CELEX: 51990PC0514(02)
Language: en
Date: 1990-11-22
Title: PROPOSAL FOR A COUNCIL DIRECTIVE LAYING DOWN DETAILED RULES FOR THE IMPLEMENTATION OF DIRECTIVE WITH REGARD TO OIL STOCKS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0MC90) 514     final
                                             Brussels,    22   November 1990
          Communication from t h e Commission t o t h e Council
             ON THE OIL SUPPLY SITUATION, INCORPORATING
   TWO PROPOSALS FOR COUNCIL DIRECTIVES ON THE STEPS TO BE TAKEN
               IN THE EVENT OF SUPPLY DIFFICULTIES AND
                 ON THE MAINTENANCE OF STOCKS OF OIL
 ---pagebreak---                                         - 2 -
                Qommmicaation from tfrg* nnmmi.csrtrm t n thft nommai
                   ON THE OIL SOYFET STTOflnQN. OKPKPQRATING
        TWO PROPOSALS FOR QCOHCIL DIRBCTIVBS Œ THE STEPS TO ER TAKER
                     IN IBB EVENT OF SuTPLSf DIFFTaiTJriES AND
                       ON TOE MftQTCBKNCB OF STOCKS OF OIL
Introduotion
1.    The aim of this communication is to:
           analyse the current situation on the oil market and the short-term
           outlook;
           present legislative proposals designed to make fundamental changes
           to the Community's present role in times of oil supply
           difficulties ;
           spell out the implications for the Member States and the
           Community;
           propose measures to cope with the situation;
           propose guidelines for future action.
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2.    The embargo on oil imports from Iraq and Kuwait adopted by the UN on
      6 August and by the Community on 8 August (see Council
      Regulation No 2340/90) meant that some 4.3 million barrels/day, or 8%
      of world supplies and 19% of international oil trade, was withdrawn
      from the market for an indefinite period.
 ---pagebreak---                                   - 3 -
3. All the studies carried out so far by the IEA (International Energy
   Agency) and by the Commission on the current situation as regards
   worldwide supply and demand, as well as the information obtained
   direct from industry, suggest that there is no overall shortfall as
   things stand.
   The increase in production by a number of countries, particularly in
   the wake of the extraordinary meeting of OPEC held on 29 August, and
   the high level of stocks held by the consumer countries, estimated at
   some 100 days' supplies, are sufficient to meet a demand already on
   the decrease as a result of the sharp rise in prices on the world
   market in recent weeks, which has been passed on to the final
   consumer.
4. She price Increases have nonetheless been very severe, reflecting the
   uncertainty surrounding the outcome and duration of the crisis, and
   the doubt felt by operators as to the reliability of exports from the
   USSR. Tbe disappearance from the world market of products from Kuwait
   and large volumes of light petroleum products from the refineries of
   Saudi Arabia, allied to technical difficulties in adapting the
   refining apparatus to cope with heavier crude oils with a higher
   sulphur content, have also contributed to the price increase. Experts
   consider, however, that the scale of the increases is largely
   unjustified and of a speculative nature. This is borne out by the
   fluctuations in price in recent weeks which reflect the extreme
   sensitivity and volatility of the market to speculation in the media.
5. These price Increases have had very varying effects on consumer prices
   in the Member States, accentuating existing price differences.
   These differences are due in large measure to the price-formation
   policies of the Member States. In countries where prices (before tax)
   are allowed to find their own level, increases on the international
 ---pagebreak---                                    - 4 -
   markets are felt Immediately, and sometimes even anticipated.  In
   those Member States where prices are regulated, on the other hand, the
   increases are usually deferred, given that the numerous formulae
   applied are based on Information relating to an earlier situation.   In
   this context, the Commission is examining the different price
   mechanisms currently applied as these may, in times of crisis,
   threaten the free movement of products within the Community.
   Diverging consumer price trends may also be explained by the different
   consumption, distribution and competition structures on the markets of
   the Member States.
   Finally, where consumer prices are concerned, the differences are
   closely 1 Inked to the wide variety of taxation systems. Clearly,
   therefore, the convergence of taxes on petroleum products is essential
   with an eye to completion of the internal market in 1993.
6. The Oommission, like its partners in the IEA, has endeavoured hitherto
   to calm the market and discourage operators from panic twying which
   simply swells stocks and maintains prices artificially high.
7. The Oommission believes that, should the present situation persist,
   the speculative pressure would gradually ease and prioes would drop
   accordingly. This trend is liable to be particularly marked at the
   end of the winter, when consumption begins its seasonal downturn and
   stocks are always relatively high.
8. For this reason, apart from ensuring closer surveillance of the
   market, the Commission has not felt it necessary in present
   circumstances to introduce specific measures.
 ---pagebreak---                                    - 5 -
    However, it would if necessary consider the possibility, in order to
    help stabilize the market, of making a limited withdrawal from oil
    stocks. In view of the uncertainty as regards the outcome and
    duration of the crisis, this should be equivalent to not more than ten
    days' supply, in order to conserve oil stocks in case a serious crisis
    arises from a major shortfall.
    It further considers that the present situation highlights the harmful
    effects of indexing gas prioes with reference to the price of oil, and
    the need to look into the possibility of abolishing this practice in
    order to prevent a rise in oil prioes having an automatic impact on
    gas resources. To this end, the Commission is prepared to hold talks
    with the major gas-exporting oountries.
    Finally, the Commission, in a bid to heighten public awareness of the
    need to save energy, has already stepped up the SAVE programme
    (Specific Actions for Vigorous Energy Efficiency), designed to produce
    medium and long-term results.
9.  if hostilities should break out in the Gulf region, however, the
    result would probably be a price explosion. This would obviously be
    made even worse if the conflict were to spin over into Saudi Arabia,
    and in particular to the oil-producing Installations in the north-east
    of the country. In the ensuing state of war, which would lead to a
    significant drop in supplies, an extraordinary meeting of the
    Community's Energy Ministers would have to be convened to assess the
    situation and adopt measures to reduce consumption and make
    withdrawals from stocks. This meeting would prepare the position to
    be adopted by the Community at the extraordinary meeting of the IEA
    Governing Board which would also be called.
10. As the legislation stands, a Council Decision based on Article 103(3)
    of the Treaty would enable a package of Ccnnmunity-wide measures to be
 ---pagebreak---                                          - 6-
     Implemented relating to reduced consumption, withdrawals from stocks
     and prioes. Should it be decided to confine the measures to cuts in
     consumption, the Commission could Invoke Article 1 of Council
     Decision 77/706/EBC which allows the Commission to set a consumption
     reduction target of no more than 10% for a period of two months. If a
     cut In consumption in excess of 10% or for longer than two months
     should prove necessary, it could be introduced by means of a Council
     Decision adopted by a qualified majority.
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     activities,
11.  The gradual establishment of the internal market under the terms of
     the Single Act and changing requirements as regards security of supply
     call into question the legal nachinery hitherto used by the Community
     and the Member States to oope with supply difficulties.
12.  The strengthening of political, economic and social cohesion taking
     place in the Community calls for a considerable strengthening of the
     legal instruments needed to deal with problems of this kind.
     The Community as such does not currently have sufficient powers of
     initiative to assert itself vis-à-vis the Member States or the outside
     world.     Its duty to assume its responsibilities fully in the
     International arena, particularly within the IEA, means that the
     Community must have autonomous powers which are more clearly defined
     and more credible.
13.  IûtexmLLy, this should be expressed in the creation of a Community
     action framework within which the Commission is authorized to adopt
     short-term measures in an emergency. This could be achieved in the
 ---pagebreak---                                   - 7 -
    short term by replacing Council Directive 73/238/EBC by a speedier and
    more efficient Community decision-making mechanism.  On the basis of
    this the Commission should be able on its own authority not only to
    set consumption reduction targets, but also to adopt measures valid
    for three months.
    In parallel to this the system for maintaining oil stocks, which is an
    essential instrument of action and of security of supply policy,
    should be overhauled In order to enable the Community to take
    immediate action to offset supply difficulties. The Commission might
    be given responsibility for using a large proportion of the stocks,
    equivalent to 30 days' supply. TO this end, each Member State would
    have to set up an agency which would hold stocks equivalent to at
    least 60 days' supply.
    The two draft Council Directives attached are designed with these aims
    in mind.
14. Externally, the Community will have to assume a role on the
    international stage which is commensurate with its position on the
    international market as the largest importer of petroleum.
    Participation by the Community as such in the IEA should be reviewed,
    as provided for, moreover, by Article 72 of the Agreement on an
    International Energy Programme, as well as Article 3 of the 1974 OECD
    Council decision setting up the IEA.       >
    TO this end, the Council is requested to issue a negotiating mandate.
15. The role of the Member States is and will continue to be essential in
    the new organizational structure. Their relations with and
    commitments vis-à-vis the IEA are established and form the basis on
    which the Community should assert its identity.
 ---pagebreak---                                         - 8 -
16.  The Community has a specific dimension to offer as regards:
          analysis of the market and the need to adopt measures;
          the type of measures which might be adopted.
     As regards the analysis of the market, it is natural that it should
      take account of the assessment of an oil crisis situation made by the
      IEA. An analysis of this kind must be made at the broadest level, on
     the basis of the situation prevailing in the industrialized countries.
     As far as the type of measures is concerned the Community, unlike the
     other major consumers, and in view of its structural dependence on
     outside sources of supply, must ensure security of supply, the free
     movement of products and political, economic and social cohesion in
     the context of completion of the internal market and the provisions of
     the Single Act. For this reason it would now be unacceptable to
     European public opinion for a Sunday driving ban, for instance, to be
     introduced in one Member State and not in the neighbouring countries.
     It is essential that the measures adopted should be compatible to the
     greatest possible extent and should be a tangible expression of the
     solidarity existing between Member States.
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17.  A rise in oil prioes on the soale now being experienced automatioally
     results, provided surplus capacity is available and the Increase is
     passed on to the final consumer, in an increase in supply and a
     reduction or replacement of demand.
 ---pagebreak---                                     - 9 -
     Besides these classic effects, the measures to be taken in the event
     of supply difficulties might relate to:
         supply;
         demand.
18. fiuEply
         by drawing on stocks of oil;
         by making the rules on the quality of petroleum products more
         flexible;
         by making use of other sources of energy.
     Quite apart from the possibility of allowing operators to make partial
     use of stocks in the present circumstances, action by the IEA, in
     addition to Community action, is essential in order to make a decisive
     impact on the market and dampen prices.
     As far as environmental considerations are concerned, the two main
     Community directives on petroleum products (Council Directives 85/210
     and 87/219) already offer Member States the possibility of relaxing
     the Ctammunity rules on the content of products for a period of four
     months, in order to increase the volume of products available and
     introduce greater flexibility into the refining process.
     Finally, as regards the energy situation overall, the Member States
     should mobilize all the energy resources at their disposal to make
     them more readily available to other Member States. A protracted
     crisis cannot be ruled out which would justify, for example, stepping
     up the use of gas in electricity generation, in acceptable economic
     conditions.
 ---pagebreak---                                   - 10 -
19. i>wnd
    Final energy consumption of oil in the Community, which is in the
    region of 360 mtoe, breaks down as follows: 14% is used by industry,
    28% in the domestic sector and 58% for transport.
    The natural effect of market forces, i.e. a downturn in demand in
    response to the rise In consumer prioes resulting from the passing-on
    to the final consumer of the Increases registered on the world market,
    should be allowed to come into play, and should be accompanied by
    measures to dampen demand.
    In this respect the Community must seek to transpose the measures
    which have been adopted in principle within the IEA into a Community
    context.  It must be borne in mind that the aim of the Comraunity is to
    consolidate political, economic and social cohesion between the Member
    States.
    The list of measures given below, set out in increasing order of
    stringency, reflects consensus within the Oaramunity and could form the
    basis for Joint action.
    Thi« oommon set of measures which Member States would be obliged to
    implement would consist of:
    recommendations relating to:
    . advertising and public awareness campaigns to promote energy saving
    . efficient driving
    . adjustment of engines and heating boilers
    . speed restrictions (increased surveillance)
    . increased use of public transport
    . Increased use of combined transport
 ---pagebreak---                                     - 11 -
    obligations relating to:
     . heating of public buildings (temperature, hours of heating)
     . fuel substitution, e.g. in power stations (fuel oil/ooal/gas)
     . speed restrictions (lowering of speed limits)
     . public lighting and lighting for advertisements
    prohibitions and rationing:
     . ban on use of private oars on certain days/weekends or on the basis
    of number plates (even or odd numbers)
     . obligation for distributors to allocate smaller quantities to
    households, reduced by a certain percentage compared with the previous
    year, with the exception of certain priority sectors (industry,
    hospitals, essential public services, etc.)
    . rationing of fuel by means of petrol coupons.
20. Should supply difficulties threaten to arise, the Community's role
    would be clear. The Oommission would intervene initially to assess
    the situation, taking into account the evaluation made by the IEA.
    Should further action prove necessary the Commission, assisted by an
    advisory committee of representatives of the Member States, would
    pinpoint the objectives to be achieved and the means to be deployed.
    These would be reflected in a series of coherent and complementary
    measures, valid for three months, to be implemented by the Member
    States, which would take account where neoessary of specific national
    and/or regional situations. If the difficulties persisted, the
    Council would be called upon to adopt the necessary measures by a
    qualified majority.
 ---pagebreak---                                      - 12 -
  V.flnlriftHTrefar future action
21. As the President of the Oommission stressed at the special sitting of
     the European Parliament on the Gulf crisis held on 12 September 1990,
     the Oommission has already begun discussions on the lessons to be
     learnt from the situation and on the way ahead in the aftermath of the
     crisis.
22. On the policy front, it is becoming Increasingly clear that the
     dialogue between producers and consumers needs to be stepped up and
     Industrial cooperation, for instance with the USSR, encouraged.  Calls
     for dialogue have been made by the producers but also by consumers.
     Improved predictability of oil prices is essential to the development
     of the economies of both the producer and consumer countries. The
     pragmatic approach displayed today by the vast majority of OPEC
     countries is a pointer for the future. It should encourage
     cross-investment, which acts an added factor in ensuring the security
     of supplies.
23. With regard to the economic aspects, the Commission is examining the
     elements of a possible Community price-formation system for consumer
     oil prices. The current differences between Member States in the
     price of petroleum products before tax will no longer be acceptable in
     tomorrow's Community.
     The Commission is also studying the overall value for our eoonamies,
     our environment and the overall balance of oil supply and demand
     worldwide, which benefits the developing countries first and foremost,
     of keeping consumer oil prioes high, notably by means of fiscal
     measures. It is looking especially at prioes of petroleum products
     which oannot be substituted (motor fuels), which already account for
     more thanfra-i*of the Community's oil consumption. The resulting tax
     revenue could be used partly to attain energy policy objectives.
 ---pagebreak---                                       - 13 -
    Endorsement of this approach by all the industrialized countries,
    particularly the USA, would be desirable.
21. Finally, with regard to the establishment of the jn*^™*,! mfvrftfttr for
    energy, the Commission will continue the discussions begun in July
    last on the conditions necessary for genuine security of supply in the
    Community.     The free movement of energy products within the Community
    will enable resources to be used more efficiently, thus helping reduce
    dependence on outside sources of supply. The integration of the
    energy market will give all Member States more reliable access to the
    resources available throughout the Ctoramunity.
VI. firmn-hicrtrmg
25. The Council is requested to:
         approve the guidelines laid down;
         adopt the two draft Directives attached to this comraunication,
         Introducing a Community decision-making mechanism for coping with
         oil crises and a system of stocks which reflects changing
         conditions in the Community.
 ---pagebreak---                                     - 14 -
                                Proposal for a
                              COUNCIL DIRECTIVE
               providing for appropriate measures to be taken
                In the event of difficulties in the supply of
             crude oil and petroleum products to the Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 103(2) thereof,
                                                   i
Having regard to the proposal from the Commission,
Whereas imported crude oil and petroleum products play an important role in
the Community's energy supplies;     whereas any difficulty, even temporary,
having the effect of considerably reducing supplies of such products or
significantly increasing the price thereof on international markets could
cause serious disturbances    in the economic    activity of  the Community;
whereas the Community must, therefore, be in a position to offset or at
least to diminish any harmful effects in such a case-,
Whereas appropriate procedures and instruments should be provided for in
advance to ensure the speedy     implementation of measures to mitigate the
effects of difficulties in the supply of crude oil and petroleum products;
     0J No L
 ---pagebreak---                                        - 15 -
Whereas  the competent     authorities of   the Member States should    therefore
possess the necessary powers to take appropriate action without delay and
in accordance with the Treaty;
Whereas Council Directive 73/238/EEC      laid down procedures and instruments
to harmonize these powers to a certain extent         In order to facilitate the
coordination of national measures within the framework of consultations at
Community level;
Whereas,   in the    light of the completion of      the  Internal market,   those
procedures should now be replaced by a truly Community mechanism whereby,
in accordance with Article 145, third indent, of the Treaty the Commission,
assisted by a Committee of representatives of the Member States, can, once
it has established      the existence of    supply  difficulties, determine    the
appropriate measures to be taken, recourse being had, as already provided
for  in Directive 73/238/EEC, to withdrawals from oil stocks, to demand
restraint   and/or   to price control, and propose to the Council        that  the
measures be extended, or where appropriate, amended,          If the difficulties
persist for longer than three months;
Whereas the Commission must take particular care to ensure compliance with
the  principle     of   subsidiarity  where   a   reduction    in consumption   Is
concerned;
Whereas, for reasons of clarity, Directive 73/238/EEC should be recast In
view of the significant amendments to be made to it;
Whereas this Directive is without prejudice to the time limits within which
Member States have to comply with Directive 73/238/EEC,
     OJ No L 228, 16.8.1973. p. 1.
 ---pagebreak---                                     - 16 -
HAS ADOPTED THIS DIRECTIVE:
                                  Article 1
Member States shall take all necessary measures to provide the competent
authorities with the necessary powers, In the event of difficulties arising
in the supply of crude oil and petroleum products which have the effect of
considerably reducing supplies of such goods or significantly Increasing
the price thereof on International markets and are liable to cause severe
disrupt ion:
     to draw on the oil stocks provided for by Community legislation,
     to impose specific or broad restrictions on consumption,
     to regulate prices In order to prevent abnormal increases.
                                  Article 2
1.   Member States   shall  designate  the  bodies  to  be  responsible  for
      implementing the measures to be taken under the powers provided for in
     Article 1.   They shall inform the Commission of the composition and
     terms of reference of those bodies.
2.   Member States shall draw up Intervention plans for use in the event of
     difficulties In the supply of crude oil and petroleum products.
 ---pagebreak---                                        - 17 -
                                    Article 3
1. The existence of supply difficulties for            the Community or a part
   thereof   shall   be established      by  the Commission.    The   Commission's
   decision    shall    take   account    of   analyses   carried    out   by  the
   International Energy Agency and of         international commitments entered
   into by the Community and its Member States, in particular vis-à-vis
   that Agency.
2. The Decision referred      to   in paragraph    1 shall be notified without
   delay to the Member States, which shall           indicate to the Commission
   within a period of ten days following notification the measures they
   regard as appropriate.       During this same period the Commission shall
   convene the Committee provided for in Article 4(1).
3. In accordance with the procedure provided for            in Article 4(2), the
   Commission    shall   determine   the measures     to be   implemented   by  the
   Member States     in accordance    with   Article 1   taking   account   of  the
   analyses referred to in paragraph 1.
   With   regard   to the measures      referred  to   in the second     Indent of
   Article 1, the Commission shall set the consumption reduction target
   to be achieved and shall determine the broad lines of the measures to
   be implemented by the Member States.
4. The measures decided on by the Commission shall apply for no more than
   three months.     Thirty days before the expiry of the period of validity
   of the measures, and if the difficulties persist, the Commission shall
   propose to the Council the measures to be applied.           The Council shall
   take a decision on that proposal, acting by a qualified majority and
    If possible within a period of ten days,         if the Council does not lay
   down a time limit for the application of the measures, that time limit
   shall be three months.
 ---pagebreak---                                       - 18 -
                                   Article 4
1.   The Commission shall be assisted by a committee of an advisory nature,
     composed of the representatives of the Member States and chaired by
     the representative of the Commission.
2.   In the cases referred to in Article 3(3), the representative of the
     Commission shall submit to the Committee a draft of the measures to be
     taken.  The Committee shall deliver its opinion on the draft, within a
     time limit which the Chairman may lay down according to the urgency of
     the matter, if necessary by taking a vote.
     The opinion   shall  be   recorded   in the minutes-,  in addition, each
     Member State shall have the right to ask to have its position recorded
     in the minutes.
     The Commission shall take the utmost account of the opinion delivered
     by the Committee.    It shall    inform the Committee of the manner    in
     which its opinion has been taken into account.
                                   Article 5
     This   Directive    shall    replace    Directive   73/238/EEC.   Council
     Decision 77/706/EEC    is hereby repealed.
2.   References made to Directive 73/238/EEC shall be understood as being
     made to this Directive and shall be read in accordance with the table
     of equivalence annexed hereto.
                                   Article 6
Member States shall   bring   into force not    later than 1 January 1991  the
laws, regulations and administrative provisions necessary to comply with
this Directive.  They shall forthwith inform the Commission thereof.
 ---pagebreak---                                   - 19 -
Until such provisions have been adopted, Member States shall continue to
fulfil their obligations pursuant to Directive 73/238/EEC.
When Member States adopt these provisions, these shall contain a reference
to this Directive or shall be accompanied by such reference at the time of
their  official  publication. The procedure   for such  reference shall be
adopted by Member States.
                                 Article 7
This Directive is addressed to the Member States.
Done at Brussels,                                      For the Council
 ---pagebreak---                               - 20 -
                            A N N E X
                       Table of equivalence
   Directive 73/238/EEC                     This Directive
Article 1                         Article 1
Article 2(1) and                  Article 2(1)
Article 4(2)
Article 2(2)                      Article 2(2)
Article 3                         Article 3(1), (2) and (3)
                                  Article 3(4)
                                  Article 4(1)
                                  Article 4(2)
                                  Article 5
Art Icle 5 and                    Article 6, first paragraph
Article 4(1)
                                  Article 6, second paragraph
                                  Article 6, third paragraph
Article 6                         Article 7
 ---pagebreak---                                       - 21 -
                                 Proposal for a
                               COUNCIL DIRECTIVE
             laying down detailed rules for the Implementation of
               Directive      /90/EEC with regard to oil stocks
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 103(3) thereof,
                                                      1
Having regard to the proposal from the Commission,
Whereas Imported crude oil and petroleum products play an Important role in
the Community's energy supplies;      whereas any difficulty, even temporary,
having the effect of considerably reducing supplies of such products or
significantly Increasing the price thereof on international markets could
cause   serious disturbances   in the economic     activity   of the Community;
whereas the Community must therefore be In a position to offset or at least
to diminish any harmful effects in such a case-,
                                    2
Whereas   In Directive   .../90/EEC     the Council   decided   upon  appropriate
measures to be taken in the event of difficulties in the supply of crude
oil   and petroleum   products   to the Community,      concerning   oil stocks,
restriction of consumption and price control;          whereas   it is therefore
appropriate to adopt a Directive on oi I stocks;
 1   0J No L
 2   [Directive providing for appropriate measures to be taken in the event
 ---pagebreak---                                              - 22 -
Whereas      Council       Directive    68/414/EEC,        as    amended     by    Directive
              L
72/425/EEC,        imposes    an obligation      on Member      States   to maintain     oil
stocks corresponding to at least ninety days' internal consumption                    in the
preceding calendar year for three categories of petroleum products;
•Whereas, within the framework of the completion of the internal market, It
 Is necessary to ensure that the organizational arrangements for oil stocks
do   not   impede      the free   movement    of goods      and services     and that    the
security of supply is increased;
Whereas it is therefore appropriate that all the Member States should have
recourse     to    an    agency   to   hold   at    least    two-thirds    of    the  stocks
corresponding       to their Community      obligation,     thus making     It possible to
ensure a fair sharing of the burden of the stockholding obligation between
operators       in    the   oil   sector    and   to    guarantee     the   existence    and
availability of oil stocks in order to mitigate supply difficulties;
Whereas     it    is   necessary    to make    provision,      in the event       of  supply
difficulties, for a mechanism whereby the Community can intervene as soon
as possible, if necessary by deciding on withdrawals from oil stocks;
Whereas, In accordance with Article 3(3) and (4) of                 Directive .../90/EEC,
withdrawals      may be decided        upon   by   the Commission      for a period not
exceeding      three     months,   and   by   the Council      should    the    difficulties
persist; whereas a withdrawal            equivalent    to 30 days' consumption        should
normally be sufficient; whereas, however,                in the event of a more        acute
supply crisis        it will fall to the Council          to decide upon an additional
withdrawal;
Whereas Directive 68/414/EEC was amended by Directive 72/425/EEC; whereas,
on grounds of clarity, It should be recast for the purpose of Implementing
significantly changed arrangements;
3     0J No L 308, 23.12.1968, p. 14.
L     n.l No I S>Q1      9R.19.1972. o. 154.
 ---pagebreak---                                       - 23 -
Whereas this Directive Is without prejudice to the time limits within which
Member States have to comply with Directive 68/414/EEC,
HAS ADOPTED THIS DIRECTIVE:
                                    Article 1
1.   Member States shall adopt such measures as may be appropriate In order
     to maintain at all times, subject to the provisions of Article 7, a
     volume of oil stocks corresponding      to at  least 90 days' consumption
     established on their territory in the preceding calendar year for each
     of the categories of petroleum products referred to In Article 2.
2.   That   part of  internal   consumption  met  by derivatives of   petroleum
     produced indigenously by the Member State concerned may be deducted up
      to a maximum of 15% of the said consumption.
3.   Seagoing ships' bunkers shall not be included       in the calculation of
      Internal consumption.
                                    Article 2
The  following   categories   of  product   shall  be  taken  into account   in
calculating internal consumption:
1.   motor spirit and aviation fuel (aviation spirit and jet fuel of the
     gasoline type),
2.   gas oil, kerosene and jet fuel of the kerosene type,
3.    fueI oils.
 ---pagebreak---                                    - 24 -
                                  Article 3
1.   Each Member State shall set up an oil stockholding agency.
     Several Member States may decide to have recourse to a Joint agency.
     In that case they shall be jointly responsible for the obligations
     deriving from this Directive.
2.   Member States  shall  take steps    to ensure   that  their   stockholding
     agency has stocks representing at     least 60 day's' consumption on the
     national territory.
3.   The financing of the stocks referred to in paragraph 2 shall be the
     responsibility of the refiners and importers of the products referred
     to In Article 2 established in the Member State in question, according
     to the quantities delivered In that Member State during the preceding
     calendar year.
4.   Member States  shall  ensure   that   the  refiners   and   importers  are
     responsible for holding the stocks corresponding to the balance of the
     obligation of the Member State in question.
                                  Article 4
Member States shall submit to the Commission a statistical summary showing
the stocks held by their stockholding agency at the end of each month.
This summary shall be drawn up     in accordance with Articles 5 and 6 and
shall specify the number of days of average consumption in the preceding
calendar year which those stocks represent.    This summary must be submitted
within 15 days of the end of each month.
 ---pagebreak---                                       - 25 -
                                   Article 5
1. The stocks must consist of petroleum products for at least 70% of the
   total volume of stocks of each of the categories 1 and 2 referred to
   in Article 2 and 50% of the total volume of the stocks for category 3.
   The balance may be covered by crude oil or feedstocks.
2. In the statistical summary of stocks provided for in Article 4:
        finished products shall be accounted for according to their actual
        tonnage;
        crude oil and feedstocks shall be accounted for in the proportion
        of the quantities of each category of product obtained during the
        preceding   calendar   year    from    refineries  In operation    on  the
        territory of the Community; the coefficient for converting volumes
        of crude oil and feedstocks into petroleum products shall be laid
        down  each   year  before    ....    In accordance   with  the   procedure
        referred to in Article 4(2) of Directive             /90/EEC;
        blending   components,    when     intended   for  processing    into  the
        finished products listed in Article 2, may be substituted for the
        products for which they are intended.
                                   Article 6
1. When calculating the minimum         level provided for    in Article 1, only
   those   quantities    which  would     be    fully  at the   disposal   of  the
   Member States should difficulties arise in the supply of oil shall be
    Included in the statistical summary provided for in Article 4.
 ---pagebreak---                                      - 26 -
2. Subject to paragraph 1, the following may be Included in the stocks:
       quantities  on   board   oil   tankers    in port     for   the   purpose  of
       discharging, once the port formalities have been completed;
       quantities held in ports of discharge;
       supplies held in tanks at the entry to oil pipelines;
       quantities held in storage by large-scale consumers In compliance
       with the provisions of national law concerning the maintenance of
       permanent stocks;
       quantities   held   in  vessels     engaged    in   transport     within  the
       Community   in  so   far   as    It   is   possible    for    the   competent
       authorities to keep a check on such quantities and provided that
       they could be made available immediately.
3. In view of the provisions of paragraphs 1 and 2, the following shall,
   In particular, be excluded from the statistical summary: crude oil not
   yet  extracted,   quantities     intended    for   the   bunkers    of   seagoing
   vessels, quantities    in direct   transit, quantities        in oil pipelines,
   road tankers and rail tank wagons, in the storage tanks of filling
   stations, and those held by small consumers.           Quantities held by the
   armed forces and those held for them by the oil companies shall also
   be excluded from the statistical summary.
 ---pagebreak---                                     - 27 -
                                 Article 7
1. If the Commission    establishes,   in accordance with Article      3(1) of
   Directive .../90/EEC, the existence of oil supply difficulties for the
   Community or a part thereof, It shall convene the Committee provided
   for   In  Article 4(1)  of   Directive .../90/EEC.    The   Commission   may
   decide, in accordance with the procedure referred to in Article 4(2)
   of Directive .../90/EEC, that Member States may make a withdrawal from
   their stocks not exceeding 30 days.
2. An additional withdrawal may be decided upon by the Council acting on
   a Commission proposal. The Council shall take a decision acting by a
   qualified majority, if possible within a period of 10 days.
                                 Article 8
1. This Directive shall replace Directive 68/414/EEC.
2. References made to Directive 68/414/EEC shall be understood as being
   made to this Directive and shall be read in accordance with the table
   of equivalence annexed hereto.
                                 Article 9
1. Member States   shall  bring   into   force   the  laws,   regulations   and
   administrative provisions necessary to comply with this Directive by
   1 January 1992, and by 1 January 1991      In the case of Article 7. They
   shall forthwith inform the Commission thereof.
2. Notwithstanding paragraph 1, the oil stockholding agencies shall have
   the    quantities   referred   to    in   Article 3(2)    no    later   than
   1 January 1993.
 ---pagebreak---                                       - 28 -
3.   Until such time as the provisions referred to in paragraph 1 have been
     adopted,   Member States  shall   continue   to  fulfil   their  obligations
     pursuant to Directive 68/414/EEC.
4.   When   Member  States adopt   these   provisions,   these  shall  contain  a
     reference to this Directive or shall be accompanied by such reference
     at the time of their official       publication.   The procedure for such
     reference shall be adopted by Member States.
                                  Article 10
This Directive is addressed to the Member States.
Done at   Brussels,                                       For the Council
 ---pagebreak---                              - 29 -
                             ANNEX
                     Table of equivalence
Directive 68/414/EEC                This Directive
Article 1(1)                  Article 1(1)
Article 1(2)                  Article 1(2)
Article 1(3)                  Article 1(3)
Article 2
Article 3                     Article 2
                              Article 3
Article 4                     Article 4
Article 5                     Article 5
Article 6(1)(1)               Article 6(1)(1)
Article 6(1)(2)
Article 6(2
Article 6(3)(1)               Article 6(2)
Article 6(3)(2)               Article 6(3)
Article 7                     Article 7(1)
                              Article 7(2)
                              Article 8
Article 8                     Article 9(1)
                              Article 9(2)
                              Article 9(3)
                              Article 9(4)
Article 9                     Article 10
 ---pagebreak---                                                   - 30 -
Fiche d'impact de certains actes législatifs sur les PME et l*ewploi
     1.    OBLIGATIONS ADMINISTRATIVES DECOULANT DE L'APPLICATION DE LA
           LEGISLATION POUR LES ENTREPRISES
           O b l i g a t i o n de stockage p é t r o l i e r
            ( d é j à e x i s t a n t e sur base de l a D i r e c t i v e 687414/CEE)
     2.    AVANTAGES POUR L'ENTREPRISE
           - BUI/1
           - LESQUELLES
                   s é c u r i t é d'approvisionnement       pétrolier      a m é l i o r é e au
                   n i v e a u communautaire
          INCONVENIENTS POUR L'ENTREPRISE
           (coutssupplementair.es)
          - f¥i|NON
          - CONSEQUENCES
    4.    EFFETS SUR L'EMPLOI                                                                    I
              Non                                                                                !
                                                                                                   i
                                                                                                   i
    5.    Y A-T-IL EU CONCERTATION PREALABLE AVEC LES PARTENAIRES                                |
          SOCIAUX ?                                                                              !
                                                                                                  I
                                                                                                  I
          - ••••NON                                                                              j
          - AVIS DES PARTENAIRES SOCIAUX                                                         S
                                                                                                 i
    6.    Y A-T-IL UNE APPROCHE ALTERNATIVE MOINS CONTRAIGNANTE ?                                !
              NON
 ---pagebreak---                                                                                 ISSN 0254-1475
                                                                 COM(90)514final
                                                      DOCUMENTS
EN                                                                                         12
                                 Catalogue number : CB-CO-90-583-EN-C
                                                               ISBN 92-77-65944-0
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