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II SÉRIE — NÚMERO 53

CHAPTER m Allocation

ARTICLE 6

1 — Each Participating Country shall take the necessary measures in order that allocation of oil will be carried out pursuant to this chapter and chapter iv.

2 — The Standing Group on Emergency Questions shall, on a continuing basis, review and assess:

Each Participating Country's measures in order that allocation of oil will be carried out pursuant to this chapter and chapter rv;

The effectiveness of measures actually taken by each Participating Country.

3 — The Standing Group on Emergency Questions shall report to the Management Committee, which shall make proposals, as appropriate, to the Governing Board. The Governing Board may, acting by majority, adopt recommendations to Participating Countries.

4 — The Governing Board shall, acting by majority, decide promptly on the practical procedures for the allocation of oil and on the procedures and modalities for the participation of oil companies therein within the framework of this Agreement.

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 obligations 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 rate of oil supplies available to the group during an emergency.

for at least 60 days with no net oil imports. Both consumption and net oil imports shall be reckoned at the average daily level of the previous calendar year.

2 — The Governing Board shall, acting by special majority, not later than 1st July, 1975, decide the date from which the emergency reserve commitment of each Participating Country shall, for the purpose of calculating its supply right referred to in article 7, be deemed to be raised to a level of 90 days. Each Participating Country shall increase its actual level of emergency reserves to 90 days and shall endeavour to do so by the date so decided.

3 — The term ((emergency reserve commitment)) means the emergency reserves equivalent to 60 days of net oil imports as set out in paragraph 1 and, from the date to be decided according to paragraph 2, to 90 days of net oil imports as set out in paragraph 2.

ARTICLE 3

1 — The emergency reserve commitment set out in article 2 may be satisfied by:

Oil stocks;

Fuel switching capacity; Stand-by oil production,

in accordance with the provisions of the annex which forms an integral part of this Agreement.

2 — The Governing Board shall, acting by majority, not later than 1st July, 1975, decide the extent to which the emergency reserve commitment may be satisfied by the elements mentioned in paragraph 1.

ARTICLE 4

1 — The Standing Group on Emergency Questions shall, on a continuing basis, review the effectiveness of the measures taken by each Participating Country to meet its emergency ere serve commitment.

2 — The Standing Group on Emergency Questions shall report to the Management Committee, which shall make proposals, as appropriate, to the Governing Board. The Governing Board may, acting by majority, adopt recommendations to Participating Countries.

CHAPTER II Oemancfi resfrrstoft

ARTICLE 5

1 — Each Participating Country shall at all times have ready a program of contingent oil demand restraint measures enabling it to reduce its rate of final consumption in accordance with chapter rv.

2 — The Standing Group on Emergency Questions shall, on a continuing basis, review and assess:

Each Participating Country's program of demand

restraint measures; The effectiveness of measures actually taken by

each Participating Country.

3 — The Standing Group on Emergency Questions shall report to the Management Committee, which shall make proposals, as appropriate, to the Governing Board. The Governing Board may, acting by majority, adopt recommendations to Participating Countries.