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<br />must be supplied 100 per cent of their current demand. Priority 2 cus- <br />tomers may receive 100 per cent of their current demand adjusted propor- <br />tionately for reductions in a seller's supplies. This Priority 2 category <br />includes emergency and passenger services, santitation needs, energy <br />production, start-up, testing, and flame stabilization for power plants, <br />residential heating (minimum of 90 per cent share), and plant protection. <br />All other users receive 100 per cent of their base period usage subject to <br />their supplier's prorated reductions.45 <br />As of June 1, 1976 residual fuel oils were exempted from allocation <br />controls.*46 Rules in effect prior to this date may be reimposed. Like <br />gasoline and propane, deliveries of these products are keyed to base <br />period usage volumes or current demand. <br />Middle distillate fuels, which include No.1 and No.2 heating oil, <br />No. l-D and No. 2-D diesel fuel, and kerosene were exempted on July 1, <br />1976. Rules governing these products have generally been suspended, <br />although standby plans and state set-aside programs remain in effect. 47 <br />Allocation rules applicable to butane and natural gasoline went into <br />standby status on January 1, 1980.48 As with other products, these are <br />subject to ERA requirements for supplier/purchaser relationships, frac- <br />tional allocation determinations, and reporting and record keeping. <br /> <br /> <br />2.2.9 Naval Petroleum Reserves Production Act of 1976 <br />Certain Federal oil-containing lands have been under the jurisdiction <br />of the Department of Navy for use during national emergencies. In an <br />effort to hold down still rising imports, Congress authorized the Navy to <br />begin producing oil at maximum efficient rates at NPR-l, 2, and 3, located <br />at Elk Hills and Buena Vista, California and Teapot Dome, Wyoming.49 <br />Production is to continue until 1982 and for an additional three years, if <br />the President orders. <br /> <br />*Includes Nos. 4, 5, and 6 fuel oils, No. 4-0 and heavy diesel fuel, <br />Navy Special Fuel Oil, Bunker C and other fuels having a 50 per cent boil- <br />ing point over 700 F. <br /> <br />2-16 <br />