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4918 'Federdl'Register Vol. 46, No. 193 j Tuesday, -October 6, 1981 / Rules and RegulatiOns-basis points above an avertige of therate on'26 weekTreasury bills for the,previous.four weeks. This action isconsistent with recent actions of theDepository Institutioiis DeregulationCommittee and will'permit credit unionsto be more competitivein.periods ofdeclining interest rates.The Boird has also removed all

dividend,ceilings and the'14 da ymininttnmaturity on IRA/Keoghaccounts (SectiOn 701.35(h) (6)].Additionally, the NCUA Board hasauthorized Federal credit unions topermit transfers from existing accountsinto these new accounts withoutpenalty. This will provide credit unionsthe flexibility to design IRA/Keoghaccounts which best meet their needsand the needs of their customers.Federal credit unions should note that inorder to avoid treatment of an accountas a demand deposit under FederalReserveRegulation D (with attendantreserve requirements) the accountshould carry an original maturity orrequired notice period of at least 14days, or the credit union should reservethe right to require at least 14 dayswritten notice of intended withdrawal.Regulatory Flexibility Act -

The NCUA Board certifies that theserules will hot have a significanteconomic impact on-a substantialnumber of small credit unions becausethe rules will ipcrease managementflexibility and enhance their competitiveposition. Therefore, a regulatoryflexibility analysis is-not requiredpursuant to 5 U.S.C. 605(b).Effective DateThe final rule increasing the dividendceiling on regular shares and sharedrafts and increasing the floor on thedividend ceiling for share certificatesare made effective in less than 30 daysbecause it relieves a restriction, 5U.S.C.553(d)(1).Accordingly, 12 CFR'701.35(h) isamended as set forth below.

Dated: September 30, 1981.(12 U.S.C. 1757 6], 1766 a))Rosemary Brady,Secretaryof heBoard.1. Section 701.35(h) is amended by

revising paragraphs 1), (2), and 4] an dby adding paragraph 6)as set forthbelow: 701.35 [Amended] * t t

hi MaximumDividend Rate(1) 12% on a share or share draftaccount.

(2) On a share certificate account; thefollowing schedule shall apply:(i)Effective October 1,1981, the-maximuh-n dividend rate shall equal thegreater of 12% or the average 22 yearyield for United States Treasurysecurities as most recently announced,prior to the, date of issuance of thecertificate. Effective August 1, i981,there shall be no dividend ceiling forshare certificates with a qu alifyingperiod of 4 years or more;(ii) Effective August 1, 1982, thereshall be no dividend ceiling on sharecertificates with qualifying-periods of 3years ormore. For share certificateswith qualifying periods of less than 3years, the maximum dividend rate shallequal the greater of 12% or the average.2year yield for United States Treasury,'securities as most recently announcedprior to the date of issuance of thecertificate;(iii) Effective August 1, 1983, thereshall be no dividend ceiling on sharecertificates with qualifying period of 2years or more. For share certificateswith qualifying periods of less than 2years, the maximum dividend rate shallequal the greater of 12% or the rate on 52week United States Treasury bills asmost recently announced prior to thedate of issuance of the certificate;(iv) Effective August1, 1984, thereshall be no dividend ceiling on sharecertificates with qualifying periods of 1year or more. For share certificates withqualifying periods of less than I year,the maximum dividend rate shall equalthe greater of 12% or the rate on 13 weekUnited States Treasury-bills as mostrecently announced prior to the date ofissuance of the certificate;(v] Effective August 1, 1985, thereshall be no dividend ceiling on sharecertificates.

(4] To the extent that paragraph (h) (2)of this section would impose a lowermaximum dividend rate, a Federal creditunion may pay, on share certificates of 10,000 or more having a fixed term of 26weeks or more, up to a rate equaling thehigher of one quarter per cent above therate on 26-week United States Treasurybills as most recently announced priorto the date of issuance of the certificateor one quarter percent above theaverage rate on 28 week Treasury bills,over the four weeks priorto the date ofissuance of the certificate. In the case ofa rate determined pursuant thissubsection, however, compounding ofdividends is not permitted and thedividend rate may be rounded off onlyby rounding down.

6 ] On an Individual RetirementAccount or Keogh Plan share account orshare certificate representing aninvestment of retirement funds pursuantto 724.1, a rate determined by moneymarket conditions. In the case of a sharocertificate, the maximum 14 dayqualifying period limitation set forth In 701.35(d)(1) does not apply. For thepurpose of permitting members totransfer their funds to these accountsfrom other share certificates existing asof November 1, 1981 Federal creditunions may waive the mandatorypenalty provision of subsection (e)(2).IFR Doe 1-28994 Filed0 541: 845 am]BILUNG CODE 7535-01-M

DEP RTMENT OF COMMERCEInternational Trade dministration15 FR Parts 371 372 376, 377 and399Elimination of Quantitative Limitationson Exports of Refined PetroleumProductsAGENCY: Office of Industrial ResourceAdministration, International TradeAdministration, Commerce.ACTION: Final rule.SUMMARY: This rule removesquantitative restrictions on the export ofall refined petroleum products-t hasbeen determined that foreign demandwill not have a serious Inflationaryimpact on the domestic economy, andquantity limitations are no longernecessary to protect domestic supplyfrom excessive drain of materials.Validated licensing requirementscontinue in effect for all refinedpetroleum products.EFFECTIVE DATE: Effective date of action:October 2, 1981. (4 pm )FOR FURTHER INFORMATION CONTACT:Robert F, an, Manager, Short SupplyProgram, Resource Assessment Division,Office of Industrial ResourceAdministration, U.S. Department ofCommerce, P.O. Box 7138, Washington,D.C. 20044 (Telephone: 202-377-3795).SUPPLEMENTARY INFORMATIONRulemaking Requirements

In connection with various rulemaktngrequirements, the Department ofCommerce has determined that:1. Under sedtion 13(a) of the ExportAdministration Act of 1979 (Pub. L.96-72, 50 U.S.C. App. 2401 t seq. ( theAct ), this rule is exempt from the pu liparticipation in rulemaking proceduresof the Administrative Procedure Act.

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Federal Register Vol. 46, No. 193 / Tuesday, October 6, 1981 Rules -and Regulations-This rule does not impos new controlson exports, and is therefore exempt fromsection 13(b) of the Act, whichexpresses the intent of Congress thatwhere practicable regulations imposingcontrols on exports be published inproposed form.2. This rule does not impose anynewinformation collection burden under thePaperwork Reduction Act of 1980, 44U.S.C. 3501 et seq. It s estimated thatthe elimination of quantitativerestrictions on he export of refinedpetroleum products will result in adecreaseof 2,250 reporting hours foraffected. exporting firms.3. This rule is not subject to therequirements of the RegulatoryFlexibilityAct, 5 U.S.C. 6 1 et seq.4 This rule is a major rule within themeaning of section 1(b) of ExecutiveOrder 12291 (46 FR 13193, February 19,1981], Federal Regulation. As providedfor in Section 8(b) of the ExecutiveOrder,an exemption to the requirementfor the preparation of a RegulatoryImpact Analysis was' obtained from theDirector, Office of Management andBudget on October 1, 1981.Therefore this' regulation is issued infina form. Although there is no formalcommentperiod, public comments onthis regulation are,welcome on acontinuing basis.Background

On December 13,1973 the Departmentannounced (38 FR 34442) that validatedexport licenses' would be required forthe export-ofcrude petroleum, gasoline,kerosene, fet fuel, distillate and residualfuel oils, butane, propane and naturalgas liquids. That Notice also advisedexporters that in order to be eligible toreceive shares of the quotas to beestablished on commodities other thancrude petroleum, statements of pastparticipation in exports were to besubmitted in a manner specified.On January 23, 1974 (39 FR 3672,January 29, 1974) the Departmentexpanded upon the procedures for'issuing export licenses for quota an dnonquota petroleum products- andincluded carbon-black feedstock oilamong the producis subject to validatedlicensing. Since petroleum an dpetroleum products became subject torstrict quantitative control, nmunalchanges have been made to the program;however, atall times' exports of refinedpetroleum products continued, to beauthorized along historic lines tomaintain normal relationswith our.tradingpartners. From the start of theprogram, of contiols,,the export of crudeoil was- mbargoed. Various refinementshave-been.made to theRegulations over

the years to reflect changes in thestatutes, but these changes have no taffected the embargo status of crude oil.Restrictions on the exports of crudeand refined petroleum products wererenewed on a quarterly basis until July1977 when the.Department announcedthat controls would be maintainedwithout quarterly ren'ewals untilspecificaliy-modified or rescinded.Regulatory Changes

In line with the President's action onJanuary 28, 1981 to lift the remainingpricp and allocation controls on 6rudeoil, gasoline and propane, the Secretaryof Commerce has adopted therecommendations ofan interagencyTask Force that quantitative exportlimitations on refined petroleumproducts are no longer warranted.The consensus of the TaskForce onExport Control of Refined PetroleumProducts chaired by the DepartmentCommerce, and participated in by theDepartments of State. Treasury, Laborand Energy, and the U.S. Special TradeRepresentative, is that the lifting ofquantitative export restrictions on allrefined petroleum products willbe in thenational interest It was furtherdetermined that the domestic economyis no longer threatened by an excessivedrain of scarce petroleum supplies an dthat foreign demand will not cause aserious inflationary impact on theeconomy. Furthermore, it has beendetermined that with an adequatesupply of crude petroleum and U.S.refineries operating below normalcapacity, U.S. consumers will benefitdirectly from the export of petroleumproducts because exports will permitU.S. refiners greater flexibility inproduct'output. The task force alsoadvised that it anticipates the potentialexport marketgenerally would belimited to spot situations resulting inincreased U.S. refinery efficiency.Freetrade-will benefit the balince ofpayments.-take advantage oftransportation efficiencies and allow theU.S. to respond quicldy to ts potentialinternational responsibilities.Therefore, quantitative exportrestrictions are no longerrequired forthe following refined petroleumproducts: Aviation gasoline. gasoline,,jetfuel, keosene. distillate fuel oil, residualfuel oil, butane, propane, butane-propane mi, and naphthas. Thisrelaxation of controls does not apply toother foreign policy or national securitycontrolswhich may affect these-products.Validated license requirements oncarbon-black feedstock and asphalt arebeing removed- Licensing of theseproductswerebrginally imposed

because of theirpossible energy end-use..Carbon-black feedstock oil as a petro-chemical feedstock in the manufactureof carbon black may nowbe exportedunder a general license, C INA. If thisproduct is exported as residual fuel oil,the validated licensing requirementapplies. Asphalt, which was placedunder validated licensing control onApril 1.1977, to guarantee non-energyonly exports, may now be exportedusing General License G NNR. Ilhowever, the product, either alone orblended, is to be exported for fuel usage,as residual fuel oil, it will require avalidated export license prior toshipmenLOn September 29,1975. short supplycontrols were extended to covermanufactured gas and synthetic naturalgas in view of a potential domesticnatural gas shortage and the possibilityof substitution for natural gas orliquefied petroleurugas or natural gasliquids'. In viewr of the impracticability ofthis happening. and the availability ofnatural gas, artificial gases may now beexported using General license C-AV..As required by section 7(e) of heExport Administration Act of 1979, avalidated export license will be requiredprior to the export of refined petroleumproducts. Requirements for the fifing ofapplications for such licenses are listedbelow.licenses may b ssued for shipmentsto all destinations with which the U.S.has normal trading relations. Thesechanges have been made in recognitionof the need to provide maximumflexibility to U.S. industry in re-enteringthe world petroleum product trade.Applications for 250,000 bbls or more ofany refined petroleum product m anyfiscal year will require Congressionalreview necessitating a 30-day delaymprocessing, as required by section 7(e) ofthe Act. Exporfer will be notified uponmaking applicatioirif their request toexport will be subject to the statutory30-day.As a result of these changes GeneralLicense G-PCC is no longer necessary,and thus has been removed.This rule does not alter the'generalrestriction on the export of crudepetroleum. This regulation simplyrestructures the existing regulatorylanguage without substantive changeand places in regulatory format theexistingprovisions of section 7(d] of theExport Administration Act of 1979concerning Alaskan North Slope CrudeOil.Exporters are advised thatlicenseapplications will be reviewed on a case-by-case basis and will be acted upon

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49110 Federal Register / Vol. 46 No. 193 / Tuesday, October 6, 1981 / Rules and Regulationsfavorably barring any overridingnational interest considerations. Also,,exporters are placed on notice -that fthere is an interruption in theinternational supply of crude oil or otheraction resulting in a drastic change inthe U.S. or world petroleum supply-situation, quantitative restrictions maybe re-imposed.Accordingly, the ExportAdministration.Regulations 15 CFRParts 368-399) are amended as follows:PART 371 GENERAL LICENSES

1.Section 371.2 c) 10) is revised toread as follows:371 2 General Provisions.c)(10) The commodity is listed in aSupplement to Part 377 as being undershort supply control, unless the export isauthorized under the provisions ofGeneral Licenses G-NNR, GLV, SHIP

STORES PLANE STORES RCS G-FTZor GUS;371.8 [Reserved]2. Section 371.8 is removed andreserve3. Section 371.9 b) is revised to readas follows:371 9 General License SHIP STOR S

b) Restrictionson exports ofpetroleumandpetroleumproducts.Crude petroleum and blends ofunrefined crude petroleum withpetroleum products may not be exportedunder this general license. Export of anypetroleum product listed in SupplementNo. 3 to part 377 may be made underthis general license provided theexporter, prior to the export of suchcommodity, has assembled documentaryevidence establishing that thecommodity was not produced or derivedfrom a Naval Petroleum Reserve. Suchdocumentary evidence may take theform of the affidavit prescribed in 377.6(e)(2), or it may consist of otherdocumentation establising the factualdata to be covered in such affidavit. Theexporter shall retain such documentaryevidence in his files for the periodprescribed m 387.13(e), and is put onnotice that in appropriate cases, auditsof exporters' files may be conducted todetermine that such documentaryevidentie is available covering eachexport of a commodity listed inSupplement No. 3 to Part 377 that wa smade under General License SHIPSTORES. Any petroleum commodityidentified in Supplement No. 3 to Part377 which does not meet the conditions

for export under General License SHIPSTORES may be exported only under avalidated license issuedpursuant to377.6 d) 3). Crude petroleum may beexported only under a validated licenseissued pursuant to 377.6 d) 1).4. Section 371.10 b) 2) is revised toread as follows:

371 10 General License PLANE STOR S(b)(1) Restrictionson Petroleum andPetroleumProducts or Use on Aircraft.[Reserved]

(2) No export of any petroleum productlisted in Supplement No. 3 to Part 377may be made under this general licenseunless the exporter, prior to the exportof such commodity, has assembleddocumentary evidence establishing thatthe commodity was not produced orderived from a Naval PetroleumReserve. Such documentary evidencemay take the form of the affidavitprescribed in 377.6(e)(2), or it ma yconsist of other documentationestablishing the factual data to becovered in such affidavit. The exportershall retain such documentary evidencein his files for the period prescribed in387.13(e), and is put on notice that inappropriate cases, audits of exporters'files may be conducted to determinethat such documentary evidence isavailable covering each export of acommodity listed in Supplement No. 3 toPart 377, that was made under GeneralLicense PLANE STORES.5. Section 371.12(e) is revised to readas follows: 371 12 General Llcense RCS; Shipmentsto U.S. or Canadian Vessels Planes andAirline Installations or Agents.

e) Restrictionson petroluem andpetroleumproducts.Crude petroleumand blends of unrefined crude petroleumwith petroleum products may not beexported'under this general license.Export of any petroleum product listedin Supplement No. 3 to Part 377 may bemade under this general licenseprovided the exporter, prior to theexport of such commodity, hasassembled documentary evidenceestablishing that he commodity was notproduced or derived from a NavalPetioleum Reserve. Such documentaryevidence may take the form of theaffidavit prescribed in 377.6(e)(2), or itmay consist of otler documentationestablishing the factual data to becovered in such affidavit. The exportershall retain such documentary evidenceiithis files,for the period prescribed in

387.13(e), and.is put on n otice that inappropriate cases, audits of exporters'files may be conducted to determine

that such documentary evidence Isavailable covering each export of acommodity listed in Supplement No. 3 toPart 377, that was made under GeneralLicense RCS. Any other petroleumcommodity listed in, Supplement No. 3 toPart 377, which does not meet theconditions for export under GeneralLicense RCS may be exported onlyunder a validated license Issuedpursuant to 377.6 d) 3). Crudepetroleum may be exported only under avalidated license issued pursuant to 377.6 d) 1).6. Section 371.13 is amended byadding a new paragraph (o) o read asfollows:

371 13 General License GUS; Shipmentsto Personnel and Agencies of the U SGovernment.

c) Petroleumexports.The provisionsof this 371.13 do not apply to theproducts listed in Supplement No. 3 toPart 377 unless, in addition to meetingthe other requirements of 371.13, theexporter, prior to exporting suchproducts, has assembled thedocumentary evidence described in 371.16 establishing that the productwas not derived from a Naval PetroleumReserve. Crude petroleum may beexported only under a validated licenseissued pursuant to 377.6(d)(1).

7 Section 371.16 b) is revised to readas follows:371.16 General License G NNR;Shipments of Certain Non Naval ReservePetroleum Commodities.

(b) Prior to the export of a commodityunder this General License G-NNR,, theexporter must have assembleddocumentary evidence establishing thatthe commodity was not produced from aNaval Petroleum Reserve, Suchdocumentary evidence may take theform bf the affidavit prescribed In 377.6(e](2), or it may consist of otherdocumentation establishing the factualdata to be covered in such affidavit. Theexporter shall retain such documentaryevidence in his files for the periodprescribed in 387.13(e), and is put on'notice that in appropriate cases, auditsmay be conducted of exporters' recordsto determine that such documentaryevidence-is available covering eachexport of a commodity listed inSupplement No. 3 to Part 377, that wasmade under General License G-NNR,Any commodity listed in PetroleumCommodity Group Q which does notmeet the conditions for export underGeneral License G-NNR, GLV HIPSTORES PLANE STORES; CS or GUS

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Federal Register / Vol. 46, No. 193 Tuesday, October 6, 1981 Rules and Regulationsmay be exported only under a validatedlicense issued pursuant to 377.6 d) 3).PART 372-INDIVIDUAL VALIDATEDLICENSES AND AMENDMENTS

8. Section 372.9 d) 3) is revised to readas follows: 372.9 Issuance of validated licenses. d)***3) Specialprowsions. f specialprovisions for any commodity includeterms regarding the validity period of anindividual export license,these will befound in Part 376.

PART 376 SPECIAL COMMODITYPOLICIES AND PROVISIONS

9. Section 376.9(c)(5) is revised to readas follows:-376.9 Ship stores, plane stores, supplies,and equipment.* -

c)*-*5)Additionalinformation. tate thereasons why a general license ismapplicable-to the proposed exportunless the reasons are already indicatedelsewhere on the application or on anattachment If additional space isrequired, an attachment may be used.Also state the gross registered tonnage(GRT), type of main engines and ratedhorsepower, daily fuel consumptionrate, total fuel capacity, and fuel supplyon board, indicating specifically-ftenumber of days running supply from theport where additional supplies arerequested. In the case of aircraft, statemake and.model.-In addition, theaffidavit required by 377.6(e)(2) mustaccompany the application.PART 377--SHORT SUPPLYCONTROLS AND MONITORING

10. Section 377.6 is revised to read asfollows:- 377.6 Petroleum and petroleumproducts.-The following provisions supplementthe regular requirements tor submittingan export license application (see Part372). a) onsignee in countryof ultimate

destination.Where shipments arecontemplated to be made to consignees.inmore than one country, the phrase Various-see attached list shall beentered in Item 7 of Form ITA-622P(Rev. 7-81).b) [Reserved].c) [Reserved].d) Issuanceof export icenses.-Petroleum Commodity Groups, as

identified m the following paragraphs.are defined in Supplement No. 2 to Part377 Submit each application for avalidated license to export a commodityfrom one of these groups to the Office ofExport Adnimstration, Attn: ShortSupply Program, Resource AssessmentDivision, U.S. Department of Commerce,P.O. Box 7138, Washington, D.C. 20044.Include with each license applicationthe docun~entation required by377.6(e). Applications willbeconsidered subject to the appropriateprovisions of this section.1)GroupA. The export from theUnited States of crude petroleum an dpartly refined petroJeum Is permittedonly as provided in this paragraph.Applications to export Group Acommodities shall include evidence ofan order as described in 372.6, and thedocumentation described in 377.6(e)1) and 2). Different situations existdepending upon the source of the crudeoil and the nature of the proposeaexport transaction. Applications will beapproved if it is established to thesatisfaction of the Department ofCommerce that the export is consistentwith the national interest and thepurposes of the Energy Policy andConservation Act andone of thefollowing conditions is met:I)Alaskan North Slope Crude.Pursuant to section 7 d) of the ExportAdministration Act of 1979, AlaskanNorth Slope Crude Petroleum may beexported to an adjacent foreign countryto be refined and consumed therein inexchange for the same quantity of crudeoil being exported-from that country tothe U.S., provided:A) Such exchange will result, throughconvenience or increased efficiency oftransportation, in lower prices forconsum ers o f petroleum products in theU.S..B)Witlun 3 months following theinitiation of such exchange, thetransaction results in 1)acquisitioncosts to the refiners which purchase theimported crude oil being lower than theacquisition costs such refiners wouldhave to pay for the domesticallyproduced oil in the absence of such anexchange, and 2) not less than 75percent of such savings in costs must bereflected in wholesale and retail pricesof products refined from such importedcrude oil.

Note.-Paragraphs 377.6[d) 1) Ii)hrough(vii) below apply to all crude oil, includingAlaskan North Slope Crude oIL ii)Temporary exports.The Group Acommodity is being exported forconvenience or increased efficiency oftransportation across parts of an

adjacent foreign state, and shall re-enterthe United States in4he same form. iii) Equivalent mportation.Theexport will result directly in theimportation into the United States of anequal or greater quantify of that samecommodity. This kind of transaction iscarried out for convenience or increasedefficiency of transportation with personsor the government of an adjacent foreignstate.(iv) NavalPetroleumReserve Origin.The Group A commodity to be exportedmeets the following conditions:A) The commodity was producedfrom a Naval Petroleum Reserve;(B) The commodity has not been an dwill not be transported by pipeline overa Federal nght-of-way granted pursuantto Section 28(u) of the Mineral LeasingAct of 1920; andC) The President makes andpublishes an express findihg that theexport-1)Will not diminish the total quantityor quality of petroleum available to theUnited States;2)Is in the national interest; and3) Is in accord with the ExportAdministration Act of 1979.(v) Transportedoverrights of waygrantedunder heMineralLeasing ActThe Group A commodity has been orwill be transported by pipeline overrights-of-way granted under Section 28of the Mineral Leasing Act of1920 30U.S.C. 185), and the President-A) Makes and publishes an expressfinding that the export-1)Will not diminish the totalquantityor qualityofpetroleum available to theUnited States;2)Will have a positive effect onconsumer oil prices by decreasing theaverage crude oil acquisition costs ofrefiners;3)Will be made only under contractsthat may be terminated if the petroleumsupplies of the United States areinterrupted o r seriously threatened; and4) Is in the national interest and inaccordance with the provisions of theExport Administration Act; and(B) Reports the finding described inA) above to the Congress as an energyaction as defined in Section 551 of theEnergy Policy and Conservation Act (42U.S.C. 6421) and either-1)A 60-calendar day period duringwhich both Houses of Congress are incontinuous session, as defined inSection 551 of that Act, has elapsed an dneither House has passed a resolutiondisapproving the findings; or2)Each House of Congress haspassed a resolution approving suchfinding or affirmatively stating in

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49 2 Federal Register Vol. 46, No. 193 Tuesday, October 6, 1981 Rules and Regulationssubstance, that such House does no tobject to such findings.(vi) Correspondingmportationof thesame commodity.The Group Acommodity was not produced from theNaval Petroleum Reserves and was no tand will not be transported by pipelineover rights-of-way granted pursuant toSection 28(u) of the Mineral Leasing Actof 1920, and the export is part of anoverall transaction which--(A) Will result directly in theimportation into the United States of anequal or greater quantity and an equalor better quality of the same commodity;(B)Will have a positive effect onconsumer oil prices by decreasing theaverage crude oil acquisition costs torefiners;C)Will take place only undercontracts that may be terminated if thepetroleum supplies of the United Statesare interrupted or seriously threatened;D)Will be in the national interest;E) Will be in accordance with theExport Administration Act and thepurposes of theEnergy Policy an dConservation Act;(F) For compelling economic ortechnological reasons that are beyondthe control of the applicant, thecommodity cannot reasonably beprocessed within the United States; andG)The Group A commodity to beimported into the United States wouldnot be available for import i the exporthad not taken place.(vii) Corresponding mportationofrefinedcommodities.The Group Acommodity was not produted from theNaval Petroleum Reserves, and was no tand will not be transported by pipelineover fights-of-way granted underSection 28 of the Mineral Leasing Act of1920, and will be exported as part of anoverall transaction which-A) Will result directly in theimportation into the United States of aquantity and quality from otherPetroleum Commodity Groups that is notless than the quantity and quality ofcommodities that would be derived from-therefining of the commodity for whichan export license is sought;(B)The commodities imported into theUnited States will be sold at prices nohigher than the lowest price at whichthey could have been sold if the exporthad not taken place and the Group Acommodities had been refined at thenearest U.S. refinery capable ofprocessing it within a reasonable periodof time; an dC)For compelling economic ortechnological reasons that are beyondthe control of the applicant, the Group Acommodity cannot reasonably beprocessed within the United States.

(2) GroupsB, C, D,E F G K L,MandN.An applicatign for a validatedlicense to exporta commodityfromPetroleum Commodity Groups B,C, D ,F, G, K, L and M shall include evidenceof an order as described in 372.6 andthe documentation described in 377.6[e)(2). An application for avalidated license to export a commodityfrom Petroleum Commodity Group Nmust be submitted with evidence of anorder, as described in 372.6, and thedocumentation required by 3776(e)(2)and 3). Applications will be consideredon individual merits and be acted uponfavorably barring any overridingnational interest considerations.3) Petroleum andpetroleumproductsproduced rom theNavalPetroleumReserves or which have been exchangedtherefor. i) The export of thosecommodities listed in Supplement No. 3to Part 377 which were produced orderived from the Naval PetroleumReserves or which became available forexport as a result of an exchange of aNaval Petroleum Reserves-produced orderived commodity, isprohibitedpursuant to the provisions of 10 U.S.C.7430(e) as provided in 377.6 d) 1.(ii) Applications for a validatedlicense to export those commoditieslisted in Supplement No. 3 to Part 377which were produced or derived fromthe Naval Petroleum R eserves, or whichbecame available for export as a resultof an exchange for a Naval PetroleumReserves-produced or derivedcommodity, other than a commoditybelonging to Petroleum CommodityGroup A which is subject to theprovisions of 377.6 d) 1), will beconsidered under the provisions of thisparagraph if submitted with evidence ofan order, as described in 372.6, and thesupporting documentation describ6 m377.6(e) (4) and 5). A validated licenseto export such a commodity may beissued only if it is demonstrated to thesatisfaction of the Department ofCommerce -A) That the commodity will beexchanged in similar quantity forconvemence or increased efficiency oftransportation with persons or thegovernment of an adjacent foreign state,or (B)That the commodity is beingexported temporarily for convemence orincreased efficiency of transportationacross parts of an adjacent foreign stateand will re-enter the United States, orC] The President has made an dpublished'dn express finding that such

Natural gas and liquefied natural gas tL.N.G.).and synthetic natural gas commingled with naturalgas require-export authorization from the U.S.Department of Energy. See 370.10 g).

export will not diminish the total qualityor quantity of petroleum available to theUnited States and that such export Is Inthe national interest and is In accordwith the Export Administration Act of1979.e) Documentation.An application fora validated license to export petroleumand petroleum products must besubmitted on Form ITA-622P,Application for Export License. Theexporter must submit with theapplication, documentary evidence of anorder as described in 372.6 a) 1)an d(2), and one o r more to the followingdocuments, as required by theappropriate paragraph of 377.6 d).(1)A sworn affidavit, signed by anauthorized representative of theexporter, which demonstrates (inconjunction with such supportingevidence as may be required by theDepartment o Commerce) that theapplicable criteria of 377.6 d) 1) aresatisfied;(2) A sworn affidavit, signed by anauthorized representative of theexporter, reading as follows (insertparagraph (a) or b), as appropriate, andparagraphs (c) and d)):Affidavit I, Name) , (Title) of(Company) - hereby certify that the(Quantity) - bbls. of (Commodity)

(a) Ipropose to export from the UnitedStates were not nor will not be producedfrom a Naval Petrolqut Reserve nor werethey derived from any crude oil gases of allkinds (including nittural gas, hydrogen,carbon dioxide, helium, etc.). naturalgasoline, and other related hydrocarbons (tarsands, asphalt, propane, butane, etc.) orollshale produced from a Naval PetroleumReserve.OR

b) Ipropose to export from the UnitedStates. if they are the product of a refinery orpetrochemical plant utilizing as raw materialany resource produced from aNavalPetroleum Reserve, the quantity of theproducts from that refinery or petrochemicalplant which are to be exported, do not andwill not exceed that portion of the totalproducts of that refinery or petrochemicalplant attributable to the non-Naval PetroleumReserve raw materials used in that plant,(c)The petroleum commodities that Ipropose to export did not become availablefor export as a result ofan exchange for aNaval Petroleum Reserves-produced resourceor a product(s) derived therefrom.d)To the extent thatI do not havepersonal knowledge of the foregoing, Ihaveaddressed appropriate inquines to the refineror producer of the commodity(les) to be

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Federal Register Vol. 46, No. 193 Tuesday, October 6, 1981 Rules and Regulationsexported, and have been assured by thatperson that these statements are correct.'The mdi idual who made theserepresentations to me is:(Name) - . (Title)- of(Company) and he communicatedthese assurances to me on (Date)(Signature)

(3)i An end-use statement by theapplicant in affidavit format indicatingthe name, location and type of businessof the end-user, and the nature of theend-use; and i)Apublished technical data sheet(unless one has previously beensubmitted) or independent inspector'scertificate of analysis of the product tobe exported which clearly indicates thatthe commodity is properly classifiableunder'Petroleum Commodity Group N.(4) A sworn affidavit, signed by theexporter or his authorizedrepresentative, together with suchsupporting evidence as may beappropriate, setting forth either-

(i) The facts necessary to establishthat the-conditions prescribed in 377.6(d)(3)(ii)(A) or (B) have been met;orP(ii) The reasons why the exporterbelieves that the President should beasked to make and publish an expressfinding that the proposed export will notdimimsh-the total quantity or quality ofpetroleum available to-the UnitedStates, and that such export is in thenational interest and is in accordancewith the Export.Administration Act of1979.(5) If the Export Control CommodityNumber preceding the-commoditydescription m the Commodity ControlList (Supplement No to 399.:1) isfollowed by the code letter A, includethe documentation required by Part 375of these regulations for the country ofultimate.destination.(0[Reserved].g ) Validityperod.A license issuedpursuant to this 377.6 is subject to thesame validity period limitations as otherindividual validated licenses (see 372.9(d)).h)Confidentiality.Anydocumientation required from theexporter under this section will betreated as confidential informationunder Section 12(c) of the ExportAdministration Act of 1979. i)CongressionalRevivew.Applications to export more than250,000 barrels of any refined petroleumproduct to any destination in a singlefiscal year will be subject to a 30 dayprocessing delay. Applications not- 'This information 6ay be submitted immediatelyafter the export has taken place, ifnot known attime of application.

su ject to this reporting requirementinclude:(1).Foreign origin products which arern-transit through the United States, an dhave not been entered for consumption. 2] Temporary exports where theproduct will move in-transit or totemporary storage outside the UnitedStates and will be returned to the U.S.(3) Product exchanges m equalquantity for efficiencies oftransportation.4)Processing of products (includingfractionation) with all the products to bereturned td'the United States.

Supplement No. 2 to Part 377 [Amended]11. Supplement No. 2 to Part 377 isamended as follows:a. By revising the heading PetroleumProducts Subject to Validated Licensingand Histoncal Quotas to readPetroleum Products Subject toValidated Licensing in Accordance with

377.6(d) (2) and (3).b By removing the headingPetroleum Products Subject toValidated Licensing But Not Quotasc. By removing Petroleum CommodityGroups H, J, andR.

d. By removing Petroleum Commodity Groups N-1, N-2, and N-3, and insertingin lieu thereof the following- ROUPN

431.0290 Napihu.am but e=dtfrn qrmtr n ens ech wo packacd and shod Indurm or BbLcontanews not excoodiig 55 U.S. gaons per com *w &d tVchQ e eipoted Insudh475.3500475.6781

e. By revising the heading prior to P>etroleum Commodity Group Q to read Petroleum Products Subject to Provisions of Either 371.16 or 377.6(d)(3y', andinserting 475.1505 above entry 475.1515 and inserting in numerical order by Sched-ule B Numbers, the following entries:

475.1505 SynthaCic aral gasA MLLu..475.1570' Gas. maraact wod_ M CU. t475.6710 'Carbon .ck foodftock oa Bb.5112500 Petroleum asp. S. To.521.1120 Pavig trixturos, bhunwvou. basd on sa +.t aud pctro.". Vake.

51atural gas arnd W.e abxi 933 LN.O.. and srnttc~ n~ara gas cornkrgk with -abxs gas. requ- ej-1oraautaion from the,S. Departrrnt of Enorgy. Soo 3MO.19L~f. By removing the paragraphs entitled Quantities , Base Periods and Sub-

mission Dates and that portion of Supplement No. 2 entitled Quarterly CountryQuotas

PART 399-COMMODITY CONTROL U T AND RELATED MATTERSSupplement No. I to 399.1 (Amended]

12. Entry No. 1702A of the Commodity Control List, Supplement No. 1 to 399.1is amended by revising the parenthetical sentences to read as follows:

1702A Hydrausc foj46s.. P_-swWOSWdYT , 500 MG ,

See 377.6[d)(3) and 377.6[e) (4) and (5) for special documentation requirements. Also see 371.5(d) for special provisions regarding shipments under General iUcense GLV.(Secs. 5 7 13 5, Export Administration Act of 1979. 93 Stat. 503 (50 U.S.C. app. 2401 et seq ;sec. 103. Pub. L 94-163 (42 U.S.C. 022); sec. 101 Pub. L 93-153 amending (30 U.S.C. 185]; sec.201 (10), Pub. L. 94-258, 90 Stat. 309. amending 10 U.S.C. 7430, E.O. 12214. (45 FR 29783. May6, 1980); Department Organization Order 10-3. (45 FR 6141 January 25. 1980); InternationalTrade Administration Organization and Function Orders 41-1 (45 FR 11882. February 22.1980) and 41-4 (45 FR 65003.October 1,980))

Dated. September 30. 1981.Bo DenysykDeputyAssistantSecretaryforExportAdniftfstrotion InternationalTradeAdumstmton.LFRoc. 81-M3 Filed0 5 = =1

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