fuel oil, or any refined petroleum product or refined product category from the provisions of the regulation under section 4 (a) as such provisions pertain to either
(A) the allocation of amounts of any such oil or product, or (B) the specification of price or the manner for determining the price of any such oil or product, or both of the matters described in subparagraphs
(A) and (B), may take effect only pursuant to the provisions of this subsection.
(2) The President shall submit any amendment referred to in paragraph (1) to the Congress in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act. Any such amendment shall be accompanied by a specific statement of the President's rationale for such amendment and the matter described in subsection (d) of this section. Such an amendment-





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(A) may apply only to one oil or one refined product category; (B) may apply to the matters specified in either subparagraph
(A) or (B) of paragraph (1) of this subsection, or both; and
(C) may provide for scheduled or phased implementation.
(3) As used in this section the term "refined product. category" means(A) motor gasoline;
(B) Number 2 oils (Number 2 heating oil and Number 2-D
diesel fuel);
(C) propane. or
(D) all or any portion of other refined petroleum products as a
class (including natural gas liquids and natural gas liquid products, other than propane).(4) Such an amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act.
(d) (1) The President shall support any amendment described in subsection (b) which is transmitted to the Congress under subsection
(c) of this section with a finding that such amendment is consistent with the attainment of the objectives specified in subsection 4(b) (1) and in the case of(A) any exemption described in subsection (c) (1) (A), with
a finding that such oil or refined product category is no longer in short supply and that exempting such oil or refined product category will not have an adverse impact on the supply of any other
oil or refined petroleum product subject to this Act; and
(B) any exemption described in subsection (c) (1) (B), with
a finding that competition and market forces are adequate to protect consumers and that exempting such oil or refined product category will not result in inequitable prices for any class of users
of such oil or product.
(2) Any amendment which the President submits to the Congress under subsection (c) of this section shall be accompanied(A) by a statement of the President's views as to the potential
economic ]mrnacts (if any) of suchb amendment which, where practicable, shall include his views as to(i) the State and regional impacts of such amendment
includingg effects on governmental units) ;
(ii) the effects of such amendment on the availability of
consumer goods and services: the gross national product; competition; small business; and the supply and availability of energ-y resources for use as fuel or as feedstock for industry; and
(iii) the effects on employment and consumer prices; and
(B) in the case of an exemption described in subse~ction
(c) (1) (B) of this section, by an analysis of the effects of such amendment~ on the~ rate of unemployment for the U~nited States, the Consumer Price Index for the U~nited States, and the implicit
price deflator for the .ross national product.
(e) In any judicial review of an amendment recniired by this section to be submitted to Congress in accordance with the procedures





21

specified in section 551 of the Energy Policy and Conservation Act, the reviewing court may not hold --unlawful or set aside any such amendment on the Lrround that any findings made by the President were not adequate to meet the requirements of subsection (c), (d), or (g) of this section or subparagraph (A), (E), or (F), of section 706 (2) of title 5, United States Code.
(f) With respect to any oil or refined product category which is exempted pursuant to the provisions of this section, the President shall have authority at any time thereafter to prescribe a regulation or issue an order respecting either the allocation of amounts, or the specification of price or the manner for determining the price, of any such oil or refined product category upon a determination by him that such regulation or order is necessary to attain, and is consistent with, the o objectives specified in section 4(b) (1). Any.such oil or refined product category for which allocation or price requirements are reimposed under a'-uthority of this subsection may subsequently be exempted without recrard to the provisions of subsection (c) of this section. zn
(g) Notwitb standing the provisions of subsection (e) of section 4, the President may, if he determines that the exemption from payments for certain small refiners required by such subsection(1) results in unfair economic or competitive advantage with
respect to other small refiners; or
(2) otherwise has the effect of seriously impairing the President's ability to provide in the regulation under section 4(a) for the attainment of the. objective specified in section 4(b) (1) (D) and for the attainment of those other objectives specified in section
4(b) (1) ;
submit, in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act, an amendment to modify the regulation under section 4 (a) with respect to the provisions of such regulation as they relate to such exemption. Such amendment shall not take effect if disapproved by either House of Congress under the procedures specified in such section 551.
TECHNICAL PURCHASE AUTHORITY
SEC. 13. (a) The President may, by amendment to the regulation under section 4 (a) of this Act, provide for and implement a procedure pursuant to which the United States may exercise the exclusive right to import and purchase all or any part of the crude oil, residual fuel oil, and refined petroleum products of foreign origin for resale in the United States.
(b) The authorities granted under this section shall not be used for the purpose, or with the effect, of providing a subsidy or preference to any importer, purchaser, or user.
(c) In exercising any authorities granted under this section, the President shall endeavor to buy and sell without profit or loss, except that the President may, in individual cases, sell, on a competitive bid basis, crude oil, residual fuel oil, or any refined petroleum product at a price above or below the cost of such oil or product if, in the judgment of the President, such sales may result in progress toward a lower price for oil sold in international commerce.





22

(d) Any amendment to the regulation proposed to be implemented under this section shall be submitted to Congress for review under section 551 of the Energy Policy and Conservation Act, together with a detailed explanation of the procedure to be employed and the need therefor and shall be supported by findings by the President that the exercise of such authority is likely to reduce prices for imported oils and products. Such amendment shall not take effect if disapproved by either House of the Congress in accordance witli the procedures specified in section 0551 of such Act and any authority to purchase shall be subject to appropriations Acts.
(e) The President shall submit, within 90 days after the date of enactment of this section. a report which evaluates the feasibility of reducing the price of crude oil. residual fuel oil. or refined petroleum products of foreign origin for resale in the United States by providing incentives for domestic producers who also import sueli oils or products into the United States, to work for the reduction of the price of such oils or products. The report shall specifically discuss whether increasing aggregate old crude oil prices by an amount related to any decrease in aggregate prices for such imported oils and products would serve as an incentive for domestic producers to reduce the price of such imported oils and products.
DIRECT CONTROLS ON REFINERY OPERATIONS
SEC. 14. The President may, by amendment to the regulation under section 4 (a) of this Act or by order, as may be consistent with the attainment., to the maximum extent practicable, of the objectives specified in section 4(b) (1) of this Act, require adjustments in the operations of any refinery in the United States with respect to the proportions of residual fuel oil or any refined petroleum product produced through such operations if he determines such adjustments are necessary to assure the production of residual fuel oil or any refined. petroleum product in such proportions as are necessary or appropriate to provide for the attainment, to the maximum extent practicable, the objectives specified in section 4 (b) (1).

INVENTORY CONTROLS
SEC. 15. (a) Tn addition to other authority provided for in this Act to alleviate shortages of crude oil, residual fuel oil, and refined petroleum products. the President may. if he finds an existing or impending re(rional or national supT)lv shortage of any fuel, bv amendment to the relations, under section 4(a) of this A-et or by order. consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 4(b) (1), require adjustments in the amounts of crude oil. residual fuel oil or any refined petroleum product which are held in inventory by persons who are engaged in the business of importing, producing, refining, marketing, or distributing such oils or products. zn
(b) The authority specified in subsection (a) may be exercised to require either(1) a distribution from such inventories to specified persons or
classes, of persons at specified rates of distribution or to specified
levels of inventory accumulation; or





23

(2) the accumulation of inventories at specified rates of accumulation or to specified levels,
as the President determines may be necessary or appropriate to provide for the attainment, to the maximum extent practicable, of the objectives of section 4(b) (1) or as the President determines may be necessary or appropriate to carry out the obligations of the United States under the international energy program, as defined in section 3 of the Energy Policy and Conservation Act.
(c) The authority specified in subsection (a) may require the maintenance of inventories at levels greater or lesser than such person's normal business or operating requirements; except that such amounts shall not exceed the amount of oil or product, as the case may be, such person would use or distribute during any 90-day period of peak usage and in no case may the requirement to accumulate inventories be applied to any person in a manner which would necessitate such perso-n making physical additions to storage facilities in order to comply with any such rule or order.

HOARDING PROHIBITIONS
SEC. 16. Except as may be otherwise provided with respect to persons engaged in the business of producing, refining, distributing, or marketing crude oil, residual fuel oil, or any refined petroleum product pursuant to section 15 or pursuant to requirements under section 156 of the Energy Policy and Conservation Act (relating to the Industrial Strategic Petroleum Reserve), the regulation under section 4 (a) shall prohibit any person, during a severe energy supply interruption (as defined in section 3 of the Energy Policy and Conservation Act) from willfully accumulating crude oil, residual fuel oil, or any refined petroleum product in inventories, or otherwise, in amounts which are in excess of such person's reasonable needs (as such term shall be defined in such regulation).
ASPHALT ALLOCATION AUTHORITY
SEC. 17. (a) The President may amend the regulation under section 4 (a) of this Act to require, in a manner which he finds is consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 4 (b) (1) of this Act, the allocation of asphalt in amounts specified in (or determined in the manner prescribed by), or at prices specified in (or determined in a manner prescribed by) such amendment to the regulation, or both.
(b) If the President exercises the authority under this section, he may thereafter amend the regulation under section 4 (a) to exempt asphalt from such regulation without regard to the provisions of section 12 of this Act.

EXPIRATION OF AUTHORITIES
SEC. 18. Notwithstanding any other provision of this Act, at midnight on the conclusion of the 40th month in which the amendment under Section 8 (a) is in effect, the President's authority to promulgate, make effective, and amend a regulation pursuant to section 4(a) of this Act shall become discretionary rather than mandatory, and the





24

limitations on the President's authority contained in sections 4 (b) (2), 8, and 9 of this Act shall terminate. The authority to promulgate and amend any regulation or to issue any order under this Act shall expire at midnight September 30, 1981, but such expiration shall not affect any action or pending proceedings, administrative, civil, or criminal, not finally determined on such date, nor any administrative, civil, or criminal action or proceeding, whether or not pending, based upon any act committed or liability incurred prior to such expiration date.

REIMBURSEMENT TO STATES
SEC. 19. (a) The President is authorized to reimburse any State for expenses incurred by such State in carrying out any responsibilities delegated to such State by the President under the provisions of this Act.
(b) Such reimbursements may be paid from any funds appropriated for the purpose of carrying out responsibilities under this Act, unless any appropriation Act specifically provides to the contrary.
(c) Not later than June 1, 1976, the President shall submit a report to the Congress analyzing and detailing the amount and nature of any reimbursements made to any State for expenses described in subsection
(a) incurred prior to such date and specifically recommending whether authorizations of additional funds f or direct grants to States are necessary or appropriate for the continued operation of the reimbursement provisions authorized by this section.



























ECONOMIC STABILIZATION ACT OF 1970
(CERTAIN PROVISIONS)





(25)














ECONOMIC STABILIZATION ACT OF 1970


205. Confidentiality of information
(a) Except as provided in subsection (b), all information reported to or otherwise obtained by any person exercising authority under this title which contains or relates to a trade secret or other matter referred to in section 1905 of title 18, United States Code, shall be considered confidential for the purposes of that section, except that such information may be disclosed to other persons empowered to carry out -this title solely for the purpose of carrying outthis title or when relevant in any proceeding under this title.
(b) (1) Any business enterprise subject to the reporting requirements under section 130.21 (b) of the regulations of the Cost of Living Council in effect on January 11, 1973, shall make public any report (except for matter excluded in accordance with paragraph (2) ) so required which covers a period during which that business enterprise charges a price of a substantial product which exceeds by more than 1.5 per centum. the price lawfully in effect for such product on January 10, 1973, or on the date twelve months preceding the end of such period, whichever is later. As used in this subsection, the term 'substantial product' means any single product or service which accounted for 5 per centum or more of the gross sales or revenues of a business enterprise in its most recent full fiscal year.
(2) A business enterprise may exclude Trom any report made public pursuant to paragraph (1) any information or data reported to the Cost of Living Council, proprietary in nature, which concerns or relates tothe amount of sources of its income, profits, losses, costs, or expenditures but may not exclude from such report, data, or information, so reported, which concerns or relates to its prices for goods and services.
(3) Immediately upon enactment of this subsection, the President or his delegate shall issue regulations defining for the purpose of this subsection what information or data are proprietary in nature and therefore excludable under paragraph (2), except that such regulations may not define as excludable any information or data which cannot currently be excluded f rom public annual reports to the Securities and Exchange Commission pursuant to section 13 or 15 (d) of the Securities Exchange Act of 1934 by a business enterprise exclusively engaged in the manufacture or sale of a substantial product as defined in paragraph (1). Such regulations shall define as excludable any information or data which concerns or relates to the trade secrets, processes, operations, style of work, or apparatus of the business enterprise.
(27)





28

206. Subpena power
"The head of an agency exercising authority under this title, or his dulyv authorized agent, shall have authority, for any purpose related to this title, to sign and issue subpenas for the attendance and testimony of witnesses, and the production of relevant books, papers, and other documents, and to administer oaths. Witnesses summoned under the provisions of this section shall be paid the same fees and mileage as are paid to witnesses in the courts of the United States. In case of refusal to obey a subpena served upon any person under the provisions of this section the head of the agency authorizing such subpena, or his delegate, may request the Attorney General to seek the aid of the district court of the United States for any district in which such person is found to compel such person, after notice, to appear and give testimony, or to appear and produce documents before the agency. 207. Administrative procedure
(a) The functions exercised under this title are excluded from the operation of subchapter II of chapter 5, and chapter 7 of title 5, United States Code, except as to the requirements of sections 552, 553, and 555 (e) of title 5, United States Code.
(b) Any agency authorized by the President to issue rules, regumlations, or orders under this title shall, in regulations prescribed by it, establish procedures which are available to any person for the purpose of seeking an interpretation, modification, or rescission of, or seeking an exception or exemption f rom, such rules, regulations, and orders. If such person is aggrieved by the denial of a request for such action under the preceding sentence, he may request a review of such denial by the agency. The agency shall, in regulations prescribed by it, establish appropriate procedures, including hearings where deemed advisable, for' considering such requests for action under this section.
(c) To the maximum extent possible, the President or his delegate shall conduct formal hearings for the purpose of hearing arguments or acquiring information bearing on a change or a proposed change in wages, salaries, prices, rents, interest rates, or corporate dividends or similar transfers, which have or may have a significantly large impact upon the national economy, and such hearings shall be open to the public except that a private formal hearing may be conducted to receive information considered confidential under section 205 of this title: Pro vided, That such agency shall issue no order which has the effect of reducing wages, or salaries in effect, or proposed to be put into effect, in an appropriate employee unit unless such order is made on the record after opportunity for a hearing. Not less than thirty days after issuance of such an order a statement of explanation shall be directed to the affected parties and made available to the public. Such statement shall include a full explanation of the reasons why the existing wagre or salary, or proposed -wacre or salary adjustment, does not meet the requirements of or the standards established by the regulations prescribed lby the agency."
208. Sanctions; criminal fine and civil penalty
(a) NWhoever willfully violates any order or regulation under this title shall be fined not more than $5,000 for each violation.
(b) W~hoever violates any order or regulation under this title shall be subject to a civil penalty of not more than $2,500 for each violation.





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209. Injunctions and other relief
Nnenever it appears to any person authorized by the President to exercise authority under this title that any individual or organization has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any order or regulation under this title, such person may request the Attorney General to bring an action in the appropriate district court of the United States to enjoin such acts or practices, and upon a proper showing a temporary restraining order or a preliminary or permanent injunction shall be granted without bond. Any such court may also issue mandatory injunctions commanding any person to comply with any such order or regulation. In addition to such injunctive relief, the court may also order restitution of moneys received in violation of any such order or regulation.
210. Suits for damages or other relief
(a) Any person suffering legal wrong because of any act or practice arising out of this title, or any order or regulation issued pursuant thereto, may bring an action in a district court of the United States, without regard to the amount in controversy, for appropriate relief, including an action for a declaratory judgment, writ of injunction (subject to the limitations in section 211), and /or damages.
(b) In any action brought under subsection (a) against any person renting property or selling goods or services who is found to have overcharged the plaintiff, the court may, in its discretion, award the plaintiff reasonable attorney's fees an& costs, plus whichever of the following sums is greater:
t C.7
(1) an amount not more than three times the amount of the
overcharge upon which the action is based, or
(2) not less than $100 or more than $1,000;
except that in any case -where the defendant establishes that the overcharge was not intentional and resulted f rom. a bona fide error notwithstanding the maintenance of procedures reasonable adapted to the avoidance of such error the liability of the clef enaant shall be limited to the amount of the overcharge: Provided, That where the overcharae is not willful within the meaning of section 208 (a) of this title, no action for an overcharge may be brought by or on behalf of any person unless such person has first presented to the seller or renter a bona fide claim for refund of the overcharge and has not received repayment of such overcharge within ninety days from the date of the presentation of such claim.
(c) For the purposes of this section, the term 'overcharore' means the amount by which the consideration for the rental of property or the sale of goods or services exceeds the applicable ceiling under reguhations or orders issued under this title. 211. Judicial review
(a) The district courts of the United States shall have exclusive original Jurisdiction of cases or controversies arisin(r under this title. or under reorulations or orders issued thereunder, notwithst an cling the amount in controversy; except that nothing in this subsection or in subsection (b) of this section affects the power of any court of competent jurisdiction to consider, hear, and determine any issue by way of



43-068 0 79 3





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defense (other than a defense based on the constitutionality of this title or the validity of action taken by any agency under this title) raised in ani7 proceeding before such court. If in any such proceeding an issue by wvay of defense is raised based on the contitutionality of this title or the validity of agency action under this title, the case shall be subject to removal by either party to a district court of the United States in accordance with the applicable provisions of chapter 89 of title 28w, United States Code.
(b) (1) There is hereby created a court of the United States to be known as the Temporary Emergency Court of Appeals, which shall consist of three or more judges to be designated by the Chief Justice of the United States from judges of the United States district courts and circuit, courts of appeals. The Chief Justice of the United States shall designate one of such judges as chief judge of the Temporary Emergency Court of Appeals, and may, from time to time, designate additional judges for such court and revoke previous designations. The chief judge may, f rom time to time, divide the court into divisions of three or more members, and any such division may render judgment as the judgment of the court. Except as provided in subsection (dJ) (2) of this section, the court shall not have power to issue any interlocutory decree staying or restraining in whole or in part any provision of this title, or the effectiveness of any regulation or order issued thereunder. In all other respects, the court shall have the powers of a circut court of appeals with respect 'to the jurisdiction conferred on it by this title. The court shall exercise its powers and prescribe rules governing its procedure in such manner as to expedite the determination of cases over which it has jurisdiction under this title. The court shall have a seal, hold sessions at such places as it may specify, ,and appoint a clerk and such other employees as it deems necessary or proper.
(2) Except as otherwise provided in this section, the Temporary Eme rgency Court of Appeals shall have exclusive jurisdiction of all appeals from the district courts of the United States in cases and controversies arising under this title or under regulations or orders issued thereunder. Such appeals shall be taken by the filing of a notice of appeal with the Temporary Emergency Court of Appeals within thirty days of -the entry of judgment by the district court.
(c) In any action commenced under this title in any district court of the United States in which the court determines that a substantial constitutional issue exists, the court shall certify such issue to the Temporary Emergency Court of Appeals. Upon such certifications, the Temporary Emergency Court of Appeals shall determine the appropriate manner of disposition which may include a determination that the entire action be sent to it for consideration or it may, on the issues certified, give binding instructions and remand the action to the certifvin (T court for f urther dispositi on.
(d) (1) Subiect to T)a ra rranh (2),~ no regulation of any a!rency exercisingr authority under this title, shall be enjoined or set aside, in whole or in part. unless a, final judzmient, determines that the issuance of such regulation was in excess of the agenev's authority, was arbitrary or canricioils, or was othierwvise, lulawfull under the criteria set forth in section 706 (2) of title 5, United States Code, and no order





31

of such agency shall be enjoined or set aside, in whole or in part, unless a final judgment determines that such order is in excess of the agency's authority, or is based upon findings which are not supported by substantial evidence.
(2) A district court of the United States or the Temporary Emergency Court of Appeals may enjoin temporarily or permanently the application of a particular regulation or order issued undler this title to a person who is a party to litigation before it. Appeals from interlocutory decisions by a district court of the United States under this paragraph may be taken in accordance with the provisions of section 129'2(b) of title 28. United States Code; except that reference in such section to the courts of appeals shall be deemed to refer to the Temporary Emergency Court of Appeals.
(e) (1) Except as provided in subsection (dI) of this section, no interlocutory or permanent injunction restraining the enforcement, operation, or execution of this title, or any regulation or order issued thereunder, shall be granted by any district court of the United States or judge thereof. Any such court shall have jurisdiction to declare
(A) that a regulation of an agency exercising authority under this title is in excess of the agencvs authority, is arbitrary or capricious. or is otherwise unlawful under the criteria set forth in section 7t06 (2) of title 'a, United States Code, or (B) that an order of such agency is invalid upon a determination that the order is in excess of the agency's authority, or is based upon findings which are not supported by substantial evidence.V
(2) Any party aggrieved by a declaration of a district court of the United States respecting the validity of any regulation or order issued under this title may, within thirty clays after the entry of such declaration, file a notice of appeal therefrom in the Temporary Emergency Court of Appeals. In addition. any party believing himself entitled by reason of such declaration to a permanent injunction restraining the enforcement, operation. or execution of such regulation or order may file. within the same thiirtv-cav period, a motion in the Temporary Emergencv Court of Appeals requesting such injunctive relief.- Following conside ration of such appeal or motion, the Temporary Emergency Court of Appeals shall enter a final judgment affirming, reversing, or modifying the determination of the district court and granting such permanent injunctive relief. if any, as it deems appropriate.
(1) The, effectiveness of a final judgment of the Temporary Emergency Court of Appeals enjoining or setting aside in whole or in part any provision of this title, or any regulati ,on or order issued thereunder, shall be Postponed until the expiration of thirty days from the entry thereof, except that if a petition for a writ of certiorari is filed -with the Supreme Court under subsection (g) within such thirty days, the effectiveness of such judgment shall be postponed until an order of the Supreme Court denying such petition becomes final, or until other final disposition of the action by the Supreme Court.,
W~ 'Within thirty clays after entry of any judgment or order by the Temporary Emerigency Court of Appeals, a petition for a writ of certiorari may be filed in the Supreme Court of the United States, and thereupon the judgment or order shall be subject to review b-y





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the Supreme Court in the same manner as a judgment of a United States court of appeals as provided in section 1254 of title 28, United States Code. The Temporary Emergency Court of Appeals, and the Supreme Court upon review of judgments and orders of the Temporary Emergency Court of Appeals, shall have exclusive jurisdiction to determine the constitutional validity of any provision of this title or of any regulation or order issued under this title. Except as provided in this section, no court, Federal or State, shall have jurisdiction or power to consider the constitutional validity of any provision of this title or of any such regulation or order, or to stay, restrain, enjoin, or set aside, in whole or in part, any provision of this title authorizing the issuance of such regulations or orders, or any provision of any such regulation or order, or to restrain or enjoin the enforcement of any such provision.
(h) The provisions of this section apply to any actions or suits pending in any court, Federal or State, on the date of enactment of this section in which no final order or judgiy!ent has been rendered. Any affected party seeking relief shall be required to follow the procedures of this title.
212. Personnel
(a) Any agency or officer of the Government carrying out functions under this title is authorized to employ such personnel as the President deems necessary to carry out the purposes of this title.
(c) Any member of a board, commission, or similar entity established by the President pursuant to authority conferred by this title who serves on less than a full-time basis shall receive compensation from the date of his appointment at a rate equal to the per them equivalent of the rate prescribed for level IV of the Executive Schedule (5 U.S.C. 5315) when actually engaged in the performance of his duties as such member.
(d) (1) In addition to the number of positions which may be placed in GS-16,17, and 18, under section 5108 of title 5, United States Code, not to exceed twenty positions may be placed in GS-16, 17, and 18, to carry out the functions under this title.
(2) The authority under this subsection shall be subject to the procedures prescribed under section 5108 of title 5, United States Code, and shall continue only for the duration of the exercise of functions under this title.
(e) The President may require the detail of employees from any executive agency to carry out the purposes of this title.
(f) The President is authorized to appoint, without regard to the civil service laws, such advisory committees as he deems appropriate for the purpose of consultation with and advice to the President in the performance of his functions under this title. Members of advisory committees, other than those regularly employed by the Federal Government, while attending meetings of such committees or while otherwise serving at the request of the President may be paid compensation at rates not exceeding those authorized for individuals under section 5332 of title 5, United States Code, and, while so serving away from their homes or regular places of business, may be. allowed travel expenses, including per them as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.





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(g) (1) Under such regulations as the President may prescribe, officers and employees of the Government who are appointed, -without a break of service of one or more work days, to any position for carrying out functions under this title are entitled, upon separation from such position, to reemployment in the position occupied at the time of appointment or in a position of comparable grade and salary.
(2) An officer or employee who, at the time of his appointment under paragraph (1) of this subsection, is covered by section 8336 (C) of title 5, United States Code, shall continue to be covered thereunder while carrying out functions under this title. 213. Experts and consultants
Experts and consultants may be employed, as authorized by section 3109 of title 5, United States Code, for the performance of functions under this title, and individuals so employed may be compensated at rates not to exceed the per them equivalent of the rate for grade 18 of the General Schedule established by section 5332 of t tle 5, United States Code. Such contracts may be renewed from time to time without limitation. Service of an individual as an expert or consultant under this section shall not be considered as employment or the holding of an office or position bringing such individual -within the provisions of section 3323(a) of title a-, United States Code, section 872 of the Foreign Service Act of 1946, or any other law limiting the reemployment of retired officers or employees.


































TRANS-ALASKA OIL PIPELINE





(35)










TRANS-ALASKA OIL PIPELINE
Public Law 93-153
93rd Congress, S. 1081
November 16,1973
AN ACT To amend section 28 of the Mineral Leasing Act of 1920, and to authorize a trans-Alaska oil pipeline, and for other purposes
Be it enacted by the Senate and House of Represent ative8 Of the United States of America in Congress assembled,

TITLE I
SECTION 101. Section 28 of the Mfineral Leasing Act of 1920 (41 Stat. 449), as amended (30 U.S.C. 185), is further amended to read as follows:
"Grant of Authority
"SEc. 28. (a) Rights-of-way through any Federal lands may be granted by the Secretary of the Interior or appropriate agency head for pipeline purposes for the transportation of oil, natural gas synthetic liquid or gaseous fuels, or any refined product produced therefrom to any applicant possessing the qualifications provided in section 1 of this Act, as, amended, in accordance with the provisions of this section.
"Definitions
"(b) (1) For the purposes of this section 'Federal lands' means all lands owned by the United States except lands in the National Park System, lands held in trust for an Indian or Indian tribe, and lands on the Outer Continental Shelf. A right-of-way through a Federal reservation shall not be granted if the Secretary or agency head determines that it would be inconsistent with the purposes of the
reservation.
"(2) 'Secretary' means the Secretary of the Interior.
"(3) 'Agency head' means the head of any Federal department or independent Federal office or agency,~ other than the Secretary of the Interior, which has jurisdiction over Federal lands.

"Inter-Agency Coordination
"(c) (1) 'Where the surface of all of the Federal lands involved in a proposed right-of-way or permit is under the jurisdiction of one Federal agency, the agency head, rather than the Secretary, is authorized to grant or renew the right-of-way or permit for the purposes set forth in this section.
(2) Where the surface of the Federal lands involved is administered by the Secretary or by two or more Federal agencies, the Secre(37)





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tary is authorized, after consultation with the agencies involved, to grant or renew rights-of-way or permits through the Federal lands involved. The Secre l-ary may enter into interagency agreements with all other Federal agencies having jurisdiction over Federal lands for the purpose of avoiding duplication, assigning responsibility, expediting review of rights-of -way or permit applications, issuing joint regulations, and assuring a decision based upon a comprehensive review of all factors involved in any right-of-way or permit application. Each agency head shall administer and enforce the provisions of this section, appropriate regulations, and the terms and conditions of rights-of-way or permits insofar as they involve Federal lands under the agency head's jurisdiction.

"Width Limitations
"(d) The width of a right-of-way shall not exceed fifty feet plus the ground occupied by the pipeline (that is, the pipe and its related facilities) unless the Secretary or agency head finds, and records the reasons for his finding, that in his judgment a wider right-of-way is necessary for operation and maintenance after construction, or to protect the environment or public safety. Related facilities include but are not limited to valves, pump stations, supporting structures, bridges, monitoring and communication devices, surge and storage tanks, terminals, roads, airstrips and campsites, and they need not necessarily be connected or contiguous to the pipe and may be the subjects of separate rights-of-way.
"Temporary Permits
"(e) A right-of-way may be supplemented by such temporary permits for the use of Federal lands in the vicinity of the pipeline as the Secretary or agency head finds are necessary in connection with construction, operation, maintenance, or termination of the pipeline, or to protect the natural environment or public safety.

"Regulatory Authority
"(f ) Rights-of-way or permits granted or renewed pursuant to this section shall be subject to regulations promulgated in accord with the provisions of this section and shall be subject to such terms and conditions as the Secretary or agency head may prescribe regarding extent, duration, survey, location, construction, operation, maintenance, use, and termination.
"Pipeline Safety
"9(g) The Secretary or agency head shall impose requirements for the operation of the pipeline and related facilities in a manner that will protect the safety of workers and protect the public from sudden ruptures and slow degradation of the pipeline.

"Environmental Protection
M(h (1) Nothing in this section shall be construed to amend, repeal, modify, or change in any way the requirements of section 102(2) (C)





39

or any other provision of the National Environmental Policy Act of 1969 ( Public Law 91-190, 83 Stat. 852).
"1(2) The Secretary or agency head, prior to granting a right-of-way or permit pursuant to this section for a new project which may have a significant impact on the environment, shall require the applicant to submit a plan of construction, operation, and rehabilitation f or such right-of-way or permit which shall comply with this section. The Secretary or agency head shall issue regulations or impose stipulations which shall include, but shall not be limited to: (A) requirements for restoration, revegetation, and curtailment of erosion of the surface of the land; (B) requirements to insure that activities in connection with the right-of-way or permit will not violate applicable air and water quality standards nor related facility siting standards established by or pursuant to law; (C) requirements designed to control or prevent (i) damage to the environment (including damage to fish and wildlife habitat), (ii) damage to public or private property, and (iii) hazards to public health and safety; and (D) requirements to protect the interests of individuals living in the general area of the right-of-way or permit who rely on the fish. wildlife, and biotic resources of the area for subsistence purposes. Such regulations shall be applicable to every right-of-way or permit granted pursuant to this section, and may be made applicable by the Secretary or agency head to existing rights-of-way or permits, or rights-of-way or permits to be renewed pursuant to this section.

"Disclosure
"(i) If the applicant is a partnership, corporation, association, or other business entity, the Secretary or agency head shall require the applicant to disclose the identity of the participants in the entity. Such disclosure shall include where applicable (1) the name and address of each partner, (2) the name and address of each shareholder owning 3 per centum or more of the shares, together with the number and percentage of any class of voting shares of the entity which such shareholder is authorized to vote, and (3) the name and address of each affiliate of the entity together with, in the case of an affiliate controlled by the entity, the number of shares and the percentage of any class of voting stock of that affiliate owned, directly or indirectly, by that entity, and, in the case of an affiliate which controls that entity, the number of shares and the percentage of any class of voting stock of that entity owned, directly or indirectly, by the affiliate.

"Technical and Financial Capability
"(M The Secretary or agency head shall grant or renew a right-ofway or permit under this section only when he is satisfied that the applicant has the technical and financial capability to construct, operate, maintain, and terminate the project for whicb the right-of-way or permit is requested in accordance with the requirements of this section.

"Public Hearings
W(k The Secretary or agency head by regulation shall establish procedures, including public hearings where appropriate, to give Fed-





40

eral, State, and local government agencies and the public adequate notice and an opportunity to comment upon right-of -way applications filed after the date of enactment of this subsection.

"Reimbursement of Costs
"(1) The applicant for a right-of -way or permit shall reimburse the United States for administrative and other costs incurred in processing the application, and the holder of a right-of-way or permit shall reimburse the United States for the costs incurred in monitoring the construction, operation, maintenance, and termination of any pipeline and related f acilities on such right-of -way or permit area and shall pay annually in advance the fair market rental value of the right-ofway or permit, as determined by the Secretary or agency head.
"Bonding
"(in) Where he deems it appropriate the Secretary or agency head may require a holder of a right-of -way or permit to furnish a bond, or other security, satisfactory to the Secretary or agency head to secure all or any of the obligations imposed by the terms and conditions of the right-of -way or permit or by any rule or regulation of the Secretary or agency head. uai no rn

(n) Each right-of-way or permit granted or renewed pursuant to this section shall be limited to a reasonable term in light of all circumstances concerning the project, but~ in no event more than thirty years. In determining the duration of a right-of -way the Secretary or agency head shall, among other things, take into consideration the cost of the facility, its useful life, and any public purpose it serves. The Secretary or agency head shall renew any right-of-way, in accordance with the provisions of this section, so long as the project is in commercial operation and is operated and maintained in accordance with all of the provisions of this section.

"Suspension or Termination of Right-of-Way
"(o) (1) Abandonment of a ri ght-of-way or noncompliance with any provicion of this section may be grounds for suspension or termination of the right-of -way if (A) after due notice to the holder of the right-of-way, (B) a reasonable opportunity to comply with this section. and (C) an appropriate administrative proceeding pursuant to title'5. IUnited States Code, section 1554, the Secretary or agency head determines that any such ground exists and that suspension or termination is justified. No administrative proceeding shall be required where the rip.,ht-of-way by its terms provides that it terminates on the occurrence of a fixed or agreed upon condition., event, or time.
"1(2) If the, Secretary or a~rency head determines that an immediate temporary suspension of activities within a right-of-way or permit area is necessary to protect 1)ublic ie-alth or safety or the environment, hie may abate such activities prior to an administrative proceeding.





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"(3) Deliberate failure of the holder to use the right-of-way for the purpose for which it was granted or renewed for any continuous two-year period shall constitute a rebuttable presumption of abandonment of the right-of -way: Provided, That where the failure to use the right-of-way is due to circumstances not within the holder's control the Secretary or agency head is not required to commence proceedings to suspend or terminate the right-of -way.

"Joint Use of Rights-of -Way
"(p) In order to minimize adverse environmental impacts a,,nd the proliferation of separate rights-of-way across Federal lands, the utilization of rights-of -way in common shall be required to the extent practical, and each right-of -way or permit shall reserve to the Secretary of- agency head the right to grant additional rights-of -way or permits for compatible uses on or adjacent to rights- of -way or permit area granted pursuant to this section.

"Statutes
"(q) No rights-of -way f or the purposes provided f or in this section shall be granted or renewed across Federal lands except under and subject to the provisions, limitations, and conditions of this section. Any application for a right-of -way filed under any other law prior to the effective date of this provision may, at the applicant's option, be considered as an application under this section. The Secretary or acrene-y head may require the applicant to submit any additional information he deems necessary to comply with the requirements of this section.
"Common Carriers
"(r) (1) Pipelines and related facilities authorized under this section shall be constructed, operated, and maintained as common carriers.
"(2) (A) The owners or operators of pipelines subject to this section shall accept, convey, transport, or purchase without discrimination all oil or gas delivered to the pipeline without regard to whether such oil or gas was produced on Federal or non-Federal lands.
(B) In the case of oil or gas produced from Federal lands or from the resources on the Federal lands in the vicinity of the pipeline. the Secretary may, after a full hearing with due notice thereof to the interested parties and a -proper findinor of facts, determine the proportionate amounts to be accepted, conveyed, transported or purchased.
(3) (A) The common carrier provisions of this section shall not apply to any natural cras pipeline operated by any person subject to regulation under the Natural Gas Act or by any public utility subject to regulation by a State or municipal regulatory agency having jurisdiction to re~aulate the rates and charges for the sale of natural gas to consumers within the State or municipality.
"(B) Where natural gas not subject to State regulatory or conservation laws roverning its purchase by pipelines is offered for sale, each such pipeline shall purchase, without discrimination. any such natural gas produced in the vicinity of the pipeline.





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"(4) The Government shall in express terms reserve and shall provide in every lease of oil lands under this Act that the lessee, assignee, or beneficiary, if owner or operator of a controlling interest in any pipeline or of any company operating the pipeline which may be operated accessible to the oil (derived fi'om lands under such lease, shall at reasonable rates and without discrimination accept and convey the oil of the Governmnent or of any citizen or company not the owner of any pipeline operating a lease or purchasing gas or oil under the provisions of this Act.
(5) Whenever the Secretary has reason to believe that any owner or operator subject to this section is not operating any oil or gas pipeline in complete accord with its obligations as a common carrier hereunder. he may request the Attorney General to prosecute an appropriate proceeding bef ore the Interstate Commerce Commission or Federal Power Commission or any appropriate State agency or the United States district court for the district in which the pipeline or any part thereof is located, to enforce such obligation or to impose any penalty provided therefor, or the Secretary may, by proceeding as provided in this section, suspend or terminate the said grant of right-of-way for noncompliance with the provisions of this section.
"(6) The Secretary or agency~ head shall require, prior to granting or renewing a right-of-way, that the applicant submit and disclose all plans., contracts, agrreements, or other information or material which he deems necessary to determine whether a righ-of-way shall be granted or renewed and the terms and conditions which should be included in the rioaht-of-way. Such information may include, but is not limited to: (A) conditions for, and agreements among owners or operators. regarding the addition of pumping facilities, looping, or otherwise increasingy the pipeline or terminal's throughput capacity in response to actual or anticipated increases in demand ; (B) conditions for adding or abandoning intake, offtake, or storage points or facilities; and (C) minimum shipment or purchase tenders.

"Right-of -Way Corridors
"(s) In order to minimize adverse environmental impacts and to prevent the proliferation of separate rights-of -way across Federal lands, the Secretary shall, in consultation with other' Federal and State agencies, review the need for a national system of transportation and utility corridors across Federal lands and submit a report of his finding-s' and recommendations to the Congress and the President by July 1, 1975.

"Existing Rights-of-Way
"(t) The Secretary or agency head may ratify and confirm any righit-of-way or permit for an oil or gas pipeline or related facility that was grantedl under any provision of law before the effective date of this subsection, if it is modified by mutual agreement to comply to the extent practical with the provisions of this section. Any action taken by the Secretary or agency head pursuant to this subsection shall not be considered a major Federal action requiring a detailed statement pursuant to section 102(2) (C) of the National Environmental Policy Act of 1970 (Public Law 90-190; 42 U.S.C. 4321).





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"Limitations on Export
11(u) Any domestically produced crude oil transported by pipeline over rights-of-way granted pursuant to section 28 of the Mineral Leasing Act of 1920, except such crude oil which is either exchanged in similar quantity for convenience or increased efficiency of transportation with persons or the government of an adjacent foreign state, or which is temporarily exported for convenience or increased efficiency of transportation across parts of an adjacent foreign state and reenters the United States, shall be subject to all of the limitations and licensing requirements of the Export Administration Act of 1969 (Act of December 30, 1969; 83 Stat. 841) and, in addition, before any crude oil subject to this section may be exported under the limitations and licensing requirements and penalty and enforcement provisions of the Export Administration Act of 1969 the President must make and publish an express finding that such exports will not diminish the total quantity or quality of petroleum available to the United States, and are in the national interest and are in accord with the provisions of the Export Administration Act of 1969: Provided, That the President shall submit reports to the Congress containing findings made under this section, and after the date of receipt of such report Congress shall have a period of sixty calendar days, thirty days of which Congress must have been in session, to consider whether exports under the terms of this section are in the national interest. If the Congress within this time period passes a concurrent resolution of disapproval stating disagreement with the President's finding concerning the national interest, further exports made pursuant to the aforementioned Presidential findings shall cease.

"State Standards
"(v) The Secretary or agency head shall take into consideration and to the extent practical c --omp'l'y with State standards for right-ofway construction, operation, and maintenance.

"Reports
"(w) (1) The Secretary and other appropriate agency heads shall report to the House and Senate Committees on Interior and Insular Affairs annually on the administration of this section and on the safety and environmental requirements imposed pursuant thereto.
(2) The Secretary or agency head shall notify the House and Senate Committees on Iiiter! ior "and Insular Affairs promptly upon receipt of an application for a right-of -way for a pipeline twenty-f our inches or more in diameter, and no right-of -way for such a pipeline shall be granted until sixty days (not counting days on which the House of Representatives or the Senate has adjourned for more than three days) after a, notice of intention to grant the right-of -way, together with the Secretary's or agency heads detailed findings as to terms and conditions he proposes to impose, has been submitted to such committees, unless each committee by resolution -%vaives the waiting period.
"(3) Periodically, but at least once a year, the Secretary of the Department of Transportation shall cause the examination of all pipe-





44

lines and associated facilities on Federal lands and shall cause the prompt reporting of any potential leaks or safety problems.
(4) The Secretary of the Department of Transportation shall report annually to the President, the Congress, the Secretary of the Interior, and the Interstate Commerce Commission any potential dangers of or actual explosions, or potential or actual spillage on Federal lands and shall include in such report a statement of corrective action taken to prevent such explosion or spillage.

"Liability
(x) (1) The Secretary or agency head shall promulgate regulations and may impose stipulations sp-ecifying the extent to which holders of rights-of-way and permits under this Act shall be liable to the United States for damage or injury incurred by the United States in connection with the right-of -way or permit. I"ere the right-of -way or permit involves lands which are under the exclusive jurisdiction of the Federal Government, the Secretary or agency head shall promulgate regulations specifying the extent to which holders shall be liable to third parties for injuries incurred in connection with the right-of-way or permit.
(2) The Secretary or agency head may, by regulation or stipulation, impose a standard of strict liability to govern activities taking place on a right-of-way or permit area which the Secretary or agency head determines, in his discretion, to present a foreseeable hazard or risk of danger to the United States.
"(3) Regulations and stipulations pursuant to this subsection shall not impose strict liability for damage or injury resulting from (A) an act of war, or (B) negligence of the United States.
(4) Any regulation or Stipulation imposing liability without fault shall include a maximum limitation on damages commensurate with the -foreseeable risks or hazards presented. Any liability for damage or injur- in excess of this amount shall be determined by ordinary rules of negligence.
(5) The regulations and stipulations shall also specify the extent to which siich holders shall indemnify or hold harmless the United States for liability, damage, or claims arising in connection with the right-of-way or permit.
(6) Any regulation or stipulation promulgated or imposed pursimilt to this section shall provide that allowners of any interest in, and all affiliates or subsidiaries of any holder of, a riprht-of-way or permit shall be liable to the United States in the event that a claim for damage or injury cannot be collected from the holder.
(7) In any case where liability without f ault is imposed pursuant to this subsection and thedamages involved were caused by the negligence of a third party, the rules of subrogation shall apply in accordance with the law of the jurisdiction where the damage occurred.
"Antitrust Laws
(y) The grant of a right-of -way or permit pursuaTit to this section shall grant no immunity f rom the operation of the Federal antitrust laws."





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TITLE II
S HOIrT TITLE
SEC. 201. This title may be cited as the "Trans-Alaska Pipeline Authorization Act".
CONGRESSIONAL FINDINGS
SEc. 202. The Congress finds and declares that:
(a) The early development and delivery of oil and gas from Alaska's North Slope to domestic markets is in the national interest because of growing domestic shortages and increasing dependence upon insecure foreign sources.
(b) The Department of the Interior and other Federal agencies, have, over a long period of time, conducted extensive studies of the technical aspects and of the environmental, social, and economic impacts of the proposed trans-Alaska oil pipeline, including consideration of a trans-Canada pipeline.
(c) The earliest possible construction of a trans-Alaska oil pipeline from the North Slope of Alaska to Port Valdez in that State will make the extensive proven and potential reserves of low-sulfur oil available for domestic use and will best serve the national interest.
(A) A supplemental pipeline to connect the North Slope with a trans-Canada pipeline may be needed later and it should be studied now, but it should not be regarded as an alternative for a trans-Alaska pipeline that does not traverse a foreign country.

CONGRESSIONAL AUTHORIZATION
SEC. 203. (a) The purpose of this title is to insure that, because of the extensive governmental studies already made of this project and the national interest in early delivery of North Slope oil to domestic markets, the trans-Alaska oil pipeline be constructed promptly without further administrative or judicial delay or impediment. To accomplish this purpose it is the intent of the Congress to exercise its constitutional powers to the fullest extent in the authorizations and directions herein made and in limiting judicial review of the actions taken pursuant thereto.
(b) The Congress hereby authorizes and directs the Secretary of the Interior and other appropriate Federal officers and agencies to issue and take all necessary action to administer and enforce rights-of way, permits, leases. and other authorizations that are necessary for or related to the construction, operation, and maintenance of the transAlaska oil pipeline system, including roads and airstrips, as that system is generally described in the Final Environmental Impact Statement issued by the Department of the Interior on March 20, 1972. The route of the pipeline may be modified by the Secretary to provide during construction o-reater environmental'protection.
(c) Rights-of-way, permits, leases, and other authorizations issued pursuant to this title bv the Secretary shall be subject to the provisions of section 28 of the Mineral Leasinfg Act of 1920. as amended by title I of this Act (except the provisions of subsections (h) (1), (k), (*q), (w)




43-068 0 79 4





46

(2), and (x)); all authorizations issued by the Secretary and other Federal officers and agencies pursuant to this title shall include the terms and conditions required, and may include the terms and conditions permitted, by the provisions of law that would otherwise be applicable if this title had not been enacted, and they may waive any procedural requirements of law or regulation which they deem desirable to waive in order to accomplish the purposes of this title. The direction contained in section 203 (b) shall supersede the provisions of any law or regulation relating to an administrative determination as to whether the authorizations for construction of the trans-Alaska oil pipeline shall be issued.
(d) The actions taken pursuant to this title which relate to the construction and completion of the pipeline system, and to the applications filed in connection therewith necessary to the pipeline's operation at full capacity, as described in the Final Environmental Impact Statement of the Department of the Interior, shall be taken without further action under the National Environmental Policy Act of 1969; and the actions of the Federal officers concerning the issuance of the necessary rights-of-way, permits, leases, and other authorizations for construction and initial operation at full capacity of said pipeline system shall not be subject to judicial review under any law except that claims alleging the invalidity of this section may be brought within sixty days following its enactment, and claims alleging that an action will deny rights under the Constitution of the United States, or that the action is beyond the scope of authority conferred by this title, may be brought within sixty days following the date of such action. A claim shall be barred unless a complaint is filed within the time specified. Any such complaint shall be filed in a United States district court. and such court shall have exclusive jurisdiction to determine such proceeding in accordance with the procedures hereinafter provided, and no other court of the United States, of any State, territory, or possession of the United States. or of the District of Columbia, shall have jurisdiction of any such claim whether in a proceeding instituted prior to or on or after the date of the enactment of this Act. Any such proceeding shall be assi ged for hearing at the earliest possible date, shall take precedence over all other matters pending on the docket of the district court at that time., and shall be expedited in every way by such court. Such court shall not have jurisdiction to crant any injunctive relief against the issuance of any right-of-wav, permit, lease, or other authorization pursuant to this section except in conjunction with a final judgment entered in a case involving a claim filed pursuant to this section. Any review of an interlocutory or final judgment, decree, or order of such district court may be had only upon direct appeal to the Supreme Court of the United States.
(e) The Secretary of the Interior and the other Federal officers and agencies are authorized at any time when necessary to protect the public interest, pursuant to the authority of this section and in accordance with its provisions. to amend or modify any right-of-way, permit, lease, or other authorization issued under this title.
SEc. 204. (a) (1) Except when the holder of the pipeline right-ofway granted pursuant to this title can prove that damages in connection with or resulting from activities along or in the vicinity of the proposed trans-Alaskan pipeline right-of-way were caused by an act





47

of war or negligence of the United States, other government entity, or the damaged party, such holder shall be strictly liable to all damaged parties, public or private, without regard to fault for such damages,' and without regard to ownership of any affected lands, structures, fish, wildlife, or biotic or other natural resources relied upon by Alaska Natives, Native organizations, or others for subsistence or economic purposes. Claims for such injury or damages may be determined by arbitration or judicial proceedings.
(2) Liability under paragraph (1) of this subsection shall be limited to $50,000,000 for any one incident, and the holders of the right-of-way or permit shall be liable for any claim allowed in proportion to their ownership interest in the right-of-way or permit. Liability of such holder's for damages in excess of $50,000,000 shall be in accord with ordinary rules of negligence.
(3) In any case where liability without f ault is imposed pursuant to this subsection and the damages involved were caused by the negligence of a third party, the rules of subrogation shall apply in accordance with the law of the jurisdiction where the damage occurred.
(4) Upon order of the Secretary, the holder of a right-of -way or permit shall provide emergency subsistence and other aid to an affected Alaska Native, Native organization, or other person pending expeditious filing of, and determination of, a claim under this subsection.
(5) Where the State of Alaska is the holder of a right-of-way or permit under this title. the State shall not be subject to the provisions of subsection 204 (a), but the holder of the permit or righlt-of -way for the trans-Alaska pipeline shall be subject to that subsection with respect to facilities constructed or activities conducted under rightsof-way or permits issued to the State to the extent that such holder engages in the construction, operation, maintenance, and termination of facilities. or in other' activities under rights-of -w ay or permits issued to the State.
(b) If any area -within or without the right-of-way or permit area granted under this title is polluted by any activities conducted by or on behalf of the holder to whom such right-of-way or permit was granted, and such pollution damages or threatens to damage aquatic life, wildlife, or public or private property, the control and total removal of the pollutant shall be at the expense of such holder, including any administrative and other costs incurred by the Secretary or any other Federal officer or agency. Upon f ailure of such holder to adequately control and remove such pollutant, the Secretary, in cooperation with other Federal, State, or local agencies, or in cooperation with such holder, or both, shall have the right to accomplish the control and removal at the expense of such holder.
(c) (1) Notwithstanding the -provisions of any other law, if oil that has been transported throuoph the trans-Alaska pipeline is loaded on a vessel at the terminal facilities of the pipeline, the owner and or~erator of the vessel (jointly and severally) and the Trans-Alaska Pipeline Liability Fund established by this subsection, shall be strictly liable without reorard to fault in accordance with the provisions of this subsection for all damages, including clea-n-up costs, sustained by any person or entity, public or private, including residents of Canada, as the result of discharges of oil from such vessel.





48

(2) Strict liability shall not be imposed under this subsection if the owner or operator of the vessel, or the Fund, can prove that the damages were caused by an act of war or by the negligence of the United States or other governmental agency. Strict liability shall not be imposed under this subsection with respect to the claim of a damaged party if the owner or operator of the vessel, or the Fund, can prove that the damage was caused by the negligence of such party.
(3) Strict liability for all claims arising out of any one incident shall not exceed $100,000,000. The owner and operator of the vessel shall be jointly and severally liable for the first $14,000,000 of such claims that are allowed. Financial responsibility for $14,000,000 shall be demonstrated in accordance with the provisions of section 311 (p) of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1321 (p) ) before the oil is loaded. The Fund shall be liable for the balance of the claims that are allowed up to $100,000,000. If the total claims allowed exceed $100,000,000, they shall be reduced proportionately. The unpaid portion of any claim may be asserted and adjudicated under other applicable Federal or state law.
(4) The Trans-Alaska Pipeline Liability Fund is hereby established as a non-profit corporate entity that may sue and be sued in its own name. The Fund shall be administered by the holders of the transAlaska pipeline right-of-way under regulations prescribed by the Secretary. The Fund shall be subject to an annual audit by the Comptroller General, and a copy of the audit shall be submitted to the Congress.
(5) The operator of the pipeline shall collect from the owner of the oil at the time it is loaded on the vessel a fee of five cents per barrel. The collection shall cease when $100,000,000 has been accumulated in the Fund, andi it shall be resumed when the accumulation in the Fund falls below $100,000,000.
(6) The collections under paragraph (5) shall be delivered to the Fund. Costs of administration shall be paid from the money paid to the Fund, and all sums not needed for administration and the satisfaction of claims shall be invested prudently in inc ome- producing securities approved by the Secretary. Income from such securities shall be added to the principal of the Fund.
(7) The provisions of this subsection shall anply only to vessels engaged in transportation between the terminal facilities of the pipeline and ports under the jurisdiction of the United States. Strict liability under this subsection shall cease when the oil has first been brought ashore at a port tinder the jurisdiction of the United States.
(8) In any case where liability without regard to fault is imposed pursuant to this subsection and t'he. damages involved were caused by the uinseaworthiness of the, vessel or by _negligence, the owner and operator of the vessel, and the Fund, as the case may be, shall be subrogated tinder applicable State and Federal laws to the rights tinder said laws of any person entitled to recovery hereunder. If any siibrogee briniys an action based on unseaworthiness of the vessel or negligence of its owner or operator, it, may recover from any affiliate of the owner or operator, if the respective owner or operator fails to satisfy any claim by the suibrogee allowed under this paragraph.





49

(9) This subsection shall not be interpreted to preempt the field of strict liability or to preclude any State from imposing additional requirements.
(10) If the Fund is unable to satisfy a claim asserted and finally determined under this subsection, the Fund may borrow the money needed to satisfy the claim from any commercial credit source, at the lowest available rate of interest, subject to approval of the Secretary.
(11) For purposes of this subsection only, the term "affiliate"" includes(A) Any person owned or effectively controlled by the vessel
owner or operator; or
(B) Any person that effectively controls or has the power effectively to control the vessel owner or operator by
(i) stock interest, or
(ii) representation on a board of directors or similar body,
or
(iii) contract or other agreement -with other stockholders,
or
(iv) otherwise; or
(C) Any person which is under common ownership or control
w ith the vessel owner or operator.
(12) The term "person" means an individual, a corporation, a partnership, an association, a joint-stock company, a business trust, or an unincorporated organization.

ANTITRUST LAWS
SEC. 205. The grant of a right-of -w ay, permit, lease, or other authorization pursuant to this title shall grant no immunity from the operation of the Federal anti-trust laws.

ROADS AND AIRPORTS
SEC. 206. A right-of-way, permit, lease, or other authorization granted under section 203 (b) for a road or airstrip as a related facility of the trans-Alaska pipeline may provide for the construction of a public road or airstrip.

TITLE III-NEGOTIATIONS WITH CANADA
SEC. 301. The President of the United States is authorized and requested to enter into negotiations with the Government of Canada to determine
(a,) the -willingness of the Government of Canada to permit the
construction of pipelines or other transportation systems across Canadian territory for the transport of natural gas and oil from Alaska's North Slope to marketing the United States, including
the use of tankers by way of the Northwest Passage
(b) the need for intergovernmental understandings, agreements, or treaties to protect the interests of the Governments of Canada and the United States and -any party or parties involved with the construction, operation, and maintenance of pipelines





50

or other transportation systems for the transport of such natural
gas or oil;
(c) the terms and conditions under which pipelines or other
transportation systems could be constructed across Canadian
territory;
(d) the desirability of undertaking Ioint studies and investigations designed to insure protection of the environment, reduce legal and regulatory uncertainty, and insure that the respective energy requirements of the people of Canada and of the United
States are adequately met;
(e) the quantity of such oil and natural gas from the North
Slope of Alaska for which the Government of Canada would
guarantee transit: and
(f) the feasibility, consistent with the needs of other sections
of the United States, of acquiring additional energy from other sources that would make unnecessary the shipment of oil from
the Alaska pipeline by tanker into the Puget Sound area.
The President shall report to the House and Senate Committees on Interior and Insular Affairs the actions taken, the progress achieved, the areas of disagreement. and the matters about which more information is needed, together with his recommendations for further action.
SEc. 302. (a) The Secretary of the Interior is authorized and directed to investigate the feasibility of one or more oil or gas pipelines from the North Slone of Alaska to connect with a pipeline through Canada that will deliver oil or aas to United States markets.
(b) All costs associated with making the investigations authorized by subsection (a) shall be charged to any future applicant who is granted a right-of-way for one of the routes studied. The Secretary shall submit to the House and Senate Committees on Interior and Insular Affairs periodic reports of his investigation, and the final report of the Secretary shall be submitted within two years from the date of this Act.
SEC. 303. Nothing in this title sha]l limit the authority of the Secretary of the interior or any other Federal official to grant a gas or oil pipeline right-of-way or permit which he is otherwise authorized by law to grant.
TITLE IV-MISCELLANEOUS

VESSEL CONSTRUCTION STANDARDS
SEC. 401. Section 4417a of the Revised Statutez of the United States (46 U.S.C. 391a), as amended by the Ports and Waterways Safety Act of 1972 (86 Stat. 424, Public Law 92-340), is hereby amended as follows:
"(C) Rules and regulations published pursuant to subsection (7)
(A) shall be effective not earlier than January 1, 1974, with respect to foreign vessels and United States-flag vessels operating in the foreign trade, unless the Secretary shall earlier establish rules and regulations consonant with international treaty., convention, or agreement, which generally address the regulation of similar topics for the protection of the marine environment. In absence of the promulgation of such rules and regulations consonant with international treaty, con-





51

vention, or agreement, the Secretary shall establish an effective date not later than January 1, 1976, with respect to foreign vessels and United States-flagy vessels operating in the foreign trade, for rules and regulations previously published pursuant to this subsection (7) which he then deems appropriate. Rules and regralations published pursuant to subsection (7) (A) shall be effective not later than June 30, 1974, with respect to United States-flag vessels engaged in the coast-wise trade.".
VESSEL TRAFFIC CONTROL
SEC. 402. The Secretary of the Department in -which the Coast Guard is operatiniz is hiereby directed to establish a vessel traffic control system for Prince William Sound and Valdez, Alaska, pursuant to authority contained in title I of the Ports and Waterways Safety Act of 1972 (86 Stat. 424, Public Law 92-340).

CIVIL RIGHTS
SEC. 403. The Secretary of the Interior shall take such affirmative action as he deems necessary to assure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from receiving, or participating in any activity conducted under, any permit, right-of-way, public land order, or othr Federal authorization granted or issued under title II. The Secretary of the Interior shall promulgate. such rules as he deems necessary to carry out the purposes of this subsection and may enforce this subsection, and any rules promulgated under this subsection, through agency and department provisions and rules which sliall be similar to those established and in effect under title VI of the Civil Rights of 1964.

CONFIRMATION OF THE DIRECTOR OF THE ENERGY POLICY OFFICE
SEC. 404. The Director of the Energy Policy Office in the Executive Office of the President shall be appointed by the President, by and with the advice and consent of the Senate: Provided, That if any individual who is serving in this office on the date of enactment of this Act is nominated for such position, he may continue to act unless and until such nomination shall be disapproved by the Senate.
[SEC. 405. Repealed. Public Law 95-164; 91 Stat. 1322.]

EXEM PTION OF FIRST SALE OF CRUDE OIL AND NATURAL GAS OF CERTAIN
LEASES FROM PRICE RESTRAINTS AND ALLOCATION PROGRAMS
SEC. 406. (a) The first sale of crude oil -and natural gas liquids produced from any lease whose average daily production of such substances for the preceding calendar month does not exceed ten barrels per well shall not be~ subject to price restraints established pursu5iant to the Economic Stabilization Act of 1970. as amended, or to any allocation program for fuels or petroleum established pursuant to that Act or to any Federal l aw for the allocation of fuels or petroleum.
(b) To qualify for the exemption under this section. a lease must be operating at the maximum feasible rate of production and in accord with recognized conservation practices.





52 4

(c) The agency designated by the President or by law to imT)lement any such fuels or petroleum allocation program is authorized to conduct inspections to insure compliance with this section and shall promulgate and cause to be published regulations implementing, the provisions of this section. C:p
ADVANCE PAYMENTS TO ALASKA NATIVES
SEC. 407. (a) In view of the delay in construction of a pipeline to transport North Slope crude oil, the sum of $5,000,000 is authorized to be appropriated from the United States Treasury into the Alaska Native Fund every six months of each fiscal year beginning with the fiscal year ending June 30, 1976, as advance payments chargeable against the revenues to be paid under section 9 of the Alaska Native Claims Settlement Act, until such time as the delivery of North Slope crude oil to a pipeline is commenced.
(b) Section 9 of the Alaskan Native Claims Settlement Act is amended by striking the language in subsection (g) thereof and substituting tfie following language: "The payments required by this section shall continue only until a sum of $500,000,000 has been paid into the Alaska Native Fund less the total of advance payments paid into the Alaska Native Fund pursuant to section 407 of the Trans-Alaska Pipeline, Authorization Act. Thereafter, payments which would otherwise go into the Alaska Native Fund will be made to the United States Treasury as reimbursement for the advance payments authorized by section 407 of the Trans-Alaskan Pipeline Authorization Act. The provisions of this section shall no longer apply, and the reservation required in patents under this section shall be of no further force and effect, after a total sum of $500,000,000 has been paid to the Alaska Native Fund and to the United States Treasury pursuant to this Subsection.".
FEDERAL TRADE COMMISSION AUTHORITY
SEC. 408. (a) (1) The Congress hereby finds that the investigative and law enforcement responsibilities of the Federal Trade Commission have been restricted and hampered because of inadequate legal authority to enforce subpoenas and to seek preliminary injunctive relief to avoid unfair competitive practices.
(2) The Congress further finds that as a direct result of this inadequate legal authority significant delays have occurred on a major investigation into the legality of the structure, conduct, and activities of the petroleum industry, as well as in other major investigations designed to protect the public interest.
(b) It is the purpose of this Act to grant the Federal Trade Commission the requisite authority to insure prompt enforcement of the laws the Commission administers by granting statutory authority to directly enforce subpoenas issued by the Commission and to seek preliminary injunctive relief to avoid unfair competitive practices.
(c) Section 5(1) of the Federal Trade Commission Act (15 U.S.C. 45(l) is amended by striking subsection (1) and inserting in lieu thereof:
"M Any T)erson, psi-tnership, or corporation who violates an order of the Commission after it has become final, and while such order





53

is in effect, shall forfeit and pay to the United States a civil penalty of not more than $10,000 for each violation, which shall accrue to the United States and may be recovered in a civil action brought by the Attorney General of the United States. Each separate violation of such an order shall be a separate offense, except that in the case of a violation through continuing failure to obey or neglect to obey a final order of the Commission, each day of continuance of such failure or neglect shall be deemed a separate offense. In such actions, the United States district courts are empowered to grant mandatory injunctions and such other and further equitable relief as they deem appropriate in the enforcement such final orders of the Commission."
(d) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is amended by adding at the end thereof the following new subsection:
"(m) Whenever in any civil proceeding involving this Act the Commission is authorized or required to appear in a court of the United States, or to be represented therein by the Attorney General of the United States, the Commission may elect to appear in its own name by any of its attorneys designated by it for such purpose, after formally notifying and consulting with and giving the Attorney General 10 days to take the action proposed by the Commission." (e) Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is amended by adding at the end thereof the following proviso: "Provided, That the exception of 'banks and common carriers subject to the Act to regulate commerce' from the Commission's powers defined in clauses (a) and (b) of this section, shall not be construed to limit the Commission's authority to gather and compile information, to investigate, or to require reports or answers from, any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations, or industry which is not engaged or is engaged only incidentally in banking or in business as a common carrier subject to, the Act to regulate commerce."
(f )Section 13 of the Federal Trade Commission Act (15 U. S.C. 153) is amended by redesignating (b) as (c) and inserting the following new subsection:
(b) Whenever the Commission has reason to believe" (1) that any person partnership, or corporation is violating,
or is about to violate, any provision of law enforced by the Federal Trade Commission, and
(2) that the enjoining thereof pending the issuance of a complaint by the Commission and until such complaint is dismissed by the Commission or set aside by the court on review, or until the order of the-Commission made thereon has become final,
would be in the interest of the publicthe Commission by any of its attorneys designated by it for such purpose may bring suit in a district court of the United States to enjoin any such act or practice. Upon a proper showing that, weighing the equities and considering the Commission's likeliliood of ultimate success, such action would be in the public interest, and after notice to the defendant, a temporary restraining orderor a preliminary injunction may be granted without bond: Provided. however. That if a complaint is not filed within such period (not exceeding 20 days) as may be specified by the court after issuance of the temporary restrain-





54

ing order or preliminary injunction, the order or injunction shall be dissolved by the court and be of no further force and effect: Provided further, That in proper cases the Commission may seek, and after proper proof, the court may issue, a' permanent injunction. Any such suit shall be brought in the district in which such person, partnership, or corporation resides or transacts business."
(g) Section 16 of the Federal Trade Commission Act (15 U.S.C. 56) is amended to read as follows:
"SEC. 16. Whenever the Federal Trade Commission has reason to believe that any person, partnership, or corporation is liable to a penalty under section 14 or under subsection (1) of section 5 of this Actl it shall"(a) certify the facts to the Attorney General, whose duty it
shall be to cause appropriate proceedings to be brought for the enforcement of the provisions of such section or sub4ction; or
"(b) after compliance with the requirements with section 5
(m), itself cause such appropriate proceedings to be brought."
GENERAL ACCOUNTING OFFICE AUTHORUY
SEC. 409. (a) Section 3502 of title 44, United States Code, is amended by inserting in the first paragraph defining "Federal agency" after the words "the General Accounting Office" and before the words "nor the governments" the words "independent Federal regrulatorv agencies,11.
(b) Chapter 35 of title 44, United States Code, is amended by adding after section 3511 the following new section:
3512. Information for independent regulatory agencies
(a) The Comptroller General of the United States shall review the collection of information required by independent Federal regulatory agencies described in section 3502 of this chapter to assure that information required by such agencies is obtained with a minimum burden upon business enterprises, especially small business enterprises, and other persons required to furnish the information. Unnecessary duplication of eff orts in obtaining information already filed with other Federal agencies or departments through the use of reports, questionnaires, and other methods shall be eliminated as rapidly as practicable. Information collected and tabulated by an independent regulatory agency shall, as far as is expedient, be tabulated in a manner to maximize the usefulness of the information to other Federal agencies and the -public.
"(b) In carrying out the policy of this section, the Comptroller General shall review all existing information gathering practices of independent regulatory agencies as well as requests for additional information with a view toward" (1) avoiding duplication of effort by independent regulatory
a encies, and
(2) minimizing the compliance burden on business enterprises
and other persons.
(c) In complying with this section, an independent regulatory agency shall not conduct or sponsor the collection of information upon an identical item from ten or more persons, other than Federal employees, unless, in advance of adoption or revision of any plans or forms to be used in the collection





55

(1) the agency submitted to the Comptroller General the plans
or forms, together with the copies of pertinent regulations and of other related materials as the Comptroller General has specified;
and
(2) the Comptroller General has advised that the information
is not presently available to the independent agency from another source within the Federal Government and has determined that the proposed plans or forms are consistent with the provision of this section. The Comptroller General shall maintain facilities for carrying out the purposes of this section and shall render such advice to the requestive independent regulatory agency within
forty-five days.
(d) While the Comptroller General shall determine the availability from other Federal sources of the information sought and the appropriateness of the forms for the collection of such information, the independent regulatory agency shall make the final determination as to the necessity of the information in carrying out its statutory responsibilities and whether to collect such information. If no advice is received from the Comptroller General with forty-five days, the independent regulatory agency may immediately proceed to obtain such information.
"(e) Section 3.508(a) of this chapter dealincr with unlawful disclosure of information shall apply to the use of information by independent regulatory agencies.
"(f) The Comptroller General may promulgate rules and regulations necessary to carry out this chapter."

EQUITABLE ALLOCATION OF NORTH SLOPE CRUDE OIL
SEC. 410. The Congress declares that the crude oil on the North Slope of Alaska is an important part of the Nation's oil resources, and that the benefits of such crude oil should be equitably shared, directly or indirectly, by all regions of the country. The President shall use any authority he may have to insure an equitable allocation of available North Slope, and other crude oil resources and petroleum products among all regions and all of the several States.

SEPARABILITY
SEC. 411. If any provision of this Act or the applicability thereof is held invalid the remainder of this Act shall not be affected thereby.
Approved November 16, 1973.
Legislative History:
House Reports: No. 93-414 accompanying H.R. 9130 (Comm. on Interior and
Insular Affairs) and No. 93-617 and No. 93-624 (Comm. of Conference). Senate Report No. 93-207 (Comm. on Interior and Insular Affairs). Congressional Record, Vol. 119 (1973) :
July 9-14, 16, 17, considered and passed Senate.
Aug. 2, considered and passed House, amended, in lieu of H.R. 9130.
Nov. 12, House agreed to conference report.
Nov. 13, Senate agreed to conference report.
Weekly Compilation of Presidential Documents, Vol. 9, No. 46:
Nov. 16, Presidential statement.































PETROLEUM MARKETETG PRACTICES
ACT




(57)








59


PETROLEUM MARKETING PRACTICES ACT

An Act
June 19, 1978 To provide for the protection of franchised distributors and retailers of motor [H.R. 1301 fuel and to encourage conservation of automotive gasoline and competition in
the marketing of such gasoline by requiring that information regarding the
octane rating of automotive gasoline be disclosed to consumers.

Be it enacted by the Senate and lIouse of Representatives of the Petroleum United States of Ame7ica in Co,? qress assembled, That this Act may be
Marketing cited as the "Petroleum Marketing Practices Act".
Practices Act.
15 USC 2801 TABLE OF CONTENTS
note. TITLE I-FRANCHISE PROTECTION
See. 101. Definitions.
See. 102. Franchise relationship; termination and nonrenewal.
See. 103. Trial franchises and interim franchises; nonrenewal.
See. 104. Notification of termination or nonrenewal.
See. 105. Enforcement.
See. 106. Relationship of this title to State law.
TITLE 11-OCTANE DISCLOSURE See. 201. Definitions.
See. 202. Octane testing and disclosure requirements.
Sec. 203. Administration and enforcement.
See. 204. Relationship of this title to State law.
See. 205. Effective dates.
TITLE III-STUDY OF SUBSIDIZATION OF MOTOR FUEL MARKETING
See. 301. Study of subsidization of motor fuel marketing.

TITLE I-FRANCHISE PROTECTION

DEFINMONS
15 USC 2801. SEC. 101. As used in this title:
(1) (A) The term "franchise" means any contract(i) between a refiner and a distributor,
(ii) between a refiner and a retailer, (iii) between a distributor and another distributor, or
(iv) between a distributor and a retailer, under which a refiner or distributor (as the case may be) authorizes or permits a retailer or distributor to use, in connection with the sale, consignment, or distribution of motor fuel, a trademark which is owned or controlled by such refiner or by a, refiner which supplies
motor fuel to the distributor which authorizes or permits such use.
(B) The term "franchise" includes(i) any contract under which a retailer or distributor (as the case may be) is authorized or permitted to occupy leased marketing premises, which premises are, to be employed in connection with the sale, consignment, or distribution of motor fuel under a trademark which is owned or controlled by such refiner or by a refiner which supplies motor fuel to the distributor which authorizes or permits such occupancy;





60


(ii) any contract pertaining to the supply of motor fuel which
is to be sold, consigned or distributed(I) under a trademark owned or controlled by a refiner; or (II) under a contract which has existed continuously since
May 15, 1973, and pursuant to which, on May 15, 1973, motor fuel was sold, consigned or distributed under a trademark
owned or controlled on such date by a refiner; and
(iii) the unexpired portion of any franchise, as defined by the
preceding provisions of this paragraph, which is transferred or assigned as authorized by the provisions of such franchise or by any applicable provision of State law which permits such transfer or assignment without regard to any provision of the franchise.
(2) The term "franchise relationship" means the respective motor fuel marketing or (listribtion obligations and responsibilities of a franchisor and a franchisee which result from the marketing of motor fuel under a franchise.
(3) The term "franchisor" means a refiner or distributor (as the case may be) who authorizes or permits, under a franchise, a retailer or distributor to use a trademark in connection with the sale, consignment. or distribution of motor fuel.
(4) The term "franchisee" means a retailer or distributor (as the case may be) who is authorized or permitted, under a franchise, to use a trademark in connection with the sale, consignment, or distribution of motor fuel.
(5) The term "refiner" means any person engaged in the refining of crude oil to produce motor fuel, and includes any affiliate of such person.
(6) The term "distributor" means any person, including any affiliate of such person, who-(A) purchases motor fuel for sale. consignment. or distribution
to another: or
(B) receives motor fuel on consignment for consignment or
distribution to his own motor fuel accounts or to accounts of his supplier, but shall not include a person who is an employee of, or merely serves as a common carrier providing transportation
service for. slch supplier.
7) The terin "retailer" means any person who purchases motor fuel for sale to the general public for ultimate consumption.
(S) The term "marketing premises" means, in the case of any franchise, premises which, under such franchise, are to be employed bv the franchisee in connection with the sale, consignment, or distrib'ution of motor fuel.
(9) The term "leased marketing premises" means marketing premises owned. leased. or in any way controlled by a franchisor and which the franchisee is authorized or permitted, under the franchise, to employ in connection with the sale, consignment, or distribution of motor fuel.
(10) The term "contract" means any oral or written agreement. For supply purposes, delivery levels during the same month of the previous year shall be prima facie evidence of an agreement to deliver such levels.
(11) The term "trademark" means any trademark, trade name, service mark, or other identifying symbol or name.
(12) The term "motor fuel" means gasoline and diesel fuel of a type distributed for use as a fuel in self-propelled vehicles designed primarily for use on public streets, roads, and highways.





61


(13) The term "failure" does not include(A) any failure which is only technical or unimportant to the franchise relationship; or
(B) any failure for a cause beyond the reasonable control of the franchisee.
(14) The terms "fail to renew" and "nonrenewal" mean, with respect
to any franchise relationship, a failure to reinstate, continue, or extend
the franchise relationship(A) at the conclusion of the term, or on the expiration date, stated in the relevant franchise;
(B) at any time, in the case of the relevant franchise which does not state a term of duration or an expiration date; or
(C) following a termination (on or after the date of enactment of this Act) of the relevant franchise which was entered into prior to such date of enactment and has not been renewed after such date.
(15) The term "affiliate" means any person who (other than by
means of a franchise) controls, is controlled by, or is under common
control with. any other person.
(16) The term "relevant geographic market area" includes a State
or a standard metropolitan statistical area as periodically established
bv the Office of Management and Budget.
(17) The term "termination" includes cancellation.
(18) The term "commerce" means any trade, traffic, transportation,
exchange, or other commerce(A) between any State and any place outside of such State: or
(B) which affects any trade, transportation, exchange, or other commerce described in subparagraph (A).
(19) The term "State" means any State of the United States. the
District of Columbia. the Commonwealth of Puerto Rico, the Virgin Islands. American Samoa. Guam. and any other commonwealth, territory, or l)ossession of the United States

FRANCHISE RELATIONSHIP TERMINATION AND NONRENEWAL
15 USC 2802. SEC. 102. (a) Except as provided in subsection (b) and section 103.
no franchisor engaged in the sale. consignment. or distribution of
i iotor fuel in commerce may(1) terminate any franchise (entered into or renewed on or after the date of enactment of this Act) prior to the conclusion of the term, or the expiration date, stated in the franchise: or
(2) fail to renew any franchise relationship (without regard to the date on which the relevant franchise was entered into or renewed).
(b) (1) Any franchisor may terminate any franchise (entered into
or renewed on or after the date of enactnwnt of this Act) or may fail
to renew any franchise relationship, if(A) the notification requirements of section 104 are met; and
(B) such termination is based upon a ground described in paragraph (2) or such nonrenewal is based upon a ground described in paragraph (2) or (3).
(2) For purposes of this subsection, the following are grounds for
termination of a franchise or nonrenewal of a franchise relationship:
(A) A failure by the franchisee to comply with any provision of the franchise, 'which provision is both reasonable and of












43-068 0 79 5





62



material significance to the franchise relationship, if the franchisor first acquired actual or constructive knowledge of such failure(i) not more than 120 days prior to the date on which
notification of termination or nonrenewal is given, if notification i s given pursuant to section 104 (a) ; or
(ii) not more than 60 (lays prior to the date on which
notification of termination or nonrenewal is given, if less than
90 days notification is given pursuant to section 104 (b) (1).
(B) A failure by the franchisee to exert good faith efforts to carry out the provisions of the franchise, if(i) the franchisee was apprised by the f ranchisor in writing
of such failure and was afforded a reasonable opportunity to
exert good faith efforts to carry out such provisions; and
(ii) such failure thereafter continued within the period
which began not more than 180 days before the (late notification of termination or nonrenewal was given pursuant to
section 104.
(C) The occurrence of an event which is relevant to the franchise relationship and as a result of which termination of the franchise or nonrenewal of the franchise relationship is reasonable, if such event occurs during the period the franchise is in effect and the franchisor first acquired actual or constructive knowledge of such occurrence(i) not more than 120 days prior to the date on which
notification of termination or nonrenewal is given, if notification is given pursuant to section 104(a) ; or
(ii) not more than 60 days prior to the date on which notification of termination or nonrenewal is given, if less than
90 aysnoifiaton is given pursuant to section 104(b) (1).
(D) An agreement, in writing, between the franchisor and the franchisee to terminate the franchise or not to renew the franchise relationship, if(i) such agreement is entered into not more than 180 days
prior to the date of such termination or, in the case of nonrenewal, not more than 180 days prior to the conclusion of
the term, or the expiration date, stated in the franchise;
(ii) the franchisee is promptly provided with a copy of
such agreement,. together with the summary statement
described in section 104(d) ; and
(iii) within 7 days after the date on which the franchisee
is provided a copy of such agreement, the franchisee has not posted by certified mail a written notice to the franchisor
repudiating such agreement.
(E) In the case of any franchise entered into prior to the date of the enactment of this Act and in the case of any franchise entered into or renewed on or after such date (the term of which is 3 years or longer, or with respect to which the franchisee was offered a term of 3 years or longer), a determination made by the franchisor in good faith and in the normal course of business to withdraw from the marketing of motor fuel through retail outlets in the relevant geographic market area in which the marketing premises are located, if(i) such determination(I) was made after the date such franchise was
entered into or renewed, and






63


(11) was based upon the occurrence of changes in relevant facts and circumstances after such (late;
(ii) the termination or nonrenewal is not for the purpose of converting the premises. which are the subject of thle f ranchise. to operation by employees or agents of the franchisor for such franchisor's own account,, and (iii) in the case of leased marketing premises(I) the franchisor, during the 180-day period after notification was given pursuant to section 104. either made a bona fide offer to sell, transfer, or assign to the franchisee such f ranchisor's interests in such prem ises. or. if applicable, offered the franchisee a right of first refusal of at least 45 days duration of an offer, made by another, to purchase such f ranchisor's i nterest in such p rem ises:, or
(11) in the case of the sale, transfer, or assignment to another person of the f ranchisor's interest in such prinises in connection with the sale, transfer, or assignment to such other person of the f ranchisor's interest in one or more other marketing premises, if such other person offers, in good faith, a franchise to the franchisee on terms and conditions which are not discriminatory to the franchisee as compared to f ranchises then currently being offered by such other person or franchises then in effect and wit respect to which such other person is the franchisor.
Grounds for (3) For purposes of this subsection. the following are grounds for
nonreewal. nonrenewal of a franchise relationship:
(A) The failure of the franchisor and the franchisee to agree to changes or additions to the provisions of the franchise, if(i) such changes or additions are the result of determinations made by the franchisor in good faith and in the normal course of 'business; and
(ii) such failure is not the result of the franchisor's insistence upon such changes or additions for the purpose of preventing the renewal of the franchise relationship.
(B) The receipt of numerous bona fide customer complaints by the franchisor concerning the franchisee's operation of the marketing premises, if(i) the franchisee was promptly apprised of the existence and nature of such complaints following receipt of such comnplaints by the franchisor; and
(ii) if such complaints related to the condition of such premises or to the conduct of any employee of such franchisee, the franchisee did not promptly take action to cure or correct the basis of such complaints.
*(C) A failure by the franchisee to operate the marketing premises in a clean, safe, and healthful manner, if the franchisee failed
-to do so on two or more previous occasions and the franchisor notified the franchisee of such failures.
(D) In the case of any franchise entered into prior to the date of the enactment of this Act (the unexpired term of which, on such date of enactment, is 3 years or longer) and, in the case of any franchise entered into or renewed on or after such date (the term of which was 3 years or longer, or with respect to winch the franchisee was offered a term of 3 years or longer), a determina-





64


tion made by the franchisor in good faith and in the normal
course of business, if(i) such determination is(I) to convert the leased marketing premises to a use
other than the sale or distribution of motor fuel,
(II) to materially alter, add to, or replace such
premises,
(III) to sell such premises, or
(IV) that renewal of the franchise relationship is
likely to be uneconomical to the franchisor despite any reasonable changes or reasonable additions to the provisions of the franchise which may be acceptable to the
franchisee;
(ii) with respect to a determination referred to in subclause (II) or (IV), such determination is not made for the purpose of converting the leased marketing premises to operation by employees or agents of the franchisor for such
franchisor's own account; and
(iii) in the case of leased marketing premises such franchisor, during the 90-day period after notification was given
pursuant to section 104, either(I) made a bona fide offer to sell, transfer, or assign
to the franchisee such franchisor's interests in such premises; or
(II) if applicable, offered the franchisee a right of
first refusal of at least 45-days duration of an offer, made by another, to purchase such franchisor's interest
in such premises.
(c) As used in subsection (b) (2) (C), the term "an event which is Definition. relevant to the franchise relationship and as a result of which termination of the franchise or nonrenewal of the franchise relationship is reasonable" includes events such as(1) fraud or criminal misconduct by the franchisee relevant
to the operation of the marketing premises;
(2) declaration of bankruptcy or judicial determination of
insolvency of the franchisee;
(3) continuing severe physical or mental disability of the franchisee of at least 3 months duration which renders the franchisee unable to provide for the continued proper operation of the
marketing premises;
(4) loss of the franchisor's right to rilant possession of the
leased marketing premises through expiration of an underlying lease, if the franchisee was notified in writing, prior to the commencement of the term of the then existing franchise(A) of the duration of the underlying lease. and
(B) of the fact that such underlying lease might expire and
not be renewed during the term of such franchise (in the case of termination) or at the end of such term (in the case of
nonrenewal) :
(5) condemnation or other taking, in whole or in part, of the
marketing premises pursuant to the power of eminent domain;
(6) loss of the franchisor's right to grant the right to use the
trademark which is the subject. of the franchise, unless such loss was due to trademark abuse, violation of Federal or State law, or other fault or negligence of the franchisor, which such abuse. rio-






65



lation, or other fault or negligence is related to action taken in bad faith by the franchisor
(7) destruction (other than by the franchisor) of all or a substantial1 part of the marketing premises;
(8) failure by the franchisee to pay to the franchisor in a timely manner when due all sums to which the franchisor is legally entitled;
(9) failure by the franchisee to operate the marketing premises for
(A) 7 consecutive days, or
(B) such lesser period which under the facts and circumStances constitutes an unreasonable period of time;
(10) willful adulteration, mislabeling or misbranding of motor fuels or other trademark violations by the franchisee;
(11) knowing failure of the franchisee to comply with Federal, State, or local laws or regulations relevant to the operation of the marketing premises; and
(12) conviction of the franchisee of any felony involving moral turpitude.
(d) In the case of any termination of a franchise (entered into or
renewed on or after the date of enactment of this Act), or in the case of any nonrenewal of a franchise relationship (without regard to the date on which such franchise relationship was entered into or
renewed)
(1) if such termination or nonrenewal is based upon an event described in subsection (c) (5), the franchisor shall fairly apportion between the franchisor and the franchisee, compensation, if any, received by the franchisor based upon any loss of business opportunity or good will; and
(2) if such termination or nonrenewal is based upon an event described in subsection (c) (7) and the leased marketing premises are subsequently rebuilt or replaced by the franchisor and
oprated under a franchise, the franchisor shall1, within a reasonable period of time, grant to the franchisee a right of first refusal of the franchise under which such premises are to be operated.

TRIAL FRANCHISES AND INTERIM FRANCHISES; NONRENEWAL
15 Usc 2803. SEC. 103. (a) The provisions of section 102 shall not apply to the
nonre-newal of any franchise relationship(1) under a trial franchise; or
(2) under an interim franchise. Definitions. (b) For purposes of this section(1) The term "trial franchise" means any franchise(A) which is entered into on or after the date, of enactment of this Act;
(B) the franchisee of which has not previously been a party to a franchise with the franchisor;
(C) the initial term of which is for a period of not more than 1 year; and
(D) which is in writing and states clearly and conspicuOusly(i) that the franchise is a trial franchise;
(ii) the duration of the initial term of the franchise; (iii) that the franchiser may fail to renew the franchise relationship at the conclusion of the initial term stated in the franchise by notifying the franchisee, in






66


accordance with the provis .ions of section 104, of the franchisor's intention not to renew the franchise relationship; and
(iv) that the provisions of section 102, limiting the
right of a franchisor to fail to renew a franchise relationshiip, are not applicable to such trial franchise.
(2) The term "trial franchise" does not include any unexpired
period of any term of any franchise (other than a trial franchise, as defined by paragraph (1)) which was transferred or assigned by a franchisee to the extent authorized by the provisions of-the franchise or any applicable provision of State law which permits such transfer or assignment, without regard to any provision of
the franchise.
(3) The term "interim franchise" means any franchise,(A) which is entered into on or after the date of the enactment of this Act;
(B) the term of which, when combined with the terms of
all prior interim franchises between the franchisor and the
franchisee, does not exceed 3 years;
(C) the effective date of which occurs immediately after
the expiration of a prior franchise, applicable to the marketing premises, which was not renewed if such nonrenewal(i) was based upon a determination described in section 102 (b) (2) (E) and
(ii) the requirements of section 102 (b) (2) (E) were
satisfied; and
(D) which is in writing and states clearly and
conspicuouslyi) that the franchise is an interim franchise;
ii) the duration of the franchise; and
(iii) that the franchisor may fail to renew the franchise at the conclusion of the term stated in the franchise based upon a determination made by the franchisor in
good faith~ and in the normal course of business to withdraw from the marketing of motor fuel through retail outlets in the relevant geographic market area in which the marketing premises are located if the requirements of
section 102 (b) (2) (E) (ii) and (iii) are satisfied.
(c) If the notification requirements of section 104 are met, any f ranchisor may fail to renew any franchise relationship(1) under any trial franchise, at the conclusion of the initial
term of such trial franchise; and
(2) under any interim franchise, at the conclusion of the term
of such interim franchise, if(A) such nonrenewal is based upon a determination
described in section 102 (b) (2) (E) ; and
(B) the requirements of section 102 (b) (2) (E) (ii) and
(iii) are satisfied.

NOTIFICATION OF TERMINATION OR NONRENEWAL
SEC. 104. (a) Prior to termination of any franchise or nonrenewal 15 USC 2804. of any franchise relationship, the franchisor shall furnish notification of such termination or such nonrenewal to the franchisee who is a party to such franchise or such franchise relationship(1) in the manner described in subsection (c) ; and






67



(2) except as provided in subsection (b), not less than 90 days prior to the date on which such termination or nonrenewal takes effect.
(b) (1) In circumstances in which it would not be reasonable for
the franchisor to furnish notification, not less than 90 days prior to the date on which termination or nonrenewal takes effect, as required
by subsection (a) (2)
(A) such franchisor shall furnish notification to the franchisee affected thereby on the earliest date on which furnishing of such notification is reasonably practicable; and
(B) in the case of leased marketing premises, such franchisor(i) may not establish a new franchise relationship with respect to such premises before the expiration of the 30-day period which begins(I) on the date notification was posted or personally delivered, or
(II) if later, on the date on which such termination or nonrenewal takes effect; and
(ii) may, if permitted to do so by the franchise agreement, repossess such premises and, in circumstances under which it would be reasonable to do so, operate such premises through employees or agents.
(2) In the case of any termination of any franchise or any nonrenewal of any franchise relationship pursuant to the provisions of
section 102 (b) (2) (E) or section 103 (c) (2'). the franchisor shall(A) furnish notification to the franchisee not less than 180 days prior to the date on which such termination or nonrenewal takes effect; and
(B) promptly provide a copy of such notification, together with a plan describing the schedule and conditions under which the franchisor will withdraw from the marketing of motor fuel through retail outlets in the relevant geographic area, to the Governor of each State which contains a portion of such area.
(c) Notification under this section(1) shall be in writing;
(2) shall be posted by certified mail or personally delivered to the franchisee; and
(3) shall contain(A) a statement of intention to terminate the franchise or not to renew the franchise relationship, together with the reasons therefor;
(B)_ the date on which such termination or nonrenewal takes effect; and
(C) the summary statement prepared under subsection (d). Publication in (d) (1) Not later than 30 days after the date of enactment of this Federal Register. Act, the Secretary of Energy shall prepare and publish in the Federal
Register a simple and concise summary of the provisions of this title, including a statement of the respective responsibilities of, and the remedies and relief available to, any franchisor and franchisee under
this title.
(2) In the case of summaries required to be furnished under the
provisions of section 102 (b) (2) (D) or subsection (c) (3) (C) of this section before the date of publication of such summary in the Federal Register, such summary may be furnished'not later than 5 days after it is so published rather than at the time required under such provisions.






68


ENFORCEMENT
SEC. 105. (a) If a franchisor fails to comply with the requirements 15 USC 2805. of section 102 or 103, the f ranch* see a maintain a civil action against such franchisor. Such action mg be brought, without regard to the Jurisdiction. amount in controversy, in the district court of the United States in any judicial district in which the principal place of business of such franchisor is located or in which such franchisee is doing business, except that no such action may be maintained unless commenced within
1 year after the later of(1) the date of termination of the franchise or nonrenewal of
the franchise relationship; or
(2) the date the franchisor fails to comply with the requireinents of section 102 or 103.
(b) (1) In any action under subsection (a), the court shall grant such equitable relief as the court determines is necessary to remedy the effects of any failure to comply with the requirements of section 102 or 103, including declaratory judgment, mandatory or prohibitive injunctive relief, and interim equitable relief.
(2) Except as provided in paragraph (3), in any action under sub- Preliminary section (a), the court shall grant a preliminary injunction if- injunction.
(A) the, franchisee shows(i) the franchise, of which he is a part has been terminated
or the franchise relationship of which e is a party has not
been renewed, and
(ii) there exist sufficiently serious questions going to the
inherits to make such questions a fair ground for litIgation;
and
(B) the court determines that, on balance, the hardships
imposed upon the franchisor by the issuance of such preliminary injunctive relief will be less than the hardship which would be imposed upon such franchisee if such preliminary injunctive relief
were not granted.
(3) Nothing in this subsection prevents any court from requirir g the franchisee in any action under subsection (a) to post a bond, in an amount established by the court, prior to the issuance or continuation of any equitable relief.
(4) In any action under subsection (a), the court need not exercise its equity powers to compel continuation or renewal of the franchise relationship if such action was commenced(A) more than 90 days after the date on which notification
pursuant to section 104 (a) was posted or personally delivered to
the franchisee;
(B) more than 180 days after the date on which notification
pursuant to section 104(b) (2) was posted or personally delivered
to the franchisee; or
(C) more than 30 days after the date on which the termination
of such franchise or the nonrenewal of such franchise relationship takes effect if less than 90 days notification was provided pursuant
to section 104(b) (1).
(c) In any action under subsection (a), the franchisee shall have the burden of proving the termination of the franchise or the nonrenewal of the franchise relationship. The franchisor shall bear the burden of going forward with evidence to establish as an affirmative defense that such termination or nonrenewal was pennitted under section 102 (b) or 103, and, if applicable, that such franchisor complied with the requirements of section 102 (d).





69


Damages. (d) (1) If the franchisee prevails in any action under subsection
(a), such franchisee shall be entitled(A) consistent with the Federal Rules of Civil Procedure, to actual damages;
(B) in the case of any such action which is based upon conduct of the franchisor which was in willful disregard of the requirements of section 102 or 103, or the rights of the franchisee thereunder, to exemplary damages, where appropriate; and
(C) to reasonable attorney and expert witness fees to be paid by the franchisor, unless the court determines that only nominal damages are to be awarded to such franchisee, in which case the court, in its discretion, need not direct that such fees be paid by the franchisor.
(2) The question of whether to award exemplary damages and the
amount of any such award shall be determined by the court and not
by a J* ury.
(3) In any action under subsection (a), the court may, in its discretion, direct that reasonable attorney and expert witness fees be paid
by the franchisee, if the court finds ihat such action is frivolous.
(e) (1) In any action under subsection (a) with.respect to a failure
of a franchisor to renew a franchise relationship in compliance with the requirements of section 102, the court may not compel a continuation or renewal of the franchise relationship if the franchisor demonstrates to the satisfaction of the court that(A) the basis for such nonrenewal is a determination made by the franchisor in good faith and in the normal course of business(i) to convert the leased marketing premises to a use other than the sale or distribution of motor fuel,
(ii) to materially alter, add to, or replace such premises, (iii) to sell such premises,
(iv) to withdraw from the marketing of motor fuel through retail outlets in the relevant geographic market area in which the marketing premises are located, or
(v) that renewal of the franchise relationship is likely to be uneconomical to the franchisor despite any reasonable changes or reasonable additions to the provisions of the franchise which may be acceptable to the franchisee; and
(B) the requirements of section 104have been complied with.
(2) The provisions of paragraph (1) shall not affect any right of
any franchisee, to recover actual damages and reasonable attorney and expert witness fees under subsection (d) if such nonrenewal is prohibited by section 102.
RELATIONSHIP OF THIS TITIE TO STATE LAW
15 USC 2806. SEc. 106. (a) To the extent that any provision of this title applies
to the termination (or the furnishing of notification with respect thereto) of any franchise, or to the nonrenewal (or the, furnishing of notification with respect thereto) of any franchise, relationship, no State or any political subdivision thereof may adopt, enforce, or continue in effect any provision of any law or regulation (including any remedy or penalty applicable to any violation thereof) with respect to termination (or the furnishing of notification with respect thereto) of any such franchise or to the nonrenewal (or the furnishing of notification with respect thereto) of any such franchise relationship unless such provision of such law or -regulation is the same, as the applicable
provision of this title.






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(b) Nothing in this title authorizes any transfer or assignment of any franchise or prol ibits any transfer or assignment of any f ranchise as authorized by the provisions of such franchise or by any applicable provision of State law which permits such transfer or assignment without regard to any provision of the franchise.
TITLE IT-OCTANE DISCLOSURE

DEFINITIONS
SEC. 201. As used in this title: 15 USC 2821.
(1 The term "octane rating" means the rating of the antiknoel characteristics of a grade or type of automotive gasoline as determined by dividing by 2 the sum of the research octane number plus the motor octane number, unless another procedure is prescribed under section 203 (c) (3), in which case such term means the rating of such characteristics as determined under the procedure so prescribed.
(2) The terms "research octane number" and "motor octane
number" have the meanings given such terms in the specifications of the American Society for Testing and Materials (AST-.M) entitled "Standard Specifications for Automotive Gasoline," designated D 439 (as in effect on the date of the eiiactment of this Act) and, with respect to any grade or type of automotive gasoline, are determined in accordance with test methods set forth in ASTM standard test methods designated D 2699 and D 2700
(as in effect on such date).
(3) The term "knock" means the combustion of a fuel spontaneously in localized areas of a cylinder of a spark-ignition engine, instead of the combustion of'such fuel progressing from
the spark.
(4) The term "gasoline retailer" means anv Y)erson who
markets automotive gasoline to the general public for ultimate
consumption.
(5) The, term. "refiner" means any person engaged in(A) the refining of crude oil to produce automotive gasoline, or
(B) the importation of automotive gasoline.
(6) The term "automotive gasoline" means gasoline of a type
distributed for use as a fuel in any motor vehicle.
(7) The term "motor vehicle" means any self-propelled fourwheeled vehicle, of less than 6,000 pounds gross vehicle weight, which is designed primarily for use on public streets, roads. and
highways.
(8) The term "new motor vehicle" means any motor vehicle
the equitable or legal title to which has not previously been transferred to an ultimate. purchaser.
(9) The term "ultimate purchaser" means, with respect to any
item, the first person who purchases such item for purposes other
than resale.
(10) The term "manufacturer" means any person who imports,
manufactures, or assembles motor vehicles for sale.
(11) The term "octane requirement" means, with respect to
automotive gasoline for use in a motor vehicle or a class thereof, imported, manufactured, or assembled by a manufacturer, the minimum octane rating of such automotive gasoline which such manufacturer recommends for the efficient operation of such






71



motor vehicle, or a substantial portion of such class, without knocking.
(12) The term -'model year" means a manufacturer's annual production period (as determined by the Federal Trade Commission) for motor vehicles or a class of motor vehicles. If a mnanufacturer has no annual production period. the term "model year" means the calendar year.
(13) The term commercec" means any trade, traffic, transportation, exchange. or other commerce(A) between any State andl any place outside of such State: or
(B) which affects any trade. transportation, exchange, or other commerce described in subparagraph (A).
(14) The term "State'* means any State of the United States, the District of Columbia. the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam, and any other commonwealth. territory, or possession of the United States.
(1.5) the term "person", for purposes of applying any provision of the Federal Trade Commn-ission Act. with respect to any provision of this title, includes a partnership and a corporation.
(16) The term "distributor" means any person who receives gasoline and distributes such gasoline to another person other than the ultimate purchaser.

OCTANE TESTING A ND DI1SC LOSURE REQUIREMENTS
15 Usc 2822. SEC. 202. (a) Each refiner who distributes automotive gasoline in
commerce shall(1) determine the octane rating- of any such Ii asoline: and
(2) if such refiner distributes such gasoline to any person other than the ultimate purchaser, certify, consistent with the determinat ion made under paragraph (1)., the octane rating, of such gasol ine.
(b) Each distributor who receives automotive gasoline, the octane
ratincr of which is certified to him under' this section. and distributes such gasoline in commerce t~o another person other than the ultimate purchaser shall certify to such other person the octane rating of such
gasoline consistent with(1) the octane, rating of such gasoline certified to such distributor : or
(2) if such distributor elects (at such time and in such manner
-is the Federal Trade Commission may, by rule, prescribe), the octane rating of such gasoline determined by such distributor.
(c) Each gasoline retailer shall display in a clear and conspicuous
manner, at the point of sale to ultimate purchasers of automotive gasoline, the octane rating df such gasoline, which octane rating shall be
consistent with(1) the octane rating of such gasoline certified to such retailer under subsection (a) (2) or (b);
(2) if 'such gasoline, retailer elects (at such time and in such manner as the Federal Trade Commission may. by rule, pre-scribe), the octane rating of such gasoline determined by such retailer for such gasoline; or
(3) if such gasoline retailer is a refiner, the octane rating of such gasoline determined under subsection (a) (1). Rules. (d) The Federal Trade Commission shall, by rule, prescribe requirements, applicable to any manufacturer of new motor vehicles, with





72



respect to the display on each such motor vehicle (or representation in connection with the sale of each such motor vehicle) of the octane requirement of such motor vehicle.
(e) No person who distributes automotive gasoline in commerce may make any representation respecting the antiknock characteristics of such gasoline unless such representation fairly discloses the octane rating of such gasoline consistent with such gasoline's octane rating as certified to or determined by such person under the foregoing provisions of this section.
(f) For purposes of this section, the octane rating of any automotive gasoline shall be considered to be certified, displayed, or represented by any person consistent with the rating certified to. or determined by. such person(1) in the case of automotive gasoline which consists of a blend
of two or more quantities of automotive gasoline of differing octane ratings, only if the rating certified, displayed. or represented by such person is the average of the octane ratings of such
quantities, weighted by volume; or
(2) in the case of gasoline which does not consist of such a
blend, only if the octane rating such person certifies. displays, or represents is the same as the octane rating of such gasoline certified to. or determined by. such person.
(g) The foregoing provisions of this section shall not apply(1) to any representation (by display at the point of sale or by
other means) of any characteristics of any automotive gasoline
other than its octane rating, or
(2) to the identification of automotive gasoline at the point of
sale (or elsewhere) by the trademark, trade name, or other identifyingr symbol or mark used in connection with the sale of such
gasoline.
(h) Any display or representation, with respect to the octane requirement of any motor vehicle, required to be made under any rule prescribed under subsection (d) shall not create an express or implied warranty uider State or Federal law that any automotive gasoline the octane rating of which equals or exceeds such octane requirement(1) may be used as a fuel in all motor vehicles of the same class
as that motor vehicle without knocking; or
(2) may be used as a fuel in such motor vehicle under all
operating conditions without knocking.
ADMINISTRATION AND ENFORCEMENT
SEC. 203. (a) The Federal Trade Commission shall have procedural, Rules. investigative, and enforcement powers, including the power to issue Reports. procedural rules in enforcing compliance with the requirements of 15 USC 2823. this title and rules prescribed pursuant to the requirements of this title, to further define terms used in this title, and to require the filing of reports, the production of documents, and the appearance of witnesses, as though the applicable terms and conditions of the Federal Trade Commission Act were part of this title. 15 USC 58.
(b) (1) The Environmental Protection Agency shall- Tests.
(A) conduct field testing of the octane rating of automotive
gasoline, comparing the tested octane rating of gasoline at retail
outlets with the octane rating posted at those outlets;
(B) certify the results of such tests and comparisons to the
Federal Trade Commission; and





73


(C) notify the Federal Trade Commission of any failure to post the octane rating discovered in the course of such field testing. Interagency (2) The Federal Trade Commission may enter into interagency
agreements. agreements with the Environmental Protection Agency and such other
agencies of the United States as the Commission determines appropriate for the purpose of assuring enforcement of the provisions of this
title in a manner which is consistent with(A) minimizing the cost of field inspection and related compliance activities; and
(B) reducing duplication of similar or related field compliance activities performed by agencies of the United States. Rules. (c) (1) Not later than 6 months after the date of the enactment of
this Act, the Federal Trade Commission sliall, by rule, prescribe and
make effective
(A) a uniform method by which a person may certify to another the octane rating of autom tive gasoline, and
(B) a uniform method of displaying the octane rating of antomotive gasoline at the point of sale to ultimate purchasers.
(2) Effective on and after the effective date of the rule prescribed
under paragraph (1) any person(A) shall be considered to satisfy the requirements of subseetion (a) or (b) of section 202. as the case may be. only if such person complies with the requirements established pursuant to paragraph (1) (A), and
(B) shall be considered to satisfy the requirements of section 202(c) only if such person complies with the requirements established pursuant to paragraph (1) (B).
(3) The Federal Trade Commission may, by rule, prescribe procedures for determination of the octane rating of automotive gasoline which varies from that prescribed in section 201(l). In prescribing
such rule, the Commission(A) shall consider(i) ease of administration and enforcement, and
(ii) industry practices in the distribution and marketing of automotive gasoline, and
(B) may permit adjustments in such octane rating totake into account the effects of altittide, temperature, and humidity.
(4) The Federal Trade Commission may, by rule, prescribe and
make effective a method of determining the octane rating of automotive gasoline which consists of a blend of two or more quantities of automotive gasoline of different octane ratings if the Federal Trade Commission finds that the method prescribed more accurately reflects the octane rating of such blend than the weighted-average method set forth in section 202(f) (1). Effective on and after the effective date of such rule, any person shall be considered to satisfy the requirements of section 202(f) (1) only if such person utilizes the method prescribed in such rule (in lie of the method set forth in section
202(f)(1)).
(d) (1) Except as provided in paragraph (2), rules under this title
shall be prescribed in accordance with section 553 of title 5. United States Code, except that interested persons shall be afforded an opportunity to present written and oral data, views, and arguments with
respect to any proposed rule.
(2) Rules prescribed under subsection (c) (3) and section 202(d)
shall be prescribed on the record after opportunity for an agency
hearing.






74


(3) Section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) shall not apply with respect to any rule prescribed under this title.
(e) It shall be an unfair or deceptive act or practice in or affecting commerce (within the meaning of section 5 (a) (1) of the Federal Trade Commission Act) for any person to violate subsection (a), (b), 15 Usc 45.
(c), or (e) of section 202, or a rule prescribed under subsection (d) of such section. For purposes of the Federal Trade Commission Act 15 USC 58. (including any remedy or penalty applicable io any violation thereof) such a violation shall be treated as a violation of a rule under such Act respecting unfair or deceptive acts or practices; except that for pur~poses of section 5 (m) (1) (A) of such Act, the term "or knowledge 15 Usc 45. fairly imnpliedl on the basis of objective circumstances" shall not apply to any violation by any gasoline retailer of the requirements of section 202 (c) or (e).

RELATIONSHIP OF TIS TITLE TO STATE LAW
SEC. 204. To the extent that any provisions of this title al)I)lies to 15 Usc 2824. any act. or omission, no State or any political subdivision thereof may adopt, enforce, or continue in effect any provision of any law or regulation (including any remedy or penalty applicable to any violation thereof) with respect to such act or omission, unless such provision of such law or regulation is the same as the applicable provision of this title.
EFFECTIVE DATES
SEC. 20.5. (a) Sections 202 (a) (1) and 203 (b) shall take effect on the 15 USC 2825. first day of the first calendar month beginning more than 6 months after the date of the enactment of this Act.
(b) Subsectiqns (4) (2), (,), (c), and (e) of section 202 shall take effect on the ffrst day of the first calendar month beginning more than
9 months after such date of enactment.
(c) Rules under section 202 (d) may not take effect earlier than the beginning of the first motor vehicle model year which begins more than
9 months after such date of enactment.

TITLE III-STUDY OF SUBSIDIZATION OF MOTOR FUEL MARKETING
SEC. 301. (a) The Secretary of Energy, in consultation with the 15 USC 2841. Chairman of the. Federal Trade Commission and the Attorney General and other agencies as the Secretary deems appropriate, shall conduct a study of the extent to which producers, refiners, and other suppliers of motor fuel Subsidize the sale of such motor futel at retail or wholesale with profits obtained f rom other operations.
(b) Such study shall examine(1) the role of vertically integrate operations in facilitating
subsidization of sales of motor fuel at, wholesale or retail;
(2) the extent to which such subsidization is predatory and
presents a threat to competition;
(3) the profitability of various Segments of the petroleum
industry;
(4) the impact of prohibiting such subsidization on the comnpetitive viability of various segments of the petroleum industry, on prices of motor fuel to consumers and on the health and structure of the petroleum industry as a whole; and
(5) such other matters as the Secretary considers appropriate.






75


Notice. (c) In conducting the study req uired by this section, the Secretary
shall give appropriate notice and afford interested persons an opportunity to present writteii and oral data, views and arguments concerning such study.
Report to (d) (1) The Secretary shall report the results of the study required
Congress. by this section, together with such recommendations for legislative
action and such statistical evidence as he deems appropriate to the Congress on or before the expiration of the eighteenth month after
Rules. the date of enactment of this section.
(2) If the President determines that interim measures are necessary
and appropriate to maintain the competitive viability of the marketing sector of the petroleum industry during Congressional consideration of the recommendations contained in the report submitted under paragraph (1), he shall prescribe, by rule, in accordance with the procedures set forth in section 523 (a) of the Energy Policy and
Conservation Act (42 U.S.C. 6393) such interim measures.
(3) No interim measure proposed by the President under this section
may be submitted after January 1, 1980, and the effect of such measure if approved by the Congress under paragraph (4) may not extend
beyond 18 months after such Congressional approval.
(4) Such interim measure shall not take effect unless approved by
both Houses of Congress as if it were a contingency plan under section 552 of the Energy Policy and Conservation Act (42 U.S.C. 6422): Provided, That the 60-day period referred to in such section shall be
extended to 90 days for purposes of this section.
Appropriation (e) There are hereby authorized to be, appropriated such sums as
authorization. may be necessary to carry out the provisions of this section.

Approved June 19, 1978.















LEGISLATIVE HISTORY:
HOUSE REPORT No. 95-161 (Comm. on Interstate and Foreign Commerce).
SENATE REPORTS: No. 95-731, and No. 95-732 accompanying S. 743 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD:
Vol. 123 (1977): Apr. 5, considered and passed House. Vol. 124 (1978): May 5, 9, considered and passed Senate, amended, in lieu of S.743.
June 6, House agreed to Senate amendments.


































CRUDE OIL TRANSPORTATION SYSTEMS





(77)
























43-0OR n 7Q -








79


CRUDE OIL TRANSPORTATION SYSTEMS


[Title V of Public Law 95-617; 92 Stat. 3157]


TITLE V-CRUDE OIL TRANSPORTATION SYSTEMS
SEC. 501. FINDINGS. 43 USC 2001.
The Congress finds and declares that(1) a serious crude oil supply shortage may soon exist in portions of the United States;
(2) a large surplus of crude oil on the west coast of the United
States is projected;
(3) any substantial curtailment of Canadian crude oil exports
to the United States could create a severe crude oil shortage in
the northern tier States;
(4) pending the authorization and com pletion of west-to-east
crude oil delivery systems, Alaskan crude oil in excess of west coast needs will be transshipped through the Panama Canal at a high
transportation cost;
(5) national security and regional supply requirements may be
such that west-to-east crude delivery systems serving both the northern tier States and inland States, consistent with the requirements of section 410 of the Act approved November 16, 1973 (87 Stat. 594), commonly known as the Trans-Alaska Pipeline Authr-rization Act, are needed; 43 USC 1651
(6) expeditious Federal and State decisions for west-to-east note.
crude oil delivery systems are of the utmost priority; and
(7) resolution of the west coast crude oil surplus and the need
for crude oil in northern tier States and inland States require the assignment and coordination of overall responsibility within the executive branch to permit expedited action on all necessary envi-"
ronmental assessments and decisions on permit applications concerning delivery systems.
SEC. 502. STATEMENT OF PURPOSES. 43 USc 2002.
The purposes of this title are(1) toprovide a means for(A) selecting delivery systems to transport Alaskan and
other crude oil to northern tier States and inland States, and






80


(B) resolving both the west coast crude oil surplus and the crude oil supply problems in the northern tier States;
(2) to provide an expedited procedure for acting on applications for all Federal permits, licenses, and approvals required for the construction and operation or any transportation system hpproved under this title and the Long Beach-'Midland project; and
(3) to assure that Federal decisions with respect to crude oil transportation systems are coordinated with State decisions to the maximum extent practicable.
43 Usc 2003. SEC. 503. DEFINITIONS.
As used in this title(1) The term "northern tier States" means the States of Washington, Oregon, Idaho. Montana. North Dakota. M innesota. Michigran. Wisconsin, Illinois. Indiana, and Ohio.
(2) The term "inland States" means those States in the United States other than northern tier States and the States of California, Alaska. and Hawaii.
(3) 'the term "crude oil transportation system" means a crude oil delivery system (including the location of such system) for transporting Alaskan and other crude oil to northern tier States and inland States, but such term does not include the Long BeachMidland project.
(4) The term "Long Beach-MNidland project" means the crude oil delivery system which was the subject of, and is generally described in, the "Final Environmental Impact Statement. Crude Oil Transportation System: Valdez. Alaska, to 'Midland. Texas (as proposed by Sohio Transportation Company)", the availability of which was announced by the Department of the Interior in the Federal Register on June 1, 1977 (42 Fed. Reg. 28008).
(5) The term "Federal agency" means an Executive agency. as defined in section 105 of title 5, United States Code. ? 43 Usc 2004. SEC. 504. APPLICATIONS FOR APPROVAL OF PROPOSED CRUDE OIL TRANSPORTATION SYSTElMS.
The following applications for construction and operation of a crude
oil transportation system submitted to the. Secretary of the Interior
by an applicant are eligible for consideration under this title:
(1) Applications received by the Secretary before the 30th day after the date of the enactment of this Act.
(2) Applications received by the Secretary during the 60-day period beginning on the 30th day after the date of the enactment of this Act, if the Secretary determines that considerat ion and review of the proposal contained in such application is in the national interest, and that such consideration and review could be completed within the time limits established under this title. An aipllication Under this section may be accepted by the Secretary only if it, contains a general description of the route of the proposed system and identification of the applicant and any ot her person who.
at the time of filing. has a financial or other interest in the system or is a party to an agreement under which such person would acquire a
financial or other interest. in the system. 43 usc 2005. SEC. 505. REVIEW SCHEDULE
(a) ESTABLISHIIENT.-The Secretary of the Interior, after consultation with the heads of appropriate Federal agencies. shall establish an expedited schedule for conducting reviews and making recommendations concerning crude oil transportation systems proposed in





81


applications filed under section 504 and for obtaining information necessary for environmental impact statements required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332) with respect to such proposed systems.
(b) ADDmONAL INFORMATIO.-(1) On his own initiative or at the request of the head of any Federal agency covered by the review schedule established under subsection (a), the Secretary of the Interior shall require that an applicant provide such additional information as may be necessary to conduct the review of the applicant's proposal. Such information may include(A) specific details of the route (and alternative routes) and
identification of Federal lands affected by any such route;
(B) information necessary for environmental impact statements; and
(C) information necessary for the President's determination
under section 507(a).
(2) If. within a reasonable time, an applicant does not(A) provide information required under this subsection, or
(B) comply with any requirement of section 304 of the Federal Land Policy and Management Act of 1976 (90 Stat. 2765;
43 U.S.C. 1734),
the Secretary of the Interior may declare the application ineligible for consideration under this title. After making such a declaration, the Notification to Secretary of the Interior shall notify the applicant and the President the President. of such ineligibility.
(c) RECOMMENDATIONS OF TlE HEADS OF FEDERAL AGENCrES.-(1) Crude oil
Pursuant to the schedule established under subsection (a), heads of transportation Federal agencies covered by such schedule shall conduct a review of a system, review. proposed crude oil transportation system eligible for consideration under this title and shall submit their recommendations concerning such systems (and the basis for such recommendations) to the Secretary of the Interior for submission to the President. After receipt of such recommendations and before their submission to the President, the Secretary of the Interior shall provide an opportunity for comments in accordance with paragraph (2). The Secretary of the Interior shall forward such comments to the President with the recommendations(A) in the case of applications filed under section 504(1), on or
before December 1,1978, and
(B) in the case of applications filed under section 504(2), on or
before the 60th day after December 1,1978.
(2) (A) After receipt of recommendations under paragraph (1) the Secretary of the Interior shall provide appropriate means by which the Governor and any other official of any State and any official of any political subdivision of a State, may submit written comments concerning proposed crude oil transportation systems eligible for consideration under this title.
(B) After receipt of recommendations referred to in subparagraph
(A), the Secretary of the Interior shall make such comments and recommendations available to the public and provide an opportunity for submission of written comments.
(d) REVIEW By TiE FEDERAL TRADE COMMISSION; EFFECT ON TuE ANTrrRUST LAWS.-(1) Promptly after he receives an application for a proposed crude oil transportation system eligible for consideration under this title, the Secretary of the Interior shall submit to the Federal Trade Commission a copy of such application and such other information as the Commission may reasonably require. The Com- Report to President.






82


mission may prepare and submit to the President a report on the impact of implementation of such application upon competition and restraint of trade and on whether such implementation would be inconsistent with the antitrust laws. Such report shall be made available to the public. Nothing in this subsection shall be construed to prevent the President from making his decision under section 507 (a) in the absence
of such report.
(2) Nothing in this title shall bar the Attorney General or any other
appropriate officer or agent of the United States from challenging any anticompetitive act or practice related to the ownership. construction, or operation of any crude oil transportation system approved under this title. The approval of any such system under this title shall not be deemed to convey to any person immunity from civil or criminal liability or to create defenses to actions under the antitrust laws and shall not. modify or abridge any private right of action under such
laws.
(e) FILING A.,D REVIEW OF PEJ-MITS, RIGirTS-OF-WAY APPLICATIONS,
ETC., NOT AFFECTED.-Nothing in this title shall be construed to prevent the acceptance and review by any Federal agency of any application for any Federal permit, right-of-way, or other authorizations under other provisions of law for a crude oil transportation system eligible for consideration under this title; except that any determination with respect to such an application may be made only in accordance with the provisions of section 509 (a).
43 USC 2006. SEC. 506. ENVIRONMENTAL IMPACT STATEMENTS.
(a) PREPARATION OF ENVIRONMENTAL IMPACT STATEMENTS.-Any
Federal agency required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332) to issue an environmental impact statement concerning a proposed crude oil transportation system eligible for consideration under this title shall, in preparing such statement, utilize, to the maximum extent practicable and consistent with such Act, appropriate data, analyses, conclusions, findings, and decisions regarding environmental impacts developed or made by any
other Federal or State agency.
Submittal to (b) FILING OF ENVIRONMENTAL IMPACT STATEMENT.--On or before President. December 1, 1978, all environmental impact statements concerning proposed crude oil transportation systems eligible for consideration under this title and required under section 102 of the National Environmental Policy Act of 1969 shall be completed, made available for public review and comment, revised to the extent appropriate in light of such comment, and submitted to the President and the Council on Environmental Quality; except that in the case of any environmental impact, statement concerning any crude oil transportation system which is eligible for consideration and which was filed under section 504(2) of this title, such actions may be taken not later than 60 days after
December 1, 1978.
(c) REPORT OF THE COUNCIL ON ENVIRONMENTAL QUALITY.Promptly after receiving an environmental impact statement referred to in subsection (b) for a crude oil transportation system, the Council on Environmental Quality shall submit to the President a report on the Council's opinion concerning such statement and concerning other
matters related to the environmental impact of such system. 43 USC 2007. SEC. 507. DECISION OF THE PRESIDENT.
(a) DECISION CONCERNING APPROVAL OR DISAPPROVAL OF PROPOSED
SysTrEm.-(1) After reviewing all the information submitted to him concerning the various proposed crude oil transportation systems eligi.





83


ble for consideration under this title (including environmental impact statements, comments, reports, recommendations, and other information submitted to him at any time before he makes his decision) and after consulting the Secretaries of Energy, the Interior, and Transportation, the President shall decide which, if any, of such systems shall be approved for the purposes of section 508 (relating to procedures for waiver of law), section 509 (relating to expedited procedures for issuance of permits), section 510 (relating to negotiations with the Government of Canada), and section 511 (relating to judicial review). A decis-on approving a crude oil transportation system may include such modifications and alterations in such system as the Presiaent finds appropriate. The President shall issue his decision within 45 days after receiving recommendations and comments submitted to him under section 505 (c), except that the President, for such period as he deems necessary, but not to exceed 60 days, may delay his decision and its issuance if he determines that additional time is otherwise necessary to enable him to make a decision. If the President so delays his decision, Notification. he shall promptly notify the House of Representatives and the Senate of such delay and shallsubmit a full explanation of the basis for such delay.
(2) Any decision made under this subsection approving a system proposed under this title shall include a determination that construction and operation of such system is in the national interest and shall be based upon the criteria specified in subsection (b).
(b) CRrEmA.-(1) The criteria for making a decision under this subsection shall include findings of(A) environmental impacts of the proposed systems and the
capability of such systems to minimize environmental risks resulting from transportation of crude oil;
(B) the amount of crude oil available to northern tier States
and inland States and the projected demand in those States under
each of such systems;
(C) transportation costs and delivered prices of crude oil by
reg-ion under each of such systems;
(D) construction schedules for each of such systems and possibilities for delay in such schedules;
(E) feasibility of financing for each of such systems;
(F) capital and operatin- costs of each of such systems, including an analysis of the reliability of cost estimates and the risk of
cost overruns;
(G) net. national economic costs and benefits of each such
system;
(H) the extent to which each system complies with the provisions of section 410 of the Act approved November 16, 1973 (87 Stat. 594), commonly known as the Trans-Alaska Pipeline
Authorization Act; 43 USC 1651
(I) the effect of each such system on international relations, note.
including the status and time schedule for any necessary Canadian
approvals and plans;
(J) impact, upon competition by each system;
(K) degree of safety and efficiency of design and operation of
each system;
(L) potential for interruption of deliveries of crude oil from
the west coast. under each such system;
(M) capacity and cost of expanding such system to transport
additional volumes of crude oil in excess of initial system capacity;
(N) national security considerations under each such system;






84


(0) relationship of each such system to national energy policy; and
(P) such other factors as the President deems appropriate.
(2) The period of time for which such findings shall be made shall
be the useful life of the crude oil transportation system involved.
(c) PUBLICATION OF FINDINGS AND DEcIslow.-The President shall
make available to the public at the time of issuance of a decision under this section a written statement setting forth findings with respect to each of the criteria specified in subsection (b) and describing the nature and route of crude oil transportation systems, if any, which are approved in the decision. If the President's decision is to approve a system, each statement shall set forth his reasons for approving such system over other proposed systems (if any) eligible for consideration Publication in under this title. Such statement along with notification of such deciFederal Register. sion shall be published in the Federal Register. 43 USC 2008. SEC. 508. PROCEDURES FOR WAIVER OF FEDERAL LAW.
(a) WAVER OF PRovISIONs OF FEDERAL LAw.-The President may
identify those provisions of Federal law (including any law or laws regarding the location of a crude oil transportation system but not including any provision of the antitrust laws) which, in the national interest, as determined by the President, should be waived in whole or in part to facilitate construction or operation of any such system approved under section 507 or of the Long Beach-Midland project, and he shall submit any such proposed waiver to both Houses of the Congress. The provisions so identified shall be waived with respect to actions to be taken to construct or operate such system or project only upon enactment of a joint resolution within the first period of 60 calendar days of continuous session of Congress beginning on the date of receipt by the House of Representatives and the Senate of such
prgosal.
) JOT RESOLUTIO.-The resolving clause of the joint resolution
referred to in subsection (a) is as follows: "That the House of Representatives and Senate approve the waiver of the provisions of law ( ) as proposed by the President, submitted to the Congress
on 19 .". The first blank space therein being filled
with the citation to the provisions of law proposed to be waived bjr the President and the second blank space therein being filled wit I the date on which the President submits his decision to wave such provisions of law to the House of Representatives and the Senate.
Rules and procedures for consideration of any such joint resolution shall be governed by section 8 (c) and (d) of the Alaskan Natural 15 USC 719f Gas Transportation Act, other than paragraph (2) of section 8(d). note. except that for the purposes of this subsection, the phrase "a waiver
of provisions of law" shall be substituted in section 8(d) each place where the phrase "an Alaska natural gas transportation system"
appears.
43 USC 2009. SEC. 509. EXPEDITED PROCEDURES FOR ISSUANCE OF PERMITS: ENFORCEMENT OF RIGHTS-OF-WAY.
(a) EXIErITEI) PROCEDURES FOR A-PPROVED SrsTrv.is.-After issuance of a decision by the President approving any crude oil transportation system, all Federal officers and agencies shall expedite, to the maximum extent practicable, consistent with applicable provisions of law, all actions necessary to determine whether to issue, administer, or enforce rights-of-way across Federal lands and to issue Federal permits in connection with, or otherwise to authorize. construction and operation of such system. Any such action shall be






85


consistent with applicable provisions of law. After taking any such Publication in action, such officer or agency shall publish notification of the taking Federal Register. of such action in the Federal Register.
(b) EXPEDITED PROCEDURES FOR LONG BEACH-MlIDLAND PROJE-CT.All decisions regarding issuance of Federal permits. rights-of-way, and leases and other Federal authorizations necessary for construction and operation of the Long Beach-Midland project shall be consistent with applicable provisions of Federal law. except that such decisions shall be made within 30 days after the date this title becomes effective. The President may extend the date by which such decisions, under the preceding sentence. are to be made to a d(late not later than 90 days after the effective date of this title. Notification Publication in of the making of such decisions shall be published in the Federal Federal Register. Register. Nothing in this section affects any decision made before the date of the enactment of this title.
(c) LAw GOVERNING RIGIITS-F-AY.-Rights-of-way over any Federal land with respect to an approved crude oil transportation system or the Long Beach-Midland project shall be governed by the provisions of section 28 of the Act of February 25. 1920, commonly referred to as the Mineral Leasing Act of 1920'(30 U.S.C. 185). other than subsection (w) (2) of such section. SEC. 510. NEGOTIATIONS WITH THE GOVERNMENT OF CANADA. 43 USC 2010.
With respect to any crude oil transportation system approved under section 507(a) all or any part of which is to be located in Canada. the President of the United States is authorized and requested to enter into negotiations with the Government of Canada to determine what measutires can be taken to expedite the granting of approvals by the Government of Canada for construction or operation of such system, and he is authorized and requested to explore the possibility of further exchanges of crude oil supplies between the United States and Canada. SEC. 511. JUDICIAL REVIEW. 43 USC 2011.
(a) NoTc.-The President or any other Federal officer shall cause Publication in
notice to be published in the Federal Register and in newspapers of Federal Register. general circulation in the areas affected whenever he makes any decision described in subsection (b).
(b) REVIEW OF CERTAIN FEDERAL ACTIONS.-Any action seeking judicial review of an action or decision of the President or any other Federal officer taken or made after the date of the enactment of this Act concerning the approval or disapproval of a crude oil transportation system or the issuance of necessary rights-of-way, permits. leases, and other authorizations for the construction, operation. and maintenance of the Long Beach-Midland project or a crude oil transportation system approved under section 507(a) may only be brought within 60 days after the date on which notification of the action or decision of such officer is published in the Federal Register, or in newspapers of general circulation in the areas affected. whichever is later.
(c) JURISmDICTIONx OF Co-RT.-An action under subsection (b) shall be barred unless a petition is filed within the time specified. Any such petition shall be filed in the appropriate United States district court. A copy of such petition shall be transmitted by the clerk of such court to the Secretary. Notwithstanding the amount in controversy, such court shall have jurisdiction to determine such proceeding in accordance with the procedures hereinafter provided and to provide appropriate relief. No State or local court shall have jurisdiction of any such claim whether in a proceeding instituted before, on. or after the date this title becomes effective. Any such proceeding shall be assigned for






86


hearing at the earliest possible date and shall be expedited by such court. No court shall have jurisdiction to grant any injunctive relief against the issuance of any right-of-way, permit, lease, or other authorization in connection with a crude oil transpor-tation system approved under section 507(a) or the Long Beach-Midland project, except, as part of a final judgment entered in a case involving a claim
filed pursuant to this section.
43 USC 2012. SEC. 512. AUTHORIZATION FOR APPROPRIATION.
There are authorized to be appropriated to the Secretary of the
Interior to carry out his responsibilities under this title not to exceed $500.000 for the fiscal year ending on September 30. 1978, and not to
exceed $1,000,000 for the fiscal year ending on September 30, 1979.
































PART B-GAS






(87)






























NATURAL GAS ACT





(89)








91


NATURAL GAS ACT

[PUBLIC-NO. 688-75TH CONGREs]
[CHAPTER 556-D SESSION]
[H. R. 6586]
AN ACT
To0 regulate the transportation and sale of natural gas In Interstate commerce, and for other purposes.
Be it enacted by the Senate and Hom~e of Represerdative8 of the United State8 of America in Con gress 488embled,
NECESSITY FOR REGULATION OF NATURAL-GAS COMPANIES
SECTION 1. (a) As disclosed in reports of the Federal Declaration of Trade Commission made pursuant to Senate Resolu- policy. tion 83 (Seventieth Congress, first session) and other reports made pursuanlt to the authority of Congress, it is hereby declared that the business of transporting and selling natural gas for ultimate distribution to the pub,lic is affected with a public interest, and that Federal regulation in matters relating to the transportation of natural gas and the sale thereof in interstate and foreign commerce is necessary in the public interest. [52 Stat. 821 (1938) ; 15 U. S. C. 717 (a)]I
(b) The provisions of this act shall apply to the Act applies to transportation
transportation of natural gas in interstate commerce, to and sale for resale of nat-the sale in interstate commerce of natural gas for resale uaral gas In for ultimate public consumption.for domestic, commer- commerce. cial, industrial, or any other use, and to natural-gas companies engaged in such transportation or sale, but shall not apply to any other transportation or sale Of Not to apply to
-natural gas or to the local distribution of natural gas tran or l
-or to the facilities used for such distribution or to the dsrbten loa production or gathering of natural gas. [15 UgS C athering o
717 (b) ] natural gas.
(c) The provisions of this Act shall not apply to any State Juriadic. person engaged in or legally authorized to engage in thetin transportation in interstate commerce or the sale in inter'state commerce for resale, of natural gas received by such person from another person within or at the boundary of a State if all the natural gas so received is ultimately consumed within such State, or to any facilities used by such person for such transportation or sale, provided that





92


the rates and service of such person and facilities be subject to regulation by a State commission. The matters exempted from the provisions of this Act.-by this subsection are hereby declared to b matters primarily of local concern and subject to regulation by the several States. A certification from such State commission to the Federal Power Commission that such State commission has regulatory jurisdiction over rates and service of such person and facilities and is exercising such jurisdiction shall constitute conclusive evidence of such regulatory power or jurisdiction. [ 15 U. S. C. 717 (c) )
Meaning of SEC. 2. When used in this act, unless the context otherterms as used.
wise requires'Terson!' (1) "Person" includes an individual or a corporation.
"Corporation." (2) "Corporation" includes any corporation, jointstock company, partnership, association, business trust, organized group of persons, whether incorporated or not, receiver or receivers, trustee or trustees of any of the foregoing, but shall not include municipalities as
hereinafter defined.
"Munici- (3) "Municipality" means a city, county, or other
pality." political subdivision or age ficy of a State.
"State." (4) "State" means a State admitted to the Union, the
District of Columbia, and any organized Territory of
the United States.
"Natural gas." (5) "Natural gas" means either natural gas unmixed,
or any mixture of natural and artificial gas.
"Natural-gas (6) "Natural-gas company" means a person engaged company. in the transportation of natural gas in interstate commerce, or the sale in interstate commerce of such gas for
resale.
"Interstate (7) "Interstate commerce" means commerce between commerce." any point in a State and any point outside thereof, or
between points within the same State but through any place outside thereof, but only insofar as such commerce
takes place within the United States.
"State coni.- (8) "State commission" means the regulatory body of mission." the State or municipality having jurisdiction to regulate
rates and charges for the.sale of natural gas to consumers
within the State or municipality.
"Commission" (9) "Commission" and "Commissioner" means the
and "Commisstoner." Federal Power Commission, and a member thereof, respectively. 15 U. S. C. 717a]





93


ZXIPO~rATION OR IMPO~RTATION OF NATURAL GAS
Sizc. 3. After six months from the date on which this Exotto or act takes effect no person shall export any natural gsprohibited
9 t on Comnfrom the United States to a foreign country or import =niYn order any natural gas from a foreign country without first auhriy having secured an order of the Commission authorizing it to do so. The Commission shall issue such order upon application, unless, after opportunity for hearing, Appiation it finds that the proposed exportation or importation haig will not be consistent with the public interest. The Commission may by its order grant such application, in Order may be whole or in part, with such modification and upon such wholly, or in terms and conditions as the Commission may find neces- condition sary or appropriate, and may from time to time, after opportunity for hearing, and for good cause shown, o;TpeetJ make such supplemental order in the premises as it may remna find necessary or appropriate. [15 U. S. C. 717b]
RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES
Szc. 4. (a) All rates and charges made, demanded, or Rates and charges for
received by any natural-gas company for or in connec- transportation tion with the transportation or sale of natural gas sub- Just and b ject to the jurisdiction of the Commission, and all rules reasonable. and regulations affecting or pertaining to such rates or charges, shall be just and reasonable, and any such rate Unrasonable or charge that is not just and reasonable is hereby chares, re declared to b,-, unlawful.
I(b) No natural-gas company shall, with respect to any transportation or sale of natural gas subject to the jurisdiction of the Commission, (1) make or grant any undue preference or advantage to any person or sub- Undue preference or
ject any person to any undue prejudice or disadvantage, advantages or (2) maintain any unreasonable difference in rates, preohibite charges, service, facilities, or in any other respect, either differences in ratset.,or
as between localities or as between classes of service. in localities or classes of serv(c) Under such rules and regulations as the Commis- tee forbidden. sion may prescribe, every natural-gas company shall Filing aInd posting of rate
file with the Commission, within such time (not less schedules subthan sixty days from the date this act takes effect) and and regulations in such form as the Commission may designate, and of Commlission. shall keep open in convenient form and place for pub- Public to have lic inspection, schedules showing all rates and charges schedule. for any transportation or sale subject to the jurisdiction of the Commission, and the classifications, practices, and






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regulations affecting such rates and charges, together with all contracts which in any manner affect or relate
to such rates, charges, classifications, and services.
Thirty day.' (d) Unless the Commission otherwise orders, no
chanein change shall be made by any natural-gas company in rats eqird.any such rate, charge, classification, or service, or in
any rule, regulations, or contract relating thereto, except after thirty days' notice to the Commission and to the Posting; tiling public. Such notice shall be given by filing with the rate changes. Commission and keeping open for public inspection new
schedules stating plainly the change or changes to be made in the schedule or schedules then in force and the time when the change or changes will go into effect. Relief by The Commission, for good cause shown, may allow Commission
from op rtion Changes to take effect without requiring the thirty days' of setOD. notice herein provided for by an order specifying. the
changes so to be made and the time when they shall take effect and the manner in which they shall be filed
and published.
ofnestiahedn (e Whenever any such new schedule is filed the Coinules ma be mission shall have authority, either upon complaint of made on comnriinor of any State, municipality, State commission, or gas disCommiftionl. tributing company or upon its own initiative without
complaint, at once, and if it so orders without answer or foimal pleading by the natural-gaT company, but Hearing. upon reasonable notice, to enter upon a hearing conSuspesion cerning the lawfulness of such rate, charge, classifideelion. cation, or service; and, pending such hearing and
the decision thereon, the Commission, upon filing with such schedules and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation suspension of such schedule and defer the use of such rate, charge, period not to
exceed 5 classification, or service, but not for a longer period months.I
than five months beyond the time when it would otherwise go into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make such orders with reference thereto as would be proper in a proceeding initiated after it had become effective.
On xpratonIf the proceeding has not been concluded and an order of unso maetth expiration o h upninproo
ofpeio hn mdtteexiainote sesonproo
onrmotion, motion of the natural-gas company making the filing, shall go into thprpsdcagofrtcagcasiatnr effect. te-rpsdcag frtcagcasfctoo