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2314

FEDERAL REGISTER, Thursday, June 8, 1939

count is allowed shall contain the express Agent or a Distributor, the meaning and provision that the discount is allowed effect of which shall not be changed or upon the condition that the Distributor altered by any other provision of the is authorized to accept and retain such order:
discount. f 1 If the price herein named is f. o. b.
318.4 Limitations of orders, agree any point other than the originating ments, options and quotations, a Sub mine, such price shall be increased by ject to further order of the Coal Com the amount and at the time of any in mission, no Code Member or Sales Agent crease in the published freight rate in of the Code Member or Distributor shall cluded in such price and becoming effec enter into any agreement or order for tive during the period of the order.
the sale of coal providing for delivery 2 The buyer shall notify the seller in for a period in excess of that authorized writing of all reconsignments or diver for a spot order, and no prices shall be sions, except that such notification is not less than the applicable minimum prices necessary where the coal is purchased for in effect at the time of the delivery of and used as railroad fuel and the recon the coal thereunder: Provided, however, signment or diversion does not result in That contracts for periods not exceeding a change in the applicable price. In the one 1 year may be made with agencies case of reconsignment or diversion, the of the Federal Government or with seller shall charge and the buyer, shall agencies of State or local governments, pay not less than the applicable minimum where the contract is entered into price prescribed for such coal at the time through competitive bidding, or in the of the reconsignment or diversion for absence of competitive bidding, where delivery to the destination to which such by virtue of an express exemption in the shipment is actually delivered and for statute or ordinance such agencies may the use to which it is actually applied.
enter into contracts for the purchase of 3 The coal shipped pursuant to this coal without regard to competitive order is sold and purchased upon the bidding.
following conditions:
Provided, further, That contracts may i If the coal is sold for consumption be made providing for delivery over a period not in excess of twelve 12 or processing, it shall be used in the months upon special permission and ap plant or plants named herein and for proval of the Coal Commission, upon a the use stated herein;
ii In case the coal is applied by the showing of the necessity of meeting the long term competition of oil, gas, or other buyer to a use other than that stated forms of fuel and energy, or for such herein, the buyer shall notify the seller other reasons as the Commission may in writing and the seller shall charge and deem appropriate in order to further the the buyer shall pay not less than the applicable minimum price for such coal effectual administration of the Act.
b Options and quotations for the sale in effect at the time of such change in of coal may be given by a Code Member, application, for the use to which it is Sales Agent, or Distributor for a period actually applied.
not exceeding fourteen 14 days: Pro 4 If the shipments called for by this vided, however, That in connection with order are not completed within thirty offers to sell to the United States Gov 30 days from the effective date of this ernment, or States or political subdivi order, the unfilled portion of this order sions thereof, options may be given for a shall not be delivered.
period not exceeding forty-five 45 days c All the terms and conditions of from the date of the offer or from the a sale of coal must be fully and expressly final date for the filing of offers. If the set forth either in the spot order or in applicable minimum price is increased the written confirmation thereof and beyond the quoted price and the option such spot order or written confirmation shall not have been exercised, or the quo thereof shall specifically contain all the tation accepted at the time of such terms required by 318.6 a of the increase, the option or quotation shall rules and regulations in this part.
thereupon become null and void.
Within ten 10 business days after the c All options must be made or con date of the making of a spot order or firmed in writing. Every Code Member the date of the written confirmation or his Sales Agent or a Distributor shall thereof, the Code Member or his Sales require of his offeree that the acceptance Agent or a Distributor shall file with the of a quotation shall be made or confirmed Statistical Bureau, or Bureaus, a copy of in writing and that the exercise of an such spot order or confirmation. Any option be in writing.!
modification of a spot order must also be 318.5 Spot orders, a A spot order made in writing and filed with the Sta shall be in writing or confirmed in writ tistical Bureau, or Bureaus, in the same ing within five 5 business days from manner.
the date of the making thereof.
d All spot orders for the sale of coal, b Each spot order shall among other the minimum price of which is subject things not inconsistent herewith contain to seasonal increase, or decrease, shall the following conditions which shall provide that the price payable thereunder either be endorsed upon the form of the shall be not less than the applicable order or upon the written confirmation minimum price in effect at the time of thereof by the Code Member or his Sales delivery.!

318.6 Contracts. Upon the revo cation or suspension of 318.4 a of the rules and regulations in this part, Code Members or Sales Agents of Code Mem bers or Distributors may thereafter en ter into contracts for the sale and deliv ery of coal upon the following terms and conditions:
a Every contract shall be in writing and shall express the entire agreement between the parties. The contract shall clearly state the date of execution, the effective date, the expiration date, the price agreed upon, the terms of pay ment, the size and grade of coal, the number of cars or tonnage to be shipped, the name of the Code Member, the name of the originating mine or mines, the destination to which the coal is to be shipped, and, where the coal is pur chased for consumption or processing, the use to which the coal is to be applied.
Contracts may also be made either 1
calling for a buyers entire requirements or a stated percentage of his require ments, showing the maximum tonnage to be shipped thereunder; or 2 cov ering a buyers requirements and stating the estimated tonnage to be shipped with an allowable overshipment of not exceeding ten 10 per cent of such es timated tonnage. The provisions of this paragraph relating to quantity shall not apply to contracts made with agen cies of the Federal, State or local gov ernments in case the terms required to be submitted in a bid or offer for such contract are in conflict with such pro visions.
b No contract for the sale of coal shall provide for delivery to commence at. a daté later than ninety 90 days from the date upon which such contract is entered into.
c No contract shall be made at a price below the applicable minimum price as established by the Coal Com mission at the time of the making of the contract and every contract shall pro vide that the price to be paid for the coal to be delivered thereunder shall be not less than the applicable minimum price in effect at the time of delivery.
d All contracts for the sale of coal, the m in im u m price of which is subject to seasonal increase or decrease, shall provide that the price payable thereun der shall be not less than the applicable minimum price in effect at the time of delivery.
e No contract shall provide for de livery over a period in excess of twelve 12 months except by special permis sion and approval of the Coal Commis sion, upon a showing of the necessity of meeting the long term contract com petition of oil, gas, or other forms of fuel and energy, or for such other rea sons as the Coal Commission may deem appropriate in order to further the ef fectual administration of the Act.
f Any change in the terms of a con tract shall be evidenced by a written