[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Rules and Regulations]
[Pages 15669-15673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7525]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 777

[Docket No. 930653-4299]
RIN 0694-AA70


Exports of Certain California Crude Oil

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) is amending the 
short supply provisions of the Export Administration Regulations (EAR) 
by revising the restrictions on exports of crude oil produced in the 
lower 48 states to allow exports, under individual validated licenses, 
of up to 25,000 barrels per day (MB/D) of California heavy crude oil 
having a gravity of 20.0 degrees API or lower.
    This final rule revises the licensing requirements and procedures 
that apply to exports of California heavy crude oil by removing a 
number of significant restrictions, e.g., the prohibition against 
transporting crude oil by pipeline over rights-of-way granted pursuant 
to the Mineral Leasing Act of 1920 and the requirement that any export 
of crude oil must be offset by importing an equal or greater volume of 
crude oil of equal or higher quality.
    In order to minimize procedural delays in licensing exports of 
California heavy crude oil, BXA's Office of Chemical and Biological 
Controls and Treaty Compliance (CBTC) will issue licenses on a first-
come, first-served, basis. Based on comments received on the March 24, 
1994, proposed rule, this rule allows CBTC to issue licenses contingent 
upon the exporter submitting, prior to any export under a license, 
documentation showing that the exporter has title to the oil (or a 
contract to purchase the oil) and a contract to export the oil. This 
change in documentation requirements should provide exporters with 
greater flexibility in completing small cargo transactions on the spot 
market. Such transactions are likely to account for the bulk of 
California heavy crude oil exports.

EFFECTIVE DATE: March 27, 1995.

[[Page 15670]] FOR FURTHER INFORMATION CONTACT: Bernard Kritzer, Office 
of Chemical and Biological Controls and Treaty Compliance (CBTC), 
Bureau of Export Administration, Telephone: (202) 482-0894.

SUPPLEMENTARY INFORMATION:

Background

    Section 777.6(d)(1) of the Export Administration Regulations (EAR) 
restricts exports of crude petroleum, including reconstituted crude 
petroleum, tar sands, and crude shale oil. This rule amends 
Sec. 777.6(d)(1) to permit exports of certain California crude oil 
pursuant to a Presidential memorandum of October 22, 1992,<SUP>1 in 
which the President determined that exports of California heavy crude 
oil having a gravity of 20.0 degrees API or lower were in the national 
interest. Prior to authorizing the export of this California crude oil, 
the President made certain findings and determinations under the 
following statutes:

    \1\The President's memorandum of October 22, 1992, was published 
in the Federal Register Vol. 57, No. 226, November 23, 1992, p. 
54895.
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    (1) Section 103 of the Energy Policy and Conservation Act (42 
U.S.C. 6212(b));
    (2) Section 28(u) of the Mineral Leasing Act, as amended by the 
Trans-Alaska Pipeline Authorization Act of 1973 (30 U.S.C. 185(u)); and
    (3) The provisions of the Export Administration Act of 1979 (EAA), 
as amended, to the extent permitted with law, continued in effect after 
its August 20, 1994, expiration through the President's invocation of 
the International Emergency Economic Powers Act in Executive Order 
12924 of August 19, 1994.
    The President made findings that exports of California heavy crude 
oil having a gravity of 20.0 degrees API or lower:
    (1) Are in accordance with the provisions of the Export 
Administration Act of 1979, as amended;
    (2) Are consistent with the purpose of the Energy Policy and 
Conservation Act; and
    (3) Will not diminish the total quality or quantity of petroleum 
available to the United States.
    Based on the above findings, the President authorized the Secretary 
of Commerce to modify the existing restrictions on the export of crude 
oil produced in the lower 48 states to allow initially the export of an 
average quantity of 25 MB/D of California heavy crude oil having a 
gravity of 20.0 degrees API or lower.
    The President also directed the Secretary of Energy, in 
consultation with the Secretaries of Commerce, the Interior, 
Transportation, and other interested agencies, to conduct periodic 
reviews of such exports in light of then-existing market circumstances. 
In addition, the President authorized the Secretary of Energy to 
recommend to the Secretary of Commerce, based on the results of these 
periodic reviews, what, if any, adjustments should be made in the 
quantity of California heavy crude oil that may be authorized for 
export (i.e., adjustments to the currently authorized level of 25 MB/
D).

Publication of Proposed Rule (March 24, 1994)

    In response to the President's decision, the Department published a 
proposed rule and request for public comments in the Federal Register 
on March 24, 1994 (59 FR 13900). The proposed rule would have allowed 
the CBTC to authorize exports of up to 25 MB/D of California heavy 
crude oil having a gravity of 20.0 degrees API or lower. The March 24 
rule proposed that CBTC would grant export licenses on a first-come, 
first-served, basis with the quantity authorized on any one license not 
to exceed 25 percent (2.28 million barrels) of the annual authorized 
volume (i.e., 9.125 million barrels). The proposed rule would have 
allowed CBTC to approve only one application per month from each 
company and its affiliates, as long as applications from non-affiliated 
companies were still pending. In addition, the validity period for 
licenses would have been 90 days; and CBTC would have returned to the 
available authorized export quota any volumes that had been licensed 
but not exported during the 90-day validity period, except that no 
unshipped volumes would have been carried over more than 30 days into a 
new calendar year. Any unlicensed portion of the quota would have been 
carried forward by CBTC from month to month, except that no volumes 
would have been carried forward more than 30 days into a new calendar 
year. The proposed rule would have allowed exporters a 10-percent 
tolerance on the unshipped balance based on the number of barrels 
authorized on the license, as well as a 25-percent tolerance on the 
total dollar value of the license.
    Applicants would have been subject to a number of documentation 
requirements under the proposed rule: (1) Documentation showing that 
the applicant has or will acquire title to the quantity of barrels 
stated in the application; (2) a contract to export the quantity of 
barrels stated in the application; (3) documentation showing that the 
crude oil has a gravity of 20.0 degrees API or lower and was produced 
within the state of California; and (4) an affidavit that the crude oil 
was not produced or derived from a U.S. Naval Petroleum Reserve and was 
not produced from the submerged lands of the U.S. Outer Continental 
Shelf.
    Finally, the proposed rule solicited public comments on three 
possible license allocation schemes: (1) The first-come, first-served 
licensing scheme described in the proposed rule; (2) a prorationing 
scheme similar to the one used for exports of Alaskan North Slope crude 
oil to Canada; and (3) a licensing scheme employing pre-qualification 
with export nominations.

Public Comments on the Proposed Rule

    The Bureau of Export Administration (BXA) received seven comments 
on the March 24, 1994, proposed rule. One commenter opposed allowing 
exports of up to 25 MB/D of California heavy crude oil, asserting that 
this change would provide little or no economic benefits for California 
crude oil producers and would likely result in price increases in the 
domestic fuel market. Two commenters had no objections to allowing the 
export of an average of 25 MB/D of California heavy crude oil, but 
urged the Department not to increase this level without a formal public 
rulemaking.
    One commenter felt that the 25 MB/D average was quite small 
relative to the potential marketable oil and suggested that state and 
local governmental entities should be exempted from this limit. This 
commenter expressed no preference concerning the method by which 
licenses would be allocated and noted that the rule probably would not 
have a significant impact on inland producers because many of them 
lacked access to heated oil pipelines to transport crude oil to export 
terminals.
    Two commenters urged BXA to drop the proposed requirement that 
applicants provide documentation showing the existence of a contract to 
export California heavy crude oil, because this requirement would make 
it difficult for companies to complete small cargo transactions on the 
spot market. One alternative that was suggested would permit applicants 
to submit one application per quarter, for cargoes not exceeding 
500,000 barrels, to be supported by nonbinding letters of intent, 
instead of a signed contract.
    Several alternative licensing regimes were suggested. One commenter 
suggested two alternative regimes. Under the first alternative, 
applicants would be allowed to identify potential [[Page 15671]] supply 
sources and end-users, subject to approval by BXA, and would then be 
allowed to make shipments involving these approved parties, providing 
proof of compliance and performance to BXA after each shipment. The 
second alternative would involve the issuance of two types of licenses: 
(1) short-term (30- to 90-day) licenses not exceeding 500,000 barrels, 
with unused portions returned to the available quota, and (2) longer 
term (6- to 12-month) licenses of 1 to 2 million barrels, with up to 
half the amount returned to the available quota if no shipment is made 
within 3 months. This commenter also urged that applicants be allowed 
to apply for licenses several months in advance of the effective date. 
Finally, the commenter suggested that licensees who fail to make any 
shipments under their licenses be given a lower priority when filing 
applications for subsequent licenses.
    Another commenter suggested an alternative licensing regime that 
would involve a prorationing mechanism with a validity period of not 
less than 1 year and a minimum quantity of 500,000 barrels. This 
commenter also favored eliminating the one application per month 
limitation and removing the 25 MB/D cap on exports.
    Finally, one commenter urged the Commerce Department to work toward 
eliminating export restrictions on California heavy crude oil produced 
from the submerged lands of the U.S. Outer Continental Shelf and, as 
part of this action, increase the proposed gravity limit from 20 
degrees API to 22 degrees API.

Changes Made by This Final Rule

    The Department reviewed the public comments on the March 24, 1994, 
proposed rule and decided to retain, for the most part, the licensing 
regime contained in that rule (i.e., first-come, first served). 
However, the Department recognizes that a number of concerns were 
raised in the public comments on the proposed rule and, where 
practical, has made changes in this final rule to address these 
concerns.
    This final rule makes certain significant changes in the 
documentation requirements for license applications to export 
California heavy crude oil. These changes are based on the Department's 
review of the public comments on the proposed rule, its consultations 
with industry representatives familiar with the California heavy crude 
oil export market, and its review of certain in-house data on actual 
shipments of California heavy crude oil under validated export 
licenses. The documentation requirements in the proposed rule specified 
that each application must be accompanied by: (1) a contract or bill of 
sale, showing title to the crude oil, and (2) a contract to export the 
crude oil. Several commenters felt that this requirement would make it 
difficult for companies to complete small cargo transactions on the 
spot market, noting that the timeframe for completing small cargo 
transactions can be very short and that a limited window of opportunity 
could be missed if proof of a contract had to be obtained before an 
export license could be issued. These commenters also noted that the 
negative effects of the prior proof of contract requirement could be 
quite significant because the bulk of California heavy crude oil 
exports are spot market transactions.
    Because of the unique characteristics of the California heavy crude 
oil export market (most sales consist of small spot market 
transactions), the Department decided to modify the proof of contract 
requirement. This final rule requires that each application be 
accompanied by documentary evidence of an order as described in 
Sec. 772.6(a)(2), such as a letter of intent. Although this final rule 
does not require proof of a contract at the time an application is 
submitted, all licenses to export California heavy crude oil will be 
subject to the condition that the licensee submit to the CBTC, prior to 
any export under the license, documentation proving that the licensee 
has: (1) title to the quantity of barrels stated in the application and 
(2) a contract to export the quantity stated on the application. This 
change will provide applicants with greater flexibility to engage in 
spot market transactions. Applicants will be able to obtain export 
licenses more quickly, since they will not have to wait until they have 
a firm contract to submit their applications. They also will have 
additional time in which to obtain proof of a contract, since they are 
only required to submit such proof to CBTC at some point prior to the 
time of export.
    To encourage applicants to apply for a validated license only when 
they have a real opportunity to make an export sale, this final rule 
requires CBTC to consider the following factors when determining what 
action should be taken on individual applications:
    (1) The number of validated licenses to export California heavy 
crude oil that have been issued to the applicant or its affiliates 
during the current calendar year;
    (2) The number of applications pending in CBTC that have been 
submitted by applicants who have not been issued validated licenses to 
export California heavy crude oil during the current calendar year; 
and,
    (3) The percentage of California heavy crude oil authorized under 
export licenses previously issued to the applicant that has actually 
been exported by the applicant.
    Another significant change in documentation requirements involves 
the affidavit requirement contained in Sec. 777.6(d)(1)(xii) of the 
proposed rule. This requirement has been replaced in the final rule by 
a certification requirement, i.e., the applicant is required to certify 
that: (1) the commodity has a gravity of 20.0 degrees API or lower; (2) 
the commodity is produced in the state of California; (3) the commodity 
is not produced or derived from a U.S. Naval Petroleum Reserve; and (4) 
the commodity is not produced from the submerged lands of the U.S. 
Outer Continental Shelf.
    The Department decided to retain the first-come, first-served, 
mechanism that was proposed in the March 24, 1994, rule because it 
provides a greater degree of flexibility and administrative simplicity 
than the prorationing and pre-qualification licensing alternatives that 
also were described in the proposed rule. Under the first-come, first-
served licensing regime adopted in this final rule, CBTC will accept 
only one application per month from each company and its affiliates 
(regardless of whether or not applications from non-affiliated 
companies are pending) for a total quantity not to exceed 25 percent 
(2.28 million barrels) of the annual (9.125 million barrels) authorized 
volume of California heavy crude oil. CBTC will issue licenses in the 
order in which it receives applications, with all licenses having the 
same validity period, i.e., 90 calendar days. The Department considered 
establishing a longer validity period, but felt that the 90-day term 
provided the best compromise between the needs of spot market 
applicants and applicants anticipating larger volume transactions 
covering a longer term. Since licensees are permitted to wait until 
immediately prior to making shipments under their licenses before 
providing CBTC with documentation showing proof of title and a contract 
to export, the Department felt that the 90-day license term was 
necessary to ensure that no applicant would tie up large volumes of 
California heavy crude oil for a significant period of time (e.g., for 
six months to a year), without having received a firm contract offer, 
thereby denying commercial opportunities to other applicants.
    This final rule also implements the provisions of the proposed rule 
concerning: (1) volumes that have not [[Page 15672]] been licensed for 
export and (2) licensed volumes that have not been exported prior to 
the expiration date of the license. CBTC will carry forward any portion 
of the 25,000 barrel per day quota that has not been licensed and will 
return to the available authorized quota any portion that has been 
licensed, but not shipped, within the 90-day validity period of the 
license, except that these volumes will not be carried over more than 
30 days into a new calendar year. This approach will ensure that the 
total volume available for export in any one year does not 
significantly exceed the annual (9.125 million barrels) authorized 
volume of California heavy crude oil. If market conditions dictate that 
an adjustment should be made in the annual authorized volume, the 
Secretary of Energy is authorized to recommend that the Secretary of 
Commerce make the necessary adjustment.
    Consistent with the March 24, 1994, proposed rule, this final rule 
allows licensees to combine authorized quantities into one or more 
shipments, provided that the validity period of none of the affected 
licenses has expired. In addition, this rule retains the shipping 
tolerances set forth in the proposed rule, i.e., a 10-percent tolerance 
on the unshipped balance (based on the number of barrels authorized on 
the license) and a 25-percent tolerance on the total dollar value of 
the license. This final rule also prohibits licensees from transferring 
their licenses to other parties without prior written authorization 
from CBTC, in accordance with Sec. 772.13.
    The Department considered the effect on the environment of exports 
of California heavy crude oil in its 1989 ``Report to Congress on U.S. 
Crude Oil Exports'' which recommended the liberalization of export 
restrictions resulting in the 1992 Presidential determination. The 
Department also conducted an assessment in connection with the approval 
of an export license application during 1991. In both cases, the 
Department determined that the export of California heavy crude would 
not have a significant impact on the environment.
    The Department completed an assessment of the environmental affects 
of the export of California crude oil in connection with the present 
rulemaking. The assessment confirmed the previous findings that the 
export would not have a significant impact on the environment. On 
October 12, 1994, the National Oceanic and Atmospheric Administration 
(NOAA) approved the assessment, including the conclusion that exports 
of California heavy crude oil will not have a significant impact on the 
human environment in accordance with the Council on Environmental 
Quality's regulations implementing the National Environmental 
Protection Act. The environmental assessment is available for public 
inspection in Room H-4513.

Rulemaking Requirements

    1. This rule was determined to be significant for the purposes of 
Executive Order 12866.
    2. This rule contains a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et 
seq.). The public reporting burden for this collection of information 
is estimated to average 12 hours per response, including the time 
required for reviewing instructions, searching and maintaining the 
necessary data, and completing and reviewing the collection of 
information. Send comments regarding this burden to: Bernard Kritzer, 
Manager, Short Supply Program, Office of Chemical and Biological 
Controls and Treaty Compliance, Room 2096, U.S. Department of Commerce, 
14th Street and Pennsylvania Avenue, N.W., Washington, DC 20230; and to 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget, Washington, D.C. 20503 (ATTN: Paperwork Reduction Project--
0694-0027).
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. A notice of proposed rulemaking and an opportunity for public 
comment were not required for this rulemaking by section 13(a) of the 
Export Administration Act of 1979, as amended (50 U.S.C.A. app. 2401-
2420 (1991, Supp. 1993), and Pub. L. No. 103-277, July 5, 1994). 
Although the Export Administration Act expired on August 20, 1994, the 
President invoked the International Emergency Economic Powers Act and 
determined that, to the extent permitted by law, the provisions of the 
Export Administration Act shall be carried out under Executive Order 
12924 of August 19, 1994, so as to continue in full force and effect 
and amend, as necessary, the export control system heretofore 
maintained by the Export Administration Regulations and Act. As such, 
under section 3(a) of the Regulatory Flexibility Act (5 U.S.C. 603(a) 
and 604(a)) no initial or final Regulatory Flexibility Analysis has 
been or will be prepared.

List of Subjects in 15 CFR Part 777

    Administrative practice and procedure, Exports, Forest and forest 
products, Petroleum, Reporting and recordkeeping requirements.

    Accordingly, Part 777 of the Export Administration Regulations (15 
CFR Parts 730-799) is amended as follows:
    1. The authority citation for 15 CFR Part 777 continues to read as 
follows:

    Authority: Pub. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et seq.), 
as amended; sec. 101, Pub. L. 93-153, 87 Stat. 576 (30 U.S.C. 185), 
as amended; sec. 103, Pub. L. 94-163, 89 Stat. 877 (42 U.S.C. 6212), 
as amended; secs. 201 and 201(11)(e), Pub. L. 94-258, 90 Stat. 309 
(10 U.S.C. 7420 and 7430(e)), as amended; Pub. L. 95-223, 91 Stat 
1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 92 Stat. 120 (22 
U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, Pub. L. 95-372, 
92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 Stat. 503 (50 
U.S.C. App. 2401 et seq.), as amended; E.O. 11912 of April 13, 1976 
(41 FR 15825, April 15, 1976); E.O. 12002 of July 7, 1977 (42 FR 
35623, July 7, 1977), as amended; E.O. 12058 of May 11, 1978 (43 FR 
20947, May 16, 1978); E.O. 12214 of May 2, 1980 (45 FR 29783, May 6, 
1980); E.O. 12730 of September 30, 1990 (55 FR 40373, October 2, 
1990), as continued by Notice of September 25, 1992 (57 FR 44649, 
September 28, 1992); E.O. 12735 of November 16, 1990 (55 FR 48587, 
November 20, 1990), as continued by Notice of November 12, 1993 (58 
FR 60361, November 15, 1993), and E.O. 12924 of August 19, 1994 (59 
FR 43437, August 23, 1994).

PART 777--[AMENDED]

    2. Section 777.6 is amended by adding a new paragraph (d)(1)(xii) 
and a new paragraph (k) to read as follows:


Sec. 777.6   Petroleum and petroleum products.

* * * * *
    (d) * * *
    (1) * * *
    (xii) Exports of certain California crude oil. California heavy 
crude oil may be exported under the following conditions:
    (A) The applicant certifies that:
    (1) The commodity has a gravity of 20.0 degrees API or lower;
    (2) The commodity is produced in the state of California, including 
its submerged state lands;
    (3) The commodity is not produced or derived from a U.S. Naval 
Petroleum Reserve;
    (4) The commodity is not produced from the submerged lands of the 
U.S. Outer Continental Shelf;
    (B) All aspects of the transaction comply with the provisions of 
paragraph (k) of this section.
* * * * *
    (k) Exports of certain California crude oil pursuant to 
Sec. 777.6(d)(1)(xii). The [[Page 15673]] export of California heavy 
crude oil having a gravity of 20.0 degrees API or lower, at an average 
volume not to exceed 25 MB/D, will be authorized as follows.
    (1) Applicants must submit their applications on Form BXA-622P to 
the following address: Office of Exporter Services, ATTN: Short Supply 
Program--Petroleum, Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
    (2) The quantity stated on each application must be the total 
number of barrels proposed to be exported under the license--not a per-
day rate. This quantity must not exceed 25 percent of the annual 
authorized export quota. Potential applicants may inquire of BXA as to 
the amount of the annual authorized export quota available.
    (3) Each application shall be accompanied by a certification by the 
applicant that the California heavy crude oil:
    (i) Has a gravity of 20.0 degrees API or lower;
    (ii) Was produced within the state of California, including its 
submerged state lands;
    (iii) Was not produced or derived from a U.S. Naval Petroleum 
Reserve; and
    (iv) Was not produced from submerged lands of the U.S. Outer 
Continental Shelf.
    (4) Each license application must be based on an order, as defined 
by Sec. 772.6(a) of this subchapter and must be accompanied by 
documentary evidence of an order as described in Sec. 772.6(a)(2), 
e.g., a letter of intent.
    (5) The Office of Chemical and Biological Controls and Treaty 
Compliance (CBTC) will adhere to the following procedures for licensing 
exports of California heavy crude oil:
    (i) CBTC will issue individual validated licenses for approved 
applications in the order in which the applications are received (date-
time stamped upon receipt by CBTC), with the total quantity authorized 
for any one license not to exceed 25 percent of the annual authorized 
volume of California heavy crude oil.
    (ii) CBTC will approve only one application per month for each 
company and its affiliates.
    (iii) CBTC will consider the following factors (among others) when 
determining what action should be taken on individual license 
applications:
    (A) The number of validated licenses to export California heavy 
crude oil that have been issued to the applicant or its affiliates 
during the then-current calendar year;
    (B) The number of applications pending in CBTC that have been 
submitted by applicants who have not previously been issued validated 
licenses under this section to export California heavy crude oil during 
the then-current calendar year; and,
    (C) The percentage of the total amount of California heavy crude 
oil authorized under other export licenses previously issued to the 
applicant pursuant to this section that has actually been exported by 
the applicant.
    (iv) CBTC will approve applications contingent upon the licensee 
providing documentation meeting the requirements of both paragraphs 
(k)(5)(iv) (A) and (B) of this section prior to any export under the 
license:
    (A) Documentation showing that the applicant has or will acquire 
title to the quantity of barrels stated in the application. Such 
documentation shall be either:
    (1) An accepted contract or bill of sale for the quantity of 
barrels stated in the application; or
    (2) A contract to purchase the quantity of barrels stated in the 
application, which may be contingent upon issuance of an export license 
to the applicant.
    (B) Documentation showing that the applicant has a contract to 
export the quantity of barrels stated in the application. The contract 
which may be contingent upon issuance of the export license to the 
applicant.
    (v) CBTC will carry forward any portion of the 25 MB/D quota that 
has not been licensed, except that no unallocated portions will be 
carried forward more than 90 days into a new calendar year. 
Applications to export against any carry forward must be filed with 
CBTC by January 15 of the carry-forward year.
    (vi) CBTC will return to the available authorized export quota any 
portion of the 25 MB/D per day quota that has been licensed, but not 
shipped, during the 90-day validity period of the license.
    (vii) CBTC will not carry over to the next calendar year pending 
applications from the previous year.
    (6) License holders:
    (i) Have 90 calendar days from the date the license was issued to 
export the quantity of California heavy crude oil authorized on the 
license. Within 30 days of any export under the license, the exporter 
must provide CBTC with a certified statement confirming the date and 
quantity of California heavy crude oil exported.
    (ii) Must submit to CBTC, prior to any export under the license, 
the documentation required by paragraph (k)(5)(iv) of this section.
    (iii) May combine authorized quantities into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (iv) Are prohibited from transferring the license to another party 
without prior written authorization from CBTC in accordance with 
Sec. 772.13 of this subchapter.
    (7) CBTC will allow, pursuant to Sec. 786.7(c) of this subchapter, 
a 10-percent tolerance on the unshipped balance based upon the volume 
of barrels it has authorized. CBTC will allow a 25-percent shipping 
tolerance on the total dollar value of the license.

    Dated: March 22, 1995.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 95-7525 Filed 3-24-95; 8:45 am]
BILLING CODE 3510-DT-P