PURCHASE FROM STRIPPER WELL PROPERTIES.

SEC. 1404. PURCHASE FROM STRIPPER WELL PROPERTIES. (a) In General.— Section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240) is amended by adding at the end the following new subsection: “(h) (1) If the President finds that declines in the production of oil from domestic resources pose a threat to national energy security, the President may direct the Secretary to acquire oil from domestic production of stripper well properties for storage in the Strategic Petroleum Reserve. Except as provided in para-106 STAT. 2995graph (2), the Secretary may set such terms and conditions as he deems necessary for such acquisition. “(2) Crude oil purchased by the Secretary pursuant to this subsection shall be by competitive bid. The price paid by the Secretary— “(A) shall take into account the cost of production including costs of reservoir and well maintenance; and “(B) shall not exceed the price that would have been paid if the Secretary had acquired petroleum products of a similar quality on the open market under competitive bid procedures without regard to the source of the petroleum products.>”. (b) Technical Corrections.— Part B of title I of such Act is amended— (1) in section 167(d), in the matter preceding paragraph (1), by striking “subsection (g)” and inserting “under subsection (g)”; and (2) in section 160(d)(2)— (A) by striking “(2)(A)” and inserting “(2)”; and (B) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively.