(1) Meadow Gold and Black Hills producers shall retain their quota existing at the time of the adoption of these regulations. All other initial quota for eligible producers will be determined as set forth in (2) and (4) below.

(2) Each eligible producer's initial quota, except for Meadow Gold and Black Hills producers, will be based upon his highest total production for the one-year period immediately preceding the effective date of this plan, divided by 365. The quota for eligible producers who are participating in the quota plan for Meadow Gold and Black Hills producers contained in ARM 32.24.501 through 32.24.506 on the effective date of this plan shall be the quota computed for those producers as of that date.

(3) On or before the 20th day after the effective date of this plan, the administrator shall compute a quota assignable to each eligible producer. The figure computed shall be rounded to the nearest whole number and assigned to each eligible producer as quota.

(4) Each producer's quota for each pool plant, except Meadow Gold and Black Hills producers, shall be based on his total production history for the one-year period immediately preceding the effective date of this plan, except that the amount of class III built into each producer's quota will be limited to a maximum percentage of class III that exists in the Meadow Gold plants for the one year period immediately preceding the effective date of this plan. All pool plants with a lower class III percentage than Meadow Gold's will receive quota for all their production pounds. All pool plants with a higher percentage of class III pounds than Meadow Gold shall allow their producers to receive quota for their production up to the same percentage class III as Meadow Gold.

(5) The administrator will promptly notify each eligible producer in writing of his computed quota, enter such information on the official records of the milk control bureau and thereafter continue to maintain a current and up-to-date record of each eligible producer's quota pounds whether the quota was received pursuant to (1) and (2) hereof or any other paragraph hereof or through transfer. The pool plant will be notified of the production history and quota assignment for each eligible producer. Upon request of such notice, each pool plant shall promptly post in a conspicuous place in its facility a list showing each eligible producer's quota.

(6) In computing initial quota, an eligible producer who has acquired a previous producer's production history through bona fide sale or transfer will receive such production history as credit.

(7) No such assignment shall be made to any eligible producer who elects within twenty-one days after receiving notice pursuant to (5) hereof to refuse quota assignment.

(8) An eligible producer who discontinues the delivery of milk must forfeit his entire quota effective at the end of the 90th day after his last delivery unless such quota is transferred prior to that time.

(9) A Montana producer (licensed or unlicensed by the Montana Milk Control Bureau) who was actively producing and selling grade A milk to a plant located outside Montana on June 1, 1990, but who has begun or will begin selling all his milk to a Montana pool plant, may become an eligible producer and be assigned quota under this plan. To be assigned quota, such producer shall apply to the milk control bureau within 90 days after the effective date of this paragraph, and be a licensed producer in Montana at the time he makes such application. The quota to be assigned such producer shall be computed and governed by the preceding paragraphs of this rule, except that each producer's quota shall be limited to the lowest percentage previously assigned to eligible producers under (4) after this plan initially became effective. If the Montana State Prison applies for and is assigned quota pursuant to this paragraph, thereafter the class I and II utilization of the prison shall be included in the computation of pool utilization under ARM 32.24.511 through ARM 32.24.515.