(1) All surplus milk not directed to other pool handlers for use in Montana class I and II sales as required by this subchapter shall be marketed and sold in an economically advantageous manner and any gain or loss shall be exclusively shared by all Montana pool dairymen.

(a) The surplus milk purchased by Montana pool handlers for out-of-state use, but processed in Montana, shall be treated the same as sales to nonpool handlers such as to a cheese plant.

(2) The pool dairymen, acting through the producer committee, shall retain the right to control and direct the marketing of the surplus milk.

(3) Unless directed otherwise by the producer committee or until a pool handler declines to perform the service, all surplus milk will be marketed and sold directly by the pool handlers in possession of that surplus milk under such direction, supervision, and approval as the producer committee in its discretion may elect to employ.

(a) In the event the producer committee markets the milk directly, it shall have the authority to hire such agents and incur such other expenses as necessary to fulfill that function.

(4) All proceeds received from the sale of surplus milk shall be deposited in the pool settlement reserve less the following deductions which shall be retained by the pool handler:

(a) the amount for which the pool handler is obligated to account to the pool settlement reserve based on the Montana class III minimum producer price;

(b) an administrative fee not exceeding $.02/CWT; and

(c) reasonable transportation expenses actually incurred by the pool handler. No farm pickup charges will be included as deductions. Farm pickup charges are the usual charges to the producer for transporting milk to the pool plant.

(5) The amounts paid into the pool settlement reserve account shall include all valuable consideration paid in any form and shall be accompanied by such reporting forms, invoices, contracts, and other documentation as may be requested by the Milk Control Bureau.