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The National Petroleum Council - An Oil and Natural Gas Advisory Committee to the Secretary of Energy

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By Name
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Emergency
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Repor t s by Year
Or der i ng I nf o
Origin of the NPC | NPC Studies | NPC Study Procedures | Meeting Procedures |
NPC Staff and Finances | NPC Officers
National Petroleum Council
Origin and Operations
INTRODUCTION
The National Petroleum Council (NPC), a federally chartered and privately funded advisory
committee, was established by the Secretary of the Interior in 1946 at the request of President
Harry S. Truman. In 1977, the U.S. Department of Energy was established and the NPCs
functions were transferred to the new Department. The purpose of the NPC is solely to advise,
inform and make recommendations to the Secretary of Energy with respect to any matter relating
to oil and natural gas, or to the oil and gas industries submitted to it or approved by the
Secretary. The NPC does not concern itself with trade practices, nor does it engage in any of the
usual trade association activities.
The NPC is chartered by the Secretary of Energy, under the provisions of the Federal Advisory
Committee Act of 1972. The Council membership of approximately 200 persons is selected and
appointed by the Secretary of Energy. Individual members serve without compensation as
representatives of their industry or associated interests as a whole, not as representatives of their
particular companies or affiliations.
In selecting the membership, special attention is given by the Secretary to assure a well-balanced
representation from all segments of the oil and gas industries, all sections of the country, and
from large and small companies. The Council also has members with interests outside of oil or
gas operations, including representatives from academic, financial, research, Native American,
and public interest organizations and institutions.
The advice of the NPC is transmitted to the Secretary in the form of reports approved by the
Council and is rendered to the government as a public service. The cost of providing this service
is borne by voluntary contributions from the Council members. The NPC conducts studies in
response to specific requests originating from or approved by the Secretary of Energy. The
Council does, however, reserve the right to decline to undertake any study requested of it by the
Secretary, if it determines the subject matter to be inappropriate for Council consideration.
At the first meeting in each calendar year, the Council elects a Chair and Vice Chair, the chairs
and members of the Agenda and the Appointment Committees, and the at-large members of the
Cochairs Coordinating Committee. The function of the Agenda Committee is to review and
make recommendations to the Council regarding requests from the Secretary of Energy for
advice and information on specific subjects. The Appointment Committee advises the Chair of
the Council in designating members of a committee to be responsible for developing and
presenting a particular study to the Council for its consideration. Under the leadership of the NPC
Chair and the Secretary of Energy, the Cochairs Coordinating Committee provides a flexible
mechanism through which the leadership of the Council and the Department can jointly review
the progress of ongoing studies and the industry resources allocated to them, as well as identify
issues for possible future consideration by the Council.
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ORIGIN OF THE NPC
The origin of the National Petroleum Council stems from the experience of government/industry
cooperation during World War II. The importance of petroleum to the war effort was cited by
President Roosevelt in appointing Secretary of the Interior Harold L. Ickes as Petroleum
The National Petroleum Council - An Oil and Natural Gas Advisory Committee to the Secretary of Energy
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Coordinator for Defense. Secretary Ickes in turn recognized the value of industry advice in the
development of petroleum policies and appointed the Petroleum Industry War Council, whose
charge was to:
...mobilize most effectively all resources and abilities of the petroleum industry to
deal with the emergency conditions under which the industry must operate, and to
provide a competent, responsible and representative body.
In May 1946, President Truman stated in a letter to the Secretary of the Interior that he had been
impressed by the contribution made through industry/government cooperation to the success of
the World War II petroleum program. He felt that it would be beneficial if this close relationship
were to be continued and suggested that the Secretary of the Interior establish an industry
organization to advise the Secretary on oil and natural gas matters. On J une 18, 1946, the
Secretary of the Interior established the National Petroleum Council as the peacetime successor to
the Petroleum Industry War Council.
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NPC STUDIES
Since its formation in 1946, the Council has prepared over 200 reports, which deal with virtually
every aspect of oil and gas operations. NPC reports include: examinations of the ongoing and
future operations and requirements of the U.S. oil and gas industries; statistical studies
descriptive of these industries; delineations of the U.S. oil and gas resource base; and
comprehensive analyses of the domestic energy supply/demand situation. On numerous
occasions, the Council has provided advice on governmental response to emergency situations,
both prospective and actual. Other studies have focused on environmental and energy
conservation, technology, and legal issues.
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NPC STUDY PROCEDURES
The procedures currently governing the preparation of Council reports are based on guidelines set
forth in the Federal Advisory Committee Act of 1972, the NPC Articles of Organization as
amended J une 11, 1980, and on operational experience derived since the Councils inception in
1946.
A request for the Council to undertake a study must originate from or be approved by the
Secretary of Energy and be in the form of an official request letter. Upon receipt, a request letter
is reviewed by the Councils Agenda Committee for recommendation as to whether the request is
proper and advisable for Council consideration. This recommendation is then submitted to the
Council, which decides whether to accept or reject the study request.
Study Group Establishment
After a study request has been approved by the Council, the NPC Chair, with the advice of the
Appointment Committee and the approval of the Secretary of Energy, appoints a representative
group of Council members to a temporary working committee. If the request is urgent and the
Agenda Committees recommendation is favorable, the Council Chair may establish a committee
to begin work immediately. The designated committee is responsible for developing a proposed
response for the Councils consideration.
The committee determines an organizational structure that will best fulfill its needs in completing
the study. Depending upon the nature of the study request, a committee is generally aided by a
subcommittee or, in the case of a larger study, a coordinating subcommittee. The majority of
subcommittee members represent their committee member; however, the members of a
subcommittee do not have to be Council members or affiliated with Council members
organizations. A coordinating subcommittee assists in compiling the input of various single-
The National Petroleum Council - An Oil and Natural Gas Advisory Committee to the Secretary of Energy
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purpose technical subcommittees or task groups. The nucleus of a coordinating subcommittee is
usually composed of the chairs of the technical subcommittees and/or task groups.
The Chair of the Council establishes all NPC study committees, subcommittees, and task groups
and appoints their membership. The Secretary of Energy, or the designated representative of the
Secretary, approves these actions and designates a full-time government official to serve as the
government cochair of each group.
Study Execution
Following the organizational meeting of a committee, the subcommittees and task groups hold a
series of meetings to develop and compile the data requested by the committee. The data and
information are prepared in the form of working drafts or separate sections thereof and are
assimilated at progressive levels of organization under the ongoing supervision of the
coordinating subcommittee and/or committee.
Study Approval
When a draft report has been completed by a study committee, it is presented to the full Council
for its consideration. The Council decides whether to reject, modify, or adopt the report. A draft
report is not a "report of the National Petroleum Council" until its adoption by the Council in
plenary session. Upon adoption, a report is formally transmitted to the Secretary of Energy by the
Chair of the Council. All NPC reports are available to the public.
All study committees, subcommittees, and task groups are established in response to specific
requests and are disbanded upon completion of their individual assignments or transmittal of a
final report to the Secretary of Energy.
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MEETING PROCEDURES
The National Petroleum Council meets in Washington, D.C. at least twice a year and study
groups meet as necessary. The time, place, and agenda of each Council and study group meeting
are determined by its respective chair, with the concurrence of the Department of Energy.
To constitute a quorum for the transaction of business at a Council meeting, one-third of the
membership must be present. One-half of the membership of a committee or subgroup must be
in attendance in order to transact business at a meeting. Action at a Council, committee, or
subgroup meeting is taken by a majority of members in attendance. Meetings are open to the
public. Documents discussed or presented at a meeting are available for inspection and
duplication at the NPC office by members of the public. The government representative in whose
presence a meeting is conducted is authorized to adjourn a meeting whenever the representative
considers adjournment to be in the public interest.
Verbatim transcripts are kept of all proceedings of Council and committee meetings, and detailed
minutes are prepared of subcommittee and task group meetings. The accuracy of all minutes is
certified by the chair of the group and by a full-time officer or employee of the government
present during the proceedings. These records are available for public inspection at the NPC
office and the U.S. Department of Energy.
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NPC STAFF AND FINANCES
The NPC maintains a small staff in Washington, D.C., headed by an Executive Director. The
function of this staff is to assist in the coordination of study efforts and to provide administrative
and logistical support to the preparation and distribution of Council studies.
The Councils operations are privately funded through the voluntary contributions of its
The National Petroleum Council - An Oil and Natural Gas Advisory Committee to the Secretary of Energy
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members, based on a budget approved annually by the membership. These funds are used
exclusively to cover the expenses of NPC meetings and the NPC office, including employees
salaries and expenses, rent, printing, etc. None of these funds are paid to government personnel,
and the NPC receives no government funds.
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NPC OFFICERS
J ames T. Hackett, Chair
Charles D. Davidson, Vice Chair
Marshall W. Nichols, Executive Director
The Hon. Steven Chu, Secretary, U.S. Department of Energy
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Revised 12/21/12

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