Order 009: Strategic Petroleum Reserve, Petroleum Levy

[Alejandro Campos]

Transitional Government of the Republic of Alduria

ORDER 009

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Pursuant to my authority as President of the Republic of Alduria, and the provisions of the Constitution of Alduria, I hereby promulgate the following:

SECTION I. Strategic Petroleum Reserve.

1. The Secretary of Interior is authorized to create a Strategic Petroleum Reserve for the storage of up to one (1) billion barrels of petroleum and petroleum products, and adequate physical facilities for the maintenance and secure transport of the same.
   
2. The Secretary of Interior shall, subject to the review and oversight of the Prime Minister and the Cabinet, exercise authority over the development, operation, and maintenance of the Reserve.
   
3. The physical security of the facilities for the Strategic Petroleum Reserve shall be the responsibility of the Secretary of Defense, in coordination with the Minister of the Interior.
   
4. Drawdown and sale of petroleum and petroleum products from the Strategic Petroleum Reserve may not be made unless the President, in consultation with the Prime Minister and the Cabinet, has, by written instrument, determined that drawdown and sale are required by a severe energy supply interruption. Whosoever shall violate this provision shall, after conviction by the court, suffer a fine equivalent to double the market price of the drawn-down petroleum or petroleum products, as applicable, payable to the Strategic Petroleum Reserve Fund, and imprisonment for one to twenty years, at the discretion of the court.
   
5. Drawdown of petroleum and petroleum products from the Strategic Petroleum Reserve for the use of the Aldurian Armed Forces may be made on authority of the President or the Prime Minister, on recommendation of the Secretary of Defense, if a severe energy supply interruption shall be deemed to exist if the Prime Minister determines that—
   
   1. an emergency exists and there is a significant reduction in supply which is of significant scope and duration;
      
   2. a severe increase in the price of petroleum and petroleum products has resulted from such emergency;
      
   3. such price increase is likely to cause a major adverse impact on the national economy.
      
6. The Secretary of Interior shall sell petroleum and petroleum products withdrawn from the Strategic Petroleum Reserve  at public sale to the highest qualified bidder, in the amounts necessary or authorized by the President or the Prime Minister for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to local regulations controlling sales of petroleum products.
   
7. The Secretary of Interior may, prior to actual sale and delivery, cancel in whole or in part any offer to sell as part of any drawdown and sale under this section.
   

SECTION II. Replenishment of the Reserve.
Monies accruing to the Strategic Petroleum Reserve Fund from the drawdown and sale of petroleum and petroleum products from the Strategic Petroleum Reserve shall be used to purchase replenishment stores at a market price beneficial to the Government of Alduria as the President, or Prime Minister, or the Secretary of Interior may direct.

SECTION III. Strategic Petroleum Reserve Fund.
There is hereby created a Fund within the Bank of Alduria to be known as the Strategic Petroleum Reserve Fund, from which all monies from sales of petroleum from the Strategic Petroleum Fund shall accrue, as well as all fines or forfeitures in accordance with this Act.

SECTION IV. Exemption from Tax.
The operations of the Strategic Petroleum Reserve Fund shall be exempt from any tax.

SECTION V. Petroleum Tax.
A tax of twenty (20) Ecus per oil barrel (herein defined as 42 gallons) is hereby levied on all petroleum and petroleum products sourced and produced from within the Republic of Alduria, as well as on all petroleum and petroleum products imported into the Republic of Alduria, with five (5) Ecus of each levy accruing to the Strategic Petroleum Reserve Fund, five (5) Ecus of each levy accruing to the General Fund of the Department of Interior, and the remaining ten (10) Ecus of each levy to the Government of Alduria, provided that two (2) Ecus of each levy accruing to the Government of Alduria shall accrue to the payment of debts accrued by The Government of Alduria. Whosoever shall violate this provision shall, after conviction by the court, suffer a fine equivalent to double the market price of the untaxed or mis-taxed petroleum or petroleum products, as applicable, payable to the Strategic Petroleum Reserve Fund, and imprisonment for one to twenty years, at the discretion of the court.

SECTION VI. Notice to Parliament.
Drawdown and sale of petroleum and petroleum products in accordance with this Act shall be reported to Parliament no later than the next session day after the drawdown order is signed by the President or the Prime Minister.

SECTION VII. Authority of Prime Minister and Secretary of Interior.
Authority is granted to the Prime Minister, as well as the Secretary of Interior, to issue Administrative Directives in order to ensure the proper implementation of this Order.

SECTION VIII. Authority of Secretary of Interior to delegate authority under this Act.
The Secretary of Interior is authorized to delegate tasks or authority vested in his office in accordance with this Act, via an Administrative Directives, to a subordinate office or officer within the Department of Interior. 

SIGNED,

Alejandro Campos
President of the Republic of Alduria.

[Natalia Cotilla]

Countersigned,

Natalia Cotilla
Prime Minister.