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II SÉRIE — NÚMERO 37

ARTICLE 7

1 —When allocation of oil is carried out pursuant to article 13, 14, or 15, each Participating Country shall have a supply right equal to its permissible consumption less its emergency reserve drawdown obligation.

2 — A Participating Country whose supply right exceeds the sum of its normal domestic production and actual net imports available during an emergency shall have an allocation right which entitles it to additional net imports equal to that excess.

3 — A Participating Country in which the sum of normal domestic production and actual net imports available during an emergency exceeds its supply right shall have an allocation obligation which requires it to supply, directly or indirectly, the quantity of oil equal to that excess to other Participating Countries. This would not preclude any Participating Country from maintaining exports of oil to non-participating countries.

4 — The term ((permissible consumptions means the average daily rate of final consumption allowed when emergency demand restraint at the applicable level has been activated; possible further voluntary demand restraint by any Participating Country shall not affect its allocation right or obligation.

5 — The term ((emergency reserve drawdown obli-gationa means the emergency reserve commitment of any Participating Country divided by the total emergency reserve commitment of the group and multiplied by the group supply shortfall.

6 — The term ((group supply shortfall)) means the shortfall for the group as measured by the aggregate permissible consumption for the group minus the daily irate of oil supplies available to the group during an emergency.

7 — The term «oil supplies available to the groups means:

All crude oil available to the group;

All petroleum products imported from outside the group; and

All finished products and refinery feedstocks which are produced in association with natural gas and crude oil and are available to the group.

8 — The term «final consumptions means total domestic consumption of all finished petroleum products.

ARTICLE 8

1 — When allocation of oil to a Participating Country is carried out pursuant to article 17, that Participating Country shall:

Sustain from its final consumption the reduction in its oil supplies up to a level equal to 7 per cent of its final consumption during the base period;

Have an allocation right equal to the reduction in its oil supplies which results in a (reduction of its final consumption over and above that level.

2 — The obligation to allocate this amount of oil is shared among the other Participating Countries on the basis of their final consumption during the base period.

3 — The Participating Countries may meet their allocation obligations by any measures of their own choosing, including demand restraint measures or use of emergency reserves.

ARTICLE 9

1 — For purposes of satisfying allocation rights and allocation obligations, the following elements will be included:

All crude oil; All petroleum products; All refinery feedstocks; and All finished products produced in association with natural gas and crude oil.

2 — To calculate a Participating Country's allocation right, petroleum products normally imported by that Participating Country, whether from other Participating Countries or from non-participating countries, shall be expressed in crude oil equivalent and treated as though they were imports of crude oil to that Participating Country.

3 — Insofar as possible, normal channels of supply will be maintained as well as the normal supply proportions between crude oil and products and among different categories of crude oil and products.

4 —When allocation takes place, an objective of the Program shall be that available crude oil and products shall, insofar as possible, be shared within the refining and distributing industries as well as between refining and distributing companies in accordance with historical supply patterns.

ARTICLE 10

1 — The objectives of the Program shall include ensuring fair treatment for all Participating Countries and basing the price for allocated oil on the price conditions prevailing for comparable commercial transactions.

2 — Questions relating to the price of oil allocated during an emergency shall be examined by the Standing Group on Emergency Questions.

ARTICLE II

1 — It is not an objective of the Program to seek to increase, in an emergency, the share of world oil supply that the group had under normal market conditions. Historical oil trade patterns should be preserved as far as is reasonable, and due account should be taken of the position of individual non-participating countries.

2 — In order to maintain the principles set out in paragraph 1, the Management Committee shall make proposals, as appropriate, to the Governing Board, which, acting by majority, shall decide on such proposals.