Obligation of Funds for Purchase of Oil for Strategic Petroleum Reserve

The Department of Energy (DOE) questioned when its appropriation to buy oil for its Strategic Petroleum Reserve program may be considered obligated. In accordance with interagency agreements, the Defense Fuel Supply Center (DFSC) will act as the DOE's agent to purchase the oil. If an order is placed by DOE, acting alone, the funds may be considered obligated at that time. Since the procurement is not governed by the Economy Act, the funds may remain available for purchase by DFSC for the DOE after December 31, 1978.