11 DE ABRIL DE 1981

2137

7 — The term «oil supplies available to the groupn 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 consumption)) 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 ot 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 imparted 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 ac cordance 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 11

1 — It is not an objective of the Program to seek to increase, in an emergency, the share of world ofl 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 nonpartioipating 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.

CHAPTER IV Activation

ARTICLE 12

Whenever the group as a whole or any Participating Country sustains or can reasonably be expected to sustain a reduction in its oil supplies, the emergency measures, which are the mandatory demand restraint referred to in chapter n and the allocation of available oil referred to in chapter in, shall be activated in accordance with this chapter.

ARTICLE 13

Whenever the group sustains or can reasonably be expected to sustain a reduction in the daily rate of its oil supplies at least equal to 7 per cent of the average daily rate of its final consumption during the base period, each Participating Country shall implement demand restraint measures sufficient to reduce its final consumption by an amount equal to 7 per cent of its final consumption during the base period, and allocation of available oil among the Participating Countries shall take place in accordance with articles 7, 9, 10 and 11.

ARTICLE 14

Whenever the group sustains or can reasonably be expected to sustain a reduction in the daily rate of its oil supplies at least equal to 12 per cent of the average daily rate of its final consumption during the base period, each Participating Country shall implement demand restraint measures sufficient to reduce its final consumption by an amount equal to 10 per cent of its final consumption during the base period, and allocation of available oil among the Participating Countries shall take place in accordance with articles 7, 9, 10 and 11.