[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1124.11]

[Page 165-166]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1124_MILK IN THE PACIFIC NORTHWEST MARKETING AREA--Table 
of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 1124.11  Cooperative reserve supply unit.

    Cooperative reserve supply unit means any cooperative association or 
its agent that is a handler pursuant to Sec. 1000.9(c) that does not 
own or operate a plant, if such cooperative has been qualified to 
receive payments pursuant to Sec. 1124.73 and has been a handler of 
producer milk under the order in this part or its predecessor order 
during each of the 12 previous months, and if a majority of the 
cooperative's member producers are located within 125 miles of a plant 
described in Sec. 1124.7(a). A cooperative reserve supply unit shall be 
subject to the following conditions:
    (a) The cooperative shall file a request with the market 
administrator for cooperative reserve supply unit status at least 15 
days prior to the first day of the month in which such status is desired 
to be effective. Once qualified as a cooperative reserve supply unit 
pursuant to this paragraph, such status shall continue to be effective 
unless the cooperative requests termination prior to the first day of 
the month that change of status is requested, or the cooperative fails 
to meet all of the conditions of this section.
    (b) The cooperative reserve supply unit supplies fluid milk products 
to pool distributing plants located within 125 miles of a majority of 
the cooperative's member producers in compliance with any announcement 
by the market administrator requesting a minimum level of shipments as 
follows:
    (1) The market administrator may require such supplies of bulk fluid 
milk from cooperative reserve supply units whenever the market 
administrator finds that milk supplies for Class I use are needed for 
plants defined in Sec. 1124.7(a) or (b). Before making such a finding, 
the market administrator shall investigate the need for such shipments 
either on the market administrator's own initiative or at the request of 
interested persons if the request is made in writing at least 15 days 
prior to the month for which the requested revision is desired 
effective. If the market administrator's investigation shows that such 
shipments might be appropriate, the market administrator shall issue a 
notice stating that a shipping announcement is being considered and 
inviting data, views and arguments with respect to the proposed shipping 
announcement. Any decision

[[Page 166]]

on the required shipment of bulk fluid milk from cooperative reserve 
supply units must be made in writing at least one day before the 
effective date.
    (2) Failure of a cooperative reserve supply unit to comply with any 
announced shipping requirements, including making any significant change 
in the unit's marketing operation that the market administrator 
determines has the impact of evading or forcing such an announcement, 
shall result in immediate loss of cooperative reserve supply unit status 
until such time as the unit has been a handler pursuant to Sec. 
1000.9(c) for at least 12 consecutive months.