observe plant operations and equipment and make available to the market administrator such facilities as are necessary to carry out his duties. (c) Retention of records. All records required under the order to be made available to the market administrator shall be retained by the handler for a period of 3 years to begin at the end of the month to which such records pertain. If, within such 3-year period, the market administrator notifies the handler in writing that the retention of such records, or of specified records, is necessary in connection with a proceeding under section 8c (15) (A) of the Act or a court action specified in such notice, the handler shall retain such records, or specified records, until further written notification from the market administrator. The market administrator shall give further written notification to the handler promptly upon the termination of the litigation or when the records are no longer necessary in connection therewith. § 1000.6 Termination of obligations. The provisions of this section shall apply to any obligation under the order for the payment of money: (a) Except as provided in paragraphs (b) and (c) of this section, the obligation of any handler to pay money required to be paid under the terms of the order shall terminate 2 years after the last day of the month during which the market administrator receives the handler's report of receipts and utilization on which such obligation is based, unless within such 2-year period, the market administrator notifies the handler in writing that such money is due and payable. Service of such written notice shall be complete upon mailing to the handler's last known address and it shall contain but need not be limited to the following information: (1) The amount of the obligation; (2) The month(s) on which such obligation is based; and (3) If the obligation is payable to one or more producers or to a cooperative association (except an obligation to be prorated to producers under an individual handler pool), the name of such producer(s) or such cooperative association, or if the obligation is payable to the market administrator, the account for which it is to be paid; (b) If a handler fails or refuses, with respect to any obligation under the order, to make available to the market administrator all records required by the order to be made available, the market administrator may notify the handler in writing, within the 2-year period provided for in paragraph (a) of this section, of such failure or refusal. If the market administrator so notifies a handler, the said 2-year period with respect to such obligation shall not begin to run until the first day of the month following the month during which all such records pertaining to such obligation are made available to the market administrator; (c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, a handler's obligation under the order to pay money shall not be terminated with respect to any transaction involving fraud or willful concealment of a fact, material to the obligation, on the part of the handler against whom the obligation is sought to be imposed; and (d) Unless the handler files a petition pursuant to section 8c (15) (A) of the Act and the applicable rules and regulations (7 CFR 900.50 et seq.) within the applicable 2-year period indicated below, the obligation of the market administrator: (1) To pay a handler any money which such handler claims to be due him under the terms of the order shall terminate 2 years after the end of the month during which the skim milk and butterfat involved in the claim were received; or (2) To refund any payment made by a handler (including a deduction or offset by the market administrator) shall terminate 2 years after the end of the month during which payment was made by the handler. SOURCE: The provisions of this Part 1120 appear at 27 F.R. 5050, May 30, 1962, unless otherwise noted. GENERAL PROVISIONS AND DEFINITIONS § 1120.1 General provisions. The terms, definitions, and provisions in Part 1000 of this chapter are hereby incorporated by reference and made a part of this order. [36 F.R. 9855, May 29, 1971] § 1120.5 Cooperative association. "Cooperative association" means any cooperative marketing association which the Secretary determines, after application by the association: (a) To be qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the "Capper-Volstead Act"; and (b) To have full authority in the sale of milk of its members and to be engaged in making collective sales of or marketing milk or its products for its members. § 1120.6 Lubbock-Plainview, Texas, marketing area. "Lubbock-Plainview, Texas, marketing area", hereinafter called the "marketing area", means all the territory within the boundaries of the counties of: "Plant" means the land, buildings together with their surroundings, facilities and equipment, whether owned or operated by one or more persons, constituting a single operating unit or establishment at which milk or milk products (including filled milk) are received from dairy farmers or processed or packaged: Provided, That a separate establishment used only for the purpose of transferring bulk milk from one tank truck to another tank truck, or only as a distribution depot for fluid milk products in transit on routes shall not be a plant under this definition. [34 F.R. 18713, Nov. 22, 1969] § 1120.10 Distributing plant. "Distributing plant" means a plant from which any Grade A fluid milk product is disposed of during the month on a route(s) in the marketing area. § 1120.11 Supply plant. "Supply plant" means a plant from which milk, skim milk or cream acceptable for distribution under a Grade A label is moved during the month to a distributing plant. § 1120.12 Pool plant. "Pool plant" means: (a) A distributing plant, other than the plant of a producer-handler, from which a volume of Class I milk, except filled milk, not less than 50 percent of the Grade A milk received at such plant from dairy farmers and from a cooperative association (s) in its capacity as a handler pursuant to § 1120.17 (c) (2) is disposed of during the month on routes unless the volume so disposed of in the marketing area is less than 15 percent of such receipts or less than 1500 pounds on a daily average: Provided, That if a portion of such plant, physically apart from the Grade A portion of such a plant, is operated separately and is not approved by any health authority for the receiving, transferring, processing or packaging of any fluid milk product for Grade A disposition, it shall not be considered to be a part of such pool plant pursuant to this paragraph; (b) A supply plant from which a volume of fluid milk products, except filled milk, not less than 50 percent of the Grade A milk received at such plant from dairy farmers and from a cooperative association (s) in its capacity as a handler pursuant to § 1120.17(c) (2) is transferred during the month to a distributing plant from which a volume of Class I milk, except filled milk, not less than 50 percent of its receipts of Grade A milk from dairy farmers, cooperative associations, and from other plants is disposed of on routes during the month and the volume so disposed of in the marketing area is at least 15 percent of such receipts or a daily average of 1500 pounds, whichever is less: Provided, That if a portion of such supply plant, physically apart from the Grade A portion of such plant, is operated separately and is not approved by any health authority for the receiving, transferring, processing or packaging of any fluid milk product for Grade A disposition, it shall not be considered to be part of such pool plant pursuant to this paragraph: And provided further, That any plant which was a pool plant pursuant to this paragraph in each of the months of September through November shall be a pool plant for the following months of March through June, unless written application is filed with the market administrator on or before the first day of any such months for designation as a nonpool plant for the remaining months through June. [34 F.R. 18713, Nov. 22, 1969, as amended at 36 F.R. 8125, Apr. 30, 1971] § 1120.13 Nonpool plant. "Nonpool plant" means any milk or filled milk receiving, manufacturing or processing plant other than a pool plant. The following categories of nonpool plants are further defined as follows: as defined in any order (including this part) issued pursuant to the Act. (c) "Partially regulated distributing plant" means a nonpool plant that is neither an other order plant nor a producer-handler plant, from which fluid milk products in consumer-type packages or dispenser units are distributed on routes in the marketing area during the month. (d) "Unregulated supply plant" means any nonpool plant from which fluid milk products are moved to a pool plant during the month, but which is neither an other order plant nor a producer-handler plant. [34 F.R. 18714, Nov. 22, 1969] (a) "Producer" means any person, other than a producer-handler as defined in any order (including this part) issued pursuant to the Act, who produces milk in compliance with the Grade A inspection requirements of a duly constituted health authority, and whose milk is (a) received at a pool plant either directly or by a cooperative association in its capacity as a handler pursuant to § 1120.17 (c) (2), or (b) diverted from a pool plant to a nonpool plant (other than the plant of a producer-handler) for the account of either the operator of the pool plant or a cooperative association: (1) Any day during the months of March through June; and (2) Not more than 15 days' production during any month of July through February: Provided, That milk so diverted shall be deemed to have been received at the location of the pool plant from which diverted. [29 F.R. 11024, July 30, 1964] § 1120.15 Producer milk. "Producer milk” means only that skim milk and butterfat contained in: (a) Milk received at a pool plant directly from producers; (b) milk from producers diverted from a pool plant to a nonpool plant in accordance with the conditions set forth in § 1120.14(b); or (c) milk received by a cooperative association pursuant to § 1120.17(c) (2): Provided, That such milk shall be deemed to have been received by such cooperative association at a pool plant at the location of the pool plant to which it was delivered. "Other source milk” means all skim milk and butterfat contained in: (a) Receipts during the month in the form of fluid milk products except (1) Fluid milk products received from a pool plant, (2) producer milk, (3) receipts from a cooperative association in its capacity as a handler pursuant to § 1120.17 (c) (2), and (4) inventory of fluid milk products at the beginning of the month; and (b) Products other than fluid milk products from any source (including those produced at the plant) which are repackaged, reprocessed or converted to another product in the plant during the month or for which other utilization is not established. [27 F.R. 5050, May 30, 1962, as amended at 36 F.R. 9855, May 29, 1971] § 1120.17 Handler. "Handler" means: (a) Any person in his capacity as the operator of a pool plant; (b) Any person who operates a partially regulated distributing plant; (c) A cooperative association with respect to the milk of any producer which it causes: (1) To be diverted for its account to a nonpool plant; or (2) to be delivered directly from the farm to the pool plant of another handler in a tank truck owned and operated by, under contract to, or under the control of such association, unless the association notifies the market administrator and the operator of the pool plant in writing prior to the time of delivery that the transferee handler is to be the responsible handler on such milk; (d) Any person in his capacity as the operator of an unregulated supply plant; and (e) A producer-handler, or any person who operates an other order plant pursuant to § 1120.61. [27 F.R. 5050, May 30, 1962, as amended at 29 F.R. 11024, July 30, 1964] § 1120.18 Producer-handler. "Producer-handler" means any person who operates a dairy farm and a distributing plant and whose only source of supply for Class I milk is his own farm production and transfers from pool plants: Provided, That such person furnishes satisfactory proof to the mar ket administrator that the maintenance, care and management of all dairy animals and other resources necessary to produce the entire amount of fluid milk products handled (excluding transfers from pool plants) and the operation of the plant are each the personal enterprises of and at the personal risks of such person. [34 F.R. 18714, Nov. 22, 1969] § 1120.19 Filled milk. "Filled milk" means any combination of nonmilk fat (or oil) with skim milk (whether fresh, cultured, reconstituted or modified by the addition of nonfat milk solids), with or without milkfat, so that the product (including stabilizers, emulsifiers or flavoring) resembles milk or any other fluid milk product; and contains less than 6 percent nonmilk fat (or oil). [34 F.R. 18714, Nov. 22, 1969] (a)(i) [Reserved] (j) Publicly announce on or before: (i) The Class I price for the following month, and for the first time for which this paragraph is effective, the Class I price for the current month; (ii) The Class I butterfat differential for the current month; and (iii) The Class II price and Class II butterfat differential, both for the preceding month; and (2) The 10th day of each month, the uniform price and the producer butterfat differential, both for the preceding month; (k) on or before the tenth day after the end of each month report to each cooperative association, upon request by such association, the percentage of producer milk caused to be delivered by such association which was used in each class by each handler receiving such milk. For the purpose of this report the milk so received shall be prorated to each class in the proportion that the total receipts of producer milk by such handler were used in each class. (1) [Reserved] (m) Whenever required for purpose of allocating receipts from other order plants pursuant to § 1120.46 (a) (8) and the corresponding step of § 1120.46(b), the market administrator shall estimate and publicly announce the utilization (to the nearest whole percentage) in each class during the month of skim milk and butterfat, respectively, in producer milk of all handlers. Such estimate shall be based upon the most current available data and shall be final for such purpose; (n) Report to the market administrator of the other order, as soon as possible after the report of receipts and utilization for the month is received from a handler who has received fluid milk products from an other order plant, the classification to which such receipts are allocated pursuant to § 1120.46 pursuant to such report, and thereafter any change in such allocation required to correct errors disclosed in verification of such report; and (0) Furnish to each handler operating a pool plant who has shipped fluid milk products to an other order plant, the classification to which the skim milk and butterfat in such fluid milk products were allocated by the market administrator of the other order on the basis of the report of the receiving handler; and, as necessary, any changes in such classification arising in the verification of such report. [27 F.R. 5050, May 30, 1962, as amended at 29 F.R. 11024, July 30, 1964; 36 F.R. 9855, May 29, 1971; 37 F.R. 2940, Feb. 10, 1972] REPORTS § 1120.30 Reports of receipts and utilization. (a) On or before the eighth day after the end of each month each cooperative association in its capacity as a handler pursuant to § 1120.17 (c) (1) and (2) and each handler with respect to each of his pool plants shall report to the market administrator for such month and for |