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the Federal Government began mandatory allocations of crude
oil. However, the shortage began to decrease by the spring
of 1974. In April 1974, following intensive lobbying by
petitioner’s officers, the Federal Government allocated to
petitioner 100 percent of its crude oil needs through
June 30 of that year. Petitioner’s annual reports for 1973
and 1974 state that the company was able to adequately
provide for the fuel needs of its member-patrons during
those years.
Prices of crude oil changed very little from mid-1974
when the Arab oil embargo ended until 1979. During that
period, the spot price for crude oil was at or below the
official selling price for Arabian Gulf crude oil.
The price of crude oil increased rapidly in early 1979
due in large part to a political revolution in Iran which
cut off a substantial portion of the world’s crude oil
supply. British Petroleum, one of petitioner’s primary
suppliers, had previously obtained a substantial portion
of its crude oil from Iranian producers. The Iranian oil
shortage forced British Petroleum to reduce the amount of
crude oil it delivered to its customers, including
petitioner.
In February 1979, petitioner’s Coffeyville refinery
was operating below capacity. On March 1, 1979, petitioner
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