enhancement of domestic production

enhancement of domestic production Sec. 122. Section 8 of the Emergency Petroleum Allocation Act of 1973 (as amended by section 121 of this Act) is further amended— (1) in subsection (d) (1), by striking out “any adjustment as a production incentive shall not permit an increase in the maximum weighted average first sale price in excess of 3 per centum per annum (compounded annually), unless modified pursuant to this section, and”; (2) in subsection (d) (3) (C), by striking out “, including production from stripper wells”; (3) in subsection (e)(1), by striking out “(A) a production incentive adjustment to the maximum weighted average first sale price in excess of the 3 per centum limitation specified in subsection (d)(1), (B)”, and by striking out “such subsection, or (C) both.”, and inserting in lieu thereof “subsection (d)(1).”; (4) in subsection (e)(2), by striking out “an additional adjustment as a production incentive, or”, and by striking out “, or both,”; (5) in subsection (f) (1), by adding before the period at the end thereof the following: “and an analysis of the effects on price and the production of domestic crude oil resulting from the amendments made to this section by sections 121 and 122 of the Energy Conservation and Production Act”; 90 STAT. 1134 (6) in subsection (f) (2), by striking out “The President may” and inserting in lieu thereof “On March 15, 1977, the President may”; (7) in subsection (f)(2)(A), by stinking out “or modification”, and by striking out “as may have been amended pursuant to subsection (e)”; (8) in subsection (f) (5), by striking out “or modify”, and by striking out “or of a modification of such adjustment”; and (9) by adding at the end thereof the following new subsection: “(j) (1) As soon as practicable after the date of enactment of this subsection, taking into consideration the greater flexibility provided by the amendments relating to the production incentive adjustment under section 122 of the Energy Conservation and Production Act, the President shall promulgate such amendments to the regulation under section 4(a) (relating to price) as shall (A) provide additional price incentives for bona fide tertiary enhanced recovery techniques and (B) provide for (he adjustment of differentials in ceiling prices for crude oil that are the result of gravity differentials which are arbitrary, discriminatory, applied on a regional or local basis without reasonable justification, or fail substantially to reflect current relative market valuations of such differentials. “(2) As used in this subsection, the term ‘tertiary enhanced recovery techniques’ means extraordinary and high cost enhancement technologies of a type associated with tertiary applications including, to the extent that such techniques would be uneconomical without additional price incentives, miscible fluid or gas injection, chemical flooding, steam flooding, microemulsion flooding, in situ combustion, cyclic steam injection, polymer flooding, and caustic flooding and variations of the same. The President shall have authority to further define the term by rule.”.