right to modify or revise any claims theretofore filed which are affected by such decision or interpretation and which accrued within the period of ninety (90) days immediately preceding the first of the month following date when the decision or interpretation was announced. If Defense Supplies Corporation finds justification for reopening the claim it shall so notify the applicant and the latter may thereupon submit a new claim which shall be processed in the same manner as though submitted within the required time.

$ 7005.5 Amount of compensatory adjustments. The claim with respect to any shipment shall be in the amount per barrel specified in Schedule A attached hereto subject, however, to changes in rail freight rates as provided in said Schedule A. The number of barrels upon which freight is paid shall be the quantity with respect to which claim may be made on any shipment.

NOTE: For Schedule A, see 9 F.R. 1949. [Preceding part, in small type, superseded by following part during period covered by this Supplement]

Sec.

7005.1

7005.2

7005.3

Definitions.

Persons eligible to file claims.
Filing claims for compensation.

7005.4 Inspection and payment of claims. 7005.5 Amount of compensatory adjustments.

AUTHORITY: §§ 7005.1 to 7005.5, inclusive, issued under sec. 5d, 52 Stat. 212, 54 Stat. 573; 15 U.S.C. 606b. Defense Supplies Corporation Charter, 13 CFR, Cum. Supp., Appendix.

SOURCE: §§ 7005.1 to 7005.5, inclusive, contained in Regulation 5, Revised, Defense Supplies Corporation, Apr. 20, 1944, effective Dec. 4, 1943, 9 F.R. 5380.

§7005.1 Definitions. When used in §§ 7005.1 to 7005.5, inclusive, the following terms shall have the following meanings:

(a) "District Two" means the States of Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin.

(b) "District Three" means the States of Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas.

(c) "District Four" means the States of Colorado, Idaho, Montana, Utah and Wyoming.

(d) "Crude" means crude petroleum. (e) "Claim" means a claim under §§ 7005.1 to 7005.5, inclusive, computed in accordance with the provisions hereof.

(f) "Person" means an individual, corporation, partnership, association or legal

successor or representative of any of the foregoing, but shall not include the United States or any of its political subdivisions or any agency thereof, or any other Government or any of its political subdivisions or any agency thereof.

(g) "Applicant" means a person who files a claim for compensation pursuant to $ 7005.1 to 7005.5, inclusive.

(h) "Barrel" means a quantity equal to 42 U. S. gallons of 231 cubic inches.

(i) "Crude Producing Area No. 10" means the Counties of Bastrop, Fayette, Colorado, Guadalupe, Caldwell, Gonzales, Lavaca, Wharton, Karnes, DeWitt, Jackson, Matagorda, Goliad, Victoria, Frio, LaSalle, McMullen, Live Oak, Bee, Refugio, Aransas, Calhoun, Webb, Duval, Jim Wells, San Patricio, Nueces, Zapata, Jim Hogg, Brooks and Starr in the State of Texas.

(j) "Crude Producing Area No. 11" means the Counties of Trinity, Madison, Brazos, Grimes, Walker, San Jacinto, Polk, Tyler, Jasper, Newton, Montgomery, Hardin, Washington, Austin, Waller, Liberty, Harris, Galveston, Orange, Fort Bend, Chambers, Jefferson and Brazoria in the State of Texas, and the Parishes of Beauregard, Allen, Evangeline, St. Landrey, Pointe Coupee, West Feliciana, Calcasieu, Jefferson Davis, Acadia, Lafayette, St. Martin, Cameron, Vermillion, Iberia and St. Mary in the State of Louisiana.

(k) "Crude Producing Area No. 12" means the Parishes of East Feliciana, St. Helena, Tangipahoa, Washington, West Baton Rouge, East Baton Rouge, Livingston, St. Tammany, Iberville, Ascension, St. James, St. John the Baptist, Orleans, Assumption, St. Charles, St. Bernard, St. Martin, Terrebonne, LaFourche, Jefferson and Plaquemines in the State of Louisiana.

§7005.2 Persons elegible to file claims. Any person who receives crude shipped to such person from any point of origin in District Two, District Three or District Four, specified in Schedules A, B, C, or D, to any point of destination in District Two, specified in such schedules, and who refines such crude at a refinery operated by such person, may file a claim for extra costs covered by §§ 7005.1 to 7005.5, inclusive, Provided:

(a) Such shipment is made pursuant to a shipping schedule approved by the Petroleum Administration for War, or is otherwise, specifically approved by the Petroleum Administration for War and

the volume of crude for which a claim is made does not exceed the quantity specified in the schedule or other approval of the Petroleum Administration for War;

(b) Such shipment was not normally made by such person between the same two points shown on such schedules by the same methods of transportation during the twelve months period immediately preceding September 4, 1941; and

(c) If made under Schedule A:

(1) Such shipment is made solely by tank car directly from such point of origin to such point of destination shown on such schedule;

(2) Such shipment is commenced from such point of origin shown on such schedule on or after December 4, 1943;

(3) The freight on such shipment is paid direct to the railroad carrier by such person; or

(d) If made under Schedule B:

(1) Such shipment is made through the Stanolind Pipe Line Company's pipe line to Cushing, Oklahoma, and is made solely by tank car directly from Cushing, Oklahoma, to point of destination shown on such schedule;

(2) Such shipment is commenced from Cushing, Oklahoma, on or after April 10, 1944;

(3) The freight on such shipment is paid direct to the railroad carrier by such person; or

(e) If made under Schedule C:

(1) Such shipment is made solely by tank car directly from such point of origin to such point of destination shown on such schedule;

(2) Such shipment is commenced from such point of origin shown on such schedule on or after April 10, 1944;

(3) The freight on such shipment is paid direct to the railroad carrier by such person; or

(f) If made under Schedule D:

(1) Except where pipe lines are used to transport crude to barge loading points in District Three, such shipment is made solely by barge from such point of origin to such point of destination shown on such schedule;

(2) Such shipment is commenced from such point of origin shown on such schedule on or after April 10, 1944;

(3) Except where crude is transported in such person's barges, the freight on

such shipment is paid direct to the barge carrier by such person.

§7005.3 Filing claims for compensation (a) Place of filing. Claims shall be filed with Price, Waterhouse & Co., 33 North LaSalle Street, Chicago 2, Illinois.

(b) Time of filing. No claim may be made with respect to any shipment until such shipment is received at destination. Claims with respect to shipments received at destination during any calendar month shall be accumulated until the end of such month and shall be filed on or before the last day of the second calendar month following the month in which the shipments covered by such claims are received at destination.

(c) Form of claim. A separate claim shall be filed for each calendar month in which shall be included all shipments received at destination during such month. All claims shall be filed in quadruplicate on forms approved by Defense Supplies Corporation and shall be accompanied by:

(1) The bill of lading covering each shipment included therein showing the applicant as the consignee of such shipment, except as otherwise provided in paragraph (c) (4);

(2) Receipted freight bill or such other evidence as may be satisfactory to Defense Supplies Corporation showing that the applicant paid to the carrier the railroad or barge freight on such shipment, except as otherwise provided in paragraph (c) (4);

(3) Copy of Petroleum Administration for War shipping schedule or other approval;

(4) Copy of inspection certificate issued by a qualified disinterested person acceptable to Defense Supplies Corporation showing the number of barrels loaded at point of origin, the number of barrels unloaded at the applicant's refinery, the gravity of the crude, and the identifying names and numbers of barges; in those cases where crude is transported in applicant's barges;

(5) Evidence satisfactory to Defense Supplies Corporation as to the field of origin of the crude shipped; and

(6) Supporting documents provided for in the form of claim except that information required in a claim need not be restated after such information has once been included in a previous claim filed pursuant to §§ 7005.1 to 7005.5 inclusive,

provided reference is made to such previous claim.

§ 7005.4 Inspection and payment of claims. (a) If the Defense Supplies Corporation determines that a valid claim has been filed within the provisions of §§ 7005.1 to 7005.5, inclusive, then Defense Supplies Corporation will pay to the applicant the amount thereof. Defense Supplies Corporation may at any time make or cause to be made an examination or audit of any books, records and other supporting data as it may deem necessary to verify further the validity and correctness of any claim filed hereunder. If any claim which has theretofore been paid is found incorrect upon such examination or audit, then the amount of such payment shall be due and payable to Defense Supplies Corporation and shall be returned to it upon demand and without limitation of any other rights accruing to Defense Supplies Corporation. No further advances or payments shall be made to such applicant until such deficiency has been returned.

(b) Should any claim be rejected in whole or in part or should any applicant desire an interpretation of §§ 7005.1 to 7005.5, inclusive, the applicant may request Defense Supplies Corporation to reconsider its action or issue an interpretation. If the request is in connection with a rejected claim, it must be filed within thirty (30) days after such claim is rejected. Such request shall be

addressed to Defense Supplies Corporation, 811 Vermont Avenue NW., Washington 25, D. C., and shall state clearly and concisely the questions involved and the applicant's views thereon. Upon the announcement of any decision or interpretation issued hereunder any applicant may within thirty (30) days apply to Defense Supplies Corporation for the right to modify or revise any claims theretofore filed which are affected by such decision or interpretation and which accrued within the period of ninety (90) days immediately preceding the first of the month following date when the decision or interpretation was announced. If Defense Supplies Corporation finds justification for reopening the claim it shall so notify the applicant and the latter may thereupon submit a new claim which shall be processed in the same manner as though submitted within the required time.

§ 7005.5 Amount of compensatory adjustments. The claim with respect to any shipment shall be in the amount per barrel specified in the schedules, subject, however, to changes in rates or adjustments as provided therein. The number of barrels upon which freight is paid or actually transported to destination, if no freight is paid, shall be the quantity with respect to which claim may be made on any shipment.

NOTE: For Schedules A, B, C and D, see 9 F.R. 5381-5383.

and industry must have organizations adequate, both quantitatively and qualitatively, to handle termination settlements, and the Government in particular must establish means for coordinating the activities of its various agency organizations.

(b) Within the Government the principle must obtain that each settlement organization should freely utilize the services and facilities of other settlement organizations better situated to do particular jobs. Each organization should also have access to information obtained by other organizations in their settlement activities. Maximum and most effective utilization of the Government's settlement organizations as a whole requires a high degree of cooperation among the several agencies and of coordination within each agency.

(c) There must be constant surveillance by each agency of the operations of its own organization. There must likewise be a continuing effort, through a central body, to maintain uniform policies and procedures of general application and to promote the joint utilization of personnel, information, and experience of all agency organizations. Only in these ways can satisfactory results be assured.

§ 8000.2 Procuring agency organization (a) Control organizations. Each procuring agency should establish a supervisory organization within the agency, or should designate for the purpose responsible officials of the agency, to be charged in either case with the responsibility for seeing that the policies established for all procuring agencies are carried out. The functions of such organization or officials should be to supervise the termination activities within the agency to the extent necessary to insure prompt and equitable settlement of terminated contracts, to maintain close contact with the Joint Contract Termination Board, to submit to the Board problems of the agency which involve policies of major importance to the Government or as to which uniformity of action on the part of the several procuring agencies is desirable, and to implement the regulations of the Board by the issuance of detailed regulations governing the termination of contracts and their settlement within the agency.

(b) Collection of information. It should be the responsibility of the designated organization or officials to main

tain current information as to the termination settlements in process within the agency, the personnel available for any work incident to such settlements, and the progress made from time to time in terms of settlements effected. Information as to available personnel should be maintained in such manner as to facilitate the temporary assignment of technical personnel to related work in connection with other settlements within the agency or by other agencies, and such information should be made available to other agencies upon request as needs arise.

§ 8000.3 Organization at the negotiating_level—(a) Contracting officers and technical staffs. In all contract relations the Government must act through an agent, usually called the contracting officer, who signs settlement agreements and other documents on behalf of the Government. In Government corporations which operate through officers and agents responsible to boards of directors, the formalities differ somewhat. In both types of organization, however, there is an individual or a group of individuals who must have the primary responsibility for the prompt and equitable settlement of terminated contracts. Such responsible officials must have assistance in all cases from technical staffs, consisting ordinarily of legal, accounting, property disposal, and other specialists. It is the responsibility of each procuring agency to see that adequate technical assistance of this kind is afforded to the responsible officials and is utilized by them.

(b) Joint utilization of technical staffs. In a number of instances it will be feasible to assign technical personnel directly to the plants or companies having major termination problems, to work with such plants or companies on a fulltime basis and to report to responsible settlement officers. All agencies should utilize such assigned personnel to the greatest practicable extent to avoid duplication. There should be similar utilization of personnel not regularly assigned on a full-time basis but already engaged in making other settlements with the same plant or company, where common elements of claims or other factors offer advantages.

(c) Use of procurement organizations. Full use of the personnel of procurement organizations, including that of procurement offices in the field,