Document 71wQ7kwjbr371k5g5Z2m312kE

-ROM ro subject Frederick M. Toca Dr. R. T. Cheng RESULTS OF ANALYSIS FOR SAMPLES COLLECTED IN TAIWAN (CORRECTIONS) at Health Sciences Lab at San Diego DATE April 24, 1974 REFERENCE 10001 --10--1 Attached is a correction of the table on results of analysis for metals submitted in the subject report. On the original report. Sample No. HSL-002-28H was shown to n nn?A__mrj/m3 ipari. Tins was, incorrect. It should have been shown to contain.0.0 mn/m-3 nf IfH Sample No. H SI -.00 9- 9ft K_ " hmi 1 ri hax/P c h nwn_ ^ 00 24 mo / m J of 1 eaa (see attached table). A review of the physical properties of lead stearate showed that this compound is insoluble in water and. only soluble in hot alcohol solutions. Therefore, the results for lead analysis are incorrect, since this compound would not have been desolved by the aqueous acid solution used- to prepare the samples for atomic absorption. After completely thinking through our telephone conversation, I would offer the following suggestions with regard to the vinyl chloride monomer samples that we analyzed: 1. It is possible that the vinyl chloride on the samples desorbed during shipment. 2. It is possible that other materials with a higher degree of selective adsorption for activated charcoal, although present in smaller concentrations, occupied the charcoal, thereby preventing the adsorption of vinyl chloride. W.61 S Z ^ / CUSAROSS 0043? J `V ,, MM date 4-24-74 from Frederick M. TocaTO Dr- R- T. Cheng SHEET NO 2 3. Since many of these samples contained several peaks which we were unable to identify, I would suggest that these peaks were the result of intermediate products of the reaction and/or resulted from incompletely reacted vinyl chloride. In conclusion, I would suggest that you carefully review all of the data and base your report on your original f i ndings. Attachment FMT:jks cc w/atts: RLG HER./ Frederick M. Toca a subsidiary or golf oil. corporation CUSAROSS OO439 %'- RESULTS OF ANALYSIS FOR METALS TAIWAN (CORRECTED COPY) MARCH, 1974 HSL Sample No. HSL-002-86A 86B 86C 86D 86E 86F 86G 86H Field Sample No. HSL-002-28E 28F 28H 28K 28L 28Q 28R 28X Date Col 1ected 3-8-74 3-8-74 3-8-74 3-8-74 3-8-74 3-8-74 3-8-74 3-8-74 *Concentration in mg/m^ Lead Cadmium Total Dust 0.0091 NC 0 0.0024 0 0.0009 0.0011 0.0020 NC 11.58 0 24.11 0 NWC 0 151.45 0 6.09 NC 29.86 0 31 . 72 0 83.03 Most of these samples were overloaded, therefore materials may have been lost from the filters before analysis. NC = Not enough to measure. NWC = No weight change. CUSAROSS 00440 / j2S42 is RULES AND REGULATIONS Title 29--Labor 50 ppm, in order to assess in a more CHAPTER XVII^OCCUPATIONAl~SAETY -_AND HEALTH ADMINISTRATION. D7~ PARTWENTOF LABOR definitive way whether that level of ex posure produces tumors in animals. Data reported by Torkelson, Oyen and Rowe (American Industrial Hygiene Associa 3PART 1910--OCCUPATIONAL SAFETY. --- .NDIHEALTH-STANDARDS tion J 22:354-361 (1961)) Indicate that exposure to VC at concentrations of 50 rary standard. In- a telegram to the As sistant Secretary of Labor, received on or about March 14, 1974, the President of the United Rubber Workers Interna tional Union urged the establishment of an emergency temporary standard for VC. During the hearing of February 15, ^ EmergencxIemfior.ary.Stajida.rd.far - ' *r-- ' ''hforir1- ppm failed to induce tumors In rats, 1974, the Industrial Union Department! hamsters, rabbits, and dogs. AFL-CIO, and the United Rubber Work 1. Background. Vinyl chloride (chloroethene). Chemical Abstracts Service Registry No. 75015, Is a synthetic chemi cal made by oxychlorinatlon of ethylene or by hydrochlorination of acetylene. It is the parent compound of a series of thermoplastic resin polymers and co polymers which are widely used for con tainers, wrapping tissues, electrical in sulation, pipe, conduit and a variety of other products. Vinyl chloride has been made commercially in this country since 1939 and present production Is In excess of seven hillion pounds per year. Vinyl chloride (VC) is a gas at am bient temperature and pressure ana Is a chlorinated hydrocarbon which has mod erate liver toxicity. The present standard sets a ceiling value of 500 parts per million (ppm) (29 CFR 1910.93). On January 22, 1974, the Occupational Safety and Health Administration was informed by the National Institute for Occupational Safety and Health (NIOSH) that the B. P. Goodrich Chem ical Company reported that deaths of several of Its employees from a rare form of liver cancer may have been occupa tionally related. As a result of this notifi cation, and after consultation with NIOSH and a Joint inspection of the plant by OSHA, NIOSH, and the Ken tucky Department of Labor, a fact-find ing hearing on possible hazards involved with the manufacture and use of both VC and polyvinyl chloride was an nounced on January 30, 1974 (39 FR 3874), and held on February 15, 1974, The employees of the B. F. Goodrich Chemical Company who died from an giosarcoma of the liver had an average exposure of approximately 19 years to vinyl chloride, at unknown concentra tions, and variable exposures to other volatile chemicals. (TR 93). Some em ployees of Union Carbide Company and Goodyear Company are also reported in a post-hearing comment from NIOSH dated March 11, 1974, to have had ex posure to vinyl chloride and to have died from angiosarcoma of the liver. Finally, autopsies of four deceased employees re vealed that liver angiosarcoma tumors were histologically indistinguishable from the angiosarcoma tumors observed in Professor Maitoni's experimental ani mals. It Is concluded therefore, that vinyl chloride Is carcinogenic for hu mans. We therefore conclude that the present standard-ToriWC shoulcTbe'To'wered from aj;eTnf(g-of'50Q ppm'to~ a ceiling of 50 ~ppm~f6r~'the~fonowlng reasons: -* (nj in~ligh tonhe' evidence referred to above including the Maltoni experi ments demonstrating that VC is carcino genic in animals at 250 ppm, we conclude that VC must be considered carcino genic in man at the same level; (b) Although Professor Maltoni did not Induce tumors in his experimental animals at an exposure concentration of 50 ppm, these data do not support the concept that occupational exposure of employees to concentrations of 50 ppm throughout their working lifetime would be without detrimental health effects; 2. Carcinogenicity of VC. Information (c) The question whether safe levels produced at the hearing demonstrated of exposure to carcinogens exist for hu that exposure of laboratory animals mans and, if so, what such levels would (mostly Sprague-Dawley rats) to VC by be, is the subject of continuing scientific Inhalation at and below the current deliberation. In the case of VC, Profes OSHA standard of 500 ppm induced sor Maltoni did not observe tumors in tumors, Including angiosarcomas of the his animals at exposure concentrations liver. Professor Cesare Maltoni, of the of 50 ppm. In addition, Torkelson. Oyen, Instituto dl Oncologla, Bologna, Italy, re and Rowe found that exposure to con ported on a series of experiments on the centrations of 50 ppm of VC failed to in effect of exposure of rats, mice, and duce tumors in rats, hamsters, rabbits, hamsters to VC at concentrations of 10.- and dogs. Accordingly, there is insuf 000; 6,000; 2,500; 500; 250; and 50 ppm ficient evidence at this time to conclude for varying periods of time (TR 43-63). that VC at concentrations of 50 ppm or Some of the experiments have been con below poses a grave danger to humans. cluded, and others are still ongoing. The fd) The emergency temporary stand experimental results so far reported are ard adopted represents a substantial re that tumors have been observed In duction in the permissible level of expo groups of animals exposed to VC at con sure and, in our practical judgment, is centrations as low as 250 ppm. No tumors the lowest level that can be complied have been observed in the group of ani with immediately; and mals exposed to VC at a concentration i e> This standard will be in effect for of 50 ppm. It also appears so far that a period of no longer than six months, the total number of tumors, as well as during which time the whole question of the numbers of angiosarcomas of the possible safe exposure of humans to VC liver, decrease as the concentrations of will be reconsidered more fully and in VC are reduced to 250 ppm. Finally, the light of more information, Including ers International Union made a joint petition for an emergency temporary standard for VC (TR 141-148), which was also joined by the Oil, Chemical and Atomic Workers International Union fTR 37). At the same hearing, several participants urged, on the other hand, a regular rulemaking proceeding as the most suitable for the orderly develop ment of relevant Information (TR 112 180). The petitions for an emergency tem porary standard specified in detail the contents of the standard requested. In substance, the request is to issue a com prehensive fully-deveioped standard based on the recommendations of the Standards Advisory Committee on Car cinogens submitted to the Assistant Sec retary of Labor on or about August 27, 1973. The recommendations are farranging, and cover special categories of operations, signs and labels, medical sur veillance, reporting, etc., including a per mit system for the use of a carcinogen. We agree that an emergency tempo rary standard Is necessary: we cannot say on the basis of the information developed so far that a comprehensive standard, such as the one requested, is either neces sary or even desirable. It has been de cided to promulgate a standard contain ing only those essential provisions which are deemed necessary to provide protec tion to employees from grave danger until a regular rulemaking proceeding in accordance with sections 6 (b) and (c> of the Act can be concluded. The rea sons for a decision to establish a ceiling value of 50 ppm have already been stated. A decision on other possible, ap propriate provisions Is best mads after consideration of all relevant data end views that interested persons may sub mit during the proceeding soon to be Initiated. With respect to arguments in opposi tion to issuance of an emergency tem porary standard, the concern and efforts of several companies participating at the hearing for the protection of their em ployees are recognized. It may also be that some employers in some plants have fully complied with the interim controls recommended by NIOSH on January 30, 1974. There is, however, reason io belie, e that employees are 'currently being ex posed to VC at concentrations well aoove 50 ppin. This was asserted several tnr.r-s at the hearing., and not seriously ques tioned. Moreover, a report, dated March 1974, of a survey by the staff of the Office of Standards Development, OSHA. of several facilities manufacturing VC and polyvinyl chloride revealed concentra tions for some Job classifications as high another experiment by Professor Mal experiments which are under way at this as 229 ppm. Therefore, a regulation is toni is underway Involving the exposure time (TR 47, 49. 71-74). considered necessary to provide, Immedi of 300 animals to VC at concentrations of 3. Petitions for an emergency tempo ately, adequate protection to workers cx- FEDERAt REGISTER, VOL 39, NO. 67--FRIDAr, APRIL S, 1974 CUSAROSS 00441 / RULES AND REGULATIONS (Docket Ho. Fl-236] PART 1914--AREAS ELIGIBLE FOR THE SALE OF INSURANCE Status of Participating Communities Section 1914.4 of Part 1914 of Subchapter B of Chapter X of Title 24 of the Code of Federal Regulations Is amended by adding In alphabetical sequence a new entry to the table. In this entry, a complete chronology of effective dates appears for each listed community. Each date appearing In the last column of the table Is followed by a designation which Indicates whether the date signifies the effective date of the authorization of the sale of flood insurance in the area under the emer gency or the regular flood insurance program. The entry reads as follows: S 1914.4 Status of participating communities. * Stats County Location Map No. State map repository Local map repository F.ffcctive dalo of {uithorifa(ii<n of sale of flood insurance for area Colorado.---- Huerfano.,........ ... Unincorporated y-........ areas. Connecticut,. Hartford........... ___Enfield, town of.,.T______ .... Illinois....-.-.r--- Carroll_____ areas. ... Savanna, city of.............. . village of. borough of. North Dakota... Morton............ .... Mandan, city of....**............. Pennsylvania... Berks.............. ... South Heidelberg, .......___ township of. Do.............. Lackawanna**. ... Jessup, borough of. borough of. York township of. Virginia.,-.......... Brunswick.. .* ... Unincorporated.. . .............. areas. Do................. Jlanover___ ............ emergency; ........ ........ Ho, Do Do. (National Flood Insurance Act of 1968 (title XIII ol the Housing and Urban Development Act of 1968), effective Jan, 28, 1969 (33 FR 178ni, Nov. 28, 1968), as amended (secs. 4Q8--110, Pub. L. 91-152. Dec. 24, 1969) (43 U.S.C. 4001-4127); and Secretary's delegation of authority to Federal Insurance Administrator. 34 Fit 2680, Feb. 27. 1969) Issued: March 27,1974. I FR DOC.74-7778 Filed 4-4-74;8:45 am] Georgs K. Bernstein, Federal Insurance Administrator. / FEDERAL REGISTER, VOL 39, NO. 67--FRIDAY, APRIL 5, 1974 I CUSAROSS 00442 RULES AND REGULATIONS 12343 /VC. Also, the eight-hour, time<1 average standard suggested by /participants at the hearing (see. %'Vtg jstance, TR 178), has been rejected. March 1974 report of the survey re- * ted that several kinds of work or op tions are of short duration. Loading unloading of a tank car may require iproximately 15 minutes. The cleaning 2 a reactor may require approximately , ' ,ialf an hour. An eight-hour, tirne' weighted average standard would permit exposure to VC at concentrations of 400 ppm for one hour. Such upward excur sions, several times the 50 ppm level, can not be permitted to occur. 4. The standard. The standard set out below contains only the requirements deemed necessary to provide protection before the conclusion of the rulemaking proceeding to be commenced shortly. Because exposure to VC is hazardous, 'and because such exposure can occur in the processes of synthesizing or polym erizing of VC or in the handling of VC polymers or copolymers which contain absorbed VC, this standard applies to all such processes and to the handling, re acting, manufacturing, processing, re leasing, repackaging, or storage of any of these materials. The monitoring require ments serve two purposes, to trigger into operation a compliance program and to check the effectiveness of the program. Also, engineering controls are favored for compliance, and respirators are intended to provide protection until such controls can be installed or in cases where such controls are not feasible. Accordingly, by reason of the foregoing and on the basis of the record of the hearing of February 15, 1974, with ex hibits, the written submissions received before the hearing pursuant to the notice of the hearing, the post-hearing written submissions by the participants at the hearing, the March 1974 report of a fact finding survey recommendations received from NIOSH, and the other data referred to herein, it is found (1) that VC at con centrations in excess of 50 ppm is physi cally harmful and carcinogenic; (2) that exposure to VC at concentrations in ex cess of a concentration of 50 ppm poses a grave danger to employees; (3> that em ployees are presently exposed to VC at concentrations in excess of 50 ppm; and (4) that the emergency temporary stand ard set out below is necessary to provide immediate protection to employees from such danger. Pursuant to section 6(c) of the Occu pational Safety and Health Act of 1970, a proceeding will commence shortly in accordance with section G(b) of the Act, In which the emergency temporary standard will serve as a proposed rule, together with other subsidiary rules. As soon as possible a draft environmental Impact statement will be filed with the President's Council on Environmental Quality, and copies will be provided to other appropriate Federal agencies for their comments. Pursuant to sections G(c) and 8(c) (3) of the Willlams-Steiger Occupational Safety and Health Act of 1970 (84 stat. 1595. 1599; (29 U.S.C. 655, 657) ), and Secretary of Labor's Order No. 12-71 (36 FR 8754), 29 CFR Part 1910 is amended by adding thereto a new lD10.93q to read as set forth below. In addition, pur suant to section 4(b) (2) of the Act (84 Stat. 1592; (29 U.S.C. 653)). the stand ard in the new 5 1910.93q Is determined to be more effective than the corre sponding standards now in Subpart B of Part 1910, in Parts 1915. 1916. 1917, 1918, and 1926 of title 29, Code of Federal Reg ulations, and in Part 50-204 of Title 41 of the Code of Federal Regulations, There fore, these corresponding standards are superseded by the new standard in 1910.93q. 1. In 29 CFR Part 1910, 1910.93 is amended by deleting from Table G-l the line: "* * * C Vinyl chloride * * * 500 * * 1300". 2. Part 1910 of Title 29 of the Code of Federal Regulations is amended by adding thereto a new 5 1910.93q to read as follows; 1910.93q Viml chloride. (a) Scope and application. (1) This section applies to any area or operation in which vinyl chloride (chloroethene), Chemical Abstracts Service Registry Number 75015. is manufactured, reacted, handled, processed, released, repacked, or stored, (2) This section does not apply to the handling, storage, or other use of vinyl chloride polymers and copolymers in the form of fabricated products. (b) Permissible p.r.posy.re_The nccnpa- tional environment she.ll be concrolled'so ffnR;"W'em pi byee is"ex;josed^tb- vinyl' chloride at'^'"concentration In" excess' of aO"~b'31Ts~t5er 'rnihidtl" Cppm) (127.0 mg/cum). ' (c) Monitoring--(1) Initial monitor ing. As soon as possible but not later than April 22, 1974, every employer of an em ployee working in an area or operation in which vinyl chloride is manufactured, re acted, handled, processed, released, re packed, or stored shall begin monitoring the ambient air of the area to determine whether it contains vinyl chloride m con centrations in excess of 50 ppm. (2) Frequency. Monitoring of a suffi cient number of employees so that a representative sample of exposures to vmyi chioride may be determined shall be accomplished not less frequently than weekly until all results for three consecu tive weeks are at or below 50 ppm-.irnq.ee.- aftjer^jnonitoring shall be conducted not 1"/5jI'e2q3ucntly'tlVan monthly so long as the concentrations of vinyl chloride do not exceed 50 pnin. If a monitoring sam ple reveals 'vinyl chloride in concentra tions in excess of 50 ppm, weekly moni toring shall be resumed until all results for three consecutive weeks are at or be low 50 ppm. (3) Method of monitoring. Personnel monitoring shall be accomplished by col lecting samples by suitable cieyjeec worn by the employee. TluTsamples shall be analyzed by gas chromatography orjby any other uie!io7rwTiIeli is of equivalent sensitivity. The analytical procedure shall be sensitive to 5 mm of vinyl chlo= ride in air wTtTiazi accuracy of ztfiJTier- 'cCTrt~TC7~a~ten minute air sampler ~ (4) Employee observation of monitor ing. Employees working in an area or operation whose ambient air is moni tored. or their representatives, shall be given a reasonable opportunity to observe the personnel monitoring required by this section. (5) Recordkeeping. The results of all monitoring shall be recorded in writing. The records shall be retained for at least 5 years and shall be made available for inspection and copying by representa tives of the Assistant Secretary of Labor for Occupational Safety and Health and the Director of the National Insti tute for Occupational Safety and Health (NIOSH). (6) Employee access. Each employee and former employee shall have access to such records of the results of monitoring required by this section as will indicate his own exposure to airborne concentra tions of vinyl chloride. (7) Employee notification. Each em ployer shall promptly notify any em ployee who has been or Is being exposed to vinyl chloride in concentrations in ex cess of 50 ppm, and shall inform him of the corrective action being taken. (d) Compliance. (1) Whenever any monitoring sample reveals vinyl chloride at a concentration in excess of 50 ppm. or whenever any accident, such as rup ture of equipment or spillage, indicates the likelihood of a greater than usual release of vinyl chloride into the ambient air. all employees exposed to such con centrations shall be withdrawn to a safe area and shall not be permitted to re enter the work area unless they wear either Type C continuous flow or pres sure demand air supplied respirators or self-contained breathing apparatus. (2) Work which may reasonably be expected to release vinyl chloride in con centrations in excess of 50 ppm. such as repair, maintenance or cleaning of re actors or other equipment containing vinyl chloride, shall be accomplished only by employees wearing Type C continuous flow or pressure demand air supplied res pirators or self-contained breathing ap paratus. (3) In any case covered by para graphs (d)(1) or id) (2) of this section. In addition to providing the required respirators, the employer shall examine and analyze the source of the excessive concentrations of vinyl chloride in order to determine feasible engineering or op erational controls appropriate to reduce the airborne concentrations to the perniissable level. Such controls shall be implemented as quickly as possible. (4) Periodic tests shall be conducted for equipment leaks and for emissions of vinyl chloride which may result from work practices. 3. In 29 CFR Part 1910, 5 1910.19 is revised to read as follows: 1910,19 Special provisions for air con taminants. (a) Asbestos dust. Section 1910,93a shall apply to the exposure of every em ployee to asbestos dust in every employ ment and place of employment covered by 1910.12, 1910.13, 1910.14, 1910.15, or 1910.10, In lieu of any dif- No. 67--Pt. I- -1 FEDERAL RECIS7ER, VOL. 39, NO. 67--FRIDAY, APRJL 5, 1974 4 CUSAROSS 00443 RULES AND REGULATIONS ferent standard on exposure to asbestos dust which would otherwise be appli cable by virtue of any of those sections. (b) Vinyl chloride. Section 19l0.93q shall apply to the exposure of every em ployee to vinyl chloride in every employ ment and place of employment covered by 5 1910.13. 5 1910.13. 1910.14, 5 1910.15, or 1910.16, In lieu of any dif ferent standard on exposure to vinyl chloride which would otherwise be ap plicable by virtue of any of those sec tions. Effective date. These amendments shall become effective on April 5, 1974. (See*. 4, e, and 8, 84 Stat. 1592, 1696, 1699 (29 tJJS.C. 653, 655, 657); Secretary of Labor's Order No. 12-71,36 FR 8754.) Signed at Washington, DC., this 2d day of April 1974. John Stender. Assistant Secretary of Laoor. tFRUoc.74-7890 Filed 4-4-74:8:46 am] Title 32A--National Defense, Appendix CHAPTER X--OFFICE OF OIL AND GAS, DEPARTMENT OF THE INTERIOR (OU Import Reg. 1 (Rev. 5), Amdt. 65) OIL IMPORT REG. 1--OIL IMPORT REGULATIONS Canadian Imports There appeared in the Federal Reg ister on February 11, 1974 (39 FR 5193) a proposal to amend several sections of Oil Import Regulation 1 (Revision 5), as amended. Amendment 64 to Oil Import Regulation 1 (Revision 5) made the changes related to the proposed rulemak ing for all sections except for sections 29 and 33, both of which pertain to Ca nadian Imports. Publication of amend ment of sections 29 and 33 was deferred until discussions could be held with the Canadian government to determine their export policy. Those discussions have been concluded. The Canadian govern ment plans to continue to control ex ports along the lines of their present controls for at least through September 1974 at which time the method of con trol may be modified significantly. Ac cordingly, interested parties should note that, although sections 29 and 33 are written to provide allocations for the entire allocation period May 1, 1974 through April 30, 1975, licenses will only be Issued initially for one half of the May 1, 1974 through April 30, 1975 al location period and the licenses will only be valid for a six month period unless extended by the Director, This procedure will provide for needed flexibility should the Canadian export, policy change to the extent that It Is necessary to further modify the affected sections of the OU Import Regulation to conform to such changes. As stated In the preamble to Amend ment 64 the three tier system proposed for making allocations under section 29 did not receive complete acceptance. Also, the proposed change to section 29 was predicated on a continuation of the Federal mandatory crude allocation pro gram in its present form. The Federal Energy Office has now proposed changes to that program. For these reasons it has been decided to retain the historical basis for making allocations of Canadian imports into Districts I-IV. The major change is a provision that requires that a person having an allocation of Canadian imports must process the entire volume of Canadian imports in his own facility. The changes to section 33 are strictly technical in nature with the exception of the licensing periods referred to above. This amendment also amends section 3 to provide that entries for consumption of Canadian imports by pipeline under a license issued pursuant to these regula tions may be made until midnight of May 15, following the end of the allo cation period In which the license au thorizing such imports from Canada was issued. This fifteen day overlap Is neces sary to prevent disiuplion of pipeline operations at the end of each allocation period. This amendment 65 becomes effective on April 5, 1974. William A. Vogely, Acting Deputy Assistant Secretary of the Interior. Approved William E. Simon, Deputy Secretary of the Treasury. A new paragraph (f) is added to sec tion 3 to read as follows: See. 3. Allocation periods. * (f) Notwithstanding the provisions of paragraphs (a) and <c) of this section entries for consumption of Canadian im ports by pipeline may be made until mid night of May 15 following expiration of the allocation period in which a license authorizing such imports from Canada was Issued. Section 29 is amended in its enti to read as follows: Sec. 29. Canadian Imports--Districts I-- IV. (a) As used in this section, the term "Canadian imports" means imports from Canada of crude oil which has been pro duced in Canada and unfinished oils which have been derived from crude oil or natural gas produced in Canada and which have been transported Into the United States by overland means or over waterways other than ocean waterways. (b) To be eligible for an allocation of imports under this section, a person must have in Districts I-IV a facility capable of processing Canadian imports. (c) The Director shall, in accordance with the terms of paragraph (d)(1) of this section, make allocations for the al location period May ' 1, 1974 through April 30, 1975 of not to exceed 762,000 average barrels daily of Canadian im ports into Districts I-IV. (d)(1) The Director shall make al locations not subject to license fees of Canadian imports to eligible applicants who received allocations of such Imports for the period January 1, 1973 through December 31, 1973, pursuant to section 23 or from the Oil Import Appeals Board under section 21, or from both. Each such applicant shall be entitled to an alloca tion of Canadian imports calculated in accordance with the following formula: Sum of each eligible applicant's allocation of Canadian Imports In 1973 pursuant to sec tion 23 and section 2l-expressed In barrels per day* 2 Sum of all allocations of Canadian Imports In 1973 pursuant to section 23 and section 21-expressed in barrels per day X 762,000 barrels/day (2) The Director shall Issue before May 1. 1974 to each eligible applicant a license equal to one half of the allocation calculated pursuant to subparagraph (1) of this paragraph. Such licenses shall ex pire on October 31. 1974 unless extended by the Director. The Director shall Issue before November l, 1974 a second license to each eligible applicant equal to the remainder of the allocation calculated pursuant to subparagraph (1) of this paragraph. Such licenses shall expire on April 30. 1575. (e)(1) Except as provided for in subparagraph (2) of this paragraph a per son who imports Canadian imports must process all such imports In his own facil ity. For the purpose of this paragraph, blending by mechanical means does not constitute processing. (2) (i) Canadian imports may be ex changed on a barrel for barrel basis for other Canadian imports but each person receiving crude oil or unfinished oils in the exchange must process the crude oil or unfinished oil received in his own facilities. Settlements, credits, monetary, or accounting adjustments reflecting the relative values of the oils involved in the exchange are permissible . (ID Canadian Imports which are sold to meet the requirements of regulations published by the Federal Energy Office shall not be subject to the provisions of paragraph (e) of this section. (f) If a person who receives an alloca tion of Canadian imports under this sec tion fails to Import the total quantity of imports specified In the allocation, or if he fails to process all such imports (or Canadian imports received in exchange for such imports) in his facilities be fore July 1, 1975, or if he fails to meet the requirement of paragraph (e) of this section, then any allocation of Canadian Imports for Districts I-IV to which such person may otherwise be entitled for the first allocation period beginning after April 30, 1975 shall be reduced by the Di rector by the amount of Canadian lm- FEDERAL REGISTER, VOL. 39, NO. 67--FRIDAY, APRIL 5, 1974 / cUSA Ros s 00444