Article 3

If the total quantity covered by the contracts submitted to the intervention agency exceeds the quantity laid down in Article 1, Spain shall determine the rate of reduction to be applied to the above contracts.

Spain shall take the administrative steps necessary to approve the above contracts by 18 July 2005 at the latest. The approval shall specify any rate of reduction applied and the quantity of wine accepted per contract and shall stipulate that the producer may cancel the contract where the quantity to be distilled is reduced.

Spain shall notify the Commission before 1 August 2005 of the quantities of wine covered by approved contracts.

Spain may limit the number of contracts that individual producers may conclude under this Regulation.