[Code of Federal Regulations]
[Title 7, Volume 5]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR301.89-16]

[Page 144-148]
 
                          TITLE 7--AGRICULTURE
 
 CHAPTER III--ANIMAL AND PLANT HEALTH INSPECTION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 301_DOMESTIC QUARANTINE NOTICES--Table of Contents
 
                           Subpart_Karnal Bunt
 
Sec. 301.89-16  Compensation for grain storage facilities, flour millers, 

National Survey participants, and certain custom harvesters and equipment 

owners or lessees for the 1999-2000 and subsequent crop seasons.

    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 1999-
2000and subsequent crop seasons 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

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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 for the 1999-2000 crop season must be received 
by APHIS on or before December 4, 2001. Claims for compensation for the 
2000-2001 crop season and beyond must be received by March 1 of the year 
following that crop season. The Administrator may extend these deadlines 
upon written request in specific cases, when unusual and unforeseen 
circumstances occur that prevent or hinder a claimant from requesting 
compensation on or before these dates.
    (b) Flour millers. Flour millers who, in accordance with a 
compliance agreement with APHIS, heat treat millfeed that is required by 
APHIS to be 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 for the 
1999-2000 crop season must be received by APHIS on or before December 4, 
2001. Claims for compensation for the 2000-2001 crop season and beyond 
must be received by March 1 of the year following that crop season. The 
Administrator may extend these deadlines upon written request in 
specific cases, when unusual and unforeseen circumstances occur that 
prevent or hinder a claimant from requesting compensation on or before 
these dates.
    (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

[[Page 146]]

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 for the 1999-2000 crop 
season must be received by APHIS on or before December 4, 2001. Claims 
for compensation for the 2000-2001 crop season and beyond must be 
received by March 1 of the year following that crop season. The 
Administrator may extend these deadlines upon written request in 
specific cases, when unusual and unforeseen circumstances occur that 
prevent or hinder a claimant from requesting compensation on or before 
these dates.
    (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 for the 1999-2000 crop season must be received 
by APHIS on or before December 4, 2001. Claims for compensation for the 
2000-2001 crop season and beyond must be received by March 1 of the year 
following that crop season. The Administrator may extend these deadlines 
upon written request in specific cases, when unusual and unforeseen 
circumstances occur that prevent or hinder a claimant from requesting 
compensation on or before these dates.
    (d) Special allowances for custom harvesters and equipment owners or 
lessees for costs related to cleaning and disinfection of mechanized 
harvesting and other equipment in Archer, Baylor, Throckmorton, and 
Young Counties, TX, in the 2000-2001 crop season. All claims for 
compensation under this paragraph Sec. 301.89-16(d) must be received by 
APHIS on or before September 6, 2005. The Administrator may extend this 
deadline upon written request in specific cases, when unusual and 
unforeseen circumstances occur that prevent or hinder a claimant from 
requesting compensation on or before this date. All compensation 
payments made under this paragraph Sec. 301.89-16(d) will be issued by 
APHIS. Claims for compensation should be sent to Plant Protection and 
Quarantine, APHIS, USDA, 304 West Main Street, Olney, TX 76374.
    (1) Custom harvesters. (i) Cleaning and disinfection of mechanized 
harvesting equipment. Custom harvesters who harvested host crops that an 
inspector determined to be infected with Karnal bunt and that were grown 
in Archer, Baylor, Throckmorton, or Young Counties, TX, during the 2000-
2001 crop season are eligible to receive compensation for the cost of 
cleaning and disinfecting their mechanized harvesting equipment as 
required by Sec. 301.89-12(a). Compensation for the cost of cleaning 
and disinfection mechanized harvesting equipment used to harvest Karnal 
bunt-infected host crops will be either the actual cost or $750 per 
cleaned machine, whichever is less. To claim compensation, a custom 
harvester must provide copies of a contract or other signed agreement 
for harvesting in Archer, Baylor, Throckmorton, or Young County during 
the 2000-2001 crop season, signed on a date prior to the designation of 
the county as a regulated area for Karnal bunt, or an affidavit stating 
that the custom harvester entered into an agreement to harvest in 
Archer, Baylor, Throckmorton, or Young County during the 2000-2001 crop 
season prior to the designation of the county as a regulated area for 
Karnal bunt, signed by the customer with whom the custom harvester 
entered into the agreement; a copy of the PPQ-540 certificate issued to 
allow the movement of mechanized harvesting equipment from a regulated 
area after it had been used to harvest host crops

[[Page 147]]

that an inspector determined to be infected with Karnal bunt and had 
been subsequently cleaned and disinfected; and a receipt showing the 
cost of the cleaning and disinfection.
    (ii) Contracts lost due to cleaning and disinfection. Custom 
harvesters who harvested host crops that an inspector determined to be 
infected with Karnal bunt and that were grown in Archer, Baylor, 
Throckmorton, or Young Counties, TX, during the 2000-2001 crop season 
are also eligible to be compensated for the revenue lost if they lost 
one contract due to downtime necessitated by cleaning and disinfection, 
if the contract to harvest Karnal bunt-infected host crops in a 
previously nonregulated area was signed before the area was declared a 
regulated area for Karnal bunt. Compensation will only be provided for 
one contract lost due to cleaning and disinfection. Compensation for any 
contract that was lost due to cleaning and disinfection will be either 
the full value of the contract or $23.48 for each acre that was to have 
been harvested under the contract, whichever is less. To claim 
compensation, a custom harvester must provide copies of a contract or 
other signed agreement for harvesting in Archer, Baylor, Throckmorton, 
or Young County during the 2000-2001 crop season, signed on a date prior 
to the designation of the county as a regulated area for Karnal bunt, or 
an affidavit stating that the custom harvester entered into an agreement 
to harvest in Archer, Baylor, Throckmorton, or Young County during the 
2000-2001 crop season prior to the designation of the county as a 
regulated area for Karnal bunt, signed by the customer with whom the 
custom harvester entered into the agreement; a copy of the PPQ-540 
certificate issued to allow the movement of mechanized harvesting 
equipment from a regulated area after it has been used to harvest host 
crops that an inspector determined to be infected with Karnal bunt and 
had been subsequently cleaned and disinfected; and the contract for 
harvesting in an area not regulated for Karnal bunt that had been lost 
due to time lost to cleaning and disinfecting harvesting equipment, 
signed on a date prior to the designation of the relevant county as a 
regulated area for Karnal bunt, for which the custom harvester will 
receive compensation, or an affidavit stating that the custom harvester 
entered into an agreement to harvest in an area not regulated for Karnal 
bunt prior to the designation of the county as a regulated area for 
Karnal bunt and stating the number of acres that were to have been 
harvested and the amount the custom harvester was to have been paid 
under the agreement, signed by the customer with whom the custom 
harvester entered into the agreement.
    (iii) Fixed costs incurred during cleaning and disinfection. Custom 
harvesters who harvested host crops that an inspector determined to be 
infected with Karnal bunt and that were grown in Archer, Baylor, 
Throckmorton, or Young Counties, TX, during the 2000-2001 crop season 
who do not apply for compensation for a contract lost due to cleaning 
and disinfection as described in paragraph (d)(1)(ii) of this section 
are eligible for compensation for fixed costs incurred during cleaning 
and disinfection. Compensation for fixed costs incurred during cleaning 
and disinfection will be $2,000. To claim compensation, a custom 
harvester must provide copies of a contract or other signed agreement 
for harvesting in Archer, Baylor, Throckmorton, or Young County during 
the 2000-2001 crop season, signed on a date prior to the designation of 
the county as a regulated area for Karnal bunt, or an affidavit stating 
that the custom harvester entered into an agreement to harvest in 
Archer, Baylor, Throckmorton, or Young County during the 2000-2001 crop 
season prior to the designation of the county as a regulated area for 
Karnal bunt, signed by the customer with whom the custom harvester 
entered into the agreement; and a copy of the PPQ-540 certificate issued 
to allow the movement of mechanized harvesting equipment from a 
regulated area after it has been used to harvest host crops that an 
inspector determined to be infected with Karnal bunt and has been 
subsequently cleaned and disinfected.

[[Page 148]]

    (2) Other equipment; cleaning and disinfection. Owners or lessees of 
equipment other than mechanized harvesting equipment and seed 
conditioning equipment that came into contact with host crops that an 
inspector determined to be infected with Karnal bunt in Archer, Baylor, 
Throckmorton, or Young Counties, TX, during the 2000-2001 crop season 
and that was required by an inspector to be cleaned and disinfected are 
eligible for compensation for the cost of cleaning and disinfection. 
Compensation for the cleaning and disinfection of such equipment will be 
$100. To receive this compensation, owners or lessees must submit a copy 
of the PPQ-540 certificate issued to allow the movement of the equipment 
from a regulated area after it had been in contact with host crops that 
an inspector determined to be infected with Karnal bunt and had been 
subsequently cleaned and disinfected.

(Approved by the Office of Management and Budget under control number 
0579-0248.)

[63 FR 31600, June 10, 1998, as amended at 64 FR 34113, June 25, 1999; 
66 FR 40842, Aug. 6, 2001; 69 FR 24915, May 5, 2004; 69 FR 41181, July 
8, 2004; 70 FR 24302, May 9, 2005]

Subpart--Corn Cyst Nematode [Reserved]