Article 1. Definitions of Words and Terms

RULE 140: Applicability.

Unless otherwise specified, all Rules in Chapter III shall apply only to contracts for the several grades and kinds of oil, soapstock and tank bottoms described in this Chapter.

RULE 141: A Contract.

Except as provided in Rule 200, each tank car or tank truck of products shall be treated and handled throughout as a separate purchase or sale, regardless of the number of tank cars or tank trucks called for in any given contract. Adjustments as to weight and quality shall be made on each individual tank car or tank truck. Multiple-car or truck contracts shall be construed to be divisible and not entire, so that default or error as to one or more tank cars or tank trucks shall not affect the remainder of the contract.

RULE 142: A Barrel.

A barrel is four hundred pounds, net.

RULE 143: A Tank Car. 

Unless otherwise specified, a tank car is sixty thousand pounds, net.

Article 2. Grade and Quality

A. CRUDE COTTONSEED OIL

RULE 144: Crude Cottonseed Oil. 

Crude cottonseed oil means the oil as produced from cottonseed only, by either the hydraulic, expeller or screw press, prepress solvent, or solvent extraction process.

RULE 145: Prime Crude Cottonseed Oil.

Prime Crude Cottonseed Oil shall be prime in flavor and odor, as determined by Rule 201 and must refine, as required by these rules, to a color no higher than AOCS 7.6 and with a loss in weight not exceeding 12 percent. Combined moisture and insoluble impurities shall not exceed 1.0 percent as determined by AOCS test methods. Settlement on refining loss shall be made in accordance with Rule 201.

RULE 146: Basis Prime Crude Cottonseed Oil. 

To be tenderable on a "basis prime" contract, crude cottonseed oil must refine, as required by these rules, to a color no higher than AOCS 12 and with a loss in weight not exceeding 20 percent. Combined moisture and insoluble impurities shall not exceed 1.0 percent as determined by AOCS test methods. Settlement shall be made in accordance with Rule 201.

RULE 147: Off Crude Cottonseed Oil.

Under an "off-crude" contract, oil must refine, as required by these Rules, to a color no higher than AOCS 20, with a loss in weight not exceeding 25 percent. Settlement shall be made in accordance with Rule 201.

RULE 148: Reddish Off Crude Cottonseed Oil. 

Under a "reddish off-crude" contract, oil must refine, as required by these Rules, to a color no higher than AOCS 30, with a loss in weight not exceeding 40 percent. Settlement shall be made in accordance with Rule 201.

RULE 149: Low Grade Crude Cottonseed Oil. 

Crude cottonseed oil not coming up to the specifications set forth in Rules 147 and 148 shall be sold either by sample or as "low grade" cottonseed oil.

RULE 150: Screw Press Or Expeller Cottonseed Oil. 

Crude cottonseed oil produced by the screw press or expeller process is tenderable on contracts for the grades of oil previously defined, if such oil will refine within the requirements of the fore-going Rules. Unless seller indicates that he wishes oil analyzed by the special procedure provided in Rule 404, for screw press or expeller oil, such oil shall be analyzed by the regular methods for hydraulic oil.

RULE 151: Solvent Extracted Cottonseed Oil. 

Crude cottonseed oil produced by solvent extraction, with or without pre-pressing, shall be tenderable on contracts for the grades of oil previously defined, if the type of oil is declared at the time of sale. Solvent extracted oil shall be analyzed by the regular or slow break method for hydraulic oil, as provided in Rule 404. Oil with a flash point below 250 °F is rejectable.

RULE 152: Slow Breaking Cottonseed Oil. 

Should seller notify buyer, by the time of arrival at destination of any shipment of crude cottonseed oil, that the oil is of slow breaking type, such oil shall be analyzed by the special "slow-break" procedure provided for in Rule 404, Section 5.

B. REFINED COTTONSEED OIL

RULE 155: Choice Summer Yellow Cottonseed Oil. 

Choice summer yellow cottonseed oil must be reasonably free from visible foreign material, clear and brilliant at temperatures sufficient to melt the stearine, sweet in flavor and odor, of a color no higher than AOCS 7.6, and shall contain not more than 0.125 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 156: Prime Summer Yellow Cottonseed Oil. 

Prime summer yellow cottonseed oil must be reasonably free from visible foreign material, clear at temperatures sufficient to melt the stearine, sweet in flavor and odor, of a color no higher than AOCS 7.6, and shall contain not more than 0.25 percent free fatty acid nor in excess of a 0.10 percent moisture and volatile matter. RULE 157: Prime Winter Yellow Cottonseed Oil. Prime winter yellow cottonseed oil must be reasonably free from visible foreign material, sweet in flavor and odor, of a color no higher than AOCS 7.6, and must stand the cold test as prescribed in these Rules, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 157: Prime Winter Yellow Cottonseed Oil. 

Prime winter yellow cottonseed oil must be reasonably free from visible foreign material, sweet in flavor and odor, of a color no higher than AOCS 7.6, and must stand the cold test as prescribed in these Rules, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 158: Good Off Summer Yellow Cottonseed Oil. 

Good off summer yellow cottonseed oil may be off in flavor and odor, must be reasonably free from visible foreign material, of a color no higher than AOCS 7.6, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 159: Summer Yellow Cottonseed Oil. 

Summer yellow cottonseed oil must be reasonably free from visible foreign material, sweet in flavor and odor, of a color no higher than AOCS 12, and shall contain not more than 0.25 percent free fatty acid nor in excess of a 0.10 percent moisture and volatile matter.

RULE 160: Off Summer Yellow Cottonseed Oil. 

Off summer yellow cottonseed oil may be off in flavor and odor, must be reasonably free from visible foreign material, of a color no higher than AOCS 12, and shall contain not more than 0.50 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 161: Reddish Off Summer Yellow Cottonseed Oil. 

Reddish off summer yellow cottonseed oil may be off in flavor and odor, must be reasonably free from visible foreign material, of a color no higher than AOCS 20, and shall contain not more than 0.75 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 162: Prime Bleachable Summer Yellow Cottonseed Oil. 

Prime bleachable summer yellow cottonseed oil must be reasonably free from visible foreign material, clear at temperatures sufficiently high to melt the stearine, sweet in flavor and odor, and when bleached in the laboratory in accordance with NCPA Rule 405, Section 4, shall be of a color no higher than AOCS 2.5, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 163: Prime Summer White Cottonseed Oil. 

Prime summer white cottonseed oil must be reasonably free from visible foreign material, clear at temperatures sufficient to melt the stearine, sweet in flavor and odor other than an earthy flavor, of a color no higher than AOCS 2.5, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 164: Prime Winter White Cottonseed Oil. 

Prime winter white cottonseed oil must be reasonably free from visible foreign material, brilliant, sweet in flavor and odor other than an earthy flavor, of a color no higher than AOCS 2.5, must stand the cold test as prescribed in these Rules, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 165: Cottonseed Oil Stearine.

Sec. 1. Prime Bleachable Cottonseed Oil Stearine. Prime bleachable cottonseed oil stearine must be only the residue after the removal of prime winter cottonseed oil, must be free from visible foreign material, clear at a temperature of 10-15 degrees Centigrade above the melting point of the stearine, sweet in flavor and odor and when bleached in the laboratory in accordance with NCPA Rule 405, Section 4, shall be of a color no higher than AOCS 2.5, shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter and shall have a maximum iodine value of 98.

Sec. 2. Cottonseed Oil Stearine Other Than Bleachable. Cottonseed oil stearine other than bleachable conforms to all of the specifications of Section 1 of this Rule with the exception of the bleach color, which shall be subject to agreement between buyer and seller.

RULE 166: Prime Bleachable Winter Yellow Cottonseed Oil Olein.

Prime bleachable winter yellow cottonseed oil olein must be reasonably free from visible foreign material, sweet in flavor and odor, and when bleached in the laboratory in accordance with NCPA Rule 405, Section 4, shall be of a color no higher than AOCS 2.5, and must stand the cold test as prescribed in these Rules, and shall contain not more than 0.25 percent free fatty acid, nor in excess of 0.10 percent moisture and volatile matter.

C. CRUDE PEANUT OIL 

RULE 175: Prime Crude Peanut Oil. 

Prime crude peanut oil must be made from sound peanuts, must be sweet in flavor and odor, and must produce prime yellow peanut oil when refined by these rules, with a loss in weight not exceeding 5 percent, provided that any oil that refines with a greater loss than 5 percent, but still makes prime yellow peanut oil shall not be rejected, but shall be settled for in accordance with Rule 201. Combined moisture and insoluble impurities shall not exceed 1.0 percent as determined by AOCS test methods. RULE 176: Basis Prime Crude Peanut Oil. To be tenderable on a "basis prime" contract, crude peanut oil must refine as required by these Rules, to a color no higher than AOCS 10 and with a loss in weight not exceeding 12 percent. Combined moisture and insoluble impurities shall not exceed 1.0 percent as determined by AOCS test methods. Settlement shall be made in accordance with Rule 201.

RULE 176: Basis Prime Crude Peanut Oil.

To be tenderable on a "basis prime" contract, crude peanut oil must refine as required by these Rules, to a color no higher than AOCS 10 and with a loss in weight not exceeding 12 percent. Combined moisture and insoluble impurities shall not exceed 1.0 percent as determined by AOCS test methods. Settlement shall be made in accordance with Rule 201.

RULE 177: Off Crude Peanut Oil. 

Crude peanut oil not coming up to the specifications for prime crude peanut oil or basis prime crude peanut oil as set forth in Rule 175 and Rule 176 shall be called "off" crude peanut oil and shall he sold as such. 

RULE 178: Solvent Extracted Peanut Oil. 

Crude peanut oil produced by solvent extraction, with or without pre-pressing, shall be tenderable on contracts made under these Rules, provided the type of oil is declared at the time of sale. Crude peanut oil with a flash point below 2500 F is rejectable.

RULE 179: Peanut-Cottonseed Oil Mixture. 

Peanut oil which, when subjected to the Halphen test, shows a color reaction darker than that produced by an oil known to contain 1/2 of 1 percent of cottonseed oil may be rejected. Such oil should be sold on sample.

D. REFINED PEANUT OIL

RULE 185: Choice Peanut Oil. 

Choice peanut oil must be free from visible foreign material, clear and brilliant at temperatures sufficient to melt the stearine, sweet in flavor and odor, of a color no higher than AOCS 5.0, and shall contain not more than 0.10 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 186: Prime Yellow Peanut Oil. 

Prime yellow peanut oil must be free from visible foreign material, clear at temperatures sufficient to melt the stearine, sweet in flavor and odor, of a color no higher than AOCS 5.0, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

RULE 187: Good Off Yellow Peanut Oil. 

Good off yellow peanut oil may be off in flavor and odor, must be free from visible foreign material, of a color no higher than AOCS 5.0, and shall contain not more than 0.25 percent free fatty acid nor in excess of 0.10 percent moisture and volatile matter.

E. COLOR DETERMINATION

RULE 190: Color Determination. 

Unless seller shall otherwise indicate on invoices or contracts covering shipment of crude cottonseed or peanut oil, or refined or bleached cottonseed or peanut oil, or by telegram delivered to buyer prior to arrival of tank car or tank truck at destination, oil color shall be determined in accordance with AOCS Method Cc-13 b-45, Reapproved 1993, "Wesson Method Using Lovibond Glasses".

Wherever reference is made in this Chapter to AOCS color and Lovibond Method is used, it shall be understood to mean red color obtained with Lovibond glasses.

F. MINERAL OIL CONTAMINATION

RULE 191: Mineral Oil Contamination. 

Vegetable oil contaminated with mineral oil is not deliverable on contracts made under these Rules.

G. SOAPSTOCK AND TANK BOTTOMS

RULE 195: Soapstock. 

Soapstock is the by-product obtained from the refining of any vegetable oil. Contracts shall specify the name of the oil from which the soapstock is made and, when so named, the commodity shall not be adulterated with any other oil or soapstock without specific consent of the purchaser. If preservatives are added to soapstock, the nature and amount must be declared in the contract.

Unless otherwise specified, contracts shall be based upon 50 percent total fatty acid content, and soapstock containing less than 35 percent total fatty acid may be rejected. No claim on account of absence of glycerine will be considered unless the contract specifies glycerine content.

A draft against a sale of soapstock shall be drawn for 80 percent of the invoice price, unless seller's certificate of analysis accompanies the invoice. In the latter case, the draft may be drawn for the amount indicated by seller's analysis.

RULE 196: Acidulated Soapstock. 

Acidulated soapstock is the product obtained from the complete acidulation and thorough settling of soapstock, as defined in Rule 195.

Unless otherwise specified, contracts shall be based upon total fatty acid content of 95 percent, and acidulated soapstock containing less than 85 percent total fatty acid may be rejected. No claim on account of absence of glycerine will be considered unless the contract specifies glycerine content.

A draft against a sale of acidulated soapstock shall be drawn for 90 percent of the invoice price, unless seller's certificate of analysis accompanies the invoice. In the latter case, the draft may be drawn for the amount indicated by seller's analysis.

RULE 197: Tank Bottoms. 

Tank bottoms consist of the settlings that accumulate in crude vegetable oil storage tanks. They shall be sold on sample only.

Article 3. Adjustments and Variations 

RULE 200: Quantity Variations. 

A variation of 1/2 of 1 percent above or below contract quantity shall constitute a good delivery as to weight. When oil is shipped in tank cars, the variation shall apply against each tank car. If oil is shipped in tank trucks, the variation shall apply to the total quantity so shipped.

Settlement for under-weights or over-weights shall be made in accordance with Rule 41.

RULE 201: Crude Oil Settlements. 

Sec. 1. Where crude oil is delivered on a prime, basis prime, off or reddish off crude contract, buyer shall credit seller at the rate of 3/4 of 1 percent of the contract price for each 1 percent refining loss under 9 percent in the case of cottonseed oil or under 5 percent in the case of peanut oil.

Sec. 2. Where crude oil is delivered on a prime, basis prime, off or reddish off crude contract, seller shall pay buyer at the rate of 1/2 of 1 percent of the contract price for each 1 point in excess of AOCS color 7.6 in the case of cottonseed oil or AOCS color 5 in the case of peanut oil, and at the rate of 1-1/2 percent of the contract price for off flavor and odor; and at the rate of 3/4 of 1 percent of the contract price for each 1 percent refining loss above 9 percent in the case of cottonseed oil or 5 percent in the case of peanut oil.

Where crude cottonseed oil is delivered on a basis prime crude contract and the refining loss exceeds 16 percent, seller shall pay buyer, in addition to the discount set forth above, at the rate of 3/4 of 1 percent of the contract price for each 1 percent of refining loss in excess of 16 percent.

Sec. 3. Oil, in which free fatty acid does not exceed 3.25 percent and which, when refined, is sweet in flavor and odor, shall be graded prime in flavor and odor. Oil, in which free fatty acid exceeds 3.25 percent and/or which, when refined, is not sweet in flavor and odor, shall be graded off in flavor and odor.

When off oil is sold by sample, the oil tendered must equal the sample in all respects, except that refining loss may exceed that of the sample by not more than 5 percent, with the price to be reduced in proportion to the excess loss. If refining loss of the tendered oil exceeds that of the sample by more than 5 percent, the oil is rejectable.

Sec. 4. Refining loss shall in all cases be calculated on the weight of the crude oil. Adjustments for color and flavor or odor shall in all cases be calculated on the settlement weight of the refined oil as determined by analysis. Color and refining loss shall in all cases 
be calculated fractionally.

Article 4. Packages 

RULE 205: Type Of Package. 

Oil, soapstock and tank bottoms may be delivered in tank cars, tank trucks, drums or barrels, in accordance with the terms of the contract. Unless otherwise specified, it shall be understood that delivery will be in tank cars furnished by the buyer.

RULE 206: Tank Cars Or Trucks. 

Where a contract calls for one or more tank cars or trucks of specified capacity, it shall be understood that the party furnishing such cars or trucks shall supply cars or trucks of the specified capacity or its equivalent, provided that any additional expense arising from switching, stopping or weighing charges caused by an increase in the number of tanks or trucks shall be borne by the party furnishing such tanks or trucks.

In no event, shall buyer or seller furnish a car of greater capacity than 95,000 lbs. without agreement between buyer and seller.

When soapstock, raw or acidulated, is sold in seller's tanks, such tanks must be equipped with steam coils. When not so equipped, buyer may reject.

RULE 207: Barrels. 

If crude or refined oil is sold in barrels, it shall be understood that such barrels shall be new or thoroughly cleaned, used steel drums, of the open head or bung type. Drums shall be in good shipping order and shall contain not less than 360 lbs. nor more than 440 lbs., net, provided that the aggregate weight of oil delivered on any such contract shall equal 400 lbs. for each barrel sold.

Article 5. Performance of Contract

A. BUYER'S TANKS 

RULE 210: Origin, Destination and Routing Notices.

Sec. 1. Specified Origin-Buyers' Routing. Where the contract specifies point of origin and buyers routing, no notice or declaration is required, but the buyer shall forward tank cars or tank trucks as provided in Rule 211.

Sec. 2. F.0.B. Common Points or F.0.B. Several Points-Buyer's Routing. Where contract specifies f.o.b. common points or f.o.b. more than one point, buyer's routing, for specified shipment, seller shall notify buyer before the first day of the contract period, or immediately if period is less than 30 days, of point or points from which shipment will be made. If seller does not give such notice within the period specified, the buyer must, at least 15 days prior to expiration of the contract period, request such notice, confirming his request by letter. Failure by seller thereupon to furnish such notice immediately will give the buyer the option, at any time during but not after the contract period, to treat the contract as breached by the seller. If he elects to do so, he must proceed as provided in Rule 50, 51, 52, and 53.

Sec. 3. Seller's Routing. Where the contract specifies seller's routing, for specified shipment, buyer must notify seller of destination before seller is required to give location and routing. Such notification must be furnished at least fifteen days prior to the expiration of the contract period or immediately if period is less than fifteen days. Upon receiving such notice, seller must, within the foregoing time limits, notify buyer of the point from which shipment will be made.

Failure by either person to comply with the provisions of this Rule will give the other party the option, at any time during but not after the contract period, to treat the contract as breached by the person in default. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

RULE 211: Forwarding Buyer's Tanks. 

Sec. 1. In contracts for immediate, prompt or specified shipment from specified point of origin, and in all other cases where buyer has received notices provided in Rule 210, Sec. 2 and 3, buyer must forward tank cars or tank trucks in time to reach, by the ordinary course of transportation and before expiration of the contract period, the point from which shipment is to be made.

Sec. 2. In the case of contracts providing for shipments not covered under Sec. 1 of this Rule, either buyer or seller may, at the time the contract is made or at least five days prior to the beginning of the contract delivery period, furnish the other contracting party with a shipping schedule. Unless such a schedule is rejected in writing by one of the contracting parties, it shall be considered a part of the contract and tank cars or tank trucks shall be forwarded accordingly. If the contracting parties cannot agree on such a schedule or if no such schedule is furnished by either party, then it shall be understood that tank cars or tank trucks shall be forwarded on a scattered basis as defined in Rule 28.

Sec. 3. If the first buyer of a contract for oil resells that contract, it shall be understood that, unless otherwise agreed to by the original seller, the terms for forwarding tank cars and/or trucks, as established by Sec. 1 and Sec. 2 of this Rule, shall apply to this and any subsequent resale contracts.

Sec. 4. If the first buyer of a contract for oil resells that contract, it shall be understood that they will notify the mill in writing and release the oil to be loaded in the succeeding buyer's equipment. Subsequent resales, if they occur, shall be handled in the same manner. Notification shall be made by the first day of each shipment month, or within two business days of date of sale.

Sec. 5. When tank cars are specified in the contract, buyer must notify seller giving location, number and initial of each car and contents when last loaded, if loaded with other than edible vegetable oil and soapstock. Buyer shall promptly follow up such notice with railroad receipt and bill of lading. The railroad record will determine date of forwarding. When tank trucks are specified in the contract, buyer shall give advance notice and seller may require at least 72 hours advance notice of the expected arrival date.

Sec. 6. Failure of buyer to forward tanks, as herein required, shall give seller the option to exact penalty against first buyer at the rate of $8.00 per (standard) tank car or tank truck for each day's delay, with proportional charges of $10.00 per tank car day or fraction thereof for 10,000 gallon tank cars. For 20,000-23,500 gallon tank cars, the penalty charge per car per day or fraction thereof shall be $20.00 for the first two (2) days, $30.00 per day for the next two (2) days and $60.00 per day thereafter. He shall alternatively have the option to treat the contract as breached. In the latter case, seller must notify buyer by telegram of his intention and the contract shall remain in force until such notice is given. If seller fails to give such notice within 24 (twenty-four) hours after expiration of contract period, he must load such tank cars or tank trucks as have already been forwarded by buyer. When seller elects to treat a contract as breached under this Rule, he must proceed as provided in Rules 50, 51, 52 and 53.

RULE 212: Delay Of Tanks By Carrier. 

If arrival of tank cars is delayed through fault of the carrier, buyer shall not be required to pay penalty or be held to be in default. Where such delay prevents a tank car from reaching seller prior to expiration of contract period, the time within which seller must load and ship shall be extended for 48 hours after the car is placed at seller's plant.

If a tank car or tank truck is disabled or lost en route for loading, buyer must forward another tank car or tank truck within 72 hours after receipt of information to that effect, or in time to reach destination within contract period. Failure to make such substitution within the time permitted shall give the seller the option to treat the contract as breached by buyer. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

RULE 213: Arrival Of Tank Cars. 

Except as provided in Rule 216, arrival of tank cars, within the free switching limits of the town where the plant from which shipment is to be made is located, will constitute delivery of tank cars by buyer to seller.

RULE 214: Loading Tanks. 

Sec. 1. The shipper shall inspect all tank cars or tank trucks before loading to determine that tanks are clean and that their mechanical parts, especially steam pipes, coils, and outlet pipes and valves, are in good condition.

Sec. 2. Where tanks are found mechanically defective or if tank trucks cannot be effectively inspected, they shall not be loaded until buyer has been notified by telegram and specifically authorizes such loading. Shipper shall also inspect tanks after loading to see that valves are properly seated, that caps are properly applied to outlet pipes, that caps or plugs are properly applied to steam pipes, and that dome covers are properly applied, and sealed, if they can be sealed effectively. Failure by a shipper to observe the foregoing procedure shall constitute negligence on his part and shall relieve the buyer of responsibility for any and all loss or damage resulting there from.

Sec. 3. Where tanks require cleaning, shipper shall clean them and charge the buyer the actual cost therefore. If buyer furnishes a tank previously used for any commodity the residue of which would damage the product to be loaded therein, the shipper shall clean such tank as effectively as possible and shall, before loading, notify buyer of the condition of the tank and of possible product contamination if tank is loaded. Buyer must then advise seller whether he desires such tank loaded or will furnish another tank.

Sec. 4. If buyer fails to furnish another tank or if he directs loading into the contaminated tank, shipper will not be responsible for damage to the product so loaded and the quality of such product shall be determined by seller's point-of-origin sample drawn in accordance with these Rules.

Note: The following excerpt from the rules for loading tank cars, issued by the Association of American Railroads, is printed here as information only and is not a part of these Rules:

"Before tank cars are loaded, the shipper must examine the tanks and their appurtenances to see that the safety and outlet valves, the safety vents, the closures of all openings, and the protective covers of all appurtenances are In proper condition, Tanks with bottom discharge outlets must have their outlet caps off or outlet cap plugs open during entire time tanks are being loaded. After loading, tanks which show any dropping of liquid contents at the seams or rivets, or with bottom outlet valves which perm/t more than a dropping of the liquid with the outlet caps off or outlet cap plugs open, must not be offered for transportation until proper repairs have been made.

Tank cars equipped with interior heater coils must be loaded with heater coil inlet and outlet caps off during entire time tanks are being loaded and show no leakage with these caps off. All closures of openings in tank cars and of their protective housings must be properly secured in place by the use of a bar, wrench, or other suitable tool. A wrench having a handle at least 48 inches long must be used to apply the outlet valve cap. Manhole covers and outlet valve caps must be made tight against leakage of vapor and liquid, by use of gaskets of suitable material before cars are tendered to carrier for transportation. Luting materials must not be used In outlet cap or on threads of bottom outlet."

RULE 215: Tanks - Capacity And Loading.

Sec. 1. Buyer must furnish tanks of sufficient capacity to permit fulfillment of contract and seller must load tanks to full capacity, within the limits of the contract. Either party failing to comply with the requirements of this Rule shall pay the other party, for such deficiency, the difference between market and contract price at time of shipment.

Sec. 2. If seller fails to load to capacity within the limits of the contract, he shall pay the buyer any freight charges incurred by the latter as a result of such failure. Such payment shall be determined by the difference between settlement weight and minimum weight for freight purposes.

RULE 216: Loading And Shipping Periods.

Sec. 1. Tank Cars. Seller shall have 24 hours, beginning at the first 7:00 a.m. after placement of tank cars at his plant, in which to load and ship, even though such 24 hour period extends beyond the expiration of the contract period; provided however that such cars shall not be placed before the scheduled loading dates unless agreed to by the seller. Immediately upon receipt of notice of arrival of tank cars at town where his plant is located, seller must give orders for placing cars at his plant and must receive such cars on tender by the carrier.

Any delay in placement of cars at seller's plant due to failure of seller to have his track clear will give the buyer the right, at any time after 24 hours and before tank is loaded to treat the contract as breached by seller. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

Sec. 2. When the buyer has made a good delivery of tank cars and the seller fails to load and ship such cars within the 24-hour period referred to in Sec. 1, buyer may charge the seller a penalty of $8.00 per 8,000 gallon tank car per day or fraction thereof, beginning with the expiration of said period, and proportional charges of $10.00 per tank car per day or fraction thereof for 10,000 gallon tank cars. For 20,000-23,500 gallon tank cars, the penalty charge per car per day or fraction thereof shall be $20.00 for the first two (2) days, $30.00 per day for the next two (2) days and $60.00 per day thereafter. If the 24 hour period and the contract period have both expired and the seller has not loaded and shipped, the buyer will have a continuing option to treat the contract as breached by the seller. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

Sec. 3. Tank Trucks. When tank trucks are to be used for delivery of oil or soapstock, buyer and seller shall agree on the approximate time of loading and buyer shall have trucks arrive at seller's plant not more than 48 hours after the time agreed upon. Seller shall begin loading promptly and shall complete loading within 4 hours after truck arrival; provided, if trucks arrive after 4 p.m., seller shall not be obligated to begin loading before 8 a.m. the following working day. Failure of seller to order tank trucks for loading within the contract period shall give buyer the right to treat the contract as breached by seller. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

For loading delays in excess of the above time limits, buyer may assess seller for the applicable published public motor carrier detention charges or, where none are published, at the rate of $2.50 per tank truck per hour or fraction thereof. If loading is delayed 24 hours after expiration of the contract period, buyer may treat the contract as breached by the seller. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

B. SELLERS' TANKS

RULE 217: Shipping Period.

If oil or soapstock is sold in seller's tank cars or tank trucks, f.o.b. plant or c.a.f. a named point for specified shipment, seller shall have the right to ship at his convenience during the contract period.

RULE 218: Shipping Instructions.

If contracts specify seller's tank cars or tank trucks, f.o.b. plant, c.a.f., or basis c.a.f. a named point for shipments during a given month, the buyer must notify seller of destination and give shipping instructions within five days after request for same, provided such request is not dated prior to the contract month.

If buyer fails to comply with this Rule, seller will have the option, at any time during but not after the contract period, to treat the contract as breached. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

RULE 219: Failure To Ship.

 If seller has received destination notice and shipping instructions as provided in Rule 218, and fails to ship within the contract period, buyer may treat the contract as breached by seller. If he elects to do so, he must proceed as provided in Rules 50, 51, 52 and 53.

Should buyer fail to exercise his option for twenty-four hours after expiration of the contract period, he shall accept such tanks as have already been loaded and shipped at the time he thereafter elects to treat the contract as breached.

RULE 220: Unloading Seller's Tanks.

Sec. 1. If a product of contract quality is delivered in seller's tank cars with serviceable coils, buyer must unload such product promptly upon arrival. Twenty-four (24) hours free time will be allowed for unloading; free time shall start at the first 7: 00 a.m. after placement of tank cars at buyer's plant. If delivered in tank trucks, buyer must unload within four (4) hours after arrival of truck or trucks; however, if tank trucks arrive after 4 p.m. buyer shall not be obligated to begin unloading before 8 a.m. the following work day.

Sec. 2. If lack of serviceable coils delays unloading, buyer may take up to three additional working days to complete unloading of tank cars. On deliveries in seller's tank trucks, it shall be seller's responsibility to provide, at his own expense, equipment in such condition as will permit buyer to unload within the above time limits.

Sec. 3. When the buyer is responsible for unloading delays in excess of the above time limits, seller may assess buyer the following penalties: $8.00 per 8,000 gallon tank car per day, or fraction thereof, and proportional charges of $10.00 per tank car per day for 10,000 gallon tank cars. For 20,000-23,500 gallon tank cars, the penalty charge per car per day or fraction thereof shall be $20.00 for the first two (2) days, $30.00 per day for the next two (2) days and $60.00 per day thereafter. On truck shipments, the applicable published public motor carrier detention charges or, where none are published, the rate of $2.50 per tank truck per hour or fraction thereof will apply.

C. PRODUCTS AT DESTINATION

RULE 221: Notice Of Shortage In Weight.

Sec. 1. If the gross weight of oil, soapstock or tank bottoms, determined according to these Rules, indicates a shortage exceeding 500 pounds if in 60,000 pound tank cars, 1,000 pounds if in 150,000 pound tank cars or 300 pounds if in tank trucks, with due allowance for change in fuel weight, buyer shall so notify seller immediately by telegram, stating weight, seal numbers, if any, and whether seals are intact. In the case of tank cars, seller shall have 24 hours from time of dispatch of buyer's telegram in which to examine the case and the product shall be held without unloading during this period. Seller must, however, immediately upon receipt of above notice, notify buyer by telegram of his intention.

Sec. 2. In the case of tank trucks, seller shall immediately reply by telegram to buyer's notification, advising buyer whether to proceed with unloading on the basis of buyer's weights or to have the truck inspected and weighed as provided in Rule 66. Truck shall be held without unloading until receipt of seller's telegram. If such telegram is not received within 2 hours after dispatch of buyer's wire, buyer may have truck weighed as provided in Rule 66 and unload it.

Sec. 3. If no shortage in gross weight exists under Section 1 of this Rule but a shortage in net weight exceeding the quantities specified in that Section is indicated, buyer shall so notify seller immediately by telephone. Seller, in turn, shall immediately advise buyer whether he wishes the car or truck inspected and weighed by one of the parties named in Rule 66. Seller will be responsible for arranging such inspection no later than the next business day after buyer's notification. Cost of such inspection shall be paid by the party whose reported net weight shows the greatest difference from that determined by the inspection. Additional demurrage and car rental will be for the account of the party who is at fault.

Sec. 4. So that the consignee can comply with Section 1 of this Rule, the shipper shall, immediately after loading and weighing tank cars, mail a copy of the bill of lading to the consignee. If a tank car arrives in good order at consignee's plant prior to arrival of the bill of lading, consignee may weigh and unload such car in accordance with Rule 73 and such weight shall govern for settlement purposes.

RULE 222: Non-Arrival Of Documents.

If a tank car arrives at destination before the buyer has had an opportunity to take up the draft with the bill of lading, the time within which the car must be sampled, unloaded, rejected or claim filed against such car shall run from the date the bill of lading is tendered the buyer.

RULE 223: Rejection.

Sec. 1. Tank Cars. Buyer shall have 72 hours after receipt of tank cars at destination for sampling and examination as provided in Rule 230. If, within this period, buyer elects to reject, he must so advise seller by telegram, stating railroad record of time of arrival. If seller decides to replace, as provided in Section 3, buyer will, if possible, furnish tank cars upon request of seller. If buyer is unable to do so, seller may furnish such tank cars.

Sec. 2. Tank Trucks. If a product which, in the judgment of the buyer is below contract quality, is received by tank truck, buyer may either hold it in a clean, separate tank or may unload it into his general storage. An official sample, drawn as provided in Rule 230, shall be promptly analyzed and the results reported to the seller. If a product is below contract quality and has been held in separate storage, buyer may reject, notifying seller by telegram of his decision to do so.

If a product is below contract quality but has not been held in separate storage, buyer may not reject. In such event, settlement shall be made on the basis of the official sample in accordance with Rule 201; provided, that the maximum discount for refining loss in excess of 16% shall not be limited to 3%.

Sec. 3. Replacement. If seller is notified of rejection, he shall have the privilege of replacement with a product of contract quality within the contract period. If contract period has expired, seller may replace with a product of contract quality by notifying buyer, within 48 hours after receipt of rejection notice, of his intention to do so. Only one replacement is permitted and transportation costs may not exceed those of the original shipment. If seller declines or fails to replace, as herein provided, the buyer must, to preserve a claim, proceed in accordance with Rules 50, 51, 52 and 53. Sec. 4. Rejection Costs. If a product is properly rejected, seller must, within 48 hours after receipt of rejection notice, dispose of the rejected product and repay to buyer all expenses incurred by buyer on account of said product. In calculating rejection costs, tank car rental shall be computed at the rate of $8.00 per 8,000 gallon tank car per day or fraction thereof and proportional charges of $10.00 per tank car per day for 10,000 gallon tank cars. For 20,000-23,500 gallon tank cars, the charge per car per day or fraction thereof shall be $20,00 for the first two (2) days, $30.00 per day for the next two (2) days and $60.00 per day thereafter. If seller fails to perform the foregoing obligations, the buyer must, to preserve a claim, proceed as provided in Rules 50, 51, 52 and 53.

RULE 224: Tank Cars Or Trucks Delayed In Dispute.

Either buyer's or seller's tank cars or tank trucks delayed during settlement of dispute, by arbitration or otherwise, shall be subject to penalty at the rates and with the free time provided in Rule 216. The penalty shall be paid by the party in default. Article 6. Weighing and Sampling

RULE 230: Samples For Settlement Purposes.

Sec. 1. Crude or Refined Oil or Soapstock at Point of Origin. If the seller so elects, he shall have the right at his own expense to have a sample of crude or refined oil or soapstock in tank car or tank truck drawn at the point of origin. Such sampling shall be performed only by an official weigher and inspector. If the buyer furnishes a tank contaminated by its previous use and said tank is to be loaded at buyer's risk as provided in Rule 214, seller's sample shall be taken while the oil or soapstock is flowing into the tank. Seller shall indicate on his invoice that official sample was so drawn at origin. If seller intends to have his portion of said sample chemically analyzed he shall note this fact on his invoice and shall send the buyer a copy of the analytical report. In the case of tank cars, a portion of the sample, properly identified, shall be immediately forwarded by the official weigher and inspector to the buyer. If said portion of the sample reaches the buyer before the tank car arrives at destination, it shall become the official sample for settlement purposes. The buyer shall analyze such sample and report to the seller In accordance with Section 3 of this Rule. In the case of tank trucks, a portion of the sample, properly identified, shall be immediately forwarded by the Official Weigher and Inspector to the buyer via the tank truck driver. Such sample upon receipt by buyer, shall become the official sample for settlement purposes. The buyer shall analyze such sample and report to the seller in accordance with Section 3 of this Rule.

When furnishing shipping instructions, the buyer may direct that a portion of the sample be immediately forwarded to an address other than the destination of the shipment. In such event, the requirement that buyer's portion of the sample reach destination with or prior to arrival of the shipment shall not apply, and such sample shall be recognized as official for settlement purposes.

Sec. 2. Crude or Refined Oil or Soapstock at Destination. Unless seller has furnished buyer with an official sample, as provided in Section 1 of this Rule, buyer shall, upon arrival of tank car or tank truck, draw a sample in the manner prescribed in these Rules. Buyer shall analyze such sample and report to the seller in accordance with Section 3 of this Rule.

If buyer's analysis indicates that product is of contract quality or better, seller agrees to accept buyer's sample as official. If buyer's analysis indicates that product is below contract quality, either party may call for an official sample to be taken in accordance with these Rules and settlement shall be made thereon.

Sec. 3. Reporting Buyer's Analysis. Buyer shall report to seller the results of his analysis of sample, drawn according to Sec. 1 or Sec. 2 of this Rule, within 72 hours after arrival of tank car or tank truck at buyer's plant, except when such analysis indicates the oil is not prime in the case of crude or is not of contract quality in the case of refined. In the latter case, buyer shall immediately notify seller of results by telegram. In either event, seller shall have 48 hours after receipt of notification to accept or reject buyers analysis. If he rejects, analysis shall be arranged in accordance with Rule 101.

Sec. 4. Where an official sample of crude oil is submitted, by either buyer or seller, to an official chemist for official analysis, the sampling certificate shall show the kind of oil (cottonseed, peanut, etc.), the type of process (mechanical or extracted), and,if requested by the seller, the analysis procedure (regular, slow breaking, and expeller or screwpress) to be used and the method of color determination. The chemist shall include, in his reports to buyer and seller, all of the foregoing information.

RULE 231: Methods of Sampling Oil.

Sec. 1. Barrels. Samples shall be drawn with an oil thief conforming to the specifications in AOCS Method C 1-47 (Reapproved 1993). At least 10 percent of the barrels, selected at random, shall be sampled. Individual samples shall be composited, mixed thoroughly, and distributed in laboratory containers, as provided in Section 2 of this Rule. For complete details of the sampling method to be used, refer to AOCS Method C 1-47 (Reapproved 1993).

Sec. 2. Tank Cars and Tank Trucks Loaded. A vertical section of the oil from top to bottom of the car must be taken with an official trier which conforms to the following specifications. This trier must be furnished by buyer at destination, or seller at shipping point: Diameter - 2 inches uniform diameter throughout. Length - Sufficient to take a sample of the entire depth of oil in tank - usually 10 feet.

Closure - A tight valve or cock at lower end which allows an unrestricted opening 2 inches in diameter when fully opened, and is free from leaks when closed. The valve shall be opened and closed by means of a rod from the top of the trier and so constructed as to take sample within 1/4 inch (or less) of the bottom of the tank. The trier must be clean, dry and free from contamination with other oils. When two or more cars are sampled consecutively, all sampling equipment must be thoroughly cleaned after sampling each car. The trier must be lowered vertically through the oil with the bottom valve wide open, at a uniform rate slow enough to permit the trier to fill as it is lowered, requiring 10 to 15 seconds to reach the bottom. The bottom valve is then closed and the tube withdrawn. Several takes shall be drawn by this method in a manner that will prevent the introduction of any moisture. They shall, within one hour, be placed in a clean container and thoroughly mixed. From this mixture, there shall be drawn a three-gallon sample, equal portions of which shall, through the use of a three-spouted funnel, be put into three new, clean, one-gallon tinned metal or odor-free high-density polyethylene containers of natural color, modified square type, 115 gm., with 1 - 1/2" neck opening, which shall be filled to not closer than two inches of the top. All these portions shall be carefully marked and handled in accordance with Rules 101 or 230. Should sample be drawn at point of origin by official weigher and inspector, he shall, if seals can be applied effectively, seal tank both top and bottom with official seals provided by the Association.

Sec. 3. Tank Cars and Trucks - Loading and Unloading. Where a sample is taken during loading or unloading, the continuous flow method of sampling (AOCS C 1-47, Reapproved 1993) shall be used as follows: (a) A bleeder line, made of 3/8" standard pipe with a slight downward slope, is located in a vertical section of the pumping line through which the product is continuously flowing upward to the individual tank, tank car or tank truck being sampled. The sample line should be located as far away from elbows or tees as possible, should penetrate to the center of the pumping line, should be cut beveled at the end looking downward and should discharge into a sample tank or drum. The sample line should not have a petcock. (b) The metal sample tank or drum is of approximately 50 gallon capacity, having a suitable metal cover and an inverted cone bottom welded securely in place. Just above the bottom of the drum, a 3/8" draw-off line, equipped with a petcock is installed and is used for obtaining the required sample(s) from the gross sample. To facilitate complete draining and easy cleaning, the bottom of the drum should be replaced by a securely welded cone bottom, having an apex angle of approximately 120 with the other two angles each about 30 to the horizontal. To prevent loss of solvent by evaporation, a suitable metal cover, with slots or holes to permit insertion of the sampler pipe and mixer shaft, should be placed over the sample tank during the sampling and mixing operation. (c) Prior to the start of the pumping period, the sampling equipment should be examined and the draw-off lines closed. During the pumping period, it should be made certain that a continuous flow of oil is being obtained. When the tank car, tank truck, or tank has been filled, the mechanical mixer is started and the gross sample is mixed thoroughly to obtain uniform distribution of moisture, meal and impurities. After thorough mixing and with agitator still running, the draw-off line is opened and three 1-gallon samples withdrawn into new and dry 1-gallon containers, filled to a level about 2" from the top. The sample containers are immediately closed and properly labeled. (d) Through the 3" line connected to the apex of the conical bottom, surplus oil is returned to oil storage or to the tank car if the official weight was obtained prior to sampling. After draining, the tank is thoroughly cleaned by flushing, washing and drying or by other suitable means where conditions warrant and the cleanings withdrawn through the cleanout line. The cleaning procedure should be such that there will be no contamination of the next sample drawn. Note: This method is applicable only if the product is completely liquid and free-flowing and does not contain any material that may plug the bleeder line. Where multiple loading or unloading facilities are in use, a separate sample tank should be available for each unit, although individual agitators are not required."

Sec. 4. Storage Tanks. Samples of bulk oil in storage tanks shall be drained as follows: Samples shall be taken at one-foot levels of the tank from bottom to top, by use of a bomb type sampler, or a similar device. From the well-mixed composite sample, four one- gallon samples shall be taken as the official representative samples of the oil in storage. All cans and utensils used must be perfectly clean and dry and the containers of the official samples shall be securely fastened. All these portions shall be carefully marked and held for disposition in accordance with Rule 101.

RULE 232: Soapstock - Methods Of Sampling And Adjusting Differences.

Sec. 1. Raw Soapstock. Soapstock shall be sampled only during loading. Samples must be drawn from the flowing stock at the discharge end of the pipe as the material enters the tank car or other container, as follows:

Sample the fling stock at regular and frequent intervals, using a ladle with a handle, and tong not less than 25 individual samples of uniform size. Place these samples in a drum, can or other container, with a tight cover. The total gross sample should amount to 1/10% to 2/10%, by weight, of the shipment, i.e., 60 to 120 Lbs. per tank car.

Except during the actual sampling, the sample container must be closed with the tight cover, to prevent loss of moisture by evaporation, and also to prevent contamination with water or other foreign material. This is particularly important, If the loading is interrupted for any reason. If the flow is interrupted and it is necessary to clear the line, the use of air Is preferable to steam. When necessary to blow the line with steam, the steam must be blown back from the end of the line to or toward the supply tank and not toward the sampling end of the line.

Add 1/10% of oil of cassia to the composite sample, - thoroughly, fill four cans, 1 lb. or larger, and seal them hermetically (air tight). Mark them properly for identification.

Sec. 2. Acidulated Soapstock. This material may be sampled during loading or upon delivery by the method described in Section I of this Rule or by any of the official methods for sampling liquid fats in tank cars, tank trucks or drums, provided the material is sufficiently liquid to be sampled in this manner.

Samples shall be prepared in accordance with Section I of this Rule except that the addition of oil of cassia may be omitted.

Sec. 3. Handling Samples. The official sampler shall properly mark and identify each sample portion, sending one to the buyer, giving one to the seller, and retaining two. Sample shall be plainly marked to show date sampled, contents, car number or truck identification, and shipper, and buyer's portion shall be sent to same address as destination of the shipment, unless otherwise directed by the buyer. Official sampler shall show on his certificate the dates when sampling was started and completed. In the case of truck shipment the sample shall be forwarded to buyer via the truck driver unless otherwise directed by the buyer. If in the case of rail shipments the loading sample doer not reach destination before the car arrives and seller cannot show that delay is due to causes beyond his control, buyer may charge seller with penalty of $3.00 per tank car per day until sample is received.

Sec. 4. Adjusting Differences. Seller's analysis shall be furnished buyer within 10 days after he receives sample and buyer's analysis shall be famished seller within 10 days after the latter receives sample. If the difference between buyer's and seller's analyses is not more than 1 per cent in total fatty acid content, the two shall be averaged for settlement. If the difference in total fatty acid content exceeds I per cent, the official sampler shall forward a portion of the sample to an official chemist, agreed upon by buyer and seller, for umpire analysis. If buyer and seller cannot agree, the Association Secretary shall name such umpire chemist. The mean of the umpire chemist's analysis and the analysis of the buyer or seller closest thereto shall be used for settlement.

The fourth sample portion shall be retained by the sampler to replace any of the other three portions that may be lost.

RULE 233: Weighing.

Sec. 1. Tank Car. Tank cars shall be weighed at destination as provided in Rule 73. Certification to this effect by the weigher shall be evidence in the case of claims or arbitration. If, however, 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.

Sec. 2. Tank Trucks. Except where seller is not responsible for destination weights on truck deliveries, as provided in Rule 4, tank trucks shall be weighed at destination in accordance with conditions of Rule 73. Certification to this effect by official weigher shall be evidence in the case of claim or arbitration.

Sec. 3. Barrel. Tares shall be determined by emptying 4 of each 100 barrels selected at random. Allowance shall be made for difference in tares in excess of I pound per barrel. Weigher shall place a distinguishing mark on each barrel emptied and such mark shall be shown on the weight certificate.

Article 7. Claims

RULE 235: Period For Filing Claims.

Sec. 1. Oil. All claims on account of shipment of oil shall be made by the buyer within 10 days after arrival of the sample forwarded by seller under Rule 230. If seller fails to forward his analysis within 10 days, in accordance with Rule 230, the period within which buyer may file claim shall be extended by the number of days the seller delays. Settlement shall be made by seller within 10 days after receipt of statement from the buyer.

Sec. 2. Soapstock. All claims for loss in weight on shipments of raw or acidulated soapstock shall be made within 10 days after arrival of product at destination. All claims for adjustment of fatty acid content must be made within 10 days after buyer has received the samples forwarded by seller under Rule 232. If seller fails to forward his analysis within 10 days, in accordance with Rule 232, period within which buyer may file claim shall be extended by the number of days the seller delays.

Sec. 3. Tank Bottoms. All claims for loss in weight on shipments of tank bottoms shall be made within 10 days after arrival of product at destination.