# Karnal Bunt; Compensation for the 1996-1997 Crop Season

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## Record

- **Collection:** Federal Register
- **Document type:** Rule
- **Published:** June 10, 1998
- **Citation:** 63 FR 31593

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A98-15405. Public record. Not legal advice.