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 Code of Federal Regulations (Last Updated: November 8, 2024)
 Title 15 - Commerce and Foreign Trade
 Subtitle B - Regulations Relating to Commerce and Foreign Trade
 Chapter VII - Bureau of Industry and Security, Department of Commerce
 SubChapter A - National Security Industrial Base Regulations
 Part 700 - Defense Priorities and Allocations System
 Subpart L - Miscellaneous Provisions

  Appendix II to Part 700 - Interagency Memorandum of Understanding  

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  • Departments of Agriculture and Commerce—Memorandum of Understanding Between the Departments of Agriculture and Commerce Concerning Priorities and Allocations Jurisdiction and Responsibilities for Foods Which Have Industrial Uses A. Purpose

    This Understanding sets forth the priorities and allocations jurisdiction and responsibilities of the Department of Agriculture (Agriculture) and the Department of Commerce (Commerce) for defense mobilization in the event of a national emergency, and for emergency preparedness functions, as they relate to foods which have industrial uses.

    B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), and Defense Mobilization Order 3 (DMO 3) (44 CFR 322) provide for the delegation of authority for the administration of priorities and allocations functions under the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061, et seq.), to the Secretary of Agriculture with respect to food; and to the Secretary of Commerce with respect to all other materials and facilities not specifically delegated to other agencies.

    2. Section 901 et seq. of Executive Order 11490, as amended (E.O. 11490), delegates to the Secretary of Commerce the authority for preparing national emergency plans and developing preparedness programs covering the production and distribution of all materials and the use of all production facilities, except those that are specifically assigned to, or under the jurisdiction of other agencies. Section 801 et seq. of E.O. 11490 provides for the delegation of authority with respect to the production, processing, distribution, and storage of food resources, and the use of food resource facilities, to the Secretary of Agriculture.

    3. Section 601(h) of E.O. 10480 defines the term “food” as:

    * * * all commodities and products, simple, mixed, or compound or complements to such commodities or products, that are capable of being eaten or drunk by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption * * *. The term “food” shall also include all starches, sugars, vegetable and animal fats and oils, cotton, tobacco, wool, mohair, hemp, flax fiber, and naval stores, but shall not include any such material after it loses its identity as an agricultural commodity or agricultural product.

    Section 802(1) of E.O. 11490 defines the term “food resources” in the same language. Accordingly, these terms are used interchangeably in this Understanding.

    4. The functions delegated by these authorities to the Secretaries of Agriculture and Commerce have been redelegated by the Secretary of Agriculture to the Administrator, Agricultural Stabilization and Conservation Service (ASCS), and by the Secretary of Commerce to the Director, Office of Industrial Resource Administration (OIRA).

    C. General Provisions

    1. This Understanding covers only food and agricultural commodities and products which have industrial uses. Jurisdiction over such commodities will normally pass to Commerce at the point where the foods are no longer capable of being eaten or drunk, except as otherwise provided.

    2. The provisions of this Understanding covering fibers are limited to those specifically mentioned in E.O. 10480 and 11490 (i.e., cotton, wool, mohair, hemp and flax fiber), and have the purpose of defining the points at which these fibers lose their identity as agricultural commodities or agricultural products.

    3. Both Agriculture and Commerce have jurisdiction over the major food commodities listed in section D of this Understanding. For each of these commodities, the point at which the jurisdiction of Agriculture will end is indicated and, except as otherwise provided, the jurisdiction of Commerce will begin at that point.

    (a) The points at which the jurisdiction of Agriculture will terminate are expressed in terms of a particular stage of production or processing pursuant to the authority provided in E.O. 10480 and 11490, and at a point considered to be most administratively feasible.

    (b) Consideration is given wherever possible to the structure of an industry. The wet-milling industry, for example, is large and integrated and it is desirable that Agriculture have jurisdiction over the raw products while they are a part of this industry and until they enter the processes of other industries which result in their becoming nonfood or nonagricultural products. As an illustration, corn starch for textile sizing would be under the jurisdiction of Agriculture while it is being extracted from the corn and prepared for use by the textile industry. It would still be under the jurisdiction of Agriculture until it enters the textile manufacturing process. At this point, jurisdiction over this commodity shifts to Commerce.

    (c) Commodities such as fats and oils, grain products, egg products, starch from all sources, spices, and tartaric acid are used for the manufacture of so many nonfood or nonagricultural products that it is not practical to enumerate all of these products in section D and to identify in each case the exact beginning process. Consequently, the principle for determining the respective jurisdiction of the two Departments in cases of this type is expressed broadly and supplemented by a few examples of nonfood and nonagricultural products so as to clarify the application of the principle. These examples are not intended to be all-inclusive.

    4. Imports and exports of food and agricultural commodities and products in any form prior to industrial uses are within the jurisdiction of Agriculture, subject to meeting requirements that may be imposed by any other agency in the exercise of its authority.

    5. Agriculture will, with noted exceptions, allocate and exercise priority controls on food and agricultural commodities and products, taking into account claims presented by Commerce. However, the suballocation of food and agricultural commodities or products for conversion into non-food and non-agricultural commodities or products will be made in accordance with the recommendations of Commerce.

    6. It is understood that relationships between Agriculture and Commerce involving jurisdiction over particular functions and particular commodities may have to be amplified at a later time. It is also recognized that there will be situations in which operations of the same person, as defined in section 702(a) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2152(a)), will be affected by the exercise of the respective authorities of the two Departments under this Understanding. To avoid overlapping and duplication of reporting and related operations in such situations, it is agreed that the two Departments will work out specific cooperative arrangements whereby the facilities of one shall be utilized by the other and that efforts will be made to provide the most feasible arrangements for administering necessary program controls.

    7. To assure that both Agriculture and Commerce have full authority to implement their respective responsibilities under E.O. 10480 and 11490, and DMO 3, as well as to effectuate the provisions of this Understanding, each Department delegates to the other the requisite authority for the exercise of priorities and allocations functions as set forth in this Understanding.

    D. Particular Commodities

    The following list identifies some major food and agricultural commodities and commodity groups in which both Agriculture and Commerce have an interest and provides the point at which Agriculture's jurisdiction ends and Commerce's jurisdiction begins. This list is not all-inclusive but it does cover the major items for which jurisdiction might become an issue.

    1. Agriculture shall have jurisdiction over the following commodities until they enter any manufacturing process and lose their identity as food or as agricultural commodities or products (examples are set forth in parentheses after the name of the commodity):

    (a) Egg products. (Shampoos, products used in printing, pharmaceuticals)

    (b) Fats and oils. (Paints, soap, varnishes, lacquers, printer's ink, cosmetics, pharmaceuticals)

    (c) Fatty acids. (Paints, soap, cosmetics, chemicals, pharmaceuticals)

    (d) Grain and grain products, including dextrin, corn syrups, grain sugars, lactic acid, gluten, and low-grade wheat flour. (Textiles, adhesives, leather, core binders, pharmaceuticals, nonbeverage alcohol)

    (e) Molasses, including blackstrap and high-test, and potatoes. (Nonbeverage alcohol)

    (f) Spices, essential oils. (Cosmetics)

    (g) Starches. (Adhesives, asbestos, textiles, explosives)

    (h) Sugars. (Insecticides, plasticizing agents, adhesives)

    (i) Tartaric acid. (Products used in photography, dyeing, textile printing)

    2. Agriculture shall have jurisdiction over the following commodities until the specifically designated point in their processing, except as otherwise provided:

    (a) Cotton lint and linters, hemp and flax fiber—When the bale is opened for the purpose of processing in the mill in which it is opened. This authority shall extend to the delivery and distribution of soft types of cotton waste but shall not include control over the use of such waste in the mill producing it.

    (b) Milk and milk products—When the milk and milk products enter a plant where they are to be used or processed for industrial purposes as distinct from use as human food or animal feed. Agriculture shall have jurisdiction over imports of milk and milk products intended for use as human food or animal feed, while Commerce shall have jurisdiction over imports intended for industrial purposes only.

    (c) Wool and mohair—When the wool and mohair (grease and scoured, shorn and pulled) enter a plant where they are to be used, or manufactured into a final product. Inventories of scoured wool or scoured mohair held by manufacturers for their use in producing other products, whether by incorporation into such products or otherwise, shall be controlled by Commerce. The jurisdiction of Agriculture shall extend to the delivery and distribution of noils but shall not include control over the use of noils by the mill producing them.

    (d) Naval stores:

    (1) Tall oil (sulfate naval stores). Commerce shall have jurisdiction over the production, distribution, processing, and allocation. The distribution of tall oil fatty acids shall be under the jurisdiction of Agriculture.

    (2) Wood. Commerce shall have jurisdiction over production, distribution, processing, and allocation.

    (3) Gum. Agriculture shall have jurisdiction over production through the first processing of the gum. Commerce shall have jurisdiction over allocation.

    (4) Commerce will consult with Agriculture before allocating naval stores in order to avoid conflict with programs administered by Agriculture.

    3. The following commodities are under the jurisdiction of the designated Department:

    (a) Ice—Agriculture.

    (b) Tobacco and tobacco products—Agriculture.

    (c) Hides and leather, hair and bristles, feathers, soap. detergents, beeswax, pharmaceuticals (including medicines and vitamins), acetic acid, chemical leavening compounds and salt—Commerce.

    4. In order to further clarify the division of authority for fats and oils, Schedule A to this Understanding lists major fats and oils, and fat and oil products, over which Agriculture has jurisdiction and the major products of fats and oils, and products produced using fats and oils, over which Commerce has jurisdiction.

    5. It is recognized that quantities of certain commodities may be needed for food use which are under the jurisdiction of Commerce. Conversely, raw materials for manufacturing may be needed which are under the jurisdiction of Agriculture. In situations of this kind and for other similar commodities not listed in this section, working arrangements will be developed between ASCS and OIRA as the need arises pursuant to the principles set forth in this Understanding.

    E. Effective Date

    This Memorandum of Understanding supersedes the Memorandum of Agreement between the Administrators of the Agricultural Marketing Service and the ASCS of the Department of Agriculture, and the Acting Deputy Assistant Secretary for Competitive Assessment and Business Policy of the Department of Commerce, concerning foods which have industrial uses, and signed by them on November 2, 7, and 10, 1973, respectively (38 FR 33504, December 5, 1973); and shall take effect August 29, 1984.

    Department of Agriculture Everett Rank, Administrator, Agricultural Stabilization and Conservation Service

    Date: June 15, 1984.

    Department of Commerce John A. Richards, Director, Office of Industrial Resource Administration

    Date: June 14, 1984.

    Schedule A—Jurisdiction Over Fats and Oils

    I. Fats and oils and fats and oils products under the jurisdiction of Agriculture:

    A. Animal and marine.

    1.Animal fats
  • Lard
  • Marrow
  • Tallows and greases
  • Wool grease and lanoline
  • Neats foot oil
    • 2.Marine oils
  • Cod
  • Dogfish
  • Fulachon
  • Herring
  • Menhaden
  • Pilchard
  • Salmon
  • Sardine
  • Seal
  • Shark
  • Whale
    •  3.Marine liver oils
  • Cod
  • Dogfish
  • Shark
  • Swordfish
  • Tuna fish
    •  4.Other animal and marine fats and oils
  • Fatty acids
  • Foots
  • Oleo oil and oleo searin
  • Soap stocks
    •

    B. Vegetable.

    1.Vegetable fats and oils
  • Cocoa butter
  • Fatty acids
  • Lecithin
  • Oiticic
  • Olive residue
  • Soap stocks
  • Tallows and greases
    •  2.Major vegetable oils
  • Babassu nut
  • Castor
  • Corn
  • Coconut
  • Cottonseed
  • Linseed
  • Olive
  • Palm
  • Palm kernel
  • Peanut
  • Rapeseed
  • Safflower seed
  • Sesame
  • Soybean
  • Sunflower seed
  • Tung
    •  3.Other vegetable oils
  • Cashew nut
  • Cohune
  • Colza
  • Hemp seed
  • Kapok seed
  • Murumuru
  • Mustard
  • Ouricury
  • Perilla
  • Poppy seed
  • Rubber seed
  • Tea seed
  • Tucum
    •

    C. Edible fats and oils products, including:

  • Butter
  • Cooking oil and compounds
  • Lard compounds
  • Margarine
  • Salad oils
  • Shortenings
    •

    D. Combinations and mixtures of animal, marine, vegetable, nut and seed fats and oils, or any of them.

    II. Products of fats and oils and products produced using fats and oils under the jurisdiction of Commerce:

    Coated fabrics and floor coverings Glycerine Inedible products of fats and oils Paints, varnishes, lacquers Printer's ink Soap Departments of Agriculture and Commerce—Memorandum of Understanding Between the Departments of Agriculture and Commerce Concerning Priorities and Allocations Jurisdiction and Responsibilities for Farm Equipment A. Purpose

    This Understanding sets forth the priorities and allocations jurisdiction and responsibilities of the Department of Agriculture and the Department of Commerce for defense mobilization in the event of a national emergency, and for emergency preparedness functions, as they relate to the domestic distribution of farm equipment.

    B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), and Defense Mobilization Order 3 (DMO 3) (44 CFR 322) provide for the delegation of authority for the administration of priorities and allocations functions under the Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, et seq.), to the Secretary of Agriculture with respect to the domestic distribution of farm equipment; and to the Secretary of Commerce with respect to all other materials and facilities not specifically delegated to other agencies.

    2. Section 601(i) of E.O. 10480 defines the term “farm equipment” to mean equipment manufactured for use on farms in connection with the production or processing of food.

    3. Section 901 et seq. of Executive Order 11490, as amended (E.O. 11490), delegates to the Secretary of Commerce the authority for preparing national emergency plans and developing preparedness programs covering the production and distribution of all materials and the use of all production facilities, except those that are specifically assigned to, or under the jurisdiction of other agencies. Section 801 et seq. of E.O. 11490 provides for the delegation of this authority with respect to the domestic distribution of farm equipment to the Secretary of Agriculture.

    4. The functions delegated by these authorities to the Secretaries of Agriculture and Commerce have been redelegated by the Secretary of Agriculture to the Administrator, Agricultural Stabilization and Conservation Service (ASCS), and by the Secretary of Commerce to the Director, Office of Industrial Resource Administration (OIRA).

    C. General Provisions

    1. The term “farm equipment” as used in E.O. 10480 and 11490, for the purposes of this Understanding, includes only those items of machinery, equipment, attachments, and repair or replacement parts identified in Schedule A to this Understanding.

    2. In a national emergency or mobilization situation, OIRA may request ASCS to make special distribution of the farm equipment items listed in Schedule A that can be used off the farm for civil defense and life saving purposes. ASCS will give full consideration to these requests in accordance with the priorities and allocations policies of the Federal Government in effect at that time.

    D. Effective Date

    This Memorandum of Understanding supersedes the Memorandum of Understanding and Agreement between the Administrator of the ASCS of the Department of Agriculture, and the Acting Deputy Assistant Secretary for Competitive Assessment and Business Policy of the Department of Commerce, concerning the scope of the term “Farm Equipment”, and signed by them on November 7 and 10, 1973, respectively (38 FR 34749, December 5, 1973); and shall take effect August 29, 1984.

    Department of Agriculture Everett Rank, Administrator, Agricultural Stabilization and Conservation Service

    Date: June 15, 1984.

    Department of Commerce John A. Richards, Director, Office of Industrial Resource Administration

    Date: June 14, 1984.

    Schedule A—Farm Equipment Tractors, Wheel, Manufactured Specifically for Farm Use Farm Tractors, 2-Wheel Drive, 20 to 39 PTO HP Farm Tractors, 2-Wheel Drive, 40 to 99 PTO HP Farm Tractors, 2-Wheel Drive, Over 100 PTO HP Farm Tractors, 4-Wheel Drive, Tillage Equipment Bedders, Bed Levelers, Shapers, and Splitters Blockers and Thinners, row crop Cultivators, Field, Row Crop, Tobacco and Vineyard, mounted and pull type Harrows, including: spike-tooth, spring-tooth, tine-tooth, disk, rotary, offset, knife, oscillating, bush and bog, and tandem disk Land Levelers Middlebusters, Ridgebusters, and Clodbusters Mulch Tillage Implements Plows, including: moldboard, chisel, ditching, terracing, and one-way disk Pulverizers, stalk Ridgelevelers Rod Weeders Rotary Hoes and Tillers, field type Rollers and Cultipackers, including combination harrow-packers Shredders, brush and stalk, bush hog Stubble Shavers, cane Subsoilers, Tractor mounted and pull-type Tillers, basin and disk Tool bars and carriers Transport carriers, farm implement Fertilizing and Liming Equipment Anhydrous Ammonia Applicators, Pumps, Tanks and Tank Wagons Dry and Liquid Fertilizer Attachments for Drills and Planters Fertilizer Distributors and Applicators Fertilizer storage bins and tanks Pumps, Liquid Fertilizer Side-Dressing attachments Spreaders, Lime and Fertilizer, Tractor or Truck mounted and pull type Sprayers, Liquid fertilizer, Truck mounted and pull type Planting Equipment Drills and Planters, including fertilizer attachments Grass Seeder, Broadcast-type, Tractor mounted or pull type Grass Seeder attachments, Drill and Tillage equipment Listers Planters, Minimum or no Tillage, Tractor mounted or pull type Potato Planters, Brushers, Cutters, and Desprouters Seeders Transplanters Agricultural Dusters and Sprayers Dusters, Crop, Field, Livestock, Poultry, Orchard, and Vineyard Foggers and Mist Blowers Granular Chemical Applicators, Broadcast and Band-type Herbicide Applicators, Low Volume Sprayers, Field, Livestock, Poultry, Orchard, and Vineyard, Air Mist, Boomtype and Boomless, Trailer or Tractor mounted and self-propelled Harvesting Equipment Augers, Conveyors and Elevators, farm type, portable and stationary, with or without wheels Bunchers and Tiers, Vegetable, farm type Combines, Harvester-thresher, self-propelled and pull type, including corn head and windrow attachments Corn Cribs Corn Pickers and Picker-shellers, self-propelled, pull type, and semi-mounted Cotton Pickers and Strippers, self-propelled, Tractor mounted and pull type Crop and Grain Dryers and Fans, batch, bin, and continuous operation types Curers, Tobacco Grain Bins, including: perforated floors, ladders, spreaders, stirring devices, unloaders, and ventilation equipment Grain Blowers Harvesters, Harvesting and Handling Equipment for Corn, Grain, Vegetables, Peanuts, Tobacco, Onions and Nuts Hullers, Graders, Sorters, Sackers, Conveyors, farm type for Potatoes, Fruit, Vegetables, Grain, Seed and Nuts Orchard and Vineyard Pruning Equipment, power Peanut Drying Equipment Potato Diggers, Pickers and Baggers Power Units for Harvesting Equipment, self-propelled Sugar Beet Harvesters, Toppers, Lifters, and Loaders Sugar Cane Harvesting Equipment Toppers, Crop and Vegetable Windrowers and Swathers, Dry Edible Beans and Pea Vine Hay and Forage Harvesting Equipment Balers, Twine, and Wire, self-propelled and pull type, including round bale type Forage Blowers and Cutter Blowers, Pipe, and Spouts Forage Harvesters, self-propelled, Tractor mounted and pull type Forage Wagons and Boxes, running gear and truck mounted Giant Hay Balers, Stackers and Transportation Equipment Hay Tedders Hay Wafering and Cubing Machines Mowers, Choppers, conditioners, Mower-conditioners, and Windrowers, field, flail, rotary, or sickle bar, mounted or pull type Rakes, side delivery Loaders, loose hay Loaders, Stackers and Bale Throwers Dairy, Poultry and Livestock Equipment Barn Manure Cleaners, dairy, livestock and poultry types Bale Feeders, giant-size Bale and Stack types Brooders, poultry and hog Bunk Feeder Systems, including: Wagon or truck-mounted feeder boxes Carriers, Hay, Litter and Feed, overhead and track type Dairy Barn Equipment, including: pens, stanchions and stalls Egg Gathers and Collecting Systems, automatic Egg Room Coolers and Humidifiers Egg Graders, Candlers and Washers Feed Mills, Grinder-mixers, Roller Mills, and Mixers, stationary and portable Feed Storage Bins and Tanks, elevated, bulk Feed and Grain Metering Devices Feeders and Waterers, cattle, sheep, hog and poultry, automatic and manual Hog Confinement Systems, Farrowing Stalls and Feeding Systems Incubators, poultry Livestock Confinement Buildings, including: feeding, watering, ventilation and cleaning systems Livestock Handling Gates, Pens and Chutes Liquid Manure Pumps and Tanks Manure Loaders, Tractor mounted Milk Cooling Tanks, bulk and can type Milking Machines, Pipelines and Transfer Stations Milk Room Equipment, including: water heaters, sterilizing and washing tanks Milking Parlor Stalls, including: feeding systems Poultry Cages, Feed and Water Systems Silo, upright and concrete trench-type Silo Unloaders, upright and trench-type, top or bottom Silo-filling Equipment, including: pipe and distribution equipment Spreaders, Barn and Liquid Manure Tanks, Livestock, Dipping and Stock Water Ventilation Systems, automatic, electric Water Supply Equipment Jacks, Pump Pumps, Hand, Windmill, electric, PTO and motor-powered Water Systems including: storage and/or pressure tanks, domestic and farmstead, deep and shallow well, jet and non-jet Irrigation Equipment Ditch Gates, Furrow Openers, Levee Plows Pipe, Couplers, Valves and Sprinkler Heads Systems Controls, automatic and center pivot Systems Pumps, deep well, shallow well and surface water supply type Other Farm Equipment, N.E.C. Alcohol Distilling Plants, farm type Chain Saws Cleaners and Graders, farm type, grain and seed Diggers, post-hole, Tractor mounted, farm type Electric Generating Plants, farm type, continuous duty and standby, Tractor or motor powered Fencing Materials Log Skidders and Splitters Post Drivers and Pullers, power, farm type Tracks, Crawler, combine and wheel Tractor Wagon Running Gears, farm type Wagon Boxes, including: Auger unloading, barge and flare, bunk feeding, forage, feed-mixing, gravity and hydraulic dump Windmill Towers and Heads Repair and Replacement Parts Parts manufactured specifically for use in the maintenance and repair of the farm equipment (including plowshares and disk blades) listed in this Schedule. Departments of Energy and Commerce—Memorandum of Understanding Between the Departments of Energy and Commerce Concerning the Jurisdiction and Responsibilities for Products and Equipment Associated with the Production of Petroleum and Gas for Emergency Preparedness and Mobilization A. Purpose

    This Understanding sets forth the jurisdiction and responsibilities of the Department of Energy (DOE) and the Department of Commerce (DOC) for defense mobilization, emergency preparedness, and resource management programs under the authorities listed in section B, in the event of a national emergency, as such programs relate to the production and distribution of: (1) chemicals and fluids made especially for use in the petroleum and gas industry; (2) oil and gas field machinery and equipment; and (3) petrochemicals derived from oil, gas, and natural gas liquids.

    B. Authority

    1. Pursuant to section 201(a) of Executive Order 10480, as amended (E.O. 10480), Defense Mobilization Order 3 (DMO 3) (44 CFR 322) delegates authority for the administration of priorities and allocations functions under the Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, et seq.), to the Secretary of Energy with respect to petroleum, gas, solid fuels, and electric power; and to the Secretary of Commerce with respect to all other materials and facilities not specifically delegated to other agencies.

    2. Executive Order 11490, as amended (E.O. 11490), delegates to the Secretary of Commerce the authority for preparing national emergency plans and developing preparedness programs covering the production and distribution of all materials, and the use of all production facilities except those that are specifically assigned to, or under the jurisdiction of, other agencies. Such an exception is provided for the production and distribution of, and the use of facilities for, petroleum and gas. E.O. 11490 provides for the delegation of this authority to the Secretary of Energy.

    3. The functions delegated by these authorities to the Secretaries of Energy and Commerce have been redelegated by the Secretary of Energy to the Assistant Secretary for Environmental Protection, Safety, and Emergency Preparedness, and by the Secretary of Commerce to the Director, Office of Industrial Resource Administration (OIRA).

    C. Departmental Jurisdiction

    The primary use of a product or material is the basis for the division of Departmental jurisdiction set forth below. Any product or material not specifically identified in this Understanding which is used primarily as a fuel or in a primary manufacturing process to produce fuel, is under the jurisdiction of DOE. Generally, any non-fuel product or material, or any product or material which is used primarily as an industrial raw material, is under the jurisdiction of DOC. In the event that questions arise with respect to jurisdiction over particular products, materials, or production facilities, it is agreed that the two Departments will resolve these questions in such a manner as to provide the most feasible arrangements for program administration.

    1. Production.

    Department of Energy: DOE has jurisdiction over the production of: (a) petroleum and gaseous fuels, natural gas liquids, and petroleum lubricants, including “refinery finished products,” “unfinished oils,” and “petrochemical feedstocks”; (b) “petrochemicals” from processing units located within a petroleum refinery where the weight of “petrochemicals” in the output of the processing unit constitutes less than 30 percent by weight of the net input to the unit; (c) n-paraffin “petrochemical intermediates”; (d) “special petroleum chemical supplies”; and (e) any fossil fuel or synthetic product not specifically indentified which is or can be used as a fuel or lubricant.

    Department of Commerce: DOC has jurisdiction over the production of: (a) all “chemicals” including “petroleum processing catalysts” and “fuel combustion improvers”; and (b) “petrochemicals” including those from processing units located within a petroleum refinery where the weight of “petrochemcials” in the output of the processing unit constitutes 30 percent or more by weight of the net input to the unit; and (c) oil and gas field machinery and equipment as identified in Schedule A to this Understanding, as well as any machinery, equipment, and technologies not yet developed for obtaining petroleum and natural gas.

    2. Facilities.

    Department of Energy: DOE has jurisdiction over all facilities for which production jurisdiction has been assigned to it by this Understanding.

    Department of Commerce: DOC has jurisdiction over all facilities for which production jurisdiction has been assigned to it by this Understanding.

    3. Distribution.

    Department of Energy: DOE has jurisdiction over the distribution of: (a) all petroleum, gaseous fuels (when such jurisdiction as authorized by E.O. 11490 is not exercised by the Federal Energy Regulatory Commission), natural gas liquids, and petroleum lubricants; (b) all “special petroleum chemical supplies,” “petroleum processing catalysts,” and “fuel combustion improvers”; (c) “petrochemical feedstocks” except those produced or gathered specifically for a chemical operation; (e) any other fossil fuel or synthetic product which is or can be used as a fuel; and (f) oil and gas field machinery and equipment as identified in Schedule A to this Understanding, as well as any machinery, equipment, and technologies not yet developed for obtaining petroleum and natural gas.

    Department of Commerce: DOC has jurisdiction over the distribution of: (a) all “chemicals” including “petrochemicals” but excluding those chemical product groups assigned to DOE; (b) “petrochemical feedstocks” specifically produced or gathered for a chemical operation; and (c) “non-fuel or non-lubricant petroleum products.”

    D. Definitions

    Under this Understanding, the term “petroleum” means crude oil, synthetic liquid fuel, their products and associated hydrocarbons, including pipelines for their movement and facilities specially designed for their storage; and the term “gas” means natural gas (excluding helium) and manufactured gas (but not industrial gases), including pipelines for their movement and facilities specially designed for their storage, when such juridiction as authorized by E.O. 11490 is not exercised by the Federal Energy Regulatory Commission. For the purpose of assigning jurisdiction under this Understanding, the following additional definitions shall apply:

    1. “Petrochemical Feedstocks”

    Includes hydrocarbon materials obtained from petroleum and natural gas when used as “feedstock” or raw material for the production of “primary petrochemicals” or “petrochemical intermediates.” These materials also include:

    Natural gas (methane) processed to a quality suitable for pipeline transmission;

    Natural gas liquids which are the several low boiling point, lower molecular weight hydrocarbons that include ethane, propane, butanes, pentanes, and liquified petroleum gases obtained from the processing of natural gas;

    Naphtha (light petroleum liquids) which is a medium boiling point range mixture of hydrocarbons obtained from the processing of natural gas, crude oil, or petroleum refining. Naphtha is the major component of gasoline. The usual distillation range of naphtha feedstock is 100-400° F; and

    Gas oil (heavy petroleum liquids) which is a high boiling point mixture of hydrocarbons obtained from the processing of crude oil or petroleum refining. Gas oil is the major component of distillate grades of fuel oil. Atmospheric gas oil may comprise hydrocarbons in the distillation range 400-650° F; vacuum gas oil may comprise higher boiling materials in the distillation range 650-1000° F.

    2. “Chemicals”

    For the purpose of this Understanding, “chemicals” shall comprise those products listed under Major Group 28, Chemical and Allied Products, Standard Industrial Classification Manual, 1977 Edition; and shall specifically include “petrochemicals,” “petroleum processing catalysts,” “fuel combustion improvers”; but shall exclude “special petroleum chemical supplies.”

    3. “Petrochemicals”

    Chemical materials which, directly or indirectly, are manufactured from petrochemical feedstock hydrocarbons. These materials include:

    Primary petrochemicals produced directly from feedstocks by chemical conversion or breakdown and mainly used for the production of “intermediates” or petrochemical “products”;

    Petrochemical intermediates generally produced by chemical converson of primary petrochemicals to form more complicated derived compounds. Such compounds serve as the raw material for synthesis of petrochemical “products,” and for numerous other materials; and

    Petrochemical products which are end products of the chemical industry produced by chemical conversion of “primary” petrochemicals or petrochemical “intermediates.”

    4. “Refinery Finished Products”

    Any one of the petroleum oils or mixtures of oils which can be used without further processing, including:

    Liquified petroleum gases (LPG);

    Gasoline;

    Jet fuel;

    Naphtha;

    Distillate fuel oils;

    Lubricating oils and greases;

    Residual fuel oils;

    Asphalt; and

    Natural gas products—natural gasoline.

    5. “Unfinished Oils”

    Semi-finished refinery products, or unseparated mixtures of refinery products, which are further processed for production of “refinery finished products.”

    6. “Special Petroleum Chemical Supplies”

    Products made especially for use in the production, refining and compounding of petroleum fuels and lubricants, including:

    Hydrogen produced in a refinery for use in petroleum processing; and

    Special additives:

    for fuels and lubricants; to facilitate the drilling of oil and gas wells; to stimulate the production of oil and gas for enhanced oil recovery; and to facilitate the pipeline transmission of petroleum.

    7. “Non-fuel or Non-lubricant Petroleum Products”

    Certain products produced in the course of the refining of petroleum whose primary uses are other than as fuels or lubricants, such as:

    Asphalts;

    Coke, petroleum—green and calcined;

    Cresylic acids;

    Naphthenic acids;

    Oils, rubber extending;

    Solvents—aliphatic and aromatic hydrocarbons;

    Waxes, refined—paraffin and micro-crystalline; and

    White oils, petrolatums, and other oils for medicinal, pharmaceutical and cosmetic purposes.

    8. “Petroleum Processing Catalysts”

    Solid inorganic compositions used in petroleum refining to facilitate the conversion of hydrocarbons by chemical reaction, including:

    Catalytic cracking;

    Hydrocracking;

    Reforming;

    Isomerization;

    Desulfurization; and

    Hydrotreating.

    9. “Fuel Combustion Improvers”

    Chemical compostions added to liquid petroleum fuels to improve combustion characteristics, including:

    Ethanol (ethyl alcohol);

    Methanol (methyl alcohol);

    Methyl tertiary butyl ether;

    Tertiary butyl alcohol;

    Tetraethyl lead and tetramethyl lead, and their blends for use as anti-knock materials; and

    Other products such as amyl nitrate, hexyl nitrate, n-methyl aniline, and the manganese-methyl cyclopentadiene complexes.

    E. Delegation of Authority

    To ensure that DOE and DOC have the requisite authority to implement their responsibilities under E.O. 10480 and 11490, and DMO 3, as well as to effectuate the provisions of this Understanding, each Department delegates to the other its authority for the exercise of priorities and allocations functions under Section 101(a) of the Defense Production Act of 1950, as amended, with respect to the facilities, materials, and products specified in this Understanding.

    F. Effective Date

    This Memorandum of Understanding shall take effect August 29, 1984, superseding the Memorandum of Agreement between the Department of the Interior and the Department of Commerce that became effective on October 30, 1973 (38 FR 30896, November 8, 1973). The Department of the Interior's authority under this Memorandum of Agreement was transferred to the Department of Energy effective October 1, 1977, by Executive Order 12038 (43 FR 4957, February 7, 1978).

    Department of Energy H. A. Merklein Assistant Secretary, International Affairs and Energy Emergencies

    Date: July 10, 1984.

    Department of Commerce John A. Richards, Director, Office of Industrial Resource Administration

    Date: June 20, 1984.

    Schedule A—Machinery and Equipment Required for the Discovery, Development, or Completion of Oil and Gas Wells Exploration and Development Drilling

    Transportation (trucks, boats, helicopters)

    Drilling (rigs, pipes, pumps, engines, tanks, etc.)

    Drilling Fluids (weighting materials, chemicals, clays, etc.)

    Well Equipment (casing, carbon and alloy steel wellheads)

    Completion

    Well Equipment (Christmas trees, tubing, liners, safety valves, etc.)

    Completion Equipment (workover or drilling rig, wireline unit)

    Well Services (sand control, acidizing, fracturing, cleanout)

    Oil Production Facilities

    Pipe

    Structures

    Vessels

    Instruments

    Hardware and Accessories

    Associated Gas Facilities

    Gas Production Facilities

    Field Gathering System

    Compression Facilities

    Processing Facilities

    Artificial Lift Facilities

    Rod Pump

    Gas Lift

    Submersible Pumps

    Maintenance

    Well Servicing

    Well Equipment

    Well Servicing Equipment

    Well Services

    Materials

    Enhanced Recovery

    Waterflooding

    Gas Injection

    Tertiary Processes

    Departments of the Interior and Commerce—Memorandum of Understanding Between the Departments of the Interior and Commerce Concerning the Jurisdiction and Responsibilities for Certain Minerals, Facilities and Materials; and Delegation of Authority A. Purpose

    This Understanding sets forth the jurisdiction and responsibilities of the Department of the Interior and the Department of Commerce for defense mobilization, emergency preparedness programs, and resource management in the event of a national emergency as they relate to stages of processing and types of facilities concerning certain minerals. This Understanding also provides for a delegation of certain authority to the Secretary of the Interior which is presently assigned to the Secretary of Commerce.

    B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), and Defense Mobilization Order 3 (DMO 3) (44 CFR 322), provide for the delegation of authority to the Secretary of Commerce for administration of priorities and allocations functions under the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061, et seq.), for materials and facilities not specifically delegated to other agencies. Section 602 of E.O. 10480 provides for redelegation of this authority.

    2. Section 901 et seq. of E.O. 11490 provides for the delegation of authority to the Secretary of Commerce for preparing national emergency plans and developing preparedness programs covering the production and distribution of all materials and the use of all production facilities, except those that are specifically assigned to, or under the jurisdiction of, other agencies. Such an exception is provided for the production and related distribution of minerals. Section 701 et seq. of E.O. 11490 provides for the delegation of this authority to the Secretary of the Interior.

    3. Section 702(5) of E.O. 11490 defines the term “minerals” to mean:

    * * * all raw materials of mineral origin * * * obtained by mining and like operations and processed through the stages specified and at the facilities designated in an agreement between the Secretary of Commerce as being within the emergency preparedness responsibilities of the Secretary of the Interior. This Understanding implements this requirement.

    4. The functions delegated by these authorities to the Secretaries of Commerce and the Interior have been redelegated by the Secretary of Commerce to the Director, Office of Industrial Resource Administration (OIRA), and by the Secretary of the Interior to the Director, Bureau of Mines.

    C. Departmental Responsibilities

    1. Department of the Interior. Schedule A to this Understanding contains a listing of mineral commodities and related facilities and materials. With respect to the mineral commodities listed in Column 1 of Schedule A, the Secretary of the Interior shall have emergency preparedness and mobilization responsibilities for the facilities listed in Column 2 of the Schedule, the production of materials by these facilities, and the distribution of the materials listed in Column 3 of the Schedule.

    2. Department of Commerce. With respect to the mineral commodities listed in Column 1 of Schedule A, the Secretary of Commerce shall have emergency preparedness and mobilization responsibilities for all facilities other than those listed in Column 2 of the Schedule, for the production of materials by these other facilities, and for distribution of all materials not listed in Column 3 of the Schedule.

    D. Delegation of Authority

    1. Pursuant to the authority of section 602(b) of E.O. 10480, the Secretary of Commerce hereby delegates to the Secretary of the Interior with respect to the facilities and materials listed in Columns 2 and 3 of Schedule A, all the functions under the Defense Production Act of 1950, as amended (DPA), which are delegated or assigned to the Secretary of Commerce by or pursuant to the following sections of E.O. 10480:

    (a) Section 201(a), as implemented by section 3(a) of DMO 3 (relating to exercise of priorities and allocations authority under Title I of the DPA);

    (b) Section 301 (relating to development of measures for expansion of production of materials necessary for the national defense);

    (c) Section 302 (relating to guarantees of loans or contracts in connection with the expediting of production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense, etc.);

    (d) Section 312 (relating to recommendations for action under sections 302 and 303 of the DPA);

    (e) Section 501 (relating to consultation with industry and making recommendations to the Director of the Federal Emergency Management Agency respecting voluntary agreements under section 708 of the DPA); and

    (f) Section 602 (relating to the exercise of various general administrative functions under Title VII of the DPA).

    2. This delegation shall be effective only with respect to the facilities and materials listed in Columms 2 and 3 of Schedule A.

    E. Effective Date

    This Memorandum of Understanding and Delegation of Authority supersedes the Agreement between the Secretary of the Interior and the Secretary of Commerce and signed by them on June 21, 1962, and the Delegation of Authority from the Secretary of Commerce to the Secretary of the Interior published in 32 FR 2462 on February 4, 1967; and shall take effect August 29, 1984.

    Department of the Interior Robert C. Horton, Director, Bureau of Mines

    Date: June 21, 1984.

    Department of Commerce John A. Richards, Director, Office of Industrial Resource Administration

    Date: June 20, 1984.

    Schedule A—Mineral Commodities and Related Facilities and Materials123Commodity Facilities MaterialsAbrasives:Alumina:Fused Processing plants Ores.Zirconia Do Do.Corundum Mines; crushing, sizing, washing, grading and concentrating plants Do.Diamond:Industrial Mines; concentrating plants Do.Synthetic Processing plants Carbon.Emery Mines; beneficiation plants Ores.Garnet Do Do.Grinding pebbles Do Do.Grinding stones Quarries; cutting plants Crude stone.Silicon carbide Processing plants Ores.Tripoli and rottenstone Mines; crushing, grinding, and grading plants Crude tripoli, amorphous silica, rottenstone.Aluminum Bauxite mines; drying and calcining plants; alumina plants; reduction plants; secondary smelters; processing plants Crude, dried and calcined bauxite, alumina, aluminum-base scrap.Antimony Mines; concentrating plants; primary smelters; refineries; leaching plants Ores, concentrates, residues, scrap.ArsenicMines; concentrating plants; smelters; refineriesDo.Asbestos Mines; separation and classification plantsOres.Barium Mines; beneficiating, grinding and grading plantsOres, concentrates.Beryllium Mines; concentrating and grinding plants; refineriesDo.Bismuth Mines; concentrating plants; smelters; refineries Ores, concentrates, base bullion, residues.Boron Mines; wells; refineries Ores, brines.Bromine Plants recovering bromine Bitterns, brines.Brucite Mines; magnesium compound recovery and burning plants Ores.Cadmium Concentrating plants; smelters; refineries Ores, concentrates, residues.Calcium:Compounds Brines and synthetic chemical processing plantsBrines.Metal Processing plantsCrude materials.Cement Blending, sintering, and grinding plantsLimestone, clay, sand, gypsum, iron-containing materials.Cesium Mines; concentrating plants; extraction plantsOres, concentrates, residues, solutions.Chromium Mines; processing plantsOres, concentrates, additives.Clays:Kaolin Mines; drying, grinding, calcining and concentrating plants Ores.Ball clay Mines; drying, calcining, shredding and grinding plantsDo.Bentonite Mines; drying, activating, grinding, concentrating and sizing plantsDo.Fuller's earth Mines; drying, calcining, activating, grinding and screening plantsDo.Fire clay Mines; drying, calcining, concentrating and grinding plants Do.Common clay and shales Mines; beneficiation plants; expanding plants Crude common clay, shale.Cobalt Mines; concentrating plants; leaching plants; refineries Ores, concentrates, matte, slurries, in-process oxides, smelter anodes.Columbium Mines; dredges; processing plants Ores, slags, additives.Copper Mines; concentrating plants; leaching plants; electrowinning plants; smelters; refineries Ores, scrap, concentrates, precipitates, matte, speiss, blister, smelter anodes.Cryolite Mines; concentrating and grading plantsOres, concentrates.Diatomite Mines; beneficiation plantsCrude materials.Dolomite Mines; compounds recovery and burning plantsOres.Feldspar Mines; grinding, concentrating and grading plantsDo.FerroalloysPlants; furnaces Ores, concentrates, metallic additives.Fluorspar, natural and synthetic Mines; processing plantsOres, concentrates, hydrofluosilicic acid.Gallium Refineries; processing plantsConcentrates, residues.Gem stonesMines; concentrating plantsOres.Germanium RefineriesConcentrates, residues.GoldMines; concentrating plants; leaching and precipitation plants; smelters; refineriesOres, concentrates, intermediate smelter products, scrap.Graphite, natural and synthetic Mines; beneficiating and processing plants Ores, carbon.Greensand Mines; concentrating plantsOres.Gypsum Mines; crushing and calcining plantsCrude gypsum.HafniumMines; concentrating plants; reduction plantsOres.Helium Processing plantsHelium-rich natural gas.Ilmenite Mines; concentrating plants; processing plants; grinding plantsOres, concentrates.Indium Refineries; leaching plantsConcentrates, fume, dusts, residues, slags.Iodine Mines; concentrating plants; wellsOres, brines.IronMines; concentrating plants; agglomerating plants; prereduction plants; blast furnaces; crude steelmaking facilitiesOres, concentrates, direct-reduced materials, scrap, pig iron, additives.Iron oxide pigments, natural and synthetic Mines; beneficiating and processing plantsOres, additives.Kyanite, andalusite, sillimanite, and dumortierite Mines; concentrating and calcining plantsDo.LeadMines; concentrating plants; smelters; refineries; leaching plantsOres, concentrates, base bullion, residues, scrap.Limestone (lime) and marlMines; quarries; crushing and grinding plants; kilns and lime plantsCrushed limestone, marl.LithiumMines; concentrating plants; brine-processing plantsOres, brines.Magnesium Mines; processing plantsDo.Manganese Mines; concentrating plants; agglomerating plants; leaching plantsOres, concentrates, agglomerates.Mercury Mines; concentrating plants; leaching plants; electrolytic plants; retorts and furnacesOres, concentrates, scrap.MicaMines; beneficiation plants Crude mica.Molybdenum Mines; concentrating plants; processing plantsOres, concentrates.Nickel Mines; concentrating plants; leaching plants; smelters; refineries Ores, concentrates, matte, slurries, in-process oxides, smelter anodes.Nitrogen (fixed)Processing plantsOlivine Mines; concentrating plantsOres, concentrates.Perlite Mines; grinding and screening plants; expanding plants Crude perlite.Phosphate rock Mines; beneficiation plants Ores, concentrates.Platinum-group metals Mines; concentrating plants; refineries Ores, concentrates, residues.Potash Mines; concentrating plants; processing plants; refineriesOres, concentrates, brines.Pumice Mines; crushing, drying, screening and grading plantsOres.Quartz crystal Mines; grading plants Do.Rare-earth metals Mines; beneficiating and processing plants Ores, concentrates.Refractories Processing plantsOres.Rhenium Refineries; processing plantsOres, concentrates.Rubidium Mines; concentrating plants; extraction plants Ores, concentrates, residues.Rutile Mines; concentrating plants Ores, concentrates.SaltMines; salt wells; processing plantsCrude materials.Sand and gravelPits; washing and grading plantsCrude sand and gravel.SeleniumRefineries Residues, slimes, scrap.Silicon Furnaces; metal plants Metallic additives, silica.Silver Mines; concentrating plants; smelters; refineries; leaching plantsOres, concentrates, intermediate smelter products, scrap.Slag (iron and steel)Slag processing facilities Furnace wastes.SlateQuarries; splitting, milling, crushing and grading plantsCrude slate.Sodium compounds Mines; brine wells; refineries; synthetic soda ash plantsNatural and synthetic minerals, brines.Stone:Crushed Quarries; crushing and grading plantsBroken stone.Dimension Quarries; milling and grading Block stone.Staurolite Mines; concentrating plants Ores.Strontium DoDo.Sulfur Mines; wells; processing plants Ores, gases.Talc, soapstone and pyrophylite Mines; crushing, grinding, screening and concentrating plants Ores.Tantalum Mines; dredges; concentrating plants; processing plants Ores, concentrates, slags, scrap, residues.Tellurium Refineries Residues, slimes.Thallium DoConcentrates, residues.TinMines; concentrating plants; smelters; refineries; processing plantsOres, concentrates, residues, scrap.Titanium Mines; concentrating plants; processing plantsDo.Thorium Non-energy processing plantsOres and compounds.Tungsten, metal and compounds Mines; concentrating plants; reduction plants; processing plants Ores, concentrates, brines, scrap.Vanadium Mines; concentrating plants; leaching plants; reduction plantsOres, concentrates, residues, slags, metallic additives.Vermiculite Mines; beneficiating plants; processing plants Crude vermiculite.Wollastonite Mines; concentrating plants Ores.Zeolites Mines; processing plantsDo.ZincMines; concentrating plants; roasting plants; smelters; electrolytic plantsOres, concentrates, calcines, scrap, fume, residues.Zirconium Mines; concentrating and reduction plants Ores, scrap.