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<br />f, ". <br /> <br />.. <br />" <br /> <br />were designed to protect small or independent refiners and marketers from <br />competition by large integrated companies that controlled the principal oil <br />supplies. <br />One of the major allocation programs was a supplier/purchaser freeze <br />which went into effect in January 1974.18 Its purpose was to reduce the <br />uncertainty of supply availability for small and independent refiners by <br />insuring that they received volumes of cheaper domestic oil. Generally, <br />petroleum producers could not curtail purchases by a historic customer <br />unless the customer agreed to the curtailment. This obligation applied to <br />the sales from a producing property, not personal or company relationships. <br />Another major program, the buy/sell program,19 was implemented to <br />allocate products and affected refiners rather than producers. The program <br />allowed refiners with crude supplies below the national average to buy <br />from those with supplies above the national average. While not used <br />greatly by small refiners, the tightening of world supplies in late 1978 <br />caused increased interest in the program. Recently, 15 US refiners were <br />required to sell petroleum to small refiners. Eligible amounts are calculated <br />by the Economic Regulatory Administration (ERA)* and published prior to <br />the purchase period. <br />The Standby Crude Oil Allocation Program under EPAA was established <br />in January 197920 and allows speciai standby rules to go into effect when <br />either the President declares a severe petroleum shortage or provisions of <br />the Agreement on International Energy Program (IEP) are activated.** <br />While petroleum producers are not directly affected, the standby rules <br />would allocate refiner's supplies such that each refinery operated at a <br />national utilization rate in case of shortages. Under the I EP agreement, <br /> <br />2-7 <br /> <br /> <br />*1 n 1977, the Economic Regulatory Administration (ERA) replaced the <br />Federal Energy Administration as the agency responsible for the petroleum <br />allocation and pricing programs; see subsection 2.2.7. <br /> <br />**This agreement was signed by 20 oil consuming nations signaling <br />cooperation by. the international community to stabilize oil consumption and <br />reduce the global economic effects of continually rising prices. <br />