(a) Order and timing for processing of applications.

1. (1) Each application shall be dated and assigned a case number indicating the order in which it has been received and will be processed.
2. (2) The Arkansas Energy Office reserves the right to depart from the procedure described in subsection (a)(1) of this section when required by extraordinary circumstances.

3. (3)

   1. (A) As a general rule, all applications will be processed, and orders will be issued, as quickly as possible.
   2. (B) In no event shall a decision on an order be delayed more than ten (10) business days from the date assigned to it unless:

(i) Additional information is required for any reason;

1. (ii) No product is available from the state set-aside system; or

   1. (iii) The applicant is a dealer with an allocation from his or her regular supplier, in which case such decision may take longer to ensure that needs of priority users can be met.

(b) Records. Records shall be maintained in which the numbered applications, names of suppliers, brokers, distributors, and applicants, as well as the type and amount of petroleum products requested, will be stored.

1. (c) Evaluation.
2. (1) No assignment shall be made to applicants who can obtain sufficient amounts of petroleum products through normal supply channels but are unwilling to pay the selling price.

3. (2) No assignment shall be made unless the justification and product end-use stated indicate, in the judgment of the office, that an emergency or hardship exists relating to the continuation of:

   1. (A) Emergency services;
   2. (B) Essential agricultural activities; or
   3. (C) Essential industrial activities, as defined herein.

4. (3) If at any time during a given month applications are expected to exceed remaining product in the set-aside system, applicants may be granted relief based upon a pro-rata share of the remaining product and in consideration of the following priority uses, without regard to order listed below:

   1. (A) Agricultural production including perishable agricultural commodity transport and distribution;
   2. (B) Aviation ground support vehicles and equipment;
   3. (C) Cargo, freight, and mail hauling by truck;
   4. (D) Communications companies;
   5. (E) Emergency medical services;
   6. (F) Energy production and energy suppliers;
   7. (G) Firefighting units;
   8. (H) Government critical maintenance activities or mission-essential United States Department of Defense requirements;
   9. (I) Healthcare facilities;
   10. (J) Law enforcement;
   11. (K) Marine shipping (commercial shipping on navigable state waterways);
   12. (L) Public and community and school transportation; and

   13. (M) Public utility services, including water and sanitation.

       1. (d) Investigations. In evaluating applications for assignments from the set-aside system, the office may:
5. (1) Initiate an investigation of any statement or justification made therein; and (2) Take into account any relevant information obtained from such investigation in its decision-making process.

(e) Amount of product assigned. In evaluating the amount of a particular petroleum product to be assigned, the office may consider, among other things, the following:

1. (1) Amount of a particular product available in the total set-aside system for the month;
2. (2) Number of applications received to date for that particular supplier or broker;
3. (3) Amount requested;
4. (4) Historical demand;
5. (5) Growth factors;
6. (6) Daily consumption; and
7. (7) Storage capacity.

(f) Assignment.

1. (1) Upon consideration of an application and other relevant information, the office shall issue an assignment granting or denying the applicant's requests.

2. (2) The assignment shall include the following:

   1. (A) A brief statement summarizing the action taken, including comments;
   2. (B) A statement indicating that it is effective for ten (10) business days from date of issuance;
   3. (C) A statement indicating the process by which a person aggrieved by the order may appeal it; and
   4. (D) A statement directing the prime supplier or broker to furnish the product assigned through the distributor, if identified, or the applicant named therein.

(g) Notification.

1. (1) The office shall serve a copy of an assignment authorizing an application upon the:

   1. (A) Applicant;
   2. (B) Prime supplier or broker; and
   3. (C) Distributor, if identified.
2. (2) The office shall notify applicants of decisions denying an application.
3. (3) The office may follow up the notification process described in subdivisions (g)(1) and (2) of this section with additional communications in order to expedite the delivery of product and to ensure that such delivery is made within the required ten-business-day period.

(h) Supply lines.

1. (1) To the maximum extent possible, historic supply lines will be honored.

2. (2)

   1. (A) If it becomes necessary for supply lines to be crossed in order to assist an otherwise qualified applicant, the office may require any supplier or broker having product in the state set-aside system to supply said applicant, provided that said applicant can satisfy the existing credit, insurance, or other reasonable requirements of the prime supplier or broker involved.

   2. (B) This provision shall apply in extraordinary cases only.

      1. (i) Suppliers’ responsibilities.
3. (1) Suppliers shall provide the assigned amount of a product subject to the set-aside program to an applicant upon receipt of a duly authorized assignment from the office, unless the assignment creates an undue economic burden as defined in Arkansas Code § 15-72-804(d)(2)(B).
4. (2) A duly authorized assignment shall entitle the applicant to receive product from any reasonably convenient local wholesale purchaser-reseller of the prime supplier or broker from which the set-aside assignment has been made.

5. (3)

   1. (A) Wholesale purchaser-resellers of prime suppliers or brokers shall, as nonprime suppliers, honor such duly authorized assignment upon presentation, and shall not, without good cause, delay deliveries required by said authorized assignment.
   2. (B) Such deliveries should be confirmed with the prime supplier or broker.
6. (4) Any nonprime supplier which provides an allocated product pursuant to an authorized assignment from the office shall in turn receive from its supplier or broker an equivalent volume of the allocated product which shall not be considered part of its allocation entitlement.