Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Rules and Regulations 65373 

Reporting and recordkeeping 

requirements. 

7 CFR Part 801 

Exports, Grains, Scientific equipment. 

■ For the reasons set out in the 

preamble, we are amending 7 CFR parts 

800 and 801 as follows: 

PART 800—GENERAL REGULATIONS 

■ 1. Revise the authority citation for part 

800 to read as follows: 

Authority: 7 U.S.C. 71–87k. 

■ 2. Amend § 800.71 by revising Table 

1(2) (i through xi) and revising Table 

2(1)(v) and (2)(ii) in Schedule A of 

paragraph (a) to read as follows: 

§ 800.71 Fees Assessed by the Service. 

(a) * * * 

TABLE 1.—FEES FOR OFFICIAL SERVICES PERFORMED AT AN APPLICANT’S FACILITY IN AN ONSITE FGIS LABORATORY 1

Schedule A.—Fees for Official Inspection and Weighing Services Performed in the United States 

* * * * * * * 

(2) Additional Tests (cost per test, assessed in addition to the hourly rate): 3

(i) Aflatoxin (rapid test kit method) ................................................................................................................................................... $10.00 

(ii) NIR or NMR Analysis (protein, oil, starch, etc.) .......................................................................................................................... 2.25 

(iii) Vomitoxin (qualitative) ................................................................................................................................................................ 12.50 

(iv) Vomitoxin (quantitative) .............................................................................................................................................................. 18.50 

(v) Waxy corn (per test) ................................................................................................................................................................... 2.25 

(vi) Fees for other tests not listed above will be based on the lowest noncontract hourly rate ...................................................... ....................

(vii) Other services ........................................................................................................................................................................... ....................

(a) Class Y Weighing (per carrier) ....................

(1) Truck/container ............................................................................................................................................................. 0.30 

(2) Railcar ........................................................................................................................................................................... 1.25 

(3) Barge ............................................................................................................................................................................ 2.50 

* * * * * * * 

TABLE 2.—SERVICES PERFORMED AT OTHER THAN AN APPLICANT’S FACILITY IN AN FGIS LABORATORY 1 2

(1) Original Inspection and Weighing (Class X) Services * * * 

(v) Additional tests (excludes sampling): 

(a) Aflatoxin (rapid test kit method) ........................................................................................................................................... $30.00 

(b) NIR or NMR Analysis (protein, oil, starch, etc.) .................................................................................................................. 10.00 

(c) Vomitoxin (qualitative) .......................................................................................................................................................... 31.00 

(d) Vomitoxin (quantitative) ....................................................................................................................................................... 38.50 

(e) Waxy corn (per test) ............................................................................................................................................................ 10.00 

(f) Canola (per test_00 dip test) ................................................................................................................................................ 10.00 

(g) Pesticide Residue Testing: 3

(1) Routine Compounds (per sample) ............................................................................................................................... 216.00 

(2) Special Compounds (per hour per service representative) ......................................................................................... 115.00 

(h) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1. 

(2) Appeal inspection and review of weighing service.4 * * * 

(ii) Additional tests (assessed in addition to all other applicable tests): 

(a) Aflatoxin (rapid test kit method) ........................................................................................................................................... $30.00 

(b) NIR or NMR Analysis (protein, oil, starch, etc.) .................................................................................................................. 17.70 

(c) Vomitoxin (per test-qualitative) ............................................................................................................................................ 41.00 

(d) Vomitoxin (per test-quantitative) .......................................................................................................................................... 47.00 

(e) Vomitoxin (per test-HPLC Board Appeal) ............................................................................................................................ 141.00 

(f) Pesticide Residue Testing: 3

(1) Routine Compounds (per sample) ............................................................................................................................... 216.00 

(2) Special Compounds (per hour per service representative) ......................................................................................... 115.00 

(g) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1. 

* * * * * * * 

PART 801—[AMENDED] 

■ 3. Revise the authority for part 801 to 

read as follows: 

Authority: 7 U.S.C. 71–87k 

■ 4. Amend § 801.7 by adding a new 

paragraph (b)(4) to read as follows: 

§ 801.7 Reference methods and tolerances 

for near-infrared spectroscopy (NIRS) 

analyzers. 

* * * * * 

(b) * * * 

(4) NIRS barley protein analyzers. The 

maintenance tolerances for the NIRS 

analyzers used in performing official 

inspections for determination of barley 

protein content are 0.20 percent mean 

deviation from the national standard 

NIRS instruments, which are referenced 

and calibrated to the Combustion 

method, AOAC International Method 

992.23. 

Pat Donohue-Galvin, 

Acting Administrator, Grain Inspection, 

Packers and Stockyards Administration. 

[FR Doc. E6–18860 Filed 11–7–06; 8:45 am] 

BILLING CODE 3410–KD–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 981 

[Docket No. FV06–981–2 FR] 

Almonds Grown in California; Changes 

to Incoming Quality Control 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 


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65374 Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Rules and Regulations 

SUMMARY: This rule changes the 

incoming quality control requirements 

under the administrative rules and 

regulations of the California almond 

marketing order (order). The order 

regulates the handling of almonds 

grown in California and is administered 

locally by the Almond Board of 

California (Board). These changes will 

help minimize the risk of aflatoxin in 

almonds by removing inedible kernels 

from human consumption. Inedible 

almonds are poor quality kernels or 

pieces of defective kernels that may be 

contaminated with aflatoxin. This 

action is intended to improve the 

overall quality of almonds placed into 

consumer channels. 

EFFECTIVE DATE: This final rule becomes 

effective on November 9, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Assistant Regional 

Manager, or Kurt Kimmel, Regional 

Manager, California Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, telephone: (559) 487–

5901, Fax: (559) 487–5906, or E-mail: 

Maureen.Pello@usda.gov, or 

Kurt.Kimmel@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; telephone: (202) 720–

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

981, as amended (7 CFR part 981), 

regulating the handling of almonds 

grown in California, hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule changes the incoming 

quality control requirements under the 

administrative rules and regulations of 

the order. These changes will help 

minimize the risk of aflatoxin in 

almonds by removing inedible almonds 

from human consumption. Inedible 

almonds are poor quality kernels or 

pieces of defective kernels that may be 

contaminated with aflatoxin. These 

changes are intended to improve the 

overall quality of almonds placed into 

consumer channels, and were 

recommended by the Board at a meeting 

on May 18, 2006. 

Section 981.42 of the order provides 

authority for a quality control program. 

Paragraph (a) of that section requires 

handlers to obtain incoming inspections 

on almonds received from growers to 

determine the percent of inedible 

kernels in each lot of any variety. Based 

on these inspections, handlers incur an 

inedible disposition obligation. They 

must satisfy their obligation by 

disposing of inedible almonds in outlets 

such as oil and animal feed. 

Section 981.442(a)(4) of the order’s 

administrative rules and regulations 

specifies that the weight of inedible 

kernels in excess of 1 percent of kernel 

weight shall constitute that handler’s 

disposition obligation. Handlers must 

satisfy the disposition obligation by 

delivering packer pickouts, kernels 

rejected in blanching, pieces of kernels, 

meal accumulated in manufacturing, or 

other material, to crushers, feed 

manufacturers, feeders, or dealers in nut 

wastes on record with the Board as 

accepted users of such product. 

Accepted users dispose of this material 

through non-human consumption 

outlets. Paragraph (a)(5) of § 981.442 

specifies further that at least 25 percent 

of a handler’s total annual disposition 

obligation be satisfied with inedible 

kernels as defined under § 981.408 

(hereinafter referred to as ‘‘true 

inedibles’’). Handlers with total annual 

inedible obligations of less than 1,000 

pounds are exempt from the 25 percent 

requirement. 

Board research has shown that 

aflatoxin in almonds is directly related 

to insect damage in inedible kernels. In 

order to help minimize the risk of 

aflatoxin in almonds, the Board 

recommended reducing the tolerance for 

inedible kernels from 1 to 0.50 percent, 

and increasing the percent of a handler’s 

total annual inedible obligation that 

must be true inedibles from 25 to 50 

percent. Such revisions are intended to 

improve the overall quality of almonds 

placed into consumer channels. 

All of the Board’s members supported 

the change regarding true inedibles, but 

three of the Board’s 10 members 

opposed the change to reduce the 

incoming tolerance for inedible kernels 

(the Board’s chairperson abstained). 

Those opposed pointed to the existing 2 

percent voluntary outgoing tolerance 

and expressed concern about additional 

costs that handlers may incur to 

separate out inedible kernels. The 

majority of Board members supported 

both changes. Paragraphs (a)(4) and 

(a)(5) of § 981.442 are revised 

accordingly. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 6,000 

producers of almonds in the production 

area and approximately 115 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (13 CFR 

121.201) as those having annual receipts 

of less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $6,500,000. 

Data for the most recently completed 

crop year indicate that about 52 percent 

of the handlers shipped under 

$6,500,000 worth of almonds. Dividing 

average almond crop value for 2003–

2005 reported by the National 


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Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Rules and Regulations 65375 

Agricultural Statistics Service ($2.171 

billion) by the number of producers 

(6,000) yields an average annual 

producer revenue estimate of about 

$362,000. Based on the foregoing, about 

half of the handlers and a majority of 

almond producers may be classified as 

small entities. 

This rule revises paragraphs (a)(4) and 

(a)(5) of § 981.442 of the order’s 

administrative rules and regulations 

regarding inedible almonds. These 

changes will help minimize the risk of 

aflatoxin in almonds by removing 

inedible kernels from human 

consumption. Inedible almonds are poor 

quality kernels or pieces of defective 

kernels that may be contaminated with 

aflatoxin. Specifically, this action 

reduces the tolerance for inedible 

kernels in each variety of almonds 

received by a handler from 1 to 0.50 

percent, and increases the percent of a 

handler’s annual inedible obligation 

that must be satisfied with dispositions 

containing inedible almonds from 25 to 

50 percent. Authority for these changes 

is provided in § 981.42(a) of the order. 

Regarding the impact of this action on 

affected entities, this action is intended 

to improve the overall quality of 

almonds placed into consumer channels 

and therefore should be beneficial to the 

industry. In addition, this rule is not 

expected to change handler inspection 

costs. Handlers must currently have an 

incoming inspection done on each lot of 

almonds received to determine the 

percent of inedible kernels. 

Additionally, inedible almond 

dispositions must be inspected to 

determine the percent of inedible 

kernels in such dispositions. Such 

inspections are performed by the 

inspection agency, which means the 

Federal-State Inspection Service. The 

inspection agency charges a fee of $40 

per hour, plus $0.75 per ton, with a 

minimum total fee of $55, to perform an 

inedible disposition inspection. 

The Board considered various 

alternatives and options before making 

its recommendation on inedible 

almonds. It was decided that a 0.50 

percent tolerance was appropriate rather 

than 0 percent. As previously stated, 

Board members opposed pointed to the 

existing 2 percent voluntary outgoing 

tolerance and expressed concern about 

additional costs that handlers may incur 

to separate out inedible kernels. 

Ultimately, the majority of Board 

members supported both changes. The 

Board’s Food Quality and Safety (FQS) 

Committee met again via teleconference 

on June 13, 2006, and concurred with 

the Board’s recommendation. 

This action imposes no additional 

reporting and recordkeeping burden on 

California almonds handlers. In 

accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the information collection 

requirements in this rule have been 

approved by the Office of Management 

and Budget (OMB) under OMB Control 

No. 0581–0178, Vegetable and Specialty 

Crops. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

The AMS is committed to complying 

with the E-Government Act, to promote 

the use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. There are U.S. 

Standards for Grades of Shelled 

Almonds (7 CFR 51.2105 through 

51.2131) and U.S. Standards for Grades 

of Almonds in the Shell (7 CFR 51.2075 

through 51.2091) issued under the 

Agricultural Marketing Act of 1946 (7 

U.S.C. 1621 through 1627). However, 

these standards are voluntary for the 

almond industry. 

Additionally, the meetings were 

widely publicized throughout the 

California almond industry and all 

interested persons were invited to 

attend the meetings and participate in 

deliberations on all issues. Like all 

Board meetings, the task force meetings 

on March 23 and April 26, 2006, the 

FQS Committee meetings on April 11, 

May 8, and June 13, 2006, and the Board 

meeting on May 18, 2006, were public 

meetings and all entities, both large and 

small, were able to express views on 

this issue. 

A proposed rule concerning this 

action was published in the Federal 

Register on August 16, 2006 (71 FR 

47152). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all almond handlers. Finally, the 

proposal was made available through 

the Internet by USDA and the Office of 

the Federal Register. A 7-day comment 

period ending August 23, 2006, was 

provided for interested persons to 

respond to the proposal. Five comments 

were received from industry handlers 

opposed to the proposed reduced 

tolerance for inedible kernels from 1 to 

0.50 percent. All the points raised in 

these five comments were previously 

discussed by the almond industry at the 

meetings cited earlier in this rule. 

Two of the commenters believe that 

reducing the incoming tolerance for 

inedible kernels will not remove 

additional inedible almonds from the 

market. They pointed to the existing 

voluntary outgoing tolerances for 

seriously damaged kernels in the U.S. 

Standards for Grades of Shelled 

Almonds (1 percent tolerance for U.S. 

Fancy and 2 percent tolerance for U.S. 

Select Sheller run). One commenter also 

pointed to the Board’s voluntary 

aflatoxin sampling plan that 

recommends that loads of almonds with 

over 2 percent serious damage be tested 

for aflatoxin. The commenters contend 

that reducing the incoming tolerance 

will not cause handlers to ship almonds 

at a lower outgoing tolerance into the 

market. 

We disagree with these comments. 

Reducing the incoming tolerance for 

inedible kernels will remove more 

inedible almonds from channels of 

commerce. Let us assume that the 

annual almond production is 1 billion 

pounds, of which 3 percent or 30 

million pounds (.03 × 1 billion pounds) 

are inedible. The current inedible 

program provides for a 1 percent 

tolerance, or 10 million pounds (.01 × 1 

billion pounds) of almonds that can be 

inedible and sold into normal market 

channels. Thus, 20 million pounds (.02 

× 1 billion pounds) must be disposed of 

into specified outlets for inedible 

almonds. Of the 20 million pounds, 

only 25 percent, or 5 million pounds, 

must be true inedibles, and the 

remaining 15 million pounds can be 

edible, inedible, or meal. 

In comparison, the revised inedible 

program provides for a tolerance of 0.50 

percent, or 5 million pounds (.005 × 1 

billion pounds) of almonds that can be 

inedible and sold into normal market 

channels. Thus, 25 million pounds (.025 

× 1 billion pounds) must be disposed of 

into specified outlets for inedible 

almonds. Of the 25 million pounds, 50 

percent, or 12.5 million pounds, must 

be true inedibles, and the remaining 

12.5 million pounds can be edible, 

inedible, or meal. 

In summary, a total of 5 million 

pounds of true inedible almonds are 

removed from the market annually 

under the current program, and 12.5 

million pounds of almonds will be 

removed annually under the revised 

program. Thus, the revised program will 

remove an additional 7.5 million 

pounds of inedible almonds from the 

market. 

A commenter also stated that 

reducing the incoming tolerance from 1 

to 0.50 percent may provide an unfair 

advantage for larger processors that have 

blanching facilities. We disagree. The 

process of blanching involves scalding 

the almonds with hot water to remove 

the skins, and then running the almonds 


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65376 Federal Register / Vol. 71, No. 216 / Wednesday, November 8, 2006 / Rules and Regulations 

through a series of rollers to remove any 

remaining skin and smooth the almond 

surface. Handlers with blanching 

equipment may clean up inedible 

almonds for market. However, 

increasing the percent of a handler’s 

total annual obligation that must be true 

inedible from 25 to 50 percent will 

reduce the amount of inedible almonds 

that are available to be cleaned up with 

blanching equipment. Additionally, the 

revised tolerances apply to all handlers 

throughout the industry, regardless of 

size or processing capabilities. 

Another commenter expressed 

concern that the reduced incoming 

tolerance is only being applied to the 

California almond industry, and that 

other producing countries like Spain 

and Australia would not be impacted by 

the change. The commenter added that 

the real concern to the California 

industry is aflatoxin, and suggested that 

the industry focus more on testing 

almonds prior to shipment rather than 

tightening up the inedible almond 

program under the order. 

The comment correctly points out that 

the revised tolerances are applied under 

the California almond marketing order, 

and are only applicable to domestic 

California production. However, 

concerning the issue of aflatoxin, a 

number of initiatives have been 

recommended by the Board. For 

example, the Board has endorsed a 

voluntary aflatoxin sampling plan that 

recommends that loads of almonds with 

over 2 percent serious damage be tested 

for aflatoxin. Additionally, Board 

research has shown that aflatoxin in 

almonds is directly related to insect 

damage in inedible kernels. In order to 

help minimize the risk of aflatoxin, the 

Board recommended reducing the 

tolerance for inedible kernels from 1 to 

0.50 percent, and increasing the percent 

of a handler’s total annual inedible 

obligation that must be true inedibles 

from 25 to 50 percent. This rule 

implements the Board’s 

recommendation. 

Two commenters expressed concern 

that this issue was not fully deliberated 

by the Board and/or its committees. 

However, the Board formed a task force 

to address the industry’s concerns 

regarding aflatoxin. The task force met 

on March 23 and April 26, 2006, and 

recommended reducing the incoming 

tolerance from 1 to 0 percent, and 

increasing the percent of a handler’s 

total annual inedible obligation that 

must be true inedibles from 25 to 50 

percent. The FQS Committee reviewed 

the task force’s proposal on April 11 and 

again on May 8, 2006. After much 

discussion, the FQS Committee reached 

a compromise and recommended that 

the incoming tolerance be reduced from 

1 to 0.50 percent. The FQS Committee 

concurred with the proposal regarding 

true inedibles. The Board considered 

the issue on May 18, 2006. Ultimately, 

the majority of Board members 

concurred with the FQS Committee’s 

proposal. The FQS Committee met again 

via teleconference on June 13, 2006, 

revisited the issue, and reaffirmed its 

previous recommendation that was 

ultimately approved by the Board and 

submitted to USDA. Thus, the issue was 

fully deliberated at several meetings, 

and interested persons had ample 

opportunity to express their views and 

participate in the discussions. 

Accordingly, no changes will be made 

to the rule as proposed, based on the 

comments received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Board and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because the 2006–07 crop year began on 

August 1, 2006, and handlers are 

disposing of inedible almonds. These 

changes should be in effect for as much 

of the crop year as possible. Handlers 

are aware of this action which was 

recommended at a public meeting. 

Additionally, a 7-day comment period 

was provided for in the proposed rule. 

List of Subjects in 7 CFR Part 981 

Almonds, Marketing agreements, 

Nuts, Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 981 is amended as 

follows: 

PART 981—ALMONDS GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 981 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 981.442 is amended by 

revising the first sentence of paragraph 

(a)(4)(i) and the eleventh sentence in 

paragraph (a)(5) to read as follows: 

§ 981.442 Quality control. 

(a) * * * 

(4) Disposition obligation. (i) The 

weight of inedible kernels in excess of 

0.50 percent of kernel weight reported 

to the Board of any variety received by 

a handler shall constitute that handler’s 

disposition obligation. * * * 

* * * * * 

(5) Meeting the disposition obligation. 

* * * At least 50 percent of a 

handler’s total crop year inedible 

disposition obligation shall be satisfied 

with dispositions consisting of inedible 

kernels as defined in § 981.408: 

Provided, That this 50 percent 

requirement shall not apply to handlers 

with total annual obligations of less 

than 1,000 pounds. * * * 

* * * * * 

Dated: November 3, 2006. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 06–9133 Filed 11–3–06; 4:34 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

10 CFR Part 626 

RIN 1901–AB16 

Procedures for the Acquisition of 

Petroleum for the Strategic Petroleum 

Reserve 

AGENCY: Office of Petroleum Reserves, 

Department of Energy. 

ACTION: Final rule. 

SUMMARY: The Energy Policy Act of 2005 

(EPAct 2005) directs the Secretary of 

Energy (Secretary) to develop 

procedures for the acquisition of 

petroleum for the Strategic Petroleum 

Reserve (SPR) in appropriate 

circumstances. On April 24, 2006, the 

Department of Energy (DOE) published 

proposed procedures in the Federal 

Register for public comment. Today 

DOE is issuing the final rule governing 

procedures for the acquisition of 

petroleum for the SPR, including 

acquisition by direct purchase and 

transfer of royalty oil from the 

Department of the Interior (DOI). The 

final rule also has provisions concerning 

the deferral of scheduled deliveries of 

petroleum for the SPR. With the 

exception of some minor clarification 

changes and definitional and editorial 

adjustments, these final procedures are 

substantially the same as those 

proposed. 


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