§ 241. Functions of the Corporation.
§ 242. Powers of the Corporation.
§ 243. Executive Council May Give Direction and Require Information.
Editor’s note: Section 3 of PL 15-8 enacted a new chapter 2 of title 27 entitled Federated States of Micronesia Petroleum Corporation Act of 2007. While section 3 of PL 15-8 did not create subchapters for this chapter the numbering of the sections indicated an intent to have the chapter subdivided into subchapters. This has been done for easier reference and to comport with standard code format.
(1) to operate and manage the Works, either directly or through contracting out such management to third parties;
(2) to secure contracts with Product suppliers who will provide the required fuel Products at the lowest cost through competitive bidding to the extent practicable;
(3) to provide oil and gas distribution services on the basis of commercially accepted practices, treating all purchasers of Products on equitable terms in accordance with its published prices and requiring all users to pay for fuel purchased; provided that nothing in this subsection shall prevent the Corporation from using subsidies received from governmental, international or private sources to reduce the overall costs charged to users of public utilities services;
(4) to plan for the continued security of Product supply in the FSM;
(5) to maintain and operate the Works so as to minimize the likelihood of interruption of supply, and to handle the Product in a manner that protects the environment, the safety, and the health of employees and the public;
(6) to make safety, health and environmental considerations a priority in planning, and in the development of new Products and processes; to advise promptly, appropriate officials, employees, customers and the public of information on significant industry-related safety, health and environmental hazards, and to recommend protective measures;
(7) to invest surplus revenues of the Corporation in the maintenance, expansion and improvement of Product facilities and services;
(8) to represent the Federated States of Micronesia with regard to regional fuel supply initiatives as requested by the Government of the Federated States of Micronesia; and
(9) to do all those things which shall be necessary or incidental to the performance of its functions under this chapter.
Source: PL 15-8 § 22.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.
(1) In performing the functions authorized under this chapter or under any other law of the Federated States of Micronesia, the Corporation shall have the capacity to exercise all powers normally exercised by a corporation, including, but not limited to, the following:
(a) to adopt, alter, and use a corporate seal;
(b) to adopt and amend bylaws governing the conduct of its business and the exercise of its powers;
(c) to sue and be sued in its corporate name;
(d) to acquire, in any lawful manner, real, personal, or mixed property, either tangible or intangible; to hold, maintain, use, and operate such property; and to sell, lease, or otherwise dispose of such property;
(e) to, subject to section 251 of this chapter and the laws of the Federated States of Micronesia, borrow or raise any sum or sums of money and to issue corporate bonds on such security and upon such terms as may from time to time be deemed necessary for the expansion and improvement of the Works;
(f) to retain and terminate the services of employees, agents, attorneys, auditors, and independent contractors upon such terms and conditions as it may deem appropriate; and
(g) to do all such other things as may be deemed incidental to or conducive to the attainment of the responsibilities of the Corporation.
(2) Without limiting the generality of the powers given to it by subsection (1) of this section, and in addition to any other powers provided for by this chapter, the Corporation shall have the following specific powers—
(a) to acquire, lease, construct, maintain and operate facilities, plant, equipment and infrastructure associated with the supply of Product and the related activities of the Corporation; to erect Works, and install any necessary equipment, machinery and plant for any purpose related to the functions of the Corporation;
(b) to acquire, lease and take over in any lawful manner the business, property, assets, and liabilities of any preexisting entity relating to fuel storage and distribution;
(c) to purchase, lease or otherwise acquire and maintain such personal and real property as the Corporation may from time to time deem necessary for the furtherance of its functions;
(d) to do all such things as it deems expedient to enter into any contract for the sale, lease or purchase of property related to the performance of its functions;
(e) to hire out plant or equipment of the Corporation and to enter into contracts for its operation and management;
(f) to fix, charge and recover rates and fees for the supply of Product and for any other service provided by the Corporation;
(g) to fix, charge and recover any surcharge on rates and fees for the supply of Product during any period when it may be reasonably anticipated that the supply of Product may be affected by a shortage of supply;
(h) to ration or differentially allocate the supply of Product consistent with reasonable business practices and the needs of customers;
(i) to recover the capital cost of supplying Product or providing other services to particular premises on such terms and conditions as the Corporation determines;
(j) to investigate any failure to comply with this chapter, or any act that effects the ability of the Corporation to provide services under this chapter, and to take such steps as it considers necessary to secure compliance with this chapter or to prevent interference with the activities of the Corporation; and
(k) to set and to enforce standards for work done by contractors and tradesmen relating to the supply of Product and any other service provided by the Corporation.
Source: PL 15-8 § 23.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.
The powers, functions and discretion of the Corporation, its Board of Directors and its officers shall be subject to the right and power of the Executive Council to—
(1) request, and obtain from the Corporation, such returns, accounts, and other information as the Executive Council may, from time to time, require, and to institute any investigation, hearing, audit or other informational process as the Executive Council shall deem appropriate; and
(2) set the terms and timing of any subsequent divestment of the assets and operations of the Corporation or for the issuance of common shares of the Corporation; provided any such divestment must provide for the payment or satisfaction of all indebtedness incurred in the formation and operation of the Corporation for which the Government of the Federated States of Micronesia may be obligated or a full and complete release of the Government of the Federated States of Micronesia from liability for the repayment of such loans or indebtedness.
Source: PL 15-8 § 24.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.