TUESDAY, FEBRUARY 13, 1973

WASHINGTON, D.C.

Volume 38 ■ Number 29

Pages 4307-4373

HIGHLIGHTS OF THIS ISSUE

This listing does not affect the legal status of any document published in this issue. Detailed table of contents appears inside.

REVENUE SHARING— Treasury Dept, ruling on debt retirement transactions...... 4354

ENVIRONMENT— EPA issues comments and related actions on impact statements for period from 12-30—72 to 1-18-73 ...... ::...... ' ...... ,...... 4360

DRUGS— FDA announces final conclusions for certain dermato­ logic liquid preparations...... 4356 FDA revises tyrothricin monographs; effective 3 -1 5 -7 3 ...... r. 4318 FDA establishes procedures for review of safety effec­ tiveness and labeling for biological products; effective 2 -1 3 -7 3 ...... ! ...... 4319 FDA proposes change of test organism used in potency assay method for vancomycin; comments by 4—16-73.. 4348

FOOD STANDARDS— FDA proposes identity standards for spiced or flavored cheeses; comments by 4 -1 6 -7 3 ...... 4347

INCOME TAX— 1RS proposal on full absorption method of inventory costing; comments by 4 -1 6 -7 3 ...... 4337

MOTOR CARRIER SAFETY— DoT authorizes use of coiled nylon brake tubing for towing vehicles...... _ ...... 4332

PESTICIDES— EPA exempts certain inert ingredients from tolerance requirements; effective 2 -1 3 -7 3 ...... 4330

RADIOACTIVE MATERIALS— AEC proposes amendments on transfer requirements; comments by 3-30-73 ...... 4351

TOBACCO SUPPORT PROGRAM— USDA proposed de­ terminations for the 1973 crop; comments by 3-14-73.... 4346

VARIABLE LIFE INSURANCE CONTRACTS— SEC allows exemptions from Federal Securities laws; effective 2 -1 2 -7 3 ...... 4315

BROKERS, DEALERS AND EXCHANGE MEMBERS— SEC adopts amendment to exempt certain members from com­ pliance with net capital rule...... 4315

(Continued inside) REMINDERS

N o te : There were no items published after October 1, 1972, that are eligible for Inclusion in the list of R u les G oing In to Effect T oday.

Published daily, Monday through Friday (no publication on Saturdays, Sundays, or on official federal holidays), by the Office of the Federal Register, National Archives and Records Service, Generaio _ Administration, Washington, D.C. 20408, under the Federal Register Act (49 Stat. 500, as_ a^ er" ™ „ trlbuti0n Ch. 15) and the regulations of the Administrative Committee of the Federal Register (1 CFR Oh. I) • v l»3* is made only by the Superintendent of Documents, U.S. Government Printing Office, Washington, v .v . ^ *onnei>*

T he F ederal R egister provides a uniform system for making available to the public regulations ¿ 2 » and by the Executive Branch of the Federal Government. These include Presidential prociamations and Executiv ^ of -Federal agency documents having general applicability and legal effect, documents required to be published Congress and other Federal agency documents of public interest.

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There are no restrictions on the republication of material appearing in the F ederal R egister.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 HIGHLIGHTS— Continued

COMMODITY FUTURES— USDA proposed conditions for MEETINGS— continued designation as a contract market; comments Civilian Advisory Committee to the Board of Directors, by 4 -6 -7 3 ...... - ...... 4346 Army and Air Force Exchange and Motion Picture Services, 2 -2 1 -7 3 ...... fj§ L ...... 4358 VETERINARY DRUGS— Interior Dept.: California State Advisory Board 3 -6 and FDA approves use of betamethasone dipropionate and 7 -7 3 ...... 4354 betamethasone sodium phosphate aqueous suspension FCC: Steering Committee of the Cable Television Fed- in treating dogs; effective 2 -1 3 -7 3 ...... 4318 era l/State-Local Advisory Committee, 2—15 and 16-73.. 4361 FDA approves use of niclosamide tablets for removal of CANCELLED MEETINGS— HEW: Research Scientist tapeworms from dogs and cats; effective 2—13—73...... 4318 Development Review Committee on 2-22 to 2-24-73.. 4358

Contents

AGRICULTURAL MARKETING SERVICE CIVIL AERONAUTICS BOARD FEDERAL AVIATION ADMINISTRATION Proposed Rule Making Notices Rules and Regulations Milk in the Des Moines, Iowa, Alaska Airlines, Inc., and West­ Airworthiness directive; Boeing. 4333 Marketing Area; proposed sus­ Alterations : pension or termination of cer­ ern Airlines, Inc.; prehearing conference______4359 Control zones______4334 tain provisions of the order___ 4346 Transition areas (4 documents). 4334, Milk in the St. Louis-Ozarks Mar­ CIVIL SERVICE COMMISSION 4335 keting area; decision on pro­ Alteration of control zone and posed amendments to marketing Rules and Regulations transition area; correction_____ 4334 agreement and to order______4343 Excepted service: Designation of transition areas (2 documents)______4334, 4335 AGRICULTURE DEPARTMENT Action ______4313 Agriculture Department______4313 Special air traffic rule; Addison See Agricultural Marketing Serv­ Environmental P r o t e c t i o n Airport Traffic Area, Texas___ 4335 ice; Animal and Plant Health Agency______4313 Proposed Rule Making Inspection Service; Commodity Health, Education, and Welfare Control zone and transition area: Credit Corporation; Commodity Department ____ 4313 Alteration______4350 Exchange Authority. Transportation Department__ 4313 Designation ______4349 Treasury Department______4313 Transition area; alteration (2 ANIMAL AND PLANT HEALTH INSPECTION documents) ______4349, 4350 SERVICE U.S. Information Agency____ _ 4313 Transition areas and airways; Rules and Regulations designation, alteration, and de­ COMMODITY CREDIT CORPORATION letion ------4348 Hog cholera and other communi­ cable diseases; areas quaran­ Proposed Rule Making FEDERAL COMMUNICATIONS tined and released______4313 Tobacco; loan and purchase pro­ COMMISSION Exotic Newcastle disease; psitta­ gram for 1973 crop______4346 Rules and Regulations cosis or ornithosis in poultry; Radio broadcast services; non­ areas quarantined and released. 4314 Notices commercial educational PM Delegations of authority regarding broadcast stations ; correction_ 4331 ARMY AND AIR FORCE EXCHANGE AND Proposed Rule Making MOTION PICTURE SERVICES blanket insurance policies: Controller, et al______4356 Prime time access rule; extension Notices of time for comments______4353 Director, ASCS Commodity Of­ Special emergency radio service; Civilian Advisory Committee; fice et al., Kansas City, Mo. (2 for medical paging systems in meeting______4358 documents)______4355 hospitals; extension of time for com m ents______4353 ATOMIC ENERGY COMMISSION COMMODITY EXCHANGE AUTHORITY Notices Proposed Rule Making Proposed Rule Making Cable Television Federal/State- Local Advisory Committee Transfer of radioactive material; Piling of statement by contract requirements______4351 Steering Committee; meetings. 4361 market for continuing desig­ FEDERAL HIGHWAY ADMINISTRATION Notices nation as contract market; Atomic Safety and Licensing Ap­ amended proposed regulation 4346 Rules and Regulations peal Boards: Coiled nylon brake tu bin g...___ 4332 Commonwealth Edison Co.; as­ ENVIRONMENTAL PROTECTION AGENCY FEDERAL HOME LOAN BANK BOARD signment of members______4358 Long Island Lighting Co.; re­ Rules and Regulations* Notices constitution ______4359 Pesticide formulations applied to Establishment of branch offices Delta Air Lines, Inc.; petition for and mobile facilities in Illinois; animals; certain inert ingredi­ rule making______4358 policy regarding applications. __ 4361 High Energy Physics Panëï et âl.; ents ------4330 Forest Products Co., 3hc., et al.; continuation of advisory com­ Notices application for* approval of ac­ mittees ______4359 quisition o f' control of Pour Northern Indiana Public Service Environmental impact statements Comers Savings and Loan As­ Co-> final environmental state­ and other environmental ac­ sociation ______4362 ment ___ 4359 tions; availability of comments. 4360 (Continued on next page) 4309

FEDERAL REGISTER, VOL. 38, N O . 29— TUESDAY, FEBRUARY 13, 1973 4310 CONTENTS

FEDERAL POWER COMMISSION HEALTH, EDUCATION, AND WELFARE LAW ENFORCEMENT ASSISTANCE DEPARTMENT ADMINISTRATION Notices See Food and Drug Administra­ Notices Dorchester Exploration, Inc.; ap­ n t tion; Health Services and Men- plication _____------.------tal Health Administration^ Private Security Advisory Council; establishment______4354 FEDERAL RESERVE SYSTEM HEALTH SERVICES AND MENTAL HEALTH Notices ADMINISTRATION POSTAL RATE COMMISSION Acquisition of banks: Notices Rules and Regulations Alabama Bancôrporation__----- 4362 Practice and procedure rules ex­ Exchange Bancorporation, Inc_ 4362 Research Scientist Development Review Committee; cancella­ cluding evidentiary and filing State Street Boston Financial requirements______4324 C o rp ------.------4363 tion of meeting.______4358 Virginia National Bankshares, HEARINGS AND APPEALS OFFICE SECURITIES AND EXCHANGE Inc ______4363 COMMISSION First Pennsylvania Corp.; pro­ Notices posed acquisitions of Alquippa Cannelton Industries, Inc.; modi­ Rules and Regulations Finance Corp., Ellwood Finance fication of safety standard____ 4355 Exemption of certain variable life Corp., and Beaver Falls Con­ Plateau Mining Co.; petition for insurance contracts and their sumer Discount Co., Inc------4362 modification of mandatory safe­ issuers from Federal securities Formation of one-bank holding ty standard______4355 laws______4315 companies: Net capital requirements for brok­ Oak, Inc______4363 INTERIOR DEPARTMENT ers and dealers______4315 Schroeder-Goodenow Manage­ ment Co______4363 See also Hearings and Appeals Proposed Rule Making Peninsular Holding Corp. of Office; Land Management Bu­ Exemption of certain variable life Michigan; order approving for­ reau. insurance contracts and their mation of bank holding com­ Notices issuers from Federal securities pany ____ —------4363 Environmental statements, avail­ laws; withdrawal of previous ability: proposal______t ______4353 FOOD AND DRUG ADMINISTRATION Proposed Deep Geothermal Test Notices Rules and Regulations Well, Imperial Valley, Calif— 4355 Hearings, etc.: Biological products; procedures Proposed Long Draw Reservoir Enlargement Project, Colo— 4355 American Scientific Industries for review of safety, effective­ International ______4364 ness and labeling------4319 Proposed Wilderness Classifica­ tion for Haleakala National American Truck Service Club, New animal drugs: Inc ______------4364 Betamethasone dipropionate Park, Hawaii______4354 Proposed Wilderness Designa­ Consolidated Natural Gas Co. and betamethasone sodium 4364 phosphate aqueous suspension. 4318 tion for lands within Crater et al______Lake National Park, Oreg___ 4354 DCS Financial Corp______4365 Niclosamide; oral dosage forms. 4318 Goodway Inc------4365 Tyrothricin; tests aryl methods of INTERNAL REVENUE SERVICE Hartwell, J. M. and Associates assay; updating and technical Hedge Fund, Inc______4366 and editorial revisions of mono­ Rules and Regulations Michigan Wisconsin Pipe Line graphs ______4318 Foundation excise taxes; foreign C o ______4366 Proposed Rule Making private foundations; correction. 4324 Middle South Utilities, Inc------4367 Pennsylvania Power Co______4367 Definition and standard of iden­ Proposed Rule Making tity for spiced, flavored, stand­ Philadelphia Electric Power Co. ardized cheeses.------4347 Income tax; domestic interna­ and Susquehanna Power Co_ 4368 Milk and cream; identity stand­ tional sales corporations; School Bus Airlines of America, ards; extension of time for com­ public hearings______4342 In e ______4368 ments ______4347 Income tax; use of the full absorp­ Vancomycin; change of test or­ tion method of inventory TARIFF COMMISSION ganism used in potency assay valuation ______4337 Notices method------4348 INTERSTATE COMMERCE COMMISSION Lynch Corp.; workers petition for Notices determination, notice of inves­ 4369 Certain dermatologic liquid prepa­ Notices tigation ______1------ration : copper undecylenate, un- Assignment of hearings—------4369 decylenic acid and dioctyl so­ Fourth section applications for TRANSPORTATION DEPARTMENT dium sulfosuccinate; drug ef­ relief ______4370 See Federal Aviation Administra­ ficacy follow-up______4356 Motor carrier board transfer pro­ tion; Federal Highway Admin­ Curts Laboratories, Inc.; sulfadac; ceedings ______4370 istration; Hazardous Materials opportunity for hearing---- .'— 4357 Regulations Board. Jensen-Salsbery Laboratories; an- JUSTICE DEPARTMENT thol (antheline plus toluene); See Law Enforcement Assistance TREASURY DEPARTMENT opportunity for hearing------43®‘ Administration. See also Internal Revenue Service. HAZARDOUS MATERIALS REGULATIONS LAND MANAGEMENT BUREAU Notices BOARD Revenue sharing entitlement Rules and Regulations Notices funds; limitations on use to re­ Matter incorporated by refer- California State Advisory Board; tire indebtedness of units of ence ______4331 meeting ______4354 local government______4354

FEDERAL REGISTER. VOL. 38, NO. 29— TUESDAY. FEBRUARY 13, 1973 CONTENTS 4311 List of CFR Parts Affected

The following numerical guide is a list of the parts of each title of the Code of Federal Regulations affected by documents published in today's issue. A cumulative list of parts affected, covering the current month to date, appears following the Notices section of each issue beginning with the second issue of the month. In the last issue of the month the cumulative list will appear at the end of the issue. A cumulative guide is published separately at the end of each month. The guide lists the parts and sections affected by documents published since January 1, 1973, and specifies how they are affected.

5 CFR 14 CFR 26 CFR 213 (7 documents)------4313 39______4333 53 ______4324 71 (8 documents)------4334, 4335 P r o p o se d R u l e s : 93_____ 4335 1 (2 documents)______4337, 4342 7 CFR P ro p o se d R u l e s : 39 CFR Proposed R u l e s : 71 (5 documents)______4348-4350 3001______...... _ 4324 1062____ 4343 1079______4346 17 CFR 40 CFR 1464______4346 240______4315 180______4330 270______4315 - 275______4315 47 CFR 73______4331 9 CFR P r o po sed R u l e s : 76...... 4313 1 ______4346 P r o po sed R u l e s : 82______4314 230_____ 4353 2 ______4353 240__.______4353 73______4353 89______4353 10 CFR 21 CFR 49 CFR Proposed R u l e s : 135b______4318 171______30------4351 135c______4318 141______4318 174 _ ------;_____ 4332 40------4351 1 7 5 -...... 70...... 4351 148r______4318 273______4319 393______P r o po sed R u l e s : 18 ______4347 19 ..... 4347 141______4348

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973

4313 Rules and Regulations

This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each month.

Title 5— Administrative Personnel § 213.3316 Department of Health, Ed­ Operations is excepted under Schedule C. CHAPTER I— CIVIL SERVICE COMMISSION ucation, and Welf are. Effective on February 13, 1973, § 213.3359(i) is added as set out below. PART 213— EXCEPTED SERVICE (a) Office of the Secretary. * * * (27) One Assistant to an Assistant to § 213.3359 Action. Treasury Department the Secretary for Special Programs. ***** Section 213.3305 is amended to show ***** that one position of Secretary to the (i) One Special Assistant for Com­ (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR munications to the Associate Director for Deputy Assistant Secretary (Enforce­ 1954-58 Comp. p. 218) ment, Tariff and Trade Affairs, and Op­ Domestic and Antipoverty Operations. erations) is éxcepted under Schedule C. U n it e d S t a t e s C i v il S er v ­ (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR Effective on February 13, 1973, ic e C o m m i s s i o n , 1954-58 Comp. p. 218) [ s e a l ] J a m e s C . S p r y , § 213.3305(a) (38) is added as set out U n it e d S t a t e s C iv i l S e r v ­ below. Executive Assistant to the Commissioners. ic e C o m m i s s i o n , § 213.3305 Treasury Department. [ s e a l ] J a m e s C . S p r y , [FR Doc.73-2844 Filed 2-12-73;8:45 am] Executive Assistant to (a) Office of the Secretary. * * * the Commissioners. (38) One Secretary to the Deputy As­ [FR Doc.73-2841 Filed 2-12-73;8:45 am] sistant Secretary (Enforcement, Tariff PART 213— EXCEPTED SERVICE and Trade Affairs, and Operations). Environmental Protection Agency PART 213— EXCEPTED SERVICE * * * * * Section 213.3318 is amended to show (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR that one position of Director, Office of Department of Transportation 1954-58 Comp. p. 218) Regional Liaison, is no longer excepted Section 213.3394 is amended to show U n it e d S t a t e s C iv il S e r v ­ under Schedule C. that one position of Special Assistant for ic e C o m m i s s i o n , Effective on February 13, 1973, § 213.- Urban Transportation Policy to the As­ [seal] Ja m e s C . S p r y , 3318(a)(9) is revoked. sistant Secretary for Environment and Executive Assistant to (5 U.S.C. secs. 3301, 3302, E.O. 10577^3 CFR Urban Systems is excepted under Sched­ the Commissioners. 1954-58 Comp. p. 218) ule C. [FR Doc.73-2846 Filed 2-12-73;8:45 am] Effective on February 13, 1973, - U n it e d S t a t e s C i v i l S e r v ­ § 213.3394(a) (31) is added as set out ic e C o m m i s s i o n , below. [s e a l ] J a m e s C . S p r y , PART 213— EXCEPTED SERVICE Executive Assistant to § 213.3394 Department o f Transporta­ Department of Agriculture the Commissioners. tion. Section 213.3313 is amended to show [FR Doc.73-2843 Filed 2-12-73;8:45 am] (a) Office of the Secretary. * * * that one position of Private Secretary to (31) One Special Assistant for Urban the Confidential Assistant to the Secre­ Transportation Policy to the Assistant tary is excepted under Schedule C. PART 213— EXCEPTED SERVICE Secretary for Environment and Urban Effective on February 13, 1973, § 213, U.S. Information Agency Systems. 313(a) (28) is added as set out below. Section 213.3328 is amended to show ***** § 213.3313 Department o f Agriculture. that one position of Confidential Assist­ (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR ant to the General Counsel is excepted 1954-58 Comp. p. 218) (a) Office of the Secretary. * * * under Schedule C. (28) One Private Secretary to the Effective on February 13, 1973, § 213.- U n it e d S t a t e s C iv il S e r v ­ Confidential Assistant to the Secretary. 3328(b) is added as set out below. ic e C o m m i s s i o n , ***** [ s e a l ] J a m e s C . S p r y , § 213.3328 U.S. Information Agency. Executive Assistant to iL y ? 0, secs- 3301 > 3302, E.O. 10577; 3 CFR * * * * • 1954-58 Comp. p. 218) thé Commissioners. (b) One Confidential Assistant to the [FR Doc.73-2845 Filed 2-12-73;8:45 am] U n it e d S t a t e s C i v il S e r v­ General Counsel. ic e C o m m i s s i o n , (5 U.S.C. secs. 3301, 3302, E.O. 10577; 3 CFR [ seal] J a m e s C . S p r y , 1954-58 Comp. p. 218) Title 9— Animals and Animal Products Executive Assistant to CHAPTER I— ANIMAL AND PLANT HEALTH the Commissioners. U n it e d S t a t e s C i v il S er v ­ INSPECTION SERVICE, DEPARTMENT OF ic e C o m m i s s i o n , [FR Doc.73-2842 Filed 2-12-73;8 :4 5 am ] AGRICULTURE [s e a l ] J a m e s C . S p r y , auBUiflriER c— INTERSTATE TRANSPORTA­ TION OF ANIMALS (INCLUDING POULTRY) Executive Assistant to AND ANiMAL PRODUCTS; EXTRAORDINARY PART 213— EXCEPTED SERVICE the Commissioners. EMERGENCY REGULATIONS OF INTRASTATE ACTIVITIES Department of Health, Education, and [FR Doc.73-2847 Filed 2-12-73;8:45 am] Welfare [Docket No. 73-509] PART 7&— HOG CHOLERA AND OTHER thntCk°n 213 3316 is amended to si PART 213— EXCEPTED SERVICE sfctnii+nf P?sition of Assistant to an , COMMUNICABLE SWINE DISEASES tant to the Secretary for Special P Action Areas Quarantined and Released !-excepted under Schedule C. Section 213.3359 is amended to show These amendments quarantine a por­ February 13, 1£ that one position of Special Assistant for tion of Tippecanoe County in Indiana below 31^ a^ is added as set Communications to the Associate Di­ because of the existence of hog cholera. rector for Domestic and Antipoverty This action is deemed necessary to pre-

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4314 RULES AND REGULATIONS vent further spread of the disease. The Highway 231, State Highway 53 in a as amended, sections 1 and 2 of the Act restrictions pertaining to the interstate northerly direction to; its junction with of February 2,1903, as amended, sections movement of swine and swine products the Tippecanoe-White County line. 4, 5, 6, and 7 of the Act of May 29, 1884, from or through quarantined areas as (Secs. 4-7, 23 Stat: 32; as amended; secs, t as amended. and sections 3 and 11 of the contained in 9 CPR Part 76, as amended, and 2, 32 Stat. 791-792, as amended; secs. 1-4, Act Of July 2, 1962. (21 U.S.C. 111, 112, will apply to the quarantined area. 33 Stat. 1264, 1265, as amended; sec. 1, 75 113, 115, 117, 120, 123, 124, 125, 126, 134b, The amendments exclude portions of Stat. 481; secs. 3 and 11, 76 Stat. 130, 132; 21 134f), Part 82, Title 9, Code of Federal Gharles, Prince Georges, and St. Marys U.S.G. 111-113, 114g, 115, 117, 120, 121, 123- Regulations, is hereby amended in the Counties in Maryland from the areas 126, 134b, 134f; 37 FR 28464, 28477) following respects; quarantined because of hog cholera. Effective date. The foregoing amend­ m § 82.3, in paragraph (a) (1) relating Therefore, the restrictions pertaining to ments shall become effective February 7, to the State of California, subdivision the interstate movement of swine and 1973. (iii) relating to San Bernardino and swine products from or through quaran­ Insofar as the amendments impose Riverside Counties is amended and a new. tined areas contained in 9 CFR Part 76, certain further restrictions necessary to subdivision (vii) relating to San Ber­ as amended, do not apply to the excluded prevent the interstate spread of hog nardino County is added to read: area, but will continue to apply to the cholera, they must be made effective im­ quarantined areas described in § 76.2(e). mediately to accomplish their purpose in (a) * * * Further, the restrictions pertaining to the public interest. Insofar as the amend­ (1) California. * * * the interstate movement of swine and ments relieve restrictions presently im­ (iii) That portion of San Bernardino swine products from nonquarantined posed, they are no longer deemed neces­ and Riverside Counties bounded by a line areas contained in said Part 76 apply to sary to prevent the spread of hog cholera, beginning at the junction ot the eastern the excluded area. No area in Maryland and they should be made effective edge of U.S. Highway 395 and the divid­ remains under quarantine. promptly in order to be of maximum ing line between T. 2 N. and T. 1 N. of. Therefore, pursuant to provisions of benefit to affected persons. It does not the San Bernardino baseline in San Ber­ the Act of May 29,1884, as amended, the appear that public participation in this nardino County; thence, following the Act of February 2, 1903, as amended, the rule making proceeding would make ad­ dividing line between T. 2 N. andT. 1'.Er­ Act of March 3, 1905, as amended, the ditional relevant information available in an easterly direction to. the San Ber­ Act of September 6, 1961, and the Act of to the Department. nardino National Forest boundary line; July 2, 1962 (21 U.S.C. 111-113, 114g, 115, Accordingly, under the administrative thence, following the San Bernardino 117, 120, 121, 123-126, 134b, 134f), Part procedure provisions in 5 U.S.C. 553, it is National Forest boundary line in a south­ 76, Title 9, Code of Federal Regulations, found upon good cause that notice and easterly direction to the San Bernardino restricting the interstate movement of other public procedure with respect to meridian; thence, following the San Ber­ swine and certain products because of the amendments are impracticable, un­ nardino meridian in a southerly direction, hog cholera and other communicable necessary and contrary to the public in­ to the dividing line between T. 3 S. and T. swine diseases, is hereby amended in the terest, and good cause is found for mak­ 4 S. of the San Bernardino baseline in following respects: ing them effective less than 30 days after Riverside County; thence, following the In § 76.2, paragraph (e) (1) relating to publication in the F ederal R e g is t e r , dividing line between T. 3 S. and T. 4 S. the State of Maryland is deleted, and a Done at Washington, D:C., this 7th day in a westerly direction to the dividing new paragraph (e)(1) relating to In­ of February 1973. line between R. 1 W. and R. 2 W. of the diana is added to read: G . H. W i s e , San Bernardino meridian; thence,, fol­ (e) * * * Acting Administrator, Animal lowing the dividing line between R. 1 W. (1) Indiana. That portion of Tippe­ and Plant Health Inspection and R. 2 W. in a- northerly direction to canoe County bounded by a line begin­ Service. the San Timoteo Canyon Road; thence, following the southern edge of the San ning at the junction of the Tippecanoe- [FR Doc.73-2855 Filed 2-12-73;8:45 am] White County line and U.S. Highway 231, Timoteo Canyon Road in a westerly, then State Highway 53; thence, following the northerly direction to the Riverside-San Tippecanoe-White County line in an PART 82— EXOTIC NEWCASTLE DISEASE; Bernardino County line; thence, follow­ easterly direction to County Road 470E; AND .PSITTACOSIS OR ORNITHOSIS IN ing the Riverside-San Bernardino thence, following County Road 470E in a POULTRY County line in a generally westerly di­ southerly, then easterly direction to rection to the eastern edge of U.S. High­ County Road 500E;, thence, following Areas Quarantined and Released way 395; thence, following the eastern County Road 500E in a southerly direc­ These amendments quarantine an ad­ edge of U.S. Highway 395 in a south­ tion to Pretty Prairie Road; thence, fol­ ditional portion of Riverside County in westerly, then southeasterly direction tBernard

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13» 1973 RULES AND REGULATIONS 4315

Riverside County line; thence, following ment of paragraph (b) (2) of Rule 15c3-l change, the PBW Stock Exchange, or the the San Bemardino-Riverside County <17 CFR 240.15c3-l) under the Securi­ Chicago Board Options- Exchange, Inc., line in a generally easterly direction to ties Exchange Act of 1934. Under the whose rules, settled practices and appli­ the eastern edge of U.S. Highway 395; amendment members in good standing of cable regulatory procedures are deemed thence, following the eastern edge of U.S. the Chicago Board Options Exchange, by the Commission to impose require­ Highway 395 in a northerly direction to Inc. (CBOE) will be exempt from com­ ments more comprehensive than the re­ its junction with the dividing line be­ pliance with the net capital requirements quirements of this rule: Provided, how­ tween T. 2 N. and T. 1 N. of the San Ber­ of Rule 15c3-l. At present members of six ever, That the exemption as to the mem­ nardino baseline in San Bernardino other exchanges are similarly exempted. bers of any exchange may be suspended County. The registration of the CBOE as a na­ or withdrawn by the Commission at any tional securities exchange became effec­ time, by sending 10 days written notice * * • * * tive on February 1,1973.1 to such exchange, if it appears to the (vii) The premises of Matthys Kooy- The amendment was adopted after a Commission to be necessary or appropri­ man, 6433 Archibald Avenue, city of Alta finding by the Commission that the per­ ate in the public interest or for the pro­ Loma in San Bernardino County, located tinent rules, settled practices and ap­ tection of investors so to do. This exemp­ on lot 13 of the Foothill Frostless Fruit plicable regulatory procedures of the tion shall not be available to the mem­ Co.’s Tract No. 2. CBOE that impose net capital require­ bers of any exchange whose capital rules (Secs. 4-7, 23 Stat. 32, as amended; secs. 1 ments on their members, are more com­ do not provide that in the computation snd 2,32 Stat. 791-792, as amended; secs. 1-4, prehensive than the requirements of Rule of net capital there shall be a deduction 33 Stat. 1264, 1265, as amended; secs. 3 15c3-l. The Commission noted that on of not less than 10 percent of the con­ and 11, 76 Stat. 130, 132; 21 TJ.S.C. 111-113, December 6, 1972, it released, for public tract price of each item ip the securities 115, 117, 120, 123-126, 134b, 134f; 37 FR comment, proposed comprehensive 28464, 28477)^ failed to deliver account which is out­ amendments to Rule 15c3-l,* which standing 40 to 49 calendar days; 20 per­ Effective date. The foregoing amend­ would establish, among other things, uni­ cent of the contract price of each item ment shall become effective February 8, form net capital requirements for all in the securities failed to deliver account 1973. broker-dealers, including members of all which is outstanding 50 to 59 calendar The amendments impose certain re­ exchanges exempted under the current days; and 30 percent of the contract strictions necessary to prevent the inter­ rule.8 price of each item in the securities failed state spread of exotic Newcastle disease, In addition, the words “Philadelphia- to deliver account which is outstanding a communicable disease of poultry, and Baltimore-Washington Stock Exchange” 60 or more calendar days. must be made effective immediately to in present paragraph (b) (2) have been ***** accomplish their purpose in the public amended to read “PBW Stock Ex­ (Secs. 15c-3, 23(a), 48 Stat. 895, 901; as interest. The amendments also relieve change”, in conformity with that ex­ amended 52 Stat. 1075, 84 Stat. 1653, 49 Stat. certain restrictions presently imposed change’s official name change effective 1879, 15 US.O. 78o(c), 78w(a)) but no longer deemed necessary to pre­ July 11, 1972, and the words “Pittsburgh vent the spread of exotic Newcastle dis­ Stock Exchange” have been deleted to By the Commission. ease, and must be made effective imme­ reflect the withdrawal of its registration [ s e a l ! R o n a l d F. H u n t , diately to be of maximum benefit to the by that Exchange effective December 24, Secretary. affected persons. It does not appear that 1969, by reason of its being merged into F e b r u a r y 6, 1973. public participation in this rule making the PBW Stock Exchange. proceeding would make additional rele­ Commission action. The Securities and [FR Doc.73-2812 Filed 2-12-73;8:45 am] vant information available to the De­ Exchange Commission acting pursuant partment. to the provisions of the Securities Ex­ [Release Nos. 33-5360, 34-9972, IC-7644, Accordingly, under the administrative change Act of 1934, and more particu­ IA—359; File No. 4-149] procedure provisions in 5 U.S.C. 553, it larly sections 15(c) (3) and 23(a) there­ PART 270— RULES AND REGULATIONS, is found upon good cause that notice and of, hereby amends Part 240 of Chapter n INVESTMENT COMPANY ACT OF 1940 other public procedure with respect to of Title 17 of the Code of Federal Regu­ PART 275— RULES AND REGULATIONS, the amendments are impracticable, un­ lations by adopting § 240.15c3-l as set INVESTMENT ADVISERS ACT OF 1940 necessary and contrary to the public in­ forth below. Because the above described amend­ Exemption of Certain Variable Life Insur­ terest, and good cause is found for mak­ ance Contracts and their Issuers from ing them effective less than 30 days after ments are technical in nature or relax certain of the requirements of Rule 15c Federal Securities Laws publication in the F ederal R eg ister. 3-1 under the Securities Exchange Act On February 15, 1972, the Securities Done at Washington, D.C., this 8th day of 1934, the Commission finds that, for and Exchange Commission published a of February 1973. good cause, the notice and procedures notice of and order for hearing with re­ G . H. W is e , specified in the Administrative Procedure spect to rules proposed by the American Acting Administrator, Animal Act, 5 U.S.C. 553, are unnecessary, and Life Convention and the Life Insurance and Plant Health Inspection accordingly it amends paragraph (b) (2) Association of America (Petitioners) in Service. of said rule effective February 1, 1973, a Petition for Issuance and Amendment to read as follows: IFR Doc.73-2854 Filed 2-12-73;8:45 am ] of rules and rule making proceeding § 240.15c3—1 Net capital requirements therefor (Petition).1 As proposed, the for brokers an dealers. rules would exempt certain variable life Title 17— Commodity and Securities insurance contracts, related interests Exchanges * * * * * and participations therein, and the is­ (b) Exemptions; * * * CHAPTER II— SECURITIES AND suers thereof and their related persons EXCHANGE COMMISSION (2) The provisions of this rule shallfrom the Securities Act of 1933 (Secur­ [Release No. 34-9988] not apply to any member in good stand­ ities Act) (15 U.S.C. 77a et seq.), the Se­ ing and subject to the capital rules of PA.RJ_240— GENERAL RULES AND REGU- curities Exchange Act of 1934 (Exchange £ TI,°NS, SECURITIES EXCHANGE ACT the American Stock Exchange, the Bos­ A ct), (15 U.S.C. 78a et seq.), the Invest­ OF 1934 ton Stock Exchange, the Midwest Stock ment Company Act of 1940 (Investment Net Capital Requirements for Brokers and Exchange, the New York Stock Ex­ Company Act) (15 U.S.C. 80a-l et seq.), Dealers change, the Pacific Coast Stock Ex- and the Investment Advisers Act of 1940 (Investment Advisers Act) (15 U.S.C. amendment to exempt cer- 1 Release No. 34-9985 February 1, 1973. n , exchange members from the SEC’s 80b-l et seq.). The Commission invited net capital rule. 2 Release No. 344-9891. 8 If the rules were adopted as proposed, all interested persons who wished to com­ miSi««S*clirities 8,11(1 Exchange Com- the CBOE members would no longer have the ment on the proposed rules to appear in °n today announced the amend­ exemption announced today.

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 No. 29------2 4316 RULES AND REGULATIONS

person at the hearing or to submit writ­ emphasized in the sale of variable life protection and cash value—require that ten statements for inclusion in the pro­ insurance. As to these critical features, contractholders be afforded the protec­ ceeding. . the contractholder participates directly tions of full disclosure which would be The public hearing commenced on in the investment experience of the sep­ developed by registration of the con­ April 10, 1972, and concluded on June 7, arate account and bears an investment tracts under the Securities Act. The 1972, during which time the Commission risk. Commission has had extensive experi­ had the aid and assistance of extensive For these reasons the Commission has ence with the registration of complex in­ testimony and written submissions. The determined that a variable life contract vestment contracts under the Securities Commission has-also considered a report would be a security, not entitled to the Act and is confident that adequate dis­ prepared by its Division of Investment exemption set forth in section 3(a)(8) closure can be developed for variable life Management Regulation, shortly to be (15 U.S.C. 77c(a)(8)) of the Securities insurance to achieve the truth-in-securi­ published, which summarizes and ex­ Act. That provision was intended only to ties afforded by registration under the plains the features of variable life insur­ exempt an insurance policy or contract statute. Such disclosure would cover, for ance based upon information developed under which a policyholder has a fixed example, the operation of the contract, during the hearing and provides an benefit and does not share in the invest­ the investment policies of the separate analysis of the law with regard to vari­ ment experience of an equity portfolio account, the extent of the contracthold- able life insurance. Based upon this rec­ and as to which the insurance company er’s participation in the investment ex­ ord and upon its own independent review assumes the risk of loss. In such a case, perience, the nature of the investment of the Petition and the issues raised the requirements of the Securities Act—• risk borne by the contractholder and a therein, the Commission has determined: which would compel full disclosure of the clear discussion of such costs as sales T. A public offering of variable life nature and extent of the participation charges, administrative and mortality insurance, contracts in the forms pro­ and risk—are not necessary. A variable charges, risk charges and management posed in the Petition would involve an life contract, on the other hand, would fees. offering of securities required to be reg­ present entirely different considerations PROPOSED RULES 3 a 1 2 -4 AND 15C1-4 UNDER istered under the Securities Act. and disclosures made in connection with THE SECURITIES EXCHANGE ACT (17 CFR 2. Persons selling such variable life registration under the Securities Act 240.3ai2—4, 240.15C1—4) contracts would generally be required to would be very relevant. register as broker-dealers under the A separate account established by a Proposed Rules 3al2-4 and 15cl-4 un­ Securities Exchange Act. life insurance company to fund such con­ der the Securities Exchange Act (15 3. A company, including a separate tracts would also meet the definition of U.S.C. 78a et seq.) would define a vari­ account of an insurance company, pri­ an investment company set forth in sec­ able life contract as an exempted secu­ marily engaged in issuing and selling tions 3(a)(1) (15 U.S.C. 80a-3(a) (1)) rity under the statute and make the con­ such variable life insurance contracts and 3(a) (3) (15 U.S.C. 80a-3(a) (3) X of firmation requirements of Rule 15cl-4 would be an investment company re­ the Investment Company Act. The tradi­ inapplicable to the sale of such contracts. quired to be registered under the Invest­ tional insurance company contemplated The Commission has determined not to ment Company Act. by section 3(c)(3) (15 U.S.C. 80a-3(c) adopt these rules because the complex 4. An insurance company or other per­ (3)) has as its primary investment aim nature of the investment elements of son rendering investment advice to a the preservation of capital with income variable life insurance make it particu­ separate account issuing and funding in order to fund only fixed-dollar obliga­ larly important that the disclosures pro­ such variable life insurance contracts tions. In contrast, a variable life separate vided by Securities Act registration be would be required to register as an in­ account would be invested in equity se­ communicated by salesmen and firms vestment adviser under the Investment curities, with the primary investment subject to regulation by the Commission, Advisers Act. aim of growth rather than preservation and no justification was established at The Commission has further deter­ of capital, and would be used to fund in the hearing for relief from the confirma­ mined: part variable obligations. In view of the tion requirement. 1. To adopt Rule 3c-4 under the In­ substantial differences between nature PROPOSED RULE 3 C -4 UNDER THE INVEST­ vestment Company Act to exempt from of the investment activity and the in­ MENT COMPANY ACT (17 CPR 270.3C-4) the Act separate accounts with certain terest of contractholders in such a sepa­ The Investment Company Act, unlike specified characteristics established to rate account and the nature of the in­ the Securities Act which provides disclo­ fund such contracts. vestment activity and the interest of con­ sure and prohibits fraud, is a compre­ 2. To adopt Rule 202-1 under the tractholders in a traditional insurance hensive regulatory statute primarily, al­ Investment Advisers Act to exempt from company, the Commission has deter­ though not exclusively, designed for the the Act an insurance company or affili­ mined that the exception from the Act familiar types of investment companies. ated company acting as adviser to such for an insurance company, set forth in The Commission believes that the vari­ an account. section 3(c)(3) (15 U.S.C. 80a(c)(3)) able life insurance separate account would not be applicable. would be an investment company not T h e A pplicability o p t h e F ederal As indicated below, the Commission exempted from the Investment Company S e c u r it ie s L a w s has reached its determination with re­ Act, but this is a close question. In view In arriving at these determinations, spect to the requested exemptions under of this and for the reasons set forth the Commission in no way questions the the Securities Exchange Act and the In­ below, the Commission has determined merits or desirability of variable life vestment Advisers Act in the light of to adopt proposed Rule 3c-4 under the insurance which may well become an these conclusions. Act. important and valuable combined invest­ The Commission is persuaded to take ment and insurance vehicle. Analysis of P ro po sed E x e m p t iv e R u l e s this course for several reasons, even the record does indicate that such a con­ PROPOSED RULE 157 (17 CFR 2 3 0 .1 5 7 ) though some of the protections of the tract would involve important elements. As proposed, Rule 157 would define a Investment Company Act would be rele­ of insurance. In particular, a variable contract. issued by a separate account vant to variable life insurance. The prin­ life insurance contract would provide meeting the requirements of proposed cipal reason is that to reconcile the reg­ immediate insurance equal to the initial Rule 3c-4 (17 CFR 270.3c-4) under the ulatory scheme of the Act with State face amount many times the amount of Investment Company Act as an insur­ regulation of insurance—which unques­ premiums paid, and a guaranteed mini­ ance contract exempt from the Securities tionably is applicable to variable Ufe_iB" mum death benefit also equal to the Act by section 3(a) (8) (15 U.S.C. 77c(a) surance—would, at the very least, be dif­ initial face amount. But, unlike tradi­ (8)) thereof. The Commission has deter- ficult. It probably could not be done tional life insurance, a variable life con­ mihed not to adopt this rule. The impor­ without interfering to some degree with tract would also provide a variable death tant investment features of the con­ the orderly development of State regula­ benefit and a variable cash value—im­ tract—the opportunity to participate in portant features which are likely to be the investment experience of the sepa­ tion. In deference, therefore, to the es­ rate account in order to achieve increased tablished congressional policy of preserv­ See footnotes at end of document. life insurance benefits including death ing State regulation of insurance, the

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4317

Commission concludes that the exemp­ insurance is analogous to the action § 270.3c—4 Definition of “Insurance tion should be granted. In addition, ap­ taken by Congress in 1964 when, in Company” for purposes of section 3 plication of the Investment Company Act amending the Securities Exchange Act, (c) (3 ) o f the Act* to variable life insurance would create it determined not to apply certain regis­ (a) The term “insurance company,” in complex administrative problems, since tration, reporting, and insider trading re­ section 3(c) (3) of the Act, shall include substantial exemptions from the Act quirements to stock insurance companies a separate account established and main­ would be required in order to make the regulated under State law.2 Just as in tained by an insurance company : operation of a separate account to fund 1964 the National Association of Insur­ (1) The assets of which separate ac­ variable life insurance contracts feasi­ ance Commissioners had undertaken a count are derived solely from the sale of ble. In particular, the Commission is per­ program to bring about enactment of variable life insurance policies, as herein suaded by the active participation of the statutes and regulation which would af­ defined, and advances made by the in­ National Association of Insurance Com­ ford protections comparable to the Fed­ surance company in connection with the missioners in the hearing and the Model eral securities laws; so, too, today they operation of such separate account; and Variable Contract Law and Regulation have undertaken the development of a (2) Which separate account is not adopted by them which the Commission meaningful uniform code and regulation used for variable annuity contracts or for views as the beginning of the develop­ with regard to variable life insurance. the investment of funds corresponding ment of a uniform State regulatory Rule 3c-4 defines the term “insurance to dividend accumulations or other policy structure designed specifically to meet company” as used in section 3(c) (3), (15 liabilities not involving life contingencies. the requirements of variable life insur­ U.S.C. 80a-3(c)(3)) of the Investment (b) For the purpose of this § 270.3C-4, ance and the needs of variable life insur­ Company Act to include a separate ac­ a “variable life insurance policy” shall ance contract-holders beyond the dis­ count which would be employed as the mean any policy of insurance issued by closure which the Securities Act would funding medium for variable life insur­ an insurance company which, so long as provide. Based on the representations ance contracts. For this purpose, the rule premiums are paid when due, provides a made in the memoranda submitted by would define a variable life insurance death benefit which varies to reflect the the National Association of Insurance contract to be any contract of insurance investment experience of a separate ac­ Commissioners, the Commission believes issued by an insurance company which, count established and maintained by that they are qualified to develop and so long as premiums are paid when due, such insurance company and: administer the type of regulation par­ provides a death benefit which varies to (1) Provides for life insurance cover­ ticularly appropriate to the operation of reflect the investment experience of a age for the whole of life, and the mortal­ variable life insurance separate accounts. separate account established and main­ ity and expense risks thereunder are Application of many of the provisions of tained by such insurance company and assumed by such insurance company; the Investment Company Act in this con­ which meets the four criteria specified in (2) Provides for an initial stated text would only duplicate the regulation the rule. amount of death benefit and guarantees developed by the State insurance com­ Rule 3c-4 is adopted pursuant to the payment of a death benefit at least equal missioners. statutory authority granted in sections to such amount; Consistent with the representations 38(a) (15 UiS.C. 80a^37(a)) • and 6(c) (3) Provides that the amount pay­ made by the National Association of In­ (15 U.S.C. 80a-6(c)) of the Investment able upon the death of the insured un­ surance Commissioners, we expect the Company Act. der such policy in any year will be no States to move expeditiously to develop, PROPOSED RULE 2 0 2 -1 UNDER THE less than a minimum multiple of the refine, and adopt regulations with respect INVESTMENT ADVISERS ACT gross premium payable in that year (ex­ to variable life insurance. Further, we ex­ The Commission has also determined clusive of that portion allocable to any pect that such regulations will provide to adopt Rule 202-1 under the Invest­ incidental insurance benefit) by a per­ material protections to purchasers sub­ ment Advisers Act.* The Commission ex­ son who meets standard underwriting re­ stantially equivalent to the relevant pro­ pects that the State regulation of life quirements, as shown in the following tections that would be available under insurance companies issuing variable life table: the Investment Company Act. In partic­ contracts will provide adequate protec­ Issue ages Multiples ular, we believe it Important that the tion in this area but will closely monitor regulations provide for the valuation of 0-6 ------80 portfolio securities in a uniform manner; developments under State law to verify 6 - 1 0 ______71 that this will be the case. 1 1 - 1 5 _____ 63 that they assure that contractholders be 16-20 ------55 furnished annual statements containing Rule 202-1 excludes from the term “in­ 2 1 -2 5 ______47 information similar in nature to the in­ vestment adviser,” an insurance com­ 26—30 ______40 pany, or any affiliated company thereof 3 1 -3 5 ______33 formation that would be provided by a 3 6 -4 0 ______27 registered investment company through the extent that any advisory services per­ 4 1 -4 5 ______21 annual reports and proxy statements; formed are incidental to the conduct of 4 6 -5 0 ______15 that they provide protection against un­ the business of issuing any variable life 6 1 - 5 5 ______13 insurance contract as defined in Rule 5 6 -6 0 ______11 authorized or improper changes in in­ 6 1 -6 5 ______9 vestment policies and against excessive 3c-4 under the hi vestment Company Act 66-70 ____ 8 management, administrative, and sales or any interest or participation in a sepa­ 71 and over______„ 7; charges; and that transactions with af­ rate account issued in connection with filiates be restricted in a manner similar such contract. The rule is adopted pur­ and to section 17 (15 UJS.C. 80a-17) of the suant to the statutory authority granted (4) In its entirety is a life insurance Investment Company Act and the rules in sections 206A (15 U.S.C. 80b-6a), 211 contract subject to regulation under the »hereunder. The Commission will closely (a), (15 U.S.C. 80b-ll) and 202(a)(11), Insurance laws of any State in which monitor the development of State law in (15 U.S.C. 80b-2(a) (11)) of the Advisers such policy is offered, including all re­ •if area assure its adequacy in pro­ Act. quired approvals by the insurance com­ viding these protections and, if in the Commission action. The Securities Mid missioner of such State. future it appears that substantial de­ Exchange Commission, pursuant to au­ ficiencies exist and are not likely to be thority in sections 6(c) and 38(a) of the Part 275 is amended by adding thereto remedied, the Commission will then con- Investment Company Act of 1940 and a new § 275.202-1 reading as follows: A ether it Is necessary or appro­ sections 202(a) (11), 206A, and 211(a) § 275.202—1 Exclusion o f issuers o f var­ priate to modify or rescind Rule 3c-4. of the Investment Advisers Act of 1940, iable life insurance policies and of "his connection, it should be noted hereby amends Parts 270 and 275 of Title interests or participations thereunder. ¿~at the Commission’s reliance on State 17 of the Code of Federal Regulations by insurance laws and the administration of adding §§ 270.3c~4 and 275.202-1, respec­ The term “investment adviser,” in sec­ mose laws with regard to variable life tively, as indicated below: tion 202(a) (11) of the Act, shall not Part 270 is amended by adding thereto include an insurance company, or any See footnotes at end of document. a new § 270.3C-4 reading as follows: affiliated company thereof as defined in

FEDERAL REGISTER, V O L 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4318 RULES AND REGULATIONS section 2(a) (2) of the Investment Com­ phosphate aqueous suspension is a sterile night fast is recommended. Treatment pany Act of 1940, to the extent that per­ aqueous suspension. Each milliliter of the may be repeated should tapeworm pro- formance of advisory services is inciden­ suspension contains the equivalent of 5 glottids reappear due to reinfection or tal to the conduct of the business of is­ milligrams of betamethasone as beta­ underdosing. suing any variable life insurance policy, methasone dipropionate and 2 milligrams (3) Federal law restricts this drug to as defined in § 270.3C-4 of this chapter of betamethasone as betamethasone so­ use by or on the order of a licensed under the Investment Company Act of dium phosphate. veterinarian. 1940, and of any interest or participation (b) Sponsor. See code No. 032 in in a separate account, as referred to in Effective date. This order shall be ef­ § 135.501(c) of this chapter. fective on February 13, 1973. said § 270.3c-4 of this chapter, issued in (c) Conditions of use. (1) It is used in connection with such a policy. dogs as an aid in the control of pruritus (Sec. 512(i), 82 Stat. 347; 21 U.S.C. 360b(i)) (Secs 6 (c), 38(a), 202(a), 206A, 211(a), 54 associated with dermatoses. Dated: February 5, 1973. Stat. 800, 841, 847, 855, 84 Stat. 1433,15 U.S.C. (2) It is administered by intramuscu­ 80a-6(c), 80a-37(a), 80b-2, 80b-6a, 80b- C. D. V a n H o u w e l in g , 11(a )) lar injection at a dosage of 0.25 to 0.5 milliliter per 20 pounds of body weight, Director, Bureau of The Commission finds that the fore­ depending on the severity of the condi­ Veterinary Medicine. going rules grant exemptions from cer­ tion. Frequency of dosage depends on re­ [FR Doc.73-2829 Filed 2-12-73;8:45 am] tain provisions of the Acts and may be currence of pruritic symptoms. In clini­ deçlared effective forthwith. Accordingly, cal studies one dosage of the drug the foregoing rules shall become effective brought relief for 1 to 6 weeks; the aver­ PART 141— TESTS AND METHODS OF February 12,1973. age period of relief was 3 weeks, and in ASSAY OF ANTIBIOTIC AND ANTIBIOTIC- CONTAINING DRUGS By the Commission. many cases only one injection was re­ quired. Therefore, dosage may be re­ PART 148r— TYROTHRICIN [ s e a l ] R o n a ld F. H u n t , peated every 3 weeks or when symptoms Secretary. Updating and Technical and Editorial recur. Total dosage should not exceed Revisions of Tyrothricin Monographs J a n u a r y 31, 1973. four injections. [PR Doc 73-2810 Piled 2-12-73; 8 :45 am ] (3) Federal law restricts this drug to In the F ederal R e g is t e r of August 30, use by or on the order of a licensed * 1972 (37 FR 17561), and October 4,1972 (37 FR 20870), the Commissioner of veterinarian. Title 21— Food and Drugs Food and Drugs proposed to amend Parts Effective date. This order shall be ef­ 141 and 148r to provide for updating and CHAPTER I— FOOD AND DRUG ADMINIS­ TRATION, DEPARTMENT OF HEALTH, fective February 12,1973. editorial and technical revisions in the EDUCATION, AND WELFARE (Sec. 512(1), 82 Stat. 347; 21 U.S.C. 360b(i)) tyrothricin bulk drug monograph. The amendments also provided for the revo­ SUBCHAPTER C— DRUGS Dated: February 7, 1973. cation of the sections providing for the PART 135b— NEW ANIMAL DRUGS FOR certification of the tyrothricin dosage C . D. V a n H o u w e l i n g , IMPLANTATION OR INJECTION Director, Bureau of Veterinary forms for which requests to certify are COMBINATION DRUG FOR INJECTION Medicine. no longer received. Interested persons were invited to submit their comments in Betamethosone Dipropionate and Betame­ [FR Doc.73-2761 Piled 2-12-73;8:45 am] response to the notice of proposed rule thasone Sodium Phosphate Aqueous making within 60 days. No comments Suspension were received. Accordingly, the Com­ PART 135c— NEW ANIMAL DRUGS IN missioner of Food and Drugs concludes The Commissioner of Food and Drugs ORAL DOSAGE FORMS has evaluated a new animal drug appli­ that the antibiotic drug regulations cation (49-185V) filed by Schering Corp., Niclosamide should be amended as set forth below. Bloomfield, N.J. 07003, proposing the safe The Commissioner of Food and Drugs Therefore, pursuant to provisions of and effective use of betamethasone di­ has evaluated a supplemental new ani­ the Federal Food, Drug, and Cosmetic propionate and betamethasone sodium mal drug application (34-394V) filed by Act (sec. 507, 59 Stat. 463, as amended; phosphate aqueous suspension as an aid Chemagro, Division of Baychem Corp., 21 U.S.C. 357) and under authority dele­ in the control of pruritus associated with Hawthorn Road, Post Office Box 4913, gated to the Commissioner of Food and dermatoses in dogs. The application is Kansas City, MO 64120, proposing re­ Drugs (21 CFR 2.120), Parts 141 and approved. vised labeling for the safe and effective 148r are amended as follows: Therefore, pursuant to provisions of use of niclosamide tablets for removal § 141.111 [Amended] the Federal Food, Drug, and Cosmetic of tapeworms from dogs and cats. The Act (sec. 512(1), 82 Stat. 347; 21 U.S.C. supplemental application is approved. 1. In Part 141, § 141.111 is amended in 360b (i)) and under authority delegated Therefore, pursuant to provisions of the table in paragraph (a) as follows: to the Commissioner (21 CFR 2.120), the Federal Food, Drug, and Cosmetic a. By deleting all the existing entries Part 135b is amended by adding the fol­ Act (sec. 512(i), 82 Stat. 347; 21 U.S.C. for tyrothricin under “Working stand­ lowing new section: 360b(i)) and under authority delegated ard stock solutions” and “Standard re­ to the Commissioner (21 CFR 2.120), sponse line concentrations.” § 135b.62 Betamethasone dipropionate Part 135c is amended by adding a new b. By adding for the antibiotic “Tyro­ and betamethasone sodium phosphate section as follows: thricin” the following footnote : aqueous suspension. 2 § 135c.l01 Niclosamide tablets. 8 T he gram icidin working standard and the (a) Specifications. Betamethasone di­ gramicidin standard response line concentra­ propionate and betamethasone sodium (a) Chemical name. 2',5-Dichloro-4*- tions are used for the assay of tyrothricin. nitrosalicylanilide. 1 Securities Act Release No. 5234, Securities (b) Specifications. Niclosamide tablets 2. In Part 148r: Exchange Act Release No. 9494, Investment contain niclosamide in a tablet intended • a. By revising § 148r.l to rea d as fol­ Company Act Release No. 6999, and Invest­ for oral administration. lows: ment Advisers Act Release No. 310, 37 PR (c) Sponsor. See code No. 007 in § 148r.l Tyrothricin. 6510 (1972). § 135.501(c) of this chapter. a Section 12(g)(2) (G) of the Securities (a) Requirements for certification• Exchange Act (15 U.S.C. 781, 78 Stat. 565 (d) Conditions of use. (1) The drug (1) Standards of identity, strength, (1 9 6 4 )). is intended for removal of tapeworms quality, and purity. Tyrothricin is a 8 Proposed Rule 202-1 under the Invest­ from dogs (Dipylidium caninum, Taenia white to brownish-white compound of a ment Advisers Act regarding the registra­ pisiformis, Taenia hydatigena) and cats tion under the Act of companies which are (Taenia taeniaeformis). kind of tyrothricin or a mixture of two or subsidiaries of other companies, published (2) The drug is administered orally atmore such compounds. It consists princi­ for comment on December 18, 1972 (Invest­ pally of gramicidin and tyrocidine. It is ment Advisers Act Release No. 353, 38 PR the rate of 500 milligrams of niclosamide 1649), will be renumbered if adopted. per 7 pounds of body weight. An over­ so purified and dried that:

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4319

(1) Its potency is not less than 900 persons were invited to submit comments followed, and will also specifically indi­ micrograms and not more than 1,400 on the proposal within 60 days. Com­ cate what information should be sub­ micrograms of tyrothricin per milligram. ments were received from the Pharma­ mitted and in what format. (ii) Its loss on drying is not more than ceutical Manufacturers Association^ 12 5 percent. affected manufacturers and several pri­ 3. Many comments stated that the pro­ (iii) It gives a positive identity test for vate individuals. These comments con­ posed regulations combined the sub­ tyrothricin. cerned almost every part of the proposal stance of the requirements of the Fed­ and its accompanying preamble. In ad­ eral Food, Drug, and Cosmetic Act with (2) Labeling. It shall be labeled in ac­ the procedural requirements of the Pub­ cordance with the requirements of § 148.3 dition, many other comments were re­ ceived from physicians and recipients of lic Health Service Act, by making the of this chapter. standards of safety and effectiveness set (3) Reguests for certification; sam­ bacterial vaccines which, although re­ ferring to these regulations, did not offer forth in the new drug provisions of sec­ ples. In addition to complying with the tion 505 of the Federal Food, Drug, and requirements of § 146.2 of this chapter, any comments on the proposed proced­ ure, but rather concerned themselves Cosmetic Act applicable to biological each such request shall contain:^ products through the employment of the (1) Results of tests and assays on the only with the review for safety and effec­ tiveness of bacterial vaccines and anti­ licensing provisions of the Public Health batch for potency, loss on drying, and Service Act. These comments contended identity. gens whose label bears the statement “No U.S. standard of potency.” These that such a combination was not legally (ii) Samples required: five packages, permissible. To the contrary, biological each containing approximately 300 comments were considered as being re­ sponsive to the call for information on products, subject to regulation under sec­ milligrams. tion 351 of the Public Health Service Act, (b) Tests and methods of assay— (1) such bacterial vaccines and antigens which was published in the same issue of are also drugs, within the meaning of Potency. Proceed as directed in § 141.111 section 201(g)(1) of the Federal Food, the F ederal R e g is t e r (37 FR 16690), and of this chapter, preparing the sample for Drug, and Cosmetic Act, and are there­ assay as follows: Dissolve an accurately have thus been filed with other data re­ ceived on these products. fore also subject to regulation under that weighed sample in sufficient 95 percent act. Furthermore, Congress has clearly ethyl alcohol, U.S.P. XVIII or equivalent, G e n e r a l C o m m e n t s indicated its intentions in this regard to give a stock solution of convenient in that both acts clearly and unequivo­ concentration. Further dilute the stock 1. Comments received from some phy­ cally state that nothing in either act solution with 95 percent ethyl alcohol, sicians indicated concern that the Food shall be construed so as to in any way U.S.P. XVIII or equivalent, to the refer­ and Drug Administration will spend pub­ affect, modify, repeal, or supersede the ence concentration of 0.20 microgram of lic funds on a review which will result in provisions of the other act. It is there­ tyrothricin per milliliter (estimated). the removal from the market of drugs fore clearly permissible for the agency to Average the absorbance values for -the which physicians are currently using and develop a comprehensive regulatory pro­ tyrothricin sample and read the grami­ which patients need. As the advisory re­ gram which combines the applicable pro­ cidin concentration from the gramicidin view panels will be constituted in such a visions of both acts so as to regulate all standard response line. Multiply by 5 to manner that practicing physicians will biological drugs uniformly and efficiently. be well represented, the needs of the pa­ obtain the number of micrograms of 4. Some comments argued that the li­ tients for whom they care will be fully cense of a biological product which is not tyrothricin in the sample. considered. Furthermore, any persons, (2) Loss on drying. Proceed as directed a new drug within the meaning of sec­ particularly physicians, who have sci­ tion 505 of the Federal Food, Drug, and in § 141.501(b) of this chapter. entific and/or clinical information con­ Cosmetic Act cannot be revoked solely (3) Identity. To 5 milliliters of p-di- cerning these products will be given full because a product is lacking in substan­ methylaminobenzaldehyde (T.S.) add opportunity to present such data to the advisory panels. It should be noted that tial evidence of effectiveness. With re­ about 5 milligrams of tyrothricin. Shake the FDA has no desire to reduce the spect to biological products which are well for 2 minutes; then add 2 drops of number of biological products available new drugs, these comments argued that O.lAf sodium nitrite and 5 milliliters of to the practicing physician and his pa­ the agency can only withdraw approval water. A blue color is produced. tients. The agency’s overriding purpose of the products under the procedures, and is to assure everyone who administers or subject to the judicial review provided §§ 148r.2, 148r.3, 148r.4, 148r.5 [Re- receives a biological product that he is for, in the Federal Food, Drug, and Cos­ voked] utilizing a product which is safe and ef­ metic Act. Regardless of whether a par­ b. By revoking §§ 148r.2, 148r.3, 148r.4, fective for its labeled purpose. ticular biological product is a new drug, and I48rj> and by reserving them for 2. Many comments were received however, all biological products are sub­ future use. which indicated that for many biological ject to the misbranding provisions of both Effective date. This order shall become products there is a positive correlation section 502 of the Federal Food, Drug, effective on March 15, 1973. between potency standards and clinical and Cosmetic Act and section 351(b) of the Public Health Service Act. A bio­ (Sec. 507, 59 Stat. 463, as amended; 21 effectiveness, and that therefore the re­ U.S.C. 357) view should be limited to products for logical product whose label purports, which ability to control disease has not represents, or suggests it to be effective Dated: February 5, 1973. been demonstrated. If not so limited^one and/or safe for certain intended uses, and which is not safe and effective for M a r y A. M cE n i r y , comment requested that for products Assistant to the Director for Regu­ recognized as effective, a group submis­ such uses, is misbranded within the latory Affairs, Bureau of Drugs. sion should be permitted. Section 273.745 meaning of both acts, and therefore (b) of the proposed regulations indi­ should not and will not be licensed under [FR Doc.73-2762 Piled 2-12-73;8:45 am ] cated that the submission should follow section 351 of the Public Health Service the published format unless changed in Act. Congress has clearly stated that a misbranded biologic may not be distrib­ SUri?ioAf I I 5 F— REGULATIONS UNDER SPE- the formal F ederal R e g is t e r notice re­ FOnn iSIS«0F CONGRESS OTHER THAN THE uted in interstate commerce. FOOD, DRUG, AND COSMETIC ACT questing data, thus indicating an aware­ ness by the FDA that such information 5. One comment argued that the pro­ PART 273— BIOLOGICAL PRODUCTS may not always be requested. This sec­ posed procedure would illegally shift the tion has been modified to clearly indicate burden of proof upon the licensee to show Procedures for Review of Safety, that when the Commissioner of Food and that his product is not misbranded. This Effectiveness and Labeling Drugs determines that the available is not the situation. No license has been issued in the past for a product that the thf1 J?r.0I>0sal regarding procedures for documented data are clear concerning the safety, effectiveness, or proper label­ agency believes to be misbranded. The hf»u«evie^,of safety> effectiveness and la- burden is on the prospective licensee, as lkh if -°* biological products was pub- ing of such products, the particular re­ it is upon a new drug applicant, to show a . ef in ^ e F ederal R e g is t e r o f Aug- quest for data and information will indi­ lack of misbranding to obtain a license 18» 1972 (37 FR 16679). Interested cate that the usual format need not be or an approved new drug application, and

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4320 RULES AND REGULATIONS this burden remains on the licensee or ucts, and the products for which no data shall be within 60 days, unless otherwise new drug applicant after the license or have been submitted fail to meet those indicated in the notice for a particular new drug application is issued and ap­ standards. This approach has been category. proved. adopted so as to ensure that no person currently receiving a licensed biological H I. PARAGRAPH (b) ( 3 ) , ITEM I C o m m e n t s R e l a t in g T o S p e c if ic P r o v i­ product in a medical context will be de­ A. Label or labels and all other label­ s i o n s o f P ro po sed § 273.245 (21 CFR prived of any of the possible benefits of ing. 1. Comments were received request­ 273.245) the product until an expert advisory ing that the requirement for submission I. PARAGRAPH (a)—ADVISORY REVIEW panel has made a thorough evaluation of labels be limited to the final con­ PANELS of all available safety and effectiveness tainer label, package label, and package data concerning the product. As the ma­ enclosures. In addition, several com­ 1. Numerous comments were received jority of currently licensed biologies have ments indicated that they assumed that requesting that the final order indicate been in use for a substantial period of the requirement for labeling pertained the categories of products to be reviewed time, and were evaluated for safety prior only to domestic labeling. While the only and their anticipated order of review, and to initial licensure, the Commissioner labeling that need be submitted by a further, that in the call for data and finds that no substantial safety risk will manufacturer is the container and pack­ information for a particular category, the be presented by allowing such products age label, as well as the package insert, proper name of all products included in to remaiii on the market pending a the Commissioner intends that export as the category be stated. It is anticipated thorough review. The Commissioner ex­ well as domestic labeling be submitted, that nine designated categories of bio­ since section 351 of the Public Health logical products shall be reviewed, the pects that all responsible licensees will actively participate in the review by sub­ Service Act and the Federal Food, Drug, reviews to commence in the following and Cosmetic Act regulate the export of order: mitting all relevant safety and effective­ ness data at their disposal. A considera­ biological products as well as interstate (a) Bacterial vaccines and bacterial commerce in such products. The regula­ antigens bearing labeling stating ‘‘No tion of the public interest in assuring that only safe, effective, and properly tions have been revised to clarify this U.S. standard of potency.” point. - (b) Bacterial vaccines and toxoids labeled biologies are available to the American public demands nothing less with standards of potency, single or in PARAGRAPH (b) ( 3 ) , ITEM III combination. than full participation by all concerned manufacturers. Should such participa­ B. Complete quantitative composition (c) Viral vaccines, single or in com­ of the biological product. 1. Comments bination, and Rickettsial vaccines. tion not be forthcoming, the Commis­ (d) Allergenic extracts. sioner reserves the right to reconsider were received stating that the Food and this decision to permit interim marketing Drug Administration’s request for the (e) Skin test antigens. of products for which no submission has (f) Immune serums, antitoxins and complete quantitative composition of the been made. biological product was not necessary be­ antivenins. 2. Several comments were received (g) Blood and blood derivatives. cause the review covered only the safety requesting that the data submitted pur­ and efficacy of active ingredients. Since (h) In Vitro diagnostic reagents. suant to these review procedures be con­ inactive ingredients may markedly affect (i) Miscellaneous (all other biological sidered confidential, even after the evalu­ the stability, and therefore the potency products not falling within one of the ation of the particular advisory review and effectiveness of a product, the com­ above therapeutic categories). panel has been completed. The FDA posi­ position of all ingredients must be 2. Several comments suggested that the tion in this matter is that while data known. These comments have therefore regulations require that the advisory submitted in confidence is being reviewed been rejected. panels include persons from lists sub­ by the panel, FDA will protect the data’s mitted by interested organizations, confidentiality if it is entitled to such PARAGRAPH (b ) (3 ) , ITEM VII rather than allowing the inclusion of treatment under the provisions of 18 C. Summary. 1. Several comments sug­ such persons to be discretionary. Further, U.S.C. 1905, 5 U.S.C. 552(b), or 21 U.S.C. gested that the last sentence in this sec­ they stressed that qualified persons of 331 (j) . However, the data would be made tion should be revised to indicate that divergent views be mandatorily included. available to the public 30 days after pub­ the explanation of the absence of con­ The Commissioner intends that the ad­ lication of the proposed order unless the trolled studies in the materials submitted visory review panels be both highly quali­ person submitting the data can demon­ be permitted to include not only why fied and broadly representative of re­ state that it is in fact still entitled to such studies are not considered neces­ sponsible medical and scientific opinion. such confidentiality. Such action protects sary, but also why they are not consid­ Therefore, these comments are accepted both the confidentiality of true trade ered to be feasible. As it is not the and the regulations have been revised secrets as well as the public’s right to Commissioner’s intention to require con­ accordingly. understand the basis for governmental trolled studies where they are clearly not decisions that vitally affect it. In keeping feasible, the suggestion has been ac­ II. PARAGRAPH (b) —REQUEST FOR DATA with the congressional intent of the cepted and the regulations have been re­ AND VIEWS Freedom of Information Act (5 U.S.C. vised accordingly. 552), the FDA is making available to the 1. Many comments were received ques­ PARAGRAPH ( b ) '(3 ) , ITEM VIII tioning the FDA’s authority summarily public as much of the biologies effective­ to revoke a license for a biological prod­ ness review data and information as is D. Signed statement. 1. There was a uct on the ground that the requested permissible under the law. request that this section be revised to data and information were not submit­ 3. Several comments were received in­ indicate clearly that the designated ted. The FDA has sufficient authority dicating that the time of 60 days which statement be permitted to be filed either under section 351 of the Public Health was allotted for submission of data was as a corporate submission, a submission Service Act to revoke a license for a will­ insufficient, especially in those cases in signed by the responsible head, or a ful failure to submit required safety and which a manufacturer is licensed for submission signed by the individual re­ effectiveness data. Nevertheless, the several products within the same cate­ sponsible for the submission. In order w Commissioner has determined to revise gory. The Commissioner recognizes that clarify the meaning of this section, 15 the procedures governing the treatment in certain instances 60 days may be an has been revised to state that the state­ accorded licensees failing to submit inadequate period of time in which to ment must be signed by the person wn safety and effectiveness data for their gather and submit the requisite data. On is the “responsible head” as designate products. Licenses for such products will in 21 CFR 273.500. The request that cor­ the other hand, in certain instances sub­ porate submissions be permitted is re­ not be revoked until such time as the mission of data may be in an abbreviated Commissioner has published the final jected, for the Commissioner is con­ order establishing standards for the form, and the time should be set accord­ vinced that requiring the responsi^ safety, effectiveness, and labeling of the ingly. Therefore, this section has been head of an establishment to sign tn particular category of biological prod­ amended to Indicate that the submission statement will promote the submissi

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4321 of more comprehensive and balanced or reports of the panel. It should further sufficiently flexible to cover these prod­ data. be noted that interested parties, includ­ ucts. It should further be noted that ing consumers and manufacturers, will such products are also the subject of IV. PARAGRAPH (c)—DELIBERATIONS OF AN be kept fully informed of the delibera­ the impending in vitro diagnostic prod­ ADVISORY REVIEW PANEL tions of the panel through liaison rep­ uct review (37 FR 16613), and that the 1. Several comments concerned the resentatives. It is therefore anticipated two reviews will be coordinated. provision that any interested person may that concerned members of industry and Therefore, pursuant to provisions of request an opportunity to present his the general public will have ample op­ the Federal Food, Drug, and Cosmetic views orally to the panel. They stated portunity to express their views to the Act (secs. 201, 502, 505, 701, 52 Stat. that oral presentations made to the panel panel. The Freedom of Information Act 1040-1042, as amended, 1050-1053 as should not be based on whether or not would also prohibit any special submis­ amended, 1055-1056 as amended by 70 the panel wished to hear such presenta­ sion of the panel report to industry be­ Stat. 919 and 72 Stat. 948; 21 U.S.C. 321, tions, but that such presentations- should fore'its general release. 352, 355, 371), the Public Health Serv­ be a matter of right. The panel, how­ 2. Comments were also received as­ ice Act (sec. 351, 58 Stat. 702, as ever, must reserve the right to grant or serting that the advisory panels cannot amended; 42 U.S.C. 262), and the Ad­ deny a request to make an oral presen­ state the type of studies that should be ministrative Procedure Act (secs. 4, 10, tation on the basis of the merits of the done for biological products deemed to 60 Stat. 238 and 243, as amended; 5 request as well as on the amount of time be neither safe and effective nor unsafe U.S.C. 553, 702, 703, 704), and under available. The Commissioner has there­ and ineffective, since the design of study authority delegated to the Commis­ fore rejected these requests, preferring to protocols are the prerogative of the sioner, Part 273 is amended by adding leave the panel with discretion to grant licensee and not of the advisory panel. a new section, as follows: or deny a request for an oral presenta­ The Commissioner has no intention § 273.245 Review procedures to deter­ tion, since they alone know whether the whatever of infringing on the right of mine that licensed biological products presentation requested may present data, a- manufacturer to conduct whatever are safe, effective, and not mis­ information, or views in which they are studies it wishes. The Commissioner will, branded under prescribed, recom­ interested. The Commissioner believes however, give careful consideration to mended, or suggeste conitions of use. that no reasonable request will be denied. the recommendations of the advisory For purposes of reviewing biological panels regarding appropriate studies products that have been licensed prior V. PARAGRAPH (d ) — STANDARDS FOR SAFETY, during his evaluation of the adequacy of to July 1, 1972, to determine that they EFFECTIVENESS, AND LABELING a licensee’s or applicant’s proposed are safe and effective and not mis­ A. Paragraph (d ), subparagraph (1) studies. branded, the following regulations shall safety. 1. Several comments were made v n . PARAGRAPHS (f) AND ( g ) — PROPOSED apply. Prior administrative action ex­ requesting that the definition of safety AND FINAL ORDERS empting biological products from the provisions of the Federal Food, Drug, be broadened so as to include a consider­ 1. Comment was received requestingand Cosmetic Act is superseded to the ation of the benefit to risk ratio of the that the proposed and final orders be extent that these regulations result in particular product under review. As sub- made available to concerned licensees imposing requirements pursuant to pro­ paragraph (3) of this paragraph indi­ prior to their publication in the F ederal visions therein for a designated biolog­ cates that the benefit to risk ratio of a R e g is t e r . Inasmuch as industry, along ical product or category of products. biological product shall be considered in with consumers, will have a liaison mem­ (a) Advisory review panels. The Com­ determining both safety and effective­ ber on the panel to keep it informed, and ness, the proposed revision of the defini­ missioner of Food and Drugs shall ap­ because the Commissioner has an obliga­ point advisory review panels (1 ) to tion of safety is unnecessary. tion to all members of the public to B. Paragraph (d), subparagraph (2) evaluate the safety and effectiveness of keep them informed as promptly as biological products for which a license effectiveness. 1. Several comments re­ possible, no change will be made in quested that the definition of effective­ has been issued pursuant to section 351 either of the two paragraphs concerning of the Public Health Service Act, (2) to ness be extended to allow in certain situ­ the procedures to be followed with re­ ations for alternative methods, such as review the labeling of such biological spect to the availability of the proposed products, and (3) to advise him on serological response evaluation in clinical and final orders. studies, and appropriate animal and which of the biological products under laboratory assays, to serve as adequate vni. PARAGRAPH (h)— ADDITIONAL STUDIES review are safe, effective, and not mis­ substantiation of effectiveness. Although branded. An advisory review panel shall 1. Some comments indicated that 30be established for each designated cate­ this subparagraph as originally proposed days is an inadequate period of time indicated that in certain circumstances gory of biological product. The members in which to undertake any further of a panel shall be qualified experts, alternative methods of investigation will studies which may be needed. These be adequate to substantiate effectiveness, appointed by the Commissioner, and comments stressed that, except in rare shall include persons from lists submit­ thte subparagraph has been amended to instances, studies which may be required indicate with greater specificity that al­ ted by organizations representing pro­ could probably not begin within that fessional, consumer, and industry inter­ ternative procedures may be considered time period due to necessary planning. satisfactory. ests. Such persons shall represent a wide Although the Commissioner has indi­ divergence of responsible medical and VI. PARAGRAPH (e)— ADVISORY REVIEW cated that this 30-day period may be scientific opinion. The Commissioner panel report t o t h e commissioner extended if necessary, the regulations shall designate the chairman of each have been amended to more specifically f w pomment was received requesting panel, and summary minutes of all meet­ provide for an additional period of time ings shall be made. nat the report of the advisory review from the publication of the final order, panel be submitted to the concerned (b) Request for data and views. (1) providing certain prescribed conditions The Commissioner of Food and Drugs anufacturers at the same time that it are met. submitted to the Commissioner. This will publish a notice in the F ederal ® es" has been rejected, since the re- IX . PARAGRAPH (i)— CATEGORIES OF BIOLOG­ R e g is t e r requesting interested persons to port of each panel is advisory to the ICAL PRODUCTS TO BE REVIEWED submit, for review and evaluation by an tv1,m? lss!oner> who has the final au- advisory review panel, published and un­ 1. Some comments were received con­published data and information perti­ either to accept or to reject the cerning the need for a different type of n a«itions an(* recommendations of the nent to a designated category of biologi­ review for those biological products cal products. panel, it should be noted in this connec­ which are also in vitro diagnostic re­ tion that the regulations provide that at agents. It is anticipated that the format (2) Data and information submitted such time as the Commissioner publishes pursuant to a published notice, and fall­ for submissions may in fact need to be ing within the confidentiality provisions e Proposed order in the F ederal R e g - revised for in vitro diagnostic reagents, of 18 U.S.C. 1905, 5 U.S.C. 552(b), or 21 TER, he shall also publish the full report but it is believed that the format is U.S.C. 331 (j), shall be handled by the

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4322 RULES AND REGULATIONS advisory review panel and the Food and 4. Pertinent marketing experiences that (2) Any interested person may request may influence a determination as to the Drug Administration as confidential in writing an opportunity to present oral safety of the finished biological product. views to the panel. Such written requests until publication of a proposed evalua­ 5. Pertinent medical and scientific litera­ tion of the biologies under review and ture. for oral presentations should include a the full report or reports of the panel. V I. Efficacy data. summarization of the data to be pre­ Thirty days thereafter such data and in­ A. Individual active components. sented to the panel. Such request may formation shall be made publicly avail­ 1. Controlled studies. be granted or denied by the panel. able and may be viewed at the Office of 2. Partially controlled or uncontrolled - (3) Any interested person may present the Hearing Cleric of the Food and Drug sudies. written data and views which shall be 3. Documented case reports. Administration, except to the extent that ' 4. Pertinent marketing experiences that considered by the panel. This informa­ the person submitting it demonstrates may influence a determination on the efficacy tion shall be presented to the panel in that it still falls within the confidenti­ of each individual active component. the format set forth in paragraph (b) (3) ality provisions of one or more of those 5. Pertinent medical and scientific litera­of this section and within the time period statutes. ture. established for the biological product (3) To be considered, 12 copies of the B. Combinations of the individual active category in the notice for review by a submission on any marketed biological components. panel. 1. Controlled studies. product within the class shall be sub­ 2. Partially controlled or uncontrolled (d) Standards for safety, effectiveness, mitted, preferably bound, indexed, and studies. and labeling. The advisory review panel, on standard sized paper, approximately 3. Documented case reports. in reviewing the submitted data and 8V2 x 11 inches. The time allotted for 4. Pertinent marketing experiences that preparing the panel’s conclusions and submissions will be 60 days, unless other­ may influence a determination as to the recommendations, and the Commissioner wise indicated in the specific notice re­ effectiveness of combinations of the indi­ of Food and Drugs, in reviewing and questing data and views for a particu­ vidual active components. implementing the conclusions and rec­ lar category of biological products. 5. Pertinent medical and scientific litera­ ture. ommendations of the panel, shall apply When requested, abbreviated submis­ C . Finished biological product. the following standards to determine sions should be sent. All submissions 1. Controlled studies. that a biological product is safe and ef­ shall be in the following format, indi­ 2. Partially controlled or uncontrolled fective and not misbranded. studies. cating “none” or “not applicable” where (1) Safety means the relative freedom 3. Documented case reports. from harmful effect to persons affected, appropriate, unless changed in the F ed­ 4. Pertinent marketing experiences that may influence a determination as to the directly or indirectly, by a product when e r a l R e g is t e r notice: effectiveness of the finished biological prudently administered, taking into con­ BIOLOGICAL PRODUCTS REVIEW INFORMATION product. sideration the character of the product I. Label or labels and all other labeling 5. Pertinent medical and scientific litera­ in relation to the condition of the re­ (preferably mounted. Facsimile labeling Is ture. cipient at the time. Proof of safety shall acceptable in lieu of actual container label­ VII. A summary of the data and views consist of adequate tests by methods ing) , including labeling for export. setting forth the medical rational and pur­ reasonably applicable to show the II. Representative advertising used during pose (or lack thereof) for the biological prod­ biological product is safe under the the past 5 years. uct and its components and the scientific prescribed conditions of use, including tit The complete quantitative composi­ basis (or lack thereof) for the conclusion tion of the biological product. that the biological product, including its results of significant human experience IV. Animal safety data. components, has been proven safe and effec­ during use. A. Individual active components. tive and is properly labeled for the intended (2) Effectiveness means a reasonable 1. Controlled studies. use or uses. If there is an absence of con­ expectation that, in a significant pro­ 2. Partially controlled or uncontrolled trolled studies in the materials submitted, portion of the target population, the studies. an explanation as to why such studies are pharmacological or other effect of the B. Combinations of the Individual active not considered necessary or feasible shall components. be included. biological product, when used under ade­ 1. Controlled studies. VIII. If the submission is by a licensee, a quate directions, for use and warnings 2. Partially controlled or uncontrolled statement signed by the responsible head (as against unsafe use, will serve a clinically studies. defined in 21 CFR 273.500) of the licensee significant function in the diagnosis, C. Finished biological product. shall be included, stating that to the best cure, mitigation, treatment, or preven­ 1. Controlled studies. of his knowledge and belief, it includes all tion of disease in man. Proof of effective­ 2. Partially controlled or uncontrolled information, favorable and unfavorable, ness shall consist of controlled clinical studies. pertinent to an evaluation of the safety, investigations as defined in § 130.12(a) V . H u m an safety data. effectiveness, and labeling of the product, A. Individual active components. including information derived from investi­ (5) (ii) of this chapter, unless this re­ 1. Controlled studies. gation, commercial marketing, or published quirement is waived on the basis of a 2. PartiaUy controlled or uncontrolled literature. If the submission is by an inter­ showing that it is not reasonably ap­ studies. ested person other than a licensee, a state­ plicable to the biological product or 3. Documented case reports. ment signed by the person responsible for essential to the validity of the investiga­ 4. Pertinent marketing experiences that such submission shall be included, stating tion, and that an alternative method of may influence a determination as to the that to the best of his knowledge and be­ safety of each individual active component. investigation is adequate to substantiate lief, it fairly reflects a balance of all the in­ effectiveness. Alternate methods, such 5. Pertinent medical and scientific litera­ formation, favorable and unfavorable, avail­ ture. able to him pertinent to an evaluation of the as serological response evaluation in B. Combinations of the individual active safety, effectiveness, and labeling of the clinical studies and appropriate animal components. product. and other laboratory assay evaluations 1. Controlled studies. may be adequate to substantiate effec­ 2. Partially controlled or uncontrolled (c) Deliberations of an advisory reviewtiveness where a previously accepted studies. panel. An advisory review panel will correlation between data generated m 3. Documented case reports. meet as often and for as long as is ap­ this way and clinical effectiveness 4. Pertinent marketing experiences that propriate to review the data submitted may influence a determination as to the already exists. Investigations may be safety of combinations of the individual to it and to prepare a report containing corroborated by partially controlled or active components. x its conclusions and recommendations to uncontrolled studies, documented clini­ 5. Pertinent medical and scientific litera­ the Commissioner of Food and Drugs cal studies by qualified experts, and re­ ture. with respect to the safety, effectiveness, ports of significant human experience C. Finished biological product. and labeling of the biological products during marketing. Isolated case reports, 1. Controlled studies. in the designated category under review. 2. Partially controlled or uncontrolled random experience, and reports lacking studies. (1 )A panel may also consult any indi­ the details which permit scientific eva - 3. Documented case reports. vidual or group. uation will not be considered.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4323

(3) The benefit-to-risk ratio of a of the product and the potential benefits (g) Final order. After reviewing the biological product shall be considered in and risks likely to result from the con­ comments, the Commissioner of Food determining safety and effectiveness. tinued use of the product for a limited and Drugs shall publish in the F ederal (4) A biological product may combine period of time while the questions raised R e g is t e r a fin a l order on the matters two or more safe and effective active concerning the product are being re­ covered in the proposed order. The final components: (i) When each active com­ solved by further study. order, shall become effective as specified ponent makes a contribution to the (f) Proposed order. After reviewing thein the* order. claimed effect or effects; (ii) when com­ conclusions and recommendations of the (h) Additional studies. (1) Within 30 bining of the active ingredients does not advisory review panel, the Commissioner days following publication of the final decrease the purity, potency, safety, or of Food and Drugs shall publish in the order, each licensee for a biological prod­ effectiveness of any of the individual ac­ F ederal R e g is t e r a proposed order uct designated as requiring further study tive components; and (iii) if the combi­ containing: to justify continued marketing on an in­ nation, when used under adequate direc­ (1) A statement designating the bio­ terim basis, pursuant to paragraph (f) tions for use and warnings against un­ logical products in the category under re­ (3) of this section, shall satisfy the Com­ safe use, provides rational conclurent view that are determined by the Com­ missioner of Food and Drugs in writing preventive therapy or treatment for a missioner of Food and Drugs to be safe that studies adequate and appropriate to significant proportion of the target and effective and not misbranded. This resolve the questions raised about the population. statement may include any condition re­ product have been undertaken, or the (5) Labeling shall be clear and truth­ lating to active components, labeling, Federal Government may undertake the ful in all respects and may not be false tests required prior to release of lots, studies. The Commissioner may extend or misleading in any particular. It shall product standards, or other conditions this 30-day* period if necessary, either to comply with section 351 of the Public necessary or appropriate for their safety review and act on proposed protocols or Health Service Act and sections 502 and and effectiveness, and may propose cor­ upon indication from the licensee that 503 of the Federal Food, Drug, and Cos­ responding amendments in other regula­ the studies will commence at a specified metic Act, and in particular with the tions under this Part 273. reasonable time. If no such commitment applicable requirements of §§ 273.600 is made, or adequate and appropriate through 273.605 and 1.106 of this (2) A statement designating the bio­ studies are not undertaken, the product chapter. logical products in the category under license or licenses shall be revoked. (e) Advisory review panel report to thereview that are determined by the Com­ (2) A progress report shall be filed on Commissioner. An advisory review panel missioner of Food and Drugs to be un­ the studies every January 1 and July 1 shall submit to the Commissioner of safe or ineffective, or to be misbranded, until completion. If the progress report together with the reasons therefor. All is inadequate or if the Commissioner of Food and Drugs a report containing the licenses for such products shall be pro­ panel’s conclusions and recommenda­ Food and Drugs concludes that the stud­ posed to be revoked. ies are not being pursued promptly and tions with respect to the biological prod­ (3) A statement designating the bio­ diligently, or if interim results indicate ucts falling within the category covered logical products not included in either of the potential benefits do not outweigh by the panel. Included within this report the above two statements on the basis of the potential risks, the product license or shall be : the Commissioner of Food and Drugs de­ licenses shall be revoked. (1) A statement which designates thosetermination that the available data are (3) Promptly upon completion of the biological products detemiined by the insufficient to classify such biological studies undertaken on the product, the panel to be safe and effective and not products under either subparagraphs (1) Commissioner of Food and Drugs will re­ misbranded. This statement may include or (2) of this paragraph. Licenses for view all available data and will either any condition relating to active com­ such products may be proposed to be re­ retain or revoke the product license or ponents, labeling, tests required prior to voked or to remain in effect on an interim licenses involved. In making this review release of lots, product standards, or basis. Where the Commissioner deter­ and evaluation the Commissioner may other conditions necessary or appropriate mines that the potential benefits out­ again consult the advisory review panel for their safety and effectiveness. weigh the potential risks, the proposed which prepared the report on the prod­ (2) A statement which designates order shall provide that the product li­ uct, or other advisory committees, pro­ those biological products determined by cense for any biological product, falling fessional organizations, or experts. The the panel to be unsafe or ineffective, or within this paragraph will not be revoked Commissioner shall take such action by to be misbranded. The statement shall but will remain in effect cm an interim notice published in the F ed er al R e g is t e r . include the panel’s reasons for each such basis while the data necessary to support (i) Court Appeal. The final order(s) determination. its continued marketing are being ob­ published pursuant to paragraph (g) of (3) A statement which designates tained for evaluation by the Food and this section, and any notice published those biological products determined by Drug Administration. The tests neces­ pursuant to paragraph (h) of this sec­ the panel not to fall within either sub- sary to resolve whatever safety or effec­ tion, consitute final agency action from paragraph (1) or (2) of this paragraph tiveness questions exist shall be which appeal lies to the courts. The Food and Drug Administration will request on the basis of the panel’s conclusion described. that the available data are insufficient to consolidation of all appeals in a single (4) The full report or reports of the classify such biological products, and for court. Upon court appeal, the Commis­ panel to the Commissioner of Food and which further testing is therefore re­ sioner of Food and Drugs may, at his dis­ quired. The report shall recommend with Drugs. as much specificity as possible the type cretion, stay the effective date for part The summary minutes of the panel meet­ or all of the final order or notice, pend­ of further testing required and the time ing or meetings shall he made available to Period within which it might reasonably interested persons upon request. Any inter­ ing appeal and final court adjudication. be concluded. The report shall also rec­ ested person may, within 60 days after pub­ Effective date. This order shall become lication of the proposed order in the F ederal ommend whether the product license effective on February 13, 1973. should or should not be revoked, thus R egister, file with the Hearing Clerk of the Permitting or denying continued manu­ Food and Drug Administration written com­ Dated: February 8, 1973. facturing and marketing of the biologi­ ments in quintuplicate. Comments may be accompanied by a memorandum or brief in S h e r w i n G ar d n e r , cal product pending completion of the support thereof. All comments may be re­ testing. This recommendation will be Deputy Commissioner viewed at the office of the Hearing Clerk dur­ of Food and Drugs. on an assessment of the present ing regular working hours, Monday through evidence of the safety and effectiveness Friday. [FR Doc.73-2826 Filed 2-12-73;8:45 am]

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 » 0.29----- 3 4324 RULES AND REGULATIONS

Title 26— Internal Revenue witnesses.” In fact, Members of the Com­ rules allow Saturdays, Sundays, and hol­ CHAPTER I— INTERNAL REVENUE SERV­ mission regularly attended the Docket idays to be excluded in computing due ICE, DEPARTMENT OF THE TREASURY No. R71-1 hearings; they heard the evi­ dates. dence; and they were personally familiar Grouping of parties. ATCMU and Pen­ SUBCHAPTER D— MISCELLANEOUS EXCISE TAXES with the entire record. The Commission ney complain about the rules’ provisions intends to follow the same course in the for grouping of two or more parties. [T.D. 7218] future. ATCMU’s concern is thus totally These rules allow the agency to require PART 53— FOUNDATION EXCISE TAXES unwarranted. parties who have substantially like in­ Foreign Private Foundations II. Many suggestions have been offeredterests and positions to join together for for changes in the Commission’s rules the purpose of making a combined pres­ Correction governing the conduct of hearings. entation. Recognizing that Commission In FR Doc. 72-19374 appearing at page Interlocutory appeals. Five parties note proceedings are so complex that limita­ 23918 in the issue for Friday, Novem­ that the present rules appear to prevent tions on redundancy are essential, the ber 10, 1972, in the penultimate line of interlocutory appeals of the presiding of­ Postal Service supports the present rules. § 53.4948-1 (a) (3), the figure “4943(a)” ficer’s rulings unless that officer certifies In our opinion, the Congress plainly should read “4948(a) the appeal. Although the parties offer authorized the Commission to adopt different suggestions for change, all agree rules, such as those for grouping parties, Title 39— Postal Service that the Commission should be empow­ which would assist the Commission in ered to grant interlocutory appeals— conducting its proceedings with “the ut­ CHAPTER III— POSTAL RATE COMMISSION without the presiding officer’s certifica­ most expedition consistent with proce­ [Docket No. R M 73-2] tion—in some circumstances. dural fairness to the parties * * *” (39 PART 3001— RULES OF PRACTICE AND Interlocutory appeal procedures for U.S.C. 3624(b)). The Congress expressly PROCEDURE agency scrutiny of rulings by presiding recognized that such rules could include officers must balance the advantages of the “limitation of testimony” (Id.). Com­ Evidentiary Hearings immediate review of important rulings bined with our statutory power to adopt F e b r u a r y 9,1973. against the possible interruption of the rules needed to “carry out [our] func­ I. Commission participation in hear­hearing process and other costs of piece­ tions” (39 U.S.C. 3603), the specific legis­ ings. Associated Third Class Mail Users meal review. Except in rare circum­ lative authorization fully, justifies our (ATCMU) and Direct Mail Advertising stances, interlocutory review is to be rules. Association (DMAA) want to require the discouraged. Ordinarily, the presiding Although both ATCMU and Penney Commission to preside en banc at all officer is in the best position to exercise question the rules’ fairness, the rules are evidentiary hearings. They thus object expert judgment on the procedural ques­ not unprecedented.3 Indeed, our rules to the present rules, which allow the tions which dominate interlocutory rul­ simply implement the Supreme Court’s presiding officer to be an Administra­ ings, to develop consistent and informed admonition that “the effectiveness and tive Law Judge, a single Commissioner, decisions, and to direct discovery and clarity with which issues are presented or the Chairman if the hearing is con­ control the proceeding. in cases of * * * complexity might be ducted by the Commission en banc. After an exhaustive study of this ques­ significantly increased if even greater The Commission’s present rules, which tion, the Administrative Conference efforts were made to focus and consoli­ mirror the provisions of the Administra­ found that “ [plrocedures which dele­ date argumentation on behalf of parties tive Procedure Act (5 U.S.C. 556) in this gate the responsibility for allowing with essentially similar views.” * respect, are plainly lawful and proper. interlocutory appeals to presiding offi­ Naturally, our rules regarding group­ Evidentiary hearings before this Com­ cers, with a reserved power in the agency ing cannot be arbitrarily applied. Thus, mission are marked by numerous re­ to handle exceptional situations, have contrary to Penney’s concern, the group­ quests for technical rulings about testi­ proven most satisfactory.” a Our new rule ing rules do not cover settlement confer­ mony and about requests for discovery. is in line with the Administrative Con­ ences, where each party is free to stake Not only is it more practical for a single ference’s recommendations. In cases out its own position. As experience in the person rather than a group to rule upon when the presiding officer declines to cer­ Commission’s first rate case shows, the these requests, but an Administrative tify an interlocutory appeal, the Com­ grouping rules can and have been admin­ Law Judge is especially trained for this mission will not allow such an appeal ex­ istered without infringing upon any task. The Commission is convinced that cept in extraordinary circumstances, as party’s fundamental rights. In the ab­ the Administrative Law Judge’s presence specified in the new rule. sence of any showing of prejudice, the at the hearings expedites agency pro­ Procedural deadlines. In order to expe­ Commission is not prepared to abandon ceedings. dite the first rate case, the Commission enlightened rules which may be essential When an Administrative Law Judge established tight procedural deadlines. for expediting its proceedings. presides, the agency also has the option In response to comments from four par­ Rebuttal testimony. The Postal Serv­ of allowing that officer to publish an ini­ ties, the Commission has extended the ice asks that the rules be amended to tial decision. This procedure, which is time limits for answers to requests for specify that it has the right to offer “desirable and usually followed,” 1 sharp­ discovery, for briefs on exceptions, and rebuttal evidence. In accordance with the ens the issues presented and allows hte for certain other pleadings. Administrative Procedure Act (5 U.S.C. participants to focus their arguments The Commission will continue “to con­ 556(d)), the Commission’s present rules upon the fundamental questions. As 4 duct its proceedings with utmost ex­ (39 CFR 3001.30(d)) already give the result, it normally speeds rather than de­ pedition consistent with procedural fair­ lays the final Commission decision. ness to the parties * * * (39 U.S.C. 3624 8 Note, for example, Professor Davis’ ap­ In complaining against the use of an (b) ). If circumstances warrant, the pre­ proval of 18 CFR 1.8(g), an FPC rule allowing Administrative Law Judge, ATCMU and siding officer is fully empowered under the presiding officer to lim it presentations by DMAA rely upon a letter which ATCMU our rules to prescribe shorter procedural two or more intervenors having substantially filed before the hearings in the Commis­ deadlines. However, if the presiding of­ like interests and positions. 1 K. Davis, Ad­ ministrative Law (1958), p. 566, note 30. sion’s first case, Docket No. R71-1. At ficer requires a pleading to be filed within a time period of 5 days or less, the new * Permian Basin Area Rate Cases, 390 U.b. that time ATCMU expressed concern 747, 766, note 32-(1968). See also Office or that, unless the Commissioners presided C om m unication o f United Church of Chris at those hearings, they would be “in­ a 1970-71 Report of ; the Administrative v. FCC, 359 F. 2d 994 (D.C. Cir. 1966), where sulated from first-hand exposure to the Conference of the United States, July 1971, Judge Burger, commenting on the problems pp. 50-51 (Recommendation No. 23). See inherent in multiparty proceedings, no e also Gellhorn, Interlocutory Appeal Proce­ that “it is no novelty in the administrativ 1 See Florida Economic Advisory Council v. dures in Administrative Hearings, Adminis­ process to require consolidation of Pe’;1"P. FPC, 251 F. 2d 643, 647 (D.C. Cir. 1957) cer­ trative Conference of the United States and briefs to avoid multiplicity of parti tiorari denied, 356 U.S. 959 (1958). (April 19,1971). and duplication of effort.” 359 F. 2d at 10

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4325

Service the right to present opening and finance and to authorize data collection. ings and, in fact, allowed the Service to closing evidence in rate and classification This, we believe, is an appropriate matter present supplemental testimony in the proceedings. Indeed, the Service was for trade associations to discuss with recent rate case. Accordingly, no rules routinely granted the right to offer re­ their member companies before under­ change is needed. buttal testimony during the first rate taking to represent those companies be­ The Service also wants the rules modi­ case. Our present rules are thus clear fore the Commission. In the last rate fied so as to establish that the Service on this point and do not need amend­ case, some trade associations did present may initiate rate and classification cases ment. compilations of individual member- without filing “suggested” changes. In Motions during hearings. During the company data. In the future, if trade fact, however, the Service filed suggested hearings in the first rate case, the Com­ associations are unable or unwilling to rate changes in Docket No. R71-1 and mission received motions involving pro­ present necessary evidence, the Commis­ suggested classification changes in cedural matters which the presiding offi­ sion may be forced to required that the Docket No. MC73-1. As a practical mat­ cer should rule upon. To avoid this member companies themselves intervene ter, therefore, the Commission sees no practice in the future, the new rules pro­ in order to present claims under 39 U.S.C. need to change the rules. vide that motions—except motions to 3622(b)(4). Service. Stating that the change will dismiss or terminate the proceeding— On the other hand, the Commission is enable it to respond promptly to plead­ should be addressed to the presiding offi­ not persuaded that, as the Service sug­ ings, the Service asks that it receive cer during the hearings. gests, trade associations must always six copies of all documents. No party has III. One of the innovative features ofprovide any individual-company infor­ objected, and we will grant this request. the Act is its mandate for the Commis­ mation which is requested. In some in­ Conferences. Four parties object to the sion to adopt rules providing “discovery stances, the expense or prejudice result­ rule that informal, off-the-record pre- both from the Postal Service and the ing from furnishing the information may hearing conferences “shall be presided parties to the proceeding.” (39 U.S.C. outweigh its probative value. The pre­ over by the Commission’s officer desig­ 3624(b) (3) ) While the Commission finds siding officer is uniquely able to appraise nated to represent the interest of the that its discovery rules need only minor the facts of each situation and to balance general public or such other person change, several suggestions also war­ the conflicting considerations. Since our as the participants may select.” (39 CFR rant comment. present rules properly leave this task to 3001.24(b), emphasis supplied.) They are Individual-company data. Our pres­ the presiding officer, we will decline to concerned that the rule may be read as ent discovery rules require participants change them. though it embodied an inference favoring to furnish certain requested information Privileged material. TJie Service and selection of the Commission’s officer. No “as is available to the participant” (39 ATCMU suggest that our rule governing such inference is supported by the rule’s CFR 3001.25). In the first rate case, dis­ interrogatories can be read as allowing text, and none was intended. With this pute over these rules stemmed from the requests for privileged, nonrelevant in­ explanation, the rule is retained in its fact that many corporate mailers chose formation. The Commission agrees that present form. to participate in Commission proceedings the rule is ambiguous, and we have clari­ Briefs. As requested by ATCMU and through trade associations. Because of fied it accordingly. DMAA, we have revised our rules to in­ this, the Postal Service was obliged to ask Protective orders. Magazine Publishers sure that participants will have an op­ the trade associations to produce finan­ Association, Inc. (MPA) asks for a new portunity to file briefs after the cial and other information regarding provision specifying that protective or­ evidentiary hearings end. We will, how­ their individual member companies. ders may be issued to prevent disclosure ever, retain the rule which requires that Some trade associations resisted discov­ of confidential commercial data. The briefs must be completely self-contained ery on the ground that the information present rules already empower the and may not incorporate other pleadings for individual member companies was agency to issue such orders. Indeed, as by reference. Despite the Postal Service’s not “available” to the associations. MPA acknowledges, the presiding officer reservations, the Commission is con­ Both the Postal Service and two trade issued such an order on MPA’s behalf in vinced that participants are encouraged associations, DMAA and ATCMU, sug­ the recent rate case. As we see it, the by this rule to refine and clarify their gest that the rules be amended to define present rules are ample without change. final arguments to the presiding officer a trade association’s obligation to pro­ Filing and service. Although 39 CFR and to the Commission. (See also Order vide individual member-company infor­ 3001.42(b) classifies discovery pleadings No. 27, para. 2(b), Feb. 2, 1972.) mation. On the one hand, the Service as “public records,” our rules do not now Intervention. During the last rate case, wants the associations to be required to require copies to be lodged with the the Commission authorized a number of obtain and provide such information. In Commission. The new rules will correct mailers to participate although those contrast, DMAA and ATCMU want to this omission. They also require partici­ mailers were late in filing their requests provide only such information as their pants to serve discovery pleadings upon for leave to intervene. In each instance, member companies are required—as a other participants who request copies. the Commission found that the mailer condition of membership—to furnish to IV. Many suggestions involve the ruleshad satisfied the rule which authorizes the association. relating to filings, service, conferences, late filing for good cause shown. Believ­ The Commission is not able to accede briefs, and intervention. ing that the Commission has been too to either request. At one extreme, the Filings. On its own motion, the Com­ lenient in allowing late intervention, the trade associations’ proposal could de­ mission has decided to publish a F ederal Service recommends that the rule be prive the Commission of essential infor­ R e g is t e r notice whenever the Service made more stringent. mation. The trade associations must rec­ files a formal request for a recommended In our opinion, the Postal Service fails ognize that they participate in Com­ or advisory opinion. Both the Service and to give sufficient weight to the public mission p roceedings essentially as a the Commission voluntarily published interest in allowing full participation convenience for their member companies. such notices when the first rate case was by mailers in Commission proceedings. The trade associations do not ordinarily filed. The nationwide interest in Com­ Recent court decisions are uniformly challenge rate and classification changes mission proceedings requires that the critical of any attempt to exclude inter­ because of the financial effect upon the Commission’s practice be made manda­ ested ratepayers from administrative associations themselves; they assert tory. proceedings on the basis of technicalities. claims of impact bn behalf of their mem­ Our rules require the Service to file Indeed, “users of the malls” have a stat­ bers collectively. If these impact claims its direct evidence together with its for­ utory right to participate in this Com­ are not supported by financial data for mal requests for Commission action. The mission’s hearings if they comply with “he member companies, the Commission Postal Service is concerned that these the Commission’s regulations. (See 39 cannot evaluate them. rules might preclude it from submitting U.S.C. 36Q3, 3624(a) ; 39 CFR 3001.20.) The Commission recognizes that trade newly available evidence during the Recognizing this, the Commission “has associations may have to make special hearings. However, the presiding officer been disposed to allow late intervention rangements with their members to has full authority to regulate the hear- where a reasonable basis for failure to

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4326 RULES AND REGULATIONS make timely filing has been shown and the rule provides for timely action on re­ issues in pending proceedings. However, where .the proceeding will not be de­ quests, a statement of reasons for re­ under another Commission regulation! layed by such late intervention.” (Order fusals to disclose information, and notice the Litigation Division is already barred No. 12, June 16,1971.) Usually, the Com­ that denials of information may be ap­ from participating, or advising the mission has required late intervenors to pealed to the Commission. agency as to a formal decision except by take the case as they find it—that is, VI. The Commission has decided topublic, on-the-record action (39 CFR they are permitted to intervene subject make certain changes in rules relating 3001.8). Consequently, no change in the to all previously-made rulings regarding to the conduct of its employees. rules is needed. procedural matters. The Commission’s Ex parte rules. The Commission is now VII. We turn last to a number of other policy regarding late interventions did governed by two separate rules regarding suggestions relating to nonhearing not impede the first rate case and should ex parte communications. One rule (39 matters. be retained. CFR 3001.7) was promulgated by the Two additional suggestions of the In­ Clearly, the Commission has sufficient Commission as part of the procedural stitute warrant adoption. The definition power under present rules to deny late regulations issued in January 1971. Sub­ of “person” (39 CFR 3001.5(f)) will be intervention where it would prejudice sequently, the Civil Service Commission, clarified to include a “public or private the rights of the Service or other acting pursuant to Executive Order No. organization.” And we will expand the participants. 11570, issued Standards of Conduct time for filing comments on notice of V. The Institute for Public Interestwhich prescribed new ex parte rules for proposed rulemaking from 15 days to 30 Representation (Institute), organized by this Commission. days.® Georgetown University, has submitted Six parties ask the Commission to The Institute has also asked the Com­ comments about the rules’ provisions for relax the ex parte rules issued by the mission to adopt certain recommenda­ “public information” (39 CFR 3001.42). Civil Service Commission. Their parti­ tions related to Recommendation No. Although the Commission does not ac­ cular complaint is that those regulations 28 of the Administrative Conference. The cept all the Institute’s suggestions, it prohibit our Litigation Division from Conference’s recommendation entails agrees that certain changes are con­ communicating privately on matters of far-reaching proposals to encourage in­ structive. substance with other participants. dividuals and citizen organizations to Exempt records. The rules classify As we see it, however, this restriction participate in administrative hearings. eight categories of records ets being non­ is required. The President specifically This matter requires additional study by public information. The first six cate­ ordered that the Civil Service Commis­ the Commission and will not be consid­ gories are taken almost verbatim from sion Rules provide for “strict control of ered as part of this rulemaking pro­ the Freedom of Information Act (5 U.S.C. ex parte contacts with the * * * Com­ ceeding. 552) and are not challenged in sub­ missioners or employees of the Commis­ Section 3001.1 of the Commission’s stance. sion * * *” (Exec. Order No. 11570, January 1971 rules contains general in­ emphasis supplied). Nothing in the Presi­ The seventh category is composed of formation regarding the Commission and dent’s directive suggests that some em­ its offices. On November 18, 1971, the certain intra-agency documents. Al­ ployees should be covered while others though those documents are included Commission adopted organization regu­ should be exempt. lations which made this provision of the within the Freedom of Information Act The Civil Service Commission rules definition of nonpublic records (5 U.S.C. January 1971 rules redundant (39 CFR were coordinated with an intergovern­ 3002.2 and 3002.3). We will therefore 552(b) (5)), the Institute properly notes mental task force which included repre­ that it may be confusing to list them delete the present § 3001.1 and, in its sentatives of the Justice Department. At place, substitute a general guideline for as a separate category. We agree and the time the task force considered those will revise the rules clarify that these construing the rules of practice and rules, its attention was drawn to the procedure. documents are an illustrative example Commission’s January 1971 rule (39 of the six listed Freedom of Information . CFR 3001.7), which exempted the Liti­ After careful consideration, we are not Act categories. gation Division from ex parte prohibi­ persuaded that our rules regarding com­ The Commission will take similar ac­ tions. The task force decline to follow plaints and subpoenas need change at tion with regard to the eighth category this approach and, instead, made the this time. Nor has a sufficient case been of information—unaccepted offers of Civil Service Commission prohibition ap­ made to support development of rules settlement. Despite the Institute’s views, plicable to all employees. Consequently, governing proceedings on possible re­ we are not convinced that such settle­ although some parties now ask us to mand or resubmission of Commission ment offers should be classified as public conform the Civil Service Commission decisions. information. Other agencies treat them rules to our January 1971 rule, their The Commission has carefully con­ as examples of privileged commercial or suggestion would in effect undo the task sidered comments requesting the Com­ financial information, which the Free­ force’s deliberate decision. That step mission to adopt rules allowing limited dom of Information Act classifies as non­ would be plainly improper. intervention. On February 5, 1973, the public. (See e.g., 18 CFR 1.36(c) (15) (v ).) Consequently, the Commission adheres Commission adopted rules allowing Moreover, the Institute has not addressed to the ex parte restrictions promulgated limited participation in Commission pro­ itself to the possible effect of the statu­ for it by the Civil Service Commission. ceedings by persons who choose not to tory provision exempting from disclo­ To avoid future confusion, the Commis­ become full parties (38 FR 3510, Feb. 7, sure “information prepared for use in sion has modified its January 1971 rule 1973). Moreover, it should be noted connection with proceedings under chap­ to eliminate certain inconsistencies be­ that our rules have always empowered ter 36 of” the Postal Reorganization Act. tween it and the Civil Service Commis­ the presiding officer to exempt par­ (See 39 U.S.C. 410(c) (4).) sion regulations. ticipants—who show good cause— Requests. We will revise the rules for Former employees. The Commission’s requesting information. In lieu of the January 1971 rules contained provisions • The Institute is also concerned about the Institute’s suggested language, the new for the disqualification of former em­ Commission’s request (in this rulemaking rule is patterned after recommendations ployees from Commission proceedings proceeding) for interested persons to file a made by the Administrative Conference (39 CFR 3001.6(f)). Since these provi­ notice of in tention to participate before filing and by the House Committee on Govern­ sions have been superseded by the Civil comments. Contrary to the Institute’s view, ment Operations.5 Among other things, Service Commission’s Standards of Con­ this was intended solely as a convenience to duct (39 CFR 3000.735-303 and 316), those parties who wished other parties to they will be deleted. serve them with copies of comments. The 5 1970-71 Rept. of the Administrative Con­ filing of a notice of intention was not a re­ Other. ATCMU and DMAA ask that quirement for participation in the rule- ference of the U.S., July 1971, p. 12 (Recom­ our January 1971 ex parte rule (39 CFR mendation No. 24); House Comm, on Govern­ making proceeding. Indeed, although the in­ ment Operations, Administration of the 3001.7) be changed so that it prohibits stitute did not file such a notice, it was al­ Freedom of Information Act, H.R. Rept. No. the Litigation Division from communi­ lowed to file the comments which the Com­ 92-1419, 92 Cong., 2d Sess. (1972). cating with the Commission privately on mission has considered fully.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4327 from burdensome discovery procedures presiding officer or employee of the Com­ 9. Revise § 3001.21 to read: (§§ 3001.25(d) and 3001.26(c)). mission who, during the pendency of § 3001.21 Motions* Pursuant to section 3603 of the Postal any on-the-record proceeding, receives (a) Scope and Contents. An applica­ Reorganization Act, 39 U.S.C. 3603: It an offer of any communication concern­ ing any matter, substantive or proce­ tion for an order or ruling not otherwise is ordered, That the rules of practice and specifically provided for in this part shall procedure are amended as set forth dural, which is at issue or any substan­ tive matter which is likely to be at issue be by motion. Motions shall set forth below. It is further ordered, That since with particularity the ruling or relief the amendments are procedural in na­ in such proceeding shall decline to listen to such communication and explain that sought, the grounds and basis therefor, ture, they shall become effective on and the statutory or other authority re­ February 13, 1973. Accordingly, in light the matter is pending for determination. of the foregoing findings, and after care­ If unsuccessful in preventing such com­ lied upon, and shall be filed with the Sec­ ful consideration of the comments re­ munication, the recipient thereof shall retary and served pursuant to the provi­ sions of §§ 3001.9 to 3001.12. All motions ceived, the Commission hereby amends advise the communicator that he will Part 3001 of its regulations (39 CFR not consider the communication and to dismiss proceedings or other motions which involve a final determination of Part 3001), as follows: shall promptly and fully inform the Com­ 1. Amend the Table of Contents by mission in writing of the substance of and the proceeding shall be addressed to the Commission. After a presiding officer is substituting for the present § 3001.1 a the circumstances attending the com­ new § 3001.1 as follows: munication, so that the Commission will designated in any proceeding, and before the issuance of an initial decision pur­ Sec. be able to take appropriate action. Such 3001.1 Construction o f rules. written report shall be included in the suant to § 3001.39 or certification of the file maintained by the Secretary pursu­ record to the Commission pursuant to 2. Delete present § 3001.1 and replace § 3001.38, all other motions in that pro­ it with the following: ant to paragraph (b) of this section. * * * ♦ * ceeding shall be addressed to the presid­ § 3001.1 Construction o f rules. ing officer. 6. Amend paragraph (e) of § 3001.12 Ob) Answers. Within 10 days after a The rules in this part shall be liberally as follows: construed to secure just and speedy de­ motion is filed, or such other period as termination of issues, the Commission or presiding officer may § 3001.12 Service o f documents. fix, any participant to the proceeding 3. Revise paragraph (f) of § 3001.5 as * * * * * may file and serve an answer in support follows: (e) Method of service. Service may beof or in opposition to the motion pur­ § 3001.5 Definitions. made by first class mail or personal suant to §§ 3001.9 to 3001.12. Such an­ * # * ♦ * delivery to the address shown for the swers shall state with particularity the (f) “Person” means an Individual, a persons designated on the Secretary’s position of the participant with regard to partnership, corporation, trust, unincor­ service list. Service of any document upon the ruling or relief requested in the mo­ porated association, public or private the Postal Service shall be made by deliv­ tion and the grounds and basis and statu­ organization, or governmental agency. ering or mailing six copies thereof to tory or other authority relied upon. Un* * * * * . * the Office of the Assistant General Coun­ less the Commission or presiding officer sel, Postal Rate anti Mail Classifications otherwise provide, no reply to an answer § 3001.6 [Amended] Office, Ü.S. Postal Service, Washington, or any further responsive document shall 4. Amend § 3001.6 by deleting para­ DC 20260. be filed. graphs (f) (1) and (f) (2) in their en­ ***** 10. Amend paragraphs (a) and (b) of tirety. 7. Amend § 3001.15 to read: § 3001.25 as follows: 5. Revise paragraphs (a) and (c) of § 3001.25 Interrogatories for purpose of § 3001.7 as follows: § 3001.15 Computation o f time. discovery, § 3001.7 Ex parte communications. Except as otherwise provided by law, (a) Service and contents. In the in­ (a) Prohibition. To avoid the possi­in computing any period of time pre­ terest of expedition and limited to in­ bility or appearance of impropriety or of scribed or allowed by this part, or by any formation which appears reasonably cal­ prejudice to the public interest and per­ notice, order, rule or regulation of the culated to lead to the discovery of ad­ sons involved in proceedings pending Commission or a presiding officer, the missible evidence, any participant may before the Commission, no person who day of the act, event, or default after serve upon any other participant in a is a party to any on-the-record pro­ which the designated period of time be­ proceeding written interrogatories re­ ceeding or who is granted limited par­ gins to rim is not to be included. The last questing nonprivileged information rele­ ticipation in accordance with § 3001.19a day o f the period so computed is to be vant to the subject matter in such pro­ or his counsel, agent, or other person included unless it is a Saturday, Sunday, ceeding, to be answered by the partic­ acting on his behalf, nor any intercéder, or legal holiday for the Commission, in ipant served, who shall furnish such shall volunteer or submit to any member which event the period runs until the information as is available to the partic­ of the Commission or member of his per­ end of the next day which is neither a ipant. A participant through interroga­ sonal staff, to the presiding officer, or to Saturday, Sunday, or holiday. A part- tories may require any other participant auy employee of the Commission, any ex day holiday shall be considered as other to identify each person whom the other off-the-record communication re­ days and not as a holiday. In computing participant expects to call as a witnesjs garding any matter, either substantive or a period of time which is 5 days or less, at the hearing and to state the subject procedural, which is at issue, or any sub­ all Saturdays, Sundays, and legal holi­ matter on which the witness is expected stantive matter which is likely to be at days of the Commission are to be to testify. The participant serving the in­ issue in the on-the-record proceeding, excluded. terrogatories shall file a copy thereof except as authorized by law; and no with the Secretary pursuant to § 3001.9 commissioner, member of his personal 8. Revise paragraph (d) of § 3001.20 as follows: and shall serve copies upon other partic­ staff, presiding officer, or employee of the ipants who request them. commission, shall request or entertain (b) Answers and objections. Each in­ oy such communication. For the pur- § 3001.20 Formal interventions. ***** terrogatory shall be answered separately PosesMrf this section, the term “on-the- and fully in writing under oath, unless w - Proceeding” means a proceeding (d) Answers. Answers to petitions toit is objected to, in which event the rea­ noticed pursuant to § 3001.17. The prohi- intervene may be filed by any participant sons for objection shall be stated in lieu Paragraph shall apply in a proceeding or any person who has of any answer. An interrogatory other­ om the date of issuance of such notice. filed a petition to intervene therein no wise proper is not necessarily objection­ * • * * * later than 10 days after the petition to able because an answer would involve an (c) Offer of communications. A Com- intervene is filed. or the applicatipn of law to fact, but the ssioner, member of his immediate staff, * * * * * Commission or presiding officer may or-

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4328 RULES AND REGULATIONS der that such an interrogatory need not upon any other participant a written (c) Appeals not certified by the presid­ be answered until a prehearing con­ request for the admission, for purposes ing officer. If the presiding officer de­ ference or other later time. The answers of the pending proceeding only, of any clines to certify an appeal, a participant are to be signed by the person making relevant, unprivileged facts, including who has requested certification may them and the objections signed by the the genuineness of any documents or apply to the Commission for review. Un­ attorney making them. The party re­ exhibits to be presented in the hearing. less the Commission directs otherwise, sponding to the interrogatories shall The participant requesting the admission Its review of the application will be serve the answers and objections, if any, shall file a copy of the request with the based on the record and pleadings filed tories within 20 days of the service of the Secretary pursuant to § 3001.9 and shall before the presiding officer pursuant to interrogatories or within such other pe­ serve copies thereof upon other partici­ paragraph (b) of this section. riod as may be fixed by the presiding of­ pants who request them. (d) Action by the Commission. (1) The ficer, but before the conclusion of the (b) Answers and objections. Each mat­Commission may dismiss an appeal certi­ hearing. Copies of the answers and ob­ ter of which an admission is requested fied by the presiding officer if it deter­ jections, if any, to interrogatories shall shall be separately set forth and is ad­ mines that (i) the objection to the ruling be filed with the Secretary pursuant to mitted unless within 20 days after serv­ should be deferred until the Commis­ § 3001.9 and shall be served upon other ice of the request, or within such other sion’s consideration of the entire pro­ participants who request them. period as may be fixed by the presiding ceeding or (ii) interlocutory review is ***** officer, the participant to whom the re­ otherwise not warranted or appropriate quest is directed serves upon the partici­ under the circumstances. 11. Amend paragraphs (a) and (b) of pant requesting the admission a written § 3001.26 as follows: (2) Where the presiding officer has answer or objection addressed to the declined to certify an appeal, the Com­ § 3001.26 Requests for production o f matter, which shall be signed by the par­ mission will not allow an application for documents or things for purpose of ticipant or his attorney.^A participant review unless it determines (i) that the discovery. who answers or objects to a request for presiding officer should have certified the (a) Service and contents. In the inter­ admission shall file a copy of the answer matter, (ii) that extraordinary circum­ est of expedition and limited to informa­ or objection with the Secretary pursuant stances exist, and (iii) that prompt tion which appears reasonably calculated to § 3001.9 and shall serve copies thereof Commission decision is necessary to pre­ to lead to the discovery of admissible upon other participants who request vent g rave detriment to the public evidence, any participant may serve on them. interest. any other participant to the proceeding ***** (3) The Commission may issue an a request to produce and permit the par­ 13. Revise § 3001.32 to read: order accepting an interlocutory appeal ticipant making the request, or someone within 15 days after the presiding officer acting in his behalf, to inspect and copy § 3001.32 Appeals from rulings of the certifies the appeal or a participant files any designated documents or things presiding officer. an application for review. If the Com­ which constitute or contain matters, not (a) General policy. The Commission mission fails to issue such an order, leave privileged, which are relevant to the will not review a ruling of the presiding to appeal from the presiding officer's subject matter involved in the proceed­ officer prior to its consideration of the interlocutory ruling shall be deemed to ing and which are in the custody or con­ entire proceeding except in extraordinary be denied. If the Commission issues an trol of the participant upon which the circumstances. This section specifies the order accepting an appeal, it may rule request is served. The request shall set showing which participants must make upon the merits of the appeal in that forth the items to be inspected either by in order to appeal interlocutory rulings. order or at a later time. individual item or category, and describe (b) Appeals certified by the presiding (e) Effect of appeals. Unless the pre­ each item and category with reasonable officer. (1) Before the issuance of an siding officer or the Commission so or­ particularity, and shall specify a reason­ initial decision pursuant to § 3001.39(a) ders, the certification of an appeal or able time, place and manner of making or the certification of the record to the the filing of an application for review inspection. The participant requesting Commission pursuant to § 3001.38(a), shall not stay the p roceeding or the the production of documents or things rulings of the presiding officer may be effectiveness of any ruling. shall file a copy of the request with the appealed when the presiding officer cer­ (f) Review at conclusion of proceed­ Secretary pursuant to § 3001.9 and shall tifies in writing that an interlocutory ing. If an interlocutory appeal is not serve copies thereof upon other partic­ appeal is warranted. The presiding officer allowed or requested, objection to the ipants who ask for them. shall not certify an appeal unless the ruling may be raised on review of the (b) Answers and objections. The par­ officer finds that (i) the ruling involves presiding officer’s initial decision, or, if ticipant upon whom the request is served an important question of law or policy the initial decision is omitted, at the con­ shall serve a written answer on the par­ concerning which there is substantial clusion of the proceeding. ticipant who filed the request within 20 ground for difference.of opinion and (ii) (g) Form, filing, and service of docu­ days after the service of the request, or an immediate appeal from the ruling ments. Requests for certification, appli­ within such other period as may be fixed will materially advance the ultimate ter­ cations for review, and any responses by the presiding officer. The answer shall mination of tiie proceeding or subsequent shall be in writing and shall be in con­ state, with respect to each item or cate­ review will be an inadequate remedy. formity with §§ 3001.10 and 3001.11. They gory, that inspection will be permitted as (2) A request for the presiding officer shall be filed and served pursuant to requested unless the request is objected to certify an appeal shall set forth with §§ 3001.9 and 3001.12. to, in which event the reason for the ob­ specificity the reasons that a participant jection shall be stated. If objection is believes that an appeal meets the criteria 14. Revise paragraph (a) of § 3001.34 made to part of an item or category, the of paragraph (b) (1) (i) and (1) (ii) as follows: part shall be specified. The participant of this section. Such requests shall also answering the request shall file a copy of state in detail the legal, policy, and fact­ 3001.34 Briefs. the answer with the Secretary pursuant ual arguments supporting the partici­ (a) When filed. At the close of the tak- to § 3001.9 and shall serve copies thereof pant’s position that the ruling should ig of testimony in any proceeding, tn upon other participants who request be modified. If the appeal is from a rul­ Commission or the presiding officer shau ing rejecting or excluding evidence, such x the time for the filing and service _ them. request shall include a statement of the riefs, giving due regard to the Jameiy * * * * * substance of the evidence which the par­ »suance of a recommended decision 12. Amend paragraphs (a) and (b) of ticipant contends would be adduced by dvisory opinion to the Postal Servi § 3001.27 as follows: the excluded evidence and the conclu­ Ithin the contemplation of ^ctio sions intended to be derived therefrom. 641(a) and 3661 of the Act. In addition* § 3001.27 Requests for admissions for ubject to such consideration, due reg purpose o f discovery. (3) The presiding officer may request responsive pleadings from other partic­ hall be given to the nature of the p (a) Service and content. In the interest ipants prior to ruling upon the request ceding, the complexity and of expedition any participant may serve to certify an appeal. f the issues Involved, and the magni

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4329

of the record. In cases subject to a limita­ reasons therefor. Advance notice shall (3) Any proposed testimony or exhibit tion on the time available to the Com­ not be required for rules subject to 5 filed with the Commission but not yet of­ mission for decision, the Commission U.S.C. 553(d). fered or received in evidence. shall generally direct that each partici­ * * * * * (4) All presiding officer actions and all pant shall file a single brief at the same 18. Revise § 3001.42 to read: presiding officer correspondence and time. In cases where, because of the memoranda to or from others except nature of the issues and the record or § 3001.42 Public information and re­ within his own office; the limited number of participants in­ quests. (5) All Commission orders, notices, volved, the filing of initial and reply This section prescribes the rules gov­ findings, determinations, and other ac­ briefs, or the filing of initial, answering, erning: Publication of recommended de­ tions in any matter or proceeding and all and reply briefs, will not unduly delay cisions, advisory opinions, and public re­ Commission minutes which have been the conclusion of the proceeding and ports; and records of the Commission. approved. will aid in the proper disposition of the (a) Notice and publication. Service of (6) All Commission correspondence re­ proceeding, the participants may be di­ intermediate and recommended deci­ lating to any furnishing of data or in­ rected to file more than one brief and sions, advisory opinions and public re- formation by the Postal Service. at different times rather than a single t ports upon parties to the proceedings is (7) Commission correspondence with brief at the same time. The presiding 'provided in §§ 3001.12(a) and 3001.30(d). respect to the furnishing of data, infor­ officer or the Commission may also order Descriptions of the Commission’s organi­ mation, comments, or recommendations the filing of briefs during the course of zation, its methods of operation, state­ to or by another branch, department, or the proceeding. ments of policy and interpretations, agency of the Government where fur­ procedural and substantive rules, and 15. Amend § 3001.35 to read: nished to satisfy a specific requirement amendments thereto will be filed with of a statute or where made public by that § 3001.35 Proposed findings and con­ and published in the F ederal R e g is t e r . branch, department or agency. clusions. Commission recommended decisions, ad­ (8) Commission correspondence and The Commission or the presiding offi­ visory opinions and public reports, reports on legislative matters under con­ cer may direct the filing of proposed Commission orders, and intermediate sideration by the Office of Management findings and conclusions with a brief decisions will be released to the press and and Budget or Congress but only if and statement of the supporting reasons for made available to the public promptly. after made public or released for pub­ each proposed finding and conclusion. (b) Public records. The public records lication by that Office or the Commis­ of the Commission include : sion or Member of Congress involved. 16. Revise paragraph (a) of §3001.40 (1) All submittals and filings as fol­ (9) Commission correspondence on the as follows: lows: , interpretation or applicability of any § 3001.40 Exceptions to intermediate (1) Requests of the Postal Service for statute, rule, regulation, recommended decisions. recommended decisions or advisory decision, advisory opinion, or public re­ opinions, public reports, complaints (both (a) Briefs on exceptions and opposing port issued or administered by the Com­ formal and informal), and other papers mission and letters of opinion on that exceptions. Any participant in a proceed­ seeking Commission action; ing may file exceptions to any inter­ subject signed by the General Counsel mediate decision by filing a brief on (ii) Financial, statistical and other re­ and sent to others than the Commission, exceptions with the Commission within ports to the Commission, and other fil­ a Commissioner, or any of the staff. 30 days after the date of issuance of the ings and submittals to the Commission (10) Copies of all filings by the Com­ intermediate decision or such other time in compliance with the requirements of mission, and all orders, judgments, as may be fixed by the Commission. Any any statute, Executive order, or Com­ decrees, and mandates directed to the participant to a proceeding may file a mission rule, regulation, or order; Commission in Court proceedings involv­ response to briefs on exceptions within (iii) All answers, replies, responses, ob­ ing Commission action and all corre­ 20 days after the time limited for the jections, protests, motions, stipulations, spondence with the courts or clerks of filing of briefs on exceptions or such exceptions, other pleadings, notices, dep­ court. other time as may be fixed by the Com­ ositions, certificates, proofs of service, (11) The Commission’s administrative mission. No further response will be en­ transcripts, and briefs in any matter or and operating manuals as issued. tertained unless the Commission, upon proceeding; (12) All other records of the Commis­ motion for good cause shown or on its (iv) All «exhibits, attachments and ap­ sion except for those that are: own initiative, so orders. pendices to, amendments and corrections (i) Specifically required by Executive order to be kept secret in the interest of * * * * * of, supplements to, or transmittals or withdrawals of, any of the foregoing; •the national defense or foreign policy ; 17. Revise paragraph (a) of § 3001.41 (ii) Related solely to the internal per­ as follows: (v) A ny. Commission correspondence relating to any of the foregoing . sonnel rules and practices of the § 3001.41 Rule making proceedings. Commission; (2) All other parts of the formal record (iii) Specifically exempted from dis­ (a) General notice. Befaré the adop- in any matter or proceeding set for for­ closure by statute; any rule of general applicability, mal or statutory hearing and any Com­ or the commencement of any hearing on ... (iv) Trade secrets and commercial or mission correspondence related thereto. financial information obtained from a any such proposed rule making, the Com­ “Formal record” includes in addition to mission will cause general notice to be person and privileged or confidential; all the filings and submittals, any notice (v) Interagency or intra-agency mem­ given by publication in the F ederal or Commission order initiating the mat­ oranda or letters which would not be register, such notice to be published ter or proceeding, and, if a hearing is W * not less than 30 days prior to the available by law to a party other than an held, the following: the designation of agency in litigation with the Commis­ orí .. e<* f°r the consideration of the the presiding officer, transcript of hear­ sion; • fm? «î0n a Pr°Posed rule or rules or ings, all exhibits received in evidence, r the commencement of the hearing, (vi) Personnel and medical files and offers of proof, motions, stipulations, similar files, the disclosure of which 0n the proposed rule making, ex- proofs of service, referrals to the Com­ pt where a shorter period is reasonable would constitute a clearly unwarranted mission, and determination made by the invasion of personal privacy. Pvil. g0£d cause exists therefor. How- Commission thereon, certifications to the (13) The following are examples of rnnc « ere the Commission, for good Commission, and anything else upon information which is not part of the finds ^ impracticable, unneces- which action of the presiding officer or public records of the Commission: or contrary to the public interest the Commission may be based; it does not (i) Written communications between thJ nrf notice, it may proceed with include any unaccepted offer of settle­ or among the Commission, members of in™!^?Ptî?n of rules without notice by ment made by a party in the course of a the Commission, the Secretary, and ex­ effpf'?K>raÍing therein a finding to such proceeding and not formally submitted pressly designated members of the staff Cl ano a concise statement of the to the Commission. while particularly assigned, in accord-

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4330 RULES AND REGULATIONS ance with all applicable legal require­ for a recommended decision in accord­ Because the comments requested ex­ ments, to aid the Commission in the ance with this subsection, the Secretary emptions for additional compounds, drafting of any recommended decision, shall lodge a notice thereof with the Di­ more time will be required for scientific advisory opinion or public report and rector of the Federal Register for publi­ review and evaluation. Thus, in order findings, with or without opinion, or cation in the F ederal R e g is t e r . not to delay establishment of exemptions for the aforesaid 50 compounds, it is con­ report in any matter or proceeding; 21. Amend § 3001.72 to read: (ii) Unaccepted offers of settlement cluded that this order be published for in any matter or proceeding unless or § 3001.72 Filing of formal requests. them and that the additional compounds until made public by act of the offeror. Whenever the Postal Service deter­ be considered in a separate order. (c) Procedures applicable to requests mines to request that the Commission Having considered the comments re­ for records. Requests for records shall issue an advisory opinion on a proposed ceived and other relevant information, it be in writing and shall describe the rec­ change in the nature of postal services is concluded that: ords sought with sufficient specificity to subject to this subpart, the Postal Service 1. The proposal should be adopted. permit their identification. Requests shall file with the Commission a formal 2. Minor changes should be made in shall be addressed to the Secretary at request for such an opinion in accordance the reference citations ior petroleum the offices of the Commission. Within with the requirements of §§3001.9 to hydrocarbons. 15 days after receipt of a request for a 3001.11 and 3001.74. Such request shall Therefore, pursuant* to provisions of Commission record, the Secretary shall: be filed not less than 90 days in advance the act (sec. 408 (c), (e), 68 Stat. 512, (1) Inform the requestor where and of the date on which the Postal Service 514; 21 U.S.C. 346a (c), (e)), the au­ when the records may be inspected and, proposes to make effective the change in thority transferred to the Administrator if ascertainable, of the charge for fur­ the nature of postal services involved. of the Environmental Protection Agency nishing copies; or Within 5 days after the Postal Service (35 FR 15623), and the authority dele­ (2) Deny the request. A denial shall has filed a formal request for a recom­ gated by the Administrator for Pesticides be in writing; it shall cite the specific mended decision in accordance with this programs (36 _ FR 9038), § 180.1001 is exemption or exemptions under these subsection, the Secretary shall lodge a amended by revising paragraph (e) by rules authorizing the withholding of the notice thereof with the Director of the rewording the introductory statement records sought and shall inform the re­ Federal Register for publication in the and by alphabetically inserting new questor that he may, within 20 days, F ederal R e g is t e r . items in the table as follows: appeal the denial to title Commission. (Secs. 3603, 3622-3624, 8661, 3662, Postal Re­ § 180.1001 Exemptions from the re­ Appeals to the Commission shall be in organization Act; 84 Stat. 759, 760-761, 764; writing. The Commission will expedi­ quirement o f a tolerance. 39 U.S.C. 3603, 3622-3624, 3661, 3662; 5 U.S.G. ***** tiously consider all appeals and either 552, 553; 80 Stat. 383-384) grant or deny them in writing. (e) The following materials are ex­ (d) Procedure in event of subpoena. By the Commission. empted from the requirement of a If an officer or employee of the Commis­ [ s e a l ] J o s e p h A . F is h e r , tolerance when used in accordance with sion is served with a subpoena duces Secretary. good agricultural practice as inert (oi occasionally active) ingredients in pesti­ tecum, material which is not part qf the A ppendix A public files and records of the Commis­ cide formulations applied to animals: sion shall be produced only as authorized Comments were filed by the following: American Retail Federation. by the Commission. Service of such a Associated Third Class Mail Users. Inert ingredients Limits Uses subpoena shall immediately be reported Direct Mail Advertising Association, Inc. to the Commission with a statement of Fairchild Publications, Inc .1 Alkyl(C*-CM) Surfactants, all relevant facts. The Commission will Institute for Public Interest Representa­ benzenesulfonic emulsifier, related tion, Georgetown University Law 'Center. acid and its adjuvants of thereupon enter such order or give such ammonium, surfactants. instructions as it deems advisable. Magazine Publishers Association, Inc .1 calcium, J. C. Penney Company, Inc. magnesium, 19. Amend § 3001.52 to read: Second Class Mail Publications, Inc. potassium, sodium, and zinc § 3001.52 Filing o f formal requests. United States Postal Service.* salts. AlkylfCs-Cis) Surfactants, Whenever the Postal Service deter­ [FR Doc.73-2858 Filed 2-12-73;8:45 am] sulfate sodium related adjuvants mines to request that the Commission salt. of surfactants. Attapulgite-type Solid diluent, submit a recommended decision on Title 40— Protection of Environment clay. carrier. changes in rates or fees subject to this a-B utyl-om«ffa- Surfactants, subpart, the Postal Service shall file with CHAPTER I— ENVIRONMENTAL hydroxy-poly- emulsifier, related PROTECTION AGENCY (oxypropylene) adjuvants of the Commission a formal request for a block polymer surfactants. recommended decision. Such request SUBCHAPTER E— PESTICIDES PROGRAMS with poly­ oxyethylene); shall be filed in accordance with the PART 180— TOLERANCES AND EXEMP­ molecular weight requirements of §§ 3001.9 to 3001.11 and TIONS FROM TOLERANCES FOR PESTI­ 2,400-3,500. 3001.54. Within 5 days after the Postal CIDE CHEMICALS IN OR ON RAW AGRI­ • • • • * * Service has filed a formal request for a CULTURAL COMMODITIES recommended decision in accordance Calcium carbonate.. Solid diluent, Certain Inert Ingredients in Pesticide A A lT ip f with this subsection, the Secretary shall Formulations Applied to Animals Calcium silicate, Anticaking agent, lodge a notice thereof with the Director hydrated calcium solid diluent, A number of comments were received silicate. carrier. of the Federal Register for publication Castor oil, U .8.P__ Cosolvent. in the F ederal R e g is t e r . in response to the notice published in Castor oil, Surfactants, the F ederal R e g ist e r of September 9, polyoxyethylated; related adjuvants 20. Amend § 3001.62 to read: . the poly- of surfactants. 1972 (37 FR 18400), proposing establish­ Oxyethylene) §3001.62 Filing o f formal requests. ment of exemptions from tolerances for content averages 50 inert (or occasionally active) ingredi­ 40 moles. Whenever the Postal Service deter­ Citric add------Buffer. « , , mines to request that the Commission ents in pesticide formulations applied to Cumene (isopro­ Solvent, cosolvent. animals under provisions of section 408 pylbenzene). submit a recommended decision on es­ Cyclohexanone__... tablishing or changing the mail classi­ of the Federal Food, Drug, and Cosmetic Dextrose______t, Act; no requests for referral to an advi­ reetener; fication schedule, the Postal Service shall Dialkyl(C*-Ci«) Not more file with the Commission a formal re­ sory committee were received. dimethylammo- than quest for a recommended decision. Such nium chloride. 0.2% in silica request shall be filed in accordance with * Fairchild Publications, Inc., Magazine hy- the requirements of §§ 3001.9 to 3001.11 Publishers Association, Inc., and the Postal drated silica. and 3001.64. Within 5 days after the Service filed reply comments in addition to Diatomite (diato- Solid diluent, Postal Service has filed a formal request their initial comments. maceous earth). carrier.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4331

1. It has come to our attention that Inert ingredients lim it s U ses Inert ingredients lim its Uses § 73.552(b) (3) of the Commission’s rules pertaining to noncommercial educational Dichloro difluoro- Propellant; Polyethylene glycol Solvent, cosolvent. FM broadcast stations requires compari­ methane. (mean, molecular son of station frequency with an exter­ Diethyl phthalate.. Solvent, cosolventi weight 200-9,500). Dipropylene glycol Do. nal source to insure operation within the • * • monomethyl * * • tolerance prescribed in § 73.568. However, ether. block polymer adjuvants of „.(p-Dodecyl- Surfactants, emulsi­ with polyoxy­ surfactants. § 73.568 pertains to maintenance of phenyl)-omepa- fier; ethylene); molec­ modulation percentage. It is § 73.569 that hydroxypoly ular weight (oxyethylene) 1,800-9,000. pertains to frequency tolerance. In view produced, b y th e Propylene glycol— Solvent, cosolvent. of this, § 73.552(b) (3) should be amended condensation o f Propylene glycol Deactivate;, to refer to § 73.569 rather than § 73.568. 1 mole o f d o d e cy l- monomethyl emmolient. phenol (d o d e e y l ether. 2. Accordingly, it is ordered, That group is a p ro- PyrophylHte.______Solid diluent, § 73.552(b) (3) of the Commission’s rules pyiene tetramer carrier. isomer) w ith a n Silica aerogel (finely Component of and regulations is amended to read as average o f 4-14 powdered micro- antifoaming follows: or 30-70 m oles o f cellular silica agent. ethylene oxide; if foam having a § 73.552 Frequency monitors. a blend of p rod­ minimum silica ucts Is used, the content of 89.6%). * * * * * average n u m b er Silica,, hydrated Anticaking agent, of moles o f silica. solid diluent, (b> * * * ethylene oxide carrier. (3) The frequency of the station shall reacted to Soapstone______Solid diluent. produce a n y ■ Sodium isopropyl Surfactants, related be compared with an external frequency product that is a naphthalene adjuvants of source of known accuracy at sufficiently component o f th e sulfonate. surfactants. frequent intervals to insure that the fre­ blend shall b e in Sucrose...... Solid diluent, the range o f 4-14 carrier. quency is maintained within the toler­ or 30-70 m oles. Talc...... Do. ance prescribed in § 73.569. An entry Ethyl alcohol - Solvent, cosolvent; Triacetin (glyceryl Solvent, cosolvent. o-Hydro-omego- Surfactant, wetting triacetate). shall be made in the station log as to the hydroxypoly- agent. Trichlorofluoro- Propellant. method used and the results thereof . (oiyethylene).«- . methane. poly (oxypropyl- Wheat shorts______Solid diluent. ***** ene) poly- Xylene... . ______Solvent, cosolvent. (oiyethylene) 3. Since this amendment is editorial block copolym er; in nature, pursuant to the provisions erf 5 the m inim um Any person who will be adversely af­ U.S.C. 553(b)(3) (A) and (B>, and 553 poly (oxypropyl- fected by the foregoing order may at any ene) content is (d) (2) and (3), notice and public pro­ 27 moles an d the time on or before March 15, 1973 file cedure are not required and publication minimum molec­ with the Hearing Clerk, Environmental ular weight is of the amendment in the F ederal R e g is ­ 1,900. Protection Ageney, Room 3902A, Fourth t e r may be made less than 30 days prior Isopropyl alcoh ol___ Solvent, cosolvent. and M Streets SW., Waterside Mall, Kaolinite-type clay— Solid diluent, to the effective date of the amendment carrier. Washington, D.C. 2Q460, written objec­ Hence, this amendment shall be effective Kerosene, U .S .P . Solvent, cosolvent. tions thereto in quintuplicate. Objec­ February 9,1973. reagent. tions shall show wherein the person Magnesium carbon­ Solid diluent, 4. This amendment is made pursuant ate. carrier. filing will be adversely affected by the to the authority found in sections 4(i>, Methyl alcohol__ Solvent,, cosolvent. order and specify with particularity the Methylcelluiose_____ Dispersing-wetting 5(d) (1), and 303(r) of the Communica­ agent. provisions of the order deemed objec­ tions Act of 1934, as amended, and §> 0.231 Methyl isobutyl Solvent, cosolvent. tionable and the grounds- for the objec­ ketone. (d) of the Commission’s rules and regu­ Methylene chloride. . Do. tions. If a hearing is requested, the lations. Mineral oil, U.8.P.. Solvent, diluent. objections must state the issues for the Montmorillonite- Solid diluent, carrier. (Secs. 4, 5, 303, 48 Stat., as amended, 1066, type clay. hearing. A hearing will be granted if the 1068, 1082; 47 U.S.O. 154, 155, 303) Naphthalenesul- Surfactants, related objections are supported by grounds fonic acid and its adjuvants of sodium salt. surfactants. legally sufficient to justify the relief Adopted and released: February 1, “-(p-Nonylphenyl)- Surfactants, emul­ 1973v omegaAlydroxy- sifier, relate i sought. Objections may be accompanied poly (oxyethylene) adjuvants of by a memorandum or brief in support F ederal C ommunications produced by the surfactants. condensation of 1 thereof. C o m m i s s i o n , mole of nonyl- [ s e a l ] J o h n M. T o r b e t , phenol(nonyl Effective date. This order shall be­ group is a propyl­ Executive Director. ene trimer isomer), come effective on February 13,1973. [FR Doc.73-2831 Filed 2-12-73;8 :45 am ] with an average of (Sec. 408 (c>, (e), 68 Stat. 512, 514; 21 U.S.C. 4-14 or 30-90 moles: pf ethylene oxide; 346a(c), (e)) “ a blend of prod­ Title 49— Transportation ucts is used, tne Dated: February 5, 1973. average number of CHAPTER I— DEPARTMENT OF moles of ethylene E d w i n L . J o h n s o n , TRANSPORTATION oxide reacted to Acting Deputy Assistant Ad­ produce any prod­ SUBCHAPTER A— HAZARDOUS MATERIALS uct that is a com­ ministrator for Pesticides REGULATIONS BOARD ponent of the Programs. blend shall he [Docket No. HM-22; Amendments Nos. 171-16, in the range of [FR Doc.73-2635 Filed 2-12-73:8:45 am] 174-15,175-8] 4-14 or 30-90 moles. MATTER INCORPORATED BY REFERENCE Perchloroethylene. .. Solvent, cosolvent; Title 47— Telecommunication retroleum hydro­ Solvent, diluent; carbons, light, The purpose of these amendments to odorless, con­ CHAPTER I— FEDERAL COMMUNICATIONS the Hazardous Materials Regulations of forming to Titla COMMISSION 21, §121.1182 or the Department of TransportatiQn is to § 121.2594. PART 73— RADIO BROADCAST SERVICES update the following references: raroleum hydro­ Doi carbons, syn­ 1. The addenda to sections VIH (Divi­ thetic isoparaf- Noncommercial Educational FM Broadcast ™uc, conforming Stations; Correction sion I) and IX of the American Society to Title 21, B § 121.1154 or Order. In the matter of editorial of Mechanical Engineers Boiler and §121.2568. amendment of § 73.552(b) (3). Pressure Vessel Code.

No. 29- - 4 FEDERAL REGISTER, V O L 38, NO. 29-— TUESDAY, FEBRUARY 13, 1973 4332 RULES AND REGULATIONS

2. CGA Pamphlet C-8, “Standard for (9) IME Standard is titled, “IMEthe Motor Carrier Safety Regulations to Requalification of DOT-3HT Cylinders. Standard for the Safe Transportation of permit the use of coiled nylon brake tub­ 3. NFPA No. 58, “Storage and Handling Electric Blasting Caps in the Same Vehi­ ing for connections between towed and Liquefied Petroleum Gases.” cle With Other Explosives,” dated No­ towing motor vehicles operated in inter­ In addition, a reference to NACE vember 5,1971 (IME Safety Library Pub­ state or foreign commerce. Standard TM-01-69, “ Test Method Lab­ lication No. 22). This amendment grows out of a peti­ oratory Corrosion Testing of Metals for tion for rule making filed by Leaseway the Process Industries,” which was pre­ PART 174— CARRIERS BY RAIL FREIGHT Transportation Corp., a motor carrier viously omitted, has been added, and the which had participated in a 15-month title of the Bureau of Explosives’ Pam­ In § 174.600, paragraph (a) is amended to read as follows: field test program using coiled nylon tub­ phlet No. 22, in §§ 174.600(a) and 175.655 ing. The results of that test program, in (j) (3) Note 2, has been removed. § 174.600 In case o f a wreck. which Cleveland Motor Freight Lines On November 18,1972, the Board pub­ (a) Details involving the handling ofand Pacific Intermountain Express, Inc. lished a notice of proposed rule making, hazardous materials in the event of a also participated, were discussed in a no­ Docket No. HM-22; Notice No. 72-12 (37 tice of proposed rule making which the FR 24678) proposing to make the above wreck may be found in Bureau of Ex­ plosives Pamphlet No. 22. Director issued on August 9, 1972 (37 changes. All comments received were in FR 16001)..In the notice, the director agreement with the proposals. ♦ * * ♦ * proposed to allow the use of coiled nylon In addition to the changes proposed in tubing for brake connections between the notice, these amendments provide for PART 175— CARRIERS BY RAIL EXPRESS towed and towing vehicles and between the change of address of the American In § 175.655, note 2 following para­ the frame of a towed vehicle and adjust­ Petroleum Institute, and the inclusion of graph (j) (3) is amended to read as able axles of that vehicle. The proposal the Institute of Makers of Explosives’ follows: would also have required conventional Standard, “IME Standard for the Safe brake hose to meet the requirements of Transportation of Electric Blasting Caps § 175.655 Protection of packages. the current Society of Automotive in the Same Vehicle with Other Explo­ * * * * * Engineers Standards. sives.” These changes do not impose a (j) * * * As the notice reported, the results of burden on anyone, therefore, public no­ (3) * * * the test program were mixed. During the tice and procedure thereon is unneces­ Note 2: Details involving the handling of initial phases of the program, kinking of sary. radioactive materials in the event of an acci­ the tubing developed at its interface with In consideration of the foregoing, Parts dent can be found in Bureau of Explosives the hose coupler fittings. The kinking 171,174, and 175 of Title 49, Code of Fed­ Pamphlet No. 22. occurred because the spring guard, eral Regulations, are amended as follows: * * * * * which was installed at that location to prevent kinking, tended to come loose PART 171— GENERAL INFORMATION AND These a m e n d m e n ts are effective REGULATIONS from the fitting. Soon after this problem March 31, 1973. However, immediate became evident, one of the tubing manu­ In § 171.7, paragraphs (c)(7 ), (d)(1), compliance with the regulations, as facturers supplied a modified spring (d )(3 )(iii), and (d)(6) are amended; amended herein, is authorized. guard to the participating carriers for paragraphs (c)(14), (d)(8), and (d)(9) (Secs. 831-835 of Title 18, United States Code; further testing. The modification con­ are added to read as follows: sec. 9, Department of Transportation Act, sisted of installing the spring in the fit­ § 171.7 Matter incorporated by ref­ 49 U.S.C. 1657; Title VI; sec. 902(h), Federal ting nut and crimping the nut so that erence. Aviation Act of 1958, 49 U.S.C. 1421-1430, the spring could not come loose. It be­ ***** 1472, and 1655(c)) came clear that the way to prevent kink­ ing of the tubing was to insure that the (c) * * * Issued in Washington, D.C., on Febru­ ary 7,1973. spring remained in position and did not (7) API: American Petroleum Insti­ come loose. The modified spring guards * G . H. R ead, tute, 1801 K Street NW., Washington, DC and fittings were in use for approxi­ 20006. Captain, Alternate Board Member, for the U.S. Coast Guard. mately 9 months of the 15-month test • * * * • period. Regrettably, this fact was not (14) IME: Institute of Makers of Ex­ J am es F . R u do lph , initially reported to the Bureau and, plosives, 420 Lexington Avenue, New Board Member, for the hence, was not mentioned in the notice York, NY 10017. Federal Aviation Administration. of proposed rule making. However, the (d) * * * Bureau has assured itself that once this R obert A. K a y e , * * * * * Board Member, for the “fix” was completed, the kinking prob­ (1) ASME Code means sections VIII Federal Highway Administration. lem ceased to exist for that manufac­ (Division 1) and IX of the 1971 editiofi turer’s tubing. The objective of the of the “American Society of Mechanical M ac E . R ogers, requirement that the tubing must be in­ Engineers Boiler and Pressure Vessel Board Member, for the stalled so that it cannot kink at the fit­ Code,” and addenda thereto through Federal Railroad Administration. ting is to require use of this, or an June 30,1972. Note: Incorporation by reference pro­ equally effective, solution to the kinking problem. * * * * * visions approved by the Director of the In view of the foregoing, the Director (3) * * * Federal Register, February 9, 1973. has determined that the major technical (iii) CGA Pamphlet C-8 is titled, [FR Doc.73-2838 Filed 2-12-73;8 :45 am ] objection to the use of tubing, at least “ Standard for Requalification of DOT- as the means for making brake con­ 3HT Cylinders,” 1972 edition. nections between towed and towing CHAPTER III— FEDERAL HIGHWAY AD­ vehicles, no longer has validity. Suitable * * * * * MINISTRATION, DEPARTMENT OF means exist to remedy the kinking prob­ (6) NFPA Pamphlet No. 58 is titled, TRANSPORTATION lem at the tubing-hose coupler interface. “ Standard for the Storage and Handling SUBCHAPTER B— MOTOR CARRIER SAFETY The notice of proposed rule making of Liquefied Petroleum Gases,” 1972 REGULATIONS also proposed to allow the use of edition. [Docket No. MC-41; Notice No. 73-9] nylon tubing between the frame and ad" * * * ♦ * PART 393— PARTS AND ACCESSORIES justable axles of a towed vehicle. Tn NECESSARY FOR SAFE OPERATION test program did not relate to un* (8) NACE Standard TM-01-69 is particular application for coiled nyl° titled, “Test Method Laboratory Corro­ Coiled Nylon Brake Tubing tubing; the Bureau expected that com­ sion Testing of Metals for the Process The Director of the Bureau of Motor ments in response to the notice nng Industries,” 1969 edition. Carrier Safety is amending § 393.45 of contain data concerning frame-and-a -

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4333 justable-axle connections. However, no kinking could be obtained with a “pig­ (c) Nylon brake tubing. Coiled nylon information was submitted to indicate tail” having a minimum length of 2 brake tubing may be used for connections that coiled nylon tubing was suitable for inches measured to the inner face of the between towed and towing vehicles if— these connections, and the Director has fitting. There should be no maximum (1) The tubing conforms to the re­ concluded that it would not be prudent at limit on the length of the pigtail, said quirements for Type 3B nylon tubing this time to permit the use of nylon tub­ the comments, as long as the spring set forth in Society of Automotive Engi­ ing for this application. guard coverage remains unchanged. The neers Standard J844c, “Air Brake Tub­ Several comments stated that the Director agrees, and an appropriate ing and Pipe”, December 1979; notice contained no data comparing the change in the requirement has been (2) Thq coiled tubing has a straight failure rate of coiled nylon tubing and made. segment (pigtail) at each end that is at conventional rubber hose. That is true. In consideration of the foregoing, least 2 inches in length and is encased It is, of course, impossible to establish § 393.45 of the Motor Carrier Safety in a spring guard or similar device which a valid failure rate for a product in a Regulations (Subchapter B in Chapter prevents the tubing from kinking at the particular application when, because a HI of Title 49, CFR) is revised to read fitting at which it is attached to the regulation prohibits its use in that ap­ as set forth below. vehicle; and plication, it is never so used. However, Effective date. Compliance with (3) The spring guard or similar device the field trial of nylon tubing showed § 393.45 as revised is permissible on and has at least 2 inches of closed coils or that it did not succumb to the usual after the date of issue set forth below and similar surface at its interface with the types of failures that the Bureau’s field is mandatory on and after October 1, fitting and extends at least IV2 inches staff finds when it inspects vehicles 1973i into the coiled segment of the tubing equipped with rubber hose. Furthermore, (Sec. 204, Interstate Commerce Act, as from its straight segment. it appears that coiled nylon tubing has amended, 49 U.S.C. 304; sec. 6, Department of [FR Doc.73-2805 Filed 2-12-73;8 :45 am ] been successfully used by European and Transportation Act, 49 TJ.S.C. 1655, and dele­ Canadian carriers for some years. These gations of authority at 49 CFR 1.48 and 389.4) facts present convincing evidence that Issued on February 1, 1973. Title 14— Aeronautics and Space coiled nylon tubing is suitable for brake CHAPTER 1— FEDERAL AVIATION ADMIN­ R obert A. K a y e , connections between towed and towing Director, ISTRATION, DEPARTMENT OF TRANS­ vehicles. PORTATION Chrysler Corp.’s comments asked the Bureau of Motor Carrier Safety. [Docket No. 73-N W -l-AD , Arndt. 39-1593] Director to change the proposed require­ § 393.45 Brake tubing and hose, ade­ PART 39— -AIRWORTHINESS DIRECTIVES ment that hydraulic brake hose must quacy. meet the requirements set forth in SAE Boeing Model 707 Airplanes Standard J1401. Instead Chrysler said, (a) General requirements. Brake tub­ ing and brake hose must— There have been cracks emanating the Director should incorporate by refer­ from the barrel nut hole on the main ence Federal Motor Vehicle Safety (1) Be designed and constructed in a manner that insures proper, adequate, deck cargo door latch support fitting Standard No. 106, which establishes per­ that, if allowed to progress, could result formance requirements for hydraulic and continued functioning of the tubing or hose; in sudden depressurization or possible brake hose. Standard No. 106 applies in-flight loss of the main cargo door. only to hydraulic brake hose for use in (2) Be installed in a manner that in­ sures proper continued functioning of the Since this condition is likely to exist or passenger cars and multipurpose passen­ develop in other airplanes of the same ger vehicles. Chrysler said that it uses tubing or hose; brake hose conforming to the require­ (3) Be long and flexible enough to type design, an airworthiness directive is accommodate without damage all normal being issued to require inspection of the ments of that standard on all of its ve­ barrel nut area of the main deck cargo hicles equipped with hydraulic brakes, motions of the parts to which it is at­ and recommended that, for the sake of tached; door latch support fittings and replace­ uniformity, § 393.45 should adopt the (4) Be suitably secured against chaf­ ment as necessary. requirements of the Motor Vehicle ing, kinking, or other mechanical dam­ Since a situation exists that requires Safety Standard rather than those in age; Immediate adoption of this regulation, it SAE Standard J1401. (5) Be installed in a manner that pre­ is found that notice and public procedure SAE Standard J1401 is more stringent vents it from contacing the vehicle’s ex­ hereon are impracticable and good cause than Motor Vehicle Safety Standard No. haust system or any other source of high exists for making this amendment effec­ 106. It establishes a higher level of per­ temperatures; and tive in less than 30 days. However, in­ formance. Any hydraulic brake hose that (6) Conform to the applicable require­ terested persons have been afforded an conforms to the SAE standard also eon- ments of paragraph (b) or (c) of this opportunity to participate in the making forms, of necessity, to the requirements section. of this amendment. Some of these in­ of Standard No. 106. Furthermore, the (b) Special requirements for "brake terested parties desired an initial inspec­ Bureau has been advised that all of the hose other than nylon tubing. (1) Except tion threshold of 350 hours’ time in serv­ hydraulic brake hose manufactured by as provided in paragraph (c), brake hose ice; others felt the period should be 600 the four major hydraulic brake hose installed on a motor vehicle on or after hours. Due to the possible consequences jnakers in the United States conforms to October 1, 1973, must conform to one of of failure of the fittings involved, it has thfr requirements of both standards. In the following specifications: been determined that a 200-hour period °f these facts, the Director has de- (1) Hydraulic brake hose: Society of from the effective date hereof is neces­ ^at, in the interests of safety, Automotive Engineers (SAE) Standard sary in the interest of safety. s 093.45 should require hydraulic brake J1401, January 1967. In consideration of the foregoing, and conf°rm to the requirements of (ii) Air brake hose: SAE Standard pursuant to the authority delegated to ae Standard J1401. He finds that adop- J1402b, June 1971. me by the Administrator (31 FR 13697), more restrictive requirements (iii) Vacuum brake hose: SAE Stand­ § 39.13 of Part 39 of the Federal Avia­ h standard will cause no undue ard J1403, June 1968'. tion Regulations is amended by adding raship on motor vehicle manufac- (2) Except as provided in paragraph the following new airworthiness direc­ urers Chrysler Corp.’s. request is, there- (c) brake hose installed on a motor vehi­ tive: 1Qre, denied. cle before October 1, 1973, must conform B oeing. Applies to all Model 707 airplanes j°^ce °f proposed rule making to either— with 7079—1T6 main deck cargo door latch h t°Se<* .*° reOuire that coiled nylon (i) The applicable specification set support fittings, and manufactured prior ra e tubing must have a straight seg- forth in subdivision (i), (ii), or (iii) of to January 1,1972. h (pigtail) that is at least 6 inches subparagraph (1) of this paragraph; or Compliance required as indicated: (ii) The applicable specification in the To prevent possible rapid airplane depres­ „ eack en(t of the tubing. Two SAE Standard for Automotive Brake surization by detecting ©racks emanating stLTentS questioned this limitation, from the barrel nut hole on the main deck Hoses published in the 1952 edition of cargo door latch support fitting, accomplish S that ample protection against the SAE Handbook. the following;

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4334 RULES AND REGULATIONS

(a) Unless already inspected within the ary 31, 1973, in the description of the (Sec. 307(a) Federal Aviation Act of 1958, last 1,200 hours’ time in service before the Missoula, Mont., transition area 49 U.S.C. 1348; sec. 6 (c), Department of effective date of this AD, or inspected per (§ 71.181), the word “to” in the 17th line Transportation Act, 49 U.S.C. 1655(c)) Boeing Alert Service Bulletin 3124 dated January 29, 1973, inspect per (d) below at should read “of”. Issued in Kansas City, Mo., on January the times specified in (b) or (c), as 23,1973. applicable. [Airspace Docket No. 73-GL-4] J o h n M . C y r o c k i, (b) For those airplanes manufactured prior to December 1, 1967, inspect per (d) within PART 71— DESIGNATION OF FEDERAL Director, Central Region. the next 1,200 hours’ time in service from the AIRWAYS, AREA LOW ROUTES, CON­ In § 71.181 (38 FR 435), the following effective date of this AD. TROLLED AIRSPACE, AND REPORTING transition area is added: (c) For those airplanes manufactured after POINTS A u d u bo n , I o w a December 1, 1967, inspect per (d) within Alteration of Control Zone th e next 1200 hours’ time in service from the The purpose of this amendment to That airspace extending upward from 700 effective date of this AD. Part 71 of the Federal Aviation Regula­ feet above the surface within an 8-m ile radius (d) Inspect in accordance with Boeing of Audubon M unicipal Airport (latitude Alert Service Bulletin 3124 dated January 29, tions is to alter the control zone at Cin­ 41042'30” N., longitude 94°65'00" W.); and 1973, for cracks emanating from the barrel cinnati, Ohio. that airspace extending upward from l,2ob nut hole on each of the eight fittings using A review of the control zone designa­ feet above the surface within 4 y2 miles visual or dye penetrant or eddy current tion at Cincinnati-Lunken Airport indi­ southwest and 9 y2 miles northeast of the m ethods. cates that the northeast extension may Audubon NDB 149° bearing extending from (e) If cracks are found emanating from be shortened and still provide adequate the airport to 18 y2 miles southeast of the the barrel nut hole, replace with a service­ protection for the approach procedures airport. able fitting or a 7075-T73 fitting prior to to the airport. Since this alteration im­ [FR Doc.73-2787 Filed 2-12-73;8:45 am] further flight. However, airplanes with only poses no additional burden on any per­ one of the six center fittings cracked at the [Airspace Docket No. 72-EA-120] barrel nut hole may be continued in service son and is not a safety compromise, at reduced cabin operating pressure of not notice and public procedure hereon are PART 71— DESIGNATION OF FEDERAL m ore th a n 6.0 p.s.i. cabin differential, pro­ unnecessary. AIRWAYS, AREA LOW ROUTES, CON­ vided: all fittings are reinspected at intervals In consideration of the foregoing, Part TROLLED AIRSPACE, AND REPORTING o f 200 hours’ time in service in accordance 71 of the Federal Aviation Regulations is POINTS with (d) above. Also, if cracks are found emanating from the barrel nut holes on amended effective 0901 G.m.t., April 26, Alteration of Transition Area either the most forward or most aft fitting, 1973, as hereinafter set forth: On page 28191 of the F ederal R egister replace prior to further pressurized flight. In § 71.171 (38 FR 351), the following for December 21, 1972, the Federal Avia­ (f) Revisions to this AD concerning other control zone is amended to read: reinspection intervals and terminating ac­ tion Administration published a proposed^ Cin c in n a t i, O h io tion will be forthcoming. rule which would alter the Babylon, N.Y., (g) Aircraft having cracks which require Within a 5-mile radius of Cincinnati Mu- transition area (38 FR 444). rework under this AD may be flown unpres­ nicipal-Lunken Field Airport (latitude 39°- Interested parties were given 30 days surized in accordance with FAR 21.197, to a 06'14" N., longitude 84°25'18" W.) within 2 after publication in which to submit writ­ miles each side of Runway 20L ILS localizer base where rework can be accomplished. ten data or views. No objections to the northeast course, extending from the 5-mile- proposed regulations have been received. This amendment becomes effective radius zone to 6.5 miles northeast of the air­ February 12,1973. port; and within 1.5 miles each side of the In view of the foregoing, the proposed 227° bearing from Lunken RBN,. extending regulations are hereby adopted, effective The manufacturer’s specification and from the 5-mile-radius zone to the RBN. 0901 G.m.t., March 29,1973. procedures identified and described in (Sec. 307(a), Federal Aviation Act of 1958, (Sec. 307(a), Federal Aviation Act of 1958, this directive are incorporated herein 49 U.S.C. 1348; sec. 6 (c), Department of 72 Stat. 749; 49 U.S.C. 1348; sec. 6 (c), of De­ and made a part hereof, pursuant to 5 Transportation Act, 49 U.S.C. 1655(c)) partment of Transportation Act, 49 U.S.C. U.S.C., 552(a) (i). All persons affected by Issued in Des Plaines, 111., cm Janu­ 1 6 5 5 (c )) the directive who have not already re­ ary 23, 1973. Issued in Jamaica, NiY., on January 26, 1973. ceived these documents, may obtain cop­ L y l e K . B r o w n , ies upon request to The Boeing Commer­ Director, Great Lakes Region. R o b er t H . S t a n t o n , cial Airplane Co., Post Office Box 3707, [FR Doc.73-2790, Filed 2-12-73;8:45 am] Acting Director, Eastern Region. Seattle, WA 98124. These documents may 1. Amend § 71.181 of Fart 71 of the also be examined at the FAA Northwest Federal Aviation Regulations so as to Region, Boeing Field International, [Airspace Docket No. 72-CE-23] amend the description of the Babylon, Seattle, Wash. PART 71— DESIGNATION OF FEDERAL N.Y. 700-foot floor transition area by in­ AIRWAYS, AREA LOW ROUTES, CON­ serting after “ (latitude 40°43'45" N., (Secs. 313(a), 601, 603, Federal Aviation Act TROLLED AIRSPACE, AND REPORTING longitude 73°24'45" W.);”, the following: of 1958, 49 U.S.C. 1354(a), 1421, 1423; sec. POINTS W ith in 4.5 m iles northeast and 6.5 miles 6 (c), Department of Transportation Act, 49 Designation of Transition Area southwest of the Republic Airport ILS local­ U.S.C. 1655(c)) izer northwest course, extending from the OM Issued at Seattle, Wash., February 7, On page 22876 of the F ederal R e g ist e r (4 0 °4 6 '3 5 " N ., 7 3 °2 8 '5 9 '' W .) to 11.5 miles dated October 26,1972, the Federal Avia­ northw est o f th e OM ; 1973. C. B. Walk, Jr. tion Administration published a notice of [FR Doc.73-2788, Filed 2- 12- 73; 8:45 am] Director, Northwest Region. proposed rule making which would amend § 71.181 of Part 71 of the Federal [FR Doc.73-2966 Filed 2-12-73;9:22 am] [Airspace Docket No. 72-EA-1211 Aviation Regulations so as to designate a transition area at Audubon, Iowa. PART 71— DESIGNATION OF FEDERAL AIRWAYS, AREA LOW ROUTES, CON^ [Airspace Docket No. 72-RM-32] Interested persons were given 30 days TROLLED AIRSPACE, AND REPORTING PART 71— DESIGNATION OF FEDERAL to submit written comments, suggestions POINTS AIRWAYS, AREA LOW ROUTES, CON­ or objections regarding the proposed Alteration of Transition Area TROLLED AIRSPACE, AND REPORTING amendment. POINTS No objections have been received and On page 28190 of the F ederal R egister Alteration of Control Zone and Transition the proposed amendment is hereby for December 21, 1972, the Federal Avia­ Area tion Administration published a propos adopted without change and is set forth rule which would alter the Doylestown* Correction below. Pa., transition area (38 FR 476). In FR Doc. 73-1768 appearing on page This amendment shall be effective 0901 Interested parties were given 30 2963 in the issue for Wednesday, Janu­ G.m.t., March 29,1973. after publication in which to suonn FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 RULES AND REGULATIONS 4335 written data or views. No objections to radius of the Frankfort Airport (latitude In § 71.181 (38 FR 435), the following the proposed regulations have been re­ 41°29'00" N.; longitude 87°51'00" W .); and transition area is amended to read: w ithin 3 % miles either side of the 261° radial M arquette, M ic h . ceived. from Chicago Heights VORTAC extending In view of the foregoing, the proposed from the 5% -mile radius to 8 % miles east of That airspace extending upward from 700 regulations are hereby adopted, effective the airport, excluding that portion that over- feet above the surface within a 7-mile radius 0901 G.m.t., March 29,1973. lies the Chicago, 111., transition area. of Marquette County Airport (latitude 46°- 32'03" N., longitude 87°33'35” W .); within (Sec. 307(a), Federal Aviation Act Of 1958, [FR Doc.73-2791 Filed 2-12-73;8 :45 am ] 4% miles north and 9 % miles south of the 72 Stat. 749; 49 U.S.C. 1348; sec. 6 (c ), D e­ Marquette ILS localizer, west course extend­ partment of Transportation Act, 49 U.S.C. [Airspace Docket No. 72—SW -76] ing from the 7-mile radius to 16 miles west; 1655(c)) within 4% miles north and 4% miles south PART 71— DESIGNATION OF FEDERAL of the Marquette ILS localizer east course Issued in Jamaica, N.Y., on January AIRWAYS, AREA LOW ROUTES, CON­ extending from the 7-mile radius to 16% 26,1973. TROLLED AIRSPACE, AND REPORTING miles east; within an 8-mile radius of K. I. R obert H. S ta n to n , POINTS Sawyer AFB (latitude 46°21'15'' N., longitude Acting Director, Eastern Region. 87°23'40" W .); within 2 miles each side of Alteration of Transition Area; Correction the K. I. Sawyer AFB ILS localizer course ex­ 1. Amend § 71.181 of Part 71 of the On January 16, 1973, FR Doc. 73-855 tending from the 8 -mile radius area to 12 Federal Aviation Regulations so as to miles south of the LOM; within 2 miles each delete the description of the Doylestown, was published in the F ederal R egister side of the K. I. Sawyer AFB TACAN 183° Pa. 700-foot floor transition area and (38 FR 1581). This document altered radial, extending from the 8-mile radius area insert the following in lieu thereof: the Little Rock, Ark., 700-foot transition to 12 miles south of the TACAN; and within area. 2 miles east and 5 miles west of the K. I. That airspace extending upward from 700 A review of the document revealed that Sawyer AFB TACAN 015° radial, extending ieet above the surface within a 7-m ile radius a portion of the description of the tran­ from the 8-mile radius area to 12 miles north oi the center (40°20'20" N., 75°07'20" W.) of the TACAN; and that airspace extending of Doylestown Airport, Doylestown, Pa.; sition area was incorrect. Action is taken upward from 1,200 feet above the surface within 8 miles northwest and 4.5 miles south­ herein to effect a correction. within a 40-mile radius of K. I. Sawyer AFB, east of the 224° bearing and the 044° bearing As this correction is editorial in nature excluding the portion which overlies the Es- from the Doylestown, Pa. RBN (40°19'59" N., and imposes nc> additional burden on canaba, Mich., transition area. 75°07'21" W .) ,• extending from 5.5 m iles any person or persons, notice and public [FR Doc.73-2792 Filed 2-12-73;8:45 am] southwest of the RBN to 11.5 miles northeast procedures are not considered necessary. of the RBN; within 8 miles northwest and In view of the foregoing, FR Doc. 73- 4.5 miles southeast of the Solberg, N.J. [Docket No. 11941; Arndt. 93-26] VORTAC 229° radial, extending from 7.5 miles 855 (38 FR 1581) is amended by deleting southwest of the VORTAC to 24.5 miles from the fifth line of the description “ 23 PART 93— SPECIAL AIR TRAFFIC RULES southwest of the VORTAC, excluding the NM” and substituting “23-mile” therefor. AND AIRPORT TRAFFIC PATTERNS portions which coincide with the North The effective date of the original docu­ Philadelphia, Pa., Pittstown, N.J. and Read- ment (0901 G.m/fc., March 29, 1973) may Special Air Traffic Rule; Addison Airport ington, N.J. transition areas. be retained. Traffic Area, Texas [PR Doc.73-2789 Filed 2-12-73; 8 :45 am ] (Sec 307(a), Federal Aviation Act of 1958, The purpose of this amendment of 49 U.S.C. 1348; sec. 6 (c), Department of Part 93 of the Federal Aviation Regula­ Transportation Act, 49 U.S.C. 1655(c)) tions is to establish special air traffic [Airspace Docket Docket No. 72-G L-61] Issued in Fort Worth, Tex., on Febru­ rules and airport traffic patterns for the PART 71— DESIGNATION OF FEDERAL ary 5,1973. Airpark-Dallas Airport, Hebron, Tex. AIRWAYS, AREA LOW ROUTES, CON­ H e n r y L. N e w m a n , These amendments are based on a TROLLED AIRSPACE, AND REPORTING Director, Southwest Region. notice of proposed rule making (Notice POINTS 72-14) issued on May 22, 1972, and pub­ [FR Doc.73-2793 Filed 2-12-73;8:45 am] Designation of Transition Area lished in the F ederal R eg ister on May 26, 1972 (37 FR 10673). Interested persons On pages 24767 and 24768 of the F ed­ [Airspace Docket No. 72-GL-62] have been afforded an opportunity to eral Register dated November 21, 1972, PART 71— DESIGNATION OF FEDERAL participate in the making of these the Federal Aviation Administration amendments, and due consideration has published a notice of proposed rule mak­ AIRWAYS, AREA LOW ROUTES, CON­ TROLLED AIRSPACE, AND REPORTING been given to all relevant matter pre­ ing which would amend § 71.181 of Part sented. 71 of the Federal Aviation Regulations so POINTS as to designate a transition area at Alteration of Transition Area Four public comments were received Frankfort, 111. in response to the notice from aviation On page 24768 of the F ederal R egister Interested persons were given 30 days user groups and associations. Two com­ to submit written comments, suggestions dated November 21, 1972, the Federal ments concurred in the proposal and two Aviation Administration published a no­ °r objections regarding the proposed objected. amendment. tice of proposed rule making which would The two objections made by Airpark amend §71.181 of the Federal Aviation No objections have been received and users were directed at proposed § 93.143. regulations so as to alter the transition This section would require each person ‘he proposed amendment is hereby area at Marquette, Mich. adopted without change and is set forth operating an aircraft to or from the Air­ Interested persons were given 30 days park-Dallas Airport to establish and to submit written comments, suggestions maintain two-way radio communica­ This amendment shall be effective 0901 or objections regarding the proposed tions with Addison Tower. Those oppos­ «•m.t., March 29, 1973. amendment. ing stated that this proposed section No objections have been received and iqeCn a07(a) ’ Federal Aviation Act, of 1958,- should allow pilots who do not have U.S.C. 1348; sec. 6 (c), Department of the proposed amendment is hereby radio-equipped aircraft to satisfy the transportation Act, 49 U.S.C 1655(c) ) adopted without change and is set forth communications requirement by calling below. the Addison Tower by phone before take­ 83 1978*in DCS Plaines’ I11-’ on January This amendment shall be effective 0901 off. The FAA believes that § 93.1 (b) pro­ G.m.t., March 29,1973. vides the Addison Tower with sufficient L y l e K . B r o w n , Director, Great Lakes Region. (Sec. 307(a), Federal Aviation Act of 1958, authority to allow the operation of air­ 49 U.S.C. 1348; 6 (c), Department of Trans­ craft without a radio. Accordingly, this tra« *38 FR 435) , the following portation Act, 49 U.S.C. 1655(c)) provision need not be repeated in § 93.143. transition area is added: Issued in Des Plaines, 111., on January In order to accurately reflect the in­ F rankfort, III. 23,1973. tent of the Notice, proposed § 93.145 is fe6^ « l ^ irspace extending upward from 700 L y l e K . B r o w n , revised to require arriving aircraft to en­ et above the surface within a 5% -m ile Director, Great Lakes Region. ter the traffic pattern “at or below 508

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4336 RULES AND REGULATIONS feet AGL” instead of “at 500 feet AGL,” Subpart L— Addison (Texas) Airport Traffic Airport shall enter the traffic pattern as stated in the Notice. Area east’ of the airport at or below 500 feet In consideration of the foregoing and § 93.141 Applicability. AGL and execute a left traffic pattern for for reasons stated in Notice No. 72-14, a landing to the south or a right traffic Part 93 of the Federal Aviation Regula­ This subpart prescribes special air pattern for a landing to the north. « tions is amended, effective March 15, traffic, rules and communication require­ (b) Departing. Each person piloting an| ments for persons operating aircraft to 1973, by adding a new Subpart L to read aircraft departing from Airpark-Dallas' or from the" Airpark-Dallas Airport. Airport shall leave the traffic pattern to! as follows: § 93.143 Communications. the east. Subpart L— Addison (Texas) Airport Traffic Area While within the Addison Airport traf­ (Secs. 3 0 7 (a ), 313(a) .^Federal Aviation Act of Sec. - fic area, each person operating an air­ 1958, 49 U.S.C. 1348(a), 1354(a); sec. 6(c), 93.141 Applicability. Department of Transportation Act, 49 U.S.C. 93.143 Communications. craft to or from the Airpark-Dallas Air­ 16 5 5 (c)) 93.145 Airpark-Dallas Airport Traffic. port shall establish and maintain two- way radio communications with Addison Issued in Washington, D.C., on Feb- A u t h o r it y : Secs. 307(a) and 313(a) of the Airport Traffic Control Tower. uary 5, 1973. Federal Aviation Act of 1958, 49 U.S.C. 1348 § 93.145 Airpark-Dallas Airport traffic. J. H. S haffer, (a) and 1354(a); and sec. 6 (c) of the De­ Administrator. partment of Transportation Act, 49 U.S.C. (a) Arriving. Each person piloting an 1 6 5 5 (c ). aircraft landing at the Airpark-Dallas [FR Doc.73-2794 Filed 2-12-73;8:45 am]

FEDERAL REGISTER, VOL 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4337 Proposed Rule Making

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

d e p a r t m e n t o f t h e t r e a s u r y propriéty of various methods of inven­ method must be reallocated to ending tory costing for tax purposes. The In­ inventory if the adjustment or variance Internal Revenue Service come Tax Regulations now being pro­ is significant or if the taxpayer allocates [2 6 CFR Part 1 ] posed provide explicit, certain, and com­ such adjustments or variances in his plete rules governing the costing of in­ financial statements. The previously pro­ INCOME TAX ventories. Such yules should simplify the posed regulations did not specifically per­ Use of the Full Absorption Method of tax reporting for many businesses and mit the use of the standard cost method. Inventory Valuation eliminate the uncertainty and contro­ These proposed regulations also permit On December 15, 1971, notice of pro­ versy of past practices. The proposed the use of the practical capacity concept. posed rule making with respect to amendments withdraw those proposed The previously proposed regulations amendment of the Income Tax Regula­ amendments with respect to inventory treated the practical capacity concept tions (26 CFR Part 1) under sections 61, costing which the Service published on as a method of apportioning fixed indi­ 446, and 471, of the Internal Revenue December 15, 1971. rect production costs to the goods in Code of 1954, as amended, as they relate The regulations require the use of a ending inventory. The new regulations to inventory costing, was published in “full absorption” method of inventory reflect the fact that the practical capa­ costing for all taxpayers engaged in the F ederal R e g is t e r (36 FR 23809). city method is not an allocation method, After consideration of all such relevant manufacturing or production operations. but is a method which determines the matter as has been presented by inter­ The required use of the “full absorption” total amount of fixed indirect production ested persons regarding the rules pro­ method for all taxpayers is a change costs which must be included among posed, the notice of proposed rule making from the prior notice which provided that inventoriable costs. of December 15, 1971, is hereby with­ in certain cases a modified full absorp­ To encourage taxpayers to adopt the drawn and notice is hereby given that the tion method could be used. The modi­ full absorption method, the proposed regulations set forth in tentative form in fied full absorption method allowed cer­ regulations provide liberal transition the attached appendix are proposed to be tain costs to be excluded from inventory rules for all taxpayers. The transition prescribed by the Commissioner of In­ costing by the taxpayer if the method of rules are available to all taxpayers not ternal Revenue, with approval of the inventory valuation included at least 35 previously using the full absorption Secretary of the Treasury or his delegate. percent of all fixed indirect production method of inventory costing as defined in Prior to the final adoption of such regu­ costs and the taxpayer excluded such this document. The transition rules pro­ lations, consideration will be given to any costs in its financial reports. Those ex­ vide that a change to the full absorption comments or suggestions pertaining cludable costs under the modified full method from a method of costing less thereto which are submitted in writing, absorption method may still be exclud­ inclusive of production costs will be con­ preferably in quintuplicate, to the Com­ able 'Tinder the “full absorption” method. sidered a change initiated by the Com­ missioner of Internal Revenue, Atten­ The costs are excludable if the taxpayer missioner and will permit the taxpayer tion: CC:LR:T, Washington, D.C. 20224, excludes such costs in his financial state­ to make any adjustment with respect by April 16, 1973. Any written comments ments and such exclusion is in conform­ to such change over a 10-year period. or suggestions not specifically designated ity with generally accepted accounting The prior notice only allowed the transi­ as confidential in accordance with 26 principles. These regulations thus elim­ tion rules for taxpayers who adopted the CFR 601.601(b) may be inspected by any inate the arbitrary aspects of the per­ full absorption method and were not person upon written request. Any person centage test in determining the exclusion available to those who chose the modi­ submitting written comments or sugges­ of those costs. fied full absorption method. In addition, tions who desires an opportunity to com­ To provide guidance .to taxpayers as to the complicated suspense account transi­ ment orally at a public hearing on these which costs are includable or excludable tion rules of the prior notice are not in­ proposed regulations should submit his in the computation of inventoriable costs cluded in the new proposals. request, in writing, to the Commissioner the new proposed regulations establish The new regulations also attempt to by April 12, 1973. In such case, a public three cost categories. Under this ap­ simplify the transition rules for UFO hearing will be held, and notice of the proach certain costs are always required taxpayers and to provide consistency be­ time, place, and date will be published to be included in the computation of in­ tween dollar value LIFO and ordinary in a subsequent issue of the F ederal R eg­ ventoriable costs and certain other costs UFO taxpayers. Thus, a liberal cutoff ister, unless the person or persons who are not required to be included in the method is now available during the have requested a hearing withdraw their computation of inventoriable costs. A transition period. requests for a hearing before notice of third category of costs are includable or Comparable transition rules have also the hearing has been filed with the Office excludable from the computation of in­ been provided for taxpayers changing to of the Federal Register. The proposed ventoriable costs in accordance with the the full, absorption method during the regulations are to be issued under the taxpayer’s financial accounting treat­ transition period from a method of cost­ authority contained in section 7805 of ment for such costs and generally ac­ ing more inclusive of production costs. the Internal Revenue Code of 1954 (68A cepted accounting principles. Adoption of amendments to the regula­ Stat. 917; 26 U.S.C. 7805). If a taxpayer’s financial accounting tions. In order to provide rules for the method is not comparable to his tax ac­ use of the full absorption method of in­ [seal] ^ J o h n n i e M . W a l t e r s , counting method, the proposed regula­ ventory costing, the Income Tax Regula­ Commissioner of Internal Revenue. tions provide only two categories of costs, tions (26 CFR Part 1) under sections 61, document contains proposed costs which must be included and costs 446, and 471 of the Internal Revenue ,;niend?lents to the Income Tax Regula- which may be excluded. Code of 1954, relating to gross income, &LR5 (25 CFR Part 1) under sections 61, The proposed regulations permit the methods of accounting and inventory aiJd 4,71 the Internal Revenue use of the manufacturing burden rate Valuation are amended as. follows: tho 6 °t.1954 order to provide rules for method and the standard cost method of P arag raph 1. Paragraph (a) of § 1.61-3 thecostmgof inventories. allocating inventoriable costs to a tax­ is revised to read as follows: n w 6 of these proposed amend- payer’s goods in ending inventory. If the § 1.61—3 Cross income derived from ¿ 2 2 ? is t° Provide explicit rules for the manufacturing burden rate method or business. of, inventories. For many years, standard cost method is used, adjust­ (a) In general. In a manufacturing, Phtes have existed concerning the ments or variances resulting from such merchandising, or mining business,

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4338 PROPOSED RULE MAKING

"gross income” means the total sales, less of inventorying or basis of valuation so (b) Production costs—(1) In General. the cost of goods sold, plus any income long as the method or basis used is in Costs are considered to be production from investments and from incidental or accord with §§ 1.471-1 through 1.471-11. costs to the extent that they are asso­ outside operations or sources. Gross in­ ***** ciated with production or manufacturing come is determined without subtraction (f) * * * operations or processes. Production costs of depletion allowances based on a per­ (6) Segregating indirect production include direct production costs and fixed centage of income to the extent that it costs into fixed and variable production and variable indirect production costs. exceeds cost depletion which may be re­ cost classifications (as defined in § 1.471- (2) Direct Production Costs, (i) Costs quired to be included in the amount d 11(b)(3)(ii)) and allocating only the classified as “ direct production costs” are inventoriable costs as provided in § 1.471- variable costs to the cost of goods pro­ generally those costs which are associated 11 and without subtraction of selling ex­ duced while treating fixed costs as period with production or manufacturing opera­ penses, losses or other items not ordinar­ costs which are currently deductible. tions or processes and are components of ily used in computing costs of goods sold This method is commonly referred to as the cost of either direct material or direct labor. Direct material costs include the or amounts which are of a type for which the “-direct cost” method. a deduction would be disallowed under (7) Treating all or substantially all in­ cost of those materials which become an section 162 (c), (f), or (g) in the case of direct production costs (whether classi­ integral part of the specific product and a business expense. The cost of goods those materials which are consumed in fied as fixed or variable) as period costs the ordinary course of manufacturing sold should be determined in accordance which are currently deductible. This with the method of accounting consist­ and can be identified or associated with method is generally referred to as the particular units or groups of units of ently used by the taxpayer. “prime cost” method. ***** that product. See § 1.471-3 for the ele­ Par. 4. Paragraph (c) of § 1.471-3 is ments of direct material costs. Direct Par. 2. Section 1.446-l(c) (1) (ii) is amended by adding a cross reference at labor costs include the cost of labor amended to read as follows: the end to read as follows: which can be identified or associated with § 1.446—1 General rule for methods o f § 1.471—3 Inventories at cost. particular units or groups of units of a accounting. ***.«* specific product. The elements of direct ***** labor costs include such items as basic (c) In the case of merchandise pro­compensation, overtime pay, vacation (c) Permissible methods. * * * duced by the taxpayer since the begin­ (1) In general. * * * and holiday pay, sick leave pay (other ning of the taxable year (1) the cost of than payments pursuant to a wage con­ (ii) Accrual method. Generally, under raw materials and supplies entering into tinuation plan under section 105(d)), an accrual method, income is to be in­ or consumed in connection with the shift differential, payroll taxes and pay­ cluded for the taxable year when all the product, (2) expenditures for direct ments to a supplemental unemployment events have occurred which fix the right labor, and (3) indirect production costs benefit plan paid or incurred on behalf to receive such income and the amount associated with the production of the of employees engaged in direct labor. For thereof can be determined with reason­ particular article, including in such in­ the treatment of rework labor, scrap, able accuracy. Under such a method, de­ direct production costs an appropriate spoilage costs, and any other costs not ductions are allowable for the taxable portion of management expenses, but not specifically described as direct produc­ year in which all the events have oc­ including any cost of selling or return tion costs see § 1.471-ll(c) (2) (iii). curred which establish the fact of the on capital, whether by way of interest or (ii) Under the full absorption method, liability giving rise to such deduction and profit. See § 1.471-11 for more specific a taxpayer must take into account all the amount thereof can be determined rules regarding the treatment of indirect items of direct production cost in his in­ with reasonable accuracy. The method production costs. ventoriable costs. Nevertheless, a tax­ used by the taxpayer in determining Par. 5. Section 1.471-11 is added im­ payer will not be treated as using an in­ when income is to be accounted for will mediately following § 1.471-10 to read as correct method-of inventory costing if be acceptable if it accords with generally follows: he treats any direct production costs as accepted accounting principles, is con­ indirect production costs, provided such sistently used by the taxpayer from year § 1.471—11 Inventories o f Manufactur­ posts are allocated to the taxpayer’s end­ to year, and is consistent with the In­ ers. ing inventory to the extent provided by come Tax Regulations. For example, a (a) Use of full absorption method ofparagraph (d) of this section. Thus, for taxpayer engaged in a manufacturing inventory costing. In order to conform as example, a taxpayer may treat direct business may account for sales of his nearly as may be possible to the best labor costs as part of indirect produc­ product when the goods are shipped, accounting practices and to clearly re­ tion costs (for example, by use of the when the product is delivered or ac­ flect income (as required by section 471 conversion cost method), provided all cepted, or when title to the goods passes of the Code), both direct and indirect such costs are allocated to ending inven­ to the customer, whether or not billed, production costs must be taken into ac­ tory to the extent provided by paragraph depending upon the method regularly count in the computation of inventori­ (d) of this section. employed in keeping his books. able costs in accordance with the “full (3) Indirect production costs— Par. 3. Section 1.471-2 is amended, by absorption” method of inventory costing. general. The term “indirect production revising the cross references in para­ Under the full absorption method of In­ costs” includes all costs which are asso­ graph (b ), deleting the last sentence in ventory costing production costs must be ciated with production or manufacturing paragraph (b ), and by adding subpara­ allocated to goods produced during the operations or processes other than direct graphs (6) and (7) to paragraph (f), to taxable year, whether sold during the production costs (as defined in subpara­ read as follows: taxable year or in inventory at the close graph (2) of this paragraph). Indirect of the taxable year determined in ac­ production costs may be classified as to § 1.471—2 Valuation o f inventories. cordance with the taxpayer’s method of kind or type in accordance with accejjT ***** identifying goods in inventory. Thus, the able accounting principles so as to enao (b) It follows, therefore, that inven­taxpayer must include as inventoriable convenient identification with vario tory rules cannot be uniform but must costs all direct production costs and, to production or manufacturing activiti give effect to trade customs which come the extent provided by paragraphs (c) or functions and to facilitate reasonao within the scope of the best accounting and (d) of this section, all indirect pro­ groupings of such costs for purposes practice in the particular trade or busi­ duction costs. For purposes of this sec­ determining unit product costs. ness. In order to clearly reflect income, tion, the term “financial reports” means (ii) Fixed and variable classification the inventory practice of a taxpayer financial reports (including consolidated For purposes of this section, fixeam- should be consistent from year to year, financial statements) to shareholders, direct production costs are gen®™-“' and greater weight is to be given to con­ partners, beneficiaries or other proprie­ those costs which do not vary sign“ sistency than to any particular method tors, and for credit purposes. cantly with changes in the amount

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4339

goods produced at any given level of (e) Indirect labor and production su­treatment is not inconsistent with gen­ production capacity. These fixed costs pervisory wages, including basic compen­ erally accepted accounting principles. may include, among other costs, rent and sation, overtime pay, vacation and holi­ For example, items which may be in­ property taxes on buildings and ma­ day pay, sick leave pay (other than pay­ cluded in or excluded from the compu­ chinery associated with manufacturing ments pursuant to a wage continuation tation of the amount of inventoriable operations or processes. On the other plan under section 105(d)), shift dif­ costs depending upon their treatment hand, variable indirect production costs ferential, payroll taxes and contributions in a taxpayer’s financial reports include, are generally those costs which do vary to a supplemental unemployment bene­ but are not limited to: significantly with changes in the amount fit plan, (a) Taxes. Taxes otherwise allowable of goods produced at any given level of (/) Indirect materials and supplies, as a deduction under section 164 (other production capacity. These variable costs (g) Tools and equipment not capital­ than State and local and foreign income may include, among other costs, indirect ized, taxes) attributable to assets associated materials, factory janitorial supplies, and (h) Engineering and product develop­ with production or manufacturing op­ utilities. Where a particular cost con­ ment expenses (other than research and erations or processes. Thus, for example, tains both fixed and variable elements, experimental expenses described in sec­ the cost of State and local property these elements should be segregated into tion 174 and the regulations thereunder), taxes imposed on a factory or other pro­ fixed and variable classifications to the and duction facility and any State and local extent necessary under the taxpayer’s - (i) Costs of quality control and in­ taxes imposed on inventory must be in­ method of allocation, such as for the ap­ spection, cluded in or excluded from the compu­ plication of the practical capacity con­ to the extent, and only to the extent, tation of th e. amount of inventoriable cept (as described in paragraph (d) (4) such costs are associated with production costs for tax purposes depending upon of this section). or manufacturing operations or proc­ their treatment by a taxpayer in his (c) Certain indirect production costs— esses. financial reports. (1) General rule. Except as provided in (ii) Indirect production costs not in­ (b) Depreciation and depletion. De­ subparagraph (3) of this paragraph, in cluded in inventoriable costs. Expenses preciation reported in financial reports order to determine whether indirect pro­ which are not required to be included for and cost depletion on assets associated duction costs referred to in paragraph tax purposes in the computation of the with production or manufacturing op­ (b) of this section must be included in amount of inventoriable costs (regard­ erations or processes. In computing cost a taxpayer’s computation of the amount less of their treatment by a taxpayer in depletion under this section, the ad­ of inventoriable costs, three categories of his financial reports) include: justed basis of such assets shall be re­ costs have been provided in subpara­ (a) Marketing expenses, duced by cost depletion and not by per­ graph (2) of this paragraph. Costs de­ (b) Advertising expenses, centage depletion taken thereon. scribed in subparagraph (2) (i) of this » (c) Selling expenses, (c) Employee benefits. Pension and paragraph must be included in the tax­ (d) Other distribution expenses, profit-sharing contributions represent­ payer’s computation of the amount of (e) Interest, ing current service costs otherwise al­ inventoriable costs, regardless of their (/) Research and experimental ex­ lowable as a deduction under section treatment by the taxpayer in his finan­ penses described in section 174 and the 404, and other employee benefits in­ cial reports. Costs described in subpara­ regulations thereunder, curred on behalf of labor associated with graph (2) (ii) of this paragraph need not (g) Losses under section 165 and the production or manufacturing operations enter into the taxpayer’s computation of regulations thereunder, or processes. These other benefits in­ the amount of inventoriable costs, re­ (h) Percentage-depletion in excess of clude workmen’s compensation expenses, gardless of their treatment by the tax­ cost depletion, payments under a wage continuation payer in his financial reports. Costs de­ (z) Depreciation reported for Federal plan described in section 105(d), scribed in subparagraph (2) (iii) of this income tax purposes in excess of depreci­ amounts includible in the gross income paragraph must be included in or ex­ ation reported by the taxpayer in his fi­ of employees under nonqualified pension, cluded from the taxpayer’s computation nancial reports, profit-sharing and stock bonus plans, of the amount of inventoriable costs in (?) Income taxes attributable to in­ premiums on life and health insurance accordance with the treatment of such come received on the sale of inventory, costs by the taxpayer in his financial and miscellaneous benefits provided for and employees such as safety, medical treat­ reports and generally accepted account­ (k) Pension and profit-sharing con­ ' s principles. For the treatment of in­ ment, cafeteria, recreational facilities, tributions to the extent that they repre­ membership dues, etc., which are other­ direct production costs described in sub- sent past services cost. paragraph (2) of this paragraph in the wise, allowable as deductions under case of a taxpayer who is not using com­ Notwithstanding the preceding sentence, chapter 1 of the Code. parable methods of accounting for such if a taxpayer consistently includes in his (d) Costs attributable to strikes, re­ costs for tax and financial reporting, see computation of the amount of inventori­ work labor, scrap, and spoilage. Costs subparagraph (3) of this paragraph. able costs any of the costs described attributable to strikes, rework labor, Alter a taxpayer has determined which in the preceding sentence, a change in scrap and spoilage which are associated costs must be treated as indirect pro­ such method of inclusion shall be con­ with production or manufacturing op­ duction costs includible in the computa­ sidered a change in method of account­ erations or processes. tion of the amount of inventoriable costs, ing within the meaning of sections 446 (e) General and administrative ex­ such costs must be allocated to a tax­ and 481. See paragraph (e) (4) of this penses. General and administrative ex­ payer’s ending inventory in a manner section. penses (but not including any cost of Prescribed by paragraph .(d) of this . (iii) Indirect production costs includ­ selling or any return on capital) directly section. ible in inventoriable costs depending related to production or manufacturing ^ Inaudibility of certain indirect upon treatment in taxpayer's financial operations or processes. Production costs— (i) Indirect produc- reports. Except as provided in subdivi­ (/) Officer’s salaries. Salaries paid to officers attributable to services performed t™? cos/ s included in inventoriable costs. sions (i) and (ii) of this subparagraph, direct production costs which must where a particular cost is not clearly as­ relating to production or manufacturing operations or processes. .f r f m”° the computation of the amount sociated with production or manufactur­ inventoriable costs (regardless of their ing operations or processes, a taxpayer’s (g) Insurance costs. Insurance costs attributable to production or manufac­ by a taxpayer in his financial inclusion or exclusion of such cost in the reports) include: computation of the amount of inventori­ turing operations or processes such as (a) Repair expenses, able costs in his financial reports shall insurance on production machinery and equipment. Maintenance, determine whether such cost must be (c) Utilities, included in or excluded from the compu­ A change in the taxpayer’s treatment in tation of the amount of inventoriable (d) R ent, his financial reports of costs described in costs for tax purposes, but only if such this subdivision which results in a change

No. 29-----5 FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4340 PROPOSED RULE MAKING

in treatment of such costs for tax pur­ (h) Percentage depletion in excess of ever, a change in the concept upon which poses shall constitute a change in method cost depletion, such rates are developed does constitute of accounting within the meaning of (i) Depreciation reported for Federal a change in method of accounting re­ sections 446 and 481. income tax purposes in excess of depre­ quiring the consent of the Commissioner. (3) Exception. In the case of a tax­ciation reported by the taxpayer in his The taxpayer shall maintain adequate payer whose method of accounting for financial reports, records and working papers to support production costs in his financial reports (?) Income taxes attributable to in­ all manufacturing burden rate calcula­ is not comparable to his method of ac­ come recived on the sale of inventory, tions. counting for such costs for tax purposes, (fc) Pension and profit-sharing con­ (ii) Development of manufacturing such as a taxpayer using the percentage tributions representing either past serv­ burden rate. The following factors, of completion method of accounting for ice costs or representing current service among others, may be taken into account long-term contracts in financial reports costs otherwise allowable as a deduction in developing manufacturing burden and the completed-contract method of under section 404, and other employee rates: accounting for such contracts for tax benefits incurred on behalf of labor. (a) The selection of an appropriate purposes, the following rules apply: These other benefits include workmen’s level of activity and period of time upon (i) Indirect production costs includedcompensation expenses, payments under which to base the calculation of rates in inventoriable costs. Indirect produc­ a wage continuation plan described in which will reflect operating conditions tion costs which must enter into the com­ section 105(d), amounts includible in the for purposes of the unit costs being putation of the amount of inventoriable gross income of employees under non­ determined; costs (to the extent, and only to the ex­ qualified pension, profit-sharing and (b) The selection of an appropriate tent; such costs are associated with pro­ stock bonus plans, premiums on life and statistical base such as ^direct labor duction or manufacturing operations or health insurance and miscellaneous ben­ hours, or machine hours, or a combina­ processes) include: efits provided for employees such as tion thereof, upon which to apply the (a) Repair expenses, safety, medical treatment, cafeteria, rec­ overhead rate to determine production (b) Maintenance, reational facilities, membership dues, costs; and (c) Utilities, etc., which are otherwise allowable as de­ (c) The appropriate budgeting, clas­ (d) Rent. ductions under chapter I of the Code, sification and analysis of expenses (for (e) Indirect labor and production su­ and example, the analysis of fixed and vari­ pervisory wages, including basic compen­ (Z) Costs attributable to strikes, re­ able costs). work labor, scrap and spoilage. sation, overtime pay, vacation and holi­ (iii) Operation of the manufacturing day pay, sick leave pay (other than (d) Allocation methods— (1) In gen­burden rate method, (a) The purpose of payments pursuant to a wage continua­ eral. Indirect production costs required the manufacturing burden rate method tion plan under section 105(d)), shift to be included in the computation of thé used in conjunction with the full absorp­ differential, payroll taxes and contribu­ amount of inventoriable costs pursuant tion method of inventory costing is to tions to a supplemental unemployment to paragraphs (b) and (c) of this para­ allocate an appropriate. amount of in­ benefit plan, graph must be allocated to goods in a direct production costs to a taxpayer’s (/) Indirect materials and supplies, taxpayer’s ending inventory (determined goods in ending inventory by the use (g) Tools and equipment not capital­ in. accordance with the taxpayer’s of predetermined rates intended to ap­ ized, method of identification) by the use of proximate the actual amount of indirect (h) Enginering and product develop­ a method of allocation which fairly ap­ production costs incurred. Accordingly, ment expenses (other than research and portions such costs among the various the proper use of the manufacturing experimental expenses described in sec­ items produced. Acceptable methods for burden rate method under this section tion 174 and the regulations thereunder), allocating indirect production costs to requires that any difference between the (i) Costs of quality control and in­ the cost of goods in the ending inventory total predetermined amount of indirect spection, include the manufacturing burden rate production costs allocated to the goods O') Taxes otherwise allowable as a method and the standard cost method. in ending inventory and the total amount deduction under section 164 (other than In addition, the practical capacity con­ of indirect production costs actually in­ State and local and foreign income cept can be used in conjunction with curred and required to be allocated to taxes), either the manufacturing burden rate or such goods (i.e., the underapplied or (fc) Depreciation reported for financial standard cost method. overapplied burden) must be treated as purposes and cost depletion, (2) Manufacturing burden ratean adjustment to the taxpayer’s ending (l) General and administrative ex­ method— (i) In general. Manufacturing inventory in the taxable year in which penses (but not including any cost of sell­ burden rates may be developed in accord-- such difference arises. However, if such ing or any return on capital) directly re­ ance with acceptable accounting princi­ adjustment is not significant in amount lated to production or manufacturing ples and applied in a reasonable manner. in relation to the taxpayer’s total actual operations or processes, In developing a manufacturing burden indirect production costs for the year (m) Salaries paid to officers attribu­ rate, the factors described in subdivision then such adjustment need not be al­ table to services performed directly re­ (ii) of this subparagraph may be taken located to the taxpayer’s goods in ending lated to production or manufacturing into account. Furthermore, if the tax­ inventory unless such allocation is made operations or processes, and payer chooses, he may allocate different in the taxpayer’s financial reports, in (n) A n y cost of insurance, such as in­ indirect production costs on the basis of addition, the taxpayer must treat botn surance on production machinery and different manufacturing burden rates. positive and negative adjustments equipment. Thus, for example, the taxpayer may use consistently. (ii) indirect production costs not re­ one burden rate for allocating rent and (b) Notwithstanding (a) of this sub­ quired to be included in inventoriable another burden rate for allocating utili­ division, the practical capacity concept costs. Expenses which are not required ties. The method used by the taxpayer in may be used to determine the totw to be included in the computation of the allocating such costs in his financial re­ may be used to determine the tow amount of inventoriable costs include: ports shall be given great weight in de­ amount of fixed indirect producuo (a) Marketing expenses, termining whether the taxpayer’s costs which must be allocated to good (b) Advertising expenses, method employed for tax purposes fairly in ending inventory. See subparagrap allocates indirect production costs to the (c) Selling expenses, (4) of this paragraph. (d) Other distribution expenses, ending inventory. Any change in a man­ ufacturing burden date which is merely (3) Standard cost method—(X) (e) Interest, general. A taxpayer may use the s (/) Research and experimental ex­ a periodic adjustment to reflect current called “standard cost” method of alio operating conditions, such as increases penses described in section 174 and the eating inventoriable costs to the go regulations thereunder, in automation or changes in operation, does not constitute a change in method in ending inventory, provided he t* (g) Losses undèr section 165 and the variances in accordance with the pro regulations thereunder, of accounting under section 446. How­

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4341 dures prescribed in subdivision (ii) of machine hours, or any other unit of pro­ inventoriable costs during the year. The por­ this subparagraph. The method used by duction appropriate to the cost account­ tion of the fixed indirect production costs the taxpayer in allocating such costs ing system used by a particular tax­ not so included in the computation of the in his financial reports shall be given payer. The determination of practical amount of inventoriable costs would be de­ ductible in the year in which paid or incur­ great weight in determining whether the capacity and theoretical capacity should red. Assume further that 7,600 units were on taxpayer’s method employed for tax be modified from time to time to reflect hand at the end of the taxable year and the purposes fairly allocates indirect pro­ a change in underlying facts and condi­ 7,600 units were in the same proportion to duction costs to the ending inventory. tions such as increased output due to the total units produced. Thus, 10 percent For purposes of this subparagraph, a automation or other changes in plant (7,600 units in inventory at the end pf the “net positive overhead variance” shall operation. Such a change does not con­ taxable year, divided by 76,000, the actual mean the excess of total standard (or stitute a change in method of accounting number of units produced) of the fixed in­ estimated) indirect production costs under section 446. direct production costs included in the com­ putation of the amount of inventoriable over total actual indirect production (b) Based upon taxpayer’s experience. costs (the above-mentioned 81.6 percent) costs and a “net negative overhead In selecting an appropriate level of pro­ and 10 percent of the variable indirect pro­ variance” shall mean the excess of total duction activity upon which to base the duction costs would be included in the cost actual indirect production costs over calculation of practical capacity, the of the goods in the ending inventory, in ac­ total standard (or estimated) indirect taxpayer shall establish the production cordance with a, method aof allocation pro­ production costs. operating conditions expected during the vided by this paragraph. (ii) Treatment of variances. (a) The period for which the costs are being de­ (e) Transition to full absorption meth­ proper use of the standard cost method termined, assuming that the utilization od of inventory costing— (. 1) in general— pursuant to this subparagraph requires of production facilities during operations (i) Mandatory requirement. A taxpayer that a taxpayer must reallocate to the will be approximately at capacity. This not using the full absorption method of goods in ending inventory a pro rata level of production activity is frequently inventory costing, as prescribed by para­ portion of any net negative overhead described as practical capacity for the graph (a) of this section, must change variances and any net negative direct period and is ordinarily based upon the to that method. A taxpayer not using the production cost variances. The taxpayer historical experience of the taxpayer. For full absorption method of inventory cost­ must apportion such variances among example, a taxpayer operating on a 5- ing, as prescribed by paragraph (a) of his various items in ending inventory. day, 8-hour basis may have a “normal” this section, who makes the special elec­ However, if such variances are not production of 100,000 units a year based tion provided in subdivision (ii) of this significant in amount in relation to the upon 3 years of experience. subparagraph during the transition pe­ taxpayer’s total actual indirect produc­ (c) Based upon theoretical capacity. riod described in subdivision (ii) of this tion costs for the year then such vari­ Practical capacity may also be estab­ subparagraph need not change to the ances need not be allocated to the tax­ lished by the use of “theoretical” capac­ full absorption method of inventory cost- payer’s goods in ending invenory unless ity, adjusted for allowances for esti­ irfg for taxable years prior to the year such allocation is made in the taxpayer’s mated inability to achieve mavimnm for which such election is made, but only financial reports. In addition, the tax­ production, such as machine breakdown, if no notice of deficiency under section payer must treat both positive and nega­ idle time, and other normal work stop­ 6212 has been issued for such years with tive variances consistently. pages. Theoretical capacity is the level respect to an issue involving inventory (b) Notwithstanding (a) of this sub­ of production the manufacturer could costing. The rules otherwise prescribed division, the practical capacity concept reach if all machines and departments in sections 446 and 481 and the regula­ may be used to determine the total were operated continuously at peak' tions thereunder shall apply to any tax­ amount of fixed indirect production costs efficiency. payer who fails to make the special which must be allocated to goods in end­ (d) Example. The provisions of (c) election in subdivision (ii) of this sub- ing inventory. See subparagraph (4) of of this subdivision may be illustrated paragraph. The transition rules of this this paragraph. ' by the following example: paragraph are available only to those (4) Practical capacity concept— (i) taxpayers who change their method of In general. Under the practical capacity Corporation X operates a stamping plant with a theoretical capacity of 50 units per inventory costing. concept, the percentage of practical hour. The plant actually operates 1960 hours (ii) Special election during 2-year- capacity represented by actual produc­ per year based on an 8-hour day, 5 day week transition period. If a taxpayer elects to tion (not greater than 100 percent), as basis and 15 shutdown days for vacations change to the full absorption method of calculated under subdivision (ii) of this and holidays. A reasonable allowance for inventory costing during, the transition subparagraph, is used to determine the down time (the time allowed for ordinary period provided herein, lie may elect on total amount of fixed indirect produc­ and necessary repairs and maintenance) is Form 3115 to change to such full absorp­ tion costs which must be included in the 5 percent of practical capacity before reduc­ tion for down time. Assuming no loss of pro­ tion method of inventory costing and, in taxpayer’s computation of the amount so doing, employ the transition proce­ of inventoriable costs. The portion of duction during starting up, closing down, or employee work breaks, under these facts dures and adopt any of the transition such costs to be included in the tax­ and circumstances X may properly make a methods prescribed in subparagraph (2) payer’s computation of the amount of practical capacity computation as follows: of this paragraph. Such election shall be inventoriable costs is then combined Practical capacity without allowance made during the first 180 days of any With variable indirect production costs taxable year beginning on or after (the an~. b°th are allocated to the goods in for down time based on theoretical ending inventory in accordance with this capacity per hour is (1960X50) ___ 98,000 date of adoption of these regulations as Reduction for down time (98.000X a Treasury decision) and before (2 years Paragraph. See the example in subdivi- 5 percen t)______4 . 900 after the date of adoption of these regu­ sion (ii) (d) of this subparagraph. The Practical capacity. ______93 j joq difference (if any) between the amount lations as a Treasury decision) (i.e., the ,3 a“ fixed indirect production costs and The 93,100 unit level of activity (i.e., prac­ “transition period” ) and the change in tical capacity) would, therefore, constitute inventory costing method shall be made me fixed indirect production costs which an appropriate base for calculating the are included in the computation of the for the taxable year in which the election amount of fixed indirect production costs to is made. Notwithstanding the preceding amount of inventoriable costs under the be included in the computation of the practical capacity concept is allowable sentence if the taxpayer’s prior returns amount of inventoriable costs for the period are being examined by the Service prior . ,a_ deduction for the taxable year in under review. On this basis if only 76,000 which such difference occurs. units were produced for the period, the effect to (the date of adoption of these regula­ , Calculation of practical capacity— would be that approximately 81.6 percent tions as a Treasury decision) but a statu­ /(76,000, the actual number of units produced, tory notice of deficiency has not been fife,nera^ Practical capacity and divided by 93,100, the maximum number of issued, and there is an issue involving a r “ caPacity (as described in (c) units producible at practical capacity) of the change in inventory costing method, the tony?18 ^division) may be computed in fixed indirect production costs would be in­ s of tons, pounds, yards, labor hours, taxpayer may request the application of cluded in the computation of the amount of this regulation by agreeing to change

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4342 PROPOSED RULE MAKING to the full absorption method for the be taken into account in computing in­ subparagraph but fails to elect within the first taxable year of the taxpayer ending come for the taxable year in which such transition period. If a taxpayer wishes to after (the date of adoption of the Regu­ taxpayer so ceases to exist or such tax­ change to the full absorption method of lations as a Treasury decision). payer’s inventory is so reduced. inventory costing (as prescribed by para­ (iii) Change initiated by the Commis­ (ii) Additional rules for LIFO tax­ graph (a) of this section) from a method sioner. A taxpayer who properly makes payers. A taxpayer who uses the LIFO of inventory costing which is more in­ an election under subdivision (ii) of this method of inventory identification may clusive of indirect production costs and subparagraph shall be considered to have either— he has previously changed to his present made a change in method of accounting (a) Employ the special transition method pursuant to subparagraphs (1), not initiated by the taxpayer, notwith­ rules described in subdivision (i) of this (2), and (3) of this paragraph or he standing the provisions of § 1.481-1 (c) subparagraph. Accordingly, all UFO would satisfy the requirements of subdi­ (5). Thus, any of the taxpayer’s “pre- layers must be revalued under the full vision (i) of this subparagraph but he 1954 inventory balances” with respect to absorption method and the section 481 fails to elect within the transition period, such inventory shall not be taken into adjustment must be computed for all he must secure the consent of the Com­ account as an adjustment under section items in all layers in inventory, but no missioner prior to making such change. 481. For purposes of this paragraph, a pre-1954 inventory balances shall be [FR Doc.73-2754 Filed 2-12-73;8:45 am] “pre-1954 inventory balance” is the net taken into account as adjustments under amount of the adjustments which would section 481; or have been required if the taxpayer had (b) Employ a cutoff method whereby [ 26 CFR Part 1 ] made such change in his method of ac­ the full absorption method is only ap­ INCOME TAX counting with respect to his inventory in plied in costing layers of inventory ac­ his first taxable year which began after quired during all taxable years beginning Domestic International Sales Corporations; December 31, 1953, and ended after Au­ with the year for which an election is Notice of Public Hearings gust 16, 1954. See section 481(a) (2) and made under subparagraph (1) (ii) of this Public hearings on the provisions of § 1.481-3. paragraph. the below listed proposed regulations will (2) Procedural rules for change. If a (4) Transition to full absorptionbe held on March 13, 1973, at 10 a.m., taxpayer makes an election pursuant to method of inventory costing from a e.s.t., and if necessary will continue on subparagraph(l) (ii) of this paragraph, method more inclusive of indirect pro­ March 14, 1973, beginning at 10 a.m. in the Commissioner’s consent will be evi­ duction costs— (i) Taxpayer has not pre­ Room 3313, Internal Revenue Building, denced by a letter of consent to the tax­ viously changed to his present method llllConstitution Avenue NW., Washing­ payer, setting forth the values of-inven­ pursuant to subparagraphs (1), (2), and ton, DC 20224. The public hearings will tory, as provided by the taxpayer, (3) of this paragraph. If a taxpayer be in respect to: determined under the full absorption wishes to change to the full absorption (1) Proposed regulations under section method of inventory costing, except to method of inventory costing (as pre­ 992 of the Internal Revenue Code of the extent that no determination of such scribed by paragraph (a) of this section) 1954 relating to requirements of a do­ values is necessary under subparagraph from a method of inventory costing mestic international sales corporation (3) (ii) (b) of this paragraph (the cutoff which is more inclusive of indirect pro­ (DISC), appearing in the F ederal R egis­ method), the amount of the adjustments duction costs and he has not previously ter for September 12, 1972 (37 FR (if any) required to be taken into ac­ changed to his present method by use 18475). count by section 481, and the treatment of the special transition rules provided (2) Proposed regulations under section to be accorded to any such adjustments. by subparagraphs (1), (2), and (3) of 995 of the Internal Revenue Code of 1954 Such full absorption values shall be sub­ this paragraph, he may elect on Form relating to foreign investment attribut­ ject to verification on examination by the 3115 to change to the full absorption able to producer’s loans, appearing in the District Director. The taxpayer shall method of inventory costing and, in so F ederal R egister for September 15,1972 preserve at his principal place of busi­ doing, take into account any resulting (37 FR 18736). ness all records, data, and other evidence section 481 adjustment generally over 10 (3) Proposed regulations under sec­ relating to the full absorption values of taxable years commencing with the year tion 994 of the Internal Revenue Code of inventory. of transition. The Commissioner’s con­ 1954 relating to inter-company pricing (3) Transition methods. In the case of sent to such election will be evidenced rules for DISC’S, appearing in the F ed­ a taxpayer who properly makes an elec­ by a letter of consent to the taxpayer eral R egister for September 21,1972 (37 tion under subparagraph (1) (ii) of this setting forth the values of inventory, as FR 19625). - paragraph during the transition period— provided by the taxpayer determined (4) Proposed! regulations under section (i) 10-year adjustment period. Such under the full absorption method of in­ 993 of the Internal Revenue Code of taxpayer may elect to take any adjust­ ventory costing, except to the extent that 1954 relating to qualified export receipts ment required by section 481 with respect no determination of such values is neces­ and producer’s loans of a domestic inter­ to any inventory being revalued under sary under subparagraph (3) (ii) (b) of national sales corporation (DISC), ap­ the full absorption method into account this paragraph, the amount of the ad­ pearing in the F ederal R egister for Oc­ ratably over a period designated by the justments (if any) required to be taken tober 4, 1972 (37 FR 20853). taxpayer at the time of such election, into account by section 481, and the treat­ (5) Proposed regulations under sec­ ment to be accorded such adjustments, tion 994 of the Internal Revenue Code of not to exceed the lesser of 10 taxable 1954 relating to marginal costing^ rules years commencing with the year of subject to terms and conditions specified for intercompany pricing for D IS C ’S, ap­ transition or the number of years the by the Commissioner to prevent distor­ pearing in the F ederal R egister for De­ taxpayer has been on the inventory tions of income. Such election must be method from which he is changing. If made within the transition period de­ cember 20, 1972 (37 FR 28065). the taxpayer dies or ceases to exist in a scribed in subparagraph (1) (ii) of this (6) Proposed regulations under section transaction other than one to which sec­ paragraph. A change pursuant to this 993 of the Internal Revenue Code of 1954 tion 381(a) of the Code applies or if the subparagraph shall be a change initiated relating to qualified export receipts ana taxpayer’s inventory (determined under by the taxpayer as provided by § 1.481-1 producer’s loans of a domestic inter­ the full absorption method) on the last (c) (5). Thus, any of the taxpayers “pre- national sales corporation (DISC), ap* day of any taxable year is reduced by 1954 inventory balances” will be taken pearing in the F ederal R egister for De* more than an amount equal to 33 y3 per­ into account as an adjustment under cember 22, 1972 (37 FR 28302). cent of the taxpayer’s inventory (de­ section 481. (7) Proposed regulations under sec­ termined under the full absorption (ii) Taxpayer has previously changed tions 995, 996 and 997 of the Internal method) as of the beginning of the year to his present method pursuant to sub- Revenue Code of 1954 relating to t of change, the entire amount of the sec­ paragraphs (1), (2), and (3) of this treatment of distributions to share" tion 481 adjustment not previously taken paragraph or would satisfy all the re­ holders of domestic international saiej. into account in computing income shall quirements of subdivision (t) of this corporations, appearing in the F ede

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4343

Register for December 29, 1972 (37 FR and the applicable rules of practice (7 orders where they could realize a higher 28754). CFR Part 900), at Bridgeton, Mo., on return for their deliveries. (8) Proposed regulations under sec­ November 1, 1972, pursuant to notice A Paducah order handler and the prin­ tions 246, 301, 901, 902, 922, 931, and 1014 thereof issued on October 10,1972 (37 FR cipal cooperative under that order also of the Internal Revenue Code of 1954 21641). opposed removing the plus 15-cent loca­ relating to domestic international sales Upon the basis of the evidence intro­ tion adjustment at Cape Girdardeau. corporations, appearing in the F ederal duced at the hearing and the record They claimed that it would give the Cape Register for January 5, 1973 (38 FR thereof, the Deputy Administrator, Reg­ Girardeau handler an advantage over 883). ulatory Programs, on January 8,1973 (38 Paducah handlers in their common sales The rules of § 601.601(a) (3) of the FR 1281) filed with the Hearing Clerk, areas and would cause an inappropriate Statement of Procedural Rules (26 CFR U.S. Department of Agriculture, his alignment of prices between the two Part 601) shall apply with respect to recommended decision containing notice orders. such public hearings. Copies of these of the opportunity to file written excep­ A major cooperative under the St. rules may be obtained by a request di­ tions thereto. Louis-Ozarks order represents all but rected to the Commissioner of Internal The material issues, findings and con­ one of the producers,supplying the Cape Revenue, Attention: CC:LR:T, Wash­ clusions, rulings, and general findings of Girardeau handler. This cooperative ington, D.C. 20224, or by telephoning the recommended decision are hereby stated its concern that producers at Cape (Washington, D.C.) 202—964-3935. approved and adopted and are set forth Girardeau should receive a reasonable Under such § 601.601(a) (3), persons who in full herein, subject to the following return, but pointed to the lower prices have submitted written comments or sug­ modifications in the findings and con­ east, west, and north of Cape Girardeau gestions within the time prescribed in the clusions: and to the importance to orderly mar­ respective notices of proposed rule mak­ 1. The sixth paragraph is revised. keting of equitable treatment of handlers ing and who desire to present oral com­ , 2. The 25th paragraph is revised. who compete with distributors in neigh­ ments at the respective hearing on such 3. Two paragraphs are added imme­ boring markets. Reference was made to proposed regulations should by Febru­ diately following the 25th paragraph. the longstanding controversy over the ary 27, 1973, submit an outline of the The material issue on the record of the price level at Cape Girardeau and hope topics and the time they wish to devote hearing relates to reducing the location was expressed that, insofar as the hear­ to each topic. Such outlines should be adjustment in Zone II of the marketing ing would permit, a price might be pro­ submitted to the Commissioner of In­ area. vided at Cape Girardeau that will assure ternal Revenue, Attention: OC:LR:T, an adequate supply for plants so located Washington, D.C. 20224. F in d in g s a n d C o n c l u s io n s and at the same time provide for proper Persons who desire & copy of such The following findings and conclusions alinement of prices among the competing written comments or suggestions or out­ on the material issues are based on evi­ markets. It suggested that any change in lines and who desire to be assured of their dence presented at the hearing and the location pricing resulting from the hear­ availability on or before the beginning of record thereof: ing should be directed particularly to such hearings should notify the Com­ The plus location adjustment appli­ achieving comparable Class I prices at missioner, in writing, at the above ad­ cable to the Class I price and uniform Cape Girardeau under both the St. Louis- dress by March 6, 1973. In such a case, price at a plant in Zone H (the southeast­ Ozarks and Memphis orders. As a coop­ unless time and circumstances permit ern Missouri counties of Cape Girardeau, erative association, it expressed its inter­ otherwise, the desired copies are de­ Bollinger, St. Francois, Perry, and Ste. est in obtaining the maximum practi­ liverable only at the above address. The Genevieve) should be reduced from 15 cable returns for its members. charge for copies is twenty-five cents cents to 7 cents. A cooperative whose members ship to ($0.25) per page, subject to a minimum The hearing notice proposal was sub­ St. Louis-Ozarks regulated plants, and charge of $1. mitted by a handler at Cape Girardeau that also operates a distributing plant who operates the only regulated plant in regulated by the Southern Illinois order, An agenda showing the order of the similarly opposed eliminating the plus hearings on the proposed regulations and Zone n . He proposed to eliminate the present plus 15-cent location adjustment, 15-cent location adjustment. Its spokes­ the scheduling of the speakers will be man proposed, however, to reduce the made after outlines are received from the claiming that it places him at a disad­ speakers. Copies of this agenda will be vantage in competing for sales with those location adjustment 7 or 8 cents, stating handlers under the St. Louis-Ozarks that such a reduction would more ap­ available free of charge at the hearings, propriately align the Class I price at and information with respect to its con­ order whose Class I price is not subject to a plus location adjustment. Also, he Cape Girardeau with the Southern Illi­ tents may be obtained on March 12,1973, nois order Class I price. by telephoning (Washington, D.C.) testified that his producers, even with­ 202—964-3935. out the plus 15-cent location adjustment, Besides his distribution in Zone II of still would realize a better return than the St. Louis-Ozarks marketing area, L e e H . H e n k e l , J r., they could obtain by delivering their milk the Cape Girardeau handler proposing Chief Counsel. a greater distance to plants in St. Louis. the price reduction sells in the Memphis marketing area, in the Missouri portion IFR Doc.73-2969 Piled 2 -1 2 -7 3 ; 10:14 am ] There was significant opposition at the hearing to removing the 15-cent location of the Paducah marketing area, and in adjustment. Operators of regulated several counties in southeastern Missouri d e p a r t m e n t o f agriculture that are not in any Federal order mar­ plants under the Memphis and Central keting area. His sales in the Paducah Agricultural Marketing Service Arkansas orders, who compete for sales with the Cape Girardeau handler in marketing area are, however, not a sig­ [ 7 CFR Part 1062 ] southeastern Missouri and in the Mem­ nificant proportion of his total Class I [Docket No. AO 10-A46] distribution or of the total Class I sales phis area, claimed that removal of the in that marketing area. plus 15-cent adjustment in Zone n would MILK IN THE ST. LOUIS-OZARKS Currently, Class I distribution from MARKETING AREA misalign the Class I price applicable at the Cape Girardeau location with the the Cape Girardeau plant in the Mem­ Decision on Proposed Amendments to Class I prices under other orders. phis marketing area is only slightly less Marketing Agreement and to Order than its sales in the St. Louis-Ozarks Spokesmen for a cooperative repre­ marketing area. In fact, in some months hearing was held upon pro- senting a majority of the producers un­ Posed amendments to the marketing (but not for 3 consecutive months) the der the Memphis and Central Arkansas plant’s sales in the Memphis marketing “gr ement and the order regulating the orders contended that removal of the hi the St. Louis-Ozark; area have been more than in the St. plus 15-cent location adjustment would Louis-Ozarks marketing area. Both or­ Pursmtrv?S* arJLa* 1116 hearing was held jeopardize the supply of the Cape ders specify that a plant’s distribution cuihtSi A* the .Provisions of the Agrl- Girardeau handler, because Cape Gi­ in an other order marketing area must lQo7ural Marketing Agreement Act oJ rardeau area producers would ship in­ d7’ 85 amended (7 U.S.C. 601 et seq.) exceed those in the order under which it stead to nearby plants under the other is currently regulated for 3 consecutive

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4344 PROPOSED RULE MAKING months before it may be regulated by city of Paducah, he has limited com- prices in the St. Louis-Ozarks and Mem- the other order. petition for sales with handlers under phis orders. The Cape Girardeau plant has been a that order in the southeastern Missouri The handler competition between these fully regulated plant under the St. Louis- counties of the Paducah marketing area, markets calls for a close price alinement Ozarks order (or its predecessor, the St. Although the Cape Girardeau handler for the purposes described above. The Louis order) since February 1, 1965. The competes for sales with St. Louis handlers plus location adjustment of 7 cents pro­ plus 15-cent location adjustment at Cape in the Cape Girardeau vicinity, he has posed herein for Cape Girardeau will Girardeau has been effective since Feb­ no distribution of his own in the St. Louis promote orderly marketing by providing ruary 1, 1965, when the five counties in metropolitan area. Neither does he com- a Class I price at Cape Girardeau equiva- Zone II were added to the marketing •pete for sales with handlers regulated lent to that prevailing for the same loca- area of the St. Louis order (which be­ under the nearby Southern Illinois mar- tion under the Memphis order, came the St. Louis-Ozarks order Octo­ keting area, in or outside such area. It was found further in a prior deci- ber 1, 1968). The decision of the Assist­ The alternatives available to producers si°n on the St. Louis-Ozarks order that ant Secretary on November 5, 1964 (28 delivering their milk to the Cape Girar- the greater the distance that an order FR 15130), concluded that the plus 15- deau plant are not limited to plants lo- market is situated geographically from cent adjustment in Zone II was neces­ cated in St. Louis. The economic value of the heavy production region of the coun- sary to insure an adequate supply for their milk may be expected to be more try, the higher the Class I price tends plants in such area and to improve the affected by the best of their opportunities to be. For the St. Louis-Ozarks market alignment of prices among orders regu­ pricewise than by their lowest-priced al- and other markets to the south of St. lating competing handlers. temative outlets. The Paragould, Ark., Louis-Ozarks, the Chicago milkshed is The St. Louis-Ozarks Class I price plant is an outlet for additional quanti- an important alternative source of sup- and those in the nearby Federal order ties of milk on a direct-delivery basis. Ply when outside milk is needed for markets are computed by adding stated The Cape Girardeau producers are situ- fluid use. amounts, commonly referred to as Class ated to take advantage of this outlet. The a basic reason for this is that local I differentials, to the basic formula price return to such producers after the haul supplies for those markets farther re- (Minnesota-Wisconsin manufacturing to Paragould would be significantly moved from the Chicago milkshed tend milk price). The St. Louis-Ozarks Class I more than if the milk were delivered to to be less adequate for their year-round differential of $1.60 is applicable in the St. Louis. Also, the higher blend price needs than those nearer the Chicago St. Louis metropolitan area, the principal under the Central Arkansas order at the production area. In 1971, for example, population center under the order. With Paragould plant could reasonably be ex- the Class I utilization of producer deliv- the plus 15-cent location adjustment, the pected to return to such producers more eries under the Memphis, Central Ar- applicable Class I differential at Cape Gi­ than they would realize at Cape Girar- kansas and Paducah orders was 85 per- rardeau is $1.75. Under both the Mem­ deau after a 15-cent reduction, as was , cent, 89 percent, and 74 percent, respec- phis and Central Arkansas orders the proposed. Consequently, there can be no . tively. Under the St. Louis-Ozarks and Class I differential (over the same basic strong presumption that such producers Southern Illinois orders, Class I utiliza- formula price) is $1.94. would gravitate to the lowest-priced out- . tion of producer receipts was 64 percent The Class I differential applicable at lets in the region. and 60 percent, respectively, for the the Cape Girardeau plant, if regulated It was concluded in a previous decision same period. These conditions are re- by the Memphis order, would be $1.67. on the St. Louis-Ozarks order that price fleeted in the relative prices of the This results from subtracting from the alignment among regulated markets Memphis, Central Arkansas and Paducah $1.94 Class I differential the 27-cent lo­ where intermarket handler competition markets. The Memphis^ Central Arkan- cation adjustment that applies at a plant occurs is an important factor to be con- sas, and Paducah Class I pricesa re 34 175 miles from Memphis. In effect, if the sidered by the Secretary in his efforts to cents, 34 cents, and 25 cents, respectively, Cape Girardeau plant were regulated by achieve market stability for producers more than the Zone I Class I price in the the Memphis order, its Class I price under a given order and reasonable SRt. Louis-Ozarks order, would be 8 cents less ($1.67 versus $1.75) market allocation nf available milk sup- Cape Girardeau is farther from Chi- than is now provided under the St. Louis- plies where market milksheds tend to Cago than St. Louis proper. The 7-cent- Ozarks order. overlap. These intermarket relationships pius location adjustment adopted gives Cape Girardeau, which is near the involving St. Louis-Ozarks with Mem- reasonable recognition to the greater main north-south highway between St. phis, Central Arkansas and Paducah have distance, and consequent cost of delivery, Louis and Memphis, is about 175 miles been referred to herein above. to Cape Girardeau from a basic source from Memphis. In view of relatively The primary problem of market price of alternative supplies, small differences between the plant’s alignment on this record relates to the i n an exception to the recommended volumes of sales under the two orders in St. Louis-Ozarks-Memphis relationship, decision, a handler contended that the recent months, there is the possibility The Cape Girardeau , handler, as pre- plus location adjustment at Cape Girar- that at least at times it could become a viously indicated, sells approximately as deau should be determined solely on fully regulated plant under the Memphis much milk in the Memphis marketing the basis of its greater distance (than order. area as in his home market at Cape st. Louis) from the city of Chicago. As Paragould is about 85 miles northwest Girardeau. calculated by him, the location adjust- of Memphis and 148 miles south of Cape The Class I price relationship between ment at Cape Girardeau would be 12 Girardeau, The Class I price differential this order and the Memphis order has cents (based at a rate of 1.5 cents for at the Paragould location under the Cen­ changed significantly since Zone II was each 10 miles of the 79-mile greater dis- tral Arkansas order is $1,805, or 15 cents added to the marketing area. From Feb- tance to Cape Girardeau from Chicago). higher than the price that would be ruary 1965 through July 1968 the Mem- Two other handlers, in exceptions, applicable under such order for a plant phis Class I price exceeded the St. Louis pointed to testimony by the witness o regulated thereby and located at Cape Zone II Class I price an average of 61 a cooperative that on the basis of ais- Girardeau. A principal competitor of the cents. Since July 1968 the Memphis tance from Eau Claire, Wisconsin, in tn Cape Girardeau handler for sales in Class I price has been 19 cents more than heart of the Chicago milkshed, a pri southeastern Missouri is a handler at the Zone II Class I price in each month. 16.5 cents higher than at St. Louis worn Paragould, Arkansas, regulated by the When Zone II was added to the mar- be warranted at Cape Girardeau, Central Arkansas order. keting area, the existing differences be- One economic condition that may The Class I price in the Paducah tween the monthly Class I price under feet determination as to the propnr. marketing area is 10 cents higher than the St. Louis and Memphis orders was of a price proposal for a particular m at Cape Girardeau. Paducah, the princi­ a matter considered in establishing the ket or location is the cost involved pal city in the Paducah marketing area, plus 15-cent location adjustment. The substituting alternative suppnes _ is about 70 miles southeast of Cape revised basis of pricing at Cape producer milk priced under the ora • Girardeau. While the Cape Girardeau Girardeau herein provided gives recog- representative price,, at the aiwrn» handler has no Class I distribution in the nition to the current relationship of . source plus reasonable transpor

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4345

cost allowance (a figure commonly used and of the previously issued amendments hereby proposed to be amended, regu­ is 1.5 cents per hundredweight per 10 thereto; and all of said previous findings lating the handling of milk in the St. miles) is a measure of such cost. Ob­ and determinations are hereby ratified Louis-Ozarks marketing area is ap­ viously, such alternative cost is but one and affirmed, except insofar as such find­ proved or favored by producers, as de­ of the economic conditions that affect ings and determinations may be in con­ fined under the terms of the order, as market supply and demand for milk or flict with the findings and determinations amended and as hereby proposed to be its products in a given marketing area. set forth herein. amended, and who, during such repre­ In carrying out statutory objectives, the (a) The tentative marketing agree­ sentative period, were engaged in the determination of an appropriate mini­ ment and the order, as hereby proposed production of milk for sale within the mum price rhay not be reached on this to be amended, and all of the terms and aforesaid marketing area. one factor or condition to the exclusion conditions thereof, will tend to effec­ tuate the declared policy of the Act; Signed at Washington, D.C., on Feb­ of other economic conditions found to ruary 8, 1973. affect market supply and demand. (b) The parity prices of milk as deter­ Since Cape Girardeau is about 65 mined pursuant to section 2 of the Act C l a y t o n Y e u t t e r , miles farther from Chicago than St. are not reasonable in view of the price of Assistant Secretary. Louis proper, the 7-cent plus adjustment feeds, available supplies of feeds, and Order11 amending the order, regulating adopted is reasonable in respect of the other economic conditions which affect the handling of milk in the St. Louis- greater distance, and consequent cost of market supply and demand for milk in Ozarks marketing area. the marketing area, and the minimum delivery, to such location from the basic F in d in g s an d D eterminations source of alternative supplies. prices specified in the tentative market­ Both the proponent Cape Girardeau ing agreement and the order, as hereby The findings and determinations here­ handler and a Paducah order handler proposed to be amended, are such prices inafter set forth are supplementary and contended that there is misalignment of as will reflect the aforesaid factors, in­ in addition to the findings and deter­ prices between the Paducah order and sure a sufficient quantity of pure and minations previously made in connec­ St. Louis-Ozarks order at Cape Girar­ wholesome milk, and be in the public tion with the issuance of the aforesaid deau, primarily because the Paducah interest; and order and of the previously issued Class I price is too high relative to the (c) The tentative marketing agreement amendments thereto; and all of said Class I price under the St. Louis-Ozarks and the order, as hereby proposed to be previous findings and determinations are order. The level of the Paducah price amended, will regulate the handling of hereby ratified and affirmed, except inso­ was not, of course, an issue at this hear­ milk in the same manner as, and will be far as such findings and determinations ing. However, a proposal to reduce the applicable only to persons in the respec­ may be in conflict with the findings and Paducah Class I price 15 cents was con­ tive classes of industrial and commercial determinations set forth herein. sidered at a hearing held in Paducah activity specified in, a marketing agree­ (a) Findings. A public hearing was December 12,1972 (37 FR 24760). Official ment upon which a hearing has been held upon certain proposed amendments notice is here taken of the fact of that held. to the tentative. marketing agreement and to the order regulating the handling hearing. If an adjustment in the Class R u l in g s o n E x c e p t io n s I price differential of the Paducah order of milk in the St. Louis-Ozarks marketing is warranted, the appropriate action can In arriving at the findings and con­ area. The hearing was held pursuant to be taken on the basis of that hearing. clusions, and the regulatory provisions the provisions of the Agricultural Mar­ The available supply of milk relative of this decision, each of the exceptions keting Agreement Act of 1937, as to local Class I needs at Cape Girardeau received was carefully and fully con­ amended (7 U.S.C. 601 et seq.), and the approximates that for total deliveries sidered in conjunction with the record applicable rules of parctice and procedure and total Class I utilization under the evidence. To the extent that the findings (7 CFR Part 900). St. Louis-Ozarks order. That is, about and conclusions, and the regulatory pro­ Upon the basis of the evidence intro­ ®5. percent of producer deliveries are visions of this decision are at variance duced at such hearing and the record utilized in Class I. Consequently, the with any of the exceptions, such excep­ thereof, it is found that: 8-cent reduction in the location adjust­ tions are hereby overruled for the rea­ (1) The said order as hereby amended, ment at Cape Girardeau adopted in this sons previously stated in this decision. and all of the terms and conditions thereof, will tend to effectuate the de­ decision should not impair the mainte­ M a r k e t in g A g r e e m e n t a n d O rder nance of an adequate supply of milk at clared policy of the Act; that location, but will tend to promote Annexted hereto and made a part (2) The parity prices of milk, as deter­ orderly marketing by assisting producers hereof are two documents, a marketing mined pursuant to section 2 of the Act, delivering to Cape Girardeau to main­ agreement regulating the handling of are not reasonable in view of the price of tain this nearby outlet for their milk. milk, and an order amending the order feeds, available supplies of feeds, and regulating the handling of milk in the other economic conditions which affect R u lin g s o n P ro p o se d F in d in g s an d St. Louis-Ozarks marketing area which market supply and demand for milk in C o n c l u s io n s have been decided upon as the detailed the said marketing area, and the mini­ Briefs and proposed findings and con­ and appropriate means of effectuating mum prices specified in the order as clusions were filed on behalf of certain the foregoing conclusions. hereby amended, are such prices as will interested parties. These briefs, proposed It is hereby ordered, That this entire reflect the aforesaid factors, insure a and conclusions and the evidence decision, except the attached marketing sufficient quantity of pure and whole­ m the record were considered in making agreement,1 be published in the F ederal some milk, and be in the public interest; the findings and conclusions set forth R e g is t e r . The regulatory provisions of and the marketing agreement are identical above. To the extent that the suggested (3) The said order as hereby amended findings and conclusions filed by inter­ with those contained in the order as hereby proposed to be amended by the regulates the handling of milk in the ested parties are inconsistent with the same manner as, and is applicable only nndmgs and conclusions set forth herein, attached order which is published with this decision. to persons in the respective classes of in­ the requests to make such findings or dustrial or commercial activity specified reach such conclusions are denied for the etermination o f r o d u cer ppr o v a l in, a marketing agreement upon which a reasons previously stated in this decision. D P A a n d R epresentative P er io d hearing has been held. G e n e r a l F in d in g s December 1972 is hereby determined . findings and determinations here- to be the representative period for the 11 This order shall not become effective un­ jnaiter set forth are supplementary and purpose of ascertaining whether the issu­ less and until the requirements of § 900.14 ance of the order, as amended and as of the £ules of practice and procedure gov­ n addition to the findings and deter- erning proceedings to formulate marketing _ .7?a“ °ns previously made in connection agreements and marketing orders have been th the issuance of the aforesaid order 1 Filed as part of the original document. m et.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4346 PROPOSED RULE MAKING

Order relative to handling. It is there­ Proponent, a cooperative association, in which the marketing year begins for fore ordered that on and after the effec­ has supplied a pool distributing plant which the support level is being deter­ tive date hereof the handling of milk in with milk produced in the vicinity of mined to the average index of prices the St. Louis-Ozarks marketing area Caledonia, Minn. When this milk sup­ paid by farmers for the 1959 calendar shall be in conformity to and in com­ ply is not needed at the pool distributing year. The average of the index of prices pliance with the terms and conditions of plant it is moved to a nonpool manu­ paid for calendar years 1969-72 will be the order, as amended, and as hereby facturing plant located in the produc­ used in computing the 1973 tobacco sup­ amended, as follows: tion area. port levels. This average is 411. The The provisions of the proposed market­ Caledonia is more than 150 miles from average index of prices paid for the cal­ ing agreement and order amending the the nearest of the basing points. The endar year 1959 is 298. The resulting order contained in the recommended de­ provisions providing for automatic Class ratio is 1.38. Thus, the support level for cision issued by the Deputy Administra­ I classification of milk moved to a non­ the 1973 crop of each eligible kind of tor, Regulatory Programs, on January 8, pool plant so located have been sus­ tobacco will be 138 percent of the 1959 1973, and published in the F ederal R e g ­ pended since September 1971. The sus­ crop support level. Prior to the beginning is t e r on January 11, 1973 (38 FR 1281) pension permits classifying milk so of the marketing season for each kind shall be and are the terms and provisions disposed of on the basis of its actual of tobacco, pursuant to section 403 of of this order, amending the order, and use and, therefore, facilitates the eco­ the Act, Commodity Credit Corporation are set forth in full herein : nomical disposition of reserve milk sup­ will issue proposed advance rates for the In § 1062.53, paragraph (b) is revised plies produced beyond 150 miles to various types and grades of tobacco, and as follows: nearby manufacturing plants for Class comments on such rates may be made § 1062.53 Location differentials to han­ n use. at that time. dlers. Deletion of provisions providing mile­ No change is contemplated in the ***** age limitations on transfers and diver­ method of supporting tobacco throu^ (b) In Zone II of the marketing area, sions of milk for Class n use is proposed loans on all kinds of tobacco and pur­ shall be the Zone I price plus a location in the recommended decision for 33 chases of Puerto Rican tobacco. Regula­ adjustment of 7 cents; orders (including this order) issued tions currently in effect with respect to August 28, 1972 (37 FR 19482). the tobacco price support program are * * * * . * Proponent requests action continuing set forth at 7 CFR Part 1464. [FR Doc.73-2853 Filed 2-12-73;8:45 am] the effect of the present suspension Prior to making determinations relat­ which expires February 28, 1973, to en­ ing to this notice, consideration will be [ 7 CFR Part 1079 ] able it to continue providing an orderly given to data, views, and recommenda­ marketing program for its member pro­ tions which are submitted in writing to MILK IN THE DES MOINES, IOWA ducers in the Caledonia area who have the Director, Tobacco Division, Agricul­ MARKETING AREA been associated with the Des Moines tural Stabilization and Conservation Notice of Proposed Suspension or Termi­ market. Service, U.S. Department of Agriculture, nation of Certain Provisions of the Order Signed at Washington, D.C., on Feb­ Washington, D.C. 20250. In order to be ruary 7, 1973. sure of consideration, all submissions Notice is hereby given that, pursuant must be received by the Director not later to the provisions of the Agricultural J o h n C. B l u m , than March 14. Marketing Agreement Act of 1937, as Deputy Administrator, amended (7 U.S.C. 601 et seq.), the sus­ Regulatory Programs. All written submissions made pursuant pension or termination of certain provi­ to this notice will be made available for sions of the order regulating the han­ [FR Doc.73-2852 Filed 2-12-73;8:45 am] public inspection at the office of the Di­ dling of milk in the Des Moines, Iowa, rector during the regular business hours (8:15 a.m. to 4:45 p.m.) (7 CFR 1.27(b)). marketing area is being considered. Commodity Credit Corporation All persons who desire to submit writ­ Signed at Washington, D.C., on Feb­ ten data, views, or arguments in connec­ [ 7 CFR Part 1464 ] ruary 7,1973. tion with the proposed suspension or TOBACCO termination should file the same with K e n n e t h E . F r ic k , Proposed Loan and Purchase Program for Executive Vice President, the Hearing Clerk, Room 112-A, Admin­ 1973 Crop istration Building, U.S. Department of Commodity Credit Corporation. Agriculture, Washington, D.C. 20250, not Notice is hereby given that the Secre­ [FR Doc.73-2856 Filed 2-12-73;8:45 am] later than February 20, 1973. All docu­ tary of Agriculture, under the authority ments filed should be in quadruplicate. of sections 106, 401, and 403 of the Agri­ All written submissions made pursu­ cultural Act of 1949, as amended (7 Commodity Exchange Authority U.S.C. 1445,1421, and 1423), and sections ant to this notice will be made available [ 17 CFR Part 1 ] for public inspection at the office of the 4 and 5 of the Commodity Credit Corpo­ Hearing Clerk dining regular business ration Charter Act, as amended (15 CONTRACT MARKETS hours (7 CFR l:2 7 (b )). U.S.C. 714b, 714c), proposes to make de­ Filing of Statement for Continuing The provisions proposed to be sus­ terminations relative to a support pro­ Designation pended or terminated are as follows: gram for the 1973 crop of tobacco. proposal was published in the Fed- In § 1079.44, all of paragraph (c ), and The Agricultural Act of 1949, as amended, requires the Secretary to make [< R e g ist e r on November 14, 1972 (37 in paragraph (d) the provisions “located 24117), pursuant to the authority oi not more than 150 miles by the shortest support available on any crop of to­ bacco for which marketing quotas have ¡ions 5, 6, 8, and 8a of the Commodity highway distance, as determined by the hange Act (7 U.S.C. 7, 8, 12, 12a), to market administrator, from the nearest not been disapproved by producers. Under section 106 of the Act, the level e a regulation setting forth certain of the Post Offices of Corydon, Creston, ditions and requirements which must Des Moines, Grinnell, Jefferson, and of support in cents per pound for each net by contract markets for their con- Ottumwa.” crop of each kind of tobacco for which ted designation as contract marxe j Statement of consideration. The pro­ marketing quotas are in effect, or for .which marketing quotas are not dis­ nested persons were given an opp * posed action would continue the effect of ity to request a hearing or make wr previous suspensions making inoperative approved, is mandatory at the support level for the 1959 crop of such kind of submissions on the matter on the automatic Class I classification of ire January 15, 1973. After consid milk transferred or diverted from a pool tobacco, multiplied by the ratio of the all statements and requests for near plant to a nonpool plant located more average of the index of prices paid by farmers for the 3 calendar years im­ received pursuant to the notice, than 150 miles from the nearest of the posed regulation Is amended as se six basing pointed listed above. mediately preceding the calendar year

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4347 forth below. Opportunity for the filing of therefor, addressed to the Administrator, [ 21 CFR Part 19 ] statements or request for hearing on the Commodity Exchange Authority, U.S. SPICED, FLAVORED STANDARDIZED ameridéd proposition is provided follow­ Department of Agriculture, Washington, ing the text of the amended proposed D.C. 20250, on or before April 16, 1973. CHEESES regulation. Persons who requested a Written statements with reference to Definition and Standard of Identity hearing on the original proposal should the subject matter of this amended pro­ renew their request if they wish a hear­ posal may be submitted by any inter­ Notice is given that a petition has been ing on the amended proposal. ested person. Such statements should be filed by the National Cheese Institute, The purpose of the amended proposed mailed to the Administrator of the Com­ Inc., 110 North Franklin St., Chicago, IL regulation is to establish requirements modity Exchange Authority prior to 60606, proposing that a standard of iden­ whereby each contract market would file, April 16,1973. tity be established for natural cheeses at stated periodic intervals, a statement The transcript of the proceedings at which contain added spice, or flavoring, and supporting data showing the provi­ any hearing which may be held and all or both, but in other respects conform to sions that it has made to meet the desig­ written submissions made pursuant to existing natural cheese standards of nation requirements and conditions of this notice and the notice of November 14, identity. sections 5 and 5a of the Commodity Ex­ 1972, on this matter will be made avail­ Presently natural cheeses for which change Act (7 U.S.C. 7, 7a). This is to able for public inspection in the Office there are no standards of identity may afford the contract market opportunity of the Administrator, Commodity Ex­ be spiced in accordance with the stand­ to show (1) how the provisions of an change Authority, during regular busi­ ards of identity for spiced cheeses (21 existing futures contract reflect current ness hours (7 CFR 1.27(b)). CFR 19.670) and for part-skim spiced marketing conditions, and (2) how their cheeses (21 CFR 19.675). In addition, the bylaws, rules, regulations, and resolu­ Issued February 8,1973. standard of identity for provolone cheese tions carry out the requirements of sec­ A l e x C . C a l d w e l l , (21 CFR 19.590) provides for smoke tions 5 and 5a. Administrator, flavoring, the standard of identity for As amended, the proposed regulation Commodity Exchange Authority. sap sago cheese (21 CFR 19.637) provides would read as follows: for the use of dried clover, and the [FR Doc.73-2857 Filed 2-12-73;8:45 am] § 1.50 Filing o f information by contract standard of identity for colby cheese (21 markets. CFR 19.510) provides for smoke flavor­ DEPARTMENT OF HEALTH, ing in the cheese. (a) Each contract market shall file EDUCATION, AND WELFARE The purpose of the proposal is to es­ with the Commodity Exchange Author­ tablish under a single new section a ity, at least once every 5* years, a state­ Food and Drug Administration definition and standard of identity which ment with supporting data showing the [ 21 CFR Part 18 ] would permit the addition of spices, or provisions that it has made to continue to flavoring, or both, to each of the stand­ comply with the conditions and require­ MILK AND CREAM ardized natural cheeses without spe­ ments for designation as a contract mar­ Proposed Standards of Identity; Extension cifically amending each natural cheese ket for a specified commodity. Such of Time for Filing Comments standard. The labeling provisions are de­ statement shall be responsive to the pro­ signed to assist the consumer in distin­ visions of sections 5 and 5a of the Act. In the matter of revising -existing standards and establishing new Identity guishing the new cheese product from The supporting data shall include any the traditional natural cheese, and re­ information which will assist the Act standards for milk and cream (21 CFR Part 18) : quire that the common or usual name of Administrator in evaluating the effec­ the added characterizing spice and/or tiveness of the provisions described in A notice of proposed rule making in the above-identified matter published in flavor, be included on the principal dis­ the statement. play panel as part of the name of the (b) The contract market shall file the the F ederal R e g is t e r of September 9, 1972 (37 FR 18392), provided for the fil­ cheese. The proposed standard would required information for each commodity permit only safe and suitable spices and at least once every 5 years but not less ing of comments within 60 days follow­ ing its publication date. This time was flavorings so as to create new and dis­ than 90 days after the effective date tinctive foods. For an ingredient in of this regulation, in accordance with a subsequently extended to February 6, 1973 (37 FR 23363, November 2, 1972). cheese to be safe and suitable it must schedule showing dq,tes of required filing meet the requirements of the Federal established by the Act Administrator and The Commissioner has received several which will be provided by him to each requests for an additional extension of Food, Drug, and Cosmetic Act and ap­ contract market, and every 5 years after such time and, good reason therefor ap­ propriate regulations. 21 CFR 19.499 me date of the first filing: Provided, pearing, the time for filing comments in states that “ * * * the phrase ‘safe and That a contract market need not file this matter is extended to July 1, 1973. suitable’ when used to describe ingredi­ earlier than 5 years after the effective This extension will not effect the com­ ents of cheese or cheese products means date of its designation, unless so re­ mon effective date proposed in the F e d ­ that such ingredients shall be function­ quested upon special call by the Act e r a l R e g is t e r of January 19, 1973 (38 ally suitable substances that are not food Administrator. FR 2163) for compliance with various additives as defined in section 201 (s) of (c) The information required in para- new labeling requirements for packaged the Federal Food, Drug, and Cosmetic graph (a) of this section also shall be food nor will any additional extensions Act; or if they are food additives as so Died within 90 days after a special call of time for filing comments on these defined, they shall be used in conform­ uy the Act Administrator. proposed revisions to 21 CFR Part 18 be ity with regulations established pursuant to section 409 of the act.” . ^ Any failure by a contract market granted. This notice is issued pursuant to pro­ It should be recognized that the safety to continue to comply with the conditions of any prior sanctioned substance, such na requirements for designation as a visions of the Federal Food, Drug, and Cosmetic Act (secs. 401, 701,52 Stat. 1046, as smoke flavoring, as well as any gen­ ontract market as set forth in sections erally recognized as safe substance rof1*! * °* Act. and any failure or 1055-1056 as amended by 70 Stat. 919 and exusal to file the information required 72 Stat. 948; 21 U.S.C. 341, 371) and (GRAS) are being reviewed in accord­ ance with the notice which appeared in tin u re&ulation shall be cause for ac- under authority delegated to the Com­ missioner (21 CFR 2.120). the F ederal R e g is t e r of October 23,1971 mi? » -e- Commodity Exchange Com- (36 FR 20546). In addition, a proposed ^ der sections 5b, 6(a) or 6b of the Act (7 U.S.C. 7b, 8(a) , 13a). Dated: February 6, 1973. procedure for the regulation of ingredi­ ents subject to prior sanctions, was pub­ W il l i a m F . R a n d o l p h , interested person desires a hear- lished in the F ederal R e g is t e r of Au­ ref„erence to this amended pro- Acting Associate Commissioner for Compliance. gust 12, 1972 (37 FR 16407), and earlier rPfinûc4r4egï?a^on’ 116 should make a on June 25, 1971, a proposed regulation ^ st to that effect stating the reasons [FR Doc.73-2763 Filed 2-12-73;8:45 am] for GRAS substances was published (36

No. 29- FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4348 PROPOSED RULE MAKING

PR 12093). Notice will be given in the name(s) of the spice(s) and/or charac­ Act (sec. 507, 59 Stat. 463, as amended; F ederal R egister of an y changes in the terizing flavor(s) used. 21 U.S.C. 357) and under authority dele­ status of the ingredients now under (iii) If a clear aqueous solution pre­ gated to him (21 CFR 2.120), the Com­ review. pared by condensing or precipitating missioner of Food and Drugs proposes In addition to the above, grounds set wood smoke in water is added to the that Part 141 be amended in § 141.no forth in the petitioner’s proposal are cheese, the name of the cheese variety is Microbiological agar diffusion assay in that (1) the cheese industry has success­ immediately followed by the words “with the table in paragraph (a) for the item fully experimented with the addition of added smoke flavoring.” If used in com­ vancomycin by changing the entry in the various spices and flavors to standardized bination with spice (s) and/or flavor(s) column “Test organism” from “G” to natural cheeses, for example, caraway the words shall appear in order of pre­ “ H” and by changing the entry in the seeds in Gouda and Edam cheese, and dominance as prescribed in Paragraph column “Incubation temperature for the walnut or almond flavorings in semisoft (b) (1) (i) of lilis section. plates” from “30” to “37.” cheeses, and that (2) tests have also in­ (2) If the flavoring used is wholly or Interested persons may, on or before dicated that a smoke flavored Swiss or predominantly natural, the common or April 16, 1973, file with the Hearing Cheddar cheese would be both feasible usual name of the characterizing flavor Clerk, Department of Health, Education, and desirable. followed by the word “flavored” or “fla­ and Welfare, Room 6-88, 5600 Fishers The Commissioner of Food and Drugs voring” will be used, e.g., “Swiss with Lane, Rockville, MD 20852, written com­ recognizes the desire of consumers that Walnut Flavoring” or “Walnut Flavored ments (preferably in quintuplicate) re­ complete ingredient information be given Swiss.” garding this proposal. Comments may be on labels of standardized foods. Statu­ (3) If the flavoring used is wholly or accompanied by a memorandum or brief tory authority does not exist to require predominantly artificial, the word “arti­ in support thereof. Received comments declaration of the mandatory ingredi­ ficial” shall precede the name of the may be seen in the above office during ents in such foods. Careful consideration characterizing flavor used, e.g., “Swiss working hours, Monday through Friday. is presently being given to the revision with Artificial Walnut Flavoring” or “Ar­ Dated: February 5,1973. ■of present standards of identity for natu­ tificial Walnut Flavored Swiss.” ral cheeses. The need for revision of (4) The full name of the food shall M a r y A . M cE n ir y , these standards stems from the decision appear on the principal display panel in Assistant to the Director for of the Commissioner (1) to require that the same size, style, and color of type. Regulatory Affairs, Bureau of all optional ingredients in standardized Drugs. foods be listed on an appropriate infor­ Pursuant to provisions of the Federal mation panel of the package label and Food, Drug, and Cosmetic Act (secs. 401, [PR Doc.73-2764 Piled 2-12-73;8:45 am] (2) to update the standards. 701, 52 Stat. 1046, 1055, as amended 70 While the following proposal is essen­ Stat. 919, 72 Stat. 948; 21 U.S.C. 341, 371) DEPARTMENT OF TRANSPORTATION and in accordance with authority dele­ tially that of the petitioner, the Commis­ Federal Aviation Administration sioner on his own initiative has reworded gated to the Commissioner of Food and certain portions of the original proposal Drugs (21 CFR 2.120), interested persons [ 14 CFR Part 71 ] so as to be consistent with the act and are invited to submit their views in writ­ [Airspace Docket No. 72-GL-83] regulations promulgated thereunder. ing (preferably in quintuplícate) regard­ ing this proposal on or before April 16, TRANSITION AREAS AND AIRWAYS Accordingly, it is proposed that Part 19 1973. Such views and comments should Designation, Alteration, Deletion, and be amended by adding a new section to be addressed to the Hearing Clerk, De­ read as follows: Proposed Alteration partment of Health, Education, and Wel­ The Federal Aviation Administration is § 19.____ Spiced, flavored standardized fare, Room 6-88, 5600 Fishers Lane, considering amending Part 71 of the cheeses; identity; label statement of Rockville, MD 20852, and may be accom­ Federal Aviation regulations so as to des­ optional ingredients. panied by" a memorandum or brief in ignate a transition area within the (a) Except as otherwise provided for support thereof. Received comments may boundary of the State of Minnesota; herein and in applicable sections in this be seen in the above office during work­ alter the transition areas at Albert part, a spiced or flavored standardized ing hours, Monday through Friday. Lea, Alexandria, Benson, Fairbault- cheese conforms to the applicable defini­ Dated: February 4,1973. Owatonna, Fergus Falls, Jackson, Mank­ tions, standard of identity and require­ ato, Marshall, Montevideo, Morris, New ments for label statement of optional V irgil O. W odicka, Ulm, Pipestone, Redwood Falls, St. ingredients prescribed for that specific Director, Bureau of Foods. Cloud, Windom, Brainerd, Duluth, Fair­ natural cheese variety promulgated pur­ [PR Doc.73-2827 Filed 2-12-73;8:45 am] mont, Minneapolis, and Worthington, suant to section 401 of the Act. In addi­ Minn.; Fargo and Sioux Falls, S. Dak.; tion a spiced and/or flavored standard­ Grantsburg and Osceola, Wis.; and Spirit ized cheese shall contain one or more [ 21 CFR Part 141 ] Lake, Iowa. Transition area deletions at safe and suitable spices and/or flavor­ VANCOMYCIN Darwin, Hope, and Madison, Minn, are ings, in such proportions as are reason­ being considered and airway alterations ably required to accomplish. their in­ Proposed Change of Test Organism Used in are proposed. tended effect, provided that no combina­ Potency Assay Method Interested persons may participate in tion of ingredients shall be used to sim­ The Commissioner of Food and Drugs the proposed rule making by submitting ulate the flavor of cheese of any age or concludes that the antibiotic drug regu­ such written data, views, or arguments as variety. lations should be amended as set forth they may desire. Communications should (b) The name of a spiced or flavored below to revise the vancomycin potency be submitted in triplicate to the Director, standardized cheese is: assay method by providing for a change Great Lakes Region, Attention: Chief, <1) (i) “ ___ w ith____ ,” the first blank of the test organism from Bacillus cereus Air Traffic Division, Federal Aviation Ad­ being filled in with the name of the var. mycoides (ATCC 11778) to Bacillus ministration, 2300 East Devon Avenue, cheese variety and the second blank subtilis (ATCC 6633). Use of organism Des Plaines, IL 60018. All com m unica­ being filled in with the common or usual B. subtilis (ATCC 6633) results in zones tions received on or before March 15, name or names of the spice(s) and/or of inhibition that are sharper and clearer 1973, will be considered before action is characterizing flavor (s) used, in order of than those produced by the use of the taken on the proposed amendment, no predominance by weight. Alternatively organism B. cereus var. mycoides (ATCC publie hearing is contemplated at this the words “with added” may be used in 11778). This change of the test organism time, but arrangements for informal con­ place of the word “with.” would necessitate a change in the incu­ ferences with Federal Aviation Adminis­ (ii) Alternatively the name of such bation temperature for the plates. tration officials may be made by coher­ Therefore, pursuant to provisions of ing the regional air traffic division cm • food is the name of the cheese variety Any data, views, or arguments present«* preceded by the common or usual the Federal Food, Drug, and Cosmetic

FEDERAL REGISTER. VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4349 during such conferences must also be Fargo, S.D.—Add “excluding that por­ ing the Regional Air Traffic Division submitted in writing in accordance with tion in Minnesota south of parallel Chief. Any data, views or arguments pre­ this notice in order to become part of 46°30' ” sented during such conferences must also the record for consideration. The propos­ Grantsburg, Wis.—Add “excluding the be submitted in writing in accordance al contained in this notice may be . portion in Minnesota”. with this notice in order to become part changed in the light of comments re­ Minneapolis, Minn.—Delete all after of the record for consideration. The pro­ ceived. “ 1,200 feet above thè surface” and in­ posal contained in this notice may be A public docket will be available for sert in place “within the State of Wis­ changed in the light of comments examination by interested persons in the consin bounded by V13, V55, and V78”. received. Office of the Regional Counsel, Federal Osceola, Wis.—Add “ excluding that por­ A public docket will be available for Aviation Administration, 2300 East tion in Minnesota”. examination by interested persons in the Devon Avenue, Des Plaines, IL 60018. Sioux Falls, N. Dak.—Add “excluding Office of the Regional Counsel, Federal The controlled airspace required by that portion in Minnesota” . Aviation Administration, 2300 East the Minneapolis Air Route Traffic Con­ Spirit Lake, Iowa—Add “excluding that Devon Avenue, Des Plaines, IL 60018. trol Center to properly control aircraft portion in Minnesota” . A non-Federal tower has been estab­ within the State of Minnesota is exten­ Worthington, Minn.—Delete “within lished at Anderson, Ind., with weather sive and is presently listed in many cita­ 9% miles west and 4% miles east of reporting capability during the hours the tions. It has varying floors that are diffi­ the Worthington VOR 358° radial ex­ tower is in operation. Because of this cult for the pilot and controller to de­ tending from the VOR to 18% miles capability, the airport manager has re­ fine and use effectively. The installation north of the VOR; and”, and add at quested a control zone be established. of radar in the Rochester Tower will re­ end of description “excluding the por­ In addition, the transition area requires quire an additional 1,200-foot transition tion in Minnesota”. revision because of changes in transition area. To clarify the designated airspace area criteria since it was established. In § 71.123 (38 FR 307), the following In consideration of the foregoing, the and reduce the number of citations, we airways are amended as follows: propose to designate a 1,200-foot transi­ Federal Aviation Administration pro­ tion area in the State of Minnesota, V2—Delete “25 miles, 50 miles, 30 MSL poses to amend Part 71 of the Federal south of parallel 46°30' and within the Alexandria, Minn, including an N al­ Aviation Regulations as hereinafter set State of Wisconsin, northeast of Minne­ ternate from Fargo, 25 miles, 52 miles, forth: apolis, bounded by victor airways 55, 78, 30 MSL Alexandria, 5 miles, 70 miles In § 71.171 (38 FR 351), the following and 13. We also propose to reduce the 25 MSL”, and insert in place “Alex­ control zone is added: andria, Minn”. floor of airways in this area that are A nderson, I n d . V24—Delete “ 15 miles, 64 miles, 33 MSL”. higher than 1,200 feet above ground to Within a 5-mile radius of Anderson Mu­ the regular 1,200 AGL floor. V55—Delete “ 9 miles, 55 miles, 25 MSL” and 9 miles, 45 miles, 26 MSL” . nicipal Airport (latitude 40°06'30" N., longi­ In consideration of the foregoing, the tude 85°36'55" W.) and within 3.5 miles Federal Aviation Administration pro­ V82—Delete “ 11 miles, 52 miles, 25 MSL”. either side of the 298° bearing from Ander­ poses to amend Part 71 of the Federal V161—Delete “ 14 miles, 52 miles, 25 son Municipal Airport, extending from the Aviation regulations as hereinafter set MSL”. 5-mile radius to 7.5 miles northwest of the forth: V171—Delete “6 miles, 51 miles, 27 MSL”. airport. This control zone is effective during the specific dates and times established in In § 71.181 (38 FR 435), the following These amendments are proposed under the authority of section 307(a) of the advance by a Notice to Airmen. The effective transition area is added: date and time will thereafter be continuously Federal Aviation Act of 1958 (49 UJ3.C. published in the Airman’s Information M in n eso ta 1348), and of section 6(c) Of the De­ M anual. That airspace extending upward from 1,200 partment of Transportation Act (49 feet above the surface w ithin the boundary U.S.C.1655(c)). In § 71.181 (38 FR 435), the following of the State of Minnesota south of parallel transition area is amended to read: 46°30\ Issued in Des Plaines, -111., on Jan­ A n d er so n , I n d . uary 23,1973. In § 71.181 (38 FR 435), the following That airspace extending upward from 700 transition areas are amended by delet­ L y l e K . B r o w n , feet above the surface within an 8.5-mile ra­ ing reference to that airspace extending Director, Great Lakes Region. dius of Anderson Municipal Airport (latitude 40°06'30" N., longitude 85836'55" W.) and upward from 1,200 feet above the [FR Doc.73-2795 Filed 2-12-73:8:45 am] surface: within 4 miles each side of the 298° bearing from the airport, extending from the 8.5-mile Albert Lea, Minn. Marshall, Minn. [ 14 CFR Part 71 ] radius to 12 miles northwest of the airport; Alexandria, M inn. Montevideo, M inn. excluding the. airspace that overlies the Benson, Minn. Morris, Minn. [Airspace Docket No. 73-G L-l] Muncie transition area. Fairbault-Owatonna, New Ulm, Minn. Minn. Pipestone, M inn. CONTROL ZONE AND TRANSITION AREA These amendments are proposed under Fergus Falls, Minn. Redwood Falls, Minn. Proposed Designation and Alteration the authority of section 307(a) of the Jackson Minn. St. Cloud, M inn. Federal Aviation Act of 1958 (49 U.S.C. Mankato, Minn. W indom , M inn. The Federal Aviation Administration 1348), and of section 6(c) of the Depart­ , § 71.181 (38 FR 435), the following is considering amending Part 71 of the ment of Transportation Act [49 U.S.C. transition areas are deleted: 1 Federal Aviation Regulations so as to 1655(c)]. designate a control zone and to revise Madison, M inn. Hope, M inn. Issued in Des Plaines, 111., on January Darwin, Minn. the transition area at Anderson, Ind. 23,1973. Interested persons may participate in L y l e K . B r o w n , In § 71.181 (38 FR 435), the following the proposed rule making by submitting Director, Great Lakes Region. transition areas are amended as indi­ such written data, views or arguments cated: as they may desire. Communications [FR Doc.73-2796 FUed 2-12-73;8:45 am ] should be submitted in triplicate to the Brainerd, Minn.—Delete all after “ 1,200 Director, Great Lakes Region, Attention: teet above the surface” and insert in Chief, Air Traffic Division, Federal Avia­ [1 4 CFR Part 7 1 ] i™®® “within a 31%-mile radius of the tion Administration, 2300 East Devon [Airspace Docket No. 73-GL-3] vortac north of parallel 46° 30' and west of V161”. Avenue, Des Plaines, IL 60018. All com­ TRANSITION AREA munications received on or before March ^luth, Minn.—Add “and the portion in 15, 1973, will be considered-before action Proposed Alteration Minnesota south of parallel 46° 30' ” is taken on the proposed amendment. No The Federal Aviation Administration Fairmont, Minn.—Delete all after “ 18% public hearing is contemplated at this is considering amending Part 71 of the miles southeast of the airport” and in- time, but arrangements fpr informal con­ Federal Aviation Regulations so as to « « a u d t a g the portion in Minne- ferences with Federal Aviation Adminis­ alter the transition area at Dayton, Ohio tration officials may be made by contact­ (Montgomery County).

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4350 PROPOSED RULE MAKING

Interested persons may participate in [ 14 CFR Part 71 ] M an k a to , M i n n . the proposed rule making by submitting [Airspace Docket No. 72—GL-82 ] That airspace extending upward from 700 such written data, views or arguments as feet above th e surface w ithin an 8-mlle they may desire. Communications should CONTROL ZONE AND TRANSITION AREA radius of Mankato Municipal Airport (lati­ be submitted in triplicate to the Director, Proposed Alteration tude 44°13'25" N., longitude 93°55'06" W.). Great Lakes Region, Attention: Chief, The Federal Aviation Administration These amendments are proposed un­ Air Traffic Divsion, Federal Aviation Ad­ is considering amending Part 71 of the der the authority of section 307(a) of ministration, 2300 East Devon Avenue, Federal Aviation Regulations so as to the Federal Aviation Act of 1958 (49 Des Plaines, IL 60018. All communica­ alter the control zone and transition area U.S.C. 1348), and of section 6(c) of tions received on or before March 15, at Mankato, Minn. the Department of Transportation Act 1973, will be considered before action is' Interested persons may participate in (49 U.S.C. 1655(c)). taken qn the proposed amendment. No the proposed rule making by submitting Issued in Des Plaines, HI., on January public hearing is contemplated at this such written data, views or arguments as time, but arrangements for informal 22,1973. they may desire. Communications should R. O. Z iegler, conferences with Federal Aviation Ad­ be submitted in triplicate to the Director, Acting Director, ministration officials may be made by Great Lakes Region, Attention: Chief, Great Lakes Region. contacting the Regional Air Traffic Di­ Air Traffic Division,. 2300 East Devon [FR Doc.73-2799 Filed 2-12-73;8:45 am] vision Chief. Any data, views or argu­ Avenue, Des Plaines, IL 60018. All com­ ments presented during such conferences munications received on or before March must also be submitted in writing in ac­ 15, 1973, will be considered before action [ 14 CFR Part 71 ] cordance with this notice in order to be­ is taken on the proposed amendments. [Airspace Docket No. 73-GL-2] come part of the record for considera­ No public hearing is contemplated at this TRANSITION AREA tion. The proposal contained in this no­ time, but arrangements for informal tice may be changed in the light of com­ conferences with Federal Aviation Ad­ Proposed Alteration ments received. ministration officials may be made by The Federal Aviation Administration A public docket will be available for contacting the Regional Air Traffic Divi­ is considering amending Part 71 of the examination by interested persons in the sion Chief. Any data, views or arguments Federal Aviation Regulations so as to Office of the Regional Counsel, Federal presented during such conferences must alter the transition area at Portsmouth, Aviation Administration, 2300 East also be submitted in writing in accord­ Ohio. Devon Avenue, Des Plaines, IL 60018. ance with this notice in order to become Interested persons may participate in A review of the controlled airspace part of the record for consideration. The the proposed rule making by submitting designated to protect the approach pro­ proposals contained in this notice may such written data, views or arguments cedures into Montgomery County Airport be changed in the light of comments as they may desire. Communications indicates a requirement for a slightly received. should be submitted in triplicate to the increased transition area. Accordingly, A public docket will be available for Director, Great Lakes Region, Attention: it is necessary to alter the Dayton tran­ examination by interested persons in the Chief, Air Traffic Division, Federal Avia­ sition area to comply with this require­ Office of the Regional Counsel, Federal tion Administration, 2300 East Devon ment to adequately protect aircraft exe­ Aviation Administration, 2300 East Avenue, Des Plaines, IL 60018. All com­ cuting approach procedures into Mont­ Devon Avenue, Des Plaines, IL 60018. munications received on or before March gomery County Airport. Since designation of controlled air­ 15, 1973, will be considered before action In consideration of the foregoing, the space at Mankato, Minn., a new instru­ is taken on the proposed amendment. No Federal Aviation Administration pro­ ment approach procedure has been public hearing Is contemplated at this poses to amend Part 71 of the Federal developed for the Mankato Airport, time, but arrangements for informal Aviation Regulations as hereinafter set Mankato, Minn. Accordingly, it is neces­ conferences with Federal Aviation Ad­ forth: sary to alter the Mankato, Minn., control ministration officials may be made by In § 71.181 (38 FR 435), the following zone and transition area to adequately contacting the Regional Air Traffic Di­ transition area is amend to read: protect aircraft executing the new pro­ vision Chief. Any data, views or argu­ cedure. ments presented during such conferences Da y t o n , O h io (M o n tgom eey Co u n t y ) In consideration of the foregoing, the must also be submitted in writing in ac­ That airspace extending upward from 700 Federal Aviation Administration pro­ cordance with this notice in order to feet above the surface within a 6-mile radius poses to amend Part 71 of the Federal become part of the record for considera­ of the Montgomery County Airport (latitude Aviation Regulations as hereinafter set tion. The proposal contained in this no­ 39°35'21" N., longitude 84°13'21" W .), and tice-may be changed in the light of within 3 miles each side of the Montgomery forth: County VOR 145° radial extending from the In § 71.171 (38 FR 351), the following comments received. 6-mile radius area to 8.5 miles southeast of control zone is amended to read: A public docket will be available for the VOR; within 3 miles each side of the examination by interested persons in the 027° radial extending from the 6-mile radius M a n k a t o , M i n n . Office of the Regional Counsel, Federal area to 8.5 miles northeast excluding the Within a 5-mile-radius of Mankato Muni­ Aviation Administration, 2300 East portions which overlie the Middletown and cipal Airport (latitude 44e13'25" N„ longi­ Devon Avenue, Des Plaines, IL 60018. Dayton, Ohio, transition areas. tude 93°55'06'' W .); within 2 miles each side A review of the transition area desig­ of the Mankato VOR 166* radial, extending nated for Portsmouth, Ohio, indicates a This amendment is proposed under the from the 5-mile-radius zone to 8 miles south authority of section 307(a) of the Fed­ requirement to extend the width of the of the VOR; within 3 miles each side of the south extension and change the name of eral Aviation Act of 1958 (49 U.S.C. Mankato VOR 329° radial, extending from the airport in the citation. Accordingly» 1348), and of section 6(c) of the Depart­ the 5 -mile-radius zone to 8 miles northwest it is necessary to alter the Portsmouth, ment of Transportation Act [49 U.S.C. of the VOR. This control zone is effective 1655(c)!. during the specific dates and times estab­ Ohio, transition area to comply with tne lished in advance by a notice to airmen. The requirement. Issued in Des Plaines, HI., on Janu­ effective date and time will thereafter be In consideration of the foregoing, the ary 23,1973. continuously published in the Airmen’s In­ Federal Aviation Administration pro­ formation Manual. L y l e K . B r o w n , poses to amend Part 71 of the Federal Director, Great Lakes Region. In § 71.181 (37 FR 2143), tiie following Aviation Regulations as hereinafter s [FR Doc.73-2798 Filed 2-12-73;8:45 am] transition area is amended to read: forth:

FEDERAL REGISTER, VOL. 38, NO. 29-— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4351

In § 71.181 (38 PR 435), the following of the States which are referred to as § 30.41 Transfer o f byproduct material. transition area is amended to read: Agreement States. Licensees may trans­ (a) No licensee shall transfer byprod­ P o r t sm o u th , O h io fer radioactive material to persons in uct material except as authorized pursu­ Agreement States who are licensed or That airspace extending upward from 700 ant to this section. otherwise authorized by the States to (b) Except as otherwise provided in feet above the surface within an 8 mile radius receive it. of the Greater Portsmouth Regional Airport his license and subject to the provisions (latitude 38°50'26'' N., longitude 82°50'52'' In the proposed amendments which of paragraphs (c) and (d) of this sec­ W.); within 3 miles each side of a 177° follow, a new § 30.41 would be added and tion, any licensee may transfer byprod­ bearing from the airport extending from the §§ 40.51 and 70.42 would be revised to (1) uct material: 8 mile radius area to 12 miles south of the list the various types of transfers of by­ (1) To the Commission; airport. product, source, and special nuclear ma­ (2 ) To the Agency in any Agreement This amendment is proposed under the terials which are authorized, (2) require State which regulates radioactive mate­ authority of section 307(a) of the Fed­ transferors to verify that the transferees rials pursuant to an agreement with the eral Aviation Act of 1058 (49 U.S.CT are authorized to receive the type, form, Atomic Energy Commission under sec­ 1348) , and of section 6(c) of the Depart­ and quantity of material to be trans­ tion 274 of the Act; ment of Transportation Act (49 U.S.C. ferred, and (3) provide guidance on ac­ (3) To any person exempt from the 1655(c)). ceptable methods for such verification. licensing requirements of the Act and The methods listed in proposed regulations in this part to the extent Issued in Des Plaines, HI., on Janu­ §§ 30.41(d), 40.51(d), and 70.42(d) for ary 23,1973. permitted under such exemption; verification of appropriate authorization (4 ) To any person in an Agreement L y l e K . B r o w n , for transferees to receive material are, State, subject to the jurisdiction of that Director, with the exception of the use of infor­ Great Lakes Region. State, who has been exempted from the mation compiled by a reporting service licensing requirements and regulations [PR Doc.73-2797 Piled 2-12-73:8:45 am] from Commission or Agreement State of that State, to the extent permitted records, the methods which are fre­ under such exemption; ATOMIC ENERGY COMMISSION quently used already by many suppliers of radioactive materials. (5) To any person authorized to re­ [ 10 CFR Parts 3 0 ,4 0 ,7 0 ] ceive such byproduct material under Pursuant to the Atomic Energy Act of terms of a specific license or a general TRANSFER OF RADIOACTIVE MATERIAL 1954, as amended, and section 553 of license or their equivalents issued by the title 5 of the United States Code, notice Commission or an Agreement State; or Proposed Requirements is hereby given that adoption of the fol­ The Atomic Energy Commission has lowing amendments to 10 CFR Parts 30, (6) As otherwise authorized by the under consideration amendments to its 40, and 70 is contemplated. All interested Commission in writing. regulations in 10 CFR Parts 30, 40 and persons who desire to submit written (c) Before transferring byproduct 70 to specify requirements for the trans­ comments or suggestions for considera­ material to a specific licensee of the fer by licensees of byproduct material, tion in connection with the proposed Commission or an Agreement State or to source material and special nuclear amendments should send them to the a general licensee who is required to material. Secretary of the Commission, U.S. register with the Commission or with an Section 30.3 of 10 CFR Part 30 pro­ Atomic Energy Commission, Washing­ Agreement State, the licensee transfer­ vides, In pertinent part, that except for ton, D.C. 20545, Attention: Chief, Public ring the-material shall verify that the certain exemptions no person shall Proceedings Staff, by March 30, 1973. transferee’s license authorizes the re­ transfer or receive byproduct material Copies of comments on the proposed ceipt of the type, form, and quantity of except as authorized in a specific or gen­ amendments may be examined at the byproduct material to be transferred. eral license. Sections 40.3 of 10 CFR Part Commission’s Public Document Room at (d) The following methods for the 40 and 70.3 of 10 CFR Part 70 provide 1717 H Street NW„ Washington, DC. verification required by paragraph (c) essentially the same requirements for the PART 30— RULES OF GENERAL APPLICA­ of this section are acceptable: transfer and receipt of source material BILITY TO LICENSING OF BYPRODUCT (1) The transferor may have in his and special nuclear material, respec­ MATERIAL possession and read a current copy of the tively. Although it is the responsibility transferee’s specific license or registra­ of suppliers of radioactive materials li­ 1. Paragraph (c) of § 30.34 of 10 CFR tion certificate; censed by the Commission to determine Part 30 is amended by adding a period in the second sentence after the words (2 ) The transferor may have in his that a transferee is authorized to receive possession a written certification by the the type, form, and quantity of material “ and import byproduct material” and by deleting the balance of the sentence. . transferee that he is authorized by being transferred, the Commission’s reg­ license or registration certificate to re­ ulations do not presently contain specific The paragraph, as revised, will read as follows: ceive the type, form, and quantity of provisions as to how suppliers shall make byproduct material to be transferred, this determination. § 30.34 Terms and conditions o f licenses. specifying the license or registration cer­ In its licensee inspection and enforce­ ***** tificate number, issuing agency and ex­ ment program, the Commission has (c) Each person licensed by the Com­piration date; found that licensees have possessed (3) For emergency shipments the types, forms, or quantities of byproduct mission pursuant to the regulations in this part and Parts 31-36 shall confine transferor may accept oral certification material which were not authorized by by the transferee that he is authorized their licenses and, in other cases, that his possession and use of the byproduct material to the locations and purposes by license or registration certificate to unlicensed persons have received radio­ receive the type, form, and quantity of active material from AEC licensed sup- authorized in the license. Except as otherwise provided in the license, a byproduct material to be transferred, ^ *s P^POsed, therefore, to es­ specifying the license or registration tablish a specific requirement that license issued pursuant to the regula­ tions in this part and Parts 31-36 of this certificate number, issuing agency and licensees must verify that transferees expiration date: Provided, That the oral authorized to receive the type, form, chapter shall carry with it the right to receive, acquire, own, possess, and import certification is confirmed in writing and quantity of material being trans- within 10 days; erred and to provide guidance in the byproduct material. Preparation for ship­ ment and transport of byproduct mate­ (4 ) The transferor may obtain other ns licensees concerning ac­ sources of information compiled by a eptable methods of such verification. rial shall be in accordance with the pro­ visions of Part 71 of this chapter. reporting service from official records of fvf"«)6 ^as> Pursuant to section 274 ***** the Commission or the licensing agency Atomic Energy Act, as amended, of an Agreement State as to the identity «ansferred certain of its regulatory au- 2. A new § 30.41 is added to 10 CFR of licensees and the scope and expiration nonty over radioactive material to 24 Part 30 to read as follows: dates of licenses and registrations; or

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4352 PROPOSED RULEN MAKING

(5) When none of the methods of ver­eral licensee who is required to register 6. Section 70.42 of 10 CFR Part 70 is ification described in subparagraphs (1) with the Commission or with an Agree­ amended to read as follows: to (4) of this paragraph are readily ment State, the licensee transferring the § 70.42 Transfer o f special nuclear available or when a transferor desires material shall verify that the transferee’s material. to verify that information received by license authorizes receipt of the type, one of such methods is correct or up-to- form, and quantity of source material to (a) No licensee shall transfer special date, the transferor may obtain and be transferred. nuclear material except as authorized record confirmation from the Commis­ (d) The following methods for thepursuant to this section. sion or the licensing agency of an Agree­ verification required by paragraph (c) (b) Except as otherwise provided in ment State that the transferree is of this section are acceptable: his license and subject to the provisions licensed to receive the byproduct ma­ (1) Thè transferor may have in his of paragraphs (c) and (d) of this sec­ terial. possession and read a current copy of tion, any licensee may transfer special the transferee’s specific license or reg­ nuclear material: (1) To the Commission; PART 40— LICENSING OF SOURCE istration certificate; MATERIAL (2) The transferor may have in his (2) To the Agency in any Agreement possession a written certification by the State which regulates radioactive ma­ 3. Paragraph (c) of § 40.41 of 10 CFRtransferee that he is authorized by li­ terials pursuant to an agreement with Part 40 is amended by adding a period in cense or registration certificate to re­ the Atomic Energy Commission under the second sentence after the words “and ceive the type, form, and quantity of section 274 of the Atomic Energy Act, import source material” and by deleting source material to be transferred, speci­ if the quantity transferred is not suf­ the balance of the sentence. The para­ fying the license or registration certifi­ ficient to form a critical mass; graph, as revised, will read as follows: cate number, issuing agency, and expira­ (3) To any person authorized to re­ § 40.41 Terms and conditions o f licenses. tion date; ceive such special nuclear material under terms of a specific license or a general * * 41 * * (3) For emergency shipments the transferor may accept oral certification license or their equivalents issued by the (c) Each person licensed by the Com­by the transferee'that he is authorized Commission or an Agreement State; or mission pursuant to the regulations in by license or registration certificate to (4) As otherwise authorized by the this part shall confine his possession and receive the type, form, and quantity of Commission in writing. use of source material to the locations source material to be transferred, speci­ (c) Before transferring special nu­ and purposes authorized in the license. fying the license or registration certifi­ clear material to a specific licensee of the Except as otherwise provided in the cate number, issuing agency, and expira­ Commission or an Agreement State or to license, a license issued pursuant to the tion date: Provided, That the oral cert­ a general licensee who is required to regulations: in this part shall carry with ification is confirmed in writing within register with the Commission or with an it the right to receive, possess, use and 10 days; Agreement State, the licensee transfer­ import source material. Preparation for (4) The transferor may obtain other ring the material shall verify that the shipment and transport of source ma­ sources of information compiled by a transferee’s license authorizes receipt of terial shall be in accordance with the reporting service from official records of the type, form, and quantity of special provisions of Part 71 of this chapter. the Commission or the licensing agency nuclear material to be transferred. * * * * 4 of an Agreement State as to the identity (d) The following methods for the Section 40.51 of 10 CFR Part 40 is of licensees and the scope and expiration verification required by paragraph (c) amended to read as follows: dates of licenses and registrations; or of this section are acceptable: ~(1) The transferor may have in his § 40.51 Transfer o f source material. (5) When none of the methods of veri­ fication described in subparagraphs (1) possession and read a current copy of the (a) No licensee shall transfer source to (4) of this paragraph are readily transferee’s specific license or registra­ material except as authorized pursuant available or when a transferor desires to tion certificate; to this section. cerify that information received by one (2) The transferor may have in his (b) Except as otherwise provided in of such methods is correct or up-to-date, possession a written certification by the his license and subject to the provisions the transferor may obtain and record transferee that he is authorized by li­ of paragraphs (c) and (d) of this section, confirmation from the Commission or the cense or registration certificate to re­ any licensee may transfer source ma­ licensing agency of an Agreement State ceive the type, form, and quantity of terial: that the transferee is licensed to receive special nuclear material to be trans­ (1) To the Commission; the source material. ferred, specifying the license or registra­ (2) To the Agency in any Agreement tion certificate number, issuing agency State which regulates radioactive ma­ PART 70— SPECIAL NUCLEAR MATERIAL and expiration date; terials pursuant to an agreement with (3) For emergency shipments the the Atomic Energy Commission under 5. Paragraph? (a) of "§ 70.41 of 10 CFR transferor may accept oral certification section 274 of the Atomic Energy Act; Part 70 is amended by changing the by the transferee that he is authorized (3) To any person exempt from the words “possess, use and transfer” in the by license or registration certificate to licensing requirements of the Act and second sentence to “possess and use” . receive the type, form, and quantity of regulations in this part to the extent The paragraph, as revised, will read as special nuclear material to be transfer­ permitted under such exemption; follows: red, specifying the license or registration (4) To any person in an Agreement § 70.41 Authorized use o f special nuclear certificate number, issuing agency and State subject to the jurisdiction of that material. expiration date: Provided, That the oral certification is confirmed in writing State who has been exempted from the (a) Each licensee shall confine his licensing requirements and regulations of possession and use of special nuclear within 10 days; that State, to the extent permitted un­ material to the locations and purposes (4) The transferor may obtain other der such exemption; authorized in his license. Except as sources of information compiled by a re­ (5) To any person authorized to re­ otherwise provided in the license, each porting service from official records of ceive such source material under terms license issued pursuant to the regulations the Commission or the licensing agency of a specific license or a general license in this part shall carry with it the right of an Agreement State as to the identity or their equivalents issued by the Com­ to receive title to, own, acquire receive, of licensees and the scope and expiration mission or an Agreement State; or possess and use special nuclear material. dates of licenses and registrations; or (6) As otherwise authorized by the Preparation for shipment and transport (5) When none of the methods of veri­ Commission in writing. of special nuclear material shall be in ac­ fication described in subparagraphs U- (c) Before transferring source mate­ cordance with tiie provisions of Part 71 to (4) of this paragraph are readily avail­ rial to a specific licensee of the Commis­ of this chapter. able or when a transferor desires to ver­ ify that information received by one oi sion or an Agreement State or to a gen­ *****

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 PROPOSED RULE MAKING 4353

such methods is correct or up-to-date, is extended to March 25, 1973, and SECURITIES AND EXCHANGE the transferor may obtain and record April 10, 1973, respectively. COMMISSION confirmation from the Commission or the Adopted and released: February 7, licensing agency of an Agreement State 1973. [1 7 CFR, Parts 230, 2 4 0 ] that the transferee is licensed to receive F ederal C ommunications the special nuclear material. [File No. 4-149; Release Nos. 33-5361, C o m m i s s i o n , 34-9973] (Sec. 161, 68 Stat. 948; 42 U.S.C. 2201) [ s e a l ] f I r v in g B r o w n s t e in , Acting Chief, Safety and EXEMPTION OF CERTAIN VARIABLE LIFE Dated at Germantown, Md., this 5th Special Radio Services Bureau. day of February 1973. INSURANCE CONTRACTS AND THEIR [FR Doc.73-2833 Filed 2-12-73;8:45 am] ISSUERS FROM FEDERAL SECURITIES For the Atomic Energy Commission. LAWS P au l C . B ender, [4 7 CFR Part 7 3 ] Secretary of the Commission. Withdrawals of Proposed Rules [Docket No. 19622; FCC 73-136] [FR Doc.73-2785 Filed 2-12-73;8:45 am] The Securities and Exchange Commis­ PRIME TIME ACCESS RULE sion this day has published a release FEDERAL COMMUNICATIONS Order Extending Time for Reply Comments on the Petition for Issuance and Amend­ COMMISSION In the matter of consideration of the ment of Rules and Rulemaking Proceed­ operation of, and possible changes in, ing Therefor filed by the American Life [4 7 CFR Parts 2, 8 9 ] th e‘‘prime time access rule”, § 73.658(k) Convention and the Life Insurance As­ [Docket No. 19643] of '¿he Commission’s rules, Docket No.: sociation of America.1 That release indi­ 19622, RM-1967, RM-1935, RM-1940, MEDICAL PAGING SYSTEMS IN RM-1929, Petitions of National Broad­ cated the Commission’s findings as to HOSPITALS casting Company, Inc., Midland Televi­ the status of variable life insurance con­ Order Extending Tim e for Filing Comments sion Corp., Kingstip Communications, tracts, related interests and participa­ Inc., MCA, Inc. tions therein, and the issuers thereof and In the matter of amendment to Parts 1. Comments in the above-entitled pro­ their related persons under the Federal 2 and 89 to allocate 157.450 MHz to the ceeding were due and were filed on Jan­ special emergency radio service for med­ uary 15, 1973. Reply comments are pres­ securities laws. That release also an­ ical paging systems in hospitals, Docket ently due February 12, 1973. The nounced the adoption of Rule 3c-4 [17 No. 19643, RM-1884. Commission has received a “Motion for CFR 270.3C-4] under the Investment 1. The American Hospital Association Extension of Time” filed by Metromedia, Company Act of 1940 (15 U.S.C. 80a-l (AHA) has requested a 90-day exten­ Inc., one of the parties filing initial com­ et seq.) and Rule 202-1 [17 CFR sion of the period for filing comments in ments herein, asking that the time for response to the notice of proposed rule reply comments be extended 2 weeks, or 275.202-1] under the Investment Advis­ making released November 29, 1972, in to and including Monday, February 26, ers Act of 1940 (15 U.S.C. 80b-l et seq.). the above-entitled matter. The present 1973. In support of its request, Metro­ As indicated in that release, the Commis­ comment and reply comment periods ex­ media notes that the volume of initial sion has determined not to adopt pro­ pire February 8, 1973, and February 23, comments is rather large, and that they posed Rule 157 [§ 230.157] under the 1973, respectively. contain a good deal of research data which must be analyzed, as well as con­ Securities Act of 1933 (15 U.S.C. 70a et 2. To support its request, the AHA seq.) and proposed Rules 3al2-4 and notes that to prepare meaningful com­ tentions or parties, on both sides of the ments in this proceeding, “a special ad­ basic questions involved, which also re­ 15cl-4 [§§ 240.3al2-4, 240.15cl-4] under visory committee composed of members quire analysis. It is stated that additional the Securities Exchange Act of 1934 (15 directly concerned with communications time would be helpful to the Commission, U.S.C. 78a et seq.) for the reasons stated problems in hospitals and the health since parties could better focus on the therein. issues which must be decided. care industry, with representatives from Accordingly, proposed Rule 157 all sections of the Upited States,” has 2. Metromedia is correct in its ob­ been organized and requires an addi­ servations as to the nature of the initial (§ 230.157) under the Securities Act of tional period for coordination and pres­ comments as a whole; and it appears 1933 (15 U.S.C. 70a et seq.) and proposed entation of its views. that adequate opportunity for the prep­ Rules 3al2-4 (§ 240.3al2-4) and 15cl-4 3. The notice requests a number of aration of reply comments might well be (§ 240.15cl-4) under the Securities Ex­ specific comments related to hospital helpful to the Commission in getting more information concerning, and reach­ change Act (15 U.S.C. 78a et seq.) are radiocommunication requirements, and hereby withdrawn.2 it appears that an additional period for ing a sound resolution of, the important comments from representative organiza­ matters involved in this proceeding. Ac­ By the Commission. tions is justified. However, an extension cordingly, we grant the extension as re­ of 90 days, in addition to the 70 days al­ quested. [ s e a l ] R o n a l d F . H u n t , ready provided for comments, is exces­ 3. In view of the foregoing: It is - Secretary. ordered, That the time for filing reply sive and unreasonably delays the admin­ J a n u a r y 31, 1973. __ istrative rulemaking process. It appears comments in this proceding is extended, that an additional 45-day period is ade­ to and including February 26, 1973. [FR Doc.73-2811 Filed 2-12-73;8:45 am] quate, and the request is granted to this Adopted: January 31, 1973. extent. Released: February 6, 1973. 4. Accordingly, it is ordered, Pursuant 1 Securities Act Release No. 5360, Securities Exchange Act Release No. 9972, Investment a *Se* on 4(i) of the Communications F ederal C ommunications aV °5 1934, as amended, and § 0.331(b) C o m m i s s i o n , Company Act Release No. 7644, Investment °J the Commission’s rules, that the [ s e a l ] B e n F . W a p l e , Advisors Act Release No. 359 [38 FR 4317] “me for filing comments and reply com- Secretary. 9 Proposed §§230.157, 240.3al2-4 and ents in the above-entitled proceeding [FR Doc.73-2832 Filed 2-12-73;8:45 am] 240.15cl-4 appeared in 37 FR 5511.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4354 Notices

This section of the FEDERAL REGISTER contains documents other than rules or proposed rules, that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section.

DEPARTMENT OF THE TREASURY essary and appropriate for the purposes oral statement should inform the Ad­ of the Omnibus Crime Control and Safe visory Board chairman prior to the Office of the Secretary Streets Act of 1968, Public Law 90-351, meeting of the Board. Any interested [Administrative Ruling 73-1] as amended by Public Law 91-644, and person may file a written statement with the Administration establishes this com­ the Board for its consideration. The Ad­ REVENUE SHARING ENTITLEMENT FUNDS mittee in accordance with the provisions visory Board Cochairmen are Dr. Ger­ of the Federal Advisory Committee hard N. Rostvold, Post Office Box 312, Limits on Use to Retire Indebtedness of Standards Act, Public Law 92-463, and Claremont, CA 91711, and J. R. Penny, Units of Local Government LEAA Notice N 1300.2. California State Director, Bureau of Advice has been requested by units of 1. Designation: Private Security Ad­ Land Management. Written statements local government whether revenue shar­ visory Council. should be submitted to the Board c/o ing entitlement funds may be used for 2.. Purposes: To advise LEAA on the State Director (912), Bureau of Land repayment of debt,, such as a bond issue development of effective programs and Management, 2800 Cottage Way, Room and, if so, the manner in which the policies relating to private protection E-2841, Sacramento, CA 95825. services and improving cooperation be­ provisions of the State and Local Fiscal E . J. P etersen, Assistance Act of 1972 (Public Law 92- tween public law enforcement agencies Acting State Director. 512) and regulations issued pursuant and private security services and to make thereto (31 CFR Part 51) would apply recommendation for State and local gov­ [FRDoc.73-2824 Filed 2-12-73:8:45 am] to such transaction. ernment in the implementation of private security laws. It is the determination of the Depart­ Office of Hearings and Appeals ment of the Treasury that repayment of 3. Establishment date and termination debt qualifies as a proper expenditure of date: The Council is established effective [Docket No; M 73-19] revenue sharing funds provided that the 30 days after publication of this notice CANNELTON INDUSTRIES, INC. following guidelines as set forth in the and will terminate within 2 years. Report of the Committee on Ways and 4. Meetings: Quarterly or more fre­ Petition for Modification of Safely Means, House of Representatives Report quently as required. Standard No. 92-1018 (Part 1), dated April 26, 5. Membership: The membership shall Notice is hereby given that, pursuant 1972, are complied with: include LEAA employees, officers and em­ to section 301(c) of the Federal Coal 1. Revenue sharing entitlement funds ployees of public law enforcement agen­ Mine Health and Safety Act of 1969, are not used to pay any interest in­ cies and officers of organizations repre­ Cannelton Industries, Inc., Cannelton, curred because of the debt. senting law enforcement personnel, offi­ W. Va: 25036, has filed a petition to 2. The debt was originally incurred cers and employees of private security modify the application of the safety for a “priority expenditure” purpose by businesses, manufacturers engaged in standard set out in section 314(f) of a unit of local government as defined private security activities and users of the Act to its Pocahontas No. 3 and Poca­ under section 103 of the Act. private security services and equipment. hontas No. 4 mines. 3. The actual expenditure from the 6. The Council will operate pursuant Said section 314(f) states: proceeds of the indebtedness (i.e. for ma­ to the provisions of the Federal Ad­ All haulage equipment acquired by an terials, contractors, etc.) was made on visory Committee Standards Act, Public operator of a coal mine on or after 1 year or after January 1, 1972 (the beginning Law 92-463, LEAA Notice N 1300.2, OMB after the operative date of this title shall of the initial entitlement period). Circular No. A-63 and any additional or­ be equipped with automatic couplers which 4. The actual expenditures from pro­ ders and directives issued in implemen­ couple by impact and uncouple without the ceeds of the indebtedness were not ex­ tation of the Act. necessity of persons going between the ends of such equipment. All haulage equipment J erris L eonard, pended in violation of any restrictions without automatic couplers in use in a enumerated in Subpart D of 31 CFR Administrator. mine on the operative date of this title shaU Part 51. [FR Doc.73-2757 Filed 2-12-73;8:45 am] also be equipped within 4 years after the This determination shall be applicable operative date of this title. to all debt retirement transactions of DEPARTMENT OF THE INTERIOR Petitioner states that the system of units of local government effected with coupling described in its petition, under revenue sharing entitlement funds after Bureau of Land Management which mine cars cannot be coupled while February 15,1973. CALIFORNIA STATE ADVISORY BOARD in motion, guarantees to miners the same [se a l] G raham W att, measure of protection as would auto­ Notice of Meeting Director, matic couplers. F ebruary 5,1973. Office of Revenue Sharing. Parties interested in this petition shall Notice is hereby given that the Cali­ file their answer or comments and their F ebruary 9,1973. fornia State Advisory Board to the Bu­ request for a hearing, if they wish one, [FR Doc.73-2904 Filed 2-9-73; 11:44 am] reau of Land Management will hold its on or before March 15, 1973, with the annual meeting March 6-7, 1973, at the Office of Hearings and Appeals, Hearings Division, U.S. Department of the In­ DEPARTMENT OF JUSTICE Rodeway Inn, 3425 Orange Grove Ave­ nue, North Highlands, CA. The agenda terior, Ballston Tower No. 3,4015 Wilson Law Enforcement Assistance for the meeting will include considera­ Boulevard, Arlington, VA 22203. Copies Administration tion of cooperative planning and man­ of the petition are available for inspec­ PRIVATE SECURITY ADVISORY COUNCIL agement of off-road vehicle use, progress on the King Range National Conserva­ tion at that'address. Establishment tion Area, and draft regulations on wild J am es M. D a y , The Law Enforcement Assistance Ad­ free-roaming horses and burros. Director, Office of ministration hereby determines that the The meeting will be open to the public. Hearings and Appeals. establishment of the Private Security There will be time available for a limited F ebruary 5, 1973. Advisory Council, as identified herein­ number of brief statements by members after, is in the public interest and nec­ of the public. Anyone wishing to make an [FR Doc.73-2770 Filed 2-12-73;8:45 am]

FEDERAL REGISTER, VOL. 38. NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4355

[Docket No. M 73-20] " East Mesa area of Imperial Valley to Office of the Regional Director, Bureau of Reclamation, Building 20, Denver Federal PLATEAU MINING CO. more fully evaluate the geothermal po­ tential of Federal lands within the valley. Center, Denver, Colo. 80225, telephone (303) 234-3779. Petition for Modification of Mandatory Copies are available for inspection at Safety Standard Single copies of the final environmental the following locations: statement may be obtained on request to Notice is hereby given that in accord­ Office of Ecology, Boom 7620, Bureau of Rec­ the Commissioner of Reclamation or the ance with the provisions of section 301(c) lamation, Department of the Interior, regional director. In addition, copies may of the Federal Coal Mine Health and Washington, D.O. 20240, telephone 202—• be purchased from the National Tech­ Safety Act of 1969, 30 U.S.C. § 861(c) 343-4991. nical Information Service, Department (1970), the Plateau Mining Co. has filed Division of Engineering Support, Technical of Commerce, Springfield, Va. 22151. a petition to modify the application of Services Branch, E&R Center, Denver Fed­ Please refer to the statement number 30 CFR 77.1605(k) to its Star Point Nos. eral Center, Denver, Colo. 80225, telephone above. 1 and 2 Mines. 303-234-3007. Dated: February 7,1973. 30 CFR 77.1605(k) reads as follows: Office of the Regional Director, Bureau of “(k) Berms or guards shall be provided Reclamation, Post Office Box 427, Nevada W . W . L y o n s , on the outer bank of elevated roadways.” Highway and Park Street, Boulder City, Deputy Assistant Secretary Petitioner asks that the standard be NV 89005, telephone 702— 293-8560. of the Interior. modified because the mines and related Southern California Planning Office, Bureau [FR Doc.73-2773 Filed 2-12-73;8:45 am] facilities concerned are at an elevation of Reclamation, Post Office Box 1303, 528 of 7,650 feet to 8,550 feet, and large Mountain View Avenue, San Bernardino, amounts of snow fall at this elevation CA 92402, telephone 714r—88^3111, ext. National Park Service 441. during the winter months. Petitioner [FES 7 3 -7 ] states that the road servicing the min­ Single copies of the supplement to the ing area is approximately 7,000 feet in PROPOSED WILDERNESS CLASSIFICATION final environmental statement may be FOR HALEAKALA NATIONAL PARK, HAWAII length, 65 percent of which is black- obtained on request to the Commissioner topped, the upper portion being dirt and of Reclamation or the Regional Director. Aailability of Final Environmental gravel. Snow removal is accomplished by In addition, copies may be purchased Statement applying a coal dust-salt mixture to fa­ cilitate melting and by pushing snow off from the National Technical Information Pursuant to section 102(2) (C) of the the road. Installation of a berm would Service, Department of Commerce, National Environmental Policy Act, the make it impossible to push snow off the Springfield, Va. 22151. Please refer to the Department of the Interior has prepared road and necessitate closing the road statement number above. a final environmental statement for Pro­ posed Wilderness Classification for Hale- during the winter months. Also, during Dated: February 6, 1973. the spring months with periods of alter­ akala National Park, Hawaii. native freezing and thawing, the berm W i l l ia m W . L y o n s , The final environmental statement would trap the runoff and force water Deputy Assistant Secretary considers the designation of 19,270 down the roadway creating impossible of the Interior. acres of Haleakala National Park as wilderness. conditions for travel. Petitioner contends [FR Doc.73-2772 Filed 2-12-73;8:45 am] that a berm would thus create a safety Copies are available from or for in­ hazard. spection at the following locations: Persons interested in this petition may [INT-FES 73-6] Western Regional Office, National Park Serv­ request a hearing on the petition or fur­ ice, 450 Golden Gate Avenue, Post Office nish comments on or before March 15, PROPOSED LONG DRAW RESERVOIR Box 36063, San Francisco, CA 94102. ENLARGEMENT PROJECT, COLORADO Haleakala National Park, Post Office Box 456, 1973. Such request or comments must Kahulul, Maui, HI 96732. be filed with the Office of Hearings and Availability of Final Environmental Hawaii Group, National Park Service, Pacific Appeals, Hearings Division, U.S. Depart­ Statement International Building, 677 Ala Moana ment of the Interior, 6432 Federal Build­ Boulevard, Suite 512, Honolulu, HI 06813. An application under the Small Recla­ ing, Salt Lake City, Utah 84111. Copies Dated February 7,1973. of the petition are available for inspec­ mation Projects Act for the Water Sup­ tion at that address. ply and Storage Co. Pursuant to section W. W. L y o n s , 102(2) (C) of the National Environmental Deputy Assistant Secretary J a m e s M . D a y , Policy Act of 1969, the Department of the of the Interior. Director, Interior has prepared a final environ­ Office of Hearings and Appeals. mental statement for the Long Draw [FR Doc.73-2774 Filed 2-12-73;8:45 am] F ebruary 5, 1973. Reservoir Enlargement Project, Colorado. IFR Doc.73-2769 Filed 2-12-73;8:45 am] The environmental statement concerns [DES 7 3 -4 ] the enlargement of an existing Company PROPOSED WILDERNESS DESIGNATION reservoir and lining portions of the Grand FOR LANDS WITHIN CRATER LAKE NA­ Office of the Secretary River Ditch to reduce seepage losses TIONAL PARK, OREG. [INT— FES 73-5] above the reservoir. The Company in­ tends to provide supplemental irrigation Availability of Draft Environmental PROPOSED DEEP GEOTHERMAL TEST water to 37,425 acres owned by farmers Statement WELL— GEOTHERMAL RESOURCE IN­ living north and east of the city of Fort Pursuant to section 102(2) (c) of the VESTIGATIONS, IMPERIAL VALLEY, Collins in Larimer County, Colo. The National Environmental Policy Act, the CALIF. Company applied for a loan and grant Department of the Interior has prepared Availability of Supplement to the Final under the Small Reclamation Projects a draft environmental statement for the Environmental Statement Act and plans to begin construction in proposed wilderness designation for lands the summer of 1973. within Crater Lake National Park, Oreg., Pursuant to section 102(2(0 of the Copies are available for inspection at and invites written comment on or before Environmental Policy Act of the following locations: March 30,1973. Written comment should 969, the Department of the Interior has be addressed to the Director, Pacific prepared a supplement to the final en- Office of Ecology, Room 7620, Bureau of Rec­ Northwest Region or the Superintendent, ronmental statement for the proposed lamation, Department of the Interior, Washington, D.O. 20240, telephone (202) Crater Lake National Park at the ^eep Geothermal Test Well—Geother- addresses given below. vfii Resource Investigations, Imperial 343-4991. Valley, Calif. Division of Engineering Support, Technical The draft environmental statement Services Branch, E&R Center, Denver Fed­ considers the designation of 115,900 acres tv>T!le f??v^romnenl'al statement concerns eral Center, Denver, Colo. 80225, telephone of Crater Lake National Park as wilder­ drilling of additional test wells in the (303) 234-3007. ness.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 No. 29— 7 4356 NOTICES

Copies are available from or for in­ paragraph 1 of CCC Blanket Insurance DEPARTMENT OF HEALTH, spection at the following locations: Policy No. 34176 executed by Commodity EDUCATION, AND WELFARE Credit Corporation with Appalachian Office of the Director, Pacific Northwest Re­ Food and Drug Administration gional Office, National Park Service, 523 Insurance Co., Providence, R.I., effec­ Fourth and Pike Building, Seattle, Wash. tive December 1, 1972, any information [DE^I ’5564] 98101. on which a warehouseman’s liability may be based for a failure of the ware­ CERTAIN DERMATOLOGIC LIQUID PRE­ Office of the Superintendent, Crater Lake houseman to perform any of his obliga­ PARATION; COPPER UNDECYLENATE, National Park, Post Office Box 7, Crater UNDECYLENIC ACID AND DIOCTYL Lake, OR 97604. tions under the Bean Storage Agreement (Form CCC-28), Uniform Grain Storage SODIUM SULFOSUCCINATE Dated: February 7,1973. Agreement (Form CCC-25) and Uniform Followup to Drug Efficacy Study Rice Storage Agreement (Form CCC-26) W. W. L y o n s , In a notice (DESI 5564) published in Deputy Assistant Secretary and all modifications of such agreements the F ederal R egister of September 17, of the Interior. or to perform any other of his obligations as a warehouseman in connection with 1971 (36 FR 18599) the Commissioner [FR Doc.73-2771 Filed 2-12-73;8:45 am] commodities stored or handled under of Food and Drugs announced his con­ such agreements: clusions pursuant to a report received DEPARTMENT OF AGRICULTURE from the National Academy of Sciences- Director. National Research Council, Drug Efficacy Commodity Credit Corporation Deputy Director, Program. Deputy Director, Management. Study Group, on the combination pre­ CONTROLLER, ET AL. Chief, Bulk Grain Division. scription drug described below stating Delegation of Authority Regarding Blanket Assistant Chief, Bulk Grain Division. that the drug is regarded as possibly ef­ Insurance Policy - Chief, Bulk Grain Storage Contract Division. fective and lacking substantial evidence Assistant Chief, Bulk Grain Storage Contract of effectiveness for the labeled indica­ The following officers of Commodity Division. tions. The possibly effective indications Credit Corporation are designated to act Chief, Rice and Dry Beans Division. have been reclassified as lacking sub­ for me for the purpose of receiving, in Chief, Fiscal Settlement Division. stantial evidence of effectiveness in that accordance with the requirements of Chief, Claims Establishment and Collections Branch, Fiscal Settlement Division. no new evidence of effectiveness of the paragraph 1 of CCC Blanket Insurance drug has been submitted pursuant to Policy No. 34176 executed by Commodity (Section 4, 62 Stat. 1070, as amended,-45 the notice. Credit Corporation with the Appalachian U.S.C. 714b) NDA 6-114; Decupryl liquid contain­ Insurance Co., Providence, R J., effective Effective date. This delegation of au­ ing 10 percent copper undecylenate, 5 December 1, 1972, any information on thority shall be effective on February 13, percent undecylenic acid, and dioctyl which a warehouseman’s liability may 1973. sodium sulfosuccinate; formerly mar­ be based for a failure of the warehouse­ keted by Cooper Laboratories, Inc. (suc­ man to perform any of his obligations Signed at Washington, D.C., on Febru­ ary 5,1973. * cessor to Tilden-Yates Laboratories, under the Bean Storage Agreement Inc.), 2900 North 17th Street, Phila­ (Form CCC-28), Uniform Grain Storage E. J. P er so n , delphia, Pa. 19132. Agreement (Form CCC-25) and Uni­ Acting Executive Vice President, A notice was published in the F ederal form Rice Storage Agreement (Form Commodity Credit Corporation. R egister of February 8, 1972 (37 FR CCC-26) and all modifications of such [FR Doc.73-2803 Filed 2-12-73;8:45 am] agreements or to perform any other of 2852), withdrawing approval of NDA his obligations as a warehouseman in 6-114, including all amendments and connection with commodities stored or DIRECTOR, AND DEPUTY DIRECTOR, ASCS supplements thereto, on the grounds that handled under such agreements: COMMODITY OFFICE, KANSAS CITY, MO. reports required under section 505(j) of Controller. Delegation of Authority Regarding Blanket the Act (21 U.S.C. 355(j) ) and §§ 130.13 Treasurer. Insurance Policy and 130.35 (e) and (f) of the new drug Assistant Treasurer, who is the Chief, Kansas The following persons in the ASCS regulations (21 CFR 130.13 and 130.35) City Claims Field Office, Fiscal Division, Commodity Office, Kansas City, Mo., are ASCS. had not been submitted. At that time no designated (as Contracting Officers of Assistant Treasurer, who is Assistant Chief, final effectiveness classification of the K ansas City Claims Field Office, Fiscal D i­ Commodity Credit Corporation) to de­ vision, ASCS. cide, in accordance with paragraph 13 drug had yet been made. (Sec. 4, 62 Stat. 1070, as amended, 15 U.S.C. of CCC Blanket Insurance Policy No. Accordingly, this notice is published to 714b) 34176, issued by the Appalachian Insur­ inform any person interested in identical, Effective date. This delegation of au­ ance Co. of Providence, R.I., effective related, or similar products of the final thority shall be effective on February 13, December 1, 1972, any dispute concern­ effectiveness classification of this article. 1973. ing a question of fact with respect to a claim of Commodity Credit Corpora­ All identical, related, or similar prod­ Signed at Washington, D.C., on Feb­ tion under this policy which is not dis­ ucts, not the subject of an approved new ruary 5,1973. posed of by agreement: drug application, are covered by the new E. J. P er so n , Director, Kansas City ASCS Commodity drug application reviewed and are sub­ Acting Executive Vice President, Office. ject to this notice. See 21 CFR 130.40 Commodity Credit Corporation. Deputy Director, Programs, Kansas City ASCS (37 FR 23185, Oct. 31, 1972). Any person Com m odity Office. [FR Doc.73-2802 Filed 2-12-73; 8:45 am] who wishes to determine whether a spe­ (Section 4, 62 Stat. 1070, as amended, 15 cific product is covered by this notice US.C. 714b) should write to the Food and Drug Ad­ DIRECTOR, ASCS -COMMODITY OFFICE Effective date. This delegation of au­ ministration, Bureau of Drugs, Office of ET AL., KANSAS CITY, MO. thority shall be effective on February 13, Compliance (BD-300), 5600 Fishers Lane, 1973. Delegation of Authority Regarding Blanket Rockville, Md. 20852. Insurance Policy Signed at Washington, D.C., on Feb­ This notice is issued pursuant to pro­ Persons occupying the following posi­ ruary 5, 1973. E. J. P er so n , visions of the Federal Food, Drug, &n tions in the ASCS Commodity Office, Cosmetic Act (secs. 502, 505, 52 Sta . Kansas City, Mo., are designated to act Acting Executive Vice President, for me in the purpose of receiving, In Commodity Credit Corporation. 1050-53, as amended; 21 U.S.C. 352,355) accordance with the requirements of IFR D oc.73-2804 Filed 2 -1 2 -7 3 ;8 :4 5 am ] and the Administrative Procedure Act (5

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4357

U.S.C. 554), and under the authority On or before March 15, 1973, the ap­ interested in identical, related, or simi­ delegated to the Commissioner of Food plicant and any other interested person lar products covered by the NADA will and Drugs (21 CFR 2.120). is required to file with the Hearing Clerk, be afforded an opportunity to appear Dated: February 6, 1973. Food and Drug Administration, Room at the hearing, file briefs, present evi­ 6-88, 5600 Fishers Lane, Rockville, MD dence, cross-examine witnesses, submit W i l l ia m F . R a n d o l p h , , 20852, a written appearance electing suggested findings of fact, and other­ Acting Associate Commissioner whether or not to avail himself of the wise participate as a party. The hear­ for Compliance. opportunity for a hearing. Failure of an ing contemplated by this notice will be [PR Doc.73-2765 Filed 2-12-73;8:45 am] applicant or any other interested person open to the public except that any por­ to file a written appearance of election tion of the hearing that concerns a [Docket No. FDC-D-586; NADA by March 15 will constitute an election method or process the Commissioner No. 7—130V] by him not to avail himself of the oppor­ finds entitled to protection as a trade CURTS LABORATORIES, INC. tunity for a hearing. secret will not be open to the public, If no person elects to avail himself of unless the respondent specifies other­ Sulfadac; Opportunity for Hearing the opportunity for a hearing, the Com­ wise in his appearance. In an announcement published in the missioner without further notice will Requests for a hearing and/or elec­ Federal R e g is t e r of July 9, 1970 (35 enter a final order withdrawing approval tions not to request a hearing may be FR 11071, DESI 7055V), the Commis­ of the application. seen in the Office of the Hearing Clerk sioner of Food and Drugs announced the If an applicant or any other interested (address given above) during regular conclusions of the Food and Drug Ad­ person elects to avail himself of the op­ business hours, Monday through Friday. ministration following evaluation of a portunity for a hearing, he must file, on This notice is issued pursuant to pro­ report received from the National Acad­ or before March 15, 1973, a ■written ap­ visions of the Federal Food, Drug, and emy of Sciences—National Research pearance requesting the hearing, giving Cosmetic Act (sec. 512(e), 82 Stat. 343- Council, Drug Efficacy Study Group, on the reasons why approval of the NADA 351; 21 U.S.C. 360b(e)) and under au­ Sulfadac, new animal drug application should not be withdrawn, together with thority delegated to the Commissioner (NADA) No. 7-130V; marketed by Curts a well-organized and full-factual analy­ (21 CFR 2.120). Laboratories, Inc., 812 Woodswether sis of the data he is prepared to prove in Road, Kansas City, MO 64105. support of his opposition. A request for Dated: February 6, 1973. Said announcement invited the holder a hearing may not rest upon mere allega­ W il l i a m F . R a n d o l p h , of said new animal drug application and tions or denials, but must set forth spe­ Acting Associate Commissioner any other interested persons to submit cific facts showing that a genuine and for Compliance. pertinent data on the drugs effective­ substantial issue of fact requires a hear­ ness. No supplemental new animal drug ing (21 CFR 135.15(b)). [FR Doc.73-2766 Filed 2-12-73;8:45 am] application or other data have been sub­ mitted in response to said announce­ All identical, related, or similar products ment. not the subject of an approved new n.nima.1 [Docket No. FDC-D-584; NADA No. 7-736V] Therefore, notice is given to the holder drug appllcaton are covered by the NADA JENSEN-SALSBERY LABORATORIES of the NADA and to any other inter­ reviewed. Any manufacturer or distrbutor of such an identical, related, or similar prod­ Anthol (Antheline Plus Toluene); ested person that the Commissioner pro­ Opportunity for Hearing poses to issue an order under section uct is an interested person who may in re­ 512(e) of the Federal Food, Drug, and sponse to this notice submit data and in- In an announcement published in the Cosmetic Act (21 U.S.C. 360b (e)) with­ formtalon, request that the NADA not be F ederal R e g is t e r of February 1, 1969 drawing approval of NADA No. 7-130V withdrawn, request a hearing, and particpate (34 FR 1608), the Commissioner of Food and all amendments and supplements as a party in any hearing. Any person who and Drugs announced the conclusions of thereto on the grounds that new infor­ wishes to determine whether a specific prod­ the Food and Drug Administration fol­ mation before him with respect to the uct is covered by this notice should write to lowing evaluation of a report received drug evaluated together with the evi­ the Bureau of Veterinary Medicine, Division from the National Academy of Sciences— dence available to him at the time of iiii National Research Council, Drug Efficacy approval of the application, shows there Study Group, on Anthol, new animal If review of the data submitted by an drug application (NADA) No. 7-736V; is a lack of substantial evidence that applicant or any other interested per­ the drug will have all the effects pur­ marketed by Jensen-Salsbery Labora­ son warrants the conclusion that there tories, 520 West 21st Street, Kansas City, ported or represented to have under the exists substantial evidence demonstrat­ conditions of use prescribed, recom­ MO 64141. The announcement invited ing efficacy of the product for the label­ the holder of said NADA and any other mended, or suggested in the labeling. ing claims involved, the Commissioner All identical, related, or similar prod­ interested persons to submit revised la­ will rescind this notice of opportunity beling or adequate documentation in ucts not the subject of an approved new for a hearing. animal drug application are covered by support of the labeling used. the NADA reviewed. Any manufacturer If review of the data in the applica­ Jensen-Salsbery Laboratories re­ or distributor of such an identical, re­ tion and data submitted by the applicant sponded to the announcement by sub­ lated, or similar product is an interested or any other interested person in a re­ mitting draft labeling. By letters of Sep­ Person who may in response to this notice quest for a hearing, together with the tember 15,1969, and September 18,1972, submfi; data and information, request reasoning and factual analysis in a re­ the Food and Drug Administration re­ that the NADA not be withdrawn, re- quest for a hearing, warrants the con­ quested final printed labeling for the ^u®®t a hearing, and participate as a clusion that no genuine and substantial product, Anthol. Final printed labeling Party in any hearing. Any person who issue of fact precludes the withdrawal has not been submitted. wishes to determine whether a specific of approval of the application, the Com­ missioner will enter an order of with­ Therefore, notice is given to the holder product is covered by this notice should of the NADA and to any other interested write to the Bureau of Veterinary Medi- drawal making findings and conclusions on such data. person that the Commissioner proposes Division of 'Compliance, 5600 to issue an order under section 512(e) of Fishers Lane, Rockville, MD 20852. If upon the request of the new ani­ the Federal Food, Drug, and Cosmetic In accordance with the provisions of mal drug applicant or any other inter­ Act (21 UJS.C. 360b(e)) withdrawing ap­ section 512 of the act and the regula­ ested person, a hearing is justified, the proval of NADA No. 7-736V and all r s promulgated thereunder (21 CFR issues will be defined, an administrative amendments and supplements thereto on art 135), the Commissioner hereby gives law judge will be named, and he shall the grounds that new information be­ jne applicant and any other interested issue, as soon as practicable after the fore him with respect to the drug evalu­ ^ son opportunity for a hearing to expiration of such 30 days, a written ated together with the evidence avail­ snow why approval of the NADA should notice of the time and place at which the able to him at the time of approval of the Pot be withdrawn. hearing will commence. All persons application, shows there is a lack of sub-

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4358 NOTICES stantial evidence that the drug will have the Commissioner will enter an order of change Service, 3911 Walton Walker all the effects purported or represented withdrawal making findings and con­ Boulevard, Dallas, TX 75222. to have under the conditions of use pre­ clusions on such data. The agenda for the meeting will in­ scribed, recommended, or suggested in If, upon the request of the new animal clude discussions of exchange operations the labeling. drug applicant or any other interested in Southeast Asia, capital expenditure All identical, related, or similar prod­ person, a hearing is justified, the issues projects, exchange price adjustment ac­ ucts not the subject of an approved new will be defined, an administrative law.* tions, the new car sales program, and animal drug application are covered by judge will be named, and he shall issue, amendment of the Service Contract Act the NADA reviewed. Any manufacturer as soon as practicable after March 15, of 1965. or distributor of such an identical, re-, 1973, a written notice of the ,time and Any persons desiring information lated, or similar product is an interested place at which the hearing will com­ about the committee may telephone person who may in response to this mence. All persons interested in identi­ (202—697-3336) or write the Executive notice submit data and information, re­ cal, related, or similar products covered Secretary, Board of Directors, Army and quest that the NADA not be withdrawn, by the NADA will be afforded an oppor­ Air Force Exchange and Motion Picture request a hearing, and participate as a tunity to appear at the hearing, file Services, Room 5E483, the Pentagon, party in any hearing. Any person who briefs, present evidence, cross-examine Washington, D.C. 20310. witnesses, submit suggested findings of wishes to determine whether a specific C harles F. O’D o n n e l l , Jr., product is covered by this notice should fact, and otherwise participate as a Colonel, USA, write to the Bureau of Veterinary Medi­ party. The hearing contemplated by this Executive Secretary, AAFEMPS. cine, Division of Compliance, 5600 Fish­ notice will be open to the public except ers Lane, Rockville, MD 20852. that any portion of the hearing that con­ [FR Doc.73-2760 Filed 2-12-73;8:45 am] In accordance with the provisions of cerns a method or process the Commis­ section 512 of the Act and the regula­ sioner finds entitled to protection as a ATOMIC ENERGY COMMISSION tions promulgated thereunder (21 CFR trade secret will not be open to the pub­ [Docket Nos. 50-373; 50-374] Part 135), the Commissioner hereby lic, unless the respondent specifies other­ gives the applicant and any other inter­ wise in his appearance. COMMONWEALTH EDISON CO. ested person an opportunity for a hear­ Requests for a hearing and/or elec­ Assignment of Members of Atomic Safety ing to show why approval of the NADA tions not to request a hearing may be and Licensing Appeal Board should not be withdrawn. seen in the office of the hearing clerk (address given above) during regular Notice is hereby given that, in ac­ The applicant and any interested per­ cordance with the authority in 10 CFR son is required to file, on or before business hours, Monday through Friday. This notice is issued pursuant to pro­ § 2.787(a), the Chairman of the Atomic March 15, 1973, with the Hearing Clerk, Safety and Licensing Appeal Panel has Food and Drug Administration, Room visions of the Federal Food, Drug, and Cosmetic Act (sec. 512(e), 82 Stat. 343- assigned the following panel members 6-88, 5600 Fishers Lane, Rockville, MD to serve as the Atomic Safety and 20852, a written appearance electing 351; 21 U.S.C. 360b (e)) and under the authority delegated to the Commissioner Licensing Appeal Board for these pro­ whether or not to avail himself of the ceedings (LaSalle Units 1 and 2). opportunity for a hearing. Failure of an (21 CFR 2.120). applicant or any other interested per­ Dated: February 6,1973. Alan S. Rosenthal, Chairman. son to file a written appearance of elec­ Dr. John H. Buck, Member. William C. Parler, Member. tion by March 15 will constitute an W il l ia m F. R andolph , election by him not to avail himself of Acting Associate Commissioner Dated: February 7, 1973. the opportunity for a hearing. for Compliance. W il l ia m L. W oodard, If no person elects to avail himself of [FR Doc.73-2767 Filed 2-12-73;8:45 am] Executive Secretary, Atomic the opportunity for a hearing, the Com­ Safety and Licensing Appeal missioner without further notice will Panel. enter a final order withdrawing approval Health Services and Mental Health of the application. Administration [FR Doc.73-2807 Filed 2-12-73; 8:45 am] If an applicant or any other interested RESEARCH SCIENTIST DEVELOPMENT person elects to avail himself of the op­ REVIEW COMMITTEE [Docket No. PRM—20-4] portunity for a hearing, he must file, Cancellation of Meeting on or before March 15, 1973, a written DELTA AIRLINES, INC. appearance requesting the hearing, giv­ In FR Doc. 73-1690 appearing at page Notice of Filing of Petition for Rule Making 2783 of the F ederal R egister for Monday, ing the reasons why approval of the Notice is hereby given that Delta Air NADA should hot be withdrawn, together January 30, 1973, the meeting of the with a well-organized and full-factual “ Research Scientist Development Review Lines, Inc., Hartsfield Atlanta Interna­ analysis of the data he is prepared to Committee” has been canceled. tional Airport, Atlanta, Ga., by letter prove in support to his opposition. A Dated: February 6,1973. dated December 27, 1972, has filed with request for a hearing may not rest upon the Atomic Energy Comipission a petition mere allegations or denials, but must A ndrew J. C ardinal, for rule making. The petitioner requests Acting Associate Administrator set forth specific facts showing that a that the Commission amend its regula­ genuine and substantial issue of fact for Management, Health requires a hearing (21 CFR 135.15(b)). Services and Mental Health tions to require consignees of Type B If review of the data submitted by an Administration. packages of radioactive material ship­ applicant or any other interested person [FR Doc.73-2768 Filed 2-12-73; 8:45 am] ments by air transportation to effect warrants the conclusion that there exists prompt pickup from the carrier upon substantial evidence demonstrating effi­ ARMY AND AIR FORCE EXCHANGE notice of arrival at the destination air­ cacy of the product for the labeling AND MOTION PICTURE SERVICES port, and to monitor such shipments for claims involved, the Commissioner will external contamination without delay. rescind this notice of opportunity for a CIVILIAN ADVISORY COMMITTEE The petitioner notes that the Depart­ hearing. Notice of Meeting If review of the data in the applica­ ment of Transportation has issued a reg­ tion and the data submitted by the ap­ F ebruary 5, 1973. ulation requiring pretender leakage tes s plicant or any other interested person in The Civilian Advisory Committee to on Type B packages of radioactive mate­ a request for a hearing, together with a the Board of Directors, Army and Air rials in liquid form destined for air trans­ reasoning and factual analysis warrants Force Exchange and Motion Picture portation. The petitioner contends that the conclusion that no genuine and sub­ Services, will hold a closed meeting on it is unlikely that full compliance witn stantial issue of fact precludes the with­ February 21, 1973, in the Board Room, drawal of approval of the application, Headquarters, Army and Air Force Ex­ this regulation can be assured, and a

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4359 additional pickup and monitoring rules Advisory Committee on Plant and Nuclear ment is also being made available at the are needed to insure safety. Materials Security (Directorate of Regula­ Office of the Governor, 206 State House, The petitioner further contends that tory Standards/Division of Nuclear Mate­ Indianapolis, IN 46204, and at the Lake- rials Security). Porter County Regional Transportation the Department of Transportation dis­ Historical Advisory Committee (Office of the claims jurisdiction over consignees of air Secretary). and Planning Commission, 9290 Taft transportation of radioactive material Atomic Energy Labor-Management Advisory Place, Crown Point, IN 46307. shipments and, hence, it is only through Committee (Division of Labor Relations). The notice of availability of the Draft the Commission’s power that a govern­ Senior Utility Steering Committee (Division Environmental Statement for Bailly ment-prescribed requirement for early of Reactor Development and Technology). Generating Station Nuclear 1 facility, Senior UtUity Technical Advisory Committee and requests for comments from inter­ pickup and monitor can be effected upon (Division of Reactor Development and ested persons, was published in the F e d ­ consignees. Technology). er al R e g is t e r on July 20, 1972, 37 FR The petitioner indicates that it would Committee of Senior Reviewers (Division of be preferable and would better serve the Classification). 14428. The comments received from Fed­ public’s needs if requirements for prompt Light Water Reactor Safety Research Coordi­ eral, State, and local officials and inter­ pickup by the consignee of Type B pack­ nating Committee (Division of Reactor ested members of the public have been ages of radioactive material from the Development and Technology). included as appendices to the Final En­ carrier and prompt monitoring of such 2. The regulations governing the oper­vironmental Statement. shipments for external contamination ation of advisory committees are ap­ Single copies of the Final Statement were prescribed by Federal regulation proved by the Commission. may be obtained by writing the U.S. rather than by the carrier tariffs. The Atomic Energy Commission, Washington, petitioner states also that issuance of the Dated at Germantown, Md., this 5th D.C. 20545, Attention: Deputy Director requested rule would assist in achieving day of February 1973. for Reactor Projects, Directorate of Li­ uniformity throughout the industry at an censing. P a u l C. B e n d e r , earlier date than might be possible if this Secretary of the Commission. Dated at Bethesda, Md., this 6th day of particular matter continued to be dealt February 1973. with in individual company tariffs. [FR Doc.73-2758 Filed 2-12-73; 8:45 am] The petitioner also notes that the re­ For the Atomic Energy Commission. quested rule making action is in accord [Docket No. 50-322] G . W . K n i g h t o n , with recommendations of the National Chief, Environmental Projects Transportation Safety Board set out in LONG ISLAND LIGHTING CO. Branch 1, Directorate of Li­ “Special Study of the Carriage of Radio­ Reconstitution of Atomic Safety and censing. active Materials by Air,” adopted Licensing Appeal Board April 26,1972, and released June 28,1972. [FR Doc.73-2830 Filed 2-12-73;8:45 am] Noticg is hereby given that, in accord­ A copy of the petition for rule making ance with the authority in 10 CFR 2.787 CIVIL AERONAUTICS BOARD is available for public inspection in the (a), the Chairman of the Atomic Safety Commission’s Public Document Room, and Licensing Appeal Panel has recon­ [Docket No. 24977] 1717 H Street NW., Washington, DC stituted the Atomic Safety and Licens­ ALASKA AIRLINES, INC. AND WESTERN A copy of the petition may be obtained AIR LINES, INC. by writing the Rules and Proceedings ing Appeal Board for this proceeding Branch at the below address. (Shoreham Nuclear Power Station) to Notice of Prehearing Conference consist of the following members: All interested persons who desire to In re: States-Alaska and Intra-Alaska submit written comments or suggestions Alan S. Rosenthal, Chairman; Dr. John H. fare increases proposed by Alaska Air­ concerning the petition for rule making Buck, Member; Michael C. Farrar, Member. lines, Inc. and Western Air Lines, Inc. should send their comments to the Rules Dated: February 7, 1973. Notice is hereby given that a prehear­ and Proceedings Branch, Office of Ad­ ing conference in the above-entitled ministration-Regulation, U.S. Atomic W il l i a m L . W oodard, Executive Secretary, Atomic matter is assigned to be held on Febru­ Energy Commission, Washington, D.C. ary 27, 1973, at 10 a.m. (local time), in 20545, on or before April 16, 1973. Safety and Licensing Appeal Panel. Room 911, Universal Building, 1825 Con­ Dated at Washington, D.C., this 30th necticut Avenue NW., Washington, DC, day of January 1973. [FR Doc.73-2816 Filed 2-12-73; 8:45 am] before Administrative Law Judge James S. Keith. For the Atomic Energy Commission. [Docket No. 50-367] In order to facilitate the conduct of the conference parties are instructed to P a u l C . B e n d e r , NORTHERN INDIANA PUBLIC SERVICE CO. Secretary of the Commission. submit one copy to each party and four Notice of Availability of Final Environmental copies to the Judge of (1) proposed state­ [FR Doc.73-2759 Filed 2-12-73;8:45 am] Statement for the Bailly Generating Sta­ ments of issues; (2). proposed stipula­ tion Nuclear 1 tions; (3) requests for information; (4) statement of positions of parties; and HIGH ENERGY PHYSICS PANEL ETAL. Pursuant to the National Environ­ mental Policy Act of 1969 and the Atomic (5) proposed procedural dates. The Bu­ Extension of Existence Energy Commission’s regulations in Ap­ reau of Economics will circulate its ma­ terial on or before February 20, 1973, On February 1, 1973, the AtomU pendix D to 10 CFR Part 50, notice is hereby given that the Final Environ­ and the other parties on or before Feb­ Energy Commission in accordance witt ruary 23, 1973. The submissions of the Public Law 92-463, 92d Congress, 2c mental Statement prepared by the Com­ other parties shall be limited to points session determined : mission’s Directorate of Licensing, re­ lated to the Bailly Generating Station on which they differ with the Bureau of 1. That the following advisory commit­ Economics, and shall follow the num­ tees will be continued for a period not to Nuclear 1, to be constructed by Northern bering and lettering used by the Bureau exceed January 5,1975: Indiana Public Service Co., in Porter County, Ind., is available for inspection to facilitate cross-referencing. High Energy Physics Panel (Division o f Phys- ical Research). by the public in the Commission’s Public Dated at Washington, D.C., Febru­ Standing Committee on Controlled Therm o­ Document Room at 1717 H Street NW., ary 7, 1973. nuclear Research (Division of Controlled Washington, DC 20545, and in the West [ s e a l ] R a l p h L . W is e r , An rermonuclear Research). Chester Township Public Library, 125 avisory Committee on Medical Uses of Iso­ South Second Street, Chesterton, IN Chief Administrative Law Judge. ropes (Director of Regulation). 46304. The final Environmental State­ [FR Doc.73-2840 Filed 2-12-73;8:45 am]

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4360 NOTICES

ENVIRONMENTAL PROTECTION A p p e n d ix I DRAFT ENVIRONMENTAL IMPACT STATEMENTS FOR WHICH COMMENTS WERE ISSUED BETWEEN DECEMBER 30, 1972 AGENCY AND JANUARY 18, 1073 ENVIRONMENTAL IMPACT STATEMENTS AND OTHER ENVIRONMENTAL AC­ General Source for Responsible Federal agency Title and identifying number nature of copies of TIONS comments comments Availability of EPA Comments Pursuant to the requirements of sec­ Corpse! Engineers (civil works). D-COE-21028-OH: Confined disposal facility, Toledo ER-2 F Harbor, Ohio. tion 102(2) (C) of the National Environ­ D o ______- ___ ...... --- D-COE-3Q011-V A: Virginia Beach erosion control, hur­ LO-2 D mental Policy Act of 1969 and section ricane protection, Virginia. D o ...... — _____ - ______D-COE-30047-AL: Dredging of dead-reef shells, Mobile 3 E 309 of the Clean Air Act, as amended, the B a y , A la. Environmental Protection Agency (EPA) D o - - - - ______D-COE-32075-FL: Miami navigation project, Florida... 3 E has reviewed and commented in writing D o " ” ” - I - I . I ~ - ...... D -C O E -3 2 0 7 6 -P A : Woodcock Creek Lak e, French LO-2 D on Federal agency actions impacting the D o ______—— D-COE-32079-KY: Camp Ground Lake, Salt River 3 E environment contained in the follow­ B asin, K y . D o ____ — ______. . . D-COE-32394r-FL: Intracoastal waterway, Florida.-— LO-2 E ing appendices during the period from D o I.I______. . . D -C O E -3 2 3 9 8 -A L : Navigation, A labam a R iver, A la .-a LO-1 E December 30, 1972, to January 18, 1973. D o ” I . . . I ______D-COE-32401-KY: Temporary Navigation Lock and LO-1 E Dam 63, Ohio River, Illinois and Kentucky. Appendix I contains a listing of draft D o ...... D-COE-35027-CA: Maintenance dredging of Redwood 3 J environmental impact statements re­ City Harbor, Calif. D o ...... ______D -C O E -3 5 0 4 6 -IA : P erry Creek, I o w a . . ; . ------LO-2 H viewed and commented upon in writing D o ...... — — ...... : D-CO E-35049-N Y : Maintenance dredging of Bronx ER-2 G during this reviewing period. The list River, N .Y ; includes the Federal agency responsible Do - D-COE-36174-N Y: Flood control project for Ardsley, ER-2 C N . Y . - for the statement, the number and title D o . ______. . . . ____ D-COE-36184-AR: Norfork Lake, Arkansas and Mis­ LO-1 G of the statement, the classification of the souri. .... Departm ent of Agriculture______D -D O A-36035-IN: Lost River Watershed, Indiana— — 3 F nature of EPA’s comments as defined D o ______— D-DOA-61101-OR: Skyline Basin winter sports devel­ LO-2 K in appendix II, and the EPA source for opment, Oregon. . „ Department of Commerce.— . .. D-DOC-24020-MA: Sewerage system, Greenfield, Mass. LO-2 B copies of the comments as set forth in D o ...... D -D O C-24021-CT: Improvements to water supply, LO-2 B appendix V. Winchester, Conn. LO-1 K Appendix n contains the definitions of Departm ent of Defense— ______D -D O D -1 1 0 2 0 -W A : Seattle bulk m ail facility, W ashm g- the classifications of EPA’s comments on D o ______... ______D-DOD-35053-FL: Santa Rosa Island, Fla., redredge LO-1 E of channel, Florida. the draft environmental impact state­ Department of the Interior...... D -DOI-36117-N B: South Fork Watershed, Pawnee and LO-1 H ments as set forth in appendix I. Richardson Counties, Nebr. Department of Transportation___D-DOT-4Q386-MI: Reconstruction of M-43, Kalama­ LO-2 F Appendix HI contains a listing of final zoo, V a n B uren. M ich. environmental impact statements re­ D o ...... — D - D OT -40 40 8-F L : Seminole and Volusia Counties, LO-1 E State R oad 415. • ■ viewed and commented upon in writing D o ______D-DOT-40409-FL: Lake County, Fla., State Road 60.j LO-1 E during this reviewing period. The listing D o "___I ____ D -D O T -4 0 4 3 0 -A K : F -044-1 (5) and (6) Tudor and M ul- LO-2 K doon Rds., Alaska. „ , . _ will include the Federal agency responsi­ D o ______•_ D - D O T -4 0 4 3 1 -A K :' Northern Lights Boulevard Cou­ LO-2 K ble for the statement, the number and plet, Alaska. _ title of the statement, a summary of D o ...... D-DOT-40432-FL: State Road 438, Orange County, LO-1 E the nature of EPA’s comments, and the Fla. LO-1 E D o - . D -D OT-40433-FL: State Rt. 83, Pinellas County, Fla.. E EPA source for copies of the comments D o ” ” ” — — . — ______D-DOT-40434-NC: U.S.-62 Davidson-Forsyth Coun- LO-1 tios N ,G . as set forth in appendix V. D o ...... — ...... D-D6T-40435-AL: F-248 (11) Shelby and Talladega LO-1 E Appendix IV contains a listing of pro­ Counties, Ala. Do . D-DOT-40439-OH: State Road 56, Athens, Ohio------LO-1 F posed Federal agency regulations, legis­ Tin...... D-DOT-40440-AZ: Is. Defense Highway 40 Bypass, LO-2 J lation proposed by Federal agencies, and Winslow, Ariz. ____ D o ______D-DOT-41363-AL: U.S. 280, Tallapoosa and Coosa LO-1 E any other proposed actions reviewed and Counties, A la. ‘ , commented upon in writing pursuant to Do D-DOT-41577-AL: Mobile and Baldwin Counties, Ala. ER-2 E D o II I— — — — ...... D-DOT-41580-MN: T.H. 169, Chisholm to Kinney, LO-1 F section 309,(a) of the Clean Air Act, as St. Louis County, Minn. , amended, during the referenced review­ D o _____- ______D -D OT-41586-IL: I L 161, Marion County, Bl. (Indiana ER-2 F ing period. The listing includes the Fed­ and adjacent). __ _ LO-1 E eral agency responsible for the proposed Do — ...... — — - D-DOT-41587-NC: Surry-Yadkin-Wilkes Counties, N C LO-1 ¡r action, the title of the action, a sum­ D o ------. —— — t'r D-DOT-41588-CA: Int. 5, 1.8 miles north on Black Blvd. and Slate Creek, Calif. mary of the nature of EPA’s comments, D o ______...... ____ '. D-DOT-41606-NC: Henderson County, U.S.-25/I-36, LO-1 E and the EPA source for copies of the North Carolina. _ _ LO-1 E comments as set forth in appendix V. D o ___ D-DOT-41618-KY: Mt. Tabor Road, Fayette County, Lexington, Ky. „ „ . . E Appendix V contains a listing of the D o ...... - ...... D-DOT-41619-SC: Columbus St.-Bogard St., Charles­ LO-1 names and addresses of the sources for ton County, Charleston, S.C. LO-1 F copies of EPA comments listed in ap­ D o ____ ...... ______. . . . . D -D O T -4 1 6 5 4 -M N : T .H . 169, Chisholm to K in n ey, St; Louis County, Minn...... LO-1 F pendices I, m , and IV. D o ...... „ . . . i . . _____ ...... D-DOT-41655-MN: T.H . 212, Yellow Medicine Chip­ pewa and Renville, Minn. ' LO-1 F Copies of the EPA Order 1640.1, set­ t \q ------D-DOT-50036-OH: Bridge, Erie County, Milan, Ohio.. LO-2 I ting forth the policies and procedures D o '. ______-____ d -D OT-51033-CO: New runway and accessones at Stapleton International Airport, Colo. .... H for EPA’s review of agency actions, may D o — ------——— D-DOT-51034-NB: VII-204, Falls City Airport, Nebr.. LO-2 LO-2 F be obtained by writing the Public In­ D o l______..I . D-DOT-51198-IL: Columbus Airport, Franklin City, H quiries Branch, Office of Public Affairs, D o ------D - D O T-312 05 -M O : Mansfield Municipal Airport, M ans- LO-1 Environmental Protection Agency, Wash­ LO-1 H ington, D.C. 20460. Copies of the draft D 0 ...... D -D O T-5i206-K S; Wichita Municipal Airport, Wichita, H and final environmental impact state­ D o _____------■ - D -D OT-51207-MO: Piedmont Municipal Airport, Pied- LO-1 ments referenced herein are available ' inont, Mo. _ __ . LO-2 J General Services Administration. D-GSA-81020-CA: Disposal of Lewiston Government from the originating Federal department Camp, Calif. _ , , ER-2 F or agency or from the National Techni­ Department of Housing and D-HUD-86001-OH: Brookwood New Community, cal Information Service, U.S. Depart­ Urban Development. Montgomery County, Ohio. ment of Commerce, Springfield, Va. tion as described In th e draft Impact state­ A ppendix II—De f in it io n of C odes for t h e ment; or suggests only minor changes 22151. G eneral N ature of EPA Co m m e n t s Dated: February 5,1973. proposed action. ENVIRONMENTAL IMPACT OF THE ACTION ER—Environmental reservations. • S h e l d o n M e y e r s , EPA has reservations concerning t e Director, LOC—Lack of objection. Office of Federal Activities, EPA bas no objections to the proposed ac­ vironmental effects of certain aspec

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4361

proposed action. EPA believes that further ment does not contain sufficient information FEDERAL COMMUNICATIONS study of suggested alternatives or modifica­ to assess fully the environmental impact of tions is required and has asked th e originat­ the proposed project or action. However, COMMISSION ing Federal agency to reassess these aspects. from the information submitted, the Agency STEERING COMMITTEE OF THE FEDERAL/ EU—Environmentally unsatisfactory. is able to make a preliminary determination EPA believes that the proposed action is of the impact on the environment. EPA has STATE-LOCAL ADVISORY COMMITTEE unsatisfactory because of its potentially requested that the originator provide the in­ Notice of Open Meeting harmful effect on the environment. Further­ formation that was not included in the draft more, the Agency believes that the potential statem ent. F e b r u a r y 2, 1973. safeguards which m igh t be utilized m ay not Category 3— Inadequate. The Steering Committee of the Cable adequately protect th e environm ent from EPA believes that the draft impact state­ Television Federal/State-Local Advisory hazards arising from this action. The Agency ment does not adequately assess the environ­ Committee will hold open meetings on recommends th a t alternatives to the action mental impact of the proposed project or ac­ he analyzed further (including the possibil­ tion, or that the statement inadequately February 15 and 16, 1973. The meetings ity of no action at a ll) . analyzes reasonably available alternatives. will begin at 10 a.m. and will be held in The Agency has requested more information Room A110 of the FCC Annex, 1229 20th ADEQUACY OP THE IMPACT STATEMENT and analysis concerning the potential en­ Street, Washington, DC* Category 1— Adequate. vironmental hazards and has asked that sub­ The agenda for these meetings will be The draft impact statement adequately stantial revision be made to the impact the continuation of a discussion of is­ sets forth the environmental impact of the statem ent. sues to be included in the final Advisory proposed project or action as well as alterna­ If a draft impact statement is assigned a Committee report. tives reasonably available to the project or Category 3, no rating will be made of the action. project or action, since a basis does not F ed er al C ommunications Category 2— Insufficient inform ation. generally exist on which to make such a C o m m i s s i o n , determination. EPA believes that the draft impact state­ [ s e a l ] B e n F . W a p l e ,

A ppe n d ix I I I Secretary. [FR Doc.73-2834 Filed 2-12-73;8:45 am] PINAL ENVIRONMENTAL IMPACT STATEMENTS FOR WHICH COMMENTS WERE ISSUED BETWEEN DECEMBER 30,1972 AND JANUARY 18, 1973 FEDERAL HOME LOAN BANK BOARD Responsible Source for Federal agency Title and identifying number General nature of comments copies of [No. 73-178] comments ESTABLISHMENT OF BRANCH OFFICES AND MOBILE FACILITIES IN ILLINOIS Tennessee Valley F-TVA-82025-O 0 : Control N o major objections are raised on the proposed A Authority. of Eurasian Watermilfoil. project. E P A recommends the use of mechan­ ical or biological controls, the exercise of cau­ Statement of Policy Regarding Applications tion in the application of 2, 4-D near water supply intakes, and the creation of an active F e b r u a r y 7,1973. control technology research program. The Federal Home Loan Bank Board, Corps of Engineers.. _ F-COE-30030-FL: Beach N o objections raised on proposed project. Final E erosion control, Brevard statement satisfactorily responds to comments in considering its policy regarding appli­ County, Fla. made by EPA during review of the draft cations by Federal savings and loan asso­ statem ent. Department of F -D 0 A-36183-N C : Tallulah r . — d o ...... E ciations for permission to establish de Agriculture. Creek Watershed, Graham novo branch offices, mobile facilities, and County, N.C. Department of F-D O T-:41626-AL: Jefferson s z z t.d o ____ E satellite offices in Illinois, has determined Transportation; County, 8th Ave., that commercial banks in Illinois are Birmingham, Ala. conducting affiliate operations. Accord­

A ppe n d ix IV ingly, under the Board’s statement of policy set out in paragraph (b) (1) of REGULATIONS, LEGISLATION AND OTHER FEDERAL AGENCY ACTIONS FOR WHICH COMMENTS WERE ISSUED BETWEEN DECEMBER 30, 1972 AND JANUARY 18, 1973 § 556.5 of the rules and regulations for the Federal Savings and Loan System Source for (12 CFR 556.5(b)(1)), de novo branch Agency Title General nature of comments copies of comments offices,, mobile facilities, and satellite offices of Federal associations in Illinois FMC— ~ Federal Maritime Commis- Commended initiatives taken by FMC in con- A are now, for the first time, permitted by sion’s procedures for imple- sidering solid waste disposal practices in menting NEPA. decision making. the Board. However, in order to effect an orderly transition, the Board hereby im­ A ppe n d ix V F. Director of Public Affairs poses the following limitations with re­ Region V SOURCES FOR COPIES OF EPA COMMENTS Environmental Protection Agency spect to applications by Federal associa­ 1 N orth Wacker D rive tions for permission to establish de novo A: Director, Office of Public Affairs Chicago, IL 60606 G. Director of Public Affairs rJvfonmentai Protection Agency branch offices, mobile facilities,, and M Street SW . Region V I Environmental Protection Agency Washington, D C 20460 satellite offices in Illinois: 1600 Patterson Street B- Director of Public Affairs D allas, T X 76201 1. The Board will process and consider Region I H. Director of Public Affairs only such applications as are filed on or Environmental Protection Agency Region V I I Room 2303 Environmental Protection Agency • after February 1,1973. John P. Kennedy Federal Building 1735 Baltimore Street ■Boston, M A 02203 Kansas C ity , M O 64108 2. During 1973, the Board will process °* Director of Public Affairs L Director of Public Affairs Region II Region V I H and consider only one such application Rwm°8 4 7 ental Protectlon Agency Environmental Protection Agency by each association; this limitation will Lincoln Tow er, R oom 916 26 Federal Plaza 1860 Lincoln Street apply with respect to any such applica­ New York, N Y 10007 D enver, C O 80203 tion filed on or before December 31,1973. IL Director of Public Affairs nir2 t0TT0TfPubU cAffairs " Region IH Region I X If more than one such application is filed Protection Agency Environmental Protection Agency 100 California Street during 1973, all but the earliest applica­ ^ « P ^ aKT* Walnut Streets San Francisco, C A 94102 K . Director of Public Affairs tion will be returned to the applicant. Region IV PubUc Aflalr3 Region X 3. In connection with the approval of Environmental Protection Agency J r i a r ental Protectlon Agency 1200 Sixth A ven ue any such application, the Board will pro­ Seattle, W A 98101 Peachtree Street NE j vide, as a condition of such approval, A tlanta, G A 30309 [FR Doc.73-2632 Filed 2-12-73;8:45 am] that the branch office, mobile facility, or

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4362 NOTICES satellite office applied for shall not be 15,000 Mcf of gas per day, subject to pro­ Washington, D.C. 29551, to be received opened prior to July 1,1973. portionate reduction to Applicant’s 50- not later than March 5, 1973. pércent interest, at 40 cents per Mcf at By the Federal Home Loan Bank Board of Governors of the Federal Re­ 14.65 p.s.i.a. serve System, February 5, 1973. Board. It appears reasonable and consistent [ seal] Jack Carter, with the public interest in this case to [seal] M ichael A . G reenspan, Secretary. prescribe a period shorter than 15 days Assistant Secretary of the Board. [FR Doc.73-2851 Filed 2-12-73;8:45 am] for the filing of protests and petitions to [FR Doc.73-2808 Filed 2-12-73;8:45 am] intervene. Therefore, any person desiring to be heard or to make any protest with EXCHANGE BANCORPORATION, INC. FOREST PRODUCTS CO., INC., ET AL. reference to said application should on or before February 23, 1973, file with the Acquisition of Bank Notice of Receipt of Application for Ap­ proval of Acquisition of Control of Four Federal Power Commission, Washington, Exchange Bancorporation, Inc., Corners Savings and Loan Association D.C. 20426, a petition to intervene or a Tampa, Fla., has applied for the Board’s protest in accordance with the require­ approval under section 3(a) (3) of the F ebruary 8,1973. ments of the Commission’s rules of prac­ Bank Holding Company Act (12 U.S.C. Notice is hereby given that the Federal tice and procedure (18 CFR 1.8 or 1.10). 1842(a) (3)) to acquire 100 percent of the Savings and Loan Insurance Corporation All protests filed with' the Commission voting shares (less directors’ qualifying has received an application from the will be considered by it in determining shares) of Edison National Bank in Fort Savings Financial Corp„ Albuquerque, the appropriate action to be taken but Meyers, Fort Meyers, Fla. The factors N. Mex., a savings and loan holding com­ will not serve to make the protestants that are considered in acting on the ap­ pany controlled by Forest Products Co., parties to the proceeding. Any person plication are set forth in section 3(c) of Inc., and McNary Lumber Co., Inc., for wishing to become a party to a proceed­ the Act (12 U.S.C. 1842(c)). approval of acquisition of control of Four ing or to participate as a party in any Exchange Bancorporation, Inc., is also Comers Savings and Loan Association, hearing therein must file a petition to engaged in the following nonbank activi­ Albuquerque, N. Mex., an insured institu­ intervene in accordance with the Com­ ties: Providing travel services at various tion, under the provisions of section 408 mission’s rules. bank subsidiaries. In addition to the fac­ (eX^of the National Housing Act, as Take further notice that, pursuant to tors considered under section 3 of the Act amended (12 U.S.C. 1730a(e)), and the authority contained in and subject (banking factors), the Board will con­ § 584.4 of the regulations for Savings and to the jurisdiction conferred upon the sider the proposal in the light of the Loan Holding Companies, said acquisi­ Federal Power Commission by sections company’s nonbanking activities and the tion to be effected by an exchange of 7 and 15 of the Natural Gas Act and the provisions and prohibitions in section 4 stock of Savings Financial Corp. for stock Commission’s rules of practice and pro­ of the Act (12 U.S.C. 1843). of Four Comers Savings and Loan Asso­ cedure, a hearing will be held without The application may be inspected at ciation, Comments on the proposed ac­ further notice before the Commission the office of the Board of Governors or at quisition should be submitted to the on this application if no petition to in­ the Federal Reserve Bank of Atlanta. Director, Office of Examinations and tervene is filed within the time required Any person wishing to comment on the Supervision, Federal Home Loan Bank herein, if the Commission on its own re­ application should submit his views in Board, Washington, D.C. 20552, on or view of the matter finds that a grant of writing to the Secretary, Board of Gov­ before March 15,1973. the certificate is required by the public ernors of the Federal Reserve System, convenience and necessity. If a petition [ seal] E ugene M. H errin, Washington, D.C. 20551, to be received for leave to intervene is timely filed, or not later than March 6, 1973. Assistant Secretary, if the Commission on its own motion be­ Federal Home Loan Bank Board. lieves that a formal hearing is required, Board of Governors of the Federal Re­ [FR Doc.73-2825 Filed 2-12-73; 8:45 am] further notice of such hearing will be serve System, February 7, 1973. duly given. [ seal] M ichael A. G reenspan, Under .the procedure herein provided FEDERAL POWER COMMISSION for, unless otherwise advised, it will be- Assistant Secretary of the Board. [Docket No. 0173-519] unnecessary for Applicant to appear or [FR Doc.73-2817 Filed 2- 12- 73 ;8:45*am] be represented at the hearing. 'DORCHESTER EXPLORATION, INC. Notice of Application K enneth F. P lu m b, FIRST PENNSYLVANIA CORP. Secretary. F ebruary 7, 1973. Proposed Acquisitions of Aliquippa Finance [FR Doc.73-2719 Filed 2-12-73;8:45 am] Take notice that on January 26, 1973, Corp., Ellwood Finance Corp., and Beaver Dorchester Exploration, Inc. (Applicant), Falls Consumer Discount Co., Inc. 1204 Vaughn Building, Midland, Tex. FEDERAL RESERVE SYSTEM First Pennsylvania Corp., Philadelphia, 79701, filed in Docket No. CI73-519 an Pa., has applied, in separate applica- application pursuant to section 7(c) of ALABAMA BANCORPORATION tions, pursuant to section 4(c) (8) of the the Natural Gas Act for a certificate of Acquisition of Bank Bank Holding Company Act (12 U.S.C. public convenience and necessity author­ Alabama Bancorporation, Birming­ 1843(c)(8)) and § 225.4(b) (2) of the izing the sale for resale and delivery of ham, Ala., has applied for the Board’s Board’s Regulation Y, for permission to natural gas in interstate commerce to approval under section 3(a)(3) of the acquire voting shares of (1) Aliquippa Northern Natural^ Gas Co. from acreage Bank Holding Company Act (12 U.S.C. Finance Corp., Aliquippa, Pa.; (2) EU- in Hemphill County, Tex., all as more 1842(a) (3) ) to acquire 100 percent of the wood Finance Corp., Ellwood City, Pa., fully set forth in the application which -voting shares (less directors’ qualifying and (3) Beaver Falls Consumer Discount is on file with the Commission and open shares) of the Commercial National Co., Inc., Beaver Falls, Pa. Notice of the to public inspection. Bank of Anniston, Anniston, Ala. The applications was published in the follow­ Applicant states that it is selling nat­ factors that are considered in acting on ing newspapers of general circulation: ural gas within the contemplation of the application are set forth in section The Beaver County Times, Bridgewater, Pa., § 157.29 of the regulations under the 3(c) of the Act (12 UJS.C. 1842(c) ). December'13, 1972, Natural Gas Act (18‘ CFR 157.29) and The application may be inspected at The News-Tribune, Beaver Falls, Pa., Decem­ that it proposes to continue said sale for the office of the Board of Governors or at ber 12, 1972. 1 year from the end of the 60-day emer­ the Federal Reserve Bank of Atlanta. Ellwood City Ledger, Ellwood City, Pa., n® gency period within the contemplation of Any person wishing to comment on the cember 12,1972. § 2.70 of the Commission’s general policy application should submit his views in Applicant states that the proposed sub­ and interpretations (18 CFR 2.70). Ap- writing to the Secretary, Board of Gov­ sidiaries would engage in the activitie plicant proposes to sell an average of ernors of the Federal Reserve System, of making, acquiring, and servicing con-

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4363 sumer loans, including the sale of credit plied for the Board’s approval under SCHROEDER-GOODENOW MANAGEMENT insurance directly related to such loans. section 3(a)(1) of the Bank Holding CO. Such activities have been specified by Company Act (12 U.S.C. 1842(a)(1)) of Formation of One-Bank Holding Company the Board in § 225.4(a) of Regulation Y formation of a bank holding company as permissible for bank holding com­ through acquisition of 100 percent of the Schroeder-Goodenow Management panies, subject to Board approval of in­ voting shares (less directors’ qualifying Co., Exira, Iowa, has applied for the dividual proposals in accordance with the shares) of the successor by merger to Board’s approval under section 3(a)(1) procedures of § 225.4(b). Union Bank and Trust Company (Na­ of the Bank Holding Company; Act (12 Interested persons may express their tional Association), Grand Rapids, Mich. U.S.C. 1842(a)(1)) to become a bank views on the question whether consum­ (Bank). holding company through acquisition of mation of these proposals can “reason­ Notice of the application, affording op­ 100 percent of the voting shares (less di­ ably be expected to produce benefits to portunity for interested persons to submit rectors’ qualifying shares) of Exchange the public, such as greater convenience, comments and views, has been given in State Bank, Exira, Iowa. The factors increased competition, or gains in effi­ accordance with section 3(b) of the Act. that are considered in acting on the ap­ ciency, that outweigh possible adverse The time for filing comments and views plication are set forth in section 3 (c) of effects, such as undue concentration of has expired, and the Board has con­ the Act (12 U.S.C. 1842(c) ). resources, decreased or unfair competi­ sidered the application and all comments The application may be inspected at tion, conflicts of interests, or unsound received in light of the factors set forth the office of the Board of Governors or at banking practices.” Any request for a in section 3(c) of the Act (12 U.S.C. the Federal Reserve Bank of Chicago. hearing on these questions should be 1842(c)). Any person wishing to comment on the accompanied by a statement summariz­ Applicant is a nonoperating company, application should submit his views in ing the evidence the person requesting recently formed for the purpose of ac­ writing to the Reserve Bank to be re­ the hearing proposes to submit or to quiring Bank ($286.9 million deposits). ceived not later than February 28,1973. elicit at the hearing and a statement of (Banking data are as of June 30, 1972.) Board of Governors of the Federal the reasons why these matters should not Bank is the second largest in Kent Reserve System, February 7,1973. be resolved without a hearing. County holding 21.9 percent of the de­ The applications may be inspected at posits in commercial banks in that [ s e a l ] M ic h a e l A. G r e e n s p a n , the offices of the Board of Governors or county; the largest bank holds 49.3 per­ Assistant Secretary of the Board. at the Federal Reserve Bank of Philadel­ cent of county deposits. Consummation [FR Doc.73-2821 Filed 2-12-73;8:45 am] phia. of the proposal would have no adverse Any views or requests for hearing effects on the other banks in the area. STATE STREET BOSTON FINANCIAL CORP. should be submitted in writing and re­ Since Applicant has no present opera­ Acquisition of Bank ceived by the Secretary, Board of Gover­ tions or subsidiaries, it appears that con­ nors of the Federal Réserve System, summation of the proposal would not State Street Boston Financial Cor­ Washington, D.C. 20551, not later than significantly affect existing or potential poration, Boston, Mass., has applied for February 28,1973. competition. Competitive considerations the Board’s approval under section ' Board of Governors of the Federal Re­ are consistent with approval of the ap­ 3(a) (3) of the Bank Holding Company serve System, February 5, 1973. plication. Act (12 U.S.C. 1842(a)(3)) to acquire Applicant’s management is capable; 100 percent of the voting shares (less I seal 3 M ic h a e l A . G r e e n s p a n , its financial condition is dependent on directors’ qualifying shares) of the suc­ Assistant Secretary of the Board. that of Bank which is deemed to be satis­ cessor by merger to Union National Bank, [PR Doc.73-2809 Filed 2-12-73;8:45 am] factory. Prospects for both Applicant and Lowell, Mass. The factors that are con­ Bank are favorable particularly in view sidered in acting on the application are of Applicant’s commitment to contribute set forth in section 3(c) of the Act (12 OAK, INC. $4 million to the equity capital accounts U.S.C. 1842(c)). Formation of One-Bank Holding Company of Bank within 90 days of the effective The application may be inspected at date of this Order and to inject an addi­ the office of the Board of Governors or Oak, Inc., Omaha, Nebr., has applied tional $1 million in equity capital into at the Federal Reserve Bank of Boston. for the Board’s approval under section Any person wishing to comment on the 3(a) (1) of the Bank Holding Company Bank by June 30, 1974. Banking factors are therefore consistent with approval of application should submit his views in Act (12 U.S.C. 1842(a) (1)) to become a the application. Considerations relating writing to the Secretary, Board of Gov­ bank holding company through acquisi­ tion of 90 percent of the voting shares to the convenience and needs of the com­ ernors of the Federal Reserve System, of Scroggin and Company Bank, Oak, munity are also consistent with approval Washington, D.C. 20551, to be received Nebr. The factors that are considered in of the application. It is the Board’s judg­ not later than March 5,1973. acting on the application are set forth in ment that the transaction would be in Board of Governors of the Federal Re­ section 3(c) of the Act (12 U.S.C. 1842 the public interest and that the applica­ serve System, February 6,1973. (c)). tion should be approved. The application may be inspected at On the basis of the record, the applica­ [ s e a l ] M ic h a e l A . G r e e n s p a n , the office of the Board of Governors or tion is approved for the reasons sum­ Assistant Secretary of the Board. at the Federal Reserve Bank of Kansas marized above. The transaction shall not [FR Doc.73-2822 Filed 2-12-73;8:45 am] City. Any person wishing to comment on be consummated (a) before the 30th cal­ endar day following the effective date of the application should submit his views VIRGINIA NATIONAL BANKSHARES, INC. m writing to the Reserve Bank to be re­ this Order or (b) later than 3 months ceived not later than February 26, 1973. after the effective date of this Order, un­ Acquisition of Bank less such period is extended for good Board of Governors of the Federal cause by the Board, or by the Federal Re­ Virginia National Bankshares, Inc., Reserve System, February 6, 1973. serve Bank of Chicago pursuant to dele­ Norfolk, Va., has applied for the Board’s gated authority. approval under section 3(a)(3) of the tsEAL] ^ M ic h a e l A. G r e e n s p a n , Bank Holding Company Act (12 U.S.C. Assistant Secretary of the Board. By order of the Board of Governors,1 1842(a)(3)) to acquire 100 percent of [PR Doc.73-2818 Filed 2-12-73; 8:45 am] effective February 6,1973. the voting shares (less directors’ quali­ [ s e a l ] T y n a n S m i t h , fying shares) of the successor by merger PENINSULAR h o l d in g corporation o f Secretary of the Board. to Virginia Trust Company, Richmond, MICHIGAN Va. The factors that are considered in [FR Doc.73-2820 Filed 2-12-73;8:45 am] Order Approving Formation of Bank Holding acting on the application are set forth Company in section 3(c) of the Act (12 U.S.C. 1 Voting for this action: Chairman Burns 1842(c)). Penhisular Holding Corporation of and Governors Robertson, Mitchell, Daane, The application may be inspected at Michigan, Grand Rapids, Mich., has ap­ Brimmer, Sheehan, and Bucher. the office of the Board of Governors or

No. 29- FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4364 NOTICES at the Federal Reserve Bank of Rich­ from the proceeds of the Regulation A tfre circumstances under which they mond. Any person wishing to comment offering. were made, not misleading with respect on the application should submit his (B) The terms and conditions of Regu­ to : views in writing to the Secretary, Board lation A had not been complied with in (1) The names of the actual promot­ of Governors of the Federal Reserve Sys­ that: ers, affiliates and principal stockholders tem, Washington, D.C. 20551, to be re­ (1) The Issuer filed a Form 2-A which of ATSC; ceived not later than March 5, 1973. failed to disclose the use of $20,000 of the (2) The criminal records of two of the proceeds of the offering to purchase com­ affiliates and -principal stockholders of Board of Governors of the Federal Re­ mon stock and the use of $12,000 of the ATSC; serve System, February 5,1973. proceeds of the offering to make a loan (3) The sale of unregistered securities [ seal] M ichael A. G reenspan, to one of its officers and directors. of ATSC by its affiliates; Assistant Secretary of the Board. (C) The offering was made in violation (4) Liabilities of ATSC which arose as [FR Doc.72-2823 Filed 2-12-73:8:45 am] of section 17(a) of the Securities Act of a result of loans made to ATSC by and 1933, as amended. on behalf of its control persons; m . Issuer’s request for a hearing hav­ (5) The use of proceeds of its public SECURITIES AND EXCHANGE ing been withdrawn and no other request offering to repay loans made to it by and COMMISSION for a hearing having been made within on behalf of its controlling persons ; [File No. 24D—3000] 30 days after the entry of an order (6) The number of its shares owned temporarily suspending the exemption by its principal stockholders; and AMERICAN SCIENTIFIC INDUSTRIES of Issuer under Regulation A, the Com­ (7) The actual method of distribution INTERNATIONAL mission finds that it is in the public in­ for its offering pursuant to Regulation A. Order Permanently Suspending Exemption terest and for the protection of investors B. The Regulation A exemption was that the exemption of Issuer be perma­ F ebruary 6, 1973. not available to ATSC because Martin nently suspended, therefore, Clare, a promoter and affiliate of ATSC I. American Scientific Industries In­ It is ordered, Pursuant to Rule 261 of connected with it at that time, had been ternational (formerly C V 100 Products, the general rules and regulations under convicted of a crime specified in Rule Inc.; formerly 4 Spectra, Inc.) (Issuer), the Securities Act of 1933, that the ex­ 252(d) (1) within 10 years of the filing of 1980 Columbia Road, Orem, UT 84057, a emption of American Scientific Indus­ ATSC’s Notification. Utah corporation, filed with the Com­ tries International under Regulation A C. The offering was made in violation mission on July 27, 1970, a notification be, and it hereby is, permanently sus­ of sections 5 and 17 of the Securities Act on Form 1-A and an offering circular pended. of 1933. relating to a proposed offering of 1,250,- By the Commission. III. ATSC having consented to a per­ 000 shares of $0.01 par value common manent suspension order without admit­ stock at $0.10 per share, for an aggregate [ seal] R onald F. H u n t, ting or denying any of the allegations offering price of $125,000 for the pur­ Secretary, contained in the temporary suspension pose of obtaining an exemption from the [FR Doc.73-2776 Filed 2-12-73:8:45 am] order dated April 18,1972, and no request registration requirements of the Securi­ for a hearing having been made within ties Act of 1933, as amended, pursuant to 30 days after the entry of an order tem­ the provisions of section 3(b) thereof, [File No. 24NY—6981] porarily suspending the exemption of and Regulation A promulgated thereun­ ATSC under Regulation A, the Commis­ der. The offering circular was later AMERICAN TRUCK SERVICE CLUB, INC. sion finds that it is in the public interest amended to reflect an offering of 2 mil­ Order Permanently Suspending Exemption and for the protection of investors that lion Shares of $0.01 par value common the exemption of ATSC be permanently stock of 4 Spectra, Inc. at $0.10 per share, F ebruary 6, 1973. suspended, therefore, for an aggregate offering price of I. American Truck Service Club, Inc. It is ordered, Pursuant to Rule 261 of $200,000. Centaur Securities, Ltd., 333 (ATSC), 26 Platt Street, New York, New the general rules and regulations under South Second East, Salt Lake City, UT York 10038, incorporated in the State of the Securities Act of 1933, that the ex­ 84111, was designated as the underwriter Delaware on May 1, 1968, filed with the emption of American Truck Service Club, of the offering. A Form 2-A Report Commission on November 20, 1969, a Inc., under Regulation A be, and it hereby filed by the Issuer pursuant to Rule 260 notification on Form 1-A and an offering is, permanently suspended. of Regulation A stated that the offering circular relating to an offering of 50,000 of 4 Spectra, Inc. common stock com­ units, each unit consisting of one share By the Commission. menced on January 15, 1971, that the of common stock and four warrants, at R onald F. H u n t, offering was completed on April 7, 1971, $6 per unit for the purpose of obtaining Secretary. and that all 2 million shares being an exemption from the registration re­ offered were sold. quirements of the Securities Act of 1933, [FR Doc.73-2775 Filed 2-12-73:8:45 am] n . The Commission on August 29,1972, pursuant to the provisions of section temporarily suspended the Regulation A 3(b) thereof and Regulation A promul­ [70-5293] exemption of the Issuer, stating that it gated thereunder. had reasonable cause to believe, from in­ Kenneth .Bove & Co., Inc., a registered CONSOLIDATED NATURAL GAS CO. ET AL. formation reported to it by the staff, broker-dealer having its principal place Allocation of Consolidated Tax Liabilities that: of business in New York City, was named (A) The Issuer’s offering circular omit­as underwriter. The offering was to be Consolidated Natural Gas Co. (Con­ ted to state material facts necessary in conducted on a “best efforts all or none” solidated) , New York, N.Y., a registered order to make the statements made, in basis. The offering commenced on holding company, and two of its wholly light of the circumstances under which March 16, 1970, and according to the owned nonutility subsidiary companies, they were made, not misleading, partic­ Form 2-A filed by ATSC was completed CNG Development Co. Ltd. (CNG ularly with respect to the following: on April 2, 1970. Ltd.) and CNG Producing Co. (CNG (1) The failure to disclose that the II. The Commission on April 18, 1972, Company), Pittsburgh, Pa., have filed a Issuer would loan $12,000 from the pro­ temporarily suspended the Regulation A joint declaration with this Commission ceeds of the Regulation A offering to exemption of ATSC, stating that it had pursuant to section 12(b) and 12(f) of David R. Nemelka, the secretary-treas­ reasonable cause to believe, from infor­ the Public Utility Holding Company Act urer and a director of the Issuer, for his mation reported to it by the staff, that: of 1935 (Act) and Rule 45 promulgated personal use; and A. The notification and offering circu­thereunder regarding the following (2) The failure to disclose that the lar of ATSC contained untrue statements transactions. Issuer would purchase 20,000 shares of of material facts and omitted to state Consolidated and its subsidiary com­ a speculative and unseasoned security material facts necessary in order to panies join annually in filing a consoli­ and disburse $20,000 for such purchase make the statements made, in light of dated Federal income tax return. The

FEDERAL REGISTER, VOL. 38, NO. .29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4365 present declaration states that, under the dian operations, the tax-loss benefits is appropriate in the public interest and circumstances hereinafter set forth, cer­ from their operations would instead be in the interest of investors and consum­ tain inequities in the allocation of the diverted to companies other than these ers that said declaration be permitted group’s consolidated income tax liabili­ two producing companies in the consoli­ to become effective. ties would result if the allocation were dated tax group under the provisions of It is ordered, Pursuant to the applicable effected pursuant to the exemptive provi­ Rule 45(b) (6). provisions of the Act and rules there­ sions of Rule 45(b)(6) under the Act; For the foregoing reasons, in order to under, tha said declaration be, and it and in accordance with subparagraph avoid claimed inequities which would hereby is, permitted to become effective (a) of Rule 45 declarants request author­ otherwise result, declarants seek authori­ forthwith, subject to the terms and con­ ization for the tax years 1972 and 1973 zation pursuant to Rule 45(a) to allocate ditions prescribed in Rule 24 promulgated to allocate consolidated Federal income consolidated taxes applicable to the years under the Act. taxes in a manner other than prescribed 1972 and 1973 in a manner other than by Rule 45 (b) (6). prescribed by Rule 45(b)(6). The au­ For the Commission, by the Division In 1972, Consolidated organized CNG, thorization sought would, in effect, grant of Corporate Regulation, pursuant to Ltd., an Alberta (Canada) corporation, CNG, Ltd., and CNG Company tax credits delegated authority. and CNG Company, a Delaware corpora­ for the reduction of consolidated Federal [ s e a l ] R o n a l d F. H u n t , \ tion, for the purpose of engaging in the income taxes in those 2 years resulting Secretary. * exploration and development of Cana­ from tax losses incurred by them as a [FR Doc.73-2777 Filed 2-12-73;8:45 am] dian natural gas reserves and supplies result of their exploration and develop­ in an effort to obtain future supplies of ment programs. This would be effectu­ gas for the Consolidated system; and ated in accordance with the following [File No. 500-1] in connection therewith Consolidated was procedure: authorized to acquire, for cash, shares 1. When the operations of any produc­ DCS FINANCIAL CORP. of capital stock of these companies to ing subsidiary company, direct or indi­ Order Suspending Trading finance such activities. (See Holding rect, of Consolidated results in a tax loss, Company Act Release Nos. 17559 and then the consolidated Federal income tax F e b r u a r y 6, 1973. 17813, issued May 1, 1972 and December to be allocated among the system com­ It appearing to the Securities and Ex­ 19,1972, respectively). These exploration panies would be based upon the tax that change Commission that the summary and development activities, it is stated, would result had the company incurring suspension of trading in the common require substantial amounts of capital, the loss been excluded from the consoli­ stock, $0.10 par value, and all other and it may take several years before dated Federal income tax return. securities of DCS Financial Corp. being newly discovered gas reserves can be 2. The funds retained by virtue of the traded otherwise than on a national transported to market and sold. In addi­ reduction in tax resulting from inclusion securities exchange is required in the tion, CNG Company is participating in of that tax loss in the consolidated Fed­ public interest and for the protection of the further development of domestic sup­ eral income tax return would be remitted investors; plies of gas, the particulars of which will to the company or companies sustaining It is ordered, pursuant to section 15 be the subject of a separate filing with such tax loss. (c) (5) of the Securities Exchange Act of the Commission. 3. In future years, when any such pro­ 1934, that trading in such securities With respect to their Canadian activi­ ducing company has taxable income, it otherwise than on a national securities ties, the filing states that in the years may be entitled to tax credits as a result exchange be summarily suspended, this 1972 and 1973, CNG, Ltd., and CNG Com­ of the net operating loss carryback and order to be effective for the period from pany will have invested an estimated ag­ carryover provisions of section 172(b) of February 7, 1973, through February 16, gregate of $15,500,000; that this is ex­ the 1954 Internal Revenue Code, in order 1973. pected to result in aggregate deductible to comply with the separate return limi­ By the Commission. tax losses for those years amounting to tations required by Rule 45(b) (6). Any approximately $12,775,000 for dry hole credits remitted under paragraph 2 would [ s e a l ] R o n a l d F . H u n t , and intangible drilling costs; that such be applied to reduce any credits in future Secretary. losses, in turn, will be included in the years to which such company may be­ consolidated tax returns, giving rise to come entitled under the separate return [FR Doc.73—2778 Filed 2-12-73;8:45 am] reductions of $2,200,000 and $4 million in limitations of Rule 45 (b) (6). the consolidated tax liabilities of 1972 4. Subject to paragraph 3, in no event [File No. 500-1] and 1973, respectively; and that in the will the tax allocated to any subsidiary GOODWAY INC. year 1974 similarly-generated tax losses company of Consolidated exceed the (with commensurate savings in consoli­ amount of tax of such company com­ Order Suspending Trading dated taxes) are estimated at $10,100,000. puted as if such company had always F e b r u a r y 6, 1973. Under the tax allocation provisions of filed its tax returns on a separate return The Common stock, $0.10 par value Rule 45(b)(6), these tax savings would basis. of Goodway Inc. being traded on the flow to the other companies in the con­ 5. For purposes of the consolidated in­ American Stock Exchange, pursuant to solidated tax group and would thereby come tax regulations, CNG Ltd. is re­ provisions of the Securities Exchange be rendered unavailable to CNG, Ltd., garded as a domestic corporation. Ac­ Act of 1934 and all other securities of 8fld CNG Company for use in their ex­ cordingly, CNG, Ltd., will be treated as ploration and development activities. such for purposes of the proposed tax Goodway Inc. being traded otherwise It is further stated that but for certain allocation under Rule 45. than on a national securities exchange; jegal and other disqualifying barriers, No State commission and no Federal and me System’s exploration and develop­ commission, other than this Commission, It appearing to the Securities and Ex­ ment efforts in Canada would have been has jurisdiction over the proposed change Commission that the summary undertaken directly by Consolidated Gas transactions. ouppiy Corp. (Supply Corporation), Due notice of the filing of said decla­ suspension of trading in such securities consolidated's principal gas supply sub- ration has been given in the manner pre-. on such exchanges and otherwise than luiary company; that Supply Corpora- scribed in Rule 23 promulgated under the on a national securities exchange is re­ v having taxable income, could Act (Holding Company Act Release No. quired in the public interest and for the nereby have utilized tax losses from the 17852), and no hearing has been re­ protection of investors; umachan operations and would thus quested of or ordered by the Commission. It is ordered, Pursuant to sections the resultant tax-savings funds Upon the basis of the facts in the rec­ 19(a)(4) and 15(c)(5) of the Securities nnn ^ble for use in future exploration ord, it is hereby found that the applica­ development of gas supplies; but ble standards of the Act and the rules exchange and otherwise than on a na- ¡¡¡S' S1?ce CNQ. Ltd., and CNG Pro­ thereunder are satisfied and that no ad­ such securities on the above mentioned ving had to be formed for the Cana­ verse findings ahe necessary; and that it exchange and otherwise than on a na-

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4366 NOTICES tional securities exchange be sum­ effect of such order the registration of (a) immediately increase the aggregate marily suspended, this order to be ef­ such company shall cease to be in effect. principal amount of bonds of all series fective for the period from February 7, Notice is further given that any inter­ which may at any one time be outstand­ 1973 through February 16, 1973. ested person may, not later than March ing under and secured by the Indenture By the Commission. 2, 1973, at 5:30 p.m., submit to the Com­ from $500 million to $750 million, and mission in writing a request for a hearing (b) provide that such aggregate p rin ci­ [ s e a l ] R onald F. H u n t , on the matter accompanied by a state­ pal amount of bonds, which may at any Secretary. ment as to the nature of his interest, the one time be outstanding, may thereafter [FR Doc.73-2813 Filed 2-12-73;8:45 am] reason for such request, and the issues be increased from time to time by a sup­ of fact or law proposed to be contro­ plemental indenture or indentures exe­ verted, or he may request that he be no­ cuted and delivered to the trustee by [811-1821] tified if the Commission shall order a Michigan Wisconsin pursuant to au th or­ J. M. HARTWELL & ASSOCIATES HEDGE hearing thereon. Any such communica­ ization by its Board of Directors, w ith­ FUND, INC. tion should be addressed: Secretary, Se­ out the further consent of the bondhold­ curities and Exchange Commission, ers. No change is proposed in any of the Filing of Application Washington, D.C. 20549. A copy of such other provisions of the Indenture relat­ Notice is hereby given that J. M. Hart­ request shall be served personally or by ing to or restricting the issue and »au­ well &■ Associates Hedge Fund, Inc. mail (airmail if the person being served thentication of bonds. (Applicant), 345 Park Avenue, New York, is located more than 500 miles from the The declaration states that the $500 N.Y., 10022, a nondiversified, closed-end point of mailing) upon Applicant at the million limitation was placed in the In­ management investment company reg­ address stated above. Proof of such serv­ denture solely for the purpose of com­ istered under the Investment Company ice (by affidavit, or in case of an attor­ plying with the laws of certain states in Act of 1940 (the A ct), has filed an appli­ ney at law, by certificate) shall be filed which Michigan Wisconsin had prop­ cation pursuant to section 8(f) of the contemporaneously with the request. At erty and which required specification of Act for an order of the Commission de­ any time after said date, as provided by the amount of bonds which might be claring that Applicant has ceased to be Rule 0-5 of the rules and regulations outstanding under the mortgage; that in an investment company as defined in the promulgated under the Act, an order dis­ 1948, when the initial series of bonds was Act. All interested persons are referred to posing of the application herein may be issued, the $500 million limitation seemed the application on file with the Commis­ issued by the Commission upon the basis more than ample for any bonds to be is­ sion for a statement of the representa­ of the information stated in said appli­ sued in the then foreseeable future; that tions contained therein, which are sum­ cation, unless an order for hearing upon due to the great expansion of the com­ marized below. said application shall be issued upon re­ pany during recent years requiring the Applicant was organized as a Dela­ quest or upon the Commission’s own mo­ construction of substantial additional fa­ ware corporation on February 20, 1969. tion. Persons who request a hearing, or cilities and the impact of inflation on On February 28, 1969, Applicant filed advice as to whether a hearing is ordered, construction costs, the amount of out­ with the Commission a Form N-8A Noti­ will receive notice of further develop­ standing bonds, as of December 31, 1972, fication of Registration pursuant to sec­ ments in this matter, including the date has reached approximately $413 million; tion 8(a) of the Act. On July 31, 1969, of the hearing (if ordered) and any post­ and that the proposed amendment will Applicant filed with the Commission a ponements thereof. permit the issuance of additional bonds to finance substantial future capital ex­ Form N-8B-1 Registration Statement For the Commission, by the Division pursuant to section 8 of the Act. Appli­ penditures necessary for the providing of of Investment Management Regulation, gas supplies to the company’s market cant’s shares were subsequently offered pursuant to delegated authority. area. privately to a limited group of investors, , It is further stated that in the opinion but no public offering of Applicant’s [ s e a l ] R onald F. H u n t , Secretary. of counsel for Michigan Wisconsin, the shares was made. proposed amendment will satisfy any The application states that on Octo­ [FR Doc.73-2779 Filed 2-12-73:8:45 am] relevant state law requirements related ber 27, 1972, Applicant, by unanimous to specification of the maximum princi­ consent of its Board of Directors, re­ pal amount of bonds to be issued and solved to dissolve the Applicant and to [70-5307] secured by the Indenture. The proposed submit to its shareholders a proposal for MICHIGAN WISCONSIN PIPE LINE CO. amendment of the Indenture will require dissolution; that on November 6, 1972, the written consent of holders of at least at a Special Meeting of Stockholders Proposed Solicitation of Bondholders’ Consent 66% percent in principal amount of called pursuant to written notice, holders Michigan Wisconsin’s outstanding First of a majority of the outstanding shares Notice is hereby given that Michigan Mortgage Pipe Line Bonds; and the com­ of Applicant approved the winding up Wisconsin Pipe Line Co. (Michigan Wis­ pany proposes to solicit the consent of and dissolution of Applicant; that on consin) , One Woodward Avenue, Detroit, its bondholders through the use of solici- December 28, 1972, Applicant filed with Michigan 48226, a subsidiary company of . tation material submitted herein., the Secretary of State of the State of American Natural Gas Co., a registered Expenses to be incurred in connection Delaware a Certificate of Dissolution, in holding company, has filed a declaration with the proposed transactions are esti­ with this Commission pursuant to the accordance with Delaware law, thereby mated at $57,000, including $5,000 for Public Utility Holding Company Act of terminating the existence of Applicant, counsel fees and $12,000 for the fee of except for limited purposes specified in 1935 (Act), designating sections 6(a), the trustee and its counsel. The declara­ the General Corporation Law of Dela­ 7 and 12(e) of the Act and Rules 62 and tion states that no State commission and ware; and that on December 27,1972, Ap­ 65 promulgated thereunder as applicable no Federal commission, other than this plicant, in accordance with its plan of to the proposed transactions. All inter­ Commission, has jurisdiction over the liquidation, distributed to its sharehold­ ested persons are referred to the declara­ tion, which is summarized below, for a proposed transactions. ers a final liquidating distribution con­ Michigan Wisconsin has requested sisting of cash and securities in cancel­ complete statement of the proposed that the effectiveness of its declaration lation of all issued and outstanding transactions. with respect to the solicitation of consent shares. Michigan Wisconsin proposes to amend from its bondholders be accelerated as Section 8(f) of the Act provides, in its mortgage and deed of trust dated as of September 1, 1948, as heretofore sup­ provided in Rule 62. pertinent part, that when the Commis­ Notice is further given that anyinter- sion, upon application, finds that a reg­ plemented and amended by 25 supple­ ested person may, not later than M ar ^ istered investment company has ceased mental indentures (Indenture) to First National City Bank of New York, as 7, 1973, request in writing that a bearing to be an investment company, it shall be held with respect to the proposed so declare by order, and upon the taking trustee. The proposed amendment would

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4367

amendment to the Indenture, stating the under the Act, 3,500,000 authorized but [70-5297] nature of his interest, the reasons for unissued shares of its common stock, $5 PENNSYLVANIA POWER CO. such request, and the issues of fact or par value, to underwriters or investment law raised by said declaration which he bankers who will agreee to promptly Notice of Proposed Issuance and Sale of make a public offering thereof. The net Notes to Banks and Guaranty of Notes desires to controvert; or he may request of Nonaffiliate Company that he be notified if the Commission proceeds to be derived from the sale of should order a hearing thereon. Any such the common stock (presently estimated Notice is hereby given that Pennsyl­ request should be addressed: Secretary, to be approximately $91 million) will be vania Power Co. (Pennsylvania Power), Securities and Exchange Commission, applied to the repayment of Middle an electric utility subsidiary company of Washington, DC 20549. A copy of such South’s then outstanding bank loans. It Ohio Edison Co., a registered holding request should be served personally or by is presently estimated that such bank company, has filed an application with mail (airmail if the person being served loans will amount to $90 million. Any this Commission pursuant to the Public is located more than 500 miles from the balance of the proceeds will be added to Utility Holding Company Act of 1935 point of mailing) upon the declarant at Middle South's treasury, in partial re­ (Act), designating section 6(b) of the the above-stated address, and proof of plenishment thereof for loans heretofore Act as applicable to the proposed trans­ service (by affidavit or, in case of an at­ made by Middle South to its wholly- actions. All interested persons are re­ torney at law, by certificate) should be owned service subsidiary company, Mid­ ferred to the application, which is sum­ filed with the request. At any time after dle South Services, Inc., and to its wholly marized below, for a complete statement said date, the declaration, as filed or as owned operating company, Arkansas- of the proposed transactions. it may be amended, may be permitted to Missouri Power Co. Pennsylvania Power proposes that for become effective as provided, in Rule 23 It is stated that no State commission the balance of 1973 the aggregate amount of the general rules and regulations pro­ and no Federal commission, other than of short-term notes within the meaning mulgated under the Act, or the Commis­ this Commission, has jurisdiction over of section 6(b) of the Act which the sion may grant exemption from such the proposed transaction. The fees and company may issue, renew, or guarantee, rules as provided in Rules 20(a) and 100 expenses to be incurred in connection without prior approval of the Commis­ thereof or take such other action as it with the transaction are estimated at sion, be increased from f> percent to 10 may deem appropriate. Persons who re­ $135,000 including Middle South’s coun­ percent of the principal amount and par quest a hearing or advice as to whether sel fees of $27,500, auditor’s fees $8,500, value of the other securities of the com­ a hearing is ordered will receive notice and fees of the Service Company for fi­ pany then outstanding. It is stated that of further developments in this matter, nancial and accounting services of $3,000. expenditures required in connection including the date of the hearing (if Fees and expenses of counsel for the with Ohio Edison’s construction program ordered) and any postponements underwriters, estimated at $15,000, will and other purposes will require short­ thereof. be paid by the successful bidders. term bank borrowings up to approxi­ It appearing to the Commission that Notice is further given that any inter­ mately $5,500,000 (or more if projected the declaration insofar as it proposes the ested person may, not later than financings are delayed). The lending solicitation of bondholders' consent March 2, 1973, request in writing that a banks and the participation of each are should be permitted to become effective hearing be held on such matter, stating as follows: the nature of his interest, the reasons forthwith pursuant to Rule 62: First National Bank of Lawrence It is ordered, That the declaration re­ for such request, and the issues of fact or County, New Castle, Pa______;___ _ $600, 000 garding the proposed solicitation of the law raised by said declaration which he Peoples Bank of Western Pennsyl­ bondholders’ consent be, and it hereby is, desires to controvert; or he may request vania, New Castle, Pa______200, 000 permitted to become effective forthwith that he be notified if the Commission McDowell National Bank, Sharon, pursuant to Rule 62 and subject to the should order a hearing thereon. Any such Pa ------_ ------500, 000 terms and conditions prescribed in Rule request should be addressed: Secretary, Merchants and Manufacturers Na­ 24 under the Act. Securities and Exchange Commission, tional Bank, Sharon, Pa______2 5 0 ,000 Washington, D.C. 20549. A copy of such First Seneca Bank and Trust Co., For the Commission, by the Division of request should be served personally or Oil City, Pa______1,200,000 Corporate Regulation, pursuant to dele­ by mail (airmail if the person being Northwest Pennsylvania Bank and gated authority. Trust Co., OU City, Pa______40 0 ,0 0 0 served is located more than 500 miles First National Bank of Mercer [seal] R onald F. H u n t, from the point of mailing) upon the de­ County, Greenville, Pa______30 0 ,0 0 0 . Secretary. clarant at the above-stated address, and First National City Bank, New York, N .Y ______1 ,3 0 0 ,0 0 0 [FR Doc.73-2781 Filed 2-12-73; 8:45 am] proof of service (by affidavit or, in case of an attorney at law, by certificate) Mellon Bank, N.A., Pittsburgh, should be filed with the request. At any P a ______75 0 ,0 0 0 [70-5304] time after said date, the declaration, as filed or as it may be amended, may be T otal ______5 ,5 0 0 ,0 0 0 MIDDLE SOUTH UTILITIES, INC. permitted to become effective as pro­ The interest rate on the notes will be Proposed Issuance and Sale of Common vided in Rule 23 of the general rules and the prime rate of the First National Bank Stock regulations promulgated under the Act, of Lawrence County. It is stated that Notice is hereby given that Middle or the Commission may grant exemption Pennsylvania Power is not required to South Utilities, Inc. (Middle South), 280 from such rules as provided In Rules 20 maintain compensating balances with Park Avenue, New York, NY 10017, a (a) and 100 thereof or take such other any of these participating banks. How­ registered holding company, has filed a action as it may deem appropriate. Per­ ever, it has been keeping working bal­ declaration with this Commission pur­ sons who request a hearing or advice as ances at each of these banks and if such suant to the Public Utility Holding Com­ to whether a hearing is ordered will re­ amounts were maintained with the par­ pany Act of 1935 (Act), designating sec- ceive notice of further developments in ticipating banks as compensating bal­ 6(a) and 7 and Rule 50 promul­ this matter, Including the date of the ances during 1973, the effective interest gated thereunder as applicable to the hearing (if ordered) and any postpone­ cost of the company of borrowings proposed transaction. All interested per- ments thereof. under the line of credit would be 6.76 referred to the declaration, For the Commission, by the Division of percent, assuming a prime rate of 6 wnich is summarized below, for a com­ Corporate Regulation, pursuant to dele­ percent. plete statement of the proposed trans­ gated authority. Pennsylvania Power also proposes to action. guarantee up to $7,524,335 of short-term Middle South proposes to issue and [ seal] R onald F. H u n t, Secretary. borrowings of Quarto Mining Co. to roi, Pursuant to the competitive bidding finance the continuing development of equirements of Rule 50 promulgated [FR Doc.73-2780 Filed 2-12-73;8:45 am] an existing coal mine and other new

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4368 NOTICES mines from which Pennsylvania Power Act and Rule 70 promulgated thereunder Notice is further given that any inter­ and certain other companies are sup­ as applicable to the proposed transac­ ested person may, not later than Feb­ plied coal for their jointly owned gen­ tions. All interested persons are referred ruary 27, 1973, request in writing that a erating stations. It is expected that these to the declaration, which is summarized hearing be held on such matter, stating short-term borrowings will expire on below, for a complete statement of the the nature of his interest, the reasons October 31, 1973. proposed transactions. for such request, and the issues of fact The fees and expenses in connection As of December 31, 1972, PEPCo had or law raised by said declaration which with the proposed transactions are esti­ outstanding $2.1 million principal he desires to controvert; or he may re­ mated at $3,700, including legal fee of amount of unsecured promissory notes quest that he be notified if the Com­ $1,500. The application states that no issued to banks pursuant to the exemp- mission should order a hearing thereon. State commission and no Federal com­ tive provisions of the first sentence of Any such request should be addressed: mission, other than this Commission, has section 6(b) of the Act. PEPCo proposes Secretary, Securities and Exchange Com­ jurisdiction over the proposed transac­ to issue and sell, from time to time mission, Washington, DC 20549. A copy tions. through December 31,1974, to the banks of such request should be served person­ Notice is further given that any in­ named below, additional notes so that ally or by mail (air mail if the person terested persons may, not later than the aggregate principal amount to be being served is located more than 500 March 5, 1973, request in writing that a outstanding at any time will not exceed miles from the point of mailing) upon hearing be held on such matter, stating $5 million. SPCo proposes to issue and the declarants at the above-stated ad­ the nature of his interest, the reasons sell, from time to time to December 31, dress, and proof of service (by affidavit for such request, and the issues of fact 1974, to the banks named below, its or, in case of an attorney at law, by cer­ or law raised by said application which promisory notes; the aggregate principal tificate) should be filed with the request. he desires to controvert; or he may re­ amount to be outstanding at any time At any time after said date, the declara­ quest that he be notified if the Commis­ will not exceed $8 million. All the notes tion, as amended or as it may be further sion should order a hearing thereon. Any will mature not later than 9 months amended, may be permitted to become such request should be addressed: Sec­ from the respective dates of issue and effective as provided in Rule 23 of the retary, Securities and Exchange Com­ may be prepaid at any time without General Rules and Regulations promul­ mission, Washington, D.C. 20549. A copy premium. The interest rate on the pro­ gated under the Act, or the C o mmission of such request should be served person­ posed notes will be the prime commercial may grant exemption from such rules ally or by mail (airmail if the person rate in effect on the date of issuance. as provided in Rules 20(a) and 100 being served is located more than 500 There are no specific requirements for thereof or take such other action as it miles from the point of mailing) upon compensating balances in conjunction may deem appropriate. Persons who re­ the applicant at the above-stated ad­ with the proposed bank loans. The parent quest a hearing or advice as to whether a dress, and proof of service (by affidavit (PEPCo) maintains normal working bal­ hearing is ordered will receive notice of or, in case of an attorney at law, by ances with all of said lending banks, further developments in this matter, in­ certificate) should be filed with the re­ which also do not require compensating cluding the date of the hearing (if quest. At any time after said date, the balances for said parent. Such working ordered) and any postponements thereof. balances average approximately 15.5 per­ application, as filed or as it may be For the Commission, by the Division amended, may be granted as provided in cent of the average amount of short­ term notes outstanding. Assuming a of Corporate Regulation, pursuant to Rule 23 of the General Rules and Regu­ delegated authority. lations promulgated under the Act, or the Prime interest rate of 6 percent per Commission may grant exemption from annum and assuming that the balances [ s e a l ] R on ald F . H unt, such rules as provided in Rules 20(a) maintained were required as compen­ Secretary. and 100 thereof or take such other action sating balances, the effective cost of [FR Doc.73-2782 Filed 2-12-73;8:45 am] as it may deem appropriate. Persons who short-term notes will be approximately request a hearing or advice as to whether 7.1 percent. a hearing is ordered will receive notice The prospective borrowings will be ob­ [File No. 24C-3297] of further developments in this matter, tained from the following banks, with SCHOOL BUS AIRLINES OF AMERICA, INC. including the date of the hearing (if the maximum limits as to the combined ordered) and any postponements thereof. borrowings of both companies at any one Order Permanently Suspending Exemption time: F e b r u a r y 6,1973. For the Commission, by the Division of Corporate Regulation, pursuant to M a x im u m I. School Bus Airlines of America, Inc. delegated authority. b o r r o w in g (Issuer), Suite 521-522, 4 North Main The First Pennsylvania Banking Street, Dayton, OH 45402, incorporated [ s e a l ] R onald F. H u n t , & Trust Co______$3, 000, 000 in the State of Ohio on May 8,1969, filed Secretary. Girard Bank______3, 000, 000 with the Chicago Regional Office on May Industrial Valley Bank & Trust [FR Doc.73-2814 Filed 2-12-73;8:45 am] 27,1971, a notification on Form 1-A, and Co. ______1, 000,000 The Fidelity Bank______3 ,0 0 0 ,0 0 0 an offering circular pertaining to a pro­ [70-5296] The Philadelphia National Bank. 3, 000,000 posed offering of 250,000 shares of $•!« par value common stock at $.50 per share PHILADELPHIA ELECTRIC POWER CO. AND Provident National Bank______2,000, 000 Central Penn National Bank______1, 000, 000 for an aggregate offering price of SUSQUEHANNA POWER CO. American Bank & Trust Co______1, 000,000 $125,000 (24C-3297). The offering com­ Proposed Increase in Short-Term Note Southeast National Bank______1 ,0 0 0 ,0 0 0 menced on June 29,1971. Borrowing PEPCo proposes to utilize the proceeds This filing was made for the purpose Notice is hereby given that Philadel­ of the contemplated borrowings for con­ of obtaining an exemption from the reg* phia Electric Co. (PECo.), an exempt struction expenditures and for sinking istration requirements of the Securities Market Street, Philadelphia, PA 19101, a fund payments. SPCo proposes to utilize Act of 1933, pursuant to the provisions registered holding company and a public- the proceeds of the contemplated bor­ of section 3(b) thereof and Regulation utility subsidiary company of Philadel­ rowings for intermediate financing of its A promulgated thereunder. phia Electric Co. (PEPCo), an exempt future improvements, including recrea­ H. The Commission on A ugust 17, holding company, and PEPCo’s wholly tional facilities at its project. 1972, temporarily suspended the Regu­ owned subsidiary company, Susquehanna The declaration states that there are lation A exemption of the Issuer, statu«: Power Co. (SPCo), a public-utility com­ no fees, commissions, or expenses in con­ that it had reasonable cause to believe, pany, have filed a declaration and an nection with the proposed transactions from information reported to it by w* amendment thereto with this Commis­ and that no State commission or Fed­ staff, that: sion pursuant to the Public Utility Hold­ eral commission, other than this Com­ A. The Issuer’s offering circular con* ing Company Act of 1935 (Act), desig­ mission, has jurisdiction over the pro­ tained untrue statements of nating sections 6(a), 6(b), and 7 of the posed transactions. facts and omitted to state matenal xac

FEDERAL REGISTER. VOL. 38. NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4369

in a hearing room to be later designated. necessary in order to make the state­ Corporation Division, Lowell, Mass., of the Lynch Corp., New York, N.Y., the No. 35480, Colorado intrastate freight rates ments made, in light of the circum­ and charges, 1971, now being assigned stances under which they were made, not U.S. Tariff Commission, on February 8, Mar. 19, 1973, at Denver, Colo., will be held misleading, including, but not limited to 1973, instituted an investigation under in room 1430, Federal Building, 1961 Stout the following: ■ section 301(c) (2) of thé Act to deter­ Street. 1. The Issuer’s failure to establish anmine whether, as a result in major part MC-96925 Sub 4, Jacksonville Transfer & escrow for proceeds of the offering, con­ of concessions granted under trade Storage, Inc., now being assigned hearing tingent on the sale of all 250,000 shares agreements, articles like or directly com­ Mar. 26, 1973 (1 week), at Tallahassee, Fla. petitive with radio-phonograph and in a hearing room to be later designated. offered. , , . - . radio-phonograph-tape player combina­ MC 61592 Sub 280, Jenkins Truck Line, Inc., 2 The Issuer’s failure to terminate the now being assigned hearing Apr. 2, 1973 sale of shares after the expiration of 45 tions (of the types provided for in item (1 day), at Chicago, 111., in a hearing room days after the commencement of the 685.30 of the Tariff Schedules of the to be later designated. offering. . . _ . . TJnited States) produced by said firm are MC 61231 Sub 68, Ace Lines, Inc., now being 3. The Issuer s failure to return all being imported into the United States in assigned hearing, Apr. 4, 1973 (3 days), at funds in full, since all 250,000 shares were Æuch increased quantities as to cause, of Chicago, 111,, in a hearing room to be later not sold within the 45-day offering threaten to cause, the unemployment or designated. MC 114211 Sub 160, Warren Transport, Inc., period; and underemployment of a significant num­ ber or proportion of the workers of such continued to Feb. 26,1973, at the offices of 4. The contingent liability arising the Interstate Commerce Commission, from the sale of 157,268 shares of the Is­ firm or an appropriate subdivision Washington, D.C. suer’s stock in violation of section 5 of thereof. MC—124606 Sub 2, Ford Truck Line, Inc., now the Securities Act of 1933. The optional public hearing afforded assigned Feb. 20, 1973, at Nashville, Tenn., B. The terms and conditions of Regu­ by law lias not been requested by the is postponed indefinitely. lation A had not been complied with in petitioners. Any other party showing a MC—F—11651, LaPorte Transit Co., Inc.— pur­ proper interest in the subject matter of chase— Cooper Cartage, now being assigned that: the investigation may request a hearing, hearing Apr. 9, 1973 (1 week), at Chicago, 1. The notification failed to disclose provided such request is filed on or be­ 111., in a hearing room to be later that approximately 157,268 Shares of the fore February 23,1973. designated. Issuer were sold prior to the clearance MC 51146 Sub 268, Schneider Transport, Inc., The petition filed in this case is avail­ now Assigned continued hearing Mar. 26, date of the offering, in addition to the able for inspection at the Office of the 50,000 shares which were disclosed in 1973, at Chicago, HI. is advanced to Mar. 12, Secretary, UJS. Tariff Commission, 1973, will be held in room 1086A, Everett Item 9 as being sold prior to the clear­ Eighth and F Streets, NW., Washington, McKinley Dirksen Building, 219 South ance date; and D.C., and at the New York City office of Dearborn Street, Chicago, 111. 2. The Issuer failed to file a report on the Tariff Commission located in room MC—123048 Sub 226, Diamond Transporta­ Form 2-A within 30 days after the end 437 of the customhouse. tion System, Inc., now assigned Feb. 28, of each 6-month period following the 1973, at Washingtoh, D.C„ is canceled and date of the original offering circular. By order of. the Commission. transferred to modified procedure. MC 108136 Sub 15, Valley Cab Co., Inc., C. The offering was made in violation Issued February 8, 1973. now being assigned hearing Mar. 19, 1973 of section 17 of the Securities Act of (3 days) , at Hartford, Conn., in a hearing 1933. K e n n e t h R . M a s o n , Secretary. room to be later designated. III. Issuer having consented to a AB 5 Sub 52, Cleveland, Cincinnati, Chicago, permanent suspension order without [FR Doc.73-2839 Filed 2-12-73;8:45 am] and St. Louis Railway Co.; and George P. admitting or denying any of the allega­ Baker, Richard C. Bond, Jervis Langdon, Jr., anrt Willard Wirtz, trustees of the tions contained in the temporary suspen­ INTERSTATE COMMERCE property of Penn Central Transportation sion order dated August 17, 1972, an COMMISSION Co., debtor, abandonment between Hills­ earlier request for a hearing having been boro and Litchfield, Montgomery County, [Notice 178] canceled and no other request for a 111., now being assigned Apr. 9, 1973 (2 hearing having been made within 30 ASSIGNMENT OF HEARINGS days), at Litchfield, HI., in a hearing room days after the entry of an order tem­ to be later designated. porarily suspending the exemption of F e b r u a r y 8, 1973. MC 112617 Sub 299, Liquid Transporters, Inc., Issuer under Regulation A, the Com­ Cases assigned for hearing, postpone­ now being assigned hearing Apr. 16, 1973 mission finds that it is in the public inter­ ment, cancellation, or oral argument ap­ (2 days), at Louisville, Ky., in a hearing est and for the protection of investors pear below and will be published only room to lie later designated. once. This list contains prospective as­ MC 109014 Sub 6, Great Southern Coaches, that the exemption of Issuer be perma­ Inc., now being assigned Apr. 11, 1973 (3 nently suspended, therefore, signments only and does «not include days), at St. Louis, Mo., in a hearing room It is ordered, Pursuant to Rule 261 of cases previously assigned hearing dates. to be later designated. the general rules and regulations under The hearings will be on the issues as MC 29120 Sub 131, All-American Transport, the Securities Act of 1933, that the ex­ presently reflected in the official docket Inc., now being assigned Apr. 16, 1973 (1 emption of School Bus Airlines of Amer­ of the Commission. An attempt will be week), at St. Louis, Mo., in a hearing room ica, Inc., under Regulation A be, and it made to publish notices of cancellation to be later designated. hereby is, permanently suspended. of hearings as promptly as possible, but AB-5 Sub 49, George P. Baker, Richard C. interested parties should take appropri­ Bond, Jervis Langdon, Jr., and Willard By the Commission. Wirtz, trustees of the Penn Central Trans­ ate steps to insure that they are notified portation Co., debtor, abandonment New of cancellation or postponements of R onald F . H u n t , Milford and Canaan, Litchfield County, Secretary. hearings in which they are interested. Conn., now being assigned hearing Mar. 22, No amendments will be entertained after 1973 <2 days), at New Milford, Conn., in a [Filed Doc.73-2783 Filed 2-12-73;8:45 am] the date of this publication. hearing room to be later designated. MC-F-11487, Auclair Transportation, Inc.— I & S No. 8814 Sub-1, general Increase, tbe control and merger—Paul V. Adams Truck­ t a r if f c o m m is s io n Alaska Railroad, I & S No. 8814 Sub 2, ing, Inc., MC 9429 Sub 6, Paul V. Adams Increased rates and charges from and to Trucking, Inc., MC-F-11552, Auclair Trans­ [TEA-W-178] Alaska, now being assigned pre-hearing portation, Inc.—purchase (portion) — LYNCH CORP. conference Feb. 14, 1973, at the offices of Bonded Trucking & Rigging, Inc., FD the Interstate Commerce Commission, 27182, Auclair Transportation, Inc., notes, Workers’ Petition for a Determination; Washington, D.C. now being assigned hearing Mar. 26, 1973 Investigation I & S No. 8809, switching charges at Peoria (3 days), at Boston, Mass., in a hearing or Pekin, 111., now assigned Mar. 5, 1973, room to be later designated. J?asis of a Petition filed undei at Chicago, 111., is canceled. MC 59124 Sub 16, Maiers Motor Freight Co., sion^P.^®t(a)(2) of the Trade Expan- I & S M 26509, general increases, Jan. 1973, now being assigned hearing Apr. 9, 1973 (2 wor-t^ 0*1962, on behalf of the former Pacific Northwest Territory, now being days), at Louisville, Ky., in a hearing room the Symphonic Electronic assigned Mar. 9, 1973, at Seattle, Wash., to be later designated.

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 4370 NOTICES

MC 112617 Sub 300, Liquid Transporters, Inc., Md., Boston, Mass., New York, N.Y., Nor­ section 17(8) of the Interstate Commerce and MC 117344 Sub 221, The Maxwell Co., folk, Va., Philadelphia, Pa., Richmond, Act, the filing of such a petition will post­ now being assigned hearing Apr. 11,1973 (3 Va., and points grouped therewith, to days), at Louisville, Ky., in a hearing room pone the effective date of the order in to be later designated. points in official territory, including that proceeding pending its disposition. AB-5 Sub 94, George P. Baker, Richard C. northern Illinois and southern Wiscon­ The matters relied upon by petitioners Bond, Jervis Langdon, Jr., and Willard sin. must be specified in their petitions with Wirtz, trustees of the property of Penn Grounds for relief—Port equalization. particularity. Central Transportatibn Co., debtor, aban­ Tariffs—Traffic Executive Association- donment between Zionsville and Lebanon, Eastern Railroads, Agent, tariff I.C.C. C- No. MC-FC-73974. By order entered Boone County, Ind., now being assigned 948, and supplement 1 thereto. Rates are November 10, 1972, the Motor Carrier hearing Apr. 19,1973 (2 days), at Indianap­ published to become effective on March Board approved the transfer to Trans­ olis, Ind., in a hearing room to be later 24,1973. port'Express, Inc., Holly, Colo., of the designated. operating rights set forth in Certificates AB-5 Sub 70, George P. Baker, Richard C. FSA No. 42620—Joint Water-Rail Con­ Nos. MC-107799 (Sub-No. 4), and MC- Bond, Jervis Langdon, Jr., and Willard tainer Rates—Mitsui O.S.K. Lines, Ltd. 107799 (Sub-No. 6), issued by the Com­ Wirtz, trustees of the property of Penn Filed by Mitsui O.S.K. Lines, Ltd. (No. 4) mission October 22, 1968, and Decem­ Central Transportation Co., debtor, aban­ (M.O.L. Series), for itself and interested donment between Uniontown and South ber 2,1969, respectively, to J. O. Ringgen- Uniontown, Payette County, Pa., now as­ rail carriers. Rates on general commodi­ berg, Inc., Dodge City, Kans., authoriz­ signed Feb. 12, 1973, at Uniontown, Pa., is ties, between ports in Hong Kong, Japan, ing the transportation of: Anhydrous canceled. and Korea, on the one hand, and rail sta­ ammonia, from specified points in Kan­ MC—52022 Sub 6, Santini Brothers, Inc., now tions on the U.S. Atlantic and Gulf sea­ sas, Texas, Nebraska, and Iowa, to points being assigned hearing Apr. 10, 1973 (3 board, on the other. in Colorado, Wyoming, Texas, Okla­ days), at Tallahassee, Fla., in a hearing Grounds for relief—Water competition. homa, Missouri, Nebraska, Iowa, Kansas, room to be later designated. South Dakota, Illinois, Minnesota, and ggregate of ntermediates [ seal] R obert L. O sw ald , A - -I North Dakota. Grady L. Fox, 222 Ama­ Secretary. FSA No. 42618—Carbolic Acid rillo Building, Amarillo, Tex. 79101, at­ torney for applicants. [FR Doc.73-2835 Filed 2-12-73; 8:45 am] (Phenol) from Points in Louisiana and Texas. Filed by Southwestern Freight No. MC-FC-73975. By order of Novem­ Bureau, Agent (No. B-381), for inter­ ber 13, 1972, the Motor Carrier Board FOURTH SECTION APPLICATIONS ested rail carriers. Rates on acid, car­ approved the transfer to Pat’s Transfer, FOR RELIEF bolic (phenol), in tank car loads, as Inc., Hershey, Nebr., of Certificate No. F ebruary 8, 1973. described in the application, from speci­ MC-18352 issued to Howard McConnell, An application, as summarized below, fied points in Louisiana and Texas, to Hershey, Nebr., authorizing the trans­ has been filed requesting relief from the East St. Louis, 111., and St. Louis, Mo. portation of: Commodities of a general requirements of section 4 of the Inter­ Grounds for relief—Maintenance of commodity nature, between specified state Commerce Act to permit common depressed rates without use of such points and areas in Nebraska, Colorado, rates as factors in constructing combi­ Iowa, and Wyoming. Robert E. Roeder, carriers named or described in the ap­ nation rates. plication to maintain higher rates and attorney, Post Office Box 908, North charges at intermediate points than those Tariffs—Supplements 29 and 170 to Platte, NE 69101. sought to be established at more distant Southwestern Freight Bureau, Agent, tariffs I.C.C. 5044 and 4899. Rates are No. MC-FC-74021. By order of Novem­ points. ber 22, 1972, the Motor Carrier Board Protests to the granting of an appli­ published to become effective on March 14, 1973. approved the transfer to Bob’s Delivery cation must be prepared in accordance Service, Inc., Santa Fe Springs, Calif., of with Rule 1100.40 of the general rules of By the Commission. Certificate of Registration No. MC- practice (49 CFR 1100.40) and filed on, [ seal] R obert L. O sw ald, 120590 (Sub-No. 1), issued July 23, 1968, or before February 28, 1973. Secretary. to Mildred C. O’Donell, doing business as FSA No. 42617—Carbolic Acid Bob’s Delivery Service, Los Angeles, (.Phenol) from Points in Louisiana and [FR Doc.73-2837 Filed 2-12-73;8:45 am] Calif., evidencing a right to engage in Texas. Filed by Southwestern Freight transportation in interstate commerce as Bureau, Agent (No. R-380), for inter­ described in certificate granted in deci­ ested rail carriers. Rates on acid, carbolic [Notice 208] sion No. 60069, dated May 9, 1960, trans­ (phenol), in tank car loads, as described MOTOR CARRIER BOARD TRANSFER ferred and reissued pursuant to decision in the application, from specified points PROCEEDINGS No. 73016 dated September 6, 1967, by in Louisiana and Texas, to East St. Louis, Synopses of orders entered by the Mo­ Public Utilities Commission of Califor­ HI., and St. Louis, Mo. tor Carrier Board of the Commission pur­ nia. Donald Murchison, 9454 Wilshire Grounds for relief—Market competi­ suant to sections 212(b), 206(a), 211, Boulevard, Suite 400, Glendale Federal tion. 312(b), and 410(g) of the Interstate Building, Beverly Hills, CA 90212, attor­ Tariffs—Supplements 29 and 170 to Commerce Act, and rules and regula­ ney for applicants. Southwestern Freight Bureau, Agent, tions prescribed thereunder (49 CFR Part No. MC-FC-74026. By order of Novem­ tariffs I.C.C. 5044 and 4899. Rates are 1132), appear below: ber 9, 1972, the Motor Carrier Board ap­ published to become effective on March Each application (except as otherwise proved the transfer to Dressing Trans­ 14,1973. specifically noted) filed after March 27, port, Inc., Wilson, N.Y., of the operating FSA No. 42619—Carbon Gas or Oil 1972, contains a statement by applicants fights in Permit No. MC-135124 (Sub-No. Blacks to Points in Official Territory. that there will be no significant effect on 1), issued March 23, 1972, to Charles Filed by Traffic Executive Association- the quality of the human environment Murray, Freemont, Ohio, authorizing the Eastern Railroads, Agent (E.R. No. 3031), resulting from approval of the applica- - transportation of various commodities for interested rail carriers. Rates on tion. As provided in the Commission’s from and to points in New York, New blacks (carbon gas or oil blacks), in mul­ special rules of practice any interested Hampshire, Massachusetts, Connecticut, tiple wall paper bags, in boxcars, as de­ person may file a petition seeking recon­ Pennsylvania,' New Jersey, Maryland, scribed in the application, from North sideration of the following numbered Ohio, Michigan, Illinois, Florida, Georgia» Atlantic ports of Albany, N.Y., Baltimore, proceedings March 5, 1973. Pursuant to South Carolina, Maine, Vermont, Rhode

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 NOTICES 4371

Island, West Virginia, Kentucky, Wiscon­ November .9, 1972, the Motor Carrier tween points in Alameda, Contra Costa, sin, North Carolina, and the District of Board approved the transfer to Leo Marin, San Francisco, San Mateo, Santa Columbia. Ronald W. Malin, Bankers Montgomery and Norma Montgomery, Clara, and Solano Countries, Calif., with Trust of Jamestown Building, James­ doing business as A -l Montgomery Van certain specified restrictions. Alan F. town, N.Y. 14701, attorney for applicants. Lines, Vallejo, Calif., of the operating Wohlstetter, 1700 K Street NW., Wash­ No. MC-PC—74030.1 By order entered rights set forth in Certificate No. MC- 127360 (Sub-No. 2), issued February 12, ington DC 20006, attorney for applicants. i Through inadvertence the above-num­ 1970, to John W. Roy, Jr., doing business as American Moving & Storage Co., [ s e a l ] R o b e r t L. O s w a l d , bered proceedings was not published in the Secretary. November 29, 1972 F e d e r a l R e g is t e r as in di­ Oakland, Calif., authorizing the trans­ cated in the orders. portation of used household goods, be­ ]FR Doc.73-.2B36 Filed 2-12-73;8:45 am]

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 4372 FEDERAL REGISTER

CUMULATIVE LIST OF PARTS AFFECTED— FEBRUARY

The following numerical guide is a list of parts of each title of the Code of Federal Regulations affected by documents published to date during February.

3 CFR Page 9 CFR Page 15 C F R Page 76______3309, 3397, 4313 P r o p o s e d R u l e s : P roclamations : 78______3397 3279 (amended by EO 11703>_ 3579 7 _____ 82______3585, 4314 30___ (Superseded In part by OI 307______3189 Reg. 1, Rev. 5, Admt. 53) _ 4259 350______3189 16 C F R 4186 ______— 3503 355______— 3189 13______------3398-3400, 3957, 3958, 4245 4187 ______3577 381______3189 E x e c u t iv e O r d e r : 445______3038 17 C F R 11703...... ,...... — 3579 447______3038 200______------35 90, 3591, 3959 240______P ro p o se d R u l e s : ------3591, 3902,4315 241 4 CFR 113______3987 331...... - 4237 270______307______3988 275______381______3988 5 CFR P r o p o s e d R u l e s : 10 CFR 1 ____ 213...... 3037, 3187, 3584, 4313 2______3398 352...... 3390 230— — ------4353 50______3955 240— ______3100, 3339, 4353 73______3038 6 CFR 150______3039 1 8 C F R 130____ I_...... — 3187, 4238 P ro p o se d R u l e s : 1______M kS» ______4245 P r o po sed R u l e s : 30______4351 2 ______— ...... 3401 130...... - 3202 40______4351 3______3401, 4245 50______3073, 3334 1 1 ______■ ______3401 7 CFR 70______3075, 3077,4351 32______— ______- ______- ______3401 73______3080, 3082 33______- ______- ______3401 2______3951 34______■ - _ 3401 51______- ______3390 140______3336 170______4272 35______3401 54______3188 36______■'■■■ 3401 70______3188 12 CFR 45______.... . 3401 301______3393, 3396 211______3585 101______. 4247 319______3603, 3604 584______3039 141______4248 722______3951 701______3586 159...... 3401 724—______...______3293, 3296 721______3587 3 0 1 ______4248 726__ *______3298 260 _____ 4245r 4249 857___ 3604 P r o po sed R u l e s : 306______3591 905______3396 546...... 3527 907______3037, 3604 563______3527 P roposed R u l e s : 910______3189, 3298, 3954 563b______3527 35______4275 959______4239 571______3527 1049______3299 19 CFR 1822______3954 13 CFR 6______3595 1890s______3955 P r o po sed R u l e s : 22______3192 121______3413 P roposed R u l e s : P r o p o se d R u l e s : _____ 3334 14 CFR 1_____ 52______3195 12______4261 271______3988 37— ______3587 711______3986 39______3190, 3587, 4333 20 CFR ill 780______;______3071 43______3587 238______3596 929______^______3985 61______3156 _ 3596,3597 71______3040, 404______980______4261 405..... ¿2. 3597 1036...... 3064 3190, 3505, 3506, 3588, 4240, 4241, 410______3597 1062______4343 4334,4335 4-9.9. — 3597 1079______4346 73______3191, 3506, 3589 1103______3069 75______3589, 4241 P roposed R u l e s : 91______3156 . 1421______3607 401 _ 3608 1464______4346 93.______4335 3609 1700______3988 95...... 3310, 3311 404 1816______3516 97______3589 1890______3516 228______4241 21 CFR 3 3401 1890s______3988 P r o p o se d R u l e s : 3959 65______3410 37 8 CFR 71______3200, 128b___ — _ 3402, 3961 4249 204______3187 3201, 3525, 3610, 3611, 4270, 4348- 13ft 4350 135a ______3040 238______3188 141 4046 35a------4318 299______3188 207. 3995 3192, 3402, 4250, 4251, 4318 316a______— 3188 212. 3995 135c 499______3188 378. 3995 135e____ 3309,3402

FEDERAL REGISTER, VOL. 38, NO. 29— TUESDAY, FEBRUARY 13, 1973 FEDERAL REGISTER 4373

21 CFR— Continued Page 32A CFR—Continued Page 43 CFR Page . 3402, 4251 P roposed R u l e s: 18—------— ------3385 U i ______4318 C h .X : P u b l ic L and O r d e r s : L " ______- 3507 OI Reg. 1______3600, 3985 1 AQr ______— 4318 5320______3194 . 3402,4251 33 CFR 5328 ______3601 117______3509 45 CFR 27^ ______3598, 4319 127______3409, 3509 2QS ______v.3403, 3598 185_ 3450 P roposed R u l e s : Proposed R u l e s : 1100 3981 1 __1______3523 117______4269 1105 3511 1« ______4347 401______3087 P r o p o se d R u l e s : 4347 1 9 ______35 CFR 190— ------3228 141------4348 233—______3200 295______3989, 3990 61______3963 301______3195 101______3963 46 CFR 123______3963 146_____ 3981 22 CFR 4252 36 CFR 548______,______3982 207------_____ 3507 212______- ______3509 P r o po sed R u l e s : P roposed R ules : 531 3412 24 CFR 536 3412 1914______3404, 3405, 3581, 3582 327____ 3051 1915______3583 37 CFR 47 CFR 1934______. _ _ 3313 201 ______— 3045 1______£______3982 26 CFR 202 _ 3045 73______3312, 3388, 3983, 4331 1 ______;______3040, 38 CFR P ro p o se d R u l e s : 3189, 3598, 4253, 4255, 4257-4259 P ro po sed R u l e s : 1 ______3336 3 ______3314 3______3202 2 ______4353 53______— 3314, 4324 63___ —______3995 147______i______3040 39 CFR 73______3337, 3998, 4353 301______4258 262______3599 89______—______3338, 4353 Proposed R u le s: 3001—______I- 3510, 4324 91—______3338 93_____ 3338 l___l______3334, 3985, 4337, 4342 40 CFR 28 CFR 52______— 3599 49 CFR 180—______3045, 3511, 4330 17____ 3566 1______3601 P ro p o se d R u l e s : 171—______—— ______4332 29 CFR 51 ______3083 174 ______4332 175 ______4332 70. . . — . 3192 52 ___ 3085, 3526 102__ 3961 180— ______4275 393______^______4332 1910.. .. 3598 201______3086 395______3984 1952__ 3041 202______3087 571______3047, 3331, 3601 1003______3389 30 CFR 41 CFR 1033______3332, 3333, 3512-3514 1150— ______3389 75______3406, 3407 15-1______3964 60-40______3192 1206 _____ 3602 31 CFR 60-50______3511 1207 ______3602 101-4______3328 1240______3602 !03______3508 1249______*___ 3602 316-______3446 101-26______3964 101-42______3046 1311 ,______—_ 3389 32 CFR 101-43______3046 P r o po sed R u l e s : 101-44______3046 100 172—______4270 .. 3043 101-45______3047 173______4270 940- 3962 1641____ i n n i 114-50______3965 178______4270 3599 391______3364 P r o po sed R u l e s : Proposed R ules 393______3412 3-4___ 3072 641__ _ 571______3201 3051 60-2______3071 1460...... 3413 42 CFR 50 CFR 32A CFR 28------3047, 3515, 3603 P r o po sed R u l e s : 33------——______3047, 3390 Ch.X: 37______4263, 4268 OI Reg. 1__ 3407, 4259 51a______3991 P ro po sed R u l e s : Ch. XI______3599 200______3991 240------i ------3517

FEDERAL REGISTER PAGES AND DATES— FEBRUARY Pages D ate Pages D ate 3031-3179______Feb. 1 3571-3943______Feb. 8 3181-3285______2 3945-4229______9 3287-3377______5 3379-3496____ 6 4231-4306______12 3497-3570______7 4307-4373______13

FEDERAL REGISTER, VOL. 38, NO . 29— TUESDAY, FEBRUARY 13, 1973 MICROFILM EDITION FEDERAL REGISTER 35mm MICROFILM

Complete Set 1936— 71, 202 Rolls $1,439

Voi. Year Price Voi. Year Price Voi. Year Price

1 1936 $7 13 1948 $28 25 1960 $49 2 1937 12 14 1949 22 26 1961 44 3 1938 8 15 1950 28 27 1962 46 4 1939 14 16 1951 44 28 1963 50 5 1940 14 17 1952 41 29 1964 54 6 1941 21 18 1953 30 30 1965 58 7 1942 37 19 1954 37 31 1966 60 8 1943 53 20 1955 41 32 1967 69 9 1944 42 21 1956 42 33 1968 55 10 1945 47 22 1957 41 34 1969 62 11 1946 47 23 1958 41 35 1970 59 12 1947 24 24 1959 42 36 1971 97

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