10. 9. 93 Official Journal of the European Communities No L 229/5 COMMISSION REGULATION (EEC) No 2491/93 of 9 September 1993 laying down detailed rules for the application of Council Regulation (EEC) No 3950/92 as regards Community financing of the programme for restructuring milk production THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector ('), as last amended by Regulation (EEC) No 1560/93 (3, and in particular the third paragraph of Article 8 and Article 11 thereof, Whereas the third paragraph of Article 8 of Regulation (EEC) No 3950/92 provides for the implementation at national level of a restructuring programme for milk production for which Community financing is to be granted ; whereas the conditions under which the finan- cing may be granted should be specified ; whereas in particular it appears advisable to exclude from such finan- cing certain reference quantities granted to producers on a priority basis and the release of which in return for compensation is not justified in the light of the aims pursued by the legislation in question ; whereas, however, quantities obtained before 1 April 1987 need not be so excluded ; Whereas it is necessary to determine the maximum amount of the Community compensation for the aban- donment of milk production; whereas, however, if may prove necessary in a given Member State to reduce or raise the level of compensation to take account of diffe- rent local conditions; whereas Member States should therefore be authorized in certain conditions to supple- ment the Community financing ; whereas it should also be possible for the Commission to increase the maximum amount of the compensation at the request of a Member State, and to deal with any exceptional situations which may arise there; whereas such increase may in no case result in the amounts as allocated in the third paragraph of Article 8 of Regulation (EEC) No 3950/92 being exceeded ; Whereas Member States must ensure that the conditions for the grant of compensation are complied with, and in particular that milk production is definitively abandoned, and that compensation unduly paid out is recovered; whereas for this purpose all applications must be the subject of administrative checks, and physical on-site inspections must be carried out; () OJ No L 405, 31. 12. 1992, p. 1. () OF No L 154, 25. 6. 1993, p. 30. Whereas the Management Committee for Milk and Milk Products has not delivered an opinion within the time limit set by its chairman, HAS ADOPTED THIS REGULATION : Article 1 1.  Within the limits of the Community financing set in the third paragraph of Article 8 of Regulation (EEC) No 3950/92, Member States are hereby authorized to pay, at the request of the producers concerned, compensation up to a maximum of ECU 50 per 100 kilogrammes of the reference quantity released, in accordance with the first indent of the first paragraph of the said Article 8. The following, however, shall not be eligible for the payment of compensation : — reference quantities given up in 1993/94, — reference quantities obtained from 1 April 1987 onwards pursuant to Article 3 (1) and (2) and/or Article 4 (1) (b) and (c) of Council Regulation (EEC) No 857/84 (%), — reference quantities obtained pursuant to Articles 3b and 3c of Regulation (EEC) No 857/84 and/or Article 2 (4) (c) of Council Regulation (EEC) No 1637/91 (*) and/or the second and third indents of Article 3 (2) of Regulation (EEC) No 3950/92. The amount of the compensation shall be converted into national currency using the agricultural conversion rate in force on 1 January 1994. Member States may : {(a) pay compensation at a rate lower than ECU 50 per 100 kilogrammes and use the balance to release addi- tional quantities ; ' (b) Community financing by increasing the amount of the compensation. The amount of the increase may be adjusted by each Member State within its territory to take account of differing local conditions as regards : () OJ No L 90, 1. 4. 1984, p. 13 ; repealed by Regulation (EEC) No 3950/92. () OJ No L 150, 15. 6. 1991, p. 30.