No C 125/14 Official  Journal  of the European  Communities 16.10.74 
Opinion  on the  proposal  for  a Council  Directive  obliging  the  Member  States  of the 
EEC  to maintain  minimum  stocks  of fuels 
The text  referred  to the Committee,  has been  published  in Official  Journal  of the European 
Communities  No  C 35 of 28 March  1974,  page  44. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 28 January  1974,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
122nd  plenary  session,  held  in Brussels  on 17 and 18 July  1974. 
The full  text  of the Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request,  dated  4 February  1974, 
from  the Council  of the  European  Communities  for 
an opinion  on the  proposal  for a Council  Directive 
obliging  the Member  States  of the EEC  to maintain 
minimum  stocks  of fuels; 
Having  regard  to  Article  198  of  the  Treaty 
establishing  the European  Economic  Community; 
Having  regard  to the  Decision  taken  by its Bureau 
on 26 February  1974  entrusting  the  Section  for 
Energy  and  Nuclear  Questions  with  the preparation 
of a report  and  an opinion  on this  subject; 
Having  regard  to the  Opinion  adopted  by  the 
Section  for  Energy  and  Nuclear  Questions  at its 
meeting  on 5 July  1974; 
Having  regard  to the  report  presented  by  the 
Rapporteur  during  the  section's  meeting  on 
5 July  1974; 
Having  regard  to the  discussions  at its  122nd 
plenary  session  on 17 and  18 July  1974,  sitting  of 
17 July; 
Whereas  security  of supplies  is an important  element 
of Community  energy  policy; Whereas  it is necessary  to this  end  to build  up 
appropriate  emergency  reserves  and  for  this  action 
to be coordinated  at Community  level; 
Whereas  the  stockpiling  of energy  supplies  involves 
considerable  investment,  as regards  both  the  value 
of the stocks  held  and  the permanent  installations; 
Whereas  on  20  December  1968  the  Council  of 
Ministers,  in order  to protect  the  Community  from 
external  supply  difficulties,  adopted  Directive  No 
68/414/EEC  imposing  an obligation  on the Member 
States  of the  EEC  to maintain  minimum  stocks  of 
petroleum  products  equivalent  to  65  days' 
consumption,  each  of the three  following  categories: 
(i) Motor  spirit, 
(ii) Gas  oil, diesel  oil and  kerosene, 
(iii) Fuel  oils; 
Whereas  the  above  Directive  specified  that  these 
stocks  could  be held  in certain  installations  including 
any of the following  locations: 
— on board  oil tankers  in port, 
— in ports  of discharge, 
— in tanks  at entry  to oil pipelines, 
16.10.74 Official  Journal  of the European  Communities No C 125/15 
— in refinery  tanks, 
— in storage  by  refineries  and  by  importing, 
storage,  or wholesale  distribution  firms, 
— in storage  by large-scale  consumers; 
Whereas  Council  Directive  No  72/425/EEC  of 
19 December  1972,  with  effect  from  1 January  1975, 
raised  the  required  minimum  level  of stocks  from 
65 days  to 90 days; 
Whereas  the  present  proposal  for  a Council 
Directive  now  aims  at protecting  electricity  pro-
duction  in the Community  from  all fuel  supply 
difficulties,  whether  of external  or internal  origin, 
by ensuring  that  power  stations  hold  in situ  stocks 
which  shall  be  sufficient  to ensure  foreseeable 
electricity  supplies  for a period  of 50 days; 
Whereas  the proposed  obligation  for stockpiling  at 
power  stations  applies  to both  coal  and oil, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a majority  with  4 votes  against  and 13 abstentions: 
1. GENERAL  COMMENTS 
1.1. Relationship  of the  proposal  to the  existing 
Directives 
1.1.1.  The  Committee  notes  that,  as far as oil is 
concerned,  the relationship  between  the text  of the 
proposal  and  the  existing  Directive  is unclear.  The 
text of the  proposal  is open  to two  conflicting 
interpretations: 
(i) the new  requirement  for  50 days'  stocks  at 
power  stations  must  be created  independently  of 
— and  therefore  in addition  to — the general 
requirement  for 90 days'  stocks; 
(ii) the 50 days'  stocks  at power  stations  may  be 
included  in the general  requirement  for 90 days' 
stocks. 
1.1.2.  The  Committee  requests  that  the text  of the 
proposal  be  amended  in order  to make  the 
position  clear  in the  sense  indicated  by  the 
Representative  of the Commission,  namely  that  the 
proposed  50 days'  obligation  is in addition  to the 
general  requirement  for 90 days'  stocks. 1.1.3.  On  a more  general  level,  the  Committee 
believes  that  all the  legal  instruments  related  to 
compulsory  stockpiling  in the  Community  are  in 
need  of a general  review  and rationalization. 
1.2. Clarification  of the level  of stocks  to be held 
1.2.1.  The  Committee  supports  the  objective  of 
safeguarding  electricity  supply  and  the  consequent 
need  to ensure  that  sufficient  stocks  are  held  at 
power  stations  to guarantee  continued  electricity 
production  for  a reasonable  period.  It therefore 
approves  the Commission's  proposal  that  this  period 
should  be 50 days. 
1.2.2.  Turning  to the question  of the level  of stocks 
of petroleum  products  to be held,  there  is, as already 
mentioned,  the  important  problem  to be resolved 
concerning  the  relationship  between  the  50 days' 
stocks  of petroleum  products  to be held  at power 
stations  and  the  general  90 days'  requirement  for 
petroleum  products. 
1.2.3.  The  Committee  believes  that  the  economic 
consequences  of an interruption  of fuel  supply  are 
so serious  as to justify  an additional  element  of fuel 
stockpiling  in the Community.  It therefore  considers 
that,  to the extent  that  the 50 days'  stocks  at power 
stations  envisaged  by the  proposed  Directive  are 
held in the form  of petroleum  products,  these  stocks 
should  be constituted  in addition  to any  element 
held under  the general  90 days'  requirement.  This 
would  be in conformity  with  the  intention  of the 
Commission  as described  by its Representatives. 
1.2.4.  It therefore  requests  the  Commission  to 
introduce  the  necessary  changes  to clarify  the 
proposal  in this sense. 
1.3. The  location  of stocks 
1.3.1.  Rigid  insistence  on stockpiling  at the  place 
of consumption  or  on  the  construction  of  a 
permanent  link  between  the site  of the  stocks  and 
the place  of consumption  may  involve  costs  which 
are excessive  in relation  to the  objective  in view 
and the  other  solutions.  The  Committee  believes 
that, in so far as public  means  of transport  can 
provide  a direct  connection,  their  use  may  bring 
economic  advantages,  without  significantly  reducing 
No. C 125/16 Official  Journal  of the European  Communities 16.10.  74 
security  of supply,  provided  that  one  defines  the 
storage  conditions  and  the  maximum  distance 
between  the  place  of storage  and  the  place  of 
consumption;  these  factors  being  reflected  in the 
transit  time  between  the  two  points.  The 
Commission  should  therefore  adopt  a flexible 
approach  towards  the use of public  transport. 
2. SPECIFIC  COMMENTS 
2.1. Article  1 
2.1.1.  In line  with  the  views  expressed  in the 
'General  Comments',  the  Committee,  believing  that 
a high  level  of stockpiling  is required  in the 
Community,  requests  the  inclusion  of the  following 
paragraph  at the end of Article  1: 
, 'Any  stocks  of petroleum  products  which  are 
constituted  under  the terms  of this  Directive  shall 
not form  part  of any  stocks  constituted  under 
the terms  of  Directive  No  68/414/EEC  (1), 
Decision  No  68/416/EEC  (2) and  Directive  No 
72/425/EEC  (3)'. 
2.2. Article  2 
2.2.1.  The  sole  aim  of the  draft  Directive  is to 
guarantee  security  of electricity  supplies  for 50 days. 
The guarantee  must  be  absolute  or  the  draft 
Directive  will  fail to achieve  its aim. 
2.2.2.  The  obligation  to hold  50 days'  stocks  is, 
however,  bound  to increase  the  capital  input  of 
electricity  producers  and  inflate  their  capital  costs 
(fuel  procurement  and  storage  costs,  etc.).  conse-
quently,  it would  be.  hardly  surprising  if electricity 
producers  endeavoured  to  avoid  making  this 
expenditure  by taking  advantage  of the  limitation 
of the  draft  Directive;  this  would  undermine  the 
50-day  system. 
2.2.3.  The  point  here  is that  the  draft  Directive 
does  not  prescribe  stockpiling  for  all sources  of 
primary  energy,  but  only  for  petroleum  products 
and coal  — lignite,  natural  gas  and  other  fuels  of 
organic  origin  beingunaffected. 
i1) OJ  No L 308,  23. 12. 1968,  p. 14. 
(2) OJ  No L 308,  23. 12. 1968,  p. 19. 
(3) OJ  No L 291,  28. 12. 1972,  p. 154. 2.2.4.  Consequently,  the  Committee  considers  that 
the obligation  should  be extended  to cover  all the 
energy  sources  used  to fire  thermal  power  stations, 
with the  exceptions  described  below  for  power 
stations  fired  by lignite  or natural  gas. 
2.2.5.  Lignite  has a much  lower  calorific  value  than 
coal,  and,  owing  to the  volume  involved,  is thus 
unsuited  to large-scale  storage  after  it has been  won. 
In addition,  lignite-fired  power  stations  are  usually 
located  at lignite  mines,  and  thus  lignite  beds  can 
be considered  to be 'stocks  held  in situ'  within  the 
meaning  of the 50-day  requirement. 
2.2.6.  Similar  stipulations  should  apply  to dual-fired 
power  stations  which  use  natural  gas,  since  this 
fuel is also  difficult  to store  at present.  Conversion 
of existing  stations  to dual-firing  should  be strongly 
encouraged.  As  a more  long-term  measure,  the 
Community  authorities  should  promote  research  and 
development  work  on the  storage  of natural  gas  at 
natural  subterranean  sites. 
2.2.7.  The  Community  should  also  examine  the 
possibility  of making  available  loans  at low  interest 
rates  to offset  the high  costs  entailed  in satisfying 
the new  stockpiling  requirement. 
2.2.8.  With  regard  to the leaving  out  of account  of 
the use  of public  highways  and  public  means  of 
transport  for connecting  the power  station  with  the 
place  of storage,  the  Committee  considers  that  this 
stipulation  is unjustified  in the  case  of coal-fired 
power  stations  which  are  not  located  near  a mine 
and are  normally  supplied  by rail  or by waterway. 
Generally  speaking,  this  exclusion  would  appear  to 
be too  radical,  since  the  draft  Directive  requires  a 
direct  link  between  the  place  of storage  and  the 
power  station  if the stocks  cannot  be held  in situ  at 
the power  station.  In many  instances,  this  general 
rule will  clearly  be inapplicable,  particularly  for 
reasons  of space  and  in any  case  it could  turn  out  to 
be more  expensive  than  other  solutions. 
2.2.9.  In addition,  it seems  advisable  to clarify  the 
question  of  compatibility  between  the  first 
subparagraph  of Article  2 (3)  and  the  second 
sentence  of Article  2 (4).  If electricity  producers  can 
form  groups  in order  to apportion  fuel  stocks  among 
their  power  stations,  it raises  the question  whether  in 
some  cases,  the  provisions  governing  the  siting  of 
stocks  and  transport  may  have  to be waived. 
16.10.74 Official  Journal  of the  European  Communities No C 125/17 
2.3. Article  5 
2.3.1.  It is to be  assumed  that  the  deadline  of 
1 January  1976  for  the  building  up of stocks  will 
not be met  because,  among  other  things,  the  Council 
will hardly  have  approved  the  draft  Directive  by 
the end  of 1974.  The  Committee  considers  that  a 
more  realistic  deadline  for  implementation  of the 
Directive  can  be fixed  only  after  a detailed  study  of the time  needed  to provide  the  necessary  new  storage 
and transport  installations  has  been  carried  out. 
Done  at Brussels,  17 July  1974. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPAS 
ANNEX 
to the  Opinion  of the  Economic  and  Social  Committee 
The following  amendments  were  rejected  in the course  of the proceedings: 
Paragraph  2.2.5. 
Addition  of the following  text: 
'Furthermore  lignite  power  stations  are  usually  dual-fired.  In order  to avoid  unwarranted 
evasion  of the obligation  to stockpile,  such  dual-fired  power  stations  should  be required  to 
hold  sufficient  stocks  of the  other  fuel  to cover  50 days'  normal  consumption  of that  fuel'. 
Result  of the vote: 
for: 21 
against:  41 
abstentions:  11. 
Reasons  for  the above  amendment 
1. As  said  in point  2.2.1.  of the Opinion,  the guarantee  must  be absolute  and  this  means  there 
can be no compromise. 
2. Aware  of the dangers  to total  security  from  a compromise,  the Opinion,  which  has  refrained 
from  giving  any  judgement  on the value  of the Commission's  proposal,  has  requested  the latter 
to remodel  the draft  Directive  with  regard  to the exceptions  laid  down  with  respect  to stockpiling, 
namely,  for lignite,  natural  gas and  other  organic  fuels. 
3. However,  this  reasoning  has  not  been  pursued  to its logical  conclusion,  which  would  be: 
— in principle,  no exceptions  which  compromise  security;  consequently,  exemption  from 
stockpiling  requirements  for  lignite  and  natural  gas  except  where  power  stations  are  on 
deposits, 
— the  exemptions,  in the case  of dual-fired  power  stations,  are only  valid  for the percentage  of 
lignite  and  natural  gas  used, 
— obligation  to convert  existing  centres'  single-fired  power  stations  to dual-firing.  This  con-
version  must  be carried  out  within  a time  limit  which  remains  to be determined. 
Paragraph  2.2.6. 
Replacement  by the following  text: 
'Similar  stipulations  should  apply  to dual-fired  power  stations  which  use  natural  gas,  since 
this fuel  is also  difficult  to store  at present.  It should  in future  be compulsory  for all newly 
No C 125/18 Official  Journal  of the  European  Communities 16.10.  74 
built  power  stations  using  natural  gas to be dual-fired  (the  Commission  has made  a proposal 
on these  lines  in its latest  document  'Towards  a new  energy  policy  strategy  for the European 
Community').  Conversion  of existing  stations  to dual-firing  should  also  be compulsory  within 
a time  limit  which  remains  to be determined.  As a more  long-term  measure  the Community 
authorities  should  promote  research  and  development  work  on the storage  of natural  gas at 
natural  subterranean  sites'. 
Result  of the vote: 
for: 26 
against:  39 
abstentions:  12. 
Reason  for the amendment: 
As for amendment  to paragraph  2.2.5. 
Opinion  on the  proposal  for  a Council  Directive  concerning  forestry  measures 
The text  referred  to the Committee  has  been  published  in Official  Journal  of the European 
Communities  No  C 44 of 19 April  1974,  pages  14 to 20. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 11 March  1974,  the Council  referred  the abovementioned  proposal  to the  Economic 
and Social  Committee  in accordance  with  Articles  42 and  43 of the  Treaty  establishing 
the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the  above  matter  at its 
122nd  plenary  session,  held  in Brussels  on 17 and  18 July  1974. 
The full  text  of the  Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  request  from  the  Council, 
dated  12  March  1974,  for  an  opinion  on  the 
proposal  for  a  Council  Directive  concerning 
forestry  measures; 
Having  regard  to Articles  42 and  43 of the  Treaty 
establishing  the European  Economic  Community; 
Having  regard  to the  Decision  of its Bureau,  entrusting 
the Section  for  Agriculture  with  the  preparation  of 
the Committee's  work  on the matter; Having  regard  to the  report  presented  to the  Section 
for Agriculture  by the Rapporteur,  Mr Schnieders; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for Agriculture  at its meeting  on 4 July  1974; 
Having  regard  to  the  discussions  at  its  122nd 
plenary  session  on 17  and  18 July  1974,  sitting  of 
17 July; 
Whereas  the  Community  has  a very  low  degree  of 
self-sufficiency  in timber;