Pages 40145±40288 Vol. 61 8±1±96 No. 149 federal register August 1,1996 Thursday of thisissue. Washington, DC,seeannouncementontheinsidecover For informationonbriefingsinNewYork,NYand Briefings onHowToUsetheFederalRegister 1 II Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996

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2 III

Contents Federal Register Vol. 61, No. 149

Thursday, August 1, 1996

African Development Foundation Defense Department NOTICES See Air Force Department Meetings; Sunshine Act, 40182 See Navy Department PROPOSED RULES Agricultural Marketing Service Federal Acquisition Regulation (FAR): RULES Service contracting, 40284–40287 Papayas grown in Hawaii, 40146–40147 NOTICES Federal Acquisition Regulation (FAR): Agricultural Research Service Agency information collection activities— NOTICES Proposed collection; comment request, 40288 Patent licenses; non-exclusive, exclusive, or partially Meetings: exclusive: Science Board task forces, 40200–40201 University of Georgia Research Foundation, 40183 Privacy Act: Systems of records, 40201–40203 Agriculture Department Senior Executive Service: See Agricultural Marketing Service Performance Review Board; membership, 40203 See Agricultural Research Service See Forest Service Drug Enforcement Administration See Grain Inspection, Packers and Stockyards NOTICES Administration Applications, hearings, determinations, etc.: RULES High Standard Products, 40248 Upland cotton and rice; world market price determinations; CFR part removed, 40145–40146 Education Department NOTICES NOTICES Agency information collection activities: Agency information collection activities: Submission for OMB review; comment request, 40182– Submission for OMB review; comment request, 40205– 40183 40206

Air Force Department Energy Department NOTICES See Energy Information Administration Base realignment and closure: See Federal Energy Regulatory Commission Surplus Federal property— NOTICES Griffiss Air Force Base, NY, 40203–40204 Meetings: Environmental Management Site-Specific Advisory Arctic Research Commission Board— NOTICES Los Alamos National Laboratory, 40206 Meetings; Sunshine Act, 40193 Monticello Site, 40206 Reports; availability, etc.: Civil Rights Commission Weapons-usable fissile materials and surplus weapons- NOTICES usable plutonium disposition; long-term storage; Senior Executive Service: technical summaries, 40206–40207 Performance Review Board; membership, 40193 Energy Information Administration Coast Guard NOTICES RULES Agency information collection activities: Federal regulatory reform: Proposed collection; comment request, 40207–40208 Lifesaving equipment Correction, 40281 Environmental Protection Agency PROPOSED RULES Commerce Department Air pollution; standards of performance for new stationary See International Trade Administration sources: See National Oceanic and Atmospheric Administration Volatile organic compound (VOC) emissions— See Patent and Trademark Office Architectural coatings, 40161 NOTICES Agency information collection activities: Executive Office of the President Submission for OMB review; comment request, 40193– See Trade Representative, Office of United States 40194 Federal Aviation Administration Commodity Futures Trading Commission RULES NOTICES IFR altitudes, 40148–40150 Senior Executive Service: Standard instrument approach procedures, 40150–40153 Performance Review Board; membership, 40200 VOR Federal airways, 40147–40148 IV Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Contents

PROPOSED RULES Food and Drug Administration Airworthiness directives: RULES Short Brothers plc, 40159–40161 Biological products: Federal regulatory reform, 40153–40155 Federal Communications Commission NOTICES RULES Meetings: Practice and procedure: Advisory committees, panels, etc., 40235–40236 Regulatory fees (1996 FY); assessment and collection, 40155–40156 Forest Service Radio stations; table of assignments: NOTICES Alabama et al., 40156 Environmental statements; availability, etc.: PROPOSED RULES Chattahoochee/Oconee National Forests et al., AL, Common carrier services: 40183–40191 Telecommunications Act of 1996; implementation— General Services Administration Accounting safeguards, 40161–40181 PROPOSED RULES NOTICES Agency information collection activities: Federal Acquisition Regulation (FAR): Submission for OMB review; comment request, 40218 Service contracting, 40284–40287 NOTICES Meetings; Sunshine Act, 40218 Acquisition regulations: Affidavit of individual surety (SF 28); form stocking Federal Election Commission change, 40234 NOTICES Committees; establishment, renewal, termination, etc.: Meetings; Sunshine Act, 40218–40219 National World War II Memorial Design Competition Federal Advisory Committee, 40234 Federal Energy Regulatory Commission Federal Acquisition Regulation (FAR): NOTICES Agency information collection activities— Agency information collection activities: Proposed collection; comment request, 40288 Proposed collection; comment request, 40208–40209 Meetings: Electric rate and corporate regulation filings: National World War II Memorial Design Competition J.D. Enterprises et al., 40211–40214 Federal Advisory Committee, 40234 Northern States Power Co. et al., 40214–40217 Hydroelectric applications, 40217 Government Ethics Office Applications, hearings, determinations, etc.: RULES Columbia Gas Transmission Corp., 40209 Certificates of divestiture, public financial disclosure and Great Lakes Gas Transmission L.P., 40209–40210 conflicts of interest for executive branch officials Koch Gateway Pipeline Co., 40210 Correction, 40145 Northern Illinois Gas Co., 40210 Southern Natural Gas Co., 40210–40211 Grain Inspection, Packers and Stockyards Administration Williams Natural Gas Co., 40211 NOTICES Agency designation actions: Illinois et al., 40191–40192 Federal Maritime Commission Iowa et al., 40192 NOTICES Missouri, 40192–40193 Agreements filed, etc., 40219 Freight forwarder licenses: Health and Human Services Department New England Logistics Group Inc. et al., 40219 See Food and Drug Administration See Health Care Financing Administration Federal Reserve System See Substance Abuse and Mental Health Services NOTICES Administration Banks and bank holding companies: Formations, acquisitions, and mergers, 40219 Health Care Financing Administration Permissible nonbanking activities, 40220 NOTICES Medicare and Medicaid: Federal Trade Commission Program issuances and coverage decisions; quarterly listing, 40236–40242 NOTICES Prohibited trade practices: Indian Affairs Bureau Fresenius AG et al., 40220–40225 NOTICES Hale Products, Inc., 40225–40229 Operation and maintenance rate adjustments: Waterous Co., Inc., 40229–40234 Walker River Irrigation Project, NV, 40244

Fish and Wildlife Service Interior Department NOTICES See Fish and Wildlife Service Endangered and threatened species permit applications, See Indian Affairs Bureau 40243–40244 See Land Management Bureau Wild Bird Conservation Act of 1992: See Minerals Management Service Approval applications— See National Park Service Schriver, Mark, 40244 See Surface Mining Reclamation and Enforcement Office Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Contents V

Internal Revenue Service National Park Service NOTICES NOTICES On-line filing program participation and software testing, Environmental statements; availability, etc.: 40280 Juan Bautista de Anza National Historic Trail, CA and AZ, 40247–40248 International Trade Administration NOTICES National Science Foundation Antidumping: NOTICES Steel concrete reinforcing bars (rebar) from— Meetings: Turkey, 40194 Design, Manufacture, and Industrial Innovation Special Scope rulings; list, 40194–40196 Emphasis Panel, 40251–40252 Earth Sciences Special Emphasis Panel, 40252 Judicial Conference of the United States Materials Research Special Emphasis Panel, 40252 NOTICES Meetings: Navy Department Judicial Conference Advisory Committee on— NOTICES Appellate Procedure Rules, 40248 Environmental statements; availability, etc.: USS Seawolf submarine shock testing; public hearings, Justice Department 40204 See Drug Enforcement Administration Senior Executive Service: NOTICES Performance Review Boards; membership, 40204–40205 Pollution control; consent judgments: Cumberland Farms, Inc., et al., 40248 Nuclear Regulatory Commission NOTICES Labor Department Committees; establishment, renewal, termination, etc.: See Occupational Safety and Health Administration Stolen industrial radiography equipment working group, 40252–40253 Generic letters: Land Management Bureau Control rod drive mechanisms and other vessel head NOTICES penetrations; primary water stress corrosion cracking, Committees; establishment, renewal, termination, etc.: 40253–40257 California Desert District Advisory Council, 40244–40245 Memorandums of understanding: Occupational Safety and Health Administration; Energy Minerals Management Service Policy Act; gaseous diffusion plants, 40249–40250 NOTICES Outer Continental Shelf operations: Occupational Safety and Health Administration Central Gulf of Mexico— NOTICES Lease sales, 40245–40247 Memorandums of understanding: Nuclear Regulatory Commission; Energy Policy Act; National Aeronautics and Space Administration gaseous diffusion plants, 40249–40250 PROPOSED RULES Federal Acquisition Regulation (FAR): Office of United States Trade Representative Service contracting, 40284–40287 See Trade Representative, Office of United States NOTICES Federal Acquisition Regulation (FAR): Patent and Trademark Office Agency information collection activities— NOTICES Proposed collection; comment request, 40288 Agency information collection activities: Submission for OMB review; comment request, 40199 National Archives and Records Administration NOTICES Public Health Service Committees; establishment, renewal, termination, etc.: See Food and Drug Administration Presidential Libraries Advisory Committee, 40250 See Substance Abuse and Mental Health Services Administration National Oceanic and Atmospheric Administration RULES Securities and Exchange Commission Fishery conservation and management: NOTICES Bering Sea and Aleutian Islands groundfish, 40158 Agency information collection activities: Gulf of Alaska groundfish, 40158 Proposed collection; comment request, 40258 Ocean salmon off coasts of Washington, Oregon, and Self-regulatory organizations; proposed rule changes: California, 40157 Boston Stock Exchange, Inc., 40268–40270 West Pacific crustacean, 40156–40157 Chicago Stock Exchange, Inc., 40270–40274 NOTICES Government Securities Clearing Corp., 40275–40276 Coastal zone management programs and estuarine Philadelphia Stock Exchange, Inc ., 40276–40279 sanctuaries: Applications, hearings, determinations, etc.: State programs— ITT Hartford Life & Annuity Insurance Co. et al., 40258– Intent to evaluate performance, 40196 40260 West Coast salmon fisheries; northwest emergency LB Series Fund, Inc., et al., 40260–40263 assistance plan, 40197–40199 Quest for Value Global Funds, Inc., 40263 VI Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Contents

Scudder Global Fund, Inc., et al., 40263–40266 Transportation Department Van Eck Funds et al., 40266–40268 See Coast Guard See Federal Aviation Administration Substance Abuse and Mental Health Services See Surface Transportation Board Administration NOTICES Treasury Department Federal agency urine drug testing; certified laboratories See Internal Revenue Service meeting minimum standards, list, 40242–40243

Surface Mining Reclamation and Enforcement Office Separate Parts In This Issue RULES Permanent program and abandoned mine land reclamation Part II plan submissions: Department of Defense; General Services Administration; Oregon National Aeronautics and Space Administration, Coal exploration requirements; CFR correction, 40155. 40284–40288 Program development, administration, and enforcement grants: Administrative procedures; CFR correction, 40155 Reader Aids Surface Transportation Board Additional information, including a list of public laws, NOTICES telephone numbers, reminders, and finding aids, appears in Railroad operation, acquisition, construction, etc.: the Reader Aids section at the end of this issue. Pickens Railway Co., 40280

Trade Representative, Office of United States Electronic Bulletin Board NOTICES Free Electronic Bulletin Board service for Public Law Telecommunications trade; priority foreign country numbers, Federal Register finding aids, and a list of identification: documents on public inspection is available on 202–275– Korea, 40279 1538 or 275–0920. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Contents VII

CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

5 CFR 2634...... 40145 7 CFR 26...... 40145 928...... 40146 14 CFR 71...... 40147 95...... 40148 97 (2 documents) ...... 40150, 40151 Proposed Rules: 39...... 40159 21 CFR 601...... 40153 620...... 40153 630...... 40153 640...... 40153 650...... 40153 660...... 40153 680...... 40153 30 CFR 735...... 40155 937...... 40155 40 CFR Proposed Rules: 59...... 40161 46 CFR 70...... 40281 108...... 40281 133...... 40281 168...... 40281 199...... 40281 47 CFR 1...... 40155 73...... 40156 Proposed Rules: 32...... 40161 64...... 40161 48 CFR Proposed Rules: 7...... 40284 15...... 40284 16...... 40284 37...... 40284 46...... 40284 52...... 40284 50 CFR 660 (2 documents) ...... 40156, 40157 679 (2 documents) ...... 40158 40145

Rules and Regulations Federal Register Vol. 61, No. 149

Thursday, August 1, 1996

This section of the FEDERAL REGISTER On page 32636, in the second column, Federal Assistance Program contains regulatory documents having general in the ninth line of the regulatory text applicability and legal effect, most of which of paragraph (e)(1) of § 2634.1002, the The titles and numbers of the Federal are keyed to and codified in the Code of reference to ‘‘(g)(6)’’ is corrected to read Assistance Programs, as found in the Federal Regulations, which is published under ‘‘(e)(6)’’. Catalog of Federal Domestic Assistance, 50 titles pursuant to 44 U.S.C. 1510. to which this rule applies, are: Cotton [FR Doc. 96–19605 Filed 7–31–96; 8:45 am] Production Stabilization—10.052 and The Code of Federal Regulations is sold by BILLING CODE 6345±01±U the Superintendent of Documents. Prices of Rice Production Stabilization—10.065. new books are listed in the first FEDERAL Executive Order 12778 REGISTER issue of each week. DEPARTMENT OF AGRICULTURE This rule has been reviewed in accordance with Executive Order 12778. Office of the Secretary OFFICE OF GOVERNMENT ETHICS The provisions of this rule do not 5 CFR Part 2634 7 CFR Part 26 preempt State laws, are not retroactive, and do not require the exhaustion of any RIN 3209±AA06 RIN 0560±AE63 administrative appeal remedies.

Public Financial Disclosure, Conflicts Removal of Duplicate Cotton and Rice Executive Order 12372 of Interest, and Certificates of Regulations Divestiture for Executive Branch This program is not subject to the Officials; Correction AGENCY: Office of the Secretary, USDA. provisions of Executive Order 12372, ACTION: Final rule. which requires intergovernmental AGENCY: Office of Government Ethics consultation with State and local (OGE). SUMMARY: This rule removes officials. See the Notice related to 7 CFR ACTION: Final rule; correction. unnecessary, duplicative regulations part 3015, subpart V, published at 48 FR concerning the formulas by which the 29115 (June 24, 1983). SUMMARY: This document corrects a world prices of cotton and rice are typographical error in the text of one of calculated. This action is being taken as Paperwork Reduction Act the amended regulatory provisions of part of the National Performance the final rule on executive branch The amendments to 7 CFR part 26 set Review. certificates of divestiture, which was forth in this rule do not contain published by OGE in the Federal EFFECTIVE DATE: July 31, 1996. information collections that require Register on Tuesday, June 25, 1996 (61 FOR FURTHER INFORMATION CONTACT: clearance by OMB under the provisions FR 32633–32636). Gene S. Rosera, Agricultural Economist, of 44 U.S.C. 35. Food Grains Analysis Division, Farm EFFECTIVE DATE: July 25, 1996. Background FOR FURTHER INFORMATION CONTACT: Service Agency, U.S. Department of William E. Gressman, Office of Agriculture, AG BOX 0518, P.O. Box This final rule removes duplicate Government Ethics; telephone: 202– 2415, Washington, DC 20013–2415 or regulations. The regulations at 7 CFR 208–8000, extension 1110; FAX: 202– telephone 202–720–3452. part 26, Subpart A, were originally 208–8037. SUPPLEMENTARY INFORMATION: issued to establish the formula for SUPPLEMENTARY INFORMATION: In the calculating the world price for upland Executive Order 12866 above-noted final rule document cotton. These regulations were published by OGE, the regulatory text at This rule has been determined to be subsequently duplicated at 7 CFR part newly added paragraph (e)(1) of not significant and was not reviewed by 1427.25 but were not removed from § 2634.1002 of 5 CFR contained a the Office of Management and Budget their original location. Similarly, the reference to paragraphs (e)(2) through (OMB) under Executive Order 12866. regulations at 7 CFR part 26, subpart B, ‘‘(g)(6)’’ of that section, whereas in fact were originally issued to establish the Regulatory Flexibility Act it was intended to refer to paragraphs formula for calculating the world price (e)(2) through ‘‘(e)(6)’’ thereof. This The Regulatory Flexibility Act is not for rice. These regulations were correction document corrects that error. applicable to this rule because the duplicated at 7 CFR part 1421.25 but Approved: July 29th, 1996. Commodity Credit Corporation (CCC) is also were not removed from their not required by 5 U.S.C. 553 or any F. Gary Davis, original location. There being no need other provision of law to publish a for such duplication, this rule removes Deputy Director, Office of Government Ethics. notice of proposed rulemaking with the needless regulations under 7 CFR For the reasons set forth in the respect to the subject matter of this rule. part 26. preamble, the Office of Government Ethics is correcting the June 25, 1996 Environmental Evaluation List of Subjects in 7 CFR Part 26 publication of the final rule This action will have no significant Rice, Upland cotton, World market amendments on Public Financial impact on the quality of the human price. Disclosure, Conflicts of Interest, and environment. Therefore, neither an Certificates of Divestiture for Executive Environmental Assessment nor an Accordingly, under the authority at 7 Branch Officials, which was the subject Environmental Impact Statement is U.S.C. 1441–2, 7 CFR part 26 is removed of FR Doc. 96–15970, as follows: needed. and reserved. 40146 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

Signed at Washington, DC, on July 24, of 1937, as amended (7 U.S.C. 601–674), 121.601) as those having annual receipts 1996. hereinafter referred to as the ‘‘Act.’’ less than $500,000, and small Dan Glickman, The Department of Agriculture agricultural service firms are defined as Secretary. (Department) is issuing this rule in those whose annual receipts are less [FR Doc. 96–19545 Filed 7–31–96; 8:45 am] conformance with Executive Order than $5,000,000. The majority of papaya BILLING CODE 3410±05±P 12866. producers and handlers may be This rule has been reviewed under classified as small entities. Executive Order 12988, Civil Justice The papaya marketing order provides Agricultural Marketing Service Reform. Under the marketing order now authority for the Committee, with the in effect, handlers of papayas grown in approval of the Department, to 7 CFR Part 928 Hawaii are subject to assessments. formulate an annual budget of expenses Funds to administer the order are [Docket No. FV96±928±1 FIR] and collect assessments from handlers derived from such assessments. It is to administer the program. The Papayas Grown in Hawaii; Assessment intended that the assessment rate as members of the Committee are Rate issued herein will be applicable to all producers and handlers of papayas assessable papayas beginning July 1, grown in Hawaii. They are familiar with AGENCY: Agricultural Marketing Service, 1996, and continuing until amended, the Committee’s needs and with the USDA. suspended, or terminated. This rule will costs for goods and services in their ACTION: Final rule. not preempt any State or local laws, local area and are thus in a position to regulations, or policies, unless they formulate an appropriate budget and SUMMARY: The Department of present an irreconcilable conflict with assessment rate. The assessment rate is Agriculture (Department) is adopting as this rule. formulated and discussed in a public a final rule, without change, the The Act provides that administrative meeting. Thus, all directly affected provisions of an interim final rule proceedings must be exhausted before persons have an opportunity to establishing an assessment rate for the parties may file suit in court. Under participate and provide input. Papaya Administrative Committee section 608c(15)(A) of the Act, any The Committee met on April 26, 1996, (Committee) under Marketing Order No. handler subject to an order may file and unanimously recommended 1996– 928 for the 1996–97 and subsequent with the Secretary a petition stating that 97 expenditures of $485,300 and an fiscal periods. The Committee is the order, any provision of the order, or assessment rate of $0.0059 per pound of responsible for local administration of any obligation imposed in connection papayas. In comparison, last year’s the marketing order which regulates the with the order is not in accordance with budgeted expenditures were $435,800. handling of papayas grown in Hawaii. law and request a modification of the The assessment rate of $0.0059 is the Authorization to assess papaya handlers order or to be exempted therefrom. Such same as last year’s established rate. enables the Committee to incur handler is afforded the opportunity for Major expenditures recommended by expenses that are reasonable and a hearing on the petition. After the the Committee for the 1996–97 year necessary to administer the program. hearing the Secretary would rule on the include $160,000 for marketing and EFFECTIVE DATE: July 1, 1996. petition. The Act provides that the promotion activities, $130,000 for district court of the United States in any research and development, and $67,000 FOR FURTHER INFORMATION CONTACT: district in which the handler is an for salaries. Budgeted expenses for these Mary Kate Nelson, Marketing Assistant, inhabitant, or has his or her principal items in 1995–96 were $165,500, California Marketing Field Office, Fruit place of business, has jurisdiction to $115,000, and $67,000 respectively. and Vegetable Division, AMS, USDA, review the Secretary’s ruling on the The assessment rate recommended by 2202 Monterey Street, suite 102B, petition, provided an action is filed not the Committee was derived by dividing Fresno, California 93721, telephone later than 20 days after the date of the anticipated expenses by expected (209) 487–5901, FAX (209) 487–5906, or entry of the ruling. shipments of papayas grown in Hawaii. Charles L. Rush, Marketing Specialist, Pursuant to requirements set forth in Papaya shipments for the year are Marketing Order Administration the Regulatory Flexibility Act (RFA), the estimated at 30 million pounds which Branch, Fruit and Vegetable Division, Agricultural Marketing Service (AMS) should provide $177,000 in assessment AMS, USDA, P.O. Box 96456, room has considered the economic impact of income. Income derived from handler 2523–S, Washington, DC 20090–6456, this rule on small entities. assessments, the Hawaii Department of telephone (202) 720–5127, FAX (202) The purpose of the RFA is to fit Agriculture, the USDA’s Foreign 720–5698. Small businesses may request regulatory actions to the scale of Agricultural Service, the County of information on compliance with this business subject to such actions in order Hawaii, and the Japanese Inspection regulation by contacting: Jay Guerber, that small businesses will not be unduly program, along with interest income and Marketing Order Administration or disproportionately burdened. funds from the Committee’s authorized Branch, Fruit and Vegetable Division, Marketing orders issued pursuant to the reserve, will be adequate to cover AMS, USDA, P.O. Box 96456, room Act, and the rules issued thereunder, are budgeted expenses. Funds in the reserve 2523–S, Washington, DC 20090–6456, unique in that they are brought about will be kept within the maximum telephone (202) 720–2491, FAX (202) through group action of essentially permitted by the order. 720–5698. small entities acting on their own An interim final rule regarding this SUPPLEMENTARY INFORMATION: This rule behalf. Thus, both statutes have small action was published in the June 4, is issued under Marketing Agreement entity orientation and compatibility. 1996, issue of the Federal Register (61 No. 928 and Order No. 928, both as There are approximately 400 FR 28000). That rule provided for a 30- amended (7 CFR part 928), regulating producers of papayas in the production day comment period. No comments the handling of papayas grown in area and approximately 60 handlers were received. Hawaii, hereinafter referred to as the subject to regulation under the While this rule will impose some ‘‘order.’’ The marketing agreement and marketing order. Small agricultural costs on handlers, the costs are in the order are effective under the producers have been defined by the form of uniform assessments on all Agricultural Marketing Agreement Act Small Business Administration (13 CFR handlers. Some of the costs may be Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40147 passed on to producers. However, these List of Subjects in 7 CFR Part 928 FAA. No comments objecting to the costs should be offset by the benefits Marketing agreements, Papayas, proposal were received. Except for derived by the operation of the Reporting and recordkeeping editorial changes and the removal of the marketing order. Therefore, the requirements. language to exclude Canadian airspace Agricultural Marketing Service has from V–14, this amendment is the same determined that this rule will not have PART 928ÐPAPAYAS GROWN IN as that proposed in the notice. Domestic a significant economic impact on a HAWAII VOR Federal airways are published in substantial number of small entities. paragraph 6010(a) of FAA Order Accordingly, the interim rule The assessment rate established in 7400.9C dated August 17, 1995, and amending 7 CFR part 928 which was this rule will continue in effect effective September 16, 1995, which is published at 61 FR 28000 on June 4, indefinitely unless modified, incorporated by reference in 14 CFR 1996, is adopted as a final rule without suspended, or terminated by the 71.1. The airways listed in this change. Secretary upon recommendation and document will be published information submitted by the Dated: July 25, 1996. subsequently in the Order. Committee or other available Sharon Bomer Lauritsen, The Rule information. Acting Director, Fruit and Vegetable Division. Although this assessment rate is [FR Doc. 96–19520 Filed 7–31–96; 8:45 am] This amendment to 14 CFR part 71 effective for an indefinite period, the BILLING CODE 3410±02±P alters V–2 and V–14 from the Albany, Committee will continue to meet prior NY, VOR to the Gardner, MA, VOR. to or during each fiscal period to These airways are the primary arrival recommend a budget of expenses and DEPARTMENT OF TRANSPORTATION routes to Boston, MA, from the west. At consider recommendations for the present time, the segment of the modification of the assessment rate. The Federal Aviation Administration airways between the Albany VOR and dates and times of Committee meetings the Gardner VOR is limited to a 10,000- 14 CFR Part 71 are available from the Committee or the foot minimum en route altitude (MEA). Department. Committee meetings are [Airspace Docket No. 95±ANE±11] Realigning these airways will allow for open to the public and interested RIN 2110±AA66 a lower MEA to be assigned along these persons may express their views at these routes and will provide more flexibility meetings. The Department will evaluate Alteration of V±2 and V±14; NY for air traffic operations in that area. Committee recommendations and other This alteration will enhance utilization available information to determine AGENCY: Federal Aviation of that airspace. In addition, the whether modification of the assessment Administration (FAA), DOT. airspace description for V–14 in the rate is needed. The Committee’s 1996– ACTION: Final rule. NPRM errorneously included Canadian 97 budget and those for subsequent airspace. This action corrects that error SUMMARY: fiscal periods will be reviewed and, as This rule alters Federal because V–14 does not penetrate the appropriate, approved by the Airways V–2 and V–14 between the Canadian airspace. Department. Albany, NY, Very High Frequency The FAA has determined that this After consideration of all relevant Omnidirectional Range (VOR) and the Gardner, MA, VOR. This action allows regulation only involves an established material presented, including the body of technical regulations for which information and recommendation more flexibility for air traffic operations and enhances utilization of that frequent and routine amendments are submitted by the Committee and other necessary to keep them operationally available information, it is hereby found airspace. In addition, the airspace current. It, therefore—(1) is not a that this rule, as hereinafter set forth, description for V–14 in the notice of ‘‘significant regulatory action’’ under will tend to effectuate the declared proposed rulemaking (NPRM) Executive Order 12866; (2) is not a policy of the Act. errorneously included Canadian airspace. This action corrects that error. ‘‘significant rule’’ under DOT Pursuant to 5 U.S.C. 553, it is also EFFECTIVE DATE: 0901 UTC, October 10, Regulatory Policies and Procedures (44 found and determined that good cause 1996. FR 11034; February 26, 1979); and (3) exists for not postponing the effective FOR FURTHER INFORMATION CONTACT: does not warrant preparation of a date of this rule until 30 days after regulatory evaluation as the anticipated publication in the Federal Register Patricia P. Crawford, Airspace and Rules Division, ATA–400, Office of Air Traffic impact is so minimal. Since this is a because: (1) The Committee needs to routine matter that will only affect air have sufficient funds to pay its expenses Airspace Management, Federal Aviation Administration, 800 Independence traffic procedures and air navigation, it which are incurred on a continuous is certified that this rule will not have basis; (2) the 1996–97 fiscal period Avenue, SW., Washington, DC 20591; telephone: (202) 267–8783. a significant economic impact on a began on July 1, 1996, and the substantial number of small entities marketing order requires that the rate of SUPPLEMENTARY INFORMATION: under the criteria of the Regulatory assessment for each fiscal period apply Flexibility Act. to all assessable papayas handled during History such fiscal period; (3) handlers are On September 21, 1995, the FAA List of Subjects in 14 CFR Part 71 aware of this action which was proposed to amend Title 14 of the Code unanimously recommended by the of Federal Regulations part 71 (14 CFR Airspace, Incorporation by reference, Committee at a public meeting and is part 71) to alter V–2 and V–14 from the Navigation (air). similar to other assessment rate actions Albany, NY, VOR to the Gardner, MA, Adoption of the Amendment issued in past years; and (4) an interim VOR (60 FR 48937). Interested parties final rule was published on this action were invited to participate in this In consideration of the foregoing, the and provided for a 30-day comment rulemaking proceeding by submitting Federal Aviation Administration period, no comments were received. written comments on the proposal to the amends 14 CFR part 71 as follows: 40148 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

PART 71Ð[AMENDED] 14 CFR Part 95 In addition, those various reasons or circumstances require making this 1. The authority citation for part 71 [Docket No. 28621; Amdt. No. 397] amendment effective before the next continues to read as follows: IFR Altitudes; Miscellaneous scheduled charting and publication date Authority: 49 U.S.C. 106(g), 40103, 40113, Amendments of the flight information to assure its 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– timely availability to the user. The 1963 Comp., p. 389; 14 CFR 11.69. AGENCY: Federal Aviation effective date of this amendment reflects § 71.1 [Amended] Administration (FAA), DOT. those considerations. In view of the close and immediate relationship 2. The incorporation by reference in ACTION: Final rule. 14 CFR 71.1 of the Federal Aviation between these regulatory changes and SUMMARY: Administration Order 7400.9C, Airspace This amendment adopts safety in air commerce, I find that notice Designations and Reporting Points, miscellaneous amendments to the and public procedure before adopting dated August 17, 1995, and effective required IFR (instrument flight rules) this amendment are impracticable and September 16, 1995, is amended as altitudes and changeover points for contrary to the public interest and that follows: certain Federal airways, jet routes, or good cause exists for making the direct routes for which a minimum or amendment effective in less than 30 Paragraph 6010(a)—Domestic VOR Federal maximum en route authorized IFR days. The FAA has determined that this Airways altitude is prescribed. This regulatory regulation only involves an established * * * * * action is needed because of changes body of technical regulations for which V–2 [Revised] occurring in the national Airspace frequent and routine amendments are System. These changes are designed to From Seattle, WA; Ellensburg, WA; Moses necessary to keep them operationally Lake, WA; Spokane, WA; Mullan Pass, ID; provide for the safe and efficient use of current. the navigable airspace under instrument Missoula, MT; Drummond, MT; Helena, MT; It, therefore—(1) is not a ‘‘significant ° ° conditions in the affected areas. INT Helena 119 and Livingston, MT, 322 regulatory action’’ under Executive radials; Livingston; Billings, MT; Miles City, EFFECTIVE DATE: 0901 UTC, August 15, Order 12866; (2) is not a ‘‘significant MT; 24 miles, 90 miles, 55 MSL, Dickinson, 1996. ND; 10 miles, 60 miles, 38 MSL, Bismarck, rule’’ under DOT Regulatory Policies ND; 14 miles, 62 miles, 34 MSL, Jamestown, FOR FURTHER INFORMATION CONTACT: and Procedures (44 FR 11034; February ND; Fargo, ND; Alexandria, MN; Gopher, Paul J. Best, Flight Procedures 26, 1979); and (3) does not warrant MN; Nodine, MN; Lone Rock, WI; Madison, Standards Branch (AFS–420), Technical preparation of a regulatory evaluation as WI; Badger, WI; Muskegon, MI; Lansing, MI; Programs Division, Flight Standards the anticipated impact is so minimal. Salem, MI; INT Salem 093° and Aylmer, ON, Service Federal Aviation For the same reason, the FAA certifies ° Canada, 254 radials; Aylmer; INT Aylmer Administration, 800 Independence that this amendment will not have a ° ° 086 and Buffalo, NY, 259 radials; Buffalo; Avenue, SW., Washington, D.C. 20591; significant economic impact on a Rochester, NY; Syracuse, NY; Utica, NY; telephone: (202) 267–8277. substantial number of small entities Albany, NY; INT Albany 084° and Gardner, MA, 284° radials; to Gardner. The airspace SUPPLEMENTARY INFORMATION: This under the criteria of the Regulatory within Canada is excluded. amendment to part 95 of the Federal Flexibility Act. Aviation Administration (14 CFR part * * * * * List of Subjects in 14 CFR Part 95 95) amends, suspends, or revokes IFR V–14 [Revised] altitudes governing the operation of all Airspace, Navigation (air). From Chisum, NM, via Lubbock, TX; aircraft in flight over a specified route Childress, TX; Hobart, OK; Will Rogers, OK; or any portion of that route, as well as Issued in Washington, D.C. on July 5, 1996. INT Will Rogers 052° and Tulsa, OK, 246° the changeover points (COPs) for Thomas C. Accardi, radials; Tulsa; Neosho, MO; Springfield, MO; ° Federal airways, jet routes, or direct Director, Flight Standards Service. Vichy, MO; INT Vichy 067 and St. Louis, routes as prescribed in part 95. MO, 225° radials; Vandalia, IL; Terre Haute, Adoption of the Amendment IN; Indianapolis, IN; Muncie, IN; Findlay, The Rule OH; DRYER, OH; Jefferson, OH; Erie, PA; Accordingly, pursuant to the The specified IFR altitudes, when Dunkirk, NY; Buffalo, NY; Geneseo, NY; authority delegated to me by the ° used in conjunction with the prescribed Georgetown, NY; INT Georgetown 093 and Administrator, part 95 of the Federal Albany, NY, 270° radials; Albany; INT changeover points for those routes, Aviation Regulations (14 CFR part 95) is Albany 084° and Gardner, MA, 284° radials; ensure navigation aid coverage that is amended as follows effective at 0901 Gardner; to Norwich, CT. The airspace adequate for safe flight operations and UTC, August 15, 1996: within R–5207 is excluded. free of frequency interference. The * * * * * reasons and circumstances that create 1. The authority citation for part 95 Issued in Washington, DC, on July 25, the need for this amendment involve continues to read as follows: 1996. matters of flight safety and operational Authority: 49 U.S.C. 106(g), 40103, 40106, Jeff Griffith, efficiency in the National airspace 40113, 40114, 40120, 44502, 44514, 44719, Program Director for Air Traffic Airspace System, are related to published 44721. Management. aeronautical charts that are essential to [FR Doc. 96–19606 Filed 7–31–96; 8:45 am] the user, and provide for the safe and 2. Part 95 is amended to read as BILLING CODE 4910±13±P efficient use of the navigable airspace. follows: Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40149

REVISIONS TO MINIMUM ENROUTE IFR ALTITUDES AND CHANGEOVER POINTS [Amendment 397 Effective Date, August 15, 1996]

From To MEA

§ 95.1001 Direct RoutesÐU.S. Atlantic RoutesÐB9 is Added to Read Marathon, FL NDB ...... *Deeds, FL Fix ...... **2000 *4000±MRA **1500±MOCA § 95.6099 VOR Federal Airway 99 is Amended to Delete Hartford, CT Vortac ...... *Graym, MA Fix ...... **3000 *4000±MRA **2500±MOCA § 95.6151 VOR Federal Airway 151 is Amended to Read in Part Gails, MA Fix ...... Inndy, RI Fix ...... 2000 Inndy, RI Fix ...... Providence, RI Vortac ...... *2000 *1500±MOCA § 956175 VOR Federal Airway 175 is Amended to Read in Part Madup, IA Fix ...... *Welte, IA Fix ...... 5500 *3900±MRA Welte, IA Fix ...... Sioux City, IA Vortac ...... 3000 § 95.6189 VOR Federal Airway 189 is Amended to Read in Part Wright Brothers, NC VOR/DME ...... Tar River, NC Vortac ...... *4000 *2000±MOCA § 95.6233 VOR Federal Airway 233 is Amended to Read in Part Gaylord, MI VOR/DME ...... *Dripe, MI Fix ...... 3100 *5000±MRA 95.6268 VOR Federal Airway 268 is Amended by Adding Tonni, MA Fix ...... *Meshl, ME Fix ...... 5000 *5000±MRA Meshl, ME Fix ...... Sappe, ME Fix ...... 3000 Sappe, ME Fix ...... Augusta, ME VOR/DME ..... *3000 *1800±MOCA Is Amended to Read in Part Inndy, RI Fix ...... *Tonni, MA Fix ...... 6000 *6000±MRA § 95.6451 VOR Federal Airway 451 is Amended to Delete Groton, CT VOR ...... Avonn, RI Fix ...... 6000 Avonn, RI Fix ...... Inndy, RI Fix ...... 2000 Inndy, RI Fix ...... *Tonni, MA Fix ...... 6000 *6000±MRA Tonni, MA Fix ...... Seedy, NH Fix ...... 5000

From To MEA MAA

§ 95.7062 Jet Route No. 62 is Amended to Delete Nantucket, MA Vortac ...... Saile, MA W/P ...... 18000 45000 § 95.7086 Jet Route No. 86 is Amended by Adding Beatty, NV Vortac ...... Fuzzy, NV Fx ...... 18000 45000 Fuzzy, NV Fx ...... Boulder City, NV Vortac ..... 29000 45000 § 95.7092 Jet Route No. 92 is Amended to Read in Part Beatty, NV Vortac ...... Boulder City, NV Vortac ..... 24000 45000

§ 95.7092 VOR FEDERAL AIRWAYS CHANGEOVER POINTS

Airway segment Changeover Points From To Distance From

J±92 Beatty, NV Vortac ...... Boulder City, NV, Vortac .... 12 Boulder City. 40150 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

[FR Doc. 96–19221 Filed 7–31–96; 8:45 am] Superintendent of Documents, U.S. Further, the SIAPs contained in this BILLING CODE 4910±13±M Government Printing Office, amendment are based on the criteria Washington, DC 20402. contained in the U.S. Standard for FOR FURTHER INFORMATION CONTACT: Paul Terminal Instrument Approach 14 CFR Part 97 J. Best, Flight Procedures Standards Procedures (TERPS). In developing [Docket No. 28644; Amdt. No. 1743] Branch (AFS–420), Technical Programs these SIAPs, the TERPS criteria were Division, Flight Standards Service, applied to the conditions existing or RIN 2120±AA65] Federal Aviation Administration, 800 anticipated at the affected airports. Independence Avenue, SW., Because of the close and immediate Standard Instrument Approach relationship between these SIAPs and Procedures; Miscellaneous Washington, DC 20591; telephone (202) 267–8277. safety in air commerce, I find that notice Amendments and public procedure before adopting SUPPLEMENTARY INFORMATION: This these SIAPs are impracticable and AGENCY: Federal Aviation amendment to part 97 of the Federal contrary to the public interest and, Administration (FAA), DOT. Aviation Regulations (14 CFR part 97) where applicable, that good cause exists ACTION: Final rule. establishes, amends, suspends, or for making some SIAPs effective in less revokes Standard Instrument Approach SUMMARY: This amendment establishes, than 30 days. Procedures (SIAPs). The complete The FAA has determined that this amends, suspends, or revokes Standard regulatory description of each SIAP is Instrument Approach Procedures regulation only involves an established contained in official FAA form body of technical regulations for which (SIAPs) for operations at certain documents which are incorporated by airports. These regulatory actions are frequent and routine amendments are reference in this amendment under 5 necessary to keep them operationally needed because of the adoption of new U.S.C. 552(a), 1 CFR part 51, and § 97.20 or revised criteria, or because of changes current. It, therefore—(1) is not a of the Federal Aviation Regulations ‘‘significant regulatory action’’ under occurring in the National Airspace (FAR). The applicable FAA Forms are System, such as the commissioning of Executive Order 12866; (2) is not a identified as FAA Forms 8260–3, 8260– ‘‘significant rule’’ under DOT new navigational facilities, addition of 4, and 8260–5. Materials incorporated new obstacles, or changes in air traffic Regulatory Policies and Procedures (44 by reference are available for FR 11034; February 26, 1979); and (3) requirements. These changes are examination or purchase as stated designed to provide safe and efficient does not warrant preparation of a above. regulatory evaluation as the anticipated use of the navigable airspace and to The large number of SIAPs, their impact is so minimal. For the same promote safe flight operations under complex nature, and the need for a reason, the FAA certifies that this instrument flight rules at the affected special format make their verbatim amendment will not have a significant airports. publication in the Federal Register economic impact on a substantial DATES: An effective date for each SIAP expensive and impractical. Further, number of small entities under the is specified in the amendatory airmen do not use the regulatory text of criteria of the Regulatory Flexibility Act. provisions. the SIAPs, but refer to their graphic Incorporation by reference-approved depiction on charts printed by List of Subjects in 14 CFR Part 97 by the Director of the Federal Register publishers of aeronautical materials. on December 31, 1980, and reapproved Air Traffic Control, Airports, Thus, the advantages of incorporation Navigation (Air). as of January 1, 1982. by reference are realized and ADDRESSES: Availability of matters publication of the complete description Issued in Washington, DC on July 26, 1996. incorporated by reference in the of each SIAP contained in FAA form Thomas C. Accardi, amendment is as follows: documents is unnecessary. The Director, Flight Standards Service. For Examination provisions of this amendment state the Adoption of the Amendment affected CFR (and FAR) sections, with Accordingly, pursuant to the 1. FAA Rules Docket, FAA the types and effective dates of the authority delegated to me, part 97 of the Headquarters Building, 800 SIAPs. This amendment also identifies Federal Aviation Regulations (14 CFR Independence Avenue, SW., the airport, its location, the procedure part 97) is amended by establishing, Washington, DC 20591; identification and the amendment 2. The FAA Regional Office of the amending, suspending, or revoking number. region in which the affected airport is Standard Instrument Approach located; or The Rule Procedures, effective at 0901 UTC on 3. The Flight Inspection Area Office This amendment to part 97 is effective the dates specified, as follows: which originated the SIAP. upon publication of each separate SIAP PART 97ÐSTANDARD INSTRUMENT For Purchase as contained in the transmittal. Some APPROACH PROCEDURES Individual SIAP copies may be SIAP amendments may have been obtained from: previously issued by the FAA in a 1. The authority citation for part 97 is 1. FAA Public Inquiry Center (APA– National Flight Data Center (FDC) revised to read as follows: 200), FAA Headquarters Building, 800 Notice to Airmen (NOTAM) as an Authority: 49 U.S.C. 106(g), 40103, 40113, Independence Avenue, SW., emergency action of immediate flight 40120, 44701; and 14 CFR 11.49(b)(2). Washington, DC 20591; or safety relating directly to published 2. Part 97 is amended to read as 2. The FAA Regional Office of the aeronautical charts. The circumstances follows: region in which the affected airport is which created the need for some SIAP located. amendments may require making them §§ 97.23, 97.25, 97.27, 97.29, 97.31, 97.33, effective in less than 30 days. For the 97.35 [Amended] By Subscription remaining SIAPs, an effective date at By amending: § 97.23 VOR, VOR/ Copies of all SIAPs, mailed once least 30 days after publication is DME, VOR or TACAN, and VOR/DME every 2 weeks, are for sale by the provided. or TACAN; § 97.25 LOC, LOC/DME, Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40151

LDA, LDA/DME, DSF, SDF/DME; Baltimore, MD, Baltimore-Washington Intl, Greenville, TX, Majors, VOR/DME–A, Amdt § 97.27 NDB, NDB, DME; § 97.29 ILS, VOR/DME RWY 22, Amdt 9 2 CANCELLED ILS/DME, ISMLS, MLS, MLS/DME, Baltimore, MD, Baltimore-Washington Intl, Greenville, TX, Majors, NDB RWY 17, Amdt MLS/RNAV; § 97.31 RADAR SIAPs; VOR/DME RWY 33L, Amdt 1 5 Frederick, MD, Frederick Muni, ILS RWY 23, Greenville, TX, Majors, NDB RWY 35, Amdt § 97.33 RNAV SIAPs; and § 97.35 Amdt 3 1 COPTER AIAPs, identified as follows: Sussex, NJ, Sussex, GPS RWY 3, Orig Greenville, TX, Majors, ILS RWY 17, Amdt .. . Effective August 15, 1996 Aurora, OR, Aurora State, LOC/DME RWY 5 17, Orig Henderson, TX, Rusk County, VOR/DME OR Windsor Locks, CT, Bradley Intl, VOR OR Portland, OR, Portland Intl, MLS RWY 28L, GPS–A, Amdt 3 TACAN RWY 6, Orig, CANCELLED Orig Lancaster, TX, Lancaster, NDB OR GPS RWY Windsor Locks, CT, Bradley Intl, VOR RWY Moses Lake, WA, Grant County, MLS RWY 31, Amdt 1 15, Orig 32R, Orig Longview, TX, Gregg County, VOR OR Windsor Locks, CT, Bradley Intl, VOR OR .. . Effective October 10, 1996 TACAN, RWY 13, Amdt 20 TACAN RWY 15, Amdt 2A CANCELLED Longview, TX, Gregg County, ILS RWY 13, Windsor Locks, CT, Bradley Intl, VOR OR Kodiak, AK, Kodiak, GPS RWY 25, Orig Amdt 11 TACAN OR GPS RWY 24, Amdt 1, Lincoln, CA, Lincoln Regional/Karl Harder Mesquite, TX, Mesquite Metro, NDB OR GPS CANCELLED Field, ILS RWY 15, Orig RWY 17, Amdt 5 Windsor Locks, CT, Bradley Intl, VOR OR Holyoke, CO, Holyoke, GPS RWY 17, Orig Mesquite, TX, Mesquite Metro, LOC BC RWY TACAN OR GPS RWY 33, Orig, Holyoke, CO, Holyoke, GPS RWY 35, Orig 35, Amdt 2 CANCELLED Windsor Locks, CT, Bradley Intl, GPS RWY Mesquite, TX, Mesquite Metro, ILS RWY 17, Windsor Locks, CT, Bradley Intl, NDB OR 15, Amdt 1 Amdt 1 GPS RWY 6, Amdt 27 Dover/Cheswold, DE, Delaware Airpark, GPS Palestine, TX, Palestine Muni, VOR/DME OR Windsor Locks, CT, Bradley Intl, COPTER RWY 9, Orig GPS RWY 17, Amdt 4 ILS 058, Amdt 1 Dover/Cheswold, DE, Delaware Airpark, GPS Paris, TX, Cox Field, VOR OR GPS RWY 35, Windsor Locks, CT, Bradley Intl, ILS RWY 6, RWY 27, Orig Amdt 1 Amdt 33 Bowling Green, KY, Bowling Green-Warren Rockwall, TX, Rockwall Muni, VOR/DME OR Windsor Locks, CT, Bradley Intl, ILS RWY County Regional, GPS RWY 21, Orig GPS RWY 16, Amdt 4 CANCELLED 24, Amdt 7 Hammond, LA, Hammond Muni, GPS RWY Rockwall, TX, Rockwall Muni, NDB–A, Orig Windsor Locks, CT, Bradley Intl, ILS RWY 31, Orig Rockwall, TX, Rockwall Muni, GPS RWY 16, 33, Amdt 6 Norfolk, NE, Karl Stefan Memorial, VOR OR Orig Belle Plaine, IA, Belle Plaine Muni, NDB GPS RWY 19, Amdt 7 Rockwall, TX, Rockwall Muni, GPS RWY 34, RWY 35, Orig Norfolk, NE, Karl Stefan Memorial, ILS RWY Orig Sioux City, IA, Sioux Gateway, GPS RWY 17, 1, Amdt 4 Sherman, TX, Sherman Muni, VOR/DME–A, Orig Manchester, NH, Manchester, VOR/DME Orig Sioux City, IA, Sioux Gateway, VOR/DME RNAV RWY 6, Amdt 4 Sherman, TX, Sherman Muni, VOR/DME OR RNAV RWY 17, Orig-A CANCELLED Erwin, NC, Harnett County, GPS RWY 04, GPS RWY 34, Amdt 4 CANCELLED Isoco County, MI, East Tawas, VOR OR GPS– Orig Terrell, TX, Terrell Muni, VOR/DME OR GPS A, Amdt 7 Southport, NC, Brunswick County, GPS RWY RWY 35, Amdt 3 CANCELLED Oscoda, MI, Oscode-Wurtsmith, VOR OR 23, Orig Terrell, TX, Terrell Muni, NDB OR GPS RWY GPS RWY 6, Orig Altoona, PA, Altoona-Blair County, VOR OR 17, Amdt 3 Oscoda, MI, Oscoda-Wurtsmith, VOR OR GPS–A, Amdt 4 Chesapeake, VA, Chesapeake Muni, GPS GPS RWY 6, Orig-B, CANCELLED Athens, TX, Athens Muni, NDB RWY 35, RWY 5, Orig Oscoda, MI, Oscoda-Wurtsmith, ILS/DME Amdt 4 Note: The FAA published Procedures in RWY 24, Amdt 1 Bonham, TX, Jones Field, VOR/DME RWY Docket No. 28625, Amdt No. 1740 to Part 97 Lincolnton, NC, Lincoln County, LOC RWY 17, Orig of the Federal Aviation Regulations (VOL 61, 23, Orig Bonham, TX, Jones Field, VOR/DME OR GPS FR No. 139, Page 37353, dated July 18, 1996 Columbus, OH, Port Columbus Intl, NDB RWY 17, Amdt 2 CANCELLED under Section 97.23 effective 12 Sep 96 RWY 28R, Orig Bonham, TX, Jones Field, NDB RWY 17, which is hereby amended: Scappoose, OR, Scappoose Industrial Amdt 3 Airpark, LOC/DME RWY 15, Orig Bowie, TX, Bowie Muni, NDB OR GPS RWY CHANGE EFFECTIVE DATE TO 10 OCT Devils Lake, ND, Devils Lake Muni, NDB 17, Amdt 3 1996, FOR THE FOLLOWING PROCEDURES; RWY 31, Orig Bowie, TX, Bowie Muni, NDB OR GPS RWY St. Mary’s, AK, St Mary’s, GPS RWY 16, Orig Devils Lake, ND, Devils Lake Muni, ILS RWY 35, Amdt 3 St. Mary’s, AK, St Mary’s, GPS RWY 34, Orig 31, Orig Caddo Mills, TX, Caddo Mills Muni, NDB Devils Lake, ND, Devils Lake Muni, ILS/DME RWY 35L, Amdt 2 [FR Doc. 96–19607 Filed 7–31–96; 8:45 am] RWY 31, Amdt 1 CANCELLED Caddo Mills, TX, Caddo Mills Muni, GPS BILLING CODE 4710±13±M Pittsburgh, PA, Pittsburgh International, ILS RWY 35L, Orig RWY 10R, Amdt 7 Dallas, TX, Dallas Love Field, ILS RWY 13L, Dallas-Fort Worth, TX, Dallas-Ft Worth Amdt 29 14 CFR Part 97 International, ILS RWY 17L, Orig Dallas, TX, Dallas Love Field, ILS RWY 13R, Dallas-Fort Worth, TX, Dallas-Ft Worth Amdt 3 [Docket No. 28645; Amdt. No. 1744] International, ILS RWY 35R, Orig Dallas, TX, Dallas Love Field, ILS RWY 31L, RIN 2120±AA65 Fort Worth, TX, Fort Worth Meacham Intl, Amdt 19 NDB OR GPS RWY 34R, Amdt 6 Dallas, TX, Dallas Love Field, ILS RWY 31R, Standard Instrument Approach Fort Worth, TX, Fort Worth Meacham Intl, Amdt 3 Procedures; Miscellaneous Denton, TX, Denton Muni, NDB OR GPS LOC BC RWY 34R, Amdt 7 CANCELLED Amendments Fort Worth, TX, Fort Worth Meacham Intl, RWY 17, Amdt 6 Denton, TX, Denton Muni, ILS RWY 17, ILS RWY 34R, Orig AGENCY: Federal Aviation Amdt 6 Chetek, WI, Chetek Muni-Southworth, VOR/ Administration (FAA), DOT. DME–A, Orig Granbury, TX, Granbury Muni, VOR/DME–A, Orig ACTION: Final rule. .. . Effective September 12, 1996 Granbury, TX, Granbury Muni, VOR OR Eliot, ME, Littlebrook Air park, NDB OR GPS–B, Amdt 3 CANCELLED SUMMARY: This amendment establishes, GPS–A, Amdt 1, CANCELLED Greenville, TX, Majors, VOR/DME, RWY 17 amends, suspends, or revokes Standard Eliot, ME, Littlebrook Air park, NDB–B, Orig Orig Instrument Approach Procedures 40152 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

(SIAPs) for operations at certain Center (FDC)/Permanent (P) Notices to between these SIAPs and safety in air airports. These regulatory actions are Airmen (NOTAM) which are commerce, I find that notice and public needed because of changes occurring in incorporated by reference in the procedure before adopting these SIAPs the National Airspace System, such as amendment under 5 U.S.C. 552(a), 1 are impracticable and contrary to the the commissioning of new navigational CFR part 51, and § 97.20 of the Federal public interest and, where applicable, facilities, addition of new obstacles, or Aviation Regulations (FAR). Materials that good cause exists for making these changes in air traffic requirements. incorporated by reference are available SIAPs effective in less than 30 days. for examination or purchase as stated These changes are designed to provide Conclusion safe and efficient use of the navigable above. airspace and to promote safe flight The large number of SIAPs, their The FAA has determined that this operations under instrument flight rules complex nature, and the need for a regulation only involves an established at the affected airports. special format make their verbatim body of technical regulations for which frequent and routine amendments are DATES: An effective date for each SIAP publication in the Federal Register necessary to keep them operationally is specified in the amendatory expensive and impractical. Further, current. It, therefore—(1) is not a provisions. airmen do not use the regulatory text of ‘‘significant regulatory action’’ under Incorporation by reference-approved the SIAPs, but refer to their graphic Executive Order 12866; (2) is not a by the Director of the Federal Register depiction of charts printed by ‘‘significant rule’’ under DOT on December 31, 1980, and reapproved publishers of aeronautical materials. Regulatory Policies and Procedures (44 as of January 1, 1982. Thus, the advantages of incorporation by reference are realized and FR 11034; February 26, 1979); and (3) ADDRESSES: Availability of matter publication of the complete description does not warrant preparation of a incorporated by reference in the of each SIAP contained in FAA form regulatory evaluation as the anticipated amendment is as follows: documents is unnecessary. The impact is so minimal. For the same For Examination provisions of this amendment state the reason, the FAA certifies that this affected CFR (and FAR) sections, with amendment will not have a significant 1. FAA Rules Docket, FAA the types and effective dates of the economic impact on a substantial Headquarters Building, 800 SIAPs. This amendment also identifies number of small entities under the Independence Avenue, SW., the airport, its location, the procedure criteria of the Regulatory Flexibility Act. Washington, DC 20591; identification and the amendment 2. The FAA Regional Office of the List of Subjects in 14 CFR Part 97 number. region in which affected airport is Air Traffic Control, Airports, located; or The Rule Navigation (Air). 3. The Flight Inspection Area Office This amendment to part 97 of the Issued in Washington, DC on July 26, 1996. which originated the SIAP. Federal Aviation Regulations (14 CFR Thomas C. Accardi, For Purchase part 97) establishes, amends, suspends, Director, Flight Standards Service. or revokes SIAPs. For safety and Individual SIAP copies may be timeliness of change considerations, this Adoption of the Amendment obtained from: amendment incorporates only specific 1. FAA Public Inquiry Center (APA– Accordingly, pursuant to the changes contained in the content of the authority delegated to me, part 97 of the 200), FAA Headquarters Building, 800 following FDC/P NOTAM for each Independence Avenue, SW., Federal Aviation Regulations (14 CFR SIAP. The SIAP information in some part 97) is amended by establishing, Washington, DC 20591; or previously designated FDC/Temporary 2. The FAA Regional Office of the amending, suspending, or revoking (FDC/T) NOTAMs is of such duration as Standard Instrument Approach region in which the affected airport is to be permanent. With conversion to located. Procedures, effective at 0901 UTC on FDC/P NOTAMs, the respective FDC/T the dates specified, as follows: By Subscription NOTAMs have been cancelled. The FDC/P NOTAMs for the SIAPs PART 97ÐSTANDARD INSTRUMENT Copies of all SIAPs, mailed once APPROACH PROCEDURES every 2 weeks, are for sale by the contained in this amendment are based on the criteria contained in the U.S. Superintendent of Documents, U.S. 1. The authority citation for part 97 is Standard for Terminal Instrument Government Printing Office, revised to read as follows: Approach Procedures (TERPS). In Washington, DC 20402. developing these chart changes to SIAPs Authority: 49 U.S.C. 40103, 40113, 40120, FOR FURTHER INFORMATION CONTACT: by FDC/P NOTAMs, the TERPS criteria 44701; 49 U.S.C. 106(g); and 14 CFR Paul J. Best, Flight Procedures were applied to only these specific 11.49(b)(2). Standards Branch (AFS–420), Technical conditions existing at the affected 2. Part 97 is amended to read as Programs Division, Flight Standards airports. All SIAP amendments in this follows: Service, Federal Aviation rule have been previously issued by the Administration, 800 Independence §§ 97.23, 97.25, 97.27, 97.29, 97.31, 97.33, FAA in a National Flight Data Center 97.35 [Amended] Avenue, SW., Washington, DC 20591; (FDC) Notice to Airmen (NOTAM) as an By amending: § 97.23 VOR, VOR/ telephone (202) 267–8277. emergency action of immediate flight DME, VOR or TACAN, and VOR/DME SUPPLEMENTARY INFORMATION: This safety relating directly to published or TACAN; § 97.25 LOC, LOC/DME, amendment to part 97 of the Federal aeronautical charts. The circumstances LDA, LDA/DME, SDF, SDF/DME; Aviation Regulations (14 CFR part 97) which created the need for all these § 97.27 NDB, NDB/DME; § 97.29 ILS, establishes, amends, suspends, or SIAP amendments requires making ILS/DME, ISMLS, MLS, MLS/DME, revokes Standard Instrument Approach them effective in less than 30 days. Procedures (SIAPs). The complete Further, the SIAPs contained in this MLS/RNAV; § 97.31 RADAR SIAPs; regulatory description on each SIAP is amendment are based on the criteria § 97.33 RNAV SIAPs; and § 97.35 contained in the appropriate FAA Form contained in the TERPS. Because of the COPTER SIAPs, identified as follows: 8260 and the National Flight Data close and immediate relationship .. . effective upon publication Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40153

FDC date State City Airport FDC No. SIAP

06/27/96 ...... ID McCall ...... McCall ...... FDC 6/4222 NDB or GPS±A, ORIG... 07/02/96 ...... UT Logan ...... Logan-Cache ...... FDC 6/4430 VOR or GPS-A AMDT 6... THIS CORRECTS NOTAM IN 96±16 07/11/96 ...... MN Brainerd ...... Brainerd-Crow Wing County Re- FDC 6/4731 VOR or GPS RWY 30 AMDT gional. 13... 07/12/96 ...... NE Lincoln ...... Lincoln Muni ...... FDC 6/4755 ILS RWY 35L, AMDT 11A... 07/12/96 ...... NE ...... do ...... do ...... FDC 6/4756 ILS RWY 17R, AMDT 6A... 07/16/96 ...... IA Dubuque ...... Dubuque Regional ...... FDC 6/4890 VOR RWY 31, AMDT 11... 07/16/96 ...... IA ...... do ...... do ...... FDC 6/4894 NDB or GPS RWY 31, AMDT 8... 07/16/96 ...... IA ...... do ...... do ...... FDC 6/4895 VOR OR GPS RWY 13, AMDT 8A... 07/16/96 ...... IA ...... do ...... do ...... FDC 6/4896 VOR or GPS RWY 36, AMDT 5A... 07/16/96 ...... IA ...... do ...... do ...... FDC 6/4897 ILS RWY 31, AMDT 10A... 07/16/96 ...... IA ...... do ...... do ...... FDC 6/4898 LOC/DME BC RWY 13, AMDT 4... 07/17/96 ...... NY New York ...... John F. Kennedy Intl ...... FDC 6/4930 ILS RWY 4R AMDT 28B... 07/17/96 ...... NY ...... do ...... do ...... FDC 6/4931 ILS RWY 13L AMDT 14A... 07/18/96 ...... MS Pascagoula ...... Trent Lott Intl ...... FDC 6/4967 ILS RWY 17, ORIG... 07/18/96 ...... NY New York ...... John F. Kennedy Intl ...... FDC 6/4979 VOR/DME or TACAN or GPS RWY 22L AMDT 4... 07/18/96 ...... NY ...... do ...... do ...... FDC 6/4980 VOR or GPS RWY 4L/R AMDT 15... 07/18/96 ...... NY ...... do ...... do ...... FDC 6/4983 ILS RWY 22L AMDT 22... 07/18/96 ...... NY ...... do ...... do ...... FDC 6/4984 ILS RWY 31L AMDT 9... 07/18/96 ...... NY ...... do ...... do ...... FDC 6/4985 ILS RWY 3IR AMDT 13... 07/19/96 ...... GA Columbus ...... Columbus Metropolitan ...... FDC 6/5010 ILS RWY 5, AMDT 24... 07/22/96 ...... IL Salem ...... Salem-Leckrone ...... FDC 6/5089 NDB or GPS RWY 18, AMDT 8... 07/22/96 ...... NC Raleigh-Durham ...... Raleigh-Durham Intl ...... FDC 6/5092 RADAR±1, AMDT 7... 07/23/96 ...... IA Charles City ...... Charles City Muni ...... FDC 6/5142 NDB±A, ORIG... 07/23/96 ...... IA ...... do ...... do ...... FDC 6/5143 LOC RWY 12, ORIG± C... 07/23/96 ...... IA ...... do ...... do ...... FDC 6/5144 NDB or GPS RWY 12, ORIG± C... 07/23/96 ...... IA Fort Madison ...... Fort Madison Muni ...... FDC 6/5139 VOR/DME RNAV or GPS RWY 34, AMDT 4... 07/23/96 ...... IA ...... do ...... do ...... FDC 6/5140 VOR/DME RNAV or GPS RWY 16, AMDT 4... 07/23/96 ...... IA ...... do ...... do ...... FDC 6/5141 VOR/DME or GPS±A, AMDT 6...

[FR Doc. 96–19608 Filed 7–31–96; 8:45 am] regulations. This regulatory review is in Administration’s ‘‘Reinventing BILLING CODE 4910±13±M response to the Administration’s Government’’ initiative. In his March 4 ‘‘Reinventing Government’’ initiative directive, the President ordered all which seeks to streamline government Federal agencies to conduct a page-by- DEPARTMENT OF HEALTH AND to ease the burden on regulated industry page review of their regulations and to HUMAN SERVICES and consumers. ‘‘eliminate or revise those that are EFFECTIVE DATE: August 12, 1996. outdated or otherwise in need of Food and Drug Administration FOR FURTHER INFORMATION CONTACT: reform.’’ In the Federal Register of October 13, 1995 (60 FR 53480), FDA 21 CFR Parts 601, 620, 630, 640, 650, Regarding general information on issued a notice of proposed rulemaking 660, and 680 FDA’s ‘‘reinventing initiative’’: Lisa M. Helmanis, Office of Policy (HF– in which FDA proposed to remove a [Docket No. 95N±310B] 26), Food and Drug Administration, number of outdated or unnecessary 5600 Fishers Lane, Rockville, MD regulations in parts 100 through 801 (21 Revocation of Certain Regulations; 20857, 301–443–3480. CFR parts 100 through 801). The Biological Products Regarding biologics regulations: regulations proposed for removal apply to a variety of products regulated by AGENCY: Food and Drug Administration, Annette A. Ragosta, Center for HHS. Biologics Evaluation and Research FDA, including foods, drugs, veterinary (HFM–630), Food and Drug drugs, biological products, and devices. ACTION: Final rule. Administration, 1401 Rockville Interested persons were requested when SUMMARY: The Food and Drug Pike, suite 200N, Rockville, MD submitting comments to identify the Administration (FDA) is issuing a final 20852–1448, 301–594–3074. FDA Center responsible for the rule to remove certain biologics SUPPLEMENTARY INFORMATION: regulation of the product to which the regulations that are obsolete or no comments applied. In order to expedite longer necessary to achieve public I. Background matters, the final rules resulting from health goals. These regulations were On March 4, 1995, President Clinton the line-by-line review are being issued identified for removal as the result of a announced plans for the reform of the separately by FDA Centers. FDA is page-by-page review of the agency’s Federal regulatory system as part of the issuing this final rule, which eliminates 40154 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations certain regulations affecting biological FDA is removing additional standards nor an environmental impact statement products in parts 600 through 680. from the regulations, are complex and is required. diverse entities. Monographs for many II. Comments List of Subjects types of biological products could FDA received two comments on the become quickly outdated in the rapidly 21 CFR Part 601 proposed rule that related to the evolving field of biotechnology, as did Administrative practice and biologics regulations. One comment was the Additional Standards in parts 620, general in nature and urged Congress to procedure, Biologics, Confidential 630, 640, 650, 660, and 680, which this business information. include FDA reform as a top priority in final rule is removing. Use of 1996. monographs would allow for less 21 CFR Part 620 Congress is currently considering flexibility in the development of legislation that would affect FDA Biologics, Labeling, Reporting and product specifications for complex recordkeeping requirements. programs and procedures. FDA has biologicals. testified at congressional hearings on 21 CFR Part 630 the pending bills. The agency does not III. Effective Date Biologics, Labeling. believe it would be appropriate to As provided under 5 U.S.C. 553(d) comment on the ongoing legislative and § 10.40(c) (21 CFR 10.40(c)), the 21 CFR Part 640 initiatives in this rulemaking. effective date of a final rule may not be The agency agrees with the comment Blood, Labeling, Reporting and less than 30 days after the date of that regulatory programs and the recordkeeping requirements. publication, except for, among other regulations that implement them should things, ‘‘a regulation that grants an 21 CFR Part 650 be reviewed and revised or reformed where appropriate. FDA is currently exemption or relieves a restriction’’ Biologics. (§ 10.40(c)(4)(i)). The final rule is reviewing other biologics regulations, 21 CFR Part 660 the potential removal or revision of effective August 12, 1996. Biologics, Labeling, Reporting and which involves issues of greater IV. Analysis of Impacts recordkeeping requirements. regulatory complexity and, based on this review, will remove or significantly FDA has examined the impacts of the 21 CFR Part 680 revise these regulations at a later date. final rule under Executive Order 12866 Biologics, Blood, Reporting and In addition, a number of changes to the and the Regulatory Flexibility Act (Pub. recordkeeping requirements. regulations and policies affecting L. 96–354). Executive Order 12866 Therefore, under the Federal Food, biological products are already directs agencies to assess all costs and Drug, and Cosmetic Act and the Public underway. (See for example, ‘‘Interim benefits of available regulatory Health Service Act and under authority Definition and Elimination of Lot-by-Lot alternatives and, when regulation is delegated to the Commissioner of Food Release for Well-Characterized necessary, to select regulatory and Drugs, 21 CFR parts 601, 620, 630, Therapeutic Recombinant DNA-Derived approaches that maximize net benefits 640, 650, 660, and 680 are amended as and Monoclonal Antibody (including potential economic, follows: Biotechnology Products’’ (60 FR 63048, environmental, public health and safety, December 8, 1995); ‘‘Well-Characterized and other advantages; distributive Biotechnology Products; Elimination of impacts; and equity). The agency PART 601ÐLICENSING Establishment License Application’’ (61 believes that this final rule is consistent with the regulatory philosophy and 1. The authority citation for 21 CFR FR 2733, January 29, 1996); ‘‘Changes to part 601 continues to read as follows: an Approved Application’’ (61 FR principles identified in the Executive 2739); ‘‘Draft Guidance; Changes to an Order. In addition, the final rule is not Authority: Secs. 201, 501, 502, 503, 505, Approved Application for Well- a significant regulatory action as defined 510, 513–516, 518–520, 701, 704, 721, 801 of by the Executive Order and so is not the Federal Food, Drug, and Cosmetic Act (21 Characterized Therapeutic Recombinant U.S.C. 321, 351, 352, 353, 355, 360, 360c– DNA-Derived and Monoclonal Antibody subject to review under the Executive Order. 360f, 360h–360j, 371, 374, 379e, 381); secs. Biotechnology Products; Availability’’ 215, 301, 351, 352 of the Public Health (61 FR 2748); ‘‘Changes to an Approved The Regulatory Flexibility Act Service Act (42 U.S.C. 216, 241, 262, 263); Application; Draft Guidance; requires agencies to analyze regulatory secs. 2–12 of the Fair Packaging and Labeling Availability’’ (61 FR 2749).) This final options that would minimize any Act (15 U.S.C. 1451–1461). significant impact of a rule on small rule, ‘‘Revocation of Certain § 601.30 [Removed] Regulations; Biological Products,’’ is entities. Because the proposed removals one part of the agency’s efforts to create have no compliance costs and do not 2. Section 601.30 Licenses required; a more efficient and responsive result in any new requirements, the products for controlled investigation regulatory system. agency certifies that the final rule will only is removed. The other comment received was not have a significant economic impact § 601.31 [Removed] supportive of the proposed rule and on a substantial number of small 3. Section 601.31 Procedure is stated that it was a good first step in entities. Therefore, under the Regulatory removed. reducing regulatory burden. The Flexibility Act, no further analysis is comment suggested the incorporation of required. § 601.32 [Removed] the United States Pharmacopeia (USP) V. Environmental Impact 4. Section 601.32 Form of license is monograph system based on the Center removed. for Drug Evaluation and Research model The agency has determined under 21 into the Center for Biologics Evaluation CFR 25.24(a)(8) that this action is of a PART 620ÐADDITIONAL STANDARDS and Research’s regulatory reform type that does not individually or FOR BACTERIAL PRODUCTS process. cumulatively have a significant effect on The agency does not agree with this the human environment. Therefore, Part 620 [Removed] suggestion because biologics, for which neither an environmental assessment 5. Part 620 is removed. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40155

PART 630ÐADDITIONAL STANDARDS Dated: July 19, 1996. exploration is required to be filed with FOR VIRAL VACCINES William K. Hubbard, the permit application. Associate Commissioner for Policy [52 FR 13812, Apr. 24, 1987] Part 630 [Removed] Coordination. BILLING CODE 1505-01-D 6. Part 630 is removed. [FR Doc. 96–19604 Filed 7–31–96; 8:45 am] BILLING CODE 4160±01±F PART 640ÐADDITIONAL STANDARDS FOR HUMAN BLOOD AND BLOOD FEDERAL COMMUNICATIONS COMMISSION PRODUCTS DEPARTMENT OF THE INTERIOR 47 CFR Part 1 7. The authority citation for 21 CFR Office of Surface Mining Reclamation part 640 continues to read as follows: and Enforcement [MD Docket No. 96±84; DA 96±1156] Authority: Secs. 201, 501, 502, 503, 505, 510, 701 of the Federal Food, Drug, and 30 CFR Part 735 Assessment and Collection of Cosmetic Act (21 U.S.C. 321, 351, 352, 353, Regulatory Fees for Fiscal Year 1996 355, 360, 371); secs. 215, 351, 352, 353, 361 Grants for Program Development and AGENCY: of the Public Health Service Act (42 U.S.C. Administration and Enforcement Federal Communications 216, 262, 263, 263a, 264). Commission. CFR Correction ACTION: Final rule. Subpart K [Removed and Reserved] In Title 30 of the Code of Federal SUMMARY: The Commission revised its Regulations, parts 700 to End, revised as 8. Subpart K, consisting of §§ 640.110 Schedule of Regulatory Fees on July 1, of July 1, 1995, on page 144, § 735.23 through 640.114, is removed and 1996, in order to recover the amount of was inadvertently omitted. The omitted reserved. regulatory fees that Congress has text should read as follows: PART 650ÐADDITIONAL STANDARDS required it to collect for fiscal year 1996. See Report and Order in the Matter of FOR DIAGNOSTIC SUBSTANCES FOR § 735.23 Administrative procedures. DERMAL TESTS Assessment and Collection of The agency shall follow Regulatory Fees for Fiscal Year 1996, administrative procedures governing Part 650 [Removed] Md Docket 96–84, FCC–295 (released accounting, payment, property and 9. Part 650 is removed. July 5, 1996). The attached Order related requirements contained in Office establishes the dates when these of Management and Budget Circular No. regulatory fees must be paid. PART 660ÐADDITIONAL STANDARDS A–102. FOR DIAGNOSTIC SUBSTANCES FOR EFFECTIVE DATE: August 1, 1996. BILLING CODE 1505-01-D LABORATORY TESTS DATES: September 30, 1996 for annual fees for Geosynchronous Space Station 10. The authority citation for 21 CFR 30 CFR Part 937 Licensees, Intelsat and Inmarsat part 660 continues to read as follows: Signatories, and Low Earth Orbit Authority: Secs. 201, 501, 502, 503, 505, Oregon Satellite System Licensees. September 510, 701 of the Federal Food, Drug, and 12, 1996, through September 20, 1996, Cosmetic Act (21 U.S.C. 321, 351, 352, 353, CFR Correction for all other annual fee payors. 355, 360, 371); secs. 215, 351, 352, 353, 361 In Title 30 of the Code of Federal Beginning on September 12, 1996, for of the Public Health Service Act (42 U.S.C. applicants who pay fees in advance in 216, 262, 263, 263a, 264). Regulations, parts 700 to End, revised as of July 1, 1995, on page 639, § 937.772 combination with their application fee Subpart K [Removed] was inadvertently omitted. The omitted for new, renewal and reinstatement text should read as follows: authorizations in the private wireless 11. Subpart K, consisting of services. §§ 660.100 through 660.105, is removed. § 937.772 Requirements for coal FOR FURTHER INFORMATION CONTACT: exploration. Peter W. Herrick, Office of Managing PART 680ÐADDITIONAL STANDARDS (a) Part 772 of this Chapter, FOR MISCELLANEOUS PRODUCTS Director at (202) 418–0443, or Terry D. ‘‘Requirements for coal exploration,’’ Johnson, Office of Managing Director at shall apply to any person who conducts 12. The authority citation for 21 CFR (202) 418–0445. or seeks to conduct coal exploration part 680 continues to read as follows: SUPPLEMENTARY INFORMATION: operations. Authority: Secs. 201, 501, 502, 503, 505, (b) The Office shall make every effort Adopted: July 22, 1996 510, 701 of the Federal Food, Drug, and to act on an exploration application Released: July 24, 1996 Cosmetic Act (21 U.S.C. 321, 351, 352, 353, within 60 days of receipt or such longer 1. The Managing Director has 355, 360, 371); secs. 215, 351, 352, 353, 361 time as may be reasonable under the determined the dates for collection of of the Public Health Service Act (42 U.S.C. the fees adopted in the fiscal year 1996 216, 262, 263, 263a, 264). circumstances. If additional time is needed, OSMRE shall notify the regulatory fee proceeding. See 13. The heading for Subpart A— applicant that the application is being Assessment and Collection of Allergenic Products is removed. reviewed, but more time is necessary to Regulatory Fees for Fiscal Year 1996, complete such review, setting forth the FCC–295 (released July 5, 1996), 61 FR Subpart B [Removed] reasons and the additional time that is 36629 (July 12, 1996). We are 14. Subpart B, consisting of §§ 680.10 needed. establishing collection dates as through 680.16, is removed. (c) Where coal exploration is to occur indicated below. on State lands or the minerals to be 2. Annual regulatory fees for Subpart C [Removed] explored are owned by the State, a Geosynchronous Space Station 15. Subpart C, consisting of §§ 680.20 mineral lease issued by the Oregon licensees, Intelsat and Inmarsat through 680.26, is removed. Division of Lands authorizing the coal Signatories, and Low Earth Orbit 40156 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

Satellite System Licensees are due on these channels. This action is taken 7. Section 73.202(b), the Table of FM September 30, 1996. pursuant to Revision of Section Allotments under New Mexico, is 3. Annual regulatory fees for 73.3573(a)(1) of the Commission’s Rules amended by removing Channel 225A regulatees in the cable television, Concerning the Lower Classification of and adding Channel 225C2 at Espanola, common carrier, international (except an FM Allotment, 4 FCC Rcd 2413 by removing Channel 298C3 and adding the three categories listed in paragraph (1989), and the Amendment of the Channel 298C1 at Los Almos and by 2 above), mass media, and commercial Commission’s Rules to permit FM removing Channel 234C and adding wireless services are due during the Channel and Class Modifications Channel 234C1 at Santa Fe. period beginning September 12, 1996, [Upgrades] by Applications, 8 FCC Rcd 8. Section 73.202(b), the Table of FM and ending September 20, 1996. Parties 4735 (1993). Allotments under Oklahoma, is paying these fees electronically are EFFECTIVE DATE: August 1, 1996. amended by removing Channel 237A requested to submit them on September FOR FURTHER INFORMATION CONTACT: and adding Channel 237C3 at Lawton. 12th or September 13th. Kathleen Scheuerle, Mass Media 9. Section 73.202(b), the Table of FM 4. Applicants for new, renewal and Bureau, (202) 418–2180. Allotments under Texas is amended by removing Channel 228C3 and adding reinstatement licenses in the private SUPPLEMENTARY INFORMATION: This is a Channel 228C2 at Breckenridge and by wireless services which pay annual fees summary of the Commission’s Report removing Channel 269A and adding of $7.00 in advance for each year of and Order, adopted June 27, 1996, and Channel 268C2 at Snyder. their license term in combination with released July 5, 1996. The full text of the appropriate application fee are to 10. Section 73.202(b), the Table of FM this Commission decision is available Allotments under Wyoming, is amended begin paying the new rate on September for inspection and copying during 12, 1996. For private wireless licensees by removing Channel 266C2 and adding normal business hours in the Channel 2266A at Pinedale. which pay $3.00 in advance for each Commission’s Reference Center (Room year of their license term in 239), 1919 M Street, NW., Washington, Federal Communications Commission. combination with the appropriate DC. The complete text of this decision John A. Karousos, application fee, there is no change and may also be purchased from the Chief, Allocations Branch, Policy and Rules they will continue to do so. Commission’s copy contractors, Division, Mass Media Bureau. 5. Since the time for collecting fees is International Transcription Services, [FR Doc. 96–19349 Filed 7–31–96; 8:45 am] extremely limited, we are unable to offer Inc., 2100 M Street, NW., Suite 140, BILLING CODE 6712±01±F installment payments for fiscal year Washington, DC 20037, (202) 857–3800. 1996. List of Subjects in 47 CFR Part 73 6. Accordingly, it is ordered That the DEPARTMENT OF COMMERCE dates for collection of fiscal year 1996 Radio broadcasting. regulatory fees are as provided in Part 73 of title 47 of the Code of National Oceanic and Atmospheric paragraphs 2, 3 and 4 of this Order. This Administration action is taken under delegated Federal Regulations is amended as authority pursuant to §§ 0.231(a) and follows: 50 CFR Part 660 1.1157(b)(1) of the Commission’s rules. PART 73Ð[AMENDED] [Docket No. 960401094±6183±02; I.D. 47 U.S.C. §§ .231(a) and 1.1157(b)(1). 072496B] 1. The authority citation for part 73 List of Subjects in 47 CFR Part 1 continues to read as follows: Fisheries Off West Coast States and in Administrative practice and Authority: Secs. 303, 48 Stat., as amended, the Western Pacific; Western Pacific procedure, Communications common 1082; 47 U.S.C. 154, as amended. Crustacean Fisheries; 1996 Closure carriers, Federal Communications Commission, Radio, § 73.202 [Amended] AGENCY: National Marine Fisheries Telecommunications, Television. 2. Section 73.202(b), the Table of FM Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Federal Communications Commission Allotments under Alabama, is amended Commerce. Andrew S. Fishel, by removing Channel 255C and adding ACTION: Closure of the fishery. Managing Director. Channel 255C2 at Montgomery, and by removing Channel 254A and adding [FR Doc. 96–19575 Filed 7–31–96; 8:45 am] SUMMARY: Channel 254C2 at Warrior. NMFS announces the closure BILLING CODE 6712±01±P 3. Section 73.202(b), the Table of FM of the Northwestern Hawaiian Islands Allotments under California, is (NWHI) crustacean fishery due to amended by removing Channel 296C2 attainment of the harvest guideline for 47 CFR Part 73 and adding Channel 297C2 at Rio Del the 1996 fishing season. Further lobster and by removing Channel 299A and fishing in the NWHI is prohibited until Radio Broadcasting Services; Various the beginning of the 1997 fishing season Locations adding Channel 299B1 at Twentynine Palms. on July 1, 1997. This action is intended AGENCY: Federal Communications 4. Section 73.202(b), the Table of FM to prevent overfishing and to achieve Commission. Allotments under Illinois, is amended optimum yield according to the objectives of the Fishery Management ACTION: Final rule. by removing Channel 224A and adding Channel 224B1 at Herrin. Plan for the Crustacean Fisheries of the SUMMARY: The Commission, on its own 5. Section 73.202(b), the Table of FM Western Pacific Region (FMP). motion, editorially amends the Table of Allotments under Minnesota, is EFFECTIVE DATES: Fishing for lobsters in FM Allotments to specify the actual amended by removing Channel 269C3 the NWHI is prohibited from 2400 hours classes of channels allotted to various and adding Channel 269C2 at Duluth. (local time) July 26, 1996, through June communities. The changes in channel 6. Section 73.202(b), the Table of FM 30, 1997. Landings of lobsters taken classifications have been authorized in Allotments under Mississippi, is from the NWHI are prohibited after 2400 response to applications filed by amended by removing Channel 252A hours (local time) July 30, 1996, through licensees and permittees operating on and adding Channel 252C3 at Carthage. June 30, 1997. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations 40157

FOR FURTHER INFORMATION CONTACT: DATES: Opening of the non-treaty non-treaty coho ocean TAC will remain Svein Fougner, 310–980–4034; or Alvin commercial and recreational salmon at 75,000 coho, and the contingency Z. Katekaru, 808–973–2985. fisheries under the contingency seasons seasons will open as described in Tables SUPPLEMENTARY INFORMATION: On July 5, is effective July 22, 1996, through 1 and 2 of the annual management 1996, a harvest guideline of 186,000 September 30, 1996. Modification of the measures (61 FR 20181, May 6, 1996). treaty Indian coho quota is effective spiny and slipper lobsters was The annual management measures for August 1, 1996, through September 30, published in the Federal Register (61 the treaty Indian troll fisheries initially FR 35145) as the allowable harvest 1996. Comments will be accepted set the coho quota at 12,500 fish. In permitted in the NWHI for the 1996 through August 13, 1996. accordance with the provisions in the fishing season, which began on July 1. ADDRESSES: Comments may be mailed to annual management measures for a Through July 21, 150,000 spiny and William Stelle, Jr., Director, Northwest Canadian harvest level between 1.1 slipper lobsters have been harvested by Region, NMFS (Regional Director), million and 1.3 million coho off WCVI, commercial fishing vessels, mostly at NOAA, 7600 Sand Point Way NE., the Regional Director is raising the Necker Island. The average daily harvest Seattle, WA 98115–0070. Information has been more than 7,800 lobsters. relevant to this action has been treaty Indian coho quota to 25,000 fish. Further harvesting of lobsters is compiled in aggregate form and is The Regional Director consulted with therefore prohibited after 2400 hours available for public review during representatives of the Washington (local time) July 26, 1996, when the business hours at the office of the Department of Fish and Wildlife, harvest guideline is projected to be Regional Director. Oregon Department of Fish and Game, reached, and further landings of lobster FOR FURTHER INFORMATION CONTACT: Pacific Fishery Management Council, taken in Permit Area I are prohibited and treaty Indian tribes regarding this after 2400 hours (local time) July 30, William L. Robinson, 206–526–6140. action. The States of Washington and 1996. SUPPLEMENTARY INFORMATION: In the annual management measures for ocean Oregon will open the non-treaty Classification salmon fisheries (61 FR 20175, May 6, commercial and recreational fisheries in This action is authorized by 50 CFR 1996), NMFS announced that the 1996 state waters as provided in the annual 660.50 and is exempt from review under non-treaty commercial and recreational management measures for the E.O. 12866. fisheries north of Cape Falcon, OR, are contingency seasons. The treaty Indian tribes will manage the treaty troll Authority: 16 U.S.C. 1801 et seq. closed unless the conditions allowing the contingency seasons are met. fisheries in accordance with the revised Dated: July 26, 1996. Specifically, if the Canadian harvest of coho quota. As provided by the inseason Richard W. Surdi, coho salmon off the west coast of action procedures of 50 CFR 660.411, Acting Director, Office of Fisheries Vancouver Island (WCVI) is determined actual notice to fishermen of the Conservation and Management, National to be 1.3 million coho or less, opening of the non-treaty commercial Marine Fisheries Service. contingency seasons recommended by and recreational fisheries was given [FR Doc. 96–19540 Filed 7–26–96; 4:57 pm] the Pacific Fishery Management Council prior to July 22, 1996 (opening date of BILLING CODE 3510±22±F would be implemented. At a Canadian recreational seasons in two subareas harvest level between 1.1 million and between Leadbetter Point, WA, and 1.3 million coho off WCVI, the non- 50 CFR Part 660 Cape Falcon, OR), by telephone hotline treaty ocean total allowable catch (TAC) number 206–526–6667 or 800–662–9825 [Docket No. 960126016±6121±04; I.D. would be zero chinook and 75,000 coho and by U.S. Coast Guard Notice to 072396C] (18,800 coho to the commercial fishery Mariners broadcasts on Channel 16 and 56,200 coho to the recreational VHF-FM and 2182 kHz. Because of the Fisheries Off West Coast States and in fishery). At a Canadian harvest level of need for immediate action to open these the Western Pacific; West Coast less than 1.1 million coho off WCVI, the fisheries in a timely manner, NMFS has Salmon Fisheries; Inseason non treaty coho TAC could be increased determined that good cause exists for Adjustments From the U.S.-Canadian upon the recommendation of the States Border to Cape Falcon, OR of Washington and Oregon and the this action to be issued without affording a prior opportunity for public AGENCY: National Marine Fisheries treaty Indian tribes. The contingency seasons and any adjustments to the non- comment. This action does not apply to Service (NMFS), National Oceanic and other fisheries that may be operating in Atmospheric Administration (NOAA), treaty coho TAC would be implemented other areas. Commerce. by the Regional Director using the inseason management authority and ACTION: Inseason adjustments. Classification process. SUMMARY: NMFS announces that the On July 19, 1996, agreement was This action is authorized by 50 CFR non-treaty commercial and recreational reached between the United States and 660.409 and 660.411 and is exempt from salmon fisheries in the area from the Canada that the Canadian harvest of review under E.O. 12866. U.S.-Canadian border to Cape Falcon, coho salmon off WCVI would be less Authority: 16 U.S.C. 1801 et seq. OR, will open under the contingency than 1 million fish. This harvest level seasons announced in the annual allows the implementation of the Dated: July 26, 1996. management measures. NMFS contingency seasons and the Richard W. Surdi, announces that the overall treaty Indian consideration of increasing the non- Acting Director, Office of Fisheries ocean quota for coho salmon is modified treaty coho TAC. U.S. fishery managers Conservation and Management, National to 25,000 fish. These actions are agreed that any additional harvest Marine Fisheries Service. necessary to implement ocean salmon opportunity on coho salmon would be [FR Doc. 96–19556 Filed 7–29–96; 8:55 am] fisheries established in the annual provided to the inside fisheries instead BILLING CODE 3510±22±F management measures. of the ocean fisheries. Therefore, the 40158 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Rules and Regulations

50 CFR Part 679 the directed fishery for the sharpchin/ SUPPLEMENTARY INFORMATION: The northern rockfish species category in groundfish fishery in the GOA exclusive [Docket No. 960129019±6019±01; I.D. 072496C] this area. economic zone is managed by NMFS The Director, Alaska Region, NMFS, according to the Fishery Management Groundfish of the Bering Sea and has determined, in accordance with Plan for Groundfish of the Gulf of Aleutian Islands Area; Sharpchin/ § 679.20(d)(2), that the TAC for the Alaska (FMP) prepared by the North Northern Rockfish Species Group in sharpchin/northern rockfish species Pacific Fishery Management Council the Aleutian Islands Subarea group in the Aleutian Islands subarea under authority of the Magnuson has been reached. Therefore, NMFS is Fishery Conservation and Management AGENCY: National Marine Fisheries requiring that further catches of the Act. Fishing by U.S. vessels is governed Service (NMFS), National Oceanic and sharpchin/northern rockfish species by regulations implementing the FMP at Atmospheric Administration (NOAA), group in the Aleutian Islands subarea be Subpart H of 50 CFR part 600 and 50 Commerce. treated as prohibited species in CFR part 679. ACTION: Closure. accordance with § 679.21(b). In accordance with § 679.20 (c)(3)(ii), SUMMARY: NMFS is prohibiting retention Classification the annual TAC for Pacific ocean perch of the sharpchin/northern rockfish This action is taken under 50 CFR in the Eastern Regulatory Area of the species group in the Aleutian Islands 679.20 and is exempt from review under GOA, was established by the Final 1996 subarea of the Bering Sea and Aleutian E.O. 12866. Harvest Specifications of Groundfish (61 Islands management area (BSAI). NMFS FR 4304, February 5, 1996) as 2,366 is requiring that catches of the Authority: 16 U.S.C. 1801 et seq. metric tons (mt). The directed fishery sharpchin/northern rockfish species Dated: July 26, 1996. for Pacific ocean perch in the Eastern group in the Aleutian Islands subarea be Richard W. Surdi, Regulatory Area of the GOA closed to treated in the same manner as Acting Director, Office of Fisheries directed fishing under § 679.20 prohibited species and discarded at sea Conservation and Management, National (d)(1)(iii) in order to reserve amounts with a minimum of injury. This action Marine Fisheries Service. anticipated to be needed for incidental is necessary because the sharpchin/ [FR Doc. 96–19541 Filed 7–26–96; 4:57 pm] catch in other fisheries (61 FR 37225; northern rockfish species group total BILLING CODE 3510±22±F July 17, 1996). NMFS has determined allowable catch (TAC) in the Aleutian that as of July 13, 1996, 800 mt remain Islands subarea has been caught. in the directed fishing allowance. EFFECTIVE DATE: 1200 hours, Alaska 50 CFR Part 679 The Director, Alaska Region, NMFS, local time (A.l.t.), July 27, 1996, until [Docket No. 960129018±6018±01; I.D. has determined that the 1996 directed 2400 hours, A.l.t., December 31, 1996. 072596B] fishing allowance of Pacific ocean perch FOR FURTHER INFORMATION CONTACT: in the Eastern Regulatory Area of the Mary Furuness, 907–586-7228. Groundfish of the Gulf of Alaska; GOA has not been reached. Therefore, SUPPLEMENTARY INFORMATION: The Pacific Ocean Perch in the Eastern NMFS is terminating the previous groundfish fishery in the BSAI exclusive Regulatory Area closure and is opening directed fishing economic zone is managed by the NMFS for Pacific ocean perch in the Eastern AGENCY: National Marine Fisheries according to the Fishery Management Regulatory Area of the GOA. Plan for the Groundfish Fishery of the Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), All other closures remain in full force Bering Sea and Aleutian Islands Area and effect. (FMP) prepared by the North Pacific Commerce. Fishery Management Council under ACTION: Modification of a closure. Classification authority of the Magnuson Fishery SUMMARY: NMFS is opening the directed Conservation and Management Act. This action is taken under § 679.20 fishery for Pacific ocean perch in the Fishing by U.S. vessels is governed by and is exempt from review under E.O. Eastern Regulatory Area of the Gulf of regulations implementing the FMP at 50 12866. Alaska (GOA). This action is necessary CFR parts 600 and 679. Authority: 16 U.S.C. 1801 et seq. In accordance with § 679.20(c)(3)(iii), to fully utilize the total allowable catch the sharpchin/northern rockfish species (TAC) of Pacific ocean perch in that Dated: July 26, 1996. category initial TAC for the Aleutian area. Richard W. Surdi, Islands subarea was established by the EFFECTIVE DATE: 12 noon, Alaska local Acting Director, Office of Fisheries Final 1996 Harvest Specifications of time (A.l.t.), July 31, 1996, until 12 Conservation and Management, National Groundfish (61 FR 4311, February 5, noon, A.l.t., December 31, 1996. Marine Fisheries Service. 1996) as 4,445 metric tons (mt). On May FOR FURTHER INFORMATION CONTACT: [FR Doc. 96–19543 Filed 7–31–96; 8:45 am] 30, 1996 (61 FR 28072), NMFS closed Andrew Smoker, 907–586-7228. BILLING CODE 3510±22±F 40159

Proposed Rules Federal Register Vol. 61, No. 149

Thursday, August 1, 1996

This section of the FEDERAL REGISTER The service information referenced in Discussion contains notices to the public of the proposed the proposed rule may be obtained from The Civil Aviation Authority (CAA), issuance of rules and regulations. The Short Brothers plc, 2011 Crystal Drive, purpose of these notices is to give interested which is the airworthiness authority for Suite 713, Arlington, Virginia 22202– the United Kingdom, recently notified persons an opportunity to participate in the 3719. This information may be rule making prior to the adoption of the final the FAA that an unsafe condition may rules. examined at the FAA, Transport exist on all Short Brothers Model SD3– Airplane Directorate, 1601 Lind 30 and SD3–SHERPA series airplanes. Avenue, SW., Renton, Washington. The CAA advises that it has received DEPARTMENT OF TRANSPORTATION FOR FURTHER INFORMATION CONTACT: reports of loose bolts that attach the Phil Forde, Aerospace Engineer, vertical fin to the tailplane; this Federal Aviation Administration Standardization Branch, ANM–113, condition was found on a Model SD3– 14 CFR Part 39 FAA, Transport Airplane Directorate, 30 series airplane. Additionally, certain 1601 Lind Avenue, SW., Renton, rivets in an upper shear angle were [Docket No. 96±NM±07±AD] Washington 98055–4056; telephone found to be pulled or loose. This RIN 2120±AA64 (206) 227–2146; fax (206) 227–1149. condition, if not corrected, could result in reduced structural integrity of the SUPPLEMENTARY INFORMATION: Airworthiness Directives; Short vertical fin to tailplane joint. Brothers Model SD3±30 and SD3± Comments Invited The bolts attaching the fin to the tailplane that are installed on Short SHERPA Series Airplanes Interested persons are invited to Brothers Model SD3–30 series airplanes participate in the making of the AGENCY: Federal Aviation are similar in design to those installed proposed rule by submitting such Administration, DOT. on Short Brothers Model SD3–SHERPA written date, views, or arguments as ACTION: Notice of proposed rulemaking series airplanes. Therefore, the FAA they may desire. Communications shall (NPRM). finds that both of these models are identify the Rules Docket number and subject to the same unsafe condition SUMMARY: This document proposes the be submitted in triplicate to the address identified in this proposal. adoption of a new airworthiness specified above. All communications directive (AD) that is applicable to all received on or before the closing date Explanation of Relevant Service Short Brother Model SD3–30 and SD3– for comments, specified above, will be Information SHERPA series airplanes. This proposal considered before taking action on the Short Brothers has issued Shorts would require inspections of the vertical proposed rule. The proposals contained Service Bulletin SD330–55–18, dated fin-to-tailplane joint to detect any loose in this notice may be changed in light April 20, 1995 (for Model SD3–30 series bolts; and, if necessary, inspections to of the comments received. airplanes), and Shorts SD3 SHERPA detect elongation of bolt holes, and Comments are specifically invited on Service Bulletin SD3 SHERPA–55–1, replacement with new bolts, if the overall regulatory, economic, dated April 20, 1995 (for Model SD3– necessary. Additionally, the proposal environmental, and energy aspects of SHERPA series airplanes). These service would require inspections of the upper the proposed rule. All comments bulletins describe procedures for shear angle to detect pulled or loose submitted will be available, both before repetitive visual inspections of the rivets, and replacement of the shear and after the closing date for comments, vertical fin-to-tailplane joint to detect angle using new rivets, if necessary. in the Rules Docket for examination by any loose bolts. For any airplane on This proposal is prompted by reports of interested persons. A report which a loose bolt is found, the service loose bolts in the vertical fin-to- summarizing each FAA-public contact bulletins describe procedures for visual tailplane joint and pulled or loose rivets concerned with the substance of this inspections to detect elongation of the in an upper shear angle. The actions proposal will be filed in the Rules bolt holes, and repair, or replacement of specified by the proposed AD are Docket. the bolts with new bolts, if necessary. intended to prevent reduced structural Commenters wishing the FAA to Additionally, the service bulletins integrity of the vertical fin to tailplane acknowledge receipt of their comments describe procedures for repetitive visual joint due to such discrepancies of the submitted in response to this notice inspections of the upper shear angle to bolts or rivets. must submit a self-addressed, stamped detect pulled or loose rivets, and DATES: Comments must be received by postcard on which the following replacement of the shear angle using September 11, 1996. statement is made: ‘‘Comments to oversize rivets, if necessary. The CAA ADDRESSES: Submit comments in Docket Number 96–NM–07–AD.’’ The classified these service bulletins as triplicate to the Federal Aviation postcard will be date stamped and mandatory in order to assure the Administration (FAA), Transport returned to the commenter. continued airworthiness of these Airplane Directorate, ANM–103, Availability of NPRMs airplanes in the United Kingdom. Attention: Rules Docket No. 96–NM– 07–AD, 1601 Lind Avenue, SW., Any person may obtain a copy of this FAA’s Conclusions Renton, Washington 98055–4056. NPRM by submitting a request to the These airplane models are Comments may be inspected at this FAA, Transport Airplane Directorate, manufactured in the United Kingdom location between 9:00 a.m. and 3:00 ANM–103, Attention: Rules Docket No. and are type certificated for operation in p.m., Monday through Friday, except 96–NM–07–AD, 1601 Lind Avenue, the United States under the provisions Federal holidays. SW., Renton, Washington 98055–4056. of section 21.29 of the Federal Aviation 40160 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules

Regulations (14 CFR 21.29) and the proposal would not have sufficient (a) Within 60 days after the effective date applicable bilateral airworthiness federalism implications to warrant the of this AD, perform a visual inspection to agreement. Pursuant to this bilateral preparation of a Federalism Assessment. detect loose bolts in the vertical fin to airworthiness agreement, the CAA has For the reasons discussed above, I tailplane joint, in accordance with Shorts certify that this proposed regulation (1) Service Bulletin SD330–55–18, dated April kept the FAA informed of the situation 20, 1995 (for Model SD3–30 airplanes), or described above. The FAA has is not a ‘‘significant regulatory action’’ Shorts SD3 SHERPA Service Bulletin SD3 examined the findings of the CAA, under Executive Order 12866; (2) is not SHERPA–55–1, dated April 20, 1995 (for reviewed all available information, and a ‘‘significant rule’’ under the DOT Model SD3–SHERPA airplanes), as determined that AD action is necessary Regulatory Policies and Procedures (44 applicable. for products of this type design that are FR 11034, February 26, 1979); and (3) if (1) If no loose bolt is found, repeat the certificated for operation in the United promulgated, will not have a significant visual inspection thereafter at intervals not to States. economic impact, positive or negative, exceed 1,500 flight hours. on a substantial number of small entities (2) If any loose bolt is detected, inspect the bolt for wear and distortion and inspect the Explanation of Requirements of under the criteria of the Regulatory Proposed Rule hole for elongation, in accordance with the Flexibility Act. A copy of the draft applicable service bulletin. Since an unsafe condition has been regulatory evaluation prepared for this (i) If the bolt and hole are within the limits identified that is likely to exist or action is contained in the Rules Docket. specified by the applicable service bulletin, develop on other airplanes of the same A copy of it may be obtained by prior to further flight, refit the bolt with a type design, the proposed AD would contacting the Rules Docket at the new nut and washers, in accordance with the require repetitive visual inspections of location provided under the caption applicable service bulletin. Repeat the visual inspection thereafter at intervals not to the vertical fin to tailplane joint to ADDRESSESS. detect any loose bolts. For any airplane exceed 1,500 flight hours. List of Subjects in 14 CFR Part 39 (ii) If the bolt is worn or distorted and the on which a loose bolt is found, the hole is within the limits specified by the proposed AD would require visual Air transportation, Aircraft, Aviation applicable service bulletin, prior to further inspections to detect elongation of the safety, Safety. flight, replace the bolt, nut, and washers with bolt holes, and repair or replacement of The Proposed Amendment a new bolt, a new nut, and a new washers, the bolt, if necessary. The proposed AD in accordance with the applicable service also would require visual inspections to Accordingly, pursuant to the bulletin. Repeat the visual inspection detect elongation of any bolt holes, and authority delegated to me by the thereafter at intervals not to exceed 1,500 repair, if necessary. Administrator, the Federal Aviation flight hours. Additionally, the proposal would Administration proposes to amend part (iii) If the hole is elongated within the 39 of the Federal Aviation Regulations limits specified in the applicable service require repetitive visual inspections of bulletin, prior to further flight, oversize the the upper shear angle to detect pulled (14 CFR part 39) as follows: diameter of the hole, and replace the bolt, or loose rivets, and replacement of the PART 39ÐAIRWORTHINESS nut, and washers with a new matching bolt, shear angle using oversize rivets, if new nut, and new washers, in accordance necessary. DIRECTIVES with the applicable service bulletin. Repeat These actions would be required to be 1. The authority citation for part 39 the visual inspection thereafter at intervals accomplished in accordance with the continues to read as follows: not to exceed, 1,500 flight hours. service bulletins described previously. (iv) If the hole is elongated beyond the Authority: 49 U.S.C. 106(g), 40113, 44701. limits specified in the applicable service Cost Impact bulletin, prior to further flight, repair in § 39.13 [Amended] accordance with a method approved by the The FAA estimates that 66 airplanes 2. Section 39.13 is amended by Manager, Standardization Branch, ANM–113, of U.S. registry would be affected by this adding the following new airworthiness FAA, Transport Airplane Directorate. proposed AD, that it would take directive: (b) Within 60 days after the effective date approximately 74 work hours per of this AD, perform a visual inspection to airplane to accomplish the proposed Short Brothers, PLC: Docket 96–NM–07–AD. detect looseness or pulling of the rivets of actions, and that the average labor rate Applicability: All Model SD3–30 and SD3– attach shear angles SD3–32–0217/K and is $60 per work hour. Based on these SHERPA series airplanes, certificated in any SD3–32–0218/K. If any looseness or pulling figures, the cost impact of the proposed category. of the rivets is detected, prior to further Note: This AD applies to each airplane flight, replace the shear angle using oversize AD on U.S. operators is estimated to be rivets, in accordance with the applicable $293,040, or $4,440 per airplane. identified in the preceding applicability provision, regardless of whether it has been service bulletin. The cost impact figure discussed modified, altered, or repaired in the area (c) An alternative method of compliance or above is based on assumptions that no subject to the requirements of this AD. For adjustment of the compliance time that operator has yet accomplished any of airplanes that have been modified, altered, or provides an acceptable level of safety may be the proposed requirements of this AD repaired so that the performance of the used if approved by the Manager, action, and that no operator would requirements of this AD is affected, the Standardization Branch, ANM–113. accomplish those actions in the future if owner/operator must request approval for an Operators shall submit their requests through this AD were not adopted. alternative method of compliance in an appropriate FAA Principal Maintenance accordance with paragraph (c) of this AD. Inspector, who may add comments and then Regulatory Impact The request should include an assessment of send it to the Manager, Standardization Branch, ANM–113. The regulations proposed herein the effect of the modification, alteration, or would not have substantial direct effects repair on the unsafe condition addressed by Note 2: Information concerning the this AD; and, if the unsafe condition has not existence of approved alternative methods of on the States, on the relationship been eliminated, the request should include compliance with this AD, if any, may be between the national government and specific proposed actions to address it. obtained from the Standardization Branch, the States, or on the distribution of Compliance: Required as indicated, unless ANM–113. power and responsibilities among the accomplished previously. (d) Special flight permits may be issued in various levels of government. Therefore, To prevent reduced structural integrity of accordance with sections 21.197 and 21.199 in accordance with Executive Order the vertical fin to tailplane joint, accomplish of the Federal Aviation Regulations (14 CFR 12612, it is determined that this the following: 21.197 and 21.199) to operate the airplane to Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40161 all location where the requirements of this coatings and answer any questions Sections 260 and 271 through 276 of the AD can be accomplished. concerning the proposed rule. Telecommunications Act of 1996 (‘‘1996 Issued in Renton, Washington, on July 25, Docket. Docket No. A–92–18, Act’’). These sections outline the 1996. containing supporting information for conditions under which incumbent Darrel M. Pederson, the proposed national volatile organic local exchange carriers may offer Acting Manager, Transport Airplane compounds emission standards for telemessaging and alarm monitoring Directorate, Aircraft Certification Service. architectural coatings, is available for services and under which the Bell [FR Doc. 96–19524 Filed 7–31–96; 8:45 am] public inspection and copying between Operating Companies (‘‘BOCs’’) may BILLING CODE 4910±13±M 8:00 a.m. and 4:00 p.m., Monday manufacture and sell through Friday, except for Federal telecommunications equipment, holidays, at the following address: U.S. manufacture customer premises Environmental Protection Agency, Air equipment, offer interLATA ENVIRONMENTAL PROTECTION and Radiation Docket and Information telecommunications, information, AGENCY Center (6102), 401 M Street SW, electronic publishing and payphone 40 CFR Part 59 Washington, DC 20460; telephone: (202) services. Sections 271 through 274 and 260–7548. The docket is located at the 276 of the 1996 Act generally prohibit [AD±FRL±5545±4] above address in Room M–1500, the BOCs from subsidizing services Waterside Mall (ground floor). A permitted under those sections with Notice of Meeting for the Proposed reasonable fee may be charged for revenues from regulated National Volatile Organic Compounds copying. A copy of the proposed rule telecommunications services. Sections Emission Standards for Architectural and the Background Information 260 and 275 generally prohibit Coatings Document (BID) is also available on the incumbent local exchange carriers, Technology Transfer Network (TTN). including the BOCs, from subsidizing AGENCY: U.S. Environmental Protection The TTN is one of the EPA’s electronic their telemessaging and alarm Agency (EPA). bulletin boards and provides monitoring services with revenues from ACTION: Notice of meeting. information and technology exchange in regulated telecommunications services. various areas of air pollution control. This action was intended to implement SUMMARY: The EPA is holding a public the accounting safeguards provision of meeting to discuss the proposed The service is free except for the cost of the 1996 Act. national volatile organic compounds a phone call. Dial (919) 541–5472 for up emission standards for architectural to a 14,400 bits-per-second (bps) DATES: Comments are due on or before coatings. This meeting is being modem. The TTN is also accessible August 26, 1996 and Reply Comments conducted to provide an opportunity for through the Internet at ‘‘Telnet are due on or before September 10, the EPA to continue dialogue with the ttnbbs.rtpnc.epa.gov.’’ If more 1996. Written comments must be architectural coatings industry and information on the TTN is needed, call submitted by the Office of Management obtain additional input on the potential the help desk at (919) 541–5384. The and Budget (OMB) on the proposed and/ impacts of the proposed rule. The intent help desk is staffed from 11:00 a.m. to or modified information collections on is to discuss the proposed rule with 5:00 p.m., Eastern time. The help desk or before September 30, 1996. particular emphasis on the potential utilizes a voice menu system at other ADDRESSES: Comments and Reply economic and technological impacts to times. Comments should be sent to Office of small businesses. Dated: July 25, 1996. the Secretary, Federal Communications Commission, 1919 M Street, N.W., DATES: A public meeting will be held on John S. Seitz, August 13, 1996, beginning at 10:00 a.m. Director, Office Air Quality Planning and Room 222, Washington, D.C. 20554, Standards, Office of Air and Radiation. with a copy to Ernestine Creech of the ADDRESSES: The public meeting will be [FR Doc. 96–19421 Filed 7–31–96; 8:45 am] Common Carrier Bureau’s Accounting held at the Westin Hotel O’Hare, 6100 and Audits Division, 2000 L Street, BILLING CODE 6560±50±M N. River Road, Rosemont, IL. N.W., Suite 257, Washington, D.C. FOR FURTHER INFORMATION CONTACT: Ms. 20554. Parties should also file one copy Ellen Ducey, Coatings and Consumer of any documents filed in this docket FEDERAL COMMUNICATIONS Products Group (MD–13), U.S. with the Commission’s copy contractor, COMMISSION Environmental Protection Agency, International Transcription Services, Research Triangle Park, North Carolina 47 CFR Parts 32 and 64 Inc., 2100 M Street, N.W., Suite 140, 27711, phone number (919) 541–5408. Washington, D.C. 20037. In addition to SUPPLEMENTARY INFORMATION: On June [CC Docket No. 96±150, FCC 96±309] filing comments with the Secretary, a 25, 1996, the EPA proposed the national copy of any comments on the Implementation of the volatile organic compounds emission information collections contained Telecommunications Act of 1996: standards for architectural coatings and herein should be submitted to Dorothy Accounting Safeguards Under the a notice of public hearing for that Conway, Federal Communications Telecommunications Act of 1996 proposed rule (61 FR 32729). The EPA Commission, Room 234, 1919 M Street, would like to provide a further AGENCY: Federal Communications N.W., Washington, D.C. 20554, or via opportunity to engage in dialogue with Commission. the Internet to [email protected], and to architectural coating manufacturers, ACTION: Proposed rule. Timothy Fain, OMB Desk Officer, 10236 particularly with regard to economic NEOB, 725–17th Street, N.W., and technological impacts of the SUMMARY: The Commission is issuing Washington, D.C. 20503 or via the proposed rule on small manufacturers. this Notice of Proposed Rulemaking Internet to [email protected]. Therefore, the EPA is holding a public which seeks comment on proposed FOR FURTHER INFORMATION CONTACT: meeting to discuss the proposed measures to satisfy the accounting John V. Giusti, Attorney, Common national volatile organic compounds safeguards requirements, including Carrier Bureau, Accounting and Audits emission standards for architectural those for affiliate transactions, of Division, (202) 418–0850, or Mark B. 40162 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules

Ehrlich, Attorney, Common Carrier of Proposed Rulemaking is available for time as other comments on this NPRM; Bureau, Accounting and Audits inspection and copying during normal OMB notification of action is due Division, (202) 418–0850. For additional business hours in the FCC Reference September 30, 1996. Comments should information concerning the information Center (Room 239), 1919 M St., NW., address: (a) whether the proposed collections contained in this NPRM Washington, D.C. The complete text also collection of information is necessary contact Dorothy Conway at 202–418– may be purchased from the for the proper performance of the 0217, or via the Internet at Commission’s copy contractor, functions of the Commission, including [email protected]. International Transcription Service, whether the information shall have SUPPLEMENTARY INFORMATION: This is a Inc., (202) 857–3800, 2100 M St., NW., practical utility; (b) the accuracy of the summary of the Commission’s Notice of Suite 140, Washington D.C. 20037. Commission’s burden estimates; (c) ways to enhance the quality, utility, and Proposed Rulemaking adopted July 17, Paperwork Reduction Act 1996 and released July 18, 1996, 1996 clarity of the information collected; and (FCC 96–309). This NPRM contains This NPRM contains either a (d) ways to minimize the burden of the proposed or modified information proposed or modified information collection of information on the collections subject to the Paperwork collection. The Commission, as part of respondents, including the use of Reduction Act of 1995 (PRA). It has its continuing effort to reduce automated collection techniques or been submitted to the Office of paperwork burdens, invites the general other forms of information technology. Management and Budget (OMB) for public and the Office of Management OMB Approval Number: None. review under the PRA. OMB, the and Budget (OMB) to comment on the Title: Implementation of the general public, and other Federal information collections contained in Telecommunications Act of 1996: agencies are invited to comment on the this NPRM, as required by the Accounting Safeguards Under the proposed or modified information Paperwork Reduction Act of 1995, Telecommunications Act of 1996. collections contained in this Public Law No. 104–13. Public and Form No.: N/A. proceeding. The full text of this Notice agency comments are due at the same Type of Review: New collection.

Estimated No. of re- time per re- Total annual Information collection spondents sponse burden (approx.) (hours/hour) (hours)

Affiliate Company Books, Records and Accounts ...... 20 6,056.25 121,125 Biennial Federal/State Audit ...... 20 250.00 5,000 Filing Written Contract ...... 1 7 1.00 7 Compliance Audit ...... 1 7 250.00 1,750 Report of Exceptions ...... 1 7 80.00 560 10±K Requirement ...... 1 7 1,711.00 11,977 1 BOCS.

Total Annual Burden: 140,419 hours. the accounting safeguards provisions of incumbent local exchange carrier Respondents: Bell Operating Sections 260 and 271 through 276 of the provision of particular Companies and/or incumbent local 1996 Act. telecommunications and information exchange carriers and/or affiliated SYNOPSIS OF NOTICE OF PROPOSED services. companies. RULEMAKING 3. This proceeding is one of a series Estimated cost per respondent: of interrelated rulemakings that I. Introduction $632,500. This cost represents the total collectively will implement the 1996 annual/startup costs associated with the 1. In February 1996, Congress passed Act. Certain of these proceedings focus annual and biennial audits and does not and the President signed the on opening markets to entry by new include the burden hour cost of the ‘‘Telecommunications Act of 1996.’’ competitors. Other proceedings will information collection. Of the $632,500, This legislation makes sweeping establish rules for fair competition in $316,250 represents our estimate of the changes affecting all consumers and the markets that are opened to biennial Federal/State audit. By telecommunications service providers. competitive entry by the 1996 Act. definition, this cost will only be The intent of this legislation is ‘‘to 4. This NPRM focuses on the incurred once every two years. The total provide for a pro-competitive, de- accounting safeguards that Congress cost also includes a cost of $316,250 regulatory national policy framework adopted in the 1996 Act to foster the which represents our estimate of the designed to accelerate rapidly private development of robust competition in annual compliance audit requirement. sector deployment of advanced all telecommunications markets. As The $316,250 figure was derived by telecommunications and information discussed more fully below, these averaging the range of audit costs technologies and services to all safeguards are intended both to protect ($32,500—$600,000). We expect the Americans by opening all subscribers to regulated monopoly actual cost of the audits to vary telecommunications markets to services provided by the BOCs and, in considerably. competition.’’ some cases, other incumbent local Needs and Uses: The NPRM seeks 2. In this Notice of Proposed exchange carriers against the risk of comments on a number of issues, the Rulemaking (‘‘NPRM’’), we consider being forced to ‘‘foot the bill’’ for the resolution of which may lead to the rules to implement the accounting carriers’ entry into, or continued imposition of information collections safeguards provisions of Sections 260 participation in, competitive services, subject to the Paperwork Reduction Act. and 271 through 276 of the 1996 Act. and to promote competition in new the NPRM seeks comment on certain Those sections address Bell Operating markets by preventing carriers from reporting requirements to implement Company (‘‘BOC’’) and, in some cases, using their existing market power in Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40163 local exchange services to obtain an difficult, if not impossible, to enforce example, that a policy that would anticompetive advantage in those new such rules. Moreover, our success might permit the BOCs to allocate all common markets the carriers seek to enter. destroy the potential competitive costs of shared facilities to regulated benefits of the economies of scope that services would pose a risk that A. Background BOCs and other incumbent local subscribers to the BOCs’ regulated 5. the 1996 Act permits the BOCs to exchange carriers could realize, benefits telecommunications services would pay engage in previously proscribed that constitute a major incentive for the more than the stand-alone costs of the activities if the BOCs satisfy certain BOCs and other incumbent local services they receive, and would thus be conditions that are intended to prevent exchange carriers to enter or continue to subsidizing the BOCs’ competitive them from misallocating costs of their participate in these markets. Our task in activities rather than sharing the new ventures to subscribers to local this proceeding is to protect against economies of scope realized because of exchange access services and from improper cost allocations, while the BOCs’ diversification. discriminating against their competitors allowing the BOCs and other incumbent 10. It is also essential that the affiliate in these new markets. Other incumbent local exchange carriers to realize their transactions rules discourage, and local exchange carriers are subject to reasonable competitive advantages and facilitate detection of, cost similar conditions if they elect to enter ensuring that the consumers of those misallocations. Statutory structural or continue to participate in certain carriers’ regulated telecommunications separation requirements, like the markets. services are able to share in the carriers’ prohibition on sharing employees or the 6. In lifting or modifying the economies of scope. obligation that all affiliate transactions restrictions on the BOCs, we believe 8. We expect that once competition be ‘‘on an arm’s length basis,’’ reduce Congress also recognized that BOC entry exists in the local exchange and the risk that cost misallocations will into in-region interLATA services, exchange access services markets and accompany BOC entry into manufacturing and other areas raises incumbent local exchange carrier manufacturing and interLATA service serious concerns for consumers and revenues are not dependent on costs, markets. This protection of ratepayer competition, even after a BOC has the need for the accounting safeguards interests, however, is not cost free. satisfied the requirements for entry. proposed in this NPRM may vanish. Structural separation restrictions that BOCs currently possess market share for With the advent of competition, we can protect ratepayers also make it more local exchange and exchange access in and will act to eliminate any difficult for a BOC or other incumbent areas where they provide such services unnecessary rules. With our adoption of local exchange carrier to capture the of approximately 99.5 percent as the Notice of Proposed Rulemaking to economies of scope that benefit both measured by revenues. Other incumbent implement Section 251, 61 FR 18311 regulated and nonregulated service local exchange carriers have similar (April 25, 1996), we have taken a major subscribers. Only our success in market shares within their local step to achieve that goal. Reform of removing barriers to competition in the exchange and exchange access service other regulations, like price cap rules, BOCs’ and other incumbent local areas. Under rate-of-return regulation, jurisdictional separations rules, and the exchange carriers’ regulated services price caps with sharing (either for access charge regime, will also move us markets will enable us to remove these interstate or intrastate services), or price more quickly toward that goal. In the restrictions. caps that may be adjusted in the future, meantime, while we continue to seek to 11. A threshold question is to what or if its entitlement to any revenues may minimize the burden our rules impose extent, if any, we should rely upon our be affected by the costs that it classifies those subject to them, we also will existing accounting safeguards to as regulated, an incumbent local ensure that ratepayers and competition achieve our twin goals of protecting exchange carrier may have an incentive remain protected from cost subscribers to BOCs’ and other to misallocate to its regulated core misallocation and anticompetitive incumbent local exchange carriers’ business costs that would be properly discrimination. regulated telecommunications services allocated to its competitive ventures. against improper cost allocations and While the 1996 Act promotes B. Specific Considerations competitors against unreasonable competition and encourages BOC entry, 9. The challenge in setting cost discrimination. Those safeguards are it also prescribes a judicious mix of allocation rules that prevent found in Parts 32 and 64 of our rules. structural and non-structural safeguards subsidization without eliminating They consist of cost allocation and that are intended to protect ratepayers, legitimate economies of scope arises affiliate transactions rules that were consumers and competitors against because there are some costs that cannot designed to keep incumbent local potential cost misallocation and be allocated based on economic cost- exchange carriers from imposing the discrimination. Where BOCs already causation principles. The greater the costs and risks of their competitive participate in a market, as with alarm economies of scope between or among ventures on interstate telephone monitoring services and payphone services, the greater the share of costs ratepayers, and to ensure that interstate services, or where the Act addresses that cannot be allocated among them on ratepayers share in the economies of services other incumbent local exchange economic cost-causation principles. scope incumbent local exchange carriers carriers may provide, the Act requires Given these circumstances, we believe realize when they expand into compliance with similar safeguards. The that the rules we develop for allocating additional enterprises. As we purpose of this proceeding is to these costs should be clear, consistent, implement the accounting safeguards establish accounting safeguards to and predictable. They should also provisions of Sections 260 and 271 constrain potential cost misallocation assure that subscribers to the BOCs’ and through 276 of the 1996 Act, for each of and discrimination against competitors. other incumbent local exchange carriers’ these sections, we seek comment on 7. Although we could prescribe rules core services share in any economies of whether our current rules can or should that would completely prevent scope realized when entering those be applied as they are, with some improper cost allocations by enforcing markets from which they were modification, or eliminated. We complete separation between regulated previously barred or continuing to tentatively conclude that our rules, with telecommunications operations and new participate in other markets addressed the modifications we describe below, activities, we recognize that it would be in the 1996 Act. We believe, for will best meet the statutory 40164 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules requirements of these sections and their local exchange carrier to engage in embedded facility which could be underlying goals. We invite comment on predatory behavior. For example, the purchased in a bankruptcy proceeding this tentative conclusion. ability to discriminate in favor of its and used if the local exchange carrier 12. In reaching this tentative interexchange affiliate with respect to affiliates subsequently attempted to conclusion, we note our belief that the the price of access (i.e.,) charging the raise prices above the competitive level. accounting safeguards this NPRM affiliate a lower access rate than it We invite comment on the extent to proposes are no more detailed than charges competing IXCs) could facilitate which the opportunities to engage in those in our current rules except where an incumbent local exchange carrier’s predatory behavior should affect our the 1996 Act requires more detailed engaging in a ‘‘price squeeze,’’ In such decisions in this proceeding. safeguards or where our experience with a situation if the incumbent local current rules has made clear that more C. Overview of Sections 260 and 271 exchange carrier’s interexchange Through 276 detailed safeguards are necessary to affiliate lowers its retail rate to reflect its prevent improper subsidization. We unfair cost advantage, competing IXCs 17. In Section 260 and 271 through invite comment on whether less would be forced either to match the 276, Congress delineated the conditions detailed accounting safeguards would price reduction and decrease their profit under which incumbent local exchange suffice to achieve the aims of Sections margins, or to maintain their retail carriers would be permitted to offer 260 and 271 through 276 of the 1996 prices at preexisting levels and lose telemessaging and alarm monitoring Act. We note that those urging that we market share (and therefore profits). As services and under which BOCs would adopt more detailed accounting a practical matter, an incumbent local be permitted to manufacture and sell safeguards than those in our current exchange carrier can achieve the same telecommunications equipment, to rules or those specifically mandated by result by charging the same price for manufacture customer premises the 1996 Act bear a heavy burden of access to all interexchange providers, equipment, and to offer interLATA persuading us to adopt such safeguards. while providing a higher quality of telecommunications, information, alarm 13. The 1996 Act creates service to its affiliate than to competing monitoring and payphone services. In opportunities for competitive entry in IXCs. In this case, an IXC that attempted some cases, separate affiliates are the local exchange, exchange access, to match the incumbent local exchange required. In other cases, integrated and interLATA telecommunications carrier affiliate’s retail price would lose operation is permitted. 18. Section 260 provides that an markets, among others. These market share since its lower quality of incumbent local exchange carrier, opportunities may affect which access would mean that it would be including a BOC, the provides accounting safeguards we adopt in two offering a lower quality of interexchange apparently countervailing ways. The telemessaging service ‘‘shall not service. A third type of potentially subsidize its telemessaging service incumbent local exchange carrier may anticompetitive, discriminatory be reluctant to increase rates for local directly or indirectly from its telephone behavior occurs when an incumbent exchange and exchange access service if exchange service or its exchange local exchange carrier discriminates in the increases would induce competitive access,’’ but does not require a separate favor of its affiliates when purchasing entry in the markets in which it would affiliate. goods or services. For example, to the otherwise continue to have market 19. Section 271(b) authorizes the extent that the incumbent local power. This would militate against the BOCs to provide ‘‘out-of-region’’ exchange carrier is the predominant adoption of stringent accounting interLATA services as of February 8, purchaser of telecommunications safeguards. On the other hand, a carrier 1996, even if the services terminate equipment that is used in the local entering or continuing to participate in within the BOC’s region, and ‘‘in- exchange network, purchasing such a nonregulated market will have an region’’ interLATA services upon increased incentive to shift the costs equipment only from its affiliate Commission approval. Section 271(g) and risks of its competitive activities to manufacturing entity could adversely lists specific ‘‘incidental interLATA these regulated services if such shifting effect the ability of a competitor to services’’ that BOCs and their affiliates permits the carrier to increase the rates operate profitably. may provide after February 8, 1996. for these regulated services. The 16. We also note that a carrier subject Section 271(h) states that ‘‘[t]he increased rates would not reduce to rate-of-return regulation may have an Commission shall ensure that the substantially the carrier’s market share incentive to engage in predatory pricing, provision of services authorized under for local exchange and exchange access if losses from below-cost pricing in the [Section 271(g)] by a Bell operating service. competitive market can be shifted to its company or its affiliate will not 14. Several provisions of the 1996 Act regulated cost of service. We expect, adversely affect telephone exchange prohibit BOCs, or, in some cases, all however, that such predatory pricing by service ratepayers or competition in any incumbent local exchange carriers from a BOC or other incumbent local telecommunications market.’’ using their telephone exchange service exchange carrier is unlikely to occur. 20. Section 272 permits a BOC and exchange access operations to First, while an incumbent local (including any affiliate) that is an subsidize their competitive ventures. exchange carrier may possess the legal incumbent local exchange carrier to We believe that Congress’s primary ability to raise rates in the regulated manufacture equipment (as defined in intent in prohibiting this subsidization market to subsidize its competitive the AT&T consent decree), originate in- was to protect subscribers to these activities, the threat of entry into the region interLATA telecommunications services from increased rates, and seek regulated market may prevent it from services, other than incidental and commenters’ help in determining how doing so. Even if such subsidization previously authorized interLATA best to fulfill that intent. We propose were to allow a BOC or other incumbent services, and provide certain interLATA that the accounting safeguards we adopt local exchange carrier to sustain prices information services only if it does so in this proceeding apply to all services below cost for a period of time sufficient through one or more separate affiliates. for which Section 260 and 271 through to drive out competing IXCs, the local Each of the separate affiliates must 276 require accounting safeguards. exchange carrier would be unlikely to ‘‘maintain [separate] books, records, and 15. Control over the bottleneck facility raise prices above the competitive level, accounts in the manner prescribed by may enable a BOC or other incumbent since each IXC’s network represents an the Commission’’ and ‘‘shall conduct all Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40165 transactions with the Bell operating D. Structure of This NPRM We invite comment on this tentative company of which it is an affiliate on an 26. Section II of this NPRM discusses conclusion. arm’s length basis.’’ In its dealings with accounting safeguards that would apply 28. We developed the cost allocation the separate affiliate, each BOC must when an incumbent local exchange rules in our Joint Cost and Computer II ‘‘account for all transactions * * * in carrier, including a BOC, provides a Proceedings to help ensure that accordance with accounting principles service addressed in Sections 260 and interstate ratepayers do not bear the designated or approved by the 271 through 276 of the 1996 Act on an costs and risks of the telephone Commission.’’ integrated, or in-house, basis. For the companies’ nonregulated activities. 21. Section 273(d)(3) sets forth an provision of services on an integrated These rules prescribe how carriers additional separate affiliate requirement basis, we tentatively conclude in separate the costs of activities regulated for manufacturing of Section II that our existing Part 64 cost under Title II of the Communications telecommunications equipment and allocation rules generally satisfy the Act of 1934, as amended, from the costs customer premises equipment by 1996 Act’s accounting safeguards of nonregulated activities, where the entities that certify the same class of requirements. Section III discusses nonregulated activities are performed telecommunication equipment and accounting safeguards that would apply directly by the carrier rather than customer premises equipment produced when an incumbent local exchange through an affiliate. Under these rules, by unaffiliated entities. carrier, including a BOC, uses an incumbent local exchange carriers may 22. Section 274(a) prohibits any ‘‘Bell affiliate to provide a service addressed not assign the costs of nonregulated operating Company or any affiliate in Sections 260 and 271 through 276 of activities to regulated products and [from] engag[ing] in the provision of the 1996. In Section III, we tentatively services. Incumbent local exchange electronic publishing that is conclude that, except where the 1996 carriers have implemented internal cost disseminated by means of such Bell Act imposes specific additional allocation systems to help ensure their operating company’s or any of its requirements, our current affiliate compliance with these rules. affiliates’ basic telephone service,’’other transactions rules generally satisfy the Redesigning these internal systems to than through ‘‘a separated affiliate or statue’s requirement of accounting accommodate a fundamentally different electronic publishing joint venture.’’ safeguards when an incumbent local cost allocation approach might impose This separated affiliate or electronic exchange carrier conducts transactions substantial administrative and financial publishing joint venture must, among with its affiliate. In that section, we do costs on the carriers. We seek comment other requirements, ‘‘maintain separate propose several modifications to the on whether the benefits of a book, records, and accounts and prepare affiliate transactions rules to provide fundamentally different approach to separate financial statements.’’ greater protection against improper cost allocation would be outweighed by 23. Section 275(b)(2) bars an subsidization. Within Sections II and III, the costs that implementation of such a incumbent local exchange carrier that subsections discuss issues related to the system would entail. Alternatively, we provides alarm monitoring services from application of the individual statutory invite comment on whether, and how, ‘‘subsidiz[ing] its alarm monitoring sections. In Section IV of this NPRM, we we might adapt the existing cost services either directly or indirectly seek comment on whether and, if so, allocation system to accommodate any from telephone exchange service how price cap regulation alters the need or all of the services we address in operations,’’ but does not require a for accounting safeguards to ensure Section II.B, below. separate affiliate. 24. Section 276(b)(1)(C) directs the against the subsidization of services B. Specific Services permitted under Sections 260 and 271 Commission to prescribe rules for BOC 1. Section 260—Telemessaging Service payphone service that, ‘‘at a minimum, through 276 of the 1996 Act with include the nonstructural safeguards revenues from regulated a. Statutory Language equal to those adopted in the Computer telecommunications services to 29. Section 260(a)(1) of the 1996 Act Inquiry–III (CC Docket No. 90–623) subsidize other services. In that same prohibits each ‘‘local exchange carrier proceeding.’’ Section 276(a)(1) provides section, we seek comment on whether subject to the requirements of section that, after the effective date of those our proposals in this NPRM satisfy the 251(c) that provides telemessaging rules, any BOC that provides payphone requirements of Section 254(k). service [from] subsidiz[ing] its service ‘‘shall not subsidize its II. Safeguards For Integrated telemessaging service directly or payphone service directly or indirectly Operations indirectly from its telephone exchange from its telephone exchange service service or its exchange access.’’ Section operations or its exchange access A. General 251(c), in turn, applies to every operations.’’ 27. In this section, we discuss the ‘‘incumbent local exchange carrier.’’ 25. Section 254(k) prohibits a provisions in Sections 260, 271, 275, Section 260(c) defines ‘‘telemessaging telecommunications carrier from and 276 of the 1996 Act relating to service’’ as ‘‘voice mail and voice ‘‘us[ing] services that are not accounting safeguards for telemessaging, storage and retrieval services, any live competitive to subsidize services that certain interLATA telecommunications operator services used to record, are subject to competition.’’ Section and information, alarm monitoring, and transcribe, or relay messages (other than 254(k) further states that ‘‘ [t]he payphone services that the BOCs and telecommunications relay services), and Commission, with respect to interstate other incumbent local exchange carriers any ancillary services offered in services, and the States, with respect to might be permitted to provide on an combination with these services.’’ The intrastate services, shall establish any integrated basis (i.e., within the principal goal of the prohibition against necessary cost allocation rules, telephone operating companies). We subsidization in Section 260(a)(1) accounting safeguards, and guidelines to tentatively conclude that our existing appears to be to ensure that the ensure that services included in the Part 64 cost allocation rules generally telemessaging service operations of definition of universal service bear no satisfy the statute’s requirement of incumbent local exchange carriers do more than a reasonable share of the joint safeguards to ensure that these services not result in increased rates for and common costs of facilities used to are not subsidized by subscribers to telephone exchange service and provide those services.’’ regulated telecommunications services. exchange access. Section 260(b) also 40166 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules requires the Commission to establish regulated and nonregulated usage’’ exchange carriers. We seek commenve procedures for expedited consideration projected for the network plant over a conclusion that Sections 271 and 272 of any complaint alleging ‘‘material three-year period. BOC provision of give the Commission jurisdiction over financial harm to a provider of telemessaging service may result in the intrastate interLATA information telemessaging service.’’ In providing for reallocation of this plant from regulated services including telemessaging, this expedited consideration, Congress to nonregulated activities. In the Joint Section 260 should also be read to give intended to protect providers of Cost Proceeding, we determined that, us jurisdiction over intrastate telemessaging service that are not absent waiver, any such reallocation information services in implementing themselves, or affiliated with, ‘‘must be made at undepreciated and enforcing Section 260. We note, incumbent local exchange carriers baseline cost and must include interest however, that unlike Sections 271 and against subsidization. calculated at the authorized interstate 272, the scope of Section 260 is not 30. Our present Part 64 rules classify rate of return.’’ limited to interLATA services, nor is it telemessaging service as a nonregulated 32. Section 64.901(b)(4) of our rules limited to the BOCs. We seek comment, activity for Title II accounting purposes. requires a carrier at the beginning of therefore, on whether any such Consequently, provision of each calendar year to forecast peak intrastate jurisdiction would extend telemessaging services is already relative nonregulated use of jointly-used only to the BOCs, as only BOCs are governed by our Part 64 rules and, to the network plant over a three-year period. covered by Sections 271 and 272, or to extent telemessaging is provided The relative split between usage for all incumbent local exchange carriers. through affiliates, our affiliate activities regulated under Title II and 35. We further seek comment on what transactions rules also apply. Our Part nonregulated usage at the point in time role States might have in implementing 64 rules require carriers to use a cost when nonregulated usage is greatest in Section 260(a)(1)’s prohibition against allocation methodology based on fully comparison to regulated defines the subsidization of ‘‘telemessaging service distributed costs (‘‘FDC’’). This allocation factor to be applied. If directly or indirectly from * ** methodology establishes a hierarchy of application of this method would telephone exchange service or * ** cost apportionment rules designed to increase the allocation to nonregulated exchange access.’’ Prior to the prevent subsidies. These rules are activities for any account from the enactment of the 1996 Act, we did not applied to costs recorded in the previous year, the carrier must make the preempt States from using their own accounts specified in the Uniform reallocation. If application of this cost allocation procedures for intrastate System of Accounts (‘‘USOA’’) set out in method would decrease the allocation to purposes. We ask commenters to Part 32 of our rules. The methodology nonregulated activities for that account address whether we must change this requires carriers to assign costs directly, from the previous year, the carrier must policy in order to effectuate Section 260. wherever possible, to regulated or obtain a waiver to make the reallocation. 36. To ensure a complete record, if nonregulated activities. If costs cannot At the end of the year, the carriers Section 260 does not itself apply to be directly assigned, they are considered compare their forecasts with actual intrastate services, we also seek ‘‘common costs’’ and must be placed in usage. If the actual usage of comment on whether we have authority homogeneous cost pools. The carrier nonregulated activities is greater, they to preempt State regulation with respect must then divide the costs in each pool must adjust the allocation to to the accounting matters addressed by between regulated and nonregulated nonregulated services based on that Section 260 pursuant to Louisiana PSC activities using formulas or factors actual usage. and, if so, whether we should exercise 33. We tentatively conclude that known as ‘‘allocators.’’ Depending upon that authority. We tentatively conclude applying our Part 64 rules to the information available, carriers must that if Section 260 does not apply to telemessaging will safeguard against the apply these allocators in the following intrastate services and if we have subsidies prohibited by Section order. Whenever possible, common authority to preempt pursuant to 260(a)(1). Section 260 appears to allow costs must be directly attributed based Louisiana PSC, we should refrain from telemessaging service to be provided on upon a direct analysis of the origins of exercising that authority in this area and an integrated basis, at least for most those costs. Common costs that cannot instead retain our prior policy of not be directly attributed must be indirectly incumbent local exchange carriers. preempting States from using their own attributed based on an indirect, but cost- However, we tentatively conclude, as cost allocation procedures for intrastate causative, linkage to another cost pool we do in our companion item, BOC In- purposes. We invite comment on this or pools for which a direct assignment Region NPRM, that telemessaging is an tentative conclusion. We ask the or attribution is possible. Only if direct information service. We also tentatively commenters to address, in particular or indirect attribution factors are not conclude in that NPRM, that our whether preemption pursuant to available may the carrier allocate a pool authority under Sections 271 and 272 Louisiana PSC in this area would be of common costs using what is known over interLATA information services necessary to achieve the intent behind as a ‘‘general allocator.’’ For regulated applies to intrastate, interLATA Section 260(a)(1) or whether less activities, the general allocator is information services provided by BOCs intrusive measures would be sufficient. expressed as the ratio of all expenses or their affiliates. BOC provision of directly assigned or attributed to telemessaging service on an interLATA 2. Section 271—InterLATA regulated activities (numerator) to all basis would therefore be subject to the Telecommunications Services expenses directly assigned or attributed separate affiliate and other requirements a. Incidental InterLATA Services to both regulated and nonregulated of Section 272. We invite comment on activities (denominator). these tentative conclusions. 37. Section 271(h) states that ‘‘[t]he 31. Our Part 64 cost allocation rules Commission shall ensure that the also require incumbent local exchange b. Scope of Commission’s Authority provision of services authorized under carriers to allocate their network 34. Section 260 of the Act imposes [Section 271(g)] by a Bell operating investment plant between activities that additional safeguards regarding the company or its affiliate will not we regulate under Title II and provision of telemessaging services, not adversely affect telephone exchange nonregulated activities. This allocation only on the BOCs, but on all incumbent service ratepayers or competition in any must be based on the peak ‘‘relative on whether, in light of our tentatilocal telecommunications market.’’ Section Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40167

271(g) lists specific incidental service ratepayers or competition in any exchange and exchange access services interLATA services that he BOCs and telecommunications market.’’ We invite they provide on an integrated basis as their affiliates may provide after the comment on whether our present cost nonregulated activities for Title II date of enactment of the 1996 Act. allocation rules in Part 64 are adequate accounting purposes. This would Those services are: to prevent the adverse effects proscribed parallel the approach we took in the The interLATA provision by a Bell by Section 271(h) or whether alternative BOC out-of-Region Order and would operating company or its affiliate— solutions, if any, would be more result in the carriers’ allocating the costs (1)(A) of audio programming, video appropriate. We ask commenters of these services to the nonregulated programming, or other programming services asserting that the rules require category. We invite comment on the to subscribers to such services of such modifications to describe in detail the relative costs and benefits of these company or affiliate; modifications they believe necessary, to approaches. (B) of the capability for interaction by such explain how these modifications or 40. In our Interexchange Notice, 61 subscribers to select or respond to such audio additions to our Part 64 rules would FR 14717 (April 3, 1996), we addressed programming, video programming, or other better enable the Commission to fulfill whether we should modify or eliminate programming services; its obligations under Section 271(h), and the separation requirements (C) to distributors of audio to identify the category of ratepayers or independent local exchange carriers programming or video programming competitive markets the proposed must currently meet in order to qualify that such company or affiliate owns or modifications or additions would for non-dominant treatment when they controls, or is licensed by the copyright protect. offer interstate, interexchange services owner of such programming (or by an originating outside the areas in which assignee of such owner) to distribute; or b. Integrated Provision of InterLATA they control local access facilities. We (D) of alarm monitoring services; Services also sought comment on whether, if we (2) of two-way interactive video 39. We note that BOCs are permitted modified or eliminated these separation services or Internet services over to provide certain regulated, interLATA requirements for non-dominant dedicated facilities to or for elementary telecommunications services on an treatment of independent local and secondary schools as defined in integrated basis, including out-of-region exchange carriers, we should apply the section 254(h)(5); services and certain types of incidental same requirements to BOC provision of (3) of commercial mobile services in services. In our BOC Out-of-Region out-of-region interstate, interexchange accordance with section 332(c) of this Order, 61 FR 35964 (July 9, 1996), we services. If independent local exchange Act and with the regulations prescribed determined that the BOCs must provide carriers are allowed to, and choose to, by the Commission pursuant to out-of-region interstate, interexchange provide out-of-region interstate paragraph (8) of such section; services (including interLATA and (4) of a service that permits a interexchange services on an integrated intraLATA services) through separate customer that is located in one LATA to basis, we seek comment on whether our affiliates, at least on an interim basis, in regulatory treatment for such incumbent retrieve stored information from, or file order to qualify for nondominant local exchange carriers should be information for storage in, information regulatory treatment in the provision of similar to the regulatory treatment we storage facilities of such company that those services. Under that Order, adopt for the BOCs. are located in another LATA; however, a BOC could still choose to (5) of signaling information used in provide these services on an integrated c. Other Matters connection with the provision of basis, subject to dominant carrier 41. Section 272(e)(3) requires that ‘‘[a] telephone exchange services or regulation. To ensure against improper Bell operating company * * * impute exchange access by a local exchange subsidization in the event of such to itself (if using [exchange] access for carrier; or operations, we tentatively conclude that its provision of its own services), an (6) of network control signaling we should apply our cost allocation amount for access that is no less than information to, and receipt of such rules to regulated services other than the amount charged to any unaffiliated signaling information from, common local exchange and exchange access interexchange carriers for such service.’’ carriers offering interLATA services at services provided on an integrated basis. In our BOC In-Region NPRM, we seek any location within the area in which We seek comment on this tentative comment on how to determine the such Bell operating company provides conclusion and on whether we should imputed exchange access charges under telephone exchange services or develop modified cost allocation rules Section 272(e)(3). We now invite exchange access. for these other regulated services that comment on how the BOCs should Section 271(h) states that ‘‘[t]he the BOCs may provide on an integrated account for these imputed access provision of [Section 271(g)] are to be basis to prevent allocation of the costs charges. One possible approach would narrowly construed. The interLATA of these other regulated services to local be for the BOCs to record these imputed services provided under subparagraph exchange and exchange access exchange access charges as an expense (A), (B), or (C) of [Section 271(g)(1)] are customers and, if so, what these that would be directly assigned to limited to those interLATA modifications should be. One possible nonregulated activities with a credit to transmissions incidental to the solution would be to require BOCs to the regulated exchange access revenue provision by a Bell operating company create a separate category for regulated account. We seek comment on this or its affiliate of video, audio, and other services other than local exchange and approach as well as suggested programming services that the company exchange access services within their alternatives. or its affiliate is engaged in providing to internal cost allocation systems. This 42. Section 272(e)(4) states that ‘‘[a] the public.’’ category would be in addition to the Bell operating company and an affiliate 38. Section 271(h) states that ‘‘[t]he regulated and nonregulated categories that is subject to the requirements of Commission shall ensure that the our existing rules require and would section 251(c) * * * may provide any provision of services authorized under parallel the approach we took with interLATA or intraLATA facilities or [Section 271(g)] by a Bell operating respect to video dialtone. Alternatively, services to its interLATA affiliate if such company or its affiliate will not we could require BOCs to classify any services or facilities are made available adversely affect telephone exchange regulated services other than local to all carriers at the same rates and on 40168 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules the same terms and conditions, and so the Communications Act of 1934 as amended in Sections 251 and 252, Congress long as the costs are appropriately by this Act and shall not be subject to the appears to have put in place rules to allocated.’’ Although Sections 272(e)(3) restrictions and the obligations imposed by govern both interstate and intrastate and (e)(4) do not address activities [the MFJ]. services, and to have provided a role for performed on an integrated basis, we This section supersedes the MFJ, and both the Commission and the States in invite comment on whether and, if so, explains that the Communications Act implementing those rules. how these requirements should affect is to serve as its replacement. In the 48. We also note in the BOC In-Region our rules for allocating costs between BOC In-Region NPRM, we find that NPRM that, by contrast, reading activities regulated under Title II and Sections 271 and 272 of the Act were Sections 271 and 272 as limited to the nonregulated activities for those BOCs intended to replace the MFJ as to both provision of interstate services would that provide interLATA services on an interstate and intrastate interLATA mean that the BOCs would have been integrated basis. We request comment services and interLATA information permitted to provide in-region, on whether, in view of Section services. intrastate, interLATA services upon 272(e)(4), we may require BOCs that 45. Although Sections 271 and 272 enactment and without any guidance provide interLATA or intraLATA make no explicit reference to interstate from Congress as to entry requirements facilities or services on an integrated and intrastate services, they do refer to or safeguards, subject only to any pre- basis to provide them to their own a different geographic boundary—the existing State rules on interexchange internal operation only at the same rates LATA, as originally defined by the MFJ entry. Any such rules, presumably, as those facilities or services are made and now by the 1996 Act. In the BOC would not have been directed at BOC available to all carriers. When those In-Region NPRM, we tentatively entry, which had for many years been rates differ for different carriers, we seek conclude that the interLATA/intraLATA prohibited. Concerns about BOC control comment on which rate should be the distinction appears to have supplanted of bottleneck facilities over the one that applies to BOC affiliate the traditional interstate/intrastate provision of in-region interLATA transactions. We also invite comment on distinction for purposes of these services are equally important for both whether we should adopt specific sections. interstate and intrastate services. Thus, accounting procedures to address the 46. As to interLATA services, the MFJ the reasons for imposing the procedures difference, if any, between those rates prohibited the BOCs and their affiliates and safeguards of Sections 271 and 272 and ‘‘the costs [that would be] from providing any interLATA services, apply equally to the BOCs’ provision of appropriately allocated’’ for the interstate or intrastate, unless both intrastate and interstate, in-region, underlying facilities or services. specifically authorized by the MFJ or a interLATA services. We found it waiver thereunder. Reading Sections implausible that Congress could have d. Scope of Commission’s Authority 271 and 272 as applying to all intended to lift the MFJ’s ban on BOC 43. In the BOC In-Region NPRM, we interLATA services fits well with the provision of interLATA services without tentatively conclude that this structure of the statute as a whole. making any provision for orderly entry Commission has jurisdiction under Sections 251 and 252 of the Act into intrastate interLATA services, Sections 271 and 272 over both establish rules and procedures for which constitute approximately 30 interstate and intrastate interLATA competitive entry into local exchange percent of interLATA traffic. Based on services and interLATA information markets. In the Interconnection NPRM, the preceding analysis, we tentatively services. That tentative conclusion leads 61 FR 18311, we tentatively concluded conclude that our authority under us also to conclude tentatively that we that Congress intended these sections to Sections 271 and 272 applies to both have jurisdiction with respect to apply to both interstate and intrastate intrastate and interstate interLATA accounting matters under those same aspects of interconnection. These new services and interstate and intrastate sections of the 1996 Act. We base our obligations imposed on BOCs (as well as interLATA information services tentative conclusions in the BOC In- other incumbent local exchange provided by the BOCs or their affiliates. Region NPRM and in this Notice on the carriers), and enacted at the same time We also stated our belief that Section following analysis. Sections 271 and as Sections 271 and 272, clearly are part 2(b) of the Communications Act did not 272 by their terms address BOC of the process for entry into the require a contrary result because provision of ‘‘interLATA’’ services and interLATA marketplace. Indeed, BOCs Congress enacted Sections 271 and 272 information services. Many States are permitted to provide in-region after Section 2(b) and squarely contain more than one LATA, and thus, interLATA services only after they have addressed the issues presented here. We interLATA traffic may be either met the requirements of Section 271, reach the same tentative conclusion interstate or intrastate. Accordingly, we including a competitive checklist here as to accounting safeguards and must determine whether Sections 271 requiring compliance with certain seek comment on it. and 272, and our authority pursuant to provisions in Sections 251 and 252. 49. We also invite comment on what those sections, apply only to interstate 47. In the BOC In-Region NPRM, we role States might play in implementing interLATA services and interLATA note also that the structure of Sections the accounting safeguards provisions of information services, or to both 271 and 272 themselves indicates that Sections 271 and 272, given this interstate and intrastate interLATA these sections were intended to address tentative conclusion. We ask services and interLATA information both interstate and intrastate interLATA commenters to address whether we services. services. For instance, BOCs are must change our policy, adopted prior 44.The MFJ, when it was in effect, directed to apply for interLATA entry to the enactment of the 1996 Act, of not governed BOC provision of both on a state-by-state basis, and the preempting States from using their own interstate and intrastate services. The Commission is directed to consult with cost allocation procedures for intrastate 1996 Act provides: the relevant State Commission before purposes. We also invite comment on making any determination with respect whether, in enacting the accounting Any conduct or activity that was, before the date of enactment of this Act, subject to to an application in order to verify the safeguards provisions of Sections 271 any restriction or obligation imposed by the BOC’s compliance with the and 272, Congress intended to eliminate [MFJ] shall, on and after such date, be subject requirements for providing in-region our ability to allow the States to depart to the restrictions and obligations imposed by interLATA services. As we believe it did from the federal cost allocation Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40169 procedures in their regulation of telemessaging services, this prohibition authority pursuant to Louisiana PSC, we ‘‘charges . . . for or in connection with against subsidizing alarm monitoring should refrain from exercising it in this intrastate communications service[s].’’ services specifically applies to area and instead retain our prior policy 50. To the extent commenters disagree incumbent local exchange carriers. of not preempting States from using with the above analysis, we also seek 53. We currently require carriers to their own cost allocation procedures for comment on whether we have authority treat alarm monitoring services as intrastate purposes. We invite comment to preempt state regulation with respect nonregulated activities for Title II on this tentative conclusion. We ask the to the accounting matters addressed by accounting purposes. Accordingly, the commenters to address, in particular, Sections 271 and 272 pursuant to Part 64 cost allocation rules require whether preemption in this area would Louisiana PSC and, if so, whether we incumbent local exchange carriers to be necessary to achieve the intent should exercise that authority. We allocate the costs of those services to behind Section 275(b)(2) or whether less tentatively conclude that if Sections 271 nonregulated activities. We invite intrusive measures would be sufficient. and 272 do not provide authority over comment on whether our present rules intrastate interLATA services and are necessary or sufficient to prevent 4. Section 276—Payphone Services intrastate interLATA information subsidization of alarm monitoring 57. Section 276(a)(1) states that ‘‘any services and if we have authority to services as defined in Section 275(e). Bell operating company that provides preempt pursuant to Louisiana PSC, we Commenters asserting that our existing payphone service shall not subsidize its should refrain from exercising it in this rules would not meet this objective payphone service directly or indirectly area and instead retain our prior policy should identify with specificity any from its telephone exchange service of not preempting States from using deficiency in our rules, explain the operations or its exchange access their own cost allocation procedures for nature of the deficiency, and describe, operations.’’ This prohibition against intrastate purposes. We invite comment in detail, how the rules can be modified subsidization is an integral part of on this tentative conclusion. We ask the to remove that deficiency. We ask Congress’s plan ‘‘to promote commenters to address, in particular, commenters asserting that rules are not competition among payphone providers whether preemption in this area would necessary to identify which rules are not and promote the widespread be necessary to achieve the intent necessary and why they are not deployment of payphone services to the behind the accounting safeguards necessary. benefit of the general public.’’ To provisions of Sections 271 and 272, or 54. Alarm monitoring, as defined in implement the prohibition, Section whether less intrusive measures would Section 275(e), appears to fall within the 276(b)(1)(C) directs the Commission to be sufficient. definition of ‘‘information service’’ in prescribe nonstructural safeguards for Section 3(20) of the Act. Alarm BOC payphone service that, ‘‘at a 3. Section 275—Alarm Monitoring monitoring services, however, are minimum, include the nonstructural Services specifically exempted from the separate safeguards equal to those adopted in the 51. Section 275(e) defines ‘‘alarm affiliate and nondiscrimination Computer Inquiry-III (CC Docket No. monitoring service’’ as ‘‘a service that requirements of Section 272. We seek 90–623) proceeding.’’ The Act defines uses a device located at a residence, comment on the extent of our authority, the term ‘‘payphone service’’ as ‘‘the place of business, or other fixed if any, under Section 275 over intrastate provision of public or semi-public pay premises (1) to receive signals from alarm monitoring services. telephones, the provision of inmate other devices located at or about such 55. We further seek comment on what telephone service in correctional premises regarding a possible threat at role States might have in implementing institutions, and any ancillary services.’’ such premises to life, safety, or Section 275(b)(2)’s prohibition against 58. We tentatively conclude that we property, from burglary, fire, vandalism, subsidization of ‘‘alarm monitoring should apply accounting safeguards bodily injury, or other emergency, and services either directly or indirectly identical to those safeguards adopted in (2) to transmit a signal regarding such from . . . telephone exchange service Computer Inquiry-III to prevent the threat by means of transmission operations.’’ We ask commenters to subsidization of payphone services by facilities of a local exchange carrier or address whether we must change our BOC telephone exchange service or one of its affiliates to a remote policy, adopted prior to the enactment exchange access operations. We seek monitoring center to alert a person . . .’’ of the 1996 Act, of not preempting comment on this tentative conclusion. about the emergency. Section 275(a)(1) States from using their own cost Commenters asserting that additional delays entry by the BOCs not already allocation procedures for intrastate accounting safeguards are necessary to providing alarm monitoring services purposes. We also invite comment on fulfill our responsibilities under until five years from the date of whether, in enacting Section 275(b)(2), Sections 276(a)(1) and (b)(1)(C) should enactment of the 1996 Act. If a BOC or Congress intended to eliminate our identify the alternative safeguards and BOC affiliate provided alarm monitoring ability to allow the States to depart from explain why they would better prevent services as of November 30, 1995, it may the federal cost allocation procedures the subsidies referred to in Section continue to do so, but cannot expand its for alarm monitoring services in the 276(a)(1). alarm monitoring business by acquiring States’ regulation of ‘‘charges . . . for or 59. All of the BOCs provide payphone ‘‘any equity interest in, or obtain in connection with intrastate service. In the past, we have treated financial control of, any unaffiliated communications service[s].’’ payphone service as a regulated activity alarm monitoring service entity’’ during 56. We also seek comment on with applicable Part 32 plant, expense, the five-year period. whether, if Section 275 does not itself and revenue accounts. This 52. Section 275(b)(2) specifies that an preempt, we have authority to preempt classification appears inconsistent with incumbent local exchange carrier State regulation with respect to the the mandate in Section 276(b)(1)(C) that engaged in the provision of alarm accounting matters addressed by we prescribe nonstructural safeguards monitoring services ‘‘not subsidize its Section 275(b)(2) pursuant to Louisiana for payphone service because this past alarm monitoring services either PSC and, if so, whether we should treatment allows payphone investment directly or indirectly from telephone exercise that authority. We tentatively and expenses to be recorded as costs of exchange service operations.’’ As with conclude that even if Section 275 does the regulated service. We tentatively the prohibition against subsidizing not itself preempt and if we have that conclude that the new rules required by 40170 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules that section should reclassify payphone III. Safeguards For Separated subscribers to regulated service as a nonregulated activity so that Operations telecommunications services. We invite comment on this tentative conclusion. its costs should be separated from the A. General telephone exchange service and We have previously concluded that exchange access operations that would 62. Section 272(a)(2) of the 1996 Act these rules provide effective safeguards continue to be regulated activities. allows BOCs to provide the following against subsidization. Incumbent local services only through a separate Under this approach, the BOCs would exchange carriers have implemented subsidiary: manufacturing of continue to use the Commission’s Part internal accounting systems for affiliate telecommunications equipment and transactions to help ensure their 32 accounts to record their payphone customer premises equipment; service activities, but would classify compliance with these rules. origination of interLATA Redesigning these internal systems to their payphone investment, expenses telecommunications services, other than accommodate a fundamentally different and revenues as nonregulated for Title incidental, out-of-region, and previously approach to affiliate transactions II accounting purposes. We seek authorized services; and interLATA accounting systems would impose comment on this tentative conclusion information services other than substantial costs on the carriers. We and overall approach and, in particular, electronic publishing and alarm seek comment on these matters and, in ask whether this proposal would monitoring services. Section 273(d)(3) particular, on whether the benefits of comply with the 1996 Act’s mandate to requires ‘‘any entity which certifies any fundamentally different approach to prescribe nonstructural accounting telecommunications equipment or affiliate transactions would be safeguards for the BOCs’ payphone customer premises equipment outweighed by the costs that services at least equal to those adopted manufactured by an unaffiliated entity implementation of such a system might in the Computer Inquire-III proceeding. ** * only [to] manufacture a particular entail. We also invite comment on whether this class of telecommunications equipment 65. Although we do not propose an approach would prevent the or customer premises equipment for approach for affiliate transactions that is subsidization of ‘‘payphone service’’ as which it is undertaking or has fundamentally different from our defined in Section 276(d) by BOC undertaken, during the previous existing rules, we seek comment on telephone exchange service or exchange eighteen months, certification activity whether we should modify our affiliate for such class of equipment through a access operations. transactions rules in certain respects. separate affiliate.’’ Section 274(a) The Commission and the telephone 60. Section 276 does not prescribe or requires that BOCs providing electronic industry have had more than eight years direct the Commission to prescribe publishing must do so only through a experience with the cost allocation accounting safeguards to govern the ‘‘separated affiliate’’ or electronic regime created by the Joint Cost Order, provision of payphone service by publishing joint venture. These 52 FR 6557 (March 4, 1987). This incumbent local exchange carriers other requirements for ‘‘separate’’ or experience has made us aware that than the BOCs. We seek comment on ‘‘separated’’ affiliates or joint ventures amending certain aspects of the affiliate whether we can and should require implicitly assume that structural transactions rules might provide more these other incumbent local exchange safeguards limit the carrier’s ability to optimal protection against carriers to reclassify their payphone engage in subsidization. subsidization. In 1993, we released an service operations as a nonregulated 63. In this section, we discuss the Affiliate Transactions Notice, 58 FR activity for Title II accounting purposes. accounting safeguards needed to 62080 (November 24, 1993), proposing prevent subsidization where telephone such rule changes, including changes in 61. Section 276(c) states that ‘‘[t]o the operating companies do business with how subject carriers would value for extend that any State requirements are their nonregulated and regulated Title II accounting purposes services inconsistent with the Commission’s affiliates. In the Joint Cost Order, 52 FR they provide, or receive from, regulations, the Commission’s 6557, we adopted rules to govern the nonregulated affiliates. We invite regulations on such matters shall way costs are recorded, for Title II comment on whether, in implementing preempt such State requirements.’’ accounting purposes, when a regulated the 1996 Act’s provisions regarding Thus, it is clear that the statute itself carrier does business with nonregulated subsidization, we should amend the preempts any State regulations that may affiliates. The affiliate transactions rules current affiliate transactions rules to be inconsistent with our own. We invite are designed to protect interstate incorporate certain of the modifications comment on what role States might ratepayers from subsidizing the proposed in the Affiliate Transactions have in implementing Section competitive ventures of incumbent local Notice. We discuss these modifications 276(a)(1)’s prohibition against exchange carrier affiliates. The affiliate below. We also invite comment on subsidization of ‘‘payphone service transactions rules do not require carriers whether any additional changes to those directly or indirectly from * ** or their affiliates to charge any rules might be necessary or appropriate telephone exchange service operations particular prices for assets transferred or to implement the requirements of the or * * * exchange access operations,’’ services provided; rather, the rules 1996 Act. given this clear statutory language and, require carriers to use certain specified 66. As a general matter, we solicit valuation methods in determining the comment on how and to whom the in particular, whether in enacting amounts to record in their Part 32 affiliate transactions rules should be Section 276(c), Congress intended to accounts, regardless of the prices applied. For example, we could apply eliminate our ability to allow the States charged. the accounting safeguards for affiliate to depart from the Federal cost 64. We tentatively conclude that, transactions discussed in this NPRM allocation procedures in their regulation except where the 1996 Act imposes only to those entities that engage in of ‘‘charges * * * for or in connection specific additional requirements, our activities for which the 1996 Act with intrastate communications current affiliate transactions rules requires the use of a separate or service[s].’’ generally satisfy the statute’s separated subsidiary. We could also requirement of safeguards to ensure that extend application of these safeguards these services are not subsidized by to those incumbent local exchange Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40171 carriers that engage in activities for shall be separate from the books, involves the transfer (either directly or which the 1996 Act allows, but does not records, and accounts maintained by the by accounting or other record entries) of require, the use of a separate subsidiary. [BOC] of which it is an affiliate.’’ We money, personnel, resources or other We discuss these approaches below. invite comment on the steps we should assets be recorded in auditable form.’’ Finally, we invite comment on whether take to implement this provision and, in We invite comment on whether we we should also apply any modifications particular, whether we should mandate should adopt similar requirements to to our affiliate transactions rules that we that the separate affiliates required implement Section 272(b)(5). We also make in this proceeding to all under Section 272(a)(2) maintain their invite comment on whether a transactions between incumbent local books, records, and accounts in requirement that prices be exchange carriers and their affiliates. accordance with generally accepted compensatory would be consistent with accounting principles (‘‘GAAP’’). We the Congressional intent behind Section B. Specific Services ask the commenters to address whether 272(b)(5) and, in particular, any intent 1. Section 272—Manufacturing and it is necessary to adopt any additional that ratepayers of regulated services InterLATA Services accounting, bookkeeping, or record benefit from the economies of scope a. Statutory Language keeping requirements for these affiliates from BOC manufacturing, origination of and, if so, what those additional interLATA telecommunications 67. Section 272(a) prohibits a ‘‘Bell requirements should be. services, and interLATA information operating company (including any 69. Pursuant to Section 272(c)(2), services activities. affiliate) which is a local exchange BOCs must account for all transactions 71. In Computer III, we reexamined carrier that is subject to the with their separate affiliates required our regulatory regime for the provision requirements of section 251(c)’’ from under Section 272(a)(2) ‘‘in accordance of enhanced services and replaced the ‘‘provid[ing] any service described in with accounting principles designated Computer II requirements with a series [Section 272(a)(2)] unless it provides or approved by the Commission.’’ We of nonstructural safeguards. These that service through one or more invite comment on how we should safeguards included the Part 64 cost affiliates that (A) are separate from any implement this provision. To ensure allocation rules and the affiliate operating company entity that is subject that the amounts recorded in Part 32 transactions rules that we developed in to the requirements of section 251(c); accounts are based on reliable financial the Joint Cost Order. The latter prescribe and (B) meet the requirements of data, the Affilitate Transactions Notice how incumbent local exchange carriers [Section 272(b)].’’ Section 272(a)(2) proposed that, except as otherwise other than average schedule companies states that: ordered by this Commission, all must value their affiliate transactions for [T]he services for which a separate affiliate accounting related to affiliate Title II accounting purposes. These is required by [Section 272(a)(1)] are: (A) transactions must comply with GAAP. rules direct subject carriers to use [m]anufacturing activities (as defined in We invite comment on whether different methods for valuing assets section 273(h); (B) [o]rigination of interLATA requiring such accounting would assist transferred and services provided. For telecommunications services, other than (i) us in fulfilling our statutory obligation asset transfers, the rules require that incidental interLATA services described in [Section 271(g)(1)–(3) and (5)–(6)]; (ii) out-of- to ensure that each affiliate required they us one of four methods: (1) tariffed region services described in section 271(b)(2); under Section 272(a)(2) will ‘‘conduct rates; (2) prevailing company prices; (3) or (iii) previously authorized activities all transactions with the [BOC] of which net book cost; and (4) estimated fair described in section 271(f); [and] (C) it is an affiliate on an arm’s length market value. Carriers must record each [i]nterLATA information services, other than basis’’ and, if so, whether we should asset transferred to an affiliate pursuant electronic publishing (as defined in section adopt such a requirement. to tariff at the tariffed rate. If an affiliate 274(h)) and alarm monitoring services (as that sells a non-tariffed asset to its c. ‘‘Arm’s Length’’ Requirement of defined in section 275(e)). regulated carrier also sells the same Section 272(b)(5) Section 272(b)(2) requires each of these kind of asset to third parties at a separate affiliates to ‘‘maintain books, 70. Section 272(b)(5) of the 1996 Act generally available price, the carrier records, and accounts in the manner requires that transactions between the must record the asset transfer at that prescribed by the Commission which BOC and its affiliate engaged in the prevailing company price. All other shall be separate from the books, manufacturing activities, origination of asset transfers must be recorded at the records, and accounts maintained by the interLATA telecommunications higher of net book cost and estimated [BOC] of which it is an affiliate.’’ Under services, and interLATA information fair market value when the carrier is the Section 272(b)(5), each of these separate services described in Section 272(a)(2) buyer (i.e., from the affiliate). The affiliates must ‘‘conduct all transactions be conducted on ‘‘an arm’s length’’ United States Court of Appeals for the with the [BOC] of which it is an affiliate basis. In the Computer II Final Decision, District of Columbia Circuit affirmed the on an arm’s length basis with any such 45 FR 24694, we required AT&T to valuation methods for asset transfers, transactions reduced to writing and provide enhanced services and finding them ‘‘reasonably designed to available for public inspection.’’ customer premises equipment only prevent systematic abuse of ratepayers.’’ Pursuant to Section 272(c)(2), BOCs through a ‘‘separate corporate entity’’ 72. The affiliate transactions rules must account for all transactions with that would ‘‘deal with any affiliated authorize three valuation methods for these affiliates ‘‘in accordance with manufacturing entity only on an arm’s determining the amounts carriers accounting principles designated or length’’ basis. We stated that ‘‘the should record in their Part 32 accounts approved by the Commission.’’ transfer of any products’’ between this for services they provide to or obtain separate corporate entity and ‘‘any from affiliates: (1) tariffed rates; (2) b. Accounting Requirements of Sections affiliated equipment manufacturer must prevailing company prices; and (3) fully 272 (b)(2) and (c)(2) be done at a price that is distributed costs. Carriers must record 68. Section 272(b)(2) requires the compensatory.’’ We also stated that, services provided to an affiliate separate affiliates prescribed under ‘‘[t]o police this requirement, we pursuant to tariff at the tariffed rate. If Section 272(a)(2) to ‘‘maintain books, [would] require that any transaction an affiliate provides a non-tariffed records, and accounts in the manner between the enhanced services service to its regulated carrier that it prescribed by the Commission which subsidiary and any other affiliate which also provides to third parties, the carrier 40172 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules must record the transaction at the is the seller, and at the lower of net book buyer or transferee appears more likely prevailing company price. All other cost and estimated fair market value to achieve these statutory objectives. We affiliate services must be recorded at the when the carrier is the purchaser. In propose to continue to define the service provider’s fully distributed contrast, the Commission required applicable cost benchmarks as net book costs. carriers to record all non-tariffed cost for asset transfers and fully 73. As stated above, the Commission services other than those having distributed costs for service transfers. has released an Affiliate Transactions prevailing company prices at the Our proposed rule, viewed in light of Notice that proposes certain rule providers’ fully distributed costs. other changes detailed below, would changes to provide greater protection 77. If we apply our affiliate form part of a rational and streamlined against subsidization. We discuss transactions rules, with the changes approach to affiliate transactions. This certain of these proposed changes proposed in this Notice, to transactions proposed rule would also reduce the below. We solicit comment concerning between the BOC and its affiliates incentive to record an affiliate whether our affiliate transactions rules, engaged in the manufacturing, transaction as a provision of a service, with the proposed changes, would be origination of interLATA rather than an asset transfer, especially necessary or sufficient to ensure telecommunications services and in the context of procurement activities. compliance with the ‘‘arm’s length’’ interLATA information services We seek comment on whether these requirement of Section 272(b)(5). described in Section 272(a)(2) of the modifications would better meet the 74. We also seek comment on whether 1996 Act, we believe we should objectives of Section 272. We also ask and, if so, how we should amend our consider prescribing uniform valuation commenters to discuss whether, and rules to address Section 272(b)(5)’s methods for all affiliate transactions. In under what circumstances, we should requirement that all transactions be the Affiliate Transactions Notice, we allow carriers and their affiliates to use ‘‘reduced to writing and available for tentatively concluded that our treatment any alternative valuation methods. We public inspection.’’ We ask the of the provision of services that are also seek comment on how the commenters to address in particular neither tariffed nor subject to prevailing elimination of a sharing obligation from whether Internet access to information company prices may reward a carrier’s our price cap rules would affect the about these transactions would be imprudent acts of buying services for validity of our tentative conclusion in sufficient to comply with this more than, and selling services for less the Affiliate Transactions Notice that requirement ‘‘for public inspection.’’ We than, fair market value. By requiring our treatment of the provision of also invite commenters to suggest any carriers to record services they sell to services that are neither tariffed nor other methods we could implement to nonregulated affiliates at the carriers’ subject to prevailing company prices comply with Section 272(b)(5). We seek fully distributed costs even when those may reward a carrier’s imprudent acts of further comment about whether we costs are less than what non-affiliates buying services for more than, and need to adopt safeguards to protect any would pay the carriers, the rules selling services for less than, fair market sensitive or confidential information motivate carriers to sell services for less value. that these publicly available documents than fair market value. Similarly, by may contain. permitting carriers to record services 79. Section 272(e)(3) requires that ‘‘[a] 75. We note that Section 272(e)(1) purchased from nonregulated affiliates Bell operating company and an affiliate requires a ‘‘Bell operating company and at the affiliates’ fully distributed costs, that is subject to the requirements of an affiliate that is subject to the even when those costs exceed what the section 251(c) * * * shall charge the requirements of section 251(c)’’ to carriers would pay non-affiliates, the affiliate described in subsection (a) or ‘‘fulfill any requests from an unaffiliated rules motivate carriers to pay more than impute to itself (if using the access for entity for telephone exchange service fair market value for services. If these its provision of its own services), an and exchange access service within a increased costs are reflected in rates for amount for access that is no less than period no longer than the period in regulated telecommunications services, the amount charged to any unaffiliated which it provides such telephone ratepayers may be harmed. Ratepayers interexchange carriers for such service.’’ exchange service and exchange access to and service providers not affiliated with Section 272(e)(4) states that ‘‘[a] Bell itself or to its affiliates.’’ We interpret carriers may also be harmed if the operating company and an affiliate that ‘‘transactions’’ under Section 272(b)(5) valuation methods for affiliate is subject to the requirements of section to include requests by an affiliate to its transactions induce carriers and their 251(c) * * * may provide any BOC for telephone exchange service or affiliates to ‘‘use services that are not interLATA or intraLATA facilities or exchange access. We seek comment on competitive to subsidize services that services to its interLATA affiliate if such this interpretation. We also seek are subject to competition,’’ thereby services or facilities are made available comment on whether we should require putting service providers not affiliated to all carriers at the same rates and on information about such transactions to with the carrier at a competitive the same terms and conditions, and so be made publicly available and, if so, disadvantage. long as the costs are appropriately whether we need to adopt safeguards to 78. Because of the concerns identified allocated.’’ We invite comment on how protect any sensitive or confidential in the preceding paragraph, we believe these requirements should affect our information related to such transactions. that the current rules regarding the rules for implementing the ‘‘arm’s valuation of affiliate services may not be length’’ requirement of Section i. Identical Valuation Methods for consistent with the requirement of 272(b)(5). We also invite comment on Assets and Services Section 272(b)(5) for ‘‘transactions whether we should adopt specific 76. In the Joint Cost Order, we did not ** * on an arm’s length basis.’’ accounting procedures to address the prescribe uniform valuation methods for Requiring that affiliate transactions that difference, if any, between the rates all affiliate transactions. In particular, if do not involve tariffed assets or services charged by BOCs when they provide an asset transfer was neither tariffed nor be recorded at the higher of cost and interLATA or intraLATA facilities or subject to prevailing company prices, estimated fair market value when the services on a separated basis and ‘‘the we required carriers to record the carrier is the seller or transferor, and at costs [that would be] appropriately transfer at the higher of net book cost the lower of cost and estimated fair allocated’’ for the underlying facilities and estimated fair market value when it market value when the carrier is the or services. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40173 ii. Prevailing Company Prices value asset transfers could permit appraisals in the normal course of 80. The prevailing price method affiliates to charge inflated prices to the business, we believe a more stringent describes the use of the price at which BOC. This would allow nonregulated approach would impose unnecessary a company offers an asset or service to affiliates to receive added revenue that burdens and costs on the BOCs and the general public to establish the value could permit the nonregulated affiliate other incumbent local exchange carriers. of the affiliate transaction. Generally, to price other competitive assets and We believe that a good faith requirement when a carrier transfers assets or services lower to the detriment of fair would help ensure that affiliates provides services to an affiliate or the competition. An additional problem in covered by Section 272 ‘‘conduct all affiliate transfers assets or provides determining a prevailing price arises transactions with the [BOC] of which it services to the carrier and either the because of the nature of the products is an affiliate on an arm’s length basis.’’ 84. While we propose not to prescribe carrier or affiliate conducts similar and services that an affiliate may methodologies for estimating fair market transactions with the non-affiliates, the transfer. ‘‘[R]egulatory requirements that value, we seek comment on whether we transfer or service price with non- [BOCs] buy equipment competitively should set criteria for determining what affiliates should become the benchmark crumble quickly when the product constitutes a good faith estimate of fair price for defining the value of the being purchased is technically complex market value. For example, if a transaction. Although the prevailing and readily differentiated.’’ 82. We, therefore, seek comment on transaction is subject to reasonable price appears to represent the price that the benefits of our proposal to amend independent valuation methods, we would be paid in an arm’s length our affiliate transactions rules to believe that carriers should continue to transaction, prevailing price in affiliate eliminate the valuation of affiliate ascertain fair market value by applying transactions may not reflect fair market transactions based on prevailing prices these methods to demonstrate their good value primarily because of the different for transactions between a BOC and its faith. If companies making certain nature of affiliate and non-affiliate affiliates engaged in the manufacturing, purchases routinely solicit competitive transactions. In competitive markets, interLATA telecommunications bids, survey potential suppliers, or companies devote significant resources origination and interLATA information obtain independent appraisals, to retaining and attracting customers services described in Section 272(a)(2). companies should continue to employ including sales presentations, Under this proposal, transactions from these methods to determine fair market advertising campaigns, discounts for the carrier to the nonregulated affiliate value. Thus, carriers could support volume purchases, or long-term would be recorded at tariffed rates, if affiliate transactions involving real commitments. Most affiliate applicable, or at the higher of fair estate transfers by means of transactions, however, take place in an market value or fully distributed cost. independent appraisals. entirely different environment. Sales Transactions from the nonregulated 85. In situations involving between affiliates generally do not affiliate to the carrier would be recorded transactions that are not easily valued, require extensive marketing efforts and at the lower of fully distributed cost or we seek comment on whether we involve lower transactional costs than fair market value. should still require carriers to support sales to non-affiliates. We invite their valuations by reasonable and comment on whether affiliate iii. Estimates of Fair Market Value appropriate methods. For example, for transactions conducted ‘‘on an arms’s 83. In prior portions of this NPRM, we some assets or services a carrier might length basis’’ will necessarily entail the propose to adopt identical valuation determine that an independent same marketing efforts and transactional methodologies for assets and services appraisal would be difficult, if not costs as sales to non-affiliates. We also which would require the carrier to impossible, to obtain or be prohibitively invite comment on what, if any, effect record most affiliate transactions at the expensive. In this case, a good faith any differences in those efforts and costs higher of net book cost and estimated attempt to ascertain fair market value should have on our decision regarding fair market value when the carrier is the might include supporting the the use of the prevailing price method seller, and at the lower of net book cost transaction with computations or for recording affiliate transactions and estimated fair market value when studies that utilize methods and between BOCs and their affiliates the carrier is the buyer. These proposals principles that an independent engaged in manufacturing, interLATA implicitly assume that there is an appraiser would apply. This could telecommunications origination and observable fair market value for any mean, if possible, obtaining comparable interLATA information services as assets and services that a carrier and its sales information, computing values by described in Section 272(a)(2). nonregulated affiliates might provide applying a responsible capitalization 81. Our experience with the each other, and that reasonable efforts rate on cash flow, or determining prevailing price method has revealed will enable the carrier to discover that replacement value. We note that nothing the difficulty of defining what value. We believe that the procedures discussed in this Notice would exempt constitutes a prevailing price. When a carriers use in estimating fair market carriers from their statutory obligation nonregulated affiliate transfers assets or value should vary with the under Section 220(c) to justify their provides services to the carrier and non- circumstances of the transaction and accounting entries. We invite comment affiliates, the question becomes what consequently that we should not specify on our proposal to allow good faith percentage of an affiliate’s overall the methodologies that carriers must attempts to determine fair market value business must be provided to non- follow to estimate fair market value. We in affiliate transactions. affiliates in order to establish a instead propose to require carriers to prevailing company price. If the make good faith determinations of the iv. Tariffed-based Valuation percentage of third-party business is fair market value, where such a 86. Finally, we seek comment about small, there may not be enough valuation is required under the affiliate the status of tariff-based valuation if participants in the market to ensure that transactions rules. While this incumbent local exchange carriers are the price equals the price the carrier and methodology will limit appraisals to not required to provide interconnection the affiliate would have negotiated ‘‘on transactions, such as building sales and and collocation services and network an arm’s length basis.’’ In such other transfers of major assets, for which elements pursuant to tariffs. Under situations, using prevailing prices to nonregulated companies obtain Section 252, it may be that the BOC 40174 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules would submit agreements adopted by indices or the sharing zones for carriers telecommunications services also negotiations or arbitration to State subject to price cap regulation, the present a potential for improper commissions for approval or rejection impact of any represcription of this rate subsidization, we tentatively conclude without ever filing a tariff. of return on price cap LECs would be that we should apply our affiliate Alternatively, the BOCs may file limited. In addition to affecting cost transactions rules to transactions statements of generally available terms calculations for affiliate transactions, as between each BOC and any interLATA pursuant to Section 252(f) that would we propose above, a represcription may telecommunications services affiliate it state the terms on which these LECs change the amounts that price cap LECs establishes under Section 272(a). We would provide services to all customers receive from the universal service fund invite comment on this tentative who desire them. We seek comment on or pay for long-term support of NECA’s conclusion. We also invite comment on whether, and the extent to which, our common line pool and the amounts whether and how we should adapt our affiliate transactions rules should be those LECs pay the telecommunications affiliate transactions rules if applied to amended to substitute rates appearing in relay services fund to give persons with such transactions and, in particular, such publicly filed agreements and hearing or speech impairments full whether we should adopt special statements for tariffed rates where access to the voice communications valuation methodologies for these affiliates could subscribe to services network. We seek comment on whether transactions to recognize the regulated under such generally available terms. we should require the BOCs to use the status of the affiliates on both sides of We also seek comment on whether such prescribed interstate rate of return for the transactions. amendments would be consistent with, valuing their transactions with their 90. Section 272 does not prohibit a or required by, Sections 272(e)(3) and affiliates engaged in the manufacturing BOC from providing manufacturing and 272(e)(4). activities, in-region telecommunications interLATA information services services origination and interLATA v. Return Component for Allowable described in Section 272(a)(2) through information services described in Costs the same affiliate by which it provides Section 272(a)(2). 87. In the Joint Cost Proceeding, the origination of interLATA Commission determined that fully d. Application to InterLATA telecommunications services described distributed costs should include a Telecommunications Affiliates in the same section. It also does not return on investment, but no ‘‘profit’’ in 89. We propose to apply our affiliate prohibit that affiliate from engaging in excess of the return then prescribed for transactions rules to transactions other activities not regulated under Title the carrier’s interstate regulated between a BOC and any affiliates it II. We seek comment on whether in this activities. Consequently, carriers that establishes under Section 272(a) Under context we should apply our cost utilize fully distributed cost to value that provision, a BOC, including any allocation rules to prevent subsidization affiliate transactions include in their affiliate, ‘‘which is a local exchange of nonregulated activities, including cost computations a component for rate carrier that is subject to the manufacturing and interLATA of return. We believe we should requirements of section 251(c)’’ may not information services, by subscribers to consider allowing all carriers providing provide in-region interLATA interLATA telecommunication services. directly, or indirectly through an telecommunications services, In particular, we seek comment on affiliate, the services that are the subject interLATA information services, or what, if any, authority Section 254(k) of Section 272 to use a uniform rate of manufacturing unless it provides those extends to our application of our cost return to value affiliate transactions. services through one or more affiliate. allocation rules to affiliates engaged in Adopting numerous rates of return Any transactions between a BOC and its regulated and nonregulated activities. would impose a significant compliance interLATA information services or e. Application to Joint Marketing burden on the industry. In addition, the manufacturing affiliates would be use of various rates of return could favor subject to our existing affiliate 91. Although Section 272(b)(3) certain telecommunications service transactions rules, because neither requires [the affiliate] to ‘‘have separate providers and disadvantage others. interLATA information services nor officers, directors, and employees from Moreover, allowing carriers to manufacturing are regulated activities the Bell operating company of which it determine their own rate of return under Title II. InterLATA is an affiliate,’’ Section 272(g)(2) allows would increase the likelihood that an telecommunications services, however, the BOC to ‘‘market or sell interLATA affiliate will fail to ‘‘conduct all are regulated under Title II, and, absent service provided by an affiliate required transactions with the [BOC] of which it a Commission requirement to the by [Section 272] . . . [after] such is an affiliate an arm’s length basis[,]’’ as contrary, the affiliates that offer those company is authorized to provide required by Section 272(b)(5). From a services would therefore classify interLATA services in such State under regulatory standpoint, the Commission interLATA telecommunications services section 271(d).’’ In our companion BOC would have a difficult, if not as regulated for Title II accounting In-Region NPRM, we seek comment on impossible, burden if it had to engage in purposes. Our existing affiliate whether an affiliate may share numerous prescription proceedings and transactions rules are solely designed marketing personnel with a BOC, and if then monitor compliance with each. for transactions between regulated so, what corporate and financial 88. The Commission has prescribed a carriers and their nonregulated arrangements are necessary to comply unitary, overall rate of return for those affiliates. To help protect against with sections 272(b)(3), 272(b)(5) and incumbent local exchange carriers still improper subsidization, we have 272(g)(2). If an affiliate may share subject to rate-of-return regulation to already determined that out-of-region marketing personnel with a BOC, we use in computing interstate revenue interstate, interexchange services tentatively conclude that we should requirements, unless a carrier can show provided by BOC affiliates should be apply our cost allocation and affiliate that such use would be confiscatory. treated as nonregulated for accounting transactions rules, as we propose to The current prescribed rate of return on purposes. Thus, our affiliate modify them in this Notice, to any joint interstate services is 11.25 percent. transactions rules apply to transactions marketing on interLATA and local Because the rate-of-return represcription between the BOCs and those affiliates. exchange services. We seek comment will not affect either the price cap Because BOC in-region interLATA whether and the extent to which any Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40175 additional accounting safeguards may NPRM, we believe that each of these and its affiliate engaged in the be necessary. activities requires a different analysis. manufacturing, origination of We state elsewhere in this Notice our interLATA telecommunications services f. Audit Requirements tentative conclusions and analysis and interLATA information services 92. Section 272(d) states that regarding telemessaging, interLATA described in Section 272(a)(2). Section companies required to maintain a telecommunications services, and 273 requires a standard-setting separate affiliate under Section 272 manufacturing activities. We also organization that certifies ‘‘shall obtain and pay for a Federal/State tentatively conclude that we should telecommunications equipment or audit every 2 years conducted by an apply our analysis for telemessaging to customer premises equipment independent auditor to determine other interLATA information services manufactured by an unaffiliated entity whether such company complied with covered by Section 272. We seek to ‘‘only manufacture a particular class this section and the regulations comment on this tentative conclusion. of telecommunications equipment or promulgated under this section, and customer premises equipment for which particularly whether such company has 2. Section 273—Manufacturing by it is undertaking or has undertaken, complied with the separate accounting Certifying Entities during the previous eighteen months, requirements under [Section 272(b)].’’ a. Statutory Language certification activity * * * through a The independent auditor ‘‘shall submit separate affiliate.’’ Section 273(d)(3)(B) 95. Section 273(d) of the 1996 Act the results of the audit to the requires that the separate affiliate of the requires certain standard-setting Commission and to the State standard-setting organization ‘‘maintain organizations to maintain separate commission of each State in which the books, records, and accounts separate affiliates in order to engage in certain company audited provides service, from those of the entity that certifies types of manufacturing. Under Section which shall make such results available such equipment, consistent with 273(d)(3), when such a standard-setting for public inspection.’’ Interested generally acceptable accounting organization certifies persons may then submit comment on principles[,]’’ and to ‘‘have segregated telecommunications equipment or the final audit report. facilities and separate employees’’ from 93. We tentatively conclude that the customer premises equipment the certifying entity. As a threshold independent auditor’s report should be manufactured by an unaffiliated entity, question, we seek comment on whether filed with the Commission and each the certifying entity ‘‘shall only and, if so, how Section 273’s different relevant State commission and should manufacture a particular class of statutory language requires or permits include a discussion of: (1) the scope of telecommunications equipment or different accounting treatment from that the work conducted, with a description customer premises equipment for which required or permitted for BOCs under of how the affiliate’s or joint venture’s it is undertaking or has undertaken, Section 272. Specifically, we seek books were examined and the extent of during the previous eighteen months, comment whether we should apply our the examination; (2) the auditor’s certification activity * * * through a affiliate transactions rules, as we conclusion whether examination of the separate affiliate.’’ [N]otwithstanding propose to modify them, to transactions books has revealed compliance or non- [Section 273(d)(3)],’’ Section between a certifying entity and the compliance with the affiliate 273(d)(1)(B) prohibits ‘‘Bell affiliate it must maintain under Section transactions rules and any non- Communications Research, Inc., or any 273(d). We note that our existing rules discrimination requirements in the successor entity or affiliate’’ from would not cover transactions between a Commission rules; (3) any limitations ‘‘engag[ing] in manufacturing certifying entity and its affiliate where imposed on the auditor in the course of telecommunications equipment or that certifying entity is not also a its review by the affiliate or joint customer premises equipment as long as regulated carrier. We, therefore, seek venture or other circumstances that it is an affiliate of more than 1 otherwise comment on whether, and to what might affect the auditor’s opinion; and unaffiliated [BOC] or successor or assign extent, we should modify our affiliate (4) a statement by the auditor that the of any such company.’’ transactions rules to govern such carrier’s cost allocation methodologies 96. Section 273(d)(3)(B) requires the transactions. conform to the Communications Act of separate affiliate to ‘‘maintain books, 98. In addition to the accounting 1934, as amended, and the records, and accounts separate from safeguards for BOC entry into Commission’s rules and that the carrier those of the entity that certifies such manufacturing set forth in Section 272 has accurately applied the equipment, consistent with generally as discussed above, we note that Section methodologies described in those rules. acceptable accounting principles[,]’’ and 273(g) specifically authorizes ‘‘[t]he We seek comment on the necessity or to ‘‘have segregated facilities and Commission [to] prescribe such desirability of using such an approach separate employees’’ from the certifying additional rules and regulations as the to satisfy the requirements of Section entity. Section 273(g) permits ‘‘[t]he Commission determines necessary 272(d). We also seek comment on Commission [to] prescribe such ** * to prevent cross-subsidization in whether the independent auditor’s additional rules and regulations as the a [BOC’s] dealings with its affiliates and report should address whether the Commission determines necessary to with third parties.’’ We tentatively carrier has complied with Sections carry out the provisions of this section, conclude that application of our affiliate 272(e)(3) and 272(e)(4). and otherwise to prevent discrimination transactions rules, as we propose to and cross-subsidization in a [BOC’s] modify them, to BOCs engaged in g. Scope of Commission’s Authority dealings with its affiliates and with activities under Section 273 would be 94. Section 272 of the 1996 Act, by its third parties.’’ sufficient to satisfy this provision of the terms, covers transactions between a b. Comparison of Sections 273 and 272 1996 Act. We seek comment on this BOC and its affiliates engaged in the tentative conclusion. manufacturing activities, origination of 97. Both Sections 272 and 273 require interLATA telecommunications the use of a separate affiliate to engage c. Scope of Commission’s Authority services, and interLATA information in different specified activities. We have 99. Section 273 provides that a BOC services described in Section 272(a)(2). already proposed accounting safeguards may manufacture and provide As we have done in the BOC In-Region to govern transactions between a BOC telecommunications equipment and 40176 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules customer premises equipment if the venture.’’ Section 274(i)(9) defines joint venture, or affiliate, such services Commission authorizes that BOC to ‘‘separated affiliate’’ as ‘‘a corporation shall be made available to all electronic provide interLATA services under under common ownership or control publishers on request, on Section 271(d). Section 273 also sets out with a Bell operating company that does nondiscriminatory terms.’’ Section safeguards for BOC manufacturing not own or control a Bell operating 274(c)(2)(B) states that ‘‘[a] Bell activities. We tentatively conclude that company and is not owned or controlled operating company may engage in the provisions of this section apply to by a Bell operating company and that nondiscriminatory teaming or business all BOC manufacturing activities, engages in the provision of electronic arrangements to engage in electronic irrespective of any jurisdictional publishing which is disseminated by publishing with any separated affiliate distinction. First, much like Sections means of such Bell operating company’s or with any other electronic publisher if 271 and 272, Section 273 sets the or any of its affiliate’s basic telephone (i) the Bell operating company only conditions for BOC entry into service.’’ Section 274(i)(8), in turn provides facilities, services, and basic manufacturing. Thus, as with Sections defines ‘‘own’’ as having ‘‘a direct or telephone service information as 271 and 272, we believe that Section indirect equity interest (or the authorized by [Section 274], and (ii) the 273 was meant to supersede the MFJ, equivalent thereof) of more than 10 Bell operating company does not own and to replace it for both interstate and percent of an entity, or the right to more such teaming or business arrangement.’’ intrastate activities, to the extent that than 10 percent of the gross revenues of Lastly, Section 274(c)(2)(C) permits ‘‘[a] such a jurisdiction division makes sense an entity under a revenue sharing or Bell operating company or affiliate [to] in the context of manufacturing. Section royalty agreement.’’ Section 274(i)(4) participat[e] on a nonexclusive basis in 273 conditions entry into manufacturing states that ‘‘control’’ has the meaning electronic publishing joint ventures on the BOC’s obtaining Commission that it has in 17 CFR 240.12b–2, the with entities that are not a Bell approval for interLATA entry under regulations promulgated by the operating company, affiliate, or Section 272. This relationship between Securities and Exchange Commission separated affiliate to provide electronic Sections 272 and 273 further suggests pursuant to the Securities Exchange Act publishing services, if the Bell operating that they should both be read to have of 1934 (15 U.S.C. 78a et seq.) or any company or affiliate has not more than the same jurisdictional reach. successor provision to such section.’’ a 50 percent direct or indirect equity 100. Moreover, we tentatively Section 274(i)(5) defines an ‘‘electronic interest (or the equivalent thereof) or the conclude that although Section 2(b) of publishing joint venture’’ as ‘‘ a joint right to more than 50 percent of the the Communication Acts limits the venture owned by a Bell operating gross revenues under a revenue sharing Commission’s authority over ‘‘charges, company or affiliate that engages in the arrangement or royalty agreement in any classifications, practices, services, provision of electronic publishing electronic publishing joint venture.’’ facilities, or regulation for or in which is disseminated by means of such Under Section 274(c)(2)(C), ‘‘[o]fficers connection with intrastate Bell operating company’s or any of its and employees of a Bell operating communications service,’’ we affiliates’ basic telephone service.’’ company or affiliate participating in an tentatively conclude the manufacturing 102. Under Section 274(b), the electronic publishing joint venture may activities addressed by Section 273 are ‘‘separated affiliate’’ or joint venture not have more than 50 percent of the not within the scope of Section 2(b). ‘‘shall be operated independently from voting control over the electronic Even if Section 2(b) applies with respect the [BOC].’’ The ‘‘separated affiliate’’ or publishing joint venture.’’ ‘‘In the case to BOC manufacturing under Section joint venture and the BOC with which of joint ventures with small, local 273, we tentatively find that such it is affiliated must ‘‘carry out electronic publishers, the Commission manufacturing activities plainly cannot transactions (i) in a manner consistent for good cause shown may authorize the be segregated into interstate and with such independence, (ii) pursuant Bell operating company or affiliate to intrastate portions. We invite comment to written contracts or tariffs that are have a larger equity interest, revenue on what role States might have in filed with the Commission and made share, or voting control but not to implementing Section 273’s accounting publicly available, and (iii) in a manner exceed 80 percent.’’ A BOC safeguards provisions, assuming the that is auditable in accordance with participating in an electronic publishing correctness of these beliefs, and, in generally accepted auditing standards.’’ joint venture ‘‘may provide promotion, particular, whether in enacting Section The ‘‘separated affiliate’’ or joint marketing, sales, or advertising 273, Congress intended to eliminate our venture must also ‘‘value any assets that personnel and services to such joint ability to allow the States to depart from are transferred directly or indirectly venture.’’ the federal cost allocation procedures in from the [BOC] to a separated affiliate or 104. Section 274(d) requires a ‘‘Bell their regulation of ‘‘charges * * * for or joint venture, and record any operating company under common in connection with intrastate transactions by which such assets are ownership or control with a separated communications service[s].’’ We ask the transferred, in accordance with such affiliate or electronic publishing joint commenters also to address whether regulations as may be prescribed by the ** * [to] provide network access and preemption in this area would be Commission or a State commission to interconnections for basic telephone necessary to achieve the intent behind prevent improper cross-subsidies.’’ service to electronic publishers at just Section 273 or whether less intrusive 103. Section 274(c)(2) discusses the and reasonable rates that are tariffed (so measures would be sufficient. joint activities permitted under Section long as rates for such services are 274. Section 274(c)(2)(A) provides that subject to regulation).’’ Those rates 3. Section 274—Electronic Publishing ‘‘[a] Bell operating company may cannot be ‘‘higher on a per-unit basis 101. Section 274 of the 1996 Act provide inbound telemarketing or than those charges for such services to prescribes the terms under which a BOC referral services related to the provision any other electronic publisher or any may offer electronic publishing. Section of electronic publishing for a separated separated affiliate engaged in electronic 274(a) permits a BOC or its affiliate to affiliate, electronic publishing joint publishing.’’ provide electronic publishing over its or venture, affiliate, or unaffiliated its affiliate’s basic telephone service electronic publisher, provided that if a. Comparison of Sections 274 and 272 only through a ‘‘separated affiliate’’ or such services are provided to a 105. The language of Section 274’s an ‘‘electronic publishing joint separated affiliate, electronic publishing structural and transactional Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40177 requirements differs from the structural transactions methodologies conform to accounting, bookkeeping, or record and transactional requirements of the Communications Act of 1934, as keeping requirements for these affiliates Section 272. We invite comment on amended, and the Commission’s rules and joint ventures, and, if so, what those whether the distinction between a and whether the carrier has accurately additional requirements should be. ‘‘separated affiliate’’ under Section 274 applied the methodologies. We seek 110. Under Section 274(b), the and a ‘‘separate affiliate’’ under Section comment on the necessity or desirability ‘‘separated affiliate’’ or joint venture 272 requires or permits different of this approach. ‘‘shall be operated independently from accounting treatment for affiliate 107. Section 274(b)(9) states a the [BOC].’’ The ‘‘separated affiliate’’ or transactions pursuant to Sections 272 separated affiliate or joint venture and joint venture and the BOC with which and 274. Specifically, we seek comment the BOC with which it is affiliated shall it is affiliated must ‘‘carry out whether we should apply our affiliate ‘‘within 90 days of receiving a review transactions (i) in a manner consistent transactions rules, as we propose to described in [Section 274(b)(8)], file a with such independence, (ii) pursuant modify them, to transactions between a report of any exceptions and corrective to written contracts or tariffs that are BOC and its electronic publishing joint action with the Commission and allow filed with the Commission and made venture or ‘‘separated affiliate.’’ We seek any person to inspect and copy such publicly available, and (iii) in a manner comment on whether application of review subject to reasonable safeguards that is auditable in accordance with these rules would provide adequate to protect any proprietary information generally accepted auditing standards.’’ accounting safeguards for the joint contained in such report from being We seek comment on the meaning of ‘‘in activities permitted under Section used for purposes other than to enforce a manner consistent with such 274(c)(2). Because Section 274 allows a or pursue remedies under [Section independence.’’ We also seek comment BOC to provide electronic publishing 274].’’ We seek comment regarding what as to whether any regulations are through either a ‘‘separated affiliate’’ or ‘‘reasonable safeguards’’ may be necessary to implement Sections 274 a joint venture, we also seek comment necessary to protect proprietary (b)(3)(A) and (b)(3)(B). on whether we should distinguish, for information in the compliance review 111. We further seek comment on Title II accounting purposes, between report ‘‘from being used for purposes whether and, if so, how we should other than to enforce or pursue remedies transactions involving a BOC and its amend our rules to implement the under [Section 274].’’ ‘‘separated affiliate’’ and those involving requirement that transactions under a BOC and its electronic publishing c. Section 274(f)’s Reporting Section 274(b)(3)(C) be ‘‘auditable in joint venture. Requirement accordance with generally accepted b. Audit Requirements 108. Section 274(f) requires ‘‘[a]ny auditing standards.’’ Generally accepted 106. Section 274(b)(8) requires separated affiliate under [Section 274 to] auditing standards refer to standards electronic publishing ‘‘separated file with the Commission annual reports and guidelines promulgated by the affiliates’’ or joint ventures and the BOC in a form substantially equivalent to the American Institute of Certified Public with which they are affiliated to have Form 10–K required by regulations of Accountants that an independent performed an annual compliance review the Securities and Exchange auditor must follow when preparing for ‘‘conducted by an independent entity Commission.’’ The Form 10–K contains and conducting an audit of a company’s for the purpose of determining a description of the company filing the financial statements. These standards compliance during the preceding report and its operations, financial generally require that the auditor review calendar year with any provision of statements with supporting financial a company’s internal controls and [Section 274].’’ The results of such a data, and major legal and financial determine whether adequate review must be maintained by the disclosures concerning the company. documentation exists to verify that the ‘‘separated affiliate’’ or the joint venture We tentatively conclude that, to company has recorded transactions on for a five-year period. We seek comment minimize burdens on the filing its books in a manner consistent with regarding how such compliance reviews companies, we should require the generally accepted accounting should be conducted. We ask separated affiliate to file the Form 10– principles. commenters to address specifically what K with us as well as the Securities and 112. According to Section 274(b)(4), matters the annual compliance review Exchange Commission. We recognize, the ‘‘separated affiliate’’ or joint venture should encompass. We propose to however, that not all separated affiliates must also ‘‘value any assets that are require the independent entity to providing electronic publishing services transferred directly or indirectly from prepare and file with the Commission would be subject to the Security and the [BOC] to a separated affiliate or joint reports describing: (1) the scope of its Exchange Commission’s Form 10–K venture, and record any transactions by compliance review, with a description requirement. With regard to these which such assets are transferred, in of how the affiliate’s or joint venture’s separated affiliates, we seek comment accordance with such regulations as books were examined and the extent of on what ‘‘substantially equivalent to the may be prescribed by the Commission the examination; (2) the independent Form 10–K’’ means under Section or a State commission to prevent entity’s conclusion whether 274(f). improper cross-subsidies.’’ We have examination of the books has revealed proposed in this Notice to conform our compliance or non-compliance with the d. Section 274 Transactional valuation methods under the affiliate affiliate transactions rules and any other Requirements transactions rules for the provision of non-discrimination requirements 109. Section 274(b)(1) requires the services to those governing asset imposed by Commission rules; (3) any ‘‘separated affiliate’’ or joint venture to transfers. Regardless of how we resolve limitations imposed on the independent ‘‘maintain books, records, and accounts that issue, because Section 274 entity in the course of its review by the and prepare separate financial specifically addresses asset transfers affiliate or joint venture or other statements.’’ We invite comment on the between a BOC and its ‘‘separated circumstances that might affect the steps we should take to implement this affiliate’’ or joint venture, we seek entity’s opinion; and (4) statements by provision. We ask the commenters to comment on whether in this case we the independent entity as to whether the address whether it is necessary for the should distinguish between the asset carrier’s accounting and affiliate Commission to adopt any additional transfers and the provision of services in 40178 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules the context of electronic publishing addressed by Section 274 on the 4. Separated Operations Under Sections affiliate transactions. Commission. 260, 271, 275 and 276 e. Scope of Commission’s Authority 116. To ensure a complete record, we 118. While Sections 260, 271, 275 and 276 of the 1996 Act define categories of 113. Although electronic publishing is also seek comment on whether, apart services that BOCs and, in some cases, specifically included within the from any intrastate jurisdiction incumbent local exchange carriers may definition of information service in conferred by Section 274 itself, we have not necessarily have to offer through a Section 3(20), it is specifically exempted authority to preempt State regulation separate affiliate, a BOC or other from the separate affiliate and with respect to the accounting matters incumbent local exchange carrier might, nondiscrimination requirements of addressed by Section 260 pursuant to Section 272. Section 274,which applies Louisiana PSC and, if so, whether we even if not required to do so, choose to only to BOCs, requires the use of a should exercise that authority. We perform these activities through an ‘‘separated affiliate’’ or ‘‘electronic tentatively conclude that if Section 274 affiliate. We note that these sections do not explicitly impose regulatory publishing joint venture’’ in order for a does not apply to intrastate services and requirements for transactions between a BOC to engage in the provision of if we have authority to preempt regulated company and its nonregulated electronic publishing services via basic pursuant to Louisiana PSC, we should telephone services. affiliate. Sections 260, 275 and 276 bar refrain from exercising it in this area the subsidization of the competitive 114. Section 274 imposes a number of and instead retain our prior policy of safeguards on the provision by BOCs of businesses permitted under those not preempting States from using their sections by subscribers of either electronic publishing through a own cost allocation procedures for separated affiliate or electronic exchange access services. Section intrastate purposes. We invite comment 260(a)(1) states that ‘‘[a]ny local publishing joint venture. Unlike on this tentative conclusion. We also Sections 260 and 275, however, Section exchange carrier subject to the invite comment on what role states 274 specifically refers to State requirements of section 251(c) . . . shall might have in implementing Section commission jurisdiction regarding one not subsidize its telemessaging service of these safeguards. Section 274(b)(4) 274’s accounting safeguards provisions, directly or indirectly from its telephone provides that a separated affiliate or given the above analysis. We ask exchange service or its exchange joint venture and the BOC with which commenters to address whether in access.’’ Section 275(b)(2) prohibits the it is affiliated shall: enacting Section 274, Congress intended subsidization of alarm monitoring to foreclose the states from departing services ‘‘either directly or indirectly value any assets that are transferred directly from telephone exchange service or indirectly from the Bell operating from the federal cost allocation company to a separated affiliate or joint procedures for electronic publishing in operations.’’ Section 276(a)(1) bars any venture, and record any transactions by their regulation of ‘‘charges . . . for or BOC that provides payphone service which such assets are transferred, in in connection with intrastate from ‘‘subsidiz[ing] its payphone service accordance with such regulations as may be communications service[s].’’ We also directly or indirectly from its telephone prescribed by the Commission or a State ask the commenters also to address exchange service operations or its commission to prevent improper cross exchange access operations.’’ We subsidies. whether preemption in this area would be necessary to achieve the intent believe that application of our affiliate This explicit reference to State behind Section 274 or whether less transactions rules, as we propose to commission regulations indicates that modify them, to transactions between an intrusive measures would be sufficient. the requirements of this section apply to incumbent local exchange carrier and both interstate and intrastate electronic f. Miscellaneous any of its affiliates engaged in activities publishing services, and at the same that Sections 260, 275 and 276 of the time suggests that the Commission may 117. Section 274(d) also requires a 1996 Act might permit or require the not have exclusive jurisdiction over all ‘‘Bell operating company under carrier to offer through a separate aspects of intrastate services pursuant to common ownership or control with a affiliate would be consistent with these Section 274. In light of this subsection, separated affiliate or electronic statutory mandates. We therefore seek we seek comment on the extent of our publishing joint venture . . . [to] comment on whether we should apply authority, if any, under Section 274 over provide network access and the affiliate transactions rules, with the intrastate electronic publishing services. interconnections for basic telephone proposed modifications, to transactions 115. Section 274(e) also provides that service to electronic publishers at just between an incumbent local exchange any person claiming a violation of this and reasonable rates that are tariffed (so carrier and any of its affiliates engaged section may file a complaint with the long as rates for such services are in activities that Sections 260, 275 and Commission, or may bring suit pursuant subject to regulation) and that are not 276 might permit or require the carrier to Section 207. It also provides that an higher on a per-unit basis than those to offer through a separate affiliate. It is application for a cease and desist order charges for such services to any other important to note, that we tentatively may be made to the Commission, or in electronic publisher or any separated conclude in a companion item, BOC In- any district court. No reference is made affiliate engaged in electronic Region NPRM, that telemessaging, as to complaints being filed with State publishing.’’ We tentatively conclude defined in Section 260, is an commissions. We seek comment on the that we should apply our affiliate information service. BOC provision of extent to which the Commission has telemessaging on an interLATA basis transactions rules, as we propose to jurisdiction under Section 274 over would therefore be subject to the modify them, to the provision of intrastate electronic publishing, separate affiliate and other requirements ‘‘network access and interconnections particularly in light of the specific of Section 272. provisions of Sections 274(b)(4) and for basic telephone service’’ by a BOC 119. We also ask commenters to 274(e). We ask that commenters clearly under common ownership or control to identify any interLATA identify whether specific subsections of ensure compliance with Section 274(d). telecommunications services, other than Section 274 confer intrastate authority We seek comment on this tentative the interLATA telecommunications with respect to accounting matters conclusion. services that Section 272 requires BOCs Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40179 to provide through a separate affiliate, 121. The rules we adopt to prevent service should trigger an adjustment to that the BOCs may choose to provide on the subsidies prohibited by Sections 260 lower price cap indices. We also seek a separated basis and for which we and 271 through 276 of the 1996 will comment on the potential exogenous should develop appropriate affiliate shaped by our price cap regulations. A treatment of new investment in network transactions rules. In the case of such ‘‘pure’’ price cap system would plant, some of which will be used for services, the 1996 Act does not permanently eliminate sharing, claims telemessaging service. As noted above, explicitly impose or require specific for exogenous treatment, and the need this investment may later require regulatory safeguards to prevent for the Commission to consider reallocation under part 64 if the subsidies. All of these interLATA adjustments to productivity factors. proportion of regulated usage to telecommunications services would Under pure price cap regulation, there nonregulatred usage changes over time. would be few incentives to subsidize currently be considered regulated 3. Part 64 and Sharing services for Title II accounting purposes, nonregulated services with revenues and, absent a Commission requirement from regulated telecommunications 124. Under our price cap rules, to the contrary, the affiliates that offer services and the need for accounting incumbent local exchange carriers can these services would therefore classify safeguards to ensure against subsidies select the productivity factor they will them as regulated for Title II accounting would be greatly diminished, unless, of use to determine annual adjustments to purposes. Our existing affiliate course, there are other ways in which their price cap indices. If they choose transactions rules are solely designed to the carrier’s entitlement to any revenues not to select the highest productivity govern transactions between regulated is dependent upon the costs the carrier factor permitted under our rules, they carriers and their nonregulated classifies as regulated. are required to ‘‘share.’’ Under sharing, incumbent local exchange carriers affiliates. Because interLATA 2. Exogenous Costs and Part 64 telecommunications services present a earning in excess of prescribed earnings potential for improper subsidization, we 122. Under our price cap rules for levels must refund a portion of the tentatively conclude that we should incumbent local exchange carriers, most excess earnings in subsequent rate apply our affiliate transactions rules to changes in a carrier’s costs of providing periods by reducing their price cap transactions between each BOC and any regulated services are treated as indices. Those earnings are equal to the interLATA telecommunications services ‘‘endogenous,’’ which means they do incumbent local exchange carrier’s affiliate it establishes. We invite not result in adjustments to the carrier’s interstate revenues less the regulated price cap indices. Certain cost changes, interstate costs. Improper cost allocation comment on this tentative conclusion. however, triggered by administrative, can increase the incumbent local We also invite comment on whether and legislative, or judicial action that are exchange carrier’s regulated interstate how we should adapt our affiliate beyond the control of the carriers may costs and, therefore, can reduce the transactions rules if applied to such result in adjustments to those indices. carrier’s sharing obligations. We note, transactions and, in particular, whether The Commission concluded that failing however, that in their most recent we should adopt special valuation to recognize these cost changes by annual tariff filings all but four price methodologies for these transactions to adjusting price cap indices would either cap local exchange carriers elected the recognize the regulated status of the unjustly punish or reward the carrier. highest interim productivity factor we affiliates on both sides of the Price cap carriers may claim had prescribed,which exempts them transactions. adjustments to their indices based on from sharing obligations for the 1995–96 IV. Other Matters costs that are beyond the carriers’ access year. We seek comment on control if they are not otherwise whether our eliminating sharing A. Price Caps accounted for in the price cap formula. obligations permanently for price cap 1. General Such costs are defined as ‘‘exogenous.’’ carriers would eliminate the need for Accordingly, the Commission has found Part 64 processes in our regulation of 120. Our existing Part 64 cost that those types of cost changes should these companies. We also seek comment allocation rules were developed when be treated ‘‘exogenously’’ to ensure that on how the relationship of our cost all local exchange carriers were subject price cap regulation does not lead to allocation rules to price cap local to cost-based, rate-of-return regulation. unreasonably high or unreasonably low exchange carriers should influence the Today, we rely upon price cap, rather rates. outcome of this proceeding. than rate-of-return, regulation to ensure 123. Our price cap rules for that rates for the interstate services of incumbent local exchange carriers B. Section 254(k) the largest incumbent local exchange specify that ‘‘[s]ubject to further order of 125. Section 254(k) prohibits a carriers, including the BOCs, are the Commission, those exogenous cost telecommunications carrier from reasonable. Many States also have changes shall include cost changes ‘‘us[ing] services that are not moved away from the traditional rate-of- caused by * * * [t]he reallocation of competitive to subsidize services that return regulation by establishing investment from regulated to are subject to competition.’’ Section temporary rate freezes or other price nonregulated activities pursuant to 254(k) further states that ‘‘[t]he cap-like plans. Several State plans that [Section 64.901 of the Commission’s Commission, with respect to interstate were implemented before the rules].’’ Under a strict reading of this services, and the States, with respect to Commission adopted price caps helped rule, cost reallocations due to changes intrastate services, shall establish any to guide us in developing the federal in the Part 64 cost allocation process necessary cost allocation rules, plan. Under the Commission’s plan, would result in exogenous treatment accounting safeguards, and guidelines to price cap indices limit the prices that only to the extent amounts are ensure that services included in the incumbent local exchange carriers may reallocated ‘‘from regulated to definition of universal service bear no charge for their regulated interstate nonregulated activities.’’ We seek more than a reasonable share of the joint services. The indices are adjusted each comment on this interpretation and and common costs of facilities used to year in accordance with a formula that whether all such reallocations to provide those services.’’ We seek accounts for changes in inflation and nonregulated activities that may result comment on whether our proposals industry-wide changes in productivity. from the provision of telemessaging related to Sections 260 and 271 through 40180 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules

276 of the 1996 Act are sufficient to information collections contained in Washington, D.C. 20554. Parties should implement Section 254(k)’s this NPRM, as required by the also file one copy of any documents requirements that carriers not ‘‘use Paperwork Reduction Act of 1995, filed in this docket with the services that are not competitive to Public Law No. 104–13. Public and Commission’s copy contractor, subsidize services that are subject to agency comments are due on August 26, International Transcription Services, competition’’ and that the Commission, 1996 and reply comments are due on Inc. (‘‘ITS’’), 2100 M Street, N.W., Suite ‘‘with respect to interstate services,’’ September 10, 1996; OMB comments are 140, Washington, D.C. 20037. Interested establish rules necessary to ensure that due September 30, 1996. Comments parties can reach ITS by telephone at regulated universal services ‘‘bear no should address: (a) whether the (202) 857–3800. Comments and reply more than a reasonable share of the joint proposed collection of information is comments will be available for public and common costs of facilities used to necessary for the proper performance of inspection during regular business provide those services.’’ the functions of the Commission, hours in the FCC Reference Center, 1919 including whether the information shall M Street, N.W., Room 239, Washington, V. Procedural Issues have practical utility; (b) the accuracy of D.C. 20554. the Commission’s burden estimates; (c) A. Ex Parte Presentations 131. In order to facilitate review of ways to enhance the quality, utility, and comments and reply comments, both by 126. This is a non-restricted notice- clarity of the information collected; and parties and by Commission staff, we and-comment rulemaking proceeding. (d) ways to minimize the burden of the require that comments and reply Ex parte presentations are permitted, collection of information on the comments include a short and concise except during the Sunshine Agenda respondents, including the use of summary of the substantive arguments period, provided that they are disclosed automated collection techniques or raised in the pleading. Comments, as provided in the Commission’s rules. other forms of information technology. exclusive of appendices and summaries B. Regulatory Flexibility Analysis 129. Written comments by the public on the proposed or modified of substantive arguments, shall be no 127. Section 603 of the Regulatory information collection are due on or longer than sixty (60) pages and reply Flexibility Act, as amended, requires an before August 26, 1996 and reply comments no longer than thirty (30) initial regulatory flexibility analysis in comments on or before September 10, pages. notice and comment rulemaking 1996. Written comments must be 132. Parties are also asked to submit proceedings, unless we certify that ‘‘the submitted by the Office of Management comments and reply comments on rule will not, if promulgated, have a and Budget (OMB) on the proposed or diskette. Such diskette submissions significant economic impact on a modified information collections on or would be in addition to and not a significant number of small entities.’’ before [insert date 60 days after substitute for the formal filing The Regulatory Flexibility Act generally publication in the Federal Register.] In requirements addressed above. Parties defines the term ‘‘small entity’’ as addition to filing comments with the submitting diskettes should submit having the same meaning as ‘‘small- Secretary, a copy of any comments on them to Ernestine Creech of the business concern’’ under the Small the information collection contained Common Carrier Bureau’s Accounting Business Act, which defines ‘‘small- herein should be submitted to Dorothy and Audits Division, 2000 L Street, business concern’’ as ‘‘one which is Conway, Federal Communications N.W., Suite 257, Washington, D.C. independently owned and operated and Commission, Room 234, 1919 M Street, 20554. Such a submission should be on which is not dominant in its field of N.W., Washington, DC 20554, or via the a 3.5 inch diskette formatted in a IBM operation * * *.’’ This proceeding Internet to [email protected] and to compatible form using WordPerfect 5.1 pertains to the Bell Operating Timothy Fain, OMB Desk Officer, 10236 for Windows software. The diskette Companies and other incumbent local NEOB, 725 17th Street, N.W., should be submitted in ‘‘read only’’ exchange carriers which, because they Washington, DC 20503 or via the mode. The diskette should be clearly are dominant in their field of Internet to [email protected]. labelled with the party’s name, operations, are by definition not small D. Comment Filing Procedures proceeding, type of pleading (comment entities under the Regulatory Flexibility or reply comments) and date of Act. We therefore certify, pursuant to 130. Pursuant to applicable submission. The diskette should be Section 605(b) of the Regulatory procedures set forth Sections 1.415 and accompanied by a cover letter. Flexibility act, that the rules will not, if 1.419 of the Commission’s rules, 47 CFR promulgated, have a significant §§ 1.415 and 1.419, interested parties E. Additional Information economic impact on a substantial may file comments on or before August number of small entities. The Secretary 26, 1996, and reply comments on or 133. For further information shall send a copy of this NPRM, before September 10, 1996. To file concerning this proceeding, contact including this certification and formally in this proceeding, you must John V. Giusti or Mark B. Ehrlich, statement, to the Chief Counsel for file an original and six copies of all Accounting and Audits Division, Advocacy of the Small Business comments, reply comments, and Common Carrier Bureau at (202) 418– Administration. A copy of this supporting comments. If you want each 0850. certification will also be published in Commissioner to receive a personal VI. Ordering Clauses the Federal Register notice. copy of your comments, you must file an original and eleven copies. 134. Accordingly, it is ordered that, C. Paperwork Reduction Act Comments and reply comments should pursuant to Sections 260 and 271–276 128. This NPRM contains either a be sent to Office of the Secretary, of the 1996 Act and Sections 1, 2, 4, proposed or modified information Federal Communications Commission, 201–205, 215, 218, 220 of the collection. The Commission, as part of 1919 M Street, N.W., Room 222, Communications Act of 1934, as its continuing effort to reduce Washington, D.C. 20554, with a copy to amended, 47 U.S.C. §§ 151(a), 152(b), paperwork burdens, invites the general Ernestine Creech of the Common Carrier 154, 201–205, 215, 218, 220, 260 and public and the Office of Management Bureau’s Accounting and Audits 271–276, that Notice is hereby given of and Budget (OMB) to comment on the Division, 2000 L Street, N.W., Suite 257, proposed amendments to Parts 32 and Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40181

64 of the Commission’s rules, 47 CFR Part 32 and 64, as described in this Notice of proposed rulemaking. 135. It is further ordered that, the Secretary shall send a copy of this Notice of proposed rulemaking, including the regulatory flexibility certification, to the Chief Counsel for Advocacy of the Small Business Administration, in accordance with Section 603(a) of the Regulatory Flexibility Act, 5 U.S.C. §§ 601 et seq. (1981). List of Subjects 47 CFR Part 32 Transactions with affiliates, Regulated accounts. 47 CFR Part 64 Allocation of costs, transactions with affiliates, cost allocation manuals, Independent audits. Federal Communications Commission William F. Caton, Acting Secretary. [FR Doc. 96–19563 Filed 7–31–96; 8:45 am] BILLING CODE 6712±01±M 40182

Notices Federal Register Vol. 61, No. 149

Thursday, August 1, 1996

This section of the FEDERAL REGISTER submission(s) may be obtained by loans, guaranteed or insured by the contains documents other than rules or calling (202) 720–6204 or (202) 720– Rural Business—Cooperative Service proposed rules that are applicable to the 6746. and applies to lenders, holders, public. Notices of hearings and investigations, borrowers, and other parties involved in • Rural Business—Cooperative Service committee meetings, agency decisions and making, guaranteeing, insuring, holding, rulings, delegations of authority, filing of Title: 7 CFR 4279 Subpart B, Business petitions and applications and agency servicing or liquidating such loans. statements of organization and functions are and Industry Loan Program. Need and Use of the Information: The examples of documents appearing in this Summary: This information collection information is needed to make prudent section. contains applications and related credit decisions and to effectively information for business and industry monitor the lender’s servicing activities loans, guaranteed or insured by the and thus minimize losses under the AFRICAN DEVELOPMENT Rural Business—Cooperative Service program. FOUNDATION and applies to lenders, holders, Description of Respondents: Business borrowers, and other parties involved in or other for-profit; State, Local or Tribal Sunshine Act Meeting; Board of making, guaranteeing, insuring, holding, Government. Directors Meeting servicing or liquidating such loans. Number of Respondents: 170. Need and Use of the Information: The Frequency of Responses: Reporting: TIME: 12:00 noon–3:00 p.m. information is needed to make prudent On occasion. PLACE: ADF Headquarters. credit decisions and to effectively Total Burden Hours: 258. DATE: Thursday, 15 August 1996. monitor the lender’s servicing activities • Rural Housing STATUS: Open. and thus minimize losses under the Title: 7 CFR 1944–N, Housing Agenda program. Description of Respondents: Business Preservation Grant Program. 12:00 noon—Lunch or other for-profit; State, Local or Tribal Summary: Information is complied 12:30 p.m.—Chairman’s Report initially by the applicant for 1:00 p.m.—President’s Report Government. 2:00 p.m.—Other Number of Respondents: 500. consideration by the Rural Housing 3:00 p.m.—Adjournment Frequency of Responses: Reporting: Service to determine eligibility for a On occasion; Annually. grant to justify its selection of the If you have any questions or Total Burden Hours: 47,195. applicant for funding. Additional comments, please direct them to Ms. information justifies and supports • Rural Business—Cooperative Service Janis McCollim, Executive Assistant to expenditures of grant funds. the President, who can be reached at Title: 7 CFR 4287–B, Business and Need and Use of the Information: The (202) 673–3916. Industry Loan Program (Servicing). Rural Housing Service uses the William R. Ford, Summary: This information collection information to determine eligibility for President. contains applications and related a grant and to determine if the grantee [FR Doc. 96–19712 Filed 7–30–96; 2:18 pm] information for business and industry is complying with the grant agreement. BILLING CODE 6116±01±P±M loans, guaranteed or insured by the Description of Respondents: Not-for- Rural Business—Cooperative Service profit institutions; Individuals or and applies to lenders, holders, households; Business or other for-profit; DEPARTMENT OF AGRICULTURE borrowers, and other parties involved in State, Local or Tribal Government. making, guaranteeing, insuring, holding, Number of Respondents: 2,050. Submission for OMB Review; servicing or liquidating such loans. Frequency of Responses: Comment Request Need and Use of the Information: The Recordkeeping; Reporting: On occasion; information is needed to make prudent Quarterly. July 26, 1996. credit decisions and to effectively Total Burden Hours: 10,904. The Department of Agriculture has monitor the lender’s servicing activities • Food and Consumer Service submitted the following information and thus minimize losses under the collection requirement(s) to OMB for program. Title: Energy Assistance. review and clearance under the Description of Respondents: Business Summary: State agencies must submit Paperwork Reduction Act of 1995, or other for-profit; State, Local or Tribal certain documentation to FCS in order Public Law 104–13. Comments Government. to obtain approval for an income and regarding these information collections Number of Respondents: 1,240. resource exclusion of state and local are best assured of having their full Frequency of Responses: Reporting: energy assistance. effect if received within 30 days of this On occasion; Quarterly; Annually. Need and Use of the Information: The notification. Comments should be Total Burden Hours: 22,569. information is needed to determine if addressed to: Desk Officer for • payments by State and local Agriculture, Office of Information and Rural Business—Cooperative Service governments are excludable from Regulatory Affairs, Office of Title: 7 CFR 4279 Subpart A, Business household income as energy assistance Management and Budget (OMB), and Industry Guaranteed Loanmaking under the Food Stamp Program enacted Washington, D.C. 20503 and to (General). in 1980. Department Clearance Officer, USDA, Summary: This information collection Description of Respondents: State, PACC–IRM, Ag Box 7630, Washington, contains applications and related Local or Tribal Government. D.C. 20250–7630. Copies of the information for business and industry Number of Respondents: 1. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40183

Frequency of Responses: Reporting: Room 416, BARC–W, Beltsville, Chattahoochee-Oconee National Forests; On occasion. Maryland 20705–2350. September 25, 1985 Total Burden Hours: 4. FOR FURTHER INFORMATION CONTACT: Cherokee National Forest; April 1, 1986 Jefferson National Forest; October 16, • Food and Consumer Service Andrew Watkins of the Office of Technology Transfer at the Beltsville 1985 Sumter National Forest; August 2, 1985 Title: Negative Quality Control address given above: telephone: 301/ Review Schedule—Status of Sample 504–6905. The agency invites written comments Selection and Completion—Statistical within the scope of the analysis SUPPLEMENTARY INFORMATION: The Summary of Sample Disposition. described below. In addition, the agency Federal Government’s plant variety gives notice that an open and full Summary: As part of a Performance protection rights to this variety are Reporting System, each state agency is environmental analysis and decision- assigned to the United States of making process will occur on the required to provide a systematic means America, as represented by the of determining the accuracy of proposed actions so that interested and Secretary of Agriculture. It is in the affected people are aware of how they household eligibility and measuring the public interest to so License this extent to which households receive the may participate and contribute to the invention, for the University of Georgia final decision. food stamp allotment to which they are Research Foundation has submitted a DATES: The agency expects to file the entitled. complete and sufficient application for draft EISs (DEIS) with the Need and Use of the Information: The a license. The prospective exclusive information serves as an objective Environmental Protection Agency and license will be royalty-bearing and will make them available for public measure of program operations at the comply with the terms and conditions state level and is essential to the comment in January of 1998. The of 35 U.S.C. 209 and 37 CFR 404.7. The Agency expects to file the final EISs in determination of a state agency’s prospective exclusive license may be entitlement to an increased federal share December of 1998. Comments granted unless, within ninety days from concerning the scope of the analysis of its administrative costs or liability for the date of this published Notice, ARS sanctions. should be received by December 2, receives written evidence and argument 1996. Description of Respondents: State, which establishes that the grant of the ADDRESSES: Submit written comments Local or Tribal Government; Individuals license would not be consistent with the to Forest Supervisors of the appropriate or households; Federal Government. requirements of 35 U.S.C. 209 and 37 Forest at the following addresses: Number of Respondents: 35,132. CFR 404.7. National Forests in Alabama, 946 Frequency of Responses: R.M. Parry, Jr., Recordkeeping; Reporting: Monthly; Chestnut, Montgomery, AL 36107– Assistant Administrator. Annually. 3010 Total Burden Hours: 107,135. [FR Doc. 96–19519 Filed 7–31–96; 8:45 am] Chattahoochee-Oconee National Forests, Donald E. Hulcher, BILLING CODE 3410±03±M 508 Oak Street, NW, Gainesville, GA 30501 Deputy Departmental Clearance Officer. Cherokee National Forest, 2800 N. [FR Doc. 96–19552 Filed 7–31–96; 8:45 am] Forest Service Ocoee Street (P.O. Box 2010), BILLING CODE 3410±01±M Cleveland, TN 37320–2010 Revised Land and Resource Jefferson National Forest, 5162 Management Plans for the National Valleypointe Parkway, Roanoke, VA Agricultural Research Service Forests in Alabama, Chattahoochee/ 24019 Oconee National Forests, Cherokee Sumter National Forest, 4931 Broad Notice of Intent To Grant Exclusive National Forest, Jefferson National River Road, Columbia, SC 29210– License Forest, and the Sumter National Forest 4021 AGENCY: Agricultural Research Service, AGENCY: Forest Service, USDA. FOR FURTHER INFORMATION CONTACT: USDA National Forests in Alabama: Planning ACTION: Notice of intent to prepare Team Leader—Rick Morgan—phone: ACTION: Notice of availability and intent Environmental Impact Statements to grant exclusive license. (334) 832–4470 (NOI). Chattahoochee-Oconee National Forests: Planning Staff Officer—Caren SUMMARY: Notice is hereby given that a SUMMARY: Pursuant to 36 CFR 219.10(g), Federally owned cultivar of centipede Brisco—phone: (770) 536–0541 the Regional Forester for the Southern Cherokee National Forest: Planning Staff grass, ‘‘TifBlair,’’ is available for Region gives notice of the agency’s licensing and that the United States Officer—Keith Sandifer—phone: (615) intent to prepare Environmental Impact 476–9700 Department of Agriculture, Agricultural Statements (EIS) for the revisions of the Research Service, intends to grant an Jefferson National Forest: Planning Staff Forest Land and Resource Management Officer—Kenneth Landgraf—phone: exclusive license to the University of Plans (Forest Plans) for the above named Georgia Research Foundation. (540) 265–5100 National Forests. For the Jefferson Sumter National Forest: Planning Team Application for a Plant Variety National Forest, this notice revises their Leader—Tony White—phone: (803) Protection Certificate for this cultivar June 28, 1993 notice of intent to prepare 561–4000 has been filed with the Plant Variety an EIS to revise their Forest Plan. RESPONSIBLE OFFICIAL: The Regional Protection Office in the United States According to 36 CFR 219.10(g), forest Department of Agriculture. Forester for the Southern Region located plans are ordinarily revised on a 10–15 at 1720 Peachtree Road, NW, Atlanta, DATES: Comments must be received on year cycle. Several amendments have Georgia 30367, is the responsible or before October 30, 1996. been made to each plan since it official. ADDRESSES: Send comments to: USDA- originated. The existing forest plans ARS-Office of Technology Transfer, were approved on the following dates: Affected Counties Beltsville Agricultural Research Center, National Forests in Alabama; March 10, This Notice of Intent affects the Baltimore Boulevard, Building 005, 1986 following Counties: 40184 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

National Forests in Alabama: Bibb, consolidate and integrate ecological larger-scale analysis in the Southern Calhoun, Cherokee, Chilton, Clay, information for the Chattooga River Appalachian Assessment. Cleburne, Dallas, Hale, Perry, Talladega, Watershed which is located at the The Assessment supports the revision Tuscaloosa, Franklin, Lawrence, junction of North Carolina, South of the LRMPs by describing how the Winston, Covington, Escambia, and Carolina, and Georgia; and includes lands, resources, people and Macon; Alabama. three National Forests. management of the National Forests Chattahoochee-Oconee National Information from these analyses that interrelate within the larger context of Forests: Banks, Catoosa, Chattooga, cross State boundaries and involve the Southern Appalachian area. The Dawson, Fannin, Floyd, Gilmer, multiple National Forests, along with SAA, however, is not a ‘‘decision Gordon, Habersham, Lumpkin, Murray, the individual National Forests efforts to document’’ and it did not involve the Rabun, Stephens, Towns, Union, update their ‘’analysis of the National Environmental Policy Act Walker, White, Whitfield, Green, Jasper, management situation’’ (AMS), are now (NEPA) process. As broad-scale issues Jones, Monroe, Morgan, Oconee, being used by these National Forests to were identified at the sub-regional level Oglethorpe, and Putnam: Georgia. determine what decisions in their Land (Southern Appalachian Mountain area) Cherokee National Forest: Polk, and Resource Management Plans in the Assessment, the individual McMinn, Monroe, Greene, Cocke, (LRMP) should be re-analyzed or National Forest’s role in resolving these Unicoi, Sullivan, Washington, Johnson, changed in revising their LRMPs. broad-scale issues becomes a part of the and Carter; Tennessee. ‘‘need for change’’ at the Forest level. 2. The Southern Appalachian Jefferson National Forest: Letcher and Public involvement has been Assessment Pike; Kentucky—Monroe; West important throughout both of these Virginia—Bedford, Bland, Botetourt, Recently the U.S. Forest Service has processes. Continuing public Carroll, Craig, Dickenson, Giles, participated in the preparation of the involvement leading to formulation of Grayson, Lee, Montgomery, Pulaski, Southern Appalachian Assessment alternatives for the forest plan revision Roanoke, Rockbridge, Scott, Smyth, (SAA). The Assessment culminated in a analysis efforts will now be conducted Tazewell, Washington, Wise, and final Summary Report and four through the ‘‘scoping’’ period that Wythe; Virginia. Technical Reports that are now follows the issuance of this Notice of Sumter National Forest: Abbeville, available to the public. It was prepared Intent. Chester, Edgefield, Fairfield, by the U.S. Forest Service (the Southern 3. The Beginning of the Forest Plan Greenwood, Laurens, McCormick, Region of the National Forest System and the Southern Forest Experiment Revision Efforts for the National Forests Newberry, Oconee, Saluda, and Union; in Alabama, the Chattahoochee-Oconee, South Carolina. Station) in cooperation with the other Federal and state agencies that are the Cherokee, and the Sumter National SUPPLEMENTARY INFORMATION: members of SAMBA (Southern Forests A. Background Information Appalachian Man and the Biosphere The National Forests in the Southern Cooperative). The Assessment included Appalachian area have applied several 1. An Ecological Approach to Planning National Forest system lands and efforts to begin their revisions. The main The general model for an ecological private lands in the George Washington/ objective thus far has been to do the approach to land management planning Jefferson, Nantahala-Pisgah, Cherokee, analysis leading to a proposal to change includes four iterative steps: assessment and Chattahoochee National Forests; forest management direction. A key part decision, implementations, and and parts of the Sumter and Talladega of that analysis, for significant portions monitoring. The first step involves National Forests. Also involved were of each of the forests, has been the SAA. assessment of the forest situation that the National Park Service lands in the On February 24, 1995, a Notice was characterize the biophysical and social Great Smoky Mountains National Park, placed in the Federal Register (Vol. 60, ecosystem components at appropriate Shenandoah National Park, and the Blue No. 37) that identified the relationships temporal and spatial scales. These Ridge Parkway. between the SAA and the Forest Plan provide a comprehensive description The Assessment facilitates an revisions of the National Forests in and evaluation of ecosystem structures, interagency ecological approach to Alabama, Chattahoochee-Oconee processes, functions, and social and management in the Southern National Forests, Cherokee National economic conditions that are critical to Appalachian area by collecting and Forest, and the Sumter National Forest. understanding the present conditions analyzing broad-scale biological, A February 24, 1995 Notice in the and projecting future trends. From this physical, social and economic data to Federal Register (Vol. 60, No. 37) information, decisions can be made to facilitate better, more ecologically based identified; (1) that the National Forests establish ‘‘desired future conditions’’, forest level resource analysis and in Alabama, Chattahoochee-Oconee set goals and objectives, make resource management decisions. The Assessment National Forests, Cherokee National allocations, establish standards and was organized around four ‘‘themes’’— Forest, and the Sumter National Forest guidelines, determine monitoring (1) Terrestrial (including Forest Health, were each preparing an Analysis of the requirements, and establish priorities. and Plant and Animal Resources); (2) Management Situation (AMS), and (2) Following the implementation of those Aquatic Resources; (3) Atmospheric the relationship between the Southern decisions, monitoring and evaluation Resources and (4) Social/Cultural/ Appalachian Assessment and those will determine if changes should be Economic Resources (which includes efforts. Since then, preparation of a made in the implementation, if there is the Human Dimension; Roadless Areas Draft AMSs has included updating a need for new decision, or if there is and Wilderness; Recreation; and Timber resource inventories, defining the a need to re-assess the situation. Supply and Demand). current situation, estimating supply In the Southern Appalachian area, a As the National Forests in the capabilities and resource demands, Southern Appalachian Assessment has Southern Appalachians were evaluating the results of monitoring, been completed. Also completed is the conducting their forest level efforts to determining the ‘‘Need for Change’’ (36 Chattooga Ecosystem Management describe their ‘‘Analysis of the CFR 219.12(e)(5)), review of previous Demonstration Project (Chattooga Management Situation’’ (AMS), they public comments, and public meetings Project) which was an effort to were also providing information for the or other outreach. These Draft AMSs are Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40185 now available for public review. and resources to various uses or publication of this NOI. The public Together with the results of the SAA, conditions by establishing management comments received during this they are the present basis of the issues/ areas and management prescriptions for comment period will be used to further Forest Plan decisions that will be the land and resources within the plan refine the preliminary issues that should examined during the plan revision area. The second stage is approval of be addressed, the forest plan decisions process. Additional topics will be project decisions. that need to be analyzed (the ‘‘proposed developed as needed to respond to Forest plans do not compel the agency actions’’/‘‘need for change’’), and to public comments received on this to undertake any site-specific projects; help define the range of alternatives that Notice of Intent during the 120-day rather, they establish overall goals and will be developed. public comment period. objectives (or desired resource For more information on how the In the past, a ‘‘Notice of Intent to conditions) that the individual National public can become involved during the Prepare an Environmental Impact Forest will strive to meet. Forest plans Scoping period, see Section 6 of this Statement’’ was issued prior to the also establish limitations on what NOI. development of the AMS. However, for actions may be authorized, and what these Forest Plan revisions, an effort conditions must be met, during project B. Purpose and Need for Action was made to first define the current decision-making. This Notice applies to each of the 5 situation and estimate an ‘‘initial need The primary decisions made in a Forest Plans. The need to revise these for change’’ in a Draft AMS prior to forest plan include: plans is driven by the changing issuing a Notice of Intent to Prepare an (1) Establishment of the forest-wide conditions identified in the SAA and in Environmental Impact Statement. We multiple-use goals and objectives (36 individual Forest assessments as well as hope this will lead to improved CFR 219.11(b)). the changing public values associated ‘‘scoping’’, which will help the public (2) Establishment of forest-wide with these National Forests. These provide more concise and specific management requirements (36 CFR conditions and values make it comments. This should make it possible 219.13 to 219.27). appropriate that all of these Southern to develop more responsive alternatives (3) Establishment of multiple-use Appalachian Forest Plan Revisions be to be analyzed in the Environmental prescriptions and associated standards done simultaneously. Impact Statements accompanying the and guidelines for each management The purpose for revision rests in the individual Revised Forest Plans. area (36 CFR 219.11(c)). requirements of the National Forest (4) Determination of land that is 4. Status of the Jefferson, George System Land and Resource Management suitable for the production of timber (16 Washington, and Nantahala-Pisgah Planning required by the National U.S.C. 1604(k) and 36 CFR 219.14). National Forests Forest Management Act and its (5) Establishment of allowable sale implementing regulations contained in The Jefferson National Forest quantity for timber within a time frame Chapter 36 of the Code of Federal previously issued a Notice of Intent to specified in the plan (36 CFR 219.16). Regulations, section 219. According to Prepare an Environmental Impact (6) Establishment of monitoring and 36 CFR 219.10(g), forest plans are Statement for its Revised LRMP on June evaluation requirements (36 CFR ordinarily revised on a 10–15 year cycle. 28, 1993. This NOI revises that earlier 219.11(d)). These five forests are all completing notice, and provides notification that (7) Recommendation of roadless areas these cycles. the planning process on the Jefferson as potential wilderness areas (36 CFR National Forest will now coincide with 219.17). C. Preliminary Issues the planning process and timelines for (8) Where applicable, designate those 1. Introduction the other National Forests in the lands administratively available for oil Southern Appalachians. and gas leasing; and when appropriate, Early in the process there are several Although the George Washington authorize the Bureau of Land sources of what are called ‘‘preliminary National Forest and the Nantahala- Management to offer specific lands for issues’’. These are issues stated so that Pisgah National Forests were part of the leasing. (36 CFR 228.102 (d) and (e)) the public, when learning about the Southern Appalachian Assessment, they The authorization of site-specific environmental analysis, can focus their are not beginning plan revisions at this activities within a plan area occurs needs and preferences on the forest plan time. The George Washington National through project decision-making, the decisions. One source of information Forest completed its Final Revised second stage of forest planning. Project leading to issue development has been Forest Plan on January 21, 1993, and the decision-making must comply with the Southern Appalachian Assessment. Nantahala-Pasgah National Forests NEPA procedures and must include a The Assessment has produced some completed a significant amendment, determination that the project is findings and preliminary issues of broad Amendment 5 to their Land and consistent with the forest plan. public interest which have implications Resource Management Plan on March that must be considered. This 6. The Role of Scoping in Revising the 18, 1994. However, as information from consideration may involve one or more Southern Appalachian Land and the Southern Appalachian Assessment or all Forests, depending on the issue. Resource Management Plans and the other National Forest planning In addition, the Forests, working with process are being analyzed, a need to This NOI includes a description of the their publics, have identified change these plans may be identified to preliminary Issues and ‘‘Proposed preliminary issues specific to their ensure consistency between the Actions’’ for the five National Forests in Forest. the Southern Appalachians that are National Forests in the Southern 2. Findings of the Southern revising their LRMPs. The ‘‘Proposed Appalachians. Appalachian Assessment Actions’’ are actions within one or more 5. The Role of Forest Plans of the plan decisions identified in the The Southern Appalachian National Forest System resource purpose and need. Assessment (SAA) provides key allocation and management decisions Scoping to receive public comments information concerning those portions are made in two stages. The first stage on the preliminary issues and proposed of the National Forests that are within is the forest plan, which allocates lands actions will begin following the the SAA area that will be used in plan 40186 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices revisions. The SAA teams compiled next 30 years in the Tennessee River the use of prescribed fire for numerous existing region-wide information on basin. purposes. resource status and trends, conditions, Preliminary issues or management Preliminary issue or management and impacts of various land opportunities: opportunity: management activities and resource —Protection for these aquatic species uses that apply to portions of each of the and maintenance of the water quality —Adverse effects of air pollution on five forests that are revising Forest supporting them. visibility, nitrogen oxide emissions, Plans. Several preliminary issues are —Management for trout in suitable and acid deposition. listed that are associated with the habitat areas. —Management’s increasing use of findings of the Assessment. The prescribed fire and particulate matter Human Induced Impacts on Aquatic findings include: in the atmosphere. Resources Aquatic Resources Although human activities that impair Social, Cultural, and Economics Water Quality and Quantity aquatic habitat have decreased, Effects on Local Communities population growth and concomitant The Southern Appalachian ecosystem land development have the potential to The combined natural resource sector is widely recognized as one of the most increase pressure on aquatic resources. (wood-products manufacturing, forestry, diverse in the temperate region. The More than 80 percent of the river miles mining, and tourism) provides nearly 10 headwaters of nine major rivers lie in most watersheds representing 75 percent of SAA area employment, 7 within the boundaries of the Southern percent of the river miles in the SAA percent of wages, and 12 percent of the Appalachians, making it a source of area are rated as fully supporting their industry output. The number of drinking water for much of the uses (fully supporting is a measure employees (including seasonal or part- Southeast. In addition, as a general which states that 90 percent of the time time) associated with tourism has finding, there has been a reduction in the stream meets water quality criteria). doubled between 1977 and 1991. water use in the Southern Appalachian Aquatic Resources within the SAA are Over 30,000 jobs are directly related area. affected by acid mine waste, National to recreation facilities on Federal land. Preliminary issues or management Pollutant Discharge Elimination System The counties with the greatest number opportunities: (NPDES) facilities, sedimentation (in of these jobs are located near the area’s —Protection, maintenance and certain localized situations), urban and two National Parks and the large improvement of water resources rural development, and industrial concentration of National Forests in within the SAA area in coordination facilities. western North Carolina. Counties with with multiple use management. Preliminary issue or management white-water rivers, such as the —Coordination of water quality (and opportunity: Chattooga, Nantahala, and Ocoee have quantity on some forests) needs with —How the National Forests will manage seen increases in recreation-related adjacent forests, land owners and human induced impacts to the aquatic employment. other agencies with water resources. management responsibilities. Preliminary issue or management —Insuring water quality and quantity Atmospheric Resource opportunity: needs for channel maintenance and —Resource allocation and its effect on Air Pollution biotic resources. local economies, including stabilizing The SAA found that visibility in the and helping the economies and social Stream Condition and Habitat Quality Southern Appalachians has decreased structure of local communities. The SAA aquatics report identified since the 1940’s as haziness has streams, water bodies, and riparian intensified due mainly to sulfates in the Societal Changes in the Southern habitat that were degraded to varied air. Improvements are expected; Appalachian Area extent. however, once the Clean Air Act Changes in the social pattern has Preliminary issue or management Amendments of 1990 are implemented. effects on the management of natural opportunity: It is expected that there will be a 50 resources in the region. Changing —Restoration of degraded streams, percent reduction in SO2 emissions relative values between commodity and habitat and riparian loss. nationwide. Acid deposition is also a non-commodity uses of forest resources problem in the region and headwater Protection of Aquatic Species and Southern Appalachian ecosystems streams are most susceptible to are cited by the SAA. While not Diversity of aquatic species across the acidification (see also, aquatic resource consistent across the Southern Southern Appalachian area is high, with discussion). In addition, nitrogen oxide Appalachian area, the population has a rich fauna of fish, molluscs, crayfish, emissions are expected to increase, increased 27.8 percent in the region and aquatic insects. Approximately 39 contributing to visibility impairment, between 1970 and 1990. For natural percent of the SAA area is in the range acid deposition, and ground level resource management, however, the for wild trout, consisting of 33,088 miles ozone, which can cause growth increase in the area’s population is less of potential wild trout streams. The reduction and physiological stress in significant than the economic three trout species within the SAA area trees. The greatest potential for growth development that accompanied the are vulnerable to stream acidification, loss due to the ozone concentration is in increase and the attitudes and cultural which is increasing, particularly in the the northern and southern ends of the attachment that exists here. northern part of the Assessment area Southern Appalachian area and and higher-elevation streams. The wherever sensitive hardwoods are Preliminary issue or management heritage program files indicate there are located at higher elevations. Particulate opportunity. 190 species that are endangered, matter in the air is a concern, while —The mix of natural resource goods and threatened, or of special concern within apparently not one that is increasing services from National Forest System the SAA area. Mussel populations may currently, especially while land lands that is sensitive to evolving experience additional declines over the managers are anticipating accelerating demographics, attitudes, and needs. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40187

Wood products from public lands the effects on Forest Service species and 66 percent of the species The Federal share of timberland in management. with viability concern (globally ranked individual counties ranges up to 69 —Access to public lands. G1, G2, G3) in the Southern Appalachians. Examples of these rare percent. The decisions made by Federal Roadless and Wilderness agencies, therefore, can strongly communities are high elevation grassy A total of 752,654 acres of inventoried and heath balds, mountain longleaf pine influence local timber production and roadless areas were identified in the the economy in certain parts of the woodlands, granitic domes, high SAA National Forests ranging in size elevation rocky summits, and sphagnum region. from 2,035 acres to 27,293 acres and The National Forests hold a large and shrub bogs. representing 61 percent of all roadless Preliminary issue or management share of high-grade oak sawtimber. areas within the SAA area. opportunity: Since this is the kind of timber that is Preliminary issue or management in shortest supply and greatest demand, —Management of rare communities. opportunity: National Forest timber sales can affect Federally Listed Threatened and —Management of these and other areas the markets for high-quality oak. The Endangered (T&E) and Viability to meet wilderness, recreational, and terrain in National Forests is more Concern Species other resource demands. rugged and there are fewer roads, The Assessment looks at 51 Federally making the timber on these lands more Terrestrial—Plant and Animal listed T&E species (11 habitat expensive to harvest. Resources associations) and the needs of 366 Preliminary issue or management viability concern species (17 habitat opportunity: Current conditions and trends of forest landscapes associations). While not all of these —The role of the National Forests in species and habitats occur on National supplying forest products, and the The Southern Appalachian Forest system lands, the importance of association of these products to Assessment described current this listing lies in the fact that the Forest specific Desired Future Conditions on conditions and trends of forested Service manages habitat that is often key individual Forests. landscapes. These were applied to 9 to preservation and recovery of many forest classes and 4 successional classes. Recreation settings and use species. The Assessment found that currently Preliminary issue or management Only around 8 percent of the National Forests contain 17 percent of opportunity: Southern Appalachians, including the the region’s forests, 7 percent of the —Recovery and management of Great Smokey Mountain National Park, early successional habitats and 42 Federally listed T&E species and can be classified as having ‘‘remote’’ percent of the late successional habitats. Forest Service sensitive species. recreation settings. About two-thirds of Currently around 3 percent of these settings are on public lands. About National Forest system land is in early Game Species 18 percent of the Southern successional habitat. This is 4 percent The SAA provided population trends, Appalachians are highly developed below mid 1970s National Forest levels. current status, and some future forecasts settings with 2 percent in urban, 4 There were 10 species associates for 10 major game species. percent in suburban, and 12 percent in identified for this habitat. Forty-five Preliminary issue or management transition of emerging development percent of the National Forest System opportunity: settings. About 45 prevent of the area is lands in the SAA area are in late —The role of the National Forests in rural, and about 24 percent is natural- successional habitat. This represents an sustaining habitats to support the appearing forests. increase of 34 percent since 1970. major game species identified in the Congestion in recreation use tends to Preliminary issue or management SAA for public hunting and viewing. occur on the shores of lakes and opportunity: streams, because the settings are in high —Desired future conditions for the mix Black Bear Habitat demand. Due to limited sources of of these habitat conditions must be The SAA determined that National supply, settings and facilities for determined, as well as the larger Forests contain around 4 million acres mountain biking, horseback riding, off- landscape conditions (forested as of potentially suitable black bear highway vehicle driving, and white- opposed to agriculture). habitat, of which about 77 percent has water rafting often are congested. relatively low road density (less than 1.6 Old Growth forests A high proportion of recreation use on miles of road length per square mile) Federally owned land occurs at the Around 1.1 million acres of possible and 51 percent has less than 0.8 miles outer edges of the Appalachian chain. old-growth forest were identified in an per square mile. Habitat parameters As population centers grow, use initial inventory of SAA National include open road density, early patterns will creep toward the center of Forests. Patches identified vary from 1 successional habitats, late successional the mountain ranges. acre to 13,000 acres in size and across habitats capable of producing denning Wilderness and roadless areas a full range of vegetative communities. sites, and oak mast. Black bear have account for 4 percent of all land in the Preliminary issue or management experienced a moderate range Southern Appalachians. As population opportunity: expansion in some parts of the Southern increases and urban areas expand, there —Management of these areas, as well as Appalachians over the last 25 years. is concern that the wilderness resource other types of areas, and their spacial Preliminary issue or management will be affected by overuse. allocation to meet the biological, opportunity: Preliminary issues or management social, and cultural objectives —The Desired Future Condition of black opportunities: associated with this condition. bear habitat in the Southern —The mix of recreation settings on Appalachian National Forests. National Forest system lands and the Rare Communities management of each. The Assessment found that 31 rare Area-Sensitive Forest Bird Habitats —Increasing urbanization of lands communities are key to the conservation A total of 15.8 million acres of mid- adjacent to the National Forests and of 65 percent of the Federally listed T&E to late-successional deciduous forest 40188 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices habitat is contained in the SAA area. exotic pests, and how current and past Chattahoochee-Oconee National Forests Approximately 66 percent of these acres management affecting the health and Timber management are suitable forest interior habitat. integrity of forest vegetation in the Road access management and resource Around 8.2 million acres are in forest Southern Appalachians. protection tracts greater than 5,000 acres in size. The SAA predicts that the European Trails These larger tracts have the potential to gypsy moth will spread as far south as Water quality and increasing forest use support all 16 area sensitive landbirds northern Georgia by the year 2020. Biological diversity and timber (primarily neotropical migrants). Habitat Other identified threats to forest harvesting fragmentation and edge effect were ecosystem health include dogwood Biological diversity, visual quality and considered. It is estimated that National anthracnose, butternut canker, beech hardwood harvesting Forests are currently providing 39 bark disease, southern pine beetle, and Pesticide use and biological and social percent of the acreage in these large asiatic gypsy moth. effects forest tracts in the SAA area. Taking Preliminary issue or management Balance between rural and urban public into account the conditions of the larger opportunity: demands landscape, the SAA estimated that —The role of fire in sustaining forest Cherokee National Forest around 90 percent of the habitat on ecosystems. National Forest system land is forest —Management of identified threats to Public road planning, development and interior. forest health. management Preliminary issue or management Timber resource management opportunity: 3. Preliminary Issues That May Be Outdoor recreation settings —Management of area-sensitive forest Common to the Five Forests Trail network management bird habitats. Preliminary issues from the SAA and Forest uses and water quality Forests have been identified that apply Management for biological diversity High Elevation Forest Habitats to one or more or all of the National Forest health and ecosystems and About 32 percent of the high elevation Forests in this Notice. Some of these timber harvesting montane spruce-fir/northern hardwood include aquatic resources, forest health, Management and scenic attractiveness— habitats in the Southern Appalachian inventoried roadless areas, scenery landscape patterns area are found on National Forest management, T&E and Sensitive Mix of management intensities across system land and 23 plant and animal species, terrestrial resources, and wood the landscape species are included in this habitat products. Public response to scoping Jefferson National Forest association. The Southern Appalachian will be used to develop the actual issues National Forests are facing possible and the forest or forests to which they Biological Diversity declines, caused by balsam woolly apply. Old growth adelgid and air pollution, in this rare Habitat fragmentation high elevation forest community. 4. Preliminary Issues on Individual Riparian areas/Aquatic ecosystems Preliminary issue or management National Forests Air quality opportunity: The Southern Appalachian area Special interest Areas Proposed, endangered, threatened, —Possible declines in high elevation National Forests have also developed and sensitive species forest habitats due to balsam wooly some preliminary issues locally. Since Wildlife and fish management adelgid. each National Forest must develop its own issues, the following lists will Tree health Wilderness and rivers Riparian Habitat appear in somewhat different formats. Wilderness The SAA looked at seeps, springs, and The forests will further refine these, Wild and Scenic Rivers streamside areas. A total 1.5 million incorporate the findings of the SAA and Mount Rogers National Recreation Area finally, determine the significant issues acres of these types are in forested Recreation opportunities cover. Of this, the SAA estimated that to carry forward into the NEPA analysis. Recreation opportunities National Forests contain around 219,000 The following issues are identified by Management practices acres of forested riparian habitat. The topics and more specific information is Timber management future quality of these habitats is available at the individual Forest by Fire management uncertain and may decline due to contacting the planners listed at the Grazing threats from hemlock wooly adelgid, an beginning of this Notice. Timber production exotic insect. National Forests in Alabama Transportation system Preliminary issue or management Access opportunity: Trails and associated facilities and their Off-highway vehicles —The Desired Future Conditions for management Minerals, oil and gas both terrestrial and aquatic riparian Wilderness area management Oil and gas habitats, including the specific Special area designations Minerals management of threats to these Forest cover types, old growth and Special Uses habitats from hemlock wooly adelgid. rotations Social and economic concerns Management tools to use in achieving Below cost timber sales Forest Vegetation Health desired future conditions Subsurface property rights The SAA addresses changes in forest Mix of goods and services from the Local community economies vegetation or soil productivity in Forest response to human-caused disturbances Longleaf restoration for RCW recovery Sumter National Forest or natural processes, potential effects of Habitat types Biodiversity presence and absence of fire, how the Fire management Variety of communities health of the forest ecosystem is being Road density Old growth affected by air pollution and native and Land acquisition and exchange Proposed threatened, endangered, and Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40189

sensitive species —Determine suitability of lands for —Provide guidance for increased Rare and underrepresented plan resource management; interpretative services and maps for communities —Determine timber allowable sale wilderness areas and trails; and Riparian areas quantity (i.e., Timber ASQ); —Provide management direction for Landscape patterns —Analyze and recommend rivers and regeneration and conversion to Role of fires in forest ecosystems streams for eligibility and/or address changing conditions/ Mineral development suitability for inclusion in the emphases. Protection of water and other resource National Wild and Scenic Rivers —Establish management guidelines for values System; the fisheries program to consider Recreation —Replace the current Visual where and when to install habitat Mix and emphasis of opportunities Management System with the new structures and to fertilize lakes. Chattooga Wild and Scenic River Scenery Management System and —Establish guidelines for addressing values Timber Management establish new visual objectives; noxious weeds and exotic species, Lands available for timber —Adjust the plan monitoring and especially where they impact management and evaluation requirements to address sensitive species or rare communities. Desired timber products the elements of the revised plans; —Determine if grazing should be —Identify any needed new special or continued on the Conecuh National D. Proposed Actions unique areas; Forest, and if it should be woods Each National Forest did an initial —Address management needs for all grazing or pasture grazing. analysis of its management situation forms of forest access; and Chattahoochee-Oconee National Forests focusing on changes that have taken —Address the question of oil and gas place during the current ten-year leasing on the National Forest system —Establish Forest Plan goals and planning period. During the past decade lands. objectives, and management direction Forest Plan Amendments, annual for special forest products (medicinal 2. Proposed Actions That are Unique to herbs, craft material, etc.); monitoring, five year reviews of the Individual Forests implementing Forest Plans, and working —Incorporate management with the public have provided the In addition to those items listed in A., requirements of the Regional Forests with valuable information about above, there are a number of other Forester’s June 1995, decision and the changes that are needed in existing proposed actions that the individual U.S. Fish and Wildlife Service Forest Plans. This initiates the forests have developed. The following Recovery Plan (when completed) for determination of the need to establish or lists are not complete; however, at this the red cockaded woodpecker which change management direction as point they contain many of the more apply to the Oconee National Forest. required under the NFMA regulations at specific actions that the forests have —General forest lands need different 36 CFR 219.12.(e)(5). From this determined to be important and that management emphasis across the information each Forest compiled a should be incorporated in the respective forests. Currently, the general forest preliminary list of subject areas, or plan revisions. Additional actions will area (MA–16) has the same goals and revision items, which will be used to be added and some may be deleted as objectives for all lands. This could be guide their plan revision. The proposed a result of scoping. true for other MA’s as well. —Clarify the use of timber harvesting to action is to develop or revalidate goals, National Forests in Alabama objectives, standards and guidelines, meet Forest Plan goals and objectives. and prescriptions. —Identify, maintain and/or restore the The revised Forest Plan should LLP/wiregrass community on the incorporate standards and guidelines 1. Proposals that are Common to all Conecuh National Forest where it is to assist the Districts in determining Five Forests appropriate to do so; those conditions and situations that When revising a forest plan, roadless —Address the 3–5 year burning rotation would enable a sale to be classified as areas of public lands within and on the sandy soil types found forest stewardship (timber purposes, adjacent to the forest shall be evaluated primarily on the Tuskegee and personal use, wildlife habitat, etc.) and considered for recommendation for Conecuh Districts and conflicts with —Add timber quality as a objective of wilderness areas 36 CFR 219.17(a). At ecosystem relationships; timber management. least every 10 years each forest must —Incorporate into the Forest Plan, —Adjust acres on which planned timber review the designation of lands not recovery plans for 9 T&E species; harvesting could occur due to suited for timber production (36 CFR —Incorporate conservation agreements reductions for resource protection 219.14(d). For these forests, the ten-year for sensitive species—as needed; such as: riparian areas, cultural review is being done in this revision —Incorporate the new RCW EIS into resources, Proposed, Endangered, and process so all alternatives will evaluate plan revision; Sensitive Species (PETS), and any existing suitability designations in light —Examine land ownership adjustment other factors which would effectively of current conditions. The following list needs across the Forest; reduce the suitable land base. includes additional items that are —Incorporate new management —Establish standards, guidelines, and shared by all of the five National Forests direction for over-used areas, monitoring requirements for single- listed in this Notice. especially wilderness areas and trails, tree selection. —Establish desired future condition(s), and encourage use of alternate —Update direction for timber harvest in goals, and objectives for resource trailheads and areas associated with riparian areas. management. the Sipsey Wilderness; —Establish recreational carrying —Establish, where appropriate, —Upgrade existing developed capacities. consistent management direction recreation sites to meet current —Establish management direction for across adjacent National Forest standards, and provide greater the Chattahoochee National Forest to boundaries. accessibility for people with restore appropriate streams to native —Establish new management areas; disabilities; brook trout. 40190 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

—Establish management direction for National Forests in North Carolina to members of the public feel free to share rare communities identified in the establish goals, objectives, and information with the Forest Service and Southern Appalachian Assessment. desired future conditions for the its employees on a regular basis. All —Establish coordinated desired future Chattooga River Watershed. parts of this process will be structured conditions, goals, objectives and —Link land ownership adjustment to maintain this openess. direction for the Chattooga River priorities with desired future The Forest Service is seeking Watershed between the Sumter, the condition, goals, and objective information, comments, and assistance Chattahoochee-Oconee, and National establishment. from Federal, State, and local agencies, Forests in North Carolina. —Establish, where appropriate, and other individuals or organizations —Revise other management direction to consistent management direction who may be interested in or affected by incorporate new information about: across adjacent National Forest the proposed action. This input will be range management; transportation boundaries. utilized in the preparation of the draft systems; development of monitoring —Consider insect and disease in environmental impact statements. The and recovery plans for PETS; redesign development and evaluation of range of alternatives to be considered in shade protection guidelines for alternatives and effects. the EIS will be based on the aquatic habitat needs and establish —Consider historical Forest budget identification of significant public direction for woody debris and trends in alternative analysis. issues, management concerns, resource aquatic habitat management; review —Incorporate carrying capacity management opportunities, and plan and update air quality direction to (biological, physical, and social) of decisions specific to each of the clarify needs for Wilderness, non- the Chattooga River in establishment National Forests. Public participation Wilderness, problem areas, and of desired future condition, goals, and will be solicited by notifying in person relationship to State permitting objectives for the Wild and Scenic and/or by mail, known interested and process. River. affected publics. News releases will be Cherokee National Forest —Consider ecological classification in used to give the public general notice, developing management areas and and public scoping meetings will be —Identify special or unique areas, and desired future conditions. conducted on each National Forest. establish goals for management of —Develop desired future conditions Public participation will be sought such areas; that integrate coordinated resource —Establish guidelines for production of throughout the plan revision process goals and objectives that will facilitate and will be especially important at special forest products, and minerals. the development of multiple-use —Establish, where appropriate, several points along the way. The first projects. opportunity to comment will be during consistent management direction —Revise the monitoring and evaluation across adjacent National Forest the scoping process (40 CFR 1501.7). direction to include effectiveness Scoping includes: (1) Identifying boundaries. monitoring for Forest Plan goals, —Revise guidelines that respond to additional potential issues (other than objectives, and desired future threats from pests and noxious those previously described), (2) from conditions. these, identifying significant issues or species. —Develop two separate indicator lists —Clarify the use of timber harvesting those which have been covered by prior (mountains and piedmont) to and other planned human-caused environmental review, (4) exploring incorporate new PETS species that are disturbances to meet Forest Plan goals additional alternatives, and (5) readily monitored, forest interior and objectives. identifying potential environmental species, area-sensitive species, and effects of the proposed action and Jefferson National Forest species that may indicate effects at a alternatives (i.e., direct, indirect, and —Develop goals, objectives, standards landscape scale. cumulative effects). and guidelines for salvage of dead and E. Preliminary Alternatives As part of the first step in scoping, a dying timber where deemed series of public opportunities are appropriate. Determine and clearly The actual alternatives presented in scheduled to explain the public role in describe priorities for salvage; each forest’s draft EIS will portray a full the planning process and provide an —Consider the effects of long-term fire range of responses to issues which are opportunity for public input. Formats, suppression on ecosystems and the significant on the individual Forest. The times and places will vary. These are role of prescribed fire as a five separate draft EIS’s will examine determined by the individual forest to management tool; the effects of implementing strategies to meet the needs of their publics. For —Address the use and effects of achieve different desired future more specific information on times and livestock grazing to achieve multiple- conditions for each forest and will locations, please contact the Forests. use goals and objectives; develop possible management objectives These meetings will occur as follows: —Add direction to provide for new and opportunities that would move the Federal regulations and the 1987 forests toward desired conditions. A National Forest in Alabama Onshore Oil and Gas Leasing Reform preferred alternative will be identified Proposed Locations and Dates: Act; in each draft EIS. Double Springs, Alabama; August 6, —Consider subsurface ownership when The range of alternatives presented in 1996 evaluating land allocations; and each DEIS will include one that Brent, Alabama; August 8, 1996 —Provide minimum management continues current management direction Heflin, Alabama; August 13, 1996 requirements and direction for special and others will also be provided to Talladega, Alabama; August 14, 1996 uses (e.g., linear rights-of-way, address the range of issues developed in Andalusia, Alabama; August 20, 1996 military exercises, electronic sites and the scoping process. Tuskegee, Alabama; August 22, 1996 commercial services.) F. Involving the Public Chattahoochee-Oconee National Forests Sumter National Forest The objective in this process for Proposed Locations and Dates: —Coordinate with the Chattahoochee- public involvement is to create an Madison, Georgia; September 5, 1996 Oconee National Forest and the atmosphere of openess where all Gainesville, Georgia; September 7, Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40191

1996 important that those interested in this designations of Kankakee Grain Dalton, Georgia; September 10, 1996 proposed action participate by the close Inspection, Inc. (Kankakee), the of the 3 month comment period so that California Department of Food and Cherokee National Forest substantive comments and objections Agriculture (California) and the Proposed Locations and Dates: are made available to the Forest Service Washington Department of Agriculture Elizabethton, Tennessee; October 7, at a time when it can meaningfully (Washington) will end January 31, 1997, 1996 consider them and respond to them in according to the Act, and GIPSA is Greeneville, Tennessee; October 8, each FEIS. asking persons interested in providing 1996 To assist the Forest Service in official services in the Kankakee, Alcoa, Tennessee; October 10, 1996 identifying and considering issues and California, and Washington areas to Tellico Plains; October 15, 1996 concerns on the proposed actions, submit an application for designation. Ducktown, Tennessee; October 16, comments on each DEIS should be as DATES: Applications must be 1996 specific as possible. It is also helpful if postmarked or sent by telecopier (FAX) Cleveland, Tennessee; October 17, comments refer to specific pages or on or before September 2, 1996. 1996 chapters of the draft statement. ADDRESSES: Applications must be Nashville, Tennessee; October 21, Comments may also address the submitted to USDA, GIPSA, FGIS, Janet 1996 adequacy of the DEIS or the merits of M. Hart, Chief, Review Branch, the alternatives formulated and Jefferson National Forest Compliance Division, STOP 3604, 1400 discussed in the statements. Reviewers Independence Avenue, S.W., Proposed Location and Date: may wish to refer to the Council on Washington, DC 20250–3604. Mt. Rogers NRA, Jefferson National Environmental Quality Regulations for Telecopier (FAX) users may send Forest, Virginia; August 17, 1996 implementing the procedural provisions applications to the automatic telecopier of the National Environmental Policy Sumter National Forest machine at 202–690–2755, attention: Act at 40 CFR 1503.3 in addressing Proposed Locations and Dates: Janet M. Hart. If an application is these points. Columbia, South Carolina; August 22, After the comment periods end on submitted by telecopier, GIPSA reserves 1996 each DEIS, the comments will be the right to request an original Edgefield, South Carolina; August 26, analyzed, considered, and responded to application. All applications will be 1996 by the Forest Service in preparing each made available for public inspection at Newberry, South Carolina; September FEIS. The FEISs are scheduled to be this address located at 1400 10, 1996 completed in December, 1998. The Independence Avenue, S.W., during Walhalla, South Carolina; September responsible official will consider the regular business hours. 21, 1996 comments, responses, environmental FOR FURTHER INFORMATION CONTACT: G. Release and Review of the EISs consequences discussed in each FEIS, Janet M. Hart, telephone 202–720–8525. and applicable laws, regulations, and Each Draft Environmental Impact SUPPLEMENTARY INFORMATION: This Statement (DEIS) is expected to be filed policies in making a decision regarding action has been reviewed and with the Environmental Protection these revisions. The responsible official determined not to be a rule or regulation Agency (EPA) and to be available for will document the decision and reasons as defined in Executive Order 12866 public comment by January, 1998. At for the decision in a Record of Decision and Departmental Regulation 1512–1; that time, the EPA will publish a notice for each Forest Plan. Each decision will therefore, the Executive Order and of availability of each DEIS (one for each be subject to appeal in accordance with Departmental Regulation do not apply Forest’s DEIS) in the Federal Register. 36 CFR 217. to this action. The responsible official for each of the The comment period on each DEIS will Section 7(f)(1) of the Act authorizes Forest Plans is the Regional Forester, be 3 months from the date the EPA GIPSA’s Administrator to designate a Southern Region, 1720 Peachtree Road, publishes the notice of availability in qualified applicant to provide official NW., Atlanta, Georgia 30367. the Federal Register. services in a specified area after The Forest Service believes, at this Dated: July 25, 1996. determining that the applicant is better early stage, it is important to give Gloria Manning, able than any other applicant to provide reviewers notice of several court rulings Deputy Regional Forester, NRT. such official services. GIPSA related to public participation in the [FR Doc. 96–19429 Filed 7–31–96; 8:45 am] designated: Kankakee main office environmental review process. First, BILLING CODE 3410±11±M located in Bourbonnais, Illinois; reviewers of the DEIS must structure California main office located in their participation in the environmental Sacramento, California; and review of the proposal so that it is Grain Inspection, Packers and Washington, main office located in meaningful and alerts an agency to the Stockyards Administration Olympia, Washington, under the Act on reviewer’s position and contentions. February 1, 1994. Vermont Yankee Nuclear Power Corp. v. Opportunity for Designation in the Section 7(g)(1) of the Act provides NRDC. 435 U.S. 519, 553 (1978). Also, Kankakee (IL) Area and the States of that designations of official agencies environmental objections that could be California and Washington shall end not later than triennially and raised at the DEIS stage but that are not AGENCY: Grain Inspection, Packers and may be renewed according to the raised until after completion of the Final Stockyards Administration (GIPSA). criteria and procedures prescribed in Environmental Impact Statement (FEIS) ACTION: Notice. Section 7(f) of the Act. The designations may be waived or dismissed by the of Kankakee, California, and courts. City of Angoon v. Hodel, 803 SUMMARY: The United States Grain Washington end on January 31, 1997. F.2d 1016, 1022 (9th Cir. 1986) and Standards Act, as amended (Act), Pursuant to Section 7(f)(2) of the Wisconsin Heritages, Inc. v. Harris, 490 provides that official agency USGSA, the following geographic area, F.Supp.1334, 1338 (E.D.Wis.1980). designations will end not later than in the State of Illinois, is assigned to Because of these court rulings, it is very triennially and may be renewed. The Kankakee: 40192 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Bounded on the North by the northern beginning February 1, 1997, and ending Montana are able to provide official Bureau County line; the northern January 31, 2000. Persons wishing to services in the geographic areas for LaSalle and Grundy County lines; the apply for designation should contact the which they applied. Effective September northern Will County line east-southeast Compliance Division at the address 1, 1996, and ending August 31, 1999, to Interstate 57; listed above for forms and information. Central Iowa and Montana are Bounded on the East by Interstate 57 Applications and other available designated to provide official services in south to U.S. Route 52; U.S. Route 52 information will be considered in the geographic areas specified in the south to the Kankakee County line; determining which applicant will be March 1, 1996, Federal Register. Bounded on the South by the designated. Interested persons may obtain official southern Kankakee and Grundy County Authority: Pub. L. 94–582, 90 Stat. 2867, services by contacting Central Iowa at lines; the southern LaSalle County line as amended (7 U.S.C. 71 et seq.). 515–266–1101 and Montana 406–452– west to State Route 17; State Route 17 9561. west to U.S. Route 51; U.S. Route 51 Dated: July 24, 1996. Neil E. Porter, Authority: Pub. L. 94–582, 90 Stat. 2867, north to State Route 18; State Route 18 as amended (7 U.S.C. 71 et seq.). west to State Route 26; State Route 26 Director, Compliance Division. Dated: July 24, 1996. south to State Route 116; State Route [FR Doc. 96–19385 Filed 7–31–96; 8:45 am] Neil E. Porter, 116 south to Interstate 74; Interstate 74 BILLING CODE 3410±EN±F west to the western Peoria County line; Director, Compliance Division. and [FR Doc. 96–19379 Filed 7–31–96; 8:45 am] Bounded on the West by the western Designation for the Central Iowa (IA) BILLING CODE 3410±EN±F Peoria and Stark County lines; the and Montana Areas northern Stark County line east to State AGENCY: Grain Inspection, Packers and Opportunity to Comment on the Route 88; State Route 88 north to the Stockyards Administration (GIPSA). Bureau County line. Applicants for the Missouri Area ACTION: Notice. Pursuant to Section 7(f)(2) of the AGENCY: Grain Inspection, Packers and USGSA, the following geographic area, SUMMARY: GIPSA announces the Stockyards Administration (GIPSA). the entire State of California, is assigned designation of Central Iowa Grain ACTION: Notice. to California, except those export port Inspection Service, Inc. (Central Iowa), locations within the State which are and the Montana Department of SUMMARY: GIPSA request comments on serviced by GIPSA, and except the Agriculture (Montana) to provide the applicants for designation to provide geographic area assigned to the Los official services under the United States official services in the geographic area Angeles Grain Inspection Service, Inc., Grain Standards Act, as amended (Act). currently assigned to the Missouri which is as follows: EFFECTIVE DATES: September 1, 1996. Department of Agriculture. Bounded on the North by the Angeles ADDRESSES: DATES: Comments must be postmarked, National Forest southern boundary from USDA, GIPSA, FGIS, Janet M. Hart, Chief, Review Branch, or sent by telecopier (FAX) or electronic State Route 2 east; the San Bernadino mail by September 2, 1996. National Forest southern boundary east Compliance Division, STOP 3604, 1400 Independence Ave. S.W., Washington, ADDRESSES: Comments must be to State Route 79; submitted in writing to USDA, GIPSA, Bounded on the East by State Route DC 20250–3604. FGIS, Janet M. Hart, Chief, Review 79 south to State Route 74; FOR FURTHER INFORMATION CONTACT: Bounded on the South by State Route Janet M. Hart, telephone 202–720–8525. Branch, Compliance Division, STOP 74 west-southwest to Interstate 5; SUPPLEMENTARY INFORMATION: This 3604, 1400 Independence Ave. S.W., Interstate 5 northwest to Interstate 405; action has been reviewed and Washington, DC 20250–3604. Interstate 405 northwest to State Route determined not to be a rule or regulation Telecopier (FAX) users may send 55; State Route 55 northeast to Interstate as defined in Executive Order 12866 comments to the automatic telecopier 5; Interstate 5 northwest to State Route and Departmental Regulation 1512–1; machine at 202–690–2755, attention: 91; State Route 91 west to State Route therefore, the Executive Order and Janet M. Hart. All comments received 11; and Departmental Regulation do not apply will be made available for public Bounded on the West by State Route to this action. inspection at the above address located 11 north to U.S. Route 66; U.S. Route 66 In the March 1, 1996, Federal Register at 1400 Independence Avenue, S.W., west to Interstate 210; Interstate 210 (61 FR 8025), GIPSA asked persons during regular business hours. northwest to State Route 2; State Route interested in providing official services FOR FURTHER INFORMATION CONTACT: 2 north to the Angeles National Forest in the geographic areas assigned to Janet M. Hart, telephone 202–720–8525. boundary. Central Iowa and Montana to submit an SUPPLEMENTARY INFORMATION: This Pursuant to Section 7(f)(2) of the application for designation. action has been reviewed and USGSA, the following geographic area, Applications were due by March 30, determined not to be a rule or regulation the entire State of Washington, except 1996. Central Iowa and Montana, the as defined in Executive Order 12866 those export port locations within the only applicants, each applied for and Departmental Regulation 1512–1; State, is assigned to Washington. designation to provide official therefore, the Executive Order and Interested persons, including inspection services in the entire areas Departmental Regulation do not apply Kankakee, California, and Washington, currently assigned to them. to this action. are hereby given the opportunity to Since Central Iowa and Montana were In the May 30, 1996, Federal Register apply for designation to provide official the only applicants, GIPSA did not ask (61 FR 27045), GIPSA asked persons services in the geographic areas for comments on the applicants. interested in providing official services specified above under the provisions of GIPSA evaluated all available in the geographic area assigned to Section 7(f) of the Act and section information regarding the designation Missouri to submit an application for 800.196(d) of the regulations issued criteria in Section 7(f)(l)(A) of the Act; designation. There were two applicants: thereunder. Designation in the specified and according to Section 7(f)(l)(B), Missouri applied for designation to geographic areas is for the period determined that Central Iowa and provide official inspection services in Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40193 the State of Missouri and Grain Belt A general discussion of the Bering Sea Dated: July 29, 1996. Inspection Service (Grain Belt), an and its research needs will follow. Stephanie Y. Moore, organization to be formed by Larry and On the afternoon of the 21st the Acting Solicitor. Peggy Aschermann that plans to Commission will visit National Park [FR Doc. 96–19595 Filed 7–31–96; 8:45 am] establish its main office in Jefferson Service activities in the Dutch Harbor BILLING CODE 6335±01±M City, Missouri, applied for designation region. to provide official inspection services in Any person planning to attend this all or any part of the State of Missouri. meeting who requires special DEPARTMENT OF COMMERCE GIPSA is publishing this notice to accessibility features and/or auxiliary provide interested persons the aids, such as sign language interpreters Submission for OMB Review; opportunity to present comments must inform the Commission in advance Comment Request concerning the applicants. Commenters of those needs. are encouraged to submit reasons and DOC has submitted to the Office of CONTACT PERSON FOR MORE INFORMATION: pertinent data for support or objection Management and Budget (OMB) for Dr. Garrett W. Brass, Executive Director, to the designation of these applicants. clearance the following proposal for Arctic Research Commission, 703–525– All comments must be submitted to the collection of information under the 0111 or TDD 703–306–0090. Compliance Division at the above provisions of the Paperwork Reduction address. Comments and other available Garrett W. Brass, Act (44 U.S.C. chapter 35). information will be considered in Executive Director. Agency: Bureau of the Census. Title: Survey of Income and Program making a final decision. GIPSA will [FR Doc. 96–19736 Filed 7–30–96; 2:59 pm] Participation—1966 Panel Wave 3. publish notice of the final decision in BILLING CODE 7555±01±M Form Number(s): Automated the Federal Register, and GIPSA will instrument and SIPP–16303 reminder send the applicants written notification card. of the decision. COMMISSION ON CIVIL RIGHTS Agency Approval Number: 0607– Authority: Pub. L. 94–582, 90 Stat. 2867, 0813. as amended (7 U.S.C. 71 et seq.). Membership of the USCCR Type of Request: Revision of a Dated: July 24, 1996. Performance Review Board currently approved collection. Neil E. Porter, Burden: 117,800 hours. AGENCY: U.S. Commission on Civil Number of Respondents: 77,000. Director, Compliance Division. Rights. Avg Hours Per Response: 30 minutes. [FR Doc. 96–19378 Filed 7–31–96; 8:45 am] ACTION Needs and Uses: The Bureau of the BILLING CODE 3410±EN±F : Notice of membership of the USCCR Performance Review Board. Census conducts the Survey of Income and Program Participation (SIPP) to SUMMARY: This notice announces the collect information from a sample of households concerning the distribution ARCTIC RESEARCH COMMISSION appointment of the Performance Review Board (PRB) of the United States of income received directly as money or Sunshine Act Meeting Commission on Civil Rights. Publication indirectly as in-kind benefits. SIPP data of PBR membership is required by 5 are used by economic policymakers, the July 25, 1996. U.S.C. 4314(c)(4). Congress, state and local governments, Notice is hereby given that U.S. Arctic The PRB provides fair and impartial and Federal agencies that administer Research Commission will hold its 44th review of the U.S. Commission on Civil social welfare and transfer payment Meeting in the Anchorage Museum in Rights Senior Executive Service programs such as the Department of Anchorage, AK on the afternoon of performance appraisals and makes Health and Human Services, the August 19 and the morning of August recommendations regarding Department of Housing and Urban 20, 1996 and in the Grand Aleutian performance ratings and performance Development, and the Department of Hotel in Dutch Harbor, AK on August awards to the Staff Director, U.S. Agriculture. The SIPP is a longitudinal 21. Anchorage agenda items include: Commission on Civil Rights for the FY survey, in that households in the 1996 rating year. ‘‘panel’’ are interviewed at regular (1) Call to order and approval of the intervals or ‘‘waves’’ over a number of Agenda. FOR FURTHER INFORMATION CONTACT: Ms. (2) Approval of the minutes of the 42nd years. The survey is molded around a Gerri Mason Hall, Personnel Division, central ‘‘core’’ of labor force and income Meeting. U.S. Commission on Civil Rights, 624 (3) Reports of Congressional Liaisons. questions, health insurance questions, (4) Agency Reports. Ninth Street, NW, Washington, DC and questions concerning government 20425, (202) 376–8356. program participation that remain fixed The business meeting will be throughout the life of a panel. The core followed by an Executive Session. Members questions are asked at Wave 1 and are On Wednesday, August 21, in Dutch —Paula Lettice, Director, Office of updated during subsequent interviews. Harbor the Commission will hear Budget and Program Execution, Office The core is periodically supplemented reports on: of Budget and Planning, U.S. with additional questions or ‘‘topical (1) The Bering Sea Impact Study (BESIS) Department of State; modules’’ designed to answer specific which is planned to study the impact of —Annabelle Lockhart, Director, Civil needs. This request is for clearance of Global Change on the Bering Sea region. Rights Center, U.S. Department of Wave 3 of the 1996 Panel. The Core (2) NOAA’s Eastern Bering Sea Carrying Labor; questions have already been cleared. Capacity Study which is studying the ability —Stephanie Y. Moore, General Counsel, of the Bering Sea to support life, particularly Topical modules for waves 4 through 13 fish. U.S. Commission on Civil Rights; and will be cleared later. The topical (3) The National Academy of Sciences —Donald Tendick, Deputy Executive modules for Wave 3 are: (1) assets and recently published report entitled, ‘‘The Director, Commodity Futures Trading liabilities, (2) medical expenses and Bering Sea Ecosystem.’’ Commission. work disability, (3) real estate, shelter 40194 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices costs, dependent care and vehicles, and May 30, 1996, June 4, 1996, and July 1, that on a quarterly basis the Secretary (4) the poverty module. Also, additional 1996, we received questionnaire will publish in the Federal Register a topical module items will be asked at responses from the five Turkish list of scope rulings completed within the end of the core instrument respondents producing merchandise the last three months. concerning earnings and employment, subject to this investigation. This notice lists scope rulings and general income amounts, stocks and On July 22, 1996, petitioners made a anticircumvention inquiries completed mutual fund shares, rental income, timely request pursuant to 19 CFR between April 1, 1996, and June 30, mortgages, royalties, and other financial 353.15(C) of the Department’s interim 1996, and pending scope clarification investments. Wave 3 interviews will be regulations (60 FR 25130, May 11, 1995) and anticircumvention inquiry requests. conducted from December 1996 through for a 50-day postponement of the The Department intends to publish in March 1997. preliminary determination, until October 1996 a notice of scope rulings Affected Public: Individuals or October 4, 1996, pursuant to Section and anticircumvention inquiries households. 733(c)(1)(A) of the Tariff Act of 1930, as completed between July 1, 1996, and Frequency: Every 4 months. amended (the Act). Petitioners September 30, 1996, as well as pending Respondent’s Obligation: Voluntary. requested a postponement so that the scope clarification and OMB Desk Officer: Jerry Coffey, (202) Department would have the opportunity anticircumvention inquiry requests. 395–7314. to analyze and use respondents’ cost of The following lists provide the Copies of the above information production data for the preliminary country, case reference number, collection proposal can be obtained by determination. requester(s), and a brief description of calling or writing Linda Engelmeier, For the reasons identified by either the ruling or product subject to Acting DOC Forms Clearance Officer, petitioners, we are postponing the the request. (202) 482–3272, Department of preliminary determination under Commerce, room 5312, 14th and Section 733(c)(1)(A) of the Act. I. Scope Rulings Completed Between Constitution Avenue, NW, Washington, We will make our preliminary April 1, 1996 and June 30, 1996 DC 20230. determination no later than October 4, Country: People’s Republic of China Written comments and 1996. recommendations for the proposed This notice is published pursuant to A–570–504 Petroleum Wax Candles information collection should be sent section 733(c)(2) of the Act and 19 CFR Morris Friedman & Co.—A candle in within 30 days of publication of this 353.15(d). a galvanized steel bucket and a candle in a glass container are notice to Jerry Coffey, OMB Desk Dated: July 26, 1996. Officer, room 10201, New Executive within the scope of the order. 6/24/ Jeffrey P. Bialos, 96. Office Building, Washington, DC 20503. Principal Deputy Assistant Secretary for Dated: July 29, 1996. Import Administration. Country: Japan Linda Engelmeier, [FR Doc. 96–19603 Filed 7–31–96; 8:45 am] A–588–504 Cellular Mobile Acting Departmental Forms Clearance BILLING CODE 3510±DS±P Telephones and Subassemblies Officer, Office of Management and Matsushita Communication Industrial Organization. Corporation and related entities— [FR Doc. 96–19601 Filed 7–31–96; 8:45 am] Notice of Scope Rulings Panasonic’s portable cellular BILLING CODE 3510±07±M AGENCY: Import Administration, telephone (PCT) hands-free device, International Trade Administration, model number EB–HF7002, is Department of Commerce. outside the scope of the order. 6/26/ International Trade Administration 96. ACTION: Notice of Scope Rulings and A–588–702 Stainless Steel Butt-Weld [A±489±807] Anticircumvention Inquiries. Pipe Fittings Notice of Postponement of Preliminary SUMMARY: The Department of Commerce Benkan America, Inc. and Benkan Determination of Sales at Less Than (the Department) hereby publishes a list UCT Corporation—superclean Fair Value: Certain Steel Concrete of scope rulings and anticircumvention fittings (SCFs) manufactured by Reinforcing Bars (Rebar) From Turkey inquiries completed between April 1, Benkan UCT are outside the scope 1996, and June 30, 1996. In conjunction of the order. 05/14/96. AGENCY: Import Administration, with this list, the Department is also A–588–804 Antifriction Bearings International Trade Administration, publishing a list of pending requests for Dana Corporation—Automotive Department of Commerce. scope clarifications and component known variously as a EFFECTIVE DATE: August 1, 1996. anticircumvention inquiries. The center bracket assembly, center FOR FURTHER INFORMATION CONTACT: Department intends to publish future bearings assembly, support bracket, Shawn Thompson or Cameron Werker, lists within 30 days of the end of each or shaft support bearing, is outside Import Administration, U.S. Department quarter. the scope of the order. 6/26/96. of Commerce, 14th Street and EFFECTIVE DATE: August 1, 1996. II. Anticircumvention Rulings Constitution Avenue NW., Washington, FOR FURTHER INFORMATION CONTACT: Completed Between April 1, 1996 and DC 20230; telephone (202) 482–1766 or Ronald M. Trentham, Import June 30, 1996 (202) 482–3874, respectively. Administration, International Trade None. POSTPONEMENT OF FINAL DETERMINATION: Administration, U.S. Department of On March 28, 1996, the Department Commerce, 14th Street and Constitution III. Scope Inquiries Terminated initiated an antidumping duty Avenue, NW, Washington, D.C. 20230; Between April 1, 1996 and June 30, investigation of imports of rebar from telephone: (202) 482–4793. 1996 Turkey. The notice of initiation stated that we would issue our preliminary Background Country: Turkey determination on or before August 15, The Department’s regulations (19 CFR A–489–501 Welded Carbon Steel 1996 (61 FR 15039, April 4, 1996). On 353.29(d)(8) and 355.29(d)(8)) provide Standard Pipe and Tube Products Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40195

Allied Tube and Conduit Corporation, determine whether 10 styles of within the scope of the order. Wheatland Tube Company, Laclede candles imported from the PRC are Country: Japan Steel Company, Sharon Tube within the scope of the order. Company, and Sawhill Tubular Midwest of Cannon Falls— A–588–055 Acrylic Sheet from Japan Division of Armco, Inc.— Clarification to determine whether Sumitomo Chemical Co., Ltd.— Clarification to determine whether 7 styles of candles imported from Clarification to determine whether pipe which meets the order’s the PRC are within the scope of the Sumielec, an acrylic based physical specifications, when order. antistatic material, is within the intended for or actually used as Cost Plus, Inc.—Clarification to scope of the order. standard pipe, is included within determine whether taper and pillar A–588–056 Melamine the scope of the order. Scope candles imported as beeswax Taiyo America, Inc.—Clarification to inquiry terminated on 06/04/96. candles are within the scope of the determine whether melamine with order. special physical characteristics IV. Anticircumvention Inquiries Kendal King Graphics—Clarification (100% of the particles are smaller Terminated Between April 1, 1996 and to determine whether certain than 10 microns) are within the June 30, 1996 Christmas ‘‘candle tins’’ are within scope of the order. None. the scope of the order. A–588–802 31⁄2′′ Microdisks Sun-It Corporation—Clarification to TDK Inc., TDK Electronics Co.— V. Pending Scope Clarification Requests determine whether tapers Clarification to determine whether as of June 30, 1996 manufactured with citronella oil are certain web roll media are within Country: Brazil within the scope of the order. the scope of the order. A–570–808 Chrome-Plated Lug Nuts A–588–804 Antifriction Bearings A–351–817, C–351–818 Certain Cut- (Other Than Tapered Roller to-Length Carbon Steel Plate Consolidated International Automotive, Inc.—Clarification to Bearings), and Parts Thereof Wirth Limited—Clarification to Rockwell International Corporation— determine whether profile slabs determine whether certain nickel- plated lug nuts are within the scope Clarification to determine whether produced by Companhia an automotive component known as Siderurgica de Tubarao and of the order. Wheel Plus, Inc.—Clarification to a cushion suspension unit (or imported by Wirth Limited are cushion assembly unit or center within the scope of the order. determine whether imported zinc- plated lug nuts which are chrome- bearing assembly) is within the Country: United Kingdom plated in the United States are scope of the order. A–412–612 Crankshafts within the scope of the order. A–588–807 Industrial Belts and Clarkes Crankshaft Ltd.—Clarification A–570–820 Certain Compact Ductile Components and Parts Thereof, to determine whether crankshafts Iron Waterworks (CDIW) Fittings Whether Cured or Uncured produced utilizing an open die and Glands Honda Power Equipment forging process are within the scope Star Pipe Products, Inc.—Clarification Manufacturing Inc. (HPE)— of the order. to determine whether ‘‘retainer Clarification to determine whether glands’’ are within the scope of the certain belts HPE imports from Country: Germany order. Japan for use in manufacturing A–428–801 Antifriction Bearings A–570–822 Helical Spring Lock lawn tractors and riding lawn (Other Than Tapered Roller Washers (HSLWs) mowers are within the scope of the Bearings) and Parts Thereof Shakeproof Industrial Products order. Enkotec Company, Inc.—Clarification Division of Illinois Tool Works American Honda Motor Co., Inc. to determine whether the ‘‘main (SIP)—Clarification to determine (AHM)—clarification to determine bearings’’ imported for whether HSLWs which are whether certain v-belts imported incorporation into Enkotec Rotary imported to the U.S. in an uncut, from Japan by AHM are within the Nail Machines are slewing rings coil form are within the scope of the scope of the order. and, therefore, outside the scope of order. A–588–809 Small Business Telephone the order. Systems and Subassemblies and Country: Taiwan Parts Thereof Country: Singapore A–583–508 Porcelain-on-Steel Iwatsu America, Inc. and Iwatsu A–559–801 Antifriction Bearings Cooking Ware Electric Co.—Clarification to (Other Than Tapered Roller Cost Plus, Inc.—Clarification to determine whether certain dual use Bearings) and Parts Thereof determine whether 10 piece subassemblies (central processing Rockwell International Corporation— porcelain-on-steel fondue sets are units and read-only-memory units) Clarification to determine whether within the scope of the order. are within the scope of the order. an automotive component known as A–583–810 Chrome-Plated Lug Nuts A–588–810 Mechanical Transfer a cushion suspension unit (or Consolidated International Presses cushion assembly unit or bearing Automotive, Inc.—Clarification to Komatsu Ltd.—Clarification to assembly) is within the scope of the determine whether certain nickel- determine whether certain order. plated lug nuts are within the scope mechanical transfer press parts of the order. exported from Japan are within the Country: People’s Republic of China A–583–820 Helical Spring Lock scope of the order. A–570–504 Petroleum Wax Candles Washers (HSLWs) A–588–815 Gray Portland Cement and Mervyn’s—Clarification to determine Shakeproof Industrial Products Clinker whether a candle, article no. 20172, Division of Illinois Tool Works Surecrete, Inc.—Clarification to in the shape of a cube is within the (SIP)—Clarification to determine determine whether New Super Fine scope of the order. whether HSLWs imported into the Cement manufactured by Nittetsu Enesco Corporation—Clarification to U.S. in an uncut, coil form are Cement Co., Ltd., is within the 40196 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

scope of the order. Dated: July 25, 1996. Urban Forestry Center, 45 Elwyn Road, A–588–824 Corrosion Resistant Jeffrey P. Bialos, Portsmouth, New Hampshire. Carbon Steel Flat Products Principal Deputy Assistant Secretary for The Rhode Island Coastal Zone Drive Automotive Industries— Import Administration. Management Program site visit will be Clarification to determine whether [FR Doc. 96–19602 Filed 7–31–96; 8:45 am] from September 9–13, 1996. A public 2000 millimeter wide, made to BILLING CODE 3510±DS±P meeting will be on Wednesday, order, corrosion resistant carbon September 11, 1996, at 7:00 P.M., at the steel coils are within the scope of Department of Administration Building, the order. National Oceanic and Atmospheric Administration 1 Capitol Hill, Conference Room A, 2nd Country: Russia Floor, Providence, Rhode Island. Evaluation of Coastal Zone The Sapelo Island, Georgia, National A–821–803 Titanium Sponge Management Programs and National Estuarine Research Reserve, site visit Waldron Pacific, Inc.—Clarification to Estuarine Research Reserve will be from September 23–27, 1996. A determine whether titanium tablets public meeting will be held on produced by electrolytic reduction AGENCY: Office of Ocean and Coastal Wednesday, September 25, 1996, at 7:00 are within the scope of the order. Resource Management, National Ocean P.M. at the Sapelo Island Visitor’s A–821–805 Pure Magnesium Service, National Oceanic and Atmospheric Administration (NOAA), Center, Dock Landing Road, Meridian, ESM II, Inc.—Clarification to DOC. Georgia. determine whether unwrought ACTION: Notice of intent to evaluate. The States will issue notice of the magnesium containing less than 99.8% magnesium by weight, in public meeting(s) in a local SUMMARY: The NOAA Office of ocean newspaper(s) at least 45 days prior to ingots, plates, blocks, and other and Coastal Resource management shapes, is within the scope of the the public meeting(s), and will issue (OCRM) announces its intent to evaluate other timely notices as appropriate. order. the performance of the Maine, New Copies of the State’s most recent VI. Pending Anticircumvention Hampshire and Rhode Island Coastal performance reports, as well as OCRM’s Inquiries as of June 30, 1996 Zone Management Programs and the Sapelo Island (GA) National Estuarine notifications and suppplemental request Country: Korea Research Reserve Program. letters to the States, are available upon A–580–008 Color Television Receivers These evaluations will be conducted request from OCRM. Written comments from Korea pursuant to sections 312 and 315 of the from interested parties regarding these Coastal Zone Management Act of 1972 Programs are encouraged and will be International Brotherhood of (CZMA), as amended. The CZMA accepted until 15 days after the public Electrical Workers, the International requires a continuing review of the meeting. Please direct written comments Union of Electronic Electrical, performance of states with respect to Salaried, Machine & Furniture to Vickie A. Allin, Chief, Policy coastal program implementation and Coordination Division, Office of Ocean Workers, and the Industrial Union reserve management. Evaluation of Department (the Unions)— and Coastal Resource Management, Coastal Zone Management Programs and NOS/NOAA, 1305 East-West Highway, Anticircumvention inquiry to National Estuarine Research Reserves determine whether Samsung Silver Spring, Maryland, 20910. When requires findings concerning the extent the evaluation is completed, OCRM will Electronics Co., L.G. Electronics to which a state has met the national Inc., and Daewoo Electronics Co., place a notice in the Federal Register objectives, adhered to its coastal announcing the availability of the Final are circumventing the order by program document or reserve Evaluation Findings. shipping Korean-origin color Management Plan approved by the picture tubes, printed circuit Secretary of Commerce, and adhered to FOR FURTHER INFORMATION CONTACT: boards, color television kits, the terms of financial assistance awards Vickie A. Allin, Chief, Policy chassis, and other materials, parts funded under the CZMA. The Coordination Division, Office of Ocean and components to plants operated evaluations will include a site visit, and Coastal Resource Management, by related parties in Mexico where consideration of public comments, and NOS/NOAA, 1305 East-West Highway, the parts are then assembled in consultations with interested Federal, CTVs and shipped to the U.S. Silver Spring, Maryland, 20910, (301) State,and local agencies and members of 713–3090, ext. 126. Additionally, an anticircumvention the public. Public meetings are held as inquiry to determine whether part of the site visits. (Federal Domestic Assistance Catalog 11.419 Samsung by shipping Korean-origin Notice is hereby given of the dates of Coastal Zone Management Program color picture tubes and other CTV the site visits for the listed evaluations, Administration) parts to a related party in Thailand and the dates, local times, and locations Dated: July 25, 1996. for assembly into complete CTVs of public meetings during the site visits. David L. Evans, prior to exportation to the U.S. The Maine Coastal Zone Management Acting Deputy Assistant Administrator for Interested parties are invited to Program site visit will be from Ocean Services and Coastal Zone comment on the accuracy of the list of September 9–13, 1996. A public meeting Management. pending scope clarification requests. will be on Thursday, September 12, [FR Doc. 96–19586 Filed 7–31–96; 8:45am] Any comments should be submitted to 1996, at 4:00 P.M., at the Portland City BILLING CODE 3510±08±M the Assistant Secretary for Import Court House, Portland City, Maine. Administration, International Trade The New Hampshire Coastal Zone Administration, Room B–099, U.S. Management Program site visit will be Department of Commerce, 14th Street from September 9–13, 1996. A public and Constitution Avenue, NW., meeting will be on Wednesday, Washington, DC 20230. September 11, 1996, at 7:00 P.M., at the Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40197

[Docket No. 960412111±6202±02; I.D. but to change certain aspects of the address an estimated loss of 1,000 full- 040596B] NEAP and propose revisions to certain time jobs in the shoreside sector since RIN 0648±ZA20 limitations, terms, and conditions of the 1988. programs. The April 23, 1996, notice Response 1: The IFA limits assistance West Coast Salmon Fisheries; effected administrative changes relating ‘‘to persons engaged in commercial Northwest Emergency Assistance Plan to the calculation of uninsured loss, and fisheries* * *. ‘‘ NMFS interprets this to (NEAP) specifically requested comments on the mean vessel owners, operators, or crew following issues: (1) A decrease in the directly involved in commercial fishing. AGENCY: National Marine Fisheries minimum commercial fishing income Consequently, losses suffered by the Service (NMFS), National Oceanic and earning requirement from $5,000 to processing and support industries are Atmospheric Administration (NOAA), $2,500; (2) allowing participants in the not eligible for assistance. Commerce. License Buy Out Program to participate Comment 2: One association ACTION: Final notice. in the Jobs Programs; (3) exclusion of requested that habitat restoration be applicants from the License Buy Out focused in areas that are managed for SUMMARY: This notice announces the Program who offer licenses purchased wild stocks, which is one of the most final eligibility criteria for the NEAP in 1995; and (4) four bidding options for limiting factors in mixed stock fisheries Habitat Restoration Jobs Program and the License Buy Out Program. management. The association also the Data Collection Jobs Program, and The notice also indicated that commented that project selection responds to comments submitted on the Congress may amend the IFA to provide should not focus only on areas with the notice of proposed program, which was NMFS with more program flexibility. most fishermen per capita, because published in the Federal Register on The President signed these amendments fishermen who fish in coastal fisheries April 23, 1996. The notice of proposed into law on April 26, 1996. These but reside in the North Puget Sound or program effected certain administrative amendments superseded the the metropolitan Puget Sound areas also changes to the NEAP, and requested administrative change made in the April have suffered from the fisheries disaster. comments on proposed NEAP revisions 23, 1996, Federal Register notice Response 2: The selection of habitat for the Habitat Restoration Program and relating to uninsured losses, and had the projects focuses primarily on the the Data Collection Jobs Program, as following impacts on the NEAP: (1) optimum benefit to the salmon resource. well as the License Buy Out Program. Financial assistance is now no longer However, since the projects are NMFS has established final funding limited to $100,000 over the life of the designed to employ eligible fishermen, allocations for the Habitat Restoration NEAP; (2) no calculation of uninsured projects must be located within Jobs ($4.7 million), Data Collection Jobs loss is necessary; and (3) participation commuting distance of these fishermen. ($2.8 million) and License Buy Out in the program is now limited to In addition, local, state and Federal ($5.2 million) Programs. Final decision applicants with less than $2,000,000 in officials participate in the project on the administration of the License net revenues annually from commercial selection process, and their decisions Buy Out Program has been deferred fishing, as opposed to the previous cap reflect current policies concerning wild until the public is provided with notice of $2,000,000 in gross revenues and hatchery stocks. Protection of and an opportunity to comment on new annually. habitat associated with hatchery stocks bidding options. The decision to defer Pursuant to the comments received on is important and usually benefits wild the program is based on comments the notice, and after consultations with stocks. received from the public and state and local officials, NMFS has Comment 3: One local government consultations with state and local decided to defer a final decision on the organization and one fisherman officials. License Buy Out Program. The requested that NEAP be expanded to EFFECTIVE DATE: July 26, 1996. comments indicated a lack of consensus on any proposed bidding option, and include Puget Sound, claiming that FOR FURTHER INFORMATION CONTACT: the Governor of Washington, citing this Puget Sound charterboat operators Stephen Freese, (206) 526-6113. lack of consensus, supported a delay of experienced severe Sound closures SUPPLEMENTARY INFORMATION: On August the program for consideration of new during the years 1994 through 1996 and, 2, 1995, the Secretary of Commerce options. These new bidding options are unlike coastal charters, cannot easily (Secretary) declared that a fishery being developed, and the public will be switch to bottomfishing or whale resource disaster continued in 1995 for provided with notice and an watching. the salmon fisheries of the Pacific States opportunity to comment before a final Response 3: The IFA provides of California (north of San Francisco), decision is made. assistance to fishermen affected by Oregon, and Washington, excluding declared fisheries disasters. The Puget Sound. Under the authority of the Comments and Responses Secretary’s disaster declaration limited Interjurisdictional Fisheries Act (IFA) of In response to the notice of proposed the disaster to the fisheries of the Pacific 1986 (16 U.S.C. 4107(d)), as amended, program, NMFS received 25 comment States of California (north of San an additional $12.7 million in Federal letters from 10 fishing associations, 14 Francisco), Oregon, and Washington, financial assistance was made available fishermen, 1 tribe, and 2 government excluding Puget Sound. Puget Sound for affected salmon fishermen. entities. This notice will only respond was excluded because the factors In the notice and request for to comments on the Habitat Restoration underlying the natural resource disaster comments (61 FR 17879; April 23, Program and Data Collection Jobs were not deemed to have extended to 1996), NMFS announced its decision to Program. NMFS will respond to the Puget Sound. Consequently, Puget continue the basic structure of the comments on the License Buy Out Sound fishermen are not eligible for Habitat Restoration Jobs Program and Program in the notice that will present assistance. the Data Collection Jobs Program, as first the new bidding options. Comment 4: One local government established on October 11, 1994 (59 FR Comment 1: One county government organization urged that disaster 51419), with subsequent amendments requested inclusion of processors and assistance be provided to the Northwest published on January 31, 1995 (60 FR support industries in NEAP. Similarly, fishing industry now to enable it to 3908), and June 22, 1995 (60 FR 32507), one association requested programs to survive projected losses in 1996. 40198 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Response 4: Since the Secretary has recommendations of the Governor of 5. If single, the applicant’s 1993, 1994, not yet declared a fisheries disaster for Washington. The allocation of Habitat or 1995 gross income (income from 1996, Commerce cannot provide Restoration Jobs Program funds within a fishing and non-fishing activities) must assistance for projected losses in 1996. state is a decision made by the U.S. have been less than $25,000. If married, Comment 5: One association Department of Agriculture (USDA) in the applicant’s 1993, 1994, or 1995 gross recommended adjusting the maximum consultation with the states and the income must have been less than income limitations for differences in the resource conservation districts. $50,000. cost of living in different geographical Comment 8: Three associations and Since NMFS received no comments to areas. one resource conservation district the contrary, fishermen who have Response 5: Adjusting the maximum requested that $100,000 be transferred participated or will participate in the income limitations for differences in the from the California Habitat Restoration Washington State License Buy Out cost of living in different geographical Jobs Program to the California Data Program are now eligible for assistance areas would be unduly burdensome and Collection Jobs Program. This request is through employment in the Habitat may delay the program. NMFS believes for at-sea data collection projects in Restoration Program or the Data that the current income limitations support of Pacific Fisheries Collection Jobs Program if they meet the accurately capture the fishermen most Management Council salmon other program eligibility requirements. affected by the disasters. management. These projects will assess All inquiries on how to apply to the Comment 6: To improve the data fishing techniques that avoid stressed Habitat Restoration Jobs Program should collected in the Data Collection Jobs stocks while allowing access to healthy be directed to the following people: Program, one association requested that stocks. Washington—Steve Meyer, Executive the requirements for qualified platforms Response 8: NMFS, USDA, and the Director, Washington State Conservation and fishermen be lenient enough so that Office of the Governor of California Commission, P.O. Box 47721, Olympia, contractors could hire the best type of concur in this recommendation, and WA vessel for the planned research. $100,000 of funds has been transferred. 98504–7721; (360) 407–6201. Response 6: Under the 1995 eligibility Comment 9: One fisherman stated that Oregon—Tom Schafer, Outreach requirements, an adequate number of there was a mistake in referring to a Coordinator, Salmon Disaster Outreach appropriate vessels were found to specific Federal Register notice and Program, 13408 Alsea Highway, complete the desired research. If the requested that NMFS publish a Tidewater, OR 97390; (541) 528–7451. subcontractor requires a larger vessel in correction and extend the public California—Curtis Ihle, Overall order to further NEAP conservation and comment period appropriately. Program Coordinator, Humboldt County sustainable management efforts and Response 9: On page 17880 of the Resource Conservation District, P.O. complete essential research, and NEAP Federal Register notice (61 FR 17879, Box 397, Fields Landing, CA 95537– eligible fishermen with such vessels are April 23, 1996), the following statement 0397; (707) 444–9708. not available, the subcontractor may was made: ‘‘Furthermore, as a result of For employment in the Data utilize non-eligible fishermen’s vessels. the Secretary’s expansion of the disaster Collection Jobs Program, please contact However, subcontractors must contact and NMFS’s efforts to improve the Russell Porter, Field Program and receive prior approval from NMFS program, the term ‘‘loss’’, as defined in Administrator, Pacific States Marine and the Pacific States Marine Fisheries the NEAP published on January 31, Fisheries Commission, 45 SE. 82nd Commission before hiring such vessels. 1994 (60 FR 5908)* * *.’’ The correct Drive, Suite 100, Gladstone, OR 97027– The subcontractor must also be able to publication date of the Federal Register 2522; (503) 650–5400. demonstrate the need for a larger vessel notice being referred to is January 31, and document the search for eligible Catalogue of Federal Domestic 1995. The volume and page number of Assistance owner-operators. Fishermen who the citation are correct and, therefore, perform the data collection research this does not necessitate an extension of The Program is listed in the activities on the vessel (not the owner the comment period. ‘‘Catalogue of Federal Domestic or operator) must still satisfy the Data Assistance’’ under No. 11.452, Unallied Collection Jobs Program eligibility Final Eligibility Criteria for the Habitat Industry Projects. criteria. Restoration Jobs Program and Data Comment 7: Three comments were Collection Jobs Program Classification received concerning the amounts of Pursuant to the IFA amendments and This action has been determined to be money allocated for the existing the comments received on the notice of not significant for purposes of E.O. programs. One association wanted an proposed program, NMFS has 12866. increased allocation for California established the following eligibility NMFS finds good cause for making fishermen, while another association criteria: this announcement effective the date of sought more money for the Washington 1. The applicant must be a filing with the Office of the Federal License Buy Out Program. One commercial fisherman as defined in the Register. Delaying the effective date is fisherman wanted more money for October 11, 1994, program notice (59 FR impracticable and contrary to the public buying charter boat permits under the 51419). interest because it would delay financial Washington License Buy Out Program, 2. The applicant must have earned at assistance to those affected by a fishery and three associations requested that the least $2,500 in commercial fishing resource disaster. Furthermore, the data California Habitat Restoration Jobs income in any of the base years 1986 collection is tied to the migratory Program funds be split equally among through 1991. patterns of the stock, and must be the four counties. 3. Applicants must show completed soon if it is to be of use for Response 7: The NEAP allocation of documentation that they participated in the next fishing season. funds among states and among programs the commercial fisheries during the The Assistant General Counsel for was based on consultations with state disaster period of 1991 to 1995. Legislation and Regulation of the governors. The allocation of funds 4. The applicant must have earned Department of Commerce certified to among gear groups in the License Buy less than $2,000,000 in net revenues the Chief Counsel for Advocacy of the Out Program was based on the annually from commercial fishing. Small Business Administration that this Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40199 announcement would not have a PTO to determine whether a patent examiner. The information provided on significant economic impact on a application during processing meets the the Power to Inspect/Copy form (PTO/ substantial number of small entities criteria set forth in the patent statutes SB/67) assists applicants, counsel of because only a small portion of the and regulations. The usage of the PTO record or the assignee to designate all industry will be directly affected. forms, while not required, will ensure third parties who are entitled to inspect/ This program contains a collection-of- compliance with requirements and copy the application and the information requirement subject to the facilitate the automatic processing and information on Request for Access of Paperwork Reduction Act (PRA). The digital image and/or optical character Abandoned Application form (PTO/SB/ collection of this information has been recognition scanning of application 68) assists the public in supplying the approved by the Office of Management materials. appropriate information necessary to and Budget (OMB), under OMB control The information provided on the obtain the abandoned application file. number 0648-0288. Notwithstanding Information Disclosure forms (PTO/SB/ The information on the Certificate of any other provision of law, no person is 08A/08B/42) will assist applicants in Mailing forms (PTO/SB/92/93) assist required to respond to nor shall a complying with the duty to disclose applicant in receiving, as the response person be subject to a penalty for failure requirements of the patent statutes and date, the date on which response papers to comply with a collection of regulations, and will further assist the information subject to the requirements are deposited with the U.S. Postal PTO in examination of the application, Service or sent by facsimile of the PRA unless that collection of and in maintaining pertinent transmission directly to the PTO. The information displays a currently valid information related to a patented file. information on the Petition Routing Slip OMB control number. The information provided on the Small (PTO/SB/69) assists in efficiently Authority: Public Law 99-659 (16 U.S.C. Entity Status forms (PTO/SB/09/10/11/ 4107 et seq.); Public Law 102-396. 12) assist applicants, including routing and expeditiously processing independent inventors, small business petition papers which have been filed at Dated: July 25, 1996. the PTO, and the information provided Charles Karnella, concerns and non-profit organizations, to provide accurate and appropriate on the Deposit Accout Order Form Acting Director, Office of Management and information to the Office in order to (PTO/SB/91) assists the PTO in Information, National Marine Fisheries processing orders for articles and/or Service. establish small entity status and thereby services. [FR Doc. 96–19539 Filed 7–26–96; 4:57 pm] reduce their statutory fees as set forth in 35 U.S.C. 41 by 50 percent. The BILLING CODE 3510±22±F Affected Public: Individuals or information provided on the Transmittal households, Business or other for-profit Form (PTO/SB/21) alerts the Patent and institutions, Not-for-profit institutions, Patent and Trademark Office Trademark Office of the nature of the Farms, State, Local or Tribal communication from the applicant Government, and Federal Government. Submission for OMB Review; relating to patent processing. The Comment Request information on the Disclaimer forms Frequency: When filing response (PTO/SB25/26/43/62/63) assists during the prosecution of a patent The Department of Commerce (DOC) patentees in disclaiming any complete application. has submitted to the Office of claim of a patent or the terminal part of Respondent’s Obligation: Required to Management and Budget (OMB) for the statutory term of a patent. The obtain or retain a benefit. clearance the following proposal for information provided on the Extension collection of information under the OMB Desk Officer: Maya A. Bernstein, of Time forms (PTO/SB/22/23/32) assist (202) 395–4816. provisions of the Paperwork Reduction applicants in deciding the length of Act (44 U.S.C. chapter 13). extension of time requested in order to Copies of the above information Agency: Patent and Trademark Office respond to Office communications collection proposal can be obtained by (PTO). having statutory periods for response. calling or writing Linda Engelmeier, Title: Patent Processing (Updating). The information provided on the Acting DOC Forms Clearance Officer, Agency Approval Number: 0651– Petition To Revive forms (PTO/SB/61/ (202) 482–3272, Department of 0031. 61PCT/64/64PCT) outline what an Commerce, Room 5312, 14th and Form Numbers: PTO/SB/08A/08B/09/ applicant must do to revive a patent Constitution Avenue, NW, Washington, 10/11/12/21/22/23/24/25/26/31/32/42/ application which has become DC 20230. 43/61/61PCT/62/63/64/64PCT/67/68/ abandoned, either unintentionally or Written comments and 69/91/92/93/97. unavoidably. These forms spotlight the Type of Request: Revision of a recommendations for the proposed different criteria for the two scenarios, information collection should be sent currently approved collection. including the need for a fee, the within 30 days of publication of this Burden: 647,720 hours. required information for a proper notice to Maya Bernstein, OMB Desk Number of Respondents: 364,000. response and whether small entity Average Hours Per Response: status is appropriate. The information Officer, Room 10236, New Executive .1 hour for PTO/SB/22/32/92/93/97 on the Express Abandonment form Office Building, Washington, DC 20503. .1 hour for PTO/SB/22/32/92/93/97 (PTO/SB24) assists applicants in Dated: June 25, 1996. .2 hour for PTO/SB/21/24/25/26/43/ requesting abandonment of an Linda Engelmeier, 62/63/31/67/68/69/91 application while at the same time .3 hour for PTO/SB/09/10/11/12 Acting Departmental Forms Clearance reminding applicant of a continuing Officer, Office of Management and .5 hour for PTO/SB/23 application which has been filed. The Organization. 1 hour for PTO/SB/61/61PCT/64/ information provided on the Notice of [FR Doc. 96–19600 filed 7–31–96; 8:45 a.m.] 64PCT Appeal form (PTO/SB/31) assists 2 hours for PTO/SB/08A/08B/42 applicants for patents or owners of BILLING CODE 3510±16±P Needs and Uses: The purpose of this patents under reexamination in information collection is to permit the appealing the decision of the primary 40200 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

COMMODITY FUTURES TRADING August 13–14, 1996 at the Beckman Dated: July 25, 1996. COMMISSION Center, Irvine, California. In order for Patricia L. Toppings, the Task Force to obtain time sensitive Alternate OSD Federal Register Liaison Membership of the Commission's classified briefings, critical to the Officer, Department of Defense. Performance Review Board understanding of the issues, these [FR Doc. 96–19513 Filed 7–31–96; 8:45 am] meetings are scheduled on short notice. AGENCY: Commodity Futures Trading BILLING CODE 5000±04±M The mission of the Defense Science Commission. Board is to advise the Secretary of ACTION: Membership change of Defense through the Under Secretary of Defense Science Board Task Force on performance review board. Defense for Acquisition and Technology Deep Attack Weapons Mix Study SUMMARY: In accordance with the Office on scientific and technical matters as (DAWMS) they affect the perceived needs of the of Personnel Management guidance ACTION: Notice of advisory committee Department of Defense. At these under the Civil Service Reform Act of meeting. 1978, notice is hereby given that the meetings the Task Force will assess the following employees will serve as viability of accelerating the SMTS SUMMARY: The Defense Science Board members of the Commission’s development prior to the baseline 2006 Task Force on Deep Attack Weapons Performance Review Board. date. Mix Study (DAWMS) will meet in Chairperson: Donald Tendick, Acting In accordance with Section 10(d) of closed session on August 13–14, 1996 at Executive Director. Members: David the Federal Advisory Committee Act, the Beckman Center, Irvine, California. Merrill, Executive Assistant to the Public Law 92–463, as amended (5 In order for the Task Force to obtain Acting Chairman, Office of the U.S.C. App. II, (1994)), it has been time sensitive classified briefing, critical Chairman; Pat Nicolette, Acting General determined that these DSB Task Force to the understanding of the issues, this Counsel, Office of General Counsel; meetings concern matters listed in 5 meeting is scheduled on short notice. Andrea Corcoran, Director, Division of U.S.C. 552b(c)(1) (1994), and that The mission of the Defense Science Trading and Markets; Geoffrey Aronow, accordingly these meetings will be Board is to advise the Secretary of Director, Division of Enforcement; Blake closed to the public. Defense through the Under Secretary of Imel, Acting Director, Division of Dated: July 25, 1996. Defense for Acquisition and Technology Economic Analysis. Patricia L. Toppings, on scientific and technical matters as they affect the perceived needs of the DATE: This action was effective July 26, Alternate OSD Federal Register Liaison 1996. Officer, Department of Defense. Department of Defense. At this meeting the Task Force will develop an ADDRESS: Commodity Futures Trading [FR Doc. 96–19512 Filed 7–31–96; 8:45 am] independent assessment of the analytic Commission, Office of Human BILLING CODE 5000±04±M tools and models employed in the DoD Resources, Suite 7200, 1155 21st Street internal DAWNS effort. Specifically, the NW., Washington, DC 20581. Task Force will (1) assess the analysis FOR FURTHER INFORMATION CONTACT: Defense Science Board Task Force on Global Positioning System, Phase II developed in part one of the study, (2) Jayne Seidman, Director, Office of evaluate the soundness of the analytic Human Resources, Commodity Futures ACTION: Notice of advisory committee approach proposed for part two, and (3) Trading Commission, Suite 7200, 1155 meeting. review the alternatives—developed in 21st Street NW., Washington, DC 20581, part two to ensure that they are SUMMARY: (202) 418–5010. The Defense Science Board balanced and representative. Task Force on Global Positioning SUPPLEMENTARY INFORMATION: This In accordance with Section 10(d) of System, Phase will meet in closed the Federal Advisory Committee Act, action which changes the membership session on August 7–8, 1996 at MIT, of the Board supersedes the previously P.L. No. 92–463, as amended (5 U.S.C. Lincoln Laboratory Office, Arlington, App. II, (1994)), it has been determined published Federal Register Notice, May Virginia. In order for the Task Force to 30, 1995. that this DSB Task Force meeting obtain time sensitive classified concerns matters listed in 5 U.S.C. briefings, critical to the understanding § 552b(c)(1) (1994), and that accordingly Issued in Washington, DC on July 26, 1996. of the issues, this meeting is scheduled Jean A. Webb, this meeting will be closed to the on short notice. public. Secretary to the Commission. The mission of the Defense Science [FR Doc. 96–19570 Filed 7–31–96; 8:45 am] Board is to advise the Secretary of Dated: July 25, 1996. BILLING CODE 6351±01±M Defense through the Under Secretary of Patricia L. Toppings, Defense for Acquisition and Technology Alternate OSD Federal Register Liaison on scientific and technical matters as Officer, Department of Defense. DEPARTMENT OF DEFENSE they affect the perceived needs of the [FR Doc. 96–19514 Filed 7–31–96; 8:45 am] Department of Defense. At this meeting BILLING CODE 5000±04±M Office of the Secretary the Task Force will examine affordable options in providing a robust position, Defense Science Board Task Force on navigation and timing capability. Defense Science Board Task Force on Space and Missile Tracking System In accordance with Section 10(d) of Image-Based Automatic Target (SMTS) the Federal Advisory Committee Act, Recognition ACTION: Notice of Advisory Committee Public Law 92–463, as amended (5 ACTION: Notice of Advisory Committee Meetings. U.S.C. App. II, (1994)), it has been Meetings. determined that this DSB Task Force SUMMARY: The Defense Science Board meeting concerns matters listed in 5 SUMMARY: The Defense Science Board Task Force on Space and Missile U.S.C. 552b(c)(1) (1994), and that Task Force on Image-Based Automatic Tracking System (SMTS) will meet in accordingly this meeting will be closed Target Recognition will meet in closed closed session on August 6–7 and to the public. session on August 20–21 at Science Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40201

Applications International Corporation, systems of records subject to the Privacy information, dates and extent of McLean, Virginia; and on September Act of 1974 (5 U.S.C. 552a), as amended, involvement in an experiment, exposure 10–11, 1996 at Erim, Michigan. have been published in the Federal data, medical data, medical history of The mission of the Defense Science Register and are available from the subject and relatives, and other Board is to advise the Secretary of address above. documentation of exposure to ionizing Defense through the Under Secretary of The proposed amendments are not radiation or other agents. Defense for Acquisition and Technology within the purview of subsection (r) of The system contains information on scientific and technical matters as the Privacy Act (5 U.S.C. 552a), as abstracted from historical records, and they affect the perceived needs of the amended, which would require the information furnished to the Department of Defense. At these submission of a new or altered system Department of Defense, Department of meetings the Task Force will assess the report for each system. The specific Energy or other Federal Agencies by ability of automatic/aided target changes to the record systems being affected individuals or other interested recognition technology and systems to amended are set forth below followed parties. support important military missions, by the notices, as amended, published Records include human radiation principally in the near- and mid-term . in their entirety. experimentation conducted from 1944 The Task Force should concentrate on Dated: July 25, 1996. to the present. However, experiments those technologies and systems that use conducted after May 20, 1974 (the date imagery (EO, IR or radar) as their Patricia L. Toppings, of issuance of the Department of Health, primary input medium. Alternate OSD Federal Register Liaison Education and Welfare Regulations for In accordance with Section 10(d) of Officer, Department of Defense. the Protection of Human Subjects, 45 the Federal Advisory Committee Act, CFR part 46), may be covered by other P.L. No. 92–463, as amended (5 U.S.C. DUSDA 05 systems of records. App. II, (1994)), it has been determined SYSTEM NAME: Common and routine medical that these DSB Task Force meetings practices, such as established diagnostic Human Radiation Research Review. concern matters listed in 5 U.S.C. and treatment methods involving 552b(c)(1) (1994), and that accordingly SYSTEM LOCATION: incidental exposures to ionizing these meetings will be closed to the Department of Defense Radiation radiation are not included within this public. Experiments Command Center, 6801 system. Dated: July 25, 1996. Telegraph Road, Alexandria, VA 22310– Examples of such methods are Patricia L. Toppings, 3398; and the Office of the Under panorex radiographs for dental Alternate OSD Federal Register Liaison Secretary of Defense for Acquisition and evaluations and thyroid scans for the Officer, Department of Defense. Technology, Assistant to the Secretary evaluation and treatment of hypo/ [FR Doc. 96–19515 Filed 7–31–96; 8:45 am] of Defense (Atomic Energy), 3010 hyperthyroidism. Defense Pentagon, Washington, DC BILLING CODE 5000±04±M AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 20301–3010. 10 U.S.C. 133, E.O. 12891 (January 15, CATEGORIES OF INDIVIDUALS COVERED BY THE 1994), E.O. 9397 (SSN). Privacy Act of 1974; Notice to Amend SYSTEM: Record Systems Individuals who were or may have PURPOSE(S): AGENCY: Office of the Secretary of been the subject of tests involving For use by agency officials and Defense, DOD. ionizing radiation or other human- employees, or authorized contractors, ACTION: Notice to amend record systems. subject experimentation; individuals and other DoD components in the who have inquired or provided preparation of the histories of human SUMMARY: The Office of the Secretary of information to the Department of Energy radiation experimentation; to conduct Defense proposes to amend two systems Helpline or the Department of Defense scientific studies or medical follow-up of records notices in its inventory of Human Radiation Experimentation programs; to respond to Congressional record systems subject to the Privacy Command Center concerning such and Executive branch inquiries; and to Act of 1974 (5 U.S.C. 552a), as amended. testing. provide data or documentation relevant The amendment is precipitated by the Military and DoD civilian personnel to the exposure of individuals. Defense Nuclear Agency changing its who participated in atmospheric name to Defense Special Weapons nuclear testing between 1945 and 1962 ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND or the occupation of Hiroshima and Agency. THE PURPOSES OF SUCH USES: DATES: Nagasaki are already included in the The amendments will be In addition to those disclosures effective on September 3, 1996, unless Defense Special Weapons Agency’s Nuclear Test Personnel Review (NTPR) generally permitted under 5 U.S.C. comments are received that would 552a(b) of the Privacy Act, these records result in a contrary determination. program and are not part of this effort. The Defense Nuclear Agency’s system of or information contained therein may ADDRESSES: Send comments to Chief, specifically be disclosed outside the Records Management and Privacy Act records notice that covers the NTPR is HDSWA 010, entitled Nuclear Test DoD as a routine use pursuant to 5 Branch, Washington Headquarter U.S.C. 552a(b)(3) as follows: Services, Correspondence and Participants. However, inquiries referred from the Helpline that later are Information from this system of Directives, Records Management records may be disclosed to officials and Division, 1155 Defense Pentagon, determined to fall within this category will be included in the system. contract personnel of the Human Washington, DC 20301–1155. Radiation Experimentation Interagency FOR FURTHER INFORMATION CONTACT: Mr. CATEGORIES OF RECORDS IN THE SYSTEM: Working Group as well as other Dan Cragg at (703) 695–0970 or DSN Information in the system includes an designated government agencies, for the 225–0970. individual’s name, Social Security purposes described above. These SUPPLEMENTARY INFORMATION: The Office Number or service number, last known agencies are the National Aeronautics of the Secretary of Defense notices for or current address, occupational and Space Administration; Department 40202 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices of Justice; Department of Energy; Individual should provide full name, CATEGORIES OF RECORDS IN THE SYSTEM: Department of Health and Human Social Security Number, or service Name, Social Security Number, sex, Services; Department of Veterans Affair; number, and if known, case or study date of birth, current and previous the White House Advisory Committee; control number. radiation exposure history, dates and Central Intelligence Agency; and Office places of employment, records of RECORD ACCESS PROCEDURES: of Management and Budget. individual’s training in radiation safety, The ‘Blanket Routine Uses’ published Individuals seeking access to records dates of exposures, citizenship, at the beginning of the Office of the about themselves contained in this information on pregnancy, areas visited Secretary of Defense’s compilation of system of records should address or worked, dates of arrival and systems notices apply to this system. written inquiries to the Director, departure, organization, assigned Department of Defense Radiation department, bioassay information, POLICIES AND PRACTICES FOR STORING, Experiments Command Center, 6801 grade/rank, work phone and location. RETRIEVING, ACCESSING, RETAINING, AND Telegraph Road, Alexandria, VA 22310– DISPOSING OF RECORDS IN THE SYSTEM: 3398, or Under Secretary of Defense, AUTHORITY FOR MAINTENANCE OF THE SYSTEM: STORAGE: Office of the Assistant to the Secretary 10 U.S.C. 2113, Uniformed Services Paper records in file folders, of Defense (Atomic Energy), 3010 University of the Health Sciences; microfilm/fiche, computer magnetic Defense Pentagon, Washington, DC Atomic Energy Act of 1954, 42 U.S.C. tape disks, and printouts in secure 20301–3010. 2013, Military Construction Act of 1977 Individuals should provide full name, computer facilities. (Pub.L. 94–367), and E.O. 9397. Social Security Number, or service PURPOSE(S): RETRIEVABILITY: number, and if known, case or study For use by university or institute Records are retrieved by case number, control number. officials, employees, and authorized name, study control number, Social CONTESTING RECORD PROCEDURES: contractors, to provide documentation Security Number, or service number. The OSD rules for accessing records, of any exposure to radiation which SAFEGUARDS: for contesting contents and appealing might be experienced by an individual. initial agency determinations are Access to or disclosure of information ROUTINE USES OF RECORDS MAINTAINED IN THE is limited to authorized personnel. published in OSD Administrative Instruction 81; 32 CFR part 311; or may SYSTEM, INCLUDING CATEGORIES OF USERS AND Paper records filed in folders, THE PURPOSES OF SUCH USES: be obtained from the system manager. microfilm/fiche and computer printouts In addition to those disclosures are stored in areas accessible only by RECORD SOURCE CATEGORIES: generally permitted under 5 U.S.C. authorized personnel. Buildings are Information will be collected directly 552a(b) of the Privacy Act, these records protected by security guards and from individuals, as well as extracted or information contained therein may intrusion alarm systems. Magnetic tapes from historical records to include specifically be disclosed outside the are stored in a controlled area within personnel files and lists, training files, DoD as a routine use pursuant to 5 limited access facilities. Access to medical records, legal case files, U.S.C. 552a(b)(3) as follows: computer programs is controlled radiation and other hazard exposure Records may be reviewed by the U.S. through software applications that records, occupational and industrial Nuclear Regulatory Commission (NRC) require validation prior to use. accident records, employee insurance as part of NRC’s on-going administration of the Materials License, and by the RETENTION AND DISPOSAL: claims, organizational and institutional administrative files, and related sources. Radiation Safety Committee or the Files will be retained permanently. The specific types of records used are Radiation Safety Officer and his/her They will be maintained in the custody determined by the nature of an staff to review an individual’s of the command center until all claims individual’s exposure to radiation. qualifications and/or expertise in have been settled and then transferred conducting experiments using to the National Archives and Records EXEMPTIONS CLAIMED FOR THE SYSTEM: radioiodine compounds. Administration. None. The ‘Blanket Routine Uses’ set forth at SYSTEM MANAGER(S) AND ADDRESS: WUSU20 the beginning of the USUHS compilation of systems of records Under Secretary of Defense of SYSTEM NAME: notices apply to this record system. Acquisition and Technology, Assistant Personnel Radiation Exposure to the Secretary of Defense (Atomic POLICIES AND PRACTICES FOR STORING, Energy), 3010 Defense Pentagon, Records. RETRIEVING, ACCESSING, RETAINING, AND Washington, DC 20301–3010. SYSTEM LOCATION: DISPOSING OF RECORDS IN THE SYSTEM: STORAGE: NOTIFICATION PROCEDURE: Uniformed Services University of the Health Sciences, 4301 Jones Bridge Individuals seeking to determine Card files, paper records in file Road, Bethesda, MD 20814–4799; whether information about themselves folders, microfiche/film and automated Armed Forces Radiobiology Research is contained in this system of records records on magnetic tapes, disks and Institute, Bethesda, MD 20889–5603; should address written inquiries to the computer products. and Director, Department of Defense Field Command, Defense Special RETRIEVABILITY: Radiation Experiments Command Weapons Agency, Kirtland Air Force Records are accessed by name, Social Center, 6801 Telegraph Road, Base, MX 87115–5000. Security Number, or department. Alexandria, VA 22310–3398, or Under Secretary of Defense for Acquisition and CATEGORIES OF INDIVIDUALS COVERED BY THE SAFEGUARDS: Technology, Office of the Assistant to SYSTEM: Computer equipment and records are the Secretary of Defense (Atomic Employees, contractors, or visitors in controlled access areas protected by Energy), 3010 Defense Pentagon, who enter a facility or area requiring the guards, intrusion alarms, and coded Washington, DC 20310–3010. wearing of a radiation dosimeter. locks. Manual records are secured in Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40203 locked cabinets or vaults. Automated Senior Executive Service Performance east of downtown Rome. The property records are protected by user Review Board is accessible from the west via State identification codes and passwords Route 46, and from the south via State which limit access to the system. AGENCY: Department of Defense, Office Route 49. of Inspector General. FOR FURTHER INFORMATION CONTACT: Ms. RETENTION AND DISPOSAL: ACTION: Notice. Anna Lemaire, Site Manager, Air Force For students or employees, records SUMMARY: The following individuals Base Conversion Agency, 153 Brooks are kept for 75 years. For visitors, comprise the standing roster of the Road, Griffiss AFB, NY 13441–4105, records are retired after two years to a Office of the Inspector General, telephone (315) 330–2275. record holding area for 75 year Department of Defense Senior Executive SUPPLEMENTARY INFORMATION: This retention. Service Performance Review Board. surplus property is available under the provisions of the Federal Property and David A. Brinkman, Director, Analysis and SYSTEM MANAGER(S) AND ADDRESS: Administrative Services Act of 1949 and Followup, OAIG—Auditing Dosimetry Manager, Department of C. Frank Broome, Director for Departmental the Base Closure Community Environmental Health and Occupational Inquiries Redevelopment and Assistance Act of Safety, Uniformed Services University Donald E. Davis, Deputy Assistant Inspector 1994. General for Audit Policy and Oversight of the Health Sciences, 4301 Jones Notice of Surplus Property Bridge Road, Bethesda, MD 20814–4799. William G. Dupree, Deputy Assistant Inspector General for Investigations Pursuant to paragraph (7)(B) of Thomas Gimble, Director, Readiness and NOTIFICATION PROCEDURE: Section 2905(b) of the Defense Base Operational Support, OAIG—Auditing Closure and Realignment Act of 1990, as Individuals seeking to determine Paul J. Granetto, Director, Contract amended by the Base Closure whether information about themselves Management, OAIG—Auditing Michael G. Huston, Director, Analysis, Community Redevelopment and is contained in this system should Homeless Assistance Act of 1994 (Pub. address written inquiries to the Planning and Technical Support, OAIG— Auditing L. 103–421), the following information Dosimetry Manager, Department of John F. Keenan, Director, Investigative regarding the redevelopment authority Environmental Health and Occupational Operations, OAIG—Investigations and surplus property at Griffiss AFB, Safety, Uniformed Services University Joel L. Leson, Deputy Assistant Inspector Rome, NY is published in the Federal of the Health Sciences, 4301 Jones General for Administration and Register. Bridge Road, Bethesda, MD 20814–4799. Information Management Roberet J. Lieberman, Assistant Inspector Local Redevelopment Authority Written requests should include full General for Auditing The local redevelopment authority for name, Social Security Number, address, Nicholas T. Lutsch, Assistant Inspector and signature of the requester. Genral for Administration and Information Griffiss AFB, Rome, NY for purposes of Management implementing the provisions of the RECORD ACCESS PROCEDURES: Donald Mancuso, Assistant Inspector General Defense Base Closure and Realignment Individuals seeking access to for Investigations Act of 1990, as amended, is the Griffiss information about themselves contained Russell A. Rau, Assistant Inspector General Local Development Corporation (GLDC). for Policy and Oversight in this system should address written The Executive Director of the GLDC is John C. Speedy III, Deputy Assistant Mr. Steven J. DiMeo. All inquiries inquiries to the Dosimetry Manager, Inspector General for Program Evaluation, Department of Environmental Health should be addressed to: Mr. Steven J. OAIG—Auditing DiMeo, Executive Director, 153 Brooks and Occupational Safety, Uniformed David K. Steensma, Deputy Assistant Services University of the Health Inspector General for Auditing Road, Rome, NY 13441–4105, (315) Sciences, 4301 Jones Bridge Road, Shelton R. Young, Director, Logistics 338–0393. Bethesda, MD 20814–4799. Support, OAIG—Auditing Surplus Property Descriptions Stephen A. Whitlock, Special Assistant for Written requests should include full Ethics and Internal Programs, OAIG— The following is a listing of the land name, Social Security Number, address, A&IM and facilities at Griffiss AFB, Rome, NY and signature of the requester. Dated: July 25, 1996. that are surplus to the Federal government. CONTESTING RECORD PROCEDURES: Patricia L. Toppings, Alternate OSD Federal Register Liaison Land The USUHS’ rules for accessing Officer, Department of Defense. Approximately 1,643 acres of land at records and for contesting contents and [FR Doc. 96–19510 Filed 7–31–96; 8:45 am] appealing initial determinations are Griffiss AFB. These areas will be BILLING CODE 5000±04±M contained in OSD Administrative available September 28, 2000. Instruction 81; 32 CFR part 315; or may Buildings be obtained from the system manager. Department of the Air Force Improvements include office, RECORD SOURCE CATEGORIES: Community Redevelopment Authority industrial and commercial buildings, Information from individual’s and/or and Available Surplus Buildings and and hangars and support buildings their dosimetry or bioassay records, Land at Griffiss Air Force Base, adjacent to the airfield. previous educational facilities or Located in Oneida County, NY Expressions of Interest employers, and other personal medical SUMMARY: This notice provides Pursuant to paragraph 7(C) of Section or radiation-related records. information regarding the surplus 2905(b) of the Defense Base Closure and EXEMPTIONS CLAIMED FOR THE SYSTEM: property at Griffiss Air Force Base Realignment Act of 1990, as amended (AFB), Rome, NY and information about by the Base Closure Community None. the local redevelopment authority that Redevelopment and Homeless [FR Doc. 96–19518 Filed 7–31–96; 8:45 am] has been established to plan the reuse Assistance Act of 1994, State and local BILLING CODE 5000±04±F of Griffiss AFB. The property is located governments, representatives of the 40204 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices homeless, and other interested parties ADDRESSES: The public hearings will be Cassidy, W.J. Mr. located in the vicinity of Griffiss AFB, jointly hosted by DoN and NMFS. The Chamberlin, E. Radm Rome, NY shall submit to the GLDC, a public is invited to comment on the Christie, D.P. Hon. notice of interest, of such governments, DEIS and Proposed Rule. The hearings Clark, C.C. Ms. representatives, and parties in the above have been scheduled as follows: (1) Coffey, T. Dr. described surplus property, or any August 19, 1996, 10 AM to 4 PM, at Collie, J.D. Mr. portion thereof. A notice of interest Silver Spring Metro Center, Building 4, Cook, J.A. Radm shall describe the need of the 1st Floor Conference Room, 1305 East- Commons, G.L. Ms. government, representative, or party West Highway, Silver Spring, MD; (2) Conran, T.C. Mr. concerned, for the desired surplus August 20, 1996, 7 PM to 10 PM, Craine, J.W. Radm property. Pursuant to paragraph 7(C) of Lafayette Winona Middle School, 1701 Cuddy, J.V. Mr. Section 2905(b), the GLDC shall assist Alsace Avenue, Norfolk, VA; and (3) Czelusniak, D.P. Mr. interested parties in evaluating the August 21, 1996, 7 PM to 10 PM, Danzig, R.J. Hon. surplus property for the intended use Mayport Middle School, 2600 Mayport Dawson, C.J. Radm and publish in a newspaper of general Road, Atlantic Beach, FL. Decorpo J. Dr. Dempsey, J. Ms. circulation with New York the date by FOR FURTHER INFORMATION CONTACT: Mr. Desalme, J.W. Mr. which expressions of interest must be Will Sloger, Code 064WS, Southern Dillon, B.L. Mr. submitted. Division, Naval Facilities Engineering Dilworth, G. Mr. Pasty J. Conner, Command, P.O. Box 190010, North Distler, D. Mr. Air Force Federal Register Liaison Officer. Charleston, South Carolina 29419–9010, Dixson, H.L. Mr. telephone (803) 820–5797, FAX (803) [FR Doc. 96–19548 Filed 7–31–96; 8:45 am] Doak, R. Mr. 820–5993. BILLING CODE 3910±01±W Doherty, L.M. Dr. Dated: 26 July 1996. Dominguez, M.L. Mr. M.A. Waters, Donalson, E.L. Mr. Department of the Navy Federal Register Liaison Officer. Douglass, J. Hon. Notice To Reopen the Public Comment [FR Doc. 96–19549 Filed 7–31–96; 8:45 am] Douglass, T.E. Mr. Period and To Announce Public BILLING CODE 3810±FF±M Draim, R.P. Mr. Hearings for the Draft Environmental Duddleston, R.J. Mr. Impact Statement (DEIS) for Shock Dudley, W.S. Dr. Testing the SEAWOLF Submarine Notice of Performance Review Board Durham. D.L. Dr. Membership Eaton, W.D. Mr. SUMMARY: Elliott, R.D. Mr. Per Section 102(2)(c) of the SUMMARY: Per 5 U.S.C. 4314 (c)(4), the National Environmental Policy Act Evans, G.L. Ms. Department of the Navy (DON) Felton, R.M. Mr. (NEPA) of 1969 as implemented by the announces the appointment of members Council on Environmental Quality Fiocchi, T.C. Mr. to the DON’s numerous Senior Ford, F.B. Mr. regulations (40 CFR Parts 1500–1508), Executive Service (SES) Performance the Department of the Navy (DoN) Frick, R.E. Radm Review Boards (PRB’s). The purposes of Gaffney, P. Radm. prepared and filed with the U.S. the PRB’s is to provide fair and Environmental Protection Agency a Garvert, W.C. Mr. impartial review of the annual SES Geiger, C.G. Mr. DEIS evaluating the environmental performance appraisal prepared by the effects for the shock testing for the Goldschmidt, J.X. Mr. senior executive’s immediate and Gottfried, J.M. Ms. SEAWOLF Submarine, at a site to be second level supervisor, to make Grossman, J.C. Mr. located offshore of either Norfolk, recommendations to appointing officials Grundman, B. Mr. Virginia, or Mayport, Florida. DoN is the regarding acceptance or modification of Guertin, J.R. Dr. lead agency and the National Marine the performance rating, and to make Guida, R.A. Mr. Fisheries Service (NMFS) is a recommendations for monetary Haaland, S. Mr. cooperating agency in the development performance awards. Composition of the Hammes, M.C. Mr. of the DEIS. NMFS is concurrently specific PRB’s will be determined on an Hammond, R.E. Mr. evaluating DoN’s request for a Letter of ad hoc basis from among individuals Harman, D.P. Mr. Authorization for the Incidental Take of listed below: Hancock, W.J. Radm Marine Mammals in their regulatory Hannah, B.W. Dr. role under the Marine Mammal Altwegg, D.M. Mr. Anderson, J. Bgen Hartwig, E. Dr. Protection Act. Andriani, C.R. Mr. Hathaway, D.L. Mr. Notice of Availability for the DEIS Angrist, E. Mr. Hauenstein, W.H. Mr. appeared in the Federal Register on Atkins, J.A. Mr. Haut, D.G. Mr. June 14, 1996. That Notice stated that Bailey, D.C. Mr. Haver, R.L. Mr. comments on the DEIS were due by July Bisson, A. Dr. Haynes, R.S. Mr. 29, 1996. DoN is reopening the public Blatstein, I.M. Dr. Heath, K.S. Ms. comment period that will now extend Bradley, L.A. Ms. Henry, M.G. Mr. through September 17, 1996. All written Branch, E.B. Mr. Hicks, S.N. Mr. comments shall be postmarked no later Brant, D.L. Mr. Hildebrandt, A. Mr. than that date. This comment period Brooke, R.K. Mr. Holaday, D.A. Mr. coincides with the NMFS comment Buckley, B. Capt Honigman, S.S. Hon. period on its Proposed Rule for Cali, R.T. Mr. Hood, J.T. Radm Incidental Take of Marine Mammals for Cataldo, P.R. Mr. Howell, D.S. Ms. the DoN’s proposed shock testing of Camp, J.R. Mr. Hubbell, P.C. Mr. SEAWOLF. Carter, R.L. Mr. Huchting, G.A. Radm Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40205

Johnston, K.J. Dr. Savitsky, W.D. Mr. ADDRESSES: Written comments should Junker, B. Dr. Schaefer, W.J. Mr. be addressed to the Office of Kandaras, C. Ms. Schneider, P.A. Mr. Information and Regulatory Affairs, Kaskin, J.D. Mr. Schultz, R.E. Mr. Attention: Wendy Taylor, Desk Officer, Kelly, L.J. Mr. Schuster Jr. J. Mr. Department of Education, Office of Kotzen, P.S. Ms. Scott, R. Capt Management and Budget, 725 17th Krasik, S.A. Ms. Chaffer, R.L. Mr. Street, NW., Room 10235, New Kreitzer, L.P. Mr. Shipway, J.F. Radm Executive Office Building, Washington, Shoup, F.E. Dr. Kuesters, J.J. Mr. DC 20503. Requests for copies of the Langston, M.J. Mr. Silva, E. Dr. Sirmalis, J.E. Dr. proposed information collection Larsen Jr., D.P. Mr. Somoroff, A.R. Dr. requests should be addressed to Patrick Laux, T.E. Mr. Steidle, C.E. Radm J. Sherrill, Department of Education, 600 Leach, R.A. Mr. Steven, Radm Independence Avenue, SW., Room Lefande, R. Dr. Stine, J.E. Mr. 5624, Regional Office Building 3, Leggieri, S.R. Ms. Storey, R.C. Mr. Washington, DC 20202–4651. Lewis, R.D. Ms. Strong, B.D. Radm FOR FURTHER INFORMATION CONTACT: Lopata, F.A. Mr. Stussie, W.A. Mr. Patrick J. Sherrill (202) 708–8196. Lynch, J.G. Mr. Sullivan, M.P. Radm Individuals who use a Machin, R.C. Mr. Thornett, R. Mr. telecommunications device for the deaf Martin, R.J. Mr. Tobin, P.E. Radm (TDD) may call the Federal Information Masciarelli, J.R. Mr. Thomas, R.O. Mr. Relay Service (FIRS) at 1–800–877–8339 Thompson, R.H. Mr. Mattheis, W.G. Mr. between 8 a.m. and 8 p.m., Eastern time, Tinston, W.J. Radm McBurnett, G.M. Ms. Monday through Friday. McEleny, J.F. Mr. Tisone, A.A. Mr. SUPPLEMENTARY INFORMATION: McManus, C.J. Mr. Tompkins, C.L. Mr. Section McNair, J.W. Mr. Turnquist, C.J. Mr. 3506 of the Paperwork Reduction Act of McNair, S.M. Ms. Uhler, D.G. Dr. 1995 (44 U. S. C. Chapter 35) requires Melia, F.M. Mr. Verkoski, J.E. Mr. that the Office of Management and Merritt, M.M. Mr. Wagner, G.F. A. Radm Budget (OMB) provide interested Welch, B.S. Ms. Messerole, M. Mr. Federal agencies and the public an early Wessel, P.R. Mr. Miller, E.E. Mr. opportunity to comment on information Whalen, J. Mr. collection requests. OMB may amend or Moeller, R.L. Radm Whiteway, R.N. Dr. Molzahn, W. Mr. waive the requirement for public Whitman, E.C. Dr. consultation to the extent that public Montgomery Jr. Mr. Whittemore, A.L. Ms. Moy, G.W. Dr. participation in the approval process Williams, G.P. Mr. would defeat the purpose of the Munsell, E.L. Ms. Williams, R.D. Radm Murphy, P.M. Mr. Wilson, T. Radm information collection, violate State or Muth, C.M. Ms. Young, S.D. Ms. Federal law, or substantially interfere Mutter, C. Majgen Yount, G.R. Radm with any agency’s ability to perform its Nanos, G.P. Radm Zanfagna, P.E. Mr. statutory obligations. The Director of the Nedrow, R.D. Mr. Zdankiewicz, E. Mr. Information Resources Group publishes Nemfakos, C.P. Mr. Zimet, E. Dr. this notice containing proposed Nickell, J.R. Mr. Zimmerman Jr. H. Mr. information collection requests prior to Nussbaum, D.A. Mr. Zornetzer, S. Dr. submission of these requests to OMB. Olsen, M.A. Ms. Dated: June 26, 1996. Each proposed information collection, O’eill, T.J. Mr. M.A. Waters, grouped by office, contains the following: (1) Type of review requested, Oster, J.W. Majgen LCDR, JAGC, USN, Federal Register Liaison Panek, R.L. Mr. Officer. e.g., new, revision, extension, existing or reinstatement; (2) Title; (3) Summary Paulk, R.D. Ms. [FR Doc. 96–19551 Filed 7–31–96; 8:45 am] Pennisi, R.A. Mr. of the collection; (4) Description of the BILLING CODE 3810±FF±P Peters, R.K. Ms. need for, and proposed use of, the Phelps, F.A. Mr. information; (5) Respondents and Phillips, G.P. Radm frequency of collection; and (6) DEPARTMENT OF EDUCATION Pirie Jr., R.B. Hon. Reporting and/or Recordkeeping burden. OMB invites public comment at Porter, D.E. Mr. Notice of Proposed Information the address specified above. Copies of Powers, B.F. Mr. Collection Requests Rath, B. Dr. the requests are available from Patrick J. Rathjen, R.A. Mr. AGENCY: Department of Education. Sherrill at the address specified above. Renfro, J.G. Mr. ACTION: Submission for OMB review; Dated: July 26, 1996. Richwine, D.A. Mgen comment request. Gloria Parker, Riegel, K.W. Dr. Director, Information Resources Group. Robinson, B. Dr. SUMMARY: The Director, Information Robinson, P.M. Radm Resources Group, invites comments on Office of Postsecondary Education Roderick, B.R. Mr. the proposed information collection Type of Review: Reinstatement. Rostker, B. Hon. requests as required by the Paperwork Title: Financial Report for the Saalfeld, F. Dr. Reduction Act of 1995. Endowment Challenge Grant Program. Sanders, W.R. Mr. DATES: Interested persons are invited to Frequency: Annually. Sansone, W. Mr. submit comments on or before Affected Public: Not-for-profit Saul, E.L. Mr. September 3, 1996. institutions. 40206 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Annual Reporting and Recordkeeping 753–8970. Requests must be received 5 may be filed with the Committee either Hour Burden: days prior to the meeting and reasonable before or after the meeting. Responses: 300. provision will be made to include the Individuals who wish to make oral Burden Hours: 900. presentation in the agenda. The statements pertaining to agenda items Abstract: The financial report requires Designated Federal Official is should contact Audrey Berry’s office at investment data from institutions for the empowered to conduct the meeting in a the address or telephone number listed purpose of assessing their progress in fashion that will facilitate the orderly above. Requests must be received 5 days increasing their endowment fund conduct of business. prior to the meeting and reasonable resources. The data is also used to Minutes: The minutes of this meeting provision will be made to include the monitor compliance with regulatory will be available for public review and presentation in the agenda. The provisions. copying at the Freedom of Information Designated Federal Official is empowered to conduct the meeting in a [FR Doc. 96–19557 Filed 7–31–96; 8:45 am] Public Reading Room, 1E–190, Forrestal Building, 1000 Independence Avenue, fashion that will facilitate the orderly BILLING CODE 4000±01±P SW, Washington, DC 20585 between conduct of business. Each individual 9:00 a.m. and 4 p.m., Monday-Friday, wishing to make public comment will except Federal holidays. Minutes will be provided a maximum of 5 minutes to DEPARTMENT OF ENERGY also be available by writing to Herman present their comments. Le-Doux, Department of Energy, Los Minutes: The minutes of this meeting Environmental Management Site- will be available for public review and Specific Advisory Board, Department Alamos Area Office, 528 35th Street, Los Alamos, NM 87185–5400. copying at the Freedom of Information of Energy/Los Alamos National Public Reading Room, 1E–190, Forrestal Laboratory; Open Meeting Issued at Washington, DC on July 24, 1996. Building, 1000 Independence Avenue, Rachel M. Samuel, AGENCY: Department of Energy. SW, Washington, DC 20585 between Acting Deputy Advisory Committee 9:00 a.m. and 4 p.m., Monday–Friday, ACTION: Notice of open meeting. Management Officer. except Federal holidays. Minutes will [FR Doc. 96–19573 Filed 7–31–96; 8:45 am] SUMMARY: Pursuant to the provisions of also be available by writing to Audrey the Federal Advisory Committee Act BILLING CODE 6450±01±P Berry, Department of Energy Grand (Pub. L. 92–463, 86 Stat. 770) notice is Junction Projects Office, P.O. Box 2567, hereby given of the following Advisory Grand Junction, CO 81502, or by calling Environmental Management Site- Committee meeting: Environmental her at (303)–248–7727. Specific Advisory Board, Monticello Management Site-Specific Advisory Issued at Washington, DC on July 25, 1996. Site; Open Meeting Board (EM SSAB), Los Alamos National Rachel Murphy Samuel, Laboratory. AGENCY: Department of Energy. Acting Deputy Advisory Committee DATES: Tuesday, August 13, 1996: 6:30 ACTION: Notice of Open Meeting. Management Officer. pm—9:30 pm. 7:00 pm to 7:30 pm [FR Doc. 96–19574 Filed 7–31–96; 8:45 am] (public comment session). SUMMARY: Pursuant to the provisions of BILLING CODE 6450±01±P ADDRESSES: Coronado Hall, Taoseno the Federal Advisory Committee Act Room,120 Civic Plaza Drive, Taos, New (Pub. L. 92–463, 86 Stat. 770) notice is Mexico 87557, 505–753–8970. hereby given of the following Advisory Technical Summary Reports for Long- Board Committee Meeting: Term Storage of Weapons-Usable FOR FURTHER INFORMATION CONTACT: Ms. Environmental Management Site- Fissile Materials and for Surplus Ann DuBois, Los Alamos National Specific Advisory Board, Monticello Weapons-Usable Plutonium Laboratory Citizens’ Advisory Board Site. Disposition Support, Northern New Mexico DATE AND TIME: Community College, 1002 Onate Street, Tuesday, August 20, AGENCY: Department of Energy. 1996 7:00 p.m.–9:00 p.m. Espanola, NM 87352, (800)753–8970, or ACTION: Notice of availability. (505)753–8970, or (505)262–1800. ADDRESS: San Juan County Courthouse, 2nd Floor Conference Room, 117 South SUMMARY: The Department of Energy SUPPLEMENTARY INFORMATION: Purpose of announces the availability of the the Board: The purpose of the Advisory Main, Monticello, Utah 84535. Technical Summary Report for the Board is to make recommendations to FOR FURTHER INFORMATION CONTACT: Long-Term Storage of Weapons-Usable DOE and its regulators in the areas of Audrey Berry, Public Affairs Specialist, Fissile Materials and the Technical environmental restoration, waste Department of Energy Grand Junction Summary Report for Surplus Weapons- management, and related activities. Projects Office, P.O. Box 2567, Grand Junction, CO, 81502 (303) 248–7727. Usable Plutonium Disposition. The first Tentative Agenda report summarizes DOE’s assessment of SUPPLEMENTARY INFORMATION: the technical, cost, and schedule data Tuesday, August 13, 1996 Purpose of the Board: The purpose of for the reasonable alternatives for the 6:30 PM Call to Order and Welcome the Board is to advise DOE and its long-term storage of weapons-usable 7:00 PM Public Comment regulators in the areas of environmental fissile materials. The second report 7:30 PM Old Business restoration, waste management, and summarizes DOE’s assessment of the 8:30 PM Sub-Committee Reports related activities. technical, cost, and schedule data for 9:30 PM Adjourn Tentative Agenda: Update on disposition of the nation’s plutonium Public Participation: The meeting is repository liner installation progress, surplus to national security open to the public. Written statements Monticello surface and ground water requirements. may be filed with the Committee either discussion, reports from subcommittees ADDRESSES: Requests for copies of the before or after the meeting. Individuals on local training and hiring, health and reports or comments on the reports who wish to make oral statements safety, and future land use. should be directed to: the Office of pertaining to agenda items should Public Participation: The meeting is Fissile Materials Disposition, U.S. contact Ms. Brenda Karlstrum, at (800) open to the public. Written statements Department of Energy, Post Office Box Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40207

23786, Washington DC 20026–3786. Buena Vista, SE, Albuquerque, NM Energy Information Administration Copies of the reports can also be 87106, Attn: Russ Gladstone obtained by calling (answering machine) (contractor), 505–224–3286, Elva Agency Information Collection or faxing 1–800–820–5156. Comments Barfield (DOE), 505–845–4370 Activities: Proposed Collection; Comment Request are requested by August 31, 1996. Nevada Operations Office, Department FOR FURTHER INFORMATION CONTACT: of Energy, Public Reading Room, 2753 SUMMARY: The Energy Information Additional information about the South Highland Drive, P.O. Box Administration (EIA) is soliciting storage and disposition of surplus fissile 98518, Las Vegas, NV 89193–8518, comments concerning the proposed materials can be obtained by writing to Attn: Janet Fogg, 702–295–1128 extension to Form EIA–28, ‘‘Financial U.S. Department of Energy, ATTN: MD– Reporting System’’ (FRS) which is used Oak Ridge Operations Office, U.S. 3, 1000 Independence Ave., SW, to collect financial and other energy- Washington, DC 20585, or telephoning Department of Energy, Public Reading related business information. Room, 200 Administration Road, P.O. (202) 586–2700. Information is also DATES: Written comments must be Box 2001, Oak Ridge, TN 37831–8501, available on-line at the Office of Fissile submitted on or before September 30, Materials Disposition Internet site: Attn: Amy Rothrock, 615–576–1216 1996. If you anticipate that you will be ‘‘http://web.fie.com/htdoc/fed/doe/fsl/ Richaldn Operations Office, Washington submitting comments, but find it pub/menu/any’’ State University, Tri-Cities Branch difficult to do so within the period of SUPPLEMENTARY INFORMATION: Campus, 300 Sprout Road, Room 130 time allowed by this notice, you should West, Richland, WA 99352, Attn: advise the contact listed below of your Background Terri Traub, 509–376–8583 intention to do so as soon as possible. The reasonable alternatives for the Rocky Flats Office, Public Reading ADDRESSES: Send comments to Gregory storage of weapons-usable fissile Room, Front Range Community P. Filas, Office of Energy Markets and material and the disposition of College Library, 3645 West 112th End Use, EI–622, Forrestal Building, plutonium were determined by the DOE Avenue, Westminister, CO 80030, U.S. Department of Energy, Washington, and published in the ‘‘Summary Report Attn: Dennis Connor, 303–469–4435 D.C. 20585, telephone number (202) of the Screening Process (DOE/MD– 586–1347 or FAX (202)586–9753 or E- 0002),’’ dated March 29, 1995. The Savannah River Operations Office, mail to: [email protected]. reasonable alternatives for long-term Gregg-Granite Library, University of FOR FURTHER INFORMATION: Requests for storage included upgrading existing South Carolina-Aiken, 171 University additional information or copies of the storage facilities or constructing new Parkway, Aiken, SC 29801, Attn: Paul form and instructions should be storage facilities. The reasonable Lewis, 803–641–3320, DOE Contact: directed to Gregory P. Filas at the alternatives for PU Disposition included Pauline Conner, 803–725–1408 address listed above. reactor, immobilization and deep Los Alamos National Laboratory, U.S. borehole emplacement technologies. SUPPLEMENTARY INFORMATION: Department of Energy, c/o Los Alamos The environmental impacts of the Community Reading Room, 1450 I. Background reasonable alternatives for both long- Central, Suite 101, Los Alamos, NM II. Current Actions term storage and plutonium disposition III. Request for Comments were analyzed and published in the 87544, Attn: LANL Outreach I. Background ‘‘Storage and Disposition of Weapons- Manager, 505–665–2127 Usable Fissile Materials Draft Chicago Operations Office, Office of In order to fulfill its responsibilities Programmatic Environmental Impact Planning, Communications & EEO, under the Federal Energy Statement,’’ dated February 1996. U.S. Department of Energy, 9800 Administration Act of 1974 (Pub. L. No. 93–275) and the Department of Energy Scope of Reports South Cass Avenue, Argonne, IL 60439, Attn: L. Pitchford, 708–252– Organization Act (Pub. L. No. 95–91), The scope of the long-term storage 2013 the Energy Information Administration report is limited to presenting the is obliged to carry out a central, technical, cost and schedule data and Amarillo Area Office, U.S. Department comprehensive, and unified energy data assessment to support future decisions of Energy, Amarillo College, Lynn and information program. As part of this for storage of weapons-usable fissile Library/Learning Center, P.O. Box program, EIA collects, evaluates, materials, including highly enriched 447, Amarillo, TX 79178, Attn: Karen assembles, analyzes, and disseminates uranium and plutonium. The scope of McIntosh, 806–371–5400 data and information related to energy the plutonium disposition report is Idaho Operations Office, Idaho Public resource reserves, production, demand, limited to presenting the technical, cost, Reading Room, 1776 Science Center and technology, and related economic and schedule data for plutonium Drive, Idaho Falls, ID 83402, 208– and statistical information relevant to disposition and assessment to support 526–0271 the adequacy of energy resources to future decision making. meet demands in the near and longer U.S. DOE Reading Room, Carson County term future for the Nation’s economic DOE Reading Rooms Library, P.O. Box 339, Panhandle, TX and social needs. Copies of the reports as well as other 79068, Attn: Tom Walton, 806–537– The EIA, through its Form EIA–28, technical information are available at 3742, Kerry Campbell (contractor), collects financial information and other the following locations: 806–477–4381 measures of energy-related business Headquarters FOIA Reading Room, U.S. Issued in Washington, DC, July 26, 1996. efforts and results from major energy Department of Energy, Room 1E–190, Gregory P. Rudy, companies. Since the FRS data are Forrestal Building, 1000 collected on a uniform, segmented basis, Independence Avenue, S.W., Acting Director, Office of Fissile Materials the comparability of information across Disposition. Washington, DC 20585 energy lines of business is unique to this Albuquerque Operations Office, [FR Doc. 96–19571 Filed 7–31–96; 8:45 am] reporting system. For example, Technical Vocational Institute, 525 BILLING CODE 6450±01±P petroleum activities can be compared to 40208 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices activities in other energy lines of B. What enhancements can EIA make cubic meters, metric tons, and business or nonenergy areas, and to the quality, utility, and clarity of the kilograms? If yes, please specify what domestic activities can be compared to information to be collected? information (e.g., coal production, foreign activities. The data are used to natural gas consumption, and crude oil As a Potential Respondent evaluate the competitive environment imports), the metric unit(s) of within which energy products are A. Are the instructions and measurement preferred, and in which supplied and developed and to analyze definitions clear and sufficient? If not, EIA publication(s) you would like to see the nature of institutional arrangements which instructions require clarification? such information. as they relate to energy resource B. Can data be submitted in Comments submitted in response to development, supply, and distribution. accordance with the due date specified this notice will be summarized and/or The FRS report, entitled Performance in the instructions? included in the request for OMB Profiles of Major Energy Producers C. Public reporting burden for this approval of the form. They also will (Profiles), has been published for each collection is estimated to average 633 become a matter of public record. of the reporting years 1977 through hours per response. Burden includes the total time, effort, or financial resources Statutory Authority: Section 3506(c)(2)(A) 1994. The Profiles report for 1995 will of the Paperwork Reduction Act of 1995 be published in December 1996. expended to generate, maintain, retain, (Pub. L. No. 104–13). or disclose or provide the information The Energy Information Issued in Washington, DC, July 26, 1996. including: (1) Reviewing instructions; Administration, as part of its continuing John Gross, effort to reduce paperwork and (2) developing, acquiring, installing, and Acting Director, Office of Statistical respondent burden (required by the utilizing technology and systems for the purposes of collecting, validating, Standards, Energy Information Paperwork Reduction Act of 1995 (Pub. Administration. verifying, processing, maintaining, L. 104–13)), conducts a presurvey [FR Doc. 96–19572 Filed 7–31–96; 8:45 am] consultation program to provide the disclosing and providing information; BILLING CODE 6450±01±P general public and other Federal (3) adjusting the existing ways to agencies with an opportunity to comply with any previously applicable comment on proposed and/or instructions and requirements; (4) Federal Energy Regulatory continuing reporting forms. This training personnel to respond to a Commission program helps to ensure that requested collection of information; (5) searching data can be provided in the desired data sources; (6) completing and Proposed Information Collection and format, reporting burden is minimized, reviewing the collection of information; Request for Comments (FERC±716) reporting forms are clearly understood, and (7) transmitting, or otherwise and the impact of collection disclosing the information. July 26, 1996. requirements on respondents can be Please comment on (1) the accuracy of AGENCY: Federal Energy Regulatory properly assessed. our estimate and (2) how the agency Commission. could minimize the burden of the ACTION: Notice of proposed information II. Current Actions collection of information, including the collection and request for comments. This is an extension with changes to use of automated collection techniques an existing collection. The proposed or other forms of information SUMMARY: In compliance with the extension is to December 31, 1999. The technology. requirements of Section 3506(c)(2)(a) of revisions to the form will update the D. What is the estimated (1) total the Paperwork Reduction Act of 1995 categories of refinery output of motor dollar amount annualized for capital (Pub. L. 104–13), the Federal Energy gasoline collected on Schedule 5242 of and start-up costs and (2) recurring Regulatory Commission (Commission) is the form. The form currently collects annual dollar amount of operation and soliciting public comment on the refinery output of leaded and unleaded maintenance and purchase of services specific aspects of the information motor gasoline. The categories will be costs associated with this data collection described below. changed from leaded and unleaded to collection? The estimates should take DATES: Consideration will be given to reformulated, oxygenated, and other. into account the costs associated with comments of on or before September 30, generating, maintaining, and disclosing 1996. III. Request for Comments or providing the information. ADDRESSES: Copies of the proposed Prospective respondents and other E. Do you know of any other Federal, collection of information can be interested parties should comment on State, or local agency that collects obtained from and written comments the proposed extension and changes. similar data? If you do, specify the may be submitted to the Federal Energy The following guidelines are provided agency, the data element(s), and the Regulatory Commission, Attn: Michael to assist in the preparation of responses. methods of collection. P. Miller, Information Services Division, General Issues As a Potential User ED–12.4, 888 First Street N.E., Washington, D.C. 20426. EIA is interested in receiving A. Can you use data at the levels of comments from persons regarding: detail indicated on the form? FOR FURTHER INFORMATION CONTACT: A. Whether the proposed collection of B. For what purpose would you use Michael P. Miller may be reached by information is necessary for the proper the data? Be specific. telephone at (202) 208–1415, by fax at performance of the functions of the C. Are there alternate sources of data (202) 273–0873, and by e-mail at agency, including whether the and do you use them? If so, what are [email protected]. information will have practical utility. their deficiencies and/or strengths? SUPPLEMENTARY INFORMATION: The Practical utility is the actual usefulness D. For the most part, information is information collected under the of information to or for an agency, published by EIA in U.S. customary requirements of FERC–716 ‘‘Good Faith taking into account its accuracy, units, e.g., cubic feet of natural gas, Request for Transmission Services and adequacy, reliability, timeliness, and the short tons of coal, and barrels of oil. Response by Transmitting Utility Under agency’s ability to process the Would you prefer to see EIA publish Sections 211(a) and 213 of the Federal information it collects. more information in metric units, e.g., Power Act, as amended, and added by Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40209 the Energy Policy Act’’ (OMB No. 1902– transmission services to the transmitting constraints which would affect such 0170) (PL93–3) is used by the utility that would be the subject of such service. The information is not filed Commission to implement the Statutory order at least 60 days prior to filing the with the Commission, however, the provisions of the Sections 211 and 213 application with the Commission. request and response may be analyzed of the Federal Power Act (EPA), 16 Section 213(a) requires a response by as part of a Section 211 proceeding. The U.S.C. 824j, 8251 as amended by the the transmitting utility. Unless the Commision implements these Energy Policy Act of 1992 (Pub. L. 102– transmitting utility accommodates the requirements in the Code of Federal 486) 106 Stat. 2776. Under Section 211, request on mutually agreeable terms, it Regulations (CFR) under 18 CFR 2.20. the Commission may order transmission shall, within 60 days of receipt of the Action: The Commission is requesting service if it finds that such action would request, or other mutually agreed upon a three-year extension of the current be in the public interest and would not period, provide such applicant with a expiration date, with no changes to the unreasonable impair the continued detailed written explanation of the basis existing collection of data. reliability of systems affected by the for the transmitting utility’s proposed Burden Statement: Public reporting order. No order may be issued unless rates, charges, terms and conditions for burder for this collection is estimated the applicant has made a request for such services, as well as any physical as:

Number of responses per Average burden hours per Number of respondents annually respondent response Total annual burden hours

(1) (2) (3) (1)×(2)×(3)

20 1 200 4,000

Estimated cost burden to respondents: including the validity of the Commission’s regulations (18 CFR 4,000 hours/2,087 hours per year × methodology and assumptions used: (3) 385.214). $102,000 per year = $195,495. ways to enhance the quality, utility and For additional information, contact The reporting burden includes the clarity of the information to be Thomas J. Burgess at 208–2058 or David total time, effort, or financial resources collected; and (4) ways to minimize the R. Cain at 208–0917. expended to generate, maintain, retain, burden of the collection of information Lois D. Cashell, disclose, or provide the information on those who are to respond, including Secretary. including: (1) Reviewing instructions; the use of appropriate automated, [FR Doc. 96–19537 Filed 7–31–96; 8:45 am] (2) developing, acquiring, installing, and electronic, mechanical, or other BILLING CODE 6717±01±M utilizing technology and systems for the technological collection techniques or purposes of collecting, validating, other forms of information technology verifying, processing, maintaining, e.g. permitting electronic submission of [Docket No. GT96±79±000] disclosing and providing information; responses. Great Lakes Gas Transmission Limited (3) adjusting the existing ways to Lois D. Cashell, Partnership; Notice of Refund Report comply with any previously applicable Secretary. instructions and requirements; (4) [FR Doc. 96–19542 Filed 7–31–96; 8:45 am] July 26, 1996. training personnel to respond to a BILLING CODE 6717±01±M Take notice that on July 24, 1996, collection of information; (5) searching Great Lakes Gas Transmission Limited data sources; (6) completing and Partnership (Great Lakes) tendered for reviewing the collection of information; filing a Report of Gas Research Institute and (7) transmitting, or otherwise [Docket No. RP95±408±000 and RP95±408± 001] Tier 1 Refunds for 1995 calendar year disclosing the information. overpayments. Great Lakes states that The estimate of cost for respondents Columbia Gas Transmission Corp.; the refund report is being filed in is based upon salaries for professional Notice of Informal Settlement accordance with the Commission’s and clerical support, as well as direct Conference Order issued February 22, 1995 in and indirect overhead costs. Direct costs Docket No. RP95–124–000 (70 FERC include all costs directly attributable to July 26, 1996. ¶ 61,205). providing this information, such as Take notice that an informal Great Lakes states that a refund administrative costs and the cost for settlement conference in this proceeding amount of $219,707 was received from information technology. Indirect or will be convened on Thursday, August GRI on June 28, 1996. Great Lakes overhead costs are costs incurred by an 1, 1996 and Friday August 2, 1996 at further states this amount was organization in support of its mission. 10:00 a.m. The settlement conference subsequently refunded to eligible firm These costs apply to activities which will be held at the offices of the Federal transportation customers on a pro-rata benefit the whole organization rather Energy Regulatory Commission, 888 basis. Great Lakes states that the report than any one particular function or First Street, N.E., Washington, DC, filed reflects the GRI refund amounts activity. 20426, for the purpose of exploring the allocated to each eligible firm Comments are invited on: (1) whether possible settlement of the above- transportation customers for the 1995 the proposed collection of information referenced docket. calendar year. is necessary for the proper performance Any party, as defined by 18 CFR Great Lakes states that a copy of the of the functions of the Commission, 385.102(c), or any participant, as filing is being served upon each of Great including whether the information will defined in 18 CFR 385.102(b), is invited Lakes’ firm customers and the Public have practical utility; (2) the accuracy of to attend. Persons wishing to become a Service Commissions of the states of the agency’s estimate fo the burden of party must move to intervene and Minnesota, Wisconsin and Michigan, the proposed collection of information, receive intervenor status pursuant to the and the Gas Research Institute. 40210 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Any person desiring to be heard or to inspection in the Public Reference 385.211 and 385.214 of the protest said filing should file a motion Room. Commission’s Rules of Practice and to intervene or a protest with the Lois D. Cashell, Procedures. All motions must be filed Federal Energy Regulatory Commission, Secretary. with the Secretary of the Commission 888 First Street, NE, Washington, DC [FR Doc. 96–19538 Filed 7–31–96; 8:45 am] on or before August 12, 1996. The petition for rate approval is on file with 20426, in accordance with Rules 211 BILLING CODE 6717±01±M and 214 of the Commission’s Rules of the Commission and is available for Practice and Procedure (18 CFR 385.211 public inspection. [Docket No. PR96±13±000] and 385.214). All such motions or Lois D. Cashell, protests must be filed on or before Northern Illinois Gas Company; Notice Secretary. August 2, 1996. Protests will be of Petition for Rate Approval [FR Doc. 96–19536 Filed 7–31–96; 8:45 am] considered by the Commission in BILLING CODE 6717±01±M determining the appropriate action to be July 26, 1996. Take notice that on July 15, 1996, taken, but will not serve to make [Docket No. CP96±651±000] protestants parties to the proceeding. Northern Illinois Gas Company, (NI– Any person wishing to become a party Gas), filed pursuant to section 284.224 Southern Natural Gas Company; must file a motion to intervene. Copies and 284.123(b)(2) of the Commission’s Notice of Request Under Blanket of this filing are on file with the regulations, a petition for rate approval Authorization Commission and are available for public requesting that the Commission approve July 26, 1996. inspection in the Public Reference the rates to be charged by NI–Gas in providing services under the blanket Take notice that on July 22, 1996, Room. certificate issued to NI–Gas in Docket Southern Natural Gas Company Lois D. Cashell, No. CP92–481–000. (Applicant), P.O. Box 2563, Secretary. NI–Gas proposes (a) to charge firm Birmingham, Alabama 35202–2563, [FR Doc. 96–19534 Filed 7–31–96; 8:45am] storage customers a two-part reservation filed in Docket No. CP96–651–000 for BILLING CODE 6717±01±M rate, with a maximum monthly approval under Sections 157.205 and deliverability charge of $1.0125 per 157.212 of the Commission’s MMBtu and a maximum monthly Regulations to construct and operate, a [Docket No. RP96±209±001] capacity charge of $0.0225 per MMBtu, delivery point in order to provide (b) to charge interruptible storage service to Cullman-Jefferson Counties Koch Gateway Pipeline Company; customers a maximum daily rate of Gas District (Cullman-Jefferson) under Notice of Filing $0.0665 per MMBtu, (c) to charge Applicant’s blanket certificate issued in interruptible transportation customers a Docket No. CP82–406–000, all as more July 26, 1996. maximum rate of $0.0805 per MMBtu, fully set forth in the request which is on Take notice that on July 2, 1996, Koch and (d) to make various non-rate file with the Commission and open to changes in its Operating Statement. NI– public inspection. Gateway Pipeline Company (Koch Gas also will continue to charge firm Applicant proposes this construction Gateway) submitted for filing storage customers a fuel rate, based on to provide transportation service to supplemental information related to its the cost of gas. Cullman-Jefferson at a new delivery Cash-in/Cash-out Report filed on April NI–Gas states that it is an intrastate point. This new delivery point will 11, 1996 (Report). This information is natural gas distribution utility that allow Cullman-Jefferson to provide being filed pursuant to the provides interstate interruptible natural gas service to additional Commission’s June 17, 1996, Order on transportation and storage services and customers on its distribution system. Cash-in/Cash-out Report. Koch Gateway interstate firm storage service on a non- Southern proposes to locate the delivery has included a narrative to its Report discriminatory basis, pursuant to point near Mile Post 201.438 on its 24- and the workpapers which support and section 284.224 of the Commission’s inch 2nd North Main Line in Jefferson clarify the original filing. This regulations. NI–Gas owns and operates County, Alabama. The estimated cost of additional information addresses the a natural gas transmission, underground the facility is $265,700. Applicant states questions raised by the parties and (aquifer) storage and distribution system that gas will be delivered to the new provides an additional basis upon network. NI–Gas proposes an effective delivery point under existing FT and IT which the Commission can conduct a date of July 15, 1996. Service Agreements. The Maximum more detailed analysis of the filing. Pursuant to section 284.123(b)(2)(ii), Daily Delivery Quantity would be 9,000 if the Commission does not act within Any person desiring to protest said Mcf per day. 150 days of the filing date, the rate will Any person or the Commission’s staff filing should file a protest with the be deemed to be fair and equitable and may, within 45 days after issuance of Federal Energy Regulatory Commission, not in excess of an amount which the instant notice by the Commission, 888 First Street, NE., Washington DC interstate pipelines would be permitted file pursuant to Rule 214 of the 20426, in accordance with Section to charge for similar transportation Commission’s Procedural Rules (18 CFR 385.211 of the Commission’s service. The Commission may, prior to 385.214) a motion to intervene or notice regulations. All such protests must be the expiration of the 150-day period, of intervention and pursuant to filed on or before August 1, 1996. extend the time for action or institute a § 157.205 of the Regulations under the Protests will be considered by the proceeding to afford parties an Natural Gas Act (18 CFR 157.205) a Commission in determining action to be opportunity for written comments and protest to the request. If no protest is taken, but will not serve to make for the oral presentation of views, data, filed within the time allowed therefore, protestants parties to the proceeding. and arguments. the proposed activity shall be deemed to Copies of this filing are on file with the Any person desiring to participate in be authorized effective the day after the Commission and are available for public this rate proceeding must file a motion time allowed for filing a protest. If a to intervene in accordance with sections protest is filed and not withdrawn Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40211 within 30 days after the time allowed [Docket No. ER96±2435±000, et al.] Copies of this filing were served upon for filing a protest, the instant request National Gas & Electric L.P. shall be treated as an application for J.D. Enterprises, et al.; Electric Rate Comment date: August 8, 1996, in authorization pursuant to Section 7 of and Corporate Regulation Filings accordance with Standard Paragraph E the Natural Gas Act. July 25, 1996. at the end of this notice. Lois D. Cashell, Take notice that the following filings 4. Duke Power Company Secretary. have been made with the Commission: [Docket No. ER96–2439–000] [FR Doc. 96–19532 Filed 7–31–96; 8:45 am] 1. J.D. Enterprises Take notice that on July 15, 1996, BILLING CODE 6717±01±M [Docket No. ER96–2435–000] Duke Power Company (Duke), tendered Take notice that on July 5, 1996, J.D. for filing Schedule MR Transaction Enterprises, tendered for filing pursuant Sheets under Duke’s FERC Electric [Docket No. CP96±653±000] to Rule 205, 18 CFR 385.205, a petition Tariff, Original Volume No. 3 for the for waiver and blanket approvals under quarter ended June 30, 1996. Williams Natural Gas Company; Notice various regulations of the Commission Comment date: August 8, 1996, in of Request Under Blanket and for an order accepting its FERC accordance with Standard Paragraph E Authorization Electric Rate Schedule No. 1. at the end of this notice. July 26, 1996. J.D. Enterprises intends to engage in 5. Public Service Company of Colorado electric power and energy transactions Take notice that on July 23, 1996, as marketer and a broker. In transactions [Docket No. ER96–2440–000] Williams Natural Gas Company (WNG), where J.D. Enterprises sells electric Take notice that on July 17, 1996, P.O. Box 3288, Tulsa, Oklahoma 74101, energy it proposes to make such sales on Public Service Company of Colorado, filed in Docket No. CP96–653–000 a rates, terms and conditions to be tendered for filing a Third Revision to request pursuant to Sections 157.205 mutually agreed to with the purchasing Exhibit B of its Contract for and 157.216 of the Commission’s party. J.D. Enterprises is not in the Interconnections and Transmission Regulations under the Natural Gas Act business of generating, transmitting, or Service with Tri-State Generation and (18 CFR 157.205, 157.216) for distributing electric power. Transmission Association, Inc. as authorization to abandon by reclaim Comment date: August 8, 1996, in contained in Public Service’s Rate facilities originally installed for the accordance with Standard Paragraph E Schedule FERC No. 24, to change receipt of transportation gas from at the end of this notice. specified delivery points. Public Service requests an effective Trinity Pipeline, Inc. (Trinity) in 2. Baltimore Gas and Electric Company Washington County, Oklahoma, under date of June 25, 1996, for this filing. WNG’s blanket certificate issued in [Docket No. ER96–2436–000] Comment date: August 8, 1996, in Docket No. CP82–479–000 pursuant to Take notice that on July 16, 1996, accordance with Standard Paragraph E Section 7 of the Natural Gas Act, all as Baltimore Gas and Electric Company at the end of this notice. more fully set forth in the request that (BGE), filed a Service Agreement dated 6. Consolidated Edison Company of is on file with the Commission and open June 17, 1996 with Phibro Inc. (Phibro) New York, Inc. to public inspection. under BGE’s FERC Electric Tariff Original Volume No. 3 (Tariff). Under [Docket No. ER96–2441–000] WNG states that Trinity has agreed to the tendered Service Agreement, BGE Take notice that on July 17, 1996, the reclaim of the facilities. The total agrees to provide services to Phibro Consolidated Edison Company of New reclaim cost is estimated to be $3,547 under the provisions of the Tariff. BGE York, Inc. (Con Edison), tendered for with a salvage value of $13,470. requests an effective date of June 17, filing a Supplement to its Rate Any person or the Commission’s staff 1996 for the Service Agreement. BGE Schedule, Con Edison Rate Schedule may, within 45 days after issuance of states that a copy of the filing were FERC No. 2, a facilities agreement with the instant notice by the Commission, served upon the Public Service Central Hudson Gas and Electric file pursuant to Rule 214 of the Commission of Maryland. Corporation (CH). The Supplement Commission’s Procedural Rules (18 CFR Comment date: August 8, 1996, in provides for a decrease in the monthly 385.214) a motion to intervene or notice accordance with Standard Paragraph E carrying charges. Con Edison has of intervention and pursuant to at the end of this notice. requested that this decrease take effect as of June 1, 1996. § 157.205 of the Regulations under the 3. Portland General Electric Company Natural Gas Act (18 CFR 157.205) a Con Edison states that a copy of this protest to the request. If no protest is [Docket No. ER96–2437–000] filing has been served by mail upon CH. filed within the time allowed therefor, Take notice that on July 16, 1996, Comment date: August 8, 1996, in the proposed activity shall be deemed to Portland General Electric Company accordance with Standard Paragraph E be authorized effective the day after the (PGE), tendered for filing under FERC at the end of this notice. time allowed for filing a protest. If a Electric Tariff, 1st Revised Volume No. 7. Consolidated Edison Company of protest is filed and not withdrawn 2, an executed Service Agreement New York, Inc. within 30 days after the time allowed between PGE and National Gas & [Docket No. ER96–2442–000] for filing a protest, the instant request Electric L.P. shall be treated as an application for Pursuant to 18 CFR 35.11 and the Take notice that on July 17, 1996, authorization pursuant to Section 7 of Commission’s order issued July 30, 1993 Consolidated Edison Company of New the Natural Gas Act. (Docket No. PL95–2–002), PGE York, Inc. (Con Edison), tendered for respectfully requests the Commission filing a Supplement to its Rate Lois D. Cashell, grant a waiver of the notice Schedule, Con Edison Rate Schedule Secretary. requirements of 18 CFR 35.3 to allow FERC No. 123, a facilities agreement [FR Doc. 96–19533 Filed 7–31–96; 8:45 am] the executed Service Agreement to with Central Hudson Gas and Electric Billing Code 6717±01±M become effective July 1, 1996. Corporation (CH). The Supplement 40212 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices provides for a decrease in the monthly Comment date: August 8, 1996, in 14. PECO Energy Company carrying charges. Con Edison has accordance with Standard Paragraph E [Docket No. ER96–2449–000] requested that this decrease take effect at the end of this notice. Take notice that on July 17, 1996, as of June 13, 1996. 11. PECO Energy Company PECO Energy Company (PECO), filed a Con Edison states that a copy of this [Docket No. ER96–2446–000] Service Agreement dated July 10, 1996 filing has been served by mail upon CH. with Utilities Commission-New Smyrna Comment date: August 8, 1996, in Take notice that on July 17, 1996, PECO Energy Company (PECO), filed a Beach, Florida (UCNSBF) under PECO’s accordance with Standard Paragraph E FERC Electric Tariff, First Revised at the end of this notice. Service Agreement dated July 11, 1996 with Central Hudson Gas & Electric Volume No. 4 (Tariff). The Service 8. Consolidated Edison Company of Corporation (CENTRAL HUDSON) Agreement adds UCNSBF as a customer New York, Inc. under PECO’s FERC Electric Tariff, First under the Tariff. PECO requests an effective date of Revised Volume No. 4 (Tariff). The [Docket No. ER96–2443–000] July 10, 1996, for the Service Service Agreement adds CENTRAL Take notice that on July 17, 1996, Agreement. Consolidated Edison Company of New HUDSON as a customer under the PECO states that copies of this filing York Inc. (Con Edison), tendered for Tariff. have been supplied to UCNSBF and to PECO requests an effective date of filing a Supplement to its Rate the Pennsylvania Public Utility July 11, 1996, for the Service Schedule, Con Edison Rate Schedule Commission. Agreement. Comment date: August 8, 1996, in FERC No. 127, a facilities agreement PECO states that copies of this filing accordance with Standard Paragraph E with the New York Power Authority have been supplied to CENTRAL at the end of this notice. (NYPA). The Supplement provides for a HUDSON and to the Pennsylvania decrease in the monthly carrying Public Utility Commission. 15. Wisconsin Electric Power Company charges. Con Edison has requested that Comment date: August 8, 1996, in [Docket No. ER96–2450–000] this decrease take effect as of July 1, accordance with Standard Paragraph E 1996. at the end of this notice. Take notice that on July 17, 1996, Con Edison states that a copy of this Wisconsin Electric Power Company filing has been served by mail upon 12. PECO Energy Company (Wisconsin Electric), tendered for filing NYPA. [Docket No. ER96–2447–000] a Transmission Service Agreement Comment date: August 8, 1996, in Take notice that on July 17, 1996, between itself and CNG Power Service accordance with Standard Paragraph E PECO Energy Company (PECO), filed a Corporation (CNG). The Transmission at the end of this notice. Service Agreement dated July 11, 1996 Service Agreement allows CNG to receive transmission service under 9. Portland General Electric Company with Florida Power Corporation (FLORIDA POWER) under PECO’s FERC Wisconsin Electric’s FERC Electric [Docket No. ER96–2444–000] Electric Tariff, First Revised Volume No. Tariff, Original Volume No. 5, under Take notice that on July 17, 1996, 4 (Tariff). The Service Agreement adds Docket No. ER95–1474–000, Rate Portland General Electric Company FLORIDA POWER as a customer under Schedule STNF. Wisconsin Electric requests an (PGE), tendered for filing under FERC the Tariff. effective date of July 30, 1996 and Electric Tariff, First Revised Volume No. PECO requests an effective date of waiver of the Commission’s notice 2, executed Service Agreement for Grays July 11, 1996, for the Service requirements to allow for economic Harbor County Public Utility District. Agreement. transactions. Copies of the filing have Pursuant to 18 CFR 35.11 and the PECO states that copies of this filing have been supplied to FLORIDA been served on CNG, the Public Service Commission’s order issued July 30, 1993 Commission of Wisconsin and the (Docket No. PL95–2–002), PGE POWER and to the Pennsylvania Public Utility Commission. Michigan Public Service Commission. respectfully requests the Commission Comment date: August 8, 1996, in grant a waiver of the notice Comment date: August 8, 1996, in accordance with Standard Paragraph E accordance with Standard Paragraph E requirements of 18 CFR 35.3 to allow at the end of this notice. the executed Service Agreement to at the end of this notice. become effective July 1, 1996. 13. PECO Energy Company 16. Wisconsin Electric Power Company A copy of this filing was served upon [Docket No. ER96–2448–000] [Docket No. ER96–2451–000] Grays Harbor County PUD as noted in Take notice that on July 17, 1996, Take notice that on July 17, 1996, the filing letter. PECO Energy Company (PECO), filed a Wisconsin Electric Power Company Comment date: August 8, 1996, in Service Agreement dated July 11, 1996 (Wisconsin Electric), tendered for filing accordance with Standard Paragraph E with Ohio Edison Company (OE) under an Electric Service Agreement and a at the end of this notice. PECO’s FERC Electric Tariff, First Transmission Service Agreement 10. Florida Power Corporation Revised Volume No. 4 (Tariff). The between itself and VTEC Energy Inc. Service Agreement adds OE as a (VTEC). The Electric Service Agreement [Docket No. ER96–2445–000] customer under the Tariff. provides for service under Wisconsin Take notice that on July 17, 1996, PECO requests an effective date of Electric’s Coordination Sales Tariff. The Florida Power Corporation, tendered for July 11, 1996, for the Service Transmission Service Agreement allows filing a service agreement providing for Agreement. VTEC to receive transmission service service to PECO Energy Company, PECO states that copies of this filing under Wisconsin Electric’s FERC pursuant to Florida Power’s power sales have been supplied to OE and to the Electric Tariff, Original Volume No. 5, tariff. Florida Power requests that the Pennsylvania Public Utility Rate Schedule STNF, under Docket No. Commission waive its notice of filing Commission. ER95–1474–000. requirements and allow the Service Comment date: August 8, 1996, in Wisconsin Electric requests an Agreement to become effective on July accordance with Standard Paragraph E effective date of sixty days from date of 18, 1996. at the end of this notice. filing. Copies of the filing have been Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40213 served on VTEC, the Public Service ComEd’s Power Sales Tariff PS–1 (PS– tendered for filing a service agreement Commission of Wisconsin and the 1 Tariff). The Commission has under Cinergy’s Non-Firm Power Sales Michigan Public Service Commission. previously designated the PS–1 Tariff as Standard Tariff (the Tariff) entered into Comment date: August 8, 1996, in FERC Electric Tariff, Original Volume between Cinergy and Duke Power accordance with Standard Paragraph E No. 2. Company. at the end of this notice. ComEd requests an effective date of Cinergy and Duke Power Company June 17, 1996 for the Service are requesting an effective date of July 17. Wisconsin Electric Power Company Agreements between ComEd and 22, 1996. [Docket No. ER96–2452–000] Atlantic, GPU and PanEnergy, and an Comment date: August 8, 1996, in Take notice that on July 17, 1996, effective date of June 26, 1996 for the accordance with Standard Paragraph E Wisconsin Electric Power Company Service Agreements between ComEd at the end of this notice. (Wisconsin Electric), tendered for filing and Duke and Delmarva, and 23. MidAmerican Energy Company an Electric Service Agreement and a accordingly seeks waiver of the Transmission Service Agreement Commission’s regulations. Copies of this [Docket No. ER96–2459–000] between itself and Entergy (Entergy). filing were served upon Atlantic, GPU, Take notice that on July 18, 1996, The Electric Service Agreement PanEnergy, Duke, Delmarva and the MidAmerican Energy Company provides for service under Wisconsin Illinois Commerce Commission. (MidAmerican), 106 East Second Street, Electric’s Coordination Sales Tariff. The Comment date: August 8, 1996, in Davenport, Iowa 52801, filed with the Transmission Service Agreement allows accordance with Standard Paragraph E Commission a Firm Transmission Entergy to receive transmission service at the end of this notice. Service Agreement with Coastal Electric Services Company (Coastal) dated June under Wisconsin Electric’s FERC 20. Cinergy Services, Inc. Electric Tariff, Original Volume No. 5, 27, 1996, and Non-Firm Transmission Rate Schedule STNF, under Docket No. [Docket No. ER96–2456–000] Service Agreement with Coastal dated ER95–1474–000. Take notice that on July 18, 1996, June 27, 1996, entered into pursuant to Wisconsin Electric requests an Cinergy Services, Inc. (Cinergy), MidAmerican’s Point-to-Point effective date of sixty days from date of tendered for filing on behalf of its Transmission Service Tariff, FERC filing. Copies of the filing have been operating companies, The Cincinnati Electric Tariff, Original Volume No. 4. served on Entergy, the Public Service Gas & Electric Company (CG&E) and PSI MidAmerican requests an effective Commission of Wisconsin and the Energy, Inc. (PSI), an Interchange date of June 27, 1996 for the Agreements Michigan Public Service Commission. Agreement, dated July 1, 1996 between with Coastal, and accordingly seeks a Comment date: August 8, 1996, in Cinergy, CG&E, PSI and Vastar Power waiver of the Commission’s notice accordance with Standard Paragraph E Marketing, Inc. (Vastar). requirement. MidAmerican has served a at the end of this notice. The Interchange Agreement provides copy of this filing on Coastal, the Iowa for the following service between Utilities Board, the Illinois Commerce 18. Northern States Power Company Cinergy and Vastar. Commission and the South Dakota (Minnesota Company) 1. Exhibit A—Power Sales by Vastar Public Utilities Commission. Comment date: August 8, 1996, in [Docket No. ER96–2453–000] 2. Exhibit B—Power Sales by Cinergy accordance with Standard Paragraph E Take notice that on July 17, 1996, Cinergy and Vastar have requested an at the end of this notice. Northern States Power Company effective date of July 22, 1996. (Minnesota) (NSP), tendered for filing Copies of the filing were served on 24. Illinois Power Company the following Transmission Service Vastar Power Marketing, Inc., the Texas [Docket No. ER96–2460–000] Agreement between NSP and Public Utility Commission, the Take notice that on July 18, 1996, Cenerprise, Inc. Kentucky Public Service Commission, Illinois Power Company (Illinois NSP requests that the Commission the Public Utilities Commission of Ohio Power), 500 South 27th Street, Decatur, accept the agreements effective June 17, and the Indiana Utility Regulatory Illinois 62526, tendered for filing firm 1996, and requests waiver of the Commission. and non-firm transmission agreements Commission’s notice requirements in Comment date: August 8, 1996, in under which TransCanada Power order for the agreements to be accepted accordance with Standard Paragraph E Corporation will take transmission for filing on the date requested. at the end of this notice. service pursuant to its open access Comment date: August 8, 1996, in 21. Cinergy Services, Inc. transmission tariff. The agreements are accordance with Standard Paragraph E based on the Form of Service [Docket No. ER96–2457–000] at the end of this notice. Agreements in Illinois Power’s tariff. 19. Commonwealth Edison Company Take notice that on July 18, 1996, Illinois Power has requested an Cinergy Services, Inc. (Cinergy), effective date of July 15, 1996. [Docket No. ER96–2454–000] tendered for filing a service agreement Comment date: August 8, 1996, in Take notice that on July 17, 1996, under Cinergy’s Non-Firm Power Sales accordance with Standard Paragraph E Commonwealth Edison Company Standard Tariff (the Tariff) entered into at the end of this notice. (ComEd), submitted for filing five between Cinergy and PacifiCorp. Service Agreements, establishing Cinergy and PacifiCorp are requesting Standard Paragraph Atlantic City Electric Co. (Atlantic), an effective date of July 22, 1996. E. Any person desiring to be heard or dated February 29, 1996, GPU Service Comment date: August 8, 1996, in to protest said filing should file a Corporation (GPU), dated March 6, accordance with Standard Paragraph E motion to intervene or protest with the 1996, PanEnergy Power Services, Inc. at the end of this notice. Federal Energy Regulatory Commission, (PanEnergy), dated May 17, 1996, Duke 22. Cinergy Services, Inc. 888 First Street, NE., Washington, DC Power Company (Duke), dated June 26, 20426, in accordance with Rules 211 1996, and Delmarva Power and Light [Docket No. ER96–2458–000] and 214 of the Commission’s Rules of Company (Delmarva), dated June 26, Take notice that on July 18, 1996, Practice and Procedure (18 CFR 385.211 1996, as customers under the terms of Cinergy Services, Inc. (Cinergy), and 18 CFR 385.214). All such motions 40214 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices or protests should be filed on or before are designed to increase revenues from Advance Funding Rate. For those the comment date. Protests will be transmission-only business by $144 customers who, as noted above, will considered by the Commission in million over the test period, an increase continue to be billed at the PF–96 rates determining the appropriate action to be of 16 percent. With these increases through the billing period starting in taken, but will not serve to make BPA’s total test period revenues from its September 2001, BPA requests approval protestants parties to the proceeding. power and transmission business lines of the NTP–96 rate through October 30, Any person wishing to become a party (excluding the residential exchange) 2001. must file a motion to intervene. Copies will be approximately $11.7 billion. of this filing are on file with the BPA requests approval effective Comment date: August 12, 1996, in Commission and are available for public October 1, 1996, through September 30, accordance with Standard Paragraph E inspection. 2001, for the following proposed at the end of this notice. Lois D. Cashell, wholesale power rates: PF–96 Priority 3. Power Clearinghouse IGM, Inc., Firm Power Rate, NR–96 New Resource Secretary. VTEC Energy Inc., Yankee Energy Firm Power Rate, IP–96 Industrial Firm [FR Doc. 96–19578 Filed 7–31–96; 8:45 am] Marketing Company, Yankee Energy Power Rate, IPG–96 Industrial Firm BILLING CODE 6717±01±P Power Rate, VI–96 Variable Industrial Marketing Company, WPS Energy Rate, NF–96 Nonfirm Energy Rate, RP– Services, Inc., North American Power [Docket No. ER95±1358±006, et al.] 96 Reserve Power Rate, PS–96 Power Brokers, Inc. Shortage Rate, and the APS–96 [Docket No. ER95–914–005, Docket No. Northern States Power Company, et Ancillary Products and Services Rate. ER95–1439–003, Docket No. ER95–1855–003, al.; Electric Rate and Corporate In addition, for those preference Docket No. ER96–146–001, Docket No. ER96– Regulation Filings customers taking service on a billing 146–002, Docket No. ER96–1088–003, Docket month that does not coincide with the No. ER96–1156–001 (not consolidated)] July 26, 1996. calendar month, BPA requests extension Take notice that the following filings of the PF–95 rate for one month to Take notice that the following have been made with the Commission: enable transition from bundled rates for informational filings have been made with the Commission and are on file 1. Northern States Power Company priority firm power to unbundled rates. Those customers will be billed at the and available for public inspection and [Docket No. ER95–1358–006] PF–96 rates starting with their first copying in the Commission’s Public Take notice that on July 15, 1996, billing period that begins after October Reference Room: Northern States Power Company 1, 1996. Those customers will continue On July 22, 1996, Power tendered for filing its compliance filing to be billed at the PF–96 rates through Clearinghouse, Inc. filed certain in the above-referenced docket. the billing period starting in September information as required by the Comment date: August 8, 1996, in 2001 so, for those customers only, BPA Commission’s May 11, 1995, order in accordance with Standard Paragraph E requests approval of the PF–96 rate Docket No. ER95–914–000. at the end of this notice. through October 30, 2001. BPA requests approval of the General On July 12, 1996, IGM, Inc. filed 2. United States Department of certain information as required by the Energy—Bonneville Power Rate Schedule Provisions (GRSPs), Commission’s August 28, 1995, order in Administration including the Impact Aid Methodology, associated with BPA’s power rates for Docket No. ER95–1439–000. [Docket Nos. EF96–2011–000 and EF96– the period October 1, 1996, through On July 11, 1996, VTEC Energy, Inc. 2021–000] September 30, 2001. The GRSPs will filed certain information as required by Take notice that the Bonneville Power apply to both wholesale power rates and the Commission’s November 6, 1995, Administration (BPA) on July 26, 1996, transmission rates. order in Docket No. ER95–1855–000. tendered for filing proposed rate BPA requests approval effective adjustments for its wholesale power and October 1, 1996, through September 30, On July 18, 1996, Yankee Energy transmission rates pursuant to Section 2006, for the FPS–96 Firm Power Marketing Company filed certain 7(a)(2) of the Pacific Northwest Electric Products and Services Rate. BPA states information as required by the Power Planning and Conservation Act, that this approval is necessary for it to Commission’s November 29, 1995, order 16 U.S.C. § 839e(a)(2). BPA seeks compete and assure cost recovery. in Docket No. ER95–146–000. interim approval of its proposed rates BPA requests approval effective On July 18, 1996, Yankee Energy effective October 1, 1996, pursuant to October 1, 1996, through September 30, Marketing Company filed certain Commission Regulation 300.20, 18 CFR 2001, for the following proposed information as required by the transmission rate schedules: FPT–96.1 300.20. Pursuant to Commission Commission’s November 29, 1995, order Regulation 300.21, 18 CFR 300.21, BPA Formula Power Transmission, FPT–96.3 in Docket No. ER95–146–000. seeks final confirmation of the proposed Formula Power Transmission, IR–96 rates for the periods set forth in this Integration of Resources, NT–96 On July 15, 1996, WPS Energy notice. Network Integration Transmission Rate, Services, Inc. filed certain information BPA states that its wholesale power NTP–96 Network Integration as required by the Commission’s April and transmission rates are proposed to Transmission Rate, PTP–96 Point-to- 16, 1996, order in Docket No. ER96– be modified. BPA further states that Point Firm Transmission Rate, RNF–96 1088–000. while market forces have prompted BPA Reserved Nonfirm Transmission Rate, On July 22, 1996, North American to lower its wholesale power rates, the ET–96 Energy Transmission, IS–96 Power Brokers, Inc. filed certain resulting loads are forecasted to increase Southern Intertie Transmission, IM–96 information as required by the revenues over the 5-year test period by Montana Intertie Transmission Rate, IE– Commission’s April 16, 1996, order in approximately $1826 million (excluding 96 Eastern Intertie Transmission, TGT– Docket No. ER96–1156–000. the residential exchange), which 965 Townsend-Garrison Transmission, represents an increase of approximately MT–96 Market Transmission, UFT–96 20.7 percent. BPA’s transmission rates Use-of-Facilities Transmission, AF–96 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40215

4. National Gas & Electric L.P., Torco On July 18, 1996, Texas-Ohio Power Comment date: August 7, 1996, in Energy Marketing, Inc., MG Electric Marketing, Inc. filed certain information accordance with Standard Paragraph E Power, Inc., Eclipse Energy Inc., Ashton as required by the Commission’s at the end of this notice. Energy Corporation, Energy Resource October 31, 1994, order in Docket No. 9. Illinois Power Company Marketing, Inc., Gulfstream Energy, ER94–1676–000. LLC On July 12, 1996, Petroleum Source & [Docket No. ER96–2461–000] [Docket No. ER90–168–028, Docket No. Systems Group filed certain information Take notice that on July 18, 1996, ER92–429–009, Docket No. ER93–839–003, as required by the Commission’s Illinois Power Company (Illinois Docket No. ER94–1099–009, Docket No. January 18, 1995, order in Docket No. Power), 500 South 27th Street, Decatur, ER94–1246–008, Docket No. ER94–1580–007, ER95–266–000. Illinois 62526, tendered for filing firm Docket No. ER94–1597–007 (not On July 22, 1996, SouthEastern and non-firm transmission agreements consolidated)] Energy Resources, Inc. filed certain under which Southern Company Take notice that the following information as required by the Services, Inc., solely as agent for informational filings have been made Commission’s February 24, 1995, order Alabama Power Company, Georgia with the Commission and are on file in Docket No. ER95–385–000. Power Company, Mississippi Power and available for public inspection and On July 19, 1996, J. Anthony & Company, Gulf Power Company, and copying in the Commission’s Public Associates Ltd. filed certain information Savannah Electric and Power Company, Reference Room: as required by the Commission’s May collectively known as Southern On July 19, 1996, National Gas & 31, 1995, order in Docket No. ER95– Companies will take transmission Electric L.P. filed certain information as 784–000. service pursuant to its open access required by the Commission’s March 20, On July 12, 1996, K Power Company transmission tariff. The agreements are 1990, order in Docket No. ER90–168– filed certain information as required by based on the Form of Service Agreement 000. the Commission’s June 19, 1995, order in Illinois Power’s tariff. On July 15, 1996, Torco Energy in Docket No. ER95–792–000. Illinois Power has requested an Marketing, Inc. filed certain information On July 19, 1996, KN Marketing, Inc. effective date of July 1, 1996. as required by the Commission’s May filed certain information as required by Comment date: August 9, 1996, in 18, 1992, order in Docket No. ER92– the Commission’s May 26, 1995, order accordance with Standard Paragraph E 429–000. in Docket No. ER95–869–000. at the end of this notice. On July 18, 1996, MG Electric Power, 6. Wisconsin Electric Power Company 10. Illinois Power Company Inc. filed certain information as required by the Commission’s October 19, 1993, [Docket No. ER95–1474–001] [Docket No. ER96–2462–000] order in Docket No. ER93–839–000. Take notice that on July 19, 1996, Take notice that on July 18, 1996, On July 22, 1996, Eclipse Energy Inc. Wisconsin Electric Power Company Illinois Power Company (Illinois filed certain information as required by tendered for filing its compliance filing Power), 500 South 27th Street, Decatur, the Commission’s June 15, 1994, order in the above-referenced docket pursuant Illinois 62526, tendered for filing firm in Docket No. ER94–1099–000. to the Commission’s order of June 13, and non-firm transmission agreements On July 22, 1996, Ashton Energy 1996 in this proceeding. under which Pan Energy Power Corporation filed certain information as Comment date: August 8, 1996, in Services, Inc., will take transmission required by the Commission’s August accordance with Standard Paragraph E service pursuant to its open access 10, 1994, order in Docket No. ER94– at the end of this notice. transmission tariff. The agreements are 1246–000. 7. Midwest Energy, Inc. based on the Form of Service Agreement On July 18, 1996, Energy Resource in Illinois Power’s tariff. [Docket No. ER96–2278–000] Marketing, Inc. filed certain information Illinois Power has requested an as required by the Commission’s Take notice that on July 12, 1996, effective date of July 15, 1996. September 30, 1994, order in Docket No. Midwest Energy, Inc. tendered for filing Comment date: August 9, 1996, in ER94–1580–000. an amendment in the above-referenced accordance with Standard Paragraph E On July 19, 1996, Gulfstream Energy, docket. at the end of this notice. Comment date: August 7, 1996, in LLC filed certain information as 11. Allegheny Power Service accordance with Standard Paragraph E required by the Commission’s October Corporation, on behalf of Monongahela at the end of this notice. 21, 1994, order in Docket No. ER94– Power Company, The Potomac Edison 1597–000. 8. Western Resources, Inc. Company and West Penn Power 5. Texas-Ohio Power Marketing, Inc., [Docket No. ER96–2407–000] Company (Allegheny Power Petroleum Source & Systems Group, Take notice that on July 15, 1996, [Docket No. ER96–2463–000] SouthEastern Energy Resources, Inc., J. Western Resources, Inc. on behalf of Take notice that on July 18, 1996, Anthony & Associates Ltd., K Power Kansas Gas and Electric Company Allegheny Power Service Corporation Company, KN Marketing, Inc. (KG&E), tendered for filing a proposed on behalf of Monongahela Power [Docket No. ER94–1676–008], [Docket No. change to its Federal Energy Regulatory Company, The Potomac Edison ER95–266–006], [Docket No. ER95–385–006], Commission Electric Service Schedule Company and West Penn Power [Docket No. ER95–784–000], [Docket No. No. 182. KG&E states the purpose of the Company (Allegheny Power) filed ER95–792–004], [Docket No. ER95–869–005] change is to serve the City of Girard Supplement No. 12 to add seven (7) new (not consolidated) under Service Schedule SPP, Short- Customers to the Standard Generation Take notice that the following Term Participation Power Service Service Rate Schedule under which informational filings have been made effective July 1, 1996 through October Allegheny Power offers standard with the Commission and are on file 31, 1996. generation and emergency service on an and available for public inspection and Copies of the filing were served upon hourly, daily, weekly, monthly or yearly copying in the Commission’s Public the City of Girard and the Kansas basis. Allegheny Power requests a Reference Room: Corporation Commission. waiver of notice requirements to make 40216 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices service available as of July 1, 1996, to changes would clarify the interpretation 16. Northeast Utilities Service Company PanEnergy Power Services, Inc. and as of existing pricing provisions, allow [Docket No. ER96–2470–000] of July 17, 1996, to AIG Trading short-term purchases from other sellers, Corporation, Commonwealth Edison and provide for additional sales to Take notice that on July 19, 1996, Company, Dayton Power and Light Commonwealth Electric Company Northeast Utilities Service Company Company, Delhi Energy Services, Inc., during system emergency conditions. (NUSCO), tendered for filing a Service Niagara Mohawk Power Corporation, The proposed changes were agreed Agreement with AIG Trading and Vastar Power Marketing, Inc. upon in order to avoid future disputes Corporation (AIG) under the NU System Copies of the filing have been and misunderstandings and to allow the Companies System Power Sales/ provided to the Public Utilities mutually beneficial transactions Exchange Tariff No. 6. On behalf of AIG, Commission of Ohio, the Pennsylvania referenced above to occur. NUSCO has also filed a Certificate of Concurrence. Public Utility Commission, the Copies of the filing were served upon NUSCO states that a copy of this filing Maryland Public Service Commission, Commonwealth Electric Company and has been mailed to AIG. the Virginia State Corporation the Massachusetts Department of Public Commission, the West Virginia Public Utilities. NUSCO requests that the Service Agreement become effective sixty (60) Service Commission, and all parties of Comment date: August 9, 1996, in days following the Commission’s receipt record. accordance with Standard Paragraph E of the filing. Comment date: August 9, 1996, in at the end of this notice. accordance with Standard Paragraph E Comment date: August 9, 1996, in at the end of this notice. 14. Portland General Electric Company accordance with Standard Paragraph E at the end of this notice. 12. New York State Electric & Gas [Docket No. ER96–2473–000] Corporation Take notice that on July 19, 1996, 17. UtiliCorp United Inc. Portland General Electric Company [Docket No. ER96–2464–000] [Docket No. ER96–2471–000] (PGE), tendered for filing a Revision No. Take notice that on July 19, 1996, Take notice that on July 18, 1996, 3 to Exhibit D of the General Transfer UtiliCorp United Inc. (UtiliCorp), New York State Electric & Gas Agreement between Bonneville Power tendered for filing a Contract dated July Corporation (NYSEG), tendered for Administration and PGE (FERC Electric 12, 1996 (the Contract) between filing pursuant to 35.12 of the Federal Service Tariff Volume No. 72). Energy Regulatory Commission’s Rules UtiliCorp and the United States The BPA and PGE mutually agree to of Practice and Procedure, 18 CFR Department of Energy, Western Area revise Exhibit D to the General Transfer 35.12, as an initial rate schedule, an Power Administration (WAPA). Under Agreement to reflect changes in transfer agreement with Delmarva Power & Light the Contract, the WestPlains Energy charges at the Canby and Twilight Company (Delmarva). The agreement division of UtiliCorp will be Points of Delivery. provides a mechanism pursuant to interconnected with WAPA at WAPA’s Copies of the filing have been served which the parties can enter into Midway Substation in Colorado. on the parties included in the filing separately scheduled transmission Comment date: August 9, 1996, in letter. under which NYSEG will sell to accordance with Standard Paragraph E Delmarva and Delmarva will purchase Pursuant to 18 CFR 35.11, PGE at the end of this notice. from NYSEG either capacity and respectfully requests that the Commission grant waiver of the notice 18. Jersey Central Power & Light associated energy or energy only as the Company, Metropolitan Edison parties may mutually agree. requirements of 18 CFR 35.3 to allow Revision No. 3 to Exhibit D of the GTA Company, Pennsylvania Electric NYSEG requests that the agreement Company become effective on July 19, 1996, so to become effective as of August 1, 1996. that the parties may, if mutually Comment date: August 9, 1996, in [Docket No. ER96–2465–000] agreeable, enter into separately accordance with Standard Paragraph E Take notice that on July 18, 1996, scheduled transactions under the at the end of this notice. GPU Service Corporation (GPU), on agreement. NYSEG has requested waiver 15. The Montana Power Company behalf of Jersey Central Power & Light of the notice requirements for good Company, Metropolitan Edison cause shown. [Docket No. ER96–2469–000] Company and Pennsylvania Electric NYSEG served copies of the filing Take notice that on July 19, 1996, The Company (jointly referred to as the GPU upon the New York State Public Service Montana Power Company (Montana), Companies), filed a Service Agreement Commission and Delmarva. tendered for filing with the Federal between GPU and PanEnergy Power Comment date: August 9, 1996, in Energy Regulatory Commission Services, Inc. (PAN) dated July 11, 1996. accordance with Standard Paragraph E pursuant to 18 CFR 35.13, Service This Service Agreement specifies that at the end of this notice. Agreement with The Utility-Trade Corp. PAN has agreed to the rates, terms and and Duke/Louis Dreyfus L.L.C. under conditions of the GPU Companies’ 13. Dartmouth Power Associates FERC Electric Tariff, Second Revised Limited Partnership Energy Transmission Service Tariff Volume No. 1, a revised Index of accepted by the Commission on [Docket No. ER96–2472–000] Purchasers under said Tariff, and September 28, 1995, in Docket No. Take notice that on July 19, 1996, Certificate of Concurrences from The ER95–791–000 and designated as FERC Dartmouth Power Associates Limited Utility-Trade Corp. and Duke/Louis Electric Tariff, Original Volume No. 3. Partnership, tendered for filing, Dreyfus L.L.C. GPU requests a waiver of the pursuant to Rule 207 of the A copy of the filing was served upon Commission’s notice requirements for Commission’s Rules of Practice and The Utility-Trade Corp. and Duke/Louis good causes shown and an effective date Procedure, 18 CFR 385.207, proposed Dreyfus L.L.C. July 11, 1996, for the Service changes in its FERC Electric Service Comment date: August 9, 1996, in Agreement. GPU has served copies of Tariff No. 1 for sales to Commonwealth accordance with Standard Paragraph E the filing on regulatory agencies in New Electric Company. The proposed at the end of this notice. Jersey and Pennsylvania and on PAN. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40217

Comment date: August 9, 1996, in The Washington Water Power Company for residents of The Harbour at the accordance with Standard Paragraph E Comment date: August 9, 1996, in Pointe Subdivision. The proposed at the end of this notice. accordance with Standard Paragraph E marina facility would consist of an 19. New York State Electric & Gas at the end of this notice. access ramp and a floating slip facility. The slips would be anchored by using Corporation Standard Paragraph self-driving piles. [Docket No. ER96–2466–000] E. Any person desiring to be heard or k. This notice also consists of the Take notice that on July 18, 1996, to protest said filing should file a following standard paragraphs: B, C1, New York State Electric & Gas motion to intervene or protest with the D2. Corporation (NYSEG), tendered for Federal Energy Regulatory Commission, filing tariffs and various agreements 888 First Street, N.E., Washington DC, B. Comments, Protests, or Motions to relating to the purchase of up to 32 MW with Rules 211 and 214 of the Intervene—Anyone may submit of New York Power Authority (NYPA) Commission’s Rules of Practice and comments, a protest, or a motion to Economic Development Power (EDP) for Procedure (18 CFR 385.211 and 18 CFR intervene in accordance with the resale to eligible retail customers in 385.214). All such motions or protests requirements of Rules of Practice and NYSEG’s service territory pursuant to should be filed on or before the Procedure, 18 CFR 385.210, .211, .214. tariff rates and terms (the EDPP Tariff) comment date. Protests will be In determining the appropriate action to approved by the New York State Public considered by the Commission in take, the Commission will consider all Service Commission (NYPSC). NYSEG determining the appropriate action to be protests or other comments filed, but requests that the Commission disclaim taken, but will not serve to make only those who file a motion to jurisdiction over this filing. protestants parties to the proceeding. intervene in accordance with the Alternatively, NYSEG requests a waiver Any person wishing to become a party Commission’s Rules may become a of the Commission’s notice must file a motion to intervene. Copies party to the proceeding. Any comments, of this filing are on file with the requirements and the following effective protests, or motions to intervene must Commission and are available for public dates: be received on or before the specified inspection. comment date for the particular Requested effective Lois D. Cashell, Agreement/tariff date application. Secretary. [FR Doc. 96–19577 Filed 7–31–96; 8:45 am] C1. Filing and Service of Responsive NYSEG's EDPP Tariff April 11, 1994. Documents—Any filings must bear in EDP Settlement August 15, 1994. BILLING CODE 6717±01±P Agreement (as ap- all capital letters the title proved by NYPSC). ‘‘COMMENTS’’, NYSEG/NYPA EDP May 27, 1994. Notice of Application To Grant an ‘‘RECOMMENDATIONS FOR TERMS Agreements, as Easement to Crescent Resources, Inc. AND CONDITIONS’’, ‘‘PROTEST’’, OR amended (including To Construct a Private Marina ‘‘MOTION TO INTERVENE’’, as EDP Metering applicable, and the Project Number of Agreement). July 26, 1996. the particular application to which the Take notice that the following filing refers. Any of the above-named Copies of the filing were served upon hydroelectric application has been filed documents must be filed by providing the NYPSC, NYPA, and Multiple with the Commission and is available the original and the number of copies Intervenors (on behalf of certain for public inspection: industrial customers served by NYSEG). a. Type of Application: Application to provided by the Commission’s Comment date: August 9, 1996, in Grant an Easement to Cresent Resources, regulations to: The Secretary, Federal accordance with Standard Paragraph E Inc. to Construct a Private Marina. Energy Regulatory Commission, 888 at the end of this notice. b. Project Name and No: Catawba- First Street, N.E., Washington, D.C. 20426. A copy of any motion to 20. The Washington Water Power Wateree Project, FERC Project No. 2232– intervene must also be served upon each Company 328. c. Date Filed: June 26, 1996. representative of the Applicant [Docket No. ER96–2467–000] d. Applicant: Duke Power Company. specified in the particular application. e. Location: Iredell County, North Take notice that on July 18, 1996, The D2. Agency Comments—Federal, Carolina. The Harbour at Pointe Washington Water Power Company state, and local agencies are invited to Subdivision on Lake Norman near (WWP), tendered for filing a file comments on the described Termination Agreement for The Mooresville. application. A copy of the application Intercompany Pool Agreement. WWP f. Filed pursuant to: Federal Power may be obtained by agencies directly states that the intention of said Act, 16 U.S.C. 791(a)–825(r). from the Applicant. If an agency does Termination Agreement is to terminate g. Applicant Contact: Mr. E.M. The Intercompany Pool Agreement Oakley, Duke Power Company, P.O. Box not file comments within the time effective 2400 hours on October 31, 1006 (EC12Y), Charlotte, NC 28201– specified for filing comments, it will be 1996. Notices of Cancellation and 1006, (704) 382–5778. presumed to have no comments. One Certificates of Concurrence were h. FERC Contact: Brian Romanek, copy of an agency’s comments must also submitted for the filing parties which (202) 219–3076. be sent to the Applicant’s include: i. Comment Date: August 30, 1996. representatives. j. Description of the filing: Lois D. Cashell, Idaho Power Company Application to grant an easement of PacifiCorp Secretary. 4.504 acres of project land to Cresent Portland General Electric Company Resources Inc. to construct a private [FR Doc. 96–19535 Filed 7–31–96; 8:45 am] Puget Sound Power & Light Company BILLING CODE 6717±01±M Sierra Pacific Power Company residential marina consisting of 191 The Montana Power Company floating boat slips. The proposed marina would provide access to the reservoir 40218 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

FEDERAL COMMUNICATIONS Type of Review: Revision of an between Local Exchange Carriers and COMMISSION Existing Collection. Commercial Mobile Radio Service Providers Respondents: Individuals and (CC Docket No. 95–185). Summary: The Notice of Public Information households. Commission will consider actions to Collections Submitted to OMB for Number of Respondents: 19,000. implement Sections 251 and 252 enacted in Review and Approval the Telecommunications Act of 1996; actions Estimated Time Per Response: 20 regarding interconnection between local minutes. July 26, 1996. exchange carriers and commercial mobile Total Annual Burden: 6,270 hours. radio service providers. SUMMARY: The Federal Communications, Total Annual Cost: $45 per as part of its continuing effort to reduce respondent for renewal of a Marine The prompt and orderly conduct of paperwork burden invites the general Radio Operator Permit, GMDSS Radio Commission business requires that less public and other Federal agencies to Operator License, GMDSS Radio than 7-days notice be given take this opportunity to comment on the Maintainer License, GMDSS Radio consideration of this additional item. following proposed and/or continuing Operator/ Maintainer License, or a First, Action by the Commission July 29, information collections, as required by Second or Third Class Radiotelegraph 1996. Commissioners Hundt, Chairman; the Paperwork Reduction Act of 1995, Operator Certificate Renewal. Requests Quello, Ness and Chong voting to Public Law 104–13. An agency may not for Duplicate/Replacement require a fee consider this item. conduct or sponsor a collection of of $45. Additional information concerning information unless it displays a Needs and Uses: Section 13.9 and this meeting may be obtained from currently valid control number. No 13.13 of FCC rules require this Audrey Spivack or David Fiske, Office person shall be subject to any penalty information collection to establish the of Public Affairs, telephone number for failing to comply with a collection identity of persons applying for radio (202) 418–0500. of information subject to the Paperwork operator licenses. The Commission is Copies of materials adopted at this Reduction Act (PRA) that does not authorized under Section 303(1)(1) of meeting can be purchased from the display a valid control number. the Communications Act to issue radio FCC’s duplicating contractor, Comments are requested concerning (a) operator licenses to qualified persons. International Transcription Services, whether the proposed collection of The form is being revised to allow a Inc. at (202) 857–3800. Audio and Video information is necessary for the proper purpose of application block for Tapes of this meeting can be purchased performance of the functions of the modification. Modification is to be from Telspan International at (301) 731– Commission, including whether the checked only if adding the Ship Radar 5355. This meeting can be viewed over information shall have practical utility; Endorsement and/or Six Months Service George Mason University’s ‘‘Capitol (b) the accuracy of the Commissions Endorsement to their existing license. Connection.’’ For Information on this burden estimates; (c) ways to enhance Applicants previously applied as service call (703) 993–3100. the quality, utility, and clarity of the purpose ‘‘New’’ to add these Dated: July 29, 1996. information collected and (d) ways to endorsements. In addition, a space has Federal Communications Commission. minimize the burden of the collection of been added for the applicant to provide William F. Caton, information on the respondents, an Internet address. As a result of the Acting Secretary. including the use of automated Debt Collection Improvement Act of [FR Doc. 96–19660 Filed 7–30–96; 2:19 pm] collection techniques or other forms of 1996, the FCC is required to collect the information technology. Taxpayer Identification Number. A BILLING CODE 6712±01±F DATES: Written comments should be space has been provided on the form for submitted on or before September 3, applicant’s Social Security Number. 1996. If you anticipate that you will be This form only filed by individual FEDERAL ELECTION COMMISSION submitting comments, but find it applicants therefore, no reference is difficult to do so within the period of made to an Employee Identification Sunshine Act Meeting time allowed by this notice, you should Number (EIN). ``FEDERAL REGISTER'' NUMBER: 96–19022. advise the contact listed below as soon Federal Communications Commission. as possible. PREVIOUSLY ANNOUNCED DATE AND TIME: William F. Caton, Thursday, August 1, 1996, 10:00 a.m. ADDRESSES: Direct all comments to Acting Secretary. Meeting Open to the Public. Dorothy Conway, Federal [FR Doc. 96–19576 Filed 7–31–96; 8:45 am] Communications, Room 234, 1919 M THE FOLLOWING ITEM WAS ADDED TO THE BILLING CODE 6712±01±P St., NW., Washington, DC 20554 or via AGENDA: Final Audit Report— internet to [email protected] and Republican Party of Dade County. Timothy Fain, OMB Desk Officer, 10236 Sunshine Act Meeting; Additional Item DATE AND TIME: Tuesday, August 6, 1996 NEOB 725 17th Street, NW., To Be Considered at Open Meeting, at 10:00 a.m. Washington, DC 20503 or Thursday, August 1st PLACE: 999 E Street, N.W., Washington, [email protected]. D.C. The Federal Communications FOR FURTHER INFORMATION CONTACT: For STATUS: This Meeting Will Be Closed to Commission will consider an additional additional information or copies of the the Public. item on the subject listed below at the information collections contact Dorothy ITEMS TO BE DISCUSSED: Conway at 202–418–0217 or via internet Open Meeting scheduled for 9:30 a.m., at [email protected]. Thursday, August 1, 1996, at 1919 M Compliance matters pursuant to 2 U.S.C. Street, NW., Washington, DC. § 437g. SUPPLEMENTARY INFORMATION: Audits conducted pursuant to 2 U.S.C. Item No., Bureau, Subject § 437g, § 438(b), and Title 26, U.S.C. OMB Approval Number: 3060–0069. 2—Common Carrier—Title: Matters concerning participation in civil Title: Application for Commercial Implementation of the Local Competition actions or proceedings or arbitration Radio Operator License. Provisions in the Telecommunications Act of Internal personnel rules and procedures or Form No.: FCC 756. 1996 (CC Docket No. 96–98); Interconnection matters affecting a particular employee Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40219

DATE AND TIME: Thursday, August 8, Parties: owned by the bank holding company, 1996 at 10:00 a.m. Port of Portland (‘‘Port’’) including the companies listed below. PLACE: 999 E Street, N.W. Washington, Stevedoring Services of America, Inc. The application listed below, as well Synopsis: The proposed amendment D.C. (Ninth Floor). as other related filings required by the increases the crane maintenance fee to STATUS: This Meeting Will Be Open to Board, are available for immediate the Public. $5,000, clarifies the Port’s responsibilities and specifies the use inspection at the Federal Reserve Bank ITEMS TO BE DISCUSSED: of only Cranes 371, 372 and 356. indicated. Once the application has Correction and Approval of Minutes been accepted for processing, it will also Advisory Opinion 1996–30: Robert F. Bauer Dated: July 26, 1996. be available for inspection at the offices on behalf of the Democratic Senatorial By Order of the Federal Maritime of the Board of Governors. Interested Commission. Campaign Committee and the Democratic persons may express their views in Congressional Campaign Committee Joseph C. Polking, writing on the standards enumerated in Advisory Opinion 1996–32: Craig Engle on Secretary. behalf of the National Republican the BHC Act (12 U.S.C. 1842(c)). If the Senatorial Committee [FR Doc. 96–19527 Filed 7–31–96; 8:45 am] proposal also involves the acquisition of Electronic Filing of Reports By Political BILLING CODE 6730±01±M a nonbanking company, the review also Committees; Draft Final Rule with includes whether the acquisition of the Explanation and Justification nonbanking company complies with the Administrative Matters Ocean Freight Forwarder License Applicants standards in section 4 of the BHC Act, PERSON TO CONTACT FOR INFORMATION: including whether the acquisition of the Mr. Ron Harris, Press Officer, Notice is hereby given that the nonbanking company can ‘‘reasonably Telephone: (202) 219–4155. following applicants have filed with the be expected to produce benefits to the Marjorie W. Emmons, Federal Maritime Commission public, such as greater convenience, Secretary of the Commission. applications for licenses as ocean freight increased competition, or gains in [FR Doc. 96–19745 Filed 7–30–96; 3:39 pm] forwarders pursuant to section 19 of the efficiency, that outweigh possible BILLING CODE 6715±01±M Shipping Act of 1984 (46 U.S.C. app. adverse effects, such as undue 1718 and 46 CFR 510). concentration of resources, decreased or Persons knowing of any reason why unfair competition, conflicts of FEDERAL MARITIME COMMISSION any of the following applicants should interests, or unsound banking practices’’ not receive a license are requested to (12 U.S.C. 1843). Any request for Notice of Agreement(s) Filed contact the Office of Freight Forwarders, a hearing must be accompanied by a Federal Maritime Commission, The Federal Maritime Commission Washington, D.C. 20573. statement of the reasons a written hereby gives notice of the filing of the presentation would not suffice in lieu of New England Logistics Group Inc., 25 following agreement(s) pursuant to a hearing, identifying specifically any Adams Street, Braintree, MA 02184, section 5 of the Shipping Act of 1984. questions of fact that are in dispute, Officers: Richard T. Sheridan, Jr., Interested parties may inspect and summarizing the evidence that would obtain a copy of each agreement at the President; William F. Sheridan, Vice President be presented at a hearing, and indicating Washington, D.C. Office of the Federal how the party commenting would be Maritime Commission, 800 North Korex Transport, Inc., 1145 West Walnut Street, Compton, CA 90220, aggrieved by approval of the proposal. Capitol Street, N.W., 9th Floor. Unless otherwise noted, nonbanking Interested parties may submit comments Officer: Han Jong Choi, President Kota Shipping Corp., 1325 NW 93 Ct., activities will be conducted throughout on each agreement to the Secretary, the United States. Federal Maritime Commission, Suite B–108, Miami, FL 33172, Washington, D.C. 20573, within 10 days Officer: Bogdan Koszarycz, President. Unless otherwise noted, comments after the date of the Federal Register in Dated: July 29, 1996. regarding the application must be which this notice appears. The Joseph C. Polking, received at the Reserve Bank indicated requirements for comments are found in Secretary. or the offices of the Board of Governors section 572.603 of Title 46 of the Code [FR Doc. 96–19612, Filed 7–31–96; 8:45 am] not later than August 26, 1996. of Federal Regulations. Interested BILLING CODE 6730±01±M A. Federal Reserve Bank of persons should consult this section Richmond (Lloyd W. Bostian, Jr., Senior before communicating with the Vice President) 701 East Byrd Street, Commission regarding a pending FEDERAL RESERVE SYSTEM Richmond, Virginia 23261: agreement. 1. Century Bancorp, Inc., Agreement No.: 202–011432–006 Formations of, Acquisitions by, and Title: Pacific Latin America Agreement Mergers of Bank Holding Companies Thomasville, North Carolina; to become Parties: a bank holding company by acquiring A.P. Moller-Maersk Line The company listed in this notice has 100 percent of the voting shares of Sea-Land Service, Inc. applied to the Board for approval, Home Savings, Inc., SSB, Thomasville, Synopsis: The proposed amendment pursuant to the Bank Holding Company North Carolina. expands the geographic scope of the Act of 1956 (12 U.S.C. 1841 et seq.) Board of Governors of the Federal Reserve Agreement to include all ports of (BHC Act), Regulation Y (12 CFR Part System, July 26, 1996. Mexico and Central America. The 225), and all other applicable statutes parties have requested a shortened and regulations to become a bank Jennifer J. Johnson review period. holding company and/or to acquire the Deputy Secretary of the Board Agreement No.: 224–010806–005 assets or the ownership of, control of, or [FR Doc. 96–19553 Filed 7-31-96; 8:45 am] Title: Port of Portland/Stevedoring the power to vote shares of a bank or BILLING CODE 6210-01-F Services of America, Inc. Management bank holding company and all of the Agreement banks and nonbanking companies 40220 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Notice of Proposals to Engage in Board’s Regulation Y. Norwest Financial SUPPLEMENTARY INFORMATION: Pursuant Permissible Nonbanking Activities or will enter into a contract with Travelers to Section 6(f) of the Federal Trade to Acquire Companies That are Express, Inc., Minneapolis, Minnesota. Commission Act, 38 Stat. 721, 15 U.S.C. Engaged in Permissible Nonbanking Travelers Express would provide 46 and Section 2.34 of the Commission’s Activities Norwest Financial with blank money Rules of Practice (16 CFR 2.34), notice order forms and the equipment is hereby given that the following The company listed in this notice has necessary to process the money order consent agreement containing a consent given notice under section 4 of the Bank sales. Norwest Financial would act as order to cease and desist, having been Holding Company Act (12 U.S.C. 1843) the agent of Travelers Express and sell filed with and accepted, subject to final (BHC Act) and Regulation Y, (12 money orders in exchange for a flat fee approval, by the Commission, has been CFR Part 225) to engage de novo, or to for each money order sold. placed on the public record for a period acquire or control voting securities or Board of Governors of the Federal Reserve of sixty (60) days. Public comment is assets of a company that engages either invited. Such comments or views will directly or through a subsidiary or other System, July 26, 1996. Jennifer J. Johnson be considered by the Commission and company, in a nonbanking activity that will be available for inspection and is listed in § 225.25 of Regulation Y (12 Deputy Secretary of the Board [FR Doc. 96–19554 Filed 7-31-96; 8:45 am] copying at its principal office in CFR 225.25) or that the Board has accordance with Section 4.9(b)(6)(ii) of BILLING CODE 6210-01-F determined by Order to be closely the Commission’s Rules of Practice (16 related to banking and permissible for CFR 4.9(b)(6)(ii)). bank holding companies. Unless otherwise noted, these activities will be FEDERAL TRADE COMMISSION Agreement Containing Consent Order conducted throughout the United States. [File No. 961±0053] The Federal Trade Commission The notice is available for inspection (‘‘Commission’’), having initiated an at the Federal Reserve Bank indicated. Fresenius AG; Fresenius USA, Inc.; investigation of the proposed Once the notice has been accepted for Proposed Consent Agreement With acquisition by Fresenius AG of National processing, it will also be available for Analysis To Aid Public Comment Medical Care, Inc. from W.R. Grace & inspection at the offices of the Board of Co., and it now appearing that Fresenius Governors. Interested persons may AGENCY: Federal Trade Commission. AG and Fresenius USA, Inc. (hereinafter express their views in writing on the ACTION: Proposed consent agreement. sometimes referred to as ‘‘proposed question whether the proposal complies SUMMARY: In settlement of alleged respondents’’) are willing to enter into with the standards of section 4 of the violations of federal law prohibiting an agreement containing an order to BHC Act, including whether unfair or deceptive acts or practices and divest certain assets, and to cease and consummation of the proposal can unfair methods of competition, this desist from making certain acquisitions ‘‘reasonably be expected to produce consent agreement, accepted subject to without providing advance written benefits to the public, such as greater final Commission approval, would notification to the Commission, and convenience, increased competition, or require, among other things, the Walnut providing for other relief: gains in efficiency, that outweigh Creek, California-based subsidiary of It is Hereby agreed by and between possible adverse effects, such as undue Fresenius AG to divest its Lewisberry, proposed respondents, by their duly concentration of resources, decreased or Pennsylvania hemodialysis concentrate authorized officers and attorneys, and unfair competition, conflicts of plant to Di-Chem, Inc. The consent counsel for the Commission that: interests, or unsound banking practices’’ agreement settles antitrust concerns i. Proposed respondent Fresenius AG (12 U.S.C. 1843). Any request for a stemming from Fresenius’ proposed is a corporation organized, existing and hearing on this question must be acquisition of National Medical Care, doing business under and by virtue of accompanied by a statement of the Inc. (NMC) from W.R. Grace & Co. the laws of Germany with its office and reasons a written presentation would Fresenius is one of the world’s leading principal place of business located at not suffice in lieu of a hearing, producers of kidney dialysis equipment, Borkenberg 14, 61440 Oberursel/Ts, Bad identifying specifically any questions of and NMC is the largest dialysis services Homburg, Germany. fact that are in dispute, summarizing the company in the United States. The draft ii. Proposed respondent Fresenius evidence that would be presented at a complaint alleges that Fresenius’ USA, Inc. is a corporation organized, hearing, and indicating how the party acquisition of NMC would produce a existing and doing business under and commenting would be aggrieved by firm with a market share of by virtue of the laws of Massachusetts approval of the proposal. with its principal place of business Unless otherwise noted, comments approximately 45–50 percent of the hemodialysis concentrate market. located at 2637 Shadelands Drive, regarding the application must be Walnut Creek, California 94598. received at the Reserve Bank indicated DATES: Comments must be received on or before September 30, 1996. iii. Proposed respondents admit all or the offices of the Board of Governors the jurisdictional facts set forth in the ADDRESSES: not later than August 15, 1996. Comments should be draft of complaint. A. Federal Reserve Bank of directed to: FTC/Office of the Secretary, iv. Proposed respondents waive: Minneapolis (James M. Lyon, Vice Room 159, 6th St. and Pa. Ave., NW., (1) Any further procedural steps; President) 250 Marquette Avenue, Washington, DC 20580. (2) The requirement that the Minneapolis, Minnesota 55480: FOR FURTHER INFORMATION CONTACT: Commission’s decision contain a 1. Norwest Corporation, Minneapolis, Howard Morse, Federal Trade statement of findings of fact and Minnesota; to engage de novo through Commission, 6th and Pennsylvania conclusions of law; its subsidiary, Norwest Financial, Inc., Avenue, NW., S–3627, Washington, DC (3) All rights to seek judicial review Des Moines, Iowa, in the issuance and 20850. (202) 326–2949. or otherwise to challenge or contest the sale at retail of money orders having a Robert Tovsky, Federal Trade validity of the order entered pursuant to face value of not more than $1 thousand Commission, 6th and Pennsylvania this agreement; and through its existing subsidiaries, Avenue, NW, S–3627, Washington, DC (4) Any claim under the Equal Access pursuant to § 225.25(b)(12) of the 20850. (202) 326–2949. to Justice Act. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40221

5. Proposed respondents shall submit, be used in construing the terms of the used in hemodialysis treatment of End within thirty (30) days of the date this order, and no agreement, understanding, Stage Renal Disease to carry waste agreement is signed by proposed representation, or interpretation not materials from the patient’s blood respondents, an initial report signed by contained in the order or the agreement during the treatment. the proposed respondents setting forth may be used to vary or contradict the F. ‘‘Assets and Businesses’’ means in detail the manner in which the terms of the order. assets, properties, businesses, and proposed respondents will comply with 9. Proposed respondents have read goodwill, tangible and intangible, Paragraph II of the order when and if the proposed complaint and order including, without limitation, the entered. Such report will not become contemplated hereby. Proposed following: part of the public record unless and respondents understand that once the 1. All plant facilities, machinery, until the accompanying order is made order has been issued, they will be fixtures, equipment, vehicles, final by the Commission and the required to file one or more compliance transportation and storage facilities, required divestiture accomplished. reports showing that they have fully furniture, tools, supplies, stores, spare 6. This agreement shall not become complied with the order. Proposed parts, and other tangible personal part of the public record of the respondents further understand that property; proceeding unless and until it is they may be liable for civil penalties in 2. All customer lists, vendor lists, accepted by the Commission. If this the amount provided by law for each catalogs, sales promotion literature, agreement is accepted by the violation of the order after it becomes advertising materials, research Commission it, together with the draft of final. materials, technical information, complaint contemplated thereby, will be dedicated management information placed on the public record for a period Order systems, information contained in of sixty (60) days and information in I management information systems, rights respect thereto publicly released. The to software, trademarks, patents and Commission thereafter may either It is ordered that, as used in this patent rights, inventions, trade secrets, withdraw its acceptance of this Order, the following definitions shall technology, know-how, ongoing agreement and so notify the proposed apply: research and development, respondents, in which event it will take A. ‘‘Respondents’’ or ‘‘Fresenius’’ specifications, designs, drawings, such action as it may consider means Fresenius AG and Fresenius processes and quality control data; appropriate, or issue and serve its USA, Inc., their directors, officers, 3. Raw material and finished product complaint (in such form as the employees, agents and representatives, inventories and goods in process; circumstances may require) and their predecessors, successors, and 4. All right, title and interest in and decision, in disposition of the assigns; their subsidiaries, divisions, to real property, together with proceeding. and groups and affiliates controlled by appurtenances, licenses, and permits; 7. This agreement is for settlement Fresenius, and the respective directors, 5. All right, title, and interest in and purposes only and does not constitute officers, employees, agents, to the contracts entered into in the an admission by proposed respondents representatives, successors and assigns ordinary course of business with that the law has been violated as alleged of each; their domestic and foreign customers (other than contracts in in the draft of complaint, or that the parents, and the subsidiaries, divisions, which Hemodialysis Concentrate is sold facts as alleged in the draft complaint, and groups and affiliates controlled by as part of a package of products), other than jurisdictional facts, are true. any other domestic or foreign parent, suppliers, sales representatives, 8. This agreement contemplates that, and the respective directors, officers, distributors, agents, personal property if it is accepted by the Commission, and employees, agents, representatives, lessors, personal property lessees, if such acceptance is not subsequently successors and assigns of each. licensors, licensees, consignors and withdrawn by the Commission pursuant B. ‘‘NMC’’ means National Medical consignees; to the provisions of § 2.34 of the Care, Inc., its directors, officers, 6. All rights under warranties and Commission’s Rules, the Commission employees, agents and representatives, guarantees, express or implied; may, without further notice to the its predecessors, successors, and 7. All separately maintained, as well proposed respondents, (1) issue its assigns; its subsidiaries, divisions, and as relevant portions of not separately complaint corresponding in form and groups and affiliates controlled by NMC, maintained, books, records and files; substance with the draft of complaint and the respective directors, officers, and and its decision containing the employees, agents, representatives, 8. All items of prepaid expense. following order to divest and to cease successors and assigns of each; its G. ‘‘Hemodialysis Business to Be and desist in disposition of the domestic and foreign parents, including Divested’’ means the Fresenius proceeding and (2) make information W.R. Grace & Co., and the subsidiaries, Lewisberry, Pennsylvania Hemodialysis public with respect thereto. When so divisions, and groups and affiliates Manufacturing Facility, and any entered, the order to divest shall have controlled by any other domestic or additional Fresenius Hemodialysis the same force and effect and may be foreign parent, and the respective Concentrate Assets and Businesses (as altered, modified or set aside in the directors, officers, employees, agents, defined) as are necessary to assure the same manner and within the same time representatives, successors and assigns Viability and Competitiveness of the provided by statute for other orders. The of each. Hemodialysis Business to Be Divested order shall become final upon service. C. ‘‘Commission’’ means the Federal in the manufacture, marketing or Delivery by the United States Postal Trade Commission. distribution of Hemodialysis Service of the complaint and decision D. ‘‘NMC Acquisition’’ means the Concentrate. containing the agreed-to order to acquisition by Fresenius AG of NMC H. ‘‘Viability and Competitiveness’’ proposed respondents’ addresses as that is the subject of an Agreement and means that the Hemodialysis stated in this agreement shall constitute Plan of Reorganization entered into on Concentrate Business to Be Divested is service. Proposed respondents waive or about February 4, 1996. capable of functioning independently any right they may have to any other E. ‘‘Hemodialysis Concentrate’’ means and competitively in the Hemodialysis manner of service. The complaint may the acid portion of the dialysate solution Concentrate business in substantially 40222 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices the same manner achieved by Fresenius Divested within four (4) months of Hemodialysis Business to Be Divested, prior to the divestiture. either (i) the date this Order becomes which shall be subject to the prior final, or (ii) the closing of the NMC approval of the Commission. If, II Acquisition, whichever is later, the however, at the end of this twelve (12) It is further ordered that: Commission may appoint a trustee to month period, the trustee has submitted A. Respondents shall, absolutely and divest the Hemodialysis Business to Be a plan of divestiture or believes that in good faith, divest the Hemodialysis Divested pursuant to Paragraph II of this divestiture can be achieved within a Business to Be Divested to Di-Chem, Order. In the event that the Commission reasonable time, the divestiture period Inc. (‘‘Di-Chem’’), within 10 business or the Attorney General brings an action may be extended by the Commission, or, days of either (i) the date this Order is pursuant to § 5(l) of the Federal Trade in the case of a court-appointed trustee, made final, or (ii) the closing of the Commission Act, 15 U.S.C. § 45(l), or by the court. NMC Acquisition, whichever is later, any other statute enforced by the 4. The trustee shall have full and pursuant to and in accordance with the Commission, Respondents shall consent complete access to the personnel, books, May 17, 1996 agreement between to the appointment of a trustee in such records and facilities related to the Fresenius USA, Inc. and Di-Chem action. Neither the appointment of a Hemodialysis Business to Be Divested (‘‘Divestiture Agreement’’). If the terms trustee nor a decision not to appoint a and to any other relevant information as of such Divestiture Agreement are trustee under this Paragraph shall the trustee may reasonably request. changed or supplemented in any way, preclude the Commission or the Respondents shall develop such notice of such changes or Attorney General from seeking civil financial or other information as the supplementations must be provided to penalties or any other relief available to trustee may reasonably request and shall the Commission, and any material it, including a court-appointed trustee, cooperate with the trustee. Respondents changes or supplementations may be pursuant to § 5(l) of the Federal Trade shall take no action to interfere with or made only with the prior approval of Commission Act, or any other statute impede the trustee’s accomplishment of the Commission. In the event that the enforced by the Commission, for any the divestiture. Any delays in Divestiture Agreement is terminated failure by the Respondents to comply divestiture caused by Respondents shall through no fault of Respondents, with this Order. The Commission shall extend the time for divestiture under Respondents shall divest the select the trustee under this Paragraph, this Paragraph in an amount equal to the Hemodialysis Business to Be Divested subject to the consent of Respondents, delay, as determined by the Commission within four (4) months of either (i) the which consent shall not be or, for a court-appointed trustee, by the date this Order is made final, or (ii) the unreasonably withheld. The trustee court. closing of the NMC Acquisition, shall be a person with experience and 5. The trustee shall use his or her best whichever is later, and Respondents expertise in acquisitions, divestitures, efforts to negotiate the most favorable shall also effect such additional and licensing. If Respondents have not price and terms available in each arrangements so as to assure the opposed, in writing, including the contract that is submitted to the Viability and Competitiveness of the reasons for opposing, the selection of Commission, subject to Respondents’ Hemodialysis Business to Be Divested. any proposed trustee within ten (10) absolute and unconditional obligation to Respondents shall divest the days after notice by the staff of the divest at no minimum price. The Hemodialysis Business to Be Divested to Commission to Respondents of the divestiture shall be made in the manner an acquirer that receives the prior identity of any proposed trustee, and to an acquirer as set out in approval of the Commission and only in Respondents shall be deemed to have Paragraph II of this Order; provided a manner that receives the prior consented to the selection of the however, if the trustee receives bona approval of the Commission. proposed trustee. fide offers from more than one acquiring The purpose of the divestiture is to B. If a trustee is appointed by the entity, and if the Commission enable the acquirer to compete in the Commission or a court pursuant to determines to approve more than one manufacture and sale of Hemodialysis Paragraph III.A of this Order, such acquiring entity, the trustee shall Concentrate in the United States and to Respondents shall consent to the divest to the acquiring entity or entities remedy the lessening of competition following terms and conditions selected by Respondents from among resulting from the NMC Acquisition as regarding the trustee’s powers, duties, those approved by the Commission. alleged in the Commission’s Complaint. authority, and responsibilities: 6. The trustee shall serve without B. Pending divestiture of the 1. Subject to the prior approval of the bond or other security at the cost and Hemodialysis Business to Be Divested, Commission and consistent with the expense of Respondents, and on such Respondents shall take such actions as provisions of Paragraph II of this Order, reasonable and customary terms and are necessary to maintain the the trustee shall have the exclusive conditions as the Commission or a court marketability, viability and power and authority to divest the may set. The trustee shall have the competitiveness of the Hemodialysis Hemodialysis Business to Be Divested. authority to employ, at the cost and Business to Be Divested, including, but 2. Within ten (10) days after the expense of Respondents, such not limited to, taking necessary steps to appointment of the trustee, Respondents consultants, accountants, attorneys, ensure that the Lewisberry plant is shall execute a trust agreement that, investment bankers, business brokers, capable of, and has been approved for, subject to the prior approval of the appraisers, and other representatives commercial production, and to prevent Commission, and in the case of a court- and assistants as are reasonably destruction, removal, wasting, appointed trustee, of the court, transfers necessary to carry out the trustee’s deterioration or impairment of the to the trustee all rights and powers duties and responsibilities. The trustee Hemodialysis Business to Be Divested, necessary to permit the trustee to effect shall account for all monies derived other than ordinary wear and tear. the divestiture required by this Order. from the divestiture and all expenses 3. The trustee shall have twelve (12) incurred. After approval by the III months from the date the trust Commission and, in the case of a court- It is further ordered that: agreement described in this Paragraph appointed trustee, by the court, of the A. If Respondents have not divested III.B is approved by the Commission to account of the trustee, including fees for the Hemodialysis Business to Be accomplish the divestiture of the his or her services, all remaining monies Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40223 shall be paid at the direction of the and from such parties, all internal first waiting period, representatives of Respondents, and the trustee’s power memoranda, and all reports and the Commission make a written request shall be terminated. The trustee’s recommendations concerning for additional information, Fresenius compensation shall be based at least in divestiture. shall not consummate the transaction significant part on a commission until twenty (20) days after substantially V arrangement contingent on the trustee’s complying with such request for divesting the Hemodialysis Business to It is further ordered that, for a period additional information. Early Be Divested. of ten (10) years from the date this Order termination of the waiting periods in 7. Respondents shall indemnify the becomes final, Respondents shall cease this paragraph may be requested and, trustee and hold the trustee harmless and desist from acquiring, without Prior where appropriate, granted by letter against any losses, claims, damages, Notification to the Commission (as from the Bureau of Competition. liabilities, or expenses arising out of, or defined below), directly or indirectly, Notwithstanding, Fresenius shall not be in connection with, the performance of through subsidiaries or otherwise, any required to provide Prior Notification to the duties of the trustee, including all assets for manufacturing Hemodialysis the Commission pursuant to this order reasonable fees of counsel and other Concentrate or any Hemodialysis for a transaction for which notification expenses incurred in connection with Concentrate manufacturing facility, that is required to be made, and has been the preparation for, or defense of any have been employed in Hemodialysis made, pursuant to Section 7A of the claim, whether or not resulting in any Concentrate manufacturing in the Clayton Act, 15 U.S.C. § 18a. liability, except to the extent that such United States within one (1) year of the liabilities, losses, damages, claims, or date of an offer by Fresenius to purchase VI expenses result from misfeasance, gross the assets, or any interest in a It is further ordered that until the negligence, willful or wanton acts, or Hemodialysis Concentrate obligations set forth in Paragraphs II, III bad faith by the trustee. manufacturing facility in the United and V are met, Respondents shall notify 8. If the trustee ceases to act or fails States, or any interest in any individual, the Commission at least thirty (30) days to act diligently, a substitute trustee firm, partnership, corporation or other prior to any proposed change in the shall be appointed in the same manner legal or business entity that directly or corporate Respondents such as as provided in Paragraph III.A of this indirectly owns or operates a dissolution, assignment, sale resulting Order. Hemodialysis Concentrate in the emergence of a successor 9. The Commission or, in the case of manufacturing facility in the United corporation, or the creation or States. Provided, however, that this a court-appointed trustee, the court, dissolution of subsidiaries or any other Paragraph V shall not be deemed to may on its own initiative or at the change in the corporations that may require Prior Notification to the request of the trustee issue such affect compliance obligations arising out Commission for (i) the construction of additional orders or directions as may of the Order. be necessary or appropriate to new facilities by Fresenius, (ii) the accomplish the divestiture required by acquisition of new or used equipment in VII the ordinary course of business from a this Order. It is further ordered that Respondents, person other than the acquirer of the 10. The trustee shall have no for the purpose of determining or Hemodialysis Business to Be Divested, obligation or authority to operate or securing compliance with this Order, maintain the Hemodialysis Business to or any other present producer of Hemodialysis Concentrate; or (iii) the and subject to any legally recognized Be Divested. privilege, upon written request and on 11. The trustee shall report in writing purchase or lease by Fresenius of a five days notice to Respondents, shall to Respondents and the Commission facility that has not been operated as a permit any duly authorized every thirty (30) days concerning efforts Hemodialysis Concentrate representative(s) of the Commission: to accomplish the divestiture. manufacturing facility at any time during the year immediately prior to the A. Access, during office hours and in IV purchase or lease by Fresenius. the presence of counsel, to inspect and It is further ordered that: ‘‘Prior Notification to the copy all books, ledgers, accounts, A. Within twenty (20) days after the Commission’’ required by Paragraph V correspondence, memoranda and other date this Order becomes final and every shall be given on the Notification and records and documents in the thirty (30) days thereafter until Report Form set forth in the Appendix possession or under the control of Respondents have fully complied with to Part 803 of Title 16 of the Code of Respondents relating to any matters the provisions of Paragraphs II and III of Federal Regulations, as amended contained in this Order; and this Order, Respondents shall submit to (hereinafter referred to as ‘‘the B. Without restraint or interference the Commission a verified written Notification Form’’), and shall be from Respondents, to interview report setting forth in detail the manner prepared and transmitted in accordance Respondents’ officers, directors, or and form in which they intend to with the requirements of that part, employees, who may have counsel comply, are complying, and have except that no filing fee will be required present, regarding such matters. complied with this Order. Respondents for any such notification, notification Analysis To Aid Public Comment on the shall include in their compliance shall be filed with the Secretary of the Provisionally Accepted Consent Order reports, among other things that are Commission, notification need not be required from time to time, a full made to the United States Department of The Federal Trade Commission (‘‘the description of the efforts being made to Justice, and notification is required only Commission’’) has accepted for public comply with Paragraph II of the Order, of Fresenius and not of any other party comment, from Fresenius AG and including a description of all to the transaction. Fresenius shall Fresenius USA, Inc., an agreement substantive contacts or negotiations for provide the Notification Form to the containing a consent order. This the divestiture and the identity of all Commission at least thirty (30) days agreement has been placed on the parties contacted. Respondents shall prior to consummating any such public record for sixty days for include in their compliance reports transaction (hereinafter referred to as reception of comments from interested copies of all written communications to the ‘‘first waiting period’’). If, within the persons. 40224 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Comments received during this period other assets. The purpose of the HD concentrate consists of various will become part of the public record. proposed divestiture is to create a viable salts (sodium chloride, magnesium After sixty days, the Commission will and competitive producer of chloride, calcium chloride, and again review the agreement and the hemodialysis concentrate and thereby to potassium chloride) and dextrose in comments received and will decide remedy the lessening of competition purified water, with sodium bicarbonate whether it should withdraw from the alleged in the complaint. Di-Chem (i.e., baking soda) added at a later stage. agreement or make final the agreement’s already manufactures and markets other Because this easily formulated mixture order. dialysis products. In addition, Di- does not enter the body and therefore is The Commission’s investigation of Chem’s management has substantial not a ‘‘drug’’ for purposes of Food and this matter concerns the proposed experience in the hemodialysis Drug Administration (‘‘FDA’’) acquisition by Fresenius of the concentrate business and in other regulation, the FDA applies to HD businesses of W.R. Grace & Co. that products used in hemodialysis. Public concentrate the somewhat more lenient comprise National Medical Care, Inc. comments regarding all aspects of the regulations applicable to medical (‘‘NMC’’). The Commission’s proposed proposed divestiture to Di-Chem will be devices. Regulatory delay thus does not complaint alleges that Fresenius and considered along with other comments significantly constrain entry by new NMC compete with each other in on the proposed order. firms or expansion by incumbents. hemodialysis concentrate, a chemical The investigation revealed that Under the terms of the proposed solution that is necessary in various producers of HD concentrate— order, Fresenius must divest the hemodialysis treatment of patients with including Fresenius itself—entered Lewisberry plant to Di- Chem within ten End Stage Renal Disease, or chronic quickly and easily into the manufacture (10) days after the proposed Order is kidney failure. of the product, and some stated that made final by the Commission. If the The agreement containing consent they could inexpensively increase their order would, if finally accepted by the divestiture to Di-Chem is not capacity to make HD concentrate by as Commission, settle charges that the accomplished, then Fresenius must much as 60 percent within 30 days, acquisition may substantially lessen divest the Lewisberry plant within four without substantial investment or the competition in the production and sale (4) months to an acquirer that is need for additional FDA approval.1 of hemodialysis concentrate. The approved by the Commission. If These indicia of cheap and simple entry Commission has reason to believe that Fresenius fails to accomplish the and expansion may explain why the the acquisition agreement violates divestiture, then the Commission may delivered price of HD concentrate has Section 5 of the Federal Trade appoint a trustee to divest the fallen continuously since the product Commission Act and the acquisition Lewisberry plant, along with ancillary first became available.2 would have anticompetitive effects and assets or other arrangements that may be Thus, any assessment of this would violate Section 7 of the Clayton necessary to assure that the Lewisberry acquisition’s potential to increase Act and Section 5 of the Federal Trade plant is capable of being operated concentration in the market for HD Commission Act if consummated, independently and competitively by its concentrate—and in turn make likelier unless an effective remedy eliminates acquirer. The proposed order also an exercise of market power—must take such anticompetitive effects. requires that Fresenius provide prior into account several strongly mitigating The Commission’s Complaint alleges notice to the Commission of future factors, including approximately 40 that hemodialysis concentrate is a acquisitions of either assets used to percent current excess capacity, the necessary product in hemodialysis manufacture hemodialysis concentrate aforementioned ability of manufacturers treatment, and that the use of this or companies that produce hemodialysis to expand capacity speedily and at product would not be significantly concentrate. minimal cost, and the evident ability of affected by a price increase. The The purpose of this analysis is to customers (hemodialysis clinics) to Complaint further alleges that imports invite public comment concerning the integrate into the manufacture of HD of hemodialysis concentrate are small proposed order. This analysis is not concentrate in the event concentrate and, because of high shipping costs, intended to constitute an official producers behave anticompetitively. would not be responsive to a price interpretation of the agreement and Certain customers that speculated that increase in the United States. The order or to modify their terms in any the acquisition might lead to higher market for hemodialysis concentrate in way. prices for HD concentrate appear to the United States is highly concentrated. Donald S. Clark, have been unaware of current plans for In addition, the entry of other producers Secretary. significant entry or capacity expansion is unlikely. The Commission’s by firms other than Fresenius and NMC. Complaint alleges that the proposed Dissenting Statement of Commissioner Moreover, other customer complaints acquisition would lessen competition by Roscoe B. Starek, III eliminating competition between In the Matter of Fresenius AG, et al., File 1 Given the contrast between the time required for Fresenius and NMC, and would make No. 961 0053. entry in the United States and that required in more likely coordinated interaction Germany, it is perhaps unsurprising that the latter among the remaining producers of I cannot join in the Commission’s nation’s Bundeskartellamt concluded that Fresenius’ acquisition of a competitor in HD hemodialysis concentrate, leading to decision to accept a consent agreement concentrate would have anticompetitive effects. higher prices. Company planning for public comment in this matter. The Entry into the German HD concentrate business documents, in fact, project that evidence accumulated in the apparently takes three to five years. In the United ‘‘increased consolidation’’ among investigation is not sufficient to give rise States, entry requires around nine months. 2 It is difficult to accept the proposition that concentrate producers will lead to to reason to believe that respondents’ ‘‘[m]ost of the investment in production would ‘‘stabilization’’ of prices. acquisition of National Medical Care, likely be sunk in the event that entry were The proposed order accepted for Inc. (‘‘NMC’’) from W.R. Grace & Co. is unsuccessful’’ (proposed complaint, ¶ 13). The public comment requires Fresenius to likely to lessen competition equipment used in the manufacture of HD concentrate appears to be adaptable to alternate divest its Lewisberry, Pennsylvania substantially in a United States market uses, and indeed there is evidence of firms planning concentrate manufacturing plant to Di- for hemodialysis concentrate (‘‘HD to convert some HD concentrate facilities to other Chem, Inc. (‘‘Di-Chem’’), along with concentrate’’). purposes. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40225 seem to have been motivated by a fear Federal Trade Commission, 6th and of sixty (60) days and information in that the vertical integration of Fresenius Pennsylvania Avenue, NW, H–374, respect thereto publicly released. The (a manufacturer of kidney dialysis Washington, DC 20850. (202) 326–2845. Commission thereafter may either products) and NMC (an operator of SUPPLEMENTARY INFORMATION: Pursuant withdraw its acceptance of this hemodialysis treatment centers, among to Section 6(f) of the Federal Trade agreement and so notify the Proposed its other businesses) could make the Commission Act, 38 Stat. 721, 15 U.S.C. Respondent, in which event it will take merged firm a stronger competitor in 46 and Section 2.34 of the Commission’s such action as it may consider dialysis treatment. Rules of Practice (16 CFR 2.34), notice appropriate, or issue and serve its It is always tempting to accept the is hereby given that the following complaint (in such form as the ‘‘bird in the hand’’ represented by a consent agreement containing a consent circumstances may require) and consent agreement proffered in the early order to cease and desist, having been decision, in disposition of the stages of an investigation, such as the filed with and accepted, subject to final proceeding. one entered into (apparently without approval, by the Commission, has been significant resistance) by Fresenius. 5. This agreement is for settlement placed on the public record for a period purposes only and does not constitute Nevertheless, when the evidence on of sixty (60) days. Public comment is entry, expansion, and the absence of an admission by Proposed Respondent invited. Such comments or views will that the law has been violated as alleged anticompetitive effects is as clear as in be considered by the Commission and this case, the issuance of a consent order in the draft of complaint, or that the will be available for inspection and facts as alleged in the draft complaint, is unwarranted. copying at its principal office in other than jurisdictional facts, are true. I therefore dissent. accordance with section 4.9(b)(6)(ii) of [FR Doc. 96–19594 Filed 7–31–96; 8:45 am] the Commission’s Rules of Practice (16 6. This agreement contemplates that, BILLING CODE 6750±01±P CFR 4.9(b)(6)(ii)). if it is accepted by the Commission, and The Federal Trade Commission if such acceptance is not subsequently (‘‘Commission’’) having initiated an withdrawn by the Commission pursuant [File No. 901±0061] investigation of certain acts and to the provisions of § 2.34 of the Commission’s Rules, the Commission Hale Products, Inc.; Proposed Consent practices of Hale Products, Inc., Agreement With Analysis To Aid (sometimes referred to as ‘‘Proposed may, without further notice to Proposed Public Comment Respondent’’ or ‘‘Hale Products’’), and it Respondent, (1) issue its complaint now appearing that Proposed corresponding in form and substance AGENCY: Federal Trade Commission. Respondent is willing to enter into an with the draft of complaint and its ACTION: Proposed Consent Agreement. Agreement containing an Order to Cease decision containing the following order and Desist from the use of the acts and to cease and desist in disposition of the SUMMARY: In settlement of alleged practices being investigated, proceeding and (2) make information violations of federal law prohibiting It is hereby agreed by and between public in respect thereto. When so unfair or deceptive acts or practices and Proposed Respondent, by its duly entered, the order to cease and desist unfair methods of competition, this authorized officers, and their attorneys, shall have the same force and effect and consent agreement, accepted subject to and counsel for the Commission that: may be altered, modified or set aside in final Commission approval, would 1. Proposed Respondent Hale the same manner and within the same prohibit, among other things, the Products Company, Inc., is a time provided by statute for other Conshohocken, Pennsylvania-based corporation organized, existing, and orders. The order shall become final manufacturer of fire pumps for fire doing business under and by virtue of upon service. Delivery by the U.S. trucks from entering into, continuing, or the laws of the Commonwealth of Postal Service of the complaint and enforcing any requirement that fire Pennsylvania. Its principal place of truck manufacturers refrain from decision containing the agreed-to order business is 700 Spring Mill Avenue, to Proposed Respondent’s addresses as purchasing mid-ship mounted fire Conshohocken, Pennsylvania 19248. pumps from any company, or that they stated in this agreement shall constitute 2. Proposed Respondent admits all the service. Proposed Respondent waives purchase or sell only Hale’s pumps. The jurisdictional facts set forth in the draft consent agreement settles allegations any right it may have to any other of complaint. manner of service. The complaint may that Hale and Waterous Company, Inc., 3. Proposed Respondent waives: which together account for 90 percent of be used in construing the terms of the (a) Any further procedural steps; order, and no agreement, understanding, the market, sold their pumps on an (b) The requirement that the exclusive basis to fire truck representation or interpretation not Commission’s decision contain a contained in the order or the agreement manufacturers and that this arrangement statement of findings of fact and allowed the two companies to allocate may be used to vary or contradict the conclusions of law; terms of the order. the customers each would serve and (c) All rights to seek judicial review made it more difficult for other pump or otherwise to challenge or contest the 7. Proposed Respondent has read the makers to enter the market. validity of the order entered pursuant to proposed complaint and order DATES: Comments must be received on this agreement; and contemplated hereby. Proposed or before September 30, 1996. (d) Any claim under the Equal Access Respondent understands that once the ADDRESSES: Comments should be to Justice Act. order has been issued, it will be directed to: FTC/Office of the Secretary, 4. This agreement shall not become required to file one or more compliance Room 159, 6th St. and Pa. Ave., N.W., part of the public record of the reports showing that it has fully Washington, D.C. 20580. proceeding unless and until it is complied with the order. Proposed FOR FURTHER INFORMATION CONTACT: accepted by the Commission. If this Respondent further understands that it William Baer, Federal Trade agreement is accepted by the may be liable for civil penalties in the Commission, 6th and Pennsylvania Commission it, together with the draft of amount provided by law for each Avenue, NW, H–374, Washington, DC complaint contemplated thereby, will be violation of the order after it becomes 20850. (202) 326–2932. Mark Whitener, placed on the public record for a period final. 40226 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Order this Order with the complaint, and a agreed that it will not refuse to sell, or copy of the notice set out in Appendix refuse to contract to sell, Mid-Ship I A: Mounted Fire Pumps on the grounds It is ordered that, as used in this (a) within thirty (30) days after the that an OEM refuses to sell Hale pumps Order, the following definitions shall date this Order becomes final, one exclusively. The Order does not prohibit apply: notice to each OEM to whom it sold a OEMs from purchasing only Hale Mid- (a) ‘‘Respondent Hale Products’’ Mid-Ship Mounted Fire Pump at any Ship Mounted Fire Pumps if, in the means (1) Hale Products, Inc.; (2) its time during the two (2) years prior to OEM’s sole discretion, it deems it predecessors, subsidiaries, divisions, the date this order becomes final; and advisable. Moreover, Hale retains the and groups and affiliates controlled by (b) for a period of three (3) years after right to refuse to sell Mid-Ship Mounted Hale Products, Inc., and their successors the date this Order becomes final, to Fire Pumps to any OEM for lawful and assigns; (3) all companies or entities each OEM not covered by sub-paragraph reasons. The Type of Pump You Use is that any parent of Hale Products, Inc., (a) above to whom it provides a price Your Business, and You Are Free to creates in the future and that engage in list for or a price quotation on a Mid- Offer and Install Competing Pumps as the manufacture or sale of Mid-Ship Ship Mounted Fire Pump. Such notice Alternatives to Hale Pumps. Mounted Fire Pumps, or Hale’s parent if shall accompany the price list or price * * * * * it engages in the manufacture or sale of quotation, or in the case of telephone Mid-Ship Mounted Fire Pumps; (4) the quotations shall be delivered as soon as Analysis of Proposed Consent Order To respective directors, officers, employees, practical after such quotation, and need Aid Public Comment agents and representatives of any of the only be provided once to each OEM not The Federal Trade Commission has entities described in subparagraphs (1), covered by sub-paragraph (a) above. accepted an agreement to a proposed (2) and (3) above. consent order, subject to final approval, (b) ‘‘Mid-Ship Mounted Fire Pumps’’ IV from Hale Products, Inc. are truck mounted fire pumps that meet It is further ordered that Respondent The proposed consent order has been the National Fire Protection Association Hale Products shall file with the placed on the public record for sixty Standard for Pumper Fire Apparatus Commission within sixty (60) days after (60) days for reception of comments by known as ‘‘NFPA 1901.’’ the date this order becomes final, and interested persons. Comments received (c) ‘‘Commission’’ means the Federal annually on the anniversary of the date during this period will become part of Trade Commission. this order becomes final for each of the the public record. After sixty (60) days, (d) ‘‘OEM’s’’ are original equipment three (3) years thereafter, a report, in the Commission will decide whether it manufacturers who buy and install Mid- writing, signed by the Respondent, should withdraw from the agreement or Ship Mounted Fire Pumps, as well as setting forth in detail the manner and make final the agreement’s proposed many other components, into a final fire form in which it has complied and is order. truck. OEM’s then sell the trucks to fire complying with this order. departments in the United States. The Complaint V The complaint prepared for issuance II It is further ordered that Respondent along with the proposed order alleges It is further ordered that Respondent shall notify the Commission at least that the proposed respondent violated Hale Products, directly or through any thirty (30) days prior to any proposed Section 5 of the Federal Trade corporation, subsidiary, division, or change in the corporate respondent, Commission Act by maintaining other device, including franchisees or such as dissolution, assignment or sale exclusive dealing arrangements with its licensees, in connection with the resulting in the emergence of a customers—manufacturers of municipal offering for sale or sale of any Mid-Ship successor corporation, or the creation or fire trucks. Mounted Fire Pump in or affecting dissolution of subsidiaries or any other The complaint alleges that respondent commerce, as ‘‘commerce’’ is defined in change in the corporation that may Hale Products and Waterous Company the Federal Trade Commission Act, does affect compliance obligations arising out are the two largest manufacturers of forthwith cease and desist from entering of this order. Such notification shall be mid-ship mounted fire pumps (‘‘fire into, continuing, or enforcing any at least thirty (30) days in cases not pumps’’) sold in the United States. condition, agreement or understanding subject to the notification provisions of Together, respondent Hale Products and with any OEM that such OEM will the Hart-Scott-Rodino Antitrust Waterous account for close to or more refrain from the purchase or sale of Mid- Improvements Act of 1976, 15 U.S.C. than ninety (90) percent of the fire Ship Mounted Fire Pumps of any § 18a, and at least ten (10) days in the pump market in the United States. manufacturer, or will purchase or sell case of transactions subject to the Except to the extent that competition Mid-Ship Mounted Fire Pumps of only notification provisions of the Hart-Scott- has been restrained as alleged in the Respondent Hale Products; provided Rodino Act. complaint, respondent Hale Products however, that nothing in this Order and Waterous have been and are now in shall prohibit any price differentials that VI competition among themselves and with make only due allowance for It is further ordered that this order other fire pump manufacturers in the differentials in the cost of manufacture, shall terminate twenty (20) years from United States. sale, or delivery resulting from the the date this order becomes final. The complaint alleges that, for over differing methods or quantities in which fifty (50) years and until approximately Mid- Ship Mounted Fire Pumps are sold Appendix A 1991, both respondent Hale Products or delivered, or that are otherwise [Hale Products’ Letterhead] and Waterous maintained exclusive lawful under the provisions of the dealing arrangements. Each sold fire PLEASE READ THIS Robinson-Patman Act, 15 U.S.C. § 13. pumps to its customers on the condition Enclosed with this notice is a copy of or understanding that such customers III a Consent Order agreed to between the would deal in its pumps exclusively, or It is further ordered that Respondent Federal Trade Commission and Hale that such customers would refrain from Hale Products shall provide a copy of Products, Inc. In the Order, Hale has buying and selling pumps made by the Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40227 other. The complaint, and a companion which it has complied and is complying because of the difficulty of detecting complaint against Waterous, further with the terms of the order. Such reports cheating. (p.2) We agree that allege that both companies believed that are due within sixty (60) days after the maintaining collusion requires the continued exclusive dealing by the two order becomes final, and for three (3) ability to detect and discipline cheating. companies would tend to exclude years annually on the anniversary of the But here that methodology was simple: competitors from the market, and that date the order becomes final. if a fire engine manufacturer used an continued exclusive dealing, if Respondent Hale Products must also alternative pump it would be readily maintained by both companies, would notify the Commission at least thirty identified. Moreover, the fact that the tend to reduce competition between (30) days prior to any proposed change customer allocation through exclusive them over price and over non-price in the corporate respondent, such as dealing was maintained over almost five terms, such as quality differences and dissolution, assignment, or sale decades suggests that there was an delivery times. Consequently, both resulting in the emergence of a effective method for enforcing the continued to maintain and to enforce successor corporation. In cases subject exclusive dealing arrangements. exclusive dealing policies. to the provisions of the Hart-Scott- Third, Commissioner Starek observes The complaint alleges that, under Rodino Act, however, such prior that instability at the truck these circumstances, respondent’s notification may be made at least ten manufacturing stage (i.e., changes in exclusive dealing agreements violated (10) days prior to the proposed change. market share) may lead to the demise of Section 5 of the Federal Trade Finally, the proposed consent provides Commission Act. Specifically, the any customer allocation agreement with that the order will terminate respect to a component. We agree that complaint alleges that exclusive dealing automatically twenty (20) years after the substantially reduced competition in the might be the case where a very large date it becomes final. portion of a pump manufacturer’s sales sale and marketing of fire pumps by The purpose of this analysis is to facilitating an allocation of customers were tied to a single truck manufacturer. facilitate public comment on the Here, however, the arrangements were between respondent Hale and Waterous, proposed order, and it is not intended and by excluding or tending to exclude durable; the fact is that instability to constitute an official interpretation of among truck manufacturers did not other actual or potential manufacturers the agreement and proposed order or to of fire pumps from the market. deter the effectiveness of these modify in any way their terms. agreements. Facilitating coordinated interaction, and Donald S. Clark, raising entry barriers that exclude Finally, Commissioner Starek suggests Secretary. competition, are two ways that that the arrangements did not foreclose exclusive dealing restraints can be Separate Statement of Chairman new entry because they were not really anticompetitive. See Beltone Electronics Pitofsky, and Commissioners Varney exclusive. He relies on the fact that Corp., 100 F.T.C. 68, 207 (1982). and Steiger some OEMs were willing to install the pumps of a third manufacturer at The Proposed Consent Order In the Matter of Waterous Company, Inc./ Hale Products, Inc. File No. 901–0061. customers’ request. (p.3) The fact that The proposed consent order would the exclusive policy was not perfect and prohibit respondent Hale Products from We write separately to respond to that some truck manufacturers may have entering into, continuing, or enforcing some of the concerns raised in offered the pumps of a third pump any condition, agreement, or Commissioner Starek’s dissent. manufacturer, accounting for a very understanding with any fire truck First, we cannot concur with small share of pump sales, did not have manufacturer that such manufacturer Commissioner Starek’s suggestion that, a significant effect on competition at the will refrain from the purchase or sale of for customer allocation of a component pump level. The key to competition in any other manufacturer’s fire pumps. product to work, the participants must this market was the competitive The proposed order, however, would be able to allocate the ultimate positions of Hale and Waterous, which allow certain lawful discounts such as customers of the finished product (p.1). together account for more than 90% of volume discounts that do not run afoul There will be situations where the market. The evidence establishes of the provisions of the Robinson- downstream competition will that Hale and Waterous understood that Patman Act. undermine a customer allocation as long as both firms maintained the The proposed consent order would scheme of a component of a final good. exclusive dealing arrangements, also require respondent Hale Products For example, that might be the case competition between them would be to notify its customers of the terms of where the component is a significant diminished, prices would be higher and the order. Specifically, the proposed part of the cost of the final product, or entry would be more difficult. That is in consent would require respondent Hale where the ultimate consumers have a fact how things worked in this industry Products to send a copy of the order to much stronger preference for the for several decades, and those are the each fire truck manufacturer it sold a component than the ultimate good. anticompetitive effects that the pump to during the two (2) years prior None of those conditions was present Commission’s orders are intended to to the entry of the order; for three (3) in this case. Fire truck buyers make address. years after the order is entered, purchase decisions primarily on the respondent Hale Products must send a basis of truck brand, the pump price is Dissenting Statement of Commissioner copy of the order to each new customer only a small part of the final purchase Mary L. Azcuenaga to whom it provides a price list or a price, and pump features are only a In the Matter of Waterous Company, Inc./ price quotation. The order would also small part of the entire truck package. Hale Products, Inc., File No. 901–0061. require notification to such customers Evidence of relatively high profits at the that respondent will not restrict the component level supports this I generally endorse the views brand of pumps they may use. interpretation. expressed by Commissioner Starek in The proposed consent order would Second, Commissioner Starek his dissenting statement. The evidence also require respondent Hale Products suggests that these exclusive dealing does not in my view suggest a market to file with the Commission compliance arrangements would not increase the in which competition has been reports setting forth the manner in likelihood of successful collusion unlawfully restrained, and I do not find 40228 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices reason to believe that the law has been or more OEMs—or even outright vertical The difficulty of maintaining violated. integration between the pump producer coordination is exacerbated if there is and one or more OEMs—does not allow substantial market share volatility Dissenting Statement of Commissioner the pump producer to raise prices Roscoe B. Starek, III among the affiliated customers for anticompetitively. Under the reasons unrelated to the pumps. Such In the Matter of Waterous Company, Inc./ Commission’s theory of competitive volatility makes it difficult for a pump Hale Products, Inc. File No. 901 0061. harm, Waterous and Hale ‘‘allocate maker to infer whether a sales loss I respectfully dissent from the customers’’ in lieu of trying to enter into stems from secret pump price Commission’s decision to accept direct pump price agreements that concessions or from some other cause. consent agreements with Waterous presumably would break down under Moreover, if the fortunes of buyers Company, Inc., and Hale Products, Inc., each party’s incentives to undercut the (here, fire truck OEMs) are expected to two producers of midship-mounted collusive price. In other words, the differ over time—some flagging, others pumps for fire trucks. The proposed pump makers’ ‘‘customer allocation’’ flourishing—the utility of customer complaints claim anticompetitive effects scheme solves this instability problem. allocation as a long-run aid to collusion arising from alleged exclusive dealing However, unless Waterous and Hale appears questionable. The pump also agree not to compete against one arrangements between each proposed producer with the misfortune to have another for the patronage of the fire respondent and its direct customers, the affiliated with unsuccessful buyers will departments—i.e., unless they original equipment manufacturers of fire have still greater incentives to depart collusively allocate fire departments trucks (‘‘OEMs’’), in violation of Section from the collusive scheme. In this 5 of the Federal Trade Commission Act, between themselves—each pump maker retains its incentive to take business regard, the fire truck OEM market 15 U.S.C. section 45. I am unpersuaded witnessed substantial turnover during that the arrangements between proposed from its rival through price cuts. Absent allocation of fire department customers, the period in which the allegedly respondents and their customers can be 4 one should expect the same sort of exclusive agreements were in force. characterized accurately as ‘‘exclusive.’’ Thus, even if one could overcome the More important, however, there is no ‘‘cheating,’’ with the equivalent competitive result, that the Commission defect in the Commission’s collusive sound theoretical or empirical basis for believes frustrated direct collusion theory, these other factors would believing that these relationships, even between Waterous and Hale.1 continue to cast substantial doubt upon if exclusive, harmed competition; in 5 Thus, it is implausible that ‘‘exclusive this theory’s applicability. fact, there are good reasons to believe dealing’’ arrangements between the The Commission’s second theory of the contrary. In any event, even if one proposed respondents and their OEMs assumes arguendo the validity of the harm alleges that exclusive increase the likelihood of successful arrangements between pump makers theories of anticompetitive effects, the collusion between Waterous and Hale. proposed orders are unlikely to remedy and OEMs have created a barrier to the Indeed, there are compelling reasons entry of new pump manufacturers, those alleged effects. why such an arrangement might The complaints allege, inter alia, that thereby allowing the incumbent pump actually reduce this likelihood. sellers to set and maintain the arrangements between Waterous, Maintaining collusion requires the Hale, and their OEM customers reduce supracompetitive prices. Although the reasonably accurate identification and vertical section of the 1984 Merger competition in two ways—by punishment of cheating.2 If Waterous facilitating an allocation of customers and Hale bid directly and repeatedly for between Waterous and Hale, and by prices to its own customers, which consequently OEM business, cheating might be allows those customers to take business from OEMs creating a barrier to the entry of new inferable from one firm’s loss of a pump affiliated with the rival pump brand. This form of pump manufacturers. The first theory sale to its rival. On the other hand, cheating is extremely difficult to detect, because an posits that Waterous and Hale wish to when Waterous and Hale compete OEM’s capture of sales from a rival OEM could be set the prices of their fire pumps indirectly—i.e., when, as here, their attributable to many reasons other than a reduced collusively but find themselves unable pump price. affiliated OEMs submit bids to a fire 4 For example, just since 1990, at least four major to reach and maintain a direct department incorporating not merely OEMs—Grumman, Mack, FMC, and Beck—have agreement on price. Under this the pump price but rather the prices of exited the market. This period also witnessed entry hypothesis, in order to achieve collusive all of the truck’s components—it will be by such OEMs as Firewolf and Becker. As discussed pricing without a direct agreement on below, substantial entry into and exit from the OEM more difficult for a pump maker to market also bear on the applicability of the prices, Waterous and Hale have entered determine whether a loss of business is proposed complaints’ second theory of competitive into a de facto agreement to allocate fire attributable to price-cutting by the rival harm (entry deterrence). truck OEMs between themselves. That pump maker or to reductions in the 5 With regard to the pump makers’ ostensibly high agreement, combined with an agreement 3 accounting profits, antitrust economists no longer prices of other components. consider accounting profits as a reliable indicator not to bid for each other’s OEM of high economic profits (which can themselves be business, makes each pump maker a 1 The majority’s assertion that pump prices and as consistent with superior efficiency as with monopolist with respect to its OEMs. As pump brands are relatively unimportant to final collusion). Fisher and McGowan, ‘‘On the Misuse monopolists, it is argued, the pump consumers (i.e., fire departments) is inconsistent of Accounting Rates of Return to Infer Monopoly with the events that triggered this investigation— Profits,’’ 73 Am. Econ. Rev. 82 (1983). Moreover, manufacturers are able to set namely, complaints from OEMs that they suffered concerning the longevity of the arrangements supracompetitive prices. significant competitive harm from their alleged between pump makers and OEMs, that factor This theory is fatally flawed. For a inability to offer multiple pump brands. It is hard testifies only to their profitability; it does not customer allocation scheme to allow to reconcile those complaints with the majority’s distinguish between anticompetitive and claimed end-user indifference to pump brands. procompetitive (or competitively neutral) Waterous and Hale to set 2 See, e.g., Stigler, ‘‘A Theory of Oligopoly,’’ 72 explanations for their use. Indeed, the asserted supracompetitive prices, it necessarily J. Pol. Econ. 44 (1964), reprinted in THE instability of OEMs’ market shares lends greater must entail the allocation of the final ORGANIZATION OF INDUSTRY, ch. 5 (1968). credence to an efficiency explanation: one would customers—the fire departments— 3 The majority appears to have misunderstood my not expect the parties to an efficient exclusive between the two pump makers. Absent point with regard to the detection of cheating. By dealing arrangement to abandon it simply because ‘‘cheating,’’ I am not referring to an effort by, say, a customer loses market share, while (as I have such an allocation, an exclusive dealing Hale to sell to Waterous OEMs (or vice-versa). explained above) the same cannot be said of an contract between a pump maker and one Rather, I refer to Hale’s hidden reduction in pump anticompetitive arrangement. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40229

Guidelines 6 is not cited explicitly, the many OEMs have tended to deal service (e.g., faster delivery times) than theory here appears to have been drawn principally with only one pump their non-exclusive rivals receive. from those Guidelines. That analysis maker—a fact, I note in passing, that is I cannot endorse an ineffective focuses on a market in which, but for as consistent with an efficiency remedy for a nonexistent harm. ease of entry, conditions are favorable to rationale for exclusivity as it is with an [FR Doc. 96–19593 Filed 7–31–96; 8:45 am] the exercise of market power, and asks anticompetitive theory—several larger whether a vertical merger (or, in the OEMs affiliated with Waterous and Hale BILLING CODE 6750±01±P current case, vertical integration have expressed a willingness to install through contract) might reduce entry so another manufacturer’s pumps at [File No. 901±0061] that market power could be exercised.7 customers’ request. Indeed, several Although this effect might occur in OEMs—including at least one of the Waterous Company, Inc.; Proposed some settings, in this case I find the largest ones affiliated with Hale—have Consent Agreement With Analysis To evidence to support invoking this theory installed another competitor’s pumps, Aid Public Comment tenuous at best. The Commission’s and this investigation produced no complaints apparently rest on the evidence to suggest that any dealer was AGENCY: Federal Trade Commission. difficulty allegedly experienced by terminated for selling that firm’s pumps. ACTION: Proposed consent agreement. another pump maker in obtaining the In any case, however, even if OEM SUMMARY: patronage of OEMs.8 An alternative exclusivity could be convincingly In settlement of alleged explanation for that firm’s failure to demonstrated, it should be clear from violations of federal law prohibiting achieve a larger market share is that fire the discussion above that a great deal unfair or deceptive acts or practices and departments find its pumps more is required to prove that the unfair methods of competition, this significantly less attractive than those of exclusive arrangements had consent agreement, accepted subject to Hale and Waterous for reasons unrelated anticompetitive effects.10 The evidence final Commission approval, would to the pump makers’ distribution on the competitive effects of existing prohibit, among other things, the St. policies. The evidence adduced by the arrangements between pump makers Paul-based manufacturer of fire pumps staff is far from sufficient to establish and OEMs is as consistent with the view for fire trucks from entering into, that this firm, or any other actual or that the arrangements induce greater continuing, or enforcing any potential competitor, was efficiency in the production and requirement that fire truck anticompetitively excluded from selling marketing of pumps as it is with a manufacturers refrain from purchasing pumps to OEMs.9 market power theory. mid-ship mounted fire pumps from any In addition to the weaknesses in the I am therefore unpersuaded that company, or that they purchase or sell anticompetitive theories outlined above, respondents’ distribution policies have only Waterous’s pumps. The consent a factual problem plagues this case: harmed competition in any relevant agreement settles allegations that evidence gathered in the investigation market. Even had I concluded Waterous and Hale Products, Inc., calls into question whether Waterous’s otherwise, however, I would not which together account for 90 percent of and Hale’s relationships with their endorse the proposed consent orders, the market, sold their pumps on an respective OEM customers can even be which require each respondent to cease exclusive basis to fire truck characterized as ‘‘exclusive.’’ Although and desist from requiring OEM manufacturers and that this arrangement exclusivity as a condition of sale. As I allowed the two companies to allocate 6 U.S. Department of Justice, Merger Guidelines, have noted elsewhere,11 the problems the customers each would serve and § 4.2 (1984), 4 Trade Reg. Rep. (CCH) ¶13,103. with remedies of this sort are made it more difficult for other pump 7 The 1984 Merger Guidelines (§ 4.21) identify 12 makers to enter the market. three necessary but not sufficient conditions for this significant. A formal ban on exclusive problem to exist. First, the market in which power dealing accomplishes little if DATES: Comments must be received on would be exercised (the ‘‘primary’’ market) must be respondents have alternative means or before September 30, 1996. sufficiently conducive to anticompetitive behavior available to achieve the same end. One that the impact of vertical integration in reducing ADDRESSES: Comments should be entry would allow such behavior to occur. Second, readily available method in this case, directed to: FTC/Office of the Secretary, the degree of vertical integration subsequent to the fully consistent with the terms of the Room 159, 6th St. and Pa. Ave., N.W., merger must be so extensive that an entrant into the proposed orders, would be to establish Washington, D.C. 20580. primary market would also have to enter the other a set of quantity discounts providing a market (the ‘‘secondary’’ market). If substantial FOR FURTHER INFORMATION CONTACT: unintegrated capacity remains in the secondary customer with substantial financial incentives to procure all of its pumps William Baer, Federal Trade market after the vertical merger, it is less likely that Commission, 6th and Pennsylvania the merger will facilitate an anticompetitive from a single seller. Moreover, nothing outcome. Third, the requirement that a firm enter in the orders would prevent a pump Avenue, NW, H–374, Washington, DC both the primary and secondary markets—rather manufacturer from unilaterally refusing 20850. (202) 326–2932. Mark Whitener, than just the primary market—must make entry into Federal Trade Commission, 6th and the primary market significantly more difficult and to sell to an OEM so long as the refusal therefore less likely to occur. 4 Trade Reg. Rep. was not conditioned on a promise of Pennsylvania Avenue, NW, H–374, (CCH) ¶13,103 at 20,565–66; see also Blair and exclusivity. Another possible method Washington, DC 20850. (202) 326–2845. Kaserman, LAW AND ECONOMICS OF VERTICAL SUPPLEMENTARY INFORMATION: Pursuant INTEGRATION AND CONTROL 152 (1983). would be to give exclusive OEMs better 8 The evidence supporting the Commission’s to Section 6(f) of the Federal Trade entry-deterrence theory appears to consist of that 10 Cf. Continental T.V., Inc. v. GTE Sylvania Inc., Commission Act, 38 Stat. 721, 15 U.S.C. producer’s experience in trying to erode OEMs’ 433 U.S. 36, 58–59 (1977) (plaintiff must 46 and section 2.34 of the Commission’s preferences for Waterous and Hale pumps. demonstrate anticompetitive effects and defendant’s Rules of Practice (16 CFR 2.34), notice 9 market power when challenging vertical restraints). The majority’s assertion with respect to the is hereby given that the following entry-deterring effects of the arrangements is simply 11 Dissenting Statement of Commissioner Roscoe that—an assertion. All of the evidence gathered in B. Starek, III, in Silicon Graphics, Inc., Docket No. consent agreement containing a consent this investigation is easily reconciled with an C–3626. order to cease and desist, having been efficiency rationale for the challenged arrangements 12 For a discussion of why nondiscrimination filed with and accepted, subject to final between pump makers and OEMs. In this market, remedies are problematic, see Brennan, ‘‘Why approval, by the Commission, has been as in any other, superior efficiency on the part of regulated firms should be kept out of unregulated incumbents is a powerful entry deterrent. It is not markets: understanding the divestiture in United placed on the public record for a period an antitrust violation. States v. AT&T,’’ 32 Antitrust Bull. 741 (1987). of sixty (60) days. Public comment is 40230 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices invited. Such comments or views will 5. This agreement is for settlement future and that engage in the be considered by the Commission and purposes only and does not constitute manufacture or sale of Mid-Ship will be available for inspection and an admission by Proposed Respondent Mounted Fire Pumps, or Waterous’ copying at its principal office in that the law has been violated as alleged parent if it engages in the manufacture accordance with section 4.9(b) (6) (ii) of in the draft of complaint, or that the or sale of Mid-Ship Mounted Fire the Commission’s Rules of Practice (16 facts as alleged in the draft complaint, Pumps; (4) the respective directors, CFR 4.9(b) (6) (ii)). other than jurisdictional facts, are true. officers, employees, agents and 6. This agreement contemplates that, representatives of any of the entities Agreement Containing Consent Order if it is accepted by the Commission, and described in subparagraphs (1), (2) and To Cease and Desist if such acceptance is not subsequently (3) above. The Federal Trade Commission withdrawn by the Commission pursuant (b) ‘‘Mid-Ship Mounted Fire Pumps’’ (‘‘Commission’’) having initiated an to the provisions of § 2.34 of the are truck mounted fire pumps that meet investigation of certain acts and Commission’s Rules, the Commission the National Fire Protection Association practices of Waterous Company, Inc., may, without further notice to Proposed Standard for Pumper Fire Apparatus (sometimes referred to as ‘‘Proposed Respondent, (1) issue its complaint known as ‘‘NFPA 1901.’’ Respondent’’ or ‘‘Waterous’’), and it corresponding in form and substance (c) ‘‘Commission’’ means the Federal now appearing that Proposed with the draft of complaint and its Trade Commission. Respondent is willing to enter into an decision containing the following order (d) ‘‘OEM’s’’ are original equipment Agreement containing an Order to Cease to cease and desist in disposition of the manufacturers who buy and install Mid- and Desist from the use of the acts and proceeding and (2) make information Ship Mounted Fire Pumps, as well as practices being investigated, public in respect thereto. When so many other components, into a final fire It is hereby agreed by and between entered, the order to cease and desist truck. OEM’s then sell the trucks to fire Proposed Respondent, by its duly shall have the same force and effect and departments in the United States. authorized officers, and their attorneys, may be altered, modified or set aside in II and counsel for the Commission that: the same manner and within the same 1. Proposed Respondent Waterous time provided by statute for other It Is Further Ordered that Respondent Company, Inc., is a corporation orders. The order shall become final Waterous, directly or through any organized, existing, and doing business upon service. Delivery by the U.S. corporation, subsidiary, division, or under and by virtue of the laws of the Postal Service of the complaint and other device, including franchisees or State of Minnesota. Its principal place of decision containing the agreed-to order licensees, in connection with the business is 300 John E. Carroll Avenue to Proposed Respondent’s addresses as offering for sale or sale of any Mid-Ship East, South Saint Paul, Minnesota stated in this agreement shall constitute Mounted Fire Pump in or affecting 55075. service. Proposed Respondent waives commerce, as ‘‘commerce’’ is defined in the Federal Trade Commission Act, does 2. Proposed Respondent admits all the any right it may have to any other forthwith cease and desist from entering jurisdictional facts set forth in the draft manner of service. The complaint may into, continuing, or enforcing any of complaint. be used in construing the terms of the condition, agreement or understanding 3. Proposed Respondent waives: order, and no agreement, understanding, with any OEM that such OEM will (a) Any further procedural steps; representation or interpretation not refrain from the purchase or sale of Mid- (b) The requirement that the contained in the order or the agreement may be used to vary or contradict the Ship Mounted Fire Pumps of any Commission’s decision contain a manufacturer, or will purchase or sell statement of findings of fact and terms of the order. 7. Proposed Respondent has read the Mid-Ship Mounted Fire Pumps of only conclusions of law; Respondent Waterous; provided (c) All rights to seek judicial review proposed complaint and order contemplated hereby. Proposed however, that nothing in this Order or otherwise to challenge or contest the shall prohibit any price differentials that validity of the order entered pursuant to Respondent understands that once the order has been issued, it will be make only due allowance for differences this agreement; and in the cost of manufacture, sale, or (d) Any claim under the Equal Access required to file one or more compliance reports showing that it has fully delivery resulting from the differing to Justice Act. methods or quantities in which Mid- 4. This agreement shall not become complied with the order. Proposed Respondent further understands that it Ship Mounted Fire Pumps are sold or part of the public record of the delivered, or that are otherwise lawful proceeding unless and until it is may be liable for civil penalties in the amount provided by law for each under the provisions of the Robinson- accepted by the Commission. If this Patman Act, 15 U.S.C. § 13. agreement is accepted by the violation of the order after it becomes Commission it, together with the draft of final. III complaint contemplated thereby, will be Order It Is Further Ordered that Respondent placed on the public record for a period Waterous shall provide a copy of this I of sixty (60) days and information in Order with the complaint, and a copy of respect thereto publicly released. The It Is Ordered that, as used in this the notice set out in Appendix A: Commission thereafter may either Order, the following definitions shall (a) within thirty (30) days after the withdraw its acceptance of this apply: date this Order becomes final, one agreement and so notify the Proposed (a) ‘‘Respondent Waterous’’ means (1) notice to each OEM to whom it sold a Respondent, in which event it will take Waterous Company, Inc.; (2) its Mid-Ship Mounted Fire Pump at any such action as it may consider predecessors, subsidiaries, divisions, time during the two (2) years prior to appropriate, or issue and serve its and groups and affiliates controlled by the date this order becomes final; and complaint (in such form as the Waterous Company, Inc., and their (b) for a period of three (3) years after circumstances may require) and successors and assigns; (3) all the date this Order becomes final, to decision, in disposition of the companies or entities that any parent of each OEM not covered by sub-paragraph proceeding. Waterous Company, Inc., creates in the (a) above to whom it provides a price Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40231 list for or a price quotation on a Mid- YOUR BUSINESS, AND YOU ARE continued to maintain and to enforce Ship Mounted Fire Pump. Such notice FREE TO OFFER AND INSTALL exclusive dealing policies. shall accompany the price list or price COMPETING PUMPS AS The complaint alleges that, under quotation, or in the case of telephone ALTERNATIVES TO WATEROUS these circumstances, respondent’s quotations shall be delivered as soon as PUMPS. exclusive dealing agreements violated practical after such quotation, and need Section 5 of the Federal Trade Analysis of Proposed Consent Order To Commission Act. Specifically, the only be provided once to each OEM not Aid Public Comment covered by sub-paragraph (a) above. complaint alleges that exclusive dealing The Federal Trade Commission has substantially reduced competition in the IV accepted an agreement to a proposed sale and marketing of fire pumps by It Is Further Ordered that Respondent consent order, subject to final approval, facilitating an allocation of customers Waterous shall file with the from Waterous Company, Inc. between respondent Waterous and Hale Commission within sixty (60) days after The proposed consent order has been Products, and by excluding or tending the date this order becomes final, and placed on the public record for sixty to exclude other actual or potential annually on the anniversary of the date (60) days for reception of comments by manufacturers of fire pumps from the this order becomes final for each of the interested persons. Comments received market. Facilitating coordinated three (3) years thereafter, a report, in during this period will become part of interaction, and raising entry barriers writing, signed by the Respondent, the public record. After sixty (60) days, that exclude competition, are two ways setting forth in detail the manner and the Commission will decide whether it that exclusive dealing restraints can be form in which it has complied and is should withdraw from the agreement or anticompetitive. See Beltone Electronics complying with this order. make final the agreement’s proposed Corp., 100 F.T.C. 68, 207 (1982). order. V The Proposed Consent Order The Complaint It Is Further Ordered that Respondent The proposed consent order would shall notify the Commission at least The complaint prepared for issuance prohibit respondent Waterous from thirty (30) days prior to any proposed along with the proposed order alleges entering into, continuing, or enforcing change in the corporate respondent, that the proposed respondent violated any condition, agreement, or such as dissolution, assignment or sale Section 5 of the Federal Trade understanding with any fire truck resulting in the emergence of a Commission Act by maintaining manufacturer that such manufacturer successor corporation, or the creation or exclusive dealing arrangements with its will refrain from the purchase or sale of dissolution of subsidiaries or any other customers—manufacturers of municipal any other manufacturer’s fire pumps. change in the corporation that may fire trucks. The proposed order, however, would affect compliance obligations arising out The complaint alleges that respondent allow certain lawful discounts such as of this order. Such notification shall be Waterous and Hale Products are the two volume discounts that do not run afoul at least thirty (30) days in cases not largest manufacturers of mid-ship of the provisions of the Robinson- subject to the notification provisions of mounted fire pumps (‘‘fire pumps’’) sold Patman Act. the Hart-Scott-Rodino Antitrust in the United States. Together, The proposed consent order would Improvements Act of 1976, 15 U.S.C. respondent Waterous and Hale Products also require respondent Waterous to § 18a, and at least ten (10) days in the account for close to or more than ninety notify its customers of the terms of the case of transactions subject to the (90) percent of the fire pump market in order. Specifically, the proposed notification provisions of the Hart-Scott- the United States. Except to the extent consent would require respondent Rodino Act. that competition has been restrained as Waterous to send a copy of the order to alleged in the complaint, respondent each fire truck manufacturer it sold a VI Waterous and Hale Products have been pump to during the two (2) years prior It Is Further Ordered that this order and are now in competition among to the entry of the order; for three (3) shall terminate twenty (20) years from themselves and with other fire pump years after the order is entered, the date this order becomes final. manufacturers in the United States. respondent Waterous must send a copy The complaint alleges that, for over of the order to each new customer to Appendix A fifty (50) years and until approximately whom it provides a price list or a price [Waterous’ Letterhead] 1991, both respondent Waterous and quotation. The order would also requre Hale Products maintained exclusive notification to such customers that PLEASE READ THIS dealing arrangements. Each sold fire respondent will not restrict the brand of Enclosed with this notice is a copy of pumps to its customers on the condition pumps they may use. a Consent Order agreed to between the or understanding that such customers The proposed consent order would Federal Trade Commission and would deal in its pumps exclusively, or also require respondent Waterous to file Waterous Company, Inc. In the Order, that such customers would refrain from with the Commission compliance Waterous has agreed that it will not buying and selling pumps made by the reports setting forth the manner in refuse to sell, or refuse to contract to other. The complaint, and a companion which it has complied and is complying sell, Mid-Ship Mounted Fire Pumps on complaint against Hale Products, further with the terms of the order. Such reports the grounds that an OEM refuses to sell allege that both companies believed that are due within sixty (60) days after the Waterous pumps exclusively. The Order continued exclusive dealing by the two order becomes final, and for three (3) does not prohibit OEMs from companies would tend to exclude years annually on the anniversary of the purchasing only Waterous Mid-Ship competitors from the market, and that date the order becomes final. Mounted Fire Pumps if, in the OEM’s continued exclusive dealing, if Respondent Waterous must also notify sole discretion, it deems it advisable. maintained by both companies, would the Commission at least thirty (30) days Moreover, Waterous retains the right to tend to reduce competition between prior to any proposed change in the refuse to sell Mid-Ship Mounted Fire them over price and over non-price corporate respondent, such as Pumps to any OEM for lawful reasons. terms, such as quality differences and dissolution, assignment, or sale THE TYPE OF PUMP YOU USE IS delivery times. Consequently, both resulting in the emergence of a 40232 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices successor corporation. In cases subject effective method for enforcing the pumps for fire trucks. The proposed to the provisions of the Hart-Scott- exclusive dealing arrangements. complaints claim anticompetitive effects Rodino Act, however, such prior Third, Commissioner Starek observes arising from alleged exclusive dealing notification may be made at least ten that instability at the truck arrangements between each proposed (10) days prior to the proposed change. manufacturing stage (i.e., changes in respondent and its direct customers, the Finally, the proposed consent provides market share) may lead to the demise of original equipment manufacturers of fire that the order will terminate any customer allocation agreement with trucks (‘‘OEMs’’), in violation of Section automatically twenty (20) years after the respect to a component. We agree that 5 of the Federal Trade Commission Act, date it becomes final. might be the case where a very large 15 U.S.C. § 45. I am unpersuaded that The purpose of this analysis is to portion of a pump manufacturer’s sales the arrangements between proposed facilitate public comment on the were tied to a single truck manufacturer. respondents and their customers can be proposed order, and it is not intended Here, however, the arrangements were characterized accurately as ‘‘exclusive.’’ to constitute an official interpretation of durable; the fact is that instability More important, however, there is no the agreement and proposed order or to among truck manufacturers did not sound theoretical or empirical basis for modify in any way their terms. deter the effectiveness of these believing that these relationships, even Donald S. Clark, agreements. if exclusive, harmed competition; in Finally, Commissioner Starek suggests fact, there are good reasons to believe Secretary. that the arrangements did not foreclose the contrary. In any event, even if one Separate Statement of Chairman new entry because they were not really assumes arguendo the validity of the Pitofsky, and Commissioners Varney exclusive. He relies on the fact that theories of anticompetitive effects, the and Steiger some OEMs were willing to install the proposed orders are unlikely to remedy pumps of a third manufacturer at those alleged effects. In the Matter of Waterous Company, Inc./ The complaints allege, inter alia, that Hale Products, Inc., File No. 901–0061 customers’ request. (p. 3) The fact that the exclusive policy was not perfect and the arrangements between Waterous, We write separately to respond to that some truck manufacturers may have Hale, and their OEM customers reduce some of the concerns raised in offered the pumps of a third pump competition in two ways—by Commissioner Starek’s dissent. manufacturer, accounting for a very facilitating an allocation of customers First, we cannot concur with small share of pump sales, did not have between Waterous and Hale, and by Commissioner Starek’s suggestion that, a significant effect on competition at the creating a barrier to the entry of new for customer allocation of a component pump level. The key to competition in pump manufacturers. The first theory product to work, the participants must this market was the competitive posits that Waterous and Hale wish to be able to allocate the ultimate positions of Hale and Waterous, which set the prices of their fire pumps customers of the finished product (p.1). together account for more than 90% of collusively but find themselves unable There will be situations where the market. The evidence establishes to reach and maintain a direct downstream competition will that Hale and Waterous understood that agreement on price. Under this undermine a customer allocation as long as both firms maintained the hypothesis, in order to achieve collusive scheme of a component of a final good. exclusive dealing arrangements, pricing without a direct agreement on For example, that might be the case competition between them would be prices, Waterous and Hale have entered where the component is a significant diminished, prices would be higher and into a de facto agreement to allocate fire part of the cost of the final product, or entry would be more difficult. That is in truck OEMs between themselves. That where the ultimate consumers have a fact how things worked in this industry agreement, combined with an agreement much stronger preference for the for several decades, and those are the not to bid for each other’s OEM component than the ultimate good. anticompetitive effects that the business, makes each pump maker a monopolist with respect to its OEMs. As None of those conditions was present Commission’s orders are intended to address. monopolists, it is argued, the pump in this case. Fire truck buyers make manufacturers are able to set purchase decisions primarily on the Dissenting Statement of Commissioner supracompetitive prices. basis of truck brand, the pump price is Mary L. Azcuenaga This theory is fatally flawed. For a only a small part of the final purchase customer allocation scheme to allow price, and pump features are only a In the matter of Waterous Company, Inc./ Hale Products, Inc. File No. 901–0061. Waterous and Hale to set small part of the entire truck package. supracompetitive prices, it necessarily Evidence of relatively high profits at the I generally endorse the views must entail the allocation of the final component level supports this expressed by Commissioner Starek in customers—the fire departments— interpretation. his dissenting statement. The evidence between the two pump makers. Absent Second, Commissioner Starek does not in my view suggest a market such an allocation, an exclusive dealing suggests that these exclusive dealing in which competition has been contract between a pump maker and one arrangements would not increase the unlawfully restrained, and I do not find or more OEMs—or even outright vertical likelihood of successful collusion reason to believe that the law has been integration between the pump producer because of the difficulty of detecting violated. and one or more OEMs—does not allow cheating. (p.2) We agree that Dissenting Statement of Commissioner the pump producer to raise prices maintaining collusion requires the Roscoe B. Starek, III anticompetitively. Under the ability to detect and discipline cheating. Commission’s theory of competitive But here that methodology was simple: In the matter of Waterous Company, Inc./ harm, Waterous and Hale ‘‘allocate if a fire engine manufacturer used an Hale Products, Inc. File No. 901 0061. customers’’ in lieu of trying to enter into alternative pump it would be readily I respectfully dissent from the direct pump price agreements that identified. Moreover, the fact that the Commission’s decision to accept presumably would break down under customer allocation through exclusive consent agreements with Waterous each party’s incentives to undercut the dealing was maintained over almost five Company, Inc., and Hale Products, Inc., collusive price. In other words, the decades suggests that there was an two producers of midship-mounted pump makers’’ ‘‘customer allocation’’ Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40233 scheme solves this instability problem. stems from secret pump price Although this effect might occur in However, unless Waterous and Hale concessions or from some other cause. some settings, in this case I find the also agree not to compete against one Moreover, if the fortunes of buyers evidence to support invoking this theory another for the patronage of the fire (here, fire truck OEMs) are expected to tenuous at best. The Commission’s departments—i.e., unless they differ over time—some flagging, others complaints apparently rest on the collusively allocate fire departments flourishing—the utility of customer difficulty allegedly experienced by between themselves—each pump maker allocation as a long-run aid to collusion another pump maker in obtaining the retains its incentive to take business appears questionable. The pump patronage of OEMs.8 An alternative from its rival through price cuts. Absent producer with the misfortune to have explanation for that firm’s failure to allocation of fire department customers, affiliated with unsuccessful buyers will achieve a larger market share is that fire one should expect the same sort of have still greater incentives to depart departments find its pumps ‘‘cheating,’’ with the equivalent from the collusive scheme. In this significantly less attractive than those of competitive result, that the Commission regard, the fire truck OEM market Hale and Waterous for reasons unrelated believes frustrated direct collusion witnessed substantial turnover during to the pump makers’ distribution between Waterous and Hale.1 the period in which the allegedly policies. The evidence adduced by the Thus, it is implausible that ‘‘exclusive exclusive agreements were in force.4 staff is far from sufficient to establish dealing’’ arrangements between the Thus, even if one could overcome the that this firm, or any other actual or proposed respondents and their OEMs defect in the Commission’s collusive potential competitor, was increase the likelihood of successful theory, these other factors would anticompetitively excluded from selling collusion between Waterous and Hale. continue to cast substantial doubt upon pumps to OEMs.9 Indeed, there are compelling reasons this theory’s applicability.5 In addition to the weaknesses in the why such an arrangement might The Commission’s second theory of anticompetitive theories outlined above, actually reduce this likelihood. harm alleges that exclusive a factual problem plagues this case: Maintaining collusion requires the arrangements between pump makers evidence gathered in the investigation reasonably accurate identification and and OEMs have created a barrier to the calls into question whether Waterous’s punishment of cheating.2 If Waterous entry of new pump manufacturers, and Hale’s relationships with their and Hale bid directly and repeatedly for thereby allowing the incumbent pump respective OEM customers can even be OEM business, cheating might be sellers to set and maintain characterized as ‘‘exclusive.’’ Although inferable from one firm’s loss of a pump supracompetitive prices. Although the many OEMs have tended to deal sale to its rival. On the other hand, vertical section of the 1984 Merger principally with only one pump when Waterous and Hale compete Guidelines 6 is not cited explicitly, the maker—a fact, I note in passing, that is indirectly—i.e., when, as here, their theory here appears to have been drawn as consistent with an efficiency affiliated OEMs submit bids to a fire from those Guidelines. That analysis rationale for exclusivity as it is with an department incorporating not merely focuses on a market in which, but for anticompetitive theory—several larger the pump price but rather the prices of ease of entry, conditions are favorable to OEMs affiliated with Waterous and Hale all of the truck’s components—it will be the exercise of market power, and asks have expressed a willingness to install more difficult for a pump maker to whether a vertical merger (or, in the another manufacturer’s pumps at determine whether a loss of business is current case, vertical integration customers’ request. Indeed, several attributable to price-cutting by the rival through contract) might reduce entry so OEMs—including at least one of the pump maker or to reductions in the that market power could be exercised.7 largest ones affiliated with Hale—have prices of other components.3 installed another competitor’s pumps, The difficulty of maintaining 4 For example, just since 1990, at least four major and this investigation produced no coordination is exacerbated if there is OEMs—Grumman, Mack, FMC, and Beck—have exited the market. This period also witnessed entry would be exercised (the ‘‘primary’’ market) must be substantial market share volatility by such OEMs as Firewolf and Becker. As discussed sufficiently conducive to anticompetitive behavior among the affiliated customers for below, substantial entry into and exit from the OEM that the impact of vertical integration in reducing reasons unrelated to the pumps. Such market also bear on the applicability of the entry would allow such behavior to occur. Second, volatility makes it difficult for a pump proposed complaints’ second theory of competitive the degree of vertical integration subsequent to the harm (entry deterrence). maker to infer whether a sales loss merger must be so extensive that an entrant into the 5 With regard to the pump makers’ ostensibly high primary market would also have to enter the other accounting profits, antitrust economists no longer market (the ‘‘secondary’’ market). If substantial 1 The majority’s assertion that pump prices and consider accounting profits as a reliable indicator unintegrated capacity remains in the secondary pump brands are relatively unimportant to final of high economic profits (which can themselves be market after the vertical merger, it is less likely that consumers (i.e., fire departments) is inconsistent as consistent with superior efficiency as with the merger will facilitate an anticompetitive with the events that triggered this investigation— collusion). Fisher and McGowan, ‘‘On the Misuse outcome. Third, the requirement that a firm enter namely, complaints from OEMs that they suffered of Accounting Rates of Return to Infer Monopoly both the primary and secondary markets—rather significant competitive harm from their alleged Profits,’’ 73 Am. Econ. Rev. 82 (1983). Moreover, than just the primary market—must make entry into inability to offer multiple pump brands. It is hard concerning the longevity of the arrangements the primary market significantly more difficult and to reconcile those complaints with the majority’s between pump makers and OEMs, that factor therefore less likely to occur. 4 Trade Reg. Rep. claimed end-user indifference to pump brands. testifies only to their profitability; it does not (CCH) ¶ 13,103 at 20,565–66; see also Blair and 2 See, e.g., Stigler, ‘‘A Theory of Oligopoly,’’ 72 distinguish between anticompetitive and Kaserman, LAW AND ECONOMICS OF VERTICAL J. Pol. Econ. 44 (1964), reprinted in THE procompetitive (or competitively neutral) INTEGRATION AND CONTROL 152 (1983). ORGANIZATION OF INDUSTRY, ch. 5 (1968). explanations for their use. Indeed, the asserted 8 The evidence supporting the Commission’s 3 The majority appears to have misunderstood instability of OEMs’ market shares lends greater entry-deterrence theory appears to consist of that my point with regard to the detection of cheating. credence to an efficiency explanation: one would producer’s experience in trying to erode OEMs’ By ‘‘cheating,’’ I am not referring to an effort by, not expect the parties to an efficient exclusive preferences for Waterous and Hale pumps. say, Hale to sell to Waterous OEMs (or vice-versa). dealing arrangement to abandon it simply because 9 The majority’s assertion with respect to the Rather, I refer to Hale’s hidden reduction in pump a customer loses market share, while (as I have entry-deterring effects of the arrangements is simply prices to its own customers, which consequently explained above) the same cannot be said of an that—an assertion. All of the evidence gathered in allows those customers to take business from OEMs anticompetitive arrangement. this investigation is easily reconciled with an affiliated with the rival pump brand. This form of 6 U.S. Department of Justice, Merger Guidelines, efficiency rationale for the challenged arrangements cheating is extremely difficult to detect, because an § 4.2 (1984), 4 Trade Reg. Rep. (CCH) ¶ 13,103. between pump makers and OEMs. In this market, OEM’s capture of sales from a rival OEM could be 7 The 1984 Merger Guidelines (§ 4.21) identify as in any other, superior efficiency on the part of attributable to many reasons other than a reduced three necessary but not sufficient conditions for this incumbents is a powerful entry deterrent. It is not pump price. problem to exist. First, the market in which power an antitrust violation. 40234 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices evidence to suggest that any dealer was GENERAL SERVICES and the American Battle Monuments terminated for selling that firm’s pumps. ADMINISTRATION Commission in the review and In any case, however, even if OEM evaluation of the proposals submitted exclusivity could be convincingly FAR Secretariat; Stocking Change and on the National World War II Memorial demonstrated, it should be clear from Revision of SF 28, Affidavit of Design Competition procurement. This the discussion above that a great deal Individual Surety will include, but not be limited to: (1) more is required to prove that the AGENCY: Office of Policy, Planning, and reviewing and evaluating proposals exclusive arrangements had Evaluation, General Services received; (2) providing the Committee’s anticompetitive effects.10 The evidence Administration. views regarding specific proposals on the competitive effects of existing ACTION: Notice. received, including the bases for the arrangements between pump makers views; and, (3) making and OEMs is as consistent with the view SUMMARY: The General Services recommendations for selection of the that the arrangements induce greater Administration/FAR Secretariat is Designer and the Architect-Engineer of efficiency in the production and revising the SF 28, Affidavit of Record. Individual Surety to update the burden marketing of pumps as it is with a Contact for Information. For market power theory. statement by correcting the GSA address and deleting OMB’s address for additional information, contact: Mr. I am therefore unpersuaded that submitting comments regarding the Douglas Nelson, Project Executive, respondents’ distribution policies have burden estimate or any other aspect of General Services Administration, 7th harmed competition in any relevant the collection of information, and and D Streets, SW., Washington, DC market. Even had I concluded changing the stocking requirement. This 20407, Telephone: (202) 708–7623. otherwise, however, I would not form is now authorized for local Dated: July 26, 1996. endorse the proposed consent orders, reproduction and will no longer be David J. Barram, which require each respondent to cease available through the Federal Supply and desist from requiring OEM Service. Since this form is authorized Acting Administrator. exclusivity as a condition of sale. As I for local reproduction, you can obtain [FR Doc. 96–19664 Filed 7–31–96; 8:45 am] have noted elsewhere,11 the problems the updated camera copy in two ways: BILLING CODE 6820±34±M with remedies of this sort are On the internet. Address: http:// significant.12 A formal ban on exclusive www.gsa.gov/forms, or; Federal Advisory Committee on the dealing accomplishes little if From CARM, Attn.: Barbara Williams, National World War II Memorial Design respondents have alternative means (202) 501–0581. Competition; Meeting available to achieve the same end. One FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, (202) 501–4755. readily available method in this case, Notice is hereby given that the fully consistent with the terms of the This contact is for information on completing the form and interpreting General Services Administration’s proposed orders, would be to establish Federal Advisory Committee on the a set of quantity discounts providing a the FAR only. DATES: Effective on or before August 1, National World War II Memorial Design customer with substantial financial Competition in Washington, DC, will incentives to procure all of its pumps 1996. Dated: July 22, 1996. meet on an as needed basis in August, from a single seller. Moreover, nothing September, October, and November in the orders would prevent a pump Barbara M. Williams, 1996 (after August 12, 1996). The manufacturer from unilaterally refusing Deputy Standard and Optional Forms purpose of the meetings is to review and Management Officer. to sell to an OEM so long as the refusal evaluate the proposals received and [FR Doc. 96–19391 Filed 7–31–96; 8:45 am] was not conditioned on a promise of make recommendations regarding final exclusivity. Another possible method BILLING CODE 6820±34±M selection. The agenda for all meetings would be to give exclusive OEMs better will relate to the evaluation of the service (e.g., faster delivery times) than proposals received. their non-exclusive rivals receive. Notice of Establishment of Advisory Committee All meetings will be closed to the I cannot endorse an ineffective public because procurement sensitive remedy for a nonexistent harm. Establishment of Advisory Committee. This notice is published in accordance matters, including the pre-award [FR Doc. 96–19592 Filed 7–31–96; 8:45 am] with the provisions of Section 9(a)(2) of evaluation of proposals, will be BILLING CODE 6750±01±P the Federal Advisory Committee Act discussed. The bases for closing the (P.L. 92–463) and advises of the meetings are 5 U.S.C. 552b(c) (3) and (4) establishment of the General Services (Government in the Sunshine Act). Administration’s Federal Advisory Questions regarding these meetings Committee on the National World War should be directed to: Mr. Douglas 10 Cf. Continental T.V., Inc. v. GTE Sylvania Inc., II Memorial Design Competition in Nelson, Project Manager, General 433 U.S. 36, 58–59 (1977) (plaintiff must Washington, D.C. The Administrator of Services Administration, 7th and D demonstrate anticompetitive effects and defendant’s the General Services Administration has Streets, SW., Washington, DC 20407. market power when challenging vertical restraints). determined that establishment of this 11 Dissenting Statement of Commissioner Roscoe Committee is in the public interest. Dated: July 26, 1996. B. Starek, III, in Silicon Graphics, Inc., Docket No. Designation. Federal Advisory David J. Barram, C–3626. Committee on the National World War Acting Administrator. 12 For a discussion of why nondiscrimination remedies are problematic, see Brennan, ‘‘Why II Memorial Design Competition, [FR Doc. 96–19665 Filed 7–31–96; 8:45 am] regulated firms should be kept out of unregulated Washington, DC. BILLING CODE 6820±34±M markets: understanding the divestiture in United Purpose: The purpose of the States v. AT&T,’’ 32 Antitrust Bull. 741 (1987). Committee is to advise and assist GSA Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40235

DEPARTMENT OF HEALTH AND hotline for information concerning any chairperson determines will facilitate HUMAN SERVICES possible changes. the committee’s work. General function of the committee. Public hearings are subject to FDA’s Food and Drug Administration The committee reviews and evaluates guideline (subpart C of 21 CFR part 10) data on the safety and effectiveness of concerning the policy and procedures Advisory Committee; Notice of Meeting marketed and investigational human for electronic media coverage of FDA’s AGENCY: Food and Drug Administration, drugs for use in endocrine and public administrative proceedings, HHS. metabolic disorders. including hearings before public Agenda—Open public hearing. advisory committees under 21 CFR part ACTION: Notice. Interested persons may present data, 14. Under 21 CFR 10.205, SUMMARY: This notice announces a information, or views, orally or in representatives of the electronic media forthcoming meeting of a public writing, on issues pending before the may be permitted, subject to certain advisory committee of the Food and committee. Those desiring to make limitations, to videotape, film, or Drug Administration (FDA). This notice formal presentations should notify the otherwise record FDA’s public also summarizes the procedures for the contact person before August 7, 1996, administrative proceedings, including meeting and methods by which and submit a brief statement of the presentations by participants. interested persons may participate in general nature of the evidence or Meetings of advisory committees shall open public hearings before FDA’s arguments they wish to present, the be conducted, insofar as is practical, in advisory committees. names and addresses of proposed accordance with the agenda published FDA has established an Advisory participants, and an indication of the in this Federal Register notice. Changes Committee Information Hotline (the approximate time required to make their in the agenda will be announced at the hotline) using a voice-mail telephone comments. beginning of the open portion of a Open committee discussion. On system. The hotline provides the public meeting. August 15, 1996, the committee will Any interested person who wishes to with access to the most current hear presentations and engage in be assured of the right to make an oral information on FDA advisory committee scientific discussion on recent presentation at the open public hearing meetings. The advisory committee developments in technique and portion of a meeting shall inform the hotline, which will disseminate current measurement of body composition. contact person listed above, either orally information and information updates, Closed presentation of data. On or in writing, prior to the meeting. Any can be accessed by dialing 1–800–741– August 16, 1996, the committee will person attending the hearing who does 8138 or 301–443–0572. Each advisory hear trade secret and/or confidential not in advance of the meeting request an committee is assigned a 5-digit number. commercial information relevant to opportunity to speak will be allowed to This 5-digit number will appear in each pending investigational new drug and make an oral presentation at the individual notice of meeting. The new drug applications (IND’s and hearing’s conclusion, if time permits, at hotline will enable the public to obtain NDA’s). This portion of the meeting will the chairperson’s discretion. information about a particular advisory be closed to permit discussion of this The agenda, the questions to be committee by using the committee’s 5- information (5 U.S.C. 552b(c)(4)). addressed by the committee, and a digit number. Information in the hotline Closed committee deliberations. On current list of committee members will is preliminary and may change before a August 16, 1996, the committee will be available at the meeting location on meeting is actually held. The hotline review trade secret and/or confidential the day of the meeting. will be updated when such changes are commercial information relevant to Transcripts of the open portion of the made. pending IND’s and NDA’s. This portion meeting may be requested in writing MEETING: The following advisory of the meeting will be closed to permit from the Freedom of Information Office committee meeting is announced: discussion of this information (5 U.S.C. (HFI–35), Food and Drug Endocrinologic and Metabolic Drugs 552b(c)(4)). Administration, rm. 12A–16, 5600 Advisory Committee Each public advisory committee Fishers Lane, Rockville, MD 20857, meeting listed above may have as many approximately 15 working days after the Date, time, and place. August 15 and as four separable portions: (1) An open meeting, at a cost of 10 cents per page. 16, 1996, 8 a.m., Holiday Inn— public hearing, (2) an open committee The transcript may be viewed at the Bethesda, Versailles Ballrooms I and II, discussion, (3) a closed presentation of Dockets Management Branch (HFA– 8120 Wisconsin Ave., Bethesda, MD. data, and (4) a closed committee 305), Food and Drug Administration, Type of meeting and contact person. deliberation. Every advisory committee 12420 Parklawn Dr., rm. 1–23, Open public hearing, August 15, 1996, meeting shall have an open public Rockville, MD 20857, approximately 15 8 a.m. to 9 a.m., unless public hearing portion. Whether or not it also working days after the meeting, between participation does not last that long; includes any of the other three portions the hours of 9 a.m. and 4 p.m., Monday open committee discussion, 9 a.m. to 6 will depend upon the specific meeting through Friday. Summary minutes of p.m.; closed presentation of data, involved. The dates and times reserved the open portion of the meeting may be August 16, 1996, 8 a.m. to 10 a.m.; for the separate portions of each requested in writing from the Freedom closed committee deliberation, 10 a.m. committee meeting are listed above. of Information Office (address above) to 1 p.m.; Kathleen R. Reedy, Center for The open public hearing portion of beginning approximately 90 days after Drug Evaluation and Research (HFD– each meeting shall be at least 1 hour the meeting. 21), Food and Drug Administration, long unless public participation does The Commissioner has determined for 5600 Fishers Lane, Rockville, MD not last that long. It is emphasized, the reasons stated that those portions of 20857, 301–443–5455, or FDA Advisory however, that the 1 hour time limit for the advisory committee meetings so Committee Information Hotline, 1–800– an open public hearing represents a designated in this notice shall be closed. 741–8138 (301–443–0572 in the minimum rather than a maximum time The Federal Advisory Committee Act Washington, DC area), Endocrinologic for public participation, and an open (FACA) (5 U.S.C. app. 2, 10(d)), permits and Metabolic Drugs Advisory public hearing may last for whatever such closed advisory committee Committee, code 12536. Please call the longer period the committee meetings in certain circumstances. 40236 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Those portions of a meeting designated Dated: July 26, 1996. SUPPLEMENTARY INFORMATION: as closed, however, shall be closed for David A. Kessler, I. Program Issuances the shortest possible time, consistent Commissioner of Food and Drugs. The Health Care Financing with the intent of the cited statutes. [FR Doc. 96–19744 Filed 7–30–96; 3:29 pm] Administration (HCFA) is responsible The FACA, as amended, provides that BILLING CODE 4160±01±F for administering the Medicare and a portion of a meeting may be closed Medicaid programs, which pay for where the matter for discussion involves Health Care Financing Administration health care and related services for 38 a trade secret; commercial or financial million Medicare beneficiaries and 36 information that is privileged or [BPO±139±N] million Medicaid recipients. confidential; information of a personal Administration of these programs nature, disclosure of which would be a Medicare and Medicaid Programs; involves (1) Providing information to clearly unwarranted invasion of Quarterly Listing of Program Medicare beneficiaries and Medicaid personal privacy; investigatory files Issuances and Coverage DecisionsÐ recipients, health care providers, and compiled for law enforcement purposes; First Quarter 1996 the public, and (2) effective information the premature disclosure of communications with regional offices, AGENCY: Health Care Financing State governments, State Medicaid which would be likely to significantly Administration (HCFA), HHS. frustrate implementation of a proposed Agencies, State Survey Agencies, agency action; and information in ACTION: Notice. various providers of health care, fiscal certain other instances not generally intermediaries and carriers that process SUMMARY: This notice lists HCFA claims and pay bills, and others. To relevant to FDA matters. manual instructions, substantive and implement the various statutes on Examples of portions of FDA advisory interpretive regulations and other which the programs are based, we issue committee meetings that ordinarily may Federal Register notices, and statements regulations under the authority granted be closed, where necessary and in of policy that were published during the Secretary under sections 1102, 1871, accordance with FACA criteria, include January, February, and March of 1996 and 1902 and related provisions of the the review, discussion, and evaluation that relate to the Medicare and Medicaid Social Security Act (the Act) and also of drafts of regulations or guidelines or programs. It also identifies certain issue various manuals, memoranda, and similar preexisting internal agency devices with investigational device statements necessary to administer the documents, but only if their premature exemption numbers approved by the programs efficiently. disclosure is likely to significantly Food and Drug Administration that may Section 1871(c)(1) of the Act requires frustrate implementation of proposed be potentially covered under Medicare. that we publish in the Federal Register agency action; review of trade secrets Section 1871(c) of the Social Security at least every 3 months a list of all and confidential commercial or Act requires that we publish a list of Medicare manual instructions, financial information submitted to the Medicare issuances in the Federal interpretive rules, statements of policy, agency; consideration of matters Register at least every 3 months. and guidelines of general applicability involving investigatory files compiled Although we are not mandated to do so not issued as regulations. We published for law enforcement purposes; and by statute, for the sake of completeness our first notice June 9, 1988 (53 FR of the listing, we are including all review of matters, such as personnel 21730). Although we are not mandated Medicaid issuances and Medicare and records or individual patient records, to do so by statute, for the sake of Medicaid substantive and interpretive where disclosure would constitute a completeness of the listing of regulations (proposed and final) operational and policy statements, we clearly unwarranted invasion of published during this time frame. are continuing our practice of including personal privacy. Generally, we also provide the content Medicare substantive and interpretive Examples of portions of FDA advisory of revisions to the Medicare Coverage regulations (proposed and final) committee meetings that ordinarily shall Issues Manual. There were no revisions published during the 3-month time not be closed include the review, published during the period January 1 frame. Since the publication of our discussion, and evaluation of general through March 31, 1996. On August 21, quarterly listing on June 12, 1992 (57 FR preclinical and clinical test protocols 1989, we published the content of the 24797), we decided to add Medicaid and procedures for a class of drugs or Manual (54 FR 34555) and indicated issuances to our quarterly listings. devices; consideration of labeling that we will publish quarterly any Accordingly, we list in this notice requirements for a class of marketed updates. Adding to this listing the Medicaid issuances and Medicaid drugs or devices; review of data and complete text of the changes to the substantive and interpretive regulations information on specific investigational Medicare Coverage Issues Manual published during January through or marketed drugs and devices that have fulfills this requirement in a manner March 1996. that facilitates identification of coverage previously been made public; II. Medicare Coverage Issues presentation of any other data or and other changes in our manuals. We receive numerous inquiries from information that is not exempt from FOR FURTHER INFORMATION CONTACT: public disclosure pursuant to the FACA, the general public about whether Margaret Cotton, (410) 786–5255 (For specific items or services are covered as amended; and, deliberation to Medicare instruction information). under Medicare. Providers, carriers, and formulate advice and recommendations Pat Prete, (410) 786–3246 (For Medicaid intermediaries have copies of the to the agency on matters that do not instruction information). Medicare Coverage Issues Manual, independently justify closing. Sharon Hippler, (410) 786–4633 (For which identifies many of those medical This notice is issued under section Food and Drug Administration- items, services, technologies, or 10(a)(1) and (2) of the Federal Advisory approved investigational device treatment procedures that can be paid Committee Act (5 U.S.C. app. 2), and exemption information). for under Medicare. On August 21, FDA’s regulations (21 CFR part 14) on Cathy Johnson, (410) 786–5241 (For all 1989, we published a notice in the advisory committees. other information). Federal Register (54 FR 34555) that Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40237 contained all the Medicare coverage material from the manual published on numbers that have been approved decisions issued in that manual. August 21, 1989 constitute a complete during the quarter covered by this In that notice, we indicated that manual as of the end of the quarter notice. The listings are organized revisions to the Coverage Issues Manual covered by this notice. Parties interested according to the categories to which the will be published at least quarterly in in obtaining a copy of the manual and device numbers are assigned (that is, the Federal Register. We also sometimes revisions should follow the instructions Category A or Category B, and identified issue proposed or final national in section IV of this notice. by the investigational device exemption coverage decision changes in separate Addendum II identifies previous number). Future notices will announce Federal Register notices. Readers Federal Register documents that investigational device exemption should find this an easy way to identify contain a description of all previously categorizations and the numbers both issuance changes to all our published HCFA Medicare and assigned by the Food and Drug manuals and the text of changes to the Medicaid manuals and memoranda. Administration for the quarter for which Coverage Issues Manual. Addendum III of this notice lists, for the notices cover. Revisions to the Coverage Issues each of our manuals or Program Manual are not published on a regular Memoranda, a HCFA transmittal IV. How To Obtain Listed Material basis but on an as-needed basis. We number unique to that instruction and A. Manuals publish revisions as a result of its subject matter. A transmittal may technological changes, medical practice consist of a single instruction or many. An individual or organization changes, responses to inquiries we Often it is necessary to use information interested in routinely receiving any receive seeking clarifications, or the in a transmittal in conjunction with manual and revisions to it may purchase resolution of coverage issues under information currently in the manuals. a subscription to that manual. Those Medicare. If no Coverage Issues Manual Addendum IV sets forth the revisions wishing to subscribe should contact revisions were published during a to the Medicare Coverage Issues Manual either the Government Printing Office particular quarter, our listing will reflect that were published during the quarter (GPO) or the National Technical that fact. covered by this notice. For the revisions, Information Service (NTIS) at the Not all revisions to the Coverage we give a brief synopsis of the revisions following addresses: Issues Manual contain major changes. as they appear on the transmittal sheet, Superintendent of Documents, As with any instruction, sometimes the manual section number, and the title Government Printing Office, ATTN: minor clarifications or revisions are of the section. We present a complete New Order, P.O. Box 371954, made within the text. This notice copy of the revised material, no matter Pittsburgh, PA 15250–7954, contains, as Addendum IV, reprinted how minor the revision, and identify the Telephone (202) 512–1800, Fax manual revisions as transmitted to revisions by printing in italics the text number (202) 512–2250 (for credit manual holders. The new text is shown that was changed. If the transmittal card orders); or in italics. We have not reprinted the includes material unrelated to the National Technical Information Service, table of contents, since the table of revised section, for example, when the Department of Commerce, 5825 Port contents serves primarily as a finding addition of revised material causes other Royal Road, Springfield, VA 22161, aid for the user of the manual and does sections to be repaginated, we do not Telephone (703) 487–4630. not identify items as covered or not. reprint the unrelated material. In addition, individual manual Addendum V lists all substantive and transmittals and Program Memoranda III. How To Use the Addenda interpretive Medicare and Medicaid listed in this notice can be purchased This notice is organized so that a regulations and general notices from NTIS. Interested parties should reader may review the subjects of all published in the Federal Register identify the transmittal(s) they want. manual issuances, memoranda, during the quarter covered by this GPO or NTIS can give complete details substantive and interpretive regulations, notice. For each item, we list the date on how to obtain the publications they coverage decisions, or Food and Drug published, the Federal Register citation, sell. Administration-approved the parts of the Code of Federal investigational device exemptions Regulations (CFR) that have changed (if B. Regulations and Notices published during the time frame to applicable), the agency file code Regulations and notices are published determine whether any are of particular number, the title of the regulation, the in the daily Federal Register. Interested interest. We expect it to be used in ending date of the comment period (if individuals may purchase individual concert with previously published applicable), and the effective date (if copies or subscribe to the Federal notices. Most notably, those unfamiliar applicable). Register by contacting the GPO at the with a description of our Medicare On September 19, 1995, we published address given above. When ordering manuals may wish to review Table I of a final rule (60 FR 48417) establishing individual copies, it is necessary to cite our first three notices (53 FR 21730, 53 in regulations that certain devices with either the date of publication or the FR 36891, and 53 FR 50577) and the an investigational device exemption volume number and page number. notice published March 31, 1993 (58 FR approved by the Food and Drug The Federal Register is also available 16837), and those desiring information Administration and certain services on 24x microfiche and as an online on the Medicare Coverage Issues related to those devices may be covered database through GPO Access. The Manual may wish to review the August under Medicare. That final rule states online database is updated by 6 a.m. 21, 1989 publication (54 FR 34555). that we will announce in this quarterly each day the Federal Register is To aid the reader, we have organized notice all investigational device published. The database includes both and divided this current listing into six exemption categorizations, using the text and graphics from Volume 59, addenda. Addendum I identifies investigational device exemption Number 1 (January 2, 1994) forward. updates that changed the Coverage numbers the Food and Drug Free public access is available on a Issues Manual. We published notices in Administration assigns. Addendum VI Wide Area Information Server (WAIS) the Federal Register that included the includes listings of the Food and Drug through the Internet and via text of changes to the Coverage Issues Administration-approved asynchronous dial-in. Internet users can Manual. These updates, when added to investigational device exemption access the database by using (1) the 40238 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

World Wide Web—the Superintendent V. How To Review Listed Material Security Boulevard, Baltimore, MD of Documents home page address is Transmittals or Program Memoranda 21244–1850, Telephone (410) 786–3246. l http://www.access.gpo.gov/su docs/; can be reviewed at a local Federal Questions concerning Food and Drug (2) local WAIS client software, or (3) Depository Library (FDL). Under the Administration-approved telnet—swais.access.gpo.gov, then login FDL program, government publications investigational device exemptions may as guest (no password required). Dial-in are sent to approximately 1400 be addressed to Sharon Hippler, Bureau users should use communications designated libraries throughout the of Policy Development, Office of software and modem to call (202) 512– United States. Interested parties may Chronic Care and Insurance Policy, 1661; type swais, then login as guest (no examine the documents at any one of Health Care Financing Administration, password required). For general the FDLs. Some may have arrangements C4–11–04, 7500 Security Blvd., information about GPO Access, contact to transfer material to a local library not Baltimore, MD 21244–1850, Telephone the GPO Access User Support Team by designated as an FDL. To locate the (410) 786–4633. sending Internet e-mail to nearest FDL, contact any library. Questions concerning all other [email protected] gpo.gov; by faxing to In addition, individuals may contact information may be addressed to Cathy (202) 512–1262; or by calling (202) 512– regional depository libraries, which Johnson, Bureau of Policy Development, 1530 between 7 a.m. and 5 p.m. Eastern receive and retain at least one copy of Office of Regulations, Health Care time, Monday–Friday, except for most Federal Government publications, Financing Administration, C5–09–05, Federal holidays. either in printed or microfilm form, for 7500 Security Blvd., Baltimore, MD C. Rulings use by the general public. These 21244–1850, Telephone (410) 786–5241. libraries provide reference services and We publish Rulings on an infrequent interlibrary loans; however, they are not (Catalog of Federal Domestic Assistance Program No. 93.773, Medicare—Hospital basis. Interested individuals can obtain sales outlets. Individuals may obtain copies from the nearest HCFA Regional Insurance, Program No. 93.774, Medicare— information about the location of the Supplementary Medical Insurance Program, Office or review them at the nearest nearest regional depository library from and Program No. 93.714, Medical Assistance regional depository library. We also any library. Superintendent of Program) sometimes publish Rulings in the Documents numbers for each HCFA Dated: July 19, 1996. Federal Register. publication are shown in Addendum III, Carol J. Walton, D. HCFA’s Compact Disk-Read Only along with the HCFA publication and Director, Bureau of Program Operations. Memory (CD–ROM) transmittal numbers. To help FDLs locate the instruction, use the Addendum I Our laws, regulations, and manuals Superintendent of Documents number, This addendum lists the publication are also available on CD–ROM, which plus the HCFA transmittal number. For dates of the most recent quarterly listing may be purchased from GPO or NTIS on example, to find the Carriers Manual, of program issuances and coverage a subscription or single copy basis. The Part 3—Claims Process (HCFA–Pub. 14– decision updates to the Coverage Issues Superintendent of Documents list ID is 3) transmittal entitled ‘‘Beneficiary Manual. For a complete listing of the HCLRM, and the stock number is 717– Address Change,’’ use the quarterly updates to the Coverage Issues 139–00000–3. The following material is Superintendent of Documents No. HE Manual published during March 20, on the CD–ROM disk: 22.8/7 and the HCFA transmittal 1990 through November 14, 1994, • Titles XI, XVIII, and XIX of the Act. number 1538. • HCFA-related regulations. please refer to the January 3, 1995 • HCFA manuals and monthly VI. General Information update (60 FR 134). revisions. It is possible that an interested party January 3, 1995 (60 FR 132) • HCFA program memoranda. may have a specific information need April 6, 1995 (60 FR 17538) The titles of the Compilation of the and not be able to determine from the July 26, 1995 (60 FR 38344) Social Security Laws are current as of listed information whether the issuance November 15, 1995 (60 FR 57435) January 1, 1995. The remaining portions or regulation would fulfill that need. of CD–ROM are updated on a monthly Consequently, we are providing April 8, 1996 (61 FR 154) basis. information contact persons to answer June 26, 1996 (61 FR 33119) Because of complaints about the general questions concerning these Addendum II—Description of Manuals, unreadability of the Appendices items. Copies are not available through Memoranda, and HCFA Rulings (Interpretive Guidelines) in the State the contact persons. Copies can be Operations Manual (SOM), as of March purchased or reviewed as noted above. An extensive descriptive listing of 1995, we deleted these appendices from Questions concerning Medicare items Medicare manuals and memoranda was CD–ROM. We intend to re-visit this in Addenda III may be addressed to published on June 9, 1988, at 53 FR issue in the near future, and with the Margaret Cotton, Bureau of Program 21730 and supplemented on September aid of newer technology, we may again Operations, Issuances Staff, Health Care 22, 1988, at 53 FR 36891 and December be able to include the appendices on Financing Administration, S3–01–27, 16, 1988, at 53 FR 50577. Also, a CD–ROM. 7500 Security Blvd., Baltimore, MD complete description of the Medicare Any cost report forms incorporated in 21244–1850, Telephone (410) 786–5255. Coverage Issues Manual was published the manuals are included on the CD– Questions concerning Medicaid items on August 21, 1989, at 54 FR 34555. A ROM disk as LOTUS files. LOTUS in Addenda III may be addressed to Pat brief description of the various software is needed to view the reports Prete, Medicaid Bureau, Office of Medicaid manuals and memoranda that once the files have been copied to a Medicaid Policy, Health Care Financing we maintain was published on October personal computer disk. Administration, C4–25–02, 7500 16, 1992, at 57 FR 47468. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40239

ADDENDUM IIIÐMEDICARE AND MEDICAID MANUAL INSTRUCTIONS JANUARY THROUGH MARCH 1996

Trans. No. Manual/Subject/Publication Number

Intermediary Manual Part 3ÐClaims Process (HCFA Pub. 13±3) (Superintendent of Documents No. HE 22.8/6±1)

1671 ...... • Claims Processing Terminology. Handling Incomplete or Invalid Claims. Data Element Requirements Matrix. 1672 ...... • PRO Reporting on Medical Review. 1673 ...... • Guidelines for Review of Claims for Epoetin.

Carriers Manual Part 3ÐClaims Process (HCFA Pub. 14±3) (Superintendent of Documents No. HE 22.8/7)

1533 ...... • Nomenclature and Organization of the List. Rebundling of CPT Codes. Added ASC Codes. 1534 ...... • Positron Emission Tomography Scans. Billing Requirements for PET Scans. Claims Processing Instructions for PET Scan Claims. 1535 ...... • Claims Processing Terminology. Handling Incomplete or Invalid Claims. Data Element Requirements Matrix. Conditional Data Element Requirements. 1536 ...... • Reasonableness and Necessity. 1537 ...... • Item 24ÐType of Service. 1538 ...... • Beneficiary Address Change.

Carriers Manual Part 4ÐProfessional Relations (HCFA Pub. 14±4) (Superientendent of Documents No. HE 22.8/7±4)

11 ...... • Items 1±13ÐPatient and Insured Information. Items 14±33ÐPhysician or Supplier Information. Place of Service Codes and Definitions.

Program Memorandum Intermediaries/Carriers (HCFA Pub. 60B) (Superintendent of Documents No. HE 22.8/6±5)

B±96±1 ...... • Coverage for Occupational Therapists in Independent Practice.

Progam Memorandum Carriers (HCFA Pub. 60A/B) (Superintendent of Documents No. HE 22.8/6±5)

AB±96±1 ...... • New Interest Rate Payable on Clean Claims Not Paid Timely. AB±96±2 ...... • Exclusion Process, § 1128(b)(7).

Progam Memorandum Insurance Commissioners (HCFA Pub. 80) (Superintendent of Documents No. HE 22.8/6±5)

96±1 ...... • Medigap Bulletin Series (Number Five).

Peer Review Organization (HCFA Pub. 19) (Superintendent of Documents No. HE 22.8/8±15)

58 ...... • Background. Beneficiary Hotline. Interaction with Beneficiary Groups. Other Activities. 59 ...... • PRO Reporting on Medical Review. Tracking Adjustments. PRO/Intermediary/Carrier Coordination Activities. Additional PRO/Carrier Coordination Activities. 60 ...... • Background. 40240 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

ADDENDUM IIIÐMEDICARE AND MEDICAID MANUAL INSTRUCTIONS JANUARY THROUGH MARCH 1996ÐContinued

Trans. No. Manual/Subject/Publication Number

PRO Review Responsibilities. Types of Prohibited Actions That Circumvent PPS. Actions to be Taken by PRO. Authority. Types of Denial Determinations. Notification of Denial. Content of Denial Notice. Statutory and Regulatory Requirements. Requests for Reconsideration. Reconsideration Process. Circumvention of Prospective Payment System. Background. Appeals Council Review. Judicial Review. Circumvention of PPS Denial Model Notice. Circumvention of PPS Reconsideration Model Notice. 61 ...... • Training. Citations and Authority.

Hospice Manual (HCFA Pub. 21) (Superintendent of Documents No. HE 22.8/18)

47 ...... • Credit Balance Reporting Requirements. Payment of Amounts Owed Medicare. Medicare Credit Balance Report Certification. Medicare Credit Balance Report (HCFA±838)

Provider Reimbursement Manual Part 1Ð(HCFA Pub.15±1) (Superintendent of Documents No. HE 22.8/4)

389 ...... • Travel Expense. 390 ...... Regional Medicare Swing-Bed SNF Rates. 391 ...... Interest. Necessary. Accounts Receivable Financing. Costs Included in Capital-Related Costs. Capital Related Costs of Related Organizations. Debt Issuance Costs, Debt Discounts, and Debt Redemption Costs. Costs Excluded From Capital-Related Costs. Jointly Owned Equipment. Unpaid Compensation. 392 ...... • Ambulance Service.

Medicare/Medicaid SanctionÐReinstatement Report (HCFA Pub. 69)

96±1 ...... • Cumulative Report of Physicians/Practitioners, Providers and/or Other Health Care Suppliers Sanctioned/Reinstated. 96±2 ...... • Report of Physicians/Practioners, Providers and/or Other Health Care Suppliers Excluded/ReinstatedÐDecember 1995 and January 1996. 96±3 ...... • Report of Physicians/Practitioners, Providers and/or Other Health Care Suppliers/ReinstatedÐFebruary 1996.

Addendum IV There are no revisions to the Coverage Issues Manual for this quarter.

ADDENDUM V.ÐREGULATION DOCUMENTS PUBLISHED IN THE FEDERAL REGISTER

Publication FR Vol. 61 End of com- Effective date page CFR Part File code * Regulation title ment period date

01/19/96 ...... 1389±1390 ...... BPD±854±NC Medicare and Medicaid Programs; Announcement 03/19/96 01/19/96 of Applications from Hospitals Requesting Waiv- ers for Organ Procurement Service Area. 01/23/96 ...... 1769±1772 ...... ORD±083±N New and Pending Demonstration Project Propos- ...... als Submitted Pursuant to Section 1115(a) of the Social Security Act: November 1995. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40241

ADDENDUM V.ÐREGULATION DOCUMENTS PUBLISHED IN THE FEDERAL REGISTERÐContinued

Publication FR Vol. 61 End of com- Effective date page CFR Part File code * Regulation title ment period date

01/26/96 ...... 2516±2519 ...... BPO±134±NC Medicare Program; Revised Criteria and Stand- 02/26/96 02/01/96 ards for Evaluating Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Regional Carriers' Performance Beginning February 1, 1996. 01/26/96 ...... 2516 ...... ORD±078±N Medicare Program; Announcement of Funding ...... Availability for a Cooperative Agreement for an End-Stage Renal Disease (ESRD) Managed Care Demonstration. 01/29/96 ...... 2725±2727 412, 413 ...... BPD±825±FCN Medicare Program; Changes to the Hospital Inpa- ...... 10/01/95 tient Prospective Payment Systems and Fiscal Year 1996 Rates; Corrections. 02/27/96 ...... 7266 ...... ORD±084±N New and Pending Demonstration Project Propos- ...... als Submitted Pursuant to Section 1115(a) of the Social Security Act: December 1995. 02/29/96 ...... 7798 ...... ORD±085±N New and Pending Demonstration Project Propos- ...... als Submitted Pursuant to Section 1115(a) of the Social Security Act: January 1996. 03/08/96 ...... 9405±9410 440 ...... MB±071±P Medicare Program; Coverage of Personal Care 05/07/96 ...... Services. 03/27/96 ...... 13430± 417,434 ...... OMC±010±FC Medicare and Medicaid Programs; Requirements 05/28/96 04/26/96 13450 for Physician Incentive Plans in Prepaid Health Care Organizations. * GNÐGeneral Notice; PNÐProposed Notice; FNÐFinal Notice; PÐNotice of Proposed Rulemaking (NPRM); FÐFinal Rule; FCÐFinal Rule with Comment Period; CNÐCorrection Notice; SNÐSuspension Notice; WNÐWithdrawal Notice; NRÐNotice of HCFA Ruling.

Addendum VI.—Categorization of Food Class III for which ‘‘absolute risk’’ of the represent advances to a device that has and Drug Administration-Approved device type has not been established already received PMA-approval Investigational Device Exemptions (that is, initial questions of safety and (generational changes). Under the Food, Drug, and Cosmetic effectiveness have not been resolved (4) Class III devices that are Act (21 U.S.C. 360c), devices fall into and the Food and Drug Administration comparable to a PMA-approved device one of three classes: is unsure whether the device type can but are under investigation for a new Class I—Devices for which the general be safe and effective). A non- indication for use. For purposes of controls of the Food, Drug, and experimental/investigational (Category studying the new indication, no Cosmetic Act, such as adherence to B) device is a device believed to be in significant modification to the device good manufacturing practice Class I or Class II, or a device believed were required. regulations, are sufficient to provide a to be in Class III for which the (5) Pre-amendments Class III devices reasonable assurance of safety and incremental risk is the primary risk in that become the subject of an effectiveness. question (that is, underlying questions investigational device exemption after Class II—Devices that, in addition to of safety and effectiveness of that device the Food and Drug Administration general controls, require special type have been resolved), or it is known requires premarket approval, that is, no controls, such as performance standards that the device type can be safe and PMA application was submitted or the or postmarket surveillance, to provide a effective because, for example, other PMA application was denied. reasonable assurance of safety and manufacturers have obtained Food and (6) Nonsignificant risk device effectiveness. Drug Administration approval for that investigations for which the Food and Class III—Devices that cannot be device type. Drug Administration required the classified into Class I or Class II because The criteria the Food and Drug submission of an investigational device insufficient information exists to Administration uses to categorize an exemption. determine that either special or general investigational device under Category B The following information presents controls would provide reasonable include the following: the device number, category (in this assurance of safety and effectiveness. (1) Devices, regardless of the case, A), and criterion code. G950168 Class III devices require premarket classification, under investigation to A2, G950175 A1, G960026 A2, G960033 approval. establish substantial equivalence to a A1, G960034 A1, G960055 A2, G960060 Under the new categorization process predicate device, that is, to establish A1, G960066 A2 to assist HCFA, the Food and Drug substantial equivalence to a previously/ The following information presents Administration assigns each device with currently legally marketed device. the device number, category (in this a Food and Drug Administration- (2) Class III devices whose case, B), and criterion code. G950194 approved investigational device technological characteristics and B1, G950210 B1, G950212 B3, G950217 exemption to one of two categories: indication for use are comparable to a B1, G950218 B1, G950229 B3, G950231 Experimental/Investigational (Category Pre-Market Approval (PMA)-approved B, G960003 B4, G960018 B4, G960019 A) Devices, or Non-Experimental/ device. B4, G960021 B2, G960022 B4, G960023 Investigational (Category B) Devices. (3) Class III devices with B2, G960024 B3, G960025 B2, G960027 Under this categorization process, an technological advances compared to a B4, G960028 B1, G960029 B4, G960030 experimental/investigational (Category PMA-approved device, that is, a device B2, G960031 B2, G960035 B4, G960037 A) device is an innovative device in with technological changes that B4, G960038 B4, G960041 B4, G960043 40242 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

B1, G960046 B1, G960051 B3, G960054 in Urine Drug Testing for Federal CORNING Clinical Laboratories, 4444 B3, G960056 B5, G960057 B2, G960059 Agencies,’’ sets strict standards which Giddings Road, Auburn Hills, MI 48326, B2, G960061 B2, G960062 B2 laboratories must meet in order to 800–444–0106/810–373–9120 (formerly: conduct urine drug testing for Federal HealthCare/Preferred Laboratories, Note: Some investigational devices may HealthCare/MetPath) exhibit unique characteristics or raise safety agencies. To become certified an CORNING Clinical Laboratories Inc., 1355 concerns that make additional consideration applicant laboratory must undergo three Mittel Blvd., Wood Dale, IL 60191, 708– necessary. For these devices, HCFA and the rounds of performance testing plus an 595–3888 (formerly: MetPath, Inc., Food and Drug Administration will agree on on-site inspection. To maintain that CORNING MetPath Clinical Laboratories) the additional criteria to be used. The Food certification a laboratory must CORNING Clinical Laboratories, South and Drug Administration will use these participate in a quarterly performance Central Divison, 2320 Schuetz Rd., St. criteria to assign the device(s) to a category. testing program plus periodic, on-site Louis, MO 63146, 800–288–7293 (formerly: As experience is gained in the categorization inspections. Metropolitan Reference Laboratories, Inc.) process, this addendum may be modified. CORNING Clinical Laboratory, One Malcolm Laboratories which claim to be in the Ave., Teterboro, NJ 07608, 201–393–5000 [FR Doc. 96–19559 Filed 7–31–96; 8:45 am] applicant stage of certification are not to (formerly: MetPath, Inc., CORNING BILLING CODE 4120±01±P be considered as meeting the minimum MetPath Clinical Laboratories) requirements expressed in the HHS CORNING National Center for Forensic Guidelines. A laboratory must have its Science, 1901 Sulphur Spring Rd., Substance Abuse and Mental Health letter of certification from SAMHSA, Baltimore, MD 21227, 410–536–1485 Services Administration HHS (formerly: HHS/NIDA) which (formerly: Maryland Medical Laboratory, attests that it has met minimum Inc., National Center for Forensic Science) CORNING Nichols Institute, 7470–A Mission Current List of Laboratories Which standards. Meet Minimum Standards To Engage in Valley Rd., San Diego, CA 92108–4406, In accordance with Subpart C of the 800–446–4728/619–686–3200 (formerly: Urine Drug Testing for Federal Guidelines, the following laboratories Nichols Institute, Nichols Institute Agencies, and Laboratories That Have meet the minimum standards set forth Substance Abuse Testing (NISAT)) Withdrawn From the Program in the Guidelines: Cox Health Systems, Department of Toxicology, 1423 North Jefferson Ave., Aegis Analytical Laboratories, Inc., 624 AGENCY: Substance Abuse and Mental Springfield, MO 65802, 800–876–3652/ Grassmere Park Rd., Suite 21, Nashville, Health Services Administration, HHS 417–269–3093 (formerly: Cox Medical TN 37211, 615–331–5300 (Formerly: National Institute on Drug Centers) Alabama Reference Laboratories, Inc., 543 Dept. of the Navy, Navy Drug Screening Abuse, ADAMHA, HHS). South Hull St., Montgomery, AL 36103, Laboratory, Great Lakes, IL, Building 38–H, ACTION: Notice. 800–541–4931/205–263–5745 Great Lakes, IL 60088–5223, 708–688– American Medical Laboratories, Inc., 14225 2045/708–688–4171 SUMMARY: The Department of Health and Newbrook Dr., Chantilly, VA 22021, 703– Human Services notifies Federal 802–6900 Diagnostic Services Inc., dba DSI, 4048 Evans agencies of the laboratories currently Associated Pathologists Laboratories, Inc., Ave., Suite 301, Fort Myers, FL 33901, 813–936–5446/800–735–5416 certified to meet standards of Subpart C 4230 South Burnham Ave., Suite 250, Las Vegas, NV 89119–5412, 702–733–7866 Doctors Laboratory, Inc., P.O. Box 2658, 2906 of Mandatory Guidelines for Federal Julia Dr., Valdosta, GA 31604, 912–244– Workplace Drug Testing Programs (59 Associated Regional and University Pathologists, Inc. (ARUP), 500 Chipeta 4468 FR 29916, 29925). A similar notice Way, Salt Lake City, UT 84108, 801–583– Drs. Weber, Palmer, Macy, Chartered, 338 N. listing all currently certified laboratories 2787 Front St., Salina, KS 67401, 913–823–9246 will be published during the first week Baptist Medical Center—Toxicology DrugProof, Division of Dynacare/Laboratory of each month, and updated to include Laboratory, 9601 I–630, Exit 7, Little Rock, of Pathology, LLC, 1229 Madison St., Suite laboratories which subsequently apply AR 72205–7299, 501–227–2783 (formerly: 500, Nordstrom Medical Tower, Seattle, Forensic Toxicology Laboratory Baptist WA 98104, 800–898–0180 / 206–386–2672 for and complete the certification (formerly: Laboratory of Pathology of process. If any listed laboratory’s Medical Center) Bayshore Clinical Laboratory, 4555 W. Seattle, Inc., DrugProof, Division of certification is totally suspended or Schroeder Dr., Brown Deer, WI 53223, Laboratory of Pathology of Seattle, Inc.) revoked, the laboratory will be omitted 414–355–4444/800–877–7016 DrugScan, Inc., P.O. Box 2969, 1119 Mearns from updated lists until such time as it Cedars Medical Center, Department of Rd., Warminster, PA 18974, 215–674–9310 is restored to full certification under the Pathology, 1400 Northwest 12th Ave., ElSohly Laboratories, Inc., 5 Industrial Park Guidelines. Miami, FL 33136, 305–325–5810 Dr., Oxford, MS 38655, 601–236–2609 If any laboratory has withdrawn from Centinela Hospital Airport Toxicology General Medical Laboratories, 36 South Laboratory, 9601 S. Sepulveda Blvd., Los Brooks St., Madison, WI 53715, 608–267– the National Laboratory Certification 6267 Program during the past month, it will Angeles, CA 90045, 310–215–6020 Clinical Reference Lab, 11850 West 85th St., Harrison Laboratories, Inc., 9930 W. Highway be identified as such at the end of the Lenexa, KS 66214, 800–445–6917 80, Midland, TX 79706, 800–725–3784/ current list of certified laboratories, and CompuChem Laboratories, Inc., 1904 915–563–3300 (formerly: Harrison & will be omitted from the monthly listing Alexander Drive, Research Triangle Park, Associates Forensic Laboratories) thereafter. NC 27709, 919–549–8263/800–833–3984 Jewish Hospital of Cincinnati, Inc., 3200 Burnet Ave., Cincinnati, OH 45229, 513– FOR FURTHER INFORMATION CONTACT: Mrs. (Formerly: CompuChem Laboratories, Inc., 569–2051 Giselle Hersh, Division of Workplace A Subsidiary of Roche Biomedical Laboratory, Roche CompuChem LabOne, Inc., 8915 Lenexa Dr., Overland Programs, Room 13A–54, 5600 Fishers Laboratories, Inc., A Member of the Roche Park, Kansas 66214, 913–888–3927 Lane, Rockville, Maryland 20857; Tel.: Group) (formerly: Center for Laboratory Services, a (301) 443–6014. CORNING Clinical Laboratories, 4771 Regent Division of LabOne, Inc.) SUPPLEMENTARY INFORMATION: Blvd., Irving, TX 75063, 800–526–0947 Laboratory Corporation of America, 13900 Mandatory Guidelines for Federal (formerly: Damon Clinical Laboratories, Park Center Rd., Herndon, VA 22071, 703– Workplace Drug Testing were developed Damon/MetPath) 742–3100 (Formerly: National Health CORNING Clinical Laboratories, 875 Laboratories Incorporated) in accordance with Executive Order Greentree Rd., 4 Parkway Ctr., Pittsburgh, Laboratory Corporation of America, 21903 12564 and section 503 of Public Law PA 15220–3610, 800–284–7515 (formerly: 68th Ave. South, Kent, WA 98032, 206– 100–71. Subpart C of the Guidelines, Med-Chek Laboratories, Inc., Med-Chek/ 395–4000 (Formerly: Regional Toxicology ‘‘Certification of Laboratories Engaged Damon, MetPath Laboratories) Services) Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40243

Laboratory Corporation of America Holdings, Scientific Testing Laboratories, Inc., 463 DEPARTMENT OF THE INTERIOR 1120 Stateline Rd., Southaven, MS 38671, Southlake Blvd., Richmond, VA 23236, 601–342–1286 (Formerly: Roche 804–378–9130 Fish and Wildlife Service Biomedical Laboratories, Inc.) Scott & White Drug Testing Laboratory, 600 Laboratory Corporation of America Holdings, S. 25th St., Temple, TX 76504, 800–749– Notice of Receipt of Applications for 69 First Ave., Raritan, NJ 08869, 800–437– 3788 Permit 4986 (Formerly: Roche Biomedical S.E.D. Medical Laboratories, 500 Walter NE, Laboratories, Inc.) The following applicants have Suite 500, Albuquerque, NM 87102, 505– Laboratory Specialists, Inc., 113 Jarrell Dr., applied for a permit to conduct certain 244–8800, 800–999–LABS Belle Chasse, LA 70037, 504–392–7961 activities with endangered species. This Marshfield Laboratories, 1000 North Oak Sierra Nevada Laboratories, Inc., 888 Willow Ave., Marshfield, WI 54449, 715–389– St., Reno, NV 89502, 800–648–5472 notice is provided pursuant to Section 3734/800–222–5835 SmithKline Beecham Clinical Laboratories, 10(c) of the Endangered Species Act of MedExpress/National Laboratory Center, 7600 Tyrone Ave., Van Nuys, CA 91045, 1973, as amended (16 U.S.C. 1531, et 4022 Willow Lake Blvd., Memphis, TN 818–989–2520 seq.): 38175, 901–795–1515 SmithKline Beecham Clinical Laboratories, PRT–817414 Medical College Hospitals Toxicology 801 East Dixie Ave., Leesburg, FL 34748, Laboratory, Department of Pathology, 3000 Applicant: John Teeter, Fairview, NC 352–787–9006 (formerly: Doctors & Arlington Ave., Toledo, OH 43699–0008, The applicant requests a permit to Physicians Laboratory) 419–381–5213 import the sport-hunted trophy of one SmithKline Beecham Clinical Laboratories, Medlab Clinical Testing, Inc., 212 Cherry male bontebok (Damaliscus pygargus 3175 Presidential Dr., Atlanta, GA 30340, Lane, New Castle, DE 19720, 302–655– dorcas) culled from a captive herd 5227 770–452–1590 (formerly: SmithKline Bio- MedTox Laboratories, Inc., 402 W. County Science Laboratories) maintained under the management Rd. D, St. Paul, MN 55112, 800–832–3244/ SmithKline Beecham Clinical Laboratories, program of the Republic of South Africa, 612–636–7466 506 E. State Pkwy., Schaumburg, IL 60173, for the purpose of enhancement of the Methodist Hospital of Indiana, Inc., 708–885–2010 (formerly: International survival of the species. Department of Pathology and Laboratory Toxicology Laboratories) PRT–817217 Medicine, 1701 N. Senate Blvd., SmithKline Beecham Clinical Laboratories, Indianapolis, IN 46202, 317–929–3587 Applicant: African Lion Safari & Game Farm, Methodist Medical Center Toxicology 400 Egypt Rd., Norristown, PA 19403, 800– Ontario Canada Laboratory, 221 N.E. Glen Oak Ave., 523–5447 (formerly: SmithKline Bio- The applicant requests a permit to Peoria, IL 61636, 800–752–1835/309–671– Science Laboratories) reexport and reimport four captive born 5199 SmithKline Beecham Clinical Laboratories, Asian elephants (Elephants maximus) MetroLab-Legacy Laboratory Services, 235 N. 8000 Sovereign Row, Dallas, TX 75247, and progeny of the animals currently Graham St., Portland, OR 97227, 503–413– 214–638–1301 (formerly: SmithKline Bio- held by the applicant and any animals 4512, 800–237–7808(x4512) Science Laboratories) acquired in the United States by the Minneapolis Veterans Affairs Medical Center, South Bend Medical Foundation, Inc., 530 N. applicant to/from worldwide locations Forensic Toxicology Laboratory, 1 Veterans Lafayette Blvd., South Bend, IN 46601, to enhance the survival of the species Drive, Minneapolis, Minnesota 55417, 219–234–4176 612–725–2088 Southwest Laboratories, 2727 W. Baseline through conservation education. This National Toxicology Laboratories, Inc., 1100 notification covers activities conducted California Ave., Bakersfield, CA 93304, Rd., Suite 6, Tempe, AZ 85283, 602–438– 8507 by the applicant over a three year 805–322–4250 period. Northwest Toxicology, Inc., 1141 E. 3900 St. Anthony Hospital (Toxicology South, Salt Lake City, UT 84124, 800–322– Laboratory), P.O. Box 205, 1000 N. Lee St., PRT–817258 3361 Oklahoma City, OK 73102, 405–272–7052 Applicant: African Lion Safari & Game Farm, Oregon Medical Laboratories, P.O. Box 972, Toxicology & Drug Monitoring Laboratory, Ontario Canada 722 East 11th Ave., Eugene, OR 97440– University of Missouri Hospital & Clinics, The applicant requests a permit to 0972, 541–687–2134 2703 Clark Lane, Suite B, Lower Level, Pathology Associates Medical Laboratories, reexport and reimport four captive born Columbia, MO 65202, 314–882–1273 Asian elephants (Elephants maximus) East 11604 Indiana, Spokane, WA 99206, Toxicology Testing Service, Inc., 5426 N.W. 509–926–2400 and progeny of the animals currently 79th Ave., Miami, FL 33166, 305–593– PharmChem Laboratories, Inc., 1505–A held by the applicant and any animals 2260 O’Brien Dr., Menlo Park, CA 94025, 415– acquired in the United States by the TOXWORX Laboratories, Inc., 6160 Variel 328–6200/800–446–5177 applicant to/from worldwide locations Ave., Woodland Hills, CA 91367, 818–226– PharmChem Laboratories, Inc., Texas to enhance the survival of the species 4373 (formerly: Laboratory Specialists, Division, 7606 Pebble Dr., Fort Worth, TX through conservation education. This 76118, 817–595–0294 (formerly: Harris Inc.; Abused Drug Laboratories; MedTox Medical Laboratory) Bio-Analytical, a Division of MedTox notification covers activities conducted Physicians Reference Laboratory, 7800 West Laboratories, Inc.) by the applicant over a three year 110th St., Overland Park, KS 66210, 913– UNILAB, 18408 Oxnard St., Tarzana, CA period. 338–4070/800–821–3627 91356, 800–492–0800/818–343–8191 PRT–816663 Poisonlab, Inc., 7272 Clairemont Mesa Rd., (formerly: MetWest-BPL Toxicology Applicant: Tom Bolack, Farmington, NM San Diego, CA 92111 619–279–2600/800– Laboratory) 882–7272 The applicant requests a permit to Premier Analytical Laboratories, 15201 I–10 No laboratories withdrew from the import the sport-hunted trophy of one East, Suite 125, Channelview, TX 77530, male bontebok (Damaliscus pygarcus 713–457–3784 (formerly: Drug Labs of National Laboratory Certification Program during July. dorcas) culled from a captive herd Texas) maintained under the management Presbyterian Laboratory Services,1851 East Richard Kopanda, Third Street, Charlotte, NC 28204, 800– program of the Republic of South Africa, Executive Officer, Substance Abuse and for the purpose of enhancement of the 473–6640 Mental Health Services Administration. Puckett Laboratory, 4200 Mamie St., survival of the species. Hattiesburgh, MS 39402, 601–264–3856/ [FR Doc. 96–19490 Filed 7–31–96; 8:45 am] Written data or comments should be 800–844–8378 BILLING CODE 4160±20±U submitted to the Director, U.S. Fish and 40244 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Wildlife Service, Office of Management Virginia 22203. Phone: (703/358–2104); This notice is given in accordance Authority, 4401 North Fairfax Drive, FAX: (703/358–2281). with Section 171.1(e) of part 171, Room 432, Arlington, Virginia 22203 Dated: July 26, 1996. Subchapter H, Chapter 1, of Title 25 of and must be received by the Director Susan Lieberman, the Code of Federal Regulations, which within 30 days of the date of this provides for the Area Director to fix and publication. Chief, Branch of Operations, Office of Management Authority. announce the rates for annual operation Documents and other information and maintenance assessments and [FR Doc. 96–19509 Filed 7–31–96; 8:45 am] submitted with these applications are related information of the Walker River available for review, subject to the BILLING CODE 4310±55±P Irrigation Project for Calendar Year 1997 requirements of the Privacy Act and and subsequent years. Freedom of Information Act, by any part Bureau of Indian Affairs The purpose of this notice is to who submits a written request for a announce a proposed increase in the copy of such documents to the Operation and Maintenance Rate Walker River Project assessment rates following office within 30 days of the Adjustment: Walker River Irrigation proportionate with actual operation and date of publication of this notice: U.S. Project, Nevada maintenance costs. Fish and Wildlife Service, Office of The Bureau of Indian Affairs proposes Management Authority, 4401 North ACTION: Notice of proposed operation to increase the Walker River Indian Fairfax Drive, Room 420(c), Arlington, and maintenance rate increase. Irrigation Project’s operation and Virginia 22203, Phone: (703–358–2104); maintenance (O&M) assessment rate Fax (703–358–2281). SUMMARY: The Bureau of Indian Affairs proposes to change the assessment rates from the current $7.32 per assessable Dated: July 26, 1996. for operating and maintaining the acre for trust lands and $15.29 per Caroline Anderson, Walker River Irrigation Project for 1997 assessable acre non-trust lands to $15.29 Acting Chief, Branch of Permits, Office of and subsequent years. The assessment per acre for all project lands. Management Authority. rates are based on a prepared estimate Interest and Penalty Fees [FR Doc. 96–19508 Filed 7–31–96; 8:45 am] of the cost of normal operation and Interest and penalty fees will be BILLING CODE 4310±55±U maintenance of the irrigation project. assessed, where required by law, on all Normal operation and maintenance delinquent operation and maintenance means the expenses we incur to provide assessment charges as prescribed in the Notice of Receipt of Application for direct support or benefit to the project’s Code of Federal Regulations, Title 4, Approval activities for administration, operation, Part 102, Federal Claims Collection maintenance, and rehabilitation. We The following applicant has applied Standards; and 42 BIAM Supplement 3, must include at least: for approval to conduct certain activities part 3.8 Debt Collection Procedures. with birds that are protected in (a) Personnel salary and benefits for accordance with the Wild Bird the project engineer/manager and our Dated: July 24, 1996. Conservation Act of 1992. This notice is employees under his management Ada E. Deer, provided pursuant to Section 112(4) of control, Assistant Secretary—Indian Affairs. the Wild Bird Conservation Act of 1992, (b) Materials and supplies, [FR Doc. 96–19589 Filed 7–31–96; 8:45 am] 50 CFR 15.26(c). (c) Major and minor vehicle and BILLING CODE 4310±02±P Applicant: Mark Schriver, equipment repairs, Orwigsburg, PA. The applicant wishes (d) Equipment, including to amend his approved cooperative transportation, fuel, oil, grease, lease Bureau of Land Management breeding program to include the Red- and replacement, [CA±060±1990±00] naped shaheen (Falco peregrinus (e) Capitalization expenses, (f) Acquisition expenses, and babylonicus) and the Steppe eagle Nominations for the Bureau of Land (Aquila rapax nipalensis). The Virginia (g) Other expenses we determine necessary to properly perform the Management's California Desert Falconers’ Association maintains District Advisory Council responsibilty for the oversight of the activities and functions characteristic of program. an irrigation project. AGENCY: Bureau of Land Management, Written data or comments should be FOR FURTHER INFORMATION CONTACT: Area Interior. submitted to the Director, U.S. Fish and Director, Bureau of Indian Affairs, ACTION: Call for nominations for the Wildlife Service, Office of Management Phoenix Area Office, 1 North First Bureau of Land Management’s Authority, 4401 North Fairfax Drive, Street, Phoenix, Arizona 85001–0010, California Desert District Advisory Room 430, Arlington, Virginia 22203 telephone (602) 379–6600. Council. and must be received by the Director DATES: Comments must be submitted on within 30 days of the date of this or before September 3, 1996. SUMMARY: The Bureau of Land publication. SUPPLEMENTARY INFORMATION: The Management’s California Desert District Documents and other information authority to issue this document is is soliciting nominations from the submitted with these applications are vested in the Assistant Secretary of public for its District Advisory Council available for review, subject to the Indian Affairs by 5 U.S.C. 301 and the to serve on the 1997–1999 three-year requirements of the Privacy Act and Act of August 15, 1914 (38 Stat. 583, 25 term. Council members provide advice Freedom of Information Act, by any U.S.C. 385). The Secretary has delegated and recommendations to BLM on the party who submits a written request for this authority to the Assistant Secretary- management of public lands in southern a copy of such documents to the Indian Affairs pursuant to part 209 California. Public notice begins with the following office within 30 days of the Departmental Manual, Chapter 8. 1A publication date of this notice. date of publication of this notice: U.S. and Memorandum dated January 25, Nomination will be accepted through Fish and Wildlife Service, Office of 1994, from Chief of Staff, Department of August 31, 1996. Management Authority, 4401 North the Interior, to Assistant Secretaries, and The California Desert District Fairfax Drive, Room 420C, Arlington, Heads of Bureaus and Offices. Advisory Council is compressed of 15 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40245 private individuals who represent of the geographical area of the Council. Please note this is the first issuance of different interests and advise BLM All nominations must be accompanied a multi-sale Call by MMS and the first officials on policies and programs by letters of reference from represented Call in the Proposed 1997–2002 5-Year concerning the management of 10 interests or organizations. Program. Responses are requested million acres of public land in southern The nomination period will end relative to all sales included herein. The California. The Council meets in formal August 31, 1996. Nominations for the MMS has modified its prelease planning session three to four times each year in District Advisory Council should be and decision process for proposed various locations throughout the sent to the District Manager, California Central and Western Gulf lease sales. California Desert District. Desert District, 6221 Box Springs This multi-sale process is based on over Section 309 of the Federal Land Boulevard, Riverside, California 92507. a dozen years of leasing at an annual Policy and Management Act (FLPMA) FOR FURTHER INFORMATION CONTACT: pace which have shown that the sale directs the Secretary of the Interior to Doran Sanchez, Bureau of Land proposals in the CGOM (and the involve the public in planning and Management, Public Affairs, (909) 697– WGOM) are very similar from year to issues related to management of BLM 5215. year. The multi-sale process in the administered lands. The Secretary also Central Gulf will incorporate planning Dated: July 26, 1996. selects council nominees consistent and analysis for 5 sales: sales 169, 172, with the requirements of the Federal Alan Stein, 175, 178, and 182. From the initial step Advisory Committee Act (FACA), which Acting District Manager. in the process (the Call for Information requires nominees appointed to the [FR Doc. 96–19561 Filed 7–31–96; 8:45 am] and Nominations) through the final EIS/ council be balanced and representative BILLING CODE 4310±JB±M Consistency Determination (CD) step, of the various interests concerned with this process will cover multiple sale the management of the public lands. proposals. There will also be complete The five positions to be filled include: Minerals Management Service NEPA, OCSLA, and CZMA coverage for each sale after the first sale—either an —one transportation/right-of-way Outer Continental Shelf, Central Gulf of representative; Environmental Assessment (EA) or Mexico, Oil and Gas Lease Sales 169, Supplemental EIS and a CD, focusing —one recreation representative; 172, 175, 178, and 182 —the elected official (county primarily on new issues or changes in government) representative; AGENCY: Minerals Management Service a State’s Federally-approved coastal —two public-at-large representatives. (MMS), Interior. management plan, will be prepared for each subsequent sale. A proposed and ACTION: Call for Information and Council members serve three-year final Notice of Sale will be prepared for Nominations, and Notice of Intent (Call/ terms and may be nominated for each proposed sale. (The multi-sale NOI) to Prepare an Environmental reappointment for an additional three- process in the Western Gulf will Impact Statement (EIS). year term. Council members serve incorporate planning and analysis for 4 without compensation except for Call for Information and Nominations sales: sales 171, 174, 177, and 180. A reimbursement of travel expenditures Call for that multi-sale process is 1. Authority incurred in the course of their duties. expected to be issued later this year.) Any group or individual may nominate This Call is published pursuant to the This Call does not indicate a a qualified person for any position, Outer Continental Shelf (OCS) Lands preliminary decision to lease in the area based upon their education, training, Act as amended (43 U.S.C. 1331–1356, described below. Final delineation of knowledge, or experience. This term (1994)) (OCSLA), and the regulations the area for possible leasing will be would begin January 1, 1997. issued thereunder (30 CFR Part 256). made at a later date and in compliance The Council also is balanced with applicable laws including all geographically, and BLM will try to find 2. Purpose of Call requirements of the NEPA and OCSLA. qualified representatives from each area. The purpose of the Call is to gather Establish departmentall procedures will The California Desert District covers information for the following tentatively be employed. portions of eight counties, and includes scheduled Outer Continental Shelf 3. Description of Area 10 million acres of public land in the (OCS) Lease Sales in the Central Gulf of California Desert Conservation Area and Mexico (CGOM): The general area of this Call covers 300,000 acres of scattered parcels in San the entire CGOM. The CGOM is Diego, western Riverside, western San Sale No. Tentative sale date bounded on the east by approximately Bernardino, Orange, and Los Angeles 88 degrees W. longitude. Its western Counties (known as the South Coast). 169 ...... March, 1998. boundary begins at the offshore Nominations must be submitted to the 172 ...... March, 1999. boundary between Texas and Louisiana District Manager by August 31, 1996, 175 ...... March, 2000. and proceeds southeasterly to 178 ...... March, 2001. and must include the name of the 182 ...... March, 2002. approximately 28 degrees N. latitude, nominee; work and home addresses and thence east to approximately 92 degrees telephone numbers; a biographical Information and nominations on oil W. longitude, thence sough to the sketch that includes the nominee’s and gas leasing, exploration, and provisional maritime boundary with work, public service record, and development and production within the Mexico which constitutes the southern applicable outside interests that qualify CGOM are sought from all interested boundary of the area. The northern part him or her for the position; and the parties. This early planning and of the area is bounded by the Federal- specific category of interest in which the consultation step is important for State boundary offshore Louisiana, nominee is best qualified to offer advice ensuring that all interests and concerns Mississippi, and Alabama. The area and council. are communicated to the Department of available for nominations and Individuals may nominate themselves the Interior for future decisions in the comments at this time consists of or others. Nominees will be evaluated leasing process pursuant to the OCSLA, approximately 47.8 million acres. based on their education, training, and regulations at 30 CFR part 256. A standard Call for Information Map experience of the issues, and knowledge depicting the CGOM on a block-by- 40246 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices block basis is available without charge Section at (504) 736–2761. Official CGOM since 1973. The emphasis, from: Minerals Management Service, Protraction Diagrams and Leasing Maps including continuing studies, has been Public Information Unit (MS 5034), can be purchased from the Public on environmental characterization of 1201 Elmwood Park Boulevard, New Information Unit referred to above. biologically sensitive habitats, physical Orleans, Louisiana 70123–2394, Comments are sought from all oceanography, ocean-circulation Telephone: 1–800–200–GULF. interested parties about particular modeling, and ecological effects of oil 4. Area Excluded from this Call. The geological, environmental, biological, and gas activities. A complete listing of entire CGOM is proposed for possible archaeological and socioeconomic available study reports, and information leasing and no areas are excluded from conditions or conflicts, or other for ordering copies, can be obtained this Call. information that might bear upon the from the Public Information Unit potential leasing and development of 5. Instructions on Call referenced above. The reports may also particular areas. Comments are also be ordered, for a fee, from the U.S. Indications of interest and comments sought on possible conflicts between Department of Commerce, National must be received no later than 45 days future OCS oil and gas activities that Technical Information Service, 5285 following publication of this document may result from the proposed sales and Port Royal Road, Springfield, Virginia in the Federal Register in envelopes State Coastal Management Programs 22161, or telephone (703) 487–4650. In labeled ‘‘Nominations for Proposed (CMP’s). If possible, these comments addition, a program status report for 1998–2002 Lease Sales in the Central should identify specific CMP policies of continuing studies in this area can be Gulf of Mexico’’ or ‘‘Comments on the concern, the nature of the conflict obtained from the Chief, Environmental Call for Information and Nominations foreseen, and steps that the MMS could Studies Section, Gulf of Mexico OCS for Proposed 1998–2002 Lease Sales in take to avoid or mitigate the potential Region (see address under ‘‘Description the Central Gulf of Mexico.’’ The conflict. Comments may either be in of Area’’), or telephone (540) 736–2896. standard Call for Information Map and terms of broad areas or restricted to Summary Reports and Indices and indications of interest and/or comments particular blocks of concern. Those technical and geological reports are must be submitted to the Regional submitting comments are requested to available for review at the MMS, Gulf of Supervisor, Leasing and Environment, list block numbers or outline the subject Mexico OCS Region. Copies of the Gulf Gulf of Mexico OCS Region, at the above area on the standard Call for of Mexico OCS Regional Summary address. Information Map. Reports may be obtained from the The standard Call for Information Technical Communication Service, Map delineates the Call area, all of 6. Use of Information From Call Minerals Management Service, at 381 which has been identified by the MMS Information submitted in response to Elden Street, Herndon, Virginia 20170, as having potential for the discovery of this Call will be used for several phone: (703) 787–1080. accumulations of oil and gas. purposes. First, responses will be used Respondents are requested to indicate to identify the areas of potential for oil 8. Tentative Schedule interest in and comment on any or all and gas development. Second, The following is a list of tentative of the Federal acreage within the comments on possible environmental milestone dates applicable to sales boundaries of the Call area that they effects and potential use conflicts will covered by this Call: wish to have included in each of the be used in the analysis of environmental proposed sales in the CGOM. conditions in and near the Call area. Multi-sale proc- Although individual indications of This information will be used to make ess milestones interest are considered to be privileged a preliminary determination of the for proposed and proprietary information, the names 1998±2002 potential advantages and disadvantages CGOM sales of persons or entities indicating interest of oil and gas exploration and or submitting comments will be of development to the region and the Call/NOI Published ...... July 1996. public record. Those indicating such Nation. A third purpose for this Call is Comments due on Call/ September 1996. interest are required to do so on the to use the comments collected in the NOI. standard Call for Information Map by scoping process for the Environmental Area Identification ...... September 1996. outlining the areas of interest along Impact Statement (EIS) and to develop Draft EIS published ...... June 1997. block lines. proposed actions and alternatives. Public Hearings ...... July 1997. Respondents should rank areas in Fourth, comments may be used in Final EIS and CD pub- November 1997. lished. which they have expressed interest developing lease terms and conditions according to priority of their interest to ensure safe offshore operations. And, (e.g., priority 1 [high], 2 [medium], or 3 fifth, comments may be used to assess Sale-specific process [low]). Respondents are encouraged to potential conflicts between offshore gas milestones for pro- be specific in indicating blocks by posed 1998±2002 and oil activities and a State CMP. CGOM sales priority, as blanket nominations on large 7. Existing Information areas are not useful in the analysis of Request for Informa- 12 months before industry interest. Areas where interest The MMS routinely assesses the tion to Begin Sale- each sale. has been indicated but on which status of information acquisition efforts Specific Process. respondents have not indicated and the quality of the information base Environmental Re- 4 to 7 months before priorities will be considered priority 3 for potential decisions on tentatively view (EA/FONSI/ each sale. (low). scheduled lease sales. As a result of this SEIS) published. Respondents may also submit a continually ongoing assessment, it has Proposed Notice and 4 months before each detailed list of blocks nominated (by been determined that the status of the Consistency Deter- sale. mination. Official Protraction Diagram and existing data available for planning, Final Notice of Sale 1 month before each Leasing Map designations) to ensure analysis, and decisionmaking is sale. correct interpretation of their adequate and extensive. Tentative Sale Date March of each year. nominations. Specific questions may be An extensive environmental studies directed to the Chief, Leasing Activities program has been underway in the Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40247

Notice of Intent to Prepare an ‘‘review burnout’’ in Federal, State, and Department of the Interior, has prepared Environmental Impact Statement local governments, and the public. a final environmental impact statement The proposed actions analyzed in the (FEIS) assessing the potential impacts of 1. Authority EIS will be each of the sales on the 5- the proposed Comprehensive The NOI is published pursuant to the year schedule for the central Gulf of Management and Use Plan for the Juan regulations (40 CFR 1501.7) Mexico planning area. The EIS will Bautista de Anza National Historic implementing the provisions of the include an analysis of the Trail, a 1200-mile trail in California and National Environmental Policy Act of environmental effects of holding one Arizona. 1969 as amended (42 USC 4321 et seq. sale, a sale ‘‘typical’’ of any in the The proposal (alternative D), which is (1988))(NEPA). planning area, which may be held in the the National Park Service’s remainder of the 5-year program. The comprehensive management and use 2. Purpose of Notice of Intent scenario will cover a range of resources plan for the trail, calls for marking the Pursuant to the regulations and activities that will encompass any historic route, identifies an auto route, implementing the procedural provisions of the four follow-up proposed actions. and envisions a continuous multi-use of the NEPA, the MMS is announcing its Later sales can then be compared to the recreational retracement trail. The intent to prepare a multi-sale EIS on the initial analysis in an environmental National Park Service (NPS) will take an tentatively scheduled 1998–2002 oil and assessment or supplemental active role in administrative oversight of gas leasing proposals in the CGOM, off environmental impact statement. the trail by helping protect a trail right- the States of Louisiana, Mississippi, and Formal consultation with the public of-way and historic, cultural, and Alabama. The NOI also serves to will be initiated in subsequent years to natural resources associated with the announce the scoping process that will obtain input to assist in the trail. The NPS will certify eligible sites be followed for this EIS. Throughout the determination of whether or not the and segments and provide leadership of scoping process, Federal Agencies and information and analyses in the original state, regional, and local governments, State and local governments and other multisale EIS are still valid. An private landowners, organizations, interested parties have the opportunity Information Request would be issued corporations, and individuals to create a to aid the MMS in determining the that will specifically describe the action continuous and unified trail. The NPS significant issues and alternatives to be for which we are requesting input. will form partnerships with nonprofit groups supporting the Anza Trail. analyzed in the EIS. 4. Instructions on NOI to Prepare an EIS The EIS analysis will focus on the Interpretive programs and a system of Federal Agencies and State and local wayside exhibits will enhance visitor potential environmental effects of governments and other interested opportunities along the route. A leasing, exploration, and development parties are requested to send their planned promotional and tourism of the blocks included in the areas written comments on the scope of the program will increase visitor awareness defined in the Area Identification EIS, significant issues which should be of American Indian and Spanish procedure as the proposed areas of the addressed, and alternatives that should colonial cultures and history related to Federal actions. Alternatives to the be considered to the Regional the Anza expeditions to Alta (Upper) proposals which may be considered for Supervisor, Leasing and Environment, California. each sale are to delay the sale, cancel Gulf of Mexico OCS Region, at the The other alternatives include No the sale, or modify the sale. address stated under ‘‘Description of Action (alternative AA), Single Theme 3. New EIS procedure Area.’’ Comments should be enclosed in (alternative A), Multi-theme (alternative an envelope labeled ‘‘Comments on the B), and Broad Outreach (alternative C). MMS is proposing to prepare a single NOI to Prepare an EIS on the proposed Alternative AA represents what would EIS for all five CGOM sales in the 1998–2002 Lease Sales in the Central happen if there were no national trail. proposed 1998–2002 period. The Gulf of Mexico.’’ Comments on the NOI Alternative A would limit trail resource estimates and scenario should be submitted no later than 45 recognition and resource protection to information on which the EIS analyses days from publication of this Notice. federal lands and state parks and focus are based will be presented as a range Scoping meetings will be held in interpretation on only the 1775–76 Anza of resources and activities that would appropriate locations to obtain trek. Trail uses would be limited to encompass any of the five proposed additional comments and information those of the original expedition. sales in the CGOM. regarding the scope of the EIS. Management would emphasize The proposal will provide several Dated: July 26, 1996. volunteers, and the National Park benefits. It will focus the NEPA process Service would play a minor Cynthia Quarterman, by making impact types and levels that administrative role. Alternative B is change between sales more easily Director, Minerals Management Service. similar to the proposal but would not recognizable. New issues will be more [FR Doc. 96–19547 Filed 7–31–96; 8:45 am] include the promotional aspects. easily highlighted for the decision- BILLING CODE 4310±MR±M Alternative C is similar to the proposal, makers and public. For sales after 1998, but would broaden the interpretive the process will allow for presale themes to the overlay of history along planning that spans only one year, National Park Service the trail route from prehistory to the rather than the current two-year process Comprehensive Management and Use present and would include points of which causes confusion because of the Plan, Juan Bautista de Anza National interest associated with the trail overlap in planning for sales in Historic Trail, California and Arizona; corridor. successive years and makes it difficult Notice of Availability of Final The environmental consequences of for the decisionmaker, industry, and the Environmental Impact Statement the proposed action and alternatives public to keep track of which sale were addressed in the draft process is being referred to for any given SUMMARY: Pursuant to Section 102 (2) environmental impact statement (DEIS) decision point. It will also eliminate the (C) of the National Environmental and are presented with modifications in repetitive issuance of a complete EIS for Policy Act of 1969 (Pub. L. 91–190 as this FEIS. The public review period for each sale, a practice that has resulted in amended), the National Park Service, the DEIS ended March 1, 1995. 40248 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Responses to public and agency DEPARTMENT OF JUSTICE Enforcement Administration (DEA) for comment on the DEIS are included in registration as a bulk manufacturer of the FEIS. This programmatic FEIS Notice of Lodging of Consent Decree the basic classes of controlled considers impacts to cultural resources, Pursuant to the Clean Water Act substances listed below: natural resources, and the In accordance with Departmental socioeconomic environment. No Policy, 28 CFR § 50.7, notice is hereby Drug Schedule significant adverse impacts are given that a Consent Decree in United Methaqualone (2565) ...... I anticipated. States v. Cumberland Farms, Inc., et al., Lysergic acid diethylamide (7315) I DATES: The no-action period for the plan Civil No. 91–10051–MLW (D. Mass.), Tetrahydrocannabinols (7370) ...... I will commence when the was lodged with the United States 3,4-Methylenedioxyamphetamine Environmental Protection Agency District Court for the District of (7400) ...... I formally announces the availability of Massachusetts on July 25, 1996. 3,4-Methylenedioxy-N- the FEIS in the Federal Register, and The Consent Decree concerns alleged ethylamphetamine (7404) ...... I end 30 days thereafter. violations of section 301(a) of the Clean 3,4-Methylenedioxyamphetamine Water Act, 33 U.S.C. § 1311(a), resulting ADDRESSES: Inquiries and comments on (7405) ...... I the FEIS should be directed to: from the defendants’ discharge of fill 4-Methoxyamphetamine (7411) .... I material into wetlands without a permit Superintendent, Pacific Great Basin Heroin (9200) ...... I from the U.S. Army Corps of Engineers. System Support Office, 600 Harrison Normorphine (9313) ...... I Cumberland Farms, Inc. and other Street, Suite 600, San Francisco, CA 3-Methylfentanyl (9813) ...... I parties unlawfully filled freshwater 94107, Attention: Meredith Kaplan. The Amphetamine (1100) ...... II wetlands to create approximately 176 telephone number for further Methamphetamine (1105) ...... II acres of cranberry beds at three separate information is (415) 744–3968. Phencyclidine (7471) ...... II sites in Hanson and Halifax, Copies of the plan and FEIS are Cocaine (9041) ...... II Massachusetts. Under the Consent Codeine (9050) ...... II available at the Pacific Great Basin Decree, Cumberland Farms, Inc. will Diphenoxylate (9170) ...... II System Support Office at the above pay a $50,000 civil penalty, establish a Benzoylecgonine (9180) ...... II address. Copies are also available for 30 acre wildlife and wetlands corridor, Hydrocodone (9193) ...... II inspection at libraries located in cities and transfer 225 acres of property to the Methadone (9250) ...... II along the Anza Trail route. Massachusetts Department of Fisheries, Morphine (9300) ...... II Dated: July 22, 1996. Wildlife and Environmental Law Fentanyl (9801) ...... II Patricia L. Neubachen, Enforcement for conservation purposes. The Department of Justice will receive Acting Field Director, Pacific West Area. No comments or objections have been [FR Doc. 96–19599; Filed 7–31–96; 8:45 am] written comments relating to the proposed Consent Decree for a period of received. DEA has considered the BILLING CODE 4310±10±P 30 days from the date of publication of factors in Title 21, United States Code, this notice. Comments should be Section 823(a) and determined that the addresses to James W. Rubin, Attorney, registration of High Standard Products U.S. Department of Justice, Policy, to manufacture the listed controlled JUDICIAL CONFERENCE OF THE substances is consistent with the public UNITED STATES Legislation and Special Litigation Section, Environment and Natural interest at this time. Therefore, pursuant Hearing of the Judicial Conference Resources Division, P.O. Box 4390, Ben to 21 U.S.C. § 823 and 28 0.100 and Advisory Committee on Rules of Franklin Station, Washington, DC 0.104, the Deputy Assistant Appellate Procedure 20044–4390, and should refer to United Administrator, Office of Diversion States v. Cumberland Farms, Inc., et al., Control, hereby orders that the AGENCY: Judicial Conference of the Civil No. 91–10051–MLW (D. Mass.). application submitted by the above firm United States, Advisory Committee on The Consent Judgment may be for registration as a bulk manufacturer Rules of Appellate Procedure. examined at the Clerk’s Office, United of the basic classes of controlled ACTION: Notice of Cancellation of Open States District Court for the District of substances listed above is granted. Hearing. Massachusetts, J.W. McCormack Post Office and Court House, 90 Devonshire Dated: July 25, 1996. Gene R. Haislip, SUMMARY: The Appellate Rules Street, Boston, MA 02109. Committee public hearing scheduled to Anna Wolgast, Deputy Assistant Administrator, Office of be held in Denver, Colorado on August Acting Chief, Environmental Defense Section, Diversion Control, Drug Enforcement 2, 1996, has been canceled. [Original Environment and Natural Resources Division. Administration. notice of hearing appeared in the [FR Doc. 96–19596 Filed 7–31–96; 8:45 am] [FR Doc. 96–19611 Filed 7–31–96; 8:45 am] Federal Register of May 24, 1996 (61 FR BILLING CODE 4410±01±M BILLING CODE 4410±09±M 26207).] FOR FURTHER INFORMATION CONTACT: Drug Enforcement Administration John K. Rabiej, Chief, Rules Committee Support Office, Administrative Office of Manufacturer of Controlled the United States Courts, Washington, Substances; Notice of Registration DC 20544, telephone (202) 273–1820. By Notice dated March 15, 1996, and Dated: July 26, 1996. published in the Federal Register on John K. Rabiej, March 27, 1996, (61 FR 13518), High Chief, Rules Committee Support Office. Standard Products, 1100 W. Florence [FR Doc. 96–19544 Filed 7–31–96; 8:45 am] Avenue, #8, Inglewood, California BILLING CODE 2201±01±M 90301, made application to the Drug Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40249

DEPARTMENT OF LABOR For the Nuclear Regulatory Commission. regulatory programs to assure worker safety, John W.N. Hickey, avoid regulatory gaps in the protection of workers, and avoid duplicative regulation. Occupational Safety and Health Chief, Enrichment Branch, Division of Fuel B. The purpose of this Memorandum of Administration Cycle Safety and Safeguards. Understanding (MOU) between NRC and For the Occupational Safety and Health OSHA is to delineate the general areas of NUCLEAR REGULATORY Administration. responsibility of each agency; to describe COMMISSION Gregory Watchman, generally the efforts of the agencies to Deputy Assistant Secretary for Occupational achieve worker protection; and to provide [NRC Docket Nos. 70±7001; 70±7002] Safety and Health. guidelines for coordination of interface activities between the two agencies at the Memorandum of Understanding Between the Memorandum of Understanding With GDPs. The MOU applies both to USEC and Nuclear Regulatory Commission and the any private successor corporation. Respect to the Gaseous Diffusion Occupational Safety and Health C. DOE remains the owner of the GDP sites Plants Administration With Respect to the Gaseous and facilities, and continues to conduct and Diffusion Plants regulate activities at the sites that are outside AGENCIES: Nuclear Regulatory I. Legislation and Authorities NRC jurisdiction. This MOU does not apply Commission and Occupational Safety to DOE facilities that are not leased, and does The Atomic Energy Act of 1954, as and Health Administration, Labor. not affect jurisdictional issues between amended by the Energy Policy Act of 1992 OSHA and DOE. ACTION: Publication of Memorandum of (the Act), created the United States III. Hazards Associated With GDPS Understanding between the Nuclear Enrichment Corporation (USEC), a government corporation, to manage and Regulatory Commission (NRC) and the Working conditions at the GDPs involve operate the two uranium gaseous diffusion both radiological and non-radiological Occupational Safety and Health enrichment plants (GDPs) in Paducah, occupational hazards. Frequently, conditions Administration (OSHA). Kentucky, and Piketon, Ohio, owned and involve a combination of these hazards. previously operated by the U.S. Department Examples are: (1) radioactive materials and SUMMARY: NRC and OSHA have entered of Energy (DOE). Pursuant to the Act, on July other chemicals, in the same work area, that 1, 1993, USEC began leasing from DOE into a Memorandum of Understanding present potential radiological and chemical substantial operating portions of the two hazards, (2) hazardous chemicals that could that describes the authorities of NRC GDPs. Section 1312 of the Act requires USEC adversely affect radiological safety or could and OSHA in implementing the Energy to be subject to and comply with the be released from the processing of radioactive Policy Act of 1992 provision on Occupational Safety and Health Act (OSH materials, and (3) a fire or explosion hazard occupational safety and health hazards Act) in the same manner, and to the same that could cause a release of radioactive at the gaseous diffusion plants, extent, as an employer is subject to the OSH material and other hazardous chemicals. Act, notwithstanding sections 3(5), 4(b)(1), currently operated by the U.S. In general, NRC will apply its standards to and 19 of the OSH Act. working conditions involving radiological Enrichment Corporation (USEC), In addition, the Act requires the Nuclear hazards, OSHA will apply its standards to covering inspection, investigation, Regulatory Commission (NRC) to promulgate working conditions involving non- enforcement, and other regulation standards applicable to the GDPs, to protect radiological hazards, and both agencies will relating to such hazards. A the public health and safety from radiological apply their standards to conditions involving memorandum of agreement is required hazards, and to provide for the common a combination of hazards. NRC and OSHA defense and security. NRC must establish an by the new USEC Privatization Act, and will coordinate their efforts as specified in annual certification process for compliance this memorandum. will apply to operations of USEC and with these standards. NRC published its final any corporation which succeeds USEC. standards, 10 CFR Part 76, ‘‘Certification of IV. NRC Responsibilities The text of the Memorandum of Gaseous Diffusion Plants,’’ on September 23, NRC is responsible for certifying two Understanding is set forth below. 1994 (59 FR 48944). NRC will assume leased GDPs, as mandated by the Act and regulatory oversight responsibility with other applicable statutes. NRC will conduct FOR FURTHER INFORMATION CONTACT: Mr. respect to USEC’s compliance with the Part compliance certification in accordance with John W. N. Hickey, telephone 301–415– 76 standards after NRC completes the first 10 CFR Part 76. This will include regulation 7192, Office of Nuclear Material Safety compliance certification process. of radiological hazards and any other hazards and Safeguards, MS T–8A–33, U.S. The USEC Privatization Act, signed into that may affect radiological safety of the law on April 26, 1996, provides for facilities. Nuclear Regulatory Commission, establishment of a private corporation to NRC’s responsibilities include protecting Washington, DC 20555; or Mr. Gregory succeed USEC. The USEC Privatization Act public health and safety, including workers, Watchman, telephone 202–219–6091, specifies that the private corporation will be and protecting and safeguarding materials Occupational Safety and Health subject to the OSH Act, but the exceptions to and plants in the interest of national security. Administration, U.S. Department of sections 3(5), 4(b)(1), and 19 were removed Agency functions are performed through: Labor, 200 Constitution Avenue, NW., with respect to the private successor. standards-setting and rulemaking; technical Furthermore, the USEC Privatization Act reviews and studies; conduct of public Washington, DC 20210. requires NRC and Occupational Safety and hearings; issuance of compliance certificates; Dated at Rockville, Maryland, this 26th day Health Administration (OSHA) to enter into inspection, investigation and enforcement; of July 1996. a memorandum of agreement, within 90 days and evaluation of operating experience. of enactment of the Privatization Act, to govern the exercise of their authority over V. OSHA Responsibilities occupational safety and health at the GDPs. OSHA is responsible for administering the requirements established under the OSH Act II. Background and Purpose and OSHA standards. Under the OSH Act, A. Both NRC and OSHA have employers have a general duty to furnish responsibilities concerning occupational each employee with a place of employment safety and health at GDPs. Because it is not that is free from recognized hazards that can always practical to sharply identify cause death or serious physical harm and to boundaries between the nuclear and comply with all OSHA standards, rules, and radiological safety regulated by NRC and the regulations. OSHA standards contain industrial safety regulated by OSHA, the two requirements designed to protect employees agencies have agreed to coordinate their against workplace hazards. Under the OSH 40250 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Act, OSHA is authorized among other things appropriate OSHA Regional Office in IX. Effective Date, Revision, and to conduct workplace health and safety accordance with existing NRC procedures. Termination inspections, including inspections in These procedures provide for protection of This memorandum shall be effective upon response to employee complaints, and to the identity of the complainant to the extent signature by authorized representatives of the issue citations and conduct enforcement feasible. respective agencies, and shall continue in actions. E. To the extent practicable, OSHA effect until revised by mutual agreement, Section 1312 of the Energy Policy Act inspectors will inform the NRC Site Office, unless terminated by either party upon 120 contains certain exceptions to the OSH Act on arrival on site, of OSHA inspections in days notice in writing. as applied to USEC. The USEC Privatization areas where combined radiological and non- Act deleted these exceptions with respect to radiological hazards are present as described For the Nuclear Regulatory Commission. application of the OSH Act to a private in Paragraph III. Findings from such Dated: July 26, 1996. corporation which succeeds USEC. inspections will be shared and coordinated James M. Taylor, VI. Implementation with NRC. Executive Director for Operations. F. OSHA Regional Offices will inform the In recognition of the agencies’ authorities NRC Region III Office or Site Office of For the Occupational Safety and Health and responsibilities enumerated above, the matters related to radiological hazards or Administration. following procedures will be followed: combined hazards, when such matters come Dated: July 26, 1996. A. NRC will apply its standards in to their attention during inspections or Joseph A. Dear, inspection and enforcement of working through complaints. Workers’ complaints conditions involving radiological hazards or Assistant Secretary for Occupational Safety falling within NRC jurisdiction will be and Health. combined hazards as described in Paragraph handled by NRC in accordance with existing III. OSHA will apply its standards in procedures. [FR Doc. 96–19609 Filed 7–31–96; 8:45 am] inspection and enforcement of working G. Worker representatives may accompany BILLING CODE 7590±01±P conditions involving non-radiological NRC inspectors on inspections of working hazards or combined hazards as described in conditions as provided in 10 CFR Part 19. Paragraph III. OSHA will not normally Worker representatives may accompany conduct enforcement actions with regard to OSHA inspectors as provided in 29 CFR Part NATIONAL ARCHIVES AND RECORDS GDP working conditions that involve solely 1903. ADMINISTRATION radiological hazards. H. The employee protection provisions in B. It is not intended that either agency will Section 211 of the Energy Reorganization Act Renewal of Advisory Committee on in any way be restricted from regulating of 1974, as amended, 10 CFR Part 76.7, and Presidential Libraries safety within their respective jurisdictions. If Section 11 (c) of the OSH Act are applicable NRC or OSHA identifies, or is notified by the to employees of USEC and contractors at its This notice is published in operator of, a conflict between NRC and administered facilities. accordance with the provisions of OSHA requirements, both agencies will work I. In recognition of the fact that both NRC section 9(a)(2) of the Federal Advisory together to resolve the concern promptly. and OSHA will conduct inspections in areas Committee Act (Pub. L. 92–463, 5 C. NRC has established a permanent site where combined hazards are present, OSHA U.S.C., App.) and advises of the renewal office and assigned full-time inspectors at will provide NRC personnel with basic each GDP, and plans to continue this of the National Archives and Records chemical and industrial safety training in Administration’s (NARA) Advisory arrangement for the foreseeable future. The OSHA safety standards, consistent with results of NRC inspections will be provided ongoing OSHA training programs and Committee on Presidential Libraries. In to OSHA on request, subject to applicable resource constraints. Also, NRC will provide accordance with Office of Management procedures to protect classified and OSHA personnel with training in basic and Budget (OMB) Circular A–135, proprietary information. The information radiation safety requirements, consistent OMB approved the inclusion of the will also be available in NRC local public with ongoing NRC training programs and Advisory Committee on Presidential document rooms, and available to GDP resource constraints. Details of such training Libraries in NARA’s ceiling of workers on request, except for any portions will be as mutually agreed to by the NRC discretionary advisory committees. The containing classified, proprietary, private, or Technical Training Center and the OSHA Committee Management Secretariat, other information withheld from the public National Training Institute. in accordance with applicable laws and General Services Administration, also regulations. NRC resident inspectors will also VII. Enforcement concurred with the renewal of the be available to discuss working conditions A. Each agency will conduct an inspection Advisory Committee on Presidential with workers. and enforcement program within its Libraries in correspondence dated June D. Although NRC does not conduct responsibilities as warranted. 21, 1996. inspections exclusively focused on non- B. Each agency will take enforcement The Archivist of the United States has radiological safety, in the course of actions as it deems appropriate within the determined that the renewal of the inspections related to radiological hazards or limits of its authorities. Upon completion of Advisory Committee is in the public combined hazards, NRC personnel may any NRC and/or OSHA inspections/ interest due to the expertise and identify non-radiological worker safety investigations associated with the same set of concerns. NRC will bring the identified facts or the same incident for which either valuable advice the Committee members matters to the attention of GDP management. agency intends to take enforcement action, provide on issues affecting the Significant worker safety concerns will be NRC and OSHA will consult with each other functioning of existing Presidential documented in writing and made available as on the results of their respective inspections libraries and library programs and the specified in Paragraph VI.C. In addition, and will jointly define the scope of development of future Presidential OSHA will be informed as follows: enforcement actions to minimize duplicative libraries. NARA will use the 1. Referral to OSHA of Hazards Identified enforcement actions and preclude Committee’s recommendations in our by NRC. If non-radiological worker safety duplicative civil penalties. implementation of strategies for the concerns are identified by NRC, or if USEC demonstrates a pattern of unresponsiveness VIII. Contacts efficient operation of the Presidential to non-radiological worker safety concerns NRC and OSHA will designate appropriate libraries. identified by others, NRC will inform the contacts for implementation of this Dated: July 24, 1996. appropriate OSHA Regional Office. memorandum. A list of OSHA contacts will L. Reynolds Cahoon, 2. Referral to OSHA of Worker Safety and be provided to the Director, Office of Nuclear Health Complaints. NRC will refer worker Material Safety and Safeguards, NRC. A list NARA Committee Management Officer. safety or health complaints, related to non- of NRC contacts will be provided to the [FR Doc. 96–19590 Filed 7–31–96; 8:45 am] radiological or combined hazards, to the Director of Policy, OSHA. BILLING CODE 7515±01±M Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40251

NATIONAL SCIENCE FOUNDATION Contact Person: Dr. Darryl Gorman, SBIR Special Emphasis Panel in Design, Program Director, SBIR Office, (703) 306– Manufacture, and Industrial Special Emphasis Panel in Design, 1391, Liselotte Schioler, Program Officer, Innovation; Notice of Meeting Manufacture, and Industrial Materials Research, (703) 306–1836, National Innovation; Notice of Meeting Science Foundation, 4201 Wilson Boulevard, In accordance with the Federal Arlington, VA 22230. Advisory Committee Act (Pub. L. 92– In accordance with the Federal Purpose of Meeting: To provide advice and 463, as amended), the National Science Advisory Committee Act (Pub L. 92– recommendations concerning proposals Foundation announces the following 463, as amended), the National Science submitted to the NSF for financial support. meeting: Foundation announces the following Agenda: To review and evaluate SBIR Name: Special Emphasis Panel in Design, meeting: Phase I proposals concerning Materials Research: Photonics as part of the selection Manufacture, and Industrial Innovation— Name: Special Emphasis Panel in Design, process for awards. (1194) Manufacture, and Industrial Innovation— Reason for Closing: The proposals being Date and Time: August 16, 1996, 8:30 (1194). reviewed include information of a a.m.–5:00 p.m. Date and Time: August 28, 1996, 8:30 proprietary or confidential nature, including Place: Room 310, National Science a.m.–5:00 p.m. technical information, financial data such as Foundation, 4201 Wilson Boulevard, Place: Rooms 360 and 380, National salaries, and personal information Arlington, VA 22230. Science Foundation, 4201 Wilson Boulevard, concerning individuals associated with the Type of Meeting: Closed. Arlington, VA 22230. proposals. These matters are exempt under 5 Contact Person: George Patrick Johnson, Type of Meeting: Closed. USC 552b(c) (4) and (6) of the Government SBIR Program Director, SBIR Office, (703) Contact Person: Sara Nerlove, SBIR in the Sunshine Act. 306–1391, Shi Chi Liu, Program Officer, Program Director, SBIR Office, Darryl ENG/CMS, (703) 306–1362, National Science Dated: July 29, 1996. Gorman, SBIR Program Director, SBIR Office, Foundation, 4201 Wilson Boulevard, (703) 306–1391, Gil Devey, Program Officer, M. Rebecca Winkler, Arlington, VA 22230. Biomedical Engineering (703) 306–1319, Committee Management Officer. Purpose of Meeting: To provide advice and Liselotte Schioler, Program Officer, Materials [FR Doc. 96–19581 Filed 7–31–96; 8:45 am] recommendations concerning proposals Research, (703) 306–1836, National Science submitted to the NSF for financial support. BILLING CODE 7555±01±M Foundation, 4201 Wilson Boulevard, Agenda: To review and evaluate SBIR Arlington, VA 22230. Phase I proposals concerning Civil Purpose of Meeting: To provide advice and Mechanical Systems, Mitigation as part of the recommendations concerning proposals Special Emphasis Panel in Design, selection process for awards. submitted to the NSF for financial support. Manufacture, and Industrial Reason for Closing: The proposals being Agenda: To review and evaluate SBIR Innovation; Notice of Meeting reviewed include information of a phase I proposals concerning Materials proprietary or confidential nature, including Research, Diamond Related Materials, In accordance with the Federal technical information, financial data such as Bioengineering and Environmental Advisory Committee Act (Pub L. 92– salaries, and personal information Systems—Biomedical Engineering and 463, as amended), the National Science concerning individuals associated with the Aiding the Disabled (BMEAD) as part of the Foundation announces the following proposals. These matters are exempt under 5 selection process for awards. meeting: U.S.C. 552b(c) (4) and (6) of the Government Reason for Closing: The proposals being in the Sunshine Act. reviewed include information of a Name: Special Emphasis Panel in Design, Dated: July 29, 1996. Manufacture, and Industrial Innovation— proprietary or confidential nature, including M. Rebecca Winkler, technical information, financial data such as (1194). salaries, and personal information Date and Time: August 19, 1996, 8:30 Committee Management Officer. concerning individuals associated with the a.m.–5:00 p.m. [FR Doc. 96–19583 Filed 7–31–96; 8:45 am] proposals. These matters are exempt under 5 Place: Room 530, National Science BILLING CODE 7555±01±M USC 552b(c) (4) and (6) of the Government Foundation, 4201 Wilson Boulevard, in the Sunshine Act. Arlington, VA 22230. Dated: July 29, 1996. Type of Meeting: Closed. Special Emphasis Panel in Design, Contact Person: Dr. Ritchie Coryell, SBIR M. Rebecca Winkler, Manufacture, and Industrial Program Director, SBIR Office, (703) 306– Innovation; Notice of Meeting Committee Management Officer. 1391, Rodger Baier, Program Officer, Ocean [FR Doc. 96–19579 Filed 7–31–96; 8:45 am] Sciences, Geosciences, (703) 306–1589, In accordance with the Federal BILLING CODE 7555±01±M National Science Foundation, 4201 Wilson Advisory Committee Act (Pub L. 92– Boulevard, Arlington, VA 22230. 463, as amended), the National Science Purpose of Meeting: To provide advice and recommendations concerning proposals Foundation announces the following Special Emphasis Panel in Design, meeting: Manufacture, and Industrial submitted to the NSF for financial support. Innovation; Notice of Meeting Agenda: To review and evaluate SBIR Name: Special Emphasis Panel in Design, Phase I proposals concerning Ocean Science Manufacture, and Industrial Innovation— In accordance with the Federal as part of the selection process for awards. (1194) Advisory Committee Act (Pub L. 92– Reason for Closing: The proposals being Date and Time: August 26, 1996, 8:30 463, as amended), the National Science reviewed include information of a a.m.–5:00 p.m. proprietary or confidential nature, including Foundation announces the following Place: Rooms 360 and 530, National technical information, financial data such as Science Foundation, 4201 Wilson Boulevard, meeting: salaries, and personal information Arlington, VA 22230. Name: Special Emphasis Panel in Design, concerning individuals associated with the Type of Meeting: Closed Manufacture, and Industrial Innovation— proposals. These matters are exempt under 5 Contact Person: Sara Nerlove, SBIR (1194) U.S.C. 552b(c) (4) and (6) of the Government Program Director, SBIR Office, George Patrick Date and Time: August 21, 1996, 8:30 in the Sunshine Act. Johnson, SBIR Program Director, SBIR Office, a.m.–5:00 p.m. M. Rebecca Winkler, (703) 306–1391, George Vermont and Place: Room 530, National Science William Weigand, Program Officers, Foundation, 4201 Wilson Boulevard, Committee Management Officer. Bioengineering and Environmental Systems Arlington, VA 22230. [FR Doc. 96–19582 Filed 7–31–96; 8:45 am] (703) 306–1318, Devendra P. Garg, Program Type of Meeting: Closed BILLING CODE 7555±01±M Officer, Civil and Mechanical Systems, 40252 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Engineering, (703) 306–1361, National Special Emphasis Panel in Earth make a recommendation on the future Science Foundation, 4201 Wilson Boulevard, Sciences; Notice of Meeting funding of the STC. Arlington, VA 22230. Reason for Closing: The proposal being Purpose of Meeting: To provide advice and In accordance with the Federal reviewed includes information of a recommendations concerning proposals Advisory Committee Act (Pub. L. 92– proprietary or confidential nature, including submitted to the NSF for financial support. 463, as amended), the National Science technical information, financial data, such as salaries; and personal information Agenda: To review and evaluate SBIR Foundation announces the following concerning individuals associated with the Phase I proposals concerning Dynamic meeting. proposals. These matters are within Systems and Control and Biochemical Name: Special Emphasis Panel in Earth exemptions (4) and (6) of 5 U.S.C. 552(c), the Engineering and Biotechnology as part of the Sciences. (1756) Government in the Sunshine Act. selection process for awards. Date and Time: August 26–August 28, Dated: July 29, 1996. Reason for Closing: The proposals being 1996; 8:30 am to 6:00 pm. M. Rebecca Winkler, reviewed include information of a Place: Southern California Earthquake Committee Management Officer. proprietary or confidential nature, including Center, California Institute of Technology. technical information, financial data such as Type of Meeting: Closed. [FR Doc. 96–19580 Filed 7–31–96; 8:45 am] salaries, and personal information Contact Person: Dr. James H. Whitcomb, BILLING CODE 7555±01±M concerning individuals associated with the Program Director, Geophysics Program, Division of Earth Sciences, Room 785, proposals. These matters are exempt under 5 National Science Foundation, Arlington, VA U.S.C. 552b(c) (4) and (6) of the Government Special Emphasis Panel in Materials 22230, (703) 306–1556. Research; Notice of Meeting in the Sunshine Act. Purpose of Meeting: To review the renewal Dated: July 29, 1996. proposal, evaluate the Science and In accordance with the Federal M. Rebecca Winkler, Technology Center, and make a Advisory Committee Act (Pub. L. 92– recommendation concerning future funding Committee Management Officer. 463 as amended), the National Science of the Science and Technology Center. Foundation announces the following [FR Doc. 96–19584 Filed 7–31–96; 8:45 am] Agenda: To evaluate (a) the research meeting: BILLING CODE 7555±01±M program; (b) educational and outreach activities; and (c) the knowledge transfer Name: Special Emphasis Panel in Materials activities and the management of the STC. To Research (DMR).

Date Time Place

August 21, 1996 ...... 7:00 a.m.±9:00 p.m...... South Coast Inn, (Meeting Room), Goleta, CA. August 22, 1996 ...... 8:00 a.m.±5:00 p.m...... University of California, Santa Barbara, CA 93106.

Type of Meeting: Closed. NUCLEAR REGULATORY stolen radiographic equipment and Contact Person: Dr. LaVerne D. Hess, COMMISSION provide recommendations for Program Director, Electronic Materials preventing similar events. The working Program, Division of Materials Research, Notice of Formation of Working Group group’s first task will be to develop a Room 1065, National Science Foundation, To Review Incidents Involving Stolen charter governing the scope of work, 4201 Wilson Boulevard, Arlington, VA Industrial Radiography Equipment type of products, a work schedule, and 22230. Telephone (703) 306–1837. internal procedures. Purpose of Meeting: To provide advice and AGENCY: U.S. Nuclear Regulatory recommendations concerning support for the Commission. WORKING GROUP ORGANIZATION: The Science and Technology Center (STC) for ACTION: Notice of formation of working working group consists of the following Quantized Electronic Structures (QUEST) at group. individuals: Jim Myers, NRC, Office of the University of California, Santa Barbara. State Programs; Patricia Santiago, NRC, Agenda: To evaluate progress at this SUMMARY: The U.S. Nuclear Regulatory Office of Nuclear Material Safety and Science and Technology Center in relation to Commission (NRC), with the Safeguards; Brad Caskey, Texas; Walter continuing support. Organization of Agreement States, is Cofer, Florida; and Mike Henry, Reason for Closing: The project being forming a working group to review the Louisiana. The group will be Co-Chaired reviewed may include information of a issues related to incidents involving by Jim Myers, NRC, and Brad Caskey, proprietary or confidential nature, including stolen radiography equipment. Texas. technical information, financial data such as FOR INFORMATION CONTACT: Jim Myers, WORKING GROUP MEETINGS: The working salaries, and personal information Office of State Programs, Mail Stop group will hold meetings and gather concerning individuals associated with the OWFN–3–D–23, U.S. Nuclear comments from regulatory agencies, the project. These matters are exempt under 5 Regulatory Commission, Washington, radiography industry, and interested U.S.C. 552 b.(c) (4) and (6) of the Government D.C. 20555. Telephone: 301–415–2328. members of the public. Maximum use in the Sunshine Act. Internet: [email protected]. will be made of other media for Dated: July 29, 1996. SUPPLEMENTARY INFORMATION: The U.S. facilitating interaction between M. Rebecca Winkler, Nuclear Regulatory Commission (NRC), members of the working group, e.g., Committee Management Officer. with the Organization of Agreement conference calls, facsimiles, and [FR Doc. 96–19585 Filed 7–31–96; 8:45 am] States, is forming a working group to electronic mail. Working group review the issues related to incidents meetings will be open to the public and BILLING CODE 7555±01±M involving stolen radiography will be held in the Washington, D.C. equipment. The initiating event area, or other locations as agreed upon involved Larpen of Texas, a Texas by the working group members. licensee. The group’s mission is to Individuals attending working group objectively review events involving meetings are welcome to provide Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40253 comments to the working group’s include a review of the technical The control rod drive (CRD) nozzles and consideration orally, or in writing, at position and, as appropriate, an analysis other VHPs are basically the same for all times specified by the working group, of the value/impact on licensees. PWRs worldwide, which use a U.S. Co-Chairs. Seating at the working group Should this generic letter be issued by design (except in Germany and Russia). meetings will be on a first-come, first- the NRC, it will become available for Generally, there are 36 to 78 nozzles served basis. public inspection in the NRC Public distributed over the low-alloy steel MEETING ANNOUNCEMENTS: No meeting is Document Room. head. The vessel head is semi-spherical scheduled at this time. Announcements DATES: Comment period expires and the head penetrations are vertical so for the first, and subsequent, meetings September 3, 1996. Comments that the CRD nozzles and other VHPs will be made through the NRC’s Meeting submitted after this date will be are not perpendicular to the vessel Announcement system. The meeting considered if it is practical to do so, but surface except at the center. The uphill announcement system can be reached assurance of consideration cannot be side (toward the center of the head) is three ways: given except for comments received on called the 180-degree location and the 1. Voice: 800–952–9674. or before this date. downhill side (toward the outer 2. Electronic Bulletin Board: 800– periphery of the head) is called the 0- ADDRESSES: Submit written comments 952–9676. degree location. Most nozzles have a 3. Electronic Bulletin Board at to Chief, Rules Review and Directives thermal sleeve with a conical guide at FedWorld: 800–303–9672. Branch, U.S. Nuclear Regulatory the bottom end and a small gap (3- to Commission, Mail Stop T–6D–69, 4-mm) between the nozzle and the Dated at Rockville, Maryland, this 23rd day Washington, DC 20555–0001. Written of July, 1996. sleeve. comments may also be delivered to The NRC staff identified primary For the U.S. Nuclear Regulatory 11545 Rockville Pike, Rockville, Commission. water stress corrosion cracking (PWSCC) Maryland, from 7:30 am to 4:15 pm, as an emerging technical issue to the Richard L. Bangart, Federal workdays. Copies of written Director, Office of State Programs. Commission in 1989, after cracking was comments received may be examined at noted in Alloy 600 pressurizer heater [FR Doc. 96–19587 Filed 7–31–96; 8:45 am] the NRC Public Document Room, 2120 sleeve penetrations at a domestic PWR BILLING CODE 7590±01±P L Street, N.W. (Lower Level), facility. Other leaks have occurred since Washington, D.C. 1986 in several Alloy 600 pressurizer FOR FURTHER INFORMATION CONTACT: Proposed Generic Communication; C. E. instrument nozzles at both domestic and Primary Water Stress Corrosion (Gene) Carpenter (301) 415–2169. foreign reactors from several different nuclear steam supply system vendors. Cracking of Control Rod Drive SUPPLEMENTARY INFORMATION: The NRC staff reviewed the safety Mechanism and Other Vessel Head ## Penetrations Generic Letter 96– : Primary Water significance of the cracking that Stress Corrosion Cracking of Control occurred, as well as the repair and AGENCY: Nuclear Regulatory Rod Drive Mechanism and Other Vessel replacement activities at the affected Commission. Head Penetrations (TACS No. M95280) facilities. The NRC staff determined that the cracking was not of immediate ACTION: Notice of opportunity for public Addressees comment. safety significance because the cracks All holders of operating licenses for were axial, had a low growth rate, were SUMMARY: The Nuclear Regulatory pressurized water reactors (PWRs), in a material with an extremely high Commission (NRC) is proposing to issue except those licenses that have been flaw tolerance (high fracture toughness) a generic letter concerning primary amended to possession-only status. and, accordingly, were unlikely to water stress corrosion cracking in propagate very far. These factors also Purpose control rod drive mechanisms and other demonstrated that any cracking would vessel head penetrations of nuclear The U.S. Nuclear Regulatory result in detectable leakage and the power reactors. The purpose of the Commission (NRC) is issuing this opportunity to take corrective action proposed generic letter is to (1) request generic letter to (1) request addressees to before a penetration would fail. The that addressees describe their program describe their program for ensuring the NRC staff issued Information Notice 90– for ensuring the timely inspection of timely inspection of PWR control rod 10, ‘‘Primary Water Stress Corrosion PWR control rod drive mechanism drive mechanism (CRDM) and other Cracking (PWSCC) of Inconel 600,’’ (CRDM) and other vessel head vessel head penetrations and (2) require dated February 23, 1990, to inform the penetrations and (2) require that all that all addressees provide to the NRC nuclear industry of the issue. addressees provide to the NRC a written a written response to this generic letter In December 1991, cracks were found response to this generic letter. The NRC relating to the requested information. in an Alloy 600 VHP in the reactor head is seeking comment from interested at Bugey 3, a French PWR. Background parties regarding both the technical and Examinations in PWRs in France, regulatory aspects of the proposed Most PWRs have Alloy 600 CRDM Belgium, Switzerland, Sweden, Spain, generic letter presented under the nozzle and other vessel head and Japan have uncovered additional Supplementary Information heading. penetrations (VHPs) that extend above VHPs with axial cracks. About 2 percent The proposed generic letter was the reactor pressure vessel head. The of the VHPs examined to date contain endorsed by the Committee to Review stainless steel housing of the CRDM is short, axial cracks. Close examination of Generic Requirements (CRGR) on July screwed and seal-welded onto the top of the VHP that leaked at Bugey 3 revealed 25, 1996. The relevant information that the nozzle penetration, as shown in very minor incipient secondary was sent to the CRGR will be placed in Figure 1. The weld between the nozzle circumferential cracking of the VHP. the NRC Public Document Room. The and the housing is a dissimilar metal An action plan was implemented by NRC will consider comments received weld, which is also called a bimetallic the NRC staff in 1991 to address PWSCC from interested parties in the final weld. The nozzles protrude below the of Alloy 600 VHPs at all U.S. PWRs. As evaluation of the proposed generic vessel head, thus exposing the inside explained more fully below, this action letter. The NRC’s final evaluation will surface of the nozzles to reactor coolant. plan included a review of the safety 40254 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices assessments by the PWR Owners Techniques and procedures developed reported that U.S. plants monitor RCS Groups, the development of VHP mock- by two vendors were successfully conductivity on a routine basis, follow ups by the Electric Power Research demonstrated in a blind qualification the EPRI guidelines on primary water Institute (EPRI), the qualification of protocol developed and administered by chemistry, and monitor for sulfate three inspectors on the VHP mock-ups by the EPRI NDE Center. In the times a week. The Westinghouse staff EPRI, the review of proposed generic demonstrations, examinations by concluded that no immediate safety acceptance criteria from the Nuclear rotating and saber eddy current and issue is involved and that the Utility Management and Resource ultrasonics showed a high probability of conclusions in its CRDM safety Council (NUMARC) [now the Nuclear detection of the flaws which were also evaluation remain valid. The Energy Institute (NEI)], and VHP sized within reasonable uncertainty Westinghouse staff suggested that U.S. inspections. As part of this action plan, bounds. The qualification testing also PWR plants review their RCS chemistry the NRC staff met with the demonstrated that personnel qualified and other operating records pertaining Westinghouse Owners Group (WOG) on through the EPRI program can reliably to sulfur ingress events. The results of January 7, 1992, the Combustion detect PWSCC in CRDM nozzles. this review have not been reported to Engineering Owners Group (CEOG) on In 1994, circumferential intergranular the NRC staff, and the NRC staff does March 25, 1992, and the Babcock & attack (IGA) associated with the J-groove not have sufficient information to Wilcox Owners Group (B&WOG) on weld in one of the CRDM penetrations ascertain whether any significant May 12, 1992, to discuss their respective was discovered at Zorita, a Spanish primary system resin bed intrusions programs for investigating PWSCC of reactor. This IGA is a different have occurred at any U.S. PWR. Alloy 600 and to assess the possibility degradation mechanism than the The first U.S. inspection of VHPs took of cracking of VHPs in their respective PWSCC described above. It is believed place in the spring of 1994 at the Point plants since all of the plants have Alloy to have resulted from the combination Beach Nuclear Generating Station, and 600 VHPs. Subsequently, the NRC staff of ion exchange resin bed intrusions, no indications were uncovered in any of asked NUMARC to coordinate future which resulted in high concentrations of its 49 CRDM penetrations. The eddy industry actions because the issue was sulfates. Zorita has 37 CRDM current inspection at the Oconee applicable to all PWRs. Meetings were penetrations, of which 20 are active Nuclear Generating Station in the fall of held withNUMARC/NEI and the PWR penetrations and 17 are spare 1994 revealed 20 indications in one Owner’s Groups on the issue on August penetrations. Sixteen of the 17 spare penetration. Ultrasonic testing (UT) did 18 and November 20, 1992, March 3, penetrations showed stress corrosion not reveal the depth of these indications 1993, December 1, 1994, and August 24, cracking and IGA. The cracks were both because they were shallow. UT cannot 1995. Summaries of these meetings are axial and circumferential. Four of the accurately size defects that are less than available in the Commission’s Public active CRDM penetrations had one mil deep (0.03 mm). These Document Room, 2120 L Street, N.W., significant cracking with axial and indications may be associated with the Washington, D.C. 20555. circumferential cracks. Two cation resin original fabrication and may not grow; Each of the PWR Owners Groups ingress events occurred at Zorita. In however, they will be reexamined submitted safety assessments, dated August 1980, 40 liters of cation resin during the next refueling outage. A February 1993, through NUMARC to the entered the reactor coolant system limited examination of eight in-core NRC on this issue. After reviewing the (RCS). In September 1981, a mixed bed instrumentation penetrations conducted industry’s safety assessments and demineralizer screen failed and between at the Palisades plant found no cracking. examining the overseas inspection 200 to 320 liters of resin entered the An examination of the CRDM findings, the NRC staff concluded in a RCS. The coolant conductivity remained penetrations at the D.C. Cook plant in safety evaluation dated November 19, high for at least 4 months after the the fall of 1994 revealed three clustered 1993, that VHP cracking was not an ingress. The increase in conductivity indications in one penetration. The immediate safety concern. The bases for was attributed to locally high indications were 46 mm, 16 mm, and 6 this conclusion were that if PWSCC concentrations of sulfates. Sulfates were to 8 mm in length, and the deepest flaw occurred at VHPs (1) the cracks would found around the crack areas and on the was 6.8 mm deep. The tip of the 46-mm be predominately axial in orientation, fracture surfaces. It is important to note flaw was just below the J-groove weld. (2) the cracks would result in detectable that sulfate cracking can occur in Virginia Electric and Power Company leakage before catastrophic failure, and regions that are not subject to significant inspected North Anna Unit 1 during its (3) the leakage would be detected during applied or residual stresses. spring 1996 refueling outage. Some visual examinations performed as part The NRC staff issued Information high-stress areas (e.g., upper and lower of surveillance walkdown inspections Notice (IN) 96–11, ‘‘Ingress of hillsides) were examined on each outer before significant damage to the reactor Demineralizer Resins Increases Potential ring CRDM penetrations and no vessel head would occur. In addition, for Stress Corrosion Cracking of Control indications were observed using eddy the NRC staff had concerns related to Rod Drive Mechanism Penetrations,’’ current testing. unnecessary occupational radiation dated February 14, 1996, to alert The NRC staff was informed during a exposures associated with eddy current addressees to the increased likelihood of meeting on August 24, 1995, that or other forms of nondestructive sulfate-driven stress corrosion cracking Westinghouse had developed a examinations (NDEs), if performed of PWR CRDMs and other VHPs if susceptibility model for VHPs based on manually. Field experience in foreign demineralizer resins contaminate the a number of factors, including operating countries has shown that occupational RCS. temperature, years of power operation, radiation exposures can be significantly The Westinghouse staff notified the method of fabrication of the VHP, reduced by using remotely controlled or WOG plants, the B&WOG plants, and microstructure of the VHP, and the automatic equipment to conduct the the CEOG plants of the Zorita incident location of the VHP on the head. Each inspections. by issuing NSAL–94–028. Westinghouse time a plant’s VHPs are inspected, the In 1993, the nuclear industry reported that no other plant had been inspection results are incorporated into developed remotely operated inservice found worldwide that had experienced the model. All domestic Westinghouse inspection equipment and repair tools cracking similar to that at the Zorita PWRs have been modeled and the that reduced radiation exposure. plant. The Westinghouse staff further ranking has been given to each licensee. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40255

In addition, the NRC staff was informed cracking does not pose an immediate or domestic resin intrusions, such as that Framatome Technologies, Inc. [FTI, near term safety concern. Further, the occurred at Zorita. formerly Babcock & Wilcox (B&W)], also NRC staff recognizes that the scope and Addressees are required to provide developed a susceptibility model for timing of inspections may vary for the following information: CRDM penetration nozzles and other different plants depending on their 1. Regarding inspection activities: VHPs in B&W reactor vessel designs. All individual suceptibility to this form of 1.1 A description of all inspections domestic B&W PWRs have been degradation. In the long term, however, of CRDMs and other vessel head modeled and the ranking has been given degradation of the CRDM and other penetrations performed to the date of to each B&W licensee. The NRC staff VHPs is an important safety this generic letter, including the results was further informed that Combustion consideration that warrants further of these inspections. Engineering (CE) had performed an evaluation. The vessel head provides 1.2 If you have developed a plan to initial susceptibility assessment for the the vital function of maintaining a CE PWRs. At present, neither reactor pressure boundary. Cracking in periodically inspect the CRDM and Westinghouse, FTI, nor CE has the VHPs has occurred and is expected other vessel head penetrations: submitted its models and assessments to to continue to occur as plants age. The a. Your schedule for first, and the NRC staff for review. NRC staff considers cracking of VHPs to subsequent, inspections of the CRDM By letter dated March 5, 1996, NEI be a safety concern for the long term and other vessel head penetrations, submitted a white paper entitled ‘‘Alloy based on the possibility of (1) exceeding including the technical basis for your 600 RPV Head Penetration Primary the American Society of Mechanical schedule. Stress Corrosion Cracking,’’ which Engineers (ASME) Code for margins if b. Your scope for the CRDM and other reviews the significance of PWSCC in the cracks are sufficiently deep and vessel head penetration inspections, PWR VHPs and describes how the continue to propagate during including whether you plan to inspect industry is managing the issue. The subsequent operating cycles, and (2) from the top or bottom of the head, the program outlined in the NEI white eliminating a layer of defense in depth total number of penetrations (and how paper is based on the assumption that for plant safety. Therefore, in order to many will be inspected), and which the issue is an economic one rather than verify that the margins required by the penetrations have thermal sleeves, a safety issue, and describes an ASME Code, as specified in Section which are spares, and which are economic decision tool to be used by 50.55a of Title 10 of the Code of Federal instrument or other penetrations. PWR licensees to evaluate the Regulations (10 CFR 50.55a) are met, 1.3 If you have not developed a plan probability of a VHP developing a crack that the guidance of General Design to periodically inspect the CRDM and or a through-wall leak during a plant’s Criterion 14 of Appendix A to 10 CFR other vessel head penetrations, provide lifetime. This information would then Part 50 (10 CFR Part 50, Appendix A, your technical or safety basis for not be used by a PWR licensee to evaluate GDC 14) is continued to be satisfied, periodically inspecting your VHPs; or, the need to conduct a VHP inspection and to ensure that the safety your schedule for developing such a at their plant. The NRC staff informed significance of VHP cracking remains plan and the basis for that schedule. NEI in the several meetings listed above low, the NRC staff believes that an 2. A description of the evaluation that it did not agree with NEI that the integrated, long-term program, which methods and results used to assess the issue was only economic. Inspections includes periodic inspections and susceptibility of the CRDM and other have shown that cracking has initiated monitoring, is necessary. In addition, VHPs in your plant to PWSCC, in some U.S. plants, and the industry the NRC staff finds that the requested including the susceptibility ranking of has not provided sufficient technical information is also needed to determine your plant and the factors used to justification regarding susceptibility of if the imposition of an augmented determine this ranking. Other than or in the CRDM and other VHPs to PWSCC to inspection program, pursuant to 10 CFR addition to the boric acid visual justify an inspection plan based on 50.55a(g)(6)(ii), is required to maintain examination (see Generic Letter 88–05, economic considerations alone. public health and safety. ‘‘Boric Acid Corrosion of Carbon Steel The NRC staff recognizes that Discussion Reactor Pressure Boundary Components individual PWR licensees may wish to in PWR Plants,’’ dated March 17, 1988), The results of domestic VHP determine their inspection activities inspections are consistent with the include a description of all relevant data based on an integrated industry and/or tests used to develop crack February 1993 analyses by the PWR inspection program (i.e., B&WOG, Owners Groups, the NRC staff safety initiation and crack growth models, and CEOG, WOG, or some subset thereof), to the methods and data used to validate evaluation report dated November 19, take advantage of inspection results these models. Include a statement 1993, and the PWSCC found in the from other plants that have similar explaining the applicability of these CRDMs in European reactors. On the susceptibilities. The NRC staff does not models to the VHP cracking issue. Also, basis of the results of the first five wish to discourage such group actions if you are relying on any integrated inspections of U.S. PWRs, the PWR but notes that such an integrated industry inspection program, provide a Owner’s Groups’ analyses, and the industry inspection program must have detailed description of this program. European experience, the NRC staff has a well-founded technical basis that determined that there is a high justifies the relationship between the 3. A description of any resin probability that VHPs at other plants plants and the planned implementation intrusions in your plant, as described in may contain similar axial cracks caused schedule. IN 96–11, that have exceeded the by PWSCC. Further, if any significant current EPRI PWR Primary Water resin intrusions have occurred at U.S. Required Information Chemistry Guidelines recommendations PWRs such as occurred at Zorita, The information required in items 1 for primary water sulfate levels, residual stresses are sufficient to cause and 2, below, is required by the NRC including the following information: circumferential intergranular stress staff to determine if the imposition of an 3.1 Were the intrusions cation, corrosion cracking (IGSCC). augmented inspection program is anion, or mixed bed? After considering this information, required, while the information required 3.2 What were the durations of these the NRC staff has concluded that VHP in item 3 relates to the potential for intrusions? 40256 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

3.3 Do your RCS water chemistry In addition, submit a copy to the the staff to verify that the margins Technical Specifications follow the appropriate regional administrator. required by the ASME Code, as EPRI guidelines? The NRC recognizes the potential specified in Section 50.55a of Title 10 3.4 Identify any RCS chemistry difficulties (number and types of of the Code of Federal Regulations (10 excursions that exceed your plant sources, age of records, proprietary data, CFR 50.55a) are met, that the guidance administrative limits for the following etc.) that licensees may encounter while of General Design Criterion 14 of species: sulfates, chlorides or fluorides, ascertaining whether they have all of the Appendix A to 10 CFR Part 50 (10 CFR oxygen, boron, and lithium. data pertinent to the evaluation of their Part 50, Appendix A, GDC 14) continues 3.5 Identify any conductivity CRDMs and other vessel head to be satisfied, and to ensure that the excursions which may be indicative of penetrations. For this reason, the above safety significance of VHP cracking resin intrusions, provide your technical time periods are allowed for the assessment of each excursion and your responses. remains low, the NRC staff requires followup actions. licensees to submit information to 3.6 Provide your assessment of the Related Generic Communications assess compliance with the above stated potential for any of these intrusions to (1) Information Notice 90–10, requirements. The NRC staff finds that result in a significant increase in the ‘‘Primary Water Stress Corrosion the requested information is also needed probability for IGA of VHPs and any Cracking (PWSCC) of Inconel 600,’’ to determine if the imposition of an associated plan for inspections. dated February 23, 1990. augmented inspection program, (2) NUREG/CR–6245, ‘‘Assessment of Required Response pursuant to 10 CFR 50.55a(g)(6)(ii), is Pressurized Water Reactor Control Rod required to maintain public health and All addressees shall submit in writing Drive Mechanism Nozzle Cracking,’’ safety. The staff is not establishing a the information identified above within dated October 1994. new position for such compliance in 90 days from the date of this letter. (3) Information Notice 96–11, ‘‘Ingress this generic letter. Therefore, this Any inspection results that do not of Demineralizer Resins Increases generic letter does not constitute a satisfy the acceptance criteria identified Potential for Stress Corrosion Cracking in the NRC staff’s safety assessment of Control Rod Drive Mechanism backfit and no documented evaluation dated November 16, 1993, should be Penetrations,’’ dated February 14, 1996. or backfit analysis need be prepared. reported to the NRC staff prior to plant Dated at Rockville, Maryland, this 26th day Backfit Discussion restart. of July, 1996. Address the required written reports This generic letter only requires For the Nuclear Regulatory Commission. to the U.S. Nuclear Regulatory information from the addressees under Elinor G. Adensam, Commission, ATTN: Document Control the provisions of Section 182a of the Desk, Washington, D.C. 20555, under Atomic Energy Act of 1954, as amended, Acting Director, Division of Reactor Program oath or affirmation under the provisions and 10 CFR 50.54(f). Therefore, the staff Management, Office of Nuclear Reactor of Section 182a, Atomic Energy Act of has not performed a backfit analysis. Regulation. 1954, as amended, and 10 CFR 50.54(f). The information collected will enable BILLING CODE 7590±01±P Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40257

[FR Doc. 96–19588 Filed 7–31–96; 8:45 am] BILLING CODE 7590±01±C 40258 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

SECURITIES AND EXCHANGE respondents, including through the use HEARING OR NOTIFICATION OF HEARING: An COMMISSION of automated collection techniques or order granting the application will be other forms of information technology. issued unless the Commission orders a Request for Public Comment Upon Consideration will be given to hearing. Interested persons may request Written Request, Copies Available comments and suggestions submitted in a hearing by writing to the Secretary of From: Securities and Exchange writing within 60 days of this the Commission and serving Applicants Commission, Office of Filings and publication. with a copy of the request, personally or Information Services, Washington, Direct your written comments to by mail. Hearing requests must be D.C. 20549 Michael E. Bartell, Associate Executive received by the Commission by 5:30 Existing Collection of Information: Rule Director, Office of Information p.m. on August 20, 1996, and must be 10a–1, SEC File No. 270–413, OMB Technology, Securities and Exchange accompanied by proof of service on Control No. 3235-new Commission, 450 5th Street, N.W., Applicants in the form of an affidavit or, Washington, DC 20549. Notice is hereby given that pursuant for lawyers, a certificate of service. to the Paperwork Reduction Act of 1995 Dated: July 22, 1996. Hearing requests should state the nature (44 U.S.C. 3501 et seq.), the Securities Margaret H. McFarland, of the writer’s interest, the reason for the and Exchange Commission Deputy Secretary. request, and the issues contested. (‘‘Commission’’) is publishing the [FR Doc. 96–19568 Filed 7–31–96; 8:45 am] Persons may request notification of a hearing by writing to the Secretary of following summary of collection for BILLING CODE 8010±01±M public comment. the Commission. Rule 10a–1 (17 CFR 240.10a–1) under ADDRESSES: Secretary, Securities and the Securities Exchange Act of 1934 SECURITIES AND EXCHANGE Exchange Commission, 450 5th Street, (‘‘Exchange Act’’) is intended to limit COMMISSION N.W., Washington, D.C. 20549. short selling of a security in a declining Applicants, c/o Scott K. Richardson, market, by requiring, in effect, that each [Rel. No. IC±22103; No. 812±9692] Assistant Counsel, ITT Hartford Insurance Companies, P.O. Box 2999, successive lower price be established by ITT Hartford Life and Annuity Hartford, Connecticut 06104–2999. a long seller. The price at which short Insurance Company, et. al. sales may be effected is established by FOR FURTHER INFORMATION CONTACT: reference to the last sale price reported July 26, 1996. Kevin M. Kirchoff, Senior Counsel, or in the consolidated system or on a AGENCY: Securities and Exchange Patrice M. Pitts, Special Counsel, Office particular marketplace. Rule 10a–1 Commission (‘‘Commission’’). of Insurance Products (Division of requires each broker or dealer that ACTION: Notice of Application for an Investment Management), at (202) 942– effects any sell order for a security Order pursuant to the Investment 0670. registered on, or admitted to unlisted Company Act of 1940 (the ‘‘1940 Act’’). SUPPLEMENTARY INFORMATION: Following trading privileges, on a national is a summary of the application; the APPLICANTS: securities exchange to mark the relevant ITT Hartford Life and complete application is available for a order ticket either ‘‘long’’ or ‘‘short.’’ Annuity Insurance Company (‘‘ITT fee from the Public Reference Branch of There are approximately 1,500 Hartford’’), Separate Account VL I of the Commission. brokers and dealers registered with the ITT Hartford Life and Annuity national securities exchanges. The Insurance Company (the ‘‘Account’’), Applicants’ Representations Commission has considered each of and Hartford Equity Sales Company 1. ITT Hartford is a stock life these respondents for the purposes of (‘‘HESCO’’). insurance company engaged in the calculating the reporting burden under RELEVANT 1940 ACT SECTIONS: Order business of writing annuities and both Rule 10a–1. Each of these approximately requested pursuant to Section 6(c) of the individual and group life insurance in 1,500 registered broker-dealers effects 1940 Act granting exemptions from the District of Columbia and all states sell orders for securities registered on, Section 27(a)(3) thereof and Rules 6e– except New York. ITT Hartford is a or admitted to unlisted trading 3(T)(b)(13)(ii) and 6e–3(T)(d)(1)(ii) wholly-owned subsidiary of Hartford privileges, on a national securities thereunder. Life Insurance Company. exchange. In addition, each respondent SUMMARY OF APPLICATION: Applicants 2. The Account was established as a makes an estimated 55,663 annual request an order to permit ITT Hartford, separate account of ITT Hartford on responses, for an aggregate total of through the Account, to issue certain June 8, 1995, pursuant to the insurance 83,493,861 responses per year. Each flexible premium variable life insurance law of the State of Connecticut. The response takes approximately .000143 contracts (‘‘Contracts’’) that provide for Account is registered with the hours to complete. Thus, the total a front-end sales loan on premium Commission pursuant to the 1940 Act as compliance burden per year is 11,902 payments in any given contract year up a unit investment trust. The Account burden hours. to a maximum amount (‘‘Maximum presently consists of twenty-two Written comments are invited on: (a) Sales Load Premium’’) and no sales load subaccounts (‘‘Subaccounts’’), each of whether the proposed collection of on premiums in excess of such which will invest exclusively in certain information is necessary for the proper Maximum Sales Load Premium (‘‘Excess open-end management investment performance of the functions of the Premiums’’) in any given contract year. companies. agency, including whether the Applicants also request exemptive relief 3. HESCO, the principal underwriter information shall have practical utility; to permit ITT Hartford, though separate for the Contracts, is registered as a (b) the accuracy of the agency’s estimate accounts it establishes in the future, to broker-dealer pursuant to the Securities of the burden of the proposed collection issue flexible premium variable life Exchange Act of 1934, and is a member of information; (c) ways to enhance the insurance contracts that are materially of the National Association of Securities quality, utility, and calrity of the similar to the Contracts. Dealers, Inc. information to be collected; and (d) FILING DATE: The application was filed 4. The Contracts are flexible premium ways to minimize the burden of the on July 26, 1995, and amended on June variable life insurance policies. Contract collection of information on 6, 1996. owners choose the amount of premiums Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40259 they intend to pay (‘‘Scheduled to any premium in the first Contract (b) 9 percent of each premium Premiums’’) within a range determined year will be 50 percent of the amount payment exceeding two Guideline by ITT Hartford based on a variety of of premiums paid during the first Annual Premiums. factors, including the face amount of the Contract year, subject to the limits 13. On a designated date each month, Contract, the insured’s sex (except described below. Also subject to certain ITT Hartford will deduct from the where unisex rates apply), age at issue, limits, the maximum front-end sales account value, from the fixed account and risk classification. Contract owners load in a Contract year will be 11 and each of the Subaccounts funding a also may pay other premiums at any percent of premiums paid during Contract on a pro-rata basis, the time (‘‘Unscheduled Premiums’’), Contract years two through ten and 3 following charges: subject to certain restrictions. The cash percent of premiums paid in Contract (a) a cost of insurance charge; value under a Contract will, and the years eleven and beyond. (b) a mortality and expense risk charge that varies proportionately from death benefit may, increase or decrease 9. No front-end sales load in excess of depending on the investment .90 percent of account value annually the Guideline Annual Premium will be for a Contract with a one-year Guarantee experience of the Subaccounts to which imposed under the Contracts on the premium payments have been Period to .60 percent for a Contract with premium payments in any Contract a ten-year Guarantee Period; allocated. year. In the first Contract year, no sales 5. The Guideline Annual Premium, as (c) an administrative charge of $8.33 load will be imposed on premiums that provided by Rule 6e–3(T)(c)(8)(i), is the per month initially, guaranteed not to exceed the Scheduled Premium, if it is level annual premium necessary to increase during the Guarantee Period, less than the Guideline Annual provide the future benefits under the and guaranteed not to exceed $12.00 per Premium. The maximum amount of a Contract through maturity, based on month after the Guarantee Period; premium payment subject to a front-end certain specified assumptions, which (d) during the first Contract year, a sales load is the ‘‘Maximum Sales Load include mortality charges based on the monthly charge for underwriting and Premium.’’ 1980 Commissioners’ Standard issuance costs of $8.33 per month, plus Ordinary Mortality Smoker or Non- 10. A contingent deferred sales charge an amount that varies based on the age Smoker Table, age last birthday, and will be assessed against the account of the insured and the initial face assured annual net rate of return of at value of a Contract prior to a lapse or amount of the Contract; least 5 percent per year, and a reduction surrender if the Contract lapses or is (e) a percentage of each premium to of the guaranteed fees and changes surrendered within the first nine years pay premium taxes, varying by locale, 1 specified in the policy. (‘‘Surrender Charge’’). The amount of depending on tax rates in effect; 6. During a period which begins on the Surrender Charge applicable to the (f) if applicable, charges for additional the date the Contract is effective and first Contract year under a Contract will benefits provided by riders to the continues for one to ten years as be established by ITT Hartford and will Contract; and selected by the Contract owner decrease by an equal amount each (g) if applicable, a charge for a special (‘‘Guarantee Period’’), ITT Hartford will Contract year until it reaches zero insurance class rating of the insured. guarantee that the Contract will not during the tenth year. Generally, the Applicants’ Legal Analysis shorter the Guarantee Period under a lapse, regardless of the investment 1. Pursuant to Section 6(c) of the 1940 Contract, the lower the Surrender experience of the Subaccounts, if the Act, the Commission may exempt any Charge that will apply to the Contract. Contract owner pays the Scheduled person, security, or transaction, or any Premiums when due. In addition, 11. The aggregate of the front-end class or classes of persons, securities or Unscheduled Premiums will be allowed sales load and Surrender Charge transactions, from any provision or during the Guarantee Period. If the assessed will not exceed 180 percent of provisions of the 1940 Act or from any Contract owner does not pay all the Guideline Annual Premium, or nine rule or regulation thereunder, if and to Scheduled Premiums during the percent of the sum of the Guideline the extent that such exemption is Guarantee period, the Contract will stay Annual Premium that would be paid necessary or appropriate in the public in force as long as an amount calculated over a twenty year period. In cases interest and consistent with the under the Contract exceeds the where the anticipated life expectancy of protection of investors and the purposes indebtedness under the Contract. the insured named in the Contract is 7. The Contracts provide for the fairly intended by the policy and less than twenty years, the total sales provisions of the 1940 Act. payment of a death benefit to the load will be reduced to nine percent of beneficiary when the insured dies. The 2. Section 27(a)(3) of the 1940 Act the sum of the Guideline Annual provides, in effect, that the amount of death benefit equals the death benefit Premium for the shorter period. less any indebtedness under the sales charge deducted from any of the Contract and any due and unpaid 12. If a Contract is surrendered during first twelve monthly payments on a monthly deduction amount occurring the first two Contract years, the Contract periodic payment plan certificate by any during a grace period. owner may be entitled to a refund of registered investment company issuing 8. ITT Hartford deducts a sales load some of the front-end sales load or such certificates or any depositor or from premium payments prior to Surrender Charge assessed. The refund underwriter for such company may not allocating them to the account value of will be equal to the excess, if any, of the exceed proportionately the amount a Contract. The amount of the deduction actual front-end sales load and deducted from any other such payment is calculated using a percentage of the Surrender Charge assessed under the and that the amount deducted from any premiums paid during each Contract Contract over: subsequent payment may not exceed year, as specified in the Contract. The (a) the sum of 30 percent of the proportionately the amount deducted amount of the front-end sales load will aggregate premium payments less than from any other subsequent payment be based on the amount of the or equal to one Guideline Annual (‘‘stair-step’’ provisions). Scheduled Premiums for the Contract, Premium plus 10 percent of such 1 Currently, no charge is assessed for Federal, the Guarantee Period, and any payments greater than one, but not more state and local income taxes attributable to Unscheduled Premiums paid. The than two, Guideline Annual premiums, however ITT Hartford reserves the right maximum front-end sales load applied Premium(s); and to assess such a charge in the future. 40260 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

3. Rules 6e–3(T)(b)(13)(ii) and 6e– Contract owners, who benefit from the receive any benefit or additional 3(T)(d)(1)(ii) provide exemptions from absence of a front-end sales load in protection. Section 27(a)(3), provided that the connection with Excess Premiums. Conclusion proportionate amount of sales charge 7. Applicants assert that, in two deducted from any payment does not letters responding to requests for no- For the reasons summarized above, exceed the proportionate amount action assurance, the Commission staff Applicants represent that the deducted from any prior payment, concluded that Section 27(a)(3), in exemptions requested are necessary and unless an increase is caused by conjunction with the other sales charge appropriate in the public interest and reductions in the annual cost of limitations in the 1940 Act, was consistent with the protection of insurance or reductions in sales load for designed to address the perceived abuse investors and the purposes fairly amounts transferred to a variable life of periodic payment plan certificates intended by the policy and provisions of insurance contract from another plan of that deducted large amounts of front- the 1940 Act. insurance. end sales charges so early in the life of For the Commission, by the Division of 4. Under the sales load structure of the plan that investors redeeming in the Investment Management, pursuant to the Contracts, in any given year no early periods would recoup little of delegated authority. front-end sales load will be deducted their investments. Applicants submit Margaret H. McFarland, from premiums paid in excess of the that the sales charge structure for the Deputy Secretary. Maximum Sales Load Premium. Thus, a Contracts would not have this effect. On Contract owner could pay a premium in the contrary, by not imposing a front- [FR Doc. 96–19565 Filed 7–31–96; 8:45 am] any given Contract year from which no end sales load on premiums paid in any BILLING CODE 8010±01±M front-end sales load deduction is made Contract year in excess of the Maximum (because cumulative premiums paid Sales Load Premium, Applicants assert [Rel. No. IC±22102; 812±10102] that year exceeded the Maximum Sales that a greater proportion of the sales Load Premium), then pay the initial load charges will be deducted later than LB Series Fund, Inc. et al.; Notice of premium in the next Contract year from otherwise would be the case. Application which a front-end sales load will be 8. Applicants submit that one purpose deducted. The exemptions from Section behind Section 27(h)(3) of the 1940 Act, July 26, 1996. 27(a)(3) of the 1940 Act provided by a provision similar to Section 27(a)(3), AGENCY: Securities and Exchange Rules 6e–3(T)(b)(13)(ii) and 6e– is to discourage unduly complicated Commission (‘‘SEC’’). 3(T)(d)(1)(ii) do not appear to provide sales charges. This may also be deemed ACTION: Notice of application for relief under these circumstances. to be a purpose of Section 27(a)(3) and exemption under the Investment Accordingly, pursuant to Section 6(c), Rule 6e–3(T)(b)(13)(ii). By limiting Company Act of 1940 (the ‘‘Act’’). Applicants request an exemption from front-end sales charges to premiums up the provisions of Section 27(a)(3) of the to the Maximum Sales Load Premium, APPLICANTS: LB Series Fund, Inc., 1940 Act and Rules 6e–3(T)(b)(13)(ii) Applicants submit that the sales charge Lutheran Brotherhood Family of Funds and 6e–3(T)(d)(1)(ii) thereunder to the structure under the Contracts is not (‘‘LB Family of Funds’’), Lutheran extent necessary to permit them to unduly complicated. Brotherhood, Lutheran Brotherhood deduct sales charges from premiums 9. Applicants also request exemptive Research Corp., and all subsequently paid pursuant to the Contracts in the relief to permit ITT Hartford, through registered management investment manner described above. separate accounts it establishes in the companies advised by Lutheran 5. Applicants assert that the sales load future, to issue flexible premium Brotherhood or any entity under structure in the Contracts is designed to variable life insurance contracts that are common control with Lutheran give Contract owners flexibility with materially similar to the Contracts. Brotherhood (together with the LB respect to premium payments while Applicants believe that, without such Series Funds and LB Family of Funds, permitting ITT Hartford to deduct only relief, they would have to apply for and the ‘‘Funds’’). those charges deemed necessary to obtain orders granting exemptive relief RELEVANT ACT SECTIONS: Order requested support the benefit guarantees under the in connection with future contracts that (a) under section 6(c) of the Act for an Contracts. The sales load structure was are materially similar to the Contracts exemption from sections 13(a)(2), designed to reflect ITT Hartford’s under similar circumstances. 13(a)(3), 18(f)(1), 22(f), and 22(g) of the operating expenses in connection with 10. Applicants submit that their Act and rule 2a–7 thereunder; (b) under sales of the Contracts. Applicants request for exemptive relief for future sections 6(c) and 17(b) of the Act for an submit that the deduction of a front-end separate accounts established by ITT exemption from section 17(a)(1) of the sales load on only the premiums paid Hartford would promote Act; and (c) pursuant to section 17(d) of up to the Maximum Sales Load competitiveness in the variable life the Act and rule 17d–1 thereunder to Premium does not implicate the policy insurance contract market by permit certain joint transactions. concerns that underlie the stair-step eliminating the need for redundant SUMMARY OF APPLICATION: Applicants provisions of Section 27(a)(3). exemptive applications, thereby 6. Applicants submit that ITT reducing Applicants’ administrative request an order that would permit each Hartford could avoid the stair-step issue expenses and maximizing the efficient applicant investment company to simply by imposing the higher front-end use of their resources. Applicants establish deferred compensation plans sales load equally on premium further submit that the delay and for its trustees who are not interested payments up to the Maximum Sales expense involved in having repeatedly persons of the company. Load Premium and on Excess to seek exemptive relief would impair FILING DATES: The application was filed Premiums, subject to the maximum their ability effectively to take advantage on April 23, 1996 and amended on July permissible limits. Applicants assert of business opportunities as they arise. 16, 1996. that, while this sales load structure Further, if Applicants were required HEARING OR NOTIFICATION OF HEARING: An would qualify under the Rule 6e– repeatedly to seek exemptive relief with order granting the application will be 3(T)(b)(13)(ii) exemption from Section respect to the same issues addressed in issued unless the SEC orders a hearing. 27(a)(3), it would be to the detriment of this application, investors would not Interested persons may request a Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40261 hearing by writing to the SEC’s relief granted pursuant to this dispose of any investments but, if a Secretary and serving applicants with a application and are limited to Fund chooses to purchase investments copy of the request, personally or by immaterial amendments or to cover its obligations under the Plan, mail. Hearing requests should be supplements, or amendments or then any and all such investments will received by the SEC by 5:30 p.m. on supplements made to conform to any continue to be part of the general assets August 20, 1996 and should be applicable law. and property of the Fund. accompanied by proof of service on the 4. Under the Plan, the Trustee’s 7. Under the Plan, a Trustee may applicants, in the form of an affidavit or, deferred fees will be credited to a book specify that the Trustee’s deferred fees for lawyers, a certificate of service. entry account established by each be distributed in whole or in part Hearing requests should state the nature participating Fund (the ‘‘Deferred Fee commencing on or as soon as of the writer’s interest, the reason for the Account’’) as of the date such fees practicable after a date specified by the request, and the issues contested. would have been paid to such Trustee. Trustee, which may not be sooner than Persons who wish to be notified of a The value of the Deferred Fee Account the earlier of (a) A date one year hearing may request notification by will be periodically adjusted by treating following the deferral election, or (b) the writing to the SEC’s Secretary. the Deferred Fee Account as though an first business day of January following ADDRESSES: Secretary, SEC, 450 Fifth equivalent dollar amount had been the year in which the Trustee ceases to Street, N.W., Washington, D.C. 20549. invested and reinvested in certain be a member of the Board of Trustees of Applicants, 625 Fourth Avenue South, designated securities (the ‘‘Underlying the Fund. Notwithstanding any Minneapolis, Minnesota 55415. Securities’’). The Underlying Securities elections by a Trustee, his or her for a Deferred Fee Account will be deferrals under the Plan shall be FOR FURTHER INFORMATION CONTACT: shares of any of a selection of the Funds distributed (x) in the event of the Suzanne Krudys, Senior Attorney, at that the Trustees designates. The initial Trustee’s death, or (y) upon: the (202) 942–0641, or Alison E. Baur, at value of the Deferred Compensation dissolution, liquidation, or winding up (202) 942–0564 (Division of Investment credited to a Deferred Fee Account will of the Fund, whether voluntary or Management, Office of Investment be effected at the respective current net involuntary; the voluntary sale, Company Regulation). asset value of each Fund designated by conveyance or transfer of all or SUPPLEMENTARY INFORMATION: The the trustee and thereafter, the value of substantially all of the Fund’s assets following is a summary of the such Deferred Account will fluctuate as (unless the obligations of the Fund shall application. The complete application the net asset value of the shares of each have been assumed by another Fund); or may be obtained for a fee from the SEC’s such Fund fluctuates and will also the merger of the Fund into another Public Reference Branch. reflect the value of the assumed trust or corporation or its consolidation Applicants’ Representations reinvestment of dividends and capital with one or more other trusts or gains distributions from each such Fund corporations (unless the obligations of 1. Each of LB Series Fund and LB in additional shares of such Fund. the Fund are assumed by such surviving Family of Funds is a registered open- Shares will not be designated as entity and the surviving entity is end management investment company. Underlying Securities, and Underlying another Fund). In addition, upon Lutheran Brotherhood, a fraternal Securities will not be purchased, if there application by a Trustee and a benefit society owned and operated by is a material risk that the purchase of determination by an administrator its members, serves as investment such shares would result in a violation designated by the Trustees that such advisor to each series of LB Series Fund. of section 12(d)(1) of the Act. Trustee has suffered a severe and LB Research Corp. serves as investment 5. As a matter of risk management, unanticipated financial hardship, the adviser to each series of LB Family of each Fund intends generally, and with administrator shall distribute to the Funds. respect to any money market Fund that Trustee, in a single lump sum, an 2. A majority of the board of directors values its assets by the amortized cost amount equal to the lesser of the of LB Series Fund and a majority of the method undertakes, to purchase and amount needed by the Trustee to meet board of trustees of LB Family of Funds maintain Underlying Securities in an the hardship, or the balance of the (collectively, ‘‘Trustees’’) currently amount equal to the deemed Trustee’s Deferred Fee Account. consists of Trustees who are not investments of the Deferred Fee Payments will be made in a lump sum ‘‘interested persons’’ within the Accounts of its Trustees. A Fund will or in installments as elected by the meaning of section 2(a)(19) of the Act. either purchase its own shares or invest Trustee. In the event of the Trustee’s Each Trustee that is not an ‘‘interested monies equal to the amount credited to death, amounts payable under the Plan person’’ of a Fund, receives an annual the Deferred Fee Account as part of the will be payable to the trustee’s fee. No Trustees who is an affiliated general investment operations of the designated beneficiary. In all other person of Lutheran Brotherhood Fund. events, the Trustee’s right to receive receives any remuneration from LB 6. The amounts paid to the Trustees payments will be nontransferable. Series Fund or LB Family of Funds. under the Plan are expected to be de 8. The Plan will not obligate any Fund 3. The proposed deferred fee minimis in relation to the net assets of to retain the services of a Trustee, nor arrangements would be implemented by the Fund. The Plan provides that a will it obligate any Fund to pay any (or means of a Deferred Compensation Plan Fund’s obligation to make payments any particular level of) Trustee’s fees to (the ‘‘Plan’’) entered into by each Fund. from a Deferred Fee Account will be a any Trustee. Rather, it will merely The Plan would permit individual general obligation of the Fund and permit a Trustee to elect to defer receipt Trustees of a Fund who are not payments made pursuant to the Plan of all or part of the Trustee’s fees which ‘‘interested persons’’ of such Fund to will be made from the Fund’s general he or she would otherwise receive for elect to defer receipt of all or a portion assets and property. With respect to the future services from each Fund. The of their fees. This would enable the obligations created under the Plan, the proposed arrangements will not affect Trustees to defer payment of income relationship of a Trustee to a Fund will the voting rights of the shareholders of taxes on such fees. The Trustees may be that of a general unsecured creditor. any of the Funds. If a Fund purchases amend the Plan from time to time. Such A Fund will be under no obligation to Underlying Securities issued by another amendments will be consistent with any the Trustee to purchase, hold, or Fund, the purchasing Fund will vote 40262 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices such shares in proportion to the votes of fundamental investment restriction 8. Section 17(a)(1) generally prohibits all other holders of shares of such other prohibiting the purchase of securities an affiliated person of a registered Fund. issued by investment companies investment company, or any affiliated (collectively, the ‘‘Restriction Series’’). person of such person, from selling any Applicants’ Legal Analysis Applicants submit that it is appropriate security to such registered investment 1. Applicants request an order under to exempt the Restriction Series from company. Funds that are advised by the section 6(c) of the Act granting relief the provisions of 13(a)(3) as to enable same entity may be ‘‘affiliated persons’’ from sections 13(a)(2), 13(a)(3), 18(f)(1), the Restriction Series to invest in shares of one another under section 2(a)(3)(C) 22(f), and 22(g) of the Act and rule 2a– of other Funds pursuant to the Plan of the Act by reason of being under the 7 thereunder to the extent necessary to without a shareholder vote. Applicants common control of their adviser. permit the Funds to enter into deferred state that the value of the Underlying Applicants assert that section 17(a)(1) fee arrangements with their Trustees; Securities will be de minimis in relation was designed to prevent sponsors of under sections 6(c) and 17(b) of the Act to the total net assets of the Restriction investment companies from using granting relief from section 17(a)(1) to Series, and will at all times equal the investment company assets as capital the extent necessary to permit the Funds value of the Restrictions Series’ for enterprises with which they were to sell securities issued by them to obligations to pay deferred fees. associated or to acquire controlling participating Funds; and pursuant to Applicants will provide notice to interests in such enterprises. Applicants section 17(d) of the Act and rule 17d– shareholders in their statements of submit that an exemption from this 1 thereunder to permit the Funds to additional information of the deferred provision would not implicate Congress’ engage in certain joint transactions fee arrangements with the Trustees. concerns in enacting section 17(a)(1), incident to such deferred fee 5. Section 22(f) prohibits undisclosed but would facilitate the matching of arrangements. restrictions on the transferability or each Fund’s liability for deferred 2. Section 6(c) provides that the SEC negotiability of redeemable securities Trustees’ fees with the Underlying may exempt any person, security, or issued by open-end investment Securities that would determine the transaction from any provision of the companies. The Plan would set forth amount of such Fund’s liability. Act, if and to the extent that such 9. Section 17(b) authorizes the SEC to exemption is necessary or appropriate any restrictions on transferability or negotiability, and such restrictions are exempt a proposed transaction from in the public interest and consistent section 17(a) if evidence establishes with the protection of investors and the primarily to benefit the participating trustees and would not adversely affect that: (a) The terms of the transaction, purposes fairly intended by the policy including the consideration to be paid and provisions of the Act. the interests of the Trustees, the Fund or any shareholder of any Fund. or received, are reasonable and fair and 3. Section 18(f)(1) generally prohibits do not involve overreaching; (b) the 6. Section 22(g) generally prohibits a registered open-end investment transaction is consistent with the policy registered open-end investment company from issuing senior securities. of each registered investment company Section 13(a)(2) requires that a companies from issuing any of their concerned; and (c) the transaction is registered investment company obtain securities for services or for property consistent with the general purposes of shareholder authorization before issuing other than cash or securities. These the Act. Applicants assert that the any senior security not contemplated by provisions prevent the dilution of equity proposed transaction satisfies the the recitals of policy in its registration and voting power that may result when criteria of sections 6(c) and 17(b). statement. Applicants state that the Plan securities are issued for consideration 10. Section 17(d) and rule 17d–1 possesses none of the characteristics of that is not readily valued. Applicants generally prohibit a registered senior securities that led Congress to submit that the Plan would provide for investment company’s joint or joint and enact these sections. The Plan would deferral of payment of fees that would several participation with an affiliated not: (a) Encourage increased borrowings be payable independent of the Plan, and person in a transaction in connection by investment companies without thus should be viewed as being issued with any joint enterprise or other joint adequate assets and reserves; (b) induce not in return for services but in return arrangement on a basis different from or speculative investments or provide for a Fund not being required to pay less advantageous than that of the opportunities for manipulative such fees on a current basis. affiliated person. Applicants assert that allocation of any Fund’s expenses or 7. Rule 2a–7 imposes certain any adjustments made to the Deferred profits; (c) affect control of any Fund; restrictions on the investments of Fee Accounts to reflect the income, gain (d) be inconsistent with the theory of money market funds that use the or loss on investments of the assets of mutuality of risk; or (e) confuse amortized cost method or the penny- a Fund would be identical in amount to investors or convey a false impression rounding method of computing their per income gain or loss by a shareholder of as to the safety of their investments. All share price. This would prohibit a Fund the same Fund whose shares were not liabilities created by credits to the that is a money market fund from held in the Deferred Fee Account. The Deferred Fee Account under the Plan investing in the shares of any other Trustee would neither directly or would be offset by equal amounts of Fund. Applicants submit that the indirectly receive a benefit which would assets that would not otherwise exist if requested exemption would permit the otherwise inure to the Funds or their the fees were paid on a current basis. Funds to achieve an exact matching of shareholders. Deferral of a Trustee’s fees 4. Section 13(a)(3) provides that no Underlying Securities with the deemed in accordance with the Plan would registered investment company shall, investments of the Deferred Fee essentially maintain the parties, viewed unless authorized by the vote of a Accounts, thereby ensuring that the both separately and in their relationship majority of its outstanding voting deferred fee arrangements would not to one another,in the same position as securities, deviate from any investment affect net asset value. Applicants further if fees were paid on a current basis. policy that is changeable only if assert that the amounts involved in all When all payments have been made to authorized by shareholder vote. Any cases would be de minimis in relation a participating Trustee, the participating relief granted from section 13(a)(3) of to the total net assets of each Fund, and Trustee would be no better off (apart the Act would extend only to existing would have no effect on the per share from the effect of tax deferral) than if he series of LB Series Fund with a net asset value of the Funds. or she had received deferred fees on a Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40263 current basis and invested them in request, and the issues contested. of applicant’s shares. Following the shares of the Underlying Securities. Persons who wish to be notified of a exchange, applicant distributed the SIF hearing may request notification by shares to each of its shareholders on a Applicants’ Conditions writing to the SEC’s Secretary. pro rata basis. Applicants agree that the order ADDRESSES: Secretary, SEC, 450 5th 6. The cost of printing and mailing the granting the requested relief shall be Street, N.W., Washington, DC 20549. proxies and proxy statements, and the subject to the following conditions: Applicant, One World Financial Center, cost of the tax opinion, were divided 1. With respect to the requested relief New York, NY 10281. between Oppenheimer Capital, from rule 2a–7, any money market Fund FOR FURTHER INFORMATION CONTACT: applicant’s investment adviser, and that values its assets by the amortized Suzanne Krudys, Senior Counsel, at OppenheimerFunds, Inc., manager of cost method or the penny-rounding (202) 942–0641, or Alison E. Baur, the Trust. Any other out-of-pocket method will buy and hold Underlying Branch Chief, (202) 942–0564 (Office of expenses of the Fund, including legal, Securities that determine the Investment Company Regulation, accounting and transfer agent expenses, performance of Deferred Fee Accounts Division of Investment Management). were borne by Oppenheimer Capital. to achieve an exact match between such Expenses incurred with respect to SUPPLEMENTARY INFORMATION: The Fund’s liability to pay deferred fees and documents included in the mailing to following is a summary of the the assets that offset that liability. SIF’s shareholders were borne by SIF. application. The complete application 2. If a Fund purchases Underlying Any other out-of-pocket expenses of may be obtained for a fee at the SEC’s Securities issued by an affiliated Fund, SIF, including legal, accounting and Public Reference Branch. the purchasing Fund will vote such transfer agent expenses, were borne by shares in proportion to the votes of all Applicant’s Representations OppenheimerFunds Inc. other holders of shares of such affiliated 1. Applicant, a registered open-end 7. At the time of filing the application, Fund. investment company, was organized as applicant’s only assets remaining are For the Commission, by the Division of a Maryland corporation on June 12, $2,341.00 in cash. The cash retained Investment Management, under delegated 1991. On June 19, 1991, the Fund represents an estimate of the total authority. registered under the Act on Form N–8A outstanding invoices which remain Margaret H. McFarland, and filed a registration statement on unbilled. 8. Applicant has no shareholders as of Deputy Secretary. Form N–1A pursuant to section 8(b) of the time of filing the application and is [FR Doc. 96–19566 Filed 7–31–96; 8:45 am] the Act and the Securities Act of 1933. not a party to any litigation or BILLING CODE 8010±01±M The registration statement was declared administrative proceeding. Applicant is effective on August 23, 1991 and not engaged, nor does it propose to applicant commenced its public offering engage, in any business activities other [Rel. No. IC±22100; 811±6335] of shares on December 2, 1991. than those necessary for the winding-up 2. At a meeting held on June 22, 1995, Quest For Value Global Funds, Inc.; of its affairs. Notice of Application the applicant’s Board of Directors adopted and recommended an For the SEC, by the Division of Investment July 25, 1996. Agreement and Plan of Reorganization Management, under delegated authority. AGENCY: Securities and Exchange (the ‘‘Agreement’’). The Agreement Margaret H. McFarland, Commission (‘‘SEC’’). provided that applicant would transfer Deputy Secretary. ACTION: Notice of Application for its assets to Oppenheimer Strategic [FR Doc. 96–19529 Filed 7–31–96; 8:45 am] Exemption Under the Investment Income Fund (‘‘SIF’’), a series of BILLING CODE 8010±01±M Company Act of 1940 (the ‘‘Act’’). Oppenheimer Strategic Funds Trust (‘‘Trust’’), in exchange for shares of SIF. [Rel. No. IC±22104; 812±9100] APPLICANT: Quest For Value Global 3. Also at this meeting, the applicant’s Funds, Inc. (the ‘‘Fund’’). directors determined that the Scudder Global Fund, Inc., et al; Notice RELEVANT ACT SECTION: Section 8(f). reorganization of the Fund would be in of Application the best interests of the shareholders of SUMMARY OF APPLICATION: Applicants the Fund and that no shareholder’s July 26, 1996. request an order declaring that it has interest would be diluted as a AGENCY: ceased to be an investment company. Securities and Exchange consequence thereof. Commission (‘‘SEC’’). FILING DATES: The application was filed 4. A proxy statement was filed with ACTION: Notice of application for on May 6, 1996 and amended on June the Commission and mailed to exemption under the Investment 16, 1996. shareholders in connection with the Company Act of 1940 (the ‘‘Act’’). HEARING OR NOTIFICATION OF HEARING: An solicitation by the applicant’s Board of order granting the application will be Directors of proxies for the purpose of SUMMARY: Scudder Global Fund, Inc., issued unless the SEC orders a hearing. voting on the Reorganization Plan. At a Scudder International Fund, Inc., Interested persons may request a meeting held on November 16, 1995, the Scudder Mutual Funds, Inc., Scudder hearing by writing to the SEC’s shareholders approved the Agreement. Equity Trust, Scudder Investment Trust, Secretary and serving applicants with a 5. The reorganization of the Fund Scudder Funds Trust, Scudder Portfolio copy of the request, personally or by with SIF closed on November 24, 1995 Trust, Scudder Securities Trust, mail. Hearing requests should be (the ‘‘Closing Date’’). Pursuant to the Scudder GNMA Fund, Scudder Cash received by the SEC by 5:30 p.m. on Reorganization Plan, all of the assets of Investment Trust, Scudder Pathway August 19, 1996, and should be the Fund less a cash reserve and net of Series (‘‘Pathway Series,’’ collectively accompanied by proof of service on any liability for outstanding shareholder the foregoing are the ‘‘Scudder Funds’’), applicants in the form of an affidavit or, redemptions were transferred to SIF in Scudder, Stevens & Clark, Inc. (‘‘SSC’’), for lawyers, a certificate of service. exchange for shares of SIF. The asset Scudder Service Corporation (‘‘Scudder Hearing requests should state the nature transfer in exchange for shares of SIF Service’’), Scudder Investor Services, of the writer’s interest, the reason for the was based on the relative net asset value Inc. (‘‘SIS’’), Scudder Trust Company 40264 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

(‘‘STC’’), and Scudder Fund Accounting investment company organized as a aggregate expenses of the Pathway Corporation (‘‘SFAC’’), and Scudder Massachusetts business trust. The Series are less than the estimated Fund Accounting Corporation Pathway Series will initially consist of savings to the Underlying Fund from the (‘‘SFAC’’). six portfolios. Each Portfolio will invest operation of the Pathway Series, the RELEVANT ACT SECTIONS: Order requested substantially all of its assets in certain Underlying Fund will bear those under section 6(c) to exempt the Scudder Funds (the ‘‘Underlying expenses in proportion to the average applicants from sections 12(d)(1) (A) Funds’’). The Underlying Funds are no- daily value of its shares owned by each and (B), sections 6(c) and 17(b) to load, open-end investment companies Pathway Series portfolio, provided that exempt applicants from section 17(a), which have not adopted plans under no Underlying Fund bears expenses in and rule 17d–1 under the Act to permit rule 12b–1 to finance their distribution excess of the estimated savings to it. In certain joint transactions. and, in some cases, are organized as the event that the aggregate financial series investment companies. benefits to the Underlying Funds do not SUMMARY OF APPLICATION: The requested Applicants request that the relief sought exceed the costs of the Pathway Series, order would permit the Pathway Series herein also apply to any future open- the Agreement will provide either that to operate as a ‘‘fund of funds.’’ end management investment company SSC or the Pathway Series will bear that FILING DATES: The application was filed or series thereof, which is advised by portion of costs determined to be greater on October 24, 1994, and amended on SSC or distributed by SIS which are part than the benefits. The determination of January 27, 1995, June 6, 1996, and July of the same group of investment whether and the extent to which the 24, 1996. companies as defined in rule 11a–3 benefits to the Underlying Funds from HEARING OR NOTIFICATION OF HEARING: An under the Act (such funds are also the the organization and operation of the order granting the application will be ‘‘Scudder Funds’’). Pathway Series will exceed the costs to issued unless the SEC orders a hearing. 2. SSC serves as the investment the Underlying Funds will be made Interested persons may request a adviser to each of the Scudder Funds. based on an analysis described in the hearing by writing to the SEC’s SIS serves as principal underwriter of application. The board of directors/ Secretary and serving applicants with a the Scudder Funds. Scudder Service trustees for each Underlying Fund, prior copy of the request, personally or by performs certain shareholder services to authorizing its fund to be a party to mail. Hearing requests should be for the Scudder Funds. SFAC provides the Agreement, will review and approve received by the SEC by 5:30 p.m. on fund accounting services for certain this analysis, and afterwards, upon August 22, 1996, and should be Scudder Funds. STC provides annual review of the Agreement, accompanied by proof of service on recordkeeping services with respect to determine its continued appropriateness applicants, in the form of an affidavit or, certain shares of the Scudder Funds. for each Underlying Fund. If the for lawyers, a certificate of service. SIS, SFAC, STC, and Scudder Service Pathway Series determines not to enter Hearing requests should state the nature are all subsidiaries of SSC. into the Agreement, it will bear its own of the writer’s interest, the reason for the 3. Applicants propose that, subject to expenses in connection with fund request, and the issues contested. the conditions to the requested order, operations and separately contract with Persons may request notification of a the Pathway Series be permitted to various service providers. purchase and redeem shares of the hearing by writing to the SEC’s Applicants’ Legal Analysis Secretary. Underlying Portfolios, and that each Underlying Portfolio be permitted to sell 1. Applicants request an order under ADDRESSES: Secretary, SEC, 450 5th and redeem shares from each of the section 6(c) of the Act for an exemption Street, NW., Washington, DC 20549. Pathway Series. The Pathway Series from section 12(d)(1) of the Act, under Applicants: Scudder Global Fund, Inc., will invest almost exclusively in shares sections 6(c) and 17(b) for an exemption Scudder International Fund, Inc., and of Underlying Funds. from section 17(a), and pursuant to Scudder Mutual Funds, Inc., 345 Park 4. SSC does not currently intend to section 17(d) and rule 17d–1 under the Avenue, New York, New York 10154– charge an additional advisory fee for the Act to permit the Funds to enter into the 0010 and Scudder Equity Trust, Pathway Series, earning only those Agreement, which would otherwise be Scudder Investment Trust, Scudder advisory fees accruing to the Underlying prohibited by section 17(d) and rule Funds Trust, Scudder Portfolio Trust, Fund holdings. As currently 17d–1. The requested relief would Scudder Securities Trust, Scudder contemplated, the Pathway Series will permit the Pathway Series to acquire up GNMA Fund, Scudder Cash Investment be sold on a no-load basis and without to 100% of the voting shares of any Trust, Pathway Series, SSC, Scudder rule 12b–1 fees, although the Pathway Underlying Fund. Service, SIS, STC, and SFAC, Two Series and the Underlying Funds may 2. Section 12(d)(1)(A) of the Act International Place, Boston, charge sales loads or service fees in the would prohibit the Pathway Series from Massachusetts 02110–4103. future. It is also currently contemplated purchasing more than 3% of the FOR FURTHER INFORMATION CONTACT: that all other expenses (shareholder outstanding voting securities of an Elaine M. Boggs, Staff Attorney, at (202) servicing, legal, accounting, etc.) will be Underlying Fund, securities issued by 942–0572, or Alison E. Baur, Branch paid for in accordance with a special all Underlying Funds having an Chief, at (202) 942–0564 (Division of servicing agreement (‘‘Agreement’’) to aggregate value in excess of 5% of the Investment Management, Office of be entered into between SSC, SIS, value of the total assets of the Pathway Investment Company Regulation). Scudder Service, STC, SFAC, the Series, or securities issued by the SUPPLEMENTARY INFORMATION: The Pathway Series, and the Underlying Underlying Funds and all other following is a summary of the Funds. investment companies having an application. The complete application 5. Under the Agreement, SSC will aggregate value in excess of 10% of the may be obtained for a fee at the SEC’s arrange for all of the services pertaining value of the total assets of the Pathway Public Reference Branch. to the operation of the Pathway Series. Series. Section 12(d)(1)(B) would In addition, the Agreement will provide prohibit the Underling Funds from Applicant’s Representations that, if the officers of any Underlying selling more than 3% of their 1. The Pathway Series is a registered, Fund, at the direction of its board of outstanding voting securities to the No-load, open-end, management director/trustees, determine that the Pathway Series and more than 10% to Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40265 the Pathway Series and other Pathway Series and the Underlying Funds. The payment of Pathway Series investment companies. Funds are each advised by SSC they expenses by any Underlying Fund will 3. Section 6(c) permits the SEC to could be deemed to be affiliates of one be subject to review and approval by exempt any person or transaction from another. Therefore, applicants request that Fund’s board of directors/trustees, any provision of the Act, if such an order to permit the Underlying including a majority of an Underlying exemption is necessary or appropriate Funds to sell their shares to the Pathway Fund’s independent directors/trustees. in the public interest and consistent Series. Shareholders of the Pathway Series will with the protection of investors and the 8. Section 17(b) permits the SEC to be on the same footing as shareholders purposes fairly intended by the policies grant an order permitting a transaction of the Underlying Funds in that their of the Act. For the reasons provided otherwise prohibited by section 17(a) if proportionate shares of the expenses of below, applicants argue that the it finds that the terms of the proposed the Underlying Funds, as paid requested order meets the section 6(c) transaction are fair and reasonable and indirectly by the Pathway Series, will be standards. do not involve overreaching on the part no more, or less, than the fund expenses 4. Section 12(d)(1) is intended to of any person concerned. Section 17(b) incurred directly by shareholders of the prevent the pyramiding of investment could be interpreted to exempt only a Underlying Funds. companies, the layering of fees, and single transaction. However, the undue organizational complexities. Commission, under section 6(c) of the Applicants’ Conditions Applicants state that none of these Act, may exempt a series of transactions Applicants will abide by the abuses associated with fund holding that otherwide would be prohibited by following conditions to the relief companies are present with respect to section 17(a). Applicants believe that requested: the proposed arrangement, and that the the terms of the transactions meet the 1. The Pathway Series and each Pathway Series will provide the benefits standards of sections 6(c) and 17(b). Underlying Fund will be part of the of diversification and cost savings to its 9. Section 17(d) of the Act and rule same ‘‘group of investment companies,’’ investors. 17d–1 thereunder prohibit an affiliated as defined in rule 11a–3 under the Act. 5. Applicants believe that the concern person of an investment company, 2. No Underlying Fund shall acquire over potential large scale redemptions is acting as principal, from participating in securities of any other investment not present in the context of the Funds. or effecting any transaction in company in excess of the limits Because the Pathway Series will only connection with any joint enterprise or contained in section 12(d)(1)(A) of the acquire shares of Underlying Funds that joint arrangement in which the Act. are in the Scudder family of funds, a investment company participates. The 3. A majority of the trustees of the redemption from one Underlying Fund Agreement contemplates the Pathway Pathway Series will not be ‘‘interested will simply lead to the investment of the Series, the Underlying Funds, and persons,’’ as defined in section 2(a)(19) proceeds in another Underlying Fund. various other affiliated ‘‘Scudder’’ of the Act (‘‘Independent Trustees’’). Applicants also believe that the entities may jointly participate in an 4. Before approving any advisory proposed arrangement will not result in arrangement whereby the fees and contract under section 15, the board of disruptive redemptions because the expenses of operating the Pathway trustees of the Pathway Series, Pathway Series will be designed for Series would be shared among the including a majority of the Independent long-term investors. This will reduce Underlying Funds or, in certain cases, Trustees, shall find that advisory fees the possibility of the Pathway Series borne by SSC. Accordingly, the charged under such contract are based being used as short-term trading arrangements contemplated by the on services provided that are in addition vehicles and further protect the Pathway Agreement could be viewed as to, rather than duplicative of, services Series and the Underlying Funds from constituting a ‘‘joint or joint and several provided pursuant to any Underlying unexpected large redemptions. participation.’’ Accordingly, applicants Fund’s advisory contract. Such finding, 6. While applicants currently do not request relief under section 17(d) and and the basis upon which the finding anticipate that the Pathway Series will rule 17d–1 to permit the Pathway Series was made, will be recorded fully in the be subject to sales loads, distribution to enter into the Agreement. minute books of the Pathway Series. fees, or shareholder servicing fees, any 10. Rule 17d–1 permits the SEC to 5. Any sales charges and other service sales charges or service fees relating to approve a proposed joint transaction. In fees charged with respect to securities of the shares of the Pathway Series will not determining whether to approve a the Pathway Series, when aggregated exceed the limits set forth in Article III, transaction, the SEC is to consider with any sales charges and service fees section 26 of the NASD’s Rules of Fair whether the proposed transaction is paid by the Pathway Series with respect Practice, when aggregated with any consistent with the provisions, policies, to securities of the Underlying Funds, sales charges or service fees that the and purposes of the Act, and the extent shall not exceed the limits set forth in Pathway Series may pay relating to the to which the participation of the Article III, section 26, of the Rules of Underlying Portfolio shares. The investment companies is on a basis Fair Practice of the National Association aggregate sales charges at both levels, different from or less advantageous than of Securities Dealers, Inc. therefore, will not exceed the limit that that of the other participants. 6. Applicants agree to provide the otherwise lawfully could be charged at Applicants believe that the requested following information, in electronic any single level. relief meets these standards. format, to the Chief Financial Analyst of 7. Section 17(a) of the Act generally 11. The Pathway Series and all of the the SEC’s Division of Investment prohibits sales or purchases of securities Underlying Funds will participate in the Management: monthly average total between a registered investment arrangement on the same, or assets for each Pathway portfolio and company and any affiliated person of substantially the same, basis. Under the each of its Underlying Funds; monthly that company. The sale by the Agreement, each Underlying Fund and purchases and redemptions (other than Underlying Funds of their shares to the all Underlying Funds in the aggregate by exchange) for each Pathway portfolio Pathway Series could be deemed to be will bear the expenses of the Pathway and each of its Underlying Funds; a principal transaction between Series only to the extent that such monthly exchanges into and out of each affiliated persons that are prohibited expenses are less than the benefits of the Pathway portfolio and each of its under section 17(a). Because the Pathway Series to the Underlying Underlying Funds; month-end 40266 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices allocations of each Pathway Series mail. Hearing requests should be that each such Fund would otherwise portfolio’s assets among its Underlying received by the SEC by 5:30 p.m. on pay these deferred fees, the Fund credits Funds; annual expense ratios for each August 19, 1996 and should be such amounts into the Deferred Fee Pathway portfolio and each of its accompanied by proof of service on the Account. Interest on each Deferred Fee Underlying Funds; and a description of applicants, in the form of an affidavit or, Account is credited each quarter, any vote taken by the shareholders of for lawyers, a certificate of service. calculated based on the balance of the any Underlying Fund, including a Hearing requests should state the nature Deferred Fee Account as of the first day statement of the percentage of votes cast of the writer’s interest, the reason for the of each quarter. The interest rate that for and against the proposal by the request, and the issues contested. has been used to date is based on the Pathway Series and by the other Persons who wish to be notified of a prevailing rate for 90-day U.S. Treasury shareholders of the Underlying Funds. hearing may request notification by bills in effect as of the prior quarter end Such information will be provided as writing to the SEC’s Secretary. or as close to that date as is possible. soon as reasonably practicable following ADDRESSES: Secretary, SEC, 450 Fifth 5. Each of the Funds now proposes to each fiscal year-end of the Pathway Street, N.W., Washington, D.C. 20549. adopt a formal deferred compensation Series (unless the Chief Financial Applicants, 99 Park Avenue, New York, plan (the ‘‘Plan’’). The Plan would Analyst shall notify applicants in N.Y. 10016. permit independent trustees to elect to defer receipt of all or a portion of their writing that such information need no FOR FURTHER INFORMATION CONTACT: fees, thereby also enabling them to defer longer be submitted). Christine Y. Greenlees, Senior Counsel, payment of income taxes on such fees. For the Commission, by the Division of at (202) 942–0581, or Robert A. 6. An independent trustee will be able Investment Management, under delegated Robertson, Branch Chief, at (202) 942– to defer fees with respect to one, several authority. 0564 (Division of Investment or all of the Funds for which he or she Margaret H. McFarland, Management, Office of Investment serves as an independent trustee. The Deputy Secretary. Company Regulation). election is to be made by execution of [FR Doc. 96–19567 Filed 7–31–96; 8:45 am] SUPPLEMENTARY INFORMATION: The a notice of election to defer BILLING CODE 8010±01±M following is a summary of the compensation (‘‘Notice of Election’’). A application. The complete application Notice or Election generally must be may be obtained for a fee from the SEC’s [Rel. No. IC±22099; 812±10140] made prior to January 1 of each calendar Public Reference Branch. year for which compensation is to be Van Eck Funds, et al.; Notice of Applicants’ Representations deferred. Application 7. Each Fund now proposes to use 1. Each of the Funds is a registered returns on certain Funds and other July 25, 1996. open-end management investment investment companies that are not AGENCY: Securities and Exchange company comprised of several affiliated with Van Eck Associates Commission (‘‘SEC’’). investment portfolios. Van Eck designated from time to time by the ACTION: Notice of Application for Associates serves as the investment trustees (the ‘‘Eligible Funds’’) to Exemption under the Investment adviser to each series of the Funds. determine the amount of earnings and Company Act of 1940 (the ‘‘Act’’). Applicants request that the exemption gains or losses allocated to an also apply to any registered investment independent trustee’s Deferred Fee APPLICANTS: Van Eck Funds, Van Eck companies that in the future are advised Account. If the requested relief is Worldwide Insurance Trust by Van Eck Associates or any entity granted, the value of the Deferred Fee (collectively, the ‘‘Funds’’), and Van Eck under common control with or Account as of any date would be Associates Corporation (‘‘Van Eck controlled by Van Eck Associates. (Such periodically adjusted by treating the Associates’’). future funds are also referred to as the Deferred Fee Account as though an RELEVANT ACT SECTIONS: Order requested ‘‘Funds.’’) equivalent dollar amount had been under sections 6(c) of the Act for an 2. Each Fund has a board of trustees, invested and reinvested in certain exemption from sections 13(a)(2), a majority of whom are not ‘‘interested designated securities (the ‘‘Underlying 13(a)(3), 18(f)(1), 22(f), and 22(g), and persons’’ within the meaning of section Securities’’). The underlying Securities rule 2a–7 thereunder; under sections 2(a)(19) of the Act (‘‘independent for a Deferred Fee Account will be 6(c) and 17(b) of the Act for an trustees’’). Each independent trustee shares of any of the Eligible Funds as exemption from section 17(a)(1); and receives annual fees from the Funds. No the participating independent trustee under section 17(d) of the Act and rule trustee who is an affiliated person of shall have designated in his or her 17d–1 thereunder. Van Eck Associates receives any Notice of Election. Each Deferred Fee remuneration from any Fund. Account shall be credited or charged SUMMARY OF APPLICATION: Applicants 3. Effective January 1, 1996, certain with book adjustments representing all request an order that would permit the independent trustees entered into a interest, dividends and other earnings Funds to enter into deferred deferred fee agreement (each an and all gains and losses which would compensation arrangements with their ‘‘Agreement’’), an unfunded, have been realized had such account independent trustees. nonqualified deferred compensation been invested in such Underlying FILING DATES: The application was filed arrangement, with each of the Funds. Securities. on May 9, 1996, and amended on July Under the Agreement, an independent 8. The Plan provides that a 19, 1996. trustee may elect to defer receipt of all participating Fund’s obligation to make HEARING OR NOTIFICATION OF HEARING: An or a portion of his or her fees earned on payments from a Deferred Fee Account order granting the application will be or after the effective date of the will be a general obligation of the Fund issued unless the SEC orders a hearing. Agreement through December 31, 1996. and payments made pursuant to the Interested persons may request a 4. Each of the Funds has established Plan will be made from such Fund’s hearing by writing to the SEC’s a book reserve account on behalf of each general assets and property. With Secretary and serving applicants with a electing independent trustee (each a respect to the obligations created under copy of the request, personally or by ‘‘Deferred Fee Account’’). On the dates the Plan, the relationship of an Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40267 independent trustee to the participating purposes fairly intended by the policy provide notice to shareholders of the Fund will be only that of a general and provisions of the Act. deferred compensation plan in their unsecured creditor. 3. Section 18(f)(1) generally prohibits statements of additional information.1 9. The Plan also provides that the a registered open-end investment The value of the Underlying Securities participating Fund will be under no company from issuing senior securities. is expected to be de minimis in relation obligation to the independent trustee to Section 13(a)(2) requires that a to the total net assets of each Restriction purchase, hold or dispose of any registered investment company obtain Series. Changes in the value of the investments but, if the Fund chooses to shareholder authorization before issuing Underlying Securities will not affect the purchase investments to cover its any senior security not contemplated by value of shareholders’ investments in obligations under such Plan, then any the recitals of policy in its registration the Restriction Series. Applicants and all such investments will continue statement. Applicants state that the Plan believe that permitting the Restriction to be a part of the general assets and would possess none of the Series to invest in Underlying Securities property of the Fund. characteristics of the instruments which without obtaining the shareholder 10. As a matter of prudent risk led to Congress’s concerns in this area. approval would thus not cause harm to management, each Fund intends In all cases, the liabilities for deferred the Restriction Series or their generally, and with respect to any fees are expected to be de minimis in shareholders, and would in fact benefit money market Fund that values its relation to Fund net assets. The Plan them by enhancing their ability to assets by the amortized cost method would not induce speculative attract and retain qualified trustees hereby undertakes, to purchase and investment by any Fund or provide without incurring the considerable costs maintain Underlying Securities in an opportunity for manipulative allocation of holding a shareholder meeting and amount equal to the deemed of a Fund’s expenses and profits; control soliciting proxies to approve a change in investments of the Deferred Fee of each Fund would not be affected; and the investment policy in question. Accounts of its independent trustees. the Plan would not confuse investors or 7. Rule 2a–7 imposes certain 11. Under the Plan, the independent convey a false impression of safety. restrictions on the investments of trustee’s deferred fees generally will be 4. Section 22(f) prohibits undisclosed ‘‘money market funds,’’ as defined distributed commencing on a date restrictions on the transferability or under the rule, that would prohibit a specified in the independent trustee’s negotiability of redeemable securities Fund that is a money market fund from Notice of Election, which may not be issued by open-end investment investing in the shares of any other sooner than the earlier of the companies. The Plan would clearly set Fund. Applicants submit that the termination of the independent trustee’s forth any restriction on transferability or requested exemption would permit the service as a trustee or one year following negotiability. Such restriction would be Funds in question to achieve an exact the deferral election. Payments will be included primarily to benefit the matching of Underlying Securities with made in a lump sum or in installments participating independent trustee, and the deemed investments of the Deferred as shall be elected by the independent would not adversely affect the interests Fee Accounts, thereby ensuring that the trustee. In the event of the independent of the independent trustee, the Fund or deferred fee arrangements will not affect trustee’s death, amounts payable to him any shareholder of the Fund. net asset value. 5. Section 22(g) prohibits registered or her under the Plan will thereafter be 8. Section 17(a)(1) generally prohibits open-end investment companies from payable to his or her designated an affiliated person of a registered issuing any of their securities for beneficiary; in all other events, the investment company from selling any services or for property other than cash independent trustee’s right to receive security to such registered investment or securities. These provisions prevent payments generally will be company. Funds that are advised by the the dilution of equity and voting power nontransferable. same entity may be ‘‘affiliated persons’’ that may result when securities are 12. The Plan will not obligate any of one another by reason of being under issued for consideration that is not Fund to retain the services of an the common control of their adviser. independent trustee, nor will it obligate readily valued. Applicants believe that the Plan would merely provide for Applicants request an exemption from any Fund to pay any (or any particular 17(a)(1) for transactions between level of) trustee’s fees to any trustee. deferral of payment of fees and thus should be viewed as being issued not in Eligible Funds that are affiliated with Applicants’ Legal Analysis return for services but in return for a Van Eck Associates. Applicants believe 1. Applicants request an order under Fund not being required to pay such that an exemption from this provision section 6(c) of the Act for an exemption fees on a current basis. would not implicate Congress’s from sections 13(a)(2), 13(a)(3), 18(f)(1), 6. Section 13(a)(3) provides that no concerns in enacting the section, but 22(f), 22(g), and rule 2a–7 thereunder to registered investment company shall, would merely facilitate the matching of permit the Funds to offer the Plans; unless authorized by the vote of a a Fund’s liability for deferred trustees’ under sections 6(c) and 17(b) of the Act majority of its outstanding voting fees with the Underlying Securities that for an exemption from section 17(a)(1) securities, deviate from any investment would determine the amount of such to permit the Funds to sell securities policy that is changeable only if Fund’s liability. issued by them to participating Funds; authorized by shareholder vote. Existing 9. Section 17(b) authorizes the SEC to and pursuant to section 17(d) of the Act series of Van Eck Funds have exempt a proposed transaction from and rule 17d–1 thereunder to permit the limitations on their ability to purchase section 17(a) if evidence establishes Funds to effect joint transactions securities issued by other investment that: (a) The terms of the transaction, incident to the Plans. companies (collectively, the including the consideration to be paid 2. Section 6(c) provides that the SEC ‘‘Restriction Series’). Any relief granted or received, are reasonable and fair and may exempt any person, security, or from section 13(a)(3) would apply only do not involve overreaching; (b) the transaction from any provision of the to the Restriction Series. Applicants transaction is consistent with the policy Act, if and to the extent that such believe that an exemption is appropriate 1 The Division notes that other funds have exemption is necessary or appropriate to enable the Restriction Series to invest disclosed their deferred compensation in the public interest and consistent in Underlying Securities without a arrangements in a similar manner. See John with the protection of investors and the shareholder vote. Applicants will Hancock Funds, Inc. (pub. avail. Jun. 28, 1996). 40268 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices of each registered investment company the purchasing Fund will vote such and discussed any comments it received concerned; and (c) the transaction is shares in proportion to the votes of all on the proposed rule change. The text consistent with the general purposes of other holders of shares of such affiliated of these statements may be examined at the Act. Because section 17(b) may Fund. the places specified in Item III below. apply only to a specific proposed For the SEC, by the Division of Investment The self-regulatory organization has transaction, applicants also request an Management, under delegated authority. prepared summaries, set forth in order under section 6(c) so that the Margaret H. McFarland, Sections A, B, and C below, of the most relief will apply to a series of Deputy Secretary. significant aspects of such statements. transactions. Applicants believe that the [FR Doc. 96–19528 Filed 7–31–96; 8:45 am] A. Self-Regulatory Organization’s proposed transactions satisfy the criteria Statement of the Purpose of, and of sections 6(c) and 17(b). The findings BILLING CODE 8010±01±M Statutory Basis for, the Proposed Rule required by section 17(b)(2) are Change premised on the assumption that the [Release No. 34±37478; File No. SR±BSE± relief requested from section 13(a)(3) is 96±8] 1. Purpose granted. The purpose of the proposed rule is 10. Section 17(d) of the Act prohibits Self-Regulatory Organizations; Notice of Filing and Order Granting to resume the pilot program for affiliated persons from participating in procedures relating to handling market- joint transactions with a registered Accelerated Approval of Proposed Rule Change by the Boston Stock on-close (‘‘MOC’’) orders on expiration investment company in contravention of days, non-expiration days and in market Exchange, Inc. Relating to Resumption rules and regulations prescribed in the conditions where New York Stock of the Pilot Program Regarding Certain SEC. Rule 17s–1 under the Act prohibits Exchange, Inc. (‘‘NYSE’’) Rule 80A is in Procedures for the Handling of Market- affiliated persons of a registered effect. The proposal also amends certain On-Close Orders investment company from entering into procedures to mirror those of the joint transactions with the investment July 25, 1996. primary markets, for the handling of company unless the SEC has granted an Pursuant to Section 19(b)(1) of the MOC orders on expiration days 4 so that order permitting the transaction after the BSE does not become a haven for considering whether the participation of Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 MOC orders that are prohibited on the such investment company is consistent primary markets.5 In this way, all orders with the provisions, policies, and notice is hereby given that on July 8, 1996, the Boston Stock Exchange, Inc. sent to the Exchange will receive equal purposes of the Act and the extent to treatment to orders sent to the primary which such participation is on a basis (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission markets. different from or less advantageous than The procedures for handling MOC that of other participants. Applicants (‘‘Commission’’ or ‘‘SEC’’) the proposed rule change, and on July 22, 1996, filed orders on expiration days under the request relief under section 17(d) and pilot program, include: (a) providing a rule 17d–1 for transactions with Eligible Amendment No. 1 to the proposed rule 3 3:40 p.m. deadline for the entry of all Funds that are affiliated with Van Eck change, as described in Items I and II below, which Items have been prepared MOC orders in all stocks, (b) prohibiting Associates. As an affiliated person, the the cancellation or reduction of any participating independent trustee would by the self-regulatory organization. The BSE has requested accelerated approval MOC order in any stock after 3:40 p.m., neither directly nor indirectly receive a (c) prohibiting order imbalances of benefit which would otherwise inure to of the proposal. The Commission is publishing this notice to solicit 50,000 shares or more as soon as the Funds or any of their shareholders. practicable after 3:40 p.m. in the pilot Deferral of an independent trustee’s fees comments on the proposed rule change from interested persons. stocks and (d) limiting the entry of MOC in accordance with the Plan would orders after 3:40 p.m. to offsetting essentially maintain the parties, viewed I. Self-Regulatory Organization’s published imbalances. With respect to both separately and in their relationship Statement of the Terms of Substance of item (b) above, the Exchange will permit to one another, in the same position the Proposed Rule Change cancellations of MOC orders after 3:40 (apart from tax effects) as if the fees The Exchange seeks to resume the p.m. in those instances where a were paid on a current basis. The effect pilot program for handling market-on- legitimate error has been made. The of the Plan would merely be to defer the close orders and amend the procedures term ‘‘pilot stocks’’ refers to the list of payment of fees that the applicants for the handling of such orders. These stocks designated by the NYSE as pilot would otherwise be obligated to pay on procedures mirror the procedures in stocks for purposes of its auxiliary a current basis. 6 place on the primary markets in order closing procedures. Pursuant to Applicants’ Conditions to ensure equal treatment of orders in both markets. 4 The term ‘‘expiration days’’ refers to both (1) the Applicants agree that the order trading day, usually the third Friday of the month, granting the requested relief shall be II. Self-Regulatory Organization’s when some stock index options, stock index futures subject to the following conditions: and options on stock index futures expire or settle Statement of the Purpose of, and concurrently (‘‘Expiration Fridays’’) and (2) the 1. With respect to the requested relief Statutory Basis for, the Proposed Rule trading day on which end of calendar quarter index from rule 2a–7, any money market Fund Change options expire (‘‘QIX Expiration Days’’). that values its assets by the amortized 5 The BSE’s auxiliary closing procedures for cost method or the penny-rounding In its filing with the Commission, the expiration days had been approved on a pilot basis method will buy and hold Underlying self-regulatory organization included until October 31, 1995. See Securities Exchange Act Release No. 34918 (October 31, 1994), 59 FR 55504 Securities that determine the statements concerning the purpose of and basis for the proposed rule change (‘‘1994 Pilot Approval Order’’). The BSE did not performance of Deferred Fee Accounts request an extension of the pilot program after that date. to achieve an exact match between such 1 Fund’s liability to pay deferred fees and 15 U.S.C. 78s(b)(1). 6 The Expiration Friday pilot stocks consists of 2 17 CFR 240.19b–4. the 50 most highly capitalized Standard & Poors the assets that offset that liability. 3 See Letter from Karen A. Aluise, Assistant Vice (‘‘S&P’’) 500 stocks and any component stocks of 2. If a Fund purchases Underlying President, BSE To Elisa Metzger, Special Counsel, the Major Market Index (‘‘MMI’’) not included Securities issued by an affiliated Fund, SEC, dated July 17, 1996. therein. The QIX Expiration Day pilot stocks consist Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40269

Amendment No. 1, the BSE has published imbalance in the subject IV. Commission’s Findings and Order proposed an amendment of the above stock the MOC order may be re-entered Granting Accelerated Approval of procedures to allow for imbalance with the instruction ‘‘buy minus’’ (‘‘sell Proposed Rule Change publications of 50,000 shares or more to plus’’) to offset the imbalance. The Commission finds that the be made not only in the pilot stocks, but 2. Statutory Basis proposed rule change is consistent with also in stocks added to or dropped from the requirements of the Act and the an index, and in any other stock if The statutory basis for the proposed rules and regulations thereunder requested by a specialist and approved rule is Section 6(b)(5) of the Act in that applicable to a national securities by a Floor Official. it is designed to prevent fraudulent and exchange, and, in particular with the The procedures for handling MOC 7 manipulative acts and practices, to requirements of Section 6 of the Act. orders on nonexpiration days would promote just and equitable principles of In particular, the proposal is consistent remain unchanged. These procedures 8 trade, to remove impediments to and with the Section 6(b)(5) requirements include: (a) providing a 3:50 p.m. perfect the mechanism of a free and that the rules of an exchange be deadline for the entry of all MOC orders open market and a national market designed to promote just and equitable in all stocks, (b) prohibiting the principles of trade, to prevent cancellation or reduction of any MOC system, and in general, to protect investors and the public interest; and is fraudulent and manipulative acts, and order in any stock after 3:50 p.m., (c) in general, to protect investors and the publishing order imbalances of 50,000 not designed to permit unfair discrimination between customers, public interest. shares or more as soon as practicable In recent years, the self-regulatory issuers, brokers, or dealers. after 3:50 p.m. in the pilot stocks, stocks organizations have instituted certain being added to or dropped from an B. Self-Regulatory Organization’s safeguards to minimize excess market index, and in any other stock with the Statement on Burden on Competition volatility that may arise from the approval of a Floor Official and (d) liquidation of stock positions related to limiting the entry of MOC orders after The Exchange does not believe that trading strategies involving index 3:50 p.m. to offset published the proposed rule change will impose derivative products. For instance, since imbalances. With respect to item (b) any burden on competition that is not 1986, the NYSE has utilized auxiliary above, the Exchange will permit necessary or appropriate in furtherance closing procedures on expiration days. cancellations of MOC orders after 3:50 of the purposes of the Act. These procedures allow NYSE p.m. in those instances where a specialists to obtain an indication of the C. Self-Regulatory Organization’s legitimate error has been made. buying and selling interest in MOC Statement on Comments on the The pilot program also includes orders at expiration and, if there is a Proposed Rule Change Received From procedures for the handling of MOC substantial imbalance on one side of the orders in market conditions where the Members, Participants or Others market, to provide the investing public NYSE’s Rule 80A is in effect. Under the The Exchange has neither solicited with timely and reliable notice thereof pilot program, on expiration days, if an nor received written comments on the and with an opportunity to make MOC index arbitrage order to buy (sell), proposed rule change. appropriate investment decisions in to establish or increase a position is response. Based on the NYSE’s entered, and Rule 80A subsequently III. Solicitation of Comments experience,9 the Commission believes goes into effect because of significant that the MOC order handling upward (downward) market movement, Interested persons are invited to requirements work relatively well and the MOC order must be cancelled, submit written data, views and may result in more orderly markets at regardless of the time Rule 80A goes arguments concerning the foregoing. the close on expiration days. into effect. If Rule 80A went into effect Persons making written submissions In today’s highly competitive market prior to 3:40 p.m., the MOC order may should file six copies thereof with the environment, however, it is possible be re-entered with the instruction ‘‘buy Secretary, Securities and Exchange that a regional exchange, which trades minus’’ (‘‘sell plus’’). If Rule 80A goes Commission, 450 Fifth Street, NW., NYSE-listed stocks but does not have into effect after 3:40 p.m. and there is a Washington, DC 20549. Copies of the comparable closing procedures, could published imbalance in the subject submission, all subsequent be utilized by market participants to stock, the MOC order may be re-entered amendments, all written statements enter MOC orders prohibited on the with the instruction ‘‘buy minus’’ (‘‘sell with respect to the proposed rule NYSE. Although the Commission has no plus’’) to offset the imbalance. change that are filed with the reason to believe that the BSE market Similarly, on nonexpiration days, if Commission, and all written has become a significant alternative an MOC index arbitrage order to buy communications relating to the market to enter otherwise prohibited (sell), to establish or increase a position proposed rule change between the MOC orders, the Commission agrees is entered, and Rule 80A subsequently Commission and any person, other than with the BSE that, if this possibility goes into effect because of significant those that may be withheld from the were realized, it could have a negative upward (downward) market movement, public in accordance with the impact on the fairness and orderliness the MOC order must be cancelled, provisions of 5 U.S.C. 552, will be of the national market system.10 regardless of the time Rule 80A goes available for inspection and copying at into effect. If Rule 80A goes into effect the Commission’s Public Reference 7 15 U.S.C. 78f. prior to 3:50 p.m., the MOC order may Section, 450 Fifth Street, NW., 8 15 U.S.C. 78f(b)(5). 9 be re-entered with the instruction ‘‘buy Washington, DC 20549. Copies of such The NYSE has submitted to the Commission minus’’ (‘‘sell plus’’). If Rule 80A goes several monitoring reports describing its experience filing will also be available for with the auxiliary closing procedures. The most into effect after 3:50 p.m. and there is a inspection and copying at the principal recent report was submitted to the SEC by the NYSE office of the BSE. All submissions on July 28, 1995. See Securities Exchange Act of the 50 most highly capitalized S&P 500 stocks, should refer to File No. SR–BSE–96–8 Release No. 36404 (October 20, 1995), 60 FR 55071. any component stocks of the MMI not included 10 For example, if MOC orders prohibited on the therein and the 10 highest weighted S&P Midcap and should be submitted by August 22, NYSE were entered instead on the BSE, unusually 400 stocks. 1996. Continued 40270 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

Accordingly, the Commission believes and asset allocation strategies could Margaret H. McFarland, that it is reasonable for the BSE to adopt employ MOC orders. The 3:50 p.m. Deputy Secretary. procedures for the handling of MOC deadline for MOC order entry and [FR Doc. 96–19530 Filed 7–31–96; 8:45 am] orders that mirror the NYSE’s, thereby cancellation, as well as the requirement BILLING CODE 8010±01±M ensuring the equal treatment of orders to disseminate MOC orders consisting of in both markets and, in the event of 50,000 shares or more as soon as unusual market conditions, offering the practicable after 3:50 p.m., on non- [Release No. 34±37481; File No. SR±CHX± BSE the same benefits in terms of expiration days should help the 95±26] potentially reducing volatility. specialist make a timely and reliable Self-Regulatory Organizations; In this regard, the Commission notes assessment of MOC order flow and its Chicago Stock Exchange, that the proposed rule change will potential impact on the closing price Incorporated; Order Granting Approval standardize the BSE’s closing and also should ensure that any to Proposed Rule Change and Notice procedures on expiration days with imbalance publications reflect actual of Filing and Order Granting those on the NYSE.11 On expiration investor interest. In the Commission’s Accelerated Approval to Amendments days, the BSE proposal will impose a opinion, a 3:50 p.m. deadline strikes a 3:40 p.m. deadline for entry of all MOC Nos. 1, 2, and 3 to Proposed Rule more appropriate balance for non- Change Relating to Listing Standards orders. In conjunction with the expiration days (as opposed to the 3:40 prohibition on cancellation or reduction p.m. deadline for expiration days) given July 25, 1996. of any MOC order after 3:40 p.m., this the reduced likelihood of substantial I. Introduction requirement should allow the specialist MOC order imbalances due to to make a timely and reliable derivatives-related trading strategies. On November 8, 1995, the Chicago assessment, for every stock, of MOC The Commission finds it appropriate Stock Exchange, Incorporated (‘‘CHX’’ order flow and its potential impact on or ‘‘Exchange’’) submitted to the the closing price. While the Commission for the BSE to provide for procedures for the handling of MOC orders in market Securities and Exchange Commission recognizes that 3:40 p.m. is relatively (‘‘SEC’’ or ‘‘Commission’’), pursuant to near the close, the Commission conditions when the NYSE’s Rule 80A is in effect.14 The Commission believes Section 19(b)(1) of the Securities previously has determined that such a 1 that the procedures clearly inform Exchange Act of 1934 (‘‘Act’’) and Rule deadline strikes a reasonable balance 19b–4 thereunder,2 a proposed rule between the need to effectuate an market participants of the manner in which MOC order can be placed on the change to establish new quantitative orderly closing and the need to avoid and qualitative listing standards with unduly infringing upon legitimate BSE when the NYSE’s Rule 80A is in effect. respect to common stock, preferred trading strategies.12 stock, bonds and debentures, warrants, The amended procedures for For the reasons discussed above, the contingent value rights, and other expiration days will require that, as Commission is approving the securities. soon as practicable after 3:40 p.m., BSE resumption of the pilot program, and The proposed rule change was specialists disseminate substantial Amendment No. 1, through October 31, published for comment in Securities imbalances in the pilot stocks, in stocks 1997. The Commission finds good cause Exchange Act Release No. 36531 (Nov. being added to or dropped from an for approving the proposed rule change 30, 1995), 60 FR 62918 (Dec. 7, 1995). index, and in any other stock if prior to the thirtieth day after the date No comments were received regarding approved by a Floor Official. In this of publication of notice of filing thereof the proposal. regard, the BSE pilot program combines in the Federal Register. This will permit On December 5, 1995, June 18, 1996, early submission of MOC orders with the proposed amendments to be and June 23, 1996, respectively, the prompt dissemination of imbalances effective simultaneously with the Exchange submitted to the Commission that reflect actual investor interest. As NYSE’s amendments to the procedures Amendment Nos. 1, 2, and 3 to the noted in prior Commission orders for handling MOC orders.15 In addition, proposed rule change to make approving these procedures for pilot the procedures the BSE proposes to use grammatical changes to the text of the 13 stocks, the BSE should have sufficient are identical to NYSE procedures that rule and to clarify certain listing and opportunity to attract any contra-side were published in the Federal Register maintenance requirements and interest necessary to alleviate for the full comment period and were corporate governance standards.3 This substantial MOC order imbalances in approved by the Commission.16 order approves the proposed rule any stock and to dampen their effect on It is therefore ordered, pursuant to change, including Amendment Nos. 1, the closing price. Section 19(b)(2) 17 that the proposed 2, 3 on an accelerated basis. In addition, the BSE will require order rule change is hereby approved on a handling procedures for non-expiration II. Description of Proposal days that are substantially similar to pilot basis through October 31, 1997. For the Commission, by the Division of This rule change includes original those in place for expiration days. This Market Regulations, pursuant to delegated listing and maintenance criteria and will allow members and member authority.18 organizations to follow comparable 1 15 U.S.C. § 78s(b)(1). procedures at the close on all trading 14 The Commission continues to believe that the 2 17 CFR 240.19b–4. days. Although there is less likelihood provisions of NYSE Rule 80A provides a useful 3 See Letter from Craig Long, Foley & Lardner, to of an influx of MOC orders at the close means of addressing market volatility. See Glen Barrentine, Team Leader, Division of Market on non-expiration days, certain trading Securities Exchange Act Release No. 29854 (October Regulation, SEC, dated December 4, 1995 24, 1991), 56 FR 55963. (‘‘Amendment No. 1’’); Letter from Craig Long, 15 See Release No. 34–36404, supra note 9. Foley & Lardner, to Sharon Lawson, Senior Special large MOC order imbalances on the regional 16 No comments were received in connection with Counsel, Division of Market Regulation, SEC, dated exchange could contribute to overall market June 17, 1996 (‘‘Amendment No. 2’’); Letter from volatility. the most recent proposed rule change which modified the NYSE procedures. See Release No. 34– Craig Long, Foley & Lardner, to Jennifer S. Choi, 11 See Release No. 34–36404, supra note 9. 36404, supra note 9. Division of Market Regulation, SEC, dated July 23, 12 See, e.g., Securities Exchange Act Release No. 1996 (‘‘Amendment No. 3’’). Amendment Nos. 1, 2, 33639 (February 17, 1994), 59 FR 9295. 17 15 U.S.C. 78s(b)(2). and 3 are described in more detail infra in the 13 See 1994 Pilot Approval Order, supra, note 5. 18 17 CFR 200.30–3(a)(12). description of the proposal. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40271 establishes qualitative standards and All securities, regardless of the 1. Tier I Listing Standards corporate governance policies requirements used for their admission to The Exchange’s new listing standards applicable to listed companies. listing, will be subject to identical for Tier I common stock are based on Specifically, the rule change establishes auction market trading rules. The standards established in a Memorandum a new two-tier listing structure whereby Exchange, however, will identify and of Understanding (‘‘MOU’’) between the the Tier I listing standards, in general, distinguish at all times which securities North American Securities will be quantitatively and qualitatively are listed pursuant to Tier I and Tier II Administrators Association, Inc. higher (i.e., more restrictive and standards. The Exchange will identify (‘‘NASAA’’) 4 and the Philadelphia demanding) than Tier II listing Tier I issues with a designation symbol Stock Exchange (‘‘Phlx’’) 5 and between standards. The current CHX listing annexed to its ticker symbol. NASAA and the Pacific Stock standards, to a large extent, will CHX listing standards for Tier I, either Exchange.6 The standards in these constitute the listing requirements for as regards to initial or maintenance MOUs were developed in an effort to new CHX Tier II listing, and CHX listing, are not waivable. Moreover, all provide issuers with securities listed on proposes new higher standards for the issuers listed under Tier I must satisfy these exchanges a basis for obtaining an CHX Tier I listing. the Tier I maintenance standards on a exemption from state securities registration requirements (i.e., blue sky Tier I includes standards for listing continuing basis. For Tier II, the exemption). The MOUs created common stock, preferred stock and Exchange may revise the Tier II minimum quantitative initial inclusion similar issues, bonds and debentures, requirements upward under certain and maintenance standards, corporate stock warrants, contingent value rights, circumstances, but an exception to Tier governance requirements, and minimum and other securities suited for auction II requirements may be made only by voting rights for listing on the respective market trading. Tier II includes listing vote of the Executive Committee of the exchange. The Exchange has adopted standards for common stock, preferred Board of Governors. the MOUs’ two alternative minimum stock, bonds and debentures, and quantitative initial inclusion standards warrants. for common stock, as follows:

Description Alt. No. 1 Alt. No. 2

Net Worth ...... $4,000,000 ...... $12,000,000. Pre-Tax Income ...... 750,000 ...... Net Income ...... 400,000 ...... Public Float (Shares) ...... 500,000 ...... 1,000,000. Market Value of Float ...... 3,000,000 ...... 15,000,000. Minimum Bid ...... $5/share * ...... $3/share * Public Beneficial Holders ...... 800/400 ** ...... 400. Operating History ...... 3 years. *The $5/$3 price must be the closing bid price for a majority of business days for the six-month period prior to the date of the application.7 f**800 shareholders are required for companies with at least 500,000 but less than 1 million shares publicly held, or 400 shareholders for compa- nies with at least 1 million shares publicly held, or 500,000 shares publicly held and daily trading volume in excess of 2,000 shares per day for six months.

Initial public offerings must be held, an aggregate market value of at requirements for common stock. Current underwritten on a ‘‘firm commitment’’ least $4,000,000, and at least 800 public last sale information must also be basis and must meet the CHX’s listing beneficial holders of 100 shares or more. available with respect to the underlying standards within a 30-day grace period In either cases, the issuer must meet the security into which the security is after completion of the offering, except net tangible assets and earnings convertible.10 that the initial public offering price will requirements for common stock and For listing of bonds and debentures only be required to meet the price must meet and appear able to service under Tier I, issuers will be evaluated required at the time of application and the dividend requirement for the based on the same net tangible assets not the six-month historical preferred stock, and each share of and earnings criteria applicable to requirement.8 preferred stock must have a minimum common stock. If an issuer’s common For preferred stock, the original closing bid price of $10 to be eligible for stock is listed on the Exchange, NYSE listing criteria vary depending on where listing. or Amex, the bonds or debentures must the issuer has its common stock listed. Moreover, the Exchange will not list have a minimum aggregate market value If the related common stock is listed on convertible preferred issues containing a and principal amount of $5,000,000 the Exchange, New York Stock provision that permits the company, at each and at least 100 public beneficial Exchange (‘‘NYSE’’), or American Stock its discretion, to change the conversion holders. If the related common stock is Exchange (‘‘Amex’’), there must be at price other than in accordance with the not traded on any of the above least 100,000 preferred shares publicly terms of the company’s Articles of referenced exchanges, the bonds or held and an aggregate market value of at Incorporation or any amendments debentures must have an aggregate least $2,000,000. If the related common thereof.9 If preferred stock is convertible market value and principal amount of at stock is not so listed, there must be at into a class of common stock, such class least $20,000,000 each and at least 100 least 400,000 preferred shares publicly must meet the Tier I listing public beneficial holders. In either case,

4 NASAA is an association of securities 5 The Memorandum of Understanding was 8 Id. administrators from each of the 50 states, the approved by NASAA and Phlx on October 12, 1994. 9 Id. District of Columbia, Puerto Rico and ten Canadian 6 The Memorandum of Understanding was 10 Redeemable preferred stock issues must provinces. approved by NASAA and PSE on October 12, 1994. provide for redemption pro rata or by lot. See 7 See Amendment No. 2, supra note 3. Amendment No. 2, supra note 3. 40272 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices issuers must meet and appear able to meet the net tangible assets and net worth of at least $10,000,000, or satisfy interest and principal when due earnings requirements applicable to total assets of at least $100,000,000 and on the bond or debenture to be listed. common stock. In addition, there must net worth of at least $20,000,000. 19 Moreover, the Exchange will not list be at least 600,000 publicly held CVRs Moreover, the Tier I listing standards convertible debt issues containing a with a market value of at least for these securities are not intended to provision that permits the company, at $18,000,000 and at least 400 public accommodate the listing of securities its discretion, to change the conversion beneficial holders, the issuer must have price other than in accordance with the total assets of at least $100,000,000, and that raise novel or significant regulatory terms of the company’s Indenture the CVRs must have a maturity of at issues and, therefore, the listing of such Agreement.11 If a debt security is least one year. In the alternative, the securities would require a separate rule convertible into a class of equity CVRs must have been approved for filing submitted pursuant to Section security, such equity security must meet listing on another national securities 19(b) of the Act and Rule 19b–4 the Tier I listing requirements. Current exchange. 16 Prior to the commencement thereunder. In this regard, the Exchange last sale information must also be of trading of CVRs, the Exchange will represents that it will consult with the available with respect to the underlying distribute a circular to its membership Commission on a case-by-case basis security into which the bond or explaining the specific risks associated concerning the appropriateness of filing debenture is convertible.12 with CVRs and providing guidance a proposed rule change concerning such To list municipal securities under regarding member firm compliance new product. 20 Tier I, the aggregate market value and responsibilities when handling principal amount must be at least transactions in such securities. 17 2. Tier II Listing Standards The Exchange will consider listing $20,000,000 each, and there must be at For issuers unable to satisfy the Tier least 100 public beneficial owners. The other securities not otherwise covered by the Tier I listing requirements I standards, the Exchange proposes Tier municipal security must also be rated as II standards to allow companies that investment grade by at least one provided the issue is suited for auction market trading. Prior to commencement may not be large enough to list under nationally recognized rating service. Tier I the opportunity to have their The Exchange intends to require of trading of such securities, the securities traded in an auction market, specialist units applying for Exchange will evaluate the nature and thereby increasing liquidity and issuer appointment and registration in complexity of the issue and, if municipal securities to be in appropriate, distribute a circular to the access to the investment community. compliance with Municipal Securities membership providing guidance The numerical Tier II initial listing Rulemaking Board (‘‘MSRB’’) Rule G–3 regarding member firm compliance standards for common stock, preferred regulations regarding municipal responsibilities when handling stock, bonds and debentures, and 18 securities principals and transactions in such securities. Such warrants are substantially similar to the representatives. 13 All Exchange securities must have at least 1,000,000 current CHX standards applicable to all contracts in municipal securities will be publicly held trading units and a listed issues, except that index warrants principal amount/market value of at compared, settled and cleared in and contingent value rights can no least $20,000,000. The issue must also accordance with the applicable longer be listed under these standards. regulations of the MSRB. 14 have at least 400 public beneficial holders or if the issue is traded in With respect to Tier II listing standards, For a Tier I listing of stock warrants, the Exchange proposes to use the term there must be at least 500,000 stock thousand dollar denominations, there must be a minimum of 100 public ‘‘publicly held shares,’’ in new Rule 18, warrants publicly held by not less than consistent with new Rule 1(b)(v). 21 The 250 public beneficial holders. The beneficial holders. In addition, the issuer must have total assets of at least Exchange also is now requiring that Exchange will not list stock warrants listed companies have at least 500 under the Tier I designation unless the $100,000,000 and net worth of at least public beneficial holders and that they common stock of the company or other $10,000,000. If the issuer is unable to demonstrate the ability to produce security underlying the stock warrants satisfy the earnings requirements adequate annual earnings, without is already listed (and meets the relevant applicable to Tier I common stock, the Exchange will require the issuer to have maintenance requirements for specifying a minimum annual total assets of at least $200,000,000 and 22 continued listing) or will be listed amount. concurrently with the stock warrants on In cases where a company’s security the issuer of the CVRs (‘‘related security’’). At the Exchange under the Tier I maturity, the holder of a CVR would be entitled to does not qualify for inclusion under designation. a cash payment at maturity if the market price of Tier I, yet the security is listed or has For the listing of Tier I contingent the related security is lower than a predetermined been approved for listing on the NYSE, value rights (‘‘CVRs’’), 15 issuers must target price. If the market price of the related security equals or exceeds the target price, the Amex (except for ‘‘ECM’’ securities), or holder of the CVR would not be entitled to receive Nasdaq National Market System 11 Id. such a cash payment. See Securities Exchange Act (‘‘Nasdaq/NMS’’), the Exchange may list 12 Redeemable issues must provide for Release No. 33843 (Mar. 31, 1994), 59 FR 16666 redemption pro rata or by lot. See Amendment No. (Apr. 7, 1994). such security under Tier II in reliance 2, supra note 3. 16 See Amendment No. 1, supra note 3. The upon the listing requirements of the 13 The National Association of Securities Dealers Commission notes that if another exchange amends applicable exchange or association. 23 (‘‘NASD’’) has authority to enforce MSRB rules for its listing standards for CVRs and lists securities listed municipal securities. The CHX enforcement pursuant to the amended standards, the in this regard will not preempt or limit in any Commission expects the CHX to make conforming 19 If the issue contains cash settlement provisions, manner the NASD’s authority to act in this area. changes. settlement must be made in U.S. dollars, and if the 14 The Exchange has also represented that 17 See Amendment No. 2, supra note 3. issue contains redemption provisions, the municipal securities traded on the Exchange will 18 The Exchange has also represented to the redemption price must be at least $3.00 per unit. not be subject to off-Board trading restrictions. See Commission that before listing or trading a new 20 See Amendment No. 3, supra note 3. Amendment No. 2, supra note 3. product, the Exchange will review whether any 21 See Amendment No. 2, supra note 3. 15 CVRs are unsecured obligations providing for a Section 19(b) rule filings would be required possible cash payment at maturity based on the pursuant to Rule 12f–5. See Amendment No. 2, 22 Id. value of an equity security issued by an affiliate of supra note 3. 23 Id. Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40273

3. Corporate Governance and Disclosure flexibility in evaluating transactions on I CVRs must maintain an aggregate Policies a case-by-case basis. market value of at least $1,000,000. If the security to which the CVR is tied is Tier I Tier I and Tier II delisted, trading in the CVR will be The Exchange proposes new corporate The Exchange will apply the current suspended and proceedings initiated to governance standards for Tier I public disclosure requirements to both delist the CVRs.31 securities. These provisions include Tier I and Tier II issues.28 Securities listed under the Tier I rules concerning conflicts of interest, 4. Maintenance Requirements designation will not be granted waivers independent directors, audit from the Exchange’s maintenance committees, quorum, shareholder Tier I requirements. For any security that no approval, annual meetings, and The quantitative maintenance longer meets the Tier I maintenance solicitation of proxies and consents. standards for Tier I common stock are requirements, but meets the Tier II Moreover, these standards include as follows: (1) at least 200,000 publicly maintenance requirements, the specific requirements for disclosure of held shares and a market value of at Exchange will initiate a proceeding to reports filed with federal regulatory least $1,000,000; (2) at least 400 public redesignate it as a Tier II security. bodies, specific requirements for beneficial holders, or at least 300 Tier II shareholder approval for certain beneficial holders of 100 shares or more; corporate actions, and specific voting and (3) net worth of at least $2,000,000 The Exchange proposes to apply the rights provisions. These requirements if the issuer has sustained losses from current maintenance standards for all are described in detail in the new rules. continuing operations and/or net losses securities listed on the Exchange to Tier With respect to voting rights, the new in two of the last three fiscal years, or II securities. If a Tier II listed security rule prohibits the listing or continued $4,000,000 if losses in three of the last matures to the point that it could meet listing of any common stock or other four years. the Tier I standards, the issuer must equity security of a domestic issuer if The preferred stock maintenance apply and receive approval to list the the company issues any class of security standards require for Tier I securities security pursuant to the Tier I standards or takes other corporate action with the the same net worth standards as before the CHX will recognize that effect of nullifying, restricting or common stock, at least 100,000 publicly security as a Tier I issue. disparately reducing the per share held shares with a market value of at The Exchange does not propose to voting rights of holders of an least $1,000,000, and at least 150 public materially change its delisting outstanding class of common stock.24 beneficial holders. In addition, the procedures. Moreover, to be eligible for listing, issuer must not have sustained losses III. Discussion preferred stock must give the holders from continuing operations and/or net The Commission finds that the the right to elect at least two members losses in the five most recent fiscal proposed rule change is consistent with of the issuer’s Board of Directors no years. If preferred stock is convertible the requirements of the Act and the later than two years after a default in the into a class of common stock, such class rules and regulations thereunder payment of fixed dividends.25 must meet the applicable Tier I maintenance requirements.29 applicable to a national securities Tier II Tier I bonds and debentures must exchange and, in particular, the 32 The Exchange is proposing to apply maintain the same net worth requirements of Section 6. The its current corporate governance maintenance standards as common Commission believes that the proposal standards to Tier II securities. These stock, an aggregate market value and is consistent with the Section 6(b)(5) include, among others, requirements for principal amount of at least $1,000,000 requirements that the rules of an an audit committee, independent each, and at least 100 public beneficial exchange be designed to perfect the directors, and solicitation of proxies. holders. In addition, for Tier I debt, the mechanism of a free and open market The Exchange also proposes to impose issuer must not have sustained losses and a national market system and to new voting rights provisions on Tier II from continuing operations and/or net protect investors and the public interest; securities.26 The new rule prohibits the losses in the five most recent fiscal and are not designed to permit unfair voting rights of existing shareholders of years. For debt securities of non-listed discrimination between issuers. The development and enforcement of publicly traded common stock from issuers, the security must be rated as adequate standards governing the initial being disparately reduced or restricted investment grade by at least one and continued listing of securities on an through any corporate action or nationally recognized rating service. If a exchange is an activity of critical issuance.27 Although this voting rights debt security is convertible into a class importance to financial markets and the standard is similar to the standard of equity security, such class must meet investing public. Listing standards serve applicable to Tier I securities, it the applicable Tier I maintenance as a means for a self-regulatory provides the Exchange with useful requirements.30 In the case of Tier I stock warrants, organization to screen issuers and to 24 This voting rights standard is modelled after the common stock of the company or provide listed status only to bona fide former Commission Rule 19c–4, which is no longer other security underlying the stock companies with sufficient float, investor in effect. The model MOU continues to utilize the warrant must meet the applicable Tier I base and trading interest to maintain fair Rule 19c–4 voting rights standard. maintenance requirements. Finally, Tier and orderly markets. Once a security 25 In addition, any change in the rights, privileges has been approved for initial listing, or preferences of preferred stock holders requires at least a two-thirds vote of the preferred class, voting 28 Id. maintenance criteria allow an exchange as a class. The creation of any additional class of 29 Current last sale information must be available to monitor the status and trading preferred stock senior to or equal in preference to with respect to the underlying security into which characteristics of that issue to ensure the issue to be listed requires at least a favorable the security is convertible. See Amendment No. 2, that it continues to meet the exchange’s majority vote of the preferred class, voting as a supra note 3. standards for market depth and class. 30 Current last sale information must be available 26 See Amendment No. 2, supra note 3. with respect to the underlying security into which 27 Id. This standard is almost identical to the the security is convertible. See Amendment No. 2, 31 Id. voting rights standard of the NYSE and Amex. supra note 3. 32 15 U.S.C. § 78F. 40274 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices liquidity. For the reasons set forth With respect to CVRs, the CHX’s finds that there is good cause, consistent below, the Commission believes that the proposed standards are identical to with Section 6(b)(5) of the Act, to proposed rule change will provide the those of the other securities exchanges. accelerate approval of Amendment Nos. Exchange with greater flexibility in Moreover, the Exchange has represented 1, 2, and 3. determining which securities warrant that it will distribute a circular to its inclusion on the Exchange, without membership explaining the specific IV. Solicitation of Comments risks associated with CVRs and compromising the benefits that the Interested persons are invited to Exchange’s listing standards offer to providing guidance regarding member submit written data, views, and investors. firm compliance responsibilities when arguments concerning Amendment Nos. The Commission notes that most of handling transactions in such securities. 1, 2, and 3. Persons making written the Exchange’s new listing standards are The Commission believes that this substantially similar to the rules of should help ensure that only customers submissions should file six copies existing national securities exchanges with an understanding of the risks thereof with the Secretary, Securities and the Nasdaq National Market and, attendant to the trading of CVRs trade and Exchange Commission, 450 Fifth therefore, finds that these standards are these securities on their brokers’ Street, NW., Washington, DC 20549. equally acceptable for the Exchange. To recommendations. Copies of the submission, all subsequent the extent that the Exchange’s proposed Finally, the Commission believes that amendments, all written statements rules do differ from those of existing inclusion of a security for listing on an with respect to the proposed rule national securities exchanges and the exchange should not depend solely on change that are filed with the Nasdaq National Market, the meeting quantitative criteria, but should Commission, and all written Commission finds them also to be also entail an element of judgment given communications relating to the consistent with the Act. the expectations of investors and the proposed rule change between the In addition to the quantitative imprimatur of listing on a particular Commission and any person, other than 35 standards, the other qualitative market. The Commission believes that those that may be withheld from the requirements, such as the establishment this rule provides the necessary public in accordance with the flexibility to determine whether to list of audit committees, voting rights, provisions of 5 U.S.C. § 552, will be an issuer, while ensuring that certain shareholder approval, and disclosure available for inspection and copying at policies, ensure that companies trading minimum standards must be met. Thus, the Commission believes that the new the Commission’s Public Reference on the Exchange will adequately protect Section, 450 Fifth Street, NW., the interests of public shareholders. The listing and maintenance standards strike the appropriate balance between Washington, DC 20549. Copies of such Commission also notes that because filing will also be available for extensive listing and maintenance protecting investors and providing a marketplace for issuers satisfying the inspection and copying at the principal standards are being adopted, only office of the Exchange. All submissions companies suitable for exchange listing disclosure requirements under the should refer to File No. SR–CHX–95–26 are eligible for trading on the Exchange. federal securities laws. The new and should be submitted by August 22, Further, as noted above, for Tier I standards will provide important 1996. securities the listing and maintenance guidance to the Exchange review process, and will alert issuers seeking criteria are not waivable. This will V. Conclusion ensure that the minimum requirements listing on the Exchange, as well as current Exchange issuers, of the necessary to ensure adequate depth and For the reasons stated above, the Exchange’s specific standards. liquidity to support exchange trading Commission believes the rule change is Moreover, the Commission finds good will be met.33 consistent with the Act and, therefore, cause for approving Amendment Nos. 1, has determined to approve it. The rule Moreover, with respect to the CHX’s 2, and 3 to the proposed rule change proposal to list other securities, the prior to the thirtieth day after the date change provides enhanced listing Commission believes that the proposed of publication of notice of filing thereof. standards for Exchange listed securities rule change is consistent with the Act These amendments made clarifying which provide greater protection for because it relates only to those changes to the rule proposal and investors and the public interest. securities that are similar to products strengthened the listing requirements The Commission does not believe that currently listed for trading by the under the proposal. Moreover, the the rule change will result in any Exchange. If a new product raises novel Commission did not receive any burden on competition that is not or significant regulatory issues, the comments on the original proposal,36 Exchange must file a proposed rule necessary or appropriate in furtherance which was noticed for the full statutory change so that the Commission would of the purposes of the Act, as amended. period, nor did it receive comments on have an opportunity to review the It is therefore ordered, pursuant to a similar PSE proposal that was also regulatory structure for the product.34 Section 19(b)(2) of the Act,38 that the noticed for the full statutory period.37 Based on the above, the Commission proposed rule change (SR–CHX–95–26), 33 The Commission notes that for Tier II as amended, is approved. securities, the Exchange may revise the For the Commission, by the Division of requirements upward under certain circumstances, 35 See, e.g., In the Matter of Silver Shield Mining but only the Executive Committee of the Board of and Milling Company, Securities Exchange Act Market Regulation, pursuant to delegated Governors may make an exception to the Release No. 6214 (Mar. 18, 1960) (‘‘use of the authority.39 requirements. The Commission expects the facilities of a national securities exchange is a Margaret H. McFarland, Exchange to treat these standards generally as privilege involving important responsibilities under minimum requirements. To the extent the CHX the Exchange Act’’); In the Matter of Consolidated Deputy Secretary. Executive Committee has authority to permit lower Virginia Mining Co., Securities Exchange Act [FR Doc. 96–19564 Filed 7–31–96; 8:45 am] standards, the Commission believes this should Release No. 6192 (Feb. 26, 1960) (same). only be permitted in the rarest of circumstances and 36 See Securities Exchange Act Release No. 36531 BILLING CODE 8010±01±M only when the CHX is assured an adequate market (Nov. 30, 1995), 60 FR 62918 (Dec. 7, 1995). in the security can continue to be made and 37 See Securities Exchange Act Release No. 34429 continued listing is supported in the public interest. (July 22, 1994), 59 FR 38998 (Aug. 1, 1994) 38 15 U.S.C. § 78s(b)(2). 34 See Amendment No. 3, supra note 3. (approval of PSE’s two-tier listing structure). 39 17 CFR 200.30–3(a)(12). Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40275

[Release No. 34±37482; File No. SR±GSCC± next-day and term repos.7 As initially to the IDB but is still a GSCC member, 96±04] implemented, IDB netting members GSCC will accept the repo transaction July 25, 1996. were not eligible for participation in the and treat the start leg as a forward repo netting service.8 This proposal settling start leg to be settled through Self-Regulatory Organizations; allows IDB netting members to GSCC. Government Securities Clearing participate in GSCC’s repo netting Only IDBs that have and agree to Corporation; Order Granting Approval service. maintain a level of excess net capital or of a Proposed Rule Change Relating to Pursuant to this rule change, IDB excess liquid capital, as applicable, of at Interdealer Broker Netting Members netting members and their non-IDB least $10 million are eligible to submit Participating in Repurchase netting member customers (i.e., dealers) data on repo transactions to GSCC.10 Transactions Settlement Services will submit data on brokered repos to Furthermore, IDBs may only submit to GSCC in the same manner as they do for GSCC repo transactions that have been On May 10, 1996, the Government cash transactions. GSCC will compare, executed between two dealers that have Securities Clearing Corporation net, and settle repo start legs which are been designated as eligible to participate (‘‘GSCC’’) filed with the Securities and submitted prior to the start date (i.e., in GSCC’s repo netting services.11 As a Exchange Commission (‘‘Commission’’) non-same-day-settling start legs) and all result, the IDB’s position will always net a proposed rule change (File No. SR– repo close legs for next-day and term out at GSCC. GSCC–96–04) under Section 19(b)(1) of repos pursuant to GSCC’s existing IDBs are subject to the following the Securities Exchange Act of 1934 procedures for the netting and settling operational requirements: (1) Upon (‘‘Act’’) 1 to allow interdealer broker of repos. GSCC Rule 18, Special being informed by either GSCC or (‘‘IDB’’) netting members to become Provisions for Repo Transactions, will another netting member of an error in or eligible for GSCC’s netting service for also apply to brokered repos.9 problem with the data on an eligible repurchase and reverse repurchase Because GSCC currently does not repo transaction that it has submitted to transactions involving government clear same-day-settling start legs, the GSCC, an IDB netting member must act securities as the underlying instrument parties to brokered repos will assume promptly and in good faith to correct (‘‘repos’’). On May 13, 1996, GSCC the responsibility for the intraday the error; (2) each IDB repo netting amended the filing.2 Notice of the settlement of such start legs outside of member will be assigned a second GSCC proposal was published in the Federal GSCC. As a result, IDBs will be participant number, and all repos must Register on May 28, 1996.3 The assuming principal liability for these be processed using that number;12 and Commission received six comment transactions. Through its novation, (3) each IDB repo netting member will letters 4 with GSCC responding to one of GSCC will be the legal counterparty for be required to establish a separate the comment letters.5 For the reasons all eligible netted close legs and start account with a separate Fedwire address discussed below, the Commission is legs submitted prior to the settlement at a clearing bank that will be used approving the proposed rule change. date and will guarantee settlement as of exclusively for the intraday settlement outside of GSCC of same-day-settling I. Description the delivery to participants of netting output information on the day following start legs. (I.e., the dealer member on the GSCC previously introduced a the trade date (‘‘T+1’’). Therefore, an repo side of the start leg will deliver comparison service for repo IDB’s exposure is limited to its principal securities to this separate Fedwire transactions 6 and a netting service for liability in the event that GSCC ceases account, and the IDB will redeliver the the non-same-day-settling aspects of to act for its customer pursuant to GSCC securities to the contraparty from this Rule 19 or 20 during the period between account.) Each IDB repo netting member 1 15 U.S.C. § 78(b)(1) (1988). the execution of the trade and the must authorize its clearing bank to 2 Letter from Jeffrey F. Ingber, General Counsel allow GSCC to review this clearing and Secretary, GSCC, to Christine Sibille, Division effectiveness of GSCC’s guarantee. If a of Market Regulation (‘‘Division’’), Commission dealer fails in its settlement obligations account. GSCC will review this account (May 13, 1996). to facilitate the correction of errors and 3 Securities Exchange Act Release No. 37230 (May 7 Securities Exchange Act Release No. 36491 20, 1996), 61 FR 26550. (November 17, 1995), 60 FR 61577 [File No. SR– 10 The Commission recently approved File No. 4 Letters from Edwin F. Payne, Chief Executive GSCC–95–02] (order approving a proposed rule SR–GSCC–96–02, which requires all IDBs, Officer, Liberty Brokerage Investment Corp. change relating to netting services for the non-same- regardless of whether they participate in the repo (‘‘Liberty’’), to Jonathan G. Katz, Secretary, day-settling aspects of next-day and term repos). netting service, to have and to maintain a minimum Commission (May 16, 1996); David C. Bushnell, 8 GSCC’s long-range plans for its repo services level of excess liquid/net capital of at least $10 Managing Director, Salomon Brothers, Inc. entail the full and complete automation of all million. Securities Exchange Act Release No. 37343 (‘‘Salomon’’), to Jonathan G. Katz, Secretary, aspects of start and close leg processing, including (June 20, 1996), 61 FR 33564 (order approving a Commission (May 16, 1996); Roger J. Cohen, Chief the intraday settlement of repo start legs. IDB proposed rule change modifying the minimum Operating Officer, Garvin GuyButler (‘‘Garvin’’) to netting members were not made eligible for GSCC’s financial criteria for Category 1 IDB netting Jonathan G. Katz, Secretary, Commission (May 17, repo netting services because brokering in the repo membership). 1996); William S. Molloy, Managing Director, market generally was done on a give-up basis (i.e., 11 The definitions for Category 1 and Category 2 Morgan Stanley & Co. (‘‘Morgan Stanley’’), to the brokers give up the names of each counterparty IDBs have been amended to account for repo Jonathan G. Katz, Secretary, Commission (May 20, to the other and drop out of the transaction). GSCC transactions with non-GSCC members which will 1996); Raymond McLaughlin, Managing Director, initially intended to address IDB participation in not be submitted to GSCC. Specifically, Category 1 Patriot Securities, Inc. (‘‘Patriot’’), to Jonathan G. the repo netting system when implementing a IDBs are not limited to acting exclusively as brokers Katz, Secretary, Commission (May 17, 1996); and netting and settlement service for same-day-settling on behalf of GSCC netting members and/or Stephen K. Lynner, President, Delta Clearing Corp. start legs. Because GSCC will not be able to grandfathered nonmembers with respect to repo (‘‘Delta’’), to Jonathan G. Katz, Secretary, implement such a service until the last quarter of transactions. Similarly, Category 2 IDBs are not Commission (June 18, 1996). this year at the earliest, GSCC filed this proposed limited to acting exclusively as brokers or 5 Letter from Jeffrey F. Ingber, General Counsel rule change in order to expedite the entry of IDB conducting at least ninety percent of their business and Secretary, GSCC, to Jerry W. Carpenter, netting members in the repo netting system. with GSCC netting members and/or grandfathered Assistant Director, Division, Commission (June 25, 9 Rule 18 establishes eligibility requests for nonmembers with respect to repo transactions. IDB 1996). participation in the repo netting process, establishes netting members will not need to report data on 6 Securities Exchange Act Release No. 35557 the timing for novation of repo transactions, and repos pursuant to Section 3 of Rule 15, and the (March 31, 1995), 60 FR 17598 [File No. SR–GSCC– sets forth netting members’ obligations to submit continuance standards of Rule 3, Section 5 (g) and 94–10] (Order approving proposed rule change repo transactions to GSCC, another registered (i) will not take into account repo transactions. relating to implementing a comparison service for clearing agency, or a clearing agency that has been 12 The second account will make it easier for repos). exempted from registration as a clearing agency. GSCC to monitor an IDB’s repo activity. 40276 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices problems. For example, if a same-day- corrected promptly.19 GSCC also stated effectiveness of GSCC’s guarantee of the settling start leg fails to settle, GSCC that there is no possibility of multiday close leg on T+1, IDBs’ liability is will be aware that the deliver and exposure by a participating dealer limited to one day’s exposure. receive obligations must be carried into member to an IDB because if a dealer The Commission believes that GSCC’s GSCC for settlement. GSCC will not counterparty on the short side fails on operational requirements will minimize have or will not assume any trade date to deliver securities to its IDB potential risks of allowing IDBs to responsibility for the settlement of a counterparty in settlement of the start participate in the repo netting service. same-day-settling start leg other than leg but is still a GSCC member, the start The Commission also believes that the same-day-settling legs that are converted leg will be treated as a forward settling benefits of the proposed rule change, into forward settling start legs. start leg that will be guaranteed and including more efficient settlement, settled by GSCC. outweigh any possible risks of allowing II. Comment Letters IDBs to participate in the repo netting III. Discussion The Commission received five letters system and promote the prompt and from commenters in favor of GSCC’s The Commission finds that the accurate clearance and settlement of proposed rule change.13 The three IDB proposed rule change is consistent with securities transactions. Furthermore, the commenters believe that being excluded the requirements of the Act and the risk management and operational from the repo netting process puts them rules and regulations thereunder and procedures imposed by GSCC on IDB at a disadvantage as market particularly with the requirements of netting members participating in the participants.14 Three commenters Section 17A(b)(3)(F).20 Section repo netting service should help to believe that the proposal will increase 17A(b)(3)(F) requires that the rules of a assure the safeguarding of securities and liquidity in the repo market.15 Three clearing agency be designed to promote funds in the custody or control of GSCC commenters believe that allowing IDBs the prompt and accurate clearance and or for which it is responsible. to participate in repo netting will bring settlement of securities transactions and IV. Conclusion enhanced risk protection and a more to assure the safeguarding of securities efficient settlement process to a broader and funds which are in the custody or The Commission finds that GSCC’s scope of repo transactions.16 control of the clearing agency or for proposal is consistent with the One commenter opposed the which it is responsible. The requirements of the Act and particularly proposed rule change.17 This Commission believes GSCC’s rule with Section 17A and the rules and commenter believes that allowing IDBs change meets these goals because the regulations thereunder. to assume the role of principal in repo introduction of IDBs to the repo netting It is therefore ordered, pursuant to transactions introduces an element of system continues the process whereby Section 19(b)(2) of the Act, that the credit and performance risk to the repo GSCC provides the benefits of proposed rule change (File No. SR– marketplace. The commenter is centralized automated settlement to a GSCC–96–04) be and hereby is concerned that IDBs, which are broader segment of government approved. traditionally agents, do not have the securities transactions. For the Commission by the Division of requisite experience to act as repo The one adverse commenter Market Regulation, pursuant to delegated counterparties. The commenter also is expressed concern over the credit and authority.21 concerned that IDBs could have performance risks of IDBs as Margaret H. McFarland, exposure over several days resulting counterparties in repo transactions. The Deputy Secretary. from a dealer’s failure to meet its Commission believes that GSCC has in [FR Doc. 96–19569 Filed 7–31–96; 8:45 am] place risk management procedures that settlement obligations. BILLING CODE 8010±01±M GSCC responded to this commenter adequately address these concerns. For stating that there will be no significant example, GSCC imposes minimum risks with the participation of IDBs in excess net capital or minimum excess [Release No. 34±37479; File No. SR±Phlx± 96±25] repo netting because GSCC will accept liquid capital requirements on IDBs, as only data on repo transactions that have applicable, for eligibility in submitting data on repo transactions to GSCC for Self-Regulatory Organizations; Notice been executed between dealer netting of Filing of Proposed Rule Change by members eligible to participate in netting. By only accepting data on repo transactions that have been executed the Philadelphia Stock Exchange, Inc., GSCC’s repo netting service.18 Thus, Relating to the Adoption of Automatic absent error, GSCC believes that IDBs between two dealers that have been designated as eligible to participate in Double-Up/Double-Down Price should net out in every case. Improvement for Eligible PACE Orders Furthermore, GSCC noted that in GSCC’s repo netting services, GSCC addition to certain financial reduces the risks associated with IDBs July 25, 1996. requirements, GSCC will impose by assuring that the IDBs’ positions at Pursuant to Section 19(b)(1) of the significant operational requirements on GSCC will generally net out. Securities Exchange Act of 1934 participating IDBs to ensure that if data Furthermore, unless GSCC ceases to act (‘‘Act’’), 15 U.S.C. § 78s(b)(1), notice is submission errors do occur, they will be for a dealer participant prior to the hereby given that on July 1, 1996, the Philadelphia Stock Exchange, Inc. 19 As indicated above, these operational 13 Supra note 3. Of the five commenters in favor (‘‘Phlx’’ or ‘‘Exchange’’) filed with the requirements include the requirement that an IDB of the proposal, three are IDBs (Liberty, Garvin, and act promptly and in good faith to correct any error Securities and Exchange Commission Patriot) and two are broker-dealers (Salomon and in or problem with the data on an eligible repo (‘‘Commission’’) the proposed rule Morgan Stanley). transaction that it has submitted to GSCC; the 14 change and on July 23, 1996, submitted These commenters state that eligibility will assignment of a second GSCC participant number allow them to shift to blind brokering of repos, as Amendment No. 1 to the proposed rule for processing of all repos; and the requirement that 1 opposed to brokering on a give-up basis, which they each IDB repo netting member establish a separate change, as described in Items I, II, and believe is a preferable form of trading. account with a separate Fedwire address at a 15 Salomon, Garvin, and Morgan. clearing bank to be used exclusively for the intraday 21 17 CFR 200.30–3(a)(12) (1995). 16 Salomon, Morgan, and Liberty. settlement outside of GSCC of same-day-settling 1 See letter from Gerald D. O’Connell, Senior Vice 17 Delta Clearing Corp., supra note 3. start legs. President, Phlx, to Jennifer Choi, Attorney, Division 18 Supra note 5. 20 15 U.S.C. § 78q–1(b)(3)(F) (1988). of Market Regulation, SEC, dated July 19, 1996 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40277

III below, which Items have been orders larger than the size established A. Self-Regulatory Organization’s prepared by the self-regulatory by the Committee, which is thus a Statement of the Purpose of, and organization. The Commission is ‘‘minimum’’ size. Statutory Basis for, the Proposed Rule publishing this notice to solicit Price improvement will be Change comments on the proposed rule change automatically accorded by the PACE 1. Purpose from interested persons. system to qualified orders, which will be automatically executed at the Generally, Rule 229 governs the PACE I. Self-Regulatory Organization’s improved price. However, in the event system and defines its objectives and Statement of the Terms of Substance of that this automatic execution feature of parameters. PACE accepts orders for the Proposed Rule Change PACE is not functioning and unable to automatic or manual execution in The Phlx, pursuant to Rule 19b–4 of provide an automatic execution, it shall accordance with the provisions of the the Act, proposes to adopt paragraph (c) be the responsibility of the specialist to Rule. Agency orders received through to Supplementary Material .07 of Rule ensure price improvement treatment to PACE are subject to certain minimum 229, Philadelphia Stock Exchange eligible PACE orders on a manual basis execution parameters, with non-agency Automatic Communication and in accordance with the proposed orders subject to the provisions of Execution (‘‘PACE’’) System. The provisions. In extraordinary Supplementary Material .02. The PACE purpose of the new provision is to circumstances, the Committee Chairman Rule establishes execution parameters automatically provide double-up and or his designee may grant an exemption for orders depending on type (market or double-down price improvement of the from the requirement of double-up/ limit) and size. The execution of limit minimum variation,2 usually 1⁄8 point, double-down price improvement.3 orders is governed by Supplementary to PACE market orders in New York In addition, the Exchange proposes to Material .09 and .10. With respect to Stock Exchange and American Stock amend Supplementary Material .05 by market orders, Supplementary Material Exchange listed securities. PACE is the titling the provision ‘‘Public Order .05, .06, .07 and .08 apply. Exchange’s automatic order routing and Exposure System’’ or ‘‘POES,’’ as it is Currently, round-lot market orders up execution system for securities on the known at the Exchange, as well as to to 500 shares and partial round-lot equity trading floor. reflect a 30 second time period, in lieu (‘‘PRL’’ which combines a round-lot Specifically, in any instance where of 15 seconds.4 with an odd-lot) market orders up to 599 the bid/ask of the PACE quote is wider The text of the proposed rule change shares are stopped at the PACE Quote 5 than the minimum variation, eligible is available at the Exchange and the at the time of entry into PACE for 30 market orders received through PACE Commission. seconds to provide the Phlx specialist shall be provided with double-up/ II. Self-Regulatory Organization’s with the opportunity to effect price double-down price improvement. For Statement of the Purpose of, and improvements when the spread between purposes of this provision, double-up/ 1 6 Statutory Basis for, the Proposed Rule the PACE quote exceeds ⁄8 point. This double-down price improvement would Change ‘‘30 second order exposure window,’’ be required whenever a double-up or which is also known as the Public Order double-down situation occurs with In its filing with the Commission, the Exposure System (‘‘POES’’), ensures that respect to the execution price of a PACE self-regulatory organization included stopped orders are automatically order. More specifically, a double-up/ statements concerning the purpose of executed at the stopped price after 30 double-down situation occurs whenever and basis for the proposed rule change seconds. At this time, the Exchange an order is guaranteed an execution at and discussed any comments it received proposes to codify the 30 second time the PACE quote resulting in a trade that on the proposed rule change. The text period into Supplementary Material .05, creates: (i) a plus or minus tick that is of these statements may be examined at which currently reflects the prior 15 two minimum variation ticks (up or the places specified in Item IV below. second window. The Exchange believes down) from the last regular way sale on The self-regulatory organization has that extending the window to 30 the primary market; or (ii) a tick that is prepared summaries, set forth in seconds enables the specialist to better at least two (up or down) minimum Sections A, B, and C below, of the most gauge the market and thus, improves the variation ticks from the regular way sale significant aspects of such statements. likelihood of price improvement. The previous to the last regular way sale in Exchange has learned, in its one year of the security on the primary market. 3 Specifically, the Exchange anticipates that extraordinary circumstances warranting such action experience with this order exposure Orders eligible for such price will arise when fast market conditions occur where window, that additional time for a improvement must be of a size equal to stock prices are not readily discernable over meaningful opportunity for price or less than the established maximum interrogation devices as well as where system improvement to be afforded to such order size, determined as a fixed malfunctions occur. See Amendment No. 1, supra orders is needed. The 30 second number of shares for all specialist units note 1. 4 According to the Exchange, the POES window window enables the specialist to better by the Floor Procedure Committee was extended from 15 to 30 seconds in December locate between-the-market interest and (‘‘Committee’’). A specialist may 1995 with the authorization of the Committee. Due probe other market centers. Of course, a determine to provide double-up/double- to an oversight, the Exchange did not file this large percentage of orders that are down price improvement to eligible change as a proposed rule change with the Commission for approval prior to its currently POES-eligible will also be implementation. After discovering this error in the eligible for the proposed automatic (‘‘Amendment No. 1’’). Amendment No. 1 clarifies course of drafting PACE Rule changes with respect double-up/double-down price the examples of the double-up/double-down price to double-up/double-down price improvement, the improvement. In such case, as explained improvement proposal and certain elements of the Exchange filed this change with the Commission. proposal. Moreover, Amendment No. 1 provides the The Exchange also represents that to date it has not history of the 30-second order exposure window distributed marketing materials reflecting an order 5 The PACE Quote consists of the best bid/offer proposal. These descriptions and changes are exposure window of 30 seconds. See Amendment among the American, Boston, Cincinnati, Chicago, incorporated into Items I, II, and III below. No. 1, supra note 1. The Commission notes that New York, Pacific and Philadelphia Stock 2 Pursuant to Rule 125, bids and offers are while the Phlx is currently using the 30-second Exchanges as well as the Intermarket Trading generally made at a variation of 1⁄8 of one dollar order exposure window, the change from the 15- System/Computer Assisted Execution System ($1.00) in stocks. With respect to American Stock second to 30-second window is not officially (‘‘ITS/CAES’’). See Rule 229. Exchange listed stocks trading under $10, the effective until the Commission approves this 6 Securities Exchange Act Release No. 35283 (Jan. minimum variation is 1⁄16. proposed rule change. 26, 1995), 60 FR 6333 (SR–Phlx–94–58). 40278 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices below, the order will not be stopped by example, where the PACE quote is improvement. Heretofore, price POES, but will instead be immediately 221⁄2–3⁄4, if the last sale was a down tick improvement was synonymous with executed at the improved price. at 5⁄8, a double-up/double-down delay. Now, price improvement would In addition, Supplementary Material situation would not occur for a market be automatic for eligible orders. The .07 states that a member organization order to buy because buying at 3⁄4 is a Exchange notes that the proposal may choose to have such an order single up of 1⁄8, but would for a sell enables specialists to extend this executed manually at or within the New order because selling at 1⁄2 is a down innovative price improvement York high-low range of the day. tick from 5⁄8, creating a double down procedure to larger orders, and that the Pursuant to paragraph (b), orders greater tick. Where the market is 221⁄4–3⁄4, with Committee may change the minimum than the sizes stated in Supplementary the last sale at 1⁄2, the provision would size as competitive conditions warrant. Material .05 as execution parameters for apply to a market order to buy or sell In summary, the Exchange believes that market orders (round-lots of 600–1,000 because buying at 3⁄4 creates a two- this automatic price improvement shares and PRLs of 601–1099 shares, or variation up tick (two 1⁄8 ticks from 1⁄2) feature adds an expedient benefit to such greater size that the specialist and selling at 1⁄4 creates a two-variation PACE. agrees to accept) are not subject to the down tick. If, with the market at 223⁄8– 2. Statutory Basis execution parameters of the Rule.7 5⁄8, the last sale was at 3⁄4 and the Currently, the PACE market orders, previous sale to that was at 1⁄2, the As explained above, the Exchange subject to the execution standards provision would apply to a sell order believes that the proposed rule change explained above, are executable at the because selling at 3⁄8 creates a two- is consistent with Section 6 of the Act PACE Quote, meaning the best bid/offer variation down tick (more than two 1⁄8 in general, and in particular, with at the time the order is received by ticks from 3⁄4, but not a buy order Section 6(b)(5), in that it is designed to PACE. In certain situations, these orders because 5⁄8 is not more than 1⁄8 from the promote just and equitable principles of can be ‘‘stopped’’ at that price by the last sale of 3⁄4 and is not the second trade, remove impediments to and specialist, meaning that the order is consecutive up or down tick from the perfect the mechanism of a free and guaranteed to receive at least that price. previous sale. If, again with the market open market and a national market As explained above, the 30 second order at 223⁄8–5⁄8, the last sale was at 5⁄8 and system, as well as to protect investors exposure window provides an example the previous sale to that was at 1⁄2, the and the public interest by providing of stopping stock in order to seek price provision would apply to a market order automatic price improvement to eligible improvement. The purpose of stopping to sell because selling at 3⁄8 creates a orders and extending the order exposure an order is to seek a better price for the two-variation down tick (from 5⁄8), but window to 30 seconds. order, by probing the market further or not a buy order because buying at 5⁄8 is simply a trade at the last price. B. Self-Regulatory Organization’s facilitating the order in its proprietary Statement on Burden on Competition account at that better price. To explain the interaction between At this time, the Exchange proposes to the 30 second order exposure window The Exchange does not believe that and the proposal at hand, assuming the the proposed rule change will impose adopt a double-up/down price 1 3 1 improvement provision for PACE market is 15 ⁄2– ⁄4 and the sale is 15 ⁄2, any inappropriate burden on market orders up to a size determined an order to buy 500 would be subject to competition. double-up/double-down price by the Committee. The Exchange C. Self-Regulatory Organization’s improvement because buying at 3⁄4 expects to provide the Commission with Statement on Comments on the creates a two variation up tick from 1⁄2 a fixed size shortly.8 Thereafter, the sale. The order would be automatically Proposed Rule Change Received From Committee will review this threshold as 5 Members, Participants, or Others executed under the proposal at 15 ⁄8 (if needed, but no less than on a semi- 1⁄8 is the minimum variation in that annual basis. The purpose of the No written comments were either security) and no 30 second window proposed provision is to provide solicited or received. would occur. If, on the other hand, the automatic price improvement to eligible order was to sell 500 shares, double-up/ III. Date of Effectiveness of the orders. As part of a continued effort to double-down would not apply because Proposed Rule Change and Timing for improve its execution parameters and Commission Action selling at 1⁄2 does not create an up or promote the principle of best execution, down tick; this order would be POES- Within 35 days of the publication of the Exchange is proposing to adopt an eligible such that the 30 second window this notice in the Federal Register or automatic price improvement provision would apply. within such longer period (i) as the to apply in double-up and double-down The Exchange is proposing to extend Commission ay designate up to 90 days situations. its price improvement initiative to of such date if it finds such longer Under the proposal, ‘‘double-up/ double-up and double-down situations period to be appropriate and publishes double-down’’ is defined as an because these are particularly suitable its reasons for so finding or (ii) as to execution resulting in a trade that for price improvement. Specifically, which the self-regulatory organization creates: (i) a plus or minus tick that is when the current market is two ticks consents, the Commission will: two minimum variation ticks (up or away from the last sale price, with this (A) By order approve the proposed down) from the last regular way sale on trend continuing, as evidenced by rule change, or the primary market; or (ii) a tick that is consecutive up or down ticks, it is (B) Institute proceedings to determine at least two (up or down) minimum consistent with the role of the specialist whehter the proposed rule change variation ticks from the regular way sale to enter into stabilizing transactions on should be disapproved. previous to the last regular way sale in behalf of public customers. Instead of the security on the primary market. For affording an automatic execution at the IV. Solicitation of Comments PACE quote, the proposal improves on Interested persons are invited to 7 However, the odd-lot portion of PRLs of 601 or that price. Thus, automatically executed submit written data, views, and more shares shall be executed at the same price as the round-lot portion, or the last such portion orders continue to receive the important arguments concerning the foregoing. executed. benefits of speedy execution and Persons making written submissions 8See Amendment No. 1, supra note 1. reporting, while also receiving price should file six copies thereof with the Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices 40279

Secretary, Securities and Exchange Trade Representative, 600 17th Street, no longer the only service provider as Commission, 450 Fifth Street, NW., NW., Washington, D.C. 20508. competition by private firms and other Washington, DC 20549. Copies of the SUPPLEMENTARY INFORMATION: Section government-owned entities is being submission, all subsequent 1374 of the Omnibus Trade and allowed. Yet Korean Government amendments, all written statements Competitiveness Act of 1988 (19 U.S.C. intervention in procurements by private with respect to the proposed rule 3103) provides that the USTR may Korean companies and other practices change that are filed with the identify countries that maintain barriers cited by U.S. telecommunications Commission, and all written that deny U.S. telecommunications products and services providers create communications relating to the products and services mutually effective barriers to access to the Korean proposed rule change between the advantageous market opportunities. In market. The Korean Government’s Commission and any person, other than making identifications, the U.S. Trade policies and actions relating to the those that may be withheld from the Representative must take into account promotion of domestic manufacturing of public in accordance with the factors such as: (a) the nature and high-technology telecommunications provisions of 5 U.S.C. 552, will be significance of the acts, policies and products results in additional lost available for inspection and copying at practices that deny mutually opportunities for U.S. suppliers. At the the Commission’s Public Reference advantageous market opportunities to same time, Korean manufacturers have Section, 450 Fifth Street, NW., telecommunications products and unrestricted access to the United States Washington, DC 20549. Copyies of such services of United States firms; (b) the market for telecommunications filing will also be available for economic benefits (actual and potential) products. Korean limitations on foreign inspection and copying at the principal accruing to foreign firms from open ownership of telecommunications office of the Exchange. All submissions access to the United States market; (c) services are more restrictive than those should refer to File No. SR–Phlx–96–25 the potential size of the foreign market of the United States. Korea firms are and should be submitted by August 22, for telecommunications products and taking advantage of this more favorable 1996. services of United States firms; (d) the access to increase their penetration into potential to increase U.S. exports of the U.S. telecommunications goods and For the Commission, by the Division of services market. Market Regulation, pursuant to delegated telecommunications products and The potential Korean market for authority. services, either directly or through the telecommunications products and Margaret H. McFarland, establishment of a beneficial precedent; services is significant, particularly with Deputy Secretary. and (f) measurable progress being made the recent award of cellular and other [FR Doc. 96–19531 Filed 7–31–96; 8:45 am] to eliminate the objectionable acts, licenses which is estimated to result in policies or practices. BILLING CODE 8010±01±M procurements of $6.5 billion. The total In 1989, the U.S. Trade Representative Korean market for telecommunications identified Korea as a ‘‘priority foreign equipment and services during the country’’ that denied U.S. 1996–2000 period is estimated at $100 OFFICE OF THE UNITED STATES telecommunications products and billion. As U.S. telecommunications TRADE REPRESENTATIVE services providers ‘‘mutually products and services are the most advantageous market opportunities.’’ At competitive in the world, there is Identification of Korea as a Priority that time, many of the specific tremendous potential to increase U.S. Foreign Country in negotiating objectives were focused on exports to the Korean market. Before Telecommunications Trade improving access for competitive U.S. deciding to identify Korea as a priority telecommunications products and foreign country, the United States held AGENCY: Office of the United States services to Korea Telecom(KT), which Trade Representative. intensive consultations with Korea was the monopoly telecommunications beginning in March 1996, to achieve ACTION: Notice of identification. service provider. In 1992, the United improved market access. No progress States and Korea concluded a series of SUMMARY: The Acting United States was made in eliminating Korea’s agreements that improved access to objectionable policies and practices. As Trade Representative (USTR) hereby procurement by KT and addressed identifies Korea as a priority foreign a result, to achieve mutually concerns relating to the standards- advantageous market opportunities as country under section 1374 of the setting process, provision of value- Omnibus Trade and Competitiveness our respective telecommunications added services and the Korean markets have evolved, I have identified Act of 1988 (the Act). Upon such government’s approval of designation, the USTR is required to Korea as a priority foreign country telecommunications equipment. As a under Section 1374. Consequently, the negotiate with the Government of Korea result of those agreements, the USTR for the purpose of entering into a United States will seek to negotiate an determined that Korea had met the agreement with Korea that achieves U.S. bilateral trade agreement which negotiating objectives set out in 1989. addresses specific negotiating objectives objectives. If these negotiations are Pursuant to section 1377 of the Act, the unsuccessful, action will be taken under set by the USTR. If negotiations are USTR has annually reviewed the unsuccessful, the USTR is required to section 1376(b) of the Act. The United effectiveness and operation of the States does not intend to use the full take appropriate action to achieve U.S. telecommunications agreements reached negotiating objectives. negotiating period provided in the Act with Korea and entered into subsequent to make a determination on next steps DATES: The identification of Korea as a agreements to address problems in if it becomes clear that progress is not priority foreign country was made on implementation of them. being made. July 26, 1996. Changes in the Korean Charlene Barshefsky, FOR FURTHER INFORMATION CONTACT: telecommunications market since 1992 Acting U.S. Trade Representative. Sean Murphy (202–395–6813), Office of have created new barriers for U.S. [FR Doc. 96–19591 Filed 7–31–96; 8:45 am] Asia and Pacific Affairs, or Laura B. providers of telecommunications goods BILLING CODE 3190±01±M Sherman (202–395–3150), Office of the and services that are not covered by the General Counsel, Office of the U.S. existing agreements with Korea. KT is 40280 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

DEPARTMENT OF TRANSPORTATION If the notice contains false or DATES: Parties interested in participating misleading information, the exemption in the transmission and software Surface Transportation Board 1 is void ab initio. Petitions to revoke the development of Federal/State returns exemption under 49 U.S.C. 10502(d) under the On-Line Filing Program [STB Finance Docket No. 32991] may be filed at any time. The filing of should contact IRS On-Line Filing a petition to revoke does not Pickens Railway Acquisition Company Analyst, Maxanne Rearich at (202) 283– automatically stay the transaction. (d/b/a Pickens Railway Company) 2Ð 0265 or write the Internal Revenue An original and 10 copies of all Service at the following address on or Acquisition ExemptionÐNorfolk pleadings, referring to STB Finance Southern Railway Company before September 3, 1996: Internal Docket No. 32991, must be filed with Revenue Service, Productivity Pickens Railway Acquisition the Surface Transportation Board, Office Enhancements, Attn: On-Line Filing Company (d/b/a Pickens Railway of the Secretary, Case Control Branch, Analyst, T:S:E:P, Room 5037, 1111 Company) (PKHP), a Class III rail 1201 Constitution Avenue, NW., Constitution Ave., NW., Washington, carrier, has filed a notice of exemption Washington, DC 20423. In addition, a DC 20224. under 49 CFR 1150.41 to acquire by copy of each pleading must be served FOR FURTHER INFORMATION CONTACT: lease and grant of trackage rights from on: Fritz R. Kahn, Esq., Suite 750 West, the Norfolk Southern Railway Company 1100 New York Avenue, NW., The IRS Alternative Ways of Filing On- 19.27 route miles of railroad line. The Washington, DC 20005–3934. Line Filing Program Analyst at 202– lines to be leased extend between Telephone: (202) 371–8037. 283–0210. milepost V–117.77 and milepost V– Decided: July 26, 1996. SUPPLEMENTARY INFORMATION: Tax 116.85, at or near Belton, and between By the Board, David M. Konschnik, returns will be submitted to the IRS milepost V–115.15, at or near Belton, Director, Office of Proceedings. through a third party transmitter or an and milepost V–109.50, at or near Vernon A. Williams, on-line service provider via computer, Honea Path, a total of 6.57 miles, in Secretary. modem, and software. The third party Anderson County, SC. The lines over [FR Doc. 96–19562 Filed 7–31–96; 8:45 am] must be able to reformat the data into which trackage rights are to be granted BILLING CODE 4915±00±P the IRS proprietary format. The third extend between milepost 116.85 and party may provide tax forms or tax milepost V–115.15, at or near Belton, preparation software at a charge to the and between milepost Z–0.00, at or near DEPARTMENT OF THE TREASURY taxpayer (at their option), and may Belton, and milepost Z–11.00, at or near charge for their transmittal services (at Anderson, a total of 12.70 miles, in Internal Revenue Service their option). In order to be accepted Anderson County, SC. PKHP will into the program, representatives must operate the property. On-Line Filing Program submit an application (including The transaction is scheduled to be AGENCY: Internal Revenue Service (IRS), appropriate fingerprint cards) and pass consummated on or after August 1, Treasury. Suitability and Participant Acceptance 1996. ACTION: Notice to seek On-Line Filing Testing. IRS Publication 1345 will be participation by On-Line service provided to explain this process. No 1 The ICC Termination Act of 1995, Pub. L. No. providers, transmitters, and software reimbursement for any costs connected 104–88, 109 Stat. 803, which was enacted on with providing the requested December 29, 1995, and took effect on January 1, developers. 1996, abolished the Interstate Commerce information will be made by the IRS. Commission and transferred certain functions to the SUMMARY: Starting October 30, 1996 This document is for informational Surface Transportation Board (Board). This notice through January 1, 1997, the IRS will purpose and does not constitute an relates to functions that are subject to Board begin acceptance and software testing Invitation For Bid (IFB), Request for jurisdiction pursuant to 49 U.S.C. 10902. their On-Line Filing Program. And, by 2 By letter dated June 25, 1996, applicant’s Proposal (RFP), or Request For representative advised the Board that the name of January 12, 1997, the IRS will have the Quotation (RFQ) and is not to be the railroad which was the subject of the notice of On-Line Filing Program fully construed as a commitment by the IRS. exemption in Pickens Railway Company— operational nationwide. Also, the IRS is Acquisition and Operation Exemption—The expanding its program to accept both Patricia M. Hudak, Pickens Railroad Company, STB Finance Docket Chief, Alternative Ways of Filing Office. No. 32897 (STB served May 1, 1996), should be Federal and State returns nationwide to changed to Pickens Railway Acquisition Company be filed electronically in one [FR Doc. 96–19598 Filed 7–31–96; 8:45 am] (d/b/a Pickens Railway Company). transmission to the IRS. BILLING CODE 4830±01±U 40281

Corrections Federal Register Vol. 61, No. 149

Thursday, August 1, 1996

This section of the FEDERAL REGISTER §133.10 [Corrected] §199.190 [Corrected] contains editorial corrections of previously 3. On page 25304, in the second 10. On page 25328, in the third published Presidential, Rule, Proposed Rule, column, in §133.10(a), in the last line column, in §199.190(b)(1)(vii), ‘‘of’’ the and Notice documents. These corrections are ‘‘lifeboats’’ should read ‘‘liftboats’’. first time it appears should read ‘‘for’’. prepared by the Office of the Federal And on page 25329, in the second Register. Agency prepared corrections are §133.70 [Corrected] column, in §199.190(g)(4), in the fourth issued as signed documents and appear in 4. On page 25305, in the second the appropriate document categories line ‘‘serving’’ should read ‘‘servicing’’. elsewhere in the issue. column, in §133.70(a), in the last line In the same column, in §199.190(i), in ‘‘and’’ should read ‘‘or’’. the first line ‘‘serving’’ should read §133.105 [Corrected] ‘‘servicing’’. DEPARTMENT OF TRANSPORTATION 5. On page 25306, in the third §199.211 [Corrected] column, in §133.105(a)(1)(iii), in the 11. On page 25330, in the third Coast Guard fourth line ‘‘160.151’’ the first time it column, in §199.211, paragraph ‘‘(1)’’ is appears should read ‘‘160.051’’. 46 CFR Parts 70, 108, 133, 168, and 199 correctly designated as paragraph ‘‘(a)’’. §133.120 [Corrected] §199.273 [Corrected] [CGD 84-069] 6. On page 25307, in the third 12. On page 25332, in the first column, in §133.120(b), insert ‘‘must’’ column, in §199.273(b), in the sixth line after ‘‘craft’’. RIN 2115-AB72 ‘‘suites’’ should read ‘‘suits’’. §133.153 [Corrected] Lifesaving Equipment §199.620 [Corrected] 7. On page 25309, in the third 13. On page 25335, in §199.620(j), in Correction column, in §133.153(b), in the third line the table, in item ‘‘2. Bilge Pumps’’, the ‘‘time’’ should read ‘‘times’’. fourth column should read ‘‘1’’. In rule document 96–11777 beginning §199.05 [Corrected] on page 25272 in the issue of Monday, §199.630 [Corrected] 8. On page 25314, in §199.05(b), in May 20, 1996 make the following 14. On page 25336, in §199.630(a), in the address for ‘‘ASTM’’ in the first line corrections: the table, in the first column, the fourth ‘‘1903’’ should read ‘‘19103’’. entry ‘‘19.203’’ should read ‘‘199.203’’, §70.10-3 [Corrected] §199.175 [Corrected] and the fifth entry ‘‘1992.211’’ should 1. On page 25287, in the second 9. On page 25324, in the second read ‘‘199.211’’. On the same page in the column, in §70.10-34(a)(2)(i),in the last column, in §199.175(b)(17), ‘‘hanle’’ third column, in §199.630(f), in the line ‘‘charter’’ should read ‘‘charterer’’. should read ‘‘‘handle’’, and in the same third line ‘‘must’’ should read ‘‘may’’. column paragraph ‘‘(2)’’ is correctly And on page 25337, in the third §108.555 [Corrected] designated as paragraph ‘‘(20)’’. On the column, in §199.630(k)(1), in the last 2. On page 25295, in the second same page in the third column, in line ‘‘199.199.211’’ should read column, in §108.555, in the first line §199.175(b)(21)(i)(B), in the seventh line ‘‘199.211’’. ‘‘Liftboat’’ should read ‘‘Lifeboat’’. insert ‘‘15’’ before ‘‘meters’’. BILLING CODE 1505±01±D federal register August 1,1996 Thursday Entitled ServiceContracting;Notice Proposed Collection;CommentRequest Contracting; ProposedRuleand Federal AcquisitionRegulation;Service 48 CFRPart7,etal. Space Administration National Aeronauticsand Administration General Services Department ofDefense Part II 40283 40284 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules

DEPARTMENT OF DEFENSE B. Regulatory Flexibility Act Solicitation provision, ‘‘Identification of The proposed changes may have a Uncompensated Overtime’’, is being GENERAL SERVICES significant economic impact on a submitted to the Office of Management ADMINISTRATION substantial number of small entities and Budget under 44 U.S.C. 3507(d), et within the meaning of the Regulatory seq. Public comments concerning this NATIONAL AERONAUTICS AND Flexibility Act, 5 U.S.C. 601, et seq., request will be invited through a SPACE ADMINISTRATION because of the burden associated with Federal Register notice appearing in the Notices section of this issue. 48 CFR Parts 7, 15, 16, 37, 46, and 52 identifying uncompensated overtime hours and rates included in proposals List of Subjects in 48 CFR Parts 7, 15, and subcontractor proposals under the RIN 9000±AH14 16, 37, 46, and 52 new provision 52.327–XX, Government procurement. Identification of Uncompensated [FAR Case 95±311] Overtime. An Initial Regulatory Dated: July 25, 1996. Federal Acquisition Regulation; Flexibility Analysis has been prepared Edward C. Loeb, Service Contracting and is summarized as follows: Director, Federal Acquisition Policy Division. The proposed rule amends the Therefore, it is proposed that 48 CFR AGENCIES: Department of Defense (DOD), Federal Acquisition Regulation (FAR) Parts 7, 15, 16, 37, 46, and 52 be General Services Administration (GSA), Parts 7, 15, 16, 37, 46, and 52 to amended as set forth below: and National Aeronautics and Space implement the Office of Federal 1. The authority citation for 48 CFR Administration (NASA). Procurement Policy (OFPP) Policy Parts 7, 15, 16, 37, 46, and 52 continues ACTION: Proposed rule. Letter 91–2, Service Contracting, and to read as follows: makes other revisions to part 37. One of SUMMARY: The Civilian Agency the revisions implements the statutory Authority: 40 U.S.C. 486(c); 10 U.S.C. Acquisition Council and the Defense requirement of section 834, Public Law chapter 137; and 42 U.S.C. 2473(c). Acquisition Regulations Council are 103–510, concerning uncompensated PART 7ÐACQUISITION PLANNING proposing to amend the Federal overtime. Although the statutory Acquisition Regulation to implement requirement applies only to DOD, both 2. Section 7.103 is amended by Office of Federal Procurement Policy GSA and NASA have agreed the adding paragraph (q) to read as follows: (OFPP) Policy Letter 91–2, Service language is appropriate for Contracting (previously considered Governmentwide use. The Regulatory 7.103 Agency-head responsibilities. under withdrawn FAR Case 91–85, Flexibility Act applies only to the * * * * * Services Contracting). The OFPP policy language being added to the FAR (q) Ensuring that knowledge gained letter prescribes policies and procedures concerning uncompensated overtime. from prior acquisitions is used to further for use of performance-based The rule will affect all small businesses refine requirements and acquisition contracting methods. This regulatory that submit offers for services estimated strategies. For services, greater use of action was not subject to Office of at $100,000 or more. Work hours performance-based contracting methods Management and Budget review under provided, not the task to be performed, should occur for follow-on acquisitions. Executive Order 12866, dated are addressed by this rule. 3. Section 7.105 is amended in the September 30, 1993. This action is not The requirements concerning introductory text by adding a sentence a major rule under 5 U.S.C. 804. uncompensated overtime in this at the end of the paragraph; by revising DATES: Comments should be submitted proposed rule are currently in the paragraphs (a)(1), (a)(4), and (b)(6); by on or before September 30, 1996 to be Defense Federal Acquisition Regulation redesignating paragraphs (b)(18) through considered in the formulation of a final (DFARS). When this proposed rule is (b)(20) as (b)(19) through (b)(21) and rule. implemented in the FAR as a final rule, adding a new (b)(18) to read as follows: the DFARS language will be removed. ADDRESSES: Interested parties should 7.105 Contents of written acquisition submit written comments to: General There are no alternatives. plans. The Initial Regulatory Flexibility Services Administration, FAR ** * Acquisition plans for service Secretariat (MVRS), 18th and F Streets, Analysis (IRFA) will be provided to the Chief Counsel for Advocacy for the contracts shall describe the strategies for NW, Room 4037, Washington, DC implementing performance-based 20405. Small Business Administration. A copy of the IRFA may be obtained from the contracting methods or provide Please cite FAR case 95–311 in all rationale for not using those methods correspondence related to this case. FAR Secretariat. Comments are invited. Comments from small entities (see subpart 37.5). FOR FURTHER INFORMATION CONTACT: concerning the affected FAR subpart (a) Acquisition background and Mr. Peter O’Such at (202) 501–1759 in will be considered in accordance with 5 objectives. (1) Statement of need. reference to this FAR case. For general U.S.C. 610. Such comments must be Introduce the plan by a brief statement information, contact the FAR submitted separately and should cite 5 of need. Summarize the technical and Secretariat, Room 4037, GS Building, U.S.C. 601, et seq. (FAR case 95–311), contractual history of the acquisition. Washington, DC 20405 (202) 501–4755. in correspondence. Discuss feasible acquisition alternatives, Please cite FAR case 95–311. the impact of prior acquisitions on those C. Paperwork Reduction Act SUPPLEMENTARY INFORMATION: alternatives, the impact of prior The Paperwork Reduction Act of 1995 acquisitions on those alternatives, and A. Background (Public Law 104–13) is deemed to apply any related in-house effort. This proposed rule amends FAR Parts because the proposed rule contains * * * * * 7, 15, 16, 37, 46, and 52 to establish information collection requirements. (4) Capability or performance. Specify policy for the Government’s acquisition Accordingly, a request for approval of a the required capabilities or performance of services through the use of new information collection requirement characteristics of the supplies or the performance-based contracting methods. concerning the Service Contracting/ performance standards of the services Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40285 being acquired and state how they are (b) Performance incentives may be definition ‘‘Performance-based related to the need. considered in connection with service contracting’’ to read as follows: contracts for performance of objectively * * * * * 37.101 Definitions. (b) * * * measurable tasks when quality of (6) Product or service descriptions. performance is critical and incentives * * * * * Explain the choice of product or service are likely to motivate the contractor. Performance-based contracting means structuring all aspects of an acquisition description types (including * * * * * performance-based contracting (e) Performance tests and/or around the purpose of the work to be descriptions) to be used in the assessments of work performance are performed as opposed to the manner by acquisition. generally essential in order to determine which the work is to be performed or broad and imprecise statements of work. * * * * * the degree of attainment of performance (18) Contract administration. Describe targets. Therefore, the contract must be * * * * * how the contract will be administered. as specified as possible in establishing 10. Section 37.102 is amended by In contracts for services, include how test criteria (such as testing conditions, adding paragraph (d) to read as follows: inspection and acceptance instrumentation precision, and data 37.102 Policy. corresponding to the work statement’s interpretation), and performance * * * * * performance criteria will be enforced. standards (such as the quality levels of (d) The preferred way of acquiring services to be provided). * * * * * services is through use of performance- * * * * * based contracting methods rather than PART 15ÐCONTRACTING BY 7. Section 16.404–1 is amended by on the basis of buying hours. NEGOTIATION revising the introductory text of 11. Section 37.103 is amended by 4. Section 15.611 is amended in paragraph (b)(1), and the last sentence of redesignating paragraphs (d) and (e) and paragraph (c) by revising the second paragraph (b)(2) to read as follows: adding a new paragraph (d) to read as sentence to read as follows: 16.404±1 Cost-plus-incentive-fee follows: contracts. 15.611 Best and final offers. 37.103 Contracting officer responsibility. * * * * * * * * * * * * * * * (b) Application. (1) A cost-plus- (c) * * * If discussions are reopened, (d) Ensure that performance-based incentive-fee contract is appropriate for the contracting officer shall, in contracting methods are used to the services or development and test accordance with agency procedures, maximum extent practicable when programs when (i) * * *. issue an additional request for best and acquiring services. final offers to all offerors still within the * * * * * * * * * * competitive range. (2) * * * This approach may also 12. Section 37.106 is amended by apply to other acquisitions, if the use of adding paragraph (c) to read as follows: * * * * * both cost and technical performance PART 16ÐTYPES OF CONTRACTS incentives is desirable and 37.106 Funding and term of service administratively practical. contracts. 5. Section 16.104 is amended by * * * * * * * * * * adding paragraph (k) to read as follows: (c) Agencies with statutory multiyear PART 37ÐSERVICE CONTRACTING 16. 104 Factors in selecting contract authority shall consider the use of this authority to encourage and promote types. 8. Section 37.000 is revised to read as economical business operations when * * * * * follows: acquiring services. (k) Acquisition history. Contractor risk 13. Sections 37.115 through 37.115–3 usually decreases as the requirement is 37.000 Scope of part. are added to read as follows: repetitively acquired. Also, product This part prescribes general policy descriptions or descriptions of services and procedures for acquiring services by Sec. to be performed can be more clearly contract, and includes but does not limit 37.115 Uncompensated overtime. defined. coverage to only those services to which 37.115–1 Scope. 6. Section 16.402–2 is amended by the Service Contract Act of 1965 applies 37.115–2 General policy. 37.115–3 Solicitation provision. revising the heading and paragraph (a); (see 37.107). This part requires the use by redesignating paragraphs (b) through of performance-based contracting to the * * * * * (g) as (c) through (h) and adding a new maximum extent practicable and 37.115 Uncompensated overtime. paragraph (b); and by revising the newly prescribes policies and procedures for designated paragraph (e) to read as use of performance-based contracting 37.115±1 Scope. follows: methods; distinguishes between This section implements Section 834 contracts for personal services and those of Public Law 101–510 (10 U.S.C. 2331). 16.402±2 Performance incentives. for nonpersonal services; and includes (a) Performance incentives may be special conditions to be observed in 37.115±2 General policy. considered in connection with specific acquiring advisory and assistance (a) When professional or technical product characteristics (e.g., a missile services. Dismantling, demolition, or services are acquired on the basis of the range, an aircraft speed, an engine removal of improvements is covered in number of hours to be provided, rather thrust, or a vehicle maneuverability) or subpart 37.3. This part does not regulate than on the task to be performed, the other specific elements of the the obtaining of services by direct solicitation shall require offerors to contractor’s performance. These appointment, under normal civil service identify uncompensated overtime hours incentives should be designed to relate employment procedures, or by and the uncompensated overtime rate profit or fee to results achieved by the cooperative agreement. for direct charge Fair Labor Standards contractor, compared with specified 9. Section 37.101 is amended by Act—exempt personnel included in targets. adding, in alphabetical order, the their proposals and subcontractor 40286 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules proposals. This includes 37.502 Elements of performance-based the maximum extent practicable, uncompensated overtime hours that are contracting. performance incentives, either positive in indirect cost pools for personnel 37.502±1 Statements of work. or negative or both, shall be whose regular hours are normally incorporated into the contract to Generally, statements or work shall charged direct. encourage contractors to increase define requirement in clear, concise efficiency and maximize performance (b) Use of uncompensated overtime is language identifying specific work to be (see subpart 16.4). These incentives not encouraged. accomplished. Statements of work must shall correspond to the specific be individually tailored to consider the 37.115±3 Solicitation provision. period of performance, deliverable performance standards in the quality assurance surveillance plan and shall be Use the provision at 52.237–XX, items, if any, and the desired degree of capable of being objectively measured. Identification of Uncompensated performance flexibility (see 11.105). Overtime, in all solicitations valued at However, in the case of task order 37.502±5 Follow-on and repetitive $100,000 or more, for professional or contracts, the statement of work need requirements. technical services to be acquired on the only define the scope of the overall When acquiring services which basis of the number of hours to be contract (see 16.504(a)(4)(iii)). Each task previously have been provided by provided. issued under a task order contract shall contract, agencies shall rely on the 14. Subpart 37.5, consisting of clearly describe all services to be performed (see 16.505(a)(2)). When experience gained from the prior sections 37.500 through 37.502–5 is contract to incorporate performance- added to read as follows: preparing statements or work, agencies shall, to the maximum extent based contracting methods to the maximum extent practicable. Subpart 37.5ÐPerformance-Based practicable— Contracting (a) Describe the work in terms of PART 46ÐQUALITY ASSURANCE ‘‘what’’ is to be the required output Sec. rather than either ‘‘how’’ the work is to 15. Section 46.103 is amended by 37.500 Scope of subpart. be accomplished or the number of hours revising paragraph (a) to read as follows: 37.501 General. to be provided; 37.502 Elements of performance-based (b) Enable assessment of work 46.103 Contracting office responsibilities. contracting. performance against measurable * * * * * 37.502–1 Statements or work. performance standards; (a) Receiving from the activity 37.502–2 Quality assurance. (c) Rely on the use of measurable responsible for technical requirements 37.502–3 Selection procedures. performance standards and financial any specifications for inspection, 37.502–4 Contract type. incentives in a competitive environment 37.502–5 Follow-on and repetitive testing, and other contract quality to encourage competitors to develop and requirements. requirements essential to ensure the institute innovative and cost effective integrity of the supplies or services (the 37.500 Scope of subpart. methods of performing the work; and (d) Avoid combining requirements activity responsible for technical This subpart prescribes policies and into a single acquisition that is too requirements is responsible for procedures for use of performance-based broad for the agency or a prospective prescribing contract quality contracting methods. It implements contractor to manage effectively. requirements, such as inspection and OFPP Policy Letter 91–2, Service testing requirements or, for service Contracting. 37.502±2 Quality assurance. contracts, a quality assurance Agencies shall develop quality surveillance plan); 37.501 General. assurance surveillance plans when * * * * * Performance-based contracting acquiring services (see subpart 46.2). 16. Section 46.401 is amended by methods provide the means to ensure These plans shall recognize the revising paragraph (a) to read as follows: that required performance quality levels responsibility of the contractor (see are achieved and that with respect to 46.105) to carry out its quality control 46.401 General. fixed price contracts, payment is made obligations and shall contain (a) Government contract quality only for services which meet contract measurable inspection and acceptance assurance shall be performed at such standards. Performance-based criteria corresponding to the times (including any stage of contracts— performance standards contained in the manufacture or performance of services) (a) Describe the requirements in terms statement of work. The quality and places (including subcontractors’ of results required rather than the assurance plans shall focus on the level plants) as may be necessary to methods of performance of the work; of performance required by the determine that the supplies or services statement of work, rather than the (b) Use measurable (i.e., terms of conform to contract requirements. methodology used by the contractor to Quality assurance surveillance plans quality, timeliness, quantity, etc.) achieve that level of performance. performance and quality assurance should be prepared in conjunction with surveillance plans (see 46.103(a), and 37.502±3 Selection procedures. the preparation of the statement of 46.401(a)); Agencies shall use competitive work. The plans should specify— (c) Specify procedures for reduction negotiations where appropriate to (1) All work requiring surveillance, of award fee or for reductions to the ensure selection of services that offer and price of a fixed-price contract when the best value to the Government, cost (2) The method of surveillance. services are not performed or do not and other factors considered. * * * * * meet contract requirements (see 37.502±4 Contract type. 17. Section 46.407 is amended by 46.407(f)); and Contract types most likely to motivate revising the introductory paragraph (d) Include performance incentives contractors to perform at optimal levels (c)(1), and adding a new second and where appropriate. shall be chosen (see subpart 16.1). To third sentence to (f) to read as follows: Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Proposed Rules 40287

46.407 Noncomforming supplies or PART 52ÐSOLICITATION PROVISIONS of $17.78 per hour ($20.00×40 divided by 45 services. AND CONTRACT CLAUSES = $17.78). * * * * * (b) For any hours proposed against which 18. Section 52.237–XX is added to an uncompensated overtime rate is applied, (c)(1) In situations not covered by read as follows: the offeror shall identity in its proposal the paragraph (b) of this section, the hours in excess of an average of 40 hours per contracting officer shall ordinarily reject 52.237±XX Identification of week, by labor category at the same level of supplies or services when the uncompensated overtime. detail as compensated hours, and the nonconformance is critical or major. As prescribed in 37.115–3, insert the uncompensated overtime rate per hour, following provision: whether at the prime or subcontract level. However, there may be circumstances This includes uncompensated overtime (e.g., reasons of economy or urgency) Identification of Uncompensated Overtime hours that are in indirect cost pools for when acceptance of such supplies or (Date) personnel whose regular hours are normally services is determined by the (a) Definitions. As used in this provision— charged direct. contracting officer to be in the Uncompensated overtime means the hours (c) The offeror’s accounting practices used Government’s interest. The contracting worked in excess of an average of 40 hours to estimate uncompensated overtime must be per week by direct charge employees who are consistent with its cost accounting practices officer shall make this determination, exempt from the Fair Labor Standards Act, used to accumulate and report based upon— without additional compensation. uncompensated overtime hours. * * * * * Compensated personal absences such as (d) Proposals which include unrealistically holidays, vacations, and sick leave shall be low labor rates, or which do not otherwise (f) * * * For services, the contracting included in the normal work week for demonstrate cost realism, will be considered officer can consider identifying the purposes of computing uncompensated in a risk assessment and evaluated for award value of the individual work overtime hours. in accordance with that assessment. requirements or tasks (subdivisions) Uncompensated overtime rate is the rate (e) The offeror shall include a copy of its which may be subject to price or fee which results from multiplying the hourly policy addressing uncompensated overtime reduction. This value may be used to rate for a 40 hour work week by 40, and then with its proposals. determine an equitable adjustment for dividing by the proposed hours per week. For (End of provision) example, 45 hours proposed on a 40 hour nonconforming services. * ** work week basis at $20 per hour would be [FR Doc. 96–19486 Filed 7–31–96; 8:45 am] * * * * * converted to an uncompensated overtime rate BILLING CODE 6820±EP±M 40288 Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Notices

DEPARTMENT OF DEFENSE DATES: Comment Due Date: September collection of information, including 30, 1996. suggestions for reducing this burden, to GENERAL SERVICES ADDRESSES: Send comments to Mr. Peter General Services Administration, FAR ADMINISTRATION Weiss, FAR Desk Officer, OMB, Room Secretariat, 18th & F Streets, NW, Room 10236, NEOB, Washington, DC 20503. 4037, Washington, DC 20405 and to the NATIONAL AERONAUTICS AND NW, Room 4037, Washington, DC 20405 FAR Desk Officer. SPACE ADMINISTRATION and a copy to the FAR Secretariat, 18th The annual reporting burden is [FAR Case 95±311] & F Streets, NW, Room 4037, estimated as follows: Respondents, Washington, DC 20405 at the address 19,906; responses per respondent, 1; Proposed Collection; Comment listed below. total annual responses, 19,906; Request Entitled Service Contracting FOR FURTHER INFORMATION CONTACT: preparation hours per response, 30 Peter O’Such, Office of Federal minutes; and total response burden AGENCIES: Department of Defense (DOD), Acquisition Policy, GSA (202) 501– General Services Administration (GSA), hours, 9,953. 1759. and National Aeronautics and Space Obtaining Copies of Proposals Administration (NASA). SUPPLEMENTARY INFORMATION: Requester may obtain copies of the ACTION: Notice of new request for OMB Annual Reporting Burden clearance. OMB application or justification from Public reporting burden for this the FAR Secretariat. Please cite OMB SUMMARY: Under the provisions of the collection of information is estimated to clearance request regarding service Paperwork Reduction Act of 1995 (44 average 30 minutes per response, contracting and FAR Case 95–311 in all U.S.C. Chapter 35), the Federal including the time for reviewing correspondence. Acquisition Regulation (FAR) instructions, searching existing data Dated: July 26, 1996. Secretariat has submitted to the Office sources, gathering and maintaining the of Management and Budget (OMB) a data needed, and completing and Sharon A. Kiser, request to review and approve a new reviewing the collection of information. FAR Secretariat. information collection requirement Send comments regarding this burden [FR Doc. 96–19485 Filed 7–31–96; 8:45 am] concerning service contracting. estimate or any other aspect of this BILLING CODE 6820±EP±P i

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REMINDERS Radio stations; table of Inspection services for Transportation conformity The items in this list were assignments: commodities other than rule; flexibility and editorially compiled as an aid Alabama et al.; published 8- rice; comments due by 8- streamlining to Federal Register users. 1-96 7-96; published 7-8-96 Transportation conformity Inclusion or exclusion from INTERIOR DEPARTMENT COMMERCE DEPARTMENT pilot program; participation; comments this list has no legal Fish and Wildlife Service National Oceanic and due by 8-8-96; significance. Alaska National Interest Lands Atmospheric Administration published 7-9-96 Conservation Act; Title VIII Fishery conservation and Air quality implementation implementation (subsistence management: RULES GOING INTO priority); published 7-30-96 plans; approval and EFFECT TODAY Gulf of Alaska groundfish; promulgation; various PENSION BENEFIT comments due by 8-6-96; States: GUARANTY CORPORATION published 7-26-96 Washington; comments due AGRICULTURE Single-employer plans: Gulf of Mexico reef fish; by 8-8-96; published 7-9- DEPARTMENT Allocation of assets-- comments due by 8-8-96; 96 Agricultural Marketing Benefits valuation; interest published 6-24-96 Air quality implementation Service rates; published 7-15-96 Limited access management plans; √A√approval and Florida grapefruit, oranges, TRANSPORTATION of Federal fisheries in and promulgation; various tangelos, and tangerines; DEPARTMENT off of Alaska; comments States; air quality planning grade standards; published Federal Aviation due by 8-6-96; published purposes; designation of 5-8-96 Administration 6-12-96 areas: Onions grown in-- Air carrier certification and CORPORATION FOR Colorado; comments due by Idaho and Oregon; operations: NATIONAL AND 8-8-96; published 7-9-96 published 7-31-96 Aircraft flight simulator use COMMUNITY SERVICE Clean Air Act: Oranges and grapefruit grown in pilot training, testing, Agency information collection Acid rain provisions-- in Texas; published 7-22-96 and checking and at activities: Sulfur dioxide allowance Oranges, grapefruit, training centers; published Proposed collection; auction and electronic tangerines, and tangelos 7-2-96 comment request; allowance transfer; grown in Florida; published Airworthiness directives: comments due by 8-9-96; comments due by 8-5- 7-24-96 Pratt & Whitney; published published 6-10-96 96; published 6-6-96 Hazardous waste: Potatoes (Irish) grown in-- 7-12-96 ENERGY DEPARTMENT TREASURY DEPARTMENT Identification and listing-- Idaho and Oregon; National Environmental Policy Exclusions; comments due published 7-29-96 Currency and foreign Act; implementation; transactions; financial by 8-9-96; published 6- Prunes (dried) produced in comments due by 8-8-96; 25-96 California; published 7-31-96 reporting and recordkeeping published 7-9-96 requirements: Exclusions; comments due ENERGY DEPARTMENT by 8-9-96; published 6- AGRICULTURE Bank Secrecy Act; 25-96 DEPARTMENT implementation-- Energy Efficiency and Pesticides; tolerances in food, Forest Service Casinos and other gaming Renewable Energy Office animal feeds, and raw Alaska National Interest Lands establishments operated Energy conservation: agricultural commodities: Conservation Act; Title VIII on Indian lands; State energy program; implementation (subsistence published 2-23-96 consolidation of State Maleic anhydride- priority); published 7-30-96 Energy Conservation diisobutylene copolymer, sodium salt; comments COMMERCE DEPARTMENT COMMENTS DUE NEXT Program (SECP) and Institutional Conservation due by 8-9-96; published National Oceanic and WEEK 7-10-96 Atmospheric Administration Program (ICP); Federal regulatory reform; Polyvinylpyrrolidone Fishery conservation and AGRICULTURE comments due by 8-7-96; butylated polymer; management: DEPARTMENT published 7-8-96 comments due by 8-9-96; Alaska scallop; published 7- Agricultural Marketing published 7-10-96 ENVIRONMENTAL 23-96 Service FEDERAL PROTECTION AGENCY Peanuts, domestically COMMUNICATIONS ENVIRONMENTAL Air pollutants, hazardous; PROTECTION AGENCY produced; comments due by COMMISSION 8-7-96; published 7-8-96 national emission standards: Radio stations; table of Superfund program: AGRICULTURE State programs approval assignments: National oil and hazardous DEPARTMENT and Federal authorities Arkansas; comments due by substances contingency delegation; comments due Food Safety and Inspection 8-5-96; published 6-19-96 plan-- by 8-9-96; published 7-10- Service California; comments due by National priorities list 96 Meat and poultry inspection: 8-5-96; published 6-19-96 update; published 7-26- Air pollution; standards of Public Health Hazard Mississippi; comments due 96 performance for new by 8-5-96; published 6-19- Analysis Board; bone stationary sources: FEDERAL particles and foreign 96 COMMUNICATIONS material in meat and Medical waste incinerators; FEDERAL TRADE COMMISSION poultry products; report comments due by 8-8-96; COMMISSION Practice and procedure: availability; comments due published 6-20-96 Trade regulation rules: Regulatory fees (1996 FY); by 8-5-96; published 7-5- Air programs: Food retailing and gasoline assessment and 96 Outer Continental Shelf industries; games of collection; published 8-1- AGRICULTURE regulations-- chance; comments due by 96 DEPARTMENT California; comments due 8-6-96; published 6-7-96 Radio services, special: Grain Inspection, Packers by 8-8-96; published 7- INTERIOR DEPARTMENT Terrestrial microwave fixed and Stockyards 9-96 Indian Affairs Bureau services; published 5-28- Administration Air quality implementation Indian Gaming Regulatory Act; 96 Fees: plans: implementation: Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Reader Aids iii

Tribal revenue allocation Federal regulatory review; comments due by 8-5-96; Duty-free stores; use of plans; comments due by comments due by 8-5-96; published 6-6-96 records generated and 8-6-96; published 6-7-96 published 7-5-96 TRANSPORTATION maintained by warehouse Land and water: NAVAJO AND HOPI INDIAN DEPARTMENT proprietors and importers Tribal electric power utilities; RELOCATION OFFICE Federal Aviation instead of specially comments due by 8-6-96; Archaeological resources Administration prepared Customs forms; comments due by 8-5-96; published 6-7-96 protection: Airworthiness directives: published 6-6-96 INTERIOR DEPARTMENT Lands developed for Aviat Aircraft, Inc.; Minerals Management resettlement purposes; comments due by 8-9-96; Merchandise; examination, Service comments due by 8-7-96; published 6-6-96 sampling, and testing: published 7-8-96 Outer Continental Shelf; oil, Boeing; comments due by Detention procedures for gas, and sulphur operations: NUCLEAR REGULATORY 8-5-96; published 6-26-96 merchandise undergoing COMMISSION CFM International; Leases; drilling extended examination; comments due by 8-5-96; requirements; comments Environmental protection; comments due by 8-5-96; published 6-4-96 due by 8-5-96; published domestic licensing and published 6-5-96 6-5-96 related regulatory functions: McDonnell Douglas; comments due by 8-5-96; TREASURY DEPARTMENT Unitization; model Nuclear power plant published 6-6-96 agreements; comments operating licenses; Fiscal Service environmental review for Pratt & Whitney; comments due by 8-5-96; published Financial management 6-5-96 renewal; comments due due by 8-5-96; published by 8-5-96; published 7-18- 6-4-96 services: INTERIOR DEPARTMENT 96 Textron Lycoming; Depositaries and financial National Park Service Fitness-for-duty programs: comments due by 8-6-96; agents of Federal Special regulations: Requirements modifications; published 6-7-96 Government; comments Big Thicket National comments due by 8-7-96; Class E airspace; comments due by 8-5-96; published Preserve, TX; moored published 5-9-96 due by 8-5-96; published 7- 6-21-96 houseboats; comments STATE DEPARTMENT 3-96 due by 8-5-96; published Visas; nonimmigrant TRANSPORTATION 6-5-96 documentation: DEPARTMENT LIST OF PUBLIC LAWS INTERIOR DEPARTMENT Visa waiver pilot program; National Highway Traffic Surface Mining Reclamation Argentina; comments due Safety Administration This is a list of public bills and Enforcement Office by 8-7-96; published 7-8- Motor vehicle safety from the 104th Congress Permanent program and 96 standards: which have become Federal abandoned mine land TRANSPORTATION Power-operatated window, laws. It may be used in reclamation plan DEPARTMENT partition, and roof panel conjunction with ``P L U S'' systems; comments due submissions: Coast Guard (Public Laws Update Service) by 8-5-96; published 6-4- on 202±523±6641. The text of Virginia; comments due by Drawbridge operations: 8-8-96; published 7-24-96 96 laws is not published in the California; comments due by Rollover prevention; Federal Register but may be JUSTICE DEPARTMENT 8-7-96; published 7-8-96 customer information-- ordered in individual pamphlet Immigration and Electrical engineering: Stability label for light form (referred to as ``slip Naturalization Service Merchant vessels; electrical vehicles; comments due laws'') from the Immigration: engineering requirements; by 8-5-96; published 6- Superintendent of Documents, Screening requirements of comments due by 8-5-96; 5-96 U.S. Government Printing carriers; comments due published 6-4-96 National Traffic and Motor Office, Washington, DC 20402 by 8-9-96; published 6-10- TRANSPORTATION Vehicle Safety Act; fee (phone, 202±512±2470). 96 schedule; comments due by DEPARTMENT H.R. 2337/P.L. 104±168 NATIONAL LABOR Implementation of Equal 8-8-96; published 6-24-96 RELATIONS BOARD Access to Justice Act: TREASURY DEPARTMENT Taxpayer Bill of Rights 2 (July 30, 1996; 110 Stat. 1452) Summary judgment motions Agency proceedings; Customs Service and advisory opinions; Federal regulatory review; Customs bonds: Last List July 31, 1996 iv Federal Register / Vol. 61, No. 149 / Thursday, August 1, 1996 / Reader Aids

TABLE OF EFFECTIVE DATES AND TIME PERIODSÐAUGUST 1996

This table is used by the Office of the dates, the day after publication is A new table will be published in the Federal Register to compute certain counted as the first day. first issue of each month. dates, such as effective dates and When a date falls on a weekend or comment deadlines, which appear in holiday, the next Federal business day agency documents. In computing these is used. (See 1 CFR 18.17)

DATE OF FR 15 DAYS AFTER 30 DAYS AFTER 45 DAYS AFTER 60 DAYS AFTER 90 DAYS AFTER PUBLICATION PUBLICATION PUBLICATION PUBLICATION PUBLICATION PUBLICATION

August 1 August 16 September 3 September 16 September 30 October 30

August 2 August 19 September 3 September 16 October 1 October 31

August 5 August 20 September 4 September 19 October 4 November 4

August 6 August 21 September 5 September 20 October 7 November 4

August 7 August 22 September 6 September 23 October 7 November 5

August 8 August 23 September 9 September 23 October 7 November 6

August 9 August 26 September 9 September 23 October 8 November 7

August 12 August 27 September 11 September 26 October 11 November 12

August 13 August 28 September 12 September 27 October 15 November 12

August 14 August 29 September 13 September 30 October 15 November 12

August 15 August 30 September 16 September 30 October 15 November 13

August 16 September 3 September 16 September 30 October 15 November 14

August 19 September 3 September 18 October 3 October 18 November 18

August 20 September 4 September 19 October 4 October 21 November 18

August 21 September 5 September 20 October 7 October 21 November 19

August 22 September 6 September 23 October 7 October 21 November 20

August 23 September 9 September 23 October 7 October 22 November 21

August 26 September 10 September 25 October 10 October 25 November 25

August 27 September 11 September 26 October 11 October 28 November 25

August 28 September 12 September 27 October 15 October 28 November 26

August 29 September 13 September 30 October 15 October 28 November 27

August 30 September 16 September 30 October 15 October 29 November 29