A bill to enhance the value of the naval petroleum reserves by improving the production and pricing mechanisms applicable to such reserves.

Amends Federal law regarding the administration of the naval petroleum reserves to authorize the President to establish a petroleum production rate from Naval Petroleum Reserves Numbered 1, 2, and 3 that is less than the maximum efficient rate and that takes into account: (1) energy security; (2) prevailing local market conditions; and (3) the effect of such production rate on the maximum amount of revenues which could be realized from such Reserves.

Directs the Secretary of the Navy to establish a minimum sales price for the U.S. share of petroleum produced at such Reserves at an amount not less than the prevailing local market price for comparable petroleum in the area at time of sale.

Prescribes guidelines under which the Secretary shall receive bids regarding petroleum sales and disposition.

Repeals the restriction placed upon the amount of Reserve petroleum that may be purchased by any person.

Authorizes the President to exempt Reserve petroleum from any export restriction if such exemption is determined to be in the national interest.

Directs the Secretary to establish maximum efficient rates regarding formations within Naval Petroleum Reserve Numbered 1. Requires the Secretary to provide that private ownership interests within such Reserve shall receive the amount of production from each formation that would be received if petroleum were being produced from that formation at the maximum efficient rate.