1. (a) At pool plants and bulk tank units, the dealer’s receipts of fluid milk products shall be allocated as follows:

   1. (1) Subtract from the total pounds of fluid milk products in class I the pounds of fluid milk products in:

      1. (i) Receipts of class I fluid milk products from other pool plants or bulk tank units.
      2. (ii) Receipts of exempt fluid milk products used or sold as class I fluid milk products.
   2. (2) The quantity of producer milk in class I shall be the combined pounds of fluid milk product remaining in class I and shall be allocated to receipts from producers and bulk tank units.

2. (b) At nonpool plants, the dealers receipts of fluid milk products shall be allocated as follows:

   1. (1) Subtract from the total pounds of fluid milk products in class I the pounds of fluid milk products in:

      1. (i) Receipts of exempt fluid milk products used or sold as class I fluid milk products.
      2. (ii) Receipts of class I fluid milk products from pool plants.
   2. (2) The remaining quantity is class I fluid milk products from sources other than pool milk.

The classification of pool milk received from producers by each dealer operating a pool plant or bulk tank unit or nonpool plant and each collecting cooperative which has arranged to make the reports and payments with respect to the milk of producers, shall be determined each month pursuant to subdivisions (a) and (b) of this section.