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.

Proposed Rules Federal Register

7465

Vol. 60, No. 26

Wednesday, February 8, 1995

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

§ 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.
7466 Federal Register / Vol. 60, No. 26 / Wednesday, February 8, 1995 / Proposed Rules

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

7 CFR Part 1131

[DA–95–11]

Milk in the Central Arizona 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 Central

Arizona Federal milk marketing order

for an indefinite period beginning

March 1, 1995. The proposed

suspension would eliminate the

requirement that a cooperative

association ship at least 50 percent of its

receipts to other handler pool plants to

maintain pool status of a manufacturing

plant operated by the cooperative.

United Dairymen of Arizona, a

cooperative association that represents

nearly all of the 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 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, had

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 Central Arizona marketing

area is being considered for an

indefinite period beginning March 1,

1995:

In § 1131.7(c), the words ‘‘50 percent

or more of its member producer milk

(including the skim milk and butterfat

in fluid milk products transferred from

its own plant pursuant to this paragraph

that is not in excess of the skim milk

and butterfat contained in member

producer milk actually received at such

plant) received at the pool plants of

other handlers during the current month

or the previous 12-month period ending

with the current month.’’

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 Central

Arizona order for an indefinite period

beginning March 1, 1995. The proposed

suspension would remove the

requirement that a cooperative

association that operates a

manufacturing plant in the marketing

area must ship at least 50 percent of its

milk supply during the current month

or the previous 12-month period ending

with the current month to other

handlers’ pool plants to maintain the

pool status of its manufacturing plant.

Currently the order permits a

cooperative association’s manufacturing

plant, located in the marketing area, to

be a pool plant if at least 50 percent of

the producer milk of members of the

cooperative association is physically

received at pool plants of other handlers

during the current month or the

previous 12-month period ending with

the current month.

The proposed suspension of this

shipping requirement was requested by

United Dairymen of Arizona (UDA), a

cooperative association that represents

nearly all of the dairy farmers who

supply the Central Arizona market.

UDA contends that the continued pool

status of their manufacturing plant is

threatened by an increase in milk

production combined with a drop in

Class I sales. UDA states that in 1994 its

member production increased 17

percent over the previous year. In 1994,

monthly deliveries to distributing plants

also increased sufficiently to ensure

UDA a safe margin over the minimum

50 percent shipping requirement to

maintain pool status of its

manufacturing plant. According to

UDA, the increase in distributing plant

demand reflected a significant increase

in Class I sales in the Mexico market by

Central Arizona handlers. The recent

collapse of the Mexican peso has

curtailed these sales and thus reduced

handler requirements for bulk milk

deliveries from UDA. Absent a