Article 1: Definitions of Words and Terms

RULE 110: A Contract.

Unless otherwise specified, contracts for cottonseed shall designate the number of tons, except as provided in Rule 135, each carload or truckload lot of cottonseed shall be treated as a separate contract for purposes of quality determination.

RULE 111: A Carload Lot Of Cottonseed.

Except in cases where the tariff of the railroad, over which a shipment moves, specifies a higher minimum weight, a carload lot of cottonseed, for contract purposes, shall be sixty (60) tons.

RULE 112. Glandless Cottonseed.

Glandless cottonseed is the seed of cotton which has been selected through plant breeding to eliminate, or reduce to the extent practicable, seed pigment glands. There shall be three classes which shall be determined by total gossypol content of moisture and foreign matter-free undelinted seed:

Class A shall contain not more than 400 parts per million of total gossypol.* Class AA shall contain not more than 100 parts per million of total gossypol.* Class AAA shall contain not more than 10 parts per million of total gossypol.*

*Gossypol as determined by the AOCS official method, nuclear magnetic resonance, high performance liquid chromatography, or thin layer chromatography. Method of analysis must be specified in the contract.

RULE 113. Feed Grade Cottonseed.

 Feed grade cottonseed is that intended for feed to livestock. It shall be traded in accordance with the Rules in Chapter XIII.

Article 2. Grade and Quality

RULE 115: Basis Grade Cottonseed.

Unless specified to the contrary, all offers and acceptances of cottonseed shall be understood to apply to basis grade cottonseed, as defined in Rule 116, with premiums or discounts to be determined in accordance with that rule. Off quality cottonseed and below grade cottonseed may be rejected.

On lots of 10 tons or more, the grade shall be determined on the basis of samples drawn and analyzed in accordance with Rules 135 and 400.

On lots of less than 10 tons, the grade shall be the average grade for the community or district where the cottonseed are grown, determined by the analysis of samples of current deliveries or from the latest grade report of the United States Department of Agriculture.

RULE 116: Grades of Cottonseed.

Sec. 1. Determination of Grade. The grade of cottonseed shall be determined from the analysis of samples, and it shall be the result stated in the nearest whole or half numbers obtained by multiplying a quantity index by a quality index and dividing the result by 100. The quantity index and the quality index shall be determined as hereinafter provided.

(a) The basis grade of cottonseed shall be grade 100. (b) High grades of cottonseed shall be those grades above 100. (c) Low grades of cottonseed shall be those grades below 100. (d) The grade for American Pima cottonseed shall be followed by the designation "American Pima" or the symbol "AP "

Sec. 2. Determination of Quantity Index. (a) For upland cottonseed, the quantity index shall equal 4 times the percentage of oil, plus 6 times the percentage of ammonia, plus 5. (b) For American Pima cottonseed, the quantity index shall equal 4 times the percentage of oil, plus 6 times the percentage of ammonia, minus 10.

Sec. 3. Determination of Quality Index. The quality index of cottonseed shall be an index of purity and soundness, and shall be determined as follows:

(a) Prime Quality Cottonseed. Cottonseed that by analysis contains not more than 1.0 percent of foreign matter, not more than 12.0 percent of moisture, and not more than 1.8 percent of free fatty acids in the oil in the seed, shall be known as prime quality cottonseed and shall have a quality index of 100.

(b) Below Prime Quality Cottonseed. The quality index of cottonseed that, by analysis, contain foreign matter, moisture, or free fatty acids in the oil in the seed, in excess of the percentage prescribed in Sec. 3(a) of this Rule shall be found by reducing the quality index of prime quality cottonseed as follows:

(1) Four-tenths of a unit for each 0.1 percent of free fatty acids in the oil in the seed in excess of 1.8 percent.

(2) One-tenth of a unit for each 0.1 percent of foreign matter in excess of 1.0 percent.

(3) One-tenth of a unit for each 0.1 percent of moisture in excess of 12.0 percent.

(c) Off Quality Cottonseed. Cottonseed that has been treated by either mechanical or chemical process other than the usual cleaning, drying, and ginning (except sterilization required by the United States Department of Agriculture for quarantine purposes) or that are fermented or hot, or that upon analysis are found to contain 12.5 percent or more of free fatty acids in the oil in the seed, or more than 10.0 percent of foreign matter, or more than 20.0 percent of moisture, or more than 25.0 percent of moisture and foreign matter combined, shall be designated as "off quality cottonseed". (d) Below Grade Cottonseed. Cottonseed the grade of which when calculated according to Sec. 1 of this Rule is below grade 40.0 shall be designated as "below grade cottonseed", and a numerical grade shall not be indicated.

EXAMPLES OF GRADE CALCULATIONS

A. PRIME QUALITY UPLAND COTTONSEED - Normal Oil and Ammonia Content

B. PRIME QUALITY UPLAND COTTONSEED - Low Oil - Normal Ammonia

C. BELOW PRIME QUALITY UPLAND COTTONSEED

D. OFF QUALITY UPLAND COTTONSEED

E. BELOW GRADE UPLAND COTTONSEED

QUALITY INDEX REDUCTIONS ON ACCOUNT OF F.F.A.

Article 3. Adjustments and Variations

RULE 120: Clean Cottonseed Weight At Destination.

Unless otherwise specified, all purchases of cottonseed shall be settled for on the basis of clean cottonseed weight at destination. If cottonseed delivered on a basis grade contract contain foreign matter in excess of 1 percent, the clean cottonseed weight shall be determined by deducting from the weight of the shipment the weight of all foreign matter in excess of 1 percent. This deduction for foreign matter shall be in addition to the reduction in the Quality Index because of foreign matter in excess of 1 percent, as provided in Rule 116.

Cost of transportation on the weight of foreign matter in excess of 1 percent shall be paid by the seller by deduction in the settlement.

RULE 121: Quantity Variations.

On contracts for cottonseed, a variation of 5 percent above or below contract quantity shall constitute a good delivery, provided 1 percent does not exceed 5 tons.

Settlement for underweights or overweights shall be made in accordance with Rule 41.

Article 4. Performance of Contract

RULE 125: Default In Acceptance Or Delivery.

 If seller delivers cottonseed in the quantity and of the quality contracted for and buyer fails to accept any portion of such cottonseed, the seller may treat such portion of the contract as breached by buyer and, if he elects to do so, he shall proceed in accordance with Rules 50, 51, 52 and 53. Such action by the seller shall not affect the balance of a contract which shall remain in full force and effect.

If seller fails to deliver cottonseed contracted for, the buyer may treat the contract as breached by the seller and, if he elects to do so, he shall proceed in accordance with Rules 50, 51, 52 and 53.

Article 5. Claims

RULE 130: Period For Filing Claims.

All claims on account of shipments of cottonseed must be made by the buyer within ten days after arrival of the shipment at destination and, by the seller, within ten days after receipt of statement from the buyer.

Article 6. Sampling

RULE 135: Sampling Cottonseed.

Sec. 1. Who Shall Sample. (a) When cottonseed are purchased on United States Standard Grades, sampling shall be performed only by persons licensed by and in accordance with methods approved by the United States Department of Agriculture.

(b) When cottonseed are purchased under Rules 115, 116, and F-4, sampling shall be performed only by persons licensed or designated by a State or Federal agency, by an official weigher and inspector of this Association, or by a qualified, disinterested person who shall, upon request, make an affidavit fully covering his performance of the sampling.

(c) Sampling Methods. The following methods for drawing, cleaning, preparing, sealing, and certificating official samples of cottonseed are approved:

Sec. 2. Equipment. (a) General. Each licensed cottonseed sampler shall have available: suitable sampling tools or triers; sufficient containers of 2-1/2 bushel capacity with close-fitting covers, or large polyethylene bags of sufficient size to hold at least 60 pounds of seed and be securely closed, to meet the needs of individual shippers; sufficient friction-top cans of 155 cubic inch capacity, or sufficient bags 7-1/2 x 3 x 14-1/2 inches, 1/90 Asphalt Laminated, or 1/60 duraloid, sewn, open-mouthed, bottoms dipped in wax or polyethylene bags approximately 9 x 14-1/2 inches, with a minimum thickness of 2.5 mils, for Official and Duplicate samples; scales graduated in 1/2 ounces for weighing foreign matter, and scales graduated in 1/2 pounds for weighing gross samples and a mechanical mixer, or a shaker-cleaner provided with a bypass sample-reducing device; and a thermometer suitable for determining the temperature of cottonseed.

(b) Triers. Triers of the cork-screw type made of strip steel 1/2 inch wide by 5/32 inch thick, bent to form an open cylinder 3 inches in diameter, the pitch of the twist being approximately 2 inches and the screw portion being approximately 42 inches in length, are approved.

(c) Pneumatic Probe Sampler. Unit powered with 7/8 h.p., Class II, Group G motor installed with specially designed cyclone air pump and a cyclone collector tank having bottom release shutter, 48 inches long by 11-3/4 inches inside diameter; rolled aluminum probe tube 8 feet in length by 2-1/2 inches inside diameter; bottom of probe tube to be equipped with light weight steel saw-tooth cutter blade and at top with swivel type 90 ell (elbow) so that section turns freely the full 360 around top of probe tube; sufficient length (15 to 30 feet) of 2-1/2 inch inside diameter flexible, wire-reinforced, neoprene tubing. Cyclone collector tank intake nozzle to have 2-1/2 inch inside diameter.

(d) Receptacles. Receptacles for taking samples of cottonseed during unloading of a truck or car made by attaching an 8 x 5 x 5 1/2 inch elevator bucket to a pole long enough to enable the sampler to place the bucket throughout the falling stream of cottonseed, are approved.

(e) Shaker-cleaner. Shaker-cleaner with screens not less than 3 x 7 feet and provided with not less than three adjustable bypasses for obtaining a cross section official sample are approved. Perforations in the top screen shall be 1/2 to 5/8-inch diameter, perforations in the middle screen shall be 1/8-inch diameter, and the third or bottom deck shall be of sheet metal without perforations or transverse seams. The upper end of the shaker-cleaner should be equipped with a hopper-feeder for even distribution of the gross sample on the upper screen.

Sec. 3. Methods. (a) Carlots Before Unloading. For this purpose an approved sampling tool shall be inserted at different points in each end and in the middle of the carload of seed; it is recommended that not less than 5 probes full be drawn. When a car is so filled that an approved trier or pneumatic probe cannot be used, the sampler shall divide the car into four sections. In the center of each section he shall dig a hole at least 30 inches deep. From the bottom and sides of each hole a portion of not less than six pounds of seed shall be taken. The portions drawn at each hole shall be placed in a strong, moisture-proof bag. The several portions shall be placed in one of the metal or plastic containers specified in Sec. 2 (a) above.

(b) Carlots During Unloading. For this purpose the sampler shall use the receptacle specified in Sec. 2(c) which he shall place in the center of the unloading chute at regular intervals, depending upon the rate of unloading, so that not less than 25 pounds of seed will be taken.

(c) Pneumatic Probe Sampler. When using the pneumatic probe sampler, the probe shall be inserted vertically into the loads, using a slight up and down motion of the tube as it goes downward through the loads. The probe should not be forced into the cottonseed or clogging of the tube to the collector tank may result.

(d) Truck or Wagon Lots. (1) Trucks or wagon lots of cottonseed may be sampled before unloading with an approved trier or pneumatic probe. A minimum of two insertions shall be made on loads containing 10 or more tons. At least one insertion shall be made on loads containing less than 10 tons. Regardless of the size of the load, at least one probe shall reach the bottom of the load. (2) The sampler shall use an approved receptacle specified in Sec. 2(d) to take segments of the gross sample if the seed are sampled while being unloaded by dumping or power shovel. Not less than 8 pounds of seed must be taken from each load. (3) Seed unloaded by air (suction pipe) may be sampled with a fork. Segments of the gross sample should be taken throughout the load with one or two segments taken from the bottom, depending on the size of the load. Not less than 8 pounds of seed must be taken from each load.

(e) Sample Designations. The portions drawn from trucks, wagons, railroad cars, or other conveyances shall be known as the "original" or "gross" sample. The gross sample shall represent seed from only one shipper. The portion prepared for forwarding to licensed cottonseed chemists shall be known as the "Official Sample". The portion retained by the sampler to be substituted for the official sample should it be lost or destroyed is known as the "Duplicate" sample. Both the official and duplicate samples shall be representative of the entire gross sample.

(f) Hot Seed. When a sampler believes a shipment of cottonseed to be hot at the time of sampling, he shall determine the actual temperature with a thermometer placed for not less than 5 minutes as near as possible to the center of the load, at each end of a car or near the center of the load in a truck. The temperature found shall be recorded on the certificate hereinafter described.

Sec. 4. Handling Samples. (a) Each portion of the original or gross sample as drawn shall be placed immediately in a properly identified container specified in Sec. 2(a) and the container promptly closed. As soon as the full original or gross sample shall have been drawn it shall be carefully weighed. In no case shall an original or gross sample be struck off or reduced in size, but the entire sample as drawn shall be weighed. After being weighed, the original or gross sample shall be passed over an approved shaker-cleaner, after which the foreign matter, as specified in Sec. 4(b), shall be carefully gathered and weighed. The total weight of foreign matter must be recorded. The sampler may also record the weight of the different fractions of foreign matter.

(b) Foreign Matter. Foreign matter in cottonseed shall include the following: Dirt, sand, stones or gravel, hulls, leaves, sticks, grabbots, flues, lint cotton and all other material foreign to cottonseed. Should grabbots, flues or lint cotton having enmeshed seed be removed when the gross sample is passed over the shaker-cleaner, such material should be torn into small pieces, by hand, and thrown on the upper screen of the shaker-cleaner near the hopper. All material reentering the boll tray shall be weighed as foreign matter. (This procedure for recovering enmeshed seed shall be done only one time.) The material should not be rubbed against the upper screen, by hand or otherwise, to recover enmeshed seed.

(c) Reducing Sample. When the shaker-cleaner is not equipped with a sample-reducing device, the entire cleaned sample shall be mixed by means of mechanical mixer that is so designed as to thoroughly mix the sample. After mixing, the seed is dumped and the official and duplicate samples taken without further mixing or stirring. When a shaker-cleaner with automatic sampling device is used, the reducing device shall be adjusted so that not less than 4 pounds of seed will be collected. The reducing device must be set so that the reduced sample container does not completely fill. Should the container fill before the entire gross sample has passed, a portion of the gross sample will not be sampled. Seed in the reduced sample container should be divided in such a manner that both the Official and Duplicate samples will be representative of the entire gross sample. Segments of seed-from top to bottom of the layer in the reduced sample container-shall be taken for the official sample and like segments taken for the duplicate sample (upper half of seed shall not be placed in one sample and lower half in the other). All cleaning, mixing and handling shall be done expeditiously and without undue exposure.

Sec. 5. Official Samples. (a) Weight, Disposition. The Official Sample shall consist of not less than 2 pounds, which shall be packed in an air-tight container specified in Sec. 2(a), and, together with the licensed cottonseed sampler's certificate, specified in Sec. 6, shall be sealed and immediately forwarded to a licensed cottonseed chemist for analysis and grading.

(b) Representativeness. One Official Sample representing each lot of cottonseed and one duplicate shall be prepared and certified as follows: (1) for each carload of cottonseed, regardless of the tonnage contained therein; and (2) for each delivery of not more than 150 tons by trucks within 3 consecutive days or the maximum tonnage specified by USDA/AMS, whichever is greater.

Sec. 6. Sampler's Certificate. Each cottonseed sampler shall completely fill in and sign a certificate in the form hereinafter set forth. The certificate shall be enclosed with Official Sample and a copy shall be placed in the Duplicate Sample.

Approved Form of Cottonseed Sampler's Certificate NATIONAL COTTONSEED PRODUCTS ASSOCIATION, INC. ....................... Name of Mill

- - - - - - - - - - - - - - - - - - - - Address

COTTONSEED SAMPLER'S CERTIFICATE

Date sample was drawn* .................... to....

Identification of shipment * *...........................................

......................................................................

Point of origin of seed ............... County............. State

Weight of original sample ................lbs. .............. oz.

Net weight of cleaned seed ................lbs. .............. oz. or Weight of dirty tray contents ........... lbs. .............. oz.

Weight of boll catcher contents .......... lbs. .............. oz.

Portion represented by grabbots, flues, lint cotton ........... lbs. .............. oz.

Total shaker-cleaner foreign matter ........... lbs................ oz.

Remarks ......................................................... (If seed are hot, give temperature)

I hereby certify that the accompanying sample of cottonseed is the OFFICIAL SAMPLE representing the lot of cottonseed marked or identified as above and that the drawing and preparation were done in accordance with the methods prescribed by the NATIONAL COTTONSEED PRODUCTS ASSOCIATION, INC.

Signature ...................................

* If the Official Sample represents wagon or truck deliveries covering more than one day, give inclusive dates. ** Make identification explicit as to seller of seed. If by car, give initials and number. If by truck or wagon, so state.

If cottonseed are bought under the United States Standard Grades, the form of licensed cottonseed sampler's certificate approved by the United States Department of Agriculture shall be used.