in normal commercial channels and who, during any 12-month period between January 1, 1960, and the first day of the period for which he seeks payments under this Act, has not produced or sold ores or concentrates the recoverable content of which is more than 3,000 tons of lead and zinc combined, recoverable content being computed as 95 per centum of the lead content of the ores or concentrates and 85 per centum of the zinc content of the ores or concentrates: Provided, That the principal product or products of such producer is either lead or zinc or a combination of lead and zinc. The term "small domestic producer" does not include any firm which is a subsidiary of, or controlled by, a large producer.

(b) When the amount of stabilization payment during any calendar year totals $2,500,000, or

(c) December 31, 1969.

§ 101-15.104 Participation in the program. (a) Any small domestic producer desiring to participate in the program shall apply on GSA Form 1776 (see § 101-15.4901) to General Services Administration, Defense Materials Service, Washington, D.C. 20405. The application should state that the applicant has read the regulations in this Part 101-15 and accepts their terms and conditions. The Administrator may request such additional informa

tion as may be necessary and will issue to each applicant found by him to be qualified, a certificate of participation on GSA Form 1777 (see § 101.15.4902), authorizing the applicant to apply for stabilization payments under the regu lations in this Part 101-15 to the extent he is eligible and qualified to receive such payment. The issuance of such a certificate shall not entitle the applicant to any stabilization payments to which he would not otherwise be entitled under the terms and conditions of the Act and the regula tions in this Part 101-15.

(b) To obtain stabilization payments, a certified producer shall submit to GSA a request for payment on GSA Form 1778 (see § 101-15.4903). Subject to compliance with the regulations in this part, previously qualified partici pants will not be required to reapply.

(c) Notwithstanding the fact that all requirements of the regulations in this Part 101-15 may have been met, a small domestic producer shall not be entitled to any stabilization payments if funds are not available therefor under the program.

(d) Notwithstanding any other provisions of the regulations in this Part 101-15, no stabilization payments will be made to any participant in the Lead and Zinc Small Producer's Stabilization Act unless the participant recognizes and agrees to comply with all requirements imposed by or pursuant to the regulations of the General Services Administration (Subpart 101-6.2 of this chapter) issued under the provisions of Title VI of the Civil Rights Acts of 1964.

§ 101-15.105 Stabilization in the program.

Stabilization payments will be made to small domestic producers upon the following terms and conditions:

(a) Presentation of evidence satisfactory to the Administrator of the sale by such applicant of his production of newly mined ore, or concentrates pro duced therefrom, as provided for in the regulations in this Part 101-15.

(b) Payment shall be made only with respect to the lead or zinc metal content as determined by assay in accordance with paragraphs (c) and (d) of this section.

(c) When the producer sells ore to a processing plant, the assays for lead and zinc shown on the certified assay report issued by the processing plant shall be used. When the producer ships ore to his own processing plant, or ships ores to a toll processing plant and sells the concentrates therefrom, the assays shown on the certified assay report issued by the smelter or refinery purchasing the concentrates shall be used. Such assays shall be furnished without cost to GSA. Prior to the issuance of a certificate of participation to an applicant, the applicant shall agree that a representative of the Administrator may be present at the weighing, sampling, and assaying of the material upon which stabilization payments are claimed; that a representative portion of the sample shall be packaged, sealed, and identified as the Government's sample; that the Government's sample shall be set aside and held for the Government; and that the Government may have its sample assayed, in which event the Government's assays shall be accepted as establishing the metal content of the material sampled for the purpose of determining the amount of stabilization payments which the applicant may claim against the sales of such material. The cost of the Government's assay shall be for the Government's account.

(d) Lead or zinc metal content shall be calculated on the basis of the dry weights of the ores or concentrates sold multiplied by the percentages of contained lead or zinc metal shown in the assays issued in accordance with paragraph (c) of this section. No stabilization payments shall be made for zinc metal contained in a lead ore or concentrate, or for lead metal contained in a zinc ore or concentrate, unless both metals are sold. If, however, the processor is the same person as the producer, such payments will be made only if such ore or concentrate is to be primarily processed for the recovery of both metals.

(e) For lead, such payment shall be made, subject to the availability of funds therefor, on sales made at times when the market price for common lead at New York, N.Y., as determined

by the Administrator, is below 14% cents per pound, and such payments shall be 75 percent of the difference between 141⁄2 cents per pound and the average market price for the month in which the sales occurred as determined by the Administrator.

(f) For zinc, such payments shall be made, subject to the availability of funds therefor, on sales made at times when the market price for prime western zinc at East St. Louis, Ill., as determined by the Administrator, is below 142 cents per pound, and such payments shall be 55 percent of the difference between 141⁄2 cents per pound and the average market price for the month in which the sales occurred as determined by the Administrator.

(g) The Administrator's market price determinations shall be based upon trade publications and such other sources of market information as he deems relevant.

(h) Each small domestic producer shall submit one request for payment, on GSA Form 1778 (see § 101-15.4903), covering all sales for each month. Each such request should be submitted by the 15th day after the end of the month in which the sales covered by such request are made, except that requests with respect to sales made between January 1, 1966, and the last day of the month in which the participant receives his certification of participation are to be submitted by the 15th day of the following month. Requests shall be submitted to: General Services Administration, Region 3, Office of Regional Data and Financial Management, 3BCR, Accounting and Reports Division, Washington, D.C. 20407. Unless justifiable cause beyond the reasonable control of the applicant is shown, request for payment received after the applicable date will not be paid until the month following their receipt and in no event will payments be made on request received after March 31 of the year following the year of the sale. Late requests run the risk of the exhaustion of funds through the payment of timely requests.

(i) Except for applications for participation received during the first three quarters of 1965, an applicant

may be eligible for payments under the regulations in this Part 101-15 only with respect to sales in a quarter commencing after the date of the receipt of his application.

§ 101-15.106 Limitations on individual producers and properties.

(a) Stabilization payments otherwise authorized under the regulations in this Part 101-15 shall be subject to the following limitations and restrictions:

(1) No stabilization payments shall be made to any small domestic producer on sales, or further processing in lieu of sales, of newly mined ores or concentrates produced therefrom in any calendar year in excess of 1,200 tons of zinc and 1,200 tons of lead.

(2) No stabilization payments shall be made on any domestically produced material which is sold to or eligible for sale to the United States Government, or any agency thereof, pursuant to a contract made under the provisions of the Defense Production Act of 1950, 50 U.S.C. Appendix 2061-2166, as amended, or the Strategic and Critical Materials Stock Piling Act, 50 U.S.C. 9898h. The amounts of such material shall be applied to reduce the annual maximum quantities specified in paragraph (a)(1) of this section and the applicable quarterly limitations and quotas fixed by the Administrator pursuant to § 101-15.107.

(b) The Administrator may determine what constitutes a single operating unit producing ores. If more than one producer claims payment for sales from production of a single operating unit, the Administrator may determine the quantity of sales for each such producer to which the limitations set forth in the regulations in this Part 101-15 apply.

§ 101-15.107 General limitations.

(a) Notwithstanding any other provisions of the regulations in this Part 101-15, the maximum amounts of stabilization payments which may be made on account of sales of newly mined ores or concentrates produced therefrom shall not exceed the sum of $2,500,000 in any calendar year.

(b) For the purpose of achieving stabilization in the annual rates of production, the Administrator will fix limitations each quarter on the total amounts of lead and zinc on which stabilization payments will be made. The Administrator will assign quotas to individual producers within such quarterly limitations to the extent necessary and in a manner designed to assure equitable distribution of the benefits of the programs. The limitations and quotas so fixed and assigned will not be subject to adjustment except in the event of changes in market prices having such substantial impact upon amounts payable on sales during the quarter as the Administrator determines to require adjustments to avoid defeating the statutory pur poses of stabilizing production and making equitable distribution of benefits. The sum of the quarterly limitations or the sum of all producers' quarterly quotas for a calendar year may be less than the total eligible tonnage if funds are not available to cover the full eligible tonnage. Shortfalls in meeting quarterly quotas for any of the first three quarters may be made up by sales in excess of the individual producer's quota for the following quarter only. Shortfalls in the fourth quarter cannot be made up by sales in the first quarter of the following year. Sales made in any quarter in excess of the quota for that quarter may not be carried forward for payment during subsequent quarters.

§ 101-15.108 Reports and inspections.

(a) Applicants shall furnish the Administrator, from time to time, reports showing production and disposition of ores or concentrates, together with such other reports and information as the Administrator may require for the administration of the regulation in this Part 101-15. This reporting requirement has been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942 (5 U.S.C. 139), and requirements subsequently prescribed will be subject to such approval.

(b) Authorized representatives of the U.S. Government may enter the applicant's property at all reasonable times for inspection of the operations of the applicant. The applicant shall provide such authorized representatives with all reasonable means of access for such inspections.

§101-15.109 Access to books and records. Until 3 years after the termination of the program established under the regulations in this Part 101-15 authorzed representatives of the U.S. Government shall have access to and the right to examine any pertinent books, iocuments, papers, and records of any participant involving transactions reated to the program.

101-15.110 Modifications of benefits.

The regulations in this Part 101-15 nay be amended or revised by the Adninistrator from time to time whether r not such amendment or revision inreases or decreases any of the beneits provided for by the regulations in his Part 101-15 or affects the distriution of benefits among small domesic producers.

101-15.111 Criminal and civil penalties. As provided in 30 U.S.C. 689:

(a) Whoever, for the purpose of prouring a payment to which he is not ntitled under the Act or the regulaions in this Part 101-15 or for the urpose of assisting another to proure a payment to which the other is ot entitled under the Act or the reguitions in this Part 101-15 misrepreents any material fact, knowing the ame to be false, fictitious, or frauduent, shall be guilty of an offense gainst the United States and shall be ined not more than $5,000 or imprisned not more than 2 years, or both, nd shall thenceforth be entitled to no enefits under the Act or the regulaons in this Part 101-15.

(b) Whoever accepts a payment nder the Act or the regulations in his Part 101-15 to which, or any poron of which, he is not entitled, know

ing that he is not entitled, thereto or whoever, having accepted a payment under the Act or the regulations in this Part 101-15 to which, or any portion of which, he is not entitled, retains the same, knowing that he is not entitled thereto, shall be required, in a civil action instituted by the Attorney General, to refund treble the amount accepted or retained by him. The acceptance or retention of any payment as aforesaid shall also constitute an offense against the United States punishable by a fine of not more than $5,000 or imprisonment for not more than 2 years, or both, and any person who shall be convicted of such offense shall thenceforth be entitled to no benefits under the Act or the regulations in this Part 101-15.

Subparts 101-15.2-101-15.48 [Reserved]

Subpart 101-15.49-Forms

NOTE: The forms in §§ 101-15.4901, 10115.4902, 101-15.4903 are filed as part of the original document. Copies of these forms may be obtained from the General Services Administration, Defense Materials Service, Industry Materials Division, Washington, D.C. 20405.

§ 101-15.4900 Scope of subpart.

This subpart illustrates forms available for use in connection with the Lead and Zinc Stabilization Program prescribed in Part 101-15.

§ 101-15.4901 GSA Form 1776, Application for Participation in the Lead and Zinc Mining Stabilization Program.

§ 101-15.4902 GSA Form 1777, Certificate of Participation in the Lead and Zinc Mining Stabilization Program.

§ 101-15.4903 GSA Form 1778, Request for Payment in the Lead and Zinc Mining Stabilization Program.