SEC. 
2. 
COMPENSATION 
FOR 
UNDERESTIMATION 
OF
WHEAT PROTEIN CONTENT.
(a) AUTHORIZATION FOR COMPENSATION.—
(1) IN GENERAL.—The United States shall pay
such amount as is necessary to compensate wheat
producers and elevator operators for lost revenue on
the sale of wheat, and lost earnings thereon, result-
ing from the adoption by the Federal Grain Inspec-
tion Service in May 1993, of erroneous protein
measurement standards based on miscalibrated Near
Infrared Transmittance (hereinafter in this Act re-
ferred to as ‘‘NIRT’’) instruments.
(2) SETTLEMENT AGREEMENT.—After notifying
each known eligible person of the provisions of this
Act at the person’s last known address via first class
mail, the Secretary of Agriculture shall negotiate a
settlement agreement with the class representatives
and their attorneys of record on behalf of the class
of claimants in the case of Gollehon Farming v.
United States, 117 F. Supp. 2d 1145 (D. Mont.
1998), aff’d, 207 F.3d 1373 (Fed. Cir. 2000), in ac-
cordance with the provisions of this Act. Pursuant to
the settlement agreement, the United States will pay
a lump-sum amount into a settlement trust, and the
principal and income of the trust shall be distributed
in accordance with the settlement agreement and the
orders of the court. The amount of the lump-sum
shall be not greater than $152,400,000, plus the
amounts of interest, reimbursements, and reserves
determined in accordance with subsections (d) and
(e). The settlement shall be subject to court ap-
proval.
(b) PERSONS ELIGIBLE FOR RELIEF.—Persons eligi-
ble for compensation pursuant to subsection (a) shall con-
sist of the following:
(1) WHEAT PRODUCERS.—All wheat producers
in the United States who sold wheat between May
2, 1993, and January 24, 1994, inclusive, for a
price determined wholly or in part with reference to
measured or estimated protein content.
(2) ELEVATOR
OPERATORS.—All independent
country grain elevator operators in the United
States (and any persons who purchased wheat from
such operators) who resold wheat at a loss resulting
from the change to NIRT.
(c) REQUIRED SHOWING.—A claimant shall be enti-
tled to compensation pursuant to subsection (a) upon a
showing of—
(1) membership in the class of persons eligible
for compensation as described in subsection (b); and
(2) the number of bushels of wheat sold during
the period May 2, 1993, through January 24, 1994,
inclusive, and any other information required by the
settlement agreement.
(d) AMOUNT OF INDIVIDUAL COMPENSATION.—
(1) GROSS
AMOUNT.—The gross amount of
compensation payable to an individual claimant shall
be determined in accordance with a formula which
may be negotiated as part of the settlement agree-
ment, or determined by the settlement trustee in ac-
cordance with applicable orders of the court, or both.
The formula for determining the gross amounts of
individual claims shall be based primarily upon the
number of bushels of wheat sold by the claimant
during the period from May 2, 1993, through Janu-
ary 24, 1994, and may also take into account any
other relevant factors, including the type and grade
of wheat sold, location of crop land, estimated pro-
tein content, date of harvest, and date of sale. In
any event, the average gross amount shall be equal
to $0.30 per bushel, plus interest as determined in
accordance with paragraph (2) and reimbursement
of costs and attorneys’ fees as provided in subsection
(e), subject to the provisions of subsection (e)(2).
(2) INTEREST.—The interest component of
each claimant’s individual gross amount shall be
computed at the rates in effect under section
6621(a)(1) of the Internal Revenue Code of 1986.
Such interest shall be limited to the period from
January 1, 1994, until the date on which the lump-
sum amount is paid into the settlement trust.
(e) PROCEDURES REGARDING SETTLEMENT.—
(1) NEGOTIATED SETTLEMENT.—The Secretary
shall negotiate a settlement with the Gollehon Farm-
ing class representatives and their attorneys of
record, on behalf of the entire class of persons eligi-
ble for compensation as described in subsection (b),
which settlement shall determine and set forth the
following:
(A) AGGREGATE AMOUNT.—The aggregate
amount that is reasonably estimated to be nec-
essary to fully compensate all members of the
class as provided in subsection (d), including in-
terest and reimbursement of attorney’s fees and
expenses, which amount shall be paid into a set-
tlement trust to be administered in accordance
with the terms and conditions of the settlement
agreement and the orders of the court.
(B) RESERVE.—An additional amount
equal to 25 percent of the amount determined
in accordance with subparagraph (A) to be paid
into the settlement trust and used as a reserve
in case the aggregate amount determined in ac-
cordance with subparagraph (A) proves to be
insufficient to fully compensate all class mem-
bers, and provisions governing the disposition of
any amounts that remain in the trust upon its
termination, after payment of all fees and ex-
penses.
(C) PROCEDURES
AND
SCHEDULE.—The
procedures and schedule for identifying mem-
bers of the class of persons eligible for com-
pensation and paying their claims, including the
use of information available to the Secretary for
identifying potential claimants and quantifying
individual claims.
(D) PAYMENT OF FEES AND EXPENSES.—
Provisions regarding the investment of trust
funds and the use of trust earnings to pay all
or part of the fees and expenses associated with
settlement implementation, trust administra-
tion, and legal representation.
(E) OTHER PROVISIONS.—Any other provi-
sions that are reasonable and appropriate for
achieving the purposes of this Act.
(2) PROPORTIONAL REDUCTIONS.—In the event
that the aggregate gross amount of individual claims
as determined in accordance with subsection (d) ex-
ceeds the estimated and reserve amounts determined
pursuant to subparagraphs (A) and (B) of para-
graph (1), the amounts computed for individual
claimants shall be proportionally reduced so that the
aggregate amount of individual net payments equals
such estimated and reserve amounts.
(3) STIPULATION.—A stipulation setting forth
the terms of the settlement shall be filed in the
Gollehon Farming case, or in a new case filed for
such purpose by the Gollehon Farming plaintiffs and
their attorneys in a United States district court or
the United States Court of Federal Claims, and
shall become final upon the approval of the court.
(4) ATTORNEY’S
FEES.—Attorney’s fees pay-
able from the trust in connection with claims com-
pensated pursuant to this Act shall be determined in
accordance with the maximum rate provided by sec-
tion 2678 of title 28, United States Code. To the ex-
tent that such fees are not payable through deduc-
tions from individual claims, they shall be payable
from trust earnings, trust principal in excess of the
aggregate amount of individual claims, and trust
principal held for class members who cannot be lo-
cated and paid.
(5) USE
OF
AMOUNTS
REMAINING
IN
TRUST
AFTER PAYMENTS.—The settlement agreement may
provide that any amounts remaining in the trust
after the time period for paying individual claims
has expired, and after payment of all fees and ex-
penses, are to be used for one or both of the fol-
lowing purposes:
(A) STUDY.—A study and report to Con-
gress, by an appropriate commission of lawyers
and other experts, on statutory changes that
are recommended for purposes of securing full
and fair compensation to persons who suffer
losses as a result of negligent or unlawful ac-
tions by agents and employees of the United
States.
(B) PROGRAMS.—Programs of benefit to
farmers who produce wheat that is sold for a
price determined wholly or in part with ref-
erence to measured or estimated protein con-
tent.
(f) WAIVER OF CONDITIONS AND LIMITATIONS.—Eli-
gible persons as defined in subsection (b) shall be entitled
to receive compensation as provided herein notwith-
standing their noncompliance with section 2675 of title
28, United States Code, and notwithstanding any previous
denial of their claims or any previous judgment of any
court to the contrary, including the judgment in Gollehon
Farming, and their claims shall not be subject to any limi-
tation periods for asserting such claims, including the limi-
tations in section 2401 of title 28, United States Code.
(g) SOURCE
OF PAYMENT.—Notwithstanding any
other provision of law, the amount of the lump-sum settle-
ment negotiated by the Secretary pursuant to subsection
(e) shall be paid from the appropriation made by section
1304 of title 31, United States Code.
(h) FULL SETTLEMENT.—The payment authorized
by this Act shall be in full satisfaction of all claims in
connection with lost revenue on the sale of wheat, and lost
earnings thereon, resulting from the adoption by the Fed-
eral Grain Inspection Service in May 1993, of erroneous
protein measurement standards based on miscalibrated
NIRT instruments.
Æ