An Act to authorize the Secretary of the Interior to establish on certain public lands of the United States national petroleum reserves the development of which needs to be regulated in a manner consistent with the total energy needs of the Nation, and for other purposes.
PL 94-258 (H.R.49), enacted 04/05/1976

PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 303 
Public Law 94-258 
94th Congress 
An Act 
To authorize the Secretary of the Interior to establish on certain public lands 
of the United States national petroleum reserves the development of which 
needs to be regulated in a manner eonsii-tent with the total energy needs of 
the Nation, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assenibled, That this Act may 
be cited as the "Naval Petroleum Reserves Production Act of 1976". 
TITLE I—NATIONAL PETROLEUM RESERVE IN ALASKA 
DEFINITION 
SEC. 101. As used in this title, the term "petroleum" includes crude 
oil, gases (including natural gas), natural gasoline, and other related 
hydrocarbons, oil shale, and the products of any of such resources. 
DESIGNAnOX o r THE NATIONAL PETROLEUM RESERVE IN ALASKA 
SEC. 102. The area knoAvn as Naval Petroleum Reserve Numbered 4, 
Alaska, established by Executive order of the President, dated Febru-
ary 27, 1923, except for tract Numbered 1 as described in Public Land 
Order 2344, dated April 24, 1961, shall be transferred to and admin-
istered by the Secretary of the Interior in accordance with the provi-
sions of this Act. Effective on the date of transfer all lands within 
such area shall be redesignated as the "National Petroleum Reserve in 
Alaska" (hereinafter in this title referred to as the "reserve"). Sub-
ject to valid existing rights, all lands within the exterior boundaries 
of such leserve are hereby reserved and withdrawn from all forms of 
entry and disposition under the public land laws, including the min-
ing and mineral leasing laws, and all other Acts; but the Secretary is 
authorized to (1) make dispositions of mineral materials pursuant to 
the Act of July 31, 1947 (61 Stat. 681), as amended (30 U.S.C. 601), 
for appropriate use by Alaska Natives, (2) make such dispositions of 
mineral materials and grant such rights-of-way, licenses, and permits 
as may be necessary to carry out his responsibilities under this Act, 
and (3) convey the surface of lands properly selected on or before 
December 18, 1975, by Native village corporations pursuant to the 
Alaska Native Claims Settlement Act. All other provisions of law 
heretofore enacted and actions heretofore taken reserving such lands 
as a Naval Petroleum Reserve shall remain in full force and effect to 
the extent not inconsistent with this Act. 
Apr. 5. 1976 
[H.R. 49] 
Naval Petroleum 
Reserves 
Production Act of 
1976. 
42 
use 6501 
note. 
42 
use 
6501. 
42 
use 
6502. 
43 
eFR 
app. 
43 
use 1601 
note. 
TRANSFER OF JURISDICrnON 
SEC. 103. (a) Jurisdiction over the reserve shall be transferred by 
the Secretary of the Navy to the Secretary of the Interior on June 1, 
1977. 
(b) With respect to any activities related to the protection of 
environmental, fish and wildlife, and historical or scenic values, the 
Secretary of the Interior shall assume all responsibilities as of the date 
42 use 6503. 
89-194 O—78—pt. 1 
23 
90 STAT. 304 
PUBLIC LAW 94-258—APR. 5, 1976 
Petroleum 
production, 
prohibition, 
42 use 6504. 
Explorations. 
Rules and 
of the enactment of this title. As soon as possible, but not later than 
regulations. 
fj^Q effective date of transfer, the Secretary of the Interior may pro-
mulgate such rules and regulations as he deems necessary and appro-
priate for the protection of such values within the reserve. 
(c) The Secretary of the Interior shall, u^on the effective date of 
the transfer of the reser-ve, assume the responsibilities and functions of 
' . 
the Secretary of the Navy under any contracts which may be in effect 
with respect to activities within the reserve. 
(d) On the date of transfer of jurisdiction of the reserve, all equip-
ment, facilities, and other property of the Department of the Navy 
used in connection with the operation of the reserve, including all 
records, maps, exhibits, and other informational data held by the 
Secretary of the Navy in connection with the reserve, shall be trans-
ferred without reimbursement from the Secretary of the Navy to the 
Secretary of the Interior who shall thereafter he. authorized to use 
, 
themtocarry out the provisions of this title. 
' 
' 
(e) On the date of transfer of jurisdiction of the reserve, the Secre-
tary of the Navy shall transfer to the Secretary of the Interior all 
unexpended funds previously appropriated for use in connection with 
the reserve and all civilian personnel ceilings assigned by the Secretary 
of the Navy to the management and operation of the reserve as of 
January 1,1976. 
ADMINISTRATION OF THE RESERVE 
SEC. 104. (a) Except as provided in subsection (e) of this section, 
production of petroleum from the reserve is prohibited and no develop-
ment leading to prodiiction of petroleum from the reserve shall be 
undertaken until authorized by an Act of Congress. 
(b) Any exploration within the Utukok River, the Teshekp\ik 
Lake areas, and other areas designated by the Secretarv of the Interior 
containing any significant subsistence, recreational, fish and wildlife, 
or historical or scenic value, shall be coinlucted in a manner which will 
assure the maximum protection of such surface values to the extent 
consistent with the requirements of this Act for the exploration of the 
reserve. 
(c) The Secretary of the Navy shall continue the ongoing petroleum 
exploration program within tlie reserve until the date of the transfer 
of jurisdiction specified in section lOBYal. Prior to the date of such 
transfer of jurisdiction the Secretary of the Navy shall— 
(1) cooperate fully with the Secretary of the Interior providing 
him access to such facilities and such information as he may 
request to facilitate the transfer of jurisdiction; 
(2) provide to the Committees on Interior and Insular Affairs 
of the Senate and the House of Representatives copies of any 
reports, plans, or contracts pertaining to the reserve that are 
required to be submitted to the Committees on Armed Services of 
the Senate and the House of Representatives; and 
(3) cooperate and consult with the Secretary of the Interior 
^ 
before executing any new contract or amendment to any existing 
;::;JC , , 'r 
contract pertaining to the reserve and alloTV him a reasonable 
opportunity to comment on such contract or amendment, as the 
case may be. 
(d) The Secretary of the Interior shall commence further petroleum 
exploration of the reserve as of the date of transfer of jurisdiction 
specified in section 103(a). In conducting this exploration effort, the 
Secretary of the Interior— 
Contracts. 
(1) is authorized to enter into contracts for the exploration of 
the reserve, except that no such contract may be entered into until 
Information, 
submittal to 
congressional 
committees. 
PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 305 
at least thirty days after the Secretary of the Interior has pro-
vided the Attorney General with a copy of the proposed contract 
and such other information as may be appropriate to determine 
legal sufficiency and possible violations under, or inconsistencies 
with, the antitrust laws. If, within such thirty day period, the 
Attorney General advises the Secretary of the Interior that any 
such contract would unduly restrict competition or be inconsistent 
with the antitrust laws, then the Secretary of the Interior may 
not execute that contract; 
(2) shall submit to the Committees on Interior and Insular 
Affairs of the Senate and the House of Representatives any new 
plans or substantial amendments to ongoing plans for the explora-
tion of the reserve. All such plans or amendments submitted to 
such committees pursuant to this section shall contain a report by 
the Attorney General of the United States with respect to the 
anticipated effects of such plans or amendments on competition. 
Such plans or amendments shall not be implemented until sixty 
days after they have been submitted to such committees; and 
(3) shall report annually to the Committees on Interior and 
Insular Affairs of the Senate and the House of Representatives on 
the progress of, and future plans for, exploration of the reserve. 
(e) Until the reserve is transferred to the jurisdiction of the Secre-
tary of the Interior, the Secretary of the Navy is authorized to develop 
and continue operation of the South Barrow gas field, or such other 
fields as may be necessary, to supply gas at reasonable and equitable 
rates to the native village of Barrow, and other communities and 
installatiors at or near Point Barrow, Alaska, and to installations of 
the Department of Defense and other agencies of the United States 
located at or near Point Barrow, Alaska. After such transfer, the Sec-
retary of the Interior shall take such actions as may be necessary to 
continue such service to such village, communities, installations, and 
agencies at reasonable and equitable rates. 
Plans, submittal 
to congressional 
committees. 
Report by 
Attorney 
General. 
Report to 
congressional 
committees. 
42 use 6505. 
STUDY OF THE RESERVE 
SEC. 105. (a) Section 164 of the Energy Policv and Conservation 42 USC 6244. 
Act (89 Stat. 871, 889), is hereby amended by deleting in the first 
sentence "to the Congress" and bv inserting in lieu thereof "to the 
Committees on Interior and Insular Affairs of the Senate and House 
of Representatives". 
(b)(1) The President shall direct such Executive departments and/ 
or agencies as he may deem appropriate to conduct a study, in con-
sultation with representatives of the State of Alaska, to determine 
the best overall procedures to be used in the development, production, 
transportation, and distribution of petroleum resources in the reserve. 
Such study shall include, but shall not be limited to, a considera-
tion of— 
(A) the alternative procedures for accomplishing the devel-
opment, production, transportation, and distribution of the petro-
leum resources from the reserve, and 
(B) the economic and environmental consequences of such 
alternative procedures. 
(2) The President shall make semiannual progress reports on the 
implementation of this subsection to the Committees on Interior and 
Insular Affairs of the Senate and the House of Representatives begin-
ning not later than six months after the date of the enactment of this 
Act and shall, not later than one year after the transfer of jurisdic-
tion of the reserve, and annually thereafter, report any findings or 
Report to 
congressional 
committees. 
90 STAT. 306 
PUBLIC LAW 94-258—APR. 5, 1976 
42 use 6505. 
Report to 
con§ 
committees. 
conclusions developed as a result of such study together with appro-
priate supporting data and such recommendations as he deems desir-
able. The study shall be completed and submitted to such committees, 
together with recommended procedures and any proposed legislation 
necessary to implement such procedures not later than January 1, 
1980. 
(c) (1) The Secretary of the Interior shall establish a task force 
to conduct a study to determine the values of, and best uses for, the 
lands contained in the reserve, taking into consideration (A) the 
natives Avho live or depend upon such lands, (B) the scenic, histori-
cal, recreational, fish and wildlife, and wilderness values, (C) min-
eral potential, and (D) other values of such lands. 
(2) Such task force shall be composed of representatives from the 
government of Alaska, the Arctic slope native community, and such 
offices and bureaus of the Department of the Interior as the Secre-
tary of the Interior deems appropriate, including, but not limited to, 
the Bureau of Land Management, the United States Fish and Wild-
life Service, the United States Geological Survey, and the Bureau 
of Mines. 
(3) The Secretary of the Interior shall submit a report, together 
with the concurring or dissenting views, if any, of any non-Federal 
representatives of the task force, of the results of such study to the 
Committees on Interior and Insular Affairs of the Senate and the 
House of Representatives within three years after the date of enact-
ment of this title and shall include in such report his recommenda-
tions with respect to the value, best use, and appropriate designation 
of the lands referred to in paragraph (1). 
42 use 6506. 
Post, p. 309. 
42 use 6507. 
Community 
municipal 
services and 
facilities, Federal 
financial 
assistance. 
ANTITRUST PROVISIONS 
SEC. 106. Unless otherwise provided by Act of Congress, whenever 
development leading to production of petroleum is authorized, the 
provisions of subsections (g), (h), and (i) of section 7430 of title 10, 
United States Code, shall be deemed applicable to the Secretary of the 
Interior with respect to rules and regulations, plans of development 
and amendments thereto, and contracts and operatir.g agreements. All 
plans and proposals submitted to the Congress under this title or 
pursuant to legislation authorizing development leading to produc-
tion shall contain a report by the Attorney General of the United 
States on the anticipated effects upon competition of such plans and 
proposals. 
AUTHORIZATION FOR APPROPRIATIONS 
SEC. 107. (a) There are authorized to be appropriated to the Depart-
ment of the Interior such sums as may be necessary to carry out the 
provisions of this title. 
(b) If the Secretary of the Interior determines that there is an 
immediate and substantial increase in the need for municipal services 
and facilities in communities located on or near the reserve as a direct 
result of the exploration and study activities authorized by this title 
and that an unfair and excessive financial burden will be incurred by 
such communities as a result of the increased need for such services and 
facilities, then he is authorized to assist such communities in meeting 
the costs of providing increased municipal services and facilities. The 
Secretary of the Interior shall carry out the provisions of this section 
through existing Federal programs and he shall consult with the heads 
of the departments or agencies of the Federal Government concerned 
with the type of services and facilities for which financial assistance is 
being made available. 
PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 307 
TITLE II—NAVAL PETROLEUM R E S P : R V E S 
SEC. 201. Chapter 641 of title 10, United States Code, is amended as 
' 
follows: 
(1) Immediately before section 7421 insert the following new 
section: 
"§ 7420. Definitions 
10 USC 7420. 
"(a) In this chapter— 
"(1) 'national defense'includes the needs of, and the planning 
and preparedness to meet, essential defense, industrial, and mili-
tary emergency energy requirements relative to the national 
safety, welfare, and economy, particularly resulting from foreign 
military or economic actions; 
"(2) 'naval petroleum reserves'means the naval petroleum and 
oil shale reserves established by this chapter, including Naval 
Petroleum Reserve Numbered 1 (Elk Hills), located in Kern 
County, California, established by Executive order of the Presi-
dent, dated September 2, 1912; Naval Petroleum Reserve Num-
bered 2 (Buena Vista), located in Kern County, California, 
established by Executive order of the President, dated Decem-
ber 13, 1912; Naval Petroleum Reserve Numbered 3 (Teapot 
Dome), located in Wyoming, established by Executive order of the 
President, dated April 30, 1915; Naval Petroleum Reserve Num- 
^ 
bered 4, Alaska, established by Executive order of the President, 
dated February 27,1923 (until redesignated as the National Petro-
leum Reserve in Alaska under the jurisdiction of the Secretary of 
the Interior as provided in the Naval Petroleum Reserves Pro-
duction Act of 1976); Oil Shale Reserve Numbered 1, located in 
Colorado, established by P^xecutive order of the President, dated 
December 6, 1916, as amended by Executive order dated June 12, 
1919; Oil Shale Reserve Numbered 2, located in I'tah, established 
by Executive order of the President, dated December 6,1916; and 
Oil Shale Reserve Numbered 3, located in Colorado, established by 
Executive order of the President, dated September 27,1924; 
"(3) 'petroleum' includes crude oil, gases (including natural 
gas), natural gasoline, and other i-elated hydrocarbons, oil shale, 
and the products of any of such resources; 
"(4) 'Secretary'means the Secretary of the Navy; 
"(5) 'small refiner' means an owner of a refinery or refineries 
(including refineries not in operation) who qualifies as a small 
business refiner under the rules and regulations of the Small 
Business Administration; and 
"(6) 'maximum efficient rate' means the maximum sustainable 
daily oil or gas rate from a reservoir which will permit economic 
development and depletion of that reservoir without detriment to 
the ultimate recovery.". 
(2) Section 7421 (a) is amended— 
10 IJSC 7421. 
(A) by striking out "of the Navy"; 
(B) by striking out "and oil shale"; 
(C) by striking out "for naval purposes" and inserting in lieu 
thereof "for national defense purposes"; and 
(D) by striking out "vsection 7438 hereof and inserting in lieu 
thereof "this chapter". 
(3) The text of section 7422 is amended to read as follows: 
10 USC 7422. 
" (a) The Secretary, directly or by contract, lease, or otherwise, shall 
explore, prospect, conserve, develop*, use, and operate the naval petro-
leum reserves in his discretion, subject to the provisions of subsection 
90 STAT. 308 
PUBLIC LAW 94-258—APR. 5, 1976 
(c) and the other provisions of this chapter; except that no petroleum 
leases shall be granted at Naval Petroleum Reserves Numbered 1 and 3. 
"(b) Except as otherwise provided in this chapter, particularly 
subsection (c) of this section, the naval petroleum reserves shall be 
used and operated for— 
"(1) the protection, conservation, maintenance, and testing of 
' 
those reserves; or 
"(2) the production of petroleum whenever and to the extent 
that the Secretary, with the approval of the President, finds that 
such production is needed for national defense purposes and the 
production is authorized by a joint resolution of Congress. 
"(c) (1) In administering Naval Petroleum Reserves Numbered 1, 
2, and 3, the Secretary is authorized and directed— 
"(A) to further explore, develop, and operate such reserves; 
"(B) commencing within ninety days after the date of enact-
ment of the Naval Petroleum Reserves Production Act of 1976, 
to produce such reserves at the maximum efficient rate consistent 
with sound engineering practices for a period not to exceed six 
years after the date of enactment of such Act ; 
"(C) during such production period or any extension thereof 
to sell or otherwise dispose of the United States share of such 
petroleum produced from such reserves as hereinafter provided; 
and 
"(D) to construct, acquire, or contract for the use of storage 
and shipping facilities on and off the reserves and pipelines and 
associated facilities on and off the reserves for transporting petro-
leum from such reserves to the points where the production from 
.«?uch reserves will be refined or shipped. 
Any pipeline in the vicinity of a naval petroleum reserve not other-
wise operated as a common carrier may be acquired by the Secretary 
by condemnation, if necessary, if the owner thereof refuses to accept, 
convey, and transport without discrimiation and at reasonable rates 
any petroleum produced at such reserve. With the approval of the 
Secretary, rights-of-way for new pipelines and associated facilities 
may be acquired by the exercise of the right of eminent domain in 
the appropriate United States district court. Such rights-of-way may 
be acquired in the manner set forth in the Act of February 26, 1931, 
chapter 307 (46_ Stat. 1421; 40 U.S.C. 258(a)), and the prospective 
holder of the right-of-Avay is 'the authority empowered by law to 
acquire the lands' within the meaning of that Act. Such new pipelines 
shall accept, convey, and transport without discrimination and at rea-
sonable rates any petroleum produced at such reserves as a common 
carrier. Pipelines and associated facilities constructed at or procured 
for Naval Petroleum Reserve Numbered 1 pursuant to this subsection 
shall have ade<iuate capacity to accommodate not less than three hun-
dred fifty thousand barrels of oil per day and shall be fully oper-
able as soon as possible, but not later than three years after the date of 
'''*:•' 
enactment of the Naval Petroleum Reserves Production Act of 1976. 
"(2) At the conclusion of the six-year production period authorized 
by paragraph (1) (B) of this subsection the President may extend the 
period of production in the case of any naval petroleum reserve for 
additional peiiods of not to exceed three years each— 
Investigation. 
"(A) after the President requires an investigation to be made, 
in the case of each extension, to determine the necessity for con-
tinued production from such naval petroleum reserve; 
Report to 
"(B) after the President submits to the Congress, at least one 
Congress. 
hundred eighty days prior to the expiration of the current pro-
duction period prescribed by this section, or any extension thereof, 
PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 309 
a copy of the report made to him on such investigation together 
with a certification by him that continued production from such 
naval petroleum reserve is in the national interest; and 
"(C) if neither House of Congress within ninety days after 
receipt of such report and certification adopts a resolution dis-
approving further production from such naval petroleum reserve. 
"(3) The production authorization set forth in paragraph (1) (B) 
of this subsection, in the case of Naval Petroleum Reserve Numbered 
1, is conditioned upon the private owner of any lands or interests 
therein within such reserve agreeing with the Seci-etary to continue 
operations of such reserve under a unitized plan contract which ade-
quately protects the public interest; however, if such agreement is not 
reached within ninety days after the date of enactment of the Naval 
Petroleum Reserves Production Act of 1976 the Secretary is author-
ized to exercise the authority for condemnation conferred by section 
7425 of this chapter.". 
(4) The first sentence of section 7423 is amended by deleting "of the 
Navy" and "or products". 
(5) Section 7424 is amended— 
(A) by deleting "of the Navy" in the text of subsection (a) 
preceding clause (i) ; 
(B) by deleting "and oil shale" in subsection (a) (1) in the text 
preceding subclause (A); and 
(C) by deleting "in the ground" in clause (1)(A) of subsec-
tion (a). 
(6) Section 7425 is amended by deleting "of the Navy". 
(7) Section 7426(a) is amended by striking out "the Secretary of 
the Navy" and inserting in lieu thereof "Subject to the provisions of 
section 7422(c), the Secretary". 
(8) The first and second sentences of section 7427 are amended by 
striking out "of the Navy". 
(9) Section 7428 is amended by striking out "Avithin the naval 
petroleum and oil shale reserves shall contain a provision authorizing 
the Secretary of the Navy" and inserting in lieu thereof "within Naval 
Petroleum Reserve Numbered 2 and the oil shale reserves shall contain 
a provision authorizing the Secretary". 
(10) The first sentence of section 7429 is amended by deleting "of 
the Navy". 
(11) The text of section 7430 is amended to read as follows: 
"(a) In administering the naval petroleum reserves under this chap-
ter, the Secretary shall use, store, or sell the petroleum produced from 
the naval petroleum reserves and lands covered by joint, unit, or other 
cooperative plans. 
"(b) Notwithstanding any other provision of law, each sale of the 
United States share of petroleum shall be made by the Secretary at 
public sale to the highest qualified bidder, for periods of not more than 
one year, at such time, in such amounts, and after such advertising as 
the Secretary considers pi'oper and without regard to Fedeial, State, 
or local regulations controlling sales or allocation of petroleum 
products. 
"(c) In no event shall the Secretary permit the award of any con-
tract which would result in any person obtaining control, directly or 
indirectly, over more than 20 per centum of the estimated annual 
United States share of petroleum produced from Naval Petroleum 
Reserve Numbered 1. 
"(d) Each proposal for sale under this title shall provide that the 
terms of every sale of the United States share of petroleum from the 
naval petroleum reserves shall be so structured as to give full and 
10 use 7423. 
10 use 7424. 
10 use 7425. 
10 use 7426. 
10 use 7427. 
10 use 7428. 
10 use 7429. 
10 use 7430. 
Public sale. 
90 STAT. 310 
PUBLIC LAW 94-258—APR. 5, 1976 
50 u s e app. 
2401 note. 
Waiver. 
Ante, p. 307. 
Post, p. 311. 
Rules and 
regulations. 
Contract or 
operating 
agreement, 
notification. 
equal opportunity for the acquisition of petroleum by all interested 
persons, including major and independent oil producers and refiners 
alike. When the Secretary, in consultation with the Secretary of the 
Interior, determines that the public interests will be served by the sale 
of petroleum to small refiners not having their own adequate sources 
of supply of petroleum, the Secretary is authorized and directed to set 
aside a portion of the United States share of petroleum produced for 
sale to such refiners under the provisions of this section for processing 
or use in such refineries, except that— 
"(1) none of the .production sold to small refiners may be resold 
in kind; 
"(2) production must be sold at a cost of not less than the pre-
vailing local market price of comparable petroleum; 
"(3) the set-aside portion may not exceed 25 per centum of the 
estimated annual United States share of the total production from 
all producing naval petroleum reserves; and 
"(4) notwithstanding the provisions of subsection (b) of this 
section, the Secretary may, at his discretion if he deems it to be 
in the public interest, prorate such petroleum among such refiners 
for sale, without competition, at not less than the prevailing local 
market price of comparable petroleum. 
"(e) Any petroleum produced from the naval petroleum reserves, 
except such petroleum whicli is eitJier exchanged in similar quantities 
for convenience or increased efiiciency of transportation with persons 
or the government of an adjacent foreign state, or which is temporarily 
exported for convenience or increased efficiency of transportation 
across parts of an adjacent foreign state and reenters the United States, 
shall be subject to all of the limitations and licensing requirements of 
the Export Administration Act of 1969 (83 Stat. 841) and, in addition, 
before any petroleum subject to tliis section may be exported under 
the limitations and licensing requirement and penalty and enforce-
ment provisions of the Export Administration Act of 1969, the Presi-
dent must make and publish an express finding that such exports will 
not diminish the total quality or quantity of petroleum available to the 
United States and that such exports are in the national interest and 
are in accord with tlie Export Administration Act of 1969. 
"(f) During the period of production or any extension thereof 
authorized by section 7422(c), the consultation and approval require-
ments of section 7431 (a) (3) are waived. 
"(g)(1) Prior to the promulgation of any rules and regulations, 
plans of development and amendments thereto, and in the entering and 
making of contracts and operating agreements relating to the develop-
ment, production, or sale of petroleurii in or from the reserves, the 
Secretary shall consult with and give due consideration to the views 
of the Attorney General of the United States with respect to matters 
which may affect competition. 
"(2) No contract or operating agreement may be made, issued, or 
executed under this chapter until at least thirty days after the Sec-
retary notifies the Attorney General of the proposed contract or 
operating agreement. Such notification shall contain such information 
as the Attorney General may require in order to advise the Secretary 
as to whether such conti'act or operating agreement may create or 
maintain a situation inconsistent with the antitrust laAvs. If, within 
such thirty day period, the Attorney General advises the Secretary 
that a contract or operating agreement may create or maintain a situ-
ation inconsistent with the antitrust laws, then the Secretary may not 
make, issue, or execute that contract or oi^erating agreement. 
PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 311 
'Antitrust laws. 
"(li) Nothing in this chapter shall be deemed to confer on any per-
son immunity from civil or criminal liability, or to create defenses to 
actions, under the antitrust laws. 
" (i) As used in this section, the term 'antitrust laws' means— 
"(1) the Act entitled 'An Act to protect trade and commerce 
against unlawful restraints and monopolies', approved July 2, 
1890 (15 U.S.C. 1 et seq.), as amended; 
"(2) the Act entitled 'An Act to supplement existing law^s 
against unlawful restraints and monopolies, and for other pur-
poses', approved October 15, 1914 (15 U.S.O. 12 et seq.), as 
amended; 
"(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.), 
as amended; 
"(4) sections 73 and 74 of the Act entitled 'An Act to reduce 
taxation, to provide revenue for the Government, and for other 
purposes', approved August 27, 1894 (15 U.S.C. 8 and 9), as 
amended; or 
"(5) sections 2, 3, and 4 of the Act of June 19, 1936, chapter 
592 (15 U.S.C. 13a, 13b, and 21a). 
"(j) Any pipeline which accepts, conveys, or transports any petro-
leum produced from Naval Petroleum Reserves Numbered 1 or Num-
bered 3 shall accept, convey, and traiispoit without discrimination and 
at reasonable rates any such petroleum as a common carrier insofar as 
petroleum from such reserves is concei-ned. Every contract entered into 
by the Secretary for tlie sale of any petroleum owned by the L^nited 
States which is produced from such reserves shall contain provisions 
implementing the requirements of the preceding sentence if the con-
tractor owns a controlling interest in any pipeline or any company 
operating any pipeline, or is the operator of any pipeline, which carries 
any petroleum produced from such naval petroleum reserves. The Sec-
retary may promulgate rules and regulations for the purpose of carry-
ing out the provisions of this section and he, or the Secretary of the 
Interior where the authority extends to him, may declare forfeit any 
contract, operating agreement, right-of-way, permit, or easement held 
' 
' 
by any person violating any sucli rule or regulation. This section shall 
not apply to any natural gas connnon carrier pipeline operated by any 
j)ei'Son subject to legulation under the Natural Gas Act or any public 
15 USC 717w 
utility subject to regulation by a State or municipal regulatory agency 
having jurisdiction to regulate the rates and charges for the sale of 
natural gas to consumers within the State or municipality. 
"(k) The President may, at his discretion, direct that all or any 
part of the United States share of petroleum produced from the naval 
petroleum reserves be placed in strategic storage facilities as authorized 
by sections 151 thi'ough 166 of the Energy Policy and Conservation 
Act or that all or any part of such share be exchanged for petroleum 
of equal value for the purpose of placing such petroleum in such 
strategic storage facilities.". 
(12) Section 7431 is amended— 
(A) by inserting " ( a ) " immediately before "The Committees"; 
(B) by striking out "or oil shale" in clauses (1) and (2); 
(C) by striking out "and oil shale" in clauses (2) and (3); 
(D) by striking out "oil and gas (other than royalty oil and 
gas), oil shale, and products therefrom" in clause (3) and insert-
ing in lieu thereof "petroleum (other than royalty oil and gas)"; 
and 
(E) by add i ng at the end thereof the following new subsections: 
"(b)(1) l)uring the period of pi"oduction authorized by section Plans, submittal 
to congressional 
committees. 
Rules and 
regulations. 
42 USC 
6231-6246. 
10 USC 7431. 
90 STAT. 312 
PUBLIC LAW 94-258~APR. 5, 1976 
Reports to 
congressional 
committees. 
Ante, p. 307. 
7422(c), the Secretary shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives any new plans 
or substantial amendments to ongoing plans for the exploration, 
' 
- 
development, and production of the naval petroleum reserves. 
" (2) All plans or substantial amendments submitted to the Congress 
pui-suant to this section shall contain a report by the Attorney General 
of the United States with respect to the anticipated effects of such 
plans or amendments on competition. Such plans or amendments shall 
not 'be implemented until sixty days after such plans or amendments 
have been submitted to such committees. 
"(c) During the period of production authorized by section 7422 (c), 
the Secretary shall submit annual reports as of the first day of the 
fiscal year to the Committees on Ai-med Services of the Sienate and 
the House of Representatives, and such committees shall cause such 
reports to be printed as a Senate or House document, as appropriate. 
The Secretary shall include in such reports, with respect to each naval 
petroleum reserve, an explanation in detail of the following: 
" (1) the status of the exploration, development, and production 
^ 
programs; 
"(2) the production that has been achieved, including the dis-
position of such production and the proceeds realized therefrom; 
"(3) the status of pipeline construction and procurement and 
problems related to the availability of transportation facilities; 
"(4) a summary of future plans for exploration, development, 
production, disposal, and transportation of the production from 
the naval petroleum reserves; and 
"(5) such other information regarding the reserve as the Secre-
tary deems appropriate.''. 
10 use 7432. 
(13) Section 7432 is amended to read as follows: 
*
*
§ 7432. Naval petroleum reserves special account 
"(a) There is hereby established on the books of the Treasury 
_• 
Department a special account designated as the 'naval petroleum 
reserves special account'. There shall be credited to such account— 
"(1) all proceeds realized under this chapter from the disposi-
tion of the United States share of petroleum; 
, ;. 
"(2) the net proceeds, if any, realized from sales or exchanges 
within the Department of Defense of refined petroleum products 
accruing to the benefit of any component of that department as 
the result of any such sales or exchanges; 
"(3) such additional sums as may be appropriated for the 
maintenance, operation, exploration, development, and produc-
tion of the naval petroleum reserves; 
"(4) such royalties as may accrue under the provisions of sec-
10 use 7433. 
tion 7433; and 
"(5) any other revenues resulting from the operation of the 
naval petroleum reserves. 
"(b) Funds available in the naval petroleum reserve special account 
' ' 
' 
shall be available for expenditure in such sums as are specified in 
annual appropriations Acts for the expenses of— 
"(1) exploration, prospecting, conservation, development, use, 
operation, and production of the naval petroleum reserves as 
authorized by this chapter; 
"(2) production (including preparation for production) as 
authorized by this chapter, or as may hereafter be authorized; 
" (3) the construction and operation of facilities both within and 
' 
outside the naval petroleum reserves incident to the production 
and the delivery of petroleum, including pipelines and shipping 
terminals; 
PUBLIC LAW 94-258—APR. 5, 1976 
90 STAT. 313 
"(4) the procurement of petroleum for, and the construction 
and operation of facilities associated with, the Strategic Petroleum 
Reserve authorized by sections 151 through 166 of the Energy 
Policy and Conservation Act; and 
"(5) the exploration and study of the National Petroleum 
Reserve in Alaska as authorized in title I of the Naval Petroleum 
Reserves Production Act of 1976. 
"(c) The budget estimates for annual appropriations from the 
naval petroleum reserves special account shall be prepared by the 
SecretaiT and shall be presented to the Congress by the President 
independently of the budget of the Department of tie Navy and the 
Department of Defense. 
"(d) Contracts under this chapter providing for tlie obligation of 
funds may be entered into by the Secretary for a period of five years, 
renewable, at the option of the Secretary, for an additional five-year 
period; however, such contracts mav obligate funds only to the extent 
that such funds are made available in annual appropriations.". 
(14) Section 7433 (a) is amended by striking out "of the Navy". 
(15) Section 7433(b) is amended by strikmg out "and oil shale". 
(16) Section 74.34 is amended by striking out "and oil shale". 
(17) Section 7435(b) is amended by striking out "of the Navy". 
(18) Section 7436(a) is amended by deleting "of the Navy, subject 
to approval of the President,". 
(19) Section 7438 is amended by striking out "Secretary of tl:e 
Interior" wherever it occurs and inserting therefor "Administrator of 
the Energy Research and Development Administration"; and by strik-
ing out "of the Navy" wherever it occurs. 
(20) The table of sections at the beginning of such chapter is 
amended— 
(A) by inserting immediately before 
"7421. Jurisdiction and control." 
the following: 
"7420. DefinitiOTis." 
(B) by striking out: 
"7432. Expenditures; appropriations chargeable." 
. 
and inserting in lieu thereof the following: 
"7432. Naval petroleum reserve special account." 
Approved April 5, 1976. 
42 use 
6231-6246. 
Ante, p. 303. 
Budget estimates, 
presentation to 
Congress. 
Contracts. 
10 use 7433. 
10 use 7434. 
10 use 7435. 
10 use 7436. 
10 use 7438. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-81 Pts. I, 2, 3 (eomm. on Interior and Insular Affairs) and 
No. 94-156 accompanying H.R. 5919 (eomm. on Armed Services) 
and No. 94-942 (eomm. of eonference). 
SENATE REPORTS: No. 94-327 accompanying S. 2173 (Comm. on Armed Services) 
and No. 94-708 (Comm. of eonference). 
CONGRESSIONAL RECORD: 
Vol. 121 (1975): July 8, considered and passed House. 
July 28, S. 2173 consiclered in Senate. 
July 29, considered and passed Senate, amended, in lieu of S. 
2173. 
Vol. 122 (1976): Mar. 24, Senate agreed to conference report. 
Mar. 31, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 12, No. 15 (1976): Apr. 5, Presidential statement.