Page:United States Statutes at Large Volume 94 Part 1.djvu/827

 PUBLIC LAW 96-294—JUNE 30, 1980

94 STAT. 777

"(4) The period of any suspension of subsections (c) and (d) under this subsection, and the quantity of any crude oil involved, shall be disregarded in applying the provisions of such subsections for periods following such suspension.". NAVAL PETROLEUM RESERVES

SEC. 804. (a) Section 7430(b) of title 10, United States Code, is amended by striking out "for periods of not more than one year," and inserting at the end thereof the following: "Each sale of the United States share of petroleum shall be for periods of not more than one year, except that a sale of natural gas may be made for a period of more than one year.". (b) Section 7430(k) of title 10, United States Code, is amended to read as follows; "(k)(l) With respect to all or any part of the United States share of petroleum produced from the naval petroleum reserves, the President may direct that the Secretary— "(A) place that petroleum in the Strategic Petroleum Reserve as authorized by sections 151 through 166 of the Energy Policy and Conservation Act (42 U.S.C. 6231-6246); or "(B) exchange, directly or indirectly, that petroleum for other petroleum to be placed in the Strategic Petroleum Reserve under such terms and conditions and by such methods as the Secretary determines to be appropriate, without regard to otherwise applicable Federal procurement statutes and regulations. "(2) The requirements of section 159 of the Energy Policy and Conservation Act (42 U.S.C. 6239) do not apply to actions taken under this subsection.". (c) Section 7430 of title 10, United States Code, is amended by adding at the end thereof the following new subsection: "(1)(1) Notwithstanding any other provision of this chapter (but subject to paragraph (2)), during any period in which the production of petroleum is authorized from Naval Petroleum Reserves Numbered 1, 2, or 3, the Secretary, at the request of the Secretary of Defense, may provide any portion of the United States share of petroleum so produced to the Department of Defense for its use, exchange, or sale in order to meet petroleum product requirements of the Department of Defense. "(2) Petroleum may be provided to the Department of Defense under paragraph (1) either directly or by such exchange as the Secretary deems appropriate. Appropriate reimbursement reasonably reflecting the fair market value shall be provided by the Secretary of Defense for petroleum provided under this subsection. "(3) Any exchange made pursuant to this subsection may be made without regard to otherwise applicable Federal procurement statutes and regulations. "(4) Paragraph (1) does not apply to any petroleum set aside for small refiners under subsection (d) of this section or placed in the Strategic Petroleum Reserve under subsection (k) of this section.". ALLOCATION TO STRATEGIC PETROLEUM RESERVE OP LOWER TIER CRUDE OIL; USE OF FEDERAL ROYALTY OIL

SEC 805. (a)(1) In order to cany out the requirement of the 42 USC 6240 amendment made by section 801 of this Act and to carry out the "°*® policies and objectives established in sections 151 and 160(b)(l) of the

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