PUBLIC LAW 94-258—APR. 5, 1976 TITLE II—NAVAL PETROLEUM
90 STAT. 307
RESP:RVES
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 military 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 President, dated September 2, 1912; Naval Petroleum Reserve Numbered 2 (Buena Vista), located in Kern County, California, established by Executive order of the President, dated December 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 Petroleum Reserve in Alaska under the jurisdiction of the Secretary of the Interior as provided in the Naval Petroleum Reserves Production 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 related 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 petroleum reserves in his discretion, subject to the provisions of subsection
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