Karnal Bunt; Compensation for the 1996-1997 Crop Season

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 301

[Docket No. 96-016-29]

RIN 0579-AA83

Karnal Bunt; Compensation for the 1996-1997 Crop Season

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are amending the Karnal bunt regulations by adding

compensation provisions for certain growers, handlers, seed companies,

owners of grain storage facilities, flour millers, and participants in

the National Karnal Bunt Survey who incur losses and expenses because

of Karnal bunt in the 1996-1997 crop season. The payment of

compensation is necessary in order to reduce the economic impact of the

Karnal bunt regulations on affected wheat growers and other

individuals, and to help obtain cooperation from affected individuals

in Karnal bunt eradication efforts. The amendments are necessary to

make compensation appropriate for circumstances in the 1996-1997 crop

season.

EFFECTIVE DATE: June 10, 1998.

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, or e-mail:

[email protected].

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a 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,

primarily through the movement of infected seed. In the absence of

measures taken by the U.S. Department of Agriculture (USDA) to prevent

its spread, the establishment of Karnal bunt in the United States could

have significant consequences with regard to the export of wheat to

international markets. The regulations regarding Karnal bunt are set

forth in 7 CFR 301.89-1 through 301.89-14. Among other things, the

regulations define areas regulated for Karnal bunt and restrict the

movement of certain regulated articles, including wheat seed and grain,

from the regulated areas.

On May 6, 1997, we published a document in the Federal Register (62

FR 24745-24753, Docket No. 96-016-17, effective April 30, 1997) making

final an interim rule that amended the regulations to provide

compensation for certain growers and handlers of wheat grain, owners of

grain storage facilities, and flour millers in order to mitigate losses

and expenses incurred in the 1995-1996 crop season because of actions

taken by the Secretary to prevent the spread of Karnal bunt. The final

rule also added compensation provisions for handlers of wheat grain

that was tested and found negative for Karnal bunt, handlers and

growers with wheat inventories from past crop seasons, and participants

in the National Karnal Bunt Survey whose wheat grain tested positive

for Karnal bunt in the 1995-1996 crop season. On January 9, 1998 (63 FR

1321-1331, Docket No. 96-016-25), we published a final rule providing

compensation for growers and seed companies for the loss in value of

wheat seed and straw in the 1995-1996 crop season. The compensation

regulations in both these final rules are set forth at 7 CFR 301.89-14.

On July 11, 1997, we published in the Federal Register (62 FR

37159-37166, Docket No. 96-016-15) a proposal to amend the regulations

to add a compensation program for wheat harvested in 1997. The proposed

provisions for 1996-1997 crop season wheat provided compensation for

certain growers and handlers of wheat grain and seed, owners of grain

storage facilities, flour millers, and participants in the National

Karnal Bunt Survey who incurred losses and expenses because of Karnal

bunt in the 1996-1997 crop season.

We solicited comments concerning our proposal for 60 days ending

September 9, 1997. We received nine comments by that date. They were

from wheat growers and wheat industry associations. All the commenters

recommended additions or revisions to the compensation provisions. They

are discussed below.

Six of the nine commenters requested compensation for growers whose

fields are located in the areas listed as surveillance areas under the

Karnal bunt regulations. Specifically, several of the commenters stated

that they ``wished to register the strongest opposition to this

proposed rule for its failure to provide compensation to those growers

whose fields are located in the Arizona surveillance area.'' It is

unclear to us what the concerns are. Under the Karnal bunt regulations,

regulated areas are divided into restricted areas and surveillance

areas. The proposed rule provided compensation for growers and handlers

with positive testing wheat grown in regulated areas. The proposal made

no distinction between whether or not the regulated area was a

restricted area or a surveillance area. Any wheat grown in a regulated

area, including a surveillance area, that is tested by the Animal and

Plant Health Inspection Service (APHIS) and found positive for Karnal

bunt in the 1996-1997 crop season will be eligible for compensation

under this rule.

Under the regulations, designation of an area as a surveillance

area has an impact only on the movement of wheat grain from that area;

wheat seed is subject to the same restrictions whether it is grown in a

surveillance area or in any other part of the regulated area.

Therefore, because the commenters are specifically concerned about

compensation to growers with fields in surveillance areas, we can

conjecture that they are concerned about loss in value of wheat grain.

Wheat grain from a surveillance area that tests negative for Karnal

bunt may be moved under certificate to any destination without

restriction. We do not expect growers with negative-testing wheat grain

to experience a loss in value of the grain due to our regulations. For

this reason, this final rule does not offer compensation to growers for

wheat

[[Page 31594]]

grain that tests negative for Karnal bunt. Wheat grain from a

surveillance area that tests positive for Karnal bunt may be moved only

under a limited permit and will be subject to measures intended to

mitigate the risk of the grain spreading Karnal bunt. Due to our

restrictions, most positive-testing grain will be sold for use as

animal feed. This final rule offers compensation to growers for the

loss in value of positive-testing grain. We have made no changes to the

rule based on these comments.

Two comments specified that compensation should be paid to growers

with fields in surveillance areas who chose not to plant wheat in the

1996-1997 crop season in order to avoid losses due to Karnal bunt.

According to the comments, alternative crops to wheat (for example,

barley) are of lower value than wheat; therefore, the comments claim

that the choice to plant alternative crops resulted in losses in annual

income for these farmers. The commenters said that, since it is APHIS'

desire to encourage growers in regulated areas to stop growing wheat,

APHIS should consider growers who voluntarily planted alternative crops

as contributing to the Karnal bunt eradication effort, and should

compensate them accordingly.

We are not making any changes to the proposed rule based on these

comments. At the time growers were making planting decisions for the

1996-1997 crop season, the Karnal bunt regulations did not prohibit

growers with fields in surveillance areas from planting wheat, unless

the field had been planted with known contaminated seed in 1995.

Growers who chose to plant alternative crops in order to avoid losses

related to Karnal bunt did so as a business decision, and not as a

result of any restrictions placed on them by the regulations.

Currently, and at the time planting decisions were being made for the

1996-1997 crop season, wheat grain from surveillance areas that tests

negative for Karnal bunt may be moved under a certificate to any

destination without restriction. Therefore, when making planting

decisions, growers should not have expected to experience losses due to

Karnal bunt unless their wheat tested positive. If their wheat tested

positive, this final rule offers them compensation for the loss in

value.

Three comments requested compensation for losses such as demurrage

charges on railcars, the cost of cleaning and sanitizing railcars prior

to loading, losses due to delays in transportation caused by the Karnal

bunt regulations, extra storage costs due to shipping delays, and labor

costs for cleaning and disinfecting combines. We are not making any

changes to the proposal for 1996-1997 crop season compensation in

response to these comments. Compensation has not been offered for these

costs and losses in the 1995-1996 crop season. In determining what

specific losses to compensate, a top priority was compensation for

wheat and other articles the Agency ordered destroyed or prohibited

movement. For this reason, the focus of compensation for Karnal bunt

related losses is the loss in value of wheat seed and grain. We

recognize that the compensation we have offered may not fully account

for every loss experienced by growers and handlers resulting from

Karnal bunt. However, we believe the compensation provisions in this

final rule will significantly mitigate losses due to the actions taken

by USDA to control Karnal bunt.

One comment requested compensation for decontaminating storage

facilities and conveyances found with wheat testing positive for Karnal

bunt. Both the proposed rule and this final rule provide for

compensation for this purpose. Section 301.89-16(a) provides that, in

States where the Secretary has declared an extraordinary emergency,

owners who have decontaminated their grain storage facilities pursuant

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

inspector are eligible to be compensated, on a one time only basis for

each facility for each covered crop year wheat, for up to 50 percent of

the direct cost of decontamination. However, compensation will not

exceed $20,000 per grain storage facility. Grain storage facility is

defined in Sec. 301.89-1 of the regulations to mean ``That part of a

grain handling operation or unit of a grain handling operation,

consisting of structures, conveyances, and equipment that receive,

unload, and store grain, and that is able to operate as an independent

unit from other units of the grain handling operation. A grain handling

operation may be one grain storage facility or may be comprised of many

grain storage facilities on a single premises.''

Two comments said that growers and handlers should not have to

provide copies of Karnal bunt certificates in order to claim

compensation, and also asked that we remove the requirement that

growers and handlers provide copies of Emergency Action Notifications

(EANs) for wheat grown in an area that was not regulated for Karnal

bunt but for which an EAN had been issued. The commenters' reason was

that Karnal bunt certificates and EANs were issued by USDA, and should

not have to be provided back to USDA to claim compensation.

We are making no changes to the proposed rule based on these

comments. We understand that filing claims for compensation does

require claimants to provide a number of documents, and collecting

these documents may seem cumbersome. Claims submitted under this final

rule for 1996-1997 crop season wheat seed and grain will be processed

by the Farm Service Agency (FSA). APHIS will process claims for

decontamination of grain storage facilities and treatment of millfeed.

While FSA and APHIS are both a part of USDA, they do not share offices,

computer systems, or recordkeeping systems. This would make it

difficult and time-consuming for APHIS and FSA to exchange copies of

the required documents for each claimant. In addition, in most cases,

claimants were provided with copies of EANs and Karnal bunt

certificates. If they were not, copies may be obtained by the claimant

from APHIS for submission to FSA. Claimants should not have difficulty

in collecting EANs or Karnal bunt certificates. At this time, the most

efficient way for FSA and APHIS to process compensation claims is for

the claimant to provide the documents to FSA and APHIS.

We have been made aware, however, that some owners of grain storage

facilities ordered decontaminated due to Karnal bunt were not issued

EANs. A number of owners of grain storage facilities found to have

positive grain in the 1996-1997 crop season were issued letters from

APHIS declaring their grain to be positive for Karnal bunt and ordering

the grain storage facilities to be decontaminated. To accommodate this,

owners of grain storage facilities may claim compensation under this

final rule if their facility was decontaminated pursuant to an EAN

issued by APHIS or pursuant to a letter issued by APHIS ordering the

facility to be decontaminated. We will require that, to claim

compensation, claimants provide APHIS with either a copy of the EAN or

a copy of the letter from APHIS ordering decontamination of the

facility. These changes appear in Sec. 301.89-16 (a) and (c).

Two commenters were concerned about the proposed compensation for

heat treating millfeed. The proposed compensation is the same as what

was offered for heat treating millfeed in the 1995-1996 crop season.

The commenters said that they believe heat treating millfeed is not

necessary, and were under the impression that APHIS was eliminating

this requirement.

[[Page 31595]]

In the preamble to the proposed rule, we stated that APHIS was

considering proposing to eliminate the requirement to heat treat

millfeed. We also stated that, if this requirement is eliminated by a

future rulemaking, compensation will not be paid for millfeed that is

heat treated after the effective date of such a rule. To date, the

requirement for heat treating millfeed has not been eliminated from the

regulations. On January 28, 1998 (63 FR 4198-4204, Docket No. 96-016-

22), we published in the Federal Register a proposed rule to, among

other things, amend the requirements for treating millfeed, so that

only millfeed resulting from the milling of wheat, durum wheat, or

triticale that tested positive for Karnal bunt would require heat

treatment. However, this proposed rule would have no effect on millfeed

from grain milled in the 1996-1997 crop season. Any millfeed that has

been treated in the 1996-1997 crop season in accordance with a

compliance agreement with APHIS will be eligible for the compensation

offered in this final rule.

One commenter said that since the proposal would compensate only

for wheat that tests positive for Karnal bunt, the industry needs

assurance that there will not be any restrictions on the movement of

wheat that tests negative. In the 1996-1997 crop season, no host

material was allowed to be planted in fields in restricted areas for

regulated articles other than seed. As a result of an interim rule

effective on April 25, 1997, and published in the Federal Register on

May 1, 1997 (62 FR 23620-23628, Docket No. 96-016-19), wheat grain that

is from a surveillance area and that tests negative on one test

conducted at the means of conveyance may move under certificate to any

destination without further safeguarding or sanitation requirements.

Restricted areas for seed encompass and extend beyond surveillance

areas. Grain from fields that are in restricted areas for seed outside

a surveillance area may move without testing and without restriction

for any purpose but seed. Seed grown in a restricted area for seed that

tests negative for Karnal bunt may be planted within the regulated area

only. These regulations remain in effect.

One commenter asked that we be more flexible in dealing with

individual claims for compensation that do not fit the regulations

precisely. Specifically, the commenter requested that we consider

compensation for a grower who plowed down a field outside of the

regulated area, and for test plots that were plowed down in California.

The plow downs to which the commenter refers occurred in the 1995-1996

crop season, and are therefore outside the scope of this final rule.

Additional compensation claims for 1996-1997 crop season losses that do

not fit the provisions of this final rule will be considered by USDA.

One commenter requested that compensation be extended to wheat

growers and handlers in Alabama. APHIS conducted a National Karnal Bunt

Survey in the 1996-1997 crop season to demonstrate to our trading

partners that areas producing wheat for export are free of the disease.

During the survey, grain in a number of storage facilities located in

the States of Alabama, Florida, Georgia, and Tennessee was found to be

contaminated with spores which we believed to be teliospores of the

smut fungus Tilletia indica (Mitra) Mundkur. The presence of

teliospores of this smut fungus can result in an outbreak of Karnal

bunt. Based on these findings, USDA considered declaring an

extraordinary emergency for Karnal bunt in the States of Alabama,

Florida, Georgia, and Tennessee.

USDA did not, however, declare an extraordinary emergency in these

States. In May of 1997, APHIS announced that regulation of an area for

Karnal bunt would be based only on the presence of bunted wheat

kernels. APHIS based this decision on the fact that a substantial

portion of ryegrass seed produced in the United States contains

teliospores produced by an as yet unnamed smut that are

indistinguishable from Karnal bunt teliospores. Ryegrass is one of the

most common weeds occurring in wheat fields, and is frequently planted

with wheat in forage and pasture mixes. For this reason, APHIS

determined that at the present time, it is not possible to determine

whether a teliospore is indicative of ryegrass smut or Karnal bunt

without the presence of bunted wheat kernels. Because no bunted kernels

were found in wheat storage facilities located in the States of

Alabama, Florida, Georgia, and Tennessee, USDA determined that a

declaration of extraordinary emergency in these States was not

warranted.

The commenter said that, despite the absence of regulatory

restrictions, farmers in Alabama experienced losses due to planting

decisions made in the 1996-1997 crop season as a result of the threat

of a quarantine. The commenter also said that the Secretary should have

the authority to compensate regardless of whether or not a declaration

of extraordinary emergency is declared.

As we have explained in other rules on Karnal bunt compensation,

the Federal Plant Pest Act (7 U.S.C. 150aa-150jj) authorizes the

Secretary of Agriculture to take emergency action in States where the

Secretary has declared an extraordinary emergency. The Federal Plant

Pest Act also authorizes the Secretary to compensate growers and other

persons in those States for economic losses incurred by them as a

result of those emergency actions. (See specifically 7 U.S.C. 150dd.)

Congress has not authorized the Secretary to pay compensation in States

for which an extraordinary emergency has not been declared. The

determination that Karnal bunt does not exist in the States of Alabama,

Florida, Georgia, and Tennessee saved wheat producers in those States

from Federal regulation that would have required testing of all wheat

grown in regulated areas, and substantial restrictions on the movement

and potential uses of their wheat crop. Some wheat producers may have

experienced a loss in income in the 1996-1997 crop season due to

planting decisions made as a result of uncertainty as to the State's

Karnal bunt status. However, because an extraordinary emergency was not

declared in these States, we are unable to offer compensation for any

losses that may have been experienced.

We received one comment concerning the difference in compensation

rates offered to growers and handlers in areas under the first

regulated crop season and growers and handlers in areas under the

second regulated crop season. We proposed different levels of

compensation for growers and handlers of positive wheat, depending on

which of the following two sets of circumstances applies: (1) The wheat

is from an area that became regulated for Karnal bunt after the 1996-

1997 crop was planted, or for which an EAN was issued after the 1996-

1997 crop was planted; or (2) the wheat is from an area that became

regulated for Karnal bunt before the 1996-1997 crop was planted, or for

which an EAN was issued before the 1996-1997 crop was planted. We

proposed to call these ``areas under the first regulated crop season''

and ``areas under the second regulated crop season,'' respectively. In

both cases, the area must have remained regulated or under an EAN at

the time the wheat was sold in order for wheat grown in that area to be

eligible for compensation.

We proposed compensation for positive wheat grown in areas under

the second regulated crop season of $.60 per bushel; the proposed

compensation for positive wheat grown in areas under the first

regulated crop season is set at a maximum of $1.80 per bushel. One

commenter said that the proposed $.60 per bushel compensation for

positive

[[Page 31596]]

wheat grown in areas under the second regulated crop season is

inadequate, and that growers and handlers in those areas should be

eligible for the same maximum $1.80 compensation as growers and

handlers of wheat grown in an area under the first regulated crop

season.

As we explained in the preamble to the proposed rule, growers and

handlers in areas under the first regulated crop season would not have

known that their area was to become regulated for Karnal bunt at the

time they made their planting and many of their contracting decisions,

and would not have been prepared for the loss in value of their wheat

due to Karnal bunt. Growers and handlers in areas under the second

regulated crop season knew they were in an area regulated for Karnal

bunt at the time they made planting and contracting decisions for the

1996-1997 crop season. Understanding the restrictions, growers and

handlers could have chosen to alter their planting or contract

decisions. For these reasons, we believe that the proposed compensation

amounts are appropriate for the circumstances in each area.

One commenter was concerned that the proposed rule does not include

a provision for review or appeal of APHIS' compensation decisions. We

are making no changes to the proposed rule based on this comment. The

amount of compensation to be offered to individuals affected by actions

taken to control Karnal bunt are at the discretion of the Secretary.

The compensation amounts offered in this final rule, therefore, reflect

the decisions of the Secretary, and are final. Provisions for review or

appeal of compensation decisions may be more appropriate, for example,

in cases where compensation is based on appraisal of a claimant's

property. In such cases, there may be provisions for review or appeal

of the appraisal amount accepted by APHIS. Under the Karnal bunt

compensation program, compensation amounts are based on regulations

that apply equally to all claimants, with no individual appraisal of

the relative value of a claimant's wheat. Therefore, it is not

necessary to include provisions for review or appeal of APHIS'

compensation decisions.

One commenter requested complete deregulation of all wheat

producing areas that were not found to have bunted kernels under the

sampling program in the past 2 years. The commenter also requested

changes in the regulations regarding testing and treatment of seed in

areas where bunted kernels have been found. These comments are outside

the scope of this rulemaking on 1996-1997 crop season compensation.

However, we will consider these comments as we continue to evaluate the

Karnal bunt regulations concerning regulated areas and testing and

treatment of seed.

Miscellaneous

On January 9, 1998, we published a final rule in the Federal

Register (63 FR 1321-1331, Docket No. 96-016-25, effective on December

23, 1997) to provide compensation to growers and seed companies for the

loss in value of wheat seed in the 1995-1996 crop season. In the July

11 proposed rule on which this final rule is based, we proposed to

provide compensation to growers and handlers for the loss in value of

wheat seed and grain in the 1996-1997 crop season. Even though

compensation provisions for 1996-1997 crop season seed were included in

the July 11 proposal, we mistakenly failed to include seed companies as

being eligible for compensation as we did in the January 9 final rule

for 1995-1996 crop season seed. Seed companies are also referred to as

handlers with regard to seed. However, in order to be consistent with

the final rule for 1995-1996 crop season seed published on January 9,

we have added the term ``seed companies'' throughout this final rule to

make it clear that seed companies are eligible for compensation for the

loss in value of 1996-1997 crop season wheat seed.

Also, under the January 9 final rule for the 1995-1996 crop season,

only certified seed or seed grown with the intention of producing

certified seed is eligible for compensation. The requirement that wheat

seed be certified or grown with the intention of producing certified

seed was not in the proposed rule on 1995-1996 wheat seed compensation,

but was added in the January 9 final rule in response to commenters'

concerns that this is the most reliable way to establish a grower or

seed company's intent to produce wheat as a seed crop. Further,

requiring that wheat seed be certified or grown with the intention of

producing certified wheat seed ensures that the compensation is

limited, as was our intent, to market-ready seed, and will not be paid

for seed in other stages of development. For this reason, this final

rule requires that 1996-1997 crop season wheat seed must be certified

or grown with the intent of producing certified seed in order to be

eligible for compensation.

Further, we have added a requirement in this final rule that

growers and seed companies claiming compensation for seed must submit

documentation that provides evidence that the wheat being considered

for compensation is classified as certified seed or is considered

certifiable as certified seed by a State seed certification agency.

Seed certification agencies usually require that applicants for seed

certification keep records of the amount of certifiable seed harvested.

This documentation may include one or more of the following types of

documents: An application to the State seed certification agency for

field inspection (to show that seed is eligible for certification); a

bulk sale certificate; certification tags or labels issued by the State

seed certification agency; or a document issued by the State seed

certification agency verifying that the wheat is certified seed.

Growers who do not have copies of such documentation can obtain it from

the seed company or from their State's seed certification agency.

We proposed to require that, in order to claim compensation,

claimants submit a number of documents. Among them, we proposed that

claimants would have to submit verification as to the actual (not

estimated) weight of the wheat for which compensation is being claimed,

such as a copy of the limited permit under which the wheat is being

moved, or other verification. We have been made aware that a limited

permit often gives an estimated weight of the wheat, not the actual

weight. A facility weigh ticket does give the actual weight of the

wheat, and is a document to which all claimants would have access.

Therefore, this final rule states that claimants must submit

verification as to the actual (not estimated) weight of the wheat for

which compensation is being claimed, such as a copy of a facility weigh

ticket, or other verification. This change was made in Sec. 301.89-

15(c)(1) for growers, handlers, and seed companies and in Sec. 301.89-

16(b) and (c)(1) for flour millers and National Karnal Bunt Survey

participants.

The proposed rule also provided compensation for flour millers who,

in accordance with a compliance agreement with APHIS, heat treat

millfeed ``made from wheat produced in areas that require such

treatment.'' As discussed previously in this document, a proposed rule

was recently published that would amend the requirements for heat

treating millfeed, so that the area in which the wheat was grown would

no longer be the determining factor for requiring heat treatment. To

accommodate this potential change, and any other changes that may occur

with regard to millfeed requirements, this final rule states that flour

millers are eligible for compensation if they heat

[[Page 31597]]

treat millfeed ``that is required by APHIS to be heat treated.'' This

statement will exclude from compensation eligibility any millfeed that

is heat treated at the request of any entity other than APHIS.

Finally, the proposed rule stated that claims for compensation must

be received by APHIS or FSA on or before March 31, 1998. We do not

believe that this will provide enough time for claimants to submit

their claims. Therefore, this final rule requires that claims for

compensation must be received by APHIS or FSA on or before 120 days

after the date the final rule is published in the Federal Register.

Therefore, based on the rationale set forth in the proposed rule

and in this document, we are adopting the provisions of the proposal as

a final rule with the changes discussed in this document.

Effective Date

Pursuant to the administrative procedure provisions in 5 U.S.C.

553, we find good cause for making this rule effective less than 30

days after publication in the Federal Register. This rule provides

compensation to persons who experienced economic losses in the 1996-

1997 crop season because of the Karnal bunt quarantine and emergency

actions. Immediate action is necessary to compensate for these losses.

Therefore, the Administrator of the Animal and Plant Health Inspection

Service has determined that this rule should be effective upon

publication in the Federal Register.

Executive Order 12866 and Regulatory Flexibility Act

This rule has been reviewed under Executive Order 12866. The rule

has been determined to be economically significant for the purposes of

Executive Order 12866 and, therefore, has been reviewed by the Office

of Management and Budget.

This final rule establishes compensation provisions for certain

growers, handlers, seed companies, owners of grain storage facilities,

flour millers, and participants in the National Karnal Bunt Survey to

mitigate losses and expenses incurred in the 1996-1997 crop season

because of the Karnal bunt quarantine and emergency actions.

In accordance with Executive Order 12866, this analysis examines

the economic impact of providing such compensation. The wheat industry

within the regulated area is largely composed of businesses that can be

considered as ``small'' according to guidelines established by the

Small Business Administration. Therefore, this analysis also fulfills

the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et

seq.), which require agencies to consider the economic impact of rule

changes on small entities.

Upon detection of Karnal bunt in Arizona in March 1996, Federal

quarantine and emergency actions were imposed to prevent the interstate

spread of the disease to other wheat producing areas in the United

States. The unexpected discovery of Karnal bunt and subsequent Federal

emergency actions disrupted the production and marketing flows of wheat

in the quarantined areas. It was estimated that the impact of Karnal

bunt and subsequent Federal actions on the wheat industry totaled $44

million in the 1995-1996 crop season.

In order to alleviate some of the economic hardships and to ensure

full and effective compliance with the quarantine program, compensation

to mitigate certain losses has been offered to growers, handlers, seed

companies, and other affected persons in the areas regulated for Karnal

bunt. The payment of compensation is in recognition of the fact that

while benefits from regulation accrue to a large portion of the wheat

industry outside the regulated areas, the regulatory burden falls

predominately on a small segment of the affected wheat industry within

the regulated areas. For the 1995-1996 wheat crop, $39 million in

compensation funding was made available to USDA through budget

apportionment.

As additional information from sampling and testing became

available in subsequent months following the outbreak, the Agency was

able to ease the quarantine in order to minimize the disruption to

affected entities. An interim rule effective on April 25, 1997, and

published in the Federal Register on May 1, 1997 (62 FR 23620-23628,

Docket No. 96-016-19), substantially reduced the size of the area

regulated for Karnal bunt and eased restrictions on the movement of

grain and other regulated articles from those areas that remain under

regulation. The interim rule also revised the categories of regulated

areas into restricted areas for seed, restricted areas for regulated

articles other than seed, and surveillance areas. No host material was

grown in the 1996-1997 crop season in restricted areas for regulated

articles other than seed. Wheat grain that is from a surveillance area

and that tests negative for Karnal bunt may move under certificate to

any destination without restriction. Wheat seed that is from a

restricted area for seed and that tests negative for Karnal bunt may be

planted only within a regulated area.

Under this final rule, growers, handlers, and seed companies will

be eligible for compensation for losses in the 1996-1997 crop season

due to wheat grain or seed that tested positive for Karnal bunt. Only

positive-testing wheat will be eligible for compensation because of the

lack of restrictions on the movement of negative testing wheat.

Different levels of compensation will be offered depending on whether

the wheat was grown in an area under the first regulated crop season or

under the second regulated crop season. The rule defines an area in the

first regulated crop season as an area that became regulated for Karnal

bunt after the 1996-1997 crop was planted. An area under the second

regulated crop season is an area that became regulated for Karnal bunt

before the 1996-1997 crop was planted. At the time that we proposed

this compensation in July 1997, there were no areas under the first

regulated crop season. Since then, an area in San Saba County, TX, has

been added to the list of regulated areas. Growers, handlers, and seed

companies in that area will be eligible for first regulated crop season

compensation. Growers, handlers, and seed companies in all other

regulated areas will be eligible to receive second regulated crop

season compensation.

For growers, handlers, and seed companies in the second regulated

crop season, compensation for positive grain or seed will be $.60 per

bushel. Growers, handlers, and seed companies in the first regulated

crop season will be eligible for compensation at a rate not to exceed

$1.80 per bushel. These compensation rates apply to both wheat grain

and seed. The differential in compensation rates reflects the fact that

affected entities in areas under the first regulated crop season would

not have known that their area was to become regulated for Karnal bunt

at the time that they made planting and contracting decisions, and

would not have been prepared for the loss in value of their wheat due

to Karnal bunt. Growers and handlers in the second regulated crop

season knew they were in an area regulated for Karnal bunt at the time

that they made planting and contracting decisions for the 1996-1997

crop season. Given the restrictions, growers and handlers could have

chosen to alter planting or contract decisions to avoid experiencing

potential losses due to Karnal bunt. Information on the regulated

acreage in the 1996-1997 crop season, and the wheat plantings expected

within these areas, is presented in Table 1.

[[Page 31598]]

Table 1.--Karnal Bunt Regulated Areas and Wheat Plantings in Regulated Areas

----------------------------------------------------------------------------------------------------------------

Texas (El Texas (San

Arizona California New Mexico Paso) \1\ Saba) \2\

----------------------------------------------------------------------------------------------------------------

Acres Restricted for Other than Seed 1996-1997. 6,162 3,113 3,990 469 1,050.

Acres in Surveillance Area 1996-1997........... 135,000 84,000 N/A N/A 15,000.

Acres Restricted for Seed 1996-1997 \3\........ 797,000 100,000 58,650 469 20,000.

Acres of Planted Wheat in Regulated Area 1995-

1996.......................................... 181,000 129,883 10,235 705 (*)

Acres of Planted Wheat in Regulated Area 1996-

1997.......................................... 89,000 9,087 3,327 703 20,000.

----------------------------------------------------------------------------------------------------------------

\1\ The Texas-El Paso area is designated as a second regulated crop season area.

\2\ The Texas-San Saba area is designated as a first regulated crop season area.

\3\ Acreage restricted for seed encompasses both restricted areas for regulated articles other than seed and

surveillance areas.

* Not within regulated area in 1995-1996.

APHIS has completed testing of wheat from the regulated areas in

the 1996-1997 crop season. In California, for the 1996-1997 crop, 1

railcar of wheat tested positive for spores out of 219 railcars tested.

In Arizona, 5 railcars tested positive for spores out of a total of 203

railcars tested. In New Mexico and in Texas (El Paso), no grain or seed

was found to be positive for Karnal bunt. The testing of wheat

conducted under the National Karnal Bunt Survey in the 1996-1997 crop

season found one new area with Karnal bunt, in San Saba County, TX.

Positive wheat from this area will be compensated for under the

provisions for first regulated crop season areas. Approximately 76,000

bushels of harvested wheat that were in storage in this area were found

positive for Karnal bunt. Compensation calculations are provided in

Table 2.

Table 2.--Compensation for Positive Testing Wheat in the 1996-1997 Crop Season

----------------------------------------------------------------------------------------------------------------

Wheat acreage

grown in Positive wheat Positive wheat Maximum Total

Area regulated area grain (Bu.) seed (Bu.) compensation compensation

\1\ (per bushel)

----------------------------------------------------------------------------------------------------------------

California \2\.................. 9,087 3,333 0 $.60 $2,000

Arizona \3\..................... 89,000 16,667 (\4\) .60 10,000

Texas-San Saba.................. 20,000 65,641 10,494 1.80 137,044

-------------------------------------------------------------------------------

Totals...................... 118,087 85,691 10,494 .............. 149,044

----------------------------------------------------------------------------------------------------------------

\1\ One acre of wheat yields approximately 100 bushels of wheat grain in this region.

\2\ In California only one railcar tested positive for Karnal bunt. The bushels of positive wheat is estimated

by assuming that each railcar carries a load of 100 tons or 200,000 pounds. At 60 pounds per bushel, one

railcar therefore holds 3,333 bushels per car.

\3\ In Arizona, 5 railcars tested positive for Karnal bunt.

\4\ Only 25 pounds of research seed tested positive in Arizona.

Assuming an average market value of $5 per bushel for wheat in this

region, we estimate the total value of wheat produced in the regulated

areas to be $59 million in the 1996-1997 crop season. According to the

calculations in Table 2, approximately 96,185 bushels of wheat grain

and seed, or 0.8 percent of the wheat grown in the regulated areas,

tested positive for Karnal bunt in the 1996-1997 crop season. We

estimate that the 96,185 bushels would bring about $481,000 in the

absence of Karnal bunt regulations. Under the provisions of this final

rule, we expect compensation for this wheat grain and seed will total

about $150,000.

This final rule also provides compensation for the decontamination

of grain storage facilities found with positive wheat, the treatment of

millfeed, and participants in the National Karnal Bunt Survey whose

wheat or grain storage facility is found to be positive for Karnal

bunt. Compensation for decontamination of grain storage facilities will

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

decontamination, not to exceed $20,000. Ten facilities that stored seed

testing positive for Karnal bunt in San Saba County, TX, will be

eligible for this compensation. Eight of these are small, on-site

storage facilities; for purposes of this analysis, we estimate the

maximum compensation for which these small facilities will be eligible

is about $10,000 per facility. The remaining two facilities are large-

capacity storage facilities that, for purposes of this analysis, we

estimate will be eligible for the maximum compensation of $20,000 each.

Using these estimates, compensation for the decontamination of grain

storage facilities under this rule should total a maximum of $120,000.

No millfeed made from wheat grown in the regulated area has been

heat treated in the 1996-1997 crop season, so it will not be necessary

to compensate for heat treatment of millfeed. Owners of grain storage

facilities found to contain positive-testing wheat during the National

Karnal Bunt Survey are all within the newly regulated area in San Saba

County, TX. The owners will, therefore, be eligible for first regulated

crop season compensation.

The Regulatory Flexibility Act requires that agencies consider the

economic impact of rule changes on small businesses, organizations, and

governmental jurisdictions. Growers and handlers of wheat grain and

seed, and wheat seed companies, are those most affected by this rule

change. It is estimated that there are a total of 373 wheat growers in

the regulated area: 248 in Arizona, 21 in California, 23 in New Mexico,

and 81 in Texas. There are 99 growers in the surveillance area, and 274

growers in regulated areas lying beyond surveillance areas.1

Most of

[[Page 31599]]

these entities have total sales of less than $0.5 million, the Small

Business Administration's threshold for classifying wheat producers as

small entities. Accordingly, the economic impact of this rule will

largely be on small entities. However, grain in the five railcars that

tested positive for Karnal bunt in Arizona is owned by one handler who

is not considered a small entity under the criteria established by the

Small Business Administration.

---------------------------------------------------------------------------

\1\ The 99 growers in surveillance areas are distributed as

follows: 21 in Arizona, 18 in California, 60 in Texas, and none in

New Mexico. The 274 growers in regulated areas lying beyond

surveillance areas are distributed as follows: 227 in Arizona, 3 in

California, 23 in New Mexico, and 21 in Texas.

---------------------------------------------------------------------------

This final rule is expected to have a positive economic impact on

all affected entities, large and small. Compensation for the loss in

value of wheat that tests positive for Karnal bunt serves to encourage

compliance with testing requirements within the regulated area, thereby

aiding in the preservation of an important wheat growing region in the

United States. It also serves to encourage participation in the

National Karnal Bunt Survey program.

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 12988

This rule has been reviewed under Executive Order 12988, 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 final rule have been

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

control numbers are 0579-0121 and 0579-0126.

List of Subjects in 7 CFR Part 301

Agricultural commodities, Incorporation by reference, 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. 147a, 150bb, 150dd, 150ee, 150ff, 161, 162,

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

2. In Sec. 301.89-1, a definition for Actual price received is

added in alphabetical order to read as follows:

Sec. 301.89-1 Definitions.

Actual price received. The net price after adjustment for any

premiums or discounts stated on the sales receipt.

* * * * *

3. New Secs. 301.89-15 and 301.89-16 are added to read as follows:

Sec. 301.89-15 Compensation for growers, handlers, and seed companies

in the 1996-1997 crop season.

Growers, handlers, and seed companies are eligible to receive

compensation from the United States Department of Agriculture (USDA)

for the 1996-1997 crop season to mitigate losses or expenses incurred

because of the Karnal bunt regulations and emergency actions, as

follows:

(a) Growers, handlers, and seed companies in areas under first

regulated crop season. Growers, handlers, and seed companies are

eligible to receive compensation for the loss in value of their wheat

in accordance with paragraphs (a)(1) and (a)(2) of this section if: The

wheat was grown in a State where the Secretary has declared an

extraordinary emergency; and, the wheat was grown in an area of that

State that became regulated for Karnal bunt after the 1996-1997 crop

was planted, or for which an Emergency Action Notification (PPQ Form

523) was issued after the 1996-1997 crop was planted; and, the wheat

was grown in an area that remained regulated or under Emergency Action

Notification at the time the wheat was sold. Growers, handlers, and

seed companies in areas under the first regulated crop season are

eligible for compensation for 1996-1997 crop season wheat and for wheat

inventories in their possession that were unsold at the time the area

became regulated. The compensation provided in this section is for

wheat grain, certified wheat seed, and wheat grown with the intention

of producing certified wheat seed.

(1) Growers. Growers of wheat in an area under the first regulated

crop season, who sell wheat that was tested by APHIS and found positive

for Karnal bunt prior to sale, or that was tested by APHIS and found

positive for Karnal bunt after sale and the price received by the

grower is contingent on the test results, are eligible to receive

compensation as described in paragraphs (a)(1)(i) and (a)(1)(ii) of

this section. However, compensation for positive-testing wheat will not

exceed $1.80 per bushel under any circumstances.

(i) If the wheat was grown under contract and a price was

determined in the contract before the area where the wheat was grown

became regulated, compensation will equal the contract price minus the

actual price received by the grower.

(ii) If the wheat was not grown under contract or a price was

determined in the contract after the area where the wheat was grown

became regulated, 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 actual price received by the grower. 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) during the harvest months for

the area, with adjustments for transportation and other handling costs.

Separate estimated market prices will be calculated for certified wheat

seed and wheat grown with the intention of producing certified wheat

seed, and wheat grain.

(2) Handlers and seed companies. Handlers and seed companies who

sell wheat grown in an area under the first regulated crop season are

eligible to receive compensation only if the wheat was not tested by

APHIS prior to purchase by the handler or seed company, but was tested

by APHIS and found positive for Karnal bunt after purchase by the

handler or seed company, as long as the price to be paid is not

contingent on the test results. 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 actual price received by

the handler or seed company. 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) during the harvest months for the area, with adjustments for

transportation and other handling costs. Separate estimated market

prices will be calculated for certified wheat seed and wheat grown with

the intention of producing certified wheat seed, and wheat grain.

However, compensation will not exceed $1.80 per bushel under any

circumstances.

(b) Growers, handlers, and seed companies in areas under second

regulated crop season. Growers, handlers, and seed companies are

eligible to receive compensation for the loss in value of their wheat

in accordance with paragraphs (b)(1) and

[[Page 31600]]

(b)(2) of this section if: The wheat was grown in a State where the

Secretary has declared an extraordinary emergency; and, the wheat was

grown in an area of that State that became regulated for Karnal bunt

before the 1996-1997 crop was planted, or for which an Emergency Action

Notification (PPQ Form 523) was issued before the 1996-1997 crop was

planted; and, the wheat was grown in an area that remained regulated or

under Emergency Action Notification at the time the wheat was sold.

Growers, handlers, and seed companies in areas under the second

regulated crop season are eligible for compensation only for 1996-1997

crop season wheat. The compensation provided in this section is for

wheat grain, certified wheat seed, and wheat grown with the intention

of producing certified wheat seed.

(1) Growers. Growers of wheat in an area under the second regulated

crop season who sell wheat that was tested by APHIS and found positive

for Karnal bunt prior to sale, or that was tested by APHIS and found

positive for Karnal bunt after sale and the price received by the

grower is contingent on the test results, are eligible to receive

compensation at the rate of $.60 per bushel of positive testing wheat.

(2) Handlers and seed companies. Handlers and seed companies who

sell wheat grown in an area under the second regulated crop season are

eligible to receive compensation only if the wheat was not tested by

APHIS prior to purchase by the handler, but was tested by APHIS and

found positive for Karnal bunt after purchase by the handler or seed

company, as long as the price to be paid by the handler or seed company

is not contingent on the test results. Compensation will be at the rate

of $.60 per bushel of positive testing wheat.

(c) To claim compensation. Compensation payments to growers,

handlers, and seed companies under paragraphs (a) and (b) of this

section will be issued by the Farm Service Agency (FSA). Compensation

claims must be received by FSA on or before October 8, 1998. The

Administrator may extend the deadline, upon request in specific cases,

when unusual and unforeseen circumstances occur which prevent or hinder

a claimant from requesting compensation on or before that date. To

claim compensation, a grower, handler, or seed company must complete

and submit to the local FSA county office the following documents:

(1) Growers, handlers, and seed companies. A grower, handler, or

seed company must submit a Karnal Bunt Compensation Claim form,

provided by FSA. If the wheat was grown in an area that is not a

regulated area, but for which an Emergency Action Notification (PPQ

Form 523) (EAN) has been issued, the grower, handler, or seed company

must submit a copy of the EAN. Growers, handlers, and seed companies

must also submit a copy of the Karnal bunt certificate issued by APHIS

that shows the Karnal bunt test results, and verification as to the

actual (not estimated) weight of the wheat that tested positive (such

as a copy of a facility weigh ticket, or other verification). For

compensation claims for wheat seed, a grower or seed company must

submit documentation showing that the wheat is either certified seed or

was grown with the intention of producing certified seed (this

documentation may include one or more of the following types of

documents: an application to the State seed certification agency for

field inspection; a bulk sale certificate; certification tags or labels

issued by the State seed certification agency; or a document issued by

the State seed certification agency verifying that the wheat is

certified seed);

(2) Growers. In addition to the documents required in paragraph

(c)(1) of this section, growers must submit a copy of the receipt for

the final sale of the wheat, showing the total bushels sold and the

total price received by the grower. Growers compensated under paragraph

(a)(1) of this section (first regulated crop season) must submit a copy

of the contract the grower has for the wheat, if the wheat was under

contract. Growers compensated under paragraph (b)(1) of this section

(second regulated crop season) whose wheat was not tested prior to sale

must submit documentation showing that the price paid to the grower was

contingent on test results (such as a copy of the receipt for the final

sale of the wheat or a copy of the contract the grower has for the

wheat, if this information appears on those documents).

(3) Handlers and seed companies. In addition to the documents

required in paragraph (c)(1) of this section, handlers and seed

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

wheat, showing the total bushels sold and the total price received by

the handler or seed company. The handler or seed company must also

submit documentation showing that the price paid or to be paid to the

grower is not contingent on the test results (such as a copy of the

receipt for the purchase of the wheat or a copy of the contract the

handler or seed company has with the grower, if this information

appears on those documents).

Sec. 301.89-16 Compensation for grain storage facilities, flour

millers, and National Survey participants for the 1996-1997 crop

season.

Owners of grain storage facilities, flour millers, and participants

in the National Karnal Bunt Survey are eligible to receive compensation

from the United States Department of Agriculture (USDA) for the 1996-

1997 crop season to mitigate losses or expenses incurred because of the

Karnal bunt regulations and emergency actions, as follows:

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

storage facilities that are in States where the Secretary has declared

an extraordinary emergency, and who have decontaminated their grain

storage facilities pursuant to either an Emergency Action Notification

(PPQ Form 523) issued by an inspector or a letter issued by an

inspector ordering decontamination of the facilities, are eligible to

be compensated, on a one time only basis for each facility for each

covered crop year wheat, for up to 50 percent of the direct cost of

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

grain storage facility (as defined in Sec. 301.89-1). General clean-up,

repair, and refurbishment costs are excluded from compensation.

Compensation payments will be issued by APHIS. 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 by APHIS to be

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

Notification or the letter from an inspector ordering decontamination,

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 the cost

to the owner and that decontamination has been completed. Claims for

compensation must be received by APHIS on or before October 8, 1998.

The Administrator may extend this deadline, upon written request in

specific cases, when unusual and unforeseen circumstances occur which

prevent or hinder a claimant from requesting compensation on or before

that date.

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

compliance agreement with APHIS, heat treat millfeed that is required

by APHIS to be

[[Page 31601]]

heat treated 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 regulated area

received by the miller by 25 percent (the average percent of millfeed

derived from a short ton of grain). Compensation payments will be

issued by APHIS. To claim compensation, the miller must submit to an

inspector verification as to the actual (not estimated) weight of the

wheat (such as a copy of a facility weigh ticket or a copy of the bill

of lading for the wheat, if the actual weight appears on those

documents, or other verification). Flour millers must also submit

verification that the millfeed was heat treated (such as 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; or a copy

of PPQ Form 700 (which includes certification of processing) signed by

the inspector who monitors the mill). Claims for compensation must be

received by APHIS on or before October 8, 1998. The Administrator may

extend this deadline, upon written request in specific cases, when

unusual and unforeseen circumstances occur which prevent or hinder a

claimant from requesting compensation on or before that date.

(c) National Karnal Bunt Survey participants. If a grain storage

facility participating in the National Karnal Bunt Survey tests

positive for Karnal bunt, the facility will be regulated, and may be

ordered decontaminated, pursuant to either an Emergency Action

Notification (PPQ Form 523) issued by an inspector or a letter issued

by an inspector ordering decontamination of the facility. If the

Secretary has declared an extraordinary emergency in the State in which

the grain storage facility is located, the owner will be eligible for

compensation as follows:

(1) Loss in value of positive wheat. The owner of the grain storage

facility will be compensated for the loss in value of positive wheat.

Compensation will equal the estimated market price for the relevant

class of wheat minus the actual price received for the wheat. 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) during the relevant time

period for that facility, with adjustments for transportation and other

handling costs. However, compensation will not exceed $1.80 per bushel

under any circumstances. Compensation payments for loss in value of

wheat will be issued by the Farm Service Agency (FSA). To claim

compensation, the owner of the facility must submit to the local FSA

office a Karnal Bunt Compensation Claim form, provided by FSA. The

owner of the facility must also submit to FSA a copy of the Emergency

Action Notification or letter from an inspector under which the

facility is or was quarantined; verification as to the actual (not

estimated) weight of the wheat (such as a copy of a facility weigh

ticket or a copy of the bill of lading for the wheat, if the actual

weight appears on those documents, or other verification); and a copy

of the receipt for the final sale of the wheat, showing the total

bushels sold and the total price received by the owner of the grain

storage facility. Claims for compensation must be received by FSA on or

before October 8, 1998. The Administrator may extend this deadline,

upon request in specific cases, when unusual and unforeseen

circumstances occur which prevent or hinder a claimant from requesting

compensation on or before that date.

(2) Decontamination of grain storage facilities. The owner of the

facility will be compensated on a one time only basis for each grain

storage facility for each covered crop year wheat for the direct costs

of decontamination of the facility at the same rate described under

paragraph (a) of this section (up to 50 per cent of the direct costs of

decontamination, not to exceed $20,000 per grain storage facility).

Compensation payments for decontamination of grain storage facilities

will be issued by APHIS, and claims for compensation must be submitted

in accordance with the provisions in paragraph (a) of this section.

Claims for compensation must be received by APHIS on or before October

8, 1998. The Administrator may extend this deadline, upon request in

specific cases, when unusual and unforeseen circumstances occur which

prevent or hinder a claimant from requesting compensation on or before

that date.

Done in Washington, DC, this 4th day of June 1998.

Charles P. Schwalbe,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-15405 Filed 6-9-98; 8:45 am]

BILLING CODE 3410-34-P