5.8.2006 Official Journal of the European Union L 215/13 COMMISSION REGULATION (EC) No 1194/2006 of 4 August 2006 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine in Portugal THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine (1), and in particular point (f) in the second subparagraph of Article 33(1), Whereas: (1)  Article 30 of Regulation (EC) No 1493/1999 provides for the possibility of a crisis distillation measure in the event of exceptional market disturbance due to major surpluses. Such measures may be limited to certain cate- gories of wine andfor certain areas of production, and may apply to quality wines psr at the request of the Member State concerned. (2)  Portugual has requested that crisis distillation be opened for table wine produced in its territory. (3)  Considerable surpluses have been recorded on the table wine market in Portugal, which are reflected in a fall in prices and a worrying rise in stocks towards the end of the 2005/06 marketing year. In order to reverse this negative trend, and so remedy the difficult market situation, stocks of table wine should be reduced to a level that can be regarded as normal in terms of covering market requirements. (4)  Since the conditions laid down in Article 30(5) of Regu- lation (EC) No 1493/1999 are satisfied, a crisis distil- lation measure should be opened for a maximum of 200 000 hectolitres of table wine. (5)  The crisis distillation opened by this Regulation must comply with the conditions laid down by Commission Regulation (EC) No 1623/2000 of 25 July 2000 laying down detailed rules for implementing Regulation (EC) No 1493/1999 on the common organisation of the market in wine with regard to market mechanisms () as regards the distillation measure provided for in Article 30 of Regulation (EC) No 1493/1999. Other provisions of Regulation (EC) No 1623/2000 must also apply, in () OJ L 179, 14.7.1999, p. 1. Regulation as last amended by Regu- lation (EC) No 2165/2005 (O] L 345, 28.12.2005, p. 1). (®» OJ L 194, 31.7.2000, p. 45. Regulation as last amended by Regu- lation (EC) No 1820/2005 of 8 November 2005 (O] L 293, 9.11.2005, p. §). particular those concerning the delivery of alcohol to intervention agencies and the payment of advances. (6)  The price distillers must pay producers should be set at a level that permits the market disturbance to be dealt with by allowing producers to take advantage of the possi- bility afforded by this measure. (7 The product of crisis distillation must be raw or neutral alcohol only, for compulsory delivery to the intervention agency in order to avoid disturbing the market for potable alcohol, which is supplied largely by the distil- lation provided for in Article 29 of Regulation (EC) No 1493/1999. (8)  The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine, HAS ADOPTED THIS REGULATION: Article 1 Crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 is hereby opened for a maximum of 200 000 hectolitres of table wine in Portugal, in accordance with the provisions of Regulation (EC) No 1623/2000 concerning this type of distillation. Article 2 Producers may conclude delivery contracts as provided for in Article 65 of Regulation (EC) No 1623/2000 (hereinafter referred to as ‘the contract) from 16 August to 15 September 2006. Contracts shall be accompanied by proof that a security equal to EUR 5 per hectolitre has been lodged. Contracts may not be transferred. Article 3 1. If the total quantity covered by the contracts submitted to the intervention agency exceeds the quantity laid down in Article 1, Portugal shall determine the rate of reduction to be applied to the above contracts.