NSC 26 August 19 194R NOTE BY THE EXECUTIVE SECRETARY to the NATIONAL SECURITY COUNCIL on I SANACC 398 4 At its 12th Meeting the National Security Council referred SANACC 398 h to the NSC Staff to prepare comments and recommenda tions thereon for consideration by the Council Accordingly the NSC Staff with the advice and assistance of representatives of the Departments of State the Army the Navy and the Air Force and of the National Security Resources Board and the Central In telligence Agency submits the enclosed Report fer consideration- by the National Security Council as an alternative to SANACC 398 4 It is recOmmended that if the enclosed Report is adopted by the Council it be submitted to the President with the recommended tion that he approve the Conclusions contained therein and direct that they be implemented by all appropriate Executive Departments and Agencies of the S Government under the coordination of the Secretary of State It is suggested_that special security precautions be taken in the handlinggo the encloseaneport SOUERS Executive Secretary Distribution The Secretary of State The Secretary of Defense The Secretary of the Army The Secretary of the Navy The Secretary of the Air Force The Chairman National Security Resources Board NSC 26 August 19 19#8 NSC 26 A REPORT BY TEE NATIONAL SECURITY COUNCIL on_ DEMOLITION AND ABANDONMENT FACILITIES Ist MIPD EAST Reference SANACC 398 # 4 THE PROBLEM 1 To determine the policy of the United States with respect to demolition and abandonment of oil facilities and fields in the Middle East ANALYSIS 2 Throughout this study the expression abandonment of oil _wells should be interpreted as indicating the proper plugging of oil wells I 3 The Joint Chiefs of Staff have concluded that for the pres ent the Allies cannot expect to hold Middle Eastern oil against a determined attack by the USSR and have pointed out the consequent desirability of making plans and preparations for the abandonment of oil wells and the destruction of oil facilities in the Middle East 4 If as a result of Soviet attack the Allies evacuated the Middle-East leaving oil facilities and fields intact the enemy could utilize Middle Eastern oil for military operations If sur face installations such as refining loading storage and transpor- tation facilities were destroyed the enemy would be unable to utilize the oil even if the wells were not plugged However NSC 26 w u I if the wells were not plugged the enemy upon being driven from the area at a later date might fire the wells The unrestrictedelow of oil and gas might deplete the oil reserves 5 Surface oil facilities such as refining loading storage and transportation installations could be effectively destroyed by demolition within a few hours if the necessary personnel and meter ial were available on the spot Plugging of the wells would require from 30 to 60 days with the personnel and equipment that might rea sonably be made available Such abandonment requires moving a der rick over the producing well and placing therein an effective con crete block A well abandoned in this manner could never again be used for producing oil but would hold the oil and gas at the pro ducing levels for later drilling develOpment While it would be impossible to plug the wells completely in less than 30 to 60 days it would be advantageous to plug as many wells as possible after a decision to abandon had been made 6 Neither destruction of surface oil facilities nor plugging of'the wells can be'effectively accomplished at the time of need un less adequate plans and preparations are made in advance Such plans and preparations would neoessarily include stockpiling of demolition material and plugging equipment which are not now avail- able in sufficient quantities in the oil area organizing and train ing of crews and definite assignment of responsibility for issuing the necessary orders to proceed to-demolition and abandonment Such plans and preparations would at relatively little cost give the United States the capability under favorable conditions of denying NSC 26 2 mm p- Middle Eastern oil to the enemy and of making more difficult damage or destruction of the oil resources This capability need be exer- cised only as a last resort after it is determined that there is no reasonable probability of keeping any particular field out of the possession of the enemy 7 The desirability of regarding abandonment and demolition as a last resort operation is indicated by the following considera tions I a Such plugging and demolition might create the impres sion that the United States intends to abandon the Middle East p Abandonment of the Middle East at the opening of hos tilities would have a serious effect upon the peOple of the Middle East Africa and Asia as well as upon those of the USSR and Europe - 3 Middle Eastern oil is highly important to the economic well being of the western world and of the Middle East and to the capabilities of the United States and itS allies for waging a major war 9 The United States does not have the right under inter national law to enter the territory of a friendly power in time of peace and destroy or damage its natural resources without its consent pi i 8 The principal Middle East oil fields and facilities are 3f the Britishwowned refinery and fields in Iran American owned re fineries and fields in Saudi Arabia and Bahrain joint USeUKeowned field in Kuwait and joint USwUK French owned fields in Iraq and NSC 26 3 - Qatar Saudi Arabia Iraq and Iran are sovereign states members of the UN Under treaty arrangements Great Britain controls the foreign relations of Kuwait Bahrain and Qatar Plugging and demo lition plans in all these areas except Saudi Arabia must be made in consultation with the British 9 In the light of the above considerations it would appear desirable that the Secretary of State should exercise-general con trol over abandonment and demolition plans and preparations and should be responsible for issuing the orders to execute such plans The Secretary of State would of course receive assistance and advice from other agencies of the Government and could delegate such author-_ ity as he considered desirable 10 The oil companies have personnel stationed in Saudi Arabia Kuwait Bahrain Island Iraq and Iran or can assign such personnel as is necessary for the effective planning and implementation of the abandonment and destruction programs in these countries These companies have expert knowledge of how the underground oil reserves may best be protected and how the destruction of the surface facilgaf ities can best be accomplished These companies with the assist aft_l ance of the United States and UK Governments can take the necessary steps including the accumulation of the necessary materials for the effective abandonment and destruction of facilities It is there- fore considered advisable that a few key officials of the oil com panies be requested in the National interest to take the necessary measures within their organizations for the effective implementation of abandonment and destruction programs as contemplated herein bear ing in mind the security classification of this project NSC 26 4 seer seaass -- Ii 1 ll If it becomes necessary to implement these programs af fecting a primary economic resource of a friendly sovereign coun- try due consideration must be given to minimizing unfavorable po litical and economic consequences Steps to this end might under favorable conditions include prior consultation with the govern ment directly concerned However so far as concerns Saudi Arabia it is of the greatest importance that the existence of an abandon ment and demolition program be made known to King Ibn Band or his government only in the discretion of the Secretary of State 12 No policy recommendation about possible compensation is made in this paper but justice would require that the United States consider compensation for damages suffered or requests for economic assistance at the time of implementation of this program CONCLUSIONS 13 Plans for abandonment and demolition of Middle Eastern oil facilities are in no way to be construed as lessening the importance of holding the Middle Eastern oil areas if such action be considered feasible and in accordance with accepted strategic concepts Henri In view of the essential nature of Middle Eastern oil to the United States abandonment and demolition plans for the Middle East oil fields shall be implemented only as a last resort The Secretary of State in cooperation with the Secretary of Defense should initiate high level secret conversations with the British Government concerning the possibility of working out a com mon plan for abandonment and demolition programs in those oil producing areas of the Middle East where the British either control N50 26 5 i 'mmAn n-In A - 44 - -a a vvf'VT' mary responsibility for such decisions the foreign relations or have entire or partial ownership of the operating companies 15 The interests of the United-States dictate that prior to the occupation of the Saudi Arabian oil fields and facilities by an enemy - a The refinery and other surface facilities or such portions thereof as would render such facilities inoperable by the enemy should be destroyed b The oil wells should be plugged to the extent prac ticable 16 The Secretary of State is empowered at his discretion to issue orders directing the abandonment of oil wells and the destruction of surface facilities in Saudi Arabia and in any other area where it may be determined in consultation with the British Government that the United States Government should have the pri He is authorized to dele gate such responsibility and authority as he Considers desirable 17 The Secretary of State in his discretion should consult with the government directly concerned in an endeavor to obtain prior consent or acquiescence to the abandonment and demolition program in order to minimize unfavorable consequences 18 The Secretary of State should avail himself of and United States agencies concerned should make available to him aesistance 4 information and intelligence in connection with the program for 19 The plans and organization to accomplish the abandonment and demolition programs should'be eyolyedrin consultation with the American owners of the fields and facilities The company should be requested by the Secretary of State to form this organization which to the extent practicable should be_composed of American employees of the oil company An arrangement should be worked out for the appointment by the company of a Chief and a Deputy Chief of this organization and for the appointment by the I Secretary of State of an appropriate government official to whom the organization may look for advice and instructions 20 The materials used for the demolitions and plugging should be located in the oil fields without delay in such quantities as may be considered normal for local oil field operations or in such additional increments as will not arouse suspicion The oil company should be requested to locate the materials so as to facilitate the accomplishment of the demolitions and plugging when necessary The United States Government should if necessary facilitate the atoni i sition of these materials 21 The Secretary of State should designate an officer of their United States Government at Dhahran Saudi Arabia as his represen tative to determine that an adequate organization has been estab lished that the organization is properly trained that the required materials are on hand and that the Chief of the organization is ad- vised in the case of any enemy threat to the oil fields which is known to this officer The oil company should be requested to agree to the assignment of duties to and to assure the cOOperation of its personnel in Saudi Arabia NSC 26 7 22 All military forces of the United States stationed in Saudi Arabia and all facilities st their disposal should be made available to assist in the preparation or exsoution of plans en ViSaged in this paper so far as possible consistent with their fe ' primary-mission C 0 1