Executive Order 6980-B—Order No. 1 Under Act of February 22, 1935

Whereas, by virtue of and pursuant to the authority vested in me by the Act of Congress entitled "An Act to regulate interstate and foreign commerce in petroleum and its products by prohibiting the shipment in such commerce of petroleum and its products produced in violation of state law, and for other purposes", Public No. 14, 74th Congress, approved February 22, 1935, and the Executive Order of the President of the United States No. 6979 (February 28, 1935), I am authorized to prescribe such regulations as I may find necessary or appropriate for the enforcement of the provisions of said Act, and to require certificates of clearance for petroleum and petroleum products, moving or to be moved in interstate commerce from any particular area, whenever I find it necessary or appropriate for the enforcement of the provisions of said Act,

The following regulations are hereby adopted to be effective in any area where I may find them necessary or appropriate for the enforcement of the provisions of the Act above mentioned:

Regulation I

When used in this Order or in subsequent Orders and regulations prescribed pursuant to said Act and Executive Order, or in any forms prescribed thereunder:

Section 1. The term "person" shall include any individual, partnership, corporation or joint stock company.

Section 2. The term "producer" shall include every person having any part in the control or management of any operation by which petroleum is produced from any property. Every person in possession of crude petroleum who refuses to identify the prior owner thereof, from whom he acquired the same, shall be deemed the producer of such petroleum within the meaning of this Order.

Section 3. The term "refiner" shall include every person who has any part in the control or management of any operation by which the physical or chemical characteristics of petroleum or petroleum products arc changed, but exclusive of the operations of passing petroleum through separators to remove gas, placing petroleum in settling tanks to remove basic sediment and water, dehydrating petroleum and generally cleaning and purifying petroleum. Within the term shall be included every person who blends petroleum with any product of petroleum.

Section 4. The term "reclamation plant" shall include every plant operated in the process of reclaiming, treating or washing waste petroleum, wash oil, pit oil, fugitive oil, basic sediment, or tank bottoms.

Section 5. The term 11 Casinghead gasoline plant" shall include every plant or device by the use of which gasoline or natural gasoline or casinghead gasoline (as those terms are commonly understood in the industry), or any of them, is extracted by any process or method from natural gas or casinghead gas, or from any gas liberated from petroleum in the process of refining.

Section 6. The term "pipe line" shall include every line of pipe, however constructed and regardless of length, and all receiving, storage and delivery tanks and facilities used in the operation thereof, by which petroleum or any petroleum product is transported, regardless of whether or not such line of pipe is owned, in whole or in part, by the person producing, refining, processing, manufacturing, purchasing, cleansing, or marketing such petroleum or such petroleum product, or by any or all such persons jointly, or by any other person or combination of persons, except that the term "pipe line" shall not include any line from a well to lease storage, or any line used in actual plant operations, and not used in the receipt or delivery of petroleum or petroleum products. The terms "pipe line system " and "gathering system b are included within the term "pipe line".

Section 7. The term "transporting agency" shall include railroads, pipe lines, gathering systems, tankers, barges, trucks, or any other means of conveyance used for transporting petroleum or petroleum products.

Section 8. The term "storer" shall include every person who places petroleum or any petroleum product in any receptacle and keeps the same in any such receptacle for any period of time longer than is usually required in the ordinary conduct of business to move the same currently into the channels of trade and commerce; but excluding the ordinary working stocks of refiners and transporters by pipe line.

Section 9. The term "petroleum" when used singly and separate and apart from "product" shall include petroleum in its crude form, and the terms "product (or products) of petroleum" or "petroleum product (or products)" shall include any article produced or derived in whole or in part from petroleum or any product thereof by refining, processing, manufacturing or otherwise. Whenever natural gas is produced in conjunction or coincidentally with petroleum, such natural gas and all products derived therefrom shall be considered petroleum products. The terms "oil", "crude oil", and "crude petroleum" shall be considered synonymous with petroleum jn these regulations.

Section 10. The term "barrel of petroleum" means 42 United States gallons of petroleum measured and calculated to net or gross quantities in accordance with the regulations of the state authorities in force at the point of production, or in the absence of such regulations, measured and calculated in the manner generally in use in the industry at such point of production. The term "barrel" as used otherwise in these regulations shall mean 42 United States gallons of the article referred to.

Section 11. The term "contraband oil" means petroleum or petroleum products, any part of the constituent petroleum or petroleum products of which was produced, transported, or withdrawn from storage in excess of the amounts permitted to be produced, transported, or withdrawn from storage under the laws of a state, or under any regulation or order prescribed thereunder by any board, commission, officer, or other duly authorized agency of such state.

Section 12. The term "interstate commerce" shall include commerce between any point in a state and any point outside thereof, or between points within the same state but through any place outside thereof, or from any place in the United States to a foreign country, but only in so far as such commerce takes place within the United States.

Regulation II

The Secretary of the Interior will, whenever the facts in any area render it necessary or appropriate for the enforcement of the provisions of the above-mentioned Act, designate such area (hereinafter sometimes referred to as "designated area") as subject to these regulations, and shall establish a board or boards to issue certificates of clearance in accordance with the provisions of said Act. He will establish such further regulations as may be necessary or appropriate in order to enforce the provisions of the said Act in any such area.

Regulation III

No person shall ship or transport in interstate commerce from any designated area petroleum or petroleum products unless a certificate of clearance covering such petroleum or petroleum products has been issued in conformity with the provisions of this Order.

No person shall ship or transport from any designated area petroleum or petroleum products not covered by a certificate of clearance if such petroleum or petroleum products are commingled with petroleum or petroleum products all or part of which are to be shipped or transported in interstate commerce.

Whenever petroleum or petroleum products shall be shipped or transported from any designated area without a certificate of clearance first having been issued therefor, no person shall ship, reship or transport in or divert into interstate commerce such petroleum or petroleum products, in whole or in part, or any petroleum or petroleum products commingled therewith unless a certificate of clearance covering such petroleum or petroleum products has been issued therefor.

The provisions of this Order shall apply to petroleum and petroleum products transported in interstate commerce in railroad engine tenders or in vessels of all kinds whether as part of the cargoes or for consumption.

The certificates of clearance hereinabove referred to shall be known as "Tenders".

Regulation IV

Each board established in accordance with Regulation II, hereinafter referred to as "boards", shall consist of one or more persons who shall be appointed from time to time by the Secretary of the Interior and who shall serve at his pleasure. Whenever any board consists of more than one person, such board may designate one or more of its members to act for the board. Each board is charged with the duty of hearing and investigating all applications for tenders prescribed by this Order and of determining as a matter of fact whether the petroleum and petroleum products for which a tender is requested do or do not constitute contraband oil. In the case of applications for tenders covering petroleum or petroleum products not produced, refined, processed or manufactured on the date application is made, each board is charged with the duty of determining whether or not facts have been presented showing that the petroleum or petroleum products to be transported will or will not constitute contraband oil as above defined if the terms of the application are fulfilled. Each board is further charged with the duty of approving such applications for tenders if it finds that the petroleum or petroleum products are not or will' not constitute contraband oil. No tender shall be approved until application for approval has been presented on a form approved by the Secretary of the Interior, nor unless the reports hereinafter required have been made and are in order, nor until complete information has been furnished by the applicant enabling the Board to calculate and ascertain the true facts concerning the petroleum or petroleum products covered by the application.

Production of books and records of the applicant relative to an application for a tender may be required by any board for inspection before approval thereof, and any board may require the submission of specific information relative to an application in the form of sworn statements or otherwise, and may itself or through its agents examine any properties and facilities which it deems may afford information necessary to pass upon an application.

Each board is authorized to make regulations governing its procedure. The members of each board shall have power to administer oaths or affirmations. No tender shall be approved except after hearing held not less than twelve hours subsequent to the filing of the application therefor and after notice has been given by posting a brief description of the application on a bulletin board at or near the place of hearing. Each board is authorized, in cases of emergency, to waive any of the formal requirements of this Order, provided that the substance thereof is maintained, and provided that notice of such waiver be given at the next succeeding hearing held by the board.

Regulation V

An application for approval of a tender may be made to a board where the ultimate destination of the movement of petroleum or petroleum products is unknown at the time of application, and application for approval of a tender may further be made, at the option of the applicant, even though the immediate movement of the petroleum or petroleum products is intrastate, if the applicant contemplates that in the future such petroleum or petroleum products, or products derived from such petroleum or petroleum products will be moved in interstate or foreign commerce.

Regulation VI

Where application is made for approval of a tender covering petroleum commingled with petroleum which is not shown to have been produced, transported or withdrawn from storage within the amounts permitted by state law, or regulations or orders prescribed thereunder, such tender shall not be approved, nor shall a tender covering any product of such commingled petroleum be approved; and where application is made for approval of a tender covering any petroleum product commingled with a petroleum product derived from petroleum which is not shown to have been produced, transported or withdrawn from storage within the amounts permitted by state law, or regulations or orders prescribed thereunder, or commingled with petroleum which is not shown to have been so produced, transported or withdrawn from storage, such tender shall not be approved.

Regulation VII

Any person transporting petroleum or any petroleum product covered by a tender shall endorse on the back of such tender a sworn return showing the quantity of petroleum or petroleum products actually transported, using the form on the reverse side of the copies designated "Tender Original" and "Tender Return" for this purpose and shall deliver in person or by mail the copy designated "Tender Return" to the board issuing the tender. Said delivery in the case of pipe lines shall be made within ten days, and in the case of other transporting agencies, within two days after the date of the last shipment made under said tender, or within the same periods of time after the expiration of the tender, whichever event first occurs. Said return shall be signed and sworn to by a duly authorized agent of the pipe fine or other transporting agency.

Regulation VIII

The first transporting agency, other than a pipe line, transporting petroleum or petroleum products from any designated area in interstate commerce shall stamp on the shipping papers the following: "This shipment is covered by Tender No. ____, issued by ____________ on the ___ day of _______, 193_", (the number, the title of the board and the date shall be filled in to identify the Tender). Pipe lines shall, in lieu of such stamp on the shipping papers, notify the consignee in writing within three days after the date of delivery to such consignee of the date, the title of the board, the number of the tender and the amount and kind of petroleum or petroleum products delivered thereunder. No person transporting petroleum or any petroleum product shall receive any more of the commodity than is covered by the tender, and no such person shall receive any different commodity than is described therein.

Regulation IX

Every transporting agency, other than a pipe line, transporting petroleum or any petroleum product from any designated area to a destination within the same state, which petroleum or petroleum product is not covered by a tender, shall stamp on the shipping papers a notation that the petroleum or petroleum product was transported from the designated area and that said petroleum or petroleum product and any petroleum or petroleum product commingled therewith may not be shipped, reshipped or transported in or diverted into interstate commerce unless an approved tender shall first be obtained. Such notation shall appear on the shipping papers covering every subsequent shipment of such petroleum or petroleum product within the state. Every pipe line transporting petroleum or any petroleum product from any designated area to a destination within the same state, which petroleum or petroleum product is not covered by a tender, shall notify in writing the consignee at or before the time of delivery to him that said petroleum or petroleum product was transported from the designated area, and that said petroleum or petroleum product and any petroleum or petroleum product commingled therewith may not be shipped, reshipped or transported in or diverted into interstate commerce unless an approved tender shall first be obtained.

Regulation X

All persons producing, refining, processing, manufacturing, transporting, withdrawing from storage or otherwise handling petroleum or any petroleum product in any designated area shall permit any person or persons authorized by me or any board to enter upon their properties, plants and facilities, and to examine all the books and records kept or required to be kept in accordance with this Order, and all other books, papers, records, vouchers, run-tickets, bills of lading, way bills, charges, memoranda or other documents which are used by them in connection with producing, refining, processing, manufacturing, transporting, withdrawing from storage or otherwise handling petroleum or any petroleum product, and to inspect such plants, facilities and properties, and to gauge tanks, and to examine wells, pipe lines, gathering systems, flow lines, pipe connections, storage tanks, loading racks, separators, pumps, meters or other measuring devices, and any other equipment or instruments.

Regulation XI

Every producer and refiner in any designated area shall accurately gauge and measure all petroleum and petroleum products before any part thereof leaves his possession or control. No means or device which prevents or hinders such accurate measurement shall be used. Complete and accurate records of all such measurements shall be kept up to date and preserved, and shall be open to the inspection of any person authorized by me or any board.

Regulation XII

From the effective date of this Order the following records shall be kept and preserved accurately and completely showing the following facts with respe< t to producing, refining, processing, manufacturing, transporting, withdrawing from storage or otherwise handling petroleum or petroleum products in any designated area:

A. By Producers:

(1) The location of the producing properties, the number and location of wells thereon, and the allowable production for each property and well as prescribed by the proper state agency.

(2) The names and addresses of all persons having any interest in or title to the petroleum atlhe time of its production, including those owning royalty or overriding royalty interests.

(3) An opening and closing inventory of the crude petroleum on hand each 24 hour day.

(4) The daily production in barrels of petroleum produced from each lease and well (estimated as to wells which are produced into common tankage and of which no separate gauge is made) with a notation of the allowance made for basic sediment and water, and the tanks, identified by number and location into which the petroleum is run.

(5) The amount of petroleum consumed upon each property daily.

(6) A daily record of all deliveries of petroleum or petroleum products, showing the names and places of business of all persons to whom such petroleum or petroleum products are delivered, whether purchasers, consignees or transporting agencies, the quantity involved in each delivery, transportation or other disposition, the identity of the means of transportation by which the petroleum or products are removed, and the identifying numbers of State and Federal tenders.

(7) True and complete copies of all reports, communications and diagrams filed or required to be filed under this Order.

(8) Such other records as may now be required under the rules and regulations of other governmental agencies, State or Federal, which supervise, regulate or tax the production of petroleum.

B. By every purchaser, refiner, storer, shipper or consignor of petroleum or petroleum products, by every casinghead gasoline plant, and by every person dealing in petroleum or petroleum products as a factor, broker, buyer or seller:

(1) An opening and closing inventory of petroleum and petroleum products on hand each 24 hour day.

(2) The daily receipts of petroleum and the petroleum products showing the amount received, the place and date of each receipt, the tanks identified by location and number into which received, the names and addresses of all producers or other persons from whom the crude petroleum and the petroleum products were received, a description identifying the transporting agency by which received, and the identifying numbers of State and Federal tenders under which received.

(3) The amount of petroleum and petroleum products used or otherwise disposed of daily showing the amount run to stills and to cracking units and the amoimt and typo of petroleum products refined, processed or manufactured.

(4) A daily record of all deliveries of petroleum and petroleum products including the names and addresses of purchasers and a description identifying the transporting agency delivering the same, and the identifying numbers of State and Federal tenders under which delivered.

(5) True and complete copies of all reports, communications, and diagrams filed or required to be filed under this Order.

(6) Such other records as may now be required under the rules and regulations of other governmental agencies, State or Federal, which supervise, regulate or tax the purchasing, refining, storing, shipping or consigning or otherwise dealing in as a factor, broker, buyer or seller of petroleum and petroleum products.

C. By every person operating a reclamation plant.

(1) An opening and closing inventory of all petroleum and petroleum products on hand each 24 hour day.

(2) The number of barrels of each kind of petroleum and petroleum products which came into the possession of such plant daily, the name and address of each person from whom possession was acquired, the location from which the petroleum and petroleum products were acquired, the quantities acquired from each prior possessor and from each location, a description identifying the transporting agency by which such petroleum and petroleum products were acquired, and the numbers identifying the State and Federal tenders under which acquired. In case any petroleum or petroleum product is picked up or reclaimed by such plant from any creek, river, stream or the bed thereof, such record shall also contain information as to the apparent source of the petroleum or petroleum product before it went into such creek, river, stream or the bed thereof.

(3) The number of barrels reclaimed by such plant daily and the disposition thereof showing the names and addresses of purchasers, a description identifying the transporting agency used in making delivery, and the identifying numbers of State and Federal tenders.

(4) True and complete copies of all reports, communications and diagrams filed or required to be filed under this Order.

(5) Such other records as may now be required under the rules and regulations of all other governmental agencies, State or Federal, which supervise, regulate or tax the reclaiming or handling of petroleum or petroleum products.

D. By Pipe Lines:

(1) An opening and closing inventory including overages of crude petroleum and petroleum products on hand each 24 hour day.

(2) The daily receipts of all petroleum and petroleum products showing the kind, grade and quantity received, the names and addresses of the consignors, the names and addresses of the consignees, the points of origin and destination, and the identifying numbers of State and Federal tenders covering the same.

(3) In case of the first transporting pipe line, and where possible in cases of subsequent transporting pipe lines, the location of the properties where the petroleum or petroleum products were produced, refined, processed or manufactured, the names and addresses of persons removing the petroleum or petroleum products from the properties where produced, refined, processed or manufactured, and a description identifying the transporting agency used in making delivery from such properties.

(4) A record of all shipments of petroleum or petroleum products diverted prior to reaching the original point of destination or stopped in the course of transportation, showing the disposition thereof.

(5) Copies of all run-tickets, way bills, division and transfer orders and other documents used in the transportation of petroleum or petroleum products.

(6) True and complete copies of all reports, communications and diagrams filed or required to be filed under this Order.

(7) Such other records as may now be required under the rules or regulations of other governmental agencies, State or Federal, which supervise, regulate or tax the transportation of petroleum or petroleum products.

E. By transporting agencies, other than pipe lines:

(1) The daily shipments of all petroleum and petroleum products showing the land, grade and quantity transported, the names and addresses of the consignors, the names and addresses of the consignees, the points of origin and destination, the identifying numbers of State and Federal tenders, and in the case of railroads the car initials and numbers identifying the various shipments.

(2) A record of all shipments of petroleum or petroleum products diverted prior to reaching the original point of destination, or stopped in the course of transportation, showing the disposition thereof.

(3) Copies of all way bills, bills of lading and other documents used in the transportation of petroleum or petroleum products.

(4) True and complete copies of all reports and communications filed or required to be filed under this Order.

(5) Such other records as may now be required under the rules or regulations of other governmental agencies, State or Federal, which supervise, regulate, or tax the transportation of petroleum or petroleum products.

The records required by this Regulation to be kept and preserved shall be kept currently as the transactions involved occur. Such records prescribed in subparagraphs (1), (3), (4), (5), and (G) of sub-division A of this Regulation shall be kept on the lease or property to which they relate, or shall be kept in the field office or field headquarters from which the operations on such properties are conducted. Such records prescribed under sub-paragraphs (1), (2), (3), and (4) of sub-division B, (1), (2) and (3) of sub-division C, and (1), (2), (3) and (5) of sub-division D of this Regulation shall be kept at the field office or field headquarters from which the operations involved are conducted. Such records prescribed under sub-paragraphs (1) and (3) of sub-division E of this Regulation shall be kept at the freight office where the shipping papers for any shipment originate.

Regulation XIII

No transporting agency transporting petroleum or petroleum products from any designated area in interstate commerce shall accept for shipment any petroleum or any petroleum product unless the billing and other records of transportation covering such shipment truly and accurately describe by its proper and generally accepted name the commodity so shipped. Every transporting agency shall be held responsible for the truth of its records, way bills, bills of lading, division or transfer orders and other papers relating to such shipment, and shall be answerable as for a violation of these Regulations for each false billing of any such petroleum or petroleum product.

Regulation XIV

Each producer, refiner, reclamation plant, casinghead gasoline plant, pipe line, and storer of petroleum or petroleum products in any designated area shall file with the Board for said area monthly reports on forms approved by the Secretary of the Interior. Each report on such forms shall be subscribed and sworn to by the person required to file the same, using the form of affidavit therein contained, and the person required to file the report must make therein a full, truthful and complete disclosure of all the information required on the form and necessary to the full use thereof.

Regulation XV

Each transporting agency, other than pipe lines, transporting petroleum or petroleum products in or from any designated area shall file daily with the Board for said area copies of all way bills, or other papers fulfilling the functions thereof, covering the movement during the preceding day of petroleum or petroleum products in or from said area, both interstate and intrastate. Such way bills or other papers shall be attached to an affidavit executed by a duly authorized agent of the transporting agency stating that the way bills or other papers cover all shipments of petroleum or petroleum products moved by the transporting agency in or from said area during the preceding day.

Regulation XVI

Every producer, refiner, pipe line, gathering system, reclamation plant and casinghead gasoline plant within any designated area shall keep and maintain in the office of the Board for said area a diagram or diagrams which shall accurately and completely show to scale, so far as is applicable to that particular business the location of each lease, the location and identifying number of each well, the location, capacity and identifying numbers of all tanks, the location and size of all pipe lines, flow lines and gathering systems operated by it, and the location and sizes of all pipe lines, flow lines, gathering systems and other outlets attached to its properties, and every method by which oil is delivered to and from its properties. Such diagrams shall be brought up to date at least monthly in order to show any change taking place in the information shown thereon, either by the filing of a new diagram or by corrections made upon the diagram on file.

Regulation XVII

When any affidavit or other sworn statement is required by this Order, or by Orders promulgated pursuant hereto or to said Act or Executive Order, to be made or filed by any person, such affidavit or sworn statement must be made or filed by the real person in interest owning, producing, refining, processing, manufacturing, transporting, withdrawing from storage or otherwise handling petroleum or petroleum products involved in the transaction or transactions which are the subject of such affidavit or sworn statement; provided, however, that such affidavit or sworn statement may be made or filed by a duly authorized agent of such real party in interest when proof of his authorization has been filed with the Board or other agency with which the affidavit or sworn statement is to be filed on or before the date of filing said affidavit or sworn statement.

Regulation XVIII

If any provision of this Order or any clause, sentence or part hereof is held unauthorized or invalid for any reason, or the application thereof to any person, circumstance, commodity or class of transactions with respect to any commodity be held unauthorized or invalid for any reason, the validity of the remainder of this Order and the application of such provisions to other persons, circumstances, commodities and classes of transactions shall not be affected thereby.

Approved, prescribed and promulgated this 1 day of March, 1935.

HAROLD L. ICKES
     Secretary of the Interior.

Approved
     March 1^st 1935

FRANKLIN D. ROOSEVELT