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GENERAL PROVISIONS

§ 338.99 Assistance in finding suppliers. If any exporter authorized to use the symbol CXN is unable to find a supplier to accept his order, he may apply to the ODC which will, whenever possible, prefer him to other suppliers who have available supplies.

§ 338.100 Delegation. The Office of International Trade, Department of Commerce, may upon behalf of the ODC, authorize exporters to use the symbol CXN under this subpart on purchase orders for niterogenous fertilizer materials for export (except exports to Canada) but only to the extent and under the conditions authorized by the ODC in writing and transmitted to the Office of International Trade. The Office of International Trade may exercise this authority through such of its officials as the Director of that Office may determine.

§ 338.101 Appeals. Any appeal for relief or exemption from the provisions of this subpart shall be made in accordance with §§ 336.51-336.61 (Allocation Regulation 3), by filing a letter in triplicate referring to the particular provision appealed from, the precise relief desired and stating fully the grounds of the appeal and the reasons why a denial of the appeal would result in an undue and excessive hardship on appellant, not suffered by others similarly situated or result in improper discrimination.

§ 338.102 Reports (a) From, persons placing certified orders. Whenever any person places a certified order under this subpart, he must immediately notify ODC, in writing, of the names of the supplies, the tonnages ordered, and the months specified for delivery.

(b) From producers. Producers (including converters) of nitrogenous compounds (including anhydrous ammonia) or of nitrogenous fertilizer materials must file such reports as may be required, with the ODC, subject to the approval of the Bureau of the Budget.

$338.103

Communications. Except as otherwise specially stated in this subpart all communications regarding this subpart, and all reports under this subpart, should be addressed to the Chemicals Division, Office of Domestic Commerce, Department of Commerce, Washington 25, D. C., Ref.: Order N-1.

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AUTHORITY: §§ 338.91 to 338.103 issued under Pub. Laws 188, 606, 80th Cong. E. O. 9841, Apr. 23, 1947, 12 F. R. 2645. Materials Control Reg. 1, as amended May 7, 1948, 13 F. R. 2508.

The foregoing comprising Part 338, §§ 338.91 to 338.103, shall be effective January 1, 1949.

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OFFICE OF DOMESTIC COMMERCE,
By RAYMOND S. HOOVER,

Issuing Officer.

9006649-ser. g

EXHIBIT 2

Supply and distribution of nitrogen, fertilizer years ending June 30, 1948, 1949, and 1950

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EXHIBIT 2-Continued

Supply and distribution of nitrogen, fertilizer years ending June 30, 1948, 1949, and 1950-Continued

[Thousands of tons of contained nitrogen]

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1 These areas differ from standard to prevent disclosure of individual company operations. States included in each area are shown below:
I. New England: Maine, Vermont, New Hampshire, Massachusetts, Connecticut, and Rhode Island.

II. Middle Atlantic: New York, Pennsylvania, West Virginia, Virginia, District of Columbia, Maryland, Delaware, New Jersey, and South Point, Ohio.
III. South Atlantic: North Carolina, South Carolina, Georgia, and Florida.

V. West North Central: Minnesota, Iowa, Missouri, Nebraska, North Dakota, and South Dakota.

IV. East North Central: Ohio, except South Point, Michigan, Wisconsin, Illinois, and Indiana.

VI. East South Central: Kentucky, Tennessee, Alabama, and Mississippi.

VII. West South Central: Arkansas, Louisiana, Kansas, Oklahoma, and Texas.

VIII. Western: Montana, Wyoming, Colorado, New Mexico, Arizona, Utah, Idaho, Oregon, Nevada, California, and Washington.

2 Includes requirements for southern Korea previously treated as an occupied area.

3 Does not include any exports to China for 1949-50.

4 ECA included in Army for year 1949-50.

3 27

1,577

-1

5 These requirements were estimated on basis of continued full employment. They are probably high now for industrial but still applicable to agriculture in view of continued farm price support.

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CHAPTER III-BUREAU OF FOREIGN AND DOMESTIC COMMERCE, DEPARTMENT OF COMMERCE

(Allocation Order D-1)

Subpart Distribution of Army Anhydrous Ammonia (§§ 338.111 to 338.118) is designated Allocation Order D-1 and is a revision and redesignation of former Distribution Order D-1, as amended September 21, 1948, which it supersedes.

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§ 338.111 Purpose. (a) This subpart explains how the Department of Commerce, acting through the Office of Domestic Commerce, will direct the distribution of Army anhydrous ammonia for the balance of the fertilizer year, October 1, 1948, to June 30, 1949. "Army anhydrous ammonia" means anhydrous ammonia made available by the Department of the Army for the commercial production of nitrogenous fertilizer materials for domestic use, pursuant to the following provision in section 205 of Title II of Public Law 793, 80th Congress (Foreign Aid Appropriation Act, 1949), approved June 28, 1948:

66* * * In addition, the Department of the Army shall make available, for the commercial production of nitrogenous fertilizer materials for domestic use, 10 per centum of the total anhydrous ammonia produced in the United States in plants operated by or for the Department of the Army, said anhydrous ammonia to be distributed as directed by the Department of Commerce, which shall give preference, in distributing said anhydrous ammonia, to producers of ammonium sulphate who were producing ammonium sulphate during the six months preceding the enactment of this Act or who shall have ceased to produce, or shall be faced with an imminent shutdown in the production of, ammonium sulphate for want of anhydrous ammonia, to the extent necessary to permit such producers to operate

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(b) This subpart does not deal with anhydrous ammonia made available by the Department of the Army for production of nitrogenous fertilizer materials for export, under Public Law 606, 80th Congress. Such distribution is provided for under Allocation Order N-1, §§ 338.91 to 338.103, inclusive.

DISTRIBUTION POLICIES

§ 338.112 ODC distribution policies. While the expected quantity of Army anhydrous ammonia is substantial, it represents only a small part of the total domestic supply and will meet only a small part of the total demand for use in fertilizer production. ODC distribution of this limited quantity of Army anhydrous ammonia will be based upon the requirements of section 205 of Public Law 793, as quoted above.

Distribution will be made on a quarterly basis, beginning with the fourth calendar quarter of 1948 and extending through the second calendar quarter of 1949.

(a) Statutory preference distribution to certain producers of ammonium sulphate. For the purposes of this subpart, the term "producer of ammonium sulphate" means a person regularly engaged in the business of producing and selling a commercial fertilizer product composed chiefly of ammonium sulphate and containing not less than 20.5% of nitrogen; and the term "selling" ("or sale") does not include transactions with plants affiliated with a producer.

(1) As required by section 205 of Public Law 793 preference in distribution will be given to the following classes of producers of ammonium sulphate, who will be authorized by ODC to purchase Army anhydrous ammonia to the extent necessary to permit such producers to operate:

(1) Those who were producing ammonium sulphate during the six-month period December 28, 1947-June 28, 1948;

(ii) Those who were producing ammonium sulphate on or prior to June 28, 1948 and ceased commercial production for want of anhydrous ammonia or are faced with an imminent shutdown in the production of ammonium sulphate for want of anhydrous ammonia.

This statutory preference distribution will be made upon the basis of applications submitted as explained in § 338.114 and subject to the conditions set out in § 338.113.

(2) An application from a producer of ammonium sulphate eligible under subparagraph (1) of this paragraph will be approved only for the minimum quantity of anhydrous ammonia needed to continue or return the particular plant to the production and sale of ammonium sulphate.

(i) Ordinarily, approval will be limited to the quantity which the ODC estimates will, together with other available supplies of anhydrous ammonia, provide for production during the calendar quarter of 75% of the largest quantity of ammonium sulphate produced in the plant during any consecutive two months in the year July 1, 1947-June 30, 1948.

(ii) However, if the applicant conclusively demonstrates to the ODC that the quantity of anhydrous ammonia provided for in subdivision (i) of this subparagraph will not permit him to continue or return to commercial production and sale of ammonium sulphate without serious financial loss, the ODC may make available an additional quantity sufficient to permit operation without such loss. (iii) In the event that, subsequent to an allocation to it of Army anhydrous ammonia under subparagraph (2) (i) or (ii) of this section, a plant obtains anhydrous ammonia for export purposes under Allocation Order N-1, §§ 338.91 to 338.103 inclusive, the unshipped balance of the Army anhydrous ammonia previously allocated will be correspondingly reduced.

(b) Distribution of balance. Any balance of the Army anhydrous ammonia not required for the statutory preference distribution under paragraph (a) of this section will be distributed, to the extent available, to the commercial producers of primary nitrogen who are supplying nitrogen for the civilian export program of 1948-49 either as anhydrous ammonia or in the form of other nitrogeous fertilizer materials.

(1) The following classes of nirogen producers who are participating in the 1948-49 export program will be eligible for a distribution :

(i) Primary producers of anhydrous ammonia who manufacture solid nitrogenous fertilizer materials or who regularly sell anhydrous ammonia.

(ii) Primary producers of by-product sulphate who will use anhydrous ammonia for increasing their output of ammonium sulphate.

(2) The distribution of Army anhydrous ammonia for the balance of the current fertilizer year (July 1, 1948 to June 30, 1949) will be made to the above classes of nitrogen producers in quantities proportionate to the amounts of nitrogen which they are to supply for the export program during the current fertilizer year under Allocation Order N-1, § § 338.91 to 338.103, inclusive.

§ 338.113 Conditions. Every distribution made under this section is made subject to the condition that the applicant agrees:

(1) To comply with the sales terms for Army anhydrous ammonia established by the Department of the Army as to price, payment, point of delivery, etc. (2) To unload promptly after arrival, the tank cars (s) used to ship the Army anhydrous ammonia to the applicant's plant.

(3) In the case of producers of ammonium sulphate receiving preference distribution under § 338.112 (a) of this subpart, to use the Army anhydrous ammonia only at the plant covered by the application and only for the pro-duction and sale of ammonium sulphate for domestic fertilizer use.

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