Karnal Bunt; Compensation

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 301

[Docket No. 96-016-7]

Karnal Bunt; Compensation

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: We are amending the regulations to provide compensation for

certain growers and handlers, owners of grain storage facilities, and

flour millers in order to mitigate losses and expenses incurred because

of Karnal bunt. The payment of compensation is necessary in order to

reduce the economic impact of the Karnal bunt quarantine on affected

wheat growers and other individuals, and to help obtain cooperation

from affected individuals in Karnal bunt eradication efforts.

DATES: Interim rule effective June 27, 1996. Consideration will be

given only to comments received on or before September 3, 1996.

ADDRESSES: Please send an original and three copies of your comments to

Docket No. 96-016-7, Regulatory Analysis and Development, PPD, APHIS,

suite 3C03, 4700 River Road

[[Page 35103]]

Unit 118, Riverdale, MD 20737-1238. Please state that your comments

refer to Docket No. 96-016-7. Comments received may be inspected at

USDA, room 1141, South Building, 14th Street and Independence Avenue

SW., Washington, DC, between 8 a.m. and 4:30 p.m., Monday through

Friday, except holidays. Persons wishing to inspect comments are

requested to call ahead on (202) 690-2817 to facilitate entry into the

comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr. Mike Stefan, Operations Officer,

Domestic and Emergency Operations, PPQ, APHIS, 4700 River Road Unit

134, Riverdale, MD 20737-1236, (301) 734-8247.

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a serious fungal disease of wheat (Triticum

aestivum), durum wheat (Triticum durum), and triticale (Triticum

aestivum X Secale cereale), a hybrid of wheat and rye. Karnal bunt is

caused by the smut fungus Tilletia indica (Mitra) Mundkur and is spread

by spores. The spores can be carried on a variety of surfaces,

including plants and plant parts, seeds, soil, elevators, buildings,

farm equipment, tools, and even vehicles. Spores and the sporidia they

produce also can be windborne. Although the sporidia are fragile and

may be able to move only short distances, Teliospores are thought to

move longer distances.

Karnal bunt is a serious disease that can affect both yield and

grain quality when present at levels over 3 to 5 percent. It adversely

affects the color, odor, and palatability of flour and other foodstuffs

made from heavily infested wheat. Wheat containing a significant amount

of bunted kernels is reduced in quality. Karnal bunt does not present a

risk to human or animal health.

On March 8, 1996, Karnal bunt was detected in Arizona during a seed

certification inspection done by the Arizona Department of Agriculture.

On March 20, 1996, the Secretary of Agriculture signed a ``Declaration

of Extraordinary Emergency'' authorizing the Secretary to take

emergency action under 7 U.S.C. 150dd with regard to Karnal bunt within

the States of Arizona, New Mexico, and Texas. In an interim rule

effective on March 25, 1996, and published in the Federal Register on

March 28, 1996 (61 FR 13649-13655, Docket No. 96-016-3), the Animal and

Plant Health Inspection Service (APHIS) established the Karnal bunt

regulations (7 CFR 301.89-1 through 301.89-11), and quarantined all of

Arizona and portions of New Mexico and Texas because of Karnal bunt.

The regulations define regulated articles and restrict the interstate

movement of these regulated articles from the quarantined areas.

After the establishment of the regulations, Karnal bunt was

detected in lots of seed that were either planted or stored in certain

areas in California. On April 12, 1996, the Secretary of Agriculture

signed a ``Declaration of Extraordinary Emergency'' authorizing the

Secretary to take emergency action under 7 U.S.C. 150dd with regard to

Karnal bunt within California. In an interim rule effective on April

19, 1996, and published in the Federal Register on April 25, 1996,

APHIS also quarantined portions of California because of Karnal bunt

(61 FR 18233-18235, Docket No. 96-016-5).

Under an extraordinary emergency, the Secretary is authorized, but

not obligated, to compensate growers and other persons for economic

losses incurred by them as a result of the quarantine or emergency

action. This interim rule amends the Karnal bunt regulations to provide

compensation for certain growers and handlers, owners of grain storage

facilities, and flour millers in order to mitigate losses and expenses

incurred because of actions taken by the Department regarding Karnal

bunt. We are adding a new Sec. 301.89-12 that lists classes of

individuals who are eligible to receive compensation for actions taken

or losses experienced because of actions taken by the Department

regarding Karnal bunt. This section also sets forth the rates of

compensation and explains how to make a claim for compensation,

including what forms need to be filed and what documents need to be

provided by the claimant to the United States Department of Agriculture

(USDA).

Compensation for Destroyed Crops in New Mexico and Texas

Approximately 4,000 acres of planted wheat in New Mexico and Texas

were traced back to seed produced in Arizona and known to be

contaminated with Karnal bunt. Under an extraordinary emergency, the

Secretary of Agriculture has the authority to order the destruction of

crops (see 7 U.S.C. 150dd(b)). On April 1, 1996, the Secretary signed a

memorandum authorizing APHIS to issue orders for the destruction by

plowing of all wheat crops in New Mexico and Texas that were planted

with seed known to be contaminated with Karnal bunt. Destruction of

these crops was determined to be beneficial in preventing the spread of

Karnal bunt because the crops in New Mexico and Texas were at an early

stage of growth, before Karnal bunt infection of the current crop could

occur.

The vehicle for issuing destruction orders is an Emergency Action

Notification (PPQ Form 523) given by an APHIS inspector to the owner of

the wheat crop that is to be destroyed. Pursuant to the Secretary's

authorization, APHIS began issuing Emergency Action Notifications for

the destruction of contaminated wheat fields in New Mexico and Texas on

April 1, 1996.

Consequently, we are listing as eligible for compensation growers

in New Mexico and Texas who have destroyed crops of wheat pursuant to

an Emergency Action Notification (PPQ Form 523) issued by an inspector.

Compensation for these individuals has been set at the rate of $300 per

acre of destroyed crop. The rate of $300 per acre includes a payment of

$275 per acre compensation for expenses incurred by the owner of the

wheat crop in planting and cultivating the contaminated wheat (this is

based on the average cost of expenses such as seed, fertilizer,

irrigation, and employee expenses) plus $25 per acre to pay for crop

destruction and soil preparation for replanting the plowed acres with a

new crop.

To receive compensation, the growers must complete and submit to an

inspector whichever of the following three forms are applicable, as

determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form

73. The forms will be furnished by USDA. ASCS Form 574 is a form used

to request acreage or disaster credit, and will document a record of

management practices for the crop and the reason for its destruction.

ASCS Form 578 is a form used to document a farmer's total acreage and

how the farmer uses that acreage. Most affected farmers will already

have a copy of ASCS Form 578 on file with the USDA in connection with

their enrollment in federal crop insurance or other USDA programs, but

will have to revise this form to reflect that the crop on some or all

of the acreage listed on the form has been ordered destroyed by an

inspector because of Karnal bunt. FCI Form 73 will be used to certify

the number of destroyed acres of wheat and the reason for their

destruction.

Compensation for Lost Value of Wheat in the Quarantined Area

Most other wheat grown in the quarantined areas, especially in the

quarantined areas outside of New Mexico and Texas, was past the early

stage of growth at which plowing the

[[Page 35104]]

crop under would prevent infection of the current crop with Karnal

bunt. Much of the wheat grown in the quarantined area is under contract

with millers or grain handlers for processing or for use as seed. Under

the Karnal bunt regulations, growers and handlers in the quarantined

area are restricted from selling wheat for propagative purposes (seed)

and from moving wheat outside of the quarantined area. This means that,

in most cases, growers and handlers in the quarantined area cannot move

their wheat to the market for which it was contracted.

Growers and handlers may export their wheat to another country or

may market the wheat within the quarantined area, where it will most

likely be processed as animal feed. The value for wheat to be used as

animal feed is typically lower than the value for wheat used for

propagative purposes or for use in products for human consumption.

Further, many growers and handlers are finding it difficult to market

wheat from the quarantined area, whether or not it has tested positive

for Karnal bunt infection, because wheat from the quarantined area may

incur additional costs for handling and treatment. This may force some

growers and handlers to accept a lower price for their wheat than they

would have received if the area had not been quarantined for Karnal

bunt.

Therefore, we are listing as eligible for compensation growers and

handlers of wheat grown in the quarantined area for the loss in value

of their wheat due to the quarantine for Karnal bunt. We will

compensate for the loss in value of wheat testing negative and wheat

testing positive from the quarantined area. Compensation calculations

will be different depending on the purpose for which the wheat was

grown and the purpose for which the wheat is eventually sold.

Compensation calculations will also be different for growers and for

handlers.

This rule only includes calculations for compensation of wheat

grown for nonpropagative purposes (meaning it was not grown for use as

seed). We do intend to compensate seed producers for the loss in value

of their seed. However, we are still developing protocols for seed

movement and disposition, and those protocols will affect how that

compensation will be calculated. A rule providing for compensation for

seed producers will be published at a later date. The calculations for

nonpropagative wheat compensation are discussed below.

Growers of Nonpropagative Wheat

For growers of wheat grown under contract for nonpropagative

purposes in the quarantined area, the amount of compensation will be

based on the difference between the contracted price and the salvage

value (described below). Salvage value for wheat grown under contract

will be as follows:

If the contracted wheat is tested by APHIS and found positive for

Karnal bunt, and the positive wheat is sold for use as animal feed,

salvage value equals $6 per hundred weight or $3.60 per bushel for all

classes of wheat. This value is based on the feeding value of wheat

relative to other feed grains, in addition to considering the costs of

required treatment of positive wheat for use in livestock feed and the

costs of transporting wheat to processing centers and to feeding

locations. If the positive wheat is sold for uses other than animal

feed (e.g., milling or export), salvage value equals whichever price is

higher of the following: the average price paid in the region of the

quarantined area where the wheat is sold for the relevant class of

wheat for the period between May 1 and June 30, 1996; or, $3.60 per

bushel. (Relevant class of wheat means the type of wheat, for example,

Durum or Hard red winter wheat. Because these classes of wheat are

suitable for different products, they command different market prices.)

If contracted wheat is tested by APHIS and found negative for Karnal

bunt, regardless of the eventual use of the wheat, salvage value equals

the same as for positive contracted wheat sold for uses other than

animal feed.

For growers of nonpropagative wheat not grown under contract,

compensation will be based on the difference between the estimated

market price for the relevant class of wheat and the salvage value.

Salvage values will be the same as described above for contracted

wheat. The estimated market price is intended to represent what the

market price would have been if there were no quarantine for Karnal

bunt, and will be calculated by APHIS for each class of wheat, taking

into account the prices offered by relevant terminal markets (animal

feed, milling, or export) for the period between May 1 and June 30,

1996, with adjustments for transportation and other handling costs.

For nonpropagative wheat, whether grown under contract or not,

whether positive or negative, compensation will not exceed $2.50 per

bushel.

To receive compensation, the grower must complete and submit to an

inspector whichever of the following three forms are applicable, as

determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form

73. These are the same forms described above for claims for destroyed

crops, and will be furnished by USDA. In addition, the grower must

submit a copy of the contract the grower has for the wheat, if the

wheat was under contract, and a copy of the receipt for the final sale

of the wheat, showing the intended use for which the wheat was sold.

Handlers of Nonpropagative Wheat

There are two circumstances under which handlers will be eligible

for compensation: (1) Handlers who honor contracts by paying the grower

full contract price on wheat grown for nonpropagative purposes in the

quarantined area that was tested by APHIS and found positive for Karnal

bunt; and (2) handlers who purchase contracted or noncontracted wheat

grown for nonpropagative purposes in the quarantined area that was

tested by APHIS and found negative for Karnal bunt prior to purchase,

but which is tested by APHIS and found positive for Karnal bunt after

purchase. The amount of compensation for both these circumstances will

be based on the difference between the estimated market price (as

described previously in this document) and the salvage value. Salvage

value will be the same as for grower compensation (described previously

in this document). However, compensation will not exceed $2.50 per

bushel under any circumstances.

The calculations described above do not provide for compensation

for handlers who purchase positive wheat not grown under contract, or

who purchase negative wheat that does not later test positive. Handlers

who purchase positive wheat not grown under contract, or for less than

contract price, will likely pay a very low price for the wheat, so that

compensation for loss in value will not be necessary. Handlers who

purchase negative wheat that continues to test negative after purchase

will likewise not experience a loss in value for the wheat compared to

the price they paid for it. Handlers who purchase negative wheat that

later tests positive would, however, experience a loss in expected

value because positive wheat is worth less than negative wheat.

To receive compensation, the handler must complete and submit to an

inspector whichever of the following three forms are applicable, as

determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form

73. The forms will be furnished by USDA. In addition, the handler must

submit a copy of the contract the

[[Page 35105]]

handler had with the grower for the wheat, if the wheat was under

contract, to verify that the contract was honored. If the wheat was not

purchased under contract, the handler must submit a copy of the receipt

for the final sale of the wheat, showing the intended use for which the

wheat was sold.

If a grower or handler of nonpropagative wheat in the quarantined

area is not able to or elects not to sell their wheat, they will be

eligible to receive compensation at the rate of $2.50 per bushel.

However, compensation will only be paid if the grower or handler has

destroyed the wheat by burying it in a sanitary landfill. To receive

compensation, the grower or handler must complete and submit to an

inspector whichever of the following three forms are applicable, as

determined by an inspector: ASCS Form 574, ASCS Form 578, and FCI Form

73. The forms will be furnished by USDA. The grower or handler must

also submit a receipt from a sanitary landfill verifying how much wheat

was buried.

Compensation for Decontamination of Grain Storage Facilities

Owners of grain storage facilities that have been decontaminated

pursuant to an Emergency Action Notification (PPQ Form 523) issued by

an inspector are eligible for compensation. These grain storage

facilities have been determined by APHIS to be contaminated with Karnal

bunt. We estimate that the cost of decontamination, which consists of

treatment with a chlorine solution and water, detergent and water,

steam, or fumigation with methyl bromide in accordance with

Sec. 301.89-11 of the regulations, can range between $30,000 to $50,000

per facility.

We will compensate owners of contaminated grain storage facilities

on a one time only basis for up to 50 percent of the cost of

decontamination. However, compensation will not exceed $20,000 per

premise. We will add a definition for ``premise'' to Sec. 301.89-1 to

mean ``all structures, conveyances, or materials associated with a

grain storage facility at a single location.'' Compensation is limited

to the direct costs of decontaminating facilities. General clean-up,

repair, and refurbishment costs are excluded from compensation.

To receive compensation, owners of grain storage facilities must

submit to the inspector records demonstrating that decontamination was

performed on all structures, conveyances, or materials ordered to be

decontaminated by the Emergency Action Notification on the facility

premise. The records must include a copy of the Emergency Action

Notification, contracts with individuals or companies hired to perform

the decontamination, receipts for equipment and materials purchased to

perform the decontamination, time sheets for employees of the grain

storage facility who perform actions related to the decontamination,

and any other documentation that helps show decontamination has been

completed and its cost.

Compensation for Treating Millfeed

In accordance with compliance agreements established between APHIS

and flour millers located in high-risk areas (areas where there is a

high risk of spreading Karnal bunt into surrounding areas), millfeed (a

byproduct of milling wheat into flour) produced from wheat from the

quarantined area must be treated using a heat process. This treatment

adds approximately $35 per short ton to the cost of producing millfeed

products, such as animal feed. It is unlikely that millers would

purchase wheat from the quarantined area without compensation for the

cost of millfeed treatment. Loss of these markets would further lower

the value of wheat in the quarantined area.

Flour millers who heat-treat millfeed made from wheat produced in

the quarantined area are eligible to receive compensation at the rate

of $35.00 per short ton of millfeed. The amount of millfeed compensated

will be calculated by multiplying the weight of wheat that is milled

from the quarantined area by 25 percent (the average percent of

millfeed derived from a short ton of grain). We will calculate the

amount of millfeed to be compensated in this manner because many

millers routinely mix together different types of wheat from different

areas. The resulting millfeed would be a product of wheat from

quarantined and nonquarantined areas. However, we will only compensate

for the cost of treating millfeed made from wheat produced in the

quarantined area. Therefore, the amount compensated cannot be

determined by simply weighing the total amount of millfeed at the end

of the milling process.

To claim compensation, flour millers must submit to an inspector a

copy of the limited permit under which the wheat was moved to the mill,

in order to show that the wheat was produced in a quarantined area, and

a copy of the bill of lading for the wheat, showing the weight of the

wheat in short tons. Flour millers must also submit verification that

the millfeed produced from wheat from the quarantined area was properly

heat treated.

We believe the compensations described above will help ensure

cooperation from affected individuals in APHIS' efforts to eliminate

the spread of Karnal bunt and will help mitigate the economic impact of

the Karnal bunt quarantine and emergency actions on affected wheat

growers and others within the industry.

Miscellaneous

We are also making a miscellaneous change to the Karnal bunt

regulations. Section 301.89-2(d) lists plants and plant parts of the

species Triticum aestivum X Seale cereals as regulated articles.

However, the correct scientific name for this species is Triticum

aestivum X Secale cereale. We are amending Sec. 301.89-2(d) to correct

this error.

Emergency Action

In accordance with 7 U.S.C. 150dd(b)(2), the amount of

compensation, if any, which the Secretary determines may be paid to

individuals for economic losses incurred because of the declaration of

an extraordinary emergency shall be final.

The Administrator of the Animal and Plant Health Inspection Service

has determined that an emergency exists that warrants publication of

this interim rule without prior opportunity for public comment.

Immediate action is necessary to provide compensation for those persons

who were and are required to take emergency actions to eliminate the

spread of Karnal bunt or who experience economic losses because of the

quarantine for Karnal bunt.

Because prior notice and other public procedures with respect to

this action are impracticable and contrary to the public interest under

these conditions, we find good cause under 5 U.S.C. 553 to make it

effective upon signature. We will consider comments that are received

within 60 days of publication of this rule in the Federal Register.

After the comment period closes, we will publish another document in

the Federal Register. It will include a discussion of any comments we

receive and any amendments we are making to the rule as a result of the

comments.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been reviewed under Executive Order 12866. For this

action, the Office of Management and Budget has waived its review

process required by Executive Order 12866.

This action amends the regulations to provide compensation for

certain

[[Page 35106]]

growers and handlers, owners of grain storage facilities, and flour

millers in order to mitigate losses and expenses incurred because of

the Karnal bunt quarantine and emergency actions. This emergency

situation makes compliance with section 603 and timely compliance with

section 604 of the Regulatory Flexibility Act (5 U.S.C. 603 and 604)

impracticable. This rule may have a significant economic impact on a

substantial number of small entities. If we determine this is so, then

we will discuss the issues raised by section 604 of the Regulatory

Flexibility Act in our Final Regulatory Flexibility Analysis.

Executive Order 12372

This program/activity is listed in the Catalog of Federal Domestic

Assistance under No. 10.025 and is subject to Executive Order 12372,

which requires intergovernmental consultation with State and local

officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12778

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This rule: (1) Preempts all State and local laws and

regulations that are inconsistent with this rule; (2) has no

retroactive effect; and (3) does not require administrative proceedings

before parties may file suit in court challenging this rule.

Paperwork Reduction Act

In accordance with section 3507(d) of the Paperwork Reduction Act

of 1995 (44 U.S.C. 3501 et seq.), the information collection or

recordkeeping requirements included in this interim rule have been

approved by the Office of Management and Budget (OMB). The assigned OMB

control numbers are as follows: for PPQ Form 523 the number is 0579-

0121; for ASCS Form 574 the number is 0563-0003; for ASCS Form 578 the

number is 0560-0004; and for FCI Form 73 the number is 0563-0033.

List of Subjects in 7 CFR Part 301

Agricultural commodities, Plant diseases and pests, Quarantine,

Reporting and recordkeeping requirements, Transportation.

Accordingly, 7 CFR part 301 is amended as follows:

PART 301--DOMESTIC QUARANTINE NOTICES

1. The authority citation for part 301 continues to read as

follows:

Authority: 7 U.S.C 150bb, 150dd, 150ee, 150ff, 161, 162, and

164-167; 7 CFR 2.22, 2.80, and 371.2(c).

Sec. 301.89-2 [Amended]

2. In Sec. 301.89-1, a definition for Premise is added in

alphabetical order to read as follows:

Sec. 301.89-1 Definitions.

* * * * *

Premise. All structures, conveyances, or materials associated with

a grain storage facility at a single location.

* * * * *

3. In Sec. 301.89-2, in paragraph (d), the entry for Triticale is

amended by removing the words ``Seale cereals'' and adding the words

``Secale cereale'' in their place.

4. A new Sec. 301.89-12 is added to read as follows:

Sec. 301.89-12 Compensation.

The following individuals are eligible to receive compensation from

the United States Department of Agriculture (USDA) for losses or

expenses incurred because of the Karnal bunt quarantine and emergency

actions, as follows:

(a) Growers who have destroyed crops. Growers in New Mexico and

Texas who have destroyed crops of wheat pursuant to an Emergency Action

Notification (PPQ Form 523) issued by an inspector are eligible to be

compensated at the rate of $300 per acre of destroyed crop. To claim

compensation, the grower must complete and submit to an inspector

whichever of the following three forms are applicable, as determined by

the inspector: ASCS Form 574, ASCS Form 578, and FCI Form 73. The forms

will be furnished by USDA.

(b) Growers and handlers who sell nonpropagative wheat grown in the

quarantined area. Growers and handlers who sell nonpropagative wheat

grown in the quarantined area are eligible to be compensated for the

loss in value of their wheat due to the quarantine for Karnal bunt, as

follows:

(1) Growers who sell nonpropagative wheat. For growers who sell

wheat grown for nonpropagative purposes, compensation will be as

described in paragraphs (b)(1)(i) and (b)(1)(ii) of this section.

However, compensation will not exceed $2.50 per bushel under any

circumstances.

(i) If the wheat was grown under contract, compensation will equal

the contracted price minus the salvage value, as described in paragraph

(b)(3) of this section.

(ii) If the wheat was not grown under contract, compensation will

equal the estimated market price for the relevant class of wheat

(meaning type of wheat, such as Durum or Hard red winter) minus the

salvage value, as described in paragraph (b)(3) of this section. The

estimated market price will be calculated by APHIS for each class of

wheat, taking into account the prices offered by relevant terminal

markets (animal feed, milling, or export) for the period between May 1

and June 30, 1996, with adjustments for transportation and other

handling costs.

(2) Handlers who sell nonpropagative wheat. Handlers are eligible

to be compensated only under the circumstances described in paragraphs

(b)(2)(i) and (b)(2)(ii) of this section. Compensation for both

circumstances will equal the estimated market price for the relevant

class of wheat (meaning type of wheat, such as Durum or Hard red

winter) minus the salvage value, as described in paragraph (b)(3) of

this section. The estimated market price will be calculated by APHIS

for each class of wheat, taking into account the prices offered by

relevant terminal markets (animal feed, milling, or export) for the

period between May 1 and June 30, 1996, with adjustments for

transportation and other handling costs. However, compensation will not

exceed $2.50 per bushel under any circumstances.

(i) Handlers who honor contracts by paying the grower full contract

price on wheat grown for nonpropagative purposes in the quarantined

area that was tested by APHIS and found positive for Karnal bunt; or

(ii) Handlers who purchase contracted or noncontracted wheat grown

for nonpropagative purposes in the quarantined area that was tested by

APHIS and found negative for Karnal bunt prior to purchase but that was

tested by APHIS and found positive for Karnal bunt after purchase.

(3) Salvage value. Salvage values will be as follows:

(i) If the wheat is positive for Karnal bunt and is sold for use as

animal feed, salvage value equals $6.00 per hundredweight or $3.60 per

bushel for all classes of wheat.

(ii) If the wheat is positive for Karnal bunt and is sold for a use

other than animal feed, salvage value equals whichever is higher of the

following: the average price paid in the region of the quarantined area

where the wheat is sold for the relevant class of wheat (meaning type

of wheat, such as Durum or Hard red winter) for the period between May

1 and June 30, 1996; or, $3.60 per bushel.

(iii) If the wheat is negative for Karnal bunt and is sold for any

use, salvage value equals whichever is higher of the following: the

average price paid in the region of the quarantined area where the

wheat is sold for the relevant class of wheat (meaning type of wheat,

such as

[[Page 35107]]

Durum or Hard red winter) for the period between May 1 and June 30,

1996; or, $3.60 per bushel.

(4) To claim compensation. To claim compensation, a grower or

handler must complete and submit to an inspector whichever of the

following three forms are applicable, as determined by the inspector:

ASCS Form 574, ASCS Form 578, and FCI Form 73. The forms will be

furnished by USDA. Growers must also submit a copy of the contract the

grower has for the wheat, if the wheat was under contract; handlers

must also submit a copy of the contract the handler had with the grower

for the wheat, if the wheat was under contract. Finally, a grower or

handler must submit a copy of the receipt for the final sale of the

wheat, showing the intended use for which the wheat was sold.

(c) Nonpropagative wheat that is not sold. If a grower or handler

of nonpropagative wheat in the quarantined area is not able to or

elects not to sell their wheat, they will be eligible to receive

compensation at the rate of $2.50 per bushel. Compensation will only be

paid if the grower or handler has destroyed the wheat by burying it in

a sanitary landfill. To claim compensation, the grower or handler must

complete and submit to an inspector whichever of the following three

forms are applicable, as determined by the inspector: ASCS Form 574,

ASCS From 578, and FCI Form 73. The forms will be furnished by USDA. In

addition, the grower or handler must submit a receipt from the sanitary

landfill verifying how much wheat was buried.

(d) Decontamination of grain storage facilities. Owners of grain

storage facilities that have been decontaminated pursuant to an

Emergency Action Notification (PPQ Form 523) issued by an inspector are

eligible to be compensated, on a one time only basis, for up to 50

percent of the cost of decontamination. However, compensation will not

exceed $20,000 per premise (as defined in Sec. 301.89-1). Compensation

is limited to the direct costs of decontaminating facilities. General

clean-up, repair, and refurbishment costs are excluded from

compensation. To claim compensation, the owner of the grain storage

facility must submit to an inspector records demonstrating that

decontamination was performed on all structures, conveyances, or

materials ordered to be decontaminated by the Emergency Action

Notification on the facility premise. The records must include a copy

of the Emergency Action Notification, contracts with individuals or

companies hired to perform the decontamination, receipts for equipment

and materials purchased to perform the decontamination, time sheets for

employees of the grain storage facility who performed activities

connected to the decontamination, and any other documentation that

helps show decontamination has been completed.

(e) Flour millers. Flour millers who, in accordance with a

compliance agreement with APHIS, heat-treat millfeed made from wheat

produced in the quarantined area are eligible to be compensated at the

rate of $35.00 per short ton of millfeed. The amount of millfeed

compensated will be calculated by multiplying the weight of wheat from

the quarantined area received by the miller by 25 percent (the average

percent of millfeed derived from a short ton of grain). To claim

compensation, the miller must submit to an inspector a copy of the

limited permit under which the wheat was moved to the mill and a copy

of the bill of lading for the wheat (showing the weight of the wheat in

short tons). Flour millers must also submit verification that the

millfeed was heat treated, in the form of a copy of the limited permit

under which the wheat was moved to a treatment facility and a copy of

the bill of lading accompanying that movement.

Done in Washington, DC, this 27th day of June 1996.

Terry L. Medley,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 96-16999 Filed 7-3-96; 8:45 am]

BILLING CODE 3410-34-P