License to Trade: Commerce Department Authority to Allow Condensate Exports

Prepared by Minority Staff for Ranking Member Lisa Murkowski U.S. Senate Committee on Energy & Natural Resources April 2, 2014

Introduction

Rising levels of oil and gas production in the United States have been accompanied by a surge in domestic production of condensate. Condensate – a very light hydrocarbon – differs chemically from crude oil, but faces a similar challenge with respect to U.S. refining capacity.1

Regulations governing condensate exports are convoluted.2 Condensate may be exported as natural gasoline if it is produced at a gas processing plant, but not if it is derived at the wellhead. Condensate exports are restricted by the 30-year-old definition of “crude oil” delineated in the Bureau of Industry and Security’s Short Supply Controls, which includes so-called “lease condensate” in the general prohibition. The Congressional Research Service described this further:

“While ‘lease condensate’ is included in the BIS crude oil definition, there is a potential contradiction within the definition. BIS defines crude oil as hydrocarbons that existed in liquid phase underground. However, condensate is generally in a gas phase underground and condenses to a liquid at atmospheric conditions. This apparent contradiction, along with other considerations, raises questions about the applicability of export restrictions to condensate.”3

The Department of Commerce retains the authority to allow condensate exports by modernizing its regulations, as it has done repeatedly since the 1970s. For example, the definition of crude oil could simply be updated, aligning the regulatory architecture with the new supply mix made possible by technological advancements.

This report summarizes a sample of petroleum-related modifications the Department of Commerce has made to the Short Supply Controls as a result of changing market dynamics and other factors. Relevant documents are reprinted herein for use by the public.

1 Bakken and Brent, for example, are light crudes that hover around 40° API gravity, while Californian and Mexican heavy crudes are typically closer to 20° API gravity. The distillation process might yield 10-20% naphtha for these grades of crudes. Emirati, Algerian, or Texan condensate, in contrast, can range higher than 60° AP gravity and yield upwards of 70% naphtha. 2 Sarah O. Ladislaw and Michelle Melton, “The Molecule Laws: History and Future of the Crude Export Ban,” Center for Strategic & International Studies (January 2, 2014): http://csis.org/publication/molecule-laws-history-and- future-crude-export-ban. 3 Phillip Brown, et al, “U.S. Crude Oil Export Policy: Background and Considerations,” Congressional Research Service (March 26, 2014 – R432442); p. 12. Defining Crude Oil and Petroleum Products

Quantitative restrictions on finished petroleum product exports were eliminated in October 1981. The general prohibition on crude oil exports, however, continued to be applied to petroleum that was only “partly refined” (i.e., petroleum that would be exported to a foreign nation for further refining), which would fail an “end-use” test.

In January 1985, the Office of Industrial Resources Administration issued an advance notice of proposed rulemaking. The notice stated:

“This ‘end use’ test helps enforce the stringent, Congressionally mandated export controls on crude oil. It also results in automatically precluding the export of many petroleum products while allowing the export of the same products if they are to be used without further refining.”

The notice further stated that the Commerce Department was considering eliminating the end-use test and defining “refined petroleum products” to include a “distillation test.” The notice stated:

“Refined petroleum products would be defined as those products that have been processed from crude oil through a ‘distillation process’ in the United States. This ‘distillation process’ must yield at least two distinct refined petroleum products….Petroleum that has not been distilled in the United States in this manner would be treated as crude oil.”

Legislative events overtook the rulemaking process in July 1985, with the passage of the Export Administration Amendments Act. This law removed the need for validated export licenses for petroleum product exports.

In October, the Commerce Department published an interim rule updating the Short Supply Controls to include a general license for product exports and a definition of crude oil that remains in effect today:

“A mixture of hydrocarbons that existed in liquid phase in underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities and which has not been processed through a crude oil distillation tower. Included are reconstituted crude petroleum, and lease condensate and liquid hydrocarbons produced from tar sands, gilsonite, and oil shale. Drip gases are also included, but topped crude oil, residual oil, and other finished and unfinished oils are excluded.” [emphasis added]

These documents are available in Appendix A.

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Expanding Butane Exports

While the export controls of the 1970s did not prohibit petroleum product exports, they were subjected to quantitative restrictions. This led to market inefficiencies that the federal government was called upon to address as they arose.

In December 1978, the Office of Export Administration published a final rule that created a “supplementary quota” for exports of butane. The rule stated:

“In recent weeks, citing a build up of surplus stocks of butane in the United States, a number of companies have filed applications to export this commodity outside of quota limitations. The Department has consulted with the Department of Energy as to the butane supply and demand situation and the Department of Energy has advised this Department that, under current supply conditions in addition to historical quota exports, the export of 1,250,000 barrels of butane from the U.S. Gulf Coast during the period of October 1978 through March 1979 would not impact the supply of butane to domestic consumers.” [emphasis added]

The Short Supply Controls were thereby “temporarily relaxed.” Two minor corrections were also published. These documents are available in Appendix B.

Expanding Specialty Naphtha Exports

At the request of the Commission of European Communities, the Department of Commerce launched a review of quantitative restrictions on the export of certain naphtha products in March 1981. The following June, the Department eliminated validated licensing requirements for small levels of certain petroleum products, including specialty naphthas, as part of a wide-ranging review “with a view toward simplifying and streamlining its procedures wherever practicable.”

In July, the Department issued a final rule stating:

“In light of these comments, in an effort to be responsive to the desires of the European Communities, and after consultation with other interested agencies, the Department is removing all quantitative export limitations on the specific naphthas which were subject to the public comment. This decision is in keeping with the Administration's policy of removing burdensome export regulations when no longer warranted. The removal of quantitative restraints on the export of low-octane, high- paraffinic (65% or higher) naphthas is made effective immediately….”

The rule also stated:

“The Department has further determined that this action will not adversely affect domestic energy supplies, nor will foreign demand have a serious inflationary impact. This action is considered to be in the national interest by expanding markets for the domestic industry. Should this action have an adverse effect on

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available domestic energy supply, either directly or indirectly, exporters are placed on notice that this liberalization action can be swiftly reversed.” [emphasis added]

These documents are available in Appendix C.

Modifying the List of Prohibited Exports from NPR

The Naval Petroleum Reserves Product Act of 1976 prohibited the export of hydrocarbons from the reserves it created. In January 1985, the Commerce Department solicited comments on the list of commodities that were restricted. The following May, it published a final rule that removed several “petroleum-based chemical commodities” from the list:

"We have determined that these commodities are highly refined down-stream products of the crude petroleum from which they are produced. It is therefore highly unlikely that removal of NPRPA export restrictions on these commodities would significantly affect the exploitation of Naval Reserves petroleum as a source of supply for export.”

The commodities removed from the relevant section of the Short Supply Controls included benzene, ethylene, propylene, linear alpha olefins, and several others. These documents are available in Appendix D.

Allowing Exports of Linear Alpha Olefins

In June 1984, the Commerce Department published an advance notice of proposed rulemaking requesting comments on a proposal to remove export restrictions on linear alpha olefins from the Short Supply Controls. These chemical compounds are used by the petrochemical industry. An interim rule followed in January 1985, stating:

“The International Trade Administration, in consultation with other U.S. agencies, has determined that commodities that are not likely to be used as an energy source should be removed from the list of refined petroleum products that require a validated license for export. As a result, linear alpha olefins and comparable commodities described as acyclic organic compounds are [now permitted]…unless they are derived from petroleum produced from a Naval Petroleum Reserve.”

The final rule was published in May 1985, the same day as the NPR rulemaking described above. The finalization of both rules effectively liberalized trade in linear alpha olefins. These documents are available in Appendix E.

Exporting Residual Fuel Oil from California

In 1978, the Department of Energy announced that it was concerned about the state of the oil industry on the West Coast. Californian producers were under pressure from both Alaskan North Slope crude and from production increases (required by law) at the Elk Hills Naval Petroleum Reserve. In addition to the upstream situation, Californian refiners were

4 optimized for heavy sour crudes, which yielded large volumes of residual fuel oil that was difficult to market in California for a variety of reasons.

Citing shut-in production, the Department of Energy recommended that the Commerce Department institute a temporary export program with certain restrictions. The final rule from the Commerce Department in 1978 summarized the argument:

“The inability of California refiners to market all their residual fuel oil output has resulted in a reduction of total crude oil runs, thus contributing to the decline in California crude oil production. The reduction in crude oil runs has also had the effect of depleting inventories of lighter products such as gasoline, thus requiring expensive movements of gasoline into California from the gulf and east coasts.” [emphasis added]

The rule outlined the Commerce Department’s decision to support this program:

“After studying the Department of Energy recommendations and supporting rationale, and after consultation with other appropriate Federal agencies, the Department of Commerce has concluded that, under current conditions, the recommended temporary program is in the national interest.”

The Short Supply Controls were thereby amended, detailing a number of conditions that exporters would be required to meet and further information about the process. Relevant documents are available in Appendix F.

Licensing of Petroleum Coke Exports

In December 1977, the Commerce Department issued a final rule that eliminated the need for exporters of petroleum coke to provide documentation that their product would be consumed for non-energy purposes. The rule identified three reasons for taking this action:

“(1) There is a current buildup of stock levels of petroleum coke in the United States. (2) Environmental restrictions in many U.S. jurisdictions prevent the burning of petroleum coke as a fuel because of its high sulfur dioxide emissions. And (3) Under current market conditions, it is not economical to manufacture petroleum coke specifically for export in lieu of other liquid petroleum products, primarily residual fuel oil.”

In February 1979, the Commerce Department announced that it was considering eliminating the validated licensing requirement for petroleum coke exports. The previous decision had only eliminated the end-use test. By creating a general license instead, the Department would increase the ease with which petroleum coke could be exported.

The notice identified three reasons for taking this action:

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“(1) Such action would not contribute to a decrease in domestic energy supplies as the use of petroleum coke as a fuel within the United States is limited due to environmental restrictions; (2) it is in the national interest to encourage the expansion of coking facilities in domestic refineries so as to increase their capability to produce lighter petroleum products from heavy domestic crude oils, such as those produced in Alaska and California; and (3) petroleum coke stocks in the United States appear to exceed domestic needs, and refiners should thus not be subject to restrictions which could inhibit their ability to market this product abroad.” [emphasis added]

The final rule, published in June 1979, determined that the revision would be “in the national interest” and revised the Short Supply Controls accordingly. These documents are available in Appendix G.

Conclusion

The Commerce Department has often modified its regulations without either congressional intervention or presidential finding, during both Republican and Democratic administrations. In so doing, the Department has cited inefficiencies, warned of risks to production and supply, encouraged access to international markets, and described anomalies that require special action. The ban on condensate exports, based on a definition of crude oil inserted into the regulations nearly 30 years ago, is just such a case where the Commerce Department can act on its own to resolve a challenge unforeseen by regulators and legislators alike.

Acknowledgments

Staff wish to thank the Senate Library for its assistance with this report.

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APPENDIX A: Defining Crude Oil and Petroleum Products

2064 Federal Register / Vol. 50, No. 10 / Tuesday, January 15, 1985 / Proposed Rules seven airplanes, 50% of the blowout Discussion Aircraft Certification Office, FAA, Northwest panels were either taped in place, Mountain Region. missing, or had substitute panels taped Opeators of Boeing Model 757 C. Special flight permits may be issued in in place. Missing blowout panels reduce airplanes have reported that blowout accordance with FAR 21.197 and 21.199 to fire containment and fire suppression panels in the forward and aft cargo operate airplanes to a base for the capability of the cargo compartment. compartments have become dislodged. accomplishment of replacements required by There are 4 panels in each airplane. this AD. DATE: Comments must be received on or During a survey of seven airplanes, 50% All persons affected by this directive before February 2, 1985. of the panels were taped in place, who have not already received the ADDRESSES: Send comments to the FAA, missing comple-tely, or had substitute above specified service bulletins from Northwest Mountain Region, 17900 panels taped in place. The blowout the manufacturer may obtain copies Pacific Highway South, C-68966, Seattle, panels are designed to blow out in case upon request to the Boeing Commercial Washington 98168. of a decompression, and serve to Airplane Company, P.O. Box 3707, The applicable service bulletin may minimize the differential pressure of Seattle, Washington 98124, or they may be obtained from the Boeing floor structure. Missing blowout panels be examined at the FAA. Northwest Commercial Airplane Company, P.O. reduce fire containment capability of the Mountain Region, 9010 East Marginal Box 3707, Seattle Washington 98124. compartment liners, and affect the fire Way South, Seattle, Washington. This information may also be examined suppression capability of the cargo compartment fire protection system. (Secs. 313(a), 314(a), and 601 through 610, and at the Seattle Aircraft Certification 1102 of the Federal Aviation A(t of 1958 (49 Office, FAA, Northwest Mountain Since all Model 757 airplanes are U.S.C. 1354(a), 1421 through 1430, and 1502); Region, 9010 East Marginal Way South. equipped with cargo compartment liners 49 U.S.C. 106(g) (Revised Pub. L. 97-449, Seattle, Washington. which are subject to becoming January 12, 1983): and 14 CFR 11.85) dislodged, an airworthiness directive is Note: For the reasons discussed earlier in FOR FURTHER INFORMATION CONTACT: being proposed which would require the preamble, the FAA ha- determined that Mr. Robert C. McCracken, Systems & replacement of the existing panels with this document (1) involves a proposed Equipment Branch, ANM-130S, Seattle new panels which employ improved regulation which is not major under Aircraft Certification Office; telephone retention methods. Executive Order 12291 and (2) is not a (206) 431-2947. Mailing address: FAA, It is estimated that 15 airplanes of U.S. significant rule pursuant to the Department of Northwest Mountain Region, 17900 registry are affected by this AD; that it Tiansportation Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); Pacific highway South, C-68966, Seattle, will take approximately 4 manhours per Washington 98168. and it is certified under the criteria of the airplane to accomplish the required Regulatory Flexibility Act that this proposed SUPPLEMENTARY INFORMATION: replacement, and that the average labor rule, if promulgated, will not have a cost would be $40 per manhour. The kits significant economic impact on a substantial Comments Invited for accomplishing the replacement are number of small entities, since few, if any, Interested persons are invited to being furnished by Boeing at no charge. Model 757 series airplanes are operated by participate in the making Based on these figures, the total cost small entities. A copy of a draft regulatory of the evaluation has been prepared for this action proposed rule by submitting such impact of this AD would be $2400. For these reasons, the proposed rule and has been placed in the regulatory docket. written data, views, or arguments as is not A copy may be obtained by contacting the they may desire. Communications considered to be a major rule under the person identified under the caption "FOR should identify the regulatory docket criteria of Executive Order 12291. No FURTHER INFORMATION CONTACT." number and be submitted in duplicate to small entities within the meaning of the Issued in Seattle, Washington, on the address specified below. All Regulatory Flexibility Act would be December 19, 1984. communications received on or before affected. Wayne J. Barlow, the closing date for comments specified List of Subjects in 14 CFR Part 39 A cting Director,North west Mountain Region. above will be considered by the IFR Doc. 85-1066 Filed 1-14-85; 8:45 am] Administrator before taking action on Aviation safety, Aircraft. BILLING CODE 4910-13-M the proposed rule. The proposal The Proposed Amendment contained in this notice may be changed in light of the comments received. All Accordingly, the Federal Aviation comments submitted will be available, Administration proposes to amend DEPARTMENT OF COMMERCE both before and § 39.13 of Part 39 of the Federal Aviation after the closing date International Trade Administration for comments, in the rules docket for Regulations (14 CFR 39.13) by adding the following new airworthiness directive: examination by interested persons. A 15 CFR Part 377 report summarizing each FAA/public Boeing: Applies to Boeing Model 757 contact concerned with the substance of airplanes listed in the Boeing Service [Docket No. 50101-50011 this proposal will be filed in the rules Bulletin 757-25A0036, Revision 1, dated docket. September 21. 1984. To prevent Short Supply Regulations Covering degradation of fire protection capability "Petroleum Partly Refined for Further in the cargo compartments, accomplish Availability of NPRM Refining" the following within 120 days after the Any person may obtain a copy of this effective date of this AD, unless already AGENCY: Office of Industrial Resource Notice of Proposed Rulemaking (NPRM) accomplished: Administration, Commerce. by submitting a request to the Federal A. Replace the existing cargo compartment Aviation Administration, Northwest blowout panels in accordance with Boeing ACTION: Advance notice of proposed rulemaking Mountain Region, Office of the Regional Service Bulletin 757-25A0036, Revision 1, with request for comments. Counsel, Attention: Airworthiness dated September 21, 1984, or later FAA approved revision. SUMMARY: The Short Supply Directive Rules Docket No. 84-NM-122- B.Alternate means of compliance which Regulations. administered by the Office AD, 17900 Pacific Highway South, C- provide an equivalent level of safety may be of Industrial Resource Administration, 68966, Seattle, Washington 98168. used when approved by the Manager, Seattle ("OIRA"], classify commodities as Federal Register / Vol. 50, No. 10 / Tuesday, January 15, 1985 / Proposed Rules 2065 I refined "petroleum products" only if are subject to the stringent statutory governments will not be made available they are exported for use as a finished export restrictions that apply to crude for pqblic inspection. product. If they are to be further refined oil. This "end-use" test has produced the The public record concerning this abroad they are treated as crude oil, anamolous result of classifying the same notice will be maintained in the ragardless of the extent of processing in petroleum products in different export International Trade Administration the United States. This "end use" test control categories because of their Freedom of Information Records helps enforce the stringent, stated end-use abroad. Inspection Facility, Room 4001-B, U.S. Congressionally mandated export OIRA's objective is to continue to Department of Commerce, 14th Street controls on crude oil. It also results in enforce the statutory restrictions on and Pennsylvania Avenue, NW., automatically precluding the export of crude oil exports without imposing Washington, DC. 20230. Records in this many petroleum products while unwarranted controls on refined facility may be inspected and copied in allowing the export of the same petroleum product exports. Accordingly, accordance with regulations published products if they are to he used without OIRA is soliciting comments from the in Part 4 of Title 15 of the Code of further refining. The revision under public regarding the following proposal Federal Regulations. Information about consideration would classify petroleum to amend the short supply regulations: the inspection and copying of records at commodities as refined petroleum * The "end-use" test would no longer the facility may be obtained from products, regardless of end-use. An be applied to determine whether a Patricia L. Mlann, the International alternative being considered is a commodity was to be treated as crude Trade Administration Freedom of "distillation" test. If commodities have oil or as a refined product. Crude oil Information Officer, at the above been subjected to a specific distillation export restrictions would not be applied address or by calling 202/377-3031. process in the United States they will be automatically to petroleum products that classified in the refined petroleum will be further refined abroad. Authority: Secs. 203, 206, Pub. L. 95--223, as products categories. Furthermore, in the * Refined petroleum amended (50 U.S.C. 1702, 1704); E.O. 12470 of products would March 30, 1984 (49 FR 13099, April 3, 1984); event that the stated end-use of a be defined as those products that have sec. 103, Pub. L.94-163 as amended (42 U.S.C. product is further refining abroad, the been processed from crude oil through a 6212): E.O. 11912 of April 13, 1976 (41 FR exporter will be required to identify the "distillation process" in the United 15825, as amended; sec. 201 (10), Pub. L. 94- U.S. facility where the distillation took States. This "distillation process" must 258 amending 10 U.S.C. 7430. place. This requirement is designed to yield at least two distinct refined January 10, 1985. ensure that petroleum products that are petroleum products listed in Supplement John A. Richards, exported have been subjected to No. 2 to Part 377 of the EAR and total at distillation in the U.S. and are not crude least one-half of the crude charge. Director,Office of IndustrialResources petroleum or blends thereof. Comments Petroleum that has not been distilled in Administration. on this test as well as other alternatives the United States in this manner would [FR Doc. 85-1120 Filed 1-14-85; 8:45 am] are requested. The proposed revisions be treated as crude oil. The category BILLING CODE 3510-25-M are intended to continue to implement "petroleum partly refined for further Congress' mandate to vigorously control refining" would be eliminated from the the export of crude oil, but without Group A category of the EAR. FEDERAL TRADE COMMISSION unnecessarily restricting exports of * All petroleum products that have refined petroleum products. been through the "distillation process" 16 CFR Part 13 in the United States will be classified DATE: Comments must be received by in [File No. 822-3153] February 14, 1985. Groups B through N of Supplement No. 2 ADDRESS: Department of Commerce, to Part 377 of the EAR, and could be Craftmatic/Contour Organization, Inc., Resource Assessment Division, P.O. Box exported in accordance with § 377.6(d) et al.; Proposed Consent Agreement 663, Washington, D.C. 20044. (2] and (3) of the EAR. With Analysis To Aid Public Comment • However, if the stated end-use of FOR FURTHER INFORMATION CONTACT: such a product is further refining AGENCY: Federal Trade Commission. Steven C. Goldman, Director, Resource abroad, the exporter would be required Assessment ACTION: Proposed consent agreement. Division, International to identify the name and location of the Trade Administration (Telephone: 202/ facility in the United States where the SUMMARY: In settlement of alleged 377-4060). required distillation took place. violations of federal law prohibiting SUPPLEMENTARY INFORMATION: The Comments should include an analysis unfair acts and practices and unfair Department of Commerce is considering of the practicality of the "distillation methods of competition, this consent revisions to the short supply regulations test," any alternatives to it, and the agreement, accepted subject to final concerning the classification of economic impact of the proposed Commission approval, would require commodities as "petroleum partly change. two Bensalem, Pa. sellers of electric refined for further refining" as set forth The period of submission of comments adjustable beds and their individual in section 377(d)(1) and Supplement No. will close one month from the owner, among other things, to cease 2 to Part 377 of the Export publication of this notice. All comments denying responsibility of their written Administration Regulations. ("EAR") received before the close of the warranties; failing to fully and promptly Under existing regulations, petroleum comment period will be considered by honor valid warranty claims; and failing commodities are classified as refined OIRA. While comments received after to disclose relevant information petroleum products only if they are to be the end of the comment period will be concerning any other guarantor. The used abroad as finished products. Such considered if possible, their firms would be required to clearly and refined petroleum products have been consideration cannot be assured. Public prominently disclose in advertisements exported on a routine basis since the comments will become a matter of and promotional materials offering any lifting of quantitative restrictions on public record, and will be available for product warranty, either the nature and petroleum product exports in 1981. In public inpsection and copying. extent of all material limitations and contrast, petroleum commodities that Communications from agencies of the exclusions of the warranty (including are exported for further refining abroad United States Government or foreign any requirement that consumers seeking Federal Register / Vol. 50, No. 196 / Wednesday, October 9, 1985 / Rules and Regulations 41131

Boeing: Applies to Model 727-100, -100C, and of Boeing Service Bulletin 727-53A0173. dated Regulations to incorporate changes -200 series airplanes listed in Boeing July 12, 1985, or later FAA-approved revision. made to the Export Administration Act Service Bulletin Number 727-53A0173, If cracks longer than 2 inches are detected, of 1979 by the Export Administration dated July 12, 1985. certificated in any inspect the vertical beams and web in Amendments Act of 1985. This interim category. To detect cracks in the Body accordance with Figures 1 and 3 of Boeing rule also makes certain technical and Station 1183 pressure bulkhead web and Service Bulletin 727-53A0173, dated July 12, housekeeping changes to the beams, accomplish the following: 1985. or later FAA-approved revision. Repair vertical regulations. A. On airplanes with less than 40,000 flight all cracks prior to further flight in accordance cycles on the effective date of this AD, with the applicable provisions of paragraphs DATES: Effective October 9, 1985; visually inspect within the next 400 flight IlI.C.. III.D., IlI.E. and III.F. of Boeing Service Comments December 9, 1985. of this AD, or Bulletin 727-53A0173, dated July 12, 1985, or cycles after the effective date ADDRESSES: Send written comments to to the accumulation of 25,000 flight later FAA-approved revision; and Boeing prior Rodney A. Joseph, Acting Manager, cycles, whichever, occurs later after the Drawing Number 65C31492, Revision N/C, or Mr. effective date of this AD, the aft pressure later FAA-approved revision; or in a manner Short Supply Program, Room 3876, bulkhead web for cracks in accordance with approved by the Manager, Seattle Aircraft Office Industrial Resource Figure 1 of Boeing Service Bulletin 727- Certification Office, FAA, Northwest Administration, International Trade 53A0173, dated July 12, 1985, or later FAA- Mountain Region. Repeat the visual Administration, U.S. Department of approved revision: inspection of this paragraph at intervals not Commerce, Washington, DC 20230. 1. If no cracks are detected, repeat the to exceed 3,800 flight cycles. Inspect public rulemaking docket at inspection in paragraph A., above, at D. To terminate the repetitive inspection Freedom of Information Records intervals not to exceed 400 flight cycles requirements of this AD, incorporate the International Trade of the Body Station 1,183 Inspection Facility, until inspected in accordance with reinforcement vertical beams in accordance with Administration, Room 4104, U.S. C., below. bulkhead paragraph Paragraph II.D. of Boeing Service Bulletin Department of Commerce, 14th and 2. If cracks are detected, inspect the 727-53-55. Revisions N/C through 2; or Constitution Avenue, NW., Washington, vertical beams in accordance with Figures 2 Paragraph III.D. of Boeing Service Bulletin DC 20230. and 3 of Boeing Service Bulletin 727-53A0173, 727-53-55, Revision 3, or later FAA-approved dated July 12, 1985, or later FAA-approved FOR FURTHER INFORMATION CONTACT. revision; or in a manner approved by the revisions. Repair all cracks prior to further Mr. Rodney A. Joseph, Acting Manager, Seattle Aircraft Certification Office, flight in accordance with the applicable Manager, FAA, Northwest Mountain Region, Short Supply Program, Telephone: 202/ provisions of paragraphs IlI.C. IilI.D., II.E., 377-3984. and IlI.F. of Boeing Service Bulletin 727- E. Special flight permits may be issued in and 21.199 to 53A0173, dated July 12, 1985, or later FAA- accordance with FAR 21.197 SUPPLEMENTARY INFORMATION; On July approved revision, and Boeing Drawing operate airplanes to a base for the 12, 1985, President Reagan signed the Number 65C31492, Revision N/C, or later accomplishment of inspections and/or Export Administration Amendments Act FAA-approved revision: or in a manner modifications required by this AD. of 1985 (Amendments) which extended approved by the Manager, Seattle Aircraft All persons affected by this proposal who and amended the Export Administration have not already received copies of the Certification Office. Repeat the visual Act of 1979 (EAA). inspection required by paragraph A., above. service bulletins may obtain copies upon at intervals not to exceed 400 flight cycles request from the Boeing Commercial Airplane Section 110(b) of the Amendments until inspected in accordance with paragraph Company, P.O. Box 3707, Seattle, Washington amended section 7(e) of the EAA by C.. below. 98124. These documents may be examined at eliminating the requirement for B. On airplanes with 40,000 or more flight the FAA, Northwest Mountain Region, 17900 validated licenses for the export of cycles, visually inspect within the next 200 Pacific Highway South, Seattle, Washington, refined petrbleum products unless the flight cycles after the effective date of this or the Seattle Aircraft Certification Office, President determines that it is necessary AD. the Body Station 1183 pressure bulkhead 9010 East Marginal Way South, Seattle, Washington. to impose export controls. In October web for cracks in accordance with Figure 1 of 1981 (46 FR 49108), the Department of Boeing Service Bulletin 727-53A0173, dated This amendment becomes effective July 12, 1985, or later FAA-approved revision. October 15, 1985. Commerce eliminated quantitative refined 1. If no cracks are detected, repeat the Issued in Seattle, Washington, on limitations on exports of inspection in paragraph A., above, at September 20, 1985. petroleum products, stating that it had intervals not to exceed 200 flight cycles until determined that foreign demand will not Charles R. Foster, in accordance with paragraph C., below. have a serious inflationary impact on 2. If cracks are detected, inspect in Director,Northwest Mountain Region. the domestic economy, and that accordance with Figures 2 and 3 of Boeing [FR Doc. 85-24076 Filed 10-4-85; 11:43 am] quantitative limitations were no longer Service Bulletin 727-53A0173, dated July 12. BILLING CODE 4910-13-M necessary to protect domestic supply 1985, or later FAA-approved revision. Repair drain of materials. all cracks prior to further flight in accordance from the excessive with the applicable provisions of paragraphs However, validated licensing DEPARTMENT OF COMMERCE III.C., IILD., Ill.E., and III.F. of Boeing Service requirements were continued at that Bulletin 727-53A0173, dated luly 12, 1985, or time because of the requirements International Trade Administration later FAA-approved revision: and Boeing • contained in section 7(e) of the EAA. Drawing Number 65C31492. Revision N/C, or 15 CFR Parts 371,377 and 399 Accordingly, this interim rule later FAA-approved revision; or in a manner eliminates the validated licensing approved by the Manager. Seattle Aircraft [Docket No. 50841-51411 requirment for exports of refined Certification Office. FAA. Northwest petroleum products (Petroleum Mountain Region. Repeat the visual Revisions to Short Supply Regulations inspection required by a paragraph A., above, Commmodity Groups B, C, D, E, F, G, K, at intervals not to exceed 200 flight cycles AGENCY: Office of Industrial Resource L, M, and N of Supplement No. 2 to Part until inspected accordance with paragraph Administration, International Trade 377 of the Export Administration C.. below. Administration, Commerce. Regulations (EAR)] and permits their C. Within 3.800 flight cycles after the ACTION: Interim rule with request for export under general license G-NNR or effective date of this AD or upon the one of several other special general accumulation of 25,000 flight cycles. comments. licenses, provided they were not whichever occurs later, visually inspect the Body Station 1183 pressure bulkhead vertical SUMMARY: This interim rule revises produced or derived from the Naval beams for cracks in accordance with Figure 2 certain provisions of the Short Supply Petroleum'Reserves or did not become 41132 Federal Register / Vol. 50, No. 196 / Wednesday, October 9, 1985 / Rules and Regulations available for export as a result of an significant adverse effects on Oral comments should be directed to exchange of a Naval Petroleum competition, employment, investment, Rodney A. Joseph, OIRA, (202) 377-3984. Reserves-produced or derived productivity, innovation, or in the ability If oral comments are received, the commodity. of United States-based enterprises to Department of Commerce official Section 110(b) also amended section compete with foreign-based enterprises receiving such comments will prepare a 7(e) by eliminating the mandatory 30- in domestic or export markets. memorandum summarizing the day Congressional review period for Therefore, neither a preliminary nor substance of the comments and export license applications that would final Regulatory Impact Analysis has identifying the individual making the result in the annual export of 250,000 been or will be prepared. comments, as well as the person on barrels or more of refined petroleum Administrative Procedure Act whose behalf they purport to be made. products to any country. This review All such memoranda will be placed in period now will be necessary only when Under section 13(a) of the Export the public rulemaking docket and will be short supply controls are imposed on Administration of 1979, as amended (50 available for public review and copying. refined petroleum products pursuant to U.S.C. app. 2412(a)), this rule is exempt Presidential Written comments accompanied by a determination. Accordingly, from all requirements of section 553 of request that part or all or the material the Department has discontinued its the Administrative Procedure Act (5 contained be treated confidentially will routine notification to the Congress. U.S.C. 553) including publication of a not be considered in developing the final On January 15, 1985, the Department notice of proposed rulemaking, an regulation. Such comments and of Commerce published in the Federal opportunity for public comment, and a Register (50 materials will be returned to the FR 2064) an advance notice 30-day delay in effective date. Further, submitter. of proposed rulemaking (ANPRM) with no other law requires that notice and an request for comment regarding a opportunity for comment be given for Communications from agencies of the possible revision of the short supply this rule. United States Government or foreign provisions of the EAR covering Because the revisions made by this governments will not be made available "petroleum partly refined for further rule primarily are needed to conform the for public inspection. refining." Due to the recent statuatory short supply regulations to the recent The public rulemaking docket changes, the ANPRM is being EAA amendments, it is not practicable concerning this regulation will be withdrawn. to delay making these revisions pending maintained in the International Trade Section 110(c) of the Amendments notice of proposed rulemaking and an Administration's Freedom of made certain definitional and technical opportunity for comment. Accordingly, Information Records Inspection Facility, changes to section 7(i) of the EAA the rule is being issued without notice of at the address indicated in the address relating to unprocessed red cedar. proposed rulemaking and is effective section above. Records in this facility Section 377.7 (b) of the EAR is being upon publication. may be inspected and copied in revised to reflect (hese changes. The accordance with regulations published Amendments also provided that Public Comments Invited in Part 4 of Title 15 of the Code of multiple validated export licenses As previously stated, the revisions Federal Regulations. Information should be used in lieu of validated made by this rule primarily are needed pertaining to the inspection and copying licenses for exports under section 7. to conform the short supply regulations of records may be obtained from Ms. Accordingly § 377.7(i) is beirW revised to to the recent EAA amendments. The Patricia L. Mann, International Trade extend the validity period for validated Department of Commerce also is Administration's Freedom of licenses issued to export unprocessed considering further revisions to the short Information Officer, at the Records red cedar to twelve months and to supply regulations to update the Inspection Facility address, or by calling permit the submission of an application statutory references, and to ensure that (202) 377-3031. for an export license before the the regulations are as clear as possible, Regulatory Flexibility Act purchaser(s) or ultimate consignee(s) are achieve legislative goals effectively and known. efficiently, and do not impose Since notice and an opportunity for In April 1985, responsibility for the unnecessary burdens on the economy. comment are not required to be given for administration of the Short Supply Accordingly, and consistent with the this rule under section 553 of the Regulations was transferred within the intent of Congress as expressed in Administrative Procedure Act (5 U.S.C. International Trade Administration's section 13(b) of the Export 553) and since no other law requires that Office of Industrial Resource Administration Act of 1979, as amended notice and opportunity for comment be Administration from the Resource (50 U.S.C. app. 2412(b)), these revisions given for this rule, under sections 603(a) Assessment Division to the National are issued in interim-final rather than and 604(a) of the Regulatory Flexibility Security Preparedness Division. This final form. Comments from the public on Act (5 U.S.C. 603(a) and 604[a)) no initial interim rule revises the EAR this interim rule and on ways to improve or final Regulatory Flexibility Analysis accordingly. the short supply regulations are invited has to be or will be prepared. A definition of crude oil is added at and will be considered in formulating a § 377.6(c). final rule, if received no later than Paperwork Reduction Act December 9, 1985. Comments received Executive Order 12291 This rule contains collections of after that date will be considered if information requirements subject to the This rule is not a major rule within the possible. All public comments received Paperwork Reduction Act of 1980 (44 meaning of section 1 of Executive Order will be placed in the public rulemaking U.S.C. 3501 et seq). The collection of the 12291 because it is not likely to result in docket and will be available for public information required on export license (1) an annual effect on the economy of inspection and copying. applications has been approved by the $100 million or more; (2) a major In the interest of accuracy and Office of Management and Budget increase in costs or prices-for completeness, written comments are (OSMB control number 0625-0001). The consumers, iidividual industries, preferred. Written comments (three (3) reporting and recordkeeping Federal, State or local government copies) should be sent to the address requirements set forth in §§ 371.16, 377.6 agencies, or geographic regions; or (3) indicated in the address section above. and 377.7 have been submitted to the Federal Register / Vol. 50, No. 196 / Wednesday, October 9, 1985 / Rules and Regulations 41133

Office of Management and Budget for .Group Q, T, V, W, and Y, and Canada (1) Group A The export from the review under the Act. These provided that both of the following United States of crude petroleum, requirements are needed to implement conditions are met: including reconstituted crude petroleum, effectively the requirements of the tar sands and crude shale oil is Export Administration Act of 1979, as (b) * a a Any commodity listed in permitted only as provided in this amended. Comments from the public on Petroleum Commodity Group B, C, D, E, paragraph. * * * these collections of information F, C, K, L, M, N, or Q which do es not (2) Groups B, C, D, E, F, G, K, L, M, N, requirements are invited and should be meet the conditions for export under addressed to: Office of Information and and Q. The export of refined petroleum General License G-NNR, GLV, SHIP products listed in Sppplement No. 2 to Regulatory Affairs, Office of STORES, PLANE STORES, RCS, GLR, Part 377, which are not subject to Management and Budget, Washington, G-FTZ or GUS, may be exported only paragraph (d)(1) or D.C. 20530. Attention: Desk Officer, ITA, under a validated license issued (d)(3) of this section, Department of Commerce. Copies of pursuant to § 377.6(d)(3). is permitted under the General Licenses these comments should be sent to Mr. G-NNR, GLV, SHIP STORES, PLANE Rodney A. Joseph at the address PART 377-SHORT SUPPLY STORES, RCS, GLR, G-FTZ or GUS as indicated in the address section above. CONTROLS AND MONITORING described in § 371.16. * a * * * List of Subjects in 15 CFR Parts 371, 377, 5. The authority citation for Part 377 is and 399 revised to read as follows: 8. In § 377.7, paragraph (b)(1)(i) and paragraph (i) are revised to read as Exports. Authority: Pub. L. 96-72, 93 Stat. 503, 50 follows: Accordingly, Parts 371, 377 and 399 of U.S.C. app. 2401 et seq. as amended by Pub. title 15, Code of Federal Regulations, are L. 97-145, of Dec. 29, 1981 and by Pub. L. 99- 64 of July 12, 1985, E.O. 12525 § 377.7 Unprocessed western red cedar. amended to read as follows: of July 12, 1985 (50 FR 28757, July 16, 1985); Sec. 103, Pub. L. * * a * a 94-163, as amended, (42 PART 371-GENERAL LICENSES U.S.C. 6212) as amended by Pub. L.99-58 of July 2, 1985; Sec. (b) *** 1. The authority citation for Part 371 is 28 Pub. L. 93-153, (30 U.S.C. 185); Sec. 28 Pub. revised to read as follows: L.,95-372, (43 U.S.C. 1354); E.O. 11912 of April (i) Lumber of American Lumber 3, 1976 (41 FR 15825, as amended]; Sec. 101 Standards Grades of Number 3 Authority: Pub. L. 96-72. 93 Stat. 503, 50 and 201(11)(e) Pub. L. 94-258, (10 U.S.C. 7420 dimension or better U.S.C. app. 2401 et seq. as amended by Pub. and 7430(e)); and Presidential Findings (50 FR or Pacific Lumber L. 97-145, of Dec. 29, 1981 and by Pub. L. 99- 25189, June 18, 1985). Inspection Bureau Export R-List Grades 64 of July 12, 1985, E.O. 12525 of July 12, 1985 of Number 3 common or better. (50 FR 28757, July 16, 1985). §§ 371.1, 377.4, 377.6, and 377.8 a a * a a 2. Section 371.2(c)(10) is revised to [Amended] read as follows: 6. In § 377.1, paragraph (c)(3); § 377.4, (i) Export Licenses for Western Red paragraphs (d)(1), (h), and (i)(2); § 377.6, Cedar. (1) A license issued pursuant to §371.2 General provisions. paragraph (d); and § 377.8, paragraph (d) this section is subject to the same one a * * * a are amended by removing the words year validity period limitations as other (c} a a a "Resource Assessment Division" and individual validated licenses (see (10) The commodity is listed in a inserting in their place, the words § 372.9(d)). Supplement to Part 377 as being subject "National Security Preparedness (2) If the purchaser(s) or ultimate to short supply licensing controls, unless Division". consignee(s) is unknown at the time of the export is authorized under the 7. In § 377.6, provisions of general paragraph (c) is added, submission of the application for an licenses G-NNR, and the first sentence of the GLV, SHIP STORES, PLANE STORES, export license, enter "Various" in Items introductory text to paragraph (d)(1), RCS, GLR, G-FTZ, or GUS; 6, 7, or both, as appropriate, of Form a a a a * and paragraph (d)(2) are revised to read ITA-622P. as follows: (3) Any exporter, using a validated § 371.7 [Amended] § 377.6 Petroleum and petroleum license with "Various" in Items 6 or 7 3. In § 371.7, paragraph, paragraphs products. will be required to provide !he specific (c)(1) (i) and (ii) are amended by information following each export removing the words "Resource (c) Definitions. For the purposes of shipment. Assessment Division" and inserting in this section, crude oil is defined as their place, the words "National follows: Security Preparedness Division". Crude oil. A mixture of hydrocarbons 9. In Supplement No. 2 to Part 377, 4. The introductory text and the last that existed in liquid phase in Group A is amended by revising the sentence of paragraph (b) of § 371.16 are underground reservoirs and remains entry for 475.0710 to read as follows: revised to read as follows: liquid at atmospheric pressure after Petroleum and Petroleum Products passing through surface separating Subject to Short Supply Licensing § 371.16 General license G-NNR; facilities and which has not been Controls Shipments of certain non-naval reserve processed through petroleum a crude oil distillation commodities. tower. Included are reconstituted crude A general license designated G-NNR petroleum, and lease condensate and GROUP A is established, subject to the provisions liquid hydrocarbons produced from tar of this section, authorizing the export of sands, gilsonite, and oil shale. Drip any commodity listed in Petroleum gases are also included, but topped 475.0710. Crude petroleum, including reconstitut- Bbl Commodity Groups ed crude petroleum, tar sands and B, C, D, E, F, G, K, L, crude oil, residual oil, and other finished crude shale oil. M, N, and Q (see Supplement No. 2 to and unfinished oils are excluded. Part 377) to any destination in Country (d) * * * 41134 Federal Register / Vol. 50, No. 196 / Wednesday, October 9, 1985 / Rules and Regulations

Division. The NADA's cover use of 21 CFR Parts 510 and 540 PART 399-COMMODITY CONTROL furosemide, fenbendazole, altrenogest, LIST AND RELATED MATTERS euthanasia solution, and bambermycins Penicillin Antibiotic Drugs for Animal Use; Change of Sponsor 10. The authority citation for Part 399 alone and in combination. is revised to read as follows: This is an administrative change that AGENCY: Food and Drug Administration. does not in any other way affect ACTION; Final rule. Authority: Pub. L. 96-72, 93 Stat 503, 50 approval of the firm's NADA's. The U.S.C. app. 2401 et seq. as amended by Pub. agency is amending the regulations in SUMMARY: The Food and Drug L. 97-145, of Dec. 29, 1981 and by Pub. L. 99- Part 510 to reflect the change. Administration (FDA) is amending the 12, 1985, EO. 12525 of July 12, 1985 64 of July regulations to reflect a (50 FR 28757, July 16, 1985). List of Subjects in 21 CFR Part 510 animal drug change of sponsor of a new animal drug 11. In Supplement No. 1 to § 399.1 (the Administrative practice and application (NADA) for penicillin G Commodity Control List), in Group 7- procedure, Animal drugs, Labeling, procaine in oil for bovine intramammary Chemicals, Metalloids, Petroleum Reporting and recordkeeping infusion from Masti-Kure Products Co., Products and Related Materials, the requirements. Inc., to Wendt Laboratories, Inc. heading to 4781B is revised as follows: Therefore, under the Federal Food, EFFECTIVE DATE: October 9, 1985. Drug, and Cosmetic Act and under FOR FURTHER INFORMATION CONTACT: 4781B Crude petroleum, including authority delegated to the Commissioner David L. Gordon, Center for Veterinary reconstituted crude petroleum, tar sands of Food and Drugs and redelegated to Medicine (HFV-238), Food and Drug and crude shale oil listed in Supp. No. 2 the Center for Veterinary Medicine, Part Administration, 5600 Fishers Lane, to Part 377. 510 is amended as follows: Rockville, MD 20857, 301-443-6243. SUPPLEMENTARY INFORMATION: Wendt PART 510-NEW ANIMAL DRUGS Issued October 7, 1985. Laboratories, Inc., 100 Nancy Dr., Belle Plaine, MN 56011, has informed FDA of 1. The authority citation for 21 CFR John A. Richards, in sponsor for NADA 65-383 Part 510 continues to read as follows: a change Director,Office of IndustrialResource from Masti-Kure Products Co., Inc., 1 Administration. Authority: Secs. 512, 701(a). 52 Stat. 1055, Wisconsin Ave., Norwich, CT 06360. 82 Stat. 343-351 (21 U.S.C. 360b, 371(a)); 21 Masti-Kure has confirmed the change. 8:45 am] lFR Doc. 85-24258 Filed 14-8-85: CFR 5.10 and 5.83. The NADA covers use of two penicillin BILLING CODE 3510-25-M 2. In § 510.600 by removing the entry G procaine products, one for dry cow in paragraph (c)(1) for "American intramammary infusion, another for cows. Masti-Kure Products Co. DEPARTMENT OF HEALTH AND Hoechst Corp., Animal Health Division", lactating and adding a new sponsor entry is no longer the sponsor of any approved HUMAN SERVICES alphabetically, and in paragaph (c)(2) by NADA's. FDA is amending the revising the entry for "012799", to read regulations to reflect the change of sponsor. Food and Drug Administration as follows: The change is an administrative § 510.600 Names, addresses, and drug action which does not otherwise affect 21 CFR Part 510 labeler codes of seonsors of approved approval of the firm's NADA. applications. Animal Drugs, Feeds, and Related List of Subjects Products; Change of Sponsor Name (c) * * * 21 CFR Part510 (1) "* * Administrative practice and AGENCY: Food and Drug Administration. procedure, Animal drugs, Labeling, ACTION: Final rule. Firm name and address Drug labeler Reporting requirements. SUMMARY: The Food and Drug 21 CFR Part 540 Administration (FDA) is amending the Hoechst-Roussel Agrl.Vet Co., Route 202- Animal drugs, Antibiotics, Penicillin. animal drug regulations to reflect a 206 North, Somerville, NJ 08876 ...... 012799 change of name for the sponsor of Therefore, under the Federal Food, several new animal drug applications Drug, and Cosmetic Act and under (NADA's) from American Hoechst authority delegated to the Commissioner (2) * * Corp., Animal Health Division, to of Food and Drugs and redelegated to Hoechst-Roussel Agri-Vet Co. the Center for Veterinary Medicine, and address Parts 510 and 540 are amended as EFFECTIVE DATE: October 9, 1985. Drug labeler Firm name code follows: FOR FURTHER INFORMATION CONTACT: David L. Gordon, Center for Veterinary 012799 . Hoechst-Roussel Agri.Vet Co.. Route PART 510-NEW ANIMAL DRUGS 202-206 North, Somerville, NJ 08876 Medicine (HFV-238), Food and Drug 1. The authority citation for 21 CFR Administration, 5600 Fishers Lane, Part 510 continues to read as follows: Rockville, MD 20857, 301-443-6243. 512, 701(a), 52 Stat. 1055, Dated: October 2, 1985. Authority: Secs. SUPPLEMENTARY INFORMATION: Hoechst- 82 Stat. 343-351 (21 U.S.C. 360b, 371(a));' 21 Roussel Agri-Vet Co.; Route 202-206' Richard A. Carnevale, CFR 5.10 and 5.83. North, Somerville, NJ 08876, has Acting Associate Directorfor Scientific § [Amended] informed FDA of a sponsor name Evaluation, Center for Veterinary Medicine. 510.600 change for several NADA's from IFR Doc. 85-24073 Filed 10-8-85: 8:45 am] 2. Section 510.600 Names, addresses, American Hoechst Corp.. Animal Health BILLING CODE 4160-01-M and drug labelercodes of sponsors of APPENDIX B: Expanding Butane Exports

APPENDIX C: Expanding Specialty Naphtha Exports

Federal Register / Vol. 46, No. 120 / Tuesday, June 23, 1981 / Rules and Regulations 32431

DEPARTMENT OF COMMERCE validated licenses for the export of. petroleum with a petroleum product may insignificant quantities of materials not be used to bunker a vessel under International Trade Administration which, in the aggregate, are in short General License Ship Stores. Because supply. many ports are not capable of servicing 15 CFR Parts 371,377, and 399 GeneralLicense GL V. The GLV dollar Super Tankers within the port itself, Petroleum Products Under Short value limit for three commodity control General License Ship Stores is revised to bunkering of these large Supply Export Controls; Interim list entries is being raised from $250 to authorize the Regulations to Increase Efficiency of $1,000, in order to reduce industry and vessels in U.S. or international waters circumstances. Controls and Administration of Government paperwork associated with under limited Exports export shipments of certain petroleum GeneralLicense RCS. The regulations commodities under short supply export concerning General License RCS are AGENCY: Office of Export control. The Department believes that revised to indicate that crude petroleum Administration, International Trade petroleum exports of such limited value and blends of unrefined crude petroleum Administration, Commerce. will not significantly reduce domestic with a petroleum product may not be ACTION: Interim rule with invitation to supplies. This change will permit used to bunker a vessel under this comment. general license shipments of many general license. The regulations covering exports that previously required this general license are also revised to SUMMARY: This rule amends the validated export licenses. rescind authority to export unlimited regulations governing exports of GeneralLicense G-NNR. After quantities of aviation fuel to a U.S. or petroleum products under short supply reviewing its petroleum licensing Canadian Airline's installation or agent export controls. records, the Department believes a abroad, but continue to allow exports of This rule expands and clarifies the revision of General License G-NNR is ship's bunker and aviation fuel for use provisions of several general license warranted to accommodate the of a specific vessel or aircraft of U.S. or authorizations to permit more extensive numerous small quantity drummed Canadian registry, in unusual exports without prior written shipments of specialty petroleum circumstances and in quantities authorization from the Office of Export products intended for non-fuel usage, necessary for a single onward voyage or Administration, and reduces certain and of petroleum reference fuels for use flight. reporting requirements. as reference standards in petroleum Documentationfor Special Exception. DATE: These rules are effective on refineries shipped in quantities of 10,000 The special rule which permits publication, but may be revised after gallons or less. Because of the high applicants for petroleum export licenses comments are received. Comments to be purity of some of these products, they to substitute an affidavit for an export received by the Department by August frequently sell for prices from five to order is clarified to ensure that all 24, 1981. twenty-five times the selling price of required information and affidavits are ADDRESS: Written comments (five similar mass-marketed commercial submitted when no formal contract copies) should be sent to: Mr. Robert F. grade fuels. Therefore, export shipments exists. Kan, Special Assistant to the Director, of as few as two or three barrels often Affidavit for non-Naval Petroleum value limit of Short Supply Division, Office of Ekport exceed the new dollar Reserve-Origin. The affidavit in Administration, U.S. Department of $1,000. To avoid the continuation of § 377.6(e)(1)(iv) certifying the non-Naval Commerce, Washington, D.C. 20230. case-by-case licensing of numerous Petroleum Reserve-Origin of a petroleum small quantity shipments of these high- FOR FURTHER INFORMATION CONTACT. product which is required to accompany value, low-volume specialty products, Mr. Robert F. Kan, Special Assistant to each application for a license to export the Department has moved them to the Director, Short Supply Division, is revised by lengthening Petroleum Group Q. This addition will such product Office of Export Administration, U.S. from 90 to 180 days the time periods Department of Commerce, Washington, allow exports of these products under General License G-NNR. used in calculating (a) the volume of D.C. 20230, (202] 377-3795. in a refinery utilizing Exporters are put on notice that the products produced SUPPLEMENTARY INFORMATION: The of Export Administration will, in any Naval Petroleum Reserves examined its Office Department has recently appropriate cases, conduct audits of feedstock which are attributable to licensing petroleum short supply export exporters' files to determine that these other feedstocks, and (b) the total simplifying program with a view toward rules pertaining to shipping quantities volume of products attributed to such procedures and streamlining its are complied with. This change in the feedstock to be exported during the wherever practicable, in compliance regulations is not to be interpreted to comparable future time period. This with section 12(e) of the Export represent a liberalization of petroleum eliminates the need to restrict the Administration Act of 1979 (Pub. L. 96- export controls, as all these types of validity of each license to 90 days from ("the 72, 50 U.S.C. App. 2401 et seq.] shipments have been licensed in the the date the affidavit was executed, and Act") and with the Administration's past without being subject to permits the issuance of licenses which of easing the regulatory burden. policy limitations as either an N-2 will remain valid until 30 days following During this review it was noted that a quantitative product or as a recognized exception. the end of the calendar quarter in which large number of validated export GeneralLicense GPCC. The issued. The suggested affidavit is also licenses are being issued for quantities regulations concerning General License revised to include alternative statements that do not significantly reduce domestic GPCC are amended to clarify that that may be used concerning the origin supplies of a particular commodity. petroleum products exported to the of the commodities. While the purpose of short supply Panama Canal Commission under that Affidavit Identifying Refiner. As a export control programs is "to protect general license must be intended for use result of the termination of the crude oil the domestic economy from an by the Commission and not for export price control program of the Department excessive drain of scarce materials" resale. of Energy, refiners are no longer through export, the Department does not GeneralLicense Ship Stores. The required to take an adjustment of the believe that this goal is furthered or any regulations concerning this general volume of crude oil runs to stills. other useful purpose served by the license are revised to indicate that crude Because these adjustments are no longer maintenance of controls that require petroleum and blends of unrefined crude 32432 Federal Register / Vol. 46, No. 120 / Tuesday, June 23, 1981 / Rules and Regulations required, the affidavits required by Communications from agencies of the use by the Commission and not for §§ 371.7(b)(4) and 377.6(e)(2)(ii) are also United States Government or foreign export resale unnecessary, and the sections are' governments will not be made available deleted. for public inspection. 3. Section 371.9 is revised to read as Validity Period.Section 377.6(g) is The public record concerning these follows: revised to indicate that the Office of regulations will be maintained in the Export Administration may issue International Trade Administration § 371.9 General license ship stores. licenses to export petroleum products Freedom of Information Records (a) Scope. A general license with validity periods longer than one Inspection Facility, Room 3102, U.S. designated Ship Stores is established, calander quarter. Department of Commerce, 14th Street subject to the provisions of §371.9, Rulemaking Procedure and Invitation to and Constitution Avenue, N.W., authorizing the export, under certain Comment Washington, D.C. 20230. Records in this circumstances, of usual and reasonable facility, including written public kinds and quantities of the commodities Section 13(a) of the Act exempts comments and memoranda summarizing indicated in paragraphs (a) (1) and (2) of regulations promulgated under it from the substance *oforal communications, this section, provided such commodities the public participation in rulemaking may be inspected and copied in are not intended for unlading in a procedures of the Administrative accordance with regulations published Procedure Act. It has been determined foreign country and are not exported in Part'4 of Title 15 of the Code of under a bill of lading as cargo. 1 Exports that this rule: Federal Regulations. Information about (1) Is not a major rule within the under this general license may be made the inspection and copying of records at on vessels of any registry, except as meaning of section 1(b) of Executive the facility may be obtained from Mrs. Order 12291 (46 FR 13193, February provided for in paragraph (a)(3) of this 19, Patricia L. Mann, the International section, departing from the United 1981); Trade Administration Freedom of (2) Will not have a significant States. Additionally, exports under this Information Officer, at the above general license may be made on lighters economic impact on a substantial address or by calling (202) 377-3031. number of small business entities servicing vessels too large to enter a Accordingly, the Export U.S. port to allow for the refueling of because it does not impose any AdministrationRegulations are additional costs or other regulatory amended asfollows: super tankers, e.g., Ultra Large Crude burden on them; and Carriers (ULCC) and Very Large Crude (3) Does not impose a burden under PART 371-GENERAL LICENSES Carriers (VLCC), provided such vessels the Paperwork Reduction Act of 1980, 44 are lading or unlading, in U.S. or U.S.C. 3501 et seq. 1. In § 371.7(b), paragraphs (2)(i) and international waters, cargo destined for Because of the importance of the (ii) are revised; paragraph (2)(iii) is or coming from a U.S. port. issues raised by these regulations and removed, and paragraph (4) is removed. (1) Dunnage necessary and the intent of Congress set forth in § 371.7 General license G-FTZ: Exports of appropriate to stow or secure cargo on section 13(b) of the Act, these petroleum commodities from U.S. foreign- the outgoing and immediate return regulations are issued in interim form trade zones and from Guam. voyage of an exporting carrier, when and comments will be considered in exported solely for use as dunnage. may developing final regulations. (b) * * * be exported to any destination under The period for submission of (2) * * * this General License Ship Stores. comments will close August 24,1981. (i) Did not become available for (2) The items listed below may be However,'in order that comments may export as a result of an exchange for exported subject to the conditions set be given maximum consideration, commodities which would not qualify forth in (b) of this section for use or persons wishing to comment are urged for export under General License G- consumption on board a vessel of any to submit their comments as soon as FTZ, and will not be replaced within the registry during the outgoing and possible. Although comments received exporter's customary domestic immediate return voyage- after the end of the comment period will marketing area by commodities which (i) Bunker fuel, except crude be considered if possible, this do not so qualify; and petroleum and blends of unrefined crude consideration cannot be assured. Public (ii) Were refined exclusively from petroleum with a petroleum product, comments which are accompanied by a foreign-origin crude petroleum in a provided it is not of Naval Petroleum request that part or all of the material be Foreign-Trade Zone or Guam. Reserve origin or derivation; treated confidentially, because of its (iii) (Removed). (ii) Deck, engine, and steward business proprietary nature or for any department stores, provisions, and other reason, will not be accepted. Such (4) (Removed). supplies for both port and voyage comments and materials will be requirements, provided they are not of returned to the submitter and will not be 2. Section 371.8(a) is revised to read as Naval Petroleum Reserves origin or considered in the development of the follows: derivation if listed in Supplement No. 3 final regulations. to Part 377; All public comments on these § 371.8 General license GPCC; Export of (iii) Medical and surgical supplies; regulations will be a matter of public petroleum products to the Panama Canal (iv) Food stores; record and will be available for public Commission. (v) Slop chest articles; and inspection and copying. In the interest of (a) Scope. A general license (vi) Saloon stores or supplies. accuracy and completeness, comments designated GPCC is established subject (3) Equipment and spare parts for in written form are preferred. If oral to the provisions of this section permanent use on a vessel may be comments are received, they must be authorizing the export to the Panama exported for use on board a vessel of followed by written memoranda (in five Canal Commission, under a any registry, when necessary for the copies) which will also be a matter of Commission-issued contract or purchase public record and will be available for order, of refined petroleum products 1 Where a validated license is required, see public review and copying. listed in Supplement No. 2 to Part 377 for §§ 372.4 and 376.9. Federal Register / Vol. 46, No. 120 / Tuesday, June 23, 1981 / Rules and Regulations 32433 proper operation of such vessel, except introductory paragraph to (d), (d)(1) and evidence may take the form of the a vessel registered in Country Group P, (e) to read as follows: affidavit prescribed in § 377.6(e)(1)(iv), Q, W, Y, or Z, or owned or controlled or it may consist of other documentation § 371.12 General license RCS: Shipments establishing the factual data to be by, or under charter or lease to any of to U.S. or Canadian vessels, planes and these countries or their nationals. airline Installations or agents. covered in such affidavit. The exporter Notwithstanding the above, equipment shall retain such documentary evidence in his files for the period prescribed in and spare parts for permanent use on a (b)** vessel, when necessary for the proper § 387.13(e), and is put on notice that the (3) In usual and reasonable kinds and Office of Export Administration will, in operation of such vessel, may be quantities during times of extreme need, audits of board a vessel registered in, appropriate cases, conduct exported on except that usual and reasonable exporters' fies to determine that such owned or controlled by, or under charter quantities of ship's bunkers or aviation Group documentary evidence is available or lease to a country in Country fuel are considered to be only that covering each export of a commodity P, Q, W or Y, or a national of such quantity necessary for a single onward 377, or spare parts listed in Supplement No. 3 to Part country, if the equipment voyage or flight; that was made under General License are authorized to be exported to a (4) Shipped as cargo for which a RCS. Crude petroleum may be exported destination in Country Group P. Q, W, or Shipper's Export Declaration (SED) is except that an only under a validated license issued Y under General License G-DEST. In filed with the carrier, pursuant to § 377.6(d)(1). Any other addition, other equipment and services SED is not required when any of the listed in than fuel, is petroleum commodity for necessary repair to fishing and commodities, other Supplement No. 3 to Part 377, which fishery support vessels of PQWY exported by U.S. airlinesto their own aircraft abroad for their use. does not meet the conditions for export countries or Cuba may be exported for under General License RCS, may be use on board such vessels when exported only under a validated license admitted into the United States under (c) Exports to U.S. or Canadian issued pursuant to § 377.6(d)(6). governing international fishery Airline's Installationor Agent Exports agreements. of the commodities set forth in PART 377-SHORT SUPPLY (b) Restrictions on exports of paragraph (d) of this section, except CONTROLS AND MONITORING fuel, may be made to a U.S. or Canadian petroleum andpetroleum products. 2 Crude petroleum and blends of airline's installation or agent in any 5. In § 377.6, paragraphs (e)(1)(iv), (2), unrefined crude petroleum with foreign destination except Country (3), and (9), and jiaragraph (g) are petroleum products may not be exported Group P, Y or Z (excluding Cuba) revised to read as follows: under this general license. Export of any provided such commodities are- * * * .* * § 377.6 Petroleum and petroleum petroleum product listed in Supplement products. No. 3 to Part 377 may be made under (4) Shipped as cargo for which a * * * * * this general license provided the Shipper's Export Declaration (SED) is exporter, prior to the export of such filed with the carrier, except that an (e) * * * (1] * * • commodity, has assembled documentary SED is not required when any of these evidence establishing that the commodities is exported by U.S. airlines (iv) A sworn affidavit, signed by an commodity was not produced or derived to their own installations and agents authorized representative of the from a Naval Petroleum Reserve. Such abroad for use in their aircraft exporter, reading as follows (insert may take the operations. paragraph a or b, as appropriate): dodumentary evidence * * * * * form of the affidavit prescribed in Affidavit § 377.6(e)(1](iv), or it may consist of (d) Applicable Commodities. This to the I (name] other documentation establishing the general license applies (Title) . factual data to be covered in such commodities listed below, subject to the of (company) affidavit. The exporter shall retain such provision in paragraphs (b) and (c) of hereby certify that the (quantity) documentary evidence in his files for the this section- bbls. of (commodity) (1) Fuel, except crude petroleum and (a) I propose to export from the United period prescribed in § 387.13(e), and is States were not produced from a Naval put on notice that the Office of Export blends of unrefined crude petroleum is of Petroleum Reserve nor were they derived Administration will, in appropriate with petroleum products, which Petroleum Reserves origin or from any crude oil, gases of all kinds cases, conduct audits of exporters' files non-Naval (including natural gas, hydrogen, carbon derivation; to determine that such documentary * * * * * dioxide, helium, etc.], natural gasoline, and evidence is available covering each other related hydrocarbons (tar sands, export of a commodity listed in (e) Crude Petroleum.Crude petroleum asphalt, propane. butane, etc.] or oil shale Supplement No. 3 to Part 377 that was and blends of unrefined crude petroleum produced from a Naval Petroleum Reserve. with petroleum products may not be Or- made under General License Ship (b) I propose to export from the United Stores. Crude petroleum may be exported under this general license. listed States, If they are the product of a refinery or exported only under a validated license Export of any petroleum product 377 may be petrochemical plant utilizing as raw material issued pursuant to § 377.6(d)(1). Any in Supplement No. 3 to Part produced from a Naval license any resource other petroleum commodity listed in made under this general Petroleum Reserve, the quantity of the the exporter, prior to the Supplement No. 3 to Part 377 which does provided products from that refinery or petrochemical export of such commodity, has not meet the conditions for export under plant which are to be exported during the assembled documentary evidence General License Ship Stores may be next 180 days, do not exceed that portion of that the commodity was not refinery or a validated license establishing the total products of that exported only under produced or derived from a Naval petrochemical plant attributable to the non- issued pursuant to § 377.6(d)(6). Petroleum Reserve. Such documentary Naval Petroleum Reserve raw materials used 4. Section 371.12 is amended by in that plant during the preceding 180 days. revising paragraphs (b)(3), (b)(4), the 2 See § 370.2 for definition of United States and The petroleum commodities that I propose introductory paragraph to (c), (c)(4), the Canadian airlines. to export did not become available for export 32434 Federal Register / Vol. 46, No. 120 / Tuesday, June 23, 1981 / Rules and Regulations

as a result of an exchange for a Naval of the end-user, the nature of the end- Supplement No. 2 to Part 377-Petroleum Petroleum Reserves-produced resource or a use, and stating that, to the best of his and Petroleum Products Subject to Short product(s) derived therefrom. knowledge and belief, the commodity Supply Licensing Controls-Continued To the extent that I do not have personal 5 will not be used as a fuel either alone or No.'C~l~fl~ditydesripton Uni of knowledge of the foregoing, I have addressed when blended with other petroleum appropriate inquiries to the refiner or producer of the commodityfies) to be products, nor will it be used as a Schedule B Comqua description qUntity exported, and have been assured by him that refinery feedstock or for synthetic these statements are correct natural gas production, nor will it be 431.0290 Acetylene ...... Do. The Individual who made these substituted for a commodity which will 431.0290 High purity hydrocarbons, and Do. to me is: 475.2520 blends of hydrocarbons used Irepresentations (name) be so used, and 475.2560 for engine calibration, fuel cer- (ii)A published technical data sheet tification and other laboratory Of (Title) applications in quantities of (company) (unless one has previously been 10,000 gallons or les.4. And he communicated these assurances submitted) or independent inspector's 475.3500 Specialty naphthas. mineral spir- Barrel. its, solvents and other finished to me on (date) certificate of analysis of the product to light petroleum products, (Signature) be exported which clearly indicates that n.s.p.f., which are packaged (2) Groups B, C, D, E, F, G, K, L, M, N- the commodity is properly classifiable and shipped in drums or con- tainers not exceeding 55 U.S. 1, N-2, Q, and R. An application for q under Petroleum Commodity Group N-2. gallons per container. validated license to export a commodity 475.4510 Aviation engine lubricating oil, Do. Group B, C, except jet engine lubricating from Petroleum Commodity (g) Validity Period.Unless otherwise oil. l, E, F, G, K, L, M, N-1, N-2, Q, or R, to 475.4515 Jet engine lubricating oil ...... Do. specified, a license issued pursuant diesel, and manne Do. must be accompanied by the same this section will expire no later than 30 475.4520 Automotive, § 377.6[e)(1), engine lubricating oil. documentation required by days from the end of the calendar 475.4525 Turbine lubricating oil, including Do. except that the affidavit described in quarter in which it is issued. A longer marine. paragraph (e)(1)(iii) of this section is not 475.4530 Automotive gear oils ...... Do. validity period may be authorized if 475.4550 Steam cylinder oils ...... Do. required. found to be consistent with the national 475.4555 Insulating or transformer oils ...... Do. established trade 475.4560 Quenching or cutting oils ...... Do. (3) Exception for interest and the purposes of this short practices. A special rule is established 475.4565 Other petroleum lubricating oils. Do. supply control program. Requests for including red and pale Ods. for the documentation of export orders of the validity period of any bright stock, black oils, white for which no contract is entered into extension mineral oils, and lubricants, under this section will rLsp.f. to a well-established and license issued pursuant normally not be entertained. 475.5700 Greases ...... Pound. consistently maintained trade practice. 475.6740 Petroleum jelly, and petrolatum, Do. With respect to such orders, in lieu of all grades. 475.6760 Hydraulic fluids, including auto- Barrel. the copy of the contract and the 6. Supplement No. 2 to Part 377 is matic transmission fluids. affidavit required by paragraph (e)(1) of amended by revising Group Q to read as 475.6781 Other non-lubrncating and non- X follows: fuel petroleum oils, n.s.p.f. this section as to the amount previously 480.6540 Ammonia, anhydrous ...... Short ton. Pound. exported against such contract, the Supplement No. 2 to Part 377-Petroleum 492.5210 Paraffin wax, crystalline, fully re- exporter may submit an affidavit fined. and Petroleum Products Subject to Short 492-5220 Paraffin wax, crystalline, except Do. describing his exporting arrangement Supply Licensing Controls fully refined. and the shipments made under that 492.5240 Paraffin wax, all others (including Do. microcrystaline wax). arrangement. 517.5120 Petroleum coke, calcined ...... Short ton. calcined Do 2 521.3150 Petroleum coke, except Schedule B Commodity description Unit of (9) Groups N-1 and N-2. An No. I quantity 3 application for a validated license to Petroleum Products Subject to Provisions of Either § 371.16 I See Supplement No. 3 to Part 377 for correlation of old export a commodity from Petroleum or § 377.6(d)(6) Schedule B Numbers. Schedule B Numbers are provided be only as a guide to proper completion of the Shipper's Export Commodity Group N-1 must Group 0 Declaration, Form No. 7525 V_ submitted with the same documentation 401.0110 Benzene ...... Gallon. 2 Commodity description determineas the product under control. required by § 377.6(e)(1), except the 401.0120 Toluene ...... Do. 3 in units of quantity indicated. 401.0132 Ortho-xyet e ...... Do. Report commodities a described in paragraph 'Such as for relerence standards, certified io-ootene. ffidavit 401.0134 Para-xylene ...... Do. certified normal heptane, or certified fuels used for ernmision (a)(1)(iii) of this section is not required. 401.0139 Other xylene ...... Do. control standard teats,and for comparative laboratory test. 415.2400 Helium ...... Million ing. An application for a validated license to cubic export a commodity from.Petroleum feet Group N-2 must be 415.2900 Hydrogen ...... X. Commodity 417.2000 Ammonia, aqueous ...... Cnt. ton. PART 399-COMMODITY CONTROL submitted with the same documentation 423.1010 Carbon dioxide and carbon mon- X. LIST AND RELATED MATTERS required for Petroleum Commodity oxide. 431.0210 Butadiene ...... Pound. List, Group N-i, and: 431.0220 Butylene... .. Do. 7. The Commodity Control (i) An end-use statement by-the 431.0230 Ethylene ...... Do. Supplement No. 1 to § 399.1, is amended 431.0240 Isoprene ...... Do. by revising the following entries to read applicant in affidavit format indicating 431.0250 Propylene ...... Do. the name, location and type of business 431.0260 Tetraoroovlene...... Do. as follows: 431.0260 Reason and commodity description Unit Validated license required GLV dollar value Processing code for Export control commodity number limits T&V control

4782B Other petroleum products isted in Supplement No. 2 to Part 377. (See ...... PQSTVWYZ and Canada ...... 2.31.000 SS ...... 2 §§ 371.16 and 371.5(d) for special provisions regarding shipments under General Licenses G-NNR and GL V). 4'F83B Natural gas liquids and other natural gas derivatives listed in Supplement No. Barrel...... PQSTVWYZ and Canada ...... 21,000 SS ...... 2 2 to Part 377. (See §§371.16 and 371.5(d) for special provisions regarding shipments under General Licenses G-NNR and GLV.). 4'l84B Manufactured gas and synthetic natural gas (except when commingled with Mcf...... POSTVWYZ and Canada ...... 21,000 SS ...... 2 natural gas and thus subject to export authorization from the Department of Energy) listed in Supplement No. 2 to Part 377. (See §f371.16 and 371.5(d) for special provisions regarding shipments under General Licenses G-NNR and GLV.).

3 GLV $ value limit for petroleum asphalt and paving mixtures is $5,000. . 2 GLV $ valup limit for exports to Canada and Country Group 0 is $1.000. 4. Federal Register / Vol. 46, No. 120 / Tuesday, June 23, 1981 / Rules and Regulations 32435

Drafting Information: The principal author of these rules is-Robert F. Kan, Special Assistant to the Director, Short Supply Division, Office of Export Administration. Authority- Sections. 7. 12, 13. 15. and 21, Pub. L. 96-72, 50 U.S.C. App. 2401 et seq.; E.O. 12214, (45 FR 29783, May 6, 1980); Department Organization Order 10-3. (45 FR 6141, January 25, 1980); International Trade Administration Organization and Function Order 41-1 (45 FR 11862, February 22, 1980) and 41-4 (45 FR 65003, October 1, 1980). Dated: June 1. 1981. William V. Skidmore, Director.Office of Export Administration. [IFRDoc. 81-18470 Filed &-2Z-81; &45 am! BILUNG CODE 3510-25-M

FEDERAL TRADE COMMISSION When a court of appeals remands a Prohibition of ex Parte Communications Commission decision and order for During the Period Within Which a 16 CFR Part 4 further proceedings, the Commission Petition for Reconsideration May Be resumes jurisdiction over the case when Filed Ex Parte Communications in the court's remand is issued as its Adjudicative Proceedings Under present Rule 4.7(e) the ban on mandate pursuant to Rule 41 of the exparte communications in an AGENCY: Federal Trade Commission. Federal Rules of Appellate Procedure, adjudicative proceeding ends when the ACTION: Final rule. generally 21 days after entry of Commission "votes to enter its decision judgment. Regardless of when the in the proceeding." The ban is not SUMMARY: The Federal Trade mandate issues, the Commission may reinstated unless a petition for Commission amends Rule 4.7(e) to petition the Supreme Court for a writ of reconsideration under Rule 3.55 is filed, define when an order of remand by a certiorarifrom a court of appeals' in which event Rule 4.7(e) provides that U.S. court of appeals shall be deemed to adverse judgment within 90 days from the exparte restrictions shall apply become effective for purposes of the date the court of appeals enters its "from the time the petition is filed ***.. applying the prohibitions of Rule 4.7(b). judgment or enters an order disposing of Thus, the Rule implicitly sanctions ex and to make clear that those a timely filed petition for rehearing parte contacts in the interim between prohibitions apply during the period going to the substance of the judgment. the Commission's vote on a final within which a petition for 28 U.S.C. 2101(c). decision and the deadline for filing a reconsideration under Rule 3.55 may be worded could Rule 3.55 petition. It has not been the filed. Rule 4.7(e) as presently be construed to mean that a court of Commission's policy to permit such EFFECTIVE DATE: The rule is effective on appeals' order of remand "becomes contacts in the past, and the Rule is June 23, 1981. effective" from the date that the being amended so as to eliminate any possible ambiguity on the question. FOR FURTHER INFORMATION CONTACT: Commission resumes jurisdiction over Jerome Tintle (202) 523-3487, Office of the case, i.e., when the court's mandate Accordingly, 16 CFR 4.7(e) is revised General Counsel, Federal Trade issues. This construction would, to read as follows: Commission, 6th Street & Pennsylvania practically speaking, preclude the § 4.7 Ex parte communications. Avenue, N.W., Washington, D.C. 20580. Commission from consulting ex porte SUPPLEMENTARY INFORMATION: with its prosecuting staff on whether Supreme Court review of the judgment (e) The prohibitions of this section Cases on Remand from the Courts of apply in an adjudicative should be sought. In adopting present shall Appeals proceeding from the time the Rule 4.7(e), the Commission did not 4.7(b) prohibits ex parte Commission votes to issue a complaint Rule intend this construction. On the communications by, among others, any pursuant to § 3.11, to conduct employee or agent of the Commission contrary, before and since adoption of adjudicative hearings pursuant to § 3.13, who performs investigative or the Rule, the Commission has regularly or to.issue an order to show cause prosecuting functions in adjudicative received the views of its prosecuting pursuant to § 3.72(b), or from the time an proceedings while a proceeding is in staff on the question of certiorari order by a U.S. court of appeals adjudicative status within the without regard to whether the court of remanding a Commission decision and Commission, except to the extent appeal's mandate has been issued. A order for further proceedings becomes required for the disposition of ax parte matter on remand is not returned to effective, until the time the Commission matters as authorized by law. Rule adjudicative status until the Commission votes to enter its decision in the 4.7(e), among other things, extends these has determined not to seek Supreme proceeding and the time permitted by prohibitions to an adjudicative Court review, or until the time for § 3.55 to seek rehearing of that decision proceeding "from the time an order by a seeking such review has expired without has elapsed. For purposes of this U.S. court of appeals remanding a a petition for certiorarihaving been section, an order of remand by a U.S. Commission decision and order for filed, or until such a petition has been court of appeals shall be deemed to further proceedings becomes effective, denied. The Commission has, therefore, become effective when the Commission until the time the Commission votes to amended Rule 4.7(e) to reflect its regular determines not to file a petition for a enter its decision in the proceeding." practice. The amendment adds a writ of certiorari,or when the time for Rule 4.7(e), however, does not define provision defining when a court of filing such a petition has expired when a court of appeals' order appeals' judgment "becomes effective" without a petition having been filed, or "becomes effective" for purposes of for purposes of the Rule. when such a petition has been denied. If applying the restrictions imposed by a petition for reconsideration of a Rule 4.7(b). Federal Register / Vol. 46, No. 147 / Friday, July 31, 1981 / Rules and Regulations 39125

(2) Issue an-order stating the Board's is not applicable because this regulation that if such actioawere taken, the intention to process the application does not impose new controls on national nterestwouldbe servedby through show cause or other expedited exports. Therefore, this regulation is broadening markets for naphthas procedures, where the course of action issued in final form. Comments were unsuitable or unneeded for domestic is clear under Board policy, or solicited and received on this proposal consumption. Consequently, the (3) Issue an order, subject to in response to an earlier notice, Department invited public comment on presidential review under section 801(a) however, public comments on this the merits of removing or revising these of the Act, finalizing an order to show regulation are welcome on a continuing export limitations. cause issued under paragraph [1) of this basis. Responses were received from ten subsection where no objections to the This rule does not impose a burden companies, interested trade order to show cause have been filed. under the Paperwork Reduction Act of associations, and the European 1980, 44 U.S.C. 3501 etseq. This rule Is -Dated: July 27, 181. Community. All of the comments not a major rule within the meaning of favored liberalization, z.e., lifting of Phyllis T.RKaylor, section 1(b] of Executive Order 12291 (46 quantitative exportrestnctions on Secretary. FR i3193, February 19,1981), "Federal naphthas. One trade association [FR Doc. 8,-2=2Filed 7-M-M L-0 .4 RegW'ation." representing 19 petrochemical BILWNG CODE 6320-01--M Substance of the Regulation companies opposed the limited approach, however favored a broader On September 30,1976 (as announced export liberalization to include all in the Federal Register on October 7, naphthas, citing that export relief ona DEPARTMENT OF COMMERCE 1976 (41 FR 44155)) exports of naphtha. narrow scope of paraffimc naphthas had mineral spirits, naphtha solvents and International Trade Administration the potential of price and market other fimshed light petroleum products, distortions. This response went beyond n.e.c., became subject to quantitative 15 CFR Part 377 the scope of this review-. limitations with export quotas A major concern of the trade Removal of Quantitative Limitations on established at historical levels.On April association was that paraffluc naphthas Exports of Certain Low-Octane, High- 7,1977 (42 FR 8395) the Department will be used in the manufacture of Paraffinic Naphthas announced that quantitative limitations gasoline. End-use regulatory controls based upon the historical pattern of would mandate compliance that these AGENCY: Office of E-port exports must be maintained for those Administration, International Trade naphthas capable of being used as a commodities will be used for Administration, Commerce. with petrochemical feedstock. fuel either alone or when blended Other comments included such ACTION: Final rule. other petroleum products, or which are- suitable for further refining or for use as statements as: a feedstock for petrochemicil or * Low octane, high-paraffinic SUMMARY: This action removes naphthas are finding less use as leaded quantitative limitations for the export of synthetic natural gas production. However, in that notice, those naphthas gasolines are phased out of use and low-octane, high-paraffinic naphthas for accordingly, these naphthas are in the production of petrochemicals. This wit certain distillation ranges and solvency values, or slupped in small plentiful supply with prices below world action is being taken in response to the market levels; European Communities' request and containers, may be'licensed~vithout quantitative limitations. * U.S. refineries, operating at following an-interagency review of In the June 23,1981, Federal Register considerably less than installed export restrictions on unfinished (45 FR 32431), the Department capacity, can produce additional naphthas used-for petrochemical announced that certain specialty naphthas without adversely affecting feedstocks..Liberalization of export naphthas, mineral spirits, solvents and output of transportation fuels; controls will have minimal impact on other finished light petroleum products o Elimination of export restrictions available domestidsupplies. n.s.p.f which are packaged and shipped will encourage the direction of these -EFFECTIVE DATE: July 28, 1981. in drums or containers not exceeding 55 products to the highest valued-uses and FOR FURTHER INFORMATION CONTACT. gallons, could be exported without being will encourage more efficient utilization Robert F. Kan, Acting Director, Short subject to validated licensing utilizing of U.S. supplies of hydrocarbons; Supply Division, Office of Export General License G-NNR. * Decontrol will increase petroleum Administration, U.S. Department of On March 18,1981, the Department industry efficiency, productivity, and Commerce,-P.O. Box7138, Washington, announced it was reviewing export competitiveness and, thus, benefit the D.C. 20230 (Telephone: 202-377-3795). restrictions on certain unfinished U.S. consumer, and SUPPLEMENTARY INFORMATION: naphthas used for petrochemcal * In a non-emergency supply feedstocks. This action was taken environment, export limitations are RulemakingRequirements because the Commission of the unnecessary to assure that domestic Section 13(a) of the Export European Communities (E.C.) requested demands for fuels and petrochemical Administration Act of 1979 (Pub. L 96- modification of U.S. export controls on products are satisfied themarket 72, to be codified at 50 U.S.C. app. 2401 naphthas capable of use in the will balance supply and demand. et seq.) *C'theAct") exempts regulations petrochemical industry. This concern In light of these comments, in an effort promulgated under the Act from the was expressed by the E.C. in to be responsive to the desires of the public participation in rulemaking consultations under GAT Article XXM European Communities, and after procedures of !he Administrative (1]. Also, as reported in the March 18 consultation with other interested Procedure Act. Section 13(b) of the Act, Notice, preliminary indications were agencies, the Department is removing all which expresses the intent of Congress that removal or modification of export quantitative export limitations on the that to the extent practicable limitations on these products would not specific naphthas which were subject to "regulations imposing controls on have a detrimental effect on domestic the public comment. This decision is in exports" be published in proposed form, energy supplies, and appearances were keeping with.the Administration's policy, 39126 Federal Register / Vol. 46, No. 147 / Friday, July 31, 1981 / Rules and Regulations

of removing burdensome export use, and stating that, to the best of his (A] An end-use statement by the regulations when no longer warranted. knowledge and belief, the commodity applicant in affidavit format indicating The removal of quantitative restraints will not be used as a fuel either alone or the name, location and type of business on the export of low-octane, high- when blended with other petroleum of the end-user, and the nature and paraffinic (65% or higher) naphthas is products, nor will it-be used as a identity of the petrochemical to be made effective Immediately as of the refinery feedstock or for synthetic produced from the Group N-3 effective date stated above. natural gas production, nor will it be commodity; and The Department has further substituted for a commodity which will, (B] A published technical data sheet determined that this action will not be so used; and or ati independent inspector's certificate adversely affect domestic energy (B) A published technical data sheet (unless one has previously been of analysisof the product to be exported supplies, nor will foreign demand have a verifying the paraffinic content using serious inflationary impact. This action submitted) or independent inspector's is considered to be in the national certificate of analysis of the product to established ASTM tests. interept by expanding markets for the be exported which clearly indicates that domestic industry. Should this action the commodity is properly classifiable 2. Supplement No. 2 to Part 3771s have an adverse effect on available under Petroleum Commodity Group N-2. amended by revising Group N-1, by domestic energy supply, either directly (iii) Group N-3. An application for a adding a new Group N-3 following or indirectly, exporters are placed on validated license to export a commodity Group N-2, and by revising the notice that this liberalization action can from Petroleum Commodity Group N-3 introductory language that precedes the be swiftly reversed. must be submitted with the country quotas for Group N-i, as documentation required.by § 377.6(e)(1) follows: PART 377-SHORT SUPPLY (i), (i), and (iv), and: CONTROLS AND MONITORING Supplement No. 2 to Part 377.--Petroleum and PetroleumProducts Subject to Short Supply Accordingly, Part 377 of the Export Licensing Controls AdministrationRegulations (15 CFR -Part 377) is amended as follows: 2 1. Sections 377.6(d)[7) and 377.6(e)(9) B No.' Commodity description Unit of are revised as follows: Schedule quantlityll §377.6 Petroleum and petroleum Petroleum products subject to validated licensing and historical quotas products. * * * * */ Group N-i: 475.3500 ...... Naphtha, mineral spirits, solvents and other finished right petroleum products Barrel. (d) *** n.s.p.f., which are (a) * capable of being used as a fuel, either alone or (7) GroupsN-i, N-2 andN-3. An when blended with other petroleum products, or (b) suitable for use In reflnory application for a validated license to processing or synthetic natural gas production, but excluding (i) naphthas having a distillation dry point of 440' F or more, or (2) naphthas having a export a commodity from Petroleum Kaurt-Butanol value of less than 35 as determined by the ASTM D-1133 Test Commodity Group N-1, N-2 or N-3 as Method. established in Supplement No. 2 will be 475.6781.. .. considered if submitted'with supporting documentation as required by 377.6(e)(9) by the date specified in Supplement No. Petroleum products subject to vaidated licensing but not quotas 2. Applications to export commodities from Group N-1 will be considered only to the extent of an exoorter's quota Group N-3: share'for such commodity. Applications 475.3500 ...... Low-octane, high-parafinc naphthas (65% or higher paraffin content as deter. Barol, to export commodities from Group N-2 mined-by the ASTM D-1319, D-1491 or D-1492 test methOds) suitable for feedstock for petrochemical production. and N-3 will be considered without 475.6781 regard to quota limitation. 431.0290 -

(e) * * * ISchedule e Nos. are provided only as a guide to proper completion of the Shipper's Export Declaration, Form No. 7525 V. (9) GroupsN-i, N-2 and N-3.-(i) 2Commodity description determines the product under control. Group N-1. An application for a 'Report commodities in units of quantity indicated. validated license to export a commodity from Petroleum Commodity Group N-1 Quarterly Country Quotas determined by ASTM D1133 Test must be submitted with the same Method. Country QuotasFor Group N-1 * * * * * documentation required by § 377.6(e)(1), except the affidavit described in Schedule B. No. 475.3500, Schedule B. § 377.6(e)(1)(iii) is not required. No. 475.6781, Naphtha, mineral spirits, Drafting Information' (ii) Group N-2. An application fOr a solvents, and other finished light The principal author of these rules Is validated license to export a commodity petroleum products, n.s.p.f., which are Robert F* Kan, Acting Director, Short from Petroleum Commodity Group N-2 (a) capable of being used as a fuel, Supply Division, Office of Export must be submitted with the either alone or when blended with other Administration. documentation required by petroleum products, or (b) suitable for (Secs. 7,12,13,15, and 21, Pub. L. 98-72, 60 § 377.6(e)li)(i), (ii), and (iv) and: use in refinery processing or synthetic U.S.C. App. 2401 et seq., E.O. 12214 (45 FR (A) An end-use statement by the natural gas production, but excluding (1) 29783, May 6, 1980]: sec. 103, Pub. L, 94-101, applicant in affidavit format indicating. naphthas having a distillation dry point 42 U.S.C. 6212; Department Organization the name, location and type of business of 440°F. or more, or (2) naphthas having Order 10-3 (45 FR 6141, January 25, 1980); of the end-user, the nature of the end- a Kauri-Butanol value of less than 35 as International Trade Administration .1 Federal Register / Vol. 46, No. 147 / Friday, July 31, 1981 / Rules and Regulations 39127 "

Organization and Function Order 41-1 (45 FR by Upjohn along with that available in can cause abortion and bronchiospasms.- 11862, February 22,1980) and 41-4 (45 FR the published literature demonstrate no Accidental spillage on the skin should 65003, October 1,1980)) concern for carcinogenic potential of the be washed off immediately with soap Dated. July 28,1981. drug and are adequate to satisfy the and water. Use of this product in excess William V. Sladmore, agency's general food safety of the approved dose may resuirin drug Director,Office of ExportAdministration. requirements. Because the dose of the residues. Do not administer to pregnant (FR Doc. 81-22375 Filed 7-28-81L 4:9 pml new claim will not exceed the approved cattle unless abortion is desired. Do not BILLING CODE 3510-25-M dosage (25 milligrams) of dinoprost, data administer intravenously; thns may provided by the sponsor m the parent potentiate adverse reactions. DEPARTMENT OF HEALTH AND application and in the supplemental application support waiver of (d) HUMAN SERVICES requirement for a regulatory method for (Wi)Limitations. For use once as a this supplemental application. single intramuscular injection. Not for Food and Drug Administration The Bureau of Veterinary Medicine use in horses intended for food. Federal has determined pursuant to 21 CFR law restricts this drug to use by or on 21 CFR Part 522 25.24(d)(1](i) (proposed December 11, the order of a licensed veterinarian. 1979; 44 FR 71742) that this action Is of a Implantation or Injectable Dosage type that does not individually or Form New Animal Drugs ndt Subject to cumulatively have a significant impact (3)Feedlot cattle-i) Amount Five Certification; Dinoprost-Tromethamine on the human environment. Therefore, milliliters (equivalent to 25 milligrams of Sterile Solution neither an environmental assessment dinoprost), as a single injection. (i)Ini6cations. For its abortifacient AGENCY: Food and Drug Administration. nor an environmental impact statement is required. effect in feedlot cattle. ACTION: Final rule. In accordance with the freedom of (lii) Limitations.For mtramuscular use SUMMARY: The Food and Drug information provisions of Part 20 (21 only, during first 100 days of gestation. Administration (FDA) amends the CFR Part 20) and § 514.11(e](2)(ii) (21 Cattle that abort will abort within 35 animal drug regulations to reflect CFR 514.11(e]{2)(ii)), a summary of days after injection. Federal law approval-of a supplemental new animal -safety and effectiveness data and restricts this drug to use by or on-the drug application (NADA) filed by the information submitted to support order of a licensed veterinarian. Upjohn Co., providing for use of approval of this application may be seen Effective date. July 31, 1981. dinoprost tromethamme-njectable for in the Dockets Management Branch (Sec. 512(), 82 Stat. 347 (21 U.S.C. 360b(i)) abortion of feedlot cattle. HFA-305), Food and Drug Dated. July 24. 1981. EFFECTIVE DAT-: July 31; 1981. Administration, Rm. 4-62,5600 Fishers Gerald B. Guest, FOR FURTHER INFORMATION CONTACT: Lane, Rockvile, MD 20857, from 9 a.m. Acting Director,Bureau of Veterinary . William D. Price, Bureau of Veterinary to 4 p.m., Monday through Friday. Medicine. Medicine (HFV-123), Food and Drug This action is governed by the provisions of 5 U.S.C. 556 and 557 and is (' hoc.Do-Zc- TFld 7 3:-: e, am] Administration, 5600 Fishers Lane, BILLING CODE 4110-035- Rockville, MD 20857, 301-443-3442._ therefore excluded from Executive Order 12291 by section 1(a)(1) of the SUPPLEMENTARY INFORMATION: The Order. 21 CFR Part 522 Upjohn Co., Kalamazoo, Ml 49001, filed Therefore, under the Federal Food, a- supplemental NADA (108-901) Drug, and Cosmetic Act (sec. 512(i), 82 providing for intramuscular use of Implantation or Injectable Dosage Stat. 347 (21 U.S.C. 360bi))) ind under Form New Animal Drugs Not Subject dinoprost tromethamine for abortion of authority delegated to the Commissioner also holds To Certification; Iron Hydrogenated 'feedlot cattle. Upjohn of Food and Drugs (21 CFR 5.10 Dextran Injection approval for intramuscular use of the (formerly 5.1; see 46 FR 26052; May 11, in drug beef cattle, nonlactating dairy - 1981)) and redelegated to the Bureau of AGENCY. Food and Drug Administration. heifers, and mares for synchronization Veterinary Medicine (21 CFR 5.83), Part ACTION: Final rule. of estrus. The regulations are amended 522 is amended in § 522.690 by revising to reflect approval of the supplemental paragraphs (a), (b), (c), and (d)(1)(iii), by SUMMARY: The Food and Drug NADA. The regulations are further removing paragraph (d)(2)(iii)(e) and (I) Administration (FDA) amends the amended to delete the drug's chemical and redesignating (g) and (e), and by animal drug regulations to reflect name (currently listed m the U.S. adding-new paragraph (d)(3), to read as approval of a new animal drug Adopted Name] and to delete from the follows: application (NADA)filed by Wendt text of the individual approved uses Laboratories providing for safe and certain common warning and § 522.690 Dlnoprost tromethamine sterile effective use of an iron hydrogenated precautionary statements and solution. dextran injection for prevention or consolidate them in a "Special (a)Specifications. Each milliliter of treatment of iron deficiency anerma m considerations" paragraph. sterile solution contains the equivalent baby pigs. Under the Bureau of Veterinary of 5 milligrams of dinoprost. EFFECTIVE DATE: July 31,1981. Medicine's supplemental approval (b)Sponsor. See No. 000009 m policy (42 FR 64367; December 23,1977), § 510.600(c) of this chapter. FOR FURTHER INFORMATION CONTACT. this supplement involves a Category H (c) Special considerations.Women of Jack C. Taylor, Bureau of Veterinary change. Approval of this supplemental child-bearing age, asthmatics, and Medicine (HFV-136), Food and Drug application required a reevaluation of persons with bronchial and other Administration, 5600 Fishers Lane, the human safety data base for the drug respiratory problems should exercise Rockville; MD 20857, 301-443-5247. because-of the expansion of use into a extreme caution when handling this SUPPLEMENTARY INFORMATION: Wendt new production class (feedlot cattle) for product. Dinoprost tromethamine is Laboratories, Inc., 100 Nancy Drive, the abortifacient 'clan. Data provided readily absorbed through the skin and Belle Plaine, MN 56011, filed an NADA APPENDIX D: Modifying the List of Prohibited Exports from NPR

Federal Register / Vol. 50. No. 4 / Monday, January 7, 1985 / Proposed Rules 835

helium and any others), natural gasoline, Agricultural Marketing Service DEPARTMENT OF COMMERCE and related hydrocarbons (tar sands, International Trade Administration 7 CFR Part 920 asphalt, propane, butane, etc.), oil shale [Docket No. 41267-41671 and the products of such resources." has Kiwifruit Grown in California; 15 CFR Part 377 Since 1976, the Department Extension of Time for Filing of applied the NPRPA export prohibition to Comments Request for Public Comment on hydrocarbons, but not their derivatives. Revising the List of Commodities The commodities subject to the NPRPA AGENCY: Agricultural Marketing Service, Subject to the Naval Petroleum are listed below. USDA. Reserves Production Act of 1976 Schedule 8 Commodity Description ACTION: Extension of time for filing of AGENCY: Office of Industrial Resource Number comments. Administration, International Trade Administration, Department of 401.0110...... Benzene. 401.0120 . Toluene. Commerce. 401.0132 . Ortho-xylene. is ACTION: Notice of proposed rulemaking 401.0134. Para-xylene. SUMMARY: This extension of time 401.0139 . Other xylene. necessary to allow interested persons and request for public comment. 415.2400 . Helium. additional time to prepare and file 415.2900 ...... Hydrogen. SUMMARY: The Department issued a 417.2000 . Ammonia, aqueous. written comments on proposals Federal Register Notice of June 29, 1984 423.1010 . Carbon dioxide and carbon monoxide. designed to implement the newly 431.0210 ...... Outadiene. requesting comments on a proposal to 431.0220 . Butylene. established kiwifruit marketing order. lift the validated licensing requirement 431.0230 . Ethylene. These proposals include reporting, 431.0240 . Isoprene. on linear alpha olefins (49 FR 26751). 431.0250..... Propylene. inspection, and container requirements The Department received a number of 431.0270 . Linear alpha olefins (C-6 to C-30 range) and the establishment of expenses and 431.0295 . Acyclic organic compounds, ps.p.f. comments in response to this Notice. 475.0710 . Crude petroleum (including reconstituted an assessment rate for the 1984-85 fiscal Subsequent to the close of the comment crude petroleum), tar sands and crude period. period, while the Department was shale oil. 475.0710....-. Petroleum, partly refined tar further refining. reviewing the comments received, a 475.0720 . Distillate fueloils, having a Saybolt Universal DATE: The date by which written number of additional comments were viscosity at 100-F. of less than 45 sec- is which questioned the breadth onds. comments must be postmarked received 475.0740 ...... Distillate fueloils (No. 4 type) having a Say- extended to January 10, 1985. of the list of commodities subject to the bolt Universal viscosity at 100°F. of 45 seconds or more, but not more than 125 Naval Petroleum Reserves Production seconds. , ADDRESS: Interested persons may send Act (NPRPA) export prohibition. The list 475.0760 Fueloils. having a Saybolt Universal viscosity comments to the of commodities subject to the NPRPA at 100"F. of more than 125 seconds. four copies of written 475.1505...... Natural gas, methane and mixtures thereof Hearing Clerk, Room 1077-South was established in 1976, and has not (including liquefied natural gas and synthet- Building, U.S. Department of been reviewed since that time. The ic or substitute natural gas). from 475.1515...... Ethane with a minimum purity of 95 liquid Agriculture, Washington, D.C. 20250, Department is soliciting comment volume percent. where they will be available for the public as to whether this list of 475.1525 . Propane with a minimum purity of 90 Nquid commodities should be modified. volume percent. inspection during business hours. 475.1545.... Butane with a minimum purity of 90 liquid DATE: Comments must be received by volume percent. 475.1570 . Other natural gases (including mixtures), FOR FURTHER INFORMATION CONTACT: February 6, 1985. rns~p.f. and manufactured gas. William I. Doyle, Chief, Fruit Branch, ADDRESS: Comments may be mailed to: 475.2520 . Gasoline, motor fuel(including aviation). 475.2530 . Jet fuel, naphtha-type. Fruit and Vegetable Division, USDA, Department of Commerce, Resource 475.2550...... Jet fuel, kerosene-type. AMS, Washington, D.C. 20250, telephone Assessment Division, P.O. Box 663, 475.2560.... Other motor fuel(including tractor fuel and Washington, DC 20044. stationary turbine fuel). 202-447-5975. 475.3000 . Kerosene derived from petroleum, shale oil, FOR FURTHER INFORMATION CONTACT: natural gas, or combinations thereof of (exceptmotor fuel). SUPPLEMENTARY INFORMATION: Notice John Richards, Director, Office 475.3500 . Naphthas derived from petroleum, shale oil, was given of this proposed rulemaking Industrial Resource Administration, natural gas, or combinations thereof International Trade Administration (except motor fuel). in the Federal Register on December 19, 475.4000 . Mineral oil of medicinal grade derived from 202/377-4506). 1984 (49 FR 49302). The notice provided (Telephone: petroleum, shale oil or both. SUPPLEMENTARY INFORMATION: In 475.4100 .... Hydraulic fluids, including automatic transmis- an opportunity tO file written comments sionfluids. thereto by January 3, 1985. proposing revisions to the list of 475.4510 . Aviation engine lubricating oil, except jet commodities subject to the NPRPA engine lubrication oil. The time for the filing of written 475.4515 ..... Jet engine lubricating oil. (supplement No. 3 to 15 CFR Part 377 of diesel, and marine engine lubri- is hereby extended to January 475.4520 . Automotive, comments the Export Administration Regulations], cating oil. 10, 1985. 475.4525 . Turbine lubricating oil, including marine. commenters should note the following 475.4530 . Automotive gear oils. provisions related to the Administration 475.4550...... Steam cylinder oils. of Subjects in 7 CFR Part 920 475.4555...... Insulating or transformer oils. List of the NPRPA: 475.4560 . Quenching or cutting oils. The NPRPA prohibits the export of 475.4580 . Lubricating oils, n.s.p.f., except white mineral Marketing agreements and orders, any petroleum produced from the Naval oil. 475.5700 . Greases. California, Kiwifruit. Petroleum Reserves. Petroleum is 475.6710 . Carbon black feedstock oil. defined in that Act as including "crude 475.6720..... Natural gas liquids, including LPG, n.s.p.f. (Sec. 1-19, 48 Stat. 31, as amended; 7 US.C. 475.6740 . Petroleum jelly and petrolatum, all grades. 601-674) oil, gases (including natural gas), natural 475.6750 . White mineral oil, ecept medicinal grade. gasoline, and other related 475.6781 . Other non-lubrcating and non-fuelpetroleum Dated: January 3,1985. hydrocarbons, oil shale, and the oils, n.s.p.f. Thomas R. Clark, 480.6540. Ammonia, anhydrous. products of any of such resources." The 492.5210 . Paraffin wax, crystalline, fully refined. Deputy Director,Fruit and Vegetable House Conference Report (No. 94-942) 492.5220...... Paraffin wax, crystalline, except fully refined. 492.5240 . Paraffin wax, all others (including microcrys- Division,Agricultural Marketing Service. on the NPRPA expands the definition to talline wax). [FR Doc. 85-573 Filed 1-4-85; 11:45 am] include "crude oil, gases of all kinds 511.2500 . Paving mixtures, bituminous, based on as- phalt and petroleum. BILLING CODE 3410-02-M (natural gas, hydrogen, carbon dioxide, 836 Federal Register / Vol. 50, No. 4 / Monday, January 7, 1985 / Proposed Rules

Schedule B C Communications from agencies of the Dated: January 2,1985. Commodity Description Number United States Government or foreign John A. Richards, 517.5120 . Petroleum coke, calcined. governments will not be made available Director,Office of IndustrialResource 521.1120 . Petroleum asphalt. for public inspection. Administration. 521.3150 . Petroleum coke, except calcined. The public record concerning this [FR Doc. 85-331 Filed 1-4-85; 8:45 aml Notice will be maintained in the BILLING CODE 35N-DT-M The NPRPA is currently administered International Trade Administration by the requirement that a non-Naval Freedom of Information Records Reserve affidavit (attesting that the DEPARTMENT OF THE TREASURY Inspection Facility, Room 4001-B, U.S. commodity to be exported was not Internal Revenue Service Department of Commerce, 14th Street produced from a Naval Reserve resource] accompany a validated license and Pennsylvania Avenue, N.W., 26 CFR PARTS 1, 3.1, and 54 application. For the export of those Washington, DC 20230. Records in this commodities not subject to validated facility may be inspected and copied in [LR-216-84] licensing, the affidavit must be retained accordance with regulations published Taxation of Fringe Benefits; Proposed in the exporter's files. in Part 4 of Title 15 of the Code of Rulemaking The Department is proposing to limit Federal Regulations. Information about the applicability of the NPRPA to those the inspection and copying of records at AGENCY: Internal Revenue Service, commodities currbntly subject to a the facility may be ,obtained from Treasury. Patricia L. Mann, the International validated export license (Supplement ACTION: Notice of Proposed Rulemaking Trade Administration Freedom of No. 2 to 15 CFR Part 377, Commodity by cross-reference to temporary Groups A through N). Those Information Officer, at the above regulations. commodities described in Croup 0 in address or by calling 202/377-3031. Supplement No. 2 to 15 CFR 377 which Rulemaking Requirements: SUMMARY: In the Rules and Regulations are presently subject to the ITA has determined that this portion of this issue of the Federal requirements of general license, G-NNR proposed rule is-not a major rule within Register, the Internal Revenue Service is on export, would then be eligible for the meaning of section 1 of Executive issuing temporary regulations relating to export under general license G-DEST. Order 12291 because it is not likely to the taxation of fringe benefits. The text Of particular interest to the result in (1) an annual effect on the of those temporary regulations also Department are comments directed to economy of $100 million or more; (2) a serves as the comment document for the administrative burden or difficulty of major increase in costs or prices for this notice of proposed rulemaking. establishing whether a product is consumers, individual industries, DATES: Written comments and requests derived from Naval Reserve petroleum Federal, State, or local government for a public hearing must be delivered for purposes of the NPRPA affidavit, and by March 8, 1985. The' regulations are whether the removal of restrictions on a agencies, or geographic regions; or (3) significant adverse effects on proposed to be effective as of January 1, product would lead to the significant 1985. exploitation of Naval Reserve petroleum competition, employment, investment, ADDRESS: Send comments and requests as a source of supply for export markets. productivity, innovation, or in the ability for a public hearing to: Commissioner of Parties submitting comments are asked of United States-based enterprises to Internal Revenue, Attention: CC:LR:T to be as specific as possible. However, compete with foreign-based enterprises LR-216-84), Washington, D.C. 20224. respondents are reminded that the in domestic or export markets. Department is soliciting only Therefore, a Regulatory Impact Analysis FOR FURTHER INFORMATION CONTACT: information that may be used publicly. will not be prepared. Annette J. Guarisco of the Legislation No "confidential business information" and Regulations Division, Office of The General Counsel of the Chief Counsel, Internal Revenue will be accepted. Any information so Department has certified to the Small designated will be returned to the Service, 1111 Constitution Avenue, NW, Business Administration that this commenter. Washington, D.C. 20224, Attention: proposed rule will not have a significant After receiving public comments, the CC:LR:T (202) 566-3918 (not a toll-free economic impact on a substantial International Trade Administration will call). make a decision regaroIing this matter number of small entities because it SUPPLEMENTARY INFORMATION: removes administrative burdens rather and-issue an appropriate notice in the Background Federal Register. The period for than imposing them. submission of comments will close on The recordkeeping requirement The temporary regulations in the (30 days from the publication of this associated with this proposed rule has Rules and Regulations portion of this notice). All comments received before been cleared under OMB control no. issue of the Federal Register amend the close of the comment period will be 0625-0104. Parts 1, 31, and 54 of Title 26 of the Code considered by the Department. While of Federal Regulations. The temporary comments received after the end of the List of Subjects in 15 CFR Part 377 regulations are designated by a "T" comment period will be considered if Exports. following their section citation. The final possible, their consideration cannot be regulations, which this document assured. It is the Department's intention Authority: Secs. 203, 206, Pub. L. 95-223, as proposes to base on those temporary to announce its decision in the Federal amended (50 U.S.C. 1702, 1704); E.O. 12470 of regulations, would amend Parts 1, 31, Register within 30 days of the close of March 30, 1984 (49 FR 13099, April 3, 1984); and 54 of Title 26 of the Code of Federal the comment period. Sec. 103, Pub. L. 94-163 as amended (42 Regulations. Public comments will become a matter U.S.C. 6212): F.O. 11912 of April 13, 1976 (41 The regulations provide guidance on of public record, and will be available FR 15825, as amended); Section 201(10), Pub. the-treatment of taxable and nontaxable for public inspection and copying. L. 94-258 amending 10 U.SC. 7430. fringe benefits, including the valuation 19522 Federal Register / Vol. 50, No. 90 / Thursday, May 9, 1985 / Rules and Regulations

SUMMARY: On January 7, 1985, the associated with this rule has been The Department received comments Department of Commerce published in cleared under OMB control No. 0625- from eight companies supporting the the Federal Register (50 FR 729) an 0001. removal of certain chemical interim rule which lifted short supply 15 CFR Part 377 commodities from the list of validated licensing requirements for the List of Subjects in commodities subject to the NPRPA. export of linear alpha olefins and other Exports. Accordingly, we have reviewed the need acyclic organic compounds. The public Issued: April 17, 1985. to apply NPRPA requirements to these was invited to comment on this interim John A. Richards, petroleum-based chcmical commodities final rule for 30 days. During this period, Director,Office of IndustrialResource contained in Group Q. We have the Department received comments from Administration. determined that these commodities are four companies all favoring the interim highly refined down-stream products of rule but requesting clarification Accordingly, Part 377 of the Export the crude petroleum from which they are regarding the scope of products included Administration Regulations is amended produced. It is therefore highly unlikely under Group N. In order to respond to to read as follows: that removal of NPRPA export these concerns, the Department is PART 377-[AMENDED] restrictions on these commodities would modifying the interim rule to limit Group significantly affect the exploitation of N only to naphthas classified under 1. The authority citation for Part 377 is Naval Reserves petroleum as a source of Census Schedule B No. 475.3500. revised to read as follows: supply for export. The Department is, Furthermore, through a related rule Authority: Secs. 203, 206, Pub. L. 95-223, as therefore, issuing this rule in final form, published today, linear alpha olefins amended (50 U.S.C. 1702, 1704); E.O. 12470 of removing these commodities from Group and other acyclic organic compounds March 30, 1984 (49 FR 13099, April 3,1984); Q and from Supplement No. 3. are no longer subject to the export Presidential Notice of March 28, 1985 (50 FR EFFECTIVE DATE: May 9, 1985. restrictions of the Naval Petroleum 12513, March 29, 1985); sec. 103, Pub. L. 94- Reserves Production Act and may be 163 as amended (42 U.S.C. 6212); E.O. 11912 FOR FURTHER INFORMATION CONTACT. exported under general license G-DEST. of April 13, 1976 (41 FR 15825, as amended); John A. Richards, Director, Office of sec. 201(10), Pub. L. 94-258 amending 10 Industrial Resource Administration, U.S. EFFECTIVE DATE: May 9, 1985. U.S.C. 7430. Department of Commerce, Washington, FOR FURTHER INFORMATION CONTACT. 2. Group N in Supplement No. 2 is DC 20230 (Telephone: 202/377-4506). John A. Richards, Director, Office of revised to read as follows: Industrial Resource Administration, U.S. SUPPLEMENTARY INFORMATION: Department of Commerce, Washington, Schedule Commodity descrption Unit of Rulemaking Requirements DC 20230 (Telephone 202-377-4506). 8 No. C d pquantity (1) The Department has determined SUPPLEMENTARY INFORMATION: Group N that this final rule relieves a restriction, Rulemaking Requirements and therefore, pursuant to section 475.3500 Naphthas, derived from petroleum, Bbl. (1) The Department has determined shale oil, or both but excluding ape- 553(d)(1) of the Administrative that this final rule relieves a restriction, cialty naphthas which are packaged Procedure Act, it is effective and exported in containers not ex- immediately upon publication. and therefore, pursuant to section ceeding 55 U.S.gallons per contain. 553(d)(1) of the Administrative er. (2) Because this rule is not likely to Procedure Act, it is effective result in (a) an annual effect on the economy of $100 million or more; (b) a immediately upon publication. [FR Doc. 85-11314 Filed 5-8-85; 8:45 am] major increase in costs or prices for (2) Since notice and opportunity to BILUNG CODE 3S510-OT-M comment were not required by the consumers, individual industries, Administrative Procedure Act or any Federal, State, or local government other law, this rule is not subject to the 15 CFR Part 377 agencies, or geographic regions; or (c) requirements of the Regulatory significant adverse effects on Flexibility Act (5 U.S.C. 601, et seq.) [Docket No. 41267-5057] competition, employment, investment, (3) The Department has determined productivity, innovation, or in the ability that this regulation is not a major rule List of Commodities Subject to the of United States-based enterprises to Reserves Production within the meaning of section 1 of Naval Petroleum compete with foreign-based enterprises Executive Order 12291 because it is not Act of 1976 in domestic or export markets, it is not a likely to result in (1) an annual effect on AGENCY: International Trade major rule within the meaning of section the economy of $100 million or more; (2) Administration, Commerce. I of Executive Order 12291. Therefore, a final Regulatory Impact Analysis will a major increase in costs or prices for ACTION: Final rule. consumers, individual industries, not be prepared. Federal, State or local government SUMMARY: On January 7, 1985, the (3) The General Counsel of the agencies, or geographic regions; or (3) Department of Commerce published in Department has certified to the Small significant adverse effects on the Federal Register (50 FR 835) a notice Business Administration that this rule competition, employment, investment, requesting public comment on a will not have a significant economic productivity, innovation, or in the ability proposal to revise the list of impact on a substantial number of small of United States-based enterprises to commodities subject to regulations that entities because it removes compete with foreign-based enterprises implement the Naval Petroleum administrative burdens rather than in domestic or export markets. Reserves Production Act of 1976 imposes them. As a result, no Regulatory Therefore, a Regulatory Impact Analysis (NPRPA). Comments were solicited on Flexibility Analysis was prepared. will not be prepared. the proposal to remove from NPRPA (4) This rule reduces a burden under (4) This rule reduces a burden under requirements those commodities listed the Paperwork Reduction Act by the Paperwork Reduction Act by in Group Q in Supplement 2 to Part 377 eliminating the need for a validated eliminating the need for a validated of the Export Administration license and a required affidavit. The license. The reporting requirement Regulations. information collection activities Federal Register / Vol. 50, No. 90 / Thursday, May 9, 1985 / Rules and Regulations 19523 associated with this rule have been Schedule There was no particular reason for this cleared under OMB control Nos. 0625- 8 No. Commodity description difference and it caused confusion 0001 and 0625-0104. 431.0250 Propylene. concerning the filing of appeals. 431.0270 Linear alpha olefins (C-6 to C-30 range). Accordingly, the Board is amending its List of Subjects in 15 CFR 431.0295 Acyclic organic compounds, n.s.p.f. Part 377 regulations to conform the time periods Exports. under the two Acts. The new 60-day Issued: April 17, 1985. time period for appeals to the Board John A. Richards, [FR Doc. 85-11313 Filed 5-8-85; 8:45 am] from decisions under the Railroad Unemployment Insurance Act shall Director,Office of Industrial BILLING CODE 3510-DT-M Resource apply with respect Administration. to decisions issued by the Bureau of Hearings and Appeals Accordingly, Part 377 of the'Export RAILROAD RETIREMENT BOARD on and after the date of publication of Administration Regulations is amended this final rule. as follows: 20 CFR Parts 260 and 320 In addition, where an appellant has been unavoidably prevented for good PART 377-[AMENDED]. Appeals Procedure Under the Railroad cause from filing an appeal within the 1. The authority citation for Part 377 is Retirement and Railroad allowable time period, the amendments revised to read as follows: Unemployment Insurance Acts provide a mechanism whereby the appellant may request an extension of AGENCY: Railroad Retirement Board. Authority: Secs. 203, 206, Pub. L 95-223, as time to file. amended (50 U.S.C. 1702, 1704): E.O. 12470 of ACTION: Final rule. March 30, 1984 (49 FR 13099, April 3,1984); The Board has determined that this is Presidential Notice of March 28, 1985 (50 FR SUMMARY: The Railroad Retirement not a major rule for purposes of 12513, March 29,1985); sec. 103, Pub. L.94- Board (Board) hereby amends § § 260.9 Executive Order 12291. Therefore, no 163 as amended (42 U.S.C. 6212]; E.O. 11912 and 320.39 of its regulations to make Regulatory Impact Analysis is required. of April 13, 1976 (41 FR 15825, as amended); minor revisions in the procedures for Sectionse260.9(c) and 320.39 contain sec. 201(10), Pub. L.94-258 amending 10 reporting requirements that are subject U.S.C. 7430. filing appeals to the Board under the Railroad Retirement and Railroad to OMB review under the Paperwork Supplement No. 2-Amended] Unemployment Insurance Acts. The Reduction Act of 1980. In accordance amendments conform with section 3504(h) of that Act, the 2. Group Q in Supplement No. the procedures for 2 to appeals to the Board under the two Acts board will submit these reporting Part 377 is amended by removing the requirements to OMB for review. following entries: by shortening the appeal period applicable to Railroad Unemployment List of Subjects Insurance Act appeals from the current Schedule Unit of 20 CFR Part260 B No. Commodity rp quantity 90 days to 60 days and by adding language to the regulations under both Railroad employees, Railroad Group 0 Acts to permit the Board to waive retirement, Railroads. compliance with the requirement to file 401.0110 Benzene ...... Gal. 20 CFR Part320 401.0120 Toluene ...... Gal. within the appeals period where the 401.0132 Ortho-xylene ...... Gal. appellant requests an extension based Railroad employees, Railroad 401.0134 Para-xylene ...... Gal. 401.0139 Other xylem ...... Gal. on a showing of good cause for failure to unemployment insurance, Railroads. make a timely filing. 431.0210 eutad e ne...... Lb. PART 260-[AMENDED] 431.0220 Butylene ...... Lb . EFFECTIVE DATE: May 9, 1984. 431.0230 Ethylene ...... Lb. FOR FURTHER INFORMATION CONTACT. - Title 29 CFR Chapter II, is amended as 431.0240 Isoprene ...... Lb. 431.0250 Propylene ...... Lb . Steven A. Bartholow, Deputy General follows: 431.0260 Tetrapropylene ...... Lb. Counsel, Railorad Retirement Board, 844 1. The authority citation for 20 CFR 431.0270 Linear alpha olefins (C-6 to C-30 Lb. range). Rush Street, Chicago, Illiniois 60611, Part 260 continues to read as follows: 431.0295 Acyclic organic compounds n.a.p.f ...... Lb. (312) 751-4935 (FTS 387-4935). Authority: 45 U.S.C. 231f(b)(5). SUPPLEMENTARY INFORMATION: The 2. Section 260.9(c) of the Board's Board published this rule as a proposed regulations is revised to read as follows: Supplement No. 3-[Amendedi rule on March 12, 1985, and requested public comment (50 FR 9810-9811). No § 260.9 Final appeal for a decision of the 3. Supplement No. 3 to Part 377 is comments were received by the Board referee. amended by removing the following on the proposed rule. entries: The Board's regulations governing (c) Timely filing. The right to further appeals from decisions issued by the review of a decision of a referee shall be Board's Bureau of Hearings and Appeals forfeited unless formal final appeal is B No. Commodity description (20 CFR 260.9 and 320.39), previously filed in the manner and within the time provided that appeals to the Board prescribed in § 260.9(b). However, when 401.0110 Benzene. 401.0120 Toluene. under the Railroad Retirement Act be a claimant fails to file an appeal before 401.0132 Ortho-xylene. filed within 60 days after notice of the the Board within the time prescribed in 401.0134 Para-xylene. 401.0139 Other xylene. decision by the Bureau of Hearings and this section, the Board may waive this Appeals, whereas appeals from such requirement if, along with the final 431.0210 Butadiene. decisions under the Railroad appeal form, the appellant in writing 431.0220 Butylene. 431.0230 Ethylene. Unemployment Insurance Act were requests an extension of time. The 431.0240 lsoprene. required to be filed within 90 days. request for an extension of time must APPENDIX E: Allowing Exports of Linear Alpha Olefins

Federal Register / Vol. 49, No. 127 / Friday, June 29, 1984 / Proposed Rules 26751

Sacramento, CA, and Reno, NV, and DEPARTMEMT OF COM.,ERCE considered by the Department. While establish a segment between Los ramments received after the end of the Angeles, CA, aud Reno, NV Efficiency 15 CFR Part 377 comment period will be considered if is improved through the codification of a [Docietl No. 40677-40771 possible. their consideration cannot be route that is presently being requested assured. routinely by pilots. Also, a reduction of Request for Public Comment of Ufting Public cumments will become a matter air traffic controllers' workload is the Short Supply Validated Licensing of public record, and will be available realized by elimnating the need for Requirement for Export, of Linear for public inspection and copyig. radar vectoring and route monitoring Alpha Olefina and Other Products Commumncations from agencies of the procedures along the route. Section Without a L'r!cly Energy End Use United States Government or foreign 75.100 of Part 75 of the Federal Aviation Sovernments will not be m3de available Regulations was republished in AGENCV: Office of Industrial Resource for public inspection. Handbook 7400.6 dated January 3,1984. Administration, International Trade The public record concermg this Administration, Department of List of Subjects m 14 CFR Part 75 Notice will be maintained in the Commerce. International Trade Administration Aviation safety, Jet routes. ACTio : Advanced notice of proposed Freedom of Information Records The Proposed Amendment rulemang and request for public Inspection Facility, Room 401-B U.S. comment. Department of Commerce, 14th Street PART 75--AM.iENDED] SUN.KMARV: A number of ey;porters have and Pennsylvama Avenue, N.W., Washington, DC 20239. Records in tins Accordingly, pursuant to the authority requested that the Department of Commerce consider the removal of facility may be inspected and copied in delegated to me, the Federal Aviation accordance with reglations published Administration proposes to amend linear alpha olefins as a product subject to short supply licensing controls (15 in Parr4 of Title 15 of the Code of § 75.100 of Part 75 of the Federal Federal Re-lations. Information about Aviation Regulations (14 CFR Part 75) as CFR 377.6]. Such commodities are follows: included in Group N of Supplement No. the inspection and copyi. of records at 2 to Part 377 of the E.%port the facility may be obtained from §75.100 [Amended] Administration Regulations and are Patricia L. Mann, the International Trade Administration Freedom of -7[Amended] included within an outdated Schedule B Number (431.0290). In 19832 the Census Information Officer, at the above By deleting the words "Oaland, CA. via address or by calling 202/377-3931. Sacramento, CA." and substituting the words Bureau assigned a new number to linear Autoexity: Se:; 233, 1r3 Pub. L 93-223, as "Los Angeles, CA. via INT Los Angeles alpha olefins (431.0270). f 319 T(304M) and Avenal. CA,145T(129M) Linear alpha olefins do not have a arrere (69 U.S.C 170 2,17GI; E.O. 12470 o radials; INT Avenal 145*T(129'M and Friant likely end-use as an energy source. At Ma,1cica 3%1233-1 (49 FR 13559, Ap-il 3. I341; CA,181'T(1WNM) radials; Fnant;" present, linear alpha olefins require S2c. 103. Pb. L 9,4-163 a3 amended (42 (Sees.307(a) and 313(a), Feleral Aviation Act validated export licenses as reined U.S.C. .-2121; E.O. 11912 of Apr-il 13.1976 (41 FR 15,2i, a- amend.zd) Section .1 (10), Pub of 1958( 49 U.S.C. 1348(a) and 1354(a)); (49 petroleum products under Group N. If U.S.C. 105(g) (Revised, Pub. L 97-449, January L T-1-2:3 i.nrnlin3 10 U.S.C. 7439. these products are removed from Group Dated: lun2 23,1934. 12,1933)); and-14 CFR 11.65) N, validated licensing requirements The FAA has determined that this would be eliminated. Accordingly. the John A. Ri-hird3. Dirz:l-i, Oflice e, u~~ev proposed regulation only involves an Department is soliciting comments from A4dmw .icatioz. established body of technical the public as to whether these regulations for which frequent and commodities and comparable CILW.3 CC:FT ,='12-Ur-M routine amendments are necessary to commodities in Group N without a keep them operationally current. It, lilhtely enerNy end-use should continue therefore: (1) Is not a "major rule" under to be included in the list of refined SECURMIES AM;D ECHANGE *Executive Order 12291; (2) is not a petroleum products subject to licensing. "significant rule" under DOT Regulatory )ATE. Comments must be received by COMMISSIONl Policies and Procedures (44 FR 11034 July 13,1984. 17 CFR Pat 240 February 26,1979); and (3) does not ADDRESS Comments may be mailed to: warrant preparation of a regulatory Department of Commerce, Resource [Rclasa No.24-21079 S7-24-34J evaluation as the anticipated impact is Assessment Division, PO Box 663, so minimal. Since tis is a routine matter Washington, D.C. 20044. Two-Tier Tender Offer Priing and that will only affect air traffic FOR FURTHER INFORMATION CONTACr. Non-Tender Offer Purchase procedures and air navigation, it is John Richards, Director, Office of Programs-Advance Notice of certified that tins rule, when Industrial Resource Administration, Possible Commission Actions promulgated, will not have a significant International Trade, Administration AGEN'cY. Securities and F:changae economic impact on a substantial (Telephone; 2021/377-4506). number of small entities under the Commission. criteria of the Regulatory Flexibility Act. SuFFLer.1EITARY !IFORoATION: After ACToI,:f Request for public comment. / receivi n public comments the Issued m Washington, DC, on June 22. International Trade Adrminstration will SU?.1ARY. The Commission is studying 1984. make a decision regarding this matter two-tier pncing in tender offers and non- and issue an appropriate notice in the tender offer purchase programs. This John W. Baier, Federal Register. The period for review has evolved from Acting Manager,Airspace.-Rules and submission of comments will close tvo recommendations proposed to the AeonauticalInfozmaoion Diavison. weeks from the publication of tlus Commission by its Advisory Committee [ER o= 84-17M Filed e-25-AR m4s aml notice. All comments received before on Tender Offers. The Commission is BILLNG CODE 4910-13-M the close of the comment period will be requesting public comment on these Federal Register / Vol. 50, No. 4 / Monday, January 7, 1985 / Rules and Regulations 729 substantial number of small entities published today, ITA is soliciting Procedure Act (5 U.S.C. 553), is under the criteria of the Regulatory comment on a proposal to revise the list unnecessary because the public has had Flexibility Act. of commodities currently subject to an opportunity to provide comments on List of Subjects in 14 CFR Part 71 Naval Petroleum Reserves Production this action in response to the advanced Act requirements.) notice of proposed rulemaking, and Control zone, Aviation safety. DATES: This rule is effective January 7, those comments all favor removal of one Adoption of the Amendment 1985. Comments must be received by or more validated licensing February 6, 1985. requirements. It has also been Accordingly, pursuant to the authority FOR FURTHER INFORMATION CONTACT. determined that the requirement of 5 delegated to me, § 71.171 of Part 71 of John Richards, Director, Office of U.S.C. 553(d) for a 30 day delay in the Federal Aviation Regulations (14 Industrial Resource Administration, effective date is inapplicable to this CFR Part 71) is amended, as follows: International Trade Administration action because it relieves a restriction (5 Portland, Oregon--Amendedl (Telephone: 202/377-4506). U.S.C. 553(d)(1)). In view of the finding By deleting the words, - * * and within 3 SUPPLEMENTARY INFORMATION: On June that notice and comment are miles each side of the 119' and 299* bearing 29, 1984, (49 FR 26751) an advanced' unnecessary, the Regulatory Flexibility from the "LAKER LOM" and replacing with notice of proposed rulemaking was Act does not apply (5 U.S.C. 603). the words, " * * and within 2 miles north published in the Federal Register The period for submission of and 3 miles south of the 299* bearing from the requesting public comment on the comments will close on February 6, LAKER LOM (lat. 45' 32' 29" N., long. 122' 27' removal of the validated licensing 1985. All comments received before the 40" W) extending from the 5-mile radius to close of the comment period will be the LOM, excluding the portion within the requirement for linear alpha olefins and Troutdale, Oregon, Control Zone when it is other similar commodities. Fourteen considered by the Department. While effective." comments were received from the comments received after the end of the (Secs. 307(a) and 313(a), Federal Aviation Act public. All comments supported the comment period will be considered if of 1958 (49 U.S.C. 1348(a) and 1354(a)); (49 removal of the validated licensing possible, their consideration cannot be U.S.C. 106(g) (Revised, Pub. L 97-449, January requirement of linear alpha olefins. Six assured. 12, 1983)): and 14 CFR 11.69) of the commenters wrote in support of All public comments will become a Issued in Seattle, Washington, on the removal of the validated licensing matter of public record, and will be December 18, 1984. requirement on comparable available for public inspection and Wayne J.Barlow, commodities, known collectively as copying. Communications from agencies Acting Director,Northwest Mountain Region. acyclic organic compounds. Most of the United States Government or [FR Doc. 85-324 Filed 1-4-85; 8:45 am] commenters confirmed that linear alpha foreign governments will not be made LLUNG COOE 4910-13-M olefins and comparable commodities do available for public inspection. not have likely energy end-uses. They The public record concerning this rule recommend that the validated licensing will be maintained in the International DEPARTMENT OF COMMERCE requirement be lifted. Trade Administration Freedom of The International Trade Information Records Inspection Facility, International Trade Administration Administration, in consultation with Room 4091-B, U.S. Department of other U.S. agencies, has determined that Commerce, 14th Street and [Docket No. 41266-41661 commodities that are not likely to be Pennsylvania Avenue, N.W., Washington, DC 20230. Records in this 15 CFR Part 377 used as an energy source should be removed from the list of refined facility may be inspected and copied in Removal of the Short Supply Validated petroleum products that require a accordance with regulations published Licensing Requirement on Exports of validated license for export. As a result, in Part 4 of Title 15 of the Code of Linear Alpha Olefins and Other Acyclic linear alpha olefins and comparable Federal Regulations. Information about Organic Compounds commodities described as acyclic the inspection and copying of records at organic compounds are shifted from the facility may be obtained from AGENCY: Office of Industrial Resource Commodity Group N to Group Q set out Patricia L. Mann, the International Administration, International Trade in Supplement No. 2 to Part 377. These Trade Administration Freedom of Administration, Department of commodities are added to the list of Information Officer, at the above Commerce. hydrocarbons already a part of Group address or by calling 202/377-3031. ACTION: Interim rule with request for Q. Commodities in Group Q may be It has been determined that this action comments. exported under General License G-NNR, will have no significant impact on the unless they are derived from petroleum human environment. SUMMARY: The International Trade produced from a Naval Petroleum ITA has determined that this Administration, having solicited and Reserve. regulation is not a major rule within the reviewed public comments and As of the effective date the licensing meaning of section 1 of Executive Order consulted with other agencies.of the requirement for these commodities is 12291 because it is not likely to result in Government, has decided to remove removed. However, this change does not (1) an annual effect on the economy of linear alpha olefins and other acyclic affect any enforcement actions involving $100 million or more; (2) a major organic compounds from the list of violations of the licensing requirement increase in costs or prices for refined petroleum products subject to that may have occurred while it was in consumers, individual industries, validated licensing for export. This rule effect. Federal, State or local government implements the decision. As a result, This rule is issued as an interim final agencies, or geographic regions; or (3) these commodities may now be rule, but comments will be considered in significant adverse effects on exported under general license G-NNR, developing final regulations. It has been competition, employment, investment, unless they are derived from petroleum determined that a general notice of productivity, innovation, or in the ability produced from a Naval Petroleum proposed rulemaking, as set out in of United States-based enterprises to Reserve. (In a related issuance Section 553 of the Administrative compete with foreign-based enterprises 730 Federal Register / Vol. 50, No. 4 / Monday, January 7, 1985 / Rules and Regulations in domestic or export markets. adopting amendments to Rule 11Aa2-1 Therefore, a Regulatory Impact Analysis ("Rule") I under the Securities Exchange will not be prepared. Act of 1934 ("Act"),2 which establishes This rule reduces a burden under the procedures by which certain securities Paperwork Reduction Act by eliminating are designated as qualified for trading in the need for a validated license. The the National Market System ("NMS record keeping requirement associated 3. Supplement No. 3 to Part 377 is amended by revising the entry- Securities"). There are currently 1104 with this rule has been cleared under NMS Securities. The principal effects of OMB control no. 0625-0104. T NMS designation at this time are that List of Subjects in 15 CFR Part 377 designated OTC securities are subject to 431.0290 ...... Acetylene, and other hydrocar- lastsale reporting and firm quote Exports. bons. n.s.p.f. to read- requirements. Six months ago, the Accordingly, the Export 431.0295 ...... Acyclic organic compounds, Commission proposed amendments to Administration Regulations (15 CFR n.s.p.f. and by Inserting the entry- the Rule in response to a petition by the Parts 368-399) are amended as follows: 431.0270...... Linear alpha olefins (C-6 to C-30 National Association of Securities range) PART 377I-[AMENDED] after the entry reading- Dealers, Inc. ("NASD"), and solicited 431.0250...... Propylene comment thereon. Those amendments 1. In Supplement No. 2 to Part 377, would have expanded the Rule's Group N is revised to read as follows: Authority: Secs. 203, 206, Pub. L. 95-223, as qualification standards, and increased amended (50 U.S.C. 1702, 1704); E.O. 12470 of the number of over-the-counter ("OTC") Supplement No. 2 to Part 377 Petroleum March 30, 1984 (49 FR 13099, April 3, 1984); securities eligible for NMS designation. and Petroleum Products Subject to Short Sec. 103, Pub. L. 94-163 as amended (42 Supply Licensing Controls In the proposal release, the U.S.C. 6212); E.O. 11912 of April 13, 1976 (41 Commission noted that its monitoring of FR 15825, as amended); Section 201(10), Pub. L. 94-258 amending 10 U.S.C. 7430. trading in NMS Securities has shown that last-sale reporting had benefited the Group N Dated: January 2,1985.. markets for those securities. The John A. Richards, Commission also stated that it Director,Office of IndustrialResource preliminarily believed that a substantial Administration. 475.3500 ...... Naphthas, but excluding spe- Bbl. expansion of the NMS criteria may be 475.6781 ...... cialty naphthas which are [FR Doc. 85-330 Filed 1-4-85; 8:45 am] packaged and shipped In appropriate. The Commission today drums or containers not ex- BILLING CODE 3510-OT-M adopts the amendments proposed by the ceeding 55 U.S. gallons per NASD. These amendments make a total container and which will be exported in such drums or SECURITIES AND EXCHANGE of approximately 2500 OTC securities containers. eligible for NMS designation. COMMISSION ILBackground 17 CFR Part 240 2. In Supplement No. 2 to Section 11A(a)(2) of the Act directs Part 377, [Release No. 34-21583; File No. S7-787] Group Q is amended by revising the the Commission "to facilitate the establishment of a national market entry- Designation of National Market System system," and empowers the Commission Securities to designate.by rule "the securities or AGENCY: Securities and Exchange classes of securities qualified for trading 431.0290 ...... Acetylene ...... Lb. Commission. in the national market system." to read- 431.0295 ...... Acyclic organic compounds, Lb. ACTION: Adoption of final rule On February 17, 1981, the Commission n.s.p.f.. amendments. adopted the Rule to provide criteria and procedures by which certain securities SUMMARY: In response to a petition from traded exclusively in the OTC market by revising the entry- the NASD, the Commission is adopting were to be designated as NMS amendments to its rule governing the 3 Securities. The Rule employs a two- 4 designation of securities qualified for tiered approach for NMS designation. trading in a national market system. 431.0290 ...... High purity hydrocarbons, and These amendments substantially 475.2520 ...... blends of hydrocarbons used increase the number of '17 CFR 240.11Aa2-1 See Securities Exchange 475.2560 ...... for engine calibration, fuel certi- securities that Act Release No. 17549 (February 17,1981), 46 FR fication and other laboratory ap- are eligible for designation as National 13992 ("Rule IiAa2-1 Adoption Release"). plications in quantities of 10,000 gallons or less Market System Securities. 115U.S.C. 78a et seq., as amended by the to read- EFFECTIVE DATE: January 22, 1985. Securities Acts Amendments of 1975 ("1975 475.2520 ...... High purity hydrocarbons, and Amendments"), Pub. L. 94-29 (June 4,1975), 89 Stat. 475.2560 ...... blends of hydrocarbons used FOR FURTHER INFORMATION CONTACT: 97 [19751, U.S. Code Cong. & Ad. News 97. for engine calibration, fuel certi- Andrew E. Feldman, Esq., (202) 272- fication and other laboratory ap- 3 For a more extensive discussion of the plications in quantities of 2388, Room 5190, Division of Market background of Rule 11Aa2-1, see Securities 10,000 gallons or less Regulation, Securities and Exchange Exchange Act Release No. 15926 (June 15, 1979), 44 FR 36912, 26912-14 ("Rule 11Aa2-1 Proposal Commission, 450 Fifth Street, NW., Release"). and by inserting an entry reading- Washington, D.C. 20549. 4 Only OTC securities for which quotation SUPPLEMENTARY INFORMATION: information is disseminated in the NASD's electronic interdealer quotation system I. Summary ("NASDAQ") are eligible for designation. The Rule, moreover, provides for the removal of the NMS 431.0270 ...... Linear alpha olefins (C-6 to C- Lb. The Securities and Exchange designation "[ilfsuch security becomes listed and 30 range). Commission ("Commission") today is Continued APPENDIX F: Exporting Residual Fuel from California

Federal Register / Vol. 46, No. 13 / Wednesday, January 21, 1981 / Rules and Regulations 5865

Organization and Function Order 41-1, 45 FR covering western red cedar. In application be filed which heretofore 11862 (February 22,1980)). - administering these programs, it has would have been considered under that Issued in Washington, D.C. on January 14, noted that certain applications have special rule, it may now be considered 1981. presented persuasive reasons, not under the new exceptions criteria William V. Skidmore, explicitly contemplated by the unique established herein. Director,Office of ExportAdministration. hardship criteria, for considering the Rulemaking Procedure and Invitation to [FR Doc. 81-1984 Filed 1-19-M; &4fram] issuance of an export license outside the Comment I UNO CODE 3510-2f5M quota system. In the Department's experience, the express provisions of Section 13(a) of the Export this unique hardship criteria have Administration Act of 1979 (Pub. L.96- 72, to be codified at 50 U.S.C. App. 2401 15 CFR Part 377 tended to be particularly applicable to the period immediately following the et seq.) ("the Act") exempts regualtions Short Supply Controls; Establishment institution of export controls, but after promulgated under the Act from the of Criteria for Consideration of controls have been in place for a public participation in rulemaking Applications for Exceptions considerable period of time, the procedures of the Administrative hardship criteria have been less Procedures Act. Because they relate to a AGENCY: Office of Export applicable to the kinds of cases which foreign affairs function of the United Administration, International Trade might warrant consideration for the States, it has been determined that these Administration, U.S. Department of granting of an exception to the regulations are not subject to Commerce. regulations. Therefore, the Department Department of Commerce ACTION: Interim Rule with Invitation to has concluded that it should provide by Administrative Order 218-7 (44 FR 2082, Comment regulation a basis for the consideration January 9, 1979) and International Trade Administration Administrative SUMMARY: These regulations establish of exceptions to short supply export controls on grounds other than those Instruction 1-6 (44.FR 2093, January 9, the basis for the consideration of specified in the provisions on unique 1979) which implement Executive Order applications for exceptions to the hardship. 12044 (43 FR 12661, March 23, 1978), regulations governing exports of The Department has also noted that "Improving Government Regulations." commodities subject to short supply the types of exceptions applications- However, because of the importance export controls. They are intended to filled under short supply programs tend of the issues raised by these regulations supplement the regulations under which to vary significantly according to the and the intent of Congress set forth in short supply control programs are commodity under control. Consequently, section 13(b) of the Act, these administered without significantly while this rule establishes certain regulations are issued in interim form altering applicable program policies. general criteria applicable to all short and comments will be considered in DATES: These rules are effective on supply export control programs, developing final regulations. publication, but may be revised after irrespective of the commodity involved, The period for submission of comments are received. Comments must it also enumerates factors more comments will close March 23, 1981. be received by the Department by particularly applicable to the petroleum However, in order that they may be March 23, 1981. control program. given maximum consideration, persons ADDRESS: Written comments (five Hardship and exceptions applications wishing to comment are urged to submit copies) should be sent to: Mr. Robert F. for western red cedar are already their comments as soon as possible. All Kan, Special Assistant to the Director, provided for in the regulations. It is comments received before the close of - Short Supply Division, Office of Export anticipated that specific factors for the the comment period will be considered Administration, P.O. Box 7138, Ben consideration of applications for by the Department in the development Franklin Station, Washington, DC 20044, exceptions involving other commodities of final regulations. While comments (202) 377-3984. that may be made subject to short received after the end of the comment FOR FURTHER INFORMATION CONTACT:. supply export control in the future will period will be considered if possible, Mr. Robert F. Kan, Special Assistant to be issued at the appropriate time. their consideration cannot be assured. the Director, Short Supply Division, The establishment of these criteria for Public comments which are Office of Export Administration, P.O. the consideration of exceptions cases accompanied by a request that part or Box 7138, Ben Franklin Station, does not represent a change of policy by all of the material be treated Washington, DC 20044, (202) 377-3984. the Department and does not reflect any confidentially, because of its business change in the Department's proprietary nature or for any other SUPPLEMENTARY INFORMATION: On administration of current control reason, will not be accepted. Such September 25, 1974, the Department programs, including the petroleum short comments and materials will be published regulations establishing supply and the western red cedar returned to the submitter and will not be standards for the consideration of programs. Exporters are placed on considered in the development of the applications for relief from short supply notice that applications for licenses final regulations. export controls on grounds of unique considered under these criteria are All public comments on these hardship. These regulations, contained likely to be approved only under regulations will be a matter of public in'§ 377.3, remain in effect. With limited exceptional circumstances. record and will be available for public exceptions, they have been the sole This rule also revokes the special inspection and copying. In the interest of basis on which relief from short supply exception under the petroleum accuracy and completeness, comments controls have been granted. regulations applicable to residual fuel in written form are preferred. If oral Since publication of those regulations, oil refined on the West Coast from comments are received, they must be the Department has administered short California-origin crude petroleum. The followed by written memoranda (in five supply export control programs covering circumstances which gave rise to the copies) which will also be a matter of ferrous scrap (in 1973-74) and petroleum establishment of that special exception public record and will be available for and petroleum products, and a no longer exist. Furthermore, should an public review and copying. statutorily mandated control program 5866 Federal Register / Vol. 46, No. 13 / Wednesday, January 21, 1981 / Rules and Regulations

Communications from agencies of the application and state the precise (10) Exceptions Cases. An application United States Government or foreign reason(s) why he believes an exception for a validated license to export a governments will not be made available is warranted. Each such application will pertroleum commodity, other than crude for public inspection. be considered on a case-by-case basis petroleum, submitted under Section The public record concerning these and-will be approved only in 377.3(a)(2) will be considered under the regulations will be maintained in the exceptional circumstances and only if standards for exceptions cases set forth International Trade Administration the Office of Export Administration in § 377..3(c) and under the following Freedom of Information Records determines that granting of the factors, if applicable: Inspection Facility, Room 3012, U.S. requested exception would be consistent (i) Whether there is a practicable Department of Commerce, 14th Street with the national interest and the domestic market for the commodity; and Constitution Avenue, NW, purposes of the applicable short supply (ii) The level of domestic stocks of the Washington, D.C., 20230. Records in this control program. commodity proposed for export, both facility, including written public * * * * * nationally and in the area from which comments and hiemoranda summarizing (c) Standards for Exceptions Cases. In the export would take place, in relation the substance of oral communications, making a determination with respect to to normal levels; may be inspected and copied in an application for an exception, the (iii) Whether the applicant, for bona accordance with regulations published Office of Export Administration will fide business reasons other than export, in Part 4 of Title 15 of the Code of consider, in addition to the general (A) Refined (or fractionated), Federal Regulations. Information about guidelines of § 377.3(a)(2): (B) Purchased, or the inspection and copying of records at (1)Factors such as the following, to (C Is contractually obligated to the facility may be obtained from Mrs. the extent that they are relevant to a purchase the commodity proposed for Patricia L. Mann, the International particular case: export; Trade Administration Freedom of (i) Whether, for specific economic or (iv) Whether the commodity will be Information Officer, at the above technological reasons, the particular only temporarily exported (e.g., for address or by calling (202) 377-3031. materials to be exported cannot be convenience or increased efficiency of Accordingly, the Export practicably processed or untilized transporation) and will reenter the Administration Regulations, 15 CFR 368 within the United States; United States; et seq., are revised as follows: , (ii) The impact of the proposed export (v) Whether the export would be part 1. Section 377.2 is amended by on the adequacy of domestic supply; of a two-way transaction with Canada inserting a new paragraph (c)(2) and (iii)The probable impact on the or Mexico, which has not yet begun, renumbering the present paragraphs domestic economy, including consumer involving the import of an equal {c)(2) and (3) as (c)(3) and (4). and wholesale prices (nationally, quantity of the same commodity, to be regionally, or sectorally); initiated under either of the following § 377.2 Past participation Inexports circumstances: licensing method. (iv) The extent to which the proposed country of destination 'engages in (A) To meet an emergency shortage in equitable trade practices with respect to, the importing country, or (c) Submission of Statement of Past the United States and treats the United (B)To relieve a temporary lack of Participation. States equitably in times of short supply; practicable storage facilities in the v) The extent to which the proposed exporting country. (2) Unique or unusual factors. If there export would advance or impair specific (vi)If the proposed export is are any unique or unusual factors U.S. policy objectives (including those represented as an exchange, the extent affecting an exporter's history of exports set forth in statutes or in any to which: during the base period-such as international agreement to which the (A) The commodity to be imported is commencement or termination of export United States is a party); otherwise available for purchase on the activity, disruption of exports due to (vi) The extent to which the world market so that the export is not strikes, acts of God, or seasonal exceptions request arises from unique 'necessary for the import to take place, variations or supply-demand cycles circumstances and is unlikely to be and impacting his level of exports-which an repeated; (B) The export-import transaction exporter believes shouldbe taken into (vii) The extent to which the would result in a net gain or loss of consideration in the allocation of circumstances giving ise to the energy, as measured in quantity and/or quotas, these should be succinctly exceptions request were within the BTU content, to the United States. stated in a letter to be considered with control of the applicant; afid (vii) Whether the export would be the Past Participation Statement. (viii) Any additional factors part of a transaction involving a applicable to the particular commodity temporary import, which has not yet 2. Section 377.3 is amended by to be exported, as set forth elsewhere in begun, to be carried out for convenience revising the section's title, retitling and this Part 377. or increased efficiency of transportation; renumbering subsection (a) as (2) What effecta finding in favor of and paragraph (a)(1), inserting a new the applicant would have on attainment (viii) The effect of the export (or paragraph (a)(2), and inserting a new of the basic objectives of the short combined export-import transaction in subsection (c). supply control program. the case of an exchange) on wholesale 3. Section 377.6 is amended by and consumer prices in the United § 377.3 Unique hardship and exceptions. revising the present subsection (d)(10) States. (a) General.(1) Unique Hardship * * * and removing subsection (e)(10). (2) Exceptions. If an applicant seeks an exception, on grounds other than ' § 377.6 Petroleum and petroleum Drafting Information unique hardship, to quota limitations or products. The principal authors of these rules other restrictions on export imposed for are Converse Hettinger, Director, Short reasons of short supply, he must (d) Issuance of Export Licenses Supply Division, Office of Export specifically cite this subsection in his Administration; Robert F. Kan, Special Federal Register / Vol. 46, No. 13 / Wednesday, January 21, 1981 / Rules and Regulations. 5867

Assistant, Short Supply Division, Office Counsel (202] 523-5683, Securities and company by one or more sponsoring of Export Administration; Roman W. Exchange Commission, 500 North utilities offers some advantages over Sloniewsky, Deputy Assistant General Capitol Street, Washington, D.C. 20549. joint ownership under a tenancy in Counsel for Domestic Commerce, SUPPLEMENTARY INFORMATION: The common. The principal advantage is the Department of Commerce; Pete M. Commission is adopting Rules 14 and 15. ability to utilize "project financing," Dalmut, Attorney-Advisor, Office of The first exempts from Commission which allows the sponsoring utilities to General Counsel, Department of review and approval under sections finance the facility by the power supply Commerce; and Robin B. Schwartzman, 9(a)(2] and 10 of the Act acquisitions by company issuing long-term securities Special Advisor to the Under Secretary one or more electric utility companies that are not subject to the mortgage for International Trade. (hereinafter referred to as bond indentures of the sponsoring (Secs. 7,15 and 21, Pub. L 96-72,50 U.S.C. "participating" or "sponsoring companies and which provides App. 2401 et seq.; sec. 103, Pub. L 94-183,42 companies") of securities of defined flexibility with respect tothe kind of U.S.C. 8212; E.O. 12214, (45 FR 29783, May 6, electric generation or transmission security and the amount of debt used to 1980); Department Organization Order 10-3, companies (hereinafter referred to as finance the project. In addition, the (45 FR 6141, Janfary 25,1980); International "power supply companies"). Rule 15 proportionate interests of the Trade Administration Organization and exempts pursuant to section 3(a)(2) of participants in the new facility can be Function Order 41-1 (45 FR 11862, February the Act companies that as a result of the altered as load forecasts change and 22,1980) and 41-4 (45 FR 65003, October 1, 1980]] acquisitions become holding companies. new participants in the project can be admitted by a transfer of the voting Dated: January 14,1981. An electric utility company that also distributes gas at retail is an "electric securities. Eric L Hirschhorn, utility company" as defined in section Over the years, the Commission has DeputyAssistantSecretaryforExport 2(a](3) of the Act and under these rules. authorized, by order, the acquisition by Administration. When electric utility companies electric utilities of equity interests in [FR Doc. 81-153 Filed 1-15-81; I1L45 am] acquire the voting securities of a companies that would construct and BILLNG CODE 3S10-25-U separate company organized to operate generating facilities and sell construct or operate electric generation power to the participating utilities or to SECURITIES AND EXCHANGE or transmission facilities, one or more of a government agency.4 On the basis of the sponsoring companies may become this experience, the Commission COMMISSION "holding companies" within the meaning believes that an acquisition of a 17 CFR Part 250 of section 2(a](7)(A) of the Act.' Such proportionate interest in a power supply acquisitions may require Commission company by an operating electric utility [Release No. 35-21881; File No. 7-845] approval under sections 9(a)(2) and 10 of 2 is not the kind of acquisition that the the Act if the acquiring company isan Commission need review and approve Rules Exempting Certain Acquisitions "affiliate" of another utility company by order under section 10 in all cases. by Electric Utility Companies and within the meaning of section The requirement in Rule 14 that the Exempting Such Companies as 2(a)(11](A) of the Act and will become energy produced be sold to the "Holding Companies" an affiliate of a power supply company sponsoring utilities (except for sales to AGENCY: Securities and Exchange by acquiring five 3percent or more of its municipal and cooperative utilities) and Commission. voting securities. the regulatory approvals relating to the Electric utilities are increasingly ACTION: Final rules. financings of the power supply company relying on joint ownership of large new satisfy the main objectives of section 10 SUMMARY: The Commission is adopting base-load generating plants and related without additional review by this Rule 14, which exempts from the transmission facilities in an effort to Commission. Such an acquisition does requirements of sections 9(a](2) and 10 spread the risks associated with not enlarge the service area of any of the Public Utility Holding Company escalating costs of plant and equipment. sponsoring electric utility company, nor, Act of 1935 ("Act") the acquisition by It permits unaffiliated utilities to share in terms of the Act, frustrate effective one or more electric utility companies of the benefits of efficient new facilities local regulation of the sponsoring securities of a power supply company as that are too large for any one utility to companies. It does no more than provide defined in the rule. The Commission is construct for its own needs. The a sponsoring utility a source of supply to organization of a separate power supply also adopting Rule 15, a related rule, to serve existing or future needs. These are provide an exemption from regulation as the assumptions upon which the a "holding company" under section 'A "holding company" is defined in section 2(a](7)(A) as "any company which directly or exemptions under Rules 14 and 15 are 3(a)(2) of the Act for an electric utility indirectly owns, controls, or holds with power to predicated. company that makes any such vote, 10 per centum or more of the outstanding * * *." The proposed rules were published for acquisitions. The rules eliminate the voting securities of a public utility company A "holding company" and its subsidiaries must comment July 22,1980 (HCAR No. 21661) need for case-by-case consideration of register under section 5of the Act, unless exempt (45 FR 49954, July 28,1980). Twenty-nine projects by electric utility companies under section 3[a) of the Act. that would not be subject to regulation 2Section 9(a)(2) provides: "Unless the acquisition ISee Middle South Uti ties,Inc., HCAR No. under the Act but for the fact that a has been approved by the Commission under 18437 (June 4,1974); Maine Yankee Atomic Power separate company is employed to section 10, it shall be unlawful for any person * * * Company, 43 Sec. 764 (1968); Vermont Yankee to acquire, directly or indirectly, any security of any NuclearPower Corporation,43 Sec. 093 (1968]; provide additional capacity to generate public utility company, if such person is an affiliate ConnecticutYankee Atomic Power Company,41 or transmit electric energy. [under section 2(a)(11] (A)] of such [public utility] Sec. 705 (1963); Southern Electric Generating company and of any other public utility or holding EFFECTIVE DATE: January 21, 1981. Company, HCAR No. 13210 (June 28.1956); Yankee company, or will by virtue of such acquisition Atomic Electric Company,38 Sec. 552 (1955; FOR FURTHER INFORMATION CONTACT: become such an affiliate." Mississippi Valley GeneratingCompany, 36 Sec. Aaron Levy, Director, Division of 3If any company owns five percent or more of the 159 (1955); ElectricEnezsy, Inc., 34 Sec. 8 (1953]; Corporate Regulation (202) 523-5691, voting securities of one public utility company or of Ohio Valley Electric Corporation,34 Sec. 323 (1952); a holding company, it Is an "affiliate" of that CentralIllinois Public Service Company.32 Sec. 202 Grant G. Guthrie, Associate Director company within the meaning of section 2(a)(11](A) (1951); Wisconsin River Power Comoany,27 Sec. (202) 523-5156, or James E. Lurie, Special of the Act. 539 (1948. APPENDIX G: Licensing of Petroleum Coke Exports