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Section 301(e)(2) of the Energy Policy Act of 2005 (Public Law 109-58) directs the Secretary of Energy to develop procedures to acquire petroleum, subject to certain conditions, in quantities to fill the Strategic Petroleum Reserve (SPR) to the authorized one billion barrel capacity.
On April 24, 2006, a Notice of Proposed Rulemaking (NOPR) for acquisition of crude oil for the SPR was published in the Federal Register. The procedures include provisions for acquisition through several means, including direct purchase, by transfer of royalty oil from the Department of the Interior, and by receipt of premium barrels resulting from deferral of scheduled deliveries of petroleum for the Reserve.
In accordance with the direction provided in the statute, the proposed procedures require DOE, in the acquisition of crude oil, to consider the need to maximize the overall domestic supply of crude oil; avoid incurring excessive costs or appreciably affecting the price of petroleum products to consumers; minimize costs in acquiring the oil; protect national security; and avoid adversely affecting market forces and supply levels.
Comments on the NOPR were due to the Department of Energy by May 24, 2006. Comments were received from three interested parties and were considered by DOE in developing and publishing the final rulemaking.
The Final Rule for acquisition of crude oil for the SPR was published in the Federal Register on November 8, 2006.