Article 1. Definitions of Words and Terms

RULE 240: Applicability.

Unless otherwise specified, all Rules in Chapter IV shall apply to contracts for cottonseed meal, and cottonseed hulls.

RULE 241: A Contract.

Sec. 1. Unless otherwise stated, contracts shall be expressed as a specific number of tons as defined in Rule 25. Contracts covering more than one carload or truckload shall be construed as divisible and not entire so that default, in quantity or quality, on one or more cars or trucks will not affect the remainder of the contract. Each carload or truckload shipment shall be treated as a separate contract for purposes of quality determination, except in the case of shipments for export where quality shall be determined on the basis of each 112-ton lot or fraction thereof.

Nothing in this Rule shall prevent buyer and seller from agreeing to average out weights on contracts involving shipments over more than one month or to more than one consignee.

RULE 242: A Car.

Unless otherwise specified in the contract, a car of cottonseed meal or pellets shall be a minimum of 80 tons.

RULE 243: A Truckload.

Unless otherwise specified in the contract, a truckload of cottonseed meal shall be 25 tons; a truckload of cottonseed hulls shall be 23 tons. Processing plants will comply with state and federal laws not to exceed maximum weights.

Article 2. Grade and Quality

A. COTTONSEED MEAL

RULE 260: Cottonseed Meal.

Cottonseed meal is a product of the cottonseed only, composed principally of the kernel, with such portions of the fiber, hull, and oil as may be left in the course of manufacture. It shall be graded and classed according to the following Rules.

RULE 261: Cottonseed Meal, Prime Quality.

Cottonseed meal, prime quality must be finely ground not necessarily bolted, must not have a sour or musty or burnt odor must be free from excess of lint, and shall contain not less than 36 per cent of protein or 5.76 per cent of nitrogen It shall be designated and sold according to its protein or its nitrogen content. Cottonseed meal with 36 per cent of protein or 5.76 per cent of nitrogen shall be termed "36 per cent protein cottonseed meal, prime quality", or "5.76 per cent nitrogen cottonseed meal prime quality", and higher grades appropriately designated to reflect the guaranteed analysis.

RULE 262: Solvent Extracted Cottonseed Meal, Prime Quality.

Solvent extracted cottonseed meal, prime quality, shall be meal manufactured by the solvent extraction process, shall be so designated at the time of sale and so tagged. It shall meet the quality specifications provided in Rule 261.

RULE 263: Low Gossypol Cottonseed Meal.

Low Gossypol cottonseed meal shall mean cottonseed meal that contains not more than 0.04 per cent free gossypol. It shall be designated at the time of sale, so tagged, and shall meet the quality specifications contained in Rule 261.

RULE 264: Cottonseed Meal, Off Quality.

Cottonseed meal that has a sour or musty or burnt odor, contains more than 5% hard lumps or has insect infestation shall be graded cottonseed meal, off quality.

B. SIZED COTTONSEED MEAL

Rule 265: Conditioning Agents.

Any of the above meal products (listed in Rules 260 to 264) may contain a non-nutritive, inert, non-toxic conditioning agent to reduce caking and improve flow ability, in an amount not to exceed that necessary to accomplish its intended effect and in no case to exceed 0.5%. The name of the conditioning agent must be shown as an added ingredient.

RULE 266: Pelleted Cottonseed Meal, Prime Quality.

. . . . Percent protein cottonseed meal pellets, prime quality, shall be sized and pelleted as stated in contract. It shall not contain in excess of 5 per cent loose cottonseed meal unless specifically stated in contract.

C. WHOLE PRESSED COTTONSEED

RULE 267: Whole Pressed Cottonseed.

Whole pressed cottonseed is the product that results from subjecting whole undecorticated cottonseed to the expeller, extruder, or screw press process for extraction of the oil. It includes the entire cottonseed less the oil extracted and the linters removed.

RULE 268: Whole Pressed Cottonseed, Prime Quality.

Whole pressed cottonseed, prime quality, must be produced from sound cottonseed, shall be firm in texture, must not have a sour or musty or burnt odor, and shall contain not less than 22 per cent of crude protein. It shall be sold according to its protein content.

Whole pressed cottonseed with 22 per cent of crude protein shall be termed "22 per cent whole pressed cottonseed, prime quality", and higher grades appropriately designated to reflect the guaranteed analysis.

D. COTTONSEED HULLS

RULE 280: Prime Cottonseed Hulls.

Prime cottonseed hulls shall be sound, not musty, and shall contain no more than 5% foreign substances and trash, and shall have no lint taken off except through the linters in the usual oil milling of cottonseed. Cotton burrs and stems, even though reground, also hull pepper, bran and loose lint reclaimed from a lint beater, shall be considered foreign substances, if added to cottonseed hulls.

RULE 281: Off Quality Cottonseed Hulls.

Cottonseed hulls that do not meet the standard set forth in Rule 280, or that have been made from off grade, heated, bolly or trashy cottonseed, or that have heated after being made, or are otherwise damaged, or contain products not associated with cottonseed, shall be graded off quality cottonseed hulls.

E. SIZED COTTONSEED HULLS

RULE 282: Cottonseed Hull Pellets, Prime Quality.

Cottonseed hulls that meet the specifications of Rule 280 shall be sized and pelleted as stated in the contract. Pelleted shipments may contain no more than 5% loose cottonseed hulls unless specifically stated in contract.

Article 3. Adjustments and Variations

RULE 283: Quantity Variations.

On contracts for either bulk or sacked cottonseed meal or cottonseed hulls, a variation of 5 per cent above or below contract quantity shall constitute a good delivery as to weight; provided that 5 per cent shall not exceed 2-1/2 tons.

Settlement for overweight or underweight shall be made in accordance with Rule 41.

RULE 284: Meal Settlements.

Sec. 1. No claim for deficiency in protein or combined protein and fat shall be made by the buyer unless such deficiency shall exceed 1/2 unit of protein, or 1/2 unit of combined protein and fat, if sold that way. If a contract carries a separate fat guarantee, no claim for fat deficiency shall be made unless the deficiency exceeds two-tenths of one per cent.

Sec. 2. Cottonseed meal not coming up in analysis to contract grade, shall be a good delivery if within 1-1/4 units of the protein, or 1-1/4 units of combined protein and fat, if sold that way, specified in the contract. Settlement prices shall be reduced in such proportion as the deficiency bears to the guarantee. If a contract carries a separate fat guarantee, the product shall be a good delivery, with respect to fat content if within five-tenths of one per cent of the fat specified in the contract. Settlement price shall be reduced by three-tenths of one per cent of the contract price for each one-tenth of one per cent of fat deficiency.

Sec. 3. Reductions in price made according to Section 2 of this Rule shall be based on the F.O.B. contract price.

Sec. 4. If a product is sold on sample, the permissible variation in analysis and in other quality factors shall be in accordance with this Rule and Rule 285.

Sec. 5. If a product is sold on a nitrogen or ammonia basis, the permissible variation shall be determined from the equivalent protein content obtained from the conversion table in Chapter VII of these Rules.

RULE 285: Variation In Value.

Where all or any portion of a shipment of a product equals 95 per cent or more of contract value, on the basis of quality, buyer shall accept delivery at an allowance to be agreed upon or fixed by arbitration. If the value of a product does not equal 95 per cent or more of contract value, the buyer may reject. Value under this Rule, shall be determined on the basis of contract price.

The variation permitted in this Rule is exclusive of that permitted under Rule 284 and a product may be rejected under that Rule even though it equals 95 per cent or more of contract value.

Article 4. Packages

RULE 286: Types of Packages.

Products may be sold either in bulk or sacked, as specified in the contract. Sacked products shall be tagged as such and each sack shall show the product description, the net weight, and the name and address of the manufacturer.

Article 5. Performance of Contract

RULE 287: Shipping Instructions.

Sec. 1. Specified or Scattered Shipments. In the case of contracts providing for delivery on a basis other than quick, immediate or prompt, either buyer or seller may, at the time the contract is made or at least five (5) days prior to the beginning of the contract delivery period, furnish the other party with a shipping schedule. Unless such a schedule is rejected in writing by either contracting party at least two (2) days prior to first shipping date, it shall be considered part of the contract. If the contracting parties cannot agree on a schedule or if none is furnished by either party, it shall be understood that shipments will be made on a scattered basis as defined in Rule 28.

Sec. 2. Equipment Requirements and Complete Instructions. Where shipments are to be made on a scattered or specified basis, the buyer shall furnish the seller with equipment requirements at least five (5) days prior to scheduled shipments. If, at the time of loading, shipping instructions have not been furnished in accordance with the terms of the contract, the shipper may load either a box car or a hopper car. At least one day prior to scheduled shipment, buyer must furnish complete shipping instructions which shall permit seller to ship in an orderly manner and to complete shipment according to schedule and within the contract period.

Sec. 3. Other Shipments. When contracts call for quick or immediate shipment, buyer shall furnish shipping instructions within 24 hours of date of contract. When sold for prompt shipment, buyer shall furnish such instructions within 5 days of date of contract.

Sec. 4. Furnishing Tags. On all interstate shipments, the mill may apply tags (or, if in bulk) report tonnage to the State of destination and charge the tax to the buyer.

Sec. 5. Failure or Refusal to Furnish Instructions. Failure or refusal by the buyer to furnish shipping instructions, as required by this Rule shall give the seller the options, during any contract delivery period or any date after expiration thereof, (1) to load car or cars as scheduled and to place same on track, notifying buyer and railroad that all charges are for buyer's account; or (2) to treat as breached by the buyer all or any part of the contract for which such instructions have not been furnished. If seller elects the latter option, be must proceed as provided in Rules 50, 51, 52 and 53.

RULE 288: Shipment.

Sec. 1. One or More Months. When a shipping schedule has been established as provided in Rule 287, seller must begin shipment in accordance with such schedule and must complete shipments within the contract period(s), unless (1) seller has ordered and received railroad assurance of available car or cars; (2) railroad fails to furnish such cars on schedule; and (3) seller has notified buyer of the delay.

Sec. 2. Failure or Refusal to Ship. If seller fails or refuses to ship in accordance with Section I of this Rule or within such period or periods as may be specified in the contract, buyer shall have the option to treat as breached any part of the contract not shipped on schedule. If buyer elects to do so, he must proceed after failure of seller to ship on schedule as provided in Rules 50, 51, 52 and 53.

Sec. 3. Extension of Contract. Nothing in this Rule shall prevent buyer and seller from agreeing to extend a contract beyond its expiration date. The terms of such an extension shall be exchanged in writing after the original expiration date.

RULE 289: Shipper's Official Weights.

If the shipper, with his invoice, furnishes an official weight certificate signed by one of the parties described in Rule 66, the weight shown on that certificate shall govern settlement.

RULE 290: Rejection.

Sec. 1. If all or any portion of shipment of products is not equal to contract quality, within the tolerances permitted in Rules 284 and 285, the buyer may reject. If he does so, he must so advise the seller by facsimile or e-mail within 48 hours after arrival of shipment at destination.

In the case of shipments for export, buyer may reject within 5 days after delivery of product at port of export, provided the car is held without unloading during such period.

Sec. 2. If seller is notified of rejection, he shall have the privilege of replacement with a product of contract quality provided, within 48 hours of receipt of rejection notice, he informs buyer of his intention to do so. If a shipment is for export, seller may replace after expiration of the contract period. All replacements shall be for immediate shipment as defined in Rule 28.

Each replacement shall be made from the original point of shipment or from any point if shipper equalizes freight and transit privileges. Only one replacement is permitted.

Sec. 3. Whether or not seller exercises his privilege of replacement, he must, within 48 hours after receipt of rejection notice, repay to buyer all amounts paid out by the buyer on account of the rejected product. If seller declines to replace or make the refund herein required, buyer must, to preserve a claim, proceed as provided in Rules 50, 51, 52 and 53.

Sec. 4. If buyer unloads a shipment of a product which he claims to be of rejectable quality, thereby making it impossible for seller to obtain an official sample, settlement shall be made on the basis of shipper's analysis at point of origin.

Article 6. Weighing and Sampling

RULE 291: Methods of Sampling Products.

Sec. 1. Sacked Products. Two ounces or more from a sack of meal or 4 ounces or more from a sack of pellets shall be drawn so as to fairly represent the contents of the sack. At least 5 per cent of the number of sacks in each carload or truckload shall be sampled. In the case of pellets, samples shall be promptly ground into meal in an attrition mill. If the sampler does not have grinding facilities, he shall draw at least 4 pounds per car or 10 pounds per 100 tons of sized cake or pellets.

Unless a car or truck contains products of different kinds or grades, only one sample is required. If several shipments by car or truck are to be analyzed as one sample (i.e. export shipments), the sampler shall commingle equal proportional parts by weight from each car or truck. If 100 tons or more are involved, a commingled sample consisting of 4 ounces from each car or truck will be acceptable.

Sec. 2 (a) Bulk Meal. Bulk meal may be sampled with a standard 63" double tube, open handle grain probe. The probe shall have 10 openings and shall be without partitions.

The probe shall be inserted at an angle of about 10 degrees from the vertical with the slots closed. The slots shall be faced up when the probe is opened. While the slots remain open give the probe several twists or up and down motions so that all openings will be filled. Close slots and withdraw the probe, emptying the contents through the open end onto a sampling cloth or into a suitable container. The individual probes are composited and mixed as in Section 3.

a) Bulk meal in cars-At least 25 probes must be taken al uniformly separated sections of the car. b) Bulk meal in trucks-At least 8 probes must be taken as follows: (1) Four probes in center of truck equally spaced from end to end along center line of truck. (2) Two probes on opposite sides of the truck about two feet in from the front and sides of the truck. (3) Two probes on opposite sides of the truck about two feet from the rear and sides of the truck.

Sec. 2 (b) Bulk Meal. Bulk meal may be sampled with a Pneumatic Probe Sampler which is an electric powered unit having an air pump and collection tank with bottom release shutter, and a probe consisting of a series of sections of inner and outer tubes, which can be assembled to reach the bottom of a truck, box car or hopper car.

The bottom and outer tube is fitted with a steel, saw-tooth cutter blade for cutting through the meal. The outer tube is 2 inches in diameter and the inner tube, 11/4 inches in diameter. The chamber formed between the two tubes delivers the air to convey the sample upward and through a reinforced plastic tube into the cyclone collection tank. A filter collects any fines in the sample. Any pneumatic probe sampler equal or equivalent in performance to the "Probe-A-Va" (supplied by Corn States Hybrid Services, Des Moines, Iowa,) will be satisfactory.

Assemble sufficient sections of the probe of the pneumatic sampler to reach the bottom of the loaded car or truck. With the motor running, insert the probe into the top of the meal and thrust at a uniform rate with a rotation motion through the meal until the bottom is reached. Quickly withdraw the probe and insert at the next location.

A number of probes, sufficient to provide a minimum of 2 oz. of sample for each 1,000 lbs. of meal, shall be taken as follows: a) Bulk meal in boxcars and trucks, a minimum of five probes shall be taken in a roughly symmetrical pattern. One probe shall be in the center of the car or truck. The other probes shall be on lines on both sides about 2 feet from the wall at points from 2 to 4 feet back from the center posts towards both ends of the car or truck. b) Bulk meal in hopper cars, one probe shall be taken from each opening with a minimum of six probes for each car. The individual probes shall be composited and mixed as described in Section 3.

Sec 2. (c) Bulk Meal. Bulk meal may be sampled with an automatic mechanical sampler (AOCS Official Method Ba 1-38, revised 1958, Reapproved 1993).

The automatic sampler and auxiliary equipment shall be inspected for cleanliness and soundness and placed in operation before loading is begun.

The sampler shall cut a portion for the entire cross section of the meal stream at a point where the meal is free falling. Portions so taken shall be at frequent and regularly spaced intervals to obtain not less than four ounces of meal for each 1,000 pounds as loaded, and shall be deposited in a covered 10-gallon container through a closed, airtight chute from the mechanical sampler.

If desired, a sample divider may be installed in the chute between the automatic sampler and sample container, reducing the volume to be retained, returning the unused portion to the meal stream.

Note: For information pertaining to suppliers of sampling equipment, communicate with the Secretary of this Association.

Sec. 3. Handling Samples. A sample secured in accordance with Sections 1 and 2 of this Rule shall be thoroughly mixed and then reduced to 4 portions of about 1 pound each by means of a mechanical splitting device such as a Jones or Boerner divider, or its equivalent. Each portion shall be placed in an airtight container and each shall be identified as to car or truck number and date drawn. The inspector shall forward 1 portion to the buyer and 1 to the seller and shall retain 2 portions which may be called for in the event of a dispute.

RULE 292: Point of Origin Samples.

Sec. 1. If the seller so elects, he may, at his own expense, have a sample of meal drawn at point of origin by an official weigher and inspector. If the shipper follows the procedure set forth in Sec. 2 of this Rule, this sample shall be the official sample for settlement purposes.

Sec. 2. When shipment is made by rail, a properly identified portion of the sample shall, on the day the sample is drawn or on the first business day thereafter, be forwarded to the buyer by the official weigher and inspector. On truck shipments, a properly- identified portion of the sample shall be forwarded to the buyer via the truck driver.

Sec. 3. When furnishing shipping instructions, the buyer may direct that his portion of an origin sample be forwarded to an address other than the destination of the shipment. In that event, the official weigher and inspector shall, within the time limit provided in Sec. 2, forward buyer's portion of the sample in accordance with such instructions.

RULE 293: Weighing.

Sec. 1. Bulk Shipments. Unless the shipper, with his invoice, furnishes an official weight certificate, as described in Rule 289, bulk carload shipments of the products covered by this Chapter shall be weighed at destination in the manner prescribed in Rule 73. After unloading and before weighing, empty cars shall be thoroughly swept and cleaned.

If bulk shipments are delivered in trucks and seller guarantees weight at destination as provided in Rule 4, each truck shall be weighed as provided in Rule 73. The weight ticket for each truckload shall be so numbered or marked that the weigher can identify it.

Sec. 2. Sacked Products. Carload and truckload shipments of sacked products may be weighed on track or truck scales as provided in Section I of this Rule. If not so weighed, the weigher shall select at random 5 per cent of the number of bags in the car or truck. Such bags shall be weighed and the average weight thereof applied to all bags in the car or truck. The weight certificate shall show the total number of bags in the car or truck.

Article 7. Claims

RULE 295: Period For Filing Claims.

Sec. 1. Domestic Shipments. All claims on domestic shipments of products must be made within 45 days after arrival at first United States or Canadian destination.

Sec. 2. Export Shipments. All claims on shipments of products for export must be made within 30 days after arrival, at United States or Canadian destination, of last car or truck completing the contract for the month.

RULE 296: Basis For Claims.

All weight claims shall be supported by a weight certificate, as provided in Rule 70, showing weight of each car or truck and date of arrival at destination. The weight of the contract as defined in Rule 241 shall be the basis of a weight claim.

Claims for quality shall be based upon each carload or truckload except in the case of export shipments where such claims shall be based upon each 112-ton lot or fraction thereof.