Emergency Petroleum Allocation Act

(LATEST SUMMARY)

Emergency Petroleum Allocation Act - States that the purpose of this Act is to grant to 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. Declares that 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.

Provides that, not later than ten days after the date of enactment of this Act, the President shall promulgate a regulation providing for the mandatory allocation of crude oil, residual fuel oil, and each refined petroleum product, in amounts specified in (or determined in a manner prescribed by) such regulation. States that such regulation shall take effect not later than fifteen days after its promulgation.

Declares that in specifying prices, such regulation shall provide for: (1) a dollar-for-dollar passthrough of net increases in the cost of crude oil, residual fuel oil, and refined petroleum products to all marketers or distributors at the retail level; and (2) 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 oil and refined petroleum products at all levels of marketing and distribution.

Provides that the mandatory allocation program established under the regulation 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 and nonbranded independent marketer, and of crude oil to each independent refiner, in an amount equal to the amount sold or otherwise supplied to such marketer or refiner during the corresponding period of 1972, adjusted to provide for pro rata sharing among marketers and distributors and among refiners. Details the procedures for calculating such adjustments. States that such adjustments may be made only upon a finding that, to the maximum extent practicable, protection of the objectives of this Act are attained. Exempts from regulation the price of crude oil produced in a calendar month by any well, the average daily production of which did not exceed 10 barrels per day during the month preceding such calendar month.

Provides that specified regulations of the Economic Stabilization Act of 1970 shall apply to the regulation promulgated under this Act and to any action taken by the President (or his delegate) under this Act.

States that whenever it is necessary for two or more persons engaged in the business of producing, refining, marketing, or distributing crude oil, residual fuel oil, or any refined petroleum product to meet in such a fashion that might otherwise be construed to constitute a violation of the antitrust laws, such persons may do so only upon an order of the President (or of a person to whom the President has delegated authority).

Directs the Federal Trade Commission to monitor the program established under such regulation; and, not later than sixty days after such effective date, to report to the President and to the Congress respecting the effectiveness of this Act and actions taken pursuant to it.