THE UNITED STATES ARMY
Headquarters
Department of the Army
Washington, DC
3 December 2024

Army Regulation 703-2

Effective 3 January 2025

Petroleum Management

Petroleum Products Supply and Management

By Order of the Secretary of the Army:

RANDY A. GEORGE

General, United States Army

Chief of Staff

MARK F. AVERILL

Administrative Assistant to the

Secretary of the Army

History. This publication is a new Department of the Army regulation.

Authorities. This regulation implements DoDD 5101.08E, DoDI 4140.25, and DoDM 4140.25.

Applicability. This regulation applies to the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated.

Proponent and exception authority. The proponent of this regulation is the Deputy Chief of Staff, G-4. The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25-30 for specific requirements.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11-2 and identifies key internal controls that must be evaluated (see appendix B).

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms) directly to the Deputy Chief of Staff, G-4 via email to usarmy.pentagon.hqda-dcs-g-4.mbx.publications@army.mil.

Distribution. This regulation is available in electronic media only and is intended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

AR 703-2 • 3 December 2024

UNCLASSIFIED

Accountability See DoDI 4140.73.

Basic load The quantity of supplies required to be on-hand within, and moved by a unit or formation, expressed ac- cording to the wartime organization of the unit or formation and maintained at the prescribed levels.

Contaminated petroleum products Distillates and residuals of the petroleum refining process that have been contaminated before or during a usage period and can no longer satisfy the specifications of the original intended use. This category in- cludes gasoline, kerosene, diesel fuel, motor oil, grease, and degreasing solvents.

Continental United States The United States, less Alaska and Hawaii, but including the District of Columbia.

Credit Recording of an asset issued or shipped by an SRA. The asset may be reflected in terms of a quantity or a dollar value, depending on the type accounting.

Discrepancy Disagreement between quantities or conditions of property on-hand and that are required to be on-hand, as shown by an accountability record of the property.

Disposal All practices and actions associated with removing materiel from an organization’s inventory and account- ability. The materiel is normally considered as having expended its usefulness to the organization.

Financial liability The statutory obligation of an individual to reimburse the Government for lost, damaged, or destroyed Government property as a result of negligence or abuse.

Financial liability investigation of property loss An instrument for recording circumstances concerning loss, damage, or destruction of Army property. It serves as, or supports, a voucher for dropping articles from property records on which they are listed. It also serves to determine any question of responsibility (financial or otherwise) for the absence or condi- tion of the articles.

Inventory Materiel, titled to the U.S. Government, held for sale or issue, held for repair or held pending transfer to disposal.

Inventory accounting Establishment and maintenance of accounts for materiel in storage, manufacturing process, on-hand, in transit, or consignment in terms of cost or quantity. The accounting process includes the maintenance of supporting records and the rendition of reports when required. Specific types of inventory accounting are detail, summary, financial, and item accounting.

Local purchase Authorized purchase of supplies requested for its own use or for issue to a supported activity in lieu of requisitioning through the supply distribution system.

Loss Loss of, damage to, or destruction of property of the U.S. Government under the control of the Army. In- cludes loss from Government accountability. Property is considered lost when it cannot be accounted for by the person responsible for it.

Operational load A quantity of supplies (in a given supply class) kept by using units for use in peacetime operations, based on various authorizations.

Outside the Continental United States The States of Alaska and Hawaii, the Commonwealths of Puerto Rico and the Northern Mariana Islands, American Samoa, Guam, Midway, and Wake Islands, the U.S. Virgin Islands, any other territory or pos- session of the United States, and all locations outside of the United States.

Packaged petroleum fuels Fuels that are transported, stored, or issued in containers of 55 gallons or less and in 500-gallon collapsi- ble containers.

Packaged petroleum products Petroleum products other than fuels that are stored, transported, and issued in containers of 55 gallons or less. Examples are lubricants, greases, and specification samples.

Real property Land and improvements to land (for example, buildings, structures, and linear structures (see facility)). It includes equipment affixed and built into the facility as an integral part of the facility (such as heating sys- tems), but not movable equipment (such as plant equipment). In many instances, this term is synonymous with real estate.

Reconciliation A comparison of the supply records of separate activities to ensure compatibility. The term reconciliation includes the corrective actions necessary to make the two record sets consistent.

Safety level Quantity of stock intended to permit continued support in the event of minor interruption of stockage re- plenishment, unpredictable fluctuation in demand rate, or both.

State This includes all the States, the Commonwealth of Puerto Rico, the territory of the U.S. Virgin Islands, the territory of Guam, and the District of Columbia.

Stock record account Formal basic record showing, by item, receipt, and disposal of property being held for issue, balance on- hand, and other identifying or stock control data.

Voucher Document attesting to or serving as evidence of a specific property transaction. Credit vouchers, such as signed receipts, support a reduction of on-hand balance shown on the property record. Debit vouchers, such as receiving reports, support an increase in the recorded on-hand balance.