[Federal Register Volume 59, Number 57 (Thursday, March 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6885]
[[Page Unknown]]
[Federal Register: March 24, 1994]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Part 777
[Docket No. 930653-3153]
RIN 0694-AA70
Exports of Certain California Crude Oil
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Proposed rule with a request for comments.
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SUMMARY: The Bureau of Export Administration (BXA) is proposing to
amend the short supply provisions of the Export Administration
Regulations (EAR) by revising the restrictions on exports to initially
allow the export of up to 25,000 barrels per day of California heavy
crude oil having a gravity of 20 degrees API or lower. The changes
proposed by this rule are based on the President's October 22, 1992,
memorandum to the Secretary of Commerce to modify existing restrictions
on the export of certain California heavy crude oil. This notice
delineates the actions the Department is taking to implement the
President's decision. It also proposes specific regulatory changes
implementing those actions and solicits public comments.
DATES: Comments must be received by April 25, 1994.
ADDRESSES: Written comments (six copies) should be sent to Bernard
Kritzer, Senior Industry Analyst, Office of Foreign Availability, room
1087, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue
NW., Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: Bernard Kritzer, Office of Foreign
Availability (OFA), Bureau of Export Administration, Telephone: (202)
482-0074.
SUPPLEMENTARY INFORMATION:
Background
Section 777.6(d)(1) of the Export Administration Regulations (EAR)
restricts exports of crude petroleum, including reconstituted crude
petroleum, tar sands and crude shale oil. This rule proposes to amend
Sec. 777.6(d)(1) to permit exports of certain California crude oil
pursuant to a Presidential Memorandum of October 22, 1992,\1\ in which
the President determined that exports of California heavy crude oil
having a gravity of 20 degrees API or lower were in the national
interest. Before the President authorized this export of crude oil, he
made findings and determinations under three statutes: Section 103 of
the Energy Policy and Conservation Act (42 U.S.C. 6212(b)); section
28(u) of the Mineral Leasing Act, as amended by the Trans-Alaska
Pipeline Authorization Act of 1973 (30 U.S.C. 185(u)); and provisions
of the Export Administration Act, as amended, and to the extent
consistent with law, continued in effect through the President's
invocation of the International Emergency Economic Powers Act. The
Export Administration Act was continued on March 27, 1993, by Public
Law 103-10. The President made findings that exports of California
heavy crude oil having a gravity of 20 degrees API or lower: (1) Were
in accord with the provisions of the Export Administration Act of 1979,
as amended;
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\1\ The President's memorandum of October 22, 1992, ``Exports of
Domestically Produced Heavy Crude Oil'' (3 CFR, 1992 Comp., p. 382).
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(2) Were consistent with the purposes of the Energy Policy and
Conservation Act; and
(3) Would not diminish the total quality or quantity of petroleum
available to the United States.
Based upon the above findings, the President authorized the
Secretary of Commerce to modify the existing restrictions on the export
of crude oil produced in the lower 48 states to initially allow the
export of an average quantity of 25,000 barrels per day (MB/D) of
California heavy crude oil having a gravity of 20 degrees API or lower.
The President also directed the Secretary of Energy, in
consultation with the Secretaries of Commerce, the Interior,
Transportation, and other interested agencies, to conduct periodic
reviews of such exports in light of then-existing market circumstances.
Based upon the results of these market reviews, the President
authorized the Secretary of Energy to recommend to the Secretary of
Commerce that adjustments be made in the quantity of California heavy
crude oil that may be authorized for export (i.e., adjustments to the
initial average authorized level of 25 MB/D).
Department of Commerce Actions
The Department proposes to take the following actions to implement
the President's decision: (1) Propose rules to implement the
President's decision;
(2) Solicit public comments on the rules; and
(3) Publish a final rule implementing the President's findings and
taking into account public comments on this proposed rule and other
relevant evidence.
The Department of Commerce's Proposals
This notice proposes to amend Sec. 777.6 of the Export
Administration Regulations (EAR) to allow the licensing of exports of
up to 25 MB/D per day of California heavy crude oil having a gravity of
20 degrees API or lower.
To implement this program, the Department proposes to: (1) Grant
licenses for these exports on a first-come-first-served basis; (2)
authorize the export of up to 25 percent (2.28 million barrels) of the
annual authorized volume (9.125 million barrels) of such California
crude oil per license; (3) approve only one application per company,
including its affiliates, as long as there are other outstanding non-
affiliate company applications in that month; (4) allow the licensee up
to 90 days from the issuance of the license to export the oil; (5)
require the licensee to certify to the Department in writing that the
export(s) occurred during the 90-day license term; (6) carry forward
any portion of the 25 MB/D quota that the Department has not licensed,
except that the Department will not carry forward unlicensed portions
more than 30 days into a new calendar year; (7) return to the available
quota volume all licensed volumes not shipped during the 90-day term of
an export license, except that the Department will not carry forward
unshipped portions more than 30 days into the new calendar year; and
(8) allow a 10 percent shipping tolerance on the licensed, but not
shipped volume of barrels and a 25 percent shipping tolerance on the
total dollar value of the license, respectively.
The Department proposes to require that a prospective exporter: (1)
Submit an application on BXA Form 622-P; (2) state the total number of
barrels for export during the 90-day license term not a per day rate;
(3) include supporting documents proving that the applicant has: (i)
Title to the quantity of barrels stated in the application, or an
accepted order for the purchase of the quantity of barrels stated in
the application, (ii) a verifiable contract of sale to export the crude
oil contingent on the applicant obtaining an export license, (iii)
documentation proving that the crude oil to be exported has a gravity
of 20 degrees API or lower, (iv) documentation proving that the crude
oil was derived from production within the state of California,
including its state submerged lands, (v) documentation certifying that
the crude oil was not produced or derived from a U.S. Naval Petroleum
Reserve, and (vi) documentation certifying that the crude oil was not
produced from the submerged lands of the U.S. Outer Continental Shelf;
and (4) export the licensed volumes within 90 days of the issuance of
the license and to report the export to the Department of Commerce. In
addition, the Department will allow the applicant to combine licensed
quantities into one or more shipments, provided that the validity
period of none of the affected licenses has expired. As set forth in
the EAR, the applicant cannot transfer a license to another person.
An applicant can file for a license at any time during the calendar
year. The Department, however, will process only one license per
applicant per month as long as there are other non-affiliated
applications pending during that month. The Department will issue
validated licenses expeditiously as long as there are sufficient
quantities of the authorized heavy crude oil volumes available. If
there is no available volume of heavy crude oil, the Department will
return the application without action. If the volume of heavy crude oil
available for export is less than the applicant requested, the
Department will contact the applicant and determine if the applicant
wants the available volume. If not, the Department will return the
application without action. If the applicant wants the available
volume, the Department will request that the applicant amend its
application to reflect the lesser volume.
The Department will apply the procedures eventually adopted in
response to this proposed rulemaking with additional notice and comment
to any future increase in the export volume that the Secretary of
Energy may from time to time recommend to the Department of Commerce.
Nature of the Export Market
In developing an approach to implementing the President's decision,
the Department is taking into account the nature of the heavy crude oil
export market. The Department's 1989 ``Report to the Congress on U.S.
Crude Oil Exports,'' (pp. IV-4-IV-11) concluded that opportunities to
export California heavy crude generally consist of spot market rather
than year-round export activity. The report found that opportunities to
export California heavy crude oil occur intermittently and randomly
throughout the year when the price of these oils are low and the price
of Pacific Rim substitutes are high. The Department's recent experience
monitoring licensed export volumes strongly supports this position. The
Department recognized the need, therefore, to develop licensing
procedures permitting firms to take advantage of brief windows of
opportunity and to conduct spot market export transactions.
The 1989 Commerce Report also identified numerous potential
participants in such a market with a wide range of economic strengths
and capabilities. The study found that allowing limited exports of
California heavy crude oil would enable some firms (e.g., the
independent producers) to expand their crude oil marketing
opportunities, to maintain their existing oil production, and to earn
additional revenue to reinvest in exploring for new domestic oil
reserves.
The Department also recognized that having only one applicant could
reduce the effectiveness of the export program. For example, an
exporter could, in a licensing program without time limits, apply for
and obtain an export license for the entire 25 MB/D per day for a one
year period. If, however, the firm did not export the oil because of
some problem with the transaction, the license would never be used.
This would limit the number of potential exporters, deny commercial
opportunities to other participants, and frustrate the intent of the
President's export initiative. This concern argued for limiting the
term of an export license to insure that the licensee used the license
and exported the oil, or that the volume of oil quickly became
available to other interested applicants.
There was also a need to assure that licenses issued to exporters
would be in commercially viable volumes since the total volume
initially authorized for export is low--9.125 million barrels annually.
It would be difficult to achieve economically viable shipments if the
Department were to issue numerous licenses for small volumes (e.g.,
100,000 barrels).
Departmental Considerations
Given the noted market dynamics and commercial consideration, the
Department considers it necessary to develop a licensing regime that:
(1) Is equitable; (2) minimizes government involvement in commercial
transactions; (3) makes licenses available to a wide number of
participants; (4) reviews license applications expeditiously to allow
firms to take advantage of time-sensitive spot market trading
opportunities; (5) prevents a firm from obtaining a license and not
exporting the oil; (6) allows for economically viable export cargoes;
and (7) does not impose unnecessary administrative burdens on
exporters.
Although the Department proposes to implement the option of first-
come-first-served, the Department will consider and may adopt any of
the options in this rulemaking, or an alternative proposal that
addresses the above considerations. In fact, the Department did
consider several different options; they are discussed below. The
Department is soliciting comments from interested parties on the most
effective approach for the Department to implement the President's
decision.
Option #1--First-Come-First-Served
Under this option, the Department would grant licenses for the
export of California heavy crude oil on a first-come-first-served
basis. This option involves the minimum government management of an
export licensing regime and intervention in the market. There are
numerous variations to this option which involve the number of times
per year that the Department would review and authorize export
licenses. The Department could grant the licenses annually, quarterly
or monthly on a first-come-first-served basis. There are also numerous
variations on the volume of oil the Department could authorize per
license. Under one variation the Department could license the entire
export volume (9.125 million barrels) to the first firm that filed an
export license application.
Although licensing the entire volume at one time would achieve the
Department's objective of minimizing the government's role in export
transactions, it may result in limiting this export opportunity to the
first firm that filed a license application. The Department, however,
wants to ensure that the potential benefits of the program are diffused
among many firms and utilized. This option, therefore, calls for
limiting the quantity per license (i.e., 25 percent of the total
authorized volume) and for each license to have a 90 day limit. In
addition, a company and its affiliates can receive only one license per
month as long as there are other outstanding applications.
The Department considers this option to be the best means available
to provide a number of opportunities (at least four) for a number of
firms to participate in heavy crude oil exports with a minimum of
government interference in the export transaction. The Department also
considers that the 90 day license term would assure the utilization of
the license or the rapid return of the volume of oil to the quota so
others may use it.
On the negative side, a single company could request and receive
for four months in a row a license covering 25 percent of the
authorized volume of oil just by being the earliest applicant to file
with the Department. In addition, this option would require the
Department to keep running accounts on the amount available for
licensing at any one time. The Department, however, should be able to
handle this because the authorized export volumes are small and the
exports are likely to occur intermittently rather than year round.
Option #2--Prorationing
Prorationing procedures, such as the one the Department uses for
the Alaskan North Slope/Canada (ANS/Canada) crude oil export regime,
offer some advantages but also involve a greater measure of government
involvement than does licensing on a first-come-first-served basis.
On the positive side, this option may ensure that more firms could
participate in the export program than would be the case under
licensing option #1. This option also would assure everyone who applies
would get some portion of the authorized export volume.
On the negative side, this option would entail active government
involvement in administering an export prorationing regime on a year
round basis. In addition, a prorationing scheme could be difficult to
administer and could result in economically not viable volumes. The
volume of California heavy crude oil exports (25 MB/D) allowed under
the President's October 22, 1992 decision amounts to one-half of the
volume authorized for the ANS/Canada export regime (50 MB/D). Over the
past four years the demand for ANS exports to Western Canada has not
forced the Department to prorate exports among competing applications.
This may not be the case in the California situation where the volume
is much smaller and more firms have expressed an interest in
participating in this program. Although several licensees with small
volumes could possibly combine volumes to make one shipment, it would
not help exporters that had contracts to deliver large volumes.
Option #3--Pre-Qualification With Export Nominations
This option would result in a greater degree of government
management than would be the case under any of the other options
described above because it would involve a two step review process of
all export licensing transactions.
Under this procedure, potential exporters would provide enough
information to allow the Department to pre-qualify a firm as an
exporter and subsequently grant final export authorization to the firm
upon the provision of satisfactory information regarding end-users and
intermediate consignees, if any.
The first step would involve the Department pre-qualifying
exporters based upon the following criteria: (1) The firm is a
commercial entity that is interested in exporting California heavy
crude oil; (2) the applicant can demonstrate that an end-user is
interested in purchasing oil from them as evidenced by a letter/telex.
The nominations process--step 2--would operate as follows:
1. On a monthly basis, a pre-qualified exporter would nominate the
quantity it would like to export during the month.
2. A pre-qualified exporter would have to submit his nomination no
later than 10 calendar days before the first day of the month.
3. At the outset of each month, the Department would notify pre-
qualified exporters of how much oil was available for export pursuant
to the quota for the month. (It could provide notice by having firms
telephone a special number and/or talk with a licensing officer.)
4. When nominating export volumes, the licensee would be required
to provide the Department with documentation establishing: (a) Title to
the oil or a contract to purchase the oil subject to approval of the
export transaction; (b) a contract or contingent contract to export the
oil subject to approval of the export transaction. The Department would
also have to approve the intermediate and ultimate foreign consignees
for the oil, and;
5. The licensee would have 30 days to complete the export. If the
export did not occur during the 30 day license term, the Department
would return the volume to the quota. If the licensee shipped part of
the volume, the Department would return unshipped volumes to the quota.
Other key provisions include:
1. The Department would allow the export of up to a total of
2,281,000 barrels during any 30 day period.
2. The Department would limit individual company exports to
1,000,000 barrels of oil during any 30 day period.
3. The Department would process only one nomination per firm per 30
day period as long as there are outstanding nominations from non-
affiliated firms.
The Department would implement the following provision in the event
the volume of crude oil nominated for export exceeds the amount allowed
during a 30 day period: 1. It would allocate to each applicant an equal
share of the authorized volume. For example, if five licensees
nominated a total over the authorized volume of exports, the Department
would allocate each party 20 percent of the volume available for export
(i.e., 456,000 barrels out the total of 2,281,000 barrels available),
and
2. Licensees would be allowed to combine volumes to achieve
economic-sized cargoes.
On the positive side, this option would be responsive to the spot-
market nature of the market. The pre-qualifying process may ensure that
many firms had the opportunity to participate in the export program.
On the negative side, the Department considers the two-step review
process unnecessarily bureaucratic. This approach would require the
Department to actively manage licenses and keep running accounts on the
amounts available for licensing at any one time. In addition, exporters
would have to contact the Department on an ongoing basis to determine
what volume was available for export during a given month. Exporters
would have to constantly report on whether they conducted exports and
whether they exceeded their authorized export level. The Department
would also have to establish a procedure to screen and pre-qualify new
entrants on a continuous basis to ensure that they would receive an
opportunity to participate in the export program.
The Department invites written comments from interested parties
that may assist it in implementing the President's decision.
Specifically, we solicit information concerning the following:
(1) What are the pros and cons of each of the licensing options
presented, and which, if any, do you prefer?
(2) Are there other licensing approaches that would better allow
U.S. exporters to take advantage of this opportunity? If you have a
specific licensing scheme in mind, please explain it, discuss the pros
and cons of the selected option, and explain how the Department should
implement your approach.
(2) Should the Department review export license applications
monthly, or more or less frequently (e.g., quarterly, semiannually,
annually, continuously)? Are exports of up to 2.28 million barrels per
license sufficient to make licenses available to more than one company
while retaining the commercial viability of the exports? If not, what
is the optimal cargo size (barrels) for economically viable export
shipments?
(3) Should an exporter have more or less than a 90-day license to
export California crude oil in a spot market trading environment? What
would be the optimal time to allow an exporter to pursue business
activities while not denying opportunities to other exporters?
(4) Should the Department carry over export volumes not shipped in
one calendar year to the next year? What is the optimal time that the
Department should carry over volumes not shipped during one calendar
year?
(5) Are there any specific heavy crudes, with particular assay
properties, that the Department should exclude from licensing? Comments
in this area should indicate the specific source and type of crude, its
full assay, the unique nature of the assay, the availability of
substitutes and the special user.
Comment Procedures
The Department is issuing this rule in proposed form and will
consider public comments in the development of the final regulations.
The Department encourages interested persons who wish to comment to do
so at the earliest possible time to permit the fullest consideration of
their views.
The following procedures will apply to any comments submitted
pursuant to this procedure: (1) Interested parties are invited to
submit written comments (6 copies), opinions, data, information, or
advice with respect to this notice to the address above by the dates
specified above;
(2) The Department will consider all comments received before the
close of the comment period in developing final regulations. While
comments received after the end of the comment period will be
considered if possible, this cannot be assured;
(3) All public comments on these regulations will be a matter of
public record and will be available for public inspection and copying.
(Communications from agencies of the United States Government or
foreign governments will not be made available for public inspection.);
(4) In the interest of accuracy and completeness, the Department
requires comments in written form. Oral comments must be followed by
written memoranda which will also be a matter of public record and will
be available for public review and copying;
(5) The Department will not accept public comments accompanied by a
request that a part or all of the material be treated confidentially
because of its business proprietary nature or for any other reason. The
Department will return such comments and materials to the person
submitting the comments and will not consider them in the development
of final regulations; and
(6) The comments received in response to this notice will be
maintained in the Bureau of Export Administration Freedom of
Information Records Inspection Facility, room 4525, Department of
Commerce, 14th Street and Pennsylvania Avenue, NW., Washington, DC
20230. Interested parties may inspect and copy records in this
facility, including written public comments and memoranda summarizing
the substance of oral communications, in accordance with regulations
published in part 4 of title 15 of the Code of Federal Regulations.
Information about the inspection and copying of records at the facility
may be obtained from Margaret Cornejo, Bureau of Export Administration
Freedom of Information Officer, at the above address or by calling
(202) 482-5653.
Rulemaking Requirements
1. This proposed rule contains collections of information subject
to the requirements of the Paperwork Reduction Act of 1980 (44 U.S.C.
3501 et seq.) The public reporting burden for this collection of
information is estimated to average 12 hours per response, including
the time required for reviewing instructions, searching and maintaining
the necessary data, and completing and reviewing the collection of
information. Send comments regarding this burden to: Bernard Kritzer,
Senior Industry Analyst, Office of Foreign Availability, room 1087,
U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, NW.,
Washington, D.C., 20230; and to the Office of Information and
Regulatory Affairs, Office of Management and Budget, Washington, DC
20503. Project No. 0694-AA70.
2. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by section
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other
law, under section 3(a) of the Regulatory Flexibility Act (5 U.S.C.
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis
has to be or will be prepared.
3. This proposed rule does not contain policies with Federalism
implications sufficient to warrant preparation of a Federalism
assessment under Executive Order 12612.
4. This rule was not subject to review by the Office of Management
and Budget under Executive Order 12866.
List of Subjects in 15 CFR Part 777
Administrative practice and procedure, Exports, Forest and forest
products, Petroleum, Reporting and recordkeeping requirements.
Accordingly, part 777 of the Export Administration Regulations (15
CFR parts 730-799) is proposed to be amended as follows:
1. The authority citation for 15 CFR part 777 continues to read as
follows:
Authority: Pub. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et seq.),
as amended; sec. 101, Pub. L. 93-153, 87 Stat. 576 (30 U.S.C. 185),
as amended; sec. 103, Pub. L. 94-163, 89 Stat. 877 (42 U.S.C. 6212),
as amended; secs. 201 and 201(11)(e), Pub. L. 94-258, 90 Stat. 309
(10 U.S.C. 7420 and 7430(e)), as amended; Pub. L. 95-223, 91 Stat
1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 92 Stat. 120 (22
U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, Pub. L. 95-372,
92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 Stat. 503 (50
U.S.C. App. 2401 et seq.), as amended; E.O. 11912 of April 13, 1976
(41 FR 15825, April 15, 1976); E.O. 12002 of July 7, 1977 (42 FR
35623, July 7, 1977), as amended; E.O. 12058 of May 11, 1978 (43 FR
20947, May 16, 1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6,
1980); E.O.12730 of September 30, 1990 (55 FR 40373, October 2,
1990), as continued by Notice of September 25, 1992 (57 FR 44649,
September 28, 1992); and E.O. 12735 of November 16, 1990 (55 FR
48587, November 20, 1990), as continued by Notice of November 14,
1991 (56 FR 58171, November 15, 1991).
PART 777--[AMENDED]
3. Section 777.6 is amended by adding a new paragraph (d)(1)(xii)
and a new paragraph (k) to read as follows:
Sec. 777.6 Petroleum and petroleum products.
* * * * *
(d) * * *
(1) * * *
(xii) Exports of certain California crude oil. California heavy
crude oil can be exported under the following conditions: (A) The
commodity has a gravity of 20 degrees API or lower;
(B) The commodity is produced in the state of California, including
its submerged state lands;
(C) The applicant certifies by affidavit that: (1) The commodity is
not produced or derived from a U.S. Naval Petroleum Reserve;
(2) The commodity is not produced from the submerged lands of the
U.S. Outer Continental Shelf; and
(3) All aspects of the transaction comply with the provisions of
paragraph (k) of this section.
* * * * *
(k) Exports of California heavy crude oil pursuant to
Sec. 777.6(d)(1)(xii). The export of California heavy crude oil will be
allowed for an average of no more than 25,000 barrels per day (MB/D)
(or such greater or lesser volume as the Secretary of Commerce
authorizes based on the determination and recommendation of the
Secretary of Energy) California heavy crude oil having a gravity of 20
degrees API or lower as follows:
(1) Applicants must submit applications on Form BXA-622P to the
following address: Office of Export Licensing, ATTN: Short Supply,
Petroleum, Bureau of Export Administration, U.S. Department of
Commerce, P.O. Box 273, Washington, DC 20044.
(2) The quantity stated on each application must be the total
number of barrels--not a per day rate. This quantity must not exceed
2.28 million barrels or 25 percent of the annual authorized export
quota.
(3) Each application shall be accompanied by documents that show:
(i) The applicant has or will acquire a title to the quantity of
barrels stated in the application by providing either an accepted
contract or bill of sale for the quantity of barrels stated in the
application; or a contract to purchase the quantity of barrels stated
in the application, which may be contingent upon issuance of an export
license to the applicant;
(ii) Contract(s) to export the quantity of barrels stated in the
application, which may be contingent upon issuance of the export
license to the applicant.
(iii) The crude oil: (A) Has a gravity of 20 degrees API or lower;
(B) Was produced within the state of California, including its
submerged state lands;
(C) Was not produced or derived from a U.S. Naval Petroleum
Reserve; and
(D) Was not produced from submerged lands of the U.S. Outer
Continental Shelf.
(4) OEL will adhere to the following procedures for licensing
exports of California crude oil:
(i) OEL will issue validated licenses for approved applications in
the order in which OEL received the application (date-time stamped),
with the total quantity authorized not to exceed 25 percent (2.28
million barrels) of the annual (9.125 million barrels) authorized
volume per license. If any unused quota exists, OEL will continue to
issue licenses for the unused portion of the quota.
(ii) OEL will approve only one application per month for each
company and its affiliates, as long as there are other non-affiliated
applications pending during that month.
(iii) OEL will carry forward any portion of the 25 MB/D quota that
OEL has not licensed, except that OEL will not carry over any
unallocated portions more than 30 days into a new calendar year.
(iv) OEL will return to the available authorized export quota any
portion of the 25 MB/D quota that OEL had licensed but a licensee had
not shipped within the 90 day authorized license term, except that OEL
will not carry over unshipped volumes more than 30 days into a new
calendar year.
(5) License holders:
(i) Have 90 calendar days from the date OEL issued the license to
export the quantity authorized on the license. The exporter is required
to provide OEL with a certified statement confirming the date and
quantity of exports.
(ii) May combine authorized quantities into one or more shipments,
provided that the validity period of none of the affected licenses has
expired.
(iii) Are prohibited from transferring the license to another
party. See, 15 CFR part 787.
(6) OEL will allow, pursuant to Sec. 786.7(c) of this subchapter, a
10 percent shipping tolerance on the unshipped balance based upon the
volume of barrels it has authorized. In addition to the 10 percent
tolerance on the unshipped volume of barrels, OEL will allow a 25
percent shipping tolerance on the total dollar value of the license.
(7) OEL:
(i) Will not carry over to the next calendar year pending
applications from the previous year.
(ii) Will apply the procedures described in this section without
notifying the public concerning any increase in export volume
authorized by the Secretary of Energy from time to time.
Dated: March 17, 1994.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 94-6885 Filed 3-23-94; 8:45 am]
BILLING CODE 3510-DT-P