Crude Oil Pricing Amendments

Summary

Crude Oil Pricing Amendments - Amends the Emergency Petroleum Allocation Act to establish ceiling prices (or the manner of determining ceiling prices) applicable to any first sale of both old and new crude oil. Establishes the ceiling price such that the weighted average first sale price of crude oil equals $5.25 per barrel for first sale of old crude oil and $11.28 per barrel for first sale new crude oil multiplied by the ratio of (1) the revised implicit price deflator of the GNP immediately preceeding enactment of this Act to (2) the implicit price deflator for the first calendar quarter of 1976. Requires monthly adjustments in the ceiling prices so established by increases of 0.49 percent per month (six percent per year) or one-third the percent increase in the first revised implicit price deflator for the GNP, whichever is the greater. Applies ceiling prices to first sale newly discovered crude oil such that the weighted average first sale price of such oil equals the weighted average first sale price of upper tier crude oil (as established for new crude oil). Requires monthly adjustments to such ceiling prices so established based on the excess or increase of the weighted average (1) landed price or (2) free on board port of origin price of crude oil imported into the United States. Exempts from the provisions of this Act the first sale price of crude oil produced and sold from any stripper well property. Defines terms for the purpose of crude oil pricing. Makes the President's authority to promulgate, make effective, and amend respecting the allocation and specification of prices of residual fuel oil and refined petroleum products discretionary rather than mandatory. Permits higher ceiling prices for first sale of categories of United States produced crude oil if such crude oil production presents extraordinary costs and risks or comes from a property applying bona fide tertiary enhanced recover techniques. Requires that such higher prices (1) do not significantly increase inflation or unemployment and retard real GNP growth, (2) be reported to both Houses of Congress, (3) do not exceed five percent of domestic crude oil production, and (4) be regulated by the Federal Energy Regulatory Commission.

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1 official file

• Introduced in House

  summary · EN · 23 September 1977

  Open at official source

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