This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

31593

Vol. 63, No. 111

Wednesday, June 10, 1998

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.

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:

mstefan@aphis.usda.gov.

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
31594 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations

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 positivetesting 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 § 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 § 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.
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations 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
31596 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations

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 § 301.89–15(c)(1)

for growers, handlers, and seed

companies and in § 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
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations 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.
31598 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations

1The 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.

TABLE 1.—KARNAL BUNT REGULATED AREAS AND WHEAT PLANTINGS IN REGULATED AREAS

Arizona California New Mexico Texas

(El Paso) 1

Texas

(San

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.

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

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

3Acreage 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

Area

Wheat acreage grown in

regulated

area 1

Positive wheat

grain (Bu.)

Positive wheat

seed (Bu.)

Maximum

compensation

(per bushel)

Total compensation

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

1One 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.

4Only 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 onetime 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 largecapacity 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
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations 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.

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 § 301.89–1, a definition for

Actual price received is added in

alphabetical order to read as follows:

§ 301.89–1 Definitions.

Actual price received. The net price

after adjustment for any premiums or

discounts stated on the sales receipt.

* * * * *

3. New §§ 301.89–15 and 301.89–16

are added to read as follows:

§ 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
31600 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations

(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).

§ 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

§ 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
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations 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

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 98–040–1]

Witchweed; Regulated Areas

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the list of

suppressive areas under the witchweed

quarantine and regulations by removing

areas from 12 counties in North Carolina

and 3 counties in South Carolina. This

action is necessary to relieve

unnecessary restrictions on the

interstate movement of regulated

articles from North Carolina and South

Carolina.

DATES: Interim rule effective June 4,

1998. Consideration will be given only

to comments received on or before

August 10, 1998.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 98–040–1, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road,

Unit 118, Riverdale, MD 20737–1238.

Please state that your comments refer to

Docket No. 98–040–1. Comments

received may be inspected at USDA,

room 1141, South Building, 14th Street

and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr.

Ronald P. Milberg, Operations Officer,

Operational Support, PPQ, APHIS, 4700

River Road, Unit 134, Riverdale, MD

20737–1236, (301) 734–5255.

SUPPLEMENTARY INFORMATION:

Background

Witchweed (Striga spp.), a parasitic

plant that feeds off the roots of its host,

causes degeneration of corn, sorghum,

and other grassy crops. It is found in the

United States only in parts of North

Carolina and South Carolina.

The witchweed quarantine and

regulations, contained in 7 CFR 301.80

through 301.80–10 (referred to below as

the regulations), quarantine the States of

North Carolina and South Carolina and

restrict the interstate movement of

certain articles from regulated areas in

those States for the purpose of

preventing the spread of witchweed.