[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Proposed Rules]
[Pages 7465-7466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3147]



========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 60, No. 26 / Wednesday, February 8, 1995 / 
Proposed Rules
[[Page 7465]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1126

[DA-95-12]


Milk in the Texas Marketing Area; Proposed Suspension of Certain 
Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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

SUMMARY: This document invites written comments on a proposal to 
suspend certain provisions of the Texas Federal milk marketing order 
from March 1, 1995, through July 31, 1995. The proposed suspension 
would remove the diversion limitation applicable to cooperative 
associations. Associated Milk Producers, Inc., a cooperative 
association representing a substantial number of producers who supply 
milk to the market, has requested the suspension. The cooperative 
asserts that the suspension is necessary to prevent uneconomical and 
inefficient movements of milk.

DATES: Comments are due no later than February 23, 1995.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. This rule would lessen the regulatory impact 
of the order on certain milk handlers and would tend to ensure that 
dairy farmers would continue to have their milk priced under the order 
and thereby receive the benefits that accrue from such pricing.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. If adopted, this proposed rule will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
608c(15)(A) of the Act, any handler subject to an order may file with 
the Secretary a petition stating that the order, any provisions of the 
order, or any obligation imposed in connection with the order is not in 
accordance with law and request a modification of an order or to be 
exempted from the order. A handler is afforded the opportunity for a 
hearing on the petition. After a hearing, the Secretary would rule on 
the petition. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
its principal place of business, has jurisdiction in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, the suspension of the following 
provision of the order regulating the handling of milk in the Texas 
marketing area is being considered for the months of March 1, 1995, 
through July 31, 1995: In Sec. 1126.13, paragraph (e)(2).
    All persons who want to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 15th day 
after publication of this notice in the Federal Register. The period 
for filing comments is limited to 15 days because a longer period would 
not provide the time needed to complete the required procedures before 
the requested suspension is to be effective.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend certain provisions of the producer 
milk definition of the Texas order for the months of March through July 
1995. The proposed suspension would remove the limitation on the amount 
of producer milk that a cooperative may divert to a nonpool plant.
    Currently the order permits a cooperative association to divert up 
to one-third of the amount of producer milk that the cooperative causes 
to be physically received during the month at handlers' pool plants to 
nonpool plants. The diversion provisions provide an efficient means to 
move milk that is in excess of fluid milk needs directly from farms to 
nonpool plants for manufacturing and still be priced under the order.
    Associated Milk Producers, Inc. (AMPI), a cooperative association 
representing a substantial number of producers who supply milk to the 
market, has requested the suspension. AMPI states that during recent 
months the cooperative has reached maximum pooling capability because 
of the diversion limitations to nonpool plants. AMPI contends that 
during the flush season (March through July) the cooperative will be 
adversely impacted as local production expands and the cooperative 
exceeds the one-third diversion limitation. AMPI projects that when 
this occurs more milk will be shipped to other pool plants than is 
needed at such plants to gain eligibility for pooling and diversion 
status. Absent a suspension, AMPI asserts that costly and inefficient 
movements of milk would have to be made to maintain pool status of 
producers who have historically supplied the fluid milk needs of the 
market.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions from March 1, 1995, through July 31, 1995. [[Page 7466]] 

List of Subjects in 7 CFR Part 1126

    Milk marketing orders.

    The authority citation for 7 CFR Part 1126 continues to read as 
follows:

    Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674.

    Dated: February 2, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-3147 Filed 2-7-95; 8:45 am]
BILLING CODE 3410-02-P