WSP05498 - Laserfiche WebLink

Home Browse Search

2-11 ,. . This presidential authority would expire in September 1981. . Congress may reimpose price controls for one 18-month period to debate new legislation if it deems this necessary. In June 1979, the petroleum price decontrol plan went into effect. 34 The schedule for price decontrol is as follows. . As of June 1, 1979 all "new" new oil is decontrolled. Such oil is defined as that produced from onshore areas not producing in 1978 and offshore areas leased after December 31, 1978. . On June 1, 1979, 80 per cent of production from "marginal" wells can be classified as upper tier oil. The category of marginal oil is that produced within the following classifications. 2,000 to 4,000 feet with 20 barrels or less per day output. 4,000 to 6,000 feet with 25 barrels or less per day output. 6,000 to 8,000 feet with 30 barrels or less per day output. 8,000 or more feet with 35 barrels or less per day output. . As of April 1, 1980, the remaining 20 per cent of marginal pro- duction was upgraded to upper tier status. . On June 1, 1979, cumulative deficiencies could be eliminated once again. . As of June 1, 1979, BPCl's could be recalculated and the BPCl's reduced by 9 per cent. BPCls will continue to be reduced by 1.5 per cent per month unti I January 1980, then by 3 per cent per month until fully decontrolled October 1, 1981. . As of January 1, 1980, upper tier price ceilings will increase in equal monthly increments until October 1, 1981 when they are targeted to reach world market prices. This phased decontrol schedule can be modified by the President at any time. 2.2.6 Energy Conservation and Production Act (ECPA) Sometimes referred to as the FEA Extension Act, the ECPA was enacted in August 1976 to extend the agency's authority which had expired the previous July. 35 ECPA also modified EPCA by reexempting stripper well