PROGRAM DETAILS - U.S. Department of Energy

NPOSR: The NPR-3 and RMOTC facilities are operated by FE's Office of Oil and Natural Gas.
The operations of the NPOSR office focuses on managing and coordinating the efforts associated
with NPR-1 equity finalization, NPR-1 environmental cleanup and advancing the commercial
development of oil shale and other unconventional fuels.
Recent Organizational Accomplishments and Strengths
SPR: The organizational accomplishments and strengths of the SPR are exemplified through our
emergency response actions to address U.S. supply shortages.
SPR Emergency Drawdowns: The President has authorized the emergency drawdown of the
SPR twice, both in coordination with IEA releases. The first drawdown was conducted in
concert with the Desert Storm Invasion in January 1991. The SPR awarded contracts for 17.3
million barrels. The second drawdown was conducted in response to Hurricane Katrina in 2005.
The SPR awarded contracts for 11 million barrels. This release was preceded by a release of 9.8
million barrels through exchanges.
SPR Releases through Exchange: The SPR has used its "acquisition by exchange" authority, i.e.,
loans, on a number of occasions to respond quickly to both large-scale and small, localized
disruptions. Examples of large scale disruptions are hurricanes Ivan in 2004 (5.4 million barrels
loaned) and Katrina in 2005 (9.8 million barrels). Examples of smaller exchanges are temporary
ship channel closings or pipeline problems that prevent scheduled deliveries to a refinery.
Exchange authority was also used on a large scale in 2000 when a competitive exchange of 30
million barrels was held to address concerns over low heating oil stocks.
Another significant accomplishment has been the acquisition of free additional oil for the SPR
through the use of "deferred deliveries" in backwardated oil markets. SPR's oil acquisition
procedures permit the deferral of contractually scheduled deliveries if the contractor provides
additional premium barrels to DOE as consideration for the delay. Through the exchanges and
deferrals of deliveries, the SPR has acquired more than 10 million additional barrels of oil valued
at nearly $300 million.
NEHHOR: Although not yet used, DOE has implemented an on-line sales platform for the
NEHHOR that will allow completion of a competitive sale and award of contracts within two
days. DOE exercises the system with industry every winter to assure industry's familiarity with
the sales system and to receive feedback for continual improvement.
NPOSR: The NPOSR has developed the DOE positions for NPR-1 equity finalization and received
decisions on several zones. The environmental cleanup activities of NPR-l are being transferred to
the U.S. Army Corps of Engineers and the cleanup and divestiture of the NPR-2 properties is nearing
completion. The NPOSR office has provided all technical support to the Strategic Unconventional
Fuels Task Force and was instrumental in the research and development of two reports published by
the Task Force that identified major Federal actions needed to accelerate industry development.
NPR-3 production of crude oil in FY 2007 generated sales revenues totaling $6.1 million. Profits
totaled over $0.6 million for a return on costs of 12 percent. RMOTC supports testing and