Petroleum Products Regulations, 2013

L.N. 109 of 2013

MALTA RESOURCES AUTHORITY ACT

(CAP. 423)

Maintenance of Minimum Stocks of Crude Oil and, or

Petroleum Products Regulations, 2013

IN exercise of the powers conferred by article 28 of the Malta

Resources Authority Act, the Minister for Resources and Rural

Affairs, after consultation with the Malta Resources Authority, has

made the following regulations:-

(1)

The title of these regulations is the Maintenance of Citation, scope

Minimum Stocks of Crude Oil and, or Petroleum Products and

commencement.

Regulations, 2013.

(2) The scope of these regulations is to transpose Directive

2009/119/EC imposing an obligation on Member States to maintain

minimum stocks of crude oil and, or petroleum products.

(3) These regulations provide rules aimed at ensuring a high

level of security of oil supply through reliable and transparent

mechanisms based on solidarity amongst Member States, maintaining

minimum stocks of crude oil and, or petroleum products and putting

in place the necessary procedural means to deal with a serious

shortage.

(4) These regulations shall be deemed to have come into force

on the 31st of December 2012.

In these regulations, unless the context otherwise requires

Interpretation.

"the Act" means the Malta Resources Authority Act;

"additives" means non-hydrocarbon compounds added to or

blended with a product to modify its properties;

"the Authority" means the Malta Resources Authority

established by article 3 of the Act;

"biofuel" means liquid or gaseous fuel for transport produced

from biomass, being the biodegradable fraction of products, waste

and residues from agriculture (including vegetable and animal

substances), forestry and related industries, as well as the

biodegradable fraction of industrial and municipal waste;

"central stockholding entity" means the body or service upon

which powers may be conferred to act to acquire, maintain or sell oil

stocks, including emergency stocks and specific stocks, hereinafter

referred to as "CSE";

"commercial stocks" means those oil stocks held by economic

operators which are not a requirement under these regulations;

"the Commission" means the European Commission established

by the Treaty on the Functioning of the European Union as amended

by the Lisbon Treaty, 2009;

"the Community" means the European Community established

by the Treaty on the Functioning of the European Union as amended

by the Lisbon Treaty, 2009;

"Coordination Group" means the consultative group established

by Directive 2009/119/EC to contribute to analysing the situation

within the Community with regard to security of supply for oil and

petroleum products and to facilitate the coordination and

implementation of measures in that field;

"economic operator" means any person, body or entity required

to hold emergency stocks under these regulations;

"effective international decision to release stocks" means any

decision in force taken by the Governing Board of the International

Energy Agency to make crude oil or petroleum products available to

the market by a release of its members’ stocks and, or additional

measures;

"emergency stocks" means the oil stocks that are required to be

maintained pursuant to regulation 3;

"Governing Board of the International Energy Agency" means

the Governing Board of the International Energy Agency (IEA), the

inter-governmental organisation established by means of the

Agreement on an International Energy Program ("I.E.P. Agreement");

"inland consumption" means the total quantities, calculated

according to the Second Schedule, delivered within a country for both

energy and non-energy use. This aggregate includes deliveries to the

transformation sector and deliveries to industry, transport, households

and other sectors for ‘final’ consumption. It also includes the own

consumption of the energy sector (except refinery fuel);

"international marine bunkers" means the quantities of fuels

delivered to ships of all flags that are engaged in international

navigation. The international navigation may take place at sea, on

inland lakes and waterways, and in coastal waters. The following

shall be excluded

(a)

consumption by ships engaged in domestic

navigation. The domestic or international split should be

determined on the basis of port of departure and port of arrival,

and not by the flag or nationality of the ship;

(b)

consumption by fishing vessels;

(c)

consumption by military forces;

"major supply disruption" means a substantial and sudden drop

in the supply of crude oil or petroleum products to the Community or

to a Member State, irrespective of whether or not it has led to an

effective international decision to release stocks;

"the Minister" means the Minister responsible for resources;

"Member State" means a state which is a member of the

European Union;

"oil stocks" means the following stocks of energy products and

as listed in the first paragraph of Section 3.1 of Annex C to

Regulation (EC) No 1099/2008

(a)

crude oil;

(b)

NGL;

(c)

refinery feedstocks;

(d)

other hydrocarbons;

(e)

refinery gas (not liquefied);

(f)

ethane;

(g)

LPG;

(h)

Naphtha;

(i)

motor gasoline;

(j)

aviation gasoline;

(k)

gasoline type jet fuel (naphtha type jet fuel or JP4);

(l)

kerosene type jet fuel;

(m)

other kerosene;

(n)

gas/diesel oil (distillate fuel oil);

(o)

transport diesel;

(p)

heating and other gasoil;

(q)

fuel oil (both low and high sulphur content);

(r)

white spirit and SBP;

(s)

lubricants;

(t)

bitumen;

(u)

paraffin waxes;

(v)

petroleum coke;

"physical accessibility" means arrangements for locating and

transporting stocks to ensure their release or effective delivery to end

users and markets within time frames and conditions conducive to

alleviating the supply problems which may have arisen;

"reference year" means the calendar year of the consumption or

of the net import data used to calculate either the stocks to be held or

the stocks actually held at a given time;

"Regulation (EC) No 1099/2008" means Regulation (EC) No

1099/2008 of the European Parliament and of the Council on energy

statistics;

"specific stocks" means oil stocks which meet the criteria set out

in regulation 9.

(1)

Economic operators shall carry out any necessary

measures in pursuance of the national obligation that the total oil

stocks maintained at all times correspond, at the very least, to ninety

days of average daily net imports or sixty-one days of average daily

inland consumption, whichever of the two quantities is greater. The

Authority may, from time to time, adopt such administrative

measures, as it may deem necessary, to ensure the fulfilment of such

national obligation. The Authority shall calculate the total oil stocks

which shall be maintained at all times by each economic operator as

required by the Authority to be held by them

Provided that, until the 31st December 2014, the total oil

stocks maintained shall at all times correspond, at the very least, to

eighty-one days of average daily net imports.

(2) The average daily net imports to be taken into account

shall be calculated on the basis of the crude oil equivalent of imports

during the previous calendar year, determined in accordance with the

method and procedures set out in the First Schedule. The average

daily inland consumption to be taken into account shall be calculated

on the basis of the crude oil equivalent of inland consumption during

the previous calendar year, established and calculated in accordance

with the method and procedures set out in the Second Schedule.

(3) Without prejudice to sub-regulation (2), the daily averages

of net imports and inland consumption, as referred to in that sub-

regulation, shall be determined, as regards the period from 1 January

to 31st March of each calendar year, on the basis of the quantities

imported or consumed during the last year but one before the calendar

year in question.

(1)

The economic operator shall calculate the levels of Calculating

stocks held using the methods set out in the Third Schedule. When stock levels.

calculating stock levels for each category held pursuant to regulation

9, those methods shall apply only to the products in the category in

question.

(2) The levels of stocks held at any given time shall be

calculated using data from the reference year determined in

accordance with the rules set out in regulation 3.

(3) Any oil stocks may be included simultaneously in both the

calculation of emergency stocks and the calculation of specific stocks

provided that those oil stocks satisfy all the conditions laid down in

these regulations for both types of stocks.

(1)

At all times, economic operators shall ensure that Availability of

emergency stocks and specific stocks are available and physically stocks.

accessible for the purposes of these regulations. Economic operators

shall ensure that stocks are identifiable and accountable and under

their control and that such stocks may be verified at any time. This

requirement shall also apply to any emergency stocks and specific

stocks that are commingled with other stocks held by economic

operators.

(2) Economic operators shall take all necessary measures to

prevent all obstacles and encumbrances that could hamper the

availability of emergency stocks and specific stocks. The Authority

may set limits or additional conditions on the possibility of

emergency stocks and specific stocks being held outside Malta.

(3) Where there is reason to implement the emergency

procedures provided for in regulation 20, the Authority shall prohibit,

and the economic operators shall refrain from taking, any measure

hindering the transfer, use or release of emergency stocks or specific

stocks held within Malta on behalf of another Member State.

(4) The Authority may issue any decision or give a directive as

it may deem necessary, and economic operators shall observe any

such decision or directive, to ensure that emergency stocks and

specific stocks are available and physically accessible for the

purposes of these regulations.

(1)

The Authority shall keep a continually updated and

detailed register of all emergency stocks held by Malta which do not

constitute specific stocks. Such register shall contain, in particular,

information needed to pinpoint the depot, refinery or storage facility

where the stocks in question are located, as well as the quantities

involved, the owner of the stocks and their nature, with reference to

the categories identified in the first paragraph of Section 3.1 of Annex

C to Regulation (EC) No 1099/2008.

(2) By the 25th February of each year following the entry into

force of these regulations, the Authority shall send to the Commission

a summary copy of the stock register referred to in sub-regulation (1)

showing at least the quantities and nature of the emergency stocks

included in the register on the last day of the preceding calendar year.

(3) The Authority shall also send to the Commission a full

copy of the register within fifteen days of a request made by the

Commission, and without prejudice to any data relating to any period

preceding the 1st January 2013, and may not bear upon data relating

to any period preceding the 1st January 2013. In this copy sensitive

data relating to the location of stocks shall be withheld.

(1)

The Government may set up a CSE, provided that

no more than one CSE or any other similar body may be set up. The

Government may set up the central stockholding entity at any location

within the Community. When the Government sets up a CSE, it shall

take the form of a body or service without profit objective and acting

in the general interest, and it shall not be considered to be an

economic operator within the meaning of these regulations.

(2) The main purpose of the CSE shall be to acquire, maintain

and sell oil stocks for the purposes of these regulations, or for the

purpose of complying with international agreements concerning the

maintenance of oil stocks. The CSE shall be the only body or service

upon which powers shall be conferred to acquire or sell specific

stocks.

(3) The Minister or the CSE may, for a specified period,

delegate tasks relating to the management of emergency stocks and,

with the exception of sale and acquisition, of specific stocks, but only

(a)

another Member State within which territory such

stocks are located or the CSE set up by that Member State.

Tasks thus delegated shall not be sub-delegated to other

Member States or to CSEs set up by them;

(b)

economic operators. Tasks thus delegated to

economic operators shall not be sub-delegated.

Where such a delegation, or any change or extension to

that delegation, involves tasks relating to the management of

emergency and specific stocks held in another Member State,

economic operators shall be authorised in advance by the Minister or

the CSE as the case may be, on whose account the stocks are held,

and by all Member States within which territories the stocks will be

held.

(4) The CSE shall, for the purposes of regulation 8(1) and (3),

publish

(a)

on an ongoing basis, full information, broken down

by product category, on the stock volumes that it may undertake

to maintain for economic operators, or, where appropriate,

interested CSEs

Provided that the CSE, in the case when stocks

shall be held within Malta, shall have the right to make the

delegation conditional upon its authorisation;

(b)

at least seven months in advance, the conditions

subject to which it is willing to provide services related to

maintaining the stocks for economic operators. The conditions

under which services may be provided, including conditions

relating to scheduling, shall also be determined by the Authority

or following a competitive procedure intended to determine the

best bid among operators or, where appropriate, interested

central stockholding entities.

(5) The CSE shall accept such delegations under objective,

transparent and non-discriminatory conditions. Payments by the

operators for the services of the central stockholding entity shall not

exceed the full costs of the services rendered and may not be required

until the stocks are constituted. The CSE may make its acceptance of

a delegation conditional upon the operator’s provision of a guarantee

or some other form of security.

(1)

Any economic operator on which the Authority

imposes stockholding obligations in order to fulfil its obligations

under regulation 3 shall have the right to delegate those obligations at

least in part and at the choice of the economic operator, but only to

(a)

if applicable, to the CSE; and, or

(b)

one or more other CSEs of other Member States

which have in advance declared themselves willing to hold such

stocks, provided that such delegations have been authorised in

advance both by the Minister and by all Member States within

which territories the stocks shall be held;

(c)

other economic operators which have surplus

stocks or available stockholding capacity outside of the territory

of Malta and when the stocks are held within the Community on

account of the Minister, provided that such delegation has been

authorised in advance both by the Minister and by all Member

States within which territories the stocks shall be held; and, or

(d)

other economic operators which have surplus

stocks or available stockholding capacity within Malta,

provided that such delegation has been communicated in

advance to the Authority. The Authority may impose limits or

conditions on such delegations.

(2) Obligations delegated in accordance with sub-regulation

(1)(c) and (d) may not be sub-delegated. Any change to or extension

of a delegation referred to in paragraphs (b) and (c) shall only take

effect if authorised in advance by the Minister and by all Member

States within which territories the stocks shall be held and which

authorised the delegation. Any change to or extension of a delegation

referred to in paragraph (d) shall be treated as a new delegation.

(3) The Authority may restrict the delegation rights of the

economic operators on which it imposes or has imposed stockholding

obligations

Provided that the Authority may not limit the delegation

rights of an economic operator to amounts corresponding to less than

10% of the stockholding obligation imposed on it, unless the Minister

has set up a CSE

Provided also that an economic operator shall have the

right to delegate at least 10% of the stockholding obligation imposed

on it to such CSE, which shall accept the delegation to it in respect

such amount

Provided further that the minimum percentage referred to

in this sub-regulation shall be increased from 10% to 30% by 31

December 2017.

(4) Without prejudice to the provisions of sub-regulations (1)

and (3), the Minister may impose an obligation on an economic

operator to delegate at least part of its stockholding obligation to the

CSE, if applicable, by means of an order published in the Gazette.

(5) The Authority shall inform economic operators of the

modalities to be used to calculate the stockholding obligations

imposed on them no later than two hundred days prior to the start of

the period to which the obligation in question relates. Economic

operators shall exercise their right to delegate stockholding

obligations to CSEs as applicable no later than one hundred and

seventy days prior to the start of the period to which the obligation in

question relates. Where economic operators are informed less than

two hundred days before the commencement of the period to which

the stockholding obligation relates, they may exercise their right to

delegate that obligation at any time.

(1)

The Minister, after consultation with the Authority, Specific stocks.

may direct that a minimum level of oil stocks shall be maintained, and

calculated in terms of number of days of consumption, in accordance

with the conditions set out in this regulation. Specific stocks shall be

owned by the Government or the CSE set up by it and shall be

maintained either on the territory of Malta, and, or other Member

States, as the case may be.

(2) Specific stocks can only be composed of one or more of

the following product categories, as defined in Section 4 of Annex B

to Regulation (EC) No 1099/2008

(a)

ethane;

(b)

liquefied petroleum gas;

(c)

motor gasoline;

(d)

aviation gasoline;

(e)

gasoline-type jet fuel (naphtha-type jet fuel or

JP4);

(f)

kerosene-type jet fuel;

(g)

other kerosene;

(h)

gas/diesel oil (distillate fuel oil);

(i)

fuel oil (high sulphur content and low sulphur

content);

(j)

white spirit and SBP;

(k)

lubricants;

(l)

bitumen;

(m)

paraffin waxes;

(n)

petroleum coke.

(3) Petroleum products constituting specific stocks shall be

identified by the Minister on the basis of the categories listed in sub-

regulation (2). The Minister shall ensure that, for the reference year

determined in accordance with the rules set out in regulation 3 and

concerning the products included in the categories used, the crude oil

equivalent of quantities consumed in Malta is at least equal to 75% of

inland consumption calculated using the method set out in the Second

Schedule.

(4) For each of the categories chosen by the Minister, the

specific stocks undertaken to be maintained by the CSE shall

correspond to a given number of days of average daily consumption

measured on the basis of their crude oil equivalent during the

reference year determined in accordance with the rules set out in

regulation 3. The crude oil equivalents referred to in the sub-

regulations (1) and (2) shall be calculated by multiplying by a factor

of 1.2 the sum of the aggregate ‘observed gross inland deliveries’, as

defined in Section 3.2.1 of Annex C to Regulation (EC) No 1099/

2008, for the products included in the categories used or concerned.

International marine bunkers shall not be included in the calculation.

(5) When the Minister has decided that specific stocks shall be

held by Malta, the Government shall send to the Commission a notice

to be published in the Official Journal of the European Union,

specifying the level of such stocks which the Minister has undertaken

to maintain and the duration of such undertaking which shall be at

least of one year. The notified minimum level shall apply equally to

all categories of specific stocks used by Malta.

(6) Such stocks shall be held for the full length of the notified

period without prejudice to the right of the Minister to authorise

temporary reductions to be undergone due solely to individual stock

replacement operations. The list of categories used by Malta shall

remain in effect for at least one year and may be amended only with

effect on the first day of a calendar month.

(7) In the case that the Government has not made a

commitment for the full length of a given calendar year to maintain at

least thirty days of specific stocks, at least one-third of the

stockholding obligation shall be held in the form of products

composed in accordance with sub-regulations (2) and (3).

(8) When less than thirty days of specific stocks are held, the

CSE shall draw up an annual report analysing the measures taken to

ensure and verify the availability and physical accessibility of its

emergency stocks as referred to in regulation 5. The CSE shall

document in the same report arrangements made to allow the

Government to control the use of these stocks in case of oil supply

disruptions. Such report shall be sent to the Minister and to the

Authority fifteen days prior to the end of the first month of the

calendar year to which it relates.

(1)

The CSE shall keep a continually updated and Managing

detailed register of all specific stocks held within Malta. Such register specific stocks.

shall contain, in particular, all information needed to pinpoint the

exact location of the stocks in question. The CSE shall also send to

the Authority a copy of the register within seven days of a request by

the Commission for a copy of such register. In this copy, sensitive

data relating to the location of stocks shall be withheld.

(2) Where specific stocks are commingled with other oil

stocks, the CSE shall prevent those commingled products from being

moved, to the extent of the proportion constituting specific stocks,

without the prior written authorisation of the Minister.

(3) The Minister shall take the necessary measures to confer

unconditional immunity from enforcement action on all specific

stocks maintained or transported within Malta, irrespective of

whether those stocks are owned by the Government or by other

Member States.

The delegations referred to in regulations 7 and 8 shall in The effect of

no way alter the obligations incumbent upon the Minister pursuant to delegations.

these regulations.

(1)

With regard to the levels of stocks to be held

pursuant to regulation 3, the Authority shall draw up statistical

summaries and submit them to the Minister in accordance with the

rules set out in the Fourth Schedule.

(2) The Authority may not include quantities of crude oil or

petroleum products which are subject to a seizure order or

enforcement action in its statistical summary of emergency stocks.

This also applies to stocks owned by companies that are bankrupt or

have entered into an arrangement with creditors.

(1)

If applicable, the CSE shall draw up and submit to

the Minister and to the Authority a statistical summary, for each

product category, showing the specific stocks existing on the last day

of each calendar month and specifying the quantities and the number

of days of average consumption in the reference year which those

stocks represent. If some of those specific stocks are held outside

Malta, it shall provide details of the stocks maintained in or by the

various Member States and central stockholding entities concerned. It

shall also provide a detailed indication of whether Government owns

all of those stocks or whether they are owned, in whole or in part, by

its CSEs, if applicable.

(2) If applicable, the Authority shall also draw up and submit

to the Commission a summary of the specific stocks located within

Malta and owned by other Member States or CSEs in other Member

States, showing the stocks existing on the last day of each calendar

month and broken down into the product categories identified

pursuant to regulation 9(5). In that summary, the Authority shall also

indicate, in each case, the Member State or central stockholding entity

concerned and the quantities involved.

(3) The statistical summaries referred to in sub-regulations (1)

and (2) shall be submitted during the calendar month following that to

which they relate.

(4) Copies of the statistical summaries shall also be sent

immediately upon request by the Minister. Such requests may be

made no later than five years after the date to which the data in

question relate.

(1)

The economic operator shall submit to the

Authority a monthly statistical summary of the levels of commercial

and emergency stocks held within Malta. Any data should be

provided to the level of detail and categorisation requested by the

Authority

Provided that such detail and categorisation shall be

proportionate to the level required for the Authority to fulfil its

reporting and verification obligations under these regulations.

(2) The data referred to in sub-regulation (1) shall reach the

Authority by not later than the fifteenth day after the end of the month

for which the report is due, save as otherwise provided by the

Authority. Such data shall be submitted in the form, manner or format

required by the Authority, including in electronic form.

(1)

When calculating stockholding obligations under Biofuels and

regulations 3 and 9, biofuels and additives shall be taken into account additives.

only where they have been blended with the petroleum products

concerned.

(2) When calculating the stock levels actually maintained,

biofuels and additives shall be taken into account when

(a)

they have been blended with petroleum products

concerned; or

(b)

they are stored on the territory of Malta

Provided that such biofuels and additives shall be taken

into account only when legally binding obligations are in force

ensuring that biofuels are to be blended with petroleum products held

pursuant to stockholding requirements set out in these regulations and

that they are to be used in transportation.

(1)

The Authority or the CSE, as the case may be, shall Reviews of

place sensitive data relating to the location of stocks at the disposal of emergency

preparedness

the Commission’s employees or its authorised agents within one week and

stockholding.

of an order given in writing by the Minister in terms of this sub-

regulation.

(2) The Authority and those responsible for maintaining and

managing emergency and specific stocks may be inspected and, when

inspected, they shall provide assistance to the persons authorised by

the Minister to perform reviews of emergency preparedness and

stockholding. Those persons shall be granted in particular the right to

consult all documents and registers relating to the stocks and have

right of access to all sites on which stocks are held and to all related

documents.

(3) Officials, agents and other persons working under

Commission supervision and members of the Coordination Group

shall not disclose any information which has been gathered or

exchanged pursuant to this regulation and which, by its nature, is

covered by professional secrecy, such as the identity of the owners of

stocks.

(4) The Authority, economic operators and if applicable the

CSE shall preserve all data, records, summaries and documents

relating to emergency stocks and specific stocks for a period of at

least five years.

These regulations shall be without prejudice to, and shall

in no way affect, the level of protection of individuals with regard to

the processing of personal data under the Data Protection Act.

(1)

The Minister may direct in writing the Authority

and if applicable the CSE to release quickly, effectively and

transparently some or all of the emergency stocks and specific stocks

in the event of a major supply disruption, and to impose general or

specific restrictions on consumption in line with the estimated

shortages, inter alia, by allocating petroleum products to certain

groups of users on a priority basis.

(2) The Authority shall at all times have contingency plans to

be implemented in the event of a major supply disruption and shall

provide for organisational measures to be taken to allow those plans

to be implemented. Upon request, the Authority shall inform the

Commission of contingency plans and of the corresponding

organisational arrangements.

(3) In the event of an effective international or Community

decision to release stocks affecting Malta, the Minister may direct in

writing to the Authority to order economic operators and the CSE to

use emergency stocks and specific stocks to fulfil international

obligations under that decision. In so doing, the Minister shall notify

the Commission immediately.

(4) The Minister may direct in writing the Authority to order

economic operators to release emergency and specific stocks below

the compulsory minimum level set by these regulations in amounts

immediately necessary for an initial response in cases of particular

urgency or in order to meet local crises. In the event of such release,

the Minister shall inform the Commission immediately of the amount

released.

(5) Where sub-regulations (3) or (4) are applied, the Minister

may direct in writing to the Authority to order economic operators

and the CSEs, as may be applicable, to temporarily permit that stocks

are held at levels lower than those stipulated by these regulations.

(6) As from 1 January 2013, economic operators and the

CSEs, as may be applicable, shall retain data and documentation

relating to stocks, held for the purpose of these regulations, for a

period of time of at least five years.

(1)

The Authority may impose an administrative fine Administrative

in terms of article 31 of the Act upon any person who infringes any fines.

provision of these regulations or who fails to comply with any

directive or decision given by the Authority in ensuring compliance

with these regulations.

(2) Without prejudice to sub-regulation (1), an economic

operator who -

(a)

does not submit data to the Authority within the

established time-frame; and, or

(b)

supplies information which is erroneous or

misleading or inaccurate; and, or

(c)

submits data in a format which is different from

that requested by the Authority; and, or

(d)

by any act or omission whatsoever and howsoever

described, fails to maintain the oil stocks as required to be held

by the Authority in terms of these regulations,

shall be liable to the imposition of an administrative fine which shall

not exceed one hundred thousand euro (€100,000) for each

contravention and, or six hundred euro (€600) for each day of non-

compliance.

Any person who -

Offences and

penalties.

(a)

fails to comply with any lawful order made by an

inspector, employee or officer of the Authority in the

performance of his duties; and, or

(b)

hinders, obstructs, molests or interferes or attempts

to hinder, obstruct, molest or interfere with the performance of

the duties of any inspector, any employee or officer of the

Authority; and, or

(c)

makes a declaration for any of the purposes of

these regulations which is false, misleading or incorrect in any

material particular,

shall be guilty of an offence against these regulations and shall, on

conviction, be liable to imprisonment for not more than eighteen

months, or to a fine (multa) of not more than sixty-nine thousand euro

(€69,000) or to one thousand three hundred euro (€1,300) for each

day during which the offence persists, or to both such fine and

imprisonment.

The Crude Oil and Petroleum Products (Minimum Security

Stocks and Crisis Management) Regulations, 2002 are hereby

revoked.

First Schedule

Regulation 3

METHOD FOR CALCULATING THE CRUDE OIL EQUIVALENT

OF IMPORTS OF PETROLEUM PRODUCTS

The crude oil equivalent of imports of petroleum products, as referred to in

regulation 3, must be calculated using the following method

The crude oil equivalent of imports of petroleum products is obtained by

calculating the sum of the net imports of crude oil, NGL, refinery feedstocks and

other hydrocarbons as defined in Section 4 of Annex B to Regulation (EC) No

1099/2008, adjusting the result to take account of any stock changes, deducting 4%

for naphtha yield (or, if the average naphtha yield within Malta is greater than 7%,

deducting the net actual consumption of naphtha or the average naphtha yield) and

adding this to the net imports of all other petroleum products excluding naphtha,

also adjusted to take account of stock changes and multiplied by a factor of 1,065.

International marine bunkers are not included in the calculation.

Second Schedule

Regulation 3

METHOD FOR CALCULATING THE CRUDE OIL EQUIVALENT

OF INLAND CONSUMPTION

For the purpose of regulation 3, the crude oil equivalent of inland

consumption must be calculated using the following method

Inland consumption is the sum of the aggregate ‘observed gross inland

deliveries’, as defined in Section 3.2.1 of Annex C to Regulation (EC) No 1099/

2008, of the following products only: motor gasoline, aviation gasoline, gasoline-

type jet fuel (naphtha-type jet fuel or JP4), kerosene-type jet fuel, other kerosene,

gas/diesel oil (distillate fuel oil) and fuel oil (high sulphur content and low sulphur

content) as defined in Section 4 of Annex B to Regulation (EC) No 1099/2008.

International marine bunkers are not included in the calculation.

The crude oil equivalent of inland consumption is calculated by multiplying

by a factor of 1,2.

Third Schedule

Regulation 4 (1)

METHODS FOR CALCULATING THE LEVEL OF STOCKS HELD

The following methods must be used to calculate stock levels

Without prejudice to the case addressed in regulation 4(3), no quantity may

be counted as stock more than once.

Crude oil stocks are reduced by 4%, which corresponds to the average

naphtha yield.

Stocks of naphtha and petroleum products for international marine bunkers

are not included.

Other petroleum products are included in the stock-count using one of the

two methods set out below. The method chosen must continue to be used

throughout the whole calendar year in question.

The Authority may

(a)

include all other stocks of the petroleum products identified in

the first paragraph of Section 3.1 of Annex C to Regulation (EC) No 1099/

2008 and calculate the crude oil equivalent by multiplying the quantities by a

factor of 1,065; or

(b)

include stocks of only the following products: motor gasoline,

aviation gasoline, gasoline-type jet fuel (naphtha-type jet fuel or JP4),

kerosene-type jet fuel, other kerosene, gas/diesel oil (distillate fuel oil) and

fuel oil (high sulphur content and low sulphur content) and calculate the

crude oil equivalent by multiplying the quantities by a factor of 1,2.

The calculation may include quantities held

-

in refinery tanks,

-

in bulk terminals,

-

in pipeline tankage,

-

in barges,

-

in intercoastal tankers,

-

in oil tankers in port,

-

in inland ship bunkers,

-

in storage tank bottoms,

-

as working stocks,

-

by large consumers as required by law or otherwise controlled

by governments.

However, those quantities except for any held in refinery tanks, in pipeline

tankage or in bulk terminals, may not be included when calculating levels of

specific stocks where such stocks are calculated separately from emergency stocks.

The calculation may never include

(a)

crude oil not yet produced;

(b)

quantities held

-

in pipelines,

-

in rail tank cars,

-

in seagoing ships’ bunkers,

-

in service stations and retail stores,

-

by other consumers,

-

in tankers at sea,

-

as military stocks.

When calculating stocks, the Authority must reduce the quantities of stocks

calculated as set out above by 10%. That reduction applies to all quantities

included in a given calculation.

However, no 10% reduction is to be applied when calculating the level of

specific stocks or the levels of the different categories of specific stocks where

those stocks or categories are considered separately from the emergency stocks,

particularly with a view to verifying compliance with the minimum levels laid

down by regulation 9.

Fourth Schedule

Regulation 14

Rules for the preparation and submission to the Minister of statistical summaries

of stocks to be held pursuant to regulation 3

The Authority must draw up and submit to the Minister, on a monthly basis, a

definitive statistical summary of the level of stocks actually held on the last day of

the calendar month, calculated either on the basis of the number of days of net oil

imports or on the basis of the number of days of inland oil consumption, in

accordance with regulation 3. The statistical summary must provide precise details

of why the calculation is based on the number of days of imports or, conversely, on

the number of days of consumption and must specify which of the calculation

methods set out in the Third Schedule was used.

If some of the stocks included when calculating the level of stocks held

pursuant to regulation 3 are held outside national territory, each summary shall

give details of the stocks held by the various Member States and CSEs concerned

on the last day of the period to which it relates. In its summary, the Authority shall

also indicate, in each case, whether the stocks are being held pursuant to a

delegation request made by one or more economic operators or whether they are

being held at its request or at the request of the CSE if applicable.

For any stocks held in Malta on behalf of other Member States or CSEs, the

Authority shall draw up and submit to the Minister a summary showing the stocks

existing on the last day of each calendar month, broken down by product category.

In that summary, the Authority shall also indicate, in particular, the Member State

or CSE concerned and the quantities involved in each case.

The statistical summaries referred to in this Schedule must be submitted to

the Commission within fifty-five days of the end of the month to which they relate.

Those same summaries shall also be submitted by the Authority within two months

of a request by the Commission.

€1.80