42 U.S.C. § 6247b — Purchase of oil from marginal wells

Page 6679 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6249 1 So in original. Probably should be ‘‘products’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Aug. 13, 1981, see section 1038 of Pub. L. 97–35, set out as an Effective Date of 1981 Amend- ment note under section 6240 of this title. TRANSFER OF FUNDS TO SPR PETROLEUM ACCOUNT FOR DRAWDOWN AND SALE OPERATIONS Pub. L. 106–113, div. B, § 1000(a)(3) [title II], Nov. 29, 1999, 113 Stat. 1535, 1501A–180, provided in part: ‘‘That the Secretary of Energy hereafter may transfer to the SPR Petroleum Account such funds as may be nec- essary to carry out drawdown and sale operations of the Strategic Petroleum Reserve initiated under sec- tion 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241) from any funds available to the Depart- ment of Energy under this or any other Act: Provided further, That all funds transferred pursuant to this au- thority must be replenished as promptly as possible from oil sale receipts pursuant to the drawdown and sale.’’ ACQUISITION, TRANSPORTATION, AND INJECTION OF PE- TROLEUM PRODUCTS FOR SPR; APPLICABILITY OF SUBSEC. (d) Pub. L. 97–35, title X, § 1034(c), Aug. 13, 1981, 95 Stat. 620, provided that: ‘‘The provisions of section 167(d) of such Act, as added by subsection (a) of this section [subsec. (d) of this section], shall apply with respect to the outlays associated with unexpended balances of ap- propriations made available and obligated as of the end of fiscal year 1981 for the acquisition, transportation, and injection of petroleum products for the Strategic Petroleum Reserve to the same extent and manner as such provisions apply with respect to withdrawals from the SPR Petroleum Account.’’ § 6247a. Use of underutilized facilities (a) Authority Notwithstanding any other provision of this subchapter, the Secretary, by lease or other- wise, for any term and under such other condi- tions as the Secretary considers necessary or ap- propriate, may store in underutilized Strategic Petroleum Reserve facilities petroleum product 1 owned by a foreign government or its represent- ative. Petroleum products stored under this sec- tion are not part of the Strategic Petroleum Re- serve and may be exported without license from the United States. (b) Protection of facilities All agreements entered into pursuant to sub- section (a) shall contain provisions providing for fees to fully compensate the United States for all related costs of storage and removals of pe- troleum products (including the proportionate cost of replacement facilities necessitated as a result of any withdrawals) incurred by the United States on behalf of the foreign govern- ment or its representative. (c) Access to stored oil The Secretary shall ensure that agreements to store petroleum products for foreign govern- ments or their representatives do not impair the ability of the United States to withdraw, dis- tribute, or sell petroleum products from the Strategic Petroleum Reserve in response to an energy emergency or to the obligations of the United States under the Agreement on an Inter- national Energy Program. (d) Availability of funds Funds collected through the leasing of Stra- tegic Petroleum Reserve facilities authorized by subsection (a) after September 30, 2007, shall be used by the Secretary of Energy without further appropriation for the purchase of petroleum products for the Strategic Petroleum Reserve. (Pub. L. 94–163, title I, § 168, as added Pub. L. 105–33, title IX, § 9303(a), Aug. 5, 1997, 111 Stat. 676.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsec. (a), was in the original ‘‘this title’’, meaning title I of Pub. L. 94–163, Dec. 22, 1975, 89 Stat. 875, which is classified principally to this subchapter. For complete classification of title I to the Code, see Tables. § 6247b. Purchase of oil from marginal wells (a) In general From amounts authorized under section 6246 of this title, in any case in which the price of oil decreases to an amount less than $15.00 per bar- rel (an amount equal to the annual average well head price per barrel for all domestic crude oil), adjusted for inflation, the Secretary may pur- chase oil from a marginal well at $15.00 per bar- rel, adjusted for inflation. (b) Definition of marginal well The term ‘‘marginal well’’ has the same mean- ing as the definition of ‘‘stripper well property’’ in section 613A(c)(6)(E) of title 26. (Pub. L. 94–163, title I, § 169, as added Pub. L. 106–469, title III, § 301(a), Nov. 9, 2000, 114 Stat. 2037.) PART C—AUTHORITY TO CONTRACT FOR PETRO- LEUM PRODUCT NOT OWNED BY UNITED STATES Editorial Notes PRIOR PROVISIONS A prior part C, consisting of section 6251 of this title, was redesignated part E of this subchapter, prior to re- peal by Pub. L. 109–58. § 6249. Contracting for petroleum product and fa- cilities (a) In general Subject to the other provisions of this part, the Secretary may contract— (1) for storage, in otherwise unused Strategic Petroleum Reserve facilities, of petroleum product not owned by the United States; and (2) for storage, in storage facilities other than those of the Reserve, of petroleum prod- uct either owned or not owned by the United States. (b) Conditions (1) Petroleum product stored pursuant to such a contract shall, until the expiration, termi- nation, or other conclusion of the contract, be a part of the Reserve and subject to the Sec- retary’s authority under part B. (2) The Secretary may enter into a contract for storage of petroleum product under sub- section (a) only if—