FR-1995-07-10.pdf - GovInfo

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MondayJuly 10, 1995Vol. 60 No. 131

Pages 35461–34690

7–10–95

Briefings on How To Use the Federal RegisterFor information on briefing in Washington, DC, seeannouncement on the inside cover of this issue.

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2

Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995

WASHINGTON, DCWHEN: July 27 at 9:00 amWHERE: Office of the Federal Register Conference

Room, 800 North Capitol Street NW.,Washington, DC (3 blocks north of UnionStation Metro)

RESERVATIONS: 202–523–4538

Contents Federal Register

III

Vol. 60, No. 131

Monday, July 10, 1995

Agriculture DepartmentSee Food and Consumer ServiceSee Food Safety and Inspection ServiceSee Forest Service

Air Force DepartmentNOTICESMeetings:

Scientific Advisory Board, 35555

Commerce DepartmentSee International Trade AdministrationSee National Oceanic and Atmospheric Administration

Comptroller of the CurrencyRULESFederal Deposit Insurance Act:

Safety and soundness standards, 35674–35682PROPOSED RULESFederal Deposit Insurance Act:

Safety and soundness standards; guidelines, 35688–35690

Copyright Office, Library of CongressPROPOSED RULESUruguay Round Agreements Act (URAA):

Copyright restoration; filing notices of intent to enforceprocedures and registering claims, 35522–35531

Defense DepartmentSee Air Force DepartmentRULESAcquisition regulations:

Small business and small disadvantaged businessconcerns, 35668

NOTICESBase closure communities revitalization and community

assistance:Public participation; technical assistance, 35553–35555

Comprehensive small business subcontracting plans; testprogram for negotiation, 35669–35671

Senior Executive Service:Performance Review Boards; membership, 35555

Education DepartmentNOTICESMeetings:

National Assessment Governing Board, 35555–35556

Employment and Training AdministrationNOTICESJob Training Partnership Act:

Center for Employment Training (CET) job training modelreplication; technical assistance, 35564–35566

Energy DepartmentSee Federal Energy Regulatory CommissionSee Western Area Power Administration

Environmental Protection AgencyRULESClean Air Act:

Reformulated gasoline program; opt-out requests—New York et al., 35488–35492

Hazardous waste:Reportable quantity adjustments

Correction, 35492PROPOSED RULESAir quality implementation plans; approval and

promulgation; various States:Ohio, 35531–35538

Clean Air Act:State operating permits program—

California, 35538–35544NOTICESHazardous waste:

Land disposal restrictions; exemptions—Great Lakes Chemical Corp., 35558

Meetings:Border Environment Cooperation Commission, 35558

Executive Office of the PresidentSee Presidential Documents

Federal Communications CommissionRULESCommon carriers, etc.:

Maritime communications—International public coast stations; reclassification as

non-dominant common carriers and reclassificationof public correspondence channels VHF bandrange, 35507–35512

Organization, functions, and authority delegations:Wireless Telecommunications Bureau et al., 35503–35507

Radio stations; table of assignments:California, 35512North Dakota, 35512Texas, 35512–35513

PROPOSED RULESCommon carrier services:

Video dialtone service; costs and jurisdictionalseparations for local exchange carriers, 35548

Radio stations; table of assignments:Wisconsin, 35548–35549

Federal Deposit Insurance CorporationRULESFederal Deposit Insurance Act:

Safety and soundness standards, 35674–35680, 35683–35686

Receivership rules:National depositor preference, 35487–35488

PROPOSED RULESFederal Deposit Insurance Act:

Safety and soundness standards; guidelines, 35688–35690NOTICESMeetings; Sunshine Act, 35599

Federal Emergency Management AgencyNOTICESDisaster and emergency areas:

Kentucky, 35558–35559Virginia, 35559

IV Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Contents

Federal Energy Regulatory CommissionPROPOSED RULESNatural Gas Policy Act:

Electronic Bulletin Board; standardsFilings, 35522

NOTICESMeetings; Sunshine Act, 35598–35599

Federal Maritime CommissionNOTICESFreight forwarder licenses:

Delmar International, Inc., et al., 35559

Federal Reserve SystemRULESFederal Deposit Insurance Act:



Safety and soundness standards; guidelines, 35688–35690NOTICESApplications, hearings, determinations, etc.:

McWilliams, Rebecca C., 35560SunTrust Banks, Inc., et al., 35560

Food and Consumer ServiceNOTICESChild nutrition programs:

National school lunch, special milk, and school breakfastprograms—

National average payments/maximum reimbursementrates; correction, 35601

Food Safety and Inspection ServiceNOTICESMeetings:

Microbiological Criteria for Foods National AdvisoryCommittee, 35550

Forest ServiceNOTICESMeetings:

Oregon Coast Provincial Advisory Committee, 35550

Health and Human Services DepartmentSee Health Care Financing Administration

Health Care Financing AdministrationRULESMedicaid:

Third party liability cost-effectiveness waivers, 35498–35503

Medicare:Durable medical equipment and orthotic and prosthetic

devices; payment, 35492–35498PROPOSED RULESMedicare:

Telephone and electronic requests for review of part Binitial claim determinations, 35544–35548

Interior DepartmentSee Land Management BureauSee National Park Service

Internal Revenue ServiceNOTICESMotor fuel; approved fuel distribution terminals; control

number issuance, 35579–35597

International Trade AdministrationNOTICESAntidumping:

Ferrovanadium and nitrided vanadium from—Russian Federation, 35550–35551

Silicon metal from—Argentina, 35551–35552

Applications, hearings, determinations, etc.:University of—

Nebraska et al., 35552

International Trade CommissionNOTICESImport investigations:

Large newspaper printing presses and components,assembled or unassembled from—

Germany and Japan, 35564Pasta from—

Italy and Turkey, 35563–35564

Interstate Commerce CommissionNOTICESMeetings; Sunshine Act, 35599

Justice DepartmentSee Parole Commission

Labor DepartmentSee Employment and Training Administration

Land Management BureauNOTICESCoal leases, exploration licenses, etc.:

Montana, 35560–35561Environmental statements; availability, etc.:

Phoenix and Safford District Resource ManagementPlans, AZ, 35561

Warm Springs Project; Iron counties et al., UT et al.,35561–35563

Library of CongressSee Copyright Office, Library of Congress

National Aeronautics and Space AdministrationNOTICESMeetings:

Space Science Advisory Committee, 35566

National Oceanic and Atmospheric AdministrationRULESFishery conservation and management:

Atlantic sea scallop and Northeast multispecies, 35513–35521

National Park ServiceNOTICESMeetings:

Delta Region Preservation Commission, 35563

Nuclear Regulatory CommissionNOTICESAbnormal occurrence reports:

Quarterly reports to Congress, 35566–35570Environmental statements; availability, etc.:

Commonwealth Edison Co., 35570–35571Meetings:

Reactor Safeguards Advisory Committee, 35571Petitions; Director’s decisions:

Babcock & Wilcox Co., 35571–35574

VFederal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Contents

Parole CommissionNOTICESMeetings; Sunshine Act, 35599–35600

Personnel Management OfficeRULESChild support and/or alimony; garnishment orders

processing:List of designated officials, 35468–35487

Employment:Recruitment and relocation bonuses and retention

allowancesCorrection, 35601

Prevailing rate systems, 35467–35468NOTICESAgency information collection activities under OMB

review, 35574

Presidential DocumentsADMINISTRATIVE ORDERSBosnia; emergency military assistance in support of Rapid

Reaction Force under the Foreign Assistance Act of1961 (Presidential Determination No. 95-29 of

June 28, 1995), 35465Haiti, police force; drawdown of commodities and services

from the Departments of Defense, Justice, Treasury, andState to support (Presidential Determination

No. 95-28 of June 23, 1995), 35463Jordan; certification under section 130(c) of the

International Security and Development CooperationAct of 1985 (Presidential Determination No. 95-27 of

June 23, 1995), 35451–35462

Railroad Retirement BoardNOTICESAgency information collection activities under OMB

review, 35574–35575

Research and Special Programs AdministrationPROPOSED RULESPipeline safety:

Hazardous liquid transportation—Areas unusually sensitive to environmental damage;

workshop, 35549

Securities and Exchange CommissionRULESSecurities:

Regulation S; agency views concerning problematicpractices; comment request, 35663–35666

PROPOSED RULESSecurities:

Annual reports delivered to investors; use of abbreviatedfinancial statements, 35604–35633

California state securities law; exemption fromregistration requirements for limited offerings up to$5 million, 35638–35642

Equity swaps and other derivative securities reporting;shorter holding period requirements, 35645–35648

Executive and director compensation disclosure;streamlining and consolidation, 35633–35638

Issuers contemplating initial public offerings;solicitations of investor interest prior to filingregistration statement, 35648–35656

Significant business acquisitions; disclosure requirementsstreamlining and quarterly reporting requirementsestablishment for unregistered equity sales, 35656–35662

Small issuers; relief from reporting requirements, 35642–35645

NOTICESSelf-regulatory organizations; proposed rule changes:

National Securities Clearing Corp. et al., 35575–35576

Tennessee Valley AuthorityNOTICESEnvironmental statements; availability, etc.:

Lamar County water supply development, AL, 35576–35577

Watts Bar Nuclear Plant (Units 1 and 2); adoption of NRCstatement, 35577–35579

Thrift Supervision OfficeRULESFederal Deposit Insurance Act:



Safety and soundness standards; guidelines, 35688–35690

Transportation DepartmentSee Research and Special Programs Administration

Treasury DepartmentSee Comptroller of the CurrencySee Internal Revenue ServiceSee Thrift Supervision Office

Western Area Power AdministrationNOTICESPower rate adjustments:

Central Valley Project, CA, 35556–35557

Separate Parts In This Issue

Part IISecurities and Exchange Commission, 35604–35666

Part IIIDepartment of Defense, 35668–35671

Part IVComptroller of the Currency, Federal Deposit Insurance

Corporation, Federal Reserve System, Office of ThriftSupervision, 35674–35690

Reader AidsAdditional information, including a list of public laws,telephone numbers, and finding aids, appears in the ReaderAids section at the end of this issue.

Electronic Bulletin BoardFree Electronic Bulletin Board service for Public Lawnumbers, Federal Register finding aids, and a list ofdocuments on public inspection is available on 202–275–1538 or 275–0920.

CFR PARTS AFFECTED IN THIS ISSUE

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

VI Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Contents

3 CFRAdministrative Orders:Presidential Determinations:No. 95–27 of June 23,

1995 .............................35461No. 95–28 of June 23,

1995 .............................35463No. 95–29 of June 28,

1995 .............................35465

5 CFR532...................................35467575...................................35601581...................................35468

12 CFR30.....................................35674208...................................35674263...................................35674303...................................35674308...................................35674360...................................35674364...................................35674570...................................35674Proposed Rules:30.....................................35688208...................................35688364...................................35688570...................................35688

17 CFR231...................................35663Proposed Rules:210...................................35656228 (3

documents) ......35604,35633,35656

229 (2 documents) .........35604,35633

230 (5 documents) .........35604,35638, 35642, 35645, 35648

232...................................35648239 (2 documents) .........35604,

35656240 (3 documents) .........35604,

35633, 35642,249 (4 documents) .........35604,

35633, 35642, 35656260...................................35642

18 CFRProposed Rules:284...................................35522

37 CFRProposed Rules:201...................................35522202...................................35522

40 CFR80.....................................35488302...................................35492Proposed Rules:52 (2 documents) ...........35531,

3553570.....................................35538

42 CFR414...................................35492433...................................35498Proposed Rules:405...................................35544

47 CFR0.......................................355032.......................................3550763.....................................3550773 (3 documents) ............35512

80.....................................3550790.....................................35507Proposed Rules:32.....................................3554836.....................................3554873.....................................35548

48 CFR219...................................35668252...................................35668

49 CFRProposed Rules:195...................................35549

50 CFR650...................................35513651...................................35513

Presidential Documents

35461

Federal Register

Vol. 60, No. 131


Title 3—

The President

Presidential Determination No. 95–27 of June 23, 1995

Certification of Jordan Under Section 130(c) of theInternational Security and Development Cooperation Act of1985

Memorandum for the Secretary of State

Pursuant to section 130(c) of the International Security and DevelopmentCooperation Act of 1985 (Public Law 99–83), I hereby certify that Jordanis publicly committed to the recognition of Israel and to negotiate promptlyand directly with Israel under basic tenets of United Nations Security CouncilResolutions 242 and 338.

You are authorized and directed to report this certification, together withthe attached justification, to the Speaker of the House of Representativesand the Chairman of the Senate Foreign Relations Committee. You are furtherauthorized and directed to publish this determination, together with theattached justification, in the Federal Register.

œ–THE WHITE HOUSE,Washington, June 23, 1995.

Memorandum of Justification

The Government of Jordan has requested the purchase of six UH–60LBLACKHAWK utility helicopters and related supplies and support at a totalvalue of $87 million. These helicopters will be transferred to the Jordanianmilitary for intracountry military transportation requirements including trans-portation for its National Command Authority.

By signing a peace treaty with Israel October 26, 1994, Jordan has takena historic step to promote peace in the Middle East. However, the processof creating a lasting peace in the region did not end with the signingof the October 26 treaty. Rather, the Jordanians must continue negotiationswith Israel and other parties in the region to continue the peace process.These negotiations cannot take place absent the movement of King Husseinand other officials. These helicopters will be primarily used for VIP transport,for the King and other high-level officials, and for accompanying securitydetails. These BLACKHAWKs will replace comparable, older BLACKHAWKscurrently used for the King.

The International Security and Development Cooperation Act of 1985, PL99–83, Section 130(c) states: ‘‘Any notification made pursuant to section36(b) of the Arms Export Control Act with respect to a proposed saleto Jordan of United States advanced aircraft, new air defense systems, orother new advanced military weapons shall be accompanied by a Presidentialcertification of Jordan’s public commitment to the recognition of Israel andto negotiate promptly and directly with Israel under the basic tenets ofUnited Nations Security Council Resolutions 242 and 338.’’

35462 Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Presidential Documents

This requirement has been fulfilled by the October 26, 1994, Treaty ofPeace between the State of Israel and the Hashemite Kingdom of Jordan,which explicitly mentions the two United Nations resolutions in its preambleas the basis upon which the treaty has been negotiated: ‘‘Aiming at theachievement of a just, lasting and comprehensive peace in the Middle Eastbased on Security Council Resolutions 242 and 338 in all their aspects.’’Nonetheless this Section of Law remains in force. We intend to seek itsrepeal at the earliest opportunity.

[FR Doc 95–16921

Filed 7–6–95; 12:32 pm]

Billing code 4710–10–M


35463Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Presidential Documents


Drawdown of the Commodities and Services from the Inven-tory and Resources of the Departments of Defense, Justice,Treasury and State To Support Accelerated Training andEquipping of Haitian Police Forces

Memorandum for the Secretary of State, the Secretary of the Treasury,the Secretary of Defense, [and] the Attorney General

Pursuant to the authority vested in me by section 552(c)(2) of the ForeignAssistance Act of 1961, as amended, 22 U.S.C. 2348a(c)(2) (the ‘‘Act’’),I hereby determine that:

(1) as a result of an unseen emergency, the provision of assistance underChapter 6 of Part II of the Act in amounts in excess of funds otherwiseavailable for such assistance is important to the national interests of theUnited States; and

(2) such unforeseen emergency requires the immediate provision of assist-ance under Chapter 6 of Part II of the Act.I therefore direct the drawdown of commodities and services from the inven-tory and resources of the Departments of Defense, Justice, Treasury andState of an aggregate value not to exceed $7.0 million to support acceleratedtraining, equipping and deployment of Haitian police forces.

The Secretary of State is authorized and directed to report this determinationto the Congress and to arrange for its publication in the Federal Register.


[FR Doc. 95–16922

Filed 7–6–95; 12:33 pm]



35465Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Presidential Documents


Determination To Authorize the Furnishing of EmergencyMilitary Assistance in Support of the Rapid Reaction Forcein Bosnia Under Section 506(a)(1) of the Foreign AssistanceAct

Memorandum for the Secretary of State [and] the Secretary of Defense

Pursuant to the authority vested in me by section 506(a)(1) of the ForeignAssistance Act of 1961, as amended, 22 U.S.C. 2318(a)(1) (the ‘‘Act’’), Ihereby determine that:

(1) an unforeseen emergency exists which requires immediate militaryassistance to a foreign country or international organization; and

(2) the emergency requirement cannot be met under the authority of theArms Export Control Act or any other law except section 506 of the Act.Therefore, I hereby authorize the furnishing of up to $12,000,000 in defenseservices from the Department of Defense to provide immediate transportationsupport necessary to move the Rapid Reaction Force personnel and equip-ment to Bosnia.

The Secretary of State is authorized and directed to report this determinationto Congress and arrange for its publication in the Federal Register.


[FR Doc. 95–16923

Filed 7–6–95; 12:34 pm]


This section of the FEDERAL REGISTERcontains regulatory documents having generalapplicability and legal effect, most of whichare keyed to and codified in the Code ofFederal Regulations, which is published under50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold bythe Superintendent of Documents. Prices ofnew books are listed in the first FEDERALREGISTER issue of each week.

Rules and Regulations Federal Register

35467

Vol. 60, No. 131


OFFICE OF PERSONNELMANAGEMENT

5 CFR Part 532

RIN 3206–AG82

Prevailing Rate Systems; Abolishmentof Marquette, MI, NonappropriatedFund Wage Area

AGENCY: Office of PersonnelManagement.ACTION: Interim rule with request forcomments.

SUMMARY: The Office of PersonnelManagement is issuing interimregulations to abolish the Marquette, MI,nonappropriated fund (NAF) FederalWage System (FWS) wage area and addDickinson County, MI, and MarquetteCounty, MI, as areas of application tothe Lake, IL, NAF wage area for pay-setting purposes. No employee’s wagerate will be reduced as a result of thischange.DATES: This interim rule becomeseffective on July 10, 1995. Commentsmust be received by August 9, 1995.Employees paid rates from theMarquette, MI, NAF wage schedule willcontinue to be paid from that scheduleuntil their conversion to the Lake, IL,NAF wage schedule on October 21,1995, the normal effective date for newMarquette area wage schedules.ADDRESSES: Send or deliver commentsto Donald J. Winstead, AssistantDirector for Compensation Policy,Human Resources Systems Service, U.S.Office of Personnel Management, Room6H31, 1900 E Street NW., Washington,DC 20415.FOR FURTHER INFORMATION CONTACT:Paul Shields, (202) 606–2848.SUPPLEMENTARY INFORMATION: TheDepartment of Defense recommended tothe Office of Personnel Managementthat the Marquette, MI, NAF wage areabe abolished and that Dickinson County,

MI, and Marquette County, MI, be addedas areas of application to the Lake, IL,NAF wage area. With the scheduled1995 closing of the host installation, K.I.Sawyer Air Force Base (AFB), there willno longer be a local activity with thecapability to do the Marquette, MI,survey. There will, however, still beabout five NAF employees in DickinsonCounty and possibly a few NAFemployees in Marquette County. Theremaining three Marquette wage areaapplication counties, Chippewa andHoughton Counties, MI, and LangladeCounty, WI, have no NAF FWSemployees.

The provisions of 5 CFR 532.219 listthe following criteria for considerationwhen two or more counties are to becombined to constitute a single wagearea:

(1) Proximity of largest activity ineach county;

(2) Transportation facilities andcommuting patterns; and

(3) Similarities of the counties in:(i) Overall population;(ii) Private employment in major

industry categories; and(iii) Kinds and sizes of private

industrial establishments.These criteria are discussed in turn

below.Of the largest nearby activities with

NAF employees, K.I. Sawyer AFB,Marquette County, MI, is closest toGreat Lakes Naval Training Center, LakeCounty, IL. More distant are the 934thTAG MN/St. Paul International Airportand Selfridge Air National Guard Base.Distances from K.I. Sawyer AFB to thehost activities of the surrounding wageareas are as follows: Great Lakes NavalTraining Center, Lake County, IL, 561km (349 miles); 934th TAG MN/St. PaulInternational Airport, Hennepin County,MN, 697 km (433 miles); and SelfridgeAir National Guard Base, MacombCounty, MI, 786 km (488 miles). Theduty station of the NAF employees inDickinson County, MI—the IronMountain VA Medical Center—is alsocloser to Lake County, IL, than the othernearby NAF wage areas.

Considering transportation facilitiesfrom Marquette and Dickinson Counties,MI, the largest installations in the threesurrounding survey areas can all bereached by primary undivided roadsand Interstate highways. An analysis of1990 census commuting patterns dataindicates that no workers commute

between either Marquette County, MI, orDickinson County, MI, and any of thethree survey counties underconsideration.

In terms of similarities of the countiesin overall population, privateemployment, and kinds and sizes ofprivate industrial establishments,Marquette and Dickinson Counties aremost similar to Lake County.

In summary, consideration of thethree criteria (proximity, transportationfacilities and commuting patterns, andsimilarities of the counties) favors thedefinition of Dickinson and MarquetteCounties, MI, as areas of application tothe Lake, IL, NAF wage area.

The Federal Prevailing Rate AdvisoryCommittee reviewed thisrecommendation and by consensusrecommended approval.

Pursuant to 5 U.S.C. 553(b)(3)(B), Ifind that good cause exists for waivingthe general notice of proposedrulemaking. Also, pursuant to section553(d)(3) of title 5, United States Code,I find that good cause exists for makingthis rule effective in less than 30 days.The notice is being waived and theregulation is being made effective in lessthan 30 days because preparations forthe August 1995 Marquette, MI, NAFwage area survey must otherwise beginimmediately.

Regulatory Flexibility Act

I certify that these regulations will nothave a significant economic impact ona substantial number of small entitiesbecause they affect only Federalagencies and employees.

List of Subjects in 5 CFR Part 532

Administrative practice andprocedure, Freedom of information,Government employees, Reporting andrecordkeeping requirements, Wages.Office of Personnel Management.Lorraine A. Green,Deputy Director.

Accordingly, OPM is amending 5 CFRpart 532 as follows:

PART 532—PREVAILING RATESYSTEMS

1. The authority citation for part 532continues to read as follows:

Authority: 5 U.S.C. 5343, 5346; § 532.707also issued under 5 U.S.C. 552.

35468 Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Rules and Regulations

Appendix B to Subpart B of Part 532[Amended]

2. In Appendix B to subpart B, thelisting for the State of Michigan isamended by removing the entry forMarquette.

3. Appendix D to subpart B isamended by removing the wage area listfor Marquette, Michigan, and byrevising the list for Lake, Illinois, to readas follows:

Appendix D to Subpart B of Part 532—Nonappropriated Fund Wage andSurvey Areas

* * * * *

Illinois

* * * * *

Lake

Survey areaIllinois:

Lake

Area of application. Survey area plus:Illinois:

CookMichigan:

Dickinson (Effective date October 21,1995)

Marquette (Effective date October 21,1995)

Wisconsin:DaneMilwaukee

* * * * *

[FR Doc. 95–16815 Filed 7–7–95; 8:45 am]BILLING CODE 6325–01–M

5 CFR Part 581

RIN 3206–AG84

Processing Garnishment Orders forChild Support and/or Alimony

AGENCY: Office of PersonnelManagement.ACTION: Final rule.

SUMMARY: This document publishes thelist of designated officials responsiblefor facilitating the service of legalprocess on members of the UniformedServices and other Federal employees inthe Executive Branch.EFFECTIVE DATE: This amendment iseffective August 9, 1995.FOR FURTHER INFORMATION CONTACT:Murray M. Meeker, Attorney, Office ofthe General Counsel, (202) 606–1980.SUPPLEMENTARY INFORMATION: OnFebruary 27, 1995, the President signedExecutive Order No. 12953 entitled‘‘Actions Required of All Executive

Agencies to Facilitate Payment of ChildSupport.’’ In accordance with section302 of the Executive order, OPM isrequired to publish a list of officialsdesignated to assist in the service oflegal process in civil actions pursuant toorders of State courts to establishpaternity and to establish or to enforcesupport obligations by making Federalemployees and members of theUniformed Services available for serviceof process, regardless of the location ofthe employee’s workplace or of themember’s duty station.


I certify that these regulations will nothave a significant economic impact ona substantial number of small entitiesbecause their effects are limited toFederal employees.

E.O. 12866, Regulatory Review

This rule has been reviewed by theOffice of Management and Budget inaccordance with E.O. 12866.


Alimony, Child support, Governmentemployees, Wages.U.S. Office of Personnel Management.James B. King,Director.

Accordingly, OPM is amending 5 CFRpart 581 as follows:

PART 581—PROCESSINGGARNISHMENT ORDERS FOR CHILDSUPPORT AND/OR ALIMONY

1. The authority citation for part 581is revised to read as follows:

Authority: 15 U.S.C. 1673; 42 U.S.C. 659,661–662; E.O. 12105, 43 FR 59465, 3 CFR,1979 Comp., p. 262; E.O. 12953, 60 FR 11013.

2. Appendix B is added to part 581 asfollows:

Appendix B to Part 581—List of AgentsDesignated To Facilitate the Service ofLegal Process on Federal Employees

[The agents designated to accept legalprocess for the garnishment of theremuneration for employment due from theUnited States are listed in appendix A to part581. Appendix B to part 581 lists the agentsdesignated to assist in the service of legalprocess in civil actions pursuant to orders ofState courts to establish paternity and toestablish or to enforce support obligations bymaking Federal employees and members ofthe Uniformed Services available for serviceof process, regardless of the location of theemployee’s workplace or of the member’sduty station. Agents are listed in AppendixB only for those executive agencies where thedesignations differ from those found inappendix A to part 581.]

I. Departments

Department of Agriculture

Office of the SecretaryOffice of the Deputy SecretaryOffice of the Under SecretariesOffice of the Assistant SecretariesDirector, Executive Resources and Services

DivisionOffice of PersonnelRoom 334 W—Administration Bldg.14th St. and Independence Ave., SW.Washington, DC 20250(202) 720–6047

Office of Inspector General

Chief Counsel to the Inspector GeneralOffice of Inspector GeneralRoom 27 E—Administration Bldg.14th St. and Independence Ave., SW.Washington, DC 20250(202) 720–9110

Administration

Board of Contract AppealsChief Financial OfficerJudicial OfficerOffice of Administrative Law JudgesOffice of Budget and Program AnalysisOffice of Civil Rights EnforcementOffice of CommunicationsOffice of Congressional and

Intergovernmental RelationsOffice of the General CounselOffice of Information and Resources

ManagementOffice of OperationsOffice of PersonnelOffice of Small and Disadvantaged Business

UtilizationChief, Employment and Compensation

BranchOffice of Personnel—PODRoom 31 W—Administration Bldg.14th St. and Independence Ave., SWWashington, DC 20250–9630(202) 720–7797

Chief Economist

Office of Risk Assessment and Cost-BenefitAnalysis

World Agricultural Outlook BoardChief, Economics and Statistics Operations

BranchHuman Resources DivisionAgricultural Research ServiceRoom 1424—South Bldg.14th St. and Independence Ave., SWWashington, DC 20250(202) 720–7657

Farm and Foreign Agricultural Services

Consolidated Farm Service AgencyForeign Agricultural ServiceChief, Employee and Labor Relations BranchHuman Resources DivisionConsolidated Farm Service AgencyRoom 6732—South Bldg.PO Box 2415Washington, DC 20013(202) 720–5964

Federal Crop Insurance Corporation

Acting Chief, Labor Relations BranchFederal Crop Insurance CorporationConsolidated Farm Service AgencyRoom 6732—South Bldg.14th St. and Independence Ave., SW.Washington, DC 20250

35469Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Rules and Regulations

(202) 720–5964

Food, Nutrition, and Consumer Services

Food and Consumer Service

Senior Employee Relations SpecialistEmployee Relations DivisionFood and Consumer Service3101 Park Center Drive, Room 623Alexandria, VA 22302(703) 305–2374

Marketing and Regulatory Programs

Agricultural Marketing Service (Except foremployees of the Milk MarketingAdministration)

Chief, Employee Relations BranchAgricultural Marketing Service, PED, ERBRoom 1745—South Bldg.PO Box 96456Washington, DC 20090–6456(202) 720–5721

Agricultural Marketing Service

Milk Marketing Employees

Personnel Management SpecialistAgricultural Marketing Service, DARoom 2754—South Bldg.PO Box 96456Washington, DC 20090–6456(202) 720–7258

Animal and Plant Health Inspection Service

Grain Inspection, Packers and StockyardsAdministration

Chief, Personnel BranchAnimal and Plant Health Inspection Service,

HRD, HROButler Square West, 5th Floor100 N. 6th St.Minneapolis, MN 55403(612) 370–2107

Food Safety

Food Safety and Inspection Service

Chief, Classification and Organization BranchPersonnel DivisionFood Safety and Inspection ServiceRoom 3821—South Bldg.14th St. and Independence Ave., SW.Washington, DC 20250–3700(202) 720–6287

Rural Economic and CommunityDevelopment

Rural Housing and Community DevelopmentService

Rural Business and Cooperative DevelopmentService

Chief, Employee Information Systems BranchHuman Relations DivisionRural Housing and Community Development

Service501 School St., SW.Washington, DC 20250(202) 245–5573

Rural Utilities Service

Chief, Rural Utilities ServicePersonnel Operations BranchHuman Relations DivisionRural Housing and Community Development

ServiceRoom 4031—South Bldg.14th St. and Independence Ave., SW.Washington, DC 20250–1382(202) 720–1382

Natural Resources and Environment

Forest Service

(agents are listed below by subordinate units)

Natural Resources Conservation Service

Director, Employee Relations BranchHuman Resources Management DivisionNatural Resources Conservation ServiceRoom 6205—South Bldg.PO Box 2890Washington, DC 20250(202) 720–4137

Research, Education, and Economics

Agricultural Research Service CooperativeState Research, Education, and ExtensionService

National Agricultural Statistics ServiceEconomic Research ServiceChief, Personnel Operations BranchAgricultural Research ServicePersonnel Division—POB6305 Ivy Lane, Room 301Greenbelt, MD 20770(301) 344–3151

National Appeals Division

Administrative OfficerNational Appeals Division3101 Park Center Drive, Room 1020Alexandria, VA 22302(703) 305–2566

Forest Service

Washington OfficeDirector, Personnel Management900 RP–EPO Box 96090Washington, DC 20090–6090(703) 235–8102International Institute of Tropical ForestryDirectorCall Box 25000UPR Experimental Station GroundsRio Piedras, PR 00928–2500(809) 766–5335

Region 1

Regional Forester, Regional OfficeFederal Bldg.PO Box 7669Missoula, MT 59807(406) 329–3003

Idaho

Clearwater—Forest Supervisor12730 Highway 12Orofino, ID 83544(208) 476–4541Idaho Panhandle National Forests—Forest

Supervisor1201 Ironwood Dr.Couer d’Alene, ID 83814(208) 765–7223Nez Perce—Forest SupervisorRt. 2, Box 475Grangeville, ID 83530(208) 983–1950

Montana

Beaverhead—Forest Supervisor420 Barrett St.Dillon, MT 59725–3572(406) 683–3900Bitterroot—Forest Supervisor1801 N. 1st St.Hamilton, MT 59840

(406) 363–7121Custer—Forest SupervisorBox 2556Billings, MT 59103(406) 657–6361Deerlodge—Forest SupervisorFederal Bldg.Box 400Butte, MT 59701(406) 496–3400Flathead—Forest Supervisor1935 3rd Ave., E.Kalispell, MT 59901(406) 755–5401Gallatin—Forest SupervisorFederal Bldg.10 E. Babcock Ave.Box 130Bozeman, MT 59771(406) 587–6701Helena—Forest Supervisor2880 Skyway Dr.Helena, MT 59601(406) 449–5201Kootenai—Forest Supervisor506 Highway 2 W.Libby, MT 59923(406) 293–6211Lewis and Clark—Forest SupervisorPO Box 8691101 15th St. N.Great Falls, MT 59403(406) 791–7700Lolo—Forest SupervisorBldg. 24Ft. MissoulaMissoula, MT 59801(406) 329–3750

Region 2

Regional Forester, Regional Office740 Simms St.Lakewood, CO 80255(303) 275–5306

Colorado

Arapaho and Roosevelt—Forest Supervisor240 W. ProspectFort Collins, CO 80526(303) 498–1100Grand Mesa, Uncompahgre, and Gunnison—

Forest Supervisor2250 Highway 50Delta, CO 81416(303) 874–7691Pike and San Isabel—Forest Supervisor1920 Valley Dr.Pueblo, CO 81008(719) 545–8737Rio Grande—Forest Supervisor1803 West Highway 160Monte Vista, CO 81144(719) 852–5941Routt—Forest Supervisor29587 W. US 40, Suite 20Steamboat Springs, CO 80487–9550(303) 879–1722San Juan—Forest Supervisor701 Camino Del Rico, Room 301Durango, CO 81301(303) 247–4874White River—Forest SupervisorOld Federal Bldg.Boxc 948


Glenwood Springs, CO 81602(303) 945–2521

Nebraska

Nebraska—Forest Supervisor125 N. Main St.Chadron, NE 69337(308) 432–0300

South Dakota

Black Hills—Forest SupervisorR.R. 2Box 200Custer, SD 57730–9504(605) 673–2251

Wyoming

Bighorn—Forest Supervisor1969 So. Sheridan Ave.Sheridan, WY 82801(307) 672–0751Medicine Bow—Forest Supervisor2468 Jackson St.Laramie, WY 82070–6535(307) 745–8971Shoshone—Forest Supervisor808 Meadow LaneCody, WY 82414(307) 527–6241

Region 3

Regional Forester, Regional OfficeFederal Bldg.517 Gold Ave., SW.Albuquerque, NM 87102(505) 842–3380

Arizona

Apache—Sitgreaves—Forest SupervisorFederal Bldg.Box 640Springerville, AZ 85938(602) 333–4301Coconino—Forest Supervisor2323 E. Greenlawn LaneFlagstaff, AZ 86004(602) 527–3600Coronado—Forest Supervisor300 W. CongressTucson, AZ 85701(692) 670–4552Kaibab—Forest Supervisor800 S. 6th St.Williams, AZ 86046(602) 635–2681Prescott—Forest Supervisor344 South CortezPrescott, AZ 86303(602) 771–4700Tonto—Forest Supervisor2324 E. McDowell Rd.Phoenix, AZ 85006(602) 225–5200

New Mexico

Carson—Forest Supervisor208 Cruz Alta Rd.PO Box 558Taos, NM 87571(505) 758–6200Cibola—Forest Supervisor2113 Osuna Rd., NE., Suite AAlbuquerque, NM 87113–1001(505) 761–4650Gila—Forest Supervisor3005 E. Camino del Bosque

Silver City, NM 88061(505) 388–8201Lincoln—Forest SupervisorFederal Bldg.1101 New York Ave.Alamogordo, NM 88310–6992(505) 434–7200Santa Fe—Forest Supervisor1220 St. Francis Dr.Santa Fe, NM 87504(505) 988–6940

Region 4

Regional Forester, Regional OfficeFederal Bldg.324 25th St.Ogden, UT 84401(801) 625–5298

Idaho

Boise—Forest Supervisor1750 Front StreetBoise, ID 83702(208) 364–4100Caribou—Forest Supervisor250 S. 4th Ave., Suite 282Federal Bldg.Pocatello, ID 83201(208) 236–7500Challis—Forest SupervisorHC 63 Box 1671F.S. Bldg.Challis, ID 83226(208) 879–2285Payette—Forest SupervisorBox 1026 or106 W. ParkMcCall, ID 83638(208) 634–0700Salmon—Forest SupervisorPO Box 729Salmon, ID 83467–0729(208) 765–2215Sawtooth—Forest Supervisor2647 Kimberly Rd. EastTwin Falls, ID 83301–7976(208) 737–3200Targhee—Forest Supervisor420 N. Bridge St.PO Box 208St. Anthony, ID 83445(208) 624–3151

Nevada

Humboldt—Forest Supervisor976 Mountain City HighwayElko, NV 89801(702) 738–5171Toiyabe—Forest Supervisor1200 Franklin WaySparks, NV 89431(702) 355–5300

Utah

Ashley—Forest Supervisor355 North Vernal Ave.Vernal, UT 84078(801) 789–1181Dixie—Forest Supervisor82 No. 100 E. St.PO Box 580Cedar City, UT 84721–0580(801) 865–3700Fishlake—Forest Supervisor115 E. 900 N.

Richfield, UT 84701(801) 896–9233Manti—La Sal—Forest Supervisor599 W. Price River DrivePrice, UT 84501(801) 637–2817Uinta—Forest Supervisor88 W. 100 N.Provo, UT 84601(801) 342–5100Wasatch—Cache—Forest Supervisor8236 Federal Bldg.125 S. State St.Salt Lake City, UT 84138(801) 524–5030

Wyoming

Bridger—Teton—Forest SupervisorF.S. Bldg.340 N. CacheBox 1888Jackson, WY 83001(307) 739–5500

Region 5

Regional Forester, Regional Office630 Sansome St.San Francisco, CA 94111(415) 705–2856

California

Angeles—Forest Supervisor701 N. Santa Anita Ave.Arcadia, CA 91006(818) 574–1613Cleveland—Forest Supervisor10845 Rancho Bernardo Rd., Suite 200San Diego, CA 92127–2107(619) 673–6180Eldorado—Forest Supervisor100 Forni Rd.Placerville, CA 95667(916) 622–5062Inyo—Forest Supervisor873 North Main St.Bishop, CA 93514(619) 873–2400Klamath—Forest Supervisor1312 Fairlane Rd.Yreka, CA 96097(916) 842–6131Lassen—Forest Supervisor55 So. Sacramento St.Susanville, CA 96130(916) 257–2151Los Padres—Forest Supervisor6144 Calle RealGoleta, CA 93114(805) 683–6711Mendocino—Forest Supervisor420 E. Laurel St.Willows, CA 95988(916) 934–3316Modoc—Forest Supervisor800 W. 12th St.Alturas, CA 96101(916) 233–5811Plumas—Forest Supervisor159 Lawrence St.Box 11500Quincy, CA 95971–6025(916) 283–2050San Bernardino—Forest Supervisor1824 S. Commercenter Cir.


San Bernardino, CA 92408–3440(909) 383–5588Sequoia—Forest Supervisor900 W. Grand Ave.Porterville, CA 93257–2035(209) 784–1500Shasta—Trinity—Forest Supervisor2400 Washington Ave.Redding, CA 96001(916) 246–5222Sierra—Forest Supervisor1600 Tollhouse Rd.Clovis, CA 93611(209) 297–0706Six Rivers—Forest Supervisor1330 Bayshore WayEureka, CA 95501–3834(707) 441–3517Stanislaus—Forest Supervisor19777 Greenley Rd.Sonora, CA 95370(209) 532–3671Tahoe—Forest Supervisor631 Coyote St.PO Box 6003Nevada City, CA 95959–6003(916) 265–4531

Region 6

Regional Forester, Regional Office333 SW. 1st Ave.PO Box 3623Portland, OR 97208(503) 326–3630

Oregon

Deschutes—Forest Supervisor1645 Highway 20 E.Bend, OR 97701(503) 388–2715Fremont—Forest Supervisor524 North G St.Lakeview, OR 97630(503) 947–2151Malheur—Forest Supervisor139 NE. Dayton St.John Day, OR 97845(503) 575–1731Mt. Hood—Forest Supervisor2955 NW. Division St.Gresham, OR 97030(503) 666–0700Ochoco—Forest SupervisorBox 490Prineville, OR 97754(503) 447–6247Rogue River—Forest SupervisorFederal Bldg.333 W. 8th St.Box 520Medford, OR 97501(503) 776–3600Siskiyou—Forest SupervisorBox 440Grants Pass, OR 97526(503) 471–6500Siuslaw—Forest SupervisorBox 1148Corvallis, OR 97339(503) 750–7000Umatilla—Forest Supervisor2517 SW. Hailey Ave.Pendleton, OR 97801(503) 278–3721

Umpqua—Forest SupervisorBox 1008Roseburg, OR 97470(503) 672–6601Wallowa—Whitman—Forest SupervisorBox 907Baker City, OR 97814(503) 523–6391Willamette—Forest SupervisorBox 10607Eugene, OR 97440(503) 465–6521Winema—Forest Supervisor2819 DahliaKlamath Falls, OR 97601(503) 883–6714

Washington

Colville—Forest Supervisor765 S. MainColville, WA 99114(509) 684–7000Gifford Pinchot—Forest Supervisor6926 E. 4th Plain Blvd.Vancouver, WA 98668–8944(206) 750–5000Mt. Baker—Snoqualmie—Forest Supervisor21905 64th Avenue WestMountlake Terrace, WA 98043(206) 744–3200Okanogan—Forest Supervisor1240 South Second Ave.Okanogan, WA 98840(509) 826–3275Olympia—Forest Supervisor1835 Black Lake Blvd., SW.Olympia, WA 98512(206) 956–2300Wenatchee—Forest Supervisor301 Yakima St.PO Box 811Wenatchee, WA 98807(509) 662–4335

Region 8

Regional Forester, Regional Office1720 Peachtree Rd., NW.Atlanta, GA 30367(404) 347–3841

Alabama

National Forests in Alabama—ForestSupervisor

2946 Chestnut St.Montgomery, AL 36107–3010(205) 832–4470

Arkansas

Ouachita—Forest SupervisorBox 1270Federal Bldg.Hot Springs National Park, AR 71902(501) 321–5200Ozark—St. Francis—Forest Supervisor605 West MainBox 1008Russellville, AR 72801(501) 968–2354

Florida

National Forests in Florida—ForestSupervisor

Woodcrest Office Park325 John Knox Rd., Suite F–100Tallahassee, FL 32303(904) 681–7265

Georgia

Chattahoochee and Oconee—ForestSupervisor

508 Oak St., NW.Gainesville, GA 30501(404) 536–0541

Kentucky

Daniel Boone—Forest Supervisor100 Vaught Rd.Winchester, KY 40391(606) 745–3100

Louisiana

Kisatchie—Forst Supervisor2500 Shreveport Hwy.PO Box 5500Pineville, LA 71361–5500(318) 473–7160

Mississippi

National Forests in Mississippi—ForestSupervisor

100 W. Capital St., Suite 1141Jackson, MS 39269(601) 965–4391

North Carolina

National Forests in North Carolina—ForestSupervisor

Post and Otis StreetsPO Box 2750Asheville, NC 28802(704) 257–4200

Puerto Rico and the Virgin Islands

Caribbean N.F.—Forest SupervisorCall Box 25000Rio Piedras, PR 00928–2500(809) 766–5335

South Carolina

Francis Marion and Sumter NationalForests—Forest Supervisor

4923 Broad River Rd.Columbia, SC 29212(803) 765–5222

Tennessee

Cherokee—Forest Supervisor2800 N. Ocoee St., NE.PO Box 2010Cleveland, TN 37320(615) 476–9700

Texas

National Forests in Texas—Forest SupervisorHomer Garrison Federal Bldg.701 N. First St.Lufkin, TX 75901(409) 639–8501

Virginia

George Washington—Forest SupervisorPO Box 233, Harrison PlazaHarrisonburg, VA 22801(703) 433–2491

Region 9

Regional Forester, Regional Office310 W. Wisconsin Ave., Room 500Milwaukee, WI 53203(414) 297–3674

Illinois

Shawnee—Forest Supervisor901 S. Commercial St.Harrisburg, IL 62946(618) 253–7114


Indiana

Hoosier—Forest Supervisor811 Constitution Ave.Bedford, IN 47421(812) 275–5987

Michigan

Hiawatha—Forest Supervisor2727 N. Lincoln Rd.Escanaba, MI 49829(906) 786–4062Huron—Manistee—Forest Supervisor421 S. Mitchell St.Cadillac, MI 49601(616) 775–2421Ottawa—Forest Supervisor2100 E. Cloverland Dr.Ironwood, MI 49938(906) 932–1330

Minnesota

Chippewa—Forest SupervisorRt. 3 Box 244Cass Lake, MN 56633(218) 335–8600Superior—Forest SupervisorBox 338, Federal Bldg.515 W. First St.Duluth, MN 55802(218) 720–5324

Missouri

Mark Twain—Forest Supervisor401 Fairgrounds Rd.Rolla, MO 65401(314) 364–4621

New Hampshire and Maine

White Mountain—Forest SupervisorFederal Bldg.719 Main St.PO Box 638Laconia, NH 03247(603) 528–8721

Ohio

Wayne—Forest Supervisor219 Columbus Rd.Athens, OH 45701–1399(614) 592–6644

Pennsylvania

Allegheny—Forest Supervisor222 Liberty St.Box 847Warren, PA 16365(814) 723–5150

Vermont

Green Mountain and Finger Lakes—ForestSupervisor

231 N. Main St.Rutland, NY 05701(802) 747–6700

West Virginia

Monongahela—Forest SupervisorUSDA Bldg.200 Sycamore St.Elkins, WV 26241–3962(304) 636–1800

Wisconsin

Chequamegon—Forest Supervisor1170 4th Ave. SouthPark Falls, WI 54552(715) 762–2461Nicolet—Forest Supervisor

Federal Bldg.68 S. StevensRhinelander, WI 54501(715) 362–1300

Region 10

Regional Forester, Regional OfficeFederal Office Bldg.Box 21628Juneau, AK 99802–1628(907) 586–8719

Alaska

Chugach—Forest Supervisor3301 C St., Suite 300Anchorage, AK 99503–3998(907) 271–2500Tongass—Chatham Area—Forest Supervisor204 Siginaka WaySitka, AK 99835(907) 747–6671Tongass—Ketchikan Area—Forest SupervisorFederal Bldg.Ketchikan, AK 99901(907) 225–3101Tongass—Stikine Area—Forest SupervisorBox 309Petersburg, AK 99833(907) 772–3841

Forest and Range Experiment Stations

Intermountain Research Station, Director324 25th St.Ogden, UT 84401(801) 625–5412North Central Forest Experiment Station,

Director1992 Folwell Ave.St. Paul, MN 55108(612) 649–5249Northeastern Forest Experiment Station,

Director5 Radnor Corporate Center, Suite 200PO Box 6775Radnor, PA 19087–8775(610) 975–4017Pacific Northwest Research Station, DirectorPO Box 3890Portland, OR 97208–3890(503) 326–5640Pacific Southwest Forest and Range

Experiment Station, Director800 Buchanan St.West Bldg.Albany, CA 94710–0011(510) 559–6310Rocky Mountain Forest and Range

Experiment Station, Director240 W. Prospect Rd.Fort Collins, CO 80526–2098(303) 498–1126Southeastern Forest Experiment Station,

Director200 Weaver Blvd.PO Box 2680Ashville, NC 28802(704) 257–4300Southern Forest Experiment Station, DirectorT–10210U.S. Postal Service Bldg.701 Loyola Ave.New Orleans, LA 70113(504) 589–3921Forest Products LaboratoryDirector

One Gifford Pinchot Dr.Madison, WI 53705–2398(608) 231–9318Northeastern Area State and Private ForestryDirector5 Radnor Corporate Center, Suite 200PO Box 6775Radnor, PA 19087–8775(610) 975–4103

Department of Commerce

In addition to the agents listed for theDepartment of Commerce in Appendix A, theDepartment of Commerce designates thefollowing agent for purposes of ordersaffecting Commissioned personnel of theNOAA CORPS:Chief, Officer Services DivisionCommissioned Personnel Center1315 East West Highway, Room 12100Silver Spring, MD(301) 713–3453

Department of Defense

The Department of Defense officialsidentified pursuant to Executive Order12953, section 302, shall facilitate anemployee’s or member’s availability forservice of process. Additionally, theseofficials shall be responsible for answeringinquiries about their respectiveorganization’s service of process rules. Suchofficials are not responsible for actual serviceof process and will not accept requests tomake such service.

Office of the Secretary of Defense

Personnel Management SpecialistDoD Civilian Personnel Management Service1400 Key Blvd., Level AArlington, VA 22209

Department of the Army

Members of the uniformed service, active,reserve, and retired

Office of the Judge Advocate GeneralATTN: DAJA–LA2200 Army PentagonWashington, DC 20310–2200(703) 697–3170

Federal civilian employees of the Army, bothappropriated fund and nonappropriated fund

Deputy Assistant Secretary(Civilian Personnel Policy/Director of

Civilian Personnel)111 Army PentagonWashington, DC 20310–0111(703) 695–4237

Active duty, reserve, and appropriated fundand nonappropriated fund employees of theDepartment of the Army employed withinthe United States

Defense Finance and Accounting ServiceATTN: DFAS–IN/GGMailstop #228899 East 56th StreetIndianapolis, IN 46249–0160(317) 542–2155

Retired members

Defense Finance and Accounting ServiceATTN: DFAS–CL/LPO Box 98002Cleveland, OH 44199–8002(216) 522–5301


Appropriated fund and nonappropriatedfund Federal civilian employees employed inPanama

(Until 1 Oct 95) Deputy Chief of Staff forResource Management

U.S. Army Southern CommandFinance & Accounting Office,Civilian Personnel SectionATTN: Unit 7153, SORM–FA–CAPO AA 34004(On or after 1 Oct 95) Defense Finance and

Accounting ServiceATTN: DFAS—Charleston1545 2nd Street WestCharleston, SC 29408–1968

Appropriated fund and nonappropriatedfund Federal civilian employees employed inthe Pacific (Hawaii, Japan)

Defense Finance and Accounting ServiceATTN: DFAS–CL/LGPO Box 98002Cleveland, OH 44199–8002(216) 522–5301

Appropriated fund and nonappropriatedfund Federal civilian employees employed inKorea

175th Theater Finance CommandATTN: KAFC–CPA–DACAPO AP 96205–00731–011–822–1914–3806

Department of the Navy

In order to locate, or determine thecognizant command and mailing address ofa Navy Member:Bureau of Naval PersonnelWorldwide Locator(Pers 324D)2 Navy AnnexWashington, DC 20370–3000(703) 614–3155/5011

In order to obtain assistance in the serviceof legal process in civil actions pursuant toorders of the courts of States for membersoutside the United States:Bureau of Naval PersonnelOffice of Legal Counsel(Pers 06)2 Navy AnnexWashington, DC 20370–5006(703) 614–4110

Members of the Marine Corps

Paralegal SpecialistHeadquarters, U.S. Marine Corps (JAR)2 Navy AnnexWashington, DC 20380–1775(703) 614–2510

To receive service of withholding noticesfor members of the Marine Corps:

a. Active and Reserve Marines (until 31 Jul95)

Director, Defense Finance and AccountingService—Kansas City CenterAttention: Code DGKansas City, MO 6417–0001(816) 926–7103

b. Active and Reserve Marines (after 1 Aug95) and Retired Marines

Director, Defense Finance and AccountingService—Cleveland CenterAttention: Office of Counsel/Code DG1240 East Ninth Street

Cleveland, OH 44199–2087(216) 522–5301

For service of process on Department of theNavy civilian employees:Department of the NavyOffice of the General CounselAdministrative Officer—Room 5D830The PentagonWashington, DC 20350–1000(703) 614–4473

For assistance in service of process onDepartment of the Navy civilian employees:Department of the NavyOffice of Civilian Personnel Mgmt.Office of Counsel (Code OL)000 N. Quincy StreetArlington, Va 22203(703) 696–4717

Department of the Air Force

For all personnel, military and civilian:AFLSA/JACA1420 Air Force PentagonWashington, DC 20330–1420(703) 695–2450

Defense Intelligence Agency

Defense Intelligence AgencyATTN: Office of the General CounselThe Pentagon—Room 2E–238Washington, DC 20301–7400

Defense Mapping Agency

Defense Mapping AgencyOffice of Legal Services3200 South Second StreetSt. Louis, MO 63118

Defense Nuclear Agency

Associate General CounselDefense Nuclear Agency6801 Telegraph RoadAlexandria, VA 22310–3398(703) 325–7681

On-Site Inspection Agency

General CounselDefense Nuclear Agency6801 Telegraph RoadAlexandria, VA 22310–3398(703) 325–7681

Department of Housing and UrbanDevelopment

Headquarters

Chief, Systems Support BranchTechnology Support Division451 7th Street, SW., Room 2256Washington, DC 20410(202) 708–0241

New England (Massachusetts, Maine,Vermont, New Hampshire, Rhode Island, andConnecticut)

Human Resources OfficerThomas P. O’Neill, Jr. Federal Building10 Causeway Street, Room 375Boston, MA 02222(617) 565–5435

New York, New Jersey

Human Resources Officer26 Federal PlazaNew York, NY 10278(212) 264–0782

Mid-Atlantic (Pennsylvania, Maryland,Washington, DC, West Virginia, Virginia, andDelaware)

Human Resources OfficerThe Wanamaker Building100 Penn Square EastPhiladelphia, PA 19107(215) 656–0593

Southeast (Georgia, North Carolina,Kentucky, Tennessee, South Carolina,Alabama, Mississippi, Puerto Rico, andFlorida)

Human Resources OfficerRichard B. Russell Federal Building75 Spring Street, SW.Atlanta, GA 30303(404) 331–4078

Midwest (Illinois, Minnesota, Wisconsin,Michigan, Ohio, and Indiana)

Human Resources OfficerRalph H. Metcalfe Federal Building77 West Jackson BoulevardChicago, IL 60604(312) 353–5960

Southwest (Texas, Oklahoma, Arkansas,Louisiana, and New Mexico)

Human Resources Officer1600 ThrockmortonPost Office Box 2905Fort Worth, TX 76113(817) 885–5471

Great Plains (Kansas, Missouri, Iowa, andNebraska)

Human Resources OfficerGateway Tower II400 State AvenueKansas City, KS 66101(913) 551–5419

Rocky Mountain (Colorado, Montana, NorthDakota, South Dakota, Wyoming, and Utah)

Human Resources OfficerFirst Interstate Tower North633 17th StreetDenver, CO 80202(303) 672–5259

Pacific/Hawaii (California, Nevada, Arizona,and Hawaii)

Human Resources OfficerPhillip Burton Federal Building and U.S.

Courthouse450 Golden Gate AvenuePost Office Box 36003San Francisco, CA 94102(415) 556–7142

Northwest/Alaska (Washington, Oregon,Idaho, and Alaska)

Human Resources OfficerFederal Office Building909 First Avenue, Suite 200Seattle, VA 98104(206) 220–5125

Department of Justice

Federal Bureau of Investigation

Chief, Payroll Administration and ProcessingUnit

Room 188510th Street & Pennsylvania Avenue, NW.Washington, DC 20535(202) 324–5881


Department of TransportationHPT–1 (FHWA)Room 4317Department of TransportationWashington, DC 20590G–PC (USCG)Room 4100E, CGHQDepartment of TransportationWashington, DC 20590RAD–10 (FRA)Room 8232Department of TransportationWashington, DC 20590NAD–20 (NHTSA)Room 5306Department of TransportationWashington, DC 20590TAD–30 (FTA)Room 7101Department of TransportationWashington, DC 20590DMA–12 (RSPA)Room 8401Department of TransportationWashington, DC 20590JM–20 (OIG)Room 7418Department of TransportationWashington, DC 20590MAR–360 (MARAD)Room 8101Department of TransportationWashington, DC 20590Personnel Officer (SLSDC)180 Andrews StreetMasena, NY 13662–1763AHR–1 (FAA)FOB–10A, Room 500EDepartment of TransportationWashington, DC 20590Chief CounselSaint Lawrence Seaway Development

Corporation400 Seventh St., SW., Room 5424Washington, DC 20590

Department of Veterans Affairs

Alabama

Human Resources Management OfficerBirmingham Medical Center700 South 19th StreetBirmingham, AL 35233(205) 933–4478Montgomery Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerMontgomery Medical Center215 Perry Hill RoadMontgomery, AL 36109–3798(334) 272–4670Human Resources Management OfficerTuskegee Medical Center2400 Hospital RoadTuskegee, AL 36083–5001(334) 727–0550Human Resources Management OfficerTuscaloosa Medical Center3701 Loop Road

Tuscaloosa, AL 35404(205) 554–2000, ext. 2542Fort Mitchell National CemeterySend to: Human Resources Management

OfficerVA Medical Center2400 Hospital RoadTuskegee, AL 36083–5001(334) 727–0550Mobile Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center400 Veterans Blvd.Biloxi, MS 39531(601) 388–5541, ext. 5780

Alaska

Fort Richardson (Sitka) National CemeterySend to: Human Resources Management

OfficerVA Medical Center & Regional Office2925 DeBarr RoadAnchorage, AK 99508–2989(907) 257–4750Human Resources Management OfficerAnchorage Medical Center & Regional Office2925 DeBarr RoadAnchorage, AK 99508–2989(907) 257–4750

Arizona

Human Resources Management OfficerPrescott Medical Center500 N. Highway 89Prescott, AZ 86313–5000(520) 776–6015Prescott National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center500 N. Highway 89Prescott, AZ 86313–5000(520) 776–6015Human Resources Management OfficerPhoenix Medical Center650 E. Indian School RoadPhoenix, AZ 85012(602) 277–5551, ext. 7594Human Resources Management OfficerTucson Medical Center3601 South Sixth AvenueTuscon, AZ 85723–0001(520) 629–1803Phoenix Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Arizona (Cave Creek) Memorial National

CemeterySend to: Human Resources Management

OfficerVA Medical Center650 E. Indian School RoadPhoenix, AZ 85012(602) 277–5551, ext. 7594

Arkansas

Fayetteville National CemeterySend to: Human Resources Management

OfficerVa Medical Center

1100 N. College AvenueFayetteville, AR 72703(501) 444–5020Fort Smith National CemeterySend to: Human Resources Management

OfficerVA Medical Center1100 N. College AvenueFayetteville, AR 72703(501) 444–5020Little Rock National CemeterySend to: Human Resources Management

OfficerVA Medical Center4300 West 7th StreetLittle Rock, AR 72114(501) 370–6677Little Rock Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerLittle Rock Medical Center4300 West 7th StreetLittle Rock, AR 72114(501) 370–6677Human Resources Management OfficerFayetteville Medical Center1100 N. College AvenueFayetteville, AR 72703(501) 444–5020

California

Human Resources Management OfficerPalo Alto Medical Center3801 Miranda AvenuePalo Alto, CA 94304–1207(415) 493–5000, ext. 5515Human Resources Management OfficerLoma Linda Medical Center11201 Benton StreetLoma Linda, CA 92357–0002(909) 825–7084, ext. 3058San Diego Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Sepulveda VCS Western RegionSend to: Human Resources Management

OfficerVA Medical Center16111 Plummer StreetSepulveda, CA 91343–2099(818) 895–9377Human Resources Management OfficerSan Francisco Medical Center4150 Clement StreetSan Francisco, CA 94121–1598(415) 750–2107Human Resources Management OfficerFresno Medical Center2615 E. Clinton AvenueFresno, CA 93703–2223(209) 225–6100, ext. 5005Human Resources Management OfficerSan Diego Medical Center3350 La Jolla Village DriveSan Diego, CA 92161–0001


(619) 552–8585Oakland Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Human Resources Management OfficerSepulveda Medical Center16111 Plummer StreetSepulveda, CA 91343–2099(818) 895–9377Human Resources Management OfficerLos Angeles Medical CenterWilshire & Sawtelle Blvds.Los Angeles, CA 90073(310) 824–3153Los Angeles Field Office of AuditSend to: Human Resources Management

OfficerVA Medical CenterWilshire & Sawtelle Blvds.Los Angeles, CA 90073(310) 824–3153Los Angeles Regional Office of AuditSend to: Human Resources Management

OfficerVA Medical CenterWilshire & Sawtelle Blvds.Los Angeles, CA 90073(310) 824–3153Human Resources Management OfficerLos Angeles Outpatient Clinic351 E. Temple St.Los Angeles, CA 90012–3328(213) 253–2677Pleasant Hill Northern California System of

ClinicsHuman Resources Management Officer2300 Contra Costa Blvd., Suite 440Pleasant Hill, CA 94523–3961(510) 372–2008Human Resources Management OfficerLong Beach Medical Center5901 E. Seventh StreetLong Beach, CA 90882–5201(310) 494–5642Los Angeles Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855San Bruno (Golden Gate) National CemeterySend to: Human Resources Management

OfficerVA Medical Center4150 Clement StreetSan Francisco, CA 94121–1598(415) 750–2107Fort Rosecrans National CemeterySend to: Human Resources Management

OfficerVA Medical Center3350 La Jolla Village DriveSan Diego, CA 92161–0001(619) 552–8585Los Angeles National CemeterySend to: Human Resources Management

OfficerVA Medical CenterWilshire & Sawtelle Blvds.

Los Angeles, CA 90073(310) 824–3153San Joaquin Valley National CemeterySend to: Human Resources Management

OfficerVA Medical Center2615 E. Clinton AvenueFresno, CA 93703–2223(209) 225–6100, ext. 5005Riverside National CemeterySend to: Human Resources Management

OfficerVA Medical Center11201 Benton StreetLoma Linda, CA 92357–0002(909) 825–7084, ext. 3058San Francisco National CemeterySend to: Human Resources Management

OfficerVA Medical Center4150 Clement StreetSan Francisco, CA 94121–1598(415) 750–2107San Diego Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center3350 La Jolla Village DriveSan Diego, CA 92161–0001(619) 552–8585

Colorado

Human Resources Management OfficerGrand Junction Medical Center2121 North AvenueGrand Junction, CO 81501(970) 252–0731, ext. 2062Human Resources Management OfficerDenver Medical Center1055 Clermont StreetDenver, CO 80220–0166(303) 393–2815Denver Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Human Resources Management OfficerFort Lyon Medical CenterFort Lyon, CO 81038–5000(719) 384–3190Fort Logan National CemeterySend to: Human Resources Management

OfficerVA Medical Center1055 Clermont StreetDenver, CO 80220–0166(303) 393–2815Denver National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1055 Clermont StreetDenver, CO 80220–0166(303) 393–2815VBA Western Area Human Resources

Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Denver Civilian Health and Medical Program

(CHAMPVA)

Human Resources Management Officer300 S. Jackson St.Denver, CO 80206(303) 331–7514Denver Distribution CenterSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855

Connecticut

Hartford Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerNewington Medical Center555 Willard AvenueNewington, CT 06111(212) 686–7500, ext. 7635Human Resources Management OfficerWest Haven Medical Center950 Cambell AvenueWest Haven, CT 06516(203) 932–5711

District of Columbia

Human Resources Management OfficerWashington DC Medical CenterIrving Street, NW.Washington, DC 20422(202) 745–8200Director, Central Office Human Resources

Management ServiceVA Central Office810 Vermont Ave., NW.Washington, DC 20420(202) 273–4950Washington DC Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090

Delaware

Human Resources Management OfficerWilmington Medical and Regional Office

Center1601 Kirkwood HighwayWilmington, DE 19805(302) 633–5340

Florida

Pensacola (Barrancas) National CemeterySend to: Human Resources Management

OfficerVA Medical Center400 Veterans Blvd.Biloxi, MS 39531(601) 388–5541, ext. 5780Human Resources Management OfficerBay Pines Medical Center10000 Bay Pines Blvd.Bay Pines, FL 33504(813) 398–6661, ext. 4116Florida National CemeterySend to: Human Resources Management

OfficerVA Medical Center


13000 Bruce B. Downs Blvd.Tampa, FL 33612(813) 972–7524Riviera Beach Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center1201 Northwest 16th StreetMiami, FL 33125(305) 324–4455, ext. 3343Orlando Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center13000 Bruce B. Downs Blvd.Tampa, FL 33612(813) 972–7524Miami VA OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Jacksonville VA OfficeSend to : VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Jacksonville Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center1601 SW Archer RoadGainesville, FL 32608–1197(904) 374–6045Daytona Beach Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center1601 SW Archer RoadGainesville, FL 32608–1197(904) 374–6045Jacksonville Vet CenterSend to: Human Resources Management

OfficerVA Medical Center1601 SW Archer RoadGainesville, FL 32608–1197(904) 374–6045Human Resources Management OfficerTampa Medical Center13000 Bruce B. Downs Blvd.Tampa, FL 33612(813) 972–7524Bay Pines National CemeterySend to: Human Resources Management

OfficerVA Medical Center10000 Bay Pines Blvd.Bay Pines, FL 33504(813) 398–6661, ext. 4116Human Resources Management OfficerGainesville Medical Center1601 SW Archer RoadGainesville, FL 32608–1197(904) 374–6045St. Petersburg Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite E

Jackson, MS 39213(601) 965–4140Human Resources Management OfficerPalm Beach Gardens Medical CenterPO Box 33207Palm Beach Gardens, FL 33420(407) 691–8251Human Resources Management OfficerMiami Medical Center1201 Northwest 16th StreetMiami, FL 33125(305) 324–4455, ext. 3343Human Resources Management OfficerLake City Medical Center801 S. Marion StreetLake City, FL 32025–5898(904) 755–3016

Georgia

Marietta National CemeterySend to: Human Resources Management

OfficerVA Medical Center1670 Clairmont RoadDecatur, GA 30033(404) 728–7636Atlanta Veterans Canteen Service Field

OfficeSend to: Human Resources Management

OfficerVA Medical Center1670 Clairmont RoadDecatur, GA 30033(404) 728–7636Human Resources Management OfficerAugusta Medical Center1 Freedom WayAugusta, GA 30904–6285(706) 823–3955Human Resources Management OfficerDublin Medical Center1826 Veterans Blvd.Dublin, GA 31021(912) 277–2753Atlanta Field Office of AuditSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Atlanta National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1670 Clairmont RoadDecatur, GA 30033(404) 728–7636Human Resources Management OfficerAtlanta Medical Center1670 Clairmont RoadDecatur, GA 30033(404) 728–7636Income Verification Match CenterSend to: Human Resources Management

OfficerVA Medical Center1670 Clairmont RoadDecatur, GA 30033(404) 728–7636Atlanta Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director

6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140

Hawaii

Human Resources Management OfficerHonolulu Medical and Regional Office Center300 Ala Moana Blvd.PO Box 50188Honolulu, HI 96850(808) 566–1470Pacific Memorial National CemeterySend to: Human Resources Management

OfficerVA Medical and Regional Office Center300 Ala Moana Blvd.PO Box 50188Honolulu, HI 96850(808) 566–1470

Idaho

Human Resources Management OfficerBoise Medical Center500 W. Fort StreetBoise, ID 83702–4598(208) 338–7218Boise Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855

Illinois

Human Resources Management OfficerNorth Chicago Medical Center3001 Green Bay RoadNorth Chicago, IL 60064(708) 578–3763Human Resources Management OfficerHines Medical CenterEdward Hines Jr. Hospital5th Avenue & Roosevelt RoadHines, IL 60141(708) 216–2601Rock Island National CemeterySend to: Human Resources Management

OfficerVA Medical CenterHighway 6 WestIowa City, IA 52246(319) 338–0581, ext. 7720Danville National CemeterySend to: Human Resources Management

OfficerVA Medical Center1900 E. Main StreetDanville, IL 61832(217) 431–6548Human Resources Management OfficerChicago Lakeside Medical Center333 E. Huron StreetChicago, IL 60611(312) 943–6600Camp Butler National CemeterySend to: Human Resources Management

OfficerVA Medical Center1900 E. Main StreetDanville, IL 61832(217) 431–6548Hines Systems Delivery CenterSend to: Human Resources Management

Officer


Hines Benefits Delivery CenterPO Box 27 (901A1)Hines, IL 60141(708) 681–6680Human Resources Management OfficerChicago Medical Center820 South Damen AvenuePO Box 8195Chicago, IL 60680(312) 633–2174Chicago Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerMarion Medical Center2401 W. Main StreetMarion, IL 62959(618) 997–5311, ext. 4116Hines Finance CenterSend to: Human Resources Management

OfficerHines Benefits Delivery CenterPO Box 27 (901A1)Hines, IL 60141(708) 681–6680Human Resources Management OfficerDanville Medical Center1900 E. Main StreetDanville, IL 61832(217) 431–6548Hines National Acquisition CenterSend to: Human Resources Management

OfficerHines Benefits Delivery CenterPO Box 27 (901A1)Hines, IL 60141(708) 681–6680Hines Benefits Delivery CenterHuman Resources Management OfficerPO Box 27 (901A1)Hines, IL 60141(708) 681–6680Alton National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical CenterJefferson BarracksSt. Louis, MO 63106(314) 894–6620Mound City National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2401 W. Main StreetMarion, IL 62959(618) 997–5311, ext. 4116Quincy National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical CenterHighway 6 WestIowa City, IA 52246(319) 338–0581, ext. 7720

Indiana

Marion National CemeterySend to: Human Resources Management

OfficerVA Medical Center1700 East 38th

Marion, IN 46953–4589(317) 677–3101Human Resources Management OfficerMarion Medical Center1700 East 38thMarion, IN 46953–4589(317) 677–3101Human Resources Management OfficerIndianapolis Medical Center1481 West 10th StreetIndianapolis, IN 46202(317) 267–8758Human Resources Management OfficerFort Wayne Medical Center2121 Lake AvenueFort Wayne, IN 46805–5100(219) 460–1342Indianapolis Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830New Albany National CemeterySend to: Human Resources Management

OfficerVA Medical Center800 Zorn AvenueLouisville, KY 40206(502) 895–3401, ext. 5866Evansville Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center2401 W. Main StreetMarion, IL 62959(618) 997–5311, ext. 4116Indianapolis National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1481 West 10th StreetIndianapolis, IN 46202(317) 267–8758

Iowa

Des Moines Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Koekuk National CemeterySend to: Human Resources Management

OfficerVA Medical CenterHighway 6 WestIowa City, IA 52246(319) 338–0581, ext. 7720Human Resources Management OfficerKnoxville Medical Center1515 W. Pleasant StreetKnoxville, IA 50138(515) 842–3101, ext. 6219Human Resources Management OfficerDes Moines Medical Center3600 30th StreetDes Moines, IA 50310(515) 271–5812Human Resources Management OfficerIowa City Medical CenterHighway 6 West

Iowa City, IA 52246(319) 338–0581, ext. 7720

Kansas

Human Resources Management OfficerTopeka Medical Center2200 Gage Blvd.Topeka, KS 66622(913) 271–4310Human Resources Management OfficerLeavenworth Medical Center4101 S. 4th St. TrafficwayLeavenworth, KS 66048(913) 682–2000, ext. 2500Leavenworth National CemeterySend to: Human Resources Management

OfficerVA Medical Center4101 S. 4th St. TrafficwayLeavenworth, KS 66048(913) 682–2000, ext. 2500Human Resources Management OfficerWichita Medical and Regional Office Center901 George Washington Blvd.Wichita, KS 67211(316) 651–3625Fort Scott National CemeterySend to: Human Resources Management

OfficerVA Medical Center4101 S. 4th St. TrafficwayLeavenworth, KS 66048(913) 682–2000, ext. 2500Ft. Leavenworth National Cemetery Area


OfficerVA Medical Center4101 S. 4th St. TrafficwayLeavenworth, KS 66048(913) 682–2000, ext. 2500

Kentucky

Nicholasville (Camp Nelson) NationalCemetery Area Office

Send to: Human Resources ManagementOfficer

VA Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924Zachary Taylor National Cemetery Area


OfficerVA Medical Center800 Zorn AvenueLouisville, KY 40206(502) 895–3401, ext. 5866Human Resources Management OfficerLouisville Medical Center800 Zorn AvenueLouisville, KY 40206(502) 895–3401, ext. 5866Lebanon National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center800 Zorn AvenueLouisville, KY 40206(502) 895–3401, ext. 5866Louisville Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director


38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Cave Hill National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center800 Zorn AvenueLouisville, KY 40206(502) 895–3401, ext. 5866Human Resources Management OfficerLexington Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924Danville National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924Lexington National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924Nancy National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924Perryville National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2250 Leestown RoadLexington, KY 40511–1093(606) 281–3924

Louisiana

Human Resources Management OfficerNew Orleans Medical Center1601 Perdido StreetNew Orleans, LA 70146(504) 568–0811Port Hudson (Zachary) National CemeterySend to: Human Resources Management

OfficerVA Medical Center1601 Perdido StreetNew Orleans, LA 70146(504) 568–0811Human Resources Management OfficerAlexandria Medical CenterHighway 171Alexandria, LA 71301(318) 473–0010, ext. 2262Human Resources Management OfficerShreveport Medical Center510 E. Stoner AvenueShreveport, LA 71101–4295(318) 424–6028Alexandria (Pinesville) National CemeterySend to: Human Resources Management

OfficerVA Medical CenterHighway 171Alexandria, LA 71301(318) 473–0010, ext. 2262

New Orleans Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Baton Rouge National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1601 Perdido StreetNew Orleans, LA 70146(504) 568–0811Shreveport VA OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140

Maine

Human Resources Management OfficerTogus Medical and Regional Office CenterTogus, ME 04330(207) 623–5713Portland VA (Vet Center) OfficeSend to: Human Resources Management

OfficerVA Medical and Regional Office CenterTogus, ME 04330(207) 623–5713Togus National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical and Regional Office CenterTogus, ME 04330(207) 623–5713

Maryland

Human Resources Management OfficerFt. Howard Medical Center9600 N. Point RoadFt. Howard, MD 21052(410) 687–8343Ft. Howard VCS Eastern RegionSend to: Human Resources Management

OfficerVA Medical Center9600 N. Point RoadFt. Howard, MD 21052(410) 687–8343Baltimore Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerBaltimore Medical Center10 N. Greene StreetBaltimore, MD 21201(410) 605–7200Baltimore National CemeterySend to: Human Resources Management

OfficerVA Medical Center10 N. Greene StreetBaltimore, MD 21201(410) 605–7200Eastern Area Servicing Assistance CenterHuman Resources Management Director31 Hopkins Plaza

Baltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerPerry Point Medical CenterBuilding 101Perry Point, MD 21902(410) 642–2411, ext. 5193Baltimore Rehabilitation, Research and

Development CenterSend to: Human Resources Management

OfficerVA Medical Center10 N. Greene StreetBaltimore, MD 21201(410) 605–7200Annapolis National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center10 N. Greene StreetBaltimore, MD 21201(410) 605–7200Baltimore Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center10 N. Greene StreetBaltimore, MD 21201(410) 605–7200Hyattsville Field Office of AuditSend to: Director, CO Human Resources

Management ServiceVA Central Office810 Vermont Ave., NW.Washington, DC 20420(202) 273–4950

Massachusetts

Human Resources Management OfficerBoston Medical Center150 S. Huntington Ave.Boston, MA 02130(617) 232–9500, ext. 5561Human Resources Management OfficerNorthampton Medical CenterNorthampton, MA 01060–1288(413) 582–3027Boston Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Officer31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerBedford Medical Center200 Springs RoadBedford, MA 01730(617) 275–7500, ext. 2367Bourne National CemeterySend to: Human Resources Management

OfficerVA Medical Center940 Belmont StreetBrockton, MA 02401(508) 583–4500, ext. 3260Human Resources Management OfficerBrockton Medical Center940 Belmont StreetBrockton, MA 02401(508) 583–4500, ext. 3260Boston Outpatient ClinicSend to: Human Resources Management

Officer


VA Medical Center150 S. Huntington Ave.Boston, MA 02130(617) 232–9500, ext. 5561Lowell Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center150 S. Huntington Ave.Boston, MA 02130(617) 232–9500, ext. 5561New Bedford Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center830 Chalkstone AvenueProvidence, RI 02908–4799(401) 457–3072Springfield Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical CenterNorthampton, MA 01060–1288(413) 582–3027Springfield VA OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090West Roxbury Medical CenterSend to: Human Resources Management

OfficerVA Medical Center940 Belmont StreetBrockton, MA 02401(508) 583–4500, ext. 3260Worchester Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center940 Belmont StreetBrockton, MA 02401(508) 583–4500, ext. 3260

Michigan

Fort Custer National CemeterySend to: Human Resources Management

OfficerVA Medical Center5500 Armstrong Rd.Battle Creek, MI 49016(616) 966–5600, ext. 3600Grand Rapids Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center5500 Armstrong Rd.Battle Creek, MI 49016(616) 966–5600, ext. 3600Detroit Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerBattle Creek Medical Center5500 Armstrong Rd.Battle Creek, MI 49016(616) 966–5600, ext. 3600Human Resources Management Officer

Saginaw Medical Center1500 Weiss StreetSaginaw, MI 48602(517) 793–2340, ext. 3070VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerIron Mountain Medical CenterH StreetIron Mountain, MI 49801(906) 774–3300, ext. 2280Human Resources Management OfficerAnn Arbor Medical Center2215 Fuller Rd.Ann Arbor, MI 48105(313) 761–7938Human Resources Management OfficerAllen Park Medical CenterSouthfield & Outer DriveAllen Park, MI 48101(313) 562–6000, ext. 3323

Minnesota

St. Paul Regional Office and Insurance CenterSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Fort Snelling National CemeterySend to: Human Resources Management

OfficerVA Medical CenterOne Veterans DriveMinneapolis, MN 55417(612) 725–2061Fort Snelling Debt Management CenterSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerMinneapolis Medical CenterOne Veterans DriveMinneapolis, MN 55417(612) 725–2061Human Resources Management OfficerSt. Cloud Medical Center4801 8th Street NorthSt. Cloud, MN 56303(612) 255–6301St. Paul Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical CenterOne Veterans DriveMinneapolis, MN 55417(612) 725–2061

Mississippi

Corinth National CemeterySend to: Human Resources Management

OfficerVA Medical Center1030 Jefferson AvenueMemphis, TN 38104(901) 523–8990, ext. 5928

VBA Southern Area Human ResourcesManagement Office

Human Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerBiloxi Medical Center400 Veterans Blvd.Biloxi, MS 39531(601) 388–5541, ext. 5780Biloxi National CemeteryHuman Resources Management OfficerVA Medical Center400 Veterans Blvd.Biloxi, MS 39531(601) 388–5541, ext. 5780Jackson Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerJackson Medical Center1500 W. Woodrow Wilson Blvd.Jackson, MS 39216(601) 364–1239Natchez National CemeterySend to: Human Resources Management

OfficerVA Medical Center1500 E. Woodrow Wilson Blvd.Jackson, MS 39216(601) 364–1239

Missouri

Human Resources Management OfficerSt. Louis Medical CenterJefferson Bks.St. Louis, MO 63106(314) 894–6620Human Resources Management OfficerPoplar Bluff Medical Center1500 N. Westwood Blvd.Poplar Bluff, MO 63901(314) 686–4151, ext. 328St. Louis Records Processing CenterSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerKansas City Medical Center4801 Linwood Blvd.Kansas City, MO 64128(816) 861–4700, ext. 6926Jefferson Barracks National CemeterySend to: Human Resources Management

OfficerVA Medical Center800 Hospital DriveColumbia, MO 65201(314) 443–2511, ext. 6261Human Resources Management OfficerColumbia Medical Center800 Hospital DriveColumbia, MO 65201(314) 443–2511, ext. 6261St. Louis Regional OfficeSend to: VBA Central Area Human Resources

Management Officer


Human Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Veterans Canteen Service Field OfficeSend to: Human Resources Management

OfficerVA Medical CenterJefferson BarracksSt. Louis, MO 63106(314) 894–6620Springfield National CemeterySend to: Human Resources Management

OfficerVA Medical Center1100 N. College AvenueFayetteville, AR 72703(501) 444–5020

Montana

Human Resources Management OfficerFort Harrison Medical Center and Regional

OfficeFort Harrison, MT 59636(406) 447–7933Human Resources Management OfficerMiles City Medical Center210 South WinchesterMiles City, MT 59301–4798(406) 232–8287

Nebraska

Lincoln Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerLincoln Medical Center600 South 70th StreetLincoln, NE 68510(402) 489–3802, ext. 7819Human Resources Management OfficerGrand Island Medical Center2201 N. Broadwell Ave.Grand Island, NE 68803(308) 389–5177Maxwell (Fort McPherson) National


OfficerVA Medical Center2201 N. Broadwell Ave.Grand Island, NE 68803(308) 389–5177Human Resources Management OfficerOmaha Medical Center4101 Woolworth AvenueOmaha, NE 68105(402) 449–0614

Nevada

Human Resources Management OfficerReno Medical Center1000 Locust StreetReno, NV 89520–0111(702) 328–1260Reno Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215

(303) 231–5855Las Vegas Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center1000 Locust StreetReno, NV 89520–0111(702) 328–1260Henderson Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center1000 Locust StreetReno, NV 89520–0111(702) 328–1260

New Hampshire

Manchester Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerManchester Medical Center718 Smyth RoadManchester, NH 03104(603) 624–4366, ext. 6608

New Jersey

Beverly National CemeterySend to: Human Resources Management

OfficerVA Medical CenterUniversity & Woodland AvenuesPhiladelphia, PA 19104(215) 823–4088Newark Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerEast Orange Medical Center385 Tremont AvenueEast Orange, NJ 07018–0195(201) 676–1000, ext. 1366James J. Howard Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center385 Tremont AvenueEast Orange, NJ 07018–0195(201) 676–1000, ext. 1366Newark Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center385 Tremont AvenueEast Orange, NJ 07018–0195(201) 676–1000, ext. 1366Human Resources Management OfficerLyons Medical CenterKnollcroft RoadLyons, NJ 07939(908) 647–0180, ext. 4002

New Mexico

Albuquerque Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director

126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Santa Fe National CemeterySend to: Human Resources Management

OfficerVA Medical Center2100 Ridgecrest Dr., SE.Albuquerque, NM 87108–5138(505) 256–5702Human Resources Management OfficerAlbuquerque Medical Center2100 Ridgecrest Dr., SE.Albuquerque, NM 87108–5138(505) 256–5702

New York

Human Resources Management OfficerBath Medical CenterBath, NY 14810(607) 776–2111, ext. 1239Human Resources Management OfficerBrooklyn Medical Center800 Poly PlaceBrooklyn, NY 11209(718) 630–3660Human Resources Management OfficerMontrose Medical CenterPO Box 100Montrose, NY 10548–0100(914) 737–4400, ext. 2553Human Resources Management OfficerSyracuse Medical Center800 Irving AvenueSyracuse, NY 13210–2799(315) 477–4531Human Resources Management OfficerBronx Medical Center130 W. Kingsbridge RoadBronx, NY 10468(718) 584–9000, ext. 6590Human Resources Management OfficerNew York Medical Center423 East 23rd StreetNew York, NY 10010(212) 686–7500, ext. 7635Human Resources Management OfficerCastle Point Medical Center, Route 9DCastle Point, NY 12511(914) 831–2000, ext. 5405Human Resources Management OfficerNorthport Medical Center79 Middleville RoadNorthport, NY 11768(516) 261–4400, ext. 2715Human Resources Management OfficerAlbany Medical Center113 Holland AvenueAlbany, NY 12208(518) 462–3311, ext. 2231Calverton National CemeterySend to: Human Resources Management

OfficerVA Medical Center79 Middleville RoadNorthport, NY 11768(516) 261–4400, ext. 2715Human Resources Management OfficerBuffalo Medical Center3495 Bailey AvenueBuffalo, NY 14215(716) 862–3605New York Regional Office


Send to: Eastern Area Servicing AssistanceCenter

Human Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerBatavia Medical Center222 Richmond Ave.Batavia, NY 14020(716) 343–7500, ext. 7272Bath (Elmira) National CemeterySend to: Human Resources Management

OfficerVA Medical CenterBath, NY 14810(607) 776–2111, ext. 1239Long Island National CemeterySend to: Human Resources Management

OfficerVA Medical Center79 Middleville RoadNorthport, NY 11768(516) 261–4400, ext. 2715Albany VA (Vet Center) OfficeSend to: Human Resources Management

OfficerVA Medical Center113 Holland AvenueAlbany, NY 12208(518) 462–3311, ext. 2231Brooklyn National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center800 Poly PlaceBrooklyn, NY 11209(718) 630–3660Brooklyn Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center800 Poly PlaceBrooklyn, NY 11209(718) 630–3660New York Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center423 East 23rd StreetNew York, NY 10010(212) 686–7500, ext. 7635New York Prosthetics CenterSend to: Human Resources Management

OfficerVA Medical Center423 East 23rd StreetNew York, NY 10010(212) 686–7500, ext. 7635New York Veterans Canteen Service Field


OfficerVA Medical Center423 East 23rd StreetNew York, NY 10010(212) 686–7500, ext. 7635Rochester VA (Vet Center) OfficeSend to: Human Resources Management

OfficerVA Medical Center222 Richmond Ave.Batavia, NY 14020(716) 343–7500, ext. 7272

Buffalo Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Rochester Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center222 Richmond Ave.Batavia, NY 14020(716) 343–7500, ext. 7272Human Resources Management OfficerCanandaigua Medical CenterCanandaigua, NY 14424(716) 394–2000, ext. 3700Syracuse VA OfficeSend to: Eastern Area Servicing Assistance


North Carolina

Human Resources Management OfficerFayetteville Medical Center2300 Ramsey StreetFayetteville, NC 28301(919) 822–7055Raleigh National CemeterySend to: Human Resources Management

OfficerVA Medical Center508 Fulton StreetDurham, NC 27705(919) 286–6901Human Resources Management OfficerDurham Medical Center508 Fulton StreetDurham, NC 27705(910) 286–6901Human Resources Management OfficerAsheville Medical Center1100 Tunnell RoadAsheville, NC 28805(704) 299–2535New Bern National CemeterySend to: Human Resources Management

OfficerVA Medical Center2300 Ramsey StreetFayetteville, NC 28301(919) 822–7055Salisbury National CemeterySend to: Human Resources Management

OfficerVA Medical Center1601 Brenner AvenueSalisbury, NC 28144(704) 638–3432Winston-Salem Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerSalisbury Medical Center1601 Brenner AvenueSalisbury, NC 28144

(704) 638–3432Wilmington National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center2300 Ramsey StreetFayetteville, NC 28301(919) 822–7055Winston-Salem Outpatient Regional OfficeSend to: Human Resources Management

OfficerVA Medical Center1601 Brenner AvenueSalisbury, NC 28144(704) 638–3432

North Dakota

Human Resources Management OfficerFargo Medical and Regional Office Center655 First AvenueFargo, ND 58102(701) 232–3241

Ohio

Human Resources Management OfficerColumbus Outpatient Clinic2090 Kenny RoadColumbus, OH 43221(614) 257–5501Cleveland Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Dayton National CemeterySend to: Human Resources Management

OfficerVA Medical Center4100 W. Third StreetDayton, OH 45428(513) 262–2107Human Resources Management OfficerCincinnati Medical Center3200 Vine StreetCincinnati, OH 45220(513) 559–5051Cincinnati VA OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Columbus VA OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerDayton Medical Center4100 W. Third StreetDayton, OH 45428(513) 262–2107Human Resources Management OfficerCleveland Medical Center10000 Brecksville Rd.Brecksville, OH 44141(216) 526–3030, ext. 7900Human Resources Management OfficerChillicothe Medical Center


17273 State Route 104Chillicothe, OH 45601(614) 773–1141, ext. 7538

Oklahoma

Fort Gibson National CemeterySend to: Human Resources Management

OfficerVA Medical CenterHonor Heights DriveMuskogee, OK 74401(918) 683–3261, ext. 404Human Resources Management OfficerOklahoma City Medical Center921 NE 13th StreetOklahoma City, OK 73104(405) 270–5157Muskogee Regional OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerMuskogee Medical CenterHonor Heights DriveMuskogee, OK 74401(918) 683–3261, ext. 404Oklahoma City VA OfficeSend to: VBA Southern Area Human


Oregon

Portland Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Human Resources Management OfficerWhite City Medical Center8495 Craterlake HighwayWhite City, OR 97503–1088(503) 826–2111, ext. 3204Human Resources Management OfficerRoseburg Medical Center913 NW Garden Valley Blvd.Roseburg, OR 97470–6153(503) 440–1260Human Resources Management OfficerPortland Medical Center3710 SW US Veterans Hospital Rd.Portland, OR 97207–1034(503) 220–3403Eagle Point National CemeterySend to: Human Resources Management

OfficerVA Medical Center8495 Craterlake HighwayWhite City, OR 97503–1088(503) 826–2111, ext. 3204Willamette National CemeterySend to: Human Resources Management

OfficerVA Medical Center3710 SW US Veterans Hospital Rd.Portland, OR 97207–1034(503) 220–3403

Pennsylvania

Human Resources Management OfficerPittsburgh Medical CenterUniversity Drive CPittsburgh, PA 15240(412) 692–3240Philadelphia Benefits Delivery CenterSend to: Human Resources Management

LiaisonVA Regional Office5000 Wissahickon AvenuePO Box 13399Philadelphia, PA 19101(215) 951–5534Human Resources Management OfficerWilkes-Barre Medical Center1111 East End BoulevardWilkes-Barre, PA 18711(717) 821–7209Philadelphia Systems Development CenterSend to: Human Resources Management

LiaisonVA Regional Office5000 Wissahickon AvenuePO Box 13399Philadelphia, PA 19101(215) 951–5534Philadelphia National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical CenterUniversity & Woodland AvenuesPhiladelphia, PA 19104(215) 823–4088Annville (Indiantown Gap) National


OfficerVA Medical Center1700 S. Lincoln AvenueLebanon, PA 17042(717) 272–6621, ext. 4055Human Resources Management OfficerPhiladelphia Medical CenterUniversity & Woodland AvenuesPhiladelphia, PA 19104(215) 823–4088Human Resources Management OfficerAltoona Medical Center2907 Pleasant Valley Blvd.Altoona, PA 16602–4377(814) 943–8164, ext. 7039Human Resources Management OfficerLebanon Medical Center1700 S. Lincoln AvenueLebanon, PA 17042(717) 272–6621, ext. 4055Harrisburg Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center1700 S. Lincoln AvenueLebanon, PA 17042(717) 272–6621, ext. 4055Human Resources Management OfficerCoatesville Medical Center1400 BlackHorse Hill Rd.Coatesville, PA 19320–2096(610) 383–0234Human Resources Management OfficerPittsburgh (HD) Medical Center7180 Highland DrivePittsburgh, PA 15206–1297

(412) 365–4755Human Resources Management OfficerButler Medical Center325 New Castle RoadButler, PA 16001–2480(412) 477–5051Pittsburgh Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Philadelphia Regional OfficeHuman Resources Management Liaison5000 Wissahickon AvenuePO Box 13399Philadelphia, PA 19101(215) 951–5534Human Resources Management OfficerErie Medical Center135 East 38th StreetErie, PA 16504(814) 868–6205

Philippines

Manila Regional Office Outpatient ClinicManila Regional Office CenterSend to: Director, Department of Veterans

AffairsAPO, San Francisco, CA 96528011–632–521–7116

Puerto Rico

Puerto Rico National CemeterySend to: Human Resources Management

OfficerVA Medical CenterOne Veterans PlazaSan Juan, PR 00927–5800(809) 766–5485Human Resources Management OfficerSan Juan Medical CenterOne Veterans PlazaSan Juan, PR 00927–5800(809) 766–5485Mayaguez Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical CenterOne Veterans PlazaSan Juan, PR 00927–5800(809) 766–5485San Juan Regional OfficeSend to: VBA Southern Area Human


Rhode Island

Human Resources Management OfficerProvidence Medical Center830 Chalkstone AvenueProvidence, RI 02908–4799(401) 457–3072Providence Regional OfficeSend to: Eastern Area Servicing Assistance



South Carolina

Florence National CemeterySend to: Human Resources Management

OfficerVA Medical Center6439 Garners Ferry Rd.Columbia, SC 29201–1639(803) 695–6835Human Resources Management OfficerColumbia Medical Center6439 Garners Ferry Rd.Columbia, SC 29201–1639(803) 695–6835Greenville Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center6439 Garners Ferry Rd.Columbia, SC 29201–1639(803) 695–6835Human Resources Management OfficerCharleston Medical Center109 Bee StreetCharleston, SC 29401–5799(803) 577–5011, ext. 7610Beaufort National CemeterySend to: Human Resources Management

OfficerVA Medical Center109 Bee StreetCharleston, SC 29401–5799(803) 577–5011, ext. 7610Columbia Regional OfficeSend to: VBA Southern Area Human


South Dakota

Human Resources Management OfficerHot Springs Medical Center500 North 5th StreetHot Springs, SD 57747(605) 745–2018Hot Springs National CemeterySend to: Human Resources Management

OfficerVA Medical Center500 North 5th StreetHot Springs, SD 57747(605) 745–2018Human Resources Management OfficerFort Meade Medical Center113 Comanche RoadFort Meade, SD 57741(605) 347–7090Fort Meade (Black Hills) National CemeterySend to: Human Resources Management

OfficerVA Medical Center113 Comanche RoadFort Meade, SD 57741(605) 347–7090Human Resources Management OfficerSioux Falls Medical and Regional Office

CenterPO Box 50462501 W. 22nd St.Sioux Falls, SD 57117(605) 333–6852

Tennessee

Mountain Home National Cemetery


VA Medical CenterJohnston CityMountain Home, TN 37684(615) 926–1171, ext. 7181Nashville (Madison) National CemeterySend to: Human Resources Management

OfficerVA Medical Center1310 24th Avenue SouthNashville, TN 37212–2637(615) 327–5381Chattanooga National CemeterySend to: Human Resources Management

OfficerVA Medical Center3400 Lebanon RoadMurfreesboro, TN 37129–1236(615) 893–1360, ext. 3317Knoxville National CemeterySend to: Human Resources Management

OfficerVA Medical CenterJohnston CityMountain Home, TN 37684(615) 926–1171, ext. 7181Memphis National CemeterySend to: Human Resources Management

OfficerVA Medical Center1030 Jefferson AvenueMemphis, TN 38104(901) 523–8990, ext. 5928Human Resources Management OfficerMemphis Medical Center1030 Jefferson AvenueMemphis, TN 38104(901) 523–8990, ext. 5928Human Resources Management OfficerMountain Home Medical CenterJohnston CityMountain Home, TN 37684(615) 926–1171, ext. 7181Human Resources Management OfficerNashville Medical Center1310 24th Avenue SouthNashville, TN 37212–2637(615) 327–5381Knoxville Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center1310 24th Avenue SouthNashville, TN 37212–2637(615) 327–5381Nashville Regional OfficeSend to: VBA Southern Area Human


Texas

Human Resources Management OfficerSan Antonio Medical Center7400 Merton Minter Blvd.San Antonio, TX 78284(210) 617–5300, ext. 6732Corpus Christi Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center

7400 Merton Minter Blvd.San Antonio, TX 78284(210) 617–5300, ext. 6732McAllen Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center7400 Merton Minter Blvd.San Antonio, TX 78284(210) 617–5300, ext. 6732Human Resources Management OfficerTemple Medical Center1901 S. 1st StreetTemple, TX 76504(817) 778–4811, ext. 4429Human Resources Management OfficerAustin Automation Center1615 E. Woodard StreetAustin, TX 78772(512) 326–6054Human Resources Management OfficerWaco Medical Center4800 Memorial DriveWaco, TX 76711(817) 752–6581, ext. 6346Waco Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center4800 Memorial DriveWaco, TX 76711(817) 752–6581, ext. 6346Human Resources Management OfficerDallas Medical Center4500 S. Lancaster RoadDallas, TX 75216(214) 372–7032Human Resources Management OfficerHouston Medical Center2002 Holcombe Blvd.Houston, TX 77030(713) 794–7458Beaumont Outpatient Clinic SubstationSend to: Human Resources Management

OfficerVA Medical Center2002 Holcombe Blvd.Houston, TX 77030(713) 794–7458Lufkin Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center2002 Holcombe Blvd.Houston, TX 77030(713) 794–7458Human Resources Management OfficerWaco Medical Center4800 Memorial DriveWaco, TX 76711(817) 752–6581, ext. 6346Human Resources Management OfficerEl Paso Outpatient Clinic5919 Brook Hollow DriveEl Paso, TX 79925(915) 540–7878Fort Bliss National CemeterySend to: Human Resources Management

OfficerEl Paso Outpatient Clinic5919 Brook Hollow DriveEl Paso, TX 79925(915) 540–7878Houston Regional Office


Send to: VBA Southern Area HumanResources Management Office

Human Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140San Antonio VA OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Human Resources Management OfficerBig Spring Medical Center2400 Gregg St.Big Spring, TX 79720(915) 264–4820Austin Systems Development CenterSend to: Human Resources Management

OfficerAustin Automation Center1615 E. Woodard StreetAustin, TX 78772(512) 326–6054Human Resources Management OfficerAmarillo Medical Center6010 Amarillo Blvd. WestAmarillo, TX 79106(806) 354–7827Houston National CemeterySend to: Human Resources Management

OfficerVA Medical Center2002 Holcombe Blvd.Houston, TX 77030(713) 794–7458San Antonio National Cemetery Area OfficerSend to: Human Resources Management

OfficerVA Medical Center7400 Merton Minter Blvd.San Antonio, TX 78284(210) 617–5300, ext. 6732Fort Sam Houston National CemeterySend to: Human Resources Management

OfficerVA Medical Center7400 Merton Minter Blvd.San Antonio, TX 78284(210) 617–5300, ext. 6732Human Resources Management OfficerKerrville Medical Center3600 Memorial Blvd.Kerrville, TX 78028(210) 792–2518Kerrville National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center3600 Memorial Blvd.Kerrville, TX 78028(210) 792–2518Human Resources Management OfficerMarlin Medical Center1016 Ward StreetMarlin, TX 76661(817) 883–3511, ext. 4702Human Resources Management OfficerBonham Medical CenterEast Ninth & Lipscomb StreetBonham, TX 75418–4091(903) 583–2111, ext. 6331Waco Regional Office

Send to: VBA Southern Area HumanResources Management Office

Human Resources Managment Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Dallas VA OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Lubbock VA OfficeSend to: VBA Southern Area Human

Resources Management OfficeHuman Resources Management Director6508 Dogwood Parkway, Suite EJackson, MS 39213(601) 965–4140Lubbock Outpatient ClinicSend to: Human Resources Management

OfficerVA Medical Center6010 Armarillo Blvd. WestAmarillo, TX 79106(806) 354–7827Austin Finance CenterSend to: Human Resources Management

OfficerAustin Automation Center1615 E. Woodward StreetAustin, TX 78772(512) 326–6054

Utah

Salt Lake City Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 80215(303) 231–5855Human Resources Management OfficerSalt Lake City Medical Center500 Foothill Blvd.Salt Lake City, UT 84148–0001(801) 584–1284

Vermont

Human Resources Management OfficerWhite River Junction Medical and Regional

Office CenterWhite River Junction, VT 05009(802) 295–9363, ext. 5350

Virginia

Human Resources Management OfficerRichmond Medical Center1201 Broad Rock Blvd.Richmond, VA 23249(804) 230–1305Human Resources Management OfficerHampton Medical Center100 Emancipation RoadHampton, VA 23667(804) 722–9961, ext. 3160Richmond National CemeterySend to: Human Resources Management

OfficerVA Medical Center1201 Broad Rock Blvd.Richmond, VA 23249(804) 230–1305Quantico National Cemetery


VA Medical Center50 Irving Street, NW.Washington, DC 20422(202) 745–8200Hampton National CemeterySend to: Human Resources Management

OfficerVA Medical Center100 Emancipation RoadHampton, VA 23667(804) 722–9961, ext. 3160Culpeper National CemeterySend to: Human Resources Management

OfficerVA Medical CenterRoute 9Martinsburg, WV 25401(304) 263–0811, ext. 3237Roanoke Regional OfficeSend to: Eastern Area Servicing Assistance

CenterHuman Resources Management Director31 Hopkins PlazaBaltimore, MD 21202–2004(410) 962–4090Human Resources Management OfficerSalem Medical Center1970 Roanoke Blvd.Salem, VA 24153(703) 982–2463, ext. 2812Danville National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1970 Roanoke Blvd.Salem, VA 24153(703) 982–2463, ext. 2812Alexandria National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center50 Irving Street, NW.Washington, DC 20422(202) 745–8200Leesburg National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center50 Irving Street, NW.Washington, DC 20422(202) 745–8200Mechanicsville National Cemetery Area


OfficerVA Medical Center1201 Broad Rock Blvd.Richmond, VA 23249(804) 230–1305Sandston National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1201 Broad Rock Blvd.Richmond, VA 23249(804) 230–1305Hopewell National Cemetery Area OfficeSend to: Human Resources Management

OfficerVa Medical Center1201 Broad Rock Blvd.Richmond, VA 23249


(804) 230–1305Staunton National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical Center1970 Roanoke Blvd.Salem, VA 24153(703) 982–2463, ext. 2812Winchester National Cemetery Area OfficeSend to: Human Resources Management

OfficerVA Medical CenterRoute 9Martinsburg, WV 25401(304) 263–0811, ext. 3237

Washington

Seattle Regional OfficeSend to: VBA Western Area Human

Resources Management OfficeHuman Resources Management Director126000 W. Colfax Ave., Suite C–300Lakewood, CO 82015(303) 231–5855Human Resources Management OfficerWalla Walla Medical Center77 Wainwright DriveWalla Walla, WA 99362–3975(509) 527–3453Human Resources Management OfficerSeattle Medical Center1660 S. Columbian WaySeattle, WA 98108–1597(206) 764–2135Seattle Outpatient Clinic (Vet Center)Send to: Human Resources Management

OfficerVA Medical Center1660. S. Columbian WaySeattle, WA 98108–1597(206) 764–2135Human Resources Management OfficerTacoma Medical CenterAmerican LakeTacoma, WA 98493(206) 582–8440, ext. 6054Human Resources Management OfficerSpokane Medical Center4815 North Assembly StreetSpokane, WA 99205–6197(509) 327–0242

West Virginia

Human Resources Management OfficerHuntington Medical Center1540 Spring Valley RoadHuntington, WV 25704(304) 429–6755, ext. 2343Human Resources Management OfficerBeckley Medical Center200 Veterans AvenueBeckley, WV 25801(304) 255–2121, ext. 4461Human Resources Management OfficerClarksburg Medical Center1 Medical Center Dr.Clarksburg, WV 26301(304) 623–7697Human Resources Management OfficerMartinsburg Medical CenterRoute 9Martinsburg, WV 25401(304) 263–0811, ext. 3237West Virginia (Grafton) National Cemetery


VA Medical Center1 Medical Center Dr.Clarksburg, WV 26301(304) 623–7697Huntington Regional OfficeSend to: Eastern Area Servicing Assistance


Wisconsin

Wood National CemeterySend to: Human Resources Management

OfficerVA Medical Center5000 W. National AvenueMilwaukee, WI 53295(414) 384–2000Milwaukee Regional OfficeSend to: VBA Central Area Human Resources

Management OfficeHuman Resources Management Director38701 Seven Mile Road, Suite 345Livonia, MI 48152(313) 953–8830Human Resources Management OfficerMilwaukee Medical Center5000 W. National AvenueMilwaukee, WI 53295(414) 384–2000, ext. 2930Human Resources Management OfficerTomah Medical Center500 E. Veterans StreetTomah, WI 54660(608) 372–1636Human Resources Management OfficerMadison Medical Center2500 Overlook TerraceMadison, WI 53705(608) 262–7026

Wyoming

Human Resources Management OfficerSheridan Medical Center1898 Fort RoadSheridan, WY 82801–8320(307) 672–1673Human Resources Management OfficerCheyenne Medical and Regional Office

Center360 East Pershing Blvd.Cheyenne, WY 82001(307) 778–7331

Social Security Administration

Office of General CounselRoom 611, Altmeyer Blvd.6401 Security Blvd.Baltimore, MD 21235(410) 965–3169

II. Agencies

American Battle Monuments Commission

Chief, AdministrationRoom 5127, Pulaski Building20 Massachusetts Avenue, NW.Washington, DC 20314–0001(202) 761–0533

Architectural and Transportation BarriersCompliance Board

General Counsel

1331 F Street, NW., #1000Washington, DC 20004–1111(202) 272–5434, ext. 16

Arms Control and Disarmament AgencyGeneral Counsel320 21st Street, NW.Washington, DC 20451(202) 647–3596

Equal Employment OpportunityManagement DirectorOffice of Management1801 L Street, NW.Washington, DC 20507(202) 663–4411

Export-Import Bank of the United StatesAssociate General Counsel811 Vermont Avenue, NW., Room 955Washington, DC 20571(202) 565–3432

Farm Credit Administration

Chief, Human Resources DivisionFarm Credit Administration1501 Farm Credit DriveMcLean, VA 22102–5090(703) 883–4122

Federal Communications Commission (FCC)

Chief, Payroll/Personnel Support Branch1919 M Street, NW., Room 212Washington, DC 20554(202) 481–0136

Federal Deposit Insurance Corporation

Chief, Operations SectionOffice of Personnel Management550 17th Street, NW., PA–1730–5018Washington, DC 20429(202) 942–3401

Federal Election Commission

Assistant General Counsel—AdministrativeLaw

999 E Street, NW.Washington, DC 20463(202) 219–3690

Federal Energy Regulatory Commission

Chief, Payroll BranchDepartment of EnergyGTN Building, Room E–259Washington, DC 20585(301) 903–4012

Federal Housing Finance Board

Federal Housing Finance Board1777 F Street, NW.Washington, DC 20006(202) 408–2685 or (202) 408–2686

Federal Retirement Thrift Investment Board

Director of Personnel1250 H Street, NW., Suite 400Washington, DC 20005(202) 942–1680

Federal Trade Commission

Director, Division of Personnel6th & Pennsylvania Avenue, NW., Room H–

148Washington, DC 20580(202) 326–2022

General Accounting Office

Comptroller General


Attn: Chief, Payroll/Personnel SystemsBranch

Personnel, Room 1180441 G Street, NW.Washington, DC 20415(202) 512–5811

General Services Administration

Office of PersonnelPersonnel Operations DivisionOffice of General Counsel18th & F Streets, NW., Room 1100Washington, DC 20405(202) 501–0610

New England Region (ME, VT, NH, MA, RI,CT)

Office of Personnel10 Causeway Street, Room 1095Boston, MA 02222(617) 565–5860

Northeast and Caribbean Region (NY, NJ, PR,VI)

Office of Personnel26 Federal Place, Room 18–110New York, NY 10278(212) 264–8302 or (212) 264–8303

Mid-Atlantic Region (PA, WV, VA, MD, DE)

Office of PersonnelWanamaker Building100 Penn Square EastPhiladelphia, PA 19107–3396(215) 656–5642

Southeast Region—Atlanta (KY, TN, MS, AL,GA, NC, SC, FL)

Office of Personnel401 West Peachtree Street, NW., Room 2802Atlanta, GA 30365–2550(404) 331–5171

Great Lakes Region (MN, WI, IL, MI, IN, OH)

Office of Personnel230 S. Dearborn Street, Room 3730Mail Stop 37–7Chicago, IL 60604(312) 353–0992

The Heartland Region (KS, NE, IA, MO)

Office of Personnel1500 E. Bannister RoadKansas City, MO 64131(816) 926–7208

Greater Southwest Region (TX, NM, OK, AR,LA) and Rocky Mountain Region (MT, ND,SD, WY, UT, CO)

Office of Personnel819 Taylor Street, Room 9A00(817) 334–2361 or(817) 334–3442 or(817) 334–2741

Pacific Rim Region (CA, NV, AZ, HI, GU,CM) and Northwest/Arctic Region (WA, ID,OR, AK)

Office of Personnel525 Market StreetSan Francisco, CA 94105(415) 744–5189National Capital Region (DC, surrounding VA

& MD counties)Office of Personnel7th & D Streets, SW., Room 1030Wahington, DC 20407(202) 708–5319

If initial contact is not made with one ofthe above agent offices, GSA employees (ordesignees) on site who are contacted byprocess servers have been instructed tocontact the appropriate office listed above forguidance in fulfilling GSA’s responsibilitiesfor facilitation of service of process toestablish paternity and establish a supportobligation.

Inter-American Foundation

General Counsel901 N. Stuart Street, 10th FloorArlington, VA 22203(703) 841–3894

Interstate Commerce Commission

Budget OfficerPayroll—Room 133012th & Constitution Avenue, NW.Washington, DC 20423(202) 927–5827

JFK Assassination Records Review Board

General Counsel600 E Street, NW.Washington, DC 20530

Merit Systems Protection Board

Director, Human Resources ManagementDivision

Office of Planning and Resource Management1120 Vermont Avenue, NW.Washington, DC 20419(202) 653–5916

National Archives & Records Administration

Supervisory Personnel Staffing SpecialistPersonnel Operations Branch9700 Page Avenue, Room 2002St. Louis, MO 63132(314) 538–4953

National Capital Planning Commission

General Counsel801 Pennsylvania Avenue, NW., Suite 301Washington, DC 20576(202) 724–0174

National Credit Union Administration

General CounselOffice of General Counsel1775 Duke StreetAlexandria, VA 22314–3428(703) 518–6540

National Endowment for the Humanities

Deputy General Counsel1100 Pennsylvania Avenue, NW.Washington, DC 20506(202) 606–8322

National Science Foundation

General Counsel4201 Wilson BoulevardArlington, VA 22230(703) 306–1060

Nuclear Regulatory Commission

Chief, Policy and Labor RelationsOffice of PersonnelWashington, DC 20555(301) 415–7526

Nuclear Waste Technical Review Board

Administrative Officer1100 Wilson Blvd., Suite 910

Arlington, VA 22209(703) 235–4473

Office of Special Counsel

Director for Management andAssociate Special Counsel for Planning and

Advice1730 M Street, NW., Suite 201Washington, DC 20036–4505(202) 653–9485

Overseas Private Investment Corporation

DirectorHuman Resources Management1100 New York Avenue, NW.Washington, DC 20527(202) 336–8524

Panama Canal Commission

SecretaryOffice of the SecretaryInternational Square1825 I Street, NW., Suite 1050Washington, DC 20006–5402(202) 634–6441

Peace Corps

Associate General Counsel1990 K Street, NW., Room 8300Washington, DC 20526(202) 606–3114

Pennsylvania Avenue DevelopmentCorporation

Director, Finance & AdministrationPennsylvania Avenue Development Corp.1331 Pennsylvania Avenue, NW., Suite 1220

NorthWashington, DC 20004–1703(202) 724–9067

Pension Benefit Guaranty Corporation

General Counsel1200 K Street, NW.Washington, DC 20005–4026(202) 326–4020

Railroad Retirement Board

Deputy General CounselBureau of Law844 N. Rush StreetChicago, IL 60611(312) 751–4935

Resolution Trust Corporation

Payroll Specialist/Paralegal Specialist1717 H Street, NW.Washington, DC 20434(202) 736–0798(202) 736–3095

Securities & Exchange Commission

Personnel Management SpecialistOffice of Administrative & Personnel

Management450 5th Street, NW., (Stop 2–3)Washington, DC 20549

Selective Service System

General Counsel1515 Wilson BoulevardArlington, VA 22209–2425(703) 235–2050

Small Business Administration

Chief, Personnel/Payroll Systems Branch orPayroll Analyst


409 3rd Street, SW., Suite 4200Washington, DC 20416(202) 205–6148 or (202) 205–6213

III. United States Postal Service

United States Postal Service

The United States Postal Service willcooperate with process servers in the serviceof process regarding private civil or criminalmatters only when service is attempted inperson on the subject employee at theemployee’s place of employment, inaccordance with the provisions of 39 CFR243.2(g). Service of summonses andcomplaints, in private matters, by mail toeither the agent or employees at theirworkstations is not permitted. The PostalService agent will attempt to facilitate andassist personnel of child support enforcementagencies within the limitations imposed bythe Privacy Act, 5 U.S.C. 552a and relevantPostal regulations. The requester mustfurnish the name and social security numberof the person who is the subject of theinquiry.ManagerPayroll Processing Branch1 Federal DriveFt. Snelling, MN 55111–9650(612) 293–6300

IV. Executive Office of the President

Executive Office of the President

General CounselOffice of AdministrationOld Executive Office BuildingWashington, DC 20503(202) 395–2273


FEDERAL DEPOSIT INSURANCECORPORATION

12 CFR Part 360

RIN 3064–AB25

Receivership Rules

AGENCY: Federal Deposit InsuranceCorporation.ACTION: Final rule.

SUMMARY: The final rule interprets aprovision of an amendment, enacted onAugust 10, 1993, to section 11(d)(11) ofthe Federal Deposit Insurance Act (FDIAct) providing for a national depositorpreference for amounts realized fromthe liquidation or other resolution ofany depository institution insured bythe Federal Deposit InsuranceCorporation (FDIC). The regulationdescribes the expenses that areincludable under the priority in the newstatutory amendment for administrativeexpenses of the receiver. The intendedeffect of the final rule is to clarify thatpost-closing and certain pre-closingexpenses may be paid as administrative

expenses of the receiver in connectionwith the liquidation or other resolutionof FDIC-insured institutions. The finalrule replaces an interim rule that hasbeen in effect since August 13, 1993,and is essentially unchanged from theinterim provisions.EFFECTIVE DATE: The final rule iseffective July 10, 1995.FOR FURTHER INFORMATION CONTACT:Stephen N. Graham, Associate Director,Division of Depositor and Asset Services(202/898–7377), Rodney D. Ray, SeniorCounsel, Legal Division (202/736–0348),Joseph A. DiNuzzo, Acting SeniorCounsel, Legal Division (202/898–7349),Federal Deposit Insurance Corporation,Washington, DC, 20429.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction ActNo collections of information

pursuant to section 3504(h) of thePaperwork Reduction Act (44 U.S.C.3501 et seq.) are contained in this finalrule. Consequently, no information hasbeen submitted to the Office ofManagement and Budget for review.

Regulatory Flexibility ActThe Board hereby certifies that the

final rule will not have a significanteconomic impact on a substantialnumber of small entities within themeaning of the Regulatory FlexibilityAct (5 U.S.C. 601 et seq.). It will notimpose burdens on depositoryinstitutions of any size and will nothave the type of economic impactaddressed by the Act. Accordingly, theAct’s requirements regarding an initialand final regulatory flexibility analysis(Id. at 603 & 604) are not applicablehere.

Background

A. National Depositor PreferenceLegislation

On August 10, 1993, the Presidentsigned into law a bill that amendedsection 11(d)(11) of the FDI Act (12U.S.C. 1821(d)(11)) to provide for anational depositor preference foramounts realized from the liquidation orother resolution of FDIC-insureddepository institutions. Pub. L. 103–66,107 Stat. 312 (1993).

Generally, the amendment providesthat distributions shall be made from allfuture receivership estates in thefollowing order:

1. Administrative expenses of thereceiver;

2. Deposit liability claims;3. Other general or senior liabilities of

the institution, other than subordinatedobligations or shareholder claims;

4. Subordinated obligations; and

5. Shareholder claims.The legislation applies to all

receiverships of insured institutionsestablished after its enactment date andsupersedes any inconsistent state orother federal distribution provisions. Asnoted, the first priority encompasses‘‘administrative expenses of thereceiver’’. The language of the statuteexplicitly covers post-appointmentobligations incurred by a receiver aspart of the liquidation of an institution.The FDIC Board of Directors (Board ofDirectors) has determined that thispriority also covers certain expensesincurred prior to the appointment of thereceiver. Such expenses includeobligations which may have beenincurred prior to the closing of theinstitution but which the receiverdetermines should be paid by thereceiver to facilitate the smooth andorderly transfer of banking operations toa purchasing institution or to obtain anaccounting and orderly disposition ofthe assets of the institution. Theseexpenses may include, but are notlimited to, for example, the payment ofthe institution’s last payroll, guardservices, data processing services,utilities and expenses related to leasedfacilities. Generally, they do not includeexpenses such as severance pay claims,golden parachute claims and claimsarising from contract repudiations. Thefinal rule limits the inclusion ofexpenses within the scope of‘‘administrative expenses’’ to those thatthe receiver determines are necessaryand appropriate for the orderlyliquidation or resolution of theinstitution. This general language isnecessitated by the variety of suchexpenses ordinarily incurred by areceiver for a particular faileddepository institution.

The legislative history of the statute isexplicit on the coverage of certain pre-receivership obligations within thescope of the ‘‘administrative expenses’’priority of the receivership. The House/Senate Conference Report on thelegislation notes that: ‘‘it is theconferees’ intent that the FDIC interpretthe depositor preference provision forthe payment of administrative expensesof the receiver as including ordinaryand necessary expenses of theinstitution that are unpaid at the time offailure, but only those that the receiverdetermines are necessary to maintainservices and facilities to effect anorderly resolution of the institution’’.H.R. Rep. No. 213, § 3001, OmnibusBudget Reconciliation Act of 1993,103rd Cong., 1st Sess. (1993). Theconferees noted that such coverage ofexpenses is the FDIC’s current practice(in its role as receiver of failed insured


1 Section 302 of RCDRIA provides that any newregulations and amendments to existing regulationswhich impose reporting, disclosure or otherrequirements on insured depository institutionsmay only take effect on the first day of a calendarquarter unless certain exceptions are satisfied.

institutions): ‘‘the conferees intend thatthe FDIC continue its current practice ofpaying these expenses prior to payingdeposits or other expenses if itdetermines such payment is required foran orderly resolution of the institution’’.Id.

B. The Interim RuleTo prevent any ambiguity on the

coverage of administrative expenses ofthe institution/receiver that wereincurred by the institution prior to theappointment of a receiver, the FDICissued an interim rule published in theFederal Register on August 13, 1993 (58FR 43069). The interim rule clarifiedthat receivers have the authority to paycertain pre-closing obligations of thefailed institution as an ‘‘administrativeexpense’’ under the statute.

The Board of Directors haddetermined that, in order to ensure anorderly continuation of the handling ofclosed institutions, it was necessary toclarify the requirements of the statutoryamendment relative to the definitionand treatment of administrativeexpenses of the receiver of suchinstitutions. In the preamble to theinterim rule the Board of Directorsexplained the necessity to apply theinterim rule to all receiverships subjectto the new statutory amendment. Theinterim rule was amended by a finalrule which redesignated §§ 360.1through 360.3 as §§ 360.2 through 360.4,respectively (58 FR 67662 (Dec. 22,1993)).

The Final RuleThe final rule retains the section

added by the interim rule to Part 360 ofthe FDIC’s regulations (12 CFR Part 360)to clarify the priority for administrativeexpenses contained in the depositorpreference statute.

As provided for in the statute, allFDIC-insured institutions for which areceiver is appointed after the date ofenactment of the statute will be subjectto the priorities provided therein. Pre-appointment expenses that the receiverdetermines are within the scope of the‘‘administrative expenses’’ priority willbe included within that priority after theenactment date of the statute. As theconferees noted in House/SenateConference Report, ‘‘[p]rior to theimplementation of such regulations [toclarify the meaning of the termadministrative expenses], it is theconferees’ intent that the FDIC continueits current practice of paying theseexpenses before paying depositors’’. Id.

The current § 360.3 of the FDIC’sregulations (12 CFR 360.3) specifiesreceivership priorities for failed savingsassociations. These provisions will

continue to apply to such savingsassociations for which a receiver wasappointed on or prior to the effectivedate of the statutory amendment,August 10, 1993. Liquidations or otherresolutions of all insured depositoryinstitutions (including savingsassociations) for which a receiver isappointed after that date are subject tothe statutory amendments and interimrule and will be subject to the final rule.

The FDIC received one publiccomment on the interim rule. Thecomment was from a national bankingand thrift industry trade group whoexpressed full support for the interimrule.

Because the final rule is unchangedfrom the interim rule, which becameeffective on its issuance date of August13, 1993, the Board of Directors hasdetermined that good cause exists forwaiving the 30-day delayed effectivedate ordinarily required by theAdministrative Procedure Act (5 U.S.C.553). The Board of Directors also hasdetermined that section 302 of theRiegle Community Development andRegulatory Improvement Act of 1994(Pub. L. 103–325, 108 Stat. 2160) (1994)(RCDRIA) does not apply to the issuanceof the final rule.1 Thus, the final rulewill become effective upon itspublication date in the Federal Register.On that same date, the interim rule willbe replaced.

List of Subjects in 12 CFR Part 360Banks, banking, Savings associations.For the reasons set out in the

preamble, part 360 of chapter III of title12 of the Code of Federal Regulations isamended as follows:

PART 360—RESOLUTION ANDRECEIVERSHIP RULES

1. The authority citation for Part 360is revised to read as follows:

Authority: 12 U.S.C. 1821(d)(11),1823(c)(4); Sec. 401(h), Pub. L. 101–73, 103Stat. 357.

2. Section 360.3 is amended byrevising paragraph (f) to read as follows:

§ 360.3 Priorities.* * * * *

(f) Under the provisions of section11(d)(11) of the Act (12 U.S.C.1821(d)(11)), the provisions of this§ 360.3 do not apply to any receivershipestablished and liquidation or otherresolution occurring after August 10,1993.

3. Section 360.4 is revised to read asfollows:

§ 360.4 Administrative expenses.The priority for ‘‘administrative

expenses of the receiver’’, as that termis used in section 11(d)(11) of the Act(12 U.S.C. 1821(d)(11), shall includethose necessary expenses incurred bythe receiver in liquidating or otherwiseresolving the affairs of a failed insureddepository institution. Such expensesshall include pre-failure and post-failureobligations that the receiver determinesare necessary and appropriate tofacilitate the smooth and orderlyliquidation or other resolution of theinstitution.

Dated at Washington, D.C., this 27th day ofJune, 1995.

By order of the Board of Directors.Federal Deposit Insurance Corporation.

Jerry L. Langley,Executive Secretary.[FR Doc. 95–16671 Filed 7–7–95; 8:45 am]BILLING CODE 6714–01–P

ENVIRONMENTAL PROTECTIONAGENCY

40 CFR Part 80

[FRL–5255–8]

Extension of Stay of the ReformulatedGasoline Program: Nine Counties inNew York, Twenty-Eight Counties inPennsylvania, and Two Counties inMaine

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Final rule.

SUMMARY: In today’s action, EPA isextending the previous temporary stayof the reformulated gasoline programrequirements in nine opt-in counties inNew York, in twenty-eight opt-incounties in Pennsylvania and in twoopt-in counties in Maine. In a separateaction published June 14, 1995, EPAproposed to approve the requests foropt-out for these specified counties fromthe States of New York, Pennsylvania,and Maine. Today’s action stays theapplicability of the RFG requirementsfor these areas effective from July 1,1995, until the agency has completedrulemaking on the proposed opt-out forthese areas. Although EPA believes thatthe RFG program provides a highly cost-effective means of reducing ground-level ozone and toxic vehicle emissions,the Agency believes that states shouldbe given the flexibility to choose whichprograms best meet each state’s needsfor emissions reductions.


EFFECTIVE DATE: June 30, 1995.

ADDRESSES: Materials relevant to thisnotice have been placed in Docket A–94–68. The docket is located at the AirDocket Section (6102), U.S.Environmental Protection Agency, 401M Street SW., Washington, DC 20460, inroom M–1500 Waterside Mall.Documents may be inspected from 8a.m. to 5:30 p.m. A reasonable fee maybe charged for copying docket material.

FOR FURTHER INFORMATION CONTACT: Mr.Mark Coryell, U.S. EnvironmentalProtection Agency, Office of Air andRadiation, 401 M Street SW. (6406J),Washington, DC 20460, (202) 233–9014.

SUPPLEMENTARY INFORMATION: A copy ofthis action is available on the OAQPSTechnology Transfer Network BulletinBoard System (TTNBBS). The TTNBBScan be accessed with a dial-in phoneline and a high-speed modem (PH#919–541–5742). The parity of your modemshould be set to none, the data bits to8, and the stop bits to 1. Either a 1200,2400, or 9600 baud modem should beused. When first signing on, the userwill be required to answer some basicinformational questions for registrationpurposes. After completing theregistration process, proceed throughthe following series of menus:

(M) OMS(K) Rulemaking and Reporting(3) Fuels(9) Reformulated gasoline

A list of ZIP files will be shown, allof which are related to the reformulatedgasoline rulemaking process. Today’saction will be in the form of a ZIP fileand can be identified by the followingtitles: XTNDSTAY.ZIP. To downloadthis file, type the instructions below andtransfer according to the appropriatesoftware on your computer:

<D>ownload, <P>rotocol, <E>xamine,<N>ew, <L>ist, or <H>elp Selectionor <CR> to exit: D filename.zip

You will be given a list of transferprotocols from which you must chooseone that matches with the terminalsoftware on your own computer. Thesoftware should then be opened anddirected to receive the file using thesame protocol. Programs andinstructions for de-archivingcompressed files can be found via<S>ystems Utilities from the top menu,under <A>rchivers/de-archivers. Pleasenote that due to differences between thesoftware used to develop the documentand the software into which thedocument may be downloaded, changesin format, page length, etc. may occur.

I. Background

A. General Background onReformulated Gasoline Program andOpt-In Process

The reformulated gasoline program isdesigned to reduce ozone levels in thelargest metropolitan areas of the U.S.with the worst ground-level ozoneproblems by reducing vehicle emissionsof the ozone precursors, specificallyvolatile organic compounds (VOC),through fuel reformulation.Reformulated gasoline also achieves asignificant reduction in air toxics. InPhase II of the program, oxides ofnitrogen (NOX), another precursor ofozone, are reduced. The 1990amendments of the Clean Air Actrequire reformulated gasoline in thenine cities with the highest levels ofozone. Congress also provided theopportunity for states to choose to optinto the RFG program for their othernonattainment areas. EPA issued finalrules establishing requirements for RFGon December 15, 1993 (59 FR 7716,February 16, 1994).

The regulation issued in December of1993 did not include procedures foropting out of the RFG program, becauseEPA had not proposed and was notready to adopt such procedures at thattime. However, the Agency did indicatethat it intended to propose suchprocedures in a separate rule.

B. Jefferson County, New YorkJefferson County was included as a

covered area in EPA’s reformulatedgasoline program based on GovernorMario Cuomo’s request of October 28,1991, that this county be includedunder the Act’s opt-in provision forozone nonattainment areas (57 FR 7926,March 5, 1992). See 40 CFR80.70(j)(10)(vi). On November 29, 1994,EPA received a petition from theCommissioner of New York’sDepartment of EnvironmentalConservation, Mr. Langdon Marsh, toremove Jefferson County, New York,from the list of areas covered by therequirements of the reformulatedgasoline program. EPA understands thatCommissioner Marsh is acting forGovernor Cuomo on this matter. TheAdministrator responded to the State’srequest in a letter to CommissionerMarsh dated December 12, 1994, statingEPA’s intention to grant New York’srequest as of January 1, 1995, and toconduct rulemaking to implement theopt-out. On December 29, 1994, EPAissued a final rule staying theapplication of the reformulated gasolineprogram requirements in JeffersonCounty from January 1, 1995 until July1, 1995 (60 FR 2696, January 11, 1995).

This decision was based on theparticular circumstances that apply inJefferson County. On June 14, 1995, EPApublished a notice of proposedrulemaking proposing to removeJefferson County from the areas coveredby the reformulated gasoline program(60 FR 31269, June 14, 1995). In thesame notice, EPA also proposed toextend the stay of the reformulatedgasoline program for this area until theagency completes rulemaking on theproposed opt-out.

C. The Buffalo and Albany Areas of NewYork

The Buffalo and Albany ozonenonattainment areas were included ascovered areas in EPA’s reformulatedgasoline program based on GovernorMario Cuomo’s request of October 28,1991, that this county be includedunder the Act’s opt-in provision forozone nonattainment areas (57 FR 7926,March 5, 1992). See 40 CFR 80.70(j)(10)(i), (iii), (v), and (vii) through (xi). OnDecember 23, 1994, CommissionerMarsh of New York’s Department ofEnvironmental Conservation wrote torequest opt-out of the Albany andBuffalo ozone nonattainment areaswhich include the counties of Albany,Greene, Montgomery, Rensselaer,Saratoga, Schenectady, Erie andNiagara. The Assistant Administrator forAir and Radiation, Mary Nichols,responded to the state’s request in aletter to Commissioner Marsh datedDecember 28, 1994, stating EPA’sintention to grant New York’s request asof January 1, 1995, and to conductrulemaking to implement the opt-out.On December 29, 1995, EPA issued afinal rule staying the application of thereformulated gasoline programrequirements in these New Yorkcounties from January 1, 1995 until July1, 1995 (60 FR 2696, January 11, 1995).This decision was based on theparticular circumstances that apply inthese counties. On June 14, 1995, EPApublished a notice of proposedrulemaking proposing to remove theseNew York counties from the areascovered by the reformulated gasolineprogram (60 FR 31269, June 14, 1995).In the same notice, EPA also proposedto extend the stay of the reformulatedgasoline program in these counties untilthe agency completes rulemaking on theproposed opt-out.

D. Pennsylvania CountiesTwenty-eight counties in

Pennsylvania were included as coveredareas in EPA’s reformulated gasolineprogram based on Governor Robert P.Casey’s request dated September 25,1991 (56 FR 57986, November 15, 1991).


1 Several of the areas have requests pendingbefore the agency for redesignation to attainmentstatus. The other areas are expected to submit suchrequests.

See 40 CFR 80.70(j)(11) (i) through(xxviii). The counties referred to are thefollowing: Adams, Allegheny,Armstrong, Beaver, Berks, Blair, Butler,Cambria, Carbon, Columbia,Cumberland, Dauphin, Erie, Fayette,Lackawanna, Lancaster, Lebanon,Lehigh, Luzerne, Mercer, Monroe,Somerset, Northhampton, Perry,Washington, Westmoreland, Wyomingand York. On December 1, 1994, EPAreceived a petition from Governor Caseyto remove these twenty-eight countiesfrom the reformulated gasoline program.The Administrator responded to theState’s request in a letter to GovernorCasey dated December 12, 1994. In thisletter, the Administrator indicated thateffective January 1, 1995, and until theformal rulemaking to remove thetwenty-eight counties from the list ofcovered areas is completed, EPA wouldnot enforce the reformulated gasolinerequirements in these twenty-eightcounties. On December 29, 1994, EPAissued a final rule staying theapplication of the reformulated gasolineprogram requirements in thesePennsylvania counties from January 1,1995 until July 1, 1995 (60 FR 2696,January 11, 1995). This decision wasbased on the particular circumstancesthat apply in these twenty-eightcounties. On June 14, 1995, EPApublished a notice of proposedrulemaking proposing to remove thesetwenty-eight counties from the areascovered by the reformulated gasolineprogram (60 FR 31269, June 14, 1995).In the same notice, EPA also proposedto extend the stay of the reformulatedgasoline program in these counties untilthe agency completes rulemaking on theproposed opt-out.

E. Hancock and Waldo Counties inMaine

Hancock and Waldo Counties wereincluded as a covered areas in EPA’sreformulated gasoline program based onGovernor John R. McKernan’s request ofJune 26, 1991, that these counties beincluded under the Act’s opt-inprovision for ozone nonattainment areas(56 FR 46119, September 10, 1991). See40 CFR 80.70(j)(5) (viii) and (ix). OnDecember 27, 1994, EPA received apetition from the Acting Commissionerof Maine’s Department ofEnvironmental Protection, Ms. DeborahGarrett, to remove Hancock and WaldoCounties in Maine from the list of areascovered by the requirements of thereformulated gasoline program. EPAunderstands that Commissioner Garrettis acting for Governor McKernan in thismatter. The Assistant Administrator forAir and Radiation, Mary Nichols,responded to the state’s request in a

letter to Commissioner Garrett, datedDecember 27, 1994, stating EPA’sintention to grant Maine’s request, andconduct rulemaking to implement theopt-out. On December 29, 1994, EPAissued a final rule staying theapplication of the reformulated gasolineprogram requirements in these Mainecounties from January 1, 1995 until July1, 1995 (60 FR 2696, January 11, 1995).This decision was based on theparticular circumstances that apply inthese two counties. On June 14, 1995,EPA published a notice of proposedrulemaking proposing to removeHancock and Waldo Counties from theareas covered by the reformulatedgasoline program (60 FR 31269, June 14,1995). In the same notice, EPA alsoproposed to extend the stay of thereformulated gasoline program in thesecounties until the agency completesrulemaking on the proposed opt-out.

II. Extension of Stay Removing the NineNew York Counties, the Twenty-EightCounties in Pennsylvania, and TwoCounties in Maine From the List ofAreas Covered by the ReformulatedGasoline Requirements as of July 1,1995

On December 29, 1994, EPA issued afinal rule staying the application of thereformulated gasoline regulations forcertain areas that had opted in to thereformulated gasoline program. 60 FR2696 (January 11, 1995). This stayapplied to Jefferson County and theAlbany and Buffalo nonattainment areasof New York, the twenty-eight opt-incounties in Pennsylvania, and Hancockand Waldo Counties in Maine. It stayedthe regulations in these areas effectiveJanuary 1, 1995 until July 1, 1995.

EPA believes that the Act authorizesstates to opt out of the reformulatedgasoline program. EPA has proposedand, absent new information indicatingotherwise, believes it will beappropriate to grant the requests by thegovernors considering the lack ofadverse air quality impacts,1 therequests by the governors, the lack ofreliance on reformulated gasoline in thestates’ State Implementation Plans, andthe reasonable lead time provided toindustry. In light of the currentrulemaking on the opt-out requests forthese areas and the lack of any adverseenvironmental effects, the likelihood therulemaking will conclude in the opt-outof these areas, and the severe disruptionin starting the reformulated gasolineprogram in these areas on short notice,

EPA finds it would be inappropriate toimpose the reformulated gasolineprogram requirements in these areasduring the short time needed tocomplete opt-out rulemaking.

EPA is extending the stay to avoid theserious disruption to the gasolinedistribution system, the regulatedindustry, and the public, which wouldbe caused by a temporary imposition ofthe reformulated gasoline requirementsin these areas. It is necessary that allparties involved have the certainty andstability needed for successfulimplementation. EPA believes that thesecircumstances warrant an extension ofthe previous stay of the reformulatedgasoline requirements in these areasuntil EPA takes final action on theproposed opt-outs. That will provideadequate time to complete rulemakingand take final action on these opt-outrequests.

III. Response to CommentsA comment period was set for the

period of June 14 through June 28, 1995.During that period two comments werereceived.

One commenter representing fueloxygenate producers objects to EPA’sproposed extension of the stay, arguingthat EPA does not have authority undersection 211(k) of the Act to stay theeffective date of these opt-in areas.According to this commenter, section211(k)(6)(A) provides only limiteddiscretion in establishing the effectivedate for an opt-in, and any additionalextension of this effective date mustmeet the requirements of section211(k)(6)(B). That provision authorizesan extension of the effective date setunder section 211(k)(6)(A) for up to twoyears, if after consultation with theDepartment of Energy, EPA determinesthat there is insufficient domesticcapacity to produce reformulatedgasoline. In addition, EPA must issue anextension for areas with lower ozoneclassifications before higher ones. Nothaving met these requirements, thecommenter argues that the extension isnot authorized under section 211(k)(6)(A) or (B). The commenter also believesthat EPA’s reliance on Chevron U.S.A.,Inc. v. Natural Resources DefenseCouncil, Inc., 467 U.S. 837 (1984) ismisplaced, and that section 211(k) doesnot otherwise authorize the proposedstay.

This commenter has misinterpretedEPA’s view on statutory authority. Thetemporary stay issued in December 1994and the stay proposed in June 1995 arenot extensions of the effective dateunder section 211(k)(6) (A) or (B). Thoseprovisions basically address when theprogram will first go into effect for an


opt-in area. They do not addresswhether and when an area may opt-outof the program.

As noted in the proposal, EPAbelieves that it has authority to allow anarea to opt out after it has opted in,under reasonable conditions related to astate’s air quality planning and the needfor reasonable lead time for affectedindustries. This is a reasonableinterpretation of EPA’s authority, basedon the delegation by Congress ofrulemaking authority in sections211(k)(1) and 301(a). This includes theauthority to allow an area topermanently opt out of the reformulatedgasoline program. The stay issued inthis final rule is a much more limitedexercise of this authority—it allows anarea to be excluded from thereformulated gasoline program for alimited time period, pending therulemaking needed to finally act on theopt-out request.

EPA proposed to allow these areas toopt-out, and explained the legal, factual,and policy reasons supporting itsproposal. Given the clear possibility thatEPA will exclude these areas from thereformulated gasoline program based ontheir opt-out requests, it would be aserious and needless disruption of thegasoline market and the reformulatedgasoline program to now implement theprohibition of section 211(k)(5) andrequire the regulated parties to marketreformulated gasoline for the shortperiod of time needed to act on thisproposal. Under these circumstances,temporarily excluding them from theprogram pending action on the proposalis a limited and proper exercise of EPA’sauthority to allow an area to opt-out ofthe program indefinitely.

One commenter representing thepetroleum industry strongly supportsthe stay extension. This commenterbelieves that it would not be in thepublic’s interest to introduce thereformulated gasoline program on shortnotice. Considering that EPA hasproposed to approve the opt-outrequests of New York, Pennsylvania,and Maine, the commenter believes atemporary reformulated gasolineprogram in these counties for a fewmonths would not be warranted.

IV. Effective Date

Based on the July 1, 1995, expirationof the prior stay, and the disruption thatwould be caused if the reformulatedgasoline program was reinstituted inthese areas for a short time, EPA findsthere is good cause to make this ruleeffective upon signature. 5 U.S.C.553(d). This rule is effective on June 30,1995.

V. Environmental ImpactThe stay is not expected to have any

adverse environmental effects. Thereformulated gasoline program iscurrently not applicable to these areasand the stay continues the status quo inthese areas during rulemaking.

VI. Economic ImpactPursuant to section 605(b) of the

Regulatory Flexibility Act, 5 U.S.C.605(b), the Administrator certifies thatthis rule will not have a significanteconomic impact on a substantialnumber of small entities. This stay isnot expected to result in any additionalcompliance cost to regulated partiesand, in fact, is expected to decreasecompliance costs to the industry anddecrease costs to consumers in theaffected areas.

VII. Administrative RequirementsUnder Executive Order 12866 (58 FR

51735, October 4, 1993) the Agencymust determine whether a regulation is‘‘significant’’ and therefore subject toOMB review and the requirements ofthe Executive Order. The Order defines‘‘significant regulatory action’’ as onethat is likely to result in a rule that may:

(1) Have an annual effect on theeconomy of $100 million or more, oradversely affect in a material way theeconomy, a sector of the economy,productivity, competition, jobs, theenvironment, public health or safety, orState, local, or tribal governments orcommunities;

(2) Create a serious inconsistency orotherwise interfere with an action takenor planned by another agency;

(3) Materially alter the budgetaryimpact of entitlements, grants, user fees,or loan programs or the rights andobligations of recipients thereof; or

(4) Raise novel legal or policy issuesarising out of legal mandates, thePresident’s priorities, or the principlesset forth in the Executive Order.

It has been determined that this ruleis not a ‘‘significant regulatory action’’under the terms of Executive Order12866 and is therefore not subject toOMB review.

Under the Paperwork Reduction Act,44 U.S.C. 3501 et seq., EPA must obtainOffice of Management and Budget(OMB) clearance for any activity thatwill involve collecting substantially thesame information from 10 or more non-Federal respondents. This rule does notcreate any new informationrequirements or contain any newinformation collection activities.

VIII. Unfunded Mandates ActUnder Section 202 of the Unfunded

Mandates Reform Act of 1995

(‘‘Unfunded Mandates Act’’), signedinto law on March 22, 1995, EPA mustprepare a budgetary impact statement toaccompany any proposed or final rulethat includes a Federal mandate thatmay result in estimated costs to State,local, or tribal governments in theaggregate; or to the private sector, of$100 million or more. Under Section205, EPA must select the most cost-effective and least burdensomealternative that achieves the objectivesof the rule and is consistent withstatutory requirements. Section 203requires EPA to establish a plan forinforming and advising any smallgovernments that may be significantlyor uniquely impacted by the rule.

EPA has determined that the staypromulgated today does not include aFederal mandate that may result inestimated costs of $100 million or moreto either State, local, or tribalgovernments in the aggregate, or to theprivate sector.

This Federal action extends a stay onthe application of the reformulatedgasoline program in certain areas,pending agency rulemaking on the opt-out requests for these areas. The stayimposes no new Federal requirements,and in fact relieves an otherwiseapplicable requirement. Accordingly, noadditional costs to State, local, or tribalgovernments, or to the private sector,result from this action.

IX. Statutory AuthorityThe statutory authority for the action

in this rule is granted to EPA by section211 (c) and (k), and section 301(a) of theClean Air Act as amended, 42 U.S.C.7545 (c) and (k) and 7601(a).

List of Subjects in 40 CFR Part 80Environmental protection, Air

pollution control, Fuel additives,Gasoline, Motor vehicle pollution.

Dated: June 30, 1995.Fred Hansen,Acting Administrator.

For the reasons set out in thepreamble, 40 CFR part 80 is amended asfollows:

PART 80—REGULATION OF FUELSAND FUEL ADDITIVES


Authority: Sections 114, 211 and 301(a) ofthe Clean Air Act as amended (42 U.S.C.7414, 7545, and 7601(a)).

2. Section 80.70 is amended byrevising the introductory text ofparagraph (j) to read as follows:

§ 80.70 Covered areas.* * * * *


(j) The ozone nonattainment areaslisted in this paragraph (j) are coveredareas beginning on January 1, 1995,except that those areas listed inparagraphs (j)(5) (viii) and (ix), (j)(10) (i),(iii), and (v) through (xi) and (j)(11) ofthis section shall not be covered areasprior to EPA taking final action on theproposal to remove these areas ascovered areas.* * * * *[FR Doc. 95–16825 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–P

40 CFR Part 302

[FRL–5255–5]

Reportable Quantity Adjustments;Correction

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Correction to final rule.

SUMMARY: This document corrects errorsin the amendatory language of a finalrule published on June 12, 1995 (60 FR30926). The final rule made changes toreportable quantities for hazardoussubstances under the ComprehensiveEnvironmental Response,Compensation, and Liability Act.EFFECTIVE DATE: July 10, 1995.FOR FURTHER INFORMATION CONTACT: TheRCRA/UST, Superfund, and EPCRAHotline at 800/424–9346 (in theWashington, DC metropolitan area,contact 703/412–9810). TheTelecommunications Device for the Deaf(TDD) Hotline number is 800/553–7672(in the Washington, DC metropolitanarea, contact 703/486–3323); or Mr. JackArthur, Response Standards and CriteriaBranch, Emergency Response Division(5202G), U.S. Environmental ProtectionAgency, 401 M Street SW., Washington,DC 20460, or at 703/603–8760.

Dated: June 30, 1995.Timothy Fields, Jr.,Acting Assistant Administrator.

For the reasons set out in thepreamble, FR Doc. 95–13787, publishedat 60 FR 30926 (June 12, 1995) iscorrected as follows:

§ 302.4 [Corrected]1. On page 30938, column 3,

amendatory instruction 4 is corrected toread as follows:

4. Table 302.4 in § 302.4 is amendedby adding the following new entries inalphabetical order; and by revising theentries for ‘‘Benzene, dimethyl’’,‘‘Phenol, methyl-’’, and ‘‘Xylene(mixed)’’ and their subentries; and byrevising under the heading ‘‘UnlistedHazardous Wastes Characteristics:

Characteristic of Toxicity:’’ the entriesfor ‘‘o-Cresol (D023)’’, ‘‘m-Cresol(D024)’’, ‘‘p-Cresol (D025)’’, and ‘‘Cresol(D026)’’; and by revising the entries for‘‘F004’’, ‘‘F025’’, ‘‘F037’’, ‘‘F038’’,‘‘K088’’, ‘‘K090’’, and ‘‘K091’’; and byadding footnote ‘‘a’’ to the entry for‘‘Benzene’’; and by removing the entriesfor ‘‘Cresol(s)’’ and ‘‘Cresylic acid’’ andtheir subentries, as set forth below:

2. On page 30944, column 1,amendatory instruction 5 is corrected toread as follows:

5. Table 302.4 in § 302.4 is alsoamended by revising the followingentries; and by adding new entries inalphabetical order for ‘‘AntimonyCompounds’’, ‘‘Aroclors’’ and itssubentries, ‘‘Arsenic Compounds(inorganic including arsine)’’,‘‘Beryllium Compounds’’, ‘‘CadmiumCompounds’’, ‘‘Chlorinated camphene’’,‘‘1–Chloro-2, 3-epoxypropane’’,‘‘Chloromethane’’, ‘‘ChromiumCompounds’’, ‘‘Cyanide Compounds’’,‘‘DEHP’’, ‘‘Dibromoethane’’,‘‘Dichloromethane’’, ‘‘1,4–Diethyleneoxide’’, ‘‘Dimethylaminoazobenzene’’, ‘‘Ethyl chloride’’,‘‘Hexone’’, ‘‘Hydrogen phosphide’’,‘‘Iodomethane’’, ‘‘Lead Compounds’’,‘‘Lindane (all isomers)’’, ‘‘MEK’’,‘‘Mercury Compounds’’, ‘‘2–Methylaziridine’’, ‘‘Nickel Compounds’’,‘‘PCBs’’ and its subentries, ‘‘PCNB’’,‘‘Quinone’’, ‘‘Quintobenzene’’,‘‘Radionuclides (including radon)’’,‘‘Selenium Compounds’’, ‘‘TCDD’’,‘‘2,4–Toluene diamine’’, ‘‘2,4–Toluenediisocyanate’’, and ‘‘Urethane’’, as setforth below:

3. On page 30959, precedingAppendix A to § 302.4, add thefollowing amendatory instruction toread as follows:

5a. Appendix A to § 302.4 is amendedby revising the following entries, as setforth below:

[FR Doc. 95–16754 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–P

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Health Care Financing Administration

42 CFR Part 414

[BPD–494–F]

RIN 0938–AD65

Medicare Program; Payment forDurable Medical Equipment andOrthotic and Prosthetic Devices

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Final rule.

SUMMARY: This final rule addressescomments received on an interim finalrule with comment period published onDecember 7, 1992. The interim final ruleimplemented section 4062(b) of theOmnibus Budget Reconciliation Act of1987. It specified that payment underthe Medicare program for durablemedical equipment (DME), prosthetics,and orthotics furnished on or afterJanuary 1, 1989 is limited to the lowerof the actual charge for the equipmentor the fee schedule amount establishedby the carrier. This final rule describesamendments to the methods forcomputing fee schedules covering thesix classes of DME and how they areupdated in subsequent years inaccordance with sections 13542 through13546 of the Omnibus BudgetReconciliation Act of 1993.DATES: These final regulations areeffective August 9, 1995.FOR FURTHER INFORMATION CONTACT:Sharon Hippler—(410) 966–4633

(Coverage Issues)William Long—(410) 966–5655

(Payment Issues)


I. BackgroundThe provisions of sections 1833 and

1842 of the Social Security Act (the Act)set forth the general payment authorityfor most physician and other medicaland health services furnished under PartB of the Medicare program. Section1834 sets forth the 6 classes of DME andspecifies that payment for these items islimited to 80 percent of the lesser of theactual charge or a fee schedule amountestablished by each Medicare carrier.

We published an interim final rule onDecember 7, 1992 (57 FR 57675) that setforth the methods for computing feeschedules for the six classes of DMEeffective for services furnished on orafter January 6, 1993. The interim rulealso described how the fee schedules areupdated. The December 1992 ruleexplained in detail the variouslegislative changes that led to itspublication (57 FR 57676).

On August 10, 1993, the OmnibusBudget Reconciliation Act of 1993(OBRA 93, Public Law 103–66), revisedthe statutory provisions upon which theDME payment rules that appeared in theDecember 1992 final rule were based.We are including these provisions inthis final rule since the revisions are notdiscretionary but follow the explicitlanguage contained in sections 13542through 13546.

A summary of the provisions of thesesections of OBRA 93 follows :

• Section 13542 amends sections1834(a)(2), (a)(3), (a)(8), and (a)(9) of the


Act by providing that for 1994 andsubsequent years, the national limitedpayment amount for (1) inexpensive orroutinely purchased DME, (2) itemsrequiring frequent and substantialservicing, (3) oxygen, and (4) other DME(capped rental) is equal to one of thefollowing amounts:

• If the local payment amount is notin excess of the median, nor less than85 percent of the median, of all localpayment amounts—100 percent of thelocal payment amount.

• If the local payment amountexceeds the median—100 percent of themedian of all local payment amounts.

• If the local payment amount is lessthan 85 percent of the median—85percent of the median of all localpayment amounts.

• Section 13543(a) amends section1834(a)(3)(A) of the Act by deletingnebulizers and aspirators from thestatutory list of items that requirefrequent and substantial servicing. Italso clarifies that ventilators that areeither continuous airway pressuredevices or intermittent assist deviceswith continuous airway pressuredevices are excluded from the frequentand substantial servicing class.

• Section 13543(b) amends section1834(a)(2)(A) of the Act by specifyingthat accessories used in conjunctionwith a nebulizer, aspirator, or ventilatorexcluded from the frequent andsubstantial servicing class are includedin the inexpensive or routinelypurchased equipment class.

• Section 13544(a) amends section1834(h)(1) of the Act by providing thatpayment for ostomy supplies,tracheostomy supplies, and urologicalsbe made using the methodology forinexpensive or routinely purchasedequipment.

• Section 13544(b) adds a newparagraph (i) to section 1834 of the Actto provide that payment for surgicaldressings must be made using themethodology for inexpensive orroutinely purchased equipment. Itfurther specifies the national limitedpayment amount for surgical dressingsmust be based on local paymentamounts using average reasonablecharges for the 12-month period endingDecember 31, 1992 increased by thecovered item updates for 1993 and 1994.

• Section 13545 amends section1834(a)(1)(D) of the Act by providingthat the reduced payment amount fortranscutaneous electrical nervestimulator (TENS) devices, furnished onor after January 1, 1994, be based on thepayment amount effective April 1, 1990,reduced by 45 percent.

• Section 13546 amends section1834(h)(4)(A) of the Act by specifying

that the term ‘‘applicable percentageincrease’’ used for computing the localpurchase price for prosthetic andorthotic devices is ‘‘0’’ percent for 1994and 1995. It also specifies that forsubsequent years that term means thepercentage increase in the consumerprice index for all urban consumers forthe 12-month period ending with Juneof the previous year.

II. Summary of Public Comments andResponses for the December 1992 FinalRule

We received comments from sevengroups representing the industry andone State agency. We have summarizedthe comments related to the feeschedule payment methodology andhave presented them below along withour responses.

Several comments were received thatconcerned other issues related tomedical equipment (for example,refining the coverage definitions ofmedical equipment and updating theHCFA Common Procedure CodingSystem (HCPCS)) but did not pertain tothe subject matter of the interim finalrule, which dealt only with the sixclasses of DME and the correspondingfee schedule methodologies. We are notresponding in this final rule to anycomments unrelated to the fee schedulepayment methodologies.

Inexpensive and Routinely PurchasedDME (Section 414.220(a))

Comment: One commenter suggestedthat we not change to a State-by-Statemethodology for classifying an item asinexpensive even if the local submittedpurchase price is less than $150. Thecommenter stated that changing thestatus of an item from State to Statewould be hopelessly confusing tosuppliers and would contribute toincreased claims processing costs.

Response: We agree with thecommenter. Classifying items by Statewould create inconsistencies amongcarrier jurisdictions and would beinconsistent with the thrust of thenational limited payment amounts thatwent into effect in 1991. For example,a capped rental item in one jurisdictioncould be considered inexpensive in anadjacent jurisdiction. Therefore, weintend to continue using the nationalweighted mean submitted charge forpurchase of an item (whose price didnot exceed $150 during the period fromJuly 1, 1986 through June 30, 1987) forclassifying the item as inexpensive.

Frequently Serviced DME (Section414.222(a))

Comment: One commenter agreed thatwe should add or delete items in the

frequently serviced class by makingmodifications to this class on asimplified basis. Another commentersuggested that we not change themethodology for adding or deletingitems in the frequently serviced class.The commenter argued that, since someitems in this class are mandated by theAct, any attempt by us toadministratively restructure this classwould violate congressional intent.

Response: We believe that the secondcommenter may have misunderstoodour intent in this matter. Section1834(a)(3) of the Act specificallymandates that certain DME be includedin the class of items that requirefrequent and substantial servicing. In§ 414.222(a) of the interim final rule, weannounced our intention to specifyother items requiring frequent andsubstantial servicing. It was, andcontinues to be, our intention to deleteonly those items that we previouslyadded administratively. Section414.222(a) permits us and the carriers todefine those items needing frequent andsubstantial servicing.

We will not delete any of thestatutorily mandated items from thisclass of items absent a change in theAct. However, we will add or deleteitems we previously added in this classby announcing additions and deletionsin an administrative instruction ratherthan in the regulations.

Comment: One commenter suggestedthat the following items belong in thefrequently serviced class: continuouspassive motion machines, memorymonitors, powered air flotation beds, airfluidized beds, and alternating pressuremattresses. Conversely, the commenterbelieved that nebulizers and aspiratorsdo not belong in the frequently servicedclass. Two commenters suggested thatinfusion pumps should be placed in thefrequently and substantially servicedclass. The commenters stated that fewinfusion pumps last 5 years withoutmajor servicing and that pumps morethan a few years old may not beserviceable because of a lack ofreplacement parts. They also stated thatinfusion pump manufacturers often stopproducing cassettes once the pumps areno longer in production and the Foodand Drug Administration believes thatinfusion pumps should be trackedbecause the risk of failure presents thepotential for serious adverse healthconsequences.

Response: Continuous passive motionmachines currently appear in the classof items that require frequent andsubstantial servicing (§ 414.222(a)). Wewill consider whether memorymonitors, powered air flotation beds, airfluidized beds, alternating pressure


mattresses, and infusion pumps shouldalso be added. If after our review, weagree that these items belong in thisclass, we will add them through anadministrative instruction.

Section 1834(a)(3) of the Actspecifically mandated that aspirators,nebulizers and ventilators be includedin the frequent and substantial servicingclass. However, section 13543 of OBRA93 deleted aspirators, nebulizers andsome ventilators from this class effectiveJanuary 1, 1994. Consequently, we haverevised § 414.222(a) to removeaspirators, nebulizers, and certainventilators from the frequent andsubstantial servicing class. (Dependingon changes in the data, items may bemoved into any of the other classes, forexample, inexpensive or routinelypurchased, or capped rental).

Capped Rental DME (Section 414.229)Comment: Three commenters

suggested that we provide a new 15-month rental period if a beneficiarymoves outside the supplier’s servicearea or changes suppliers, even thoughthere would be additional cost and apotential for abuse. One commentersuggested giving the second supplier a12-month rental period.

Response: We agree that theseproposals would result in additionalprogram cost and have the potential forabuse. We also believe that we areprecluded by section 1834(a)(7)(A) ofthe Act from providing a new rentalperiod beyond the original 15-monthrental period. This section provides that‘‘* * * payments under this clause maynot extend over a period of continuoususe of longer than 15 months * * *.’’Therefore, if the beneficiary changessuppliers during or after the 15-monthrental period, that change would notresult in a new rental period.

In asking for comments regarding thisprovision, we specifically requestedcomments on which supplier would beresponsible for furnishing the cappedrental equipment to the beneficiary ifthe beneficiary changes suppliers duringor after the 15-month rental period. Inthe December 1992 rule (57 FR 57683),we indicated our initial position that thesupplier that provided the item in thefifteenth month of the rental periodwould be responsible for supplying theequipment and for maintenance andservicing after the 15-month period.

We mentioned that, as an alternativeposition, we considered requiring thesupplier that had furnished the item forthe longest portion of the rental periodto be responsible for the period ofcontinuous use of the equipment afterthe 15-month period expired. However,we were concerned about the possible

inconveniences to the beneficiary andthe initial supplier; for example, thelongest term supplier may be locatedsome distance from the beneficiary’sresidence at the end of the 15-monthperiod. In addition, we did not believeit was appropriate to require a supplierto service equipment that it did notfurnish and with which it may not befamiliar.

We also mentioned that weconsidered requiring the last supplier ofan item to be responsible for a period ofcontinuous use after the 15-monthperiod but only if the supplier furnishedthe item for 3 consecutive months.However, based on advice received fromthe DME industry, we rejected thisoption because of the possibleinconveniences similar to thosediscussed in the option set forth above.

Other than the comments suggestingthat we provide for an additional rentalperiod if the beneficiary changessuppliers, which is precluded by theAct, we received no commentsregarding this provision. Further, sincethis provision became effective onJanuary 1, 1989, we received nosignificant correspondence fromMedicare beneficiaries or the DMEindustry indicating that this rulepresents a problem. This corroborateswhat representatives of the DMEindustry indicated to us after thepassage of section 4062 of the OmnibusBudget Reconciliation Act of 1987(Public Law 100–203) (OBRA 1987). Atthat time, they indicated that supplierswould be able to accommodatebeneficiaries who change suppliers (forexample, because of a change ofresidence or dissatisfaction with asupplier). They further indicated thatthe DME industry preferred making thesupplier that rents the item in the last(that is, fifteenth) month of the rentalperiod responsible for supplying theequipment after the last month of rentalpayments and for continuedmaintenance and servicing of theequipment.

Therefore, the rules governing thisclass of equipment will remain thesame. Responsibility for supplyingequipment in the capped-rental classthat has been rented for 15-consecutivemonths remains with the supplier thatrented the item in the last month of therental period. Responsibility formaintenance and service of the itemalso remains with that supplier. A moveby the Medicare beneficiary does notrelieve the supplier that rented the itemin the last rental month of eitherresponsibility.

Of course, we will not object to theresponsible supplier establishing anarrangement with a supplier located

nearer to the beneficiary’s newresidence to furnish the actualmaintenance and service of theequipment.

Reasonable Useful Life (Section414.229(f))

Comment: One commenter suggestedthat we should establish reasonableuseful lifetime guidelines for equipmentbut did not offer specific suggestions forthese guidelines. Other commenterssuggested that a 5-year useful life wastoo long and that the useful life shouldbe considered to end 12 months afterthe period identified in themanufacturer’s warranty. Anothercommenter suggested that we meet withmanufacturers of medical equipment,especially manufacturers of orthoticdevices, to develop specific standardsregarding the useful life of equipment.

Response: While we specificallysolicited comments regarding the usefullife of DME, prosthetics, orthotics, andsupplies (DMEPOS), we received onlyone comment indicating what thatuseful life should be (which was 12months after the date indicated in themanufacturer’s warranty) for any item ofmedical equipment. We selected a 5-year useful life because that is the usefullife of capped rental DME established insection 1834(a)(7)(C)(iii) of the Act. Wecontinue to believe that a minimumuseful life of 5 years is reasonable forpayment purposes and should beapplied to other items of DME,prosthetics, and orthotics.

We believe that establishing a usefullife of 12 months beyond amanufacturer’s warranty is unsupportedand arbitrary. We would welcomemeeting with manufacturers of medicalequipment to discuss information thatsupports considering an alternative tothe 5-year useful lifetime of equipment.We will maintain the minimum 5-yearuseful lifetime provision for paymentpurposes for all medical equipmentunless we receive evidence thatsupports some other timeframe.

Implementation of the Fee ScheduleMethodology Through ProgramInstructions

Comment: One commenter suggestedthat implementation of the fee schedulepayment methodology has decreasedpayments and increased regulatory andpaperwork burdens, significantlyaffecting small suppliers of medicalequipment. The commenter assertedthat since we have implemented the feeschedule methodology throughMedicare Carrier Manual issuances, theindustry’s opportunity to present itscase in the public forum of rulemakinghas been denied.


Response: We disagree with thecommenter. While the December 1992interim final rule became effective 30days after it was published, it providedan opportunity for public comment andpotential reconsideration of the policiesit set forth. We usually implementlegislation by following the rulemakingprocess that affords all parties anopportunity to comment before weimplement the legislation. TheCongress, in mandating the OBRA 87changes establishing the DME feeschedule methodology, expresslyauthorized the Secretary to issue theimplementing regulations on an interimbasis. However, because of the need toimplement the fee schedule as soon aspossible, it was necessary that we issueinstructions in the Medicare CarriersManual while developing the interimrule.

Access to Common Working FileComment: Two commenters suggested

that suppliers need access to ourCommon Working File to determine if abeneficiary has previously rented apiece of equipment and, if so, for whatperiod of time.

Response: There are always privacyconsiderations concerning the release ofbeneficiary information contained in theCommon Working File systems.However, we intend to investigate theeffects of disclosing beneficiaryinformation to DME suppliers.Nevertheless, the option to furnishequipment rests with the supplier. Sincethe supplier is able to communicatewith the beneficiary before furnishingmedical equipment, we believe that thesupplier should be responsible fordetermining whether a beneficiary hasever rented equipment. We areresponsible for ensuring that we do notpay for services furnished to a patientwho is not entitled to Medicare benefitsand that we do not pay for equipmentafter the appropriate rental period.

Budget Savings Resulting From the DMEFee Schedule Methodology

Comment: Two commenters notedthat budget savings associated with theinterim rule continue to remain elusive,noting that while the fee schedulemethodology was estimated to saveMedicare more than $2 billion, a studyby the General Accounting Office (GAO)issued in July 1992 found that the feeschedule methodology actually costmore than the reasonable charge systemit replaced.

Response: The GAO found that for thefirst 2 years after implementation of thefee schedule methodology, Medicareprogram expenditures increased by 16percent compared to what the costs

would have been under the reasonablecharge system. The GAO also projectedthat when fully implemented in 1993,the Omnibus Budget Reconciliation Actof 1990 (Public Law 101–508, enactedon November 5, 1990) (OBRA 90) wouldoffset the program cost increases thatoccurred when the fee schedulemethodology was implemented. Thesavings generated would save theMedicare program more than $2 billionover 5 years beginning in 1992.

Uniform Payment, Coverage, andUtilization Criteria

Comment: One commenter suggestedthat we adopt national uniformpayment, coverage, and utilizationcriteria for prosthetic and orthoticdevices. The commenter also suggestedthat the term ‘‘region’’ shouldencompass geographic areas as large aspossible, preferably dividing the nationinto four areas that comport with thefour new regions of the DMEPOSregional carriers.

Response: The December 1992 interimrule defined ‘‘region’’ as those carrierservice areas administered by the tenHCFA regional offices (57 FR 57689).This was the longstanding definition of‘‘region’’ in use when legislationestablished a fee schedule methodologyfor prosthetic and orthotic devices thatwas to be calculated on a regional basis.

We believe it was the intent of theCongress that we recognize differencesin the costs of supplying prosthetic andorthotic devices among the tengeographic regions then in use. Sincethis was the definition of region that weused when the Congress passed the feeschedule methodology, we willcontinue to group States together by theten HCFA regions for pricing purposes.

Effective October 1, 1993, wecontracted with four ‘‘regional’’ carriersthat process all DMEPOS claimsnationally. We expect that having thefour carriers will result in more uniformpayment, coverage, and utilization ofMedicare services. However, wecontinue to believe that using a tenregion structure for pricing of services isappropriate. We believe that a largernumber of regions gives morerecognition to local variations in thecost of providing equipment.

Reducing the number of regions tofour rather than the current ten wouldgive less emphasis to local variation. Ifwe based the pricing of services on afour region system, each region wouldcover a greater number of suppliers,which could produce greater disparityin suppliers’ costs throughout theregion. Having a larger supplier poolcould dilute the impact of outlyingsuppliers whose labor, material, and

overhead costs are significantly higherthan the median.

By retaining a pricing system basedon ten regions, we expect that, for anyitem of DME, the costs of supplierswithin each region would be moresimilar to each other and the resultingfee schedule more reflective of costs inthe local supplier population.

Comment: One commenter asked ifwe intend that the regional purchaseprice be determined State-by-State.

Response: As described in the interimfinal rule (57 FR 57691), regionalpricing is based on local prices withina carrier area, which usually is an entireState. Specifically, our methodology forcomputing the regional purchase priceis to first calculate a local purchaseprice, then calculate a regional purchaseprice by averaging the local purchaseprices for the region (weighted by therelative volume of all claims among thecarriers in the region).

Use of the Term ‘‘Durable MedicalEquipment’’

Comment: One commenter suggestedusing the term ‘‘home’’ to definemedical equipment used in the homerather than the term ‘‘durable.’’ Anothercommenter suggested that we expandthe definition of DME in § 414.202 toinclude coverage of equipment not usedin the home and provide for coverage ofadditional items of disposableequipment.

Response: Section 1861(n) of the Actdefines ‘‘durable medical equipment.’’We are bound by the definition of DMEcontained in the law.

Applicability to Medicaid

Comment: One commenter suggestedthat the Medicare payment methodologyshould also be applicable to StateMedicaid programs.

Response: The statute does notauthorize us to impose the Medicarepayment methodology on States,therefore, the Congress must passlegislation to authorize us to do so.

Fraud and Abuse

Comment: One commenter noted thatthe rules regarding TENS, seat liftmechanisms, and electric wheelchairsshould help eliminate fraud and abuse.

Response: We agree.

III. Provisions of This Final Rule

To implement the requirements ofsections 13542 through 13546 of OBRA93, we are revising part 414, subpart D.

We expand the list of inexpensive orroutinely purchased items in§ 414.220(a) to include, effective January1, 1994—


• Accessories used in conjunctionwith a nebulizer, aspirator, or ventilatorexcluded from § 414.222.

• Ostomy supplies, tracheostomysupplies, urologicals, and surgicaldressings not furnished as incident to aphysician’s professional service orfurnished by a home health agency.

We add a new paragraph (f)(4) to§ 414.220 to reflect that, for 1994 andsubsequent years, the national limitedpayment amounts are calculated usingthe median rather than the weightedaverage. We make conforming changesto paragraph (f)(3).

We add a new paragraph (g) to§ 414.220 to state that payment forsurgical dressings effective January 1,1994 is based on the national limitedpayment amount increased by thecovered item updates for 1993 and 1994.

We revise § 414.222(a) to deleteaspirators, nebulizers, and certainventilators from the list of itemsrequiring frequent and substantialservicing.

We add a new paragraph (e) to§ 414.222 to set forth the followingtransition rules that apply to rental ofDME that was paid for under thefrequent and substantial servicing classbut is no longer paid for under thatpayment class. For purposes ofcalculating the 15-month rental period,beginning January 1, 1994, if payment issubsequently made under the otherDME (capped rental) payment class foran item that formerly required frequentand substantial servicing, the periodbegins with the first month ofcontinuous rental, even if that rentalperiod began before January 1, 1994.

For example, if the rental periodbegan on July 1, 1993, the carrier mustuse this date as beginning the firstmonth of rental. Section 1834(a)(7)(A)(i)limits total rental payments to 15months (or 13 months if the beneficiaryelects the purchase option). If wecalculated the 15-month periodbeginning on January 1, 1994 instead ofJuly 1, 1993 (the first month of rental),rental payments would be made for anadditional 6 months beyond the 15-month limit. We do not believe that thiswould be consistent with the law. Thus,under this final rule, if the beneficiaryreached the purchase price limitation ona rental claim before January 1, 1994, nofurther rental or purchase paymentswould be made.

Likewise, for purposes of calculatingthe 10-month purchase option, therental period also begins with the firstmonth of continuous rental withoutregard to when that period started. Forexample, if the rental period began inAugust of 1993, the 10-month purchaseoption must be offered to the beneficiary

in May of 1994, the 10th month ofcontinuous rental.

Likewise, for purposes of calculatingthe purchase ceiling, if an item that ispaid under the frequent and substantialservicing class is subsequently paidunder the inexpensive or routinelypurchased payment class, the rentalperiod begins with the first month ofcontinuous rental under the frequentand substantial servicing class, even ifthat period began before January 1,1994.

The transition rules for itemspreviously in the frequent andsubstantial servicing class are the sameas those (§ 414.229(f)) that werepromulgated for use in computing the10- and 15-month periods for cappedrental DME. We believe that thesetransitional requirements are necessaryto carry out the statutory intent, to limitcapped rental equipment payments to15 months, or 13 months if thebeneficiary elects the purchase option,and to limit rental payments, forinexpensive and routinely purchaseditems to the purchase price. Forexample, if we were to begin calculatingthe 15-month period on January 1, 1994instead of the first month of rental,payments would be incurred for up to15 additional months beyond the 15-month limit. For inexpensive orroutinely purchased DME, if we were tobegin calculating the purchase pricelimitation on January 1, 1994 instead ofthe first month of rental, we could paytwice the purchase price. We believethat such a result would be contrary tothe direction of the law.

We revise § 414.228(b)(2) to reflectthat the applicable percentage increasein the purchase price for prosthetic andorthotic devices is 0 percent for 1994and 1995.

We revise § 414.232(a) to reflect thatthe payment amount for TENScomputed under § 414.220 was reducedby 15 percent by OBRA 87, effectiveApril 1, 1990. The payment amountoriginally reduced by 15 percent wasfurther reduced by an additional 15percent, effective January 1, 1991, byOBRA 90. Effective January 1, 1994,OBRA 93 changed the percent ofreduction mandated by OBRA 90 from15 percent to 45 percent.

IV. Collection of InformationRequirements

This document does not imposeinformation collection andrecordkeeping requirements.Consequently, it need not be reviewedby the Office of Management andBudget under the authority of thePaperwork Reduction Act of 1980 (44U.S.C. 3501 et seq.).

V. Regulatory Impact Statement

A. IntroductionThis final rule implements changes

required by sections 13542 through13546 of OBRA 93. Section 13543removed aspirators and nebulizers andcertain ventilators from the class ofDME items requiring frequent andsubstantial servicing. These aspirators,nebulizers, and ventilators are nowconsidered to be either capped rental orinexpensive/routinely purchased items.Also, section 13545 provides that thepayment amount for TENS devicesfurnished on or after January 1, 1994 bebased on the payment amount effectiveApril 1, 1990, reduced by 45 percent.The Medicare program hadexpenditures of approximately $5.6million for an estimated 34,000 TENSunits furnished in calendar year (CY)1993.

Section 13546 provides that there willbe no percentage increase in payment inCYs 1994 and 1995 for orthotics,prosthetics, and prosthetic devices. Thepercentage increase in the consumerprice index is expected to resume forpayment in subsequent years.

Listed below is a table showing theestimated savings as a result of thevarious OBRA 93 changes.

ESTIMATE OF MEDICARE SAVINGSOBRA 93 (IN MILLIONS)*

FY1995

FY1996

FY1997

FY1998

FY1999

$45 $75 $85 $90 $100

* Rounded to the nearest $5 million.

B. Regulatory Flexibility ActConsistent with the Regulatory

Flexibility Act (RFA) (5 U.S.C. 601through 612), we prepare a regulatoryflexibility analysis unless the Secretarycertifies that a rule will not have asignificant economic impact on asubstantial number of small entities. Forpurposes of the RFA, mostmanufacturers and suppliers of DMEand orthotic and prosthetic devices areconsidered to be small entities. Somemanufacturers and suppliers, however,clearly have substantial regional ornational sales, and do not, therefore,meet the definition of a small entity.Individuals and States are not includedin the definition of a small entity.

Also, section 1102(b) of the Actrequires the Secretary to prepare aregulatory impact analysis if a rule mayhave a significant impact on theoperations of a substantial number ofsmall rural hospitals. This analysis mustconform to the provisions of section 604of the RFA. For purposes of section


1102(b) of the Act, we define a smallrural hospital as a hospital that islocated outside of a MetropolitanStatistical Area and has fewer than 50beds.

C. General Effects

Since beneficiary copayments arelinked to the level of allowed paymentsfor DME, the reduction in fee scheduleamounts will reduce costs tobeneficiaries. The magnitude of savingsto beneficiaries will coincide with thereduction in payment levels for DME.Section 13543 of OBRA ’93 limitedpayment for aspirators, nebulizers, andcertain ventilators by deleting themfrom the group for items requiringfrequent and substantial servicing.Beneficiaries who had been rentingthese items for an unlimited period willin the future be required to paycopayment fees on payment up to onlythe allowed purchase price or rental capamount of the device.

Section 13545 reduces the paymentamount for TENS devices furnished onor after January 1, 1994 by 45 percentfrom the payment amount effectiveApril 1, 1990. As the payment for theTENS device will be reduced, thebeneficiaries copayment portion willalso be reduced.

From the perspective ofmanufacturers and distributors, thereductions in Medicare payments forcertain DME, nebulizers and aspirators,TENS devices, and orthotics,prosthetics, and prosthetic devices willresult in some revenue losses.Manufacturers and suppliers that do notspecialize in these items may seeminimal reductions in their revenues.We do not have detailed data that willenable us to predict the economicimpact on individual suppliers andmanufacturers. Considering that thetotal DME sales in CY 1993 equaled anestimated $2.4 billion and the limitedreductions we are making at this time,we do not believe the impact on DMEmanufacturers and suppliers willsignificantly affect the quantity orquality of DME available to Medicarebeneficiaries.

The provisions of this rule conformthe regulations to legislative provisions.Therefore, we are not preparing analysesfor either the RFA or section 1102(b) ofthe Act because we have determined,and the Secretary certifies, that this rulewill not have a significant economicimpact on a substantial number of smallentities or a significant impact on theoperations of a substantial number ofsmall rural hospitals.

In accordance with the provisions ofExecutive Order 12866, this rule was

not reviewed by the Office ofManagement and Budget.

List of Subjects in 42 CFR Part 414Durable medical equipment,

Medicare, Prosthetic and orthoticdevices.

42 CFR part 414, subpart D, isamended as set forth below:

PART 414—PAYMENT FOR PART BMEDICAL AND OTHER HEALTHSERVICES


Authority: Secs. 1102, 1833(a), 1834 (a)and (h), 1848, 1871, and 1881 of the SocialSecurity Act (42 U.S.C. 1302, 1395l(a),1395m (a) and (h), 1395w–4, 1395hh, and1395rr).

2. In § 414.220, the introductory textfor paragraph (f) is republished,paragraphs (a), (b), and (f)(3)introductory text, (f)(3)(i), and (f)(3)(ii)are revised, and new paragraphs (f)(4)and (g) are added, to read as follows:

§ 414.220 Inexpensive or routinelypurchased items.

(a) Definitions—(1) Inexpensiveequipment means equipment theaverage purchase price of which did notexceed $150 during the period July 1986through June 1987.

(2) Routinely purchased equipmentmeans equipment that was acquired bypurchase on a national basis at least 75percent of the time during the periodJuly 1986 through June 1987.

(3) Accessories. Effective January 1,1994, accessories used in conjunctionwith a nebulizer, aspirator, or ventilatorexcluded from § 414.222 meet thedefinitions of ‘‘inexpensive equipment’’and ‘‘routinely purchased equipment’’in paragraphs (a)(1) and (a)(2) of thissection, respectively.

(b) Payment rules. (1) Subject to thelimitation in paragraph (b)(3) of thissection, payment for inexpensive androutinely purchased items is made on arental basis or in a lump sum amountfor purchase of the item based on theapplicable fee schedule amount.

(2) Effective January 1, 1994, paymentfor ostomy supplies, tracheostomysupplies, urologicals, and surgicaldressings not furnished as incident to aphysician’s professional service orfurnished by an HHA is made using themethodology for the inexpensive androutinely purchased class.

(3) The total amount of paymentsmade for an item may not exceed the feeschedule amount recognized for thepurchase of that item.* * * * *

(f) Calculating the national limitedpayment amount. The national limited

payment amount is computed asfollows:* * * * *

(3) For 1993, the national limitedpayment amount is equal to one of thefollowing:

(i) 100 percent of the local paymentamount if the local payment amount isneither greater than the weightedaverage nor less than 85 percent of theweighted average of all local paymentamounts.

(ii) 100 percent of the weightedaverage of all local payment amounts ifthe local payment amount exceeds theweighted average of all local paymentamounts.* * * * *

(4) For 1994 and subsequent years, thenational limited payment amount isequal to one of the following:

(i) If the local payment amount is notin excess of the median, nor less than85 percent of the median, of all localpayment amounts—100 percent of thelocal payment amount.

(ii) If the local payment amountexceeds the median—100 percent of themedian of all local payment amounts.

(iii) If the local payment amount isless than 85 percent of the median—85percent of the median of all localpayment amounts.

(g) Payment for surgical dressings. Forsurgical dressings furnished afterDecember 31, 1993, the national limitedpayment amount is computed based onlocal payment amounts using averagereasonable charges for the 12-monthperiod ending December 31, 1992,increased by the covered item updatesfor 1993 and 1994.

3. In § 414.222, paragraph (a) isrevised and paragraph (e) is added toread as follows:

§ 414.222 Items requiring frequent andsubstantial servicing.

(a) Definition. Items requiringfrequent and substantial servicing inorder to avoid risk to the beneficiary’shealth are the following:

(1) Ventilators (except those that areeither continuous airway pressuredevices or intermittent assist deviceswith continuous airway pressuredevices).

(2) Continuous and intermittentpositive pressure breathing machines.

(3) Continuous passive motionmachines.

(4) Other items specified in HCFAprogram instructions.

(5) Other items identified by thecarrier.* * * * *

(e) Transition to other paymentclasses. For purposes of calculating the


15-month rental period, beginningJanuary 1, 1994, if an item has been paidfor under the frequent and substantialservicing class and is subsequently paidfor under another payment class, therental period begins with the first monthof continuous rental, even if that periodbegan before January 1, 1994. Forexample, if the rental period began onJuly 1, 1993, the carrier must use thisdate as beginning the first month ofrental. Likewise, for purposes ofcalculating the 10-month purchaseoption, the rental period begins with thefirst month of continuous rental withoutregard to when that period started. Forexample, if the rental period began inAugust 1993, the 10-month purchaseoption must be offered to the beneficiaryin May 1994, the tenth month ofcontinuous rental.

4. In § 414.228, the introductory textfor paragraphs (b) and (b)(2) arerepublished, paragraph (b)(2)(ii) isrevised, and new paragraphs (b)(2)(iii)and (b)(2)(iv) are added, to read asfollows:

§ 414.228 Prosthetic and orthotic devices.

* * * * *(b) Fee schedule amounts. The fee

schedule amount for prosthetic andorthotic devices is determined asfollows:* * * * *

(2) The carrier determines a localpurchase price equal to the following:* * * * *

(ii) For 1991 through 1993, the localpurchase price for the preceding year isadjusted by the applicable percentageincrease for the year. The applicablepercentage increase is equal to 0 percentfor 1991. For 1992 and 1993, theapplicable percentage increase is equalto the percentage increase in the CPI–Ufor the 12-month period ending withJune of the previous year.

(iii) For 1994 and 1995, the applicablepercentage increase is 0 percent.

(iv) For all subsequent years theapplicable percentage increase is equalto the percentage increase in the CPI–Ufor the 12-month period ending withJune of the previous year.* * * * *

5. In § 414.229, the section heading isrevised, the introductory text forparagraph (c) is republished andparagraph (c)(3) is revised, to read asfollows:

§ 414.229 Other durable medicalequipment—capped rental items.

* * * * *(c) Determination of purchase price.

The purchase price of other covered

durable medical equipment isdetermined as follows:* * * * *

(3) For years after 1991. The purchaseprice is determined using themethodology contained in paragraphs(d) through (f) of § 414.220.* * * * *

6. In § 414.232, paragraph (a) isrevised to read as follows:

§ 414.232 Special payment rules fortranscutaneous electrical nerve stimulators(TENS).

(a) General payment rule. Except asprovided in paragraph (b) of thissection, payment for TENS is made ona purchase basis with the purchase pricedetermined using the methodology forpurchase of inexpensive or routinelypurchased items as described in§ 414.220. The payment amount forTENS computed under § 414.220(c)(2) isreduced according to the followingformula:

(1) Effective April 1, 1990—theoriginal payment amount is reduced by15 percent.

(2) Effective January 1, 1991—thereduced payment amount in paragraph(a)(1) is reduced by 15 percent.

(3) Effective January 1, 1994—thereduced payment amount in paragraph(a)(1) is reduced by 45 percent.* * * * *(Catalog of Federal Domestic AssistanceProgram No. 93.773, Medicare—HospitalInsurance; and Program No. 93.774,Medicare—Supplementary MedicalInsurance Program)

Dated: June 28, 1995.Bruce C. Vladeck,Administrator, Health Care FinancingAdministration.[FR Doc. 95–16805 Filed 7–7–95; 8:45 am]BILLING CODE 4120–01–P

42 CFR Part 433

[MB–39–F]

RIN: 0938–AF11

Medicaid Program; Third Party Liability(TPL) Cost-Effectiveness Waivers

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Final rule.

SUMMARY: This final rule revisesregulations concerning Medicaidagencies’ actions where third partyliability (TPL) may exist forexpenditures for medical assistancecovered under the State plan. It allowsthe Medicaid agencies to requestwaivers from certain procedures in ourregulations that are not expressly

required by the Social Security Act. Wewill consider waiving nonstatutorilyrequired procedures relating toidentifying possible TPL where theagency finds that following a givenrequired procedure is not cost-effectiveand is duplicative of another Stateactivity. A nonstatutorily requiredactivity is eligible for a waiver if the costof the required activity exceeds the TPLrecoupment and the required activityaccomplishes, at the same or at a highercost, the same objective as anotheractivity that is being performed by theStates. This change gives States greaterflexibility in managing their Medicaidprograms.EFFECTIVE DATE: This final rule iseffective September 8, 1995.FOR FURTHER INFORMATION CONTACT: MelSchmerler, (410) 966–5942.


I. BackgroundSection 1902(a)(25) of the Social

Security Act (the Act) requires that Stateor local Medicaid agencies take allreasonable measures to ascertain thelegal liability of third parties to pay forcare and services furnished to Medicaidrecipients. A third party is anyindividual, entity, or program that is ormay be liable to pay all or part of theexpenditures for medical assistancefurnished under a State plan. Medicaidis intended to be the payer of last resort;that is, other available resources must beused before Medicaid pays for the careand services of a Medicaid-eligibleindividual. These other resources areknown as third party liability, or TPL.

Further, provisions under section1902(a)(25)(A)(i) of the Act specify thatthe Medicaid State plan must providefor the collection of sufficientinformation to enable the State topursue claims against third parties.Examples of liable third parties includecommercial insurance companiesthrough employment-related orprivately purchased health insurance;casualty coverage resulting from anaccidental injury; payments receiveddirectly from an individual who haseither voluntarily accepted or beenassigned legal responsibility for thehealth care of one or more Medicaidrecipients; and fraternal groups, union,or State workers’ compensationcommissions. TPL also includesmedical support provided by a parentunder a court or administrative order.

Statutory provisions (sections 1137and 1902(a)(25) of the Act) requireStates to obtain health insuranceinformation at eligibility intake andredetermination interviews, perform theState Wage Information Collection


Agency (SWICA) data match, safeguardrecipient information, obtain recipientassignment of rights, and submit a TPLaction plan for HCFA approval. Thesestatutory requirements are not affectedby the provisions of this final rule.

Nonstatutory requirements, specifiedin the Medicaid regulations at § 433.138(and subject to proposed waiver),include obtaining information (via datamatching) with the State Workers’Compensation or Industrial AccidentCommission files and State MotorVehicle Accident report files. Anothernonstatutory requirement is therequirement for agencies to identify allpaid claims with trauma/diagnosiscodes found in the InternationalClassification of Disease, 9th Revision,Clinical Modification, Volume 1 (ICD–9–CM) 800 through 999, except 994.6. In§ 433.139 (and subject to proposedwaiver), State agencies are required tobill the third party resource within 60days after the last day of the month theState learns of the available resource.

Under our regulations at § 433.138,pertinent health insurance informationmust be obtained (1) from Medicaidapplicants or recipients during thedetermination and redeterminationprocess; (2) by securing data matchagreements with specific Federal andState agencies; (3) by conductingdiagnosis and trauma code edits; and (4)by following specified proceduresregarding the frequency of theseactivities.

Regulations at § 433.139 govern Statepayment of claims where TPL isinvolved. There are two methods ofpaying claims for recipients with knownTPL: the cost-avoidance method and thepay-and-chase method. Under the cost-avoidance method, the Medicaid agencydoes not initially pay the claim, butreturns the claim to the provider withinformation necessary for the providerto bill the third party. Under the pay-and-chase method, an agency may paythe total amount allowed under itspayment schedule and then seekrecovery from the liable third parties.The agency must initiate recoverywithin 60 days after the end of themonth in which payment is made or theAgency learns of the existence of thethird party resource.

Most States that implement therequirements in our regulations at§ 433.138 achieve significant Medicaidsavings. Whenever third party resourcescan be utilized instead of Medicaid,both Federal and State taxpayers savemoney. In some instances, however,TPL requirements are not cost-effective.

Some States have reported very poorresults in terms of identifying new TPLleads through trauma and diagnosis

code edits. There are reports that somecodes never yield TPL. Currently, Statesmay obtain a partial waiver from HCFAof the requirement in § 433.138(e) totake action to identify those paid claimsfor Medicaid recipients that containdiagnosis codes 800 through 999 (exceptthat no State has to pursue informationconcerning code 994.6, motionsickness). Under § 433.138(e), the Statemay obtain a waiver from complyingwith the requirements for specificcodes.

In § 433.139(e), we also permit a Stateto request a waiver from HCFA of thecost-avoidance method of paying if theState could document that the pay-and-chase method is at least as cost-effectiveas the cost-avoidance method. The Stateis required to revalidate its cost-avoidance waiver request every 3 yearsand notify HCFA of any event that maychange the cost-effectiveness of thewaiver.

When these requirements wereestablished by HCFA, the Medicaid TPLprogram was in its infancy. Many Stateswere not pursuing TPL or onlyrecovering TPL passively; that is,making recoveries when contacted by aprovider or attorney who was making athird party settlement. We believedthere were tremendous untapped TPLresources that were not identified byStates. Therefore, the initial regulationswere broad and did not allow Statesdiscretion to decide whether or not toperform required TPL activities basedupon their cost-effectiveness. For thisreason, we issued TPL regulationswhich we have determined are now tooprescriptive and, at times, duplicative.On February 27, 1987, we published inthe Federal Register (52 FR 5971) aresponse to State comments regardingcost-effectiveness of our discretionaryregulations at §§ 433.138 and 433.139.We stated that we would reevaluatethese requirements if we receivedsubstantial complaints. This rule isconsistent with that statement.

Currently, the majority of the Stateshave aggressive and comprehensive TPLprograms and have reported substantialsavings from TPL activities. However,program experience has identifiedsituations where some activitiesrequired by our regulations duplicatesome State agency requirements inidentifying new TPL leads. Also,situations have been identified wheresome of our requirements in regulationsare not cost-effective; that is, States canreasonably expect to spend more toperform a TPL activity than will berealized in savings. It is for thesereasons that we are now offering Statesthe opportunity to request waivers fromthe unproductive activities that are not

mandated by statute, and for whichStates have superior methods foraccomplishing the same objectives asour regulations.

II. Issuance of Proposed RuleOn February 2, 1994, we published in

the Federal Register (59 FR 4880) aproposed rule that would allow States torequest a waiver from requirements in§ 433.138(c), (d)(4), (d)(5), (e), (f), (g)(1),(g)(2), (g)(3), and (g)(4) or § 433.139(b),(d)(1), and (d)(2) that are not explicitlymandated by statute when it is foundthat performing the requirement is notcost-effective. We indicated that wewould revise our rules to allow a Stateto request a waiver from thenonstatutorily required activities thatconcern specific types of third partyinformation, exchange of data, diagnosisand trauma code edits, and follow-upactivities for certain exchanges. Anonstatutorily required activity wouldbe eligible for a waiver if the cost of therequired activity exceeds the TPLrecoupment and the required activityaccomplishes, at the same or at a highercost, the same objective as anotheractivity that is being performed by theState.

We made this proposal to allow Statesto perform TPL operations moreefficiently and at a greater savings to theFederal Government. We believed thatduplicative efforts (and higher costs)would be eliminated when States havealready identified third party resourcesthrough another more cost-effectivemeans. We note that HCFA’s financialparticipation in State MedicaidManagement Information Systems costs,including costs related to data matcheswe require States to perform, may be asmuch as 90 percent. Therefore, it is notin the interest of the FederalGovernment to have States performactivities which are either duplicative ornonproductive.

We proposed relief from regulatoryrequirements in the form of a waiver.The State would submit a formal requestto the HCFA regional office (RO). TheState would be required to providedocumentation that demonstrates thatthe cost of the required activity exceedsthe TPL recoupment and the requiredactivity accomplishes, at the same or ata higher cost, the same objective asanother activity which is beingperformed by the State.

Documentation to support the waiverrequest could include past claimsrecovery data that demonstrate theadministrative expenses involved inmeeting that particular requirement, anda State analysis that documents a cost-effective alternative that accomplishesthe same task. HCFA’s ROs would


consider the individual merits of eachwaiver request and would grant or denythe waiver request based on cost-effectiveness and State alternativespresented.

We indicated that we would issueseparate guidelines for developing andevaluating waiver requests for the newwaivers. We currently have cost-effectiveness guidelines in place togovern our existing cost-avoidancewaiver process. These guidelines weredeveloped by a national work groupcomprised of HCFA Central Office (CO)and RO staff, whose purpose was tomake the guidelines comprehensive andto ensure consistent applicationthroughout the country. They are foundin section 3904.2 of the State MedicaidManual. We indicated that we wouldissue similar guidelines to review thenew waivers. Sources of data wouldmost likely include claims processingtabulations, State expenditure reports,and savings data from the TPL recoveryunits and the HCFA Form 64.9a report.

CO staff also would provideclarification to RO staff as neededthrough our regular teleconferences.Consultation on specific waiver requestswould be provided routinely, as iscurrently done in the State planamendment process, cost-avoidancewaivers, trauma code edit waivers, andState TPL action plan submissions. Aswith our current waiver provisions, ROswould be required to report approvalsand disapprovals to CO on an ongoingbasis. When changes in waiver statusoccur, CO also would be notified.

III. Summary of Public Comments andResponses

We received four letters of commenton the February 1994 proposed rule.These comments and our responses arediscussed below:

Comment: Several commentersexpressed concern that the proposedrule did not go far enough to allowStates the flexibility needed to achieveadditional savings from TPL. Onecommenter cited section 1902(a)(25) ofthe Act which requires States to take allreasonable measures to ascertain thelegal liability of third parties (includinghealth insurers) to pay for care andservices available under the plan. Thecommenter provided two examples ofunique and innovative practices thatenhance the State’s TPL operations andshould be permissible under Federalregulations. In the first example, therecipient receives a portion of theproceeds of settlements from tort actionstaken against third parties. In the secondexample, the State has developed aprogram which pays county welfaredepartments incentive payments

(‘‘bounties’’) of $50 for each new casecertified for eligibility where otherhealth insurance is identified.

Response: We agree that States shouldbe allowed to implement unique andinnovative practices that are reasonablemeasures and not prohibited by Federalstatute. Medicaid services are providedusing Federal matching funds. In thefirst example, the State has providedMedicaid services for recipients thatwere injured by liable third parties, andthese recipients have subsequentlytaken legal action to receivecompensation through the courts fortheir injuries. Section 1912(b) of the Actrequires that when a State makes arecovery, the State reimburse itself (andthe Federal government) before anyremaining funds are given to therecipient. If the State is reimbursing therecipient from the amounts collectedbefore fully refunding the Federalgovernment its share, such practiceviolates section 1912(b) of the Act. TheState is, however, free to pay Statemonies to the recipient as an incentive,without violating section 1912 of theAct.

In the second example, we take issuewith the ‘‘county bounty’’ programwhere Federal matching funds wererequested and denied for the bountypayments, because these expendituresare not authorized for Federal matchingfunds under title XIX of the Act. Weagree, that in both examples, thesepractices could increase TPLidentification and savings, and Statesmay find it worthwhile to continuethese programs with State-only funds.This rule will provide States withadditional flexibility in their TPLprograms within the confines of Federallaw.

Comment: One commenter requestedthat we revise the regulations to define,interpret, and explain more positivelythe meaning of the statutory phrase ‘‘allreasonable measures.’’

Response: We have interpreted thelanguage in section 1902(a)(25) of theAct that refers to ‘‘all reasonablemeasures’’ by specifying therequirements for TPL in regulations at§§ 433.138 and 433.139. Theseregulations include TPL activitiesspecified by the statute, and otherdiscretionary activities that we havedeemed to be logical actions to take toidentify and pursue TPL. We originallydecided to offer TPL waivers of theseregulatory requirements because severalStates expressed concern that ourdiscretionary regulatory activities werenot cost effective, and that other Stateactivities were accomplishing the sameobjective. We believe waivers ofdiscretionary TPL requirements can

provide States with some flexibility inmanaging their TPL programs withoutcompromising the integrity of the TPLprogram. We have always supportedStates’ innovative and unique measuresto achieve TPL savings that are notprohibited by Federal statute. Theseinnovative and unique measures havebeen issued several times by us in acompilation entitled, ‘‘Third PartyLiability in the Medicaid Program . . .A Guide to Successful State AgencyPractices.’’ We are continuouslysupportive of approaches that do notviolate the statute, and these regulationsdo not preclude States from developingsuch operations.

Comment: Two commenters suggestedthat in § 433.138(l) we provideconsiderable flexibility in ourinterpretation of ‘‘adequatedocumentation’’ for waiverconsideration.

Response: We wish to stress that our‘‘examples of documentation’’ in theproposed rule are strictly examples andnot an inclusive list. It is our intentionto employ flexibility when consideringthese waiver requests. While we willprovide guidance to States forsubmissions of waiver requests throughthe State Medicaid Manual, weunderstand that the uniquecharacteristics of each State Medicaidprogram will govern States’ abilities toproduce cost-effectiveness data.

Comment: One commenter questionedour intent regarding the requirementsfor ‘‘adequate documentation’’, asspecified in proposed § 433.138(l)(ii),which states that ‘‘Examples ofdocumentation are claims recovery dataand a State analysis documenting a cost-effective alternative that accomplishedthe same task.’’ The commenter notedthat this language means that even if aState TPL practice is not cost-effective,the State must also demonstrate that itperforms an alternative practice. Thecommenter also points out that insection II of the preamble of theproposed rule, an example of ‘‘adequatedocumentation’’ was given as ‘‘. . .claims recovery data or State analysis. . .’’ (emphasis added), and asserts thatHCFA intended that States eitherdocument that a practice is not cost-effective or that another alternativepractice is performed, but that the intentis that States do not have to provideboth. In addition, the commenterrequested that we add after the words‘‘. . . claims recovery data . . .’’ thelanguage ‘‘costs for the process(es) forwhich a waiver is being requested.’’

Response: The commenter was correctin pointing out the inconsistency in theuse of the word ‘‘or’’ in section II of thepreamble of the proposed rule which


was not used in proposed§ 433.138(l)(ii). The use of ‘‘or’’ in thepreamble was inadvertent, and we havedeleted the word ‘‘or’’ and replaced itwith ‘‘and’’ in this final rule. The intentof the proposed rule is elucidated in thesummary of the preamble of theproposed rule. The summary stated thefollowing: ‘‘We would consider waivingnonstatutorily required proceduresrelating to identifying possible TPLwhere the agency finds that following agiven required procedure is not cost-effective and is duplicative of anotherState activity. A nonstatutorily requiredactivity would be eligible for a waiverif the cost of the required activityexceeds the TPL recoupment and therequired activity accomplishes, at thesame or at a higher cost, the sameobjective as another activity that isbeing performed by the States.’’ (59 FR4880). We added this waiverconsideration because we found throughthe Federal oversight process that someStates have not achieved a satisfactorylevel of compliance with TPLrequirements, and for these States,where processes can be highly manualand labor intensive, an argument can bemade that certain TPL requirements arenot cost-effective. Nevertheless, theobjective of the requirement in questionhas not been accomplished, andpotential TPL resources are lost. Ourconcern is that these States couldtheoretically receive waivers and remainin technical compliance, and yet stillnot accomplish the TPL objective.Therefore, our position is that a Statecan receive approval of a waiver of acurrent requirement only if it has analternate activity that will accomplishthe same objective.

In terms of the language that thecommenter has requested to be added tothe ‘‘examples of documentation’’, ourreponse is the same as the response tothe previous comment requestingflexibility in our interpretation of‘‘adequate documentation.’’ Ourexamples of documentation are notinclusive, and we will be flexible whenconsidering these waiver requests. Wetherefore are not adding the requestedlanguage to our example in the finalrule.

Comment: One commenter requestedthat States be allowed to request TPLwaivers for certain family planningclients.

Response: The commenter appears tobe requesting that this rule shouldprovide relief from the general statutoryrequirement of section 1902(a)(25) of theAct to perform TPL activities for certainfamily planning clients. This requestaddresses a broader issue, the State’sgeneral responsibility to pursue and

determine the existence of third parties,than what is addressed by this rule.There is no statutory authority orregulation that permits HCFA to waivethird party identification for a class ofclaims or recipients. If a State believesthat cost avoidance of family planningclaims for recipients with TPL is notcost-effective, the regulations at§ 433.139(e) provide a recourse forStates to follow. If a State identifies TPLbut finds that pursuing a recovery is nolonger cost-effective, the regulations at§ 433.139(f) may provide relief.

In situations where it is determinedthat the recipient has ‘‘good cause’’ fornot cooperating in pursuing the thirdparty, the Medicaid agency would notpursue the third party by employingeither the cost avoidance or pay andchase method.

IV. Provisions of the Final RegulationsWe are adopting the February 2, 1994

proposed rule as final with amodification to the title of § 433.138‘‘Determining liability of third parties’’to read ‘‘Identifying liable third parties’’and a conforming change to § 433.137 toreflect this change. While section1902(a)(25)(A) requires States to takereasonable measures to ascertain thelegal liability of third parties to pay forcare and services available under theplan, States must first identify thirdparty resources. Section 433.138explains the requirements foridentifying third parties through dataexchanges. It does not explain theprocess of determining liability of thirdparties. We believe § 433.139 explainsthat determination of the liability of athird party takes place when theMedicaid agency receives confirmationfrom the provider or third partyresource indicating the extent of TPL.Therefore, we are changing the title of§ 433.138 to accurately reflect thesection’s content.

V. Regulatory Impact StatementWe generally prepare a regulatory

flexibility analysis that is consistentwith the Regulatory Flexibility Act(RFA) (5 U.S.C. 601 through 612), unlessthe Secretary certifies that a finalregulation will not have a significantimpact on a substantial number of smallentities.

Under the RFA, a small entity is asmall business, a nonprofit enterprise,or a government jurisdiction (such as acounty or township) with a populationof less than 50,000. These finalregulations will affect only States andindividuals, which are not consideredsmall entities.

Also, section 1102(b) of the Actrequires the Secretary to prepare a

regulatory impact analysis for any finalrule that may have a significant impacton the operations of a substantialnumber of small rural hospitals. Suchan analysis must conform to theprovisions of section 604 of the RFA.For purposes of section 1102(b) of theAct, we define a small rural hospital asa hospital that is located outside aMetropolitan Statistical Area and hasfewer than 50 beds.

This final rule requires States tosubmit a formal waiver request to berelieved of compliance with certain TPLrequirements that are in our regulationswhen the cost of implementing theregulation’s requirement is not cost-effective. It is extremely difficult to givean exact estimate of the cost savings thatwould accrue with the implementationof this regulation. This is largelybecause the cost of any single TPL datamatch or other procedure, as well as itsrelative effectiveness, varies from Stateto State.

In reviewing the need for this waiver,we recognized that some TPL claimsreporting and payment regulations areexpressly required by statute and thatthese and additional regulatoryrequirements are a valuable mechanismby which the Medicaid program hassaved and recovered financial resourcesand that these regulations should bemaintained. This waiver gives credenceto valid concerns raised by Statesregarding the cost-effectiveness ofcertain portions of the TPL regulationsin certain instances and allows Statesgreater flexibility in managing theirMedicaid programs.

An alternative to these regulatoryenhancements would be to force Statesto comply with all regulations and notallow for any waiver provisions. In thisscenario, States would either complyand lose money or discontinue theinefficient practice and risk HCFAsanctions through the system’sperformance review. Clearly, it was notthe intent of the Congress for HCFA topromulgate regulations designed to savethe taxpayers money, and then penalizeStates when the regulations are foundby experience not to be cost-effective.This is consistent with our response tocomments published in the FederalRegister dated February 27, 1987 (52 FR5971) stating that if HCFA receivedsubstantial complaints from StateMedicaid agencies regarding the cost-effectiveness of State workers’compensation or Motor VehicleAccident File data matches anddiagnosis and trauma code edits, HCFAwould reevaluate the data requirement.

We believe that implementation of thewaiver procedures will work towards arealistic and cost-effective TPL program.


Allowing States to request waivers willalso provide States with increasedcontrol over their individual TPLprograms.

We have determined, and theSecretary certifies, that this final rule isnot a significant regulatory action andwill not have a significant economicimpact on a substantial number of smallentities. Also, this final rule will nothave a significant impact on theoperations of a substantial number ofsmall rural hospitals. Therefore, wehave not prepared a regulatory impactanalysis, a small rural hospital analysis,or an initial regulatory flexibilityanalysis.

In accordance with the provisions ofthe Executive Order of 12866, this finalregulation was not reviewed by theOffice of Management and Budget.

VI. Paperwork Reduction Act

Sections 433.138(l) and 433.139(e) ofthis final rule contain new informationcollection requirements that are subjectto the Office of Management and Budget(OMB) approval under the PaperworkReduction Act of 1980 (44 U.S.C 3504,et seq.). Reporting burden for thecollection of information in§§ 433.138(1) and 433.139(e) isestimated to be 8 hours per request forwaiver.


Administrative practice andprocedure, Claims, Grant programs—health, Medicaid, Reporting andrecordkeeping requirements.

42 CFR part 433 is amended asfollows:

PART 433—STATE FISCALADMINISTRATION


Authority: Secs. 1102, 1137, 1902(a)(4),1902(a)(25), 1902(a)(45), 1903(a)(3),1903(d)(2), 1902(d)(5), 1903(o), 1903(p),1903(r), and 1912 of the Social Security Act(42 U.S.C. 1302, 1320b-7, 1396a(a)(4),1396a(a)(25), 1396a(a)(45), 1396b(a)(3),1396b(d)(2), 1396a(d)(5), 1396b(o), 1396b(p),1396b(r), and 1396k, unless otherwise noted.

2. Section 433.137(a) is revised toread as follows:

§ 433.137 State plan requirements.(a) A State plan must provide that the

requirements of §§ 433.138 and 433.139are met for identifying third partiesliable for payment of services under theplan and for payment of claimsinvolving third parties.* * * * *

3. Section 433.138 is amended byrevising the section title, paragraphs (a)

and (c), the introductory text ofparagraph (d), and paragraphs (e), (f),and (j); by adding undesignatedintroductory language to paragraph (g);and by adding a new paragraph (l) toread as follows:

§ 433.138 Identifying liable third parties.

(a) Basic provisions. The agency musttake reasonable measures to determinethe legal liability of the third partieswho are liable to pay for servicesfurnished under the plan. At aminimum, such measures must includethe requirements specified inparagraphs (b) through (k) of thissection, unless waived under paragraph(l) of this section.* * * * *

(c) Obtaining other information.Except as provided in paragraph (l) ofthis section, the agency must, for thepurpose of implementing therequirements in paragraphs (d)(1)(ii)and (d)(4)(i) of this section, incorporateinto the eligibility case file the namesand SSNs of absent or custodial parentsof Medicaid recipients to the extentsuch information is available.

(d) Exchange of data. Except asprovided in paragraph (l) of this section,to obtain and use information for thepurpose of determining the legalliability of the third parties so that theagency may process claims under thethird party liability payment proceduresspecified in § 433.139(b) through (f), theagency must take the following actions:* * * * *

(e) Diagnosis and trauma code edits.(1) Except as specified under paragraph(e)(2) or (l) of this section, or both, theagency must take action to identifythose paid claims for Medicaidrecipients that contain diagnosis codes800 through 999 InternationalClassification of Disease, 9th Revision,Clinical Modification, Volume 1 (ICD–9–CM) inclusive, for the purpose ofdetermining the legal liability of thirdparties so that the agency may processclaims under the third party liabilitypayment procedures specified in§ 433.139(b) through (f).

(2) The agency may exclude code994.6, Motion Sickness, from the editsrequired under paragraph (e)(1) of thissection.

(f) Data exchanges and trauma codeedits: Frequency. Except as provided inparagraph (l) of this section, the agencymust conduct the data exchangesrequired in paragraphs (d)(1) and (d)(3)of this section in accordance with theintervals specified in § 435.948 of thischapter, and diagnosis and trauma editsrequired in paragraphs (d)(4) and (e) ofthis section on a routine and timely

basis. The State plan must specify thefrequency of these activities.

(g) Follow-up procedures foridentifying legally liable third partyresources. Except as provided inparagraph (l) of this section, the Statemust meet the requirements of thisparagraph.* * * * *

(j) Reports. The agency must providesuch reports with respect to the dataexchanges and trauma code edits setforth in paragraphs (d)(1) through (d)(4)and paragraph (e) of this section,respectively, as the Secretary prescribesfor the purpose of determiningcompliance under § 433.138 andevaluating the effectiveness of the thirdparty liability identification system.However, if the State is not meeting theprovisions of paragraph (e) of thissection because it has been granted awaiver of those provisions underparagraph (l) of this section, it is notrequired to provide the reports requiredin this paragraph.* * * * *

(l) Waiver of requirements. (1) Theagency may request initial andcontinuing waiver of the requirementsto determine third party liability foundin paragraphs (c), (d)(4), (d)(5), (e), (f),(g)(1), (g)(2), (g)(3), and (g)(4) of thissection if the State determines theactivity to be not cost-effective. Anactivity would not be cost-effective ifthe cost of the required activity exceedsthe third party liability recoupment andthe required activity accomplishes, atthe same or at a higher cost, the sameobjective as another activity that isbeing performed by the State.

(i) The agency must submit a requestfor waiver of the requirement in writingto the HCFA regional office.

(ii) The request must contain adequatedocumentation to establish that to meeta requirement specified by the agency isnot cost-effective. Examples ofdocumentation are claims recovery dataand a State analysis documenting a cost-effective alternative that accomplishedthe same task.

(iii) The agency must agree, if awaiver is granted, to notify HCFA of anyevent that occurs that changes theconditions upon which the waiver wasapproved.

(2) HCFA will review a State’s requestto have a requirement specified underparagraph (l)(1) of this section waivedand will request additional informationfrom the State, if necessary. HCFA willnotify the State of its approval ordisapproval determination within 30days of receipt of a properlydocumented request.

(3) HCFA may rescind a waiver at anytime that it determines that the agency


no longer meets the criteria forapproving the waiver. If the waiver isrescinded, the agency has 6 monthsfrom the date of the rescission notice tomeet the requirement that had beenwaived.

4. Section 433.139 is amended byrevising paragraphs (b), (d)(1), (d)(2),and (e) to read as follows:

§ 433.139 Payment of claims.

* * * * *(b) Probable liability is established at

the time claim is filed. Except asprovided in paragraph (e) of thissection—

(1) If the agency has established theprobable existence of third partyliability at the time the claim is filed,the agency must reject the claim andreturn it to the provider for adetermination of the amount of liability.The establishment of third partyliability takes place when the agencyreceives confirmation from the provideror a third party resource indicating theextent of third party liability. When theamount of liability is determined, theagency must then pay the claim to theextent that payment allowed under theagency’s payment schedule exceeds theamount of the third party’s payment.

(2) The agency may pay the fullamount allowed under the agency’spayment schedule for the claim andthen seek reimbursement from anyliable third party to the limit of legalliability if the claim is for labor anddelivery and postpartum care. (Costsassociated with the inpatient hospitalstay for labor and delivery andpostpartum care must be cost-avoided.)* * * * *

(d) Recovery of reimbursement. (1) Ifthe agency has an approved waiverunder paragraph (e) of this section topay a claim in which the probableexistence of third party liability hasbeen established and then seekreimbursement, the agency must seekrecovery of reimbursement from thethird party to the limit of legal liabilitywithin 60 days after the end of themonth in which payment is madeunless the agency has a waiver of the60-day requirement under paragraph (e)of this section.

(2) Except as provided in paragraph(e) of this section, if the agency learnsof the existence of a liable third partyafter a claim is paid, or benefits becomeavailable from a third party after a claimis paid, the agency must seek recoveryof reimbursement within 60 days afterthe end of the month it learns of theexistence of the liable third party orbenefits become available.* * * * *

(e) Waiver of requirements. (1) Theagency may request initial andcontinuing waiver of the requirementsin paragraphs (b)(1), (d)(1), and (d)(2) ofthis section, if it determines that therequirement is not cost-effective. Anactivity would not be cost-effective ifthe cost of the required activity exceedsthe third party liability recoupment andthe required activity accomplishes, atthe same or at a higher cost, the sameobjective as another activity that isbeing performed by the State.

(i) The agency must submit a requestfor waiver of the requirement in writingto the HCFA regional office.

(ii) The request must contain adequatedocumentation to establish that to meeta requirement specified by the agency isnot cost-effective. Examples ofdocumentation are costs associated withbilling, claims recovery data, and a Stateanalysis documenting a cost-effectivealternative that accomplishes the sametask.

(iii) The agency must agree, if awaiver is granted, to notify HCFA of anyevent that occurs that changes theconditions upon which the waiver wasapproved.

(2) HCFA will review a State’s requestto have a requirement specified underparagraph (e)(1) of this section waivedand will request additional informationfrom the State, if necessary. HCFA willnotify the State of its approval ordisapproval determination within 30days of receipt of a properlydocumented request.

(3) HCFA may rescind the waiver atany time that it determines that theState no longer meets the criteria forapproving the waiver. If the waiver isrescinded, the agency has 6 monthsfrom the date of the rescission notice tomeet the requirement that had beenwaived.

(4) An agency requesting a waiver ofthe requirements specificallyconcerning either the 60-day limit inparagraph (d)(1) or (d)(2) of this sectionmust submit documentation of writtenagreement between the agency and thethird party, including Medicare fiscalintermediaries and carriers, thatextension of the billing requirement isagreeable to all parties.(Catalog of Federal Domestic AssistanceProgram No. 93.778—Medical AssistanceProgram)


FEDERAL COMMUNICATIONSCOMMISSION

47 CFR Part 0

[FCC 95–213]

Changes in the Delegated Authority ofVarious Bureaus

AGENCY: Federal CommunicationsCommission.ACTION: Final rule.

SUMMARY: This Order amends Part 0 ofthe Commission’s rules to reflect theestablishment of the WirelessTelecommunications Bureau (WTB) andchanges to the delegated authority of thevarious Bureaus. Changes to Part 0include authority delegated to the WTB.Common Carrier Bureau (CCB) andInternational Bureau (IB) to resolvecommon carrier forfeiture proceedingsinvolving $80,000 or less and authoritydelegated to the WTB, IB, Mass MediaBureau and Cable Services Bureau toissue subpoenas. A conforming edit isalso made to the Compliance andInformation Bureau’s subpoena power.This Order is intended to create a moreeffective organization in which toconsolidate and administer theCommission’s policies.EFFECTIVE DATE: July 10, 1995.FOR FURTHER INFORMATION CONTACT:Kathleen O’Brien Ham, WirelessTelecommunications Bureau, (202) 418–0660.SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Orderadopted May 30, 1995 and released June9, 1995. The full text of Commissiondecisions are available for inspectionand copying during normal businesshours in the FCC Docket Branch (Room230), 1919 M Street, NW., Washington,DC. The complete text of this decisionmay also be purchased from theCommission’s copy contractor,International Transcription Service,Inc., (202) 857–3800, 2100 M Street,NW., Washington, DC 20037.

Synopsis of the Order

1. In order to create an effectiveorganization in which to consolidateand administer the Commission’spolicies, programs and rules governingdomestic wireless telecommunications,the Commission recently established thenew Wireless TelecommunicationsBureau. Specifically, the Commissionmerged the Private Radio Bureau and aportion of the Common Carrier Bureauto create the WirelessTelecommunications Bureau. The ruleamendments contained in this Ordermake changes to Part 0 of the


1 We also note that the WirelessTelecommunications Bureau, as well as otherrecently created Bureaus, have delegated authorityto act on petitions for reconsideration of decisionsof their predecessor Bureaus on matters within thescope of their relevant delegated authority.

Commission’s Rules to reflect thecreation of the new Bureau, describe itsfunctions, and explain the extent andnature of the authority delegated by theCommission to the Chief of the WirelessTelecommunications Bureau. Inaddition to any new functions orauthority delegated below, the WirelessTelecommunications Bureau assumesthe functions and delegated authoritythat had been granted to the PrivateRadio Bureau as set forth below. Also,certain functions and delegatedauthority provisions of the CommonCarrier Bureau are transferred to theWireless Telecommunications Bureau.Additionally, the Commission makescertain other revisions to the functionsand authority of the Common CarrierBureau, the International Bureau, theMass Media Bureau, the Cable ServicesBureau and the Compliance andInformation Bureau (formerly the FieldOperations Bureau) as set forth below.In particular, the Commission grantadditional delegated authority regardingforfeitures and subpoenas.1

2. The amendments adopted hereinpertain to agency organization,procedure and practice. Consequently,the requirement of notice and commentrule making contained in 5 U.S.C.553(b) and the effective date provisionsof 5 U.S.C. 553(d) of the AdministrativeProcedure Act do not apply. Authorityfor the amendments adopted herein iscontained in section 4(i), 5(b), 5(c)(1),and 303(r) of the Communications Actof 1934, as amended, 47 U.S.C. 154(i),155(b), (c)(1) and 303(r).

3. It is hereby ordered, effective uponpublication of this Order in the FederalRegister, that Part 0 of the Commission’sRules, set forth in Title 47 of the Codeof Federal Regulations, is amended asset forth in the ‘‘Final Rules.’’

4. It is further ordered, That the Chief,Wireless Telecommunications Bureau isgranted delegated authority to make anyadditional conforming amendments tothe Commission’s Rules, in particular toParts 0, 1, 13, 17, 19–25, 80, 87, 90, 94,95 and 97 of Title 47 of the Code ofFederal Regulations, that are notincluded herein and are necessary toreflect the establishment of the WirelessTelecommunications Bureau. Asapplicable, the conforming amendmentswill be coordinated with otherCommission Bureaus and Offices.

5. It is further ordered, That authoritydelegated to the Chief of the CommonCarrier Bureau in the Third Report and

Order, GN Docket No. 93–252, PRDocket Nos. 93–144 and 89–553, 9 FCCRcd 7988(1944) at ¶ 416, 59 FR 59945(Nov. 21, 1994), concerning thedevelopment of forms for licenses tocomply with the spectrum aggregationlimit is hereby transferred to the Chief,Wireless Telecommunications Bureau.

6. It is further ordered, That authoritydelegated to the appropriate Bureau inthe Fifth Report and Order, PP DocketNo. 93–253, FCC 94–285, 10 FCC Rcd403 (1994) at ¶ 142, 59 FR 63210 (Dec.7, 1994), concerning the revision of FCCForms 175, 401 (and any successorforms) to ensure that PersonalCommunications Service applicants arein compliance with the Commission’sRules, is hereby granted to the Chief,Wireless Telecommunications Bureau.Federal Communications Commission.William F. Caton,Acting Secretary.

List of Subjects in 47 CFR Part 0Organization and functions

(Government agencies)

Amendatory TextPart 0 of Title 47 of the Code of

Federal Regulations is amended asfollows:

PART 0—COMMISSIONORGANIZATION

1. The authority citation for Part 0continues to read as follows:

Authority: Secs. 5, 48 Stat. 1068, asamended: 47 U.S.C. 155, 223, unlessotherwise noted.

2. Section 0.5 is amended by revisingparagraph (a)(12) to read as follows:

§ 0.5 General description of Commissionorganization and operations.

(a) * * *(12) Wireless Telecommunications

Bureau.* * * * *

3. Section 0.51 is amended by revisingparagraphs (p) and (q) and adding a newparagraph (r) to read as follows:

§ 0.51 Functions of the Bureau.

* * * * *(p) To advise the Chairman on

priorities for international travel anddevelop, coordinate, and administer theinternational travel plan;

(q) To develop, recommend, andadminister policies, rules, andregulations implementing theCommission’s oversight responsibilitiesregarding COMSAT’s participation inINTELSAT and INMARSAT;

(r) To exercise authority to issue non-hearing related subpoenas for theattendance and testimony of witnesses

and the production of books, papers,correspondence, memoranda, schedulesof charges, contracts, agreements, andany other records deemed relevant tothe investigation of matters within thejurisdiction of the International Bureau.Before issuing a subpoena, theInternational Bureau shall obtain theapproval of the Office of GeneralCounsel.

4. Section 0.61 is amended by revisingparagraph (a) and adding a newparagraph (h) to read as follows:

§ 0.61 Functions of the Bureau.* * * * *

(a) Process applications forauthorizations in radio and televisionservices, including conventional andauxiliary broadcast services (other thaninternational broadcast services) andmulti-point and multi-channel multi-point distribution services.* * * * *

(h) To exercise authority to issue non-hearing related subpoenas for theattendance and testimony of witnessesand the production of books, papers,correspondence, memoranda, schedulesof charges, contracts, agreements, andany other records deemed relevant tothe investigation of matters within thejurisdiction of the Mass Media Bureau.Before issuing a subpoena, the MassMedia Bureau shall obtain the approvalof the Office of General Counsel.

5. Section 0.91 is amended by revisingthe introductory text, paragraphs (a), (c),(i) and (j) to read as follows:

§ 0.91 Functions of the Bureau.The Common Carrier Bureau

develops, recommends, and administerspolicies and programs for the regulationof services, facilities and practices ofentities which furnish interstatecommunications service or interstateaccess service for hire—whether bywire, radio or cable—and of ancillaryoperations related to the provision ofsuch services (excluding public coaststations in the maritime mobile servicesand multi-point and multi-channelmulti-point distribution services andexcluding matters pertainingexclusively to the regulation andlicensing of wirelesstelecommunications services andfacilities). The Bureau also regulates therates, terms and conditions for cabletelevision pole attachments, where suchattachments are not regulated by a stateand not provided by railroads orgovernmentally or cooperatively ownedutilities. The Bureau also develops,recommends, and administers policiesand programs for the regulation of rates,terms, and conditions under whichcommunications entities furnish


interstate communications service,interstate access service, and (incooperation with the InternationalBureau) foreign communications servicefor hire—whether by wire, cable orsatellite. The Bureau also performs thefollowing functions: (a) Advises andmakes recommendations to theCommission, or acts for the Commissionunder delegated authority, in matterspertaining to the regulation andlicensing of communication commoncarriers and ancillary operations (otherthan matters pertaining exclusively tothe regulation and licensing of wirelesstelecommunications services andfacilities). This includes: Policydevelopment and coordination;adjudicatory and rule makingproceedings, including rate and serviceinvestigations; determinations regardinglawfulness of carrier tariffs; action onapplications for service and facilityauthorizations; review of carrierperformance; economic research andanalysis; administration of Commissionaccounting and reporting requirements;compliance and enforcement activities;and any matters concerning wirelinecarriers that also affect wireless carriersin cooperation with the WirelessTelecommunications Bureau.* * * * *

(c) Advises and assists the public,other government agencies and industrygroups on wireline common carrierregulation and related matters.* * * * *

(i) Administers theTelecommunications Service PrioritySystem with the concurrence of theField Operations Bureau, and resolvesmatters involving assignment ofpriorities and other issues pursuant topart 64 of this chapter.

(j) Acts upon matters involvingtelecommunications relay servicescomplaints and certification.* * * * *

6. Section 0.131 and its precedingcentered heading are revised to read asfollows:

Wireless Telecommunications Bureau

§ 0.131 Functions of the Bureau.The Wireless Telecommunications

Bureau develops, recommends andadministers the programs and policiesfor the regulation of the terms andconditions under whichcommunications entities offer domesticwireless telecommunications servicesand of ancillary operations related to theprovision of such services (satellitecommunications excluded). Thesefunctions include all wirelesstelecommunications service providers’and licensees’ activities. The Bureau

also performs the following specificfunctions:

(a) Advises and makesrecommendations to the Commission, oracts for the Commission underdelegated authority, in all matterspertaining to the licensing andregulation of wirelesstelecommunications, including ancillaryoperations related to the provision oruse of such services; and any mattersconcerning wireless carriers that alsoaffect wireline carriers in cooperationwith the Common Carrier Bureau. Theseactivities include: policy developmentand coordination; conductingrulemaking and adjudicatoryproceedings, including licensing andcomplaint proceedings; acting onwaivers of rules; acting on applicationsfor service and facility authorizations;compliance and enforcement activities;determining resource impacts ofexisting, planned or recommendedCommission activities concerningwireless telecommunications, anddeveloping and recommending resourcedeployment priorities.

(b) Develops and recommends policygoals, objectives, programs and plans forthe Commission on matters concerningwireless telecommunications, drawingupon relevant economic, technological,legislative, regulatory and judicialinformation and developments. Suchmatters include meeting the present andfuture wireless telecommunicationsneeds of the Nation; fostering economicgrowth by promoting efficiency andinnovation in the allocation, licensingand use of the electromagneticspectrum; ensuring choice, opportunityand fairness in the development ofwireless telecommunications servicesand markets; promoting economicallyefficient investment in wirelesstelecommunications infrastructure andthe integration of wirelesscommunications networks into thepublic telecommunications network;enabling access to nationalcommunications services; promoting thedevelopment and widespreadavailability of wirelesstelecommunications services. Reviewsand coordinates orders, programs andactions initiated by other Bureaus andOffices in matters affecting wirelesstelecommunications to ensureconsistency of overall Commissionpolicy.

(c) Serves as the Commission’sprincipal policy and administrative staffresource with regard to spectrumauctions. Administers all Commissionspectrum auctions. Develops,recommends and administers policies,programs and rules concerning auctionsof spectrum for wireless

telecommunications. Advises theCommission on policy, engineering andtechnical matters relating to auctions ofspectrum used for other purposes.Administers procurement of auction-related services from outsidecontractors. Provides policy,administrative and technical assistanceto other Bureaus and Offices on auctionissues.

(d) Regulates the charges, practices,classifications, terms and conditions for,and facilities used to provide, wirelesstelecommunications services. Developsand recommends consistent, integratedpolicies, programs and rules for theregulation of commercial mobile radioservices and private mobile radioservices.

(e) Develops and recommends policy,rules, standards, procedures and formsfor the authorization and regulation ofwireless telecommunications facilitiesand services, including all facilityauthorization applications involvingdomestic terrestrial transmissionfacilities. Coordinates with and assiststhe International Bureau regardingfrequency assignment, coordination andinterference matters.

(f) Develops and recommendsresponses to legislative, regulatory orjudicial inquiries and proposalsconcerning or affecting wirelesstelecommunications.

(g) Develops and recommendspolicies regarding matters affecting thecollaboration and coordination ofrelations among Federal agencies, andbetween the Federal government andthe states, concerning wirelesstelecommunications issues. Maintainsliaison with Federal and stategovernment bodies concerning suchissues.

(h) Develops and recommendspolicies, programs and rules to ensureinterference-free operation of wirelesstelecommunications equipment andnetworks. Coordinates with and assistsother Bureaus and Offices, asappropriate, concerning spectrummanagement, planning, and interferencematters and issues, and in allcompliance and enforcement activities.Studies technical requirements forequipment for wirelesstelecommunications services inaccordance with standards establishedby the Chief, Office of Engineering andTechnology.

(i) Advises and assists consumers,businesses and other governmentagencies on wirelesstelecommunications issues and mattersrelating thereto.

(j) Obtains from entities subject to theCommission’s jurisdiction and fromother available sources, the information


relating to wireless telecommunicationsservices necessary to enable the Bureauto perform the duties and carry out theobjectives for which it was created.

(k) Coordinates with and assists theInternational Bureau with respect totreaty activities and internationalconferences concerning wirelesstelecommunications.

(l) Exercises such authority as may beassigned, delegated or referred to it bythe Commission.

(m) Certifies frequency coordinators;considers petitions seeking review ofcoordinator actions; and engages inoversight of coordinator actions andpractices.

(n) Administers the Commission’scommercial radio operator (part 13 ofthis chapter) and amateur radioprograms (part 97 of this chapter) andthe program for construction, markingand lighting of antenna structures (part17 of this chapter).

(o) Exercises authority to issue non-hearing related subpoenas for theattendance and testimony of witnessesand the production of books, papers,correspondence, memoranda, schedulesof charges, contracts, agreements, andany other records deemed relevant tothe investigation of wirelesstelecommunications operators for anyalleged violation or violations of theCommunications Act of 1934, asamended, or the Commission’s rulesand orders. Before issuing a subpoena,the Wireless TelecommunicationsBureau shall obtain the approval of theOffice of General Counsel.

7. Section 0.261 is amended byrevising paragraphs (a)(4) and (a)(10)and paragraphs (b)(5) and (b)(6) to readas follows:

§ 0.261 Authority delegated.

(a) * * *(4) To act upon applications for

international and domestic satellitesystems and earth stations pursuant topart 25 and part 100 of this chapter;* * * * *

(10) To act upon applications forclosure of public coast stations in themaritime service under part 63 of thischapter and to coordinate its effortswith the Wireless TelecommunicationsBureau.* * * * *

(b) * * *(5) To designate for hearing any

applications except:(i) Mutually exclusive applications for

radio facilities filed pursuant to parts23, 25, 73, or 100 of this chapter; and

(ii) Applications for facilities wherethe issues presented relate solely towhether the applicant has complied

with outstanding precedents andguidelines; or

(6) To impose, reduce, or cancelforfeitures pursuant to section 203 orsection 503(b) of the CommunicationsAct of 1934, as amended, in amounts ofmore than $80,000 for common carrierproviders and $20,000 for non-commoncarrier providers.

8. Section 0.291 is amended byrevising paragraphs (a)(1), (d) and (e),removing paragraph (h), andredesignating paragraph (j) as (h) to readas follows:


* * * * *(a) * * * (1) The Chief, Common

Carrier Bureau shall not have authorityto act on any formal or informalcommon carrier applications or section214 applications for common carrierservices which are in hearing status.* * * * *

(d) Authority to designate for hearing.The Chief, Common Carrier Bureau,shall not have authority to designate forhearing any formal complaints whichpresent novel questions of fact, law, orpolicy which cannot be resolved underoutstanding precedents or guidelines.The Chief, Common Carrier Bureau,shall not have authority to designate forhearing any applications exceptapplications for facilities where theissues presented relate solely to whetherthe applicant has complied withoutstanding precedents and guidelines.

(e) Authority concerning forfeitures.The Chief, Common Carrier Bureaushall not have authority to impose,reduce or cancel forfeitures pursuant toSection 203 or Section 503(b) of theCommunications Act of 1934, asamended, in amounts of more than$80,000.* * * * *

§ 0.301 [Removed]9. Section 0.301 is removed and

reserved.10. Section 0.302 is revised to read as

follows:

§ 0.302 Record of actions taken.The application and authorization

files in the appropriate central files ofthe Common Carrier Bureau aredesignated as the Commission’s officialrecords of actions by the Chief, CommonCarrier Bureau pursuant to authoritydelegated to the Chief.

11. Section 0.311 is amended byrevising paragraph (f) to read as follows:


* * * * *(f) The Chief, Field Operations

Bureau, is authorized to issue non-

hearing related subpoenas for theproduction of books, papers,correspondence, memoranda, and otherrecords deemed relevant in theinvestigation of an alleged violation orviolations of Section 301 (unlicensedoperation) or 302a (illegal marketing ofradio frequency devices) of theCommunications Act of 1934, asamended. Before issuing a subpoena,the Bureau shall obtain the approval ofthe Office of General Counsel.* * * * *

12. Section 0.321 is amended byadding a new paragraph (a)(7) to read asfollows:


* * * * *(a) * * *(7) To issue non-hearing related

subpoenas for the attendance andtestimony of witnesses and theproduction of books, papers,correspondence, memoranda, scheduleof charges, contracts, agreements, andany other records deemed relevant tothe investigation of matters within thejurisdiction of the Cable ServicesBureau. Before issuing a subpoena, theCable Services Bureau shall obtain theapproval of the Office of GeneralCounsel.* * * * *

13. Section 0.331 and its precedingcentered heading are revised to read asfollows:

Wireless Telecommunications Bureau

§ 0.331 Authority delegated.The Chief, Wireless

Telecommunications Bureau, is herebydelegated authority to perform allfunctions of the Bureau, described in§ 0.131, subject to the followingexceptions and limitations.

(a) Authority concerning applications.(1) The Chief, WirelessTelecommunications Bureau shall nothave authority to act on any radioapplications that are in hearing status.

(2) The Chief, WirelessTelecommunications Bureau shall nothave authority to act on any complaints,petitions or requests, whether or notaccompanied by an application, whensuch complaints, petitions or requestspresent new or novel questions of lawor policy which cannot be resolvedunder outstanding Commissionprecedents and guidelines.

(b) Authority concerning forfeituresand penalties. The Chief, WirelessTelecommunications Bureau, shall nothave authority to impose, reduce, orcancel forfeitures pursuant to theCommunications Act of 1934, asamended, and imposed under


regulations in this Chapter in amountsof more than $80,000 for commercialradio providers and $20,000 for privateradio providers. Payments for bidwithdrawal, default or to prevent unjustenrichment that are imposed pursuantto Section 309(j) of the CommunicationsAct of 1934, as amended, andregulations in this Chapterimplementing Section 309(j) governingauction authority, are excluded fromthis restriction.

(c) Authority concerning applicationsfor review. The Chief, WirelessTelecommunications Bureau shall nothave authority to act upon anyapplications for review of actions takenby the Chief, WirelessTelecommunications Bureau pursuantto any delegated authority, except thatthe Chief may dismiss any suchapplication that does not comply withthe filing requirements of § 1.115 (d)and (f) of this chapter.

(d) Authority concerning rulemakingproceedings. The Chief, WirelessTelecommunications Bureau shall nothave authority to act upon notices ofproposed rulemaking and inquiry, finalorders in rulemaking proceedings andinquiry proceedings, and reports arisingfrom any of the foregoing except suchorders involving non-substantiverevisions to the rules, or orders makingministerial conforming amendments torule parts, or orders conforming any ofthe applicable rules to formally adoptedinternational convention or agreementwhere novel questions of fact, law orpolicy are not involved. Also, theaddition of new Marine VHF frequencycoordinating committee(s) to § 80.514 ofthis chapter need not be referred to theCommission if they do not involvenovel questions of fact, policy or law.

14. Section 0.332 is amended byrevising the introductory text, removingparagraph (g) and redesignatingparagraph (h) as (g) to read as follows:

§ 0.332 Actions taken under delegatedauthority.

In discharging the authority conferredby § 0.331, the Chief, WirelessTelecommunications Bureau, shallestablish working relationships withother bureaus and staff offices to assurethe effective coordination of actionstaken in the following areas of jointresponsibility:* * * * *


reserved.


reserved.

§ 0.337 [Removed]

17. Section 0.337 is removed andreserved.

18. Section 0.401 is amended byrevising paragraph (a)(3)(i) and the fifthsentence in paragraph (b)(1) and its noteto read as follows:

§ 0.401 Location of Commission offices.

* * * * *(a) * * *(3) * * *(i) The address of the Wireless

Telecommunications Bureau’s licensingfacilities are:

(A) Federal CommunicationsCommission, 1270 Fairfield Road,Gettysburg, PA 17325–7245; and

(B) Federal CommunicationsCommission, WirelessTelecommunications Bureau,Washington, DC 20554.* * * * *

(b) * * *(1) * * * In all other cases,

applications and filings submitted bymail should be sent to the addresseslisted in the appropriate fee rules.

Note: Wireless TelecommunicationsBureau applications that require frequencycoordination by certified coordinators mustbe submitted to the appropriate certifiedfrequency coordinator before filing with theCommission. After coordination, theapplications are filed with the Commissionas set forth herein. (See §§ 90.127 and 90.175of this chapter.)

* * * * *19. Section 0.406 is amended by

revising the third and fourth sentencesof paragraph (b) introductory text andthe eighth sentence of paragraph (b)(2)to read as follows:

§ 0.406 The rules and regulations.

* * * * *(b) * * * Parts 20–29 and 80–109 of

this chapter have been reserved forprovisions pertaining to the wirelesstelecommunications services. In therules pertaining to common carriers,parts 20–25 and 80–99 of this chapterpertain to the use of radio; * * *

(2) * * * Part 1, subpart F, of thischapter contain rules applicable toapplications for licenses in the WirelessTelecommunications Bureau services,including the forms to be used, thefiling requirements, the procedures forprocessing and acting on suchapplications, and certain other matters.* * ** * * * *

20. Section 0.453 is amended byremoving paragraphs (a)(4), (a)(5), (a)(6)and (a)(7), by revising paragraph (m)(1)and by adding a new paragraph (n) toread as follows:

§ 0.453 Public reference rooms.* * * * *

(m) * * *(1) Satellite and earth station

applications files and related materialsunder parts 25 and 100 of this chapter;* * * * *

(n) The Cable Services BureauReference Center. The followingdocuments, files and records areavailable for inspection at this location.

(1) All complaints regarding cableprogramming rates, all documents filedin connection therewith, and allcommunications related thereto, unlessthe cable operator has submitted arequest pursuant to § 0.459 that suchinformation not be made routinelyavailable for public inspection.

(2) All cable operator requests forapproval of existing or increased cabletelevision rates for basic service andassociated equipment over which theCommission has assumed jurisdiction,all documents filed in connectiontherewith, and all communicationsrelated thereto, unless the cable operatorhas submitted a request pursuant to§ 0.459 that such information not bemade routinely available for publicinspection.

(3) Special relief petitions and filespertaining to cable televisionoperations.

(4) Cable television system reportsfiled by operators pursuant to § 76.403of this chapter.


47 CFR Parts 2, 63, 80 and 90

[FR Docket No. 92–257, FCC 95–178]

Maritime Communications


SUMMARY: The Commission has adopteda First Report and Order which providesan economically competitive andspectrally efficient maritime regulatoryenvironment. Specifically, theCommission adopts amendments to itsrules to reclassify international publiccoast stations as non-dominant commoncarriers, and allow certain private landmobile services that meet interferenceprotection criteria to operate on publiccorrespondence channels within themarine VHF band. These amendmentswere necessary in order to subjectinternational public coast stations to aless burdensome regulatory schemeconcerning tariff and closure proceduresand to provide relief from private landmobile congestion within the VHF band.


EFFECTIVE DATE: August 9, 1995.FOR FURTHER INFORMATION CONTACT:Roger S. Noel of the WirelessTelecommunications Bureau at (202)418–0680.SUPPLEMENTARY INFORMATION: This is asummary of the Commission’s FirstReport and Order, adopted April 26,1995, and released May 26, 1995. Thefull text of this action is available forinspection and copying during normalbusiness hours in the FCC ReferenceCenter, Room 239, 1919 M Street, NW.,Washington, DC. The complete text maybe purchased from the Commission’scopy contractor, ITS, Inc., (202) 857–3800, 2100 M Street, NW., Suite 140,Washington, DC 20037.

Summary of First Report and Order1. In this action, the Commission

makes two distinct changes to the rules.First, the Commission reclassifiesinternational public coast stations asnon-dominant common carriers. Publiccoast stations provide common carriertelecommunications service to shipstations, including telephony,telegraphy, data and facsimile services.Because there is significant competitionin the marine radio publiccorrespondence market andsubstitutability of service from cellularand satellite-based services, public coaststations do not possess market power.Therefore, the Commission reclassifiespublic coast stations as non-dominant inorder to subject them to a lessburdensome regulatory schemeconcerning tariff and closureprocedures.

2. Second, the Commission amendsthe maritime and private land mobileservice rules to permit certain landmobile licensees, those eligible underthe industrial and land transportationradio service rules, to share marine VHFpublic correspondence frequencies on aprimary basis far from navigablewaterways and existing public coaststations. Similarly, sharing will bepermitted on a secondary, non-interference basis when the land mobileapplicant is located near a navigablewaterway, but is far from VHF publiccoast stations. The Commissioncurrently permits sharing between themaritime and private land mobileservice on a case-by-case basis. Based onthis experience, the Commission adoptsinter-service sharing to increasespectrum efficiency without causingharmful interference to VHF publiccoast stations. The rules below set forththe minimum distance required from

navigable waterways and existing publiccoast stations.

3. The rules are set forth at the endof this document.

4. The rules contained herein havebeen analyzed with respect to thePaperwork Reduction Act of 1980, 44U.S.C. 3501 et seq., and found tocontain no new or modified form,information collection, and/orrecordkeeping, labeling, disclosure, orrecord retention requirements and willnot increase or decrease burden hoursimposed on the public.

5. This First Report and Order isissued under the authority of sections4(i) and 303(r) of the CommunicationsAct of 1934, as amended, 47 U.S.C.154(i) and 303(r).

Final Regulatory Flexibility Analysis

Reason for Action

The Commission (1) reclassifies VHFpublic coast stations as non-dominantcommon carriers, thereby subjectingthem to a streamlined regulatoryscheme, and (2) authorizes inter-servicesharing of certain maritime frequenciesin order to reduce private land mobileservice frequency congestion in certaingeographical areas.

Objectives

We seek to increase efficiency in theseradio services and within thecommission by (1) streamlining thetariff filing and closure reportingrequirements for VHF public coaststations, and (2) authorizing sharing offrequencies between the land mobileand marine radio services. Such changesshould reduce unnecessary burdens onthe public and administrative costs tothe Commission.

Legal Basis

This action is authorized undersections 4(i) and 303(r) of theCommunications Act, 47 U.S.C. 154(i)and 303(r).

Reporting, Recordkeeping and OtherCompliance Requirements

VHF coast stations will be subject tothe streamlined regulatory scheme fornon-dominant common carriers.

Federal Rules Which Overlap, Duplicateor Conflict With These Rules

None.

Description, Potential Impact, andSmall Entities Involved

The rule amendments pertaining tothe inter-service sharing of land mobile

and marine radio service frequencieswill increase spectrum efficiency andreduce congestion in certain areas of thecountry. Because coast stations are nottypically owned by small businesses,the reclassification of such carriers asnon-dominant will not have asignificant impact on a substantialnumber of small businesses. Thereclassification, however, will eliminatefor coast stations the regulatory burdenof compliance with the tariff andclosure requirements that currentlyapply to dominant common carriers.

Any Significant Alternatives Minimizingthe Impact on Small Entities ConsistentWith the Stated Objectives

None.

List of Subjects

47 CFR Part 2

Radio.

47 CFR Part 63

Communications common carriers.

47 CFR Part 80

Marine safety, Radio.

47 CFR Part 90

Communications equipment, Radio.Federal Communications Commission.William F. Caton,

Acting Secretary.

Final Rules

Chapter I of Title 47 of the Code ofFederal Regulations, parts 2, 63, 80, and90 are amended as follows:

PART 2—FREQUENCY ALLOCATIONSAND RADIO TREATY MATTERS;GENERAL RULES AND REGULATIONS


Authority: Secs. 4, 302, 303, and 307 of theCommunications Act of 1934, as amended,47 U.S.C. sections 154, 154(i), 302, 303,303(r), and 307 unless otherwise noted.

2. Section 2.106 is amended byadding land mobile allocations to theUnited States table, non-governmentsection (column 5) and FCC usedesignators section (column 6), in the157.1875–157.45 MHz and 161.775–162.0125 MHz bands and adding onenongovernment footnote, to read asfollows:

§ 2.106 Table of frequency allocations.


International table United States table FCC usedesigna-

torsRegion 1-al-

locationMHz

Region 2-al-location

MHz

Region 3-al-location

MHz

Govern-ment Non-Government

Rule Part(s) Special-use fre-

quenciesAllocation

MHz Allocation MHz

(1) (2) (3) (4) (5) (6) (7)

* * * * * * ** * * * * * * * * * * * 157.1875–157.45 ........................... MARITIME (80) .............................. * * *

MARITIMEMOBILE

PRIVATELANDMOBILE(90).

LAND MO-BILE

613

US223US266

NG111NG154

* * * * * * ** * * * * * * * * * * * 161.775–162.0125 ......................... DOMESTIC PUBLIC LAND MO-

BILE (22).

MARITIMEMOBILE

MARITIME(80)

613 US266 PRIVATELANDMOBILE(90).

NG6 NG154

* * * * * * *

NON-GOVERNMENT (NG)FOOTNOTES

* * * * *NG154 The 157.1875–157.45 MHz and161.775–162.0125 MHz bands are alsoallocated to the land mobile service forassignment to stations as described in Part 90of this chapter.

* * * * *

PART 63—EXTENSION OF LINES ANDDISCONTINUANCE, REDUCTION,OUTAGE AND IMPAIRMENT OFSERVICE BY COMMON CARRIERS;AND GRANTS OF RECOGNIZEDPRIVATE OPERATING AGENCY


Authority: Sec. 4, 48, Stat. 1066, asamended 47 U.S.C. 154. Interpret or apply

sec. 214, 48 Stat. 1075, as amended; 47 U.S.C.214.

2. Section 63.62 is amended byrevising the introductory paragraph,removing paragraph (e) andredesignating paragraphs (f) and (g) as(e) and (f) respectively to read asfollows:


§ 63.62 Type of discontinuance, reduction,or impairment of telephone or telegraphservice requiring formal application.

Authority for the following types ofdiscontinuance, reduction, orimpairment of service shall be requestedby formal application containing theinformation required by theCommission in the appropriate sectionsto this part, except as provided inparagraph (c) of this section, or inemergency cases (as defined in§ 63.60(b)) as provided in § 63.63:* * * * *

§§ 63.64, 63.69 and 63.70 [Removed]

3. Sections 63.64, 63,69 and 63.70 areremoved.

4. Section 63.90 is amended byrevising paragraph (a) introductory textto read as follows:

§ 63.90 Publication and posting of notices.

(a) Immediately upon the filing of anapplication or informal request (excepta request under § 63.71) for authority toclose or otherwise discontinue theoperation, or reduce the hours of serviceat a telephone exchange (except anexchange located at a militaryestablishment), the applicant shall posta public notice at least 51 cm by 61 cm

(20 inches by 24 inches), with letter ofcommensurate size, in a conspicuousplace in the exchange affected, and alsoin the window of any such exchangehaving window space fronting on apublic street at street level. Such noticeshall be posted at least 14 days and shallcontain the following information, asmay be applicable:* * * * *

PART 80—STATIONS IN THEMARITIME SERVICES


Authority: Secs. 4, 303, 48 Stat. 1066,1082, as amended; 47 U.S.C. 154, 303, unlessotherwise noted. Interpret or apply 48 Stat.1064–1068, 1081–1105, as amended; 47U.S.C. 151–155, 301–609; 3 UST 3450, 3 UST4726, 12 UST 2377.

2. Section 80.5 is amended by addingthe definition of ‘‘navigable waters’’ inalphabetical order to read as follows:

§ 80.5 Definitions.

* * * * *Navigable waters. This term, as used

in reference to waters of the UnitedStates, its territories and possessions,means the waters shoreward of the

baseline of its territorial sea and internalwaters as contained in 33 CFR 2.05–25.* * * * *

3. Section 80.371 (c) is amended byadding Footnote 4 to the table headingto read as follows:

§ 80.371 Public correspondencefrequencies.

* * * * *(c) * * *Working Carrier Frequency Pairs in

the 156–162 MHz Band 1,4

* * * * *4 Except for the frequency pair

157.425/162.025 MHz, these frequenciesmay be shared with stations in theprivate land mobile radio service,within the 48 contiguous states, underthe terms of operation described in§ 90.283 of this chapter.* * * * *

4. In § 80.373(f), the table is amendedby redesignating Footnotes 14 and 15 asFootnotes 15 and 16 respectively in theentries for channels 09 and 70, to readas follows:

§ 80.373 Private communicationsfrequencies.

* * * * *(f) * * *

Frequencies in the 156–162 MHz Band

Channel designator

Carrier frequency(MHz) Points of communication (between coast and ship unless

otherwise indicated)Shiptransmit

Coasttransmit

* * * * * * *Digital Selective Calling

70 15 ....................................................................................... 156.525 156.525

Noncommercial

* * * * * * *09 16 ....................................................................................... 156.450 156.450

* * * * * * *

* * * * *

PART 90—PRIVATE LAND MOBILERADIO SERVICES


Authority: Secs. 4, 303, 48 Stat. 1066,1082, as amended; 47 U.S.C. 154, 303 and332, unless otherwise noted.

2. Section 90.7 is amended by addingthe definition for ‘‘navigable waters’’ inalphabetical order to read as follows:

§ 90.7 Definitions.

* * * * *Navigable waters. This term, as used

in reference to waters of the UnitedStates, its territories and possessions,means the waters shoreward of thebaseline of its territorial sea and internalwaters as contained in 33 CFR 2.05–25.

3. A new § 90.283 is added to subpartK to read as follows:

§ 90.283 Inter-service sharing of maritimefrequencies in the 156–162 MHz band.

(a) The following frequency pairs maybe assigned to any station eligible for

licensing in the Industrial and LandTransportation Radio Services (subpartsD and E of this part excluding § 90.75)for duplex operation within the 48contiguous states in accordance with therules of their individual services, theconditions set forth in this section, andthe CANADA/U.S.A. channelingagreement for VHF maritime publiccorrespondence found in § 80.57 of thischapter.


Frequency (MHz)

Mobile station transmitBase sta-

tiontransmit

157.200 ......................................... 161.800157.225 ......................................... 161.825157.250 ......................................... 161.850157.275 ......................................... 161.875157.300 ......................................... 161.900157.325 ......................................... 161.925157.350 ......................................... 161.950157.375 ......................................... 161.975157.400 ......................................... 162.000

(b) Assignment will be made onlywhen VHF frequencies available for

assignment under this Part areunavailable due to congestion, asdetermined by a certified private landmobile frequency coordinator.Applicants must provide evidence offrequency coordination in accordancewith § 90.175.

(c) Station power, as measured at theoutput terminals of the transmitter,must not exceed 50 watts for basestations and 20 watts for mobilestations. Antenna height (HAAT) mustnot exceed 122 meters (400 feet) for basestations and 4.5 meters (15 feet) formobile stations. Such base and mobilestations must not be operated on boardaircraft in flight.

(d) The following table, along with theantenna height (HAAT) and power(ERP), must be used to determine theminimum separation required betweenproposed base stations and each of thefollowing:

(1) Co-channel public coast stationslicensed under part 80 of this chapter,

(2) The coastline of any navigablewaterway,

(3) Grandfathered public safetylicensees operating on 157.35 MHz or161.85 MHz. Applicants whose exactERP or HAAT are not reflected in thetable must use the next highest figureshown.

REQUIRED SEPARATION IN KILOMETERS (MILES) OF BASE STATION FROM COASTLINES/PUBLIC COAST STATIONS

Base Station Characteristics

HAAT ERP (watts)

Meters (feet) 400 300 200 100 50

15 (50) .......................................................................................................................... 138 (86) 135 (84) 129 (80) 121 (75) 116 (72)30 (100) ........................................................................................................................ 154 (96) 151 (94) 145 (90) 137 (85) 130 (81)61 (200) ........................................................................................................................ 166 (103) 167 (104) 161 (100) 153 (95) 145 (90)122 (400) ...................................................................................................................... 187 (116) 177 (110) 183 (114) 169 (105) 159 (99)

(e) In the event of interference, theCommission may require, without ahearing, licensees of base stationsauthorized under this section that arelocated within 241 kilometers (150miles) of an existing, co-channel publiccoast station, grandfathered co-channelpublic safety station or an internationalborder to reduce radiated power,decrease antenna height, and/or installdirectional antennas. Mobile stationsmust operate only within radio range oftheir associated base station.

(f) Individual waiver requests tooperate on a secondary, non-interference, basis will be considered incases where the applicant’s base stationsatisfies the requirements of paragraphs(d) (1) and (3) of this section but doesnot satisfy the requirements ofparagraph (d)(2) of this section. Allwaiver requests must be submitted inaccordance with § 1.931 of the chapter.Such secondary operations must ceaseimmediately upon notification by theCommission that the station is causinginterference to maritime operations.

4. Section 90.555 is amended byrevising two of the service titles inparagraph (a) and by adding eighteennew frequencies entries in numericalorder in paragraph (b) to read as follows:

§ 90.555 Combined frequency listing.

(a) * * *

Industrial Services (I)

* * * * *

Land Transportation Services (LT)

* * * * *(b) * * *

Frequency Services Special Limitations

157.200 .............................................................. I,LT ................................................................... See § 90.283157.225 .............................................................. ......do ................................................................ Do.157.250 .............................................................. ......do ................................................................ Do.157.275 .............................................................. ......do ................................................................ Do.157.300 .............................................................. ......do ................................................................ Do.157.325 .............................................................. ......do ................................................................ Do.157.350 .............................................................. ......do ................................................................ Do.157.375 .............................................................. ......do ................................................................ Do.157.400 .............................................................. ......do ................................................................ Do.

* * * * *161.800 .............................................................. I,LT ................................................................... See § 90.283161.825 .............................................................. ......do ................................................................ Do.161.850 .............................................................. ......do ................................................................ Do.161.875 .............................................................. ......do ................................................................ Do.161.900 .............................................................. ......do ................................................................ Do.161.925 .............................................................. ......do ................................................................ Do.161.950 .............................................................. ......do ................................................................ Do.161.975 .............................................................. ......do ................................................................ Do.162.000 .............................................................. ......do ................................................................ Do.

* * * * *




47 CFR Part 73

[MM Docket No. 92–194; RM–8052; RM–8121]

Radio Broadcasting Services; Essexand Needles, CA


SUMMARY: This document allots Channel280B to Essex, California, as thatcommunity’s second local FM service,in response to a petition for rule makingfiled on behalf of Dunes Broadcasting(RM–8052). See 57 FR 42536, September15, 1992. Additionally, Channel 296B isallotted to Needles, California, as thatcommunity’s second local FM service,in response to a counterproposal filedon behalf of David A. Petrick (RM–8121). Coordinates used for Channel280B at Essex are 34–44–12 and 115–14–48. Coordinates used for Channel296B at Needles, California, are 34–50–36 and 114–36–54. As Essex andNeedles are located within 320kilometers (199 miles) of the UnitedStates-Mexico border, concurrence ofthe Mexican government in therespective allotments was obtained.With this action, the proceeding isterminated.DATES: Effective August 21, 1995. Thewindow period for filing applicationswill open on August 21, 1995, and closeon September 21, 1995.FOR FURTHER INFORMATION CONTACT:Nancy Joyner, Mass Media Bureau, (202)418–2180. Questions related to thewindow application filing process forChannel 280B at Essex, California, andfor Channel 296B at Needles, California,should be addressed to the AudioServices Division, FM Branch, (202)418–2700.SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Reportand Order, MM Docket No. 92–194,adopted June 23, 1995, and released July5, 1995. The full text of thisCommission decision is available forinspection and copying during normalbusiness hours in the FCC’s ReferenceCenter (Room 239), 1919 M Street, NW.,Washington, DC. The complete text ofthis decision may also be purchasedfrom the Commission’s copycontractors, International TranscriptionService, Inc., (202) 857–3800, located at

1919 M Street, NW., Room 246, or 2100M Street, NW., Suite 140, Washington,DC 20037.


Radio broadcasting.

Part 73 of title 47 of the Code ofFederal Regulations is amended asfollows:

PART 73—[AMENDED]


Authority: Secs. 303, 48 Stat., as amended,1082; 47 U.S.C. 154, as amended.

§ 73.202 [Amended]

2. Section 73.202(b), the Table of FMAllotments under California, isamended by adding Channel 280B atEssex, and by adding Channel 296B atNeedles.Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 95–16840 Filed 7–7–95; 8:45 am]BILLING CODE 6712–01–F

47 CFR Part 73

[MM Docket No. 95–30; RM–8599]

Radio Broadcasting Services;Harwood, ND


SUMMARY: The Commission, at therequest of Conway Broadcasting, allotsChannel 264C3 to Harwood, NorthDakota, as the community’s first localaural service. See 60 FR 12724, March8, 1995. Channel 264C3 can be allottedto Harwood in compliance with theCommission’s minimum distanceseparation requirements with a siterestriction of 14.7 kilometers (9.1 miles)southwest, at coordinates 47–05–00North Latitude; 97–00–00 WestLongitude, to avoid a short-spacing toStation KIKV-FM, Channel 264C1,Alexandria, MN. Canadian concurrencehas been received since Harwood islocated within 320 kilometers (200miles) of the U.S.-Canadian border.With this action, this proceeding isterminated.DATES: Effective August 21, 1995. Thewindow period for filing applicationswill open on August 21, 1995, and closeon September 21, 1995.FOR FURTHER INFORMATION CONTACT:Leslie K. Shapiro, Mass Media Bureau,(202) 418–2180.

SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Reportand Order, MM Docket No. 95–30,adopted June 26, 1995, and released July5, 1995. The full text of thisCommission decision is available forinspection and copying during normalbusiness hours in the FCC ReferenceCenter (Room 239), 1919 M Street, NW.,Washington, DC. The complete text ofthis decision may also be purchasedfrom the Commission’s copy contractor,International Transcription Service,Inc., (202) 857–3800, 2100 M Street,NW., Suite 140, Washington, DC 20037.

List of Subjects in 47 CFR Part 73Radio broadcasting.Part 73 of title 47 of the Code of

Federal Regulations is amended asfollows:

PART 73—[AMENDED]



§ 73.202 [Amended]2. Section 73.202(b), the Table of FM

Allotments under North Dakota, isamended by adding Harwood, Channel264C3.Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 95–16841 Filed 7–7–95; 8:45 am]BILLING CODE 6712–01–F

47 CFR Part 73

[MM Docket No. 91–58]

Radio Broadcasting Services;Caldwell, College Station and Gause,TX


SUMMARY: This document substitutesChannel 236C2 for Channel 297C3 atCollege Station, Texas, and modifies thelicense of Station KTSR, College Station,Texas, to specify operation on Channel237C2. In order to accommodate thisupgrade, this document also modifiesthe construction permit of StationKHEN, Caldwell, Texas, to specifyoperation on Channel 297A. In doing so,it denies a competing request for aChannel 236C2 upgrade at Caldwell,Texas. See 59 FR 44120, publishedAugust 26, 1994. The referencecoordinates for Channel 236C2 atCollege Station, Texas, are 30–49–00


and 96–25–00. The referencecoordinates for the Channel 297Aallotment at Caldwell, Texas, are 30–33–31 and 96–34–50. With this action, theproceeding is terminated.

EFFECTIVE DATE: August 21, 1995.

FOR FURTHER INFORMATION CONTACT:Robert Hayne, Mass Media Bureau,(202) 776–1654.

SUPPLEMENTAL INFORMATION: This is asynopsis of the Commission’s Reportand Order, MM Docket No. 91–58,adopted June 23, 1995, and released July5, 1995. The full text of this decision isavailable for inspection and copyingduring normal business hours in theFCC Dockets Branch (Room 230), 1919M Street, NW., Washington, DC. Thecomplete text of this decision may alsobe purchased from the Commission’scopy contractor, InternationalTranscription Service, (202) 857–3800,2100 M Street, NW., Washington, DC20037.


Radio broadcasting.

Part 73 of title 47 of the Code ofFederal Regulations is amended asfollows:

PART 73—[AMENDED]



§ 73.202 [Amended]

2. Section 73.202(b), the Table of FMAllotments under Texas, is amended bydeleting Channel 297C3 and addingChannel 236C2 at College Station.

3. Section 73.202(b), the Table of FMAllotments under Texas, is amended bydeleting Channel 236A and addingChannel 297A at Caldwell.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.

[FR Doc. 95–16843 Filed 7–7–95; 8:45 am]

BILLING CODE 6712–01–F

DEPARTMENT OF COMMERCE

National Oceanic and AtmosphericAdministration

50 CFR Parts 650 and 651

[Docket No. 950622165–5165–01; I.D.060595D]

RIN 0648–AI03

Atlantic Sea Scallop Fishery;Framework Adjustment 6 andNortheast Multispecies Fishery;Framework Adjustment 11; ModifiesDemarcation Line To Monitor VesselActivity

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Final rule.

SUMMARY: NMFS issues this final rule toimplement Framework Adjustment 11to the Northeast Multispecies FisheryManagement Plan (Multispecies FMP)and Framework Adjustment 6 to theAtlantic Sea Scallop FisheryManagement Plan (Scallop FMP). Thisaction modifies a demarcation line inthe current regulations that is used tomonitor vessel activity. The intent ofthis action is to enhance enforcementcapability.EFFECTIVE DATE: August 9, 1995.ADDRESSES: Copies of FrameworkAdjustments 6 to the Scallop FMP and11 to the Multispecies FMP and copiesof Amendment 4 to the Scallop FMPand Amendment 5 to the MultispeciesFMP, their regulatory impact reviews,initial regulatory flexibility analyses(IRFA), and final and supplementalenvironmental impact statements areavailable from Douglas Marshall,Executive Director, New EnglandFishery Management Council (Council),Suntaug Office Park, 5 Broadway (U.S.Rte. 1), Saugus, MA 01906–1097;telephone: 617–231–0422.FOR FURTHER INFORMATION CONTACT:Myles Raizin, Resource Policy Analyst,508–281–9104.SUPPLEMENTARY INFORMATION: Finalregulations implementing Amendment 5to the Multispecies FMP andAmendment 4 to the Scallop FMP werepublished on March 1, 1994 (59 FR9872), and January 19, 1994 (59 FR2757), respectively. These amendmentsestablished effort control programs thatallocated a certain number of daysduring which a vessel may fish forregulated multispecies or scallops.These programs are referred to as days-at-sea (DAS) programs. The DASprograms require a demarcation line to

determine when a vessel leaves port toinitiate a fishing trip so that the vessel’sDAS can be traced electronically usinga vessel tracking device. The frameworkadjustments implemented by this rulemodify the existing vessel trackingsystem (VTS) demarcation line which isbased on the International Regulationsfor Preventing Collisions at Sea(COLREGS) line. The modified line,referred to as the Vessel TrackingSystem Demarcation Line (VTSDL), is acontinuous line formed by connecting50 specified coordinates that parallelthe east coast of the United States fromthe Canadian border to South Carolina.

NMFS’ Office of Enforcement in theNortheast Region has the responsibilityfor implementing, monitoring, andenforcing the DAS program. During thedevelopment of this monitoringprogram, NMFS enforcement discoveredthat the COLREGS demarcation linespecified in the regulations formultispecies and scallops would not befunctional in the electronic systembecause the line is discontinuous andoften described only in narrative terms.

The Council and NMFS initiallybelieved that the COLREGS demarcationline would be an optimal boundary forthis purpose because it was preexistingand appeared to be a reasonabledistance from shore. This line is used todelineate the waters upon whichmariners must comply with theInternational Regulations for PreventingCollisions at Sea (33 CFR part 80), andthose waters upon which mariners shallcomply with the Inland NavigationRules. Since the COLREGS demarcationline is actually a series of disjointedlines, a vessel could breach theCOLREGS line undetected.

NMFS determined that in order to befunctional for the computerized VTS,the line would have to be defined interms of latitude/longitude coordinates.The VTSDL forms a continuous lineallowing NMFS enforcement to monitorthe entire coastline from Maine to SouthCarolina. Therefore, a vessel embarkingon or returning from a fishing trip mustcross the VTSDL, thus, triggering orceasing a DAS. Accordingly, NMFSrequested that the Council modify theregulations to define the line in terms oflatitude/longitude coordinates.

Justification for Final RuleThe Council developed Framework

Adjustment 11 to the Multispecies FMPand Framework Adjustment 6 to theScallop FMP to amend the regulations.These adjustments comply with allprocedural requirements set forth in 50CFR 650.40 and 651.40, which are theprovisions of the implementingregulations for the Scallop FMP and


Multispecies FMP governing frameworkmodifications to management measures.The Council requested publication ofthe management measures as a final ruleafter considering the required factors setforth at §§ 650.40(d) and 651.40(d).

Public CommentThe framework adjustments were

developed and analyzed at Councilmeetings on March 29 and May 18,1995. The Council provided the publicwith advance notice of both theproposed change to the line and thereasons for the change, and theopportunity to comment on them priorto and at the Council meetings.

One comment was received at theMarch 29, 1995, meeting regarding twocoordinates off the coast of Maine. Thecommenter believed the coordinateswould allow excessive groundfishinginside the demarcation line in down-east Maine. The Council concurred andrevised the two coordinates and addeda third, so that the line is drawn closerto shore. No comments were received atthe May 18, 1995, meeting.

NMFS concurs with the frameworkadjustments because the replacement ofthe COLREGS line with the VTSDL willenhance the ability to monitor andenforce the DAS programs, thusproviding immediate and increasedprotection for the scallop andmultispecies resources.

ClassificationThe Assistant Administrator for

Fisheries, NOAA (AA), finds there is

good cause to waive prior notice andopportunity for comments under 5U.S.C. 553(b)(B). Public meetings heldby the Council to discuss themanagement measures of FrameworkAdjustment 6 to the Scallop FMP andFramework Adjustment 11 to theMultispecies FMP provided adequateprior notice and opportunity for publiccomment to be made and considered,making additional prior notice andopportunity for public commentunnecessary.

Because no proposed rule is required,this action is exempt from therequirements to prepare an IRFA underthe Regulatory Flexibility Act. As aresult, a regulatory flexibility analysiswas not prepared.

This final rule has been determined tobe not significant for purposes of E.O.12866.

List of Subjects

50 CFR Part 650

Fisheries, Reporting andrecordkeeping requirements.

50 CFR Part 651

Fisheries, Fishing, Reporting andrecordkeeping requirements.

Dated: June 29, 1995.Gary Matlock,Acting Assistant Administrator for Fisheries,National Marine Fisheries Service.

For the reasons set out in thepreamble, 50 CFR parts 650 and 651 areamended as follows:

PART 650—ATLANTIC SEA SCALLOPFISHERY


Authority: 16 U.S.C. 1801 et seq.

§ 650.2 [Amended]

2. In § 650.2, the definition of‘‘COLREGS Demarcation Lines’’ isremoved.

3. In § 650.24, existing paragraph(c)(2)(ii) is redesignated as paragraph(c)(2)(iii); a new paragraph (c)(2)(ii) isadded; and paragraph (c)(2)(i) is revisedto read as follows:

§ 650.24 Days-at-sea (DAS) allocations.

* * * * *(c) * * *(2) * * *(i) DAS for vessels that are under the

VTS monitoring system described in§ 650.26(a) are counted beginning withthe first hourly location signal receivedshowing that the vessel crossed theVessel Tracking System DemarcationLine leaving port and ending with thefirst hourly location signal receivedshowing that the vessel crossed theVessel Tracking System DemarcationLine upon its return to port.

(ii) Vessel Tracking SystemDemarcation Line. The Vessel TrackingSystem Demarcation Line is defined bystraight lines connecting the followingpoints in the order stated (See Figures3 and 4 to part 650):

VESSEL TRACKING SYSTEM DEMARCATION LINE

Description Longitude Latitude

1. Northern terminus point (Canada land mass) ................................................................................................... 45°03′ N. 66°47′ W.2. A point east of West Quoddy Head Light .......................................................................................................... 44°48.9′ N. 66°56.1′ W.3. A point east of Little River Light ........................................................................................................................ 44°39.0′ N. 67°10.5′ W.4. Whistle Buoy ‘‘8BI’’ (SSE of Baker Island) ........................................................................................................ 44°13.6′ N. 68°10.8′ W.5. Isle au Haut Light ............................................................................................................................................... 44°03.9′ N. 68°39.1′ W.6. Pemaquid Point Light ......................................................................................................................................... 43°50.2′ N. 69°30.4′ W.7. A point west of Halfway Rock ............................................................................................................................ 43°38.0′ N. 70°05.0′ W.8. A point east of Cape Neddick Light ................................................................................................................... 43°09.9′ N. 70°34.5′ W.9. Merrimack River Entrance ‘‘MR’’ Whistle Buoy ................................................................................................. 42°48.6′ N. 70°47.1′ W.

10. Halibut Point Gong Buoy ‘‘1AHP’’ ...................................................................................................................... 42°42.0′ N. 70°37.5′ W.11. Connecting reference point ................................................................................................................................ 42°40′ N. 70°30′ W.12. Whistle Buoy ‘‘2’’ off Eastern Point .................................................................................................................... 42°34.3′ N. 70°39.8′ W.13. The Graves Light (Boston) ................................................................................................................................ 42°21.9′ N. 70°52.2′ W.14. Minots Ledge Light ............................................................................................................................................ 42°16.2′ N. 70°45.6′ W.15. Farnham Rock Lighted Bell Buoy ...................................................................................................................... 42°05.6′ N. 70°36.5′ W.16. Cape Cod Canal Bell Buoy ‘‘CC’’ ...................................................................................................................... 41°48.9′ N. 70°27.7′ W.17. A point inside Cape Cod Bay ............................................................................................................................ 41°48.9′ N. 70°05′ W.18. Race Point Lighted Bell Buoy ‘‘RP’’ ................................................................................................................... 42°04.9′ N. 70°16.8′ W.19. Peaked Hill Bar Whistle Buoy ‘‘2PH’’ ................................................................................................................ 42°07.0′ N. 70°06.2′ W.20. Connecting point, off Nauset Light .................................................................................................................... 41°50′ N. 69°53′ W.21. A point south of Chatham ‘‘C’’ Whistle Buoy ..................................................................................................... 41°38′ N. 69°55.2′ W.22. A point in eastern Vineyard Sound .................................................................................................................... 41°30′ N. 70°33′ W.23. A point east of Martha’s Vineyard ..................................................................................................................... 41°22.2′ N. 70°24.6′ W.24. A point east of Great Pt. Light, Nantucket ......................................................................................................... 41°23.4′ N. 69°57′ W.25. A point SE of Sankaty Head, Nantucket ........................................................................................................... 41°13′ N. 69°57′ W.26. A point west of Nantucket .................................................................................................................................. 41°15.6′ N. 70°25.2′ W.27. Squibnocket Lighted Bell Buoy ‘‘1’’ .................................................................................................................... 41°15.7′ N. 70°46.3′ W.


VESSEL TRACKING SYSTEM DEMARCATION LINE—Continued


28. Wilbur Point (on Sconticut Neck) ....................................................................................................................... 41°35.2′ N. 70°51.2′ W.29. Mishaum Point (on Smith Neck) ........................................................................................................................ 41°31.0′ N. 70°57.2′ W.30. Sakonnet Entrance Lighted Whistle Buoy ‘‘SR’’ ................................................................................................ 41°25.7′ N. 71°13.4′ W.31. Point Judith Lighted Whistle Buoy ‘‘2’’ ............................................................................................................... 41°19.3′ N. 71°28.6′ W.32. A point off Block Island Southeast Light ............................................................................................................ 41°08.2′ N. 71°32.1′ W.33. Shinnecock Inlet Lighted Whistle Buoy ‘‘SH’’ .................................................................................................... 40°49.0′ N. 72°28.6′ W.34. Scotland Horn Buoy ‘‘S’’, off Sandy Hook (NJ) ................................................................................................. 40°26.5′ N. 73°55.0′ W.35. Barnegat Lighted Gong Buoy ‘‘2’’ ...................................................................................................................... 39°45.5′ N. 73°59.5′ W.36. A point east of Atlantic City Light ...................................................................................................................... 39°21.9′ N. 74°22.7′ W.37. A point east of Hereford Inlet Light .................................................................................................................... 39°00.4′ N. 74°46′ W.38. A point east of Cape Henlopen Light ................................................................................................................ 38°47′ N. 75°04′ W.39. A point east of Fenwick Island Light .................................................................................................................. 38°27.1′ N. 75°02′ W.40. A point NE of Assateague Island (VA) .............................................................................................................. 38°00′ N. 75°13′ W.41. Wachapreague Inlet Lighted Whistle Buoy ‘‘A’’ ................................................................................................. 37°35.0′ N. 75°33.7′ W.42. A point NE of Cape Henry ................................................................................................................................. 36°55.6′ N. 75°58.5′ W.43. A point east of Currituck Beach Light ................................................................................................................ 36°22.6′ N. 75°48′ W.44. Oregon Inlet (NC) Whistle Buoy ........................................................................................................................ 35°48.5′ N. 75°30′ W.45. Wimble Shoals, east of Chicamacomico ........................................................................................................... 35°36′ N. 75°26′ W.46. A point SE of Cape Hatteras Light .................................................................................................................... 35°12.5′ N. 75°30′ W.47. Hatteras Inlet Entrance Buoy ‘‘HI’’ ..................................................................................................................... 35°10′ N. 75°46′ W.48. Ocracoke Inlet Whistle Buoy ‘‘OC’’ .................................................................................................................... 35°01.5′ N. 76°00.5′ W.49. A point east of Cape Lookout Light ................................................................................................................... 34°36.5′ N. 76°30′ W.50. Southern terminus point ..................................................................................................................................... 34°35′ N. 76°41′ W.

* * * * *

Figures 3 and 4 to Part 650 [Amended]

4. Figures 3 and 4 to part 650 areadded to read as follows:BILLING CODE 3510–22–W


BILLING CODE 3510–22–C


PART 651—NORTHEASTMULTISPECIES FISHERY


Authority: 16 U.S.C. 1801 et seq.

§ 651.2 [Amended]

6. In § 651.2, the definition of‘‘COLREGS Demarcation Lines’’ isremoved.

7. In § 651.22, paragraph (b)(3)(iv) isredesignated as paragraph (b)(3)(v); a

new paragraph (b)(3)(iv) is added; andparagraph (b)(3)(iii) is revised to read asfollows:

§ 651.22 Effort-control program for limitedaccess vessels.

* * * * *(b) * * *(3) * * *(iii) Accrual of DAS. DAS for vessels

that are under the VTS monitoringsystem described in § 651.29(a) arecounted beginning with the first hourlylocation signal received showing that

the vessel crossed the Vessel TrackingSystem Demarcation Line leaving portand ending with the first hourlylocation signal received showing thatthe vessel crossed the Vessel TrackingSystem Demarcation Line upon itsreturn to port.

(iv) Vessel Tracking SystemDemarcation Line. The Vessel TrackingSystem Demarcation Line is defined asstraight lines connecting the followingpoints in the order stated (See Figures6 and 7 to part 651):

VESSEL TRACKING SYSTEM DEMARCATION LINE


1. Northern terminus point (Canada land mass) ..................................................................................................... 45°03′ N. 66°47′ W.2. A point east of West Quoddy Head Light ............................................................................................................ 44°48.9′ N. 66°56.1′ W.3. A point east of Little River Light .......................................................................................................................... 44°39.0′ N. 67°10.5′ W.4. Whistle Buoy ‘‘8BI’’ (SSE of Baker Island) .......................................................................................................... 44°13.6′ N. 68°10.8′ W.5. Isle au Haut Light ................................................................................................................................................. 44°03.9′ N. 68°39.1′ W.6. Pemaquid Point Light ........................................................................................................................................... 43°50.2′ N. 69°30.4′ W.7. A point west of Halfway Rock .............................................................................................................................. 43°38.0′ N. 70°05.0′ W.8. A point east of Cape Neddick Light ..................................................................................................................... 43°09.9′ N. 70°34.5′ W.9. Merrimack River Entrance ‘‘MR’’ Whistle Buoy ................................................................................................... 42°48.6′ N. 70°47.1′ W.10. Halibut Point Gong Buoy ‘‘1AHP’’ ...................................................................................................................... 42°42.0′ N. 70°37.5′ W.11. Connecting reference point ................................................................................................................................ 42°40′ N. 70°30′ W.12. Whistle Buoy ‘‘2’’ off Eastern Point .................................................................................................................... 42°34.3′ N. 70°39.8′ W.13. The Graves Light (Boston) ................................................................................................................................ 42°21.9′ N. 70°52.2′ W.14. Minots Ledge Light ............................................................................................................................................ 42°16.2′ N. 70°45.6′ W.15. Farnham Rock Lighted Bell Buoy ...................................................................................................................... 42°05.6′ N. 70°36.5′ W.16. Cape Cod Canal Bell Buoy ‘‘CC’’ ...................................................................................................................... 41°48.9′ N. 70°27.7′ W.17. A point inside Cape Cod Bay ............................................................................................................................ 41°48.9′ N. 70°05′ W.18. Race Point Lighted Bell Buoy ‘‘RP’’ ................................................................................................................... 42°04.9′ N. 70°16.8′ W.19. Peaked Hill Bar Whistle Buoy ‘‘2PH’’ ................................................................................................................ 42°07.0′ N. 70°06.2′ W.20. Connecting point, off Nauset Light .................................................................................................................... 41°50′ N. 69°53′ W.21. A point south of Chatham ‘‘C’’ Whistle Buoy ..................................................................................................... 41°38′ N. 69°55.2′ W.22. A point in eastern Vineyard Sound .................................................................................................................... 41°30′ N. 70°33′ W.23. A point east of Martha’s Vineyard ..................................................................................................................... 41°22.2′ N. 70°24.6′ W.24. A point east of Great Pt. Light, Nantucket ......................................................................................................... 41°23.4′ N. 69°57′ W.25. A point SE of Sankaty Head, Nantucket ........................................................................................................... 41°13′ N. 69°57′ W.26. A point west of Nantucket .................................................................................................................................. 41°15.6′ N. 70°25.2′ W.27. Squibnocket Lighted Bell Buoy ‘‘1’’ .................................................................................................................... 41°15.7′ N. 70°46.3′ W.28. Wilbur Point (on Sconticut Neck) ....................................................................................................................... 41°35.2′ N. 70°51.2′ W.29. Mishaum Point (on Smith Neck) ........................................................................................................................ 41°31.0′ N. 70°57.2′ W.30. Sakonnet Entrance Lighted Whistle Buoy ‘‘SR’’ ................................................................................................ 41°25.7′ N. 71°13.4′ W.31. Point Judith Lighted Whistle Buoy ‘‘2’’ ............................................................................................................... 41°19.3′ N. 71°28.6′ W.32. A point off Block Island Southeast Light ............................................................................................................ 41°08.2′ N. 71°32.1′ W.33. Shinnecock Inlet Lighted Whistle Buoy ‘‘SH’’ .................................................................................................... 40°49.0′ N. 72°28.6′ W.34. Scotland Horn Buoy ‘‘S’’, off Sandy Hook (NJ) ................................................................................................. 40°26.5′ N. 73°55.0′ W.35. Barnegat Lighted Gong Buoy ‘‘2’’ ...................................................................................................................... 39°45.5′ N. 73°59.5′ W.36. A point east of Atlantic City Light ...................................................................................................................... 39°21.9′ N. 74°22.7′ W.37. A point east of Hereford Inlet Light .................................................................................................................... 39°00.4′ N. 74°46′ W.38. A point east of Cape Henlopen Light ................................................................................................................ 38°47′ N. 75°04′ W.39. A point east of Fenwick Island Light .................................................................................................................. 38°27.1′ N. 75°02′ W.40. A point NE of Assateague Island (VA) .............................................................................................................. 38°00′ N. 75°13′ W.41. Wachapreague Inlet Lighted Whistle Buoy ‘‘A’’ ................................................................................................. 37°35.0′ N. 75°33.7′ W.42. A point NE of Cape Henry ................................................................................................................................. 36°55.6′ N. 75°58.5′ W.43. A point east of Currituck Beach Light ................................................................................................................ 36°22.6′ N. 75°48′ W.44. Oregon Inlet (NC) Whistle Buoy ........................................................................................................................ 35°48.5′ N. 75°30′ W.45. Wimble Shoals, east of Chicamacomico ........................................................................................................... 35°36′ N. 75°26′ W.46. A point SE of Cape Hatteras Light .................................................................................................................... 35°12.5′ N. 75°30′ W.47. Hatteras Inlet Entrance Buoy ‘‘HI’’ ..................................................................................................................... 35°10′ N. 75°46′ W.48. Ocracoke Inlet Whistle Buoy ‘‘OC’’ .................................................................................................................... 35°01.5′ N. 76°00.5′ W.49. A point east of Cape Lookout Light ................................................................................................................... 34°36.5′ N. 76°30′ W.50. Southern terminus point ..................................................................................................................................... 34°35′ N. 76°41′ W.


* * * * *

Figures 6 and 7 to Part 651 [Amended]

8. Figures 6 and 7 to part 651 areadded and the caption is added toFigure 4 to part 651 to read ‘‘Figure 4to part 651—Sink Gillnet ClosureAreas’’.BILLING CODE 3510–22–W


[FR Doc. 95–16595 Filed 7–7–95; 8:45 am]BILLING CODE 3510–22–C

This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. Thepurpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

35522

Vol. 60, No. 131


DEPARTMENT OF ENERGY

Federal Energy RegulatoryCommission

18 CFR Part 284

[Docket No. RM93–4–008]

Standards For Electronic BulletinBoards Required Under Part 284 OfThe Commission’s Regulations

July 3, 1995.AGENCY: Federal Energy RegulatoryCommission, DOE.ACTION: Notice of filing and opportunityto file comments.

SUMMARY: The Federal EnergyRegulatory Commission (Commission)has received a filing from the ElectronicBulletin Board (EBB) containing aconsensus proposal for modifying thecapacity release data sets. TheCommission is affording interestedpersons an opportunity to file commentson this filing.DATES: Comments due by July 12, 1995.ADDRESSES: Comments should be filedat: Federal Energy RegulatoryCommission, 825 North Capitol Street,NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Michael Goldenberg, Office of theGeneral Counsel, Federal EnergyRegulatory Commission, 825 NorthCapitol Street, NE., Washington, DC20426. (202) 208–2294

Marvin Rosenberg, Office of EconomicPolicy, Federal Energy RegulatoryCommission, 825 North CapitolStreet, NE., Washington, DC 20426.(202) 208–1283

Brooks Carter, Office of PipelineRegulation, Federal Energy RegulatoryCommission, 825 North CapitolStreet, NE., Washington, DC 20426.(202) 501–8145

SUPPLEMENTARY INFORMATION: Inaddition to publishing the full text ofthis document in the Federal Register,the Commission also provides allinterested persons an opportunity to

inspect or copy the contents of thisdocument during normal business hoursin Room 3104, 941 North Capitol StreetNE., Washington, DC 20426.

The Commission Issuance PostingSystem (CIPS), an electronic bulletinboard service, provides access to thetexts of formal documents issued by theCommission. CIPS is available at nocharge to the user and may be accessedusing a personal computer with amodem by dialing (202) 208–1397. Toaccess CIPS, set your communicationssoftware to use 19200, 14400, 12000,9600, 7200, 4800, 2400, 1200, or 300bps, full duplex, no parity, 8 data bits,and 1 stop bit. The full text of thisdocument will be available on CIPS for60 days from the date of issuance inASCII and WordPerfect 5.1 format. After60 days the document will be archived,but still accessible. The complete texton diskette in WordPerfect format mayalso be purchased from theCommission’s copy contractor, La DornSystems Corporation, also located inRoom 3104, 941 North Capitol Street,NE., Washington DC 20426.

Notice of Filing and Opportunity to FileComments

July 3, 1995.

Take notice that on June 29, 1995, theElectronic Bulletin Board (EBB)Working Group filed a consensusproposal for modifying the capacityrelease data sets. Among themodifications are the inclusion of a newdataset for replacement capacity aswells as changes to or the addition ofthe following fields: rate form/typecode; discount indicator; minimumacceptable volumetric commitmentpercentage, minimum volumetriccommitment percentage, awardminimum volumetric commitmentpercentage; gas transaction point zone;effective time/end time; interruptibleindicator; upload of request fordownload data end date. The filing alsocontains proposed revisions to the EDIimplementation guide relating to thischange. The Working Group furtherrequests that the changes becomeeffective 90 days after the Commissionorder to provide an appropriate amountof implementation time.

Any person desiring to submitcomments on this filing should file suchcomments with the Federal EnergyRegulatory Commission, 825 North

Capitol Street, NE., Washington, DC20426 on or before July 12, 1995.Linwood A. Watson, Jr.,Acting Secretary.[FR Doc. 95–16785 Filed 7–7–95; 8:45 am]BILLING CODE 6717–01–M

LIBRARY OF CONGRESS

Copyright Office


[Docket No. 95–1A]

Restoration of Certain Berne and WTOWorks

AGENCY: Copyright Office, Library ofCongress.ACTION: Notice of proposed rulemaking.

SUMMARY: The Copyright Office isproposing regulations for the filing ofNotices of Intent to Enforce (NIEs)copyright and the registering ofcopyright claims as required by theUruguay Round Agreements Act(URAA); the Act automatically restorescopyright for certain foreign workseffective January 1, 1996. Althoughrestoration is automatic, the copyrightowner must file a Notice of Intent toEnforce the restored copyright in orderto enforce rights against reliance parties.The Act requires the Copyright Office toestablish regulations for filing NIEs andfor registration of those restored works.The Office is seeking public commenton its proposed regulations.DATES: Comments should be in writingand received on or before August 23,1995.ADDRESSES: If sent by mail, fifteencopies of written comments should beaddressed to: Marilyn J. Kretsinger,Acting General Counsel, Copyright GC/I&R, PO Box 70400, Southwest Station,Washington, DC 20540. Telephone:(202) 707–8380. Telefax: (202) 707–8366. If hand delivered, fifteen copiesshould be brought to: Office of theGeneral Counsel, Copyright Office,James Madison Memorial Building,Room LM–407, First and IndependenceAvenue, SE., Washington, DC 20540. Ifsent electronically via the internet sendto: ([email protected]).Comments submitted electronicallymust include the following information:your name, the organization orinstitution you represent, if any; your

35523Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Proposed Rules

1 Convention concerning the creation of anInternational Union for the Protection of Literaryand Artistic Works (Sept. 9, 1886, revised in 1908,1928, 1948, 1967, 1971), hereinafter cited as theBerne Convention.

2 The question of whether a work from a countrythat is a member of WTO but not Berne must beregistered was not specifically addressed in thelegislation; therefore, it would seem that works thatdo not come under the definition of a ‘‘BerneConvention work’’ found in 17 U.S.C. 101 wouldhave to be registered before the owner can initiatea suit.

mailing address; telephone number andFAX number, if any.FOR FURTHER INFORMATION CONTACT:Marilyn J. Kretsinger, Acting GeneralCounsel, Copyright GC/I&R, PO Box70400, Southwest Station, Washington,DC 20024. Telephone: (202) 707–8380.Telefax: (202) 707–8366.

I. Background

On December 8, 1994, PresidentClinton signed the ‘‘Uruguay RoundAgreements Act’’ (URAA), Public Law103–465, 108 Stat. 4809. The URAAcontains several significant copyrightamendments. It amends the softwarerental provision found in 17 U.S.C.109(b) by eliminating the expiration orsunset date, amends Titles 17 and 18 tocreate civil and criminal remedies for‘‘bootlegging’’ sound recordings of livemusical performances and musicvideos, and adds a new 17 U.S.C. 104Awhich restores copyright in certainforeign works. The URAA also gives theCopyright Office several responsibilitiesrelated to restoration of those works.

A. Restoration of Copyright of EligibleWorks

Under the URAA, restoration ofcopyright in works from countrieswhich are currently eligible occursautomatically on January 1, 1996. Aneligible country is a nation, other thanthe United States, that is a member ofthe Berne Convention,1 or a member ofthe World Trade Organization, or is thesubject of a presidential proclamation.

Works from any source countryeligible under the URAA may be subjectto automatic copyright restoration.However, to be so restored, a work mustmeet certain other requirements:

1. It is not in the public domain in itssource country through expiration of theterm of protection;

2. It is in the public domain in theUnited States due to noncompliancewith formalities imposed at any time byUnited States copyright law, lack ofsubject matter protection in the case ofsound recordings fixed before February15, 1972, or lack of national eligibility;

3. It has at least one author orrightholder who was, at the time thework was created, a national ordomiciliary of an eligible country;

4. If published, it was first publishedin an eligible country and was notpublished in the United States duringthe 30-day period following publicationin such eligible country.

Notwithstanding the fact that thework meets the above requirements, anywork ever owned or administered by theAlien Property Custodian and in whichthe restored copyright would be ownedby a government, is not a restored work.

B. Effective Date of RestorationOn February 9, 1995, the Copyright

Office published a notice in the FederalRegister summing up the provisions inthe URAA with regard to the restorationof copyright protection for certainforeign works and announcing a publicmeeting on March 20, 1995, to discussthose provisions related to theresponsibilities Congress gave theCopyright Office. 60 FR 7793 (Feb. 9,1995). The effective date of copyrightrestoration is crucial to fulfilling thoseresponsibilities in a timely manner.Eligible copyrights are restoredautomatically on the date the Agreementon Trade Related Aspects of IntellectualProperty (TRIPs) enters into force withrespect to the United States (URAA,section 514(a)). As discussed in theFebruary notice, the Copyright Officeconcluded that the effective date ofcopyright restoration is January 1, 1996.60 FR 7793 (1995). Since then PresidentClinton has issued a proclamationconfirming that the date on which theobligations of the TRIPs Agreement willtake effect for the United States isJanuary 1, 1996. Proclamation No. 6780,60 FR 15845 (Mar. 27, 1995).

II. The Copyright Office’sResponsibilities

Although copyright restoration isautomatic for eligible works, the newsection 104A, which will go into effecton January 1, 1996, charges the Officewith establishing regulations for twofilings which may be made with theCopyright Office and may assist theowner of the restored work in securingcertain remedies. The URAA requiresthe Copyright Office to publishregulations governing the filing ofNotices of Intent to Enforce (NIEs) arestored copyright and the registering ofcopyright claims in restored works nolater than ninety days before the datethe TRIPs Agreement takes effect withrespect to the United States. This datehas been determined to be January 1,1996; therefore, the Copyright Officewill need to publish final regulationsestablishing the procedures for filingNIEs and applications for registration byno later than October 1, 1995.

The Act also requires the Office topublish a list in the Federal Registeridentifying restored works and theirownership where NIEs have been filedwith the Office. The Office must publishits first list by no later than May 1, 1996,

and must publish lists at regular four-month intervals for a period of twoyears thereafter. The Office must alsomaintain for inspection and copying alist containing all NIEs.

A. Notices of Intent To EnforceIn order to enforce certain rights

against reliance parties, the URAAdirects copyright owners to notify theseparties that they are enforcing the rightsin a restored work. A reliance party isa business or individual who, relying onthe public domain status of a work, wasalready using the work prior to theenactment of the URAA. The URAAauthorizes the owner of a right in arestored work either to serve an actualNIE directly on a reliance party orprovide constructive notice through thefiling of such notices with the CopyrightOffice. Notices may be served on areliance party at any time after the dateof restoration of the restored copyright,i.e., January 1, 1996. As noted above, theCopyright Office is to publish a list inthe Federal Register identifying NIEsfiled with it. Reliance parties have atwelve-month grace period after theyhave been notified either by publicationin the Federal Register or by actualnotice to sell off previouslymanufactured stock, to publicly performor publicly display the work, or toauthorize others to conduct theseactivities. All reliance parties, exceptthose who created derivative works,must cease using the work after thetwelve-month grace period unless theyreach a licensing agreement with thecopyright owner for continued use ofthe restored work. The effective date ofnotification is thus very important bothto owners of the restored works andreliance parties.

B. Registration of Copyright Claims inRestored Works

The second filing that the owner of arestored work may want to make withthe Copyright Office is an applicationfor registration of a copyright claim. TheURAA directs the Office to provideprocedures for such registration, but itdoes not require owners of the restoredworks to register. An author of a workwhich is not considered a Berne workmust obtain or seek registration for awork before he or she can bring acopyright infringement action in federalcourt.2 While the owner of rights in a

35524 Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Proposed Rules

3 A summary of the meeting can be found in thePublic Information Office of the Copyright Office,Room LM–401, James Madison Memorial Building,Washington, D.C.

4 This Convention shall apply to all works which,at the moment of its coming into force, have not yetfallen into the public domain in the country oforigin through the expiry of the term of protection.Berne Convention art. 18(1)(Paris text).

5 See Memorandum from Chris Schroeder,Counsellor to the Assistant Attorney General, Officeof Legal Counsel, United States Dept. of Justice toIra S. Shapiro, General Counsel, USTR, on WhetherCertain Copyright Provisions in the DraftLegislation to Implement the Uruguay Round ofMultilateral Trade Negotiations Would Constitute aTaking Under the Fifth Amendment (July 29, 1994).

6 The application of this principle shall be subjectto any provisions contained in special conventionsto that effect existing or to be concluded betweencountries of the Union. In the absence of suchprovisions, the respective countries shalldetermine, each in so far as it is concerned, theconditions of application of this principle. BerneConvention art. 18(3) (Paris text).

Berne work does not have to registerbefore initiating a copyrightinfringement suit, the holder of acopyright certificate of registration maysecure some procedural advantages inlitigating the suit. Under 17 U.S.C. 412the remedies of statutory damages andattorney’s fees are typically contingentupon the securing of a copyrightregistration before the date of copyrightinfringement. Under section 410(c), acertificate of registration obtainedwithin five years from the date ofpublication is accorded prima facieevidence of the validity of the copyrightand the facts stated in the certificate.After five years, the weight accorded thecertificate is within the discretion of thecourt.

III. The Comments

A. Comments SubmittedRecognizing that the URAA makes

significant changes in established U.S.copyright practice, the Copyright Officesought public comment even before itpublished a Notice of ProposedRulemaking (NPRM) concerning theimplementation of the URAA. To thatend, the Office published a noticeinviting interested parties to submitwritten comments and/or to attend apublic meeting held at the CopyrightOffice on March 20, 1995, to discussissues related to NIEs and registration ofrestored works. 60 FR 7793 (1995). Italso sent this notice to over ninetyartists rights organizations and industrygroups, as well as 182 foreigngovernment agencies with copyrightauthority, to give them the opportunityto respond. Approximately fortyindividuals from outside the CopyrightOffice attended the meeting, includingrepresentatives from authors and artistsrights organizations, museums, thepublishing industry, the film industry,and the computer software industry.3The Copyright Office accepted writtencomments filed after the meeting fromthose unable to attend the meeting orthose able to attend, who wanted tocomment further. A total of fifteencomments were received.

The Office received comments fromthe following parties: Dr. Theodore H.Feder, for Artists Rights Society;Andrew Yeates, for Channel FourTelevision; Confederation Internationaledes Societes d’Auteurs et Compositeurs(CISAC); Fernando Zapata Lopez, forDireccion Nacional del Derecho deAutor of Colombia; Melinda T. Koyanis,for Harvard University Press; Nobutake

Ide, for Japanese Society for Rights ofAuthors, Composers and Publishers(JASRAC); Edwin Komen, of Cleary &Komen; Maria Pallante, for the NationalWriters Union; Blanche Gwilliams, forthe Performing Rights Society of theUnited Kingdom; Neil Turkewitz, forthe Recording Industry Association ofAmerica (RIAA); Eduardo Bautista, forSociedad General de Autores de Espana(SGAE); Jean-Marc Gutton, for Societedes auteurs dans les arts graphiques etplastiques (ADAGP); Janine Lorente, forSociete des Auteurs et CompositeursDramatiques (SACED); Jay Gast, Jerry L.Robb, and Nancy H. McAleer, forThomson & Thomson; and RichardWincor, of Coudert Brothers. Thoseattending the meeting but not filingwritten comments include: Dr. CaroleGanz Brown, for the National ScienceFoundation; Linda Chase, MelissaLevine, and Billie Munro, for theSmithsonian; Hayden Gregory, for theAmerican Bar Association; HerbertHirsch, of Fried, Frank, Harris, Shriver& Jacobson; Carol Risher and LoisWasoff, for the Association of AmericanPublishers; Bernard Korman and GloriaMessinger, of Dornbush MenschMandelstam & Schaeffer; Steve Metalitz,for the International IntellectualProperty Alliance; Felipe Mier and JuanJose Ortega, for the Association ofProducers and Distributors of MexicanFilms; Charles Ossola, for the AmericanSociety of Media Photographers; BillPatry, former Assistant Counsel,Subcommittee on Intellectual Propertyand Judicial Administration; ShiraPerlmutter, for the International Literaryand Artistic Association; and RalphWeinsten, for Copyright Connection.

B. Formality IssueIt was at times unclear whether the

commentators were speaking withregard to NIEs or registration ofcopyright claims. However, it is clearthat many of the commentators view theNIEs and registration for restored worksas burdensome formalities and ask fortheir abolition or simplification. Forexample, both CISAC and Mr. Gutton ofADAGP asserted that requirements forNIEs and registration for restored worksare new formalities in violation of theBerne Convention. CISAC asked that noformalities be required in order toassure protection in the United Statesfor eligible foreign works of visual artand photography. Mr. Ide representingJASRAC asked that after a twelve-monthgrace period, no procedure be requiredto enforce rights against any party,including reliance parties.

The Copyright Office cannot alter thelegislative requirements. The restorationof copyright in certain foreign works

considered in the public domain in theUnited States creates a conflict betweenreliance parties and copyright owners,with legitimate interests on both sides.Reliance parties have invested capitaland labor in the lawful exploitation ofpublic domain property; the suddenrestoration of copyright divests them ofthese investments. Without someprovision addressing this potential loss,successful challenges based on the‘‘taking’’ clause of the Fifth Amendmentof the U.S. Constitution would appearpossible.

On the other hand, it was importantthat the United States restore copyrightprotection in certain foreign works. TheUnited States arguably failed to fullyconform its law to the Berne Conventionin 1989 when it declined to interpretArticle 18(1) 4 on restoration as beingmandatory. Moreover, foreign copyrightclaimants have lost copyright protectiondue to inadvertent noncompliance withunique U.S. formalities.

The filing of NIEs was required in thedraft URAA legislation. When the U.S.Justice Department reviewed the draftbill, it concluded that under existingprecedents interpreting the FifthAmendment, the notice of intent toenforce the restored copyright avoidedan unconstitutional ‘‘taking.’’ 5 Theseprocedures are part of the enacted bill.Such a filing is not inconsistent with theBerne Convention because Article18(3) 6 of the Berne Conventionspecifically permits member nations todetermine ‘‘conditions’’ for applying theprinciples of restoration.

Neither procedures permittingcopyright registration of restored worksnor requiring the filing of NIEs areformalities in violation of the BerneConvention. Registration is entirelyvoluntary for Berne works sincecopyright registration of restored worksis not a prerequisite for the filing of acopyright infringement action.Copyright restoration occursautomatically; the URAA merely creates


7 Ownership of a restored work vests initially inthe author or initial rightholder (if the work is asound recording) of the work as determined by thelaw of the source country of the work. Amendedsec. 104A(b).

a narrow set of conditions that requiresnotice to reliance parties. Theseconditions do not violate the BerneConvention. Without such notice theeffect of restoration on a reliance partycould be unconstitutional. Moreover,the information sought on the NIEs iscalculated to assist in the voluntarylicensing of the restored work. Thedecision of Congress to enact theseprovisions is, therefore, supported bythe legitimate interests of both relianceparties and copyright owners, byconstitutional considerations, and byArticle 18(3) of the Berne Convention.

C. Issues Related to Notices of Intent toEnforce

The URAA specifies the minimumcontent of the NIEs. It requires that thenotice be signed by the owner or theowner’s agent.7 In addition to thesignature, the URAA states that the NIEmust contain the title, including anEnglish-language translation, any otheralternative titles known to the owner bywhich the restored work may beidentified, the name of the owner, andan address and telephone number atwhich the owner can be located. TheURAA specifies that the CopyrightOffice can ask for additionalinformation, but the failure to providesuch information will not invalidate theNIE. At the March 20 meeting, theOffice sought information fromrepresentatives of authors and usergroups on what optional data would behelpful in creating a useful publicrecord for both groups.

1. Useful Public RecordMany of the commentators expressed

concern that unless filers of NIEsprovide information beyond theminimum required by the statute, theNIE will not provide adequate notice toreliance parties. A number ofcommentators, including Ms.Perlmutter, Ms. Wasoff, and Thomson &Thomson asked that a public record becreated for NIEs that providesinformation sufficient to identify a workand differentiate it from those with thesame title. The commentators noted thatthe type of work and the name(s) of theauthor(s) would provide particularlyvaluable and essential information. Ms.Wasoff, Ms. Risher, Mr. Mier, Mr.Ortega, Mr. Chaubeau, and Thomson &Thomson also indicated that otherinformation would help indifferentiating between works, such asdate and nation of first publication,

names of producers, directors, andleading actors (in the case of motionpictures), and birth and death dates forauthors. Though date and location ofpublication could be helpful asidentifying information, Dr. Feder andMs. Koyanis pointed out that the date ofpublication is not particularly useful inestablishing the expiration of thecopyright term since most countries usethe date of the author’s death toestablish the term. Ms. Koyanis andThomson & Thomson stated that the NIEshould specify whether the ‘‘owner’’named is the owner of the restoredcopyright or the owner of an exclusiveright. Several parties, including Dr.Feder, Ms. Messinger, and Thomson &Thomson suggested that the person whosigns the certification statement shouldindicate whether he or she is acting asan agent. Ms. Koyanis suggested that nomore proof of agency be requiredbeyond that currently required forroutine registrations.

2. Group FilingDr. Feder, Mrs. Gwilliams, and Mr.

Bautista asked the Copyright Office topermit the filing of a single NIE for thebody of an author’s work. Mr. Patrypointed out that the law requires a NIEto be filed only for the ‘‘restored works’’for which the copyright is going to beenforced against reliance parties, not allworks, and that the titles must all belisted in the Federal Register. Mr. Patrystated that this was done as part of aneffort to balance the interests of ownersof restored works and reliance parties,so that the reliance parties could havea date certain when they would nothave liability through constructivenotice.

3. AcknowledgementAnother issue addressed at the public

meeting was whether the publication inthe Federal Register would be sufficientnotice to the filer of a NIE that the NIEhad been received and/or recorded bythe Office. A number of parties,including Mr. Ossola, Ms. Munro, Dr.Feder, Mr. Ortega, and Thomson &Thomson asserted thatacknowledgement of receipt andrecordation of a NIE is an essentialservice that the Copyright Office shouldprovide since foreign remitters will beanxious to know the status of the NIE(s)and would otherwise flood the Officewith calls.

4. FeesThe Act allows the Office to charge a

reasonable fee for recording a NIE, andthe Office raised the question of whatthis fee should be. Mr. Komen statedthat fees for NIEs should be consistent

with current recordation fees. Thomson& Thomson suggested that since mostworks will have two titles, the basic fee($20) could cover the first two titles,with an additional $10 for each group often or fewer titles. Mr. Turkewitz urgedthe Copyright Office to keep fees for theNIE to a minimum.

D. Issues Related to Registration of aRestored Work

Another subject addressed at thepublic meeting was what theregistration procedures should be forrestored works. Particularly, the Officeasked whether there should be a newregistration form, what simultaneousfiling under the URAA meant, whethergroup registration should be available,who the appropriate author is forregistration purposes, and what theappropriate fee and deposit should be.

1. A New Registration Form

Mr. Yeates and Thomson & Thomsonsupported the creation of a new form.Mr. Komen recommended againstadoption of a separate URAA copyrightregistration form.

2. Simultaneous Filing

Thomson & Thomson stated thatsimultaneous filing of a NIE and aregistration should be allowed, as iscurrently the case with an assignment ora renewal application and a registration.Mr. Turkewitz urged that simultaneousregistration of claims of copyright beboth automatic and at no additionalcost.

3. Group Registration

Many of the commentators urged theCopyright Office to allow groupregistration of restored works. Mr.Gutton and Dr. Feder asked theCopyright Office to accept oneregistration for the entire body of anartist’s work. Ms. Koyanis noted that itis unlikely that the entire body of anartist’s restored work will have beendeveloped and distributed in such away that the same facts would apply,but she asserted that a single registrationcould suffice if the facts do agree for allworks, and if each work is given a titleor description to aid identification.Thomson & Thomson indicated thatevery work in a group registrationshould have the same author(s) andowner(s).

4. Author

Dr. Feder, Mr. Yeates, Mr. Zapata, Mr.Gutton and Thomson and Thomson allstated that the author should bedetermined by the law of the sourcecountry.


8 COPICS is the Copyright Office’s automateddatabase of registrations and recorded copyrighttransfers and other documents. These records maybe accessed by the public on terminals in the

Copyright Office at the Library of Congress and arealso available via the Internet.

5. Fees

Ms. Pallante and Thomson andThomson suggested that fees be keptconsistent with current Copyright Officepractice.

6. Claimant and Transfer Statement

Thomson & Thomson noted that theclaimant should be the owner of all therestored rights in the United States onthe date the application is filed. Mr.Zapata, Mr. Turkewitz, and Thomson &Thomson stated that a claimant shouldbe required to indicate if there has beena transfer of rights and that a transferstatement should be attached to theapplication. Dr. Feder and Mr.Turkewitz asked that a person claimingownership by virtue of transfer berequired to set forth all documents(omitting confidential information) bywhich the transfer occurred. At aminimum, Mr. Turkewitz asked that atransfer statement identify the name ofthe person from whom the rights wereacquired as well as the date and locationof the transfer. Mr. Yeates stated that thesource country should be required inorder to demonstrate how the authorclaiming the benefit of restoredcopyright has acquired title. Ms.Koyanis stated that as with currentregistrations, the owner should not berequired to submit documents showingthe chain of title to the Office.

7. Deposit

Thomson & Thomson suggested that,as copyright notice is not an issue,deposit requirements be greatlysimplified. With regard to motionpictures, they asked that the depositcopy represent the foreign publishedversion, not the U.S. dubbed version.

E. Public Access to NIE and RegistrationInformation

The final topic of discussion at theMarch 20th meeting was what kind ofrecords the Office should maintain forthese new filings.

1. Online Record

Mr. Yeates indicated that for overseasdistributors any system whereby NIE orregistration information can be easilyaccessed online via the Internet wouldbe helpful. Ms. Koyanis also supportedthe availability of the records on theInternet. Many of the parties, includingMs. Koyanis, Mr. Komen, and Thomson& Thomson stated that it is critical toinclude the effective date of the NIE inthe COPICS 8 record. Ms. Koyanis, Mr.

Komen, Ms. Pallante, and Thomson &Thomson argued that the online recordwould be of little use unless the author’sname is included in COPICS, and unlessthat name is fully indexed andsearchable. Ms. Pallante recommendedthat COPICS be adjusted to allow forsearches within designated timeperiods. Mr. Yeates recommended asystem that would highlight URAAregistrations for those conductingsearches.

2. Frequency of Federal RegisterPublication

The Act requires the Office to publisha list identifying the titles andownership of restored works for whichNIEs have been filed at four-monthintervals and then again annually. TheOffice proposed publishing the list atshorter intervals. Many of the partiesfelt that the list of NIEs should bepublished on a four-month schedule asopposed to more often. They also feltthat publication in the Federal Registerwas not the best record and urged theOffice to provide a more detailed record,available on COPICS. The parties statedthat the annual publication in theFederal Register would be costly andnot necessarily helpful.

IV. Procedures for Notices of Intent toEnforce

A Copyright Office task force has beenmeeting for several months to discussissues related to establishing regulationsfor both URAA filings. The Office alsocarefully considered comments of theinterested parties on these issues. Mostof the commentators supported adetailed NIE rather than the minimalinformation required by the statute.Based on those comments, the Office isencouraging the filer of a NIE to givemore information than is required underthe URAA. As provided in the statute,this additional information is optionaland will not affect the validity of thenotice; however, the Copyright Officeand the interested parties believe thisadditional information, such as theidentity of the author, is necessary inorder to identify the specific workwhere enforcement of copyright issought. The additional information willalso facilitate the licensing of uses ofrestored works. We, therefore, urgethose parties who are filing NIEs toprovide this additional information, if atall possible.

A. Proposed Format for NIEsThe Copyright Office will not publish

NIE forms; however a proposed format

for the NIE is included in the Appendixbelow. Moreover, this format will beavailable over the Internet, and could bedownloaded for use as a form. Theproposed format requests informationrequired by the statute and informationwhich is optional but deemed necessaryand useful. The Copyright Officeadopted a similar approach of providinga format but not a form for the filingsunder NAFTA, and filers followed thesuggested format with few problems.

B. The Public RecordThe URAA requires publication of the

titles and owners of restored works inthe Federal Register, and the CopyrightOffice will do this. Since publication inthe Federal Register is costly and theparties indicated that such informationwould not be as accessible asinformation made available via theInternet, the Office will limit theinformation published in the FederalRegister to titles and the name of thefirst owner listed on the NIE. However,the Copyright Office plans to makemuch of the information contained inthe NIE available on COPICS, which canbe accessed over the Internet. Onlineaccess will be the primary means forproviding this information to the public.The database will be searchable by title,copyright owner, and author.

C. Recordation FeeThe Office is proposing a fee of $30

for recording a NIE covering one work;and for recording an NIE coveringmultiple works $30, plus $1 for eachadditional work beyond the first work.The proposed regulation additionallyincludes special provisions relating toforeign payments which must befollowed in order to permit processingof the fee.

For all URAA filings, both recordationof an NIE and registration of a restoredwork, the Copyright Office will acceptVisa, Master Card, and AmericanExpress credit cards. The CopyrightOffice is accepting these credit cards forURAA filings in order to make paymentin U.S. dollars easier. Payment by creditcard will be available only for URAAfilings. Acceptance of credit cards forURAA filings will serve as a test,however, under which the Office candetermine the feasibility of acceptingcredit cards in other areas at a later date.

D. CertificationThe Office will require the filer to

sign a short certification statement at theend of the NIE indicating that theinformation given is correct to the bestof his or her knowledge. The statutestates that any materially false statementknowingly made with respect to any


restored copyright identified in anyNotice of Intent shall make void allclaims and assertions made with respectto such restored copyright. 104A(e)(3) ofthe URAA.

E. Mailing Address

It is expected that the volume of NIEsfiled at the Copyright Office may behigh and turnaround time is critical;therefore, it is important that URAAmail not come in with regular mailaddressed to the Copyright Office. TheCopyright Office is planning to obtain aspecial post office box. Notices of Intentto Enforce should be mailed to:(Address to be given in the final rule) ordelivered personally to: (Address to begiven in the final rule).

V. Procedures for Registering CopyrightClaims in Restored Works

The URAA raises a number of uniqueconsiderations regarding registeringcopyright claims in restored works.First, a number of technicalrequirements, many of which arecontained in the definition of ‘‘restoredwork,’’ govern whether a foreigncopyright is subject to automaticrestoration under the URAA. In manycases applicants seeking restoration willbe foreign claimants who are unfamiliarwith the registration procedures of theU.S. Copyright Office. In addition,communication over technical issuesmay be difficult. Finally, virtually all ofthe restored copyrights will be olderworks; and in some cases, this will raiseproblems with submitting a copy orphonorecord of the work.

The Copyright Office weighed all ofthese considerations before developingthe proposed procedure for registeringcopyright claims in restored works. TheCopyright Office believes the proposedprocedure is as simple as it can be,while still maintaining the basicintegrity of the public record andadhering to the provisions of thecopyright law and the URAA.

A. Registration Forms

Because the URAA creates uniquerequirements for eligibility, theCopyright Office believes it is necessaryto create two new forms which arespecifically designed to secure only thenecessary information. One of the newforms will cover registration ofindividual restored works and workspublished under a single series title, andthe second form will cover registrationof groups of related restored worksunder the conditions set forth in theregulations.

B. Foreign Law Questions

One of the more difficult issues facingthe Copyright Office is to what extentforeign law issues should be raised inthe registration process. Section 104A(b)of the Act provides: ‘‘A restored workvests initially in the author or initialrightholder of the work as determinedby the law of the source country of thework.’’ The Copyright Office does notplan to question an applicant’sdetermination of foreign law issues.Interested parties may wish to commenton this matter.

C. Deposit Required

In recognition of the difficulty someapplicants might have in submitting adeposit of an older work ‘‘as firstpublished,’’ the Copyright Office hasproposed special deposit provisionswhich permit a deposit of other than thefirst published edition of the work, ifnecessary. However, applicants shouldkeep in mind that the deposit serves asa crucial part of the public record.

D. Registration Fee

The fee for registration will be thestandard $20, since the Copyright Officebelieves the work in administering theproposed registration procedure forrestored works will be roughlycomparable to general registrationprocedures. In addition, special groupregistration options are proposed whichwill permit the registration of:

(1) A group of works published undera single series title. This option wouldbe filed on the basic GATT registrationform and would cost the basic fee of $20for up to a year’s worth of episodes,installments, or issues published underthe same single series title; and

(2) A group of up to 10 relatedindividual works published within thesame calendar year. This option wouldbe filed on the GATT/GROUPregistration form and would cost a feeof $10 per individual work.Finally, special rules are proposedregarding payment, includingpermitting the use of credit cards for feepayment.

E. Mailing Address

For the reasons given above indiscussion of NIE filings, the Office hasdetermined that a separate mailingaddress is necessary for all URAAfilings. This address will be given in thefinal rule.

VI. NAFTA

Exactly a year before the URAA wassigned into law, Congress enacted theNorth American Free Trade AgreementImplementation Act (NAFTA) of

December 8, 1993, adding a new section104A to the Copyright Code thatallowed copyright restoration in certainMexican and Canadian works. Seegenerally, Federal Register noticesleading to the implementation ofNAFTA, 59 FR 1408 (Jan. 10, 1994); 59FR 12162 (Mar. 16, 1994); and 59 FR58787 (Nov. 15, 1994). AlthoughCongress modeled the URAA provisionson NAFTA, there are significantdifferences. For example, under theURAA, copyright restoration isautomatic; under NAFTA it was not.Moreover, the URAA requires anEnglish translation of the title as part ofthe NIE. On January 1, 1996, section104A, as modified by the URAA, willreplace the NAFTA version of section104A.

In enacting these two laws, Congressintended the restoration provisions tooperate separately from one another.Therefore, works restored under NAFTAare not additionally restored under theURAA. Unfortunately, the statutorylanguage in the URAA creates someambiguities. The recent presidentialproclamation clarifies some of thesequestions. 60 FR 15845 (Mar. 27, 1995).

The proposed regulations clarify otherissues relating to the operation ofNAFTA. A technical amendment isproposed for the first sentence of theregulation governing filings underNAFTA whereby reference to section104A is deleted in favor of reference tothe public law. This change is madenecessary by the deletion of the NAFTAversion of section 104A on January 1,1996. In addition, proposed §§ 201.32and 202.12 of the Copyright Officeregulations contain provisions clarifyingthat works already restored underNAFTA do not additionally fall withinthe provisions of the URAA.

Despite the differences in NAFTA andURAA filings, the task force hasdetermined that the group registrationprocedures available for URAA restoredworks should also apply to thoserestored works that come in underNAFTA.

Appendix—Notice of Intent to Enforce aCopyright Restored Under the UruguayRound Agreements Act (URAA)1. Title: lllllllllllllllll(If this work does not have a title, state ‘‘Notitle.’’)

orBrief description of work (for untitled worksonly):2. English translation of title (if applicable):lllllllllllllllllllll

3. Alternative title(s) (if any):lllllllllllllllllllll

4. Type of work: lllllllllllll(e.g. painting, sculpture, music, motionpicture, sound recording, book)


5. Name of author(s): lllllllllll6. Source country: llllllllllll7. Approximate year of publication: llll8. Additional identifying information:lllllllllllllllllllll

(e.g. for movies: director, leading actors; forphotographs or books: subject matter/content)9. Name of copyright owner:lllllllllllllllllllll

(Statements may be filed in the name of theowner of the restored copyright or the ownerof an exclusive right therein.)10. If you are not the owner of all rights,specify the right for which the NIE is beingfiled: lllllllllllllllllllllllllllllllllllllll

(e.g. translation, screenplay, etc.)11. Address at which copyright owner maybe contacted: lllllllllllllllllllllllllllllllllll

(Give complete address, including an‘‘attention’’ line, or ‘‘in care of’’ name, if any.Give the country if other than the UnitedStates.)12. Telephone number of owner: lllll13. Telefax number of owner: lllllll14. Certification and Signature:

I hereby certify that, for each of the work(s)listed above, I am the copyright owner, or theowner of an exclusive right, or the owner’sauthorized agent and that the informationgiven herein is true and correct to the bestof my knowledge.Signature: llllllllllllllllName (printed or typed): lllllllllAs agent for (if applicable): llllllllDate: llllllllllllllllll

Note: Notices of Intent to Enforce must bein English, except for the original title, andeither typed or printed by hand legibly indark, preferably black, ink. They should beon 81⁄2′′ by 11′′ white paper of good quality,with at least a 1-inch (or 3cm) margin.

List of Subjects

37 CFR Part 201

Copyright, Restoration of Copyright.

37 CFR Part 202

Registration of claims to copyright,Restored works.

Proposed Regulations

In consideration of the foregoing, theCopyright Office proposes to amend 37CFR parts 201 and 202 in the manner setforth below:

PART 201—GENERAL PROVISIONS


Authority: 17 U.S.C. 702.

§ 201.31 [Amended]

2. Section 201.31 is amended byrevising the first sentence of paragraph(a) to read as follows:

(a) General. This section prescribesthe procedures for submission ofStatements of Intent pertaining to therestoration of copyright protection inthe United States for certain motionpictures and works embodied therein asrequired by the North American FreeTrade Agreement Implementation Act ofDecember 8, 1993, Public Law 103–182.* * *

3. A new § 201.32 is added to read asfollows:

§ 201.32 Procedures for filing Notices ofIntent to Enforce a restored copyright underthe Uruguay Round Agreements Act.

(a) General. This section prescribesthe procedures for submission ofNotices of Intent to Enforce a restoredcopyright under the Uruguay RoundAgreements Act, as required in 17U.S.C. 104A(a). On or after May 1, 1996,and approximately every four monthsthereafter, the Copyright Office willpublish in the Federal Register a list ofworks for which Notices of Intent toEnforce have been filed. It will maintaina list of these works. The Office willalso make a more complete version ofthe information contained in the Noticeof Intent to Enforce available on itsautomated database, which can beaccessed over the Internet.

(b) Definitions.(1) Restored work means an original

work of authorship that—(i) Is protected under 17 U.S.C.

104A(a);(ii) Is not in the public domain in its

source country through expiration ofterm of protection;

(iii) Is in the public domain in theUnited States due to—

(A) Noncompliance with formalitiesimposed at any time by United Statescopyright law, including failure ofrenewal, lack of proper notice, or failureto comply with any manufacturingrequirements;

(B) Lack of subject matter protectionin the case of sound recordings fixedbefore February 15, 1972; or

(C) Lack of national eligibility; and(iv) Has at least one author or

rightholder who was, at the time thework was created, a national ordomiciliary of an eligible country, andif published, was first published in aneligible country and not published inthe United States during the 30-dayperiod following publication in sucheligible country.

(2) Source country of a restored workis—

(i) A nation other than the UnitedStates;

(ii) In the case of an unpublishedwork—

(A) The eligible country in which theauthor or rightholder is a national or

domiciliary, or, if a restored work hasmore than one author or rightholder, themajority of foreign authors orrightholders are nationals ordomiciliaries of eligible countries; or

(B) If the majority of authors orrightholders are not foreign, the nationother than the United States which hasthe most significant contacts with thework; and

(iii) In the case of a published work—(A) The eligible country in which the

work is first published, or(B) If the restored work is published

on the same day in two or more eligiblecountries, the eligible country whichhas the most significant contacts withthe work.

(3) NAFTA work means a workrestored to copyright on January 1, 1995,as a result of compliance withprocedures contained in the NorthAmerican Free Trade AgreementImplementation Act of December 8,1993, Public Law 103–182.

(c) Forms. The Copyright Office doesnot provide forms for Notices of Intentto Enforce filed with the CopyrightOffice. It does suggest that filers followthe format set out in the Appendix(found in the preamble) and give all ofthe information listed in paragraph (d)of this section. Notices of Intent toEnforce should be typed or printed byhand legibly in dark, preferably black,ink, on 81⁄2 by 11 inches white paper,with at least a 1 inch (or 3 cm) margin.

(d) Requirements for Notice of Intentto Enforce a copyright restored underthe Uruguay Round Agreements Act.

(1) Notices of Intent to Enforce shouldbe sent to the followingaddress:[Address to be given in the finalrule]

(2) The document should be clearlydesignated as ‘‘Notice of Intent toEnforce a Copyright Restored under theUruguay Round Agreements Act’’;

(3) Notices of Intent to Enforce mustinclude:

(i) Required information:(A) The title of the work, or if

untitled, a brief description of the work;(B) An English translation of the title

if title is in a foreign language;(C) Alternative titles if any;(D) Name of the copyright owner of

the restored work, or of an owner of anexclusive right therein;

(E) The address and telephonenumber where the owner of copyright orthe exclusive right therein can bereached;

(F) The following certification signedand dated by the owner of copyright, orthe exclusive right therein, orauthorized agent:

I hereby certify that for each of the work(s)listed above, I am the copyright owner, or the


owner of an exclusive right, or the owner’sauthorized agent and that the informationgiven herein is true and correct to the bestof my knowledge.Signature llllllllllllllllName (printed or typed) lllllllllAs agent for (if applicable) llllllllDate: llllllllllllllllll

(ii) Optional information:(A) Type of work (painting, sculpture,

music, motion picture, sound recording,book, etc.);

(B) Name of author(s);(C) Source country;(D) Approximate year of publication;(E) Additional identifying information

(director, leading actors, subject/content, etc.);

(F) Rights for which the Notice ofIntent to Enforce is being filed(translation, screenplay, etc.);

(G) Telefax number at which owner,exclusive rights holder, or agent thereofcan be reached.

(4) Notices of Intent to Enforce maycover multiple works provided that eachwork is identified by title, all the workshave the same author, all the works areowned by the identified copyrightowner or owner of an exclusive right,and the rights for which the notice isbeing filed are the same. In the case ofNotices of Intent to Enforce coveringmultiple works, the notice willseparately designate for each workcovered the title of the work, or ifuntitled, a brief description of the work;an English translation of the title if thetitle is in a foreign language; alternativetitles, if any; the type of work; thesource country; the approximate year ofpublication; and additional identifyinginformation.

(5) Notices of Intent to Enforce may besubmitted to the Copyright Office on orafter January 1, 1996.

(e) Fee.(1) Amount. The fee for recording

Notices of Intent to Enforce is $30 fornotices covering one work. For noticescovering multiple works as described inparagraph (d)(4) of this section, the feeis $30, plus $1 for each additional workcovered beyond the first designatedwork. (For example, the fee for a Noticeof Intent to Enforce covering 3 workswould be $32.)

(2) Method of Payment. (i) Checks,money orders, or bank drafts. TheCopyright Office will accept checks,money orders, or bank drafts madepayable to the Register of Copyrights.Remittances must be redeemablewithout service or exchange feesthrough a United States institution,must be payable in United Statesdollars, and must be imprinted withAmerican Banking Association routing

numbers. International money orders,and postal money orders that arenegotiable only at a post office are notacceptable. Currency will not beaccepted.

(ii) Copyright Office deposit account.The Copyright Office maintains asystem of Deposit Accounts for theconvenience of those who frequentlyuse its services. The system allows anindividual or firm to establish a DepositAccount in the Copyright Office and tomake advance deposits into thataccount. Deposit Account holders cancharge copyright fees against thebalance in their accounts instead ofsending separate remittances with eachrequest for service. For information onDeposit Accounts please write: Registerof Copyrights, Copyright Office, Libraryof Congress, Washington, DC 20559.Request a copy of Circular 5, ‘‘How toOpen and Maintain a Deposit Accountin the Copyright Office.’’

(iii) Credit cards (for use only infilings under the Uruguay RoundAgreements Act). The Copyright Officewill accept VISA, MasterCard, andAmerican Express. A filer using a creditcard must provide a separate cover letterstating the name of the credit card he orshe wishes to use, the credit cardnumber, the expiration date of the creditcard, and his or her signatureauthorizing the Office to charge the feesto his or her account. Debit cards cannotbe accepted for payment. To protect thesecurity of the credit card number, thefiler must not write his or her creditcard number on the Notice of Intent toEnforce.

(f) Public online access.(1) Almost all of the information

contained in the Notice of Intent toEnforce may be secured online throughthe Internet. This information may besecured in the Copyright Office HistoryDocuments (COHD) file through theLibrary of Congress electronicinformation system LC MARVEL.

(2) Alternative ways to connectthrough Internet are:

(i) Telnet to locis.loc.gov or thenumeric address 140.147.254.3, or

(ii) telnet to marvel.loc.gov, or thenumeric address 140.147.248.7 and login as marvel, or

(iii) use a Gopher Client to connect tomarvel.log.gov, (use port 70), or

(iv) use the Library of Congress WorldWide Web at: http://lcweb.loc.gov, orhttp://www.loc.gov.

(3) Information available online: Thetitle or brief description if untitled; anEnglish translation of the title; thealternative titles if any; the name of thecopyright owner or owner of anexclusive right; the author; the type ofwork; the date of receipt of the NIE in

the Copyright Office; the date ofpublication in the Federal Register; therights covered by the notice; and theaddress, telephone and telefax number(if given) of the copyright owner.

(4) Online records of Notice of Intentto Enforce will be searchable by thetitle, the copyright owner or owner of anexclusive right, and the author.

(g) NAFTA work. The copyrightowner of a work restored under NAFTAby the filing of a NAFTA Statement ofIntent to Restore with the CopyrightOffice prior to January 1, 1995, is notrequired to file a Notice of Intent toEnforce under this regulation.

PART 202—REGISTRATION OFCLAIMS TO COPYRIGHT


Authority: 17 U.S.C. 702.

5. A new § 202.12 is added to read asfollows:

§ 202.12 Restored copyrights.

(a) General. This section prescribesrules pertaining to the registration offoreign copyright claims which havebeen restored to copyright protectionunder section 104A of 17 U.S.C., asamended by the Uruguay RoundAgreements Act, Pub. L. No. 103–465.

(b) Definitions. (1) For the purposes ofthis section, restored copyright has thesame meaning as set forth in 17 U.S.C.104A(h), as amended by the URAA.

(2) Descriptive statement for acomputer program is a statementconsisting of the following elements: thetitle of the computer program; adescription of the purpose and functionof the program; an identification of sizeof the program (i.e. quantity of lines,pages, or bytes in the programmingcode); the language in which theprogram is written; and the operatingsystem, platform or computerenvironment in which the programfunctions.

(3) Descriptive statement for adatabase is a statement consisting of thefollowing elements: title of the database;name and content of each separate fileof the database, including a descriptionof its subject matter; origin of its data orcontents; an estimate of the totalnumber of pages or data records.

(4) Reliance party means any personwho—

(i) With respect to a particular work,engages in acts, before the sourcecountry of that work becomes an eligiblecountry, which would have violated 17U.S.C. 106 if the restored work had beensubject to a copyright protection andwho, after the source country becomes


an eligible country, continues to engagein such acts;

(ii) Before the source country of aparticular work becomes an eligiblecountry, makes or acquires one or morecopies of phonorecords of that work; or

(iii) As the result of the sale or otherdisposition of a derivative work,covered under the new 17 U.S.C.104A(d)(3), or of significant assets of aperson, described in the new 17 U.S.C.104A(d)(3) (A) or (B), is a successor,assignee, or licensee of that person.

(c) Registration—(1) General.Application, deposit, and fee forregistering a copyright claim in arestored work under section 104A, asamended, may be submitted to theCopyright Office on or after January 1,1996. The application, fee, and depositshould be sent in a single package to thefollowing address: (Address to be givenin final rule).

(2) GATT Form. Application forregistration for single works restored tocopyright protection under URAAshould be made on Form GATT.Application for registration for a groupof works published under a single seriestitle and published within the samecalendar year should also be made onForm GATT. Finally, application for agroup of up to 10 individuals, andrelated works as described in paragraph(c)(5)(ii) of this section, should be madeon Form GATT/GROUP.

These forms may be secured from theCopyright Office after October 1, 1995.Requests for these forms may also bemade by calling the Copyright OfficeHotline anytime after October 1 at (202)707–9100 and leaving a message. Inaddition, legible photocopies of thisform are acceptable if reproduced ongood quality, 81⁄2 by 11 inch whitepaper, and printed head to head so thatpage two is printed on the back of pageone.

(3) Fee.(i) Amount. The fee for registering a

copyright claim in a restored work is$20. The fee for registering a group ofmultiple episodes under a series titleunder paragraph (c)(5)(i) of this sectionis also $20. The fee for registering agroup of related works under paragraph(c)(5)(ii) of this section is $10 perindividual work.

(ii) Method of payment.(A) Checks, money orders, or bank

drafts. The Copyright Office will acceptchecks, money orders, or bank draftsmade payable to the Register ofCopyrights. Remittances must beredeemable without service or exchangefees through a United States institution,must be payable in United Statesdollars, and must be imprinted withAmerican Banking Association routing

numbers. In addition, internationalmoney orders, and postal money ordersthat are negotiable only at a post officeare not acceptable. Currency will not beaccepted.

(B) Copyright Office deposit account;The Copyright Office maintains asystem of Deposit Accounts for theconvenience of those who frequentlyuse its services. The system allows anindividual or firm to establish a DepositAccount in the Copyright Office and tomake advance deposits into thataccount. Deposit Account holders cancharge copyright fees against thebalance in their accounts instead ofsending separate remittances with eachrequest for service. For information onDeposit Accounts please write: Registerof Copyrights, Copyright Office, Libraryof Congress, Washington, DC 20559.Request a copy of Circular 5, ‘‘How toOpen and Maintain a Deposit Accountin the Copyright Office.’’

(C) Credit cards (for use only in filingsunder the Uruguay Round AgreementsAct). The Copyright Office will acceptVISA, MasterCard, and AmericanExpress Cards. A filer using a creditcard needs to provide a separate coverletter stating the name of the credit cardhe or she wishes to use, the credit cardnumber, the expiration date of the creditcard, and his or her signatureauthorizing the Office to charge the feesto his or her account. Debit cards cannotbe accepted for payment. To protect thesecurity of the credit card number, thefiler must not write his or her creditcard number on the registrationapplication.

(4) Deposit.(i) General. The deposit for a work

registered as a restored work under theamended section 104A, except for thoseworks listed in paragraph (c)(4) (ii)through (v) of this section, shouldconsist of one copy or phonorecordwhich best represents the copyrightablecontent of the restored work. Indescending order of preference, thedeposit should be:

(A) The work as first published;(B) A reprint or re-release of the work

as first published;(C) A photocopy or identical

reproduction of the work as firstpublished;

(D) A revised version which includesa substantial amount of thecopyrightable content of the restoredwork with an indication in writing ofthe percentage of the restored workappearing in the revision.

(ii) Computer programs. The depositrequirements for computer programs indescending order of preference are asfollows:

(A) A machine-readable copy of theprogram and a descriptive statement ofthe computer program;

(B) An eye-readable printout of 10representative pages of the program,preferably source code, and adescriptive statement of the computerprogram;

(C) A descriptive statement of thecomputer program.

(iii) Literary works embodied solely inmachine-readable format. The depositof literary works embodied solely inmachine-readable format shall consist ofany 10 representative pages (printout ortranscription) of the contents of thework.

(iv) Databases. The depositrequirements of databases in descendingorder of preference are as follows:

(A) Any 10 representative pages(printout or transcription) or records ofthe contents of the database and adescriptive statement of the database;

(B) A descriptive statement of thedatabase.

(v) Visual arts. With the exception of3-dimensional works of art, the generaldeposit preferences specified underparagraph (c)(4)(i) of this section shallgovern. For 3-dimensional works of art,the preferred deposit is one or morephotos, preferably in color.

(vi) Special relief. An applicant whois unable to deposit any of the preferreddeposits may seek an alternative depositunder special relief. 37 CFR 202.20(d).In such a case, the applicant shouldindicate in writing why the depositpreferences cannot be met, and submitalternative identifying materials clearlyshowing some portion of thecopyrightable contents of the restoredwork which is the subject ofregistration.

(vii) Motion pictures. If the deposit isa film print (16 as 35 mm), call thePerforming Arts Section of theExamining Division for deliveryinstructions. (202) 707–6040 or fax (202)707–6048.

(5) Group registration. Copyrightclaims in multiple restored works maybe registered as a group in the followingcircumstances:

(i) Single series title. Works publishedunder a single series title in multipleepisodes, installments, or issues duringthe same calendar year may beregistered as a group, provided theowner of U.S. rights is the same for allepisodes, installments, or issues. TheForm GATT should be used and thenumber of episodes or installmentsshould be indicated in the title line. Thefee for registering a group of such worksis $20. In general, the depositrequirements applicable to restoredworks will be applied to the episodes or


installments in a similar fashion. In thecase of weekly or daily television series,applicants should first request guidanceas to the proper deposit from thePerforming Arts Section of theExamining Division.

(ii) Group of related works. A groupof related works may be registered onthe Form GATT/GROUP, provided thefollowing conditions are met: Theauthor is the same for all works in thegroup; the owner of all United Statesrights is the same for all works in thegroup; all works must have beenpublished in the same calendar year; allworks must fit within the same subjectmatter category [i.e. literary works,musical work, motion picture, etc.]; andthere must be at least two and not morethan 10 individual works in the groupsubmitted. Applicants registering agroup of related works must file forregistration on the Form GATT/GROUP.The fee for registering a group of relatedworks is $10 per individual work.

(d) Works excluded. Works which arenot copyrightable subject matter undertitle 17 of the U.S. Code, other thansound recordings fixed before February15, 1972, should not be registered asrestored copyrights.

Dated: July 3, 1995.Marilyn J. Kretsinger,Acting General Counsel.

Approved by:James H. Billington,The Librarian of Congress.[FR Doc. 95–16765 Filed 7–7–95; 8:45 am]BILLING CODE 1410–30–P


40 CFR Part 52

[OH21–1–6989; FRL–5255–9]

Approval and Promulgation ofImplementation Plans; Ohio

AGENCY: U.S. Environmental ProtectionAgency (USEPA).ACTION: Proposed rule.

SUMMARY: The USEPA is proposingapproval of revisions to the Ohio StateImplementation Plan (SIP) adopted bythe Ohio Environmental ProtectionAgency (OEPA) on March 15, 1993, andDecember 30, 1994. The USEPA’sproposal is based upon a revisionrequest to satisfy the requirements of theClean Air Act, which was submitted bythe State to the USEPA on June 7, 1993,and February 17, 1995. The revisionsconcern Ohio Administrative Code(OAC) Chapter 3745–21, ‘‘CarbonMonoxide, Ozone, Hydrocarbon Air

Quality Standards, and RelatedEmission Requirements,’’ and thisproposed action addresses volatileorganic compound (VOC) reasonablyavailable control technology (RACT) formajor sources not covered by a controltechniques guideline (CTG) located inthe Cleveland/Akron/Lorain andCincinnati nonattainment areas. TheUSEPA has evaluated the revisions toRules 04 and 09, along with a lettercommitting to publish Findings andOrders correcting deficiencies in therules, submitted by OEPA on June 21,1995, and two permits to install (PTI)which OEPA has committed to submitas SIP revisions. USEPA proposes toapprove the requested revisions, whichestablish site-specific non-CTG VOCRACT regulations. The approval willnot be finalized until Ohio issues thecompleted Findings and Orders, andallows public comment on them, andsubmits the permits to install as SIPrevisions. Subsequent to review of theseFindings and Orders, USEPA will takefinal action on the requested revisionsthrough the letter notice process. Theeffective date of this SIP revision will bethe date that the letter notice is issued.DATES: Comments on this revision andon the proposed U.S.EPA action must bereceived by August 9, 1995.ADDRESSES: Written comments shouldbe addressed to: William L. MacDowell,Chief, Regulation Development Section,Air Enforcement Branch (AE–17J),United States Environmental ProtectionAgency, 77 West Jackson Boulevard,Chicago, Illinois 60604.

Copies of the SIP revision request andUSEPA’s analysis are available forpublic inspection during normalbusiness hours at the following address:United States Environmental ProtectionAgency, Region 5, Air and RadiationDivision, 77 West Jackson Boulevard(AE–17J), Chicago, Illinois 60604; andOffice of Air and Radiation (OAR),Docket and Information Center (AirDocket (6102) room M1500, UnitedStates Environmental ProtectionAgency, 401 M Street, SW., Washington,DC 20460.FOR FURTHER INFORMATION CONTACT:Alexis Cain, Air Enforcement Branch,Regulation Development Section (AE–17J), United States EnvironmentalProtection Agency, Region 5, Chicago,Illinois 60604, (312) 886–7018.


I. BackgroundOn November 15, 1990, amendments

to the 1977 Clean Air Act (CAA) wereenacted. Pub. L. 101–549, 104 Stat.2399, codified at 42 U.S.C. 7401–7671q.Under the pre-amended CAA, ozone

nonattainment areas were required toadopt reasonably available controltechnology (RACT) rules for sources ofvolatile organic compound (VOC)emissions. VOCs contribute to theproduction of ground level ozone andsmog. These rules were required as partof an effort to achieve the NationalAmbient Air Quality Standard forozone.

RACT, as defined in 40 CFR51.100(o), means devices, systemsprocess modifications, or otherapparatus or techniques that arereasonably available taking into account(1) the necessity of imposing suchcontrols in order to attain and maintaina national ambient air quality standard,(2) the social, environmental andeconomic impact of such controls, and(3) alternative means of providing forattainment and maintenance of suchstandard. The USEPA issued three setsof control technique guidelines (CTGs)documents, establishing a ‘‘presumptivenorm’’ for RACT for various categoriesof VOC sources. Those sources notcovered by a CTG were called non-CTGsources. The USEPA determined that agiven nonattainment area’s SIP-approved attainment date establishedwhich RACT rules the area needed toadopt and implement. Under pre-amended section 172(a)(1), ozonenonattainment areas were generallyrequired to attain the ozone standard byDecember 31, 1982. Those areas thatprojected attainment by that date wererequired to adopt RACT for sourcescovered by the Group I and II CTGs.Those areas that sought an extension ofthe attainment date under section172(a)(2) to as late as December 31,1987, were required to adopt RACT forall CTG sources and for all major (i.e.,having a potential to emit 100 tons peryear or more of VOC emissions) non-CTG sources.

Section 182(b)(2) of the amended Actrequires States to adopt RACT rules forall areas designated nonattainment forozone and classified as moderate orabove. There are three parts to thesection 182(b)(2) RACT requirement: (1)RACT for sources covered by an existingCTG, i.e., a CTG issued prior to theenactment of the Clean Air ActAmendments of 1990; (2) RACT forsources covered by a post-enactmentCTG; and (3) all major sources notcovered by a CTG. The non-CTGrequirement includes unregulatedemission units within a source if theytotal more than 100 tons per year in theaggregate. Section 182(b)(2) requiresnonattainment areas that previouslywere exempt from RACT requirementsto ‘‘catch up’’ to those nonattainmentareas that became subject to those


requirements during an earlier period.In addition, it requires newly designatedozone nonattainment areas to adoptRACT rules consistent with those forpreviously designated nonattainmentareas.

This proposed action addresses VOCRACT for site-specific non-CTG sourceslocated in the Cleveland/Akron/Lorainand Cincinnati nonattainment areas.Non-CTG RACT for the other areas ofOhio designated moderate or above,Toledo and Dayton-Springfield, hasbeen addressed in a separate rulemakingin the Federal Register on March 23,1995 (60 FR 15235–15241) along withRACT for CTG sources.

The following is the USEPA’sevaluation of the submitted revisions toOhio Administrative Code (OAC)Chapter 3745–21 ‘‘Carbon Monoxide,Ozone, Hydrocarbon Air QualityStandards, and Related EmissionRequirements,’’ including the followingamendments: 3745–21–01, Definitions,3745–21–04, Attainment Dates andCompliance Time Schedules, and 3745–21–09, Control of Emissions of VolatileOrganic Compounds from StationarySources.

II. USEPA Evaluation and ActionIn determining the approvability of a

VOC rule, the USEPA must evaluate therule for consistency with therequirements of the Act and USEPAregulations, as found in section 110 andPart D of the Act and 40 CFR part 51(Requirements for Preparation,Adoption, and Submittal ofImplementation Plans). A detailedanalysis of the submittals anddiscussion of the USEPA’s basis forproposing approval is contained aUSEPA Technical Support Document(TSD) dated June 23, 1995.

This action addresses VOCregulations applying to non-CTGsources. The USEPA finds that Ohio’snon-CTG VOC RACT rules for sourceslocated in the Cleveland/Akron/Lorainand Cincinnati nonattainment areas areapprovable. These rules had previouslybeen disapproved by USEPA in theFederal Register for May 9, 1994 (59 FR23796–23799) as a result of deficienciescited in the Federal Register onSeptember 23, 1993 (58 FR 49458–49463). For four of the site-specificrules, approval is contingent uponissuance by the Ohio EnvironmentalProtection Agency (OEPA) of Findingsand Orders which correct deficienciesin the rules. A rule establishing RACTfor one additional company, SprayonProducts, for which there is no currentrule, will be contained in an additionalFinding and Order. In a June 21, 1995letter to USEPA, OEPA has committed

to publish these Findings and Orders.Subsequent to review of these Findingsand Orders, USEPA will take finalaction on the requested revisionsthrough a letter notice to OEPA and theaffected sources. The effective date ofthe revisions will be the date that theletter notice is issued. Interested partieswishing to comment on these revisionsor on USEPA approval by means of theletter notice must submit writtencomments by August 9, 1995.

A discussion of these rules, containedin OAC 3745–21–09, follows.

(FF) Steelcraft Manufacturing Co.,Cincinnati

The deficiency previously cited byUSEPA (lack of sufficient recordkeepingand reporting requirements) has beencorrected by subjecting this source tothe recordkeeping and reportingrequirements of paragraph (B)(3),previously approved by USEPA.

(GG) Chevron USA, Incorporated,Cincinnati Area

Recordkeeping requirements havebeen added to this rule to ensureenforceability, thus correcting thedeficiency previously cited by USEPA.

(HH) Goodyear Tire and Rubber Co.,Akron, Massillon Road

Recordkeeping requirements havebeen added to this rule to ensureenforceability, thus correcting thedeficiency previously cited by USEPA.

(II) International Paper Co., Springdale

This source is an offset lithographicprinter, a category for which a draft CTGwas published on December 12, 1992,although no final CTG was published. AFinding and Order issued by OEPA willrequire that the alcohol content in thefountain solution be no greater than 8.5percent by volume, and that thefountain be refrigerated to 60 °F, whichwas determined to be RACT in the draftCTG. In addition, the rule imposeslimits on the VOC content of coatingsand inks which were determined to bethe lowest available, based oncorrespondence between the companyand vendors of coatings and inks.

(JJ) Goodyear Tire and Rubber Co.,Akron, Tech Way Drive

USEPA concerns about a provisionallowing the use of an alternativemethod and/or procedure to GoodyearMethod E–826 (Revision 1, 1983) fordetermining residual monomer contenthave been addressed by inclusion in therule of language requiring that thisalternative method and/or procedure beapproved by the USEPA as a SIPrevision. Another USEPA-cited

deficiency has been corrected by addingrequirements for daily analyses andrecordkeeping on residual monomercontent in polymer blend tanks.

(KK) Morton Thiokol, CincinnatiThis rule requires the company to

control VOC emissions from itsmethyltin production processes throughuse of a VOC recovery system whichachieves at least 70 percent controlefficiency. Control efficiency must becalculated weekly, and failure toachieve adequate control efficiencymust be reported. In addition, the railcarunloading process must be a closed-loopsystem which uses compressed VOC forunloading, without any venting into theatmosphere. Previously citeddeficiencies have been correctedthrough addition to the rule of arequirement that determination of VOCusage and recovery be performed on adaily basis to calculate a weekly averagefor purposes of compliancedetermination, and by an explanation bythe company and Ohio of the closed-loop unloading process.

(LL) Lubrizol Corporation, Painesville(Cleveland Area)

Recordkeeping requirements havebeen added to paragraph (3)(a) of thisrule to ensure enforceability, addressinga deficiency previously cited by USEPA.

(MM) PPG Industries, Inc., ClevelandA deficiency previously cited by

USEPA (lack of sufficient recordkeepingand reporting requirements) has beencorrected by subjecting this source tothe recordkeeping and reportingrequirements of paragraph (B)(4). Inaddition, a definition of the term‘‘control system’’ has been added toparagraph 3745–21–01(Q), eliminatinganother previously-cited deficiency.

(NN) Midwest Mica, ClevelandMidwest Mica creates electrical

insulation products using mica chipsheld together by resins. The rulerequires emissions from each of thecoating or laminating lines to be ventedto a control device achieving 98 percentdestruction of VOCs. However, the rulelacks a requirement for captureefficiency. A Finding and Order issuedby OEPA will correct this deficiency byrequiring 81 percent total controlefficiency (taking into account bothcapture and destruction) andreferencing USEPA test methods fordetermining capture efficiency. Lineswhich employ less than five tons ofVOCs per year are exempted from thisrequirement, but the company mustkeep monthly records documentingemissions from these lines, and report


emission levels which exceed five tonsper year. Recordkeeping requirementsfor the control device are covered byparagraph (B)(3).

(OO) Armco Steel Company,Middletown (Cincinnati Area)

RACT for this facility involves the useof rolling oil, rust preventative oil, pre-lube oil and anti-galling material withthe lowest available VOC content.USEPA cited deficiencies in the rule asa result of the company’s failure todemonstrate that the VOC content ofrolling oil and anti-galling material usedis the lowest available. For anti-gallingmaterial, this deficiency has beencorrected through the use a water-basedmaterial. A Finding will state a newlimit on pounds of VOC per gallon ofanti-galling material. For rolling oil, thisdeficiency has been addressed throughprovision of correspondence withvendors stating that the oil in use hasthe lowest VOC content available. TheFinding will correct the limit on VOCcontent per gallon for rolling oil andrust preventative oil, and provide a VOCcontent limit for pre-lube oil. Previouslimits in the rule were based on anincorrect application of ASTM methodD2369–81 to the oils in use. Actualemissions of VOCs per gallon of oilapplied are a small fraction of the totalVOC content, since most of the oil isrecovered and recycled. AdditionalUSEPA concerns about the lack ofrecordkeeping and reportingrequirements have been addressed bymaking Rule 09(OO) subject to therecordkeeping and reportingrequirements in paragraph (B)(3).

(PP) Formica Corporation, CincinnatiThe deficiency previously cited by

USEPA (lack of sufficient recordkeepingrequirements) has been corrected bysubjecting this source to therequirements of paragraph (B)(3).

(QQ) DayGlo Color Corporation,Cleveland

This rule requires the company to usea vacuum system consisting of avacuum pump and condenser as afiltration system which separatesmethanol from solid dye. Each mixingvessel larger than 400 gallons must becompletely covered at all times, exceptwhen the vessel is empty or beingemptied, and except for small openingsfor the mixer shaft and for addingmaterials to the vessel.

(SS) Ritrama Duramark, ClevelandRitrama Duramark operates two lines

which apply coatings to a continuousweb. Line 1 is a vinyl casting line andline 2 applies adhesives to paper. Line

2 is covered by the paper coating rule—09(F). The vinyl film casting line,covered by (SS), applies a vinylorganosol to a paper substrate in orderto create a vinyl casting. The vinyl isthen dried in an oven which is ventedto an incinerator. The rule requires 100percent capture efficiency and 98percent destruction of VOCs from thisline.

(TT) ICI Americas, PerryThe rule requires that emissions from

stage 1 and stage 2 reactor vent streamsbe vented to a flare which meets therequirement of OAC 3745–21–09(DD)(10)(d), and the diked area of thecarbon disulfide tanks must becompletely covered by styrofoam sheetsin order to reduce VOC emissions.Control on distillation vents wasdetermined to be economicallyinfeasible.

(YY) PMC Specialties Group, CincinnatiPMC manufactures methyl

anthranilate (MA), anthranilic acid(AA); saccharin, and o-carboalkoxybenzenefulfoanamide(OCBS). The rule requires thatemissions from the MA and AA processreactor vent streams be vented to anenclosed combustion device that isdesigned and operated to achieve atleast a 95 percent reduction in VOCemissions. Under this rule, the OCBSmanufacturing process is required tolimit its emissions to 12 pounds of VOCper 6,000 pounds of product, whichresults in a 90 percent reduction in VOCemissions. Controls on emissions fromthe saccharin manufacturing processwere evaluated by OEPA and found tobe technically or economicallyinfeasible.

(ZZ) Firestone Synthetic Rubber & LatexCompany, Akron

All reactor process vent streams mustbe vented to an enclosed combustiondevice achieving 98 percent reduction,or to a flare which meets therequirements of paragraph (DD)(10)(d).An exemption is made for process ventstreams vented to a flare constructedprior to March 21, 1993, which ismaintained in accordance with designspecifications.

(AAA) Reilly Industries, ClevelandReilly refines crude coal tar,

producing ‘‘front end’’ naphthalene oilproducts, creosote oil, heavy (enamel)oil, electrode binder pitch, pellet pitch,roofing tar, and road tar. The facility’smajor emissions sources include:storage tanks for crude product; eightdistillation stills (in two ‘‘batteries’’ offour each—one battery for continuous

processing, the other for batchprocessing), and storage tanks forrefined products. The distillation stillsare covered by OAC 3745–21–07 (G),which requires 85 percent destruction ofVOCs emissions. USEPA concerns aboutthe enforceability of paragraph 07 (G)will be addressed in a Finding andOrder which affirms that the stills arecovered by this rule, and which clarifiesthe test methods to be used to measureVOCs. The rule requires 90 percentcontrol on each storage tank larger than40,000 gallons which contains crudecoal tar, refined tar or front end oil; thisrule does not cover tanks containingcreosote oil and solution oil. However,the low volatility of these productsleads to low emissions, eliminating theneed for add-on controls. Storage tankswith controls built before July 1, 1992are exempt from the 90 percent controlrequirement, but must be operated andmaintained in accordance with designspecifications.

(BBB) BF Goodrich, Akron ChemicalPlant

The rule requires that emissions fromthe agerite resin D process be vented toa control device which achieves 90percent control efficiency; emissionsfrom the superlite (trademark) anddiphenylamine-based antioxidantsprocess must be vented to controldevices achieving 95 percent controlefficiency.

The schedules for compliance witheach of these rules are contained inOAC 3745–21–04(C)(40–51,53,54,59–62). Rules (C)(42), (C)(43), (C)(44),(C)(45) and (C)(47) were approved in theMarch 23, 1995 Federal Register (60 FR15235–15241). The remaining schedulesare timely, and are approved.

In addition to the non-CTG VOCRACT rules contained in OAC 3745–21–09, OEPA has committed to submit aFinding and Order for SprayonProducts, in Bedford Heights, whichestablishes a generic VOC RACT limit of81 percent reduction from the 1990baseline. This limit will be based onVOC emissions per can filled, therebyallowing changes in production not toaffect the percent control limit.Operations which already meet afederally-enforceable RACTrequirement, or which have combinedannual emissions of less than five tonsper year will be exempt from thebaseline and the 81 percent reductionrequirement. The facility will beallowed one year to petition OEPA andUSEPA for an alternative control plan ifit can be demonstrated that the 81percent control requirement is nottechnically or economically feasible.


Along with its review of Ohio’s non-CTG VOC RACT rules, USEPA reviewedRACT studies for sources which aresubject to the non-CTG RACTrequirement but for which Ohio has notsubmitted a non-CTG rule. Ohiodetermined that no rule was necessaryfor these sources because no controlsbeyond those already federallyenforceable were technically oreconomically feasible. USEPA concurswith this judgement. The justificationfor not including a rule for these sourcesfollows.

Excello Specialty Company, Cleveland

RACT for this facility is defined as theoperation of control devices with 85percent overall control efficiency on itscoating lines, which is required by apermit to install (PTI).

Hilton Davis Company, Cincinnati

The company utilizes in-linecondensers, vacuum pumps, andscrubbers that have process functions aswell as emissions control functions. Inaddition, emissions at the company’swastewater treatment plant arecontrolled by a thermal oxidizer whichis required by a PTI. Additional controlswere evaluated by OEPA and found tobe technically or economicallyinfeasible.

Monsanto Company, Addyston

Thermal incineration, catalyticincineration and carbon adsorption ofemissions from various processes at thissource were evaluated by OEPA andfound to be technically or economicallyinfeasible.

Proctor & Gamble, Ivorydale (CincinnatiArea)

Existing controls have processfunctions or serve primarily asparticulate matter control. Additionalcontrols of VOC emissions from thissource were evaluated by OEPA andfound to be technically or economicallyinfeasible.

General Electric Company, EuclidSpecialty Coating, Cleveland

The facility utilizes condensers thathave process functions as well asemissions control functions. Additionalcontrols at this source were evaluatedby OEPA and found to be technically oreconomically infeasible.

BF Goodrich Company, Avon Lake

Add-on controls were evaluated atthis source were evaluated by OEPA andfound to be technically or economicallyinfeasible.

III. Proposed Rulemaking Action andSolicitation of Public Comment

The USEPA has evaluated the State’ssubmittal for consistency with the Act,USEPA regulations, and USEPA policy.The USEPA has determined that thesubmitted non-CTG rules meet the Act’srequirements, and with this actionproposes approval, under section110(k)(3), of the following rules:

OAC 3745–21–01: (Q); (T).OAC 3745–21–04: (C)(40); (C)(41);

(C)(46); (C)(48); (C)(49); (C)(50); (C)(51);(C)(53); (C)(54); (C)(59); (C)(60); (C)(61);(C)(62).

OAC 3745–21–09: (FF); (GG); (HH);(II); (JJ); (KK); (LL); (MM); (NN); (OO);(PP); (QQ); (SS); (TT); (YY); (ZZ);(AAA); (BBB).

Approval of OAC 3745–21–09 (II),(NN), (OO) and (AAA) is contingentupon approval of Findings and Ordersoutlined in a June 21, 1995 letter fromOEPA to USEPA. Subsequent to USEPAreview, the Findings and Orders forInternational Paper, Midwest Mica,Armco (AK) Steel, Reilly Industries, andSprayon Products, along with permits toinstall for Excello Specialty Companyand Hilton Davis Company, will beapproved into the Ohio ozone SIPthrough a letter notice.

Public comments are solicited onUSEPA’S proposed rulemaking action.Public comments received by August 9,1995, will be considered in thedevelopment of USEPA’s finalrulemaking action. Notice of final actionon the requested revisions will beprovided by letter to OEPA and theaffected sources, and a subsequentdocument of such action will bepublished in the Federal Register.

Nothing in this action should beconstrued as permitting, allowing orestablishing a precedent for any futurerequest for revision to any SIP. Eachrequest for revision to any SIP shall beconsidered separately in light of specifictechnical, economic, and environmentalfactors and in relation to relevantstatutory and regulatory requirements.

This action has been classified as aTable 3 action by the RegionalAdministrator under the procedurespublished in the Federal Register onJanuary 19, 1989 (54 FR 2214–2225), asrevised by an October 4, 1993memorandum from Michael H. Shapiro,Acting Assistant Administrator for Airand Radiation. The Office ofManagement and Budget has exemptedthis regulatory action from ExecutiveOrder 12866 review.

Under the Regulatory Flexibility Act,5 U.S.C. 600 et seq., USEPA mustprepare a regulatory flexibility analysisassessing the impact of any proposed or

final rule on small entities. (5 U.S.C. 603and 604.) Alternatively, USEPA maycertify that the rule will not have asignificant impact on a substantialnumber of small entities. Small entitiesinclude small businesses, small not-for-profit enterprises, and governmententities with jurisdiction overpopulations of less than 50,000.

SIP approvals under section 110 andsubchapter I, Part D of the Act do notcreate any new requirements, butsimply approve requirements that theState is already imposing. Therefore,because the federal SIP approval doesnot impose any new requirements, Icertify that it does not have a significantimpact on any small entities affected.Moreover, due to the nature of theFederal-State relationship under theAct, preparation of a regulatoryflexibility analysis would constitutefederal inquiry into the economicreasonableness of state action. The Actforbids USEPA to base its actionsconcerning SIPs on such grounds.Union Electric Co. v. USEPA, 427 U.S.246, 256–66 (S.Ct. 1976); 42 U.S.C.7410(a)(2).

Under Sections 202, 203, and 205 ofthe Unfunded Mandates Reform Act of1995, signed into law on March 22,1995, USEPA must undertake variousactions in association with proposed orfinal rules that include a Federalmandate that may result in estimatedcosts of $100 million or more to theprivate sector, or to State, local, or tribalgovernments in the aggregate.

Through submission of the stateimplementation plan or plan revisionsapproved in this action, the State haselected to adopt the program providedfor under section 110 of the Clean AirAct. The rules and commitments beingapproved in this action may bind State,local and tribal governments to performcertain actions and also may ultimatelylead to the private sector being requiredto perform certain duties. To the extentthat the rules and commitments beingapproved by this action will impose orlead to the imposition of any mandateupon the State, local or tribalgovernments either as the owner oroperator of a source or as a regulator, orwould impose or lead to the impositionof any mandate upon the private sector,EPA’s action will impose no newrequirements; such sources are alreadysubject to these requirements underState law. Accordingly, no additionalcosts to State, local, or tribalgovernments, or to the private sector,result from this action. The USEPA hasalso determined that this action doesnot include a mandate that may resultin estimated costs or $100 million ormore to State, local, or tribal


governments in the aggregate or to theprivate sector.

List of Subjects in 40 CFR Part 52Air pollution control, Incorporation

by reference, Intergovernmentalrelations, Ozone, Reporting andrecordkeeping requirements, Volatileorganic compounds.

Authority: 42 U.S.C. 7401–7671(q).Dated: June 28, 1995.

David A. Ullrich,Acting Regional Administrator.[FR Doc. 95–16826 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–P

40 CFR Part 52

[OH80–1–6979; FRL–5256–2]

Approval and Promulgation ofImplementation Plans; Ohio

AGENCY: United States EnvironmentalProtection Agency (USEPA).ACTION: Proposed rule.

SUMMARY: The USEPA is proposing toapprove Ohio’s 1990 base-year ozoneprecursor emissions inventories for theCanton, Cleveland, Cincinnati andYoungstown ozone nonattainment areasas revisions to the ozone portion of theOhio State Implementation Plan (SIP).The emissions inventories weresubmitted to satisfy a Federalrequirement that States containingozone nonattainment areas submitinventories of actual ozone precursoremissions for the year 1990. The Ohioozone nonattainment areas covered bythis rulemaking are Canton (StarkCounty); Cincinnati (Butler, Clermont,Hamilton and Warren Counties);Cleveland (Ashtabula, Cuyahoga,Geauga, Lake, Lorain, Medina, Portageand Summit Counties); and Youngstown(Mahoning and Trumbull Counties).Initial notification of such approvalwould be by letter to the State of Ohio.DATES: Comments on this action must bereceived by August 9, 1995.ADDRESSES: Written comments shouldbe mailed to: William L. MacDowell,Chief, Regulation Development Section,Air Enforcement Branch (AE–17J),USEPA, Region 5, 77 West JacksonBoulevard, Chicago, Illinois 60604.

Copies of the State submittal andUSEPA’s analysis of it are available forinspection at: Regulation DevelopmentSection, Air Enforcement Branch (AE–17J), USEPA, Region 5, 77 West JacksonBoulevard, Chicago, Illinois 60604.FOR FURTHER INFORMATION CONTACT:Richard Schleyer, EnvironmentalEngineer, Regulation DevelopmentSection, Air Enforcement Branch (AE–

17J), USEPA, Region 5, 77 West JacksonBoulevard, Chicago, Illinois 60604,(312) 353–5089.


I. Background

Section 182(a)(1) of the Clean Air ActAmendments of 1990 (Act) requiresStates with ozone nonattainment areasto submit a comprehensive, accurateand current inventory of actual ozoneprecursor emissions (which includesvolatile organic compounds (VOC),nitrogen oxides (NOX), and carbonmonoxide (CO)) for each ozonenonattainment area by November 15,1992. This inventory must includeanthropogenic base-year (1990)emissions from stationary point, area,non-road mobile, and on-road mobilesources, as well as biogenic (naturallyoccurring) sources in all ozonenonattainment areas. The emissionsinventory must be based on conditionsthat exist during the peak ozone season(generally the period when peak hourlyozone concentrations occur in excess ofthe primary ozone National Ambient AirQuality Standard—NAAQS). Ohio’sannual ozone season is from April 01 toOctober 31 of each year.

II. Criteria for Evaluating OzoneEmissions Inventories

Guidance for preparing and reviewingthe emission inventories is provided inthe following USEPA guidancedocuments or memoranda: ‘‘StateImplementation Plans; GeneralPreamble for the Implementation ofTitle I of the Act,’’ (Preamble) aspublished in the April 16, 1992 FederalRegister (57 FR 13498); ‘‘EmissionInventory Requirements for Ozone StateImplementation Plans,’’ (EPA–450/4–91–010) dated March 1991; amemorandum from John Calcagni,Director, Air Quality ManagementDivision, OAQPS, entitled ‘‘PublicHearing Requirements for the 1990Base-Year Emissions Inventories forOzone and Carbon MonoxideNonattainment Areas,’’ dated September29, 1992; ‘‘Procedures for thePreparation of Emissions Inventories forCarbon Monoxide and Precursors ofOzone, Volumes I and II,’’ (EPA–450/4–91–016 and EPA–450/4–91–014)(Procedures; Volumes I and II) datedMay 1991; ‘‘Procedures for EmissionsInventories Preparation, Volume IV:Mobile Sources,’’ (EPA–450/4–81–026d)(Procedures; Volume IV) dated 1992;and ‘‘Supplement C to Compilation ofAir Pollutant Emission Factors, VolumeI: Stationary Point and Area Sources,’’(AP–42) dated September 1990.

As a primary tool for the review of thequality of emission inventories, theUSEPA has also developed three levels(I, II, and III) of emission inventorieschecklists. The Level I and II checklistsare used to determine that all requiredcomponents of the base-year emissioninventory and associated documentationare present. These reviews also evaluatethe level of quality of the associateddocumentation and the data providedby the State and assess whether theemission estimates were developedaccording to the USEPA guidance. TheLevel III review evaluates crucialaspects and the overall acceptability ofthe emission inventory submittal.Failure to meet one of the ten criticalaspects would lead to disapproval of theemissions inventory submittal.

Detailed Level I and II reviewprocedures can be found in the USEPAguidance document entitled ‘‘QualityReview Guidelines for 1990 Base YearEmissions Inventories,’’ (QualityReview) (EPA–454/R–92–007) datedAugust 1992. Level III criteria wereattached to a memorandum from John S.Seitz, Director, Office of Air QualityPlanning and Standards, entitled‘‘Emission Inventory Issue,’’ dated June24, 1993. The Level I, II, and IIIchecklists used in reviewing thisemissions inventory submittal areattached to two USEPA technicalsupport documents dated June 23, 1995.

III. State SubmittalOn March 15, 1994, the Ohio

Environmental Protection Agency(OEPA) submitted a revision to theozone portion of Ohio’s SIP whichconsisted of the 1990 base-year ozoneemissions inventory for the followingozone nonattainment areas in Ohio:Canton, Cincinnati, Cleveland,Columbus, Dayton, Toledo andYoungstown. The USEPA hascompleted its review of the emissionsinventories submitted for the Canton(which includes Stark County),Cincinnati (which includes Butler,Clermont, Hamilton and WarrenCounties), Cleveland (Ashtabula,Cuyahoga, Geauga, Lake, Lorain,Medina, Portage and Summit Counties)and Youngstown (which includesMahoning and Trumbull Counties)ozone nonattainment areas. The 1990base-year emissions inventoriessubmitted for all other areas areaddressed in separate rulemakings.

Inventory Preparation Plan/QualityAssurance Plan

All States were required to submit anInventory Preparation Plan (IPP) toUSEPA for review and approval byOctober 1, 1991. The IPP documents the


procedures utilized in the developmentof an emissions inventory and containsthe quality assurance and qualitycontrol plan (QA/QC). On March 19,1992, the State of Ohio submitted a finalozone emissions IPP. On April 15, 1992,USEPA informed the State that the IPPwas not approvable at the time.Subsequently, USEPA has worked withthe State to correct deficiencies in theIPP. With the March 1994 SIP revisionrequest, the State submitteddocumentation of how the emissionsinventory was prepared, as well as aquality assurance report for the point,area, and mobile source portions of theemissions inventory. The USEPA findsthat this documentation and qualityassurance report are acceptable to meetthe requirements of an IPP.

Point Source Emissions InventoryFor each nonattainment area, the State

submitted a point source emissionsinventory of all facilities that emit atleast 10 tons per year (tpy) of VOC, or100 tpy NOX or CO. The State alsoincluded sources that emit 100 tpy ofVOC, CO, or NOX located in a 25-mileboundary surrounding eachnonattainment area. The point sourceemissions inventory contains generalfacility information, number of sources,production schedules and relatedemissions for each source, emissionslimitation, control efficiency and ruleeffectiveness (RE), as applicable, andtotal emissions on an annual and dailyozone season basis.

The following methods wereemployed by the State to identifysources to be included in the 1990 base-year emissions inventory: the 1989records for plants in the EmissionsInventory System (EIS) were checkedand plants meeting the VOC, CO or NOX

criteria were revised with 1990emissions data; the air permit recordswere reviewed for plants that arecandidates for inclusion in the pointsource inventory; and current industrialdirectories and the Toxic ReleaseInformation System (TRIS) databasewere checked for additional pointsource emissions. For facilities in thepoint source inventory, the Stateacquired the emissions data by means ofthe following: mail surveys; plantinspections; telephone calls; and airpermit files.

The USEPA reviewed the point sourceemissions data by cross referencing thepoint source inventory to the followingsources: USEPA’s guidance documententitled ‘‘Major CO, NO2, and VOCSources in the 25-Mile BoundaryAround Ozone Nonattainment Areas,Volume I: Classified OzoneNonattainment Areas,’’ (EPA–450/4–92–

005a) February 1992; a 1990 TRISRetrieval; and a 1990 AerometricInformation Retrieval Systems (AIRS)Facility Subsystem—Emission toCompliance Comparison Report.

Where a source was governed by aregulation or a control device, theemissions limit was stated. An RE factorwas then applied in the determinationof emissions. In accordance withUSEPA guidance, a standard RE factorof 80 percent was utilized, unlessotherwise justified.

Area Source Emissions Inventory

Area source emissions werecalculated using State-specific data aswell as USEPA guidance documents andtechnical memoranda developed forvarious categories. The State utilizedemission factors from Procedures;Volumes I and IV, and AP–42 andprovided necessary documentation. Thefollowing area source categories wereincluded in the emissions inventory:gasoline loading and distribution, drycleaning, degreasing, architecturalsurface coatings, traffic markings,automobile refinishing, graphic arts,cutback asphalt, pesticide application,commercial/consumer solvents,bakeries, waste management practices(landfills), leaking underground storagetanks, incineration of solid waste,stationary fossil fuel combustion, andfires (structural, open burn, etc.).Vehicle refueling emissions wereincluded as part of the mobile sourceemissions inventory.

The area source inventory wasreviewed utilizing USEPA’s guidancedocuments, and the Level I and IIchecklists, to ensure that all sourcecategories and their related emissions(and emission factors) were included inthe area source emissions inventory.Seasonal adjustments, ruleeffectiveness, and rule penetrationfactors were applied as indicated in theState submittal.

On-Road Mobile Source EmissionsInventory

Development of Emission Factors

In the development of the mobilesource emissions inventory, the Stateutilized USEPA’s mobile sourceemissions model, Mobile 5a, for thedetermination of emissions factors foreight vehicle types and twelve roadwaytypes. Hard-copy documentation of theinput and output files are provided inthe State’s submittal. Where available,the State-specific inputs were utilized inthe development of the input files forMobile 5a.

Development of Vehicle Miles Travelled(VMT)

Canton, Cleveland and YoungstownAreas: The 1990 VMT for each roadwaytype was developed by the OhioDepartment of Transportation (ODOT).ODOT maintains data on each section ofhighway in the State of Ohio. VMT weredeveloped by the State Road InventorySystem and reported through theHighway Performance MonitoringSystem (HPMS) to the Federal HighwayAdministration (FHWA).

Each roadway section daily VMT(dVMT) is computed as the annualaverage daily traffic (AADT) for thatsection times the length of the section.The county dVMT is the sum of thedVMT for each highway functionalclassifications in the county. The totaldVMTs are then summed as a statewidetotal. The statewide totals are thencompared by functional class to the1990 HPMS submittal. For thoseclassifications where traffic counts areavailable for all or nearly all theirsections, the totals were essentially thesame. For those with more off-systemsroads, the resulting totals were largerthan the HPMS’s submittal value (asexpected). Correction factors werecomputed from the two sets of totalsand applied to the individual cells.

ODOT used permanent and portablevehicle classification equipment todevelop the vehicle mix by functionalclassification of highway. Traficomp IIIvehicle classification equipment areused to support the HPMS datacollection effort. A software programcalled OHIO CONVERT formats vehicleclassification data into the FHWAVehicle Classification categories.

Cincinnati-Hamilton InterstateNonattainment Area: For theCincinnati-Hamilton Interstate area, theOhio-Kentucky-Indiana RegionalCouncil of Governments (OKI) wasresponsible for the development of themobile source emissions inventory. OKIdeveloped this inventory for the Ohioand Kentucky portions of the interstatenonattainment area. OKI utilized theOKI Travel Demand Model to estimatethe traffic volume on each roadwaysegment and an OKI utility program towhich calculates the loaded speed, VMTand emissions for each roadwaysegment.

The OKI travel demand model is acomputerized travel demand forecastingmodel for the entire interstatenonattainment area. The model uses afour phase sequential travel demandforecasting process of trip generation,distribution modal choice andassignment. The OKI Travel DemandModel is composed of TRANPLAN


programs and Fortran programs writtenby OKI.

The model takes zonal demographicdata and the transportation network asinputs and produces estimated trafficvolumes on each roadway segment inthe network. Traffic zones are theanalysis units in the model. The OKIregion is divided into 909 zones. Theoutput of the model is a loaded highwaynetwork which contains information foreach link such as initial speed, capacity,distance, functional class districtnumber area type and forecasted traffic.

The USEPA has reviewed the mobilesource emissions inventory utilizing thechecklist contained in the QualityReview guidance document. This wasused to ensure that recommendedprocedures were followed in thedevelopment of the mobile sourceportion of the emissions inventory.

Off-Road Mobile Source EmissionsInventory

Canton, Cincinnati and YoungstownAreas: The State developed emissionsestimates for the following off-roadcategories according to USEPAguidance: aircraft, railroad locomotives,recreational boating, off roadmotorcycles, agricultural equipment,construction equipment, industrialequipment, and lawn and gardenequipment. Documentation wasprovided as to the sources of emissionsfactors utilized and were submitted inthe area source emissions inventoryportion of the submittal.

Cleveland Area: The State utilizedemissions estimates for non-roademissions developed by the Office ofMobile Sources (OMS–USEPA) inOctober 1992, in accordance withUSEPA requirements for the Cleveland/Akron off-road mobile source emissionsinventory. These OMS emissionsestimates are provided for off-roaddiesel engines, as well as two-stroke andfour-stroke gasoline engines, includingoff-road motorcycles, constructionequipment, farm equipment, lawn andgarden equipment, industrialequipment, and recreational vessels. Inaddition, the State included in the off-road mobile source inventory emissionsfrom aircraft, railroads, and commercialvessels, which are not included in theOMS data. These estimates weredeveloped using emissions factors fromAP–42 and activity factors gatheredfrom various sources.

The off-road mobile source inventorywas reviewed utilizing the Level I andII checklists and USEPA’s guidance

documents to ensure that all sourcecategories and their related emissionsfactors were included in the off-roadmobile source emissions inventory.

Biogenic Emissions InventoryThe State of Ohio developed the

naturally occurring (or biogenic)emissions for the Canton, Cincinnati,Cleveland and Youngstown areasaccording to a USEPA’s guidancedocument entitled ‘‘User’s Guide to thePersonal Computer Version of theBiogenic Emissions Inventory System(PC–BEIS),’’ (EPA–450/4–91–017) datedJuly 1991. Meteorological data utilizedin PC–BEIS was collected in accordancewith USEPA guidance. The ten warmestdays from the period between 1988 to1990 with the highest hourly peakozone concentrations in each ozonenonattainment areas was collected andreviewed. As required by USEPAguidance, the fourth highest dailymaximum ozone concentration for eachnonattainment area was selected andutilized in the model. The Stateprovided hard copy documentation as tothe meteorological inputs utilized andPC–BEIS output files for the biogenicemissions inventory for the Canton,Cincinnati, Cleveland and Youngstownnonattainment areas.

IV. Approval of the EmissionsInventories

In a letter addressed to RobertHodanbosi, Chief, Division of AirPollution Control, OEPA, dated March23, 1995, USEPA provided commentson the 1990 base-year ozone emissionsinventories submitted for the Canton,Cincinnati, Cleveland and Youngstownareas. These comments addressedcorrections that would be needed beforethe inventories could be finallyapproved.

In a letter addressed to WilliamMacDowell, Chief, RegulationDevelopment Section, dated June 8,1995, the State of Ohio provided aresponse to comments on the area, on-road and off-road mobile, and biogenicsource emissions. The USEPA hasreviewed these responses and finds thatthe State has satisfied the Agency’scomments and that the emissionsinventory for the area, on-road mobile,non-road mobile, and biogenic sourcesis approvable.

However, the State has not respondedto the point source emissions inventorycomments (these comments addressedpossible facilities that may be requiredto be included in the point source

emissions inventory). The State iscurrently making determinationsregarding such facilities, and oncecompleted, will submit the revisedpoint source inventory to be included aspart of this SIP revision. Please note thatthe State has satisfied the proceduralrequirements for the development of thepoint source emissions inventory.Therefore, in anticipation of thecorrections, USEPA is proposing toapprove the State’s point sourceemissions inventory. No further actionwill occur on this SIP revision until theState submits (and USEPA completes)its review of the response to the pointsource emissions comments.

V. Summary of Ozone EmissionsInventory

The following summary indicates theemissions inventories for an averageozone summer weekday for the Canton,Cincinnati, Cleveland and Youngstownozone nonattainment areas. Please notethat the point source emissionsestimates stated may be revised (pleaserefer to ‘‘Approval of the EmissionsInventories’’ section above). Theemissions are stated in tons per ozoneseason weekday:

CANTON OZONE NONATTAINMENTAREA

[Tons per day]

Source type VOC CO NOX

Point sources .... 12.36 6.51 40.11Area sources ..... 18.93 1.54 0.98On-road mobile

sources .......... 31.66 188.59 16.24Off-road mobile

sources .......... 23.72 63.00 15.89Biogenic sources 36.66 ........... ...........

Totals ...... 123.33 259.64 73.22

CINCINNATI OZONE NONATTAINMENTAREA

[Tons per day]


Point sources 70.93 88.67 280.00Area sources . 64.48 5.41 2.29On-road mo-

bile sources 125.84 793.16 130.68Off-road mo-

bile sources 37.37 274.57 34.45Biogenic

sources ...... 109.04 ............... ...........

Totals .. 407.66 1161.81 447.42


CLEVELAND/AKRON OZONE NONATTAINMENT AREA

[Tons per day]


Point sources ....................................................................................................................................................... 80.24 707.32 244.77Area sources ........................................................................................................................................................ 120.86 12.64 9.54On-road mobile sources ....................................................................................................................................... 248.37 1,402.01 176.58Off-road mobile sources ....................................................................................................................................... 80.19 808.32 70.92Biogenic sources .................................................................................................................................................. 195.32 ............... ...............

Totals ......................................................................................................................................................... 724.98 2,930.29 501.81

YOUNGSTOWN OZONE NONATTAINMENTAREA

[Tons per day]


Point sources .... 16.33 18.74 23.25Area sources ..... 27.80 13.02 7.00On-road mobile

sources .......... 48.97 293.54 29.87Off-road mobile

sources .......... 13.48 87.88 10.98Biogenic sources 50.26 ........... ...........

Totals ...... 156.84 413.18 71.10

VI. Proposed Rulemaking Action andSolicitation of Public Comment

Public comments are solicited onUSEPA’s proposed rulemaking action.Public comments must be received byAugust 9, 1995. Notice of final action onthe requested approval of the emissionsinventories will be provided to the Stateof Ohio by letter, and a subsequentnotice of such action will be publishedin the Federal Register. Subsequent tothe submittal of acceptable point sourcecorrections, USEPA will issue a letter tothe State of Ohio providing notice ofUSEPA’s final action on the requestedapproval of the inventories. Theeffective date of these SIP revisionsshall be the date that the letter notice isissued. Interested parties wishing tocomment on these SIP revisions, or onUSEPA’s approval by means of the letternotice procedure, must submit writtencomments by August 9, 1995. USEPAplans to announce such final action inthe Federal Register within 30 days ofits effective date.

VII. Proposed Action

The USEPA is proposing to approve,with ‘‘letter notice’’ of any final action,Ohio’s 1990 base-year ozone precursoremissions inventories for the Canton(Stark County); Cincinnati (Butler,Clermont, Hamilton and WarrenCounties); Cleveland (Ashtabula,Cuyahoga, Geauga, Lake, Lorain,Medina, Portage and Summit Counties);and Youngstown (Mahoning andTrumbull Counties) ozonenonattainment areas.

Please note that no further action willoccur on this SIP revision until the Statesubmits (and USEPA completes itsreview) on the response to the pointsource emissions inventory comments.

VIII. General Provisions

Nothing in this action should beconstrued as permitting, allowing orestablishing a precedent for any futurerequest for revision to any SIP. Eachrequest for revision to any SIP shall beconsidered separately in light of specifictechnical, economic, and environmentalfactors and in relation to relevantstatutory and regulatory requirements.

This action has been classified as aTable 3 action by the RegionalAdministrator under the procedurespublished in the Federal Register onJanuary 19, 1989 (54 FR 2214–2225), asrevised by an October 4, 1993memorandum from Michael H. Shapiro,Acting Assistant Administrator for Airand Radiation. The Office ofManagement and Budget has exemptedthis regulatory action from ExecutiveOrder 12866 review.

Under the Regulatory Flexibility Act,5 U.S.C. 600 et seq., USEPA mustprepare a regulatory flexibility analysisassessing the impact of any proposed orfinal rule on small entities (5 U.S.C. 603and 604). Alternatively, USEPA maycertify that the rule will not have asignificant impact on a substantialnumber of small entities. Small entitiesinclude small businesses, small not-for-profit enterprises, and governmententities with jurisdiction overpopulations of less than 50,000.


Air pollution control, Carbonmonoxide, Intergovernmental relations,Nitrogen dioxide, Ozone, Reporting andrecordkeeping requirements, Volatileorganic compounds.

Authority: 42 U.S.C. 7401–7671(q).Dated: June 28, 1995.

David A. Ullrich,Acting Regional Administrator.[FR Doc. 95–16832 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–P

40 CFR Part 70

[AD–FRL–5256–6]

Clean Air Act Proposed InterimApproval of Operating PermitsProgram; Santa Barbara County AirPollution Control District, California

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Proposed rule.

SUMMARY: The EPA proposes interimapproval of the Operating PermitsProgram submitted by the Santa BarbaraCounty Air Pollution Control District(Santa Barbara or District) for thepurpose of complying with Federalrequirements for an approvable Stateprogram to issue operating permits to allmajor stationary sources, and to certainother sources.DATES: Comments on this proposedaction must be received in writing byAugust 9, 1995.ADDRESSES: Comments should beaddressed to Martha Larson, Mail CodeA–5–2, U.S. Environmental ProtectionAgency, Region IX, Air and ToxicsDivision, 75 Hawthorne Street, SanFrancisco, CA 94105.

Copies of the District submittal andother supporting information used indeveloping the proposed interimapproval are available for inspectionduring normal business hours at thefollowing location: U.S. EnvironmentalProtection Agency, Region IX, 75Hawthorne Street, San Francisco, CA94105.FOR FURTHER INFORMATION CONTACT:Martha Larson (telephone: 415/744–1238), Mail Code A–5–2, U.S.Environmental Protection Agency,Region IX, Air and Toxics Division, 75Hawthorne Street, San Francisco, CA94105.


I. Background and Purpose

As required under title V of the CleanAir Act (Act) as amended (1990), EPAhas promulgated rules that define theminimum elements of an approvableState operating permits program and the


corresponding standards andprocedures by which EPA will approve,oversee, and withdraw approval of Stateoperating permits programs (see 57 FR32250 (July 21, 1992)). These rules arecodified at 40 CFR part 70 (part 70).Title V requires States to develop, andsubmit to EPA, programs for issuingthese operating permits to all majorstationary sources and to certain othersources.

The Act requires that States developand submit title V programs to EPA byNovember 15, 1993, and that EPA act toapprove or disapprove each programwithin 1 year after receiving thesubmittal. The EPA’s program reviewoccurs pursuant to section 502 of theAct and the part 70 regulations, whichtogether outline criteria for approval ordisapproval. Where a programsubstantially, but not fully, meets therequirements of part 70, EPA may grantthe program interim approval for aperiod of up to 2 years. If EPA has notfully approved a program by 2 yearsafter the November 15, 1993 date, or bythe end of an interim program, it mustestablish and implement a federalprogram.

II. Proposed Action and Implications

A. Analysis of State Submission

The analysis contained in this noticefocuses on specific elements of SantaBarbara’s title V operating permitsprogram that must be corrected to meetthe minimum requirements of 40 CFRpart 70. The full program submittal, theTechnical Support Document (TSD),which contains a detailed analysis ofthe submittal, and other relevantmaterials are available for inspection aspart of the public docket. The docketmay be viewed during regular businesshours at the address listed above.

1. Title V Program Support Materials

Santa Barbara’s original title Vprogram was submitted by theCalifornia Air Resources Board (CARB)on November 15, 1993. Additionalmaterial was submitted on March 2,1994, August 8, 1994, December 8, 1994and June 15, 1995. The submittal wasfound to be complete on January 13,1994. The Governor’s letter requestingsource category-limited interimapproval, California enablinglegislation, and Attorney General’s legalopinion were submitted by CARB for alldistricts in California and therefore werenot included separately in SantaBarbara’s submittal. The Santa Barbarasubmission does contain a completeprogram description, Districtimplementing and supportingregulations, and all other program

documentation required by § 70.4. Animplementation agreement is currentlybeing developed between Santa Barbaraand EPA.

2. Title V Operating Permit Regulationsand Program Implementation

Santa Barbara’s regulations adopted orrevised to implement title V includeRegulation XIII, Part 70 OperatingPermit Program, adopted November 9,1993; Rule 202, Exemptions to Rule 201:Sections 202.A.1., 202.A.2., 202.A.3.,202.C., 202.D., 202.E., and 202.F.,adopted March 10, 1992; Rule 205,Standards for Granting Applications:Sections 205.C.1.a.23., definition of‘‘Net Emissions Increase,’’205.C.5.b.1.a.2.c., significant increasesfor new source nonattainment review,and 205.C.5.c.6., public notification andcomment period, adopted July 30, 1991;and Rule 210, Fees, adopted May 7,1991. The regulations substantially meetthe requirements of 40 CFR part 70,§§ 70.2 and 70.3 for applicability;§§ 70.4, 70.5, and 70.6 for permitcontent, including operationalflexibility; § 70.7 for publicparticipation and minor permitmodifications; § 70.5 for completeapplication forms; and § 70.11 forenforcement authority. Although theregulations substantially meet part 70requirements, there are severaldeficiencies in the program that areoutlined under Section II.B. below asinterim approval issues and furtherdescribed in the Technical SupportDocument.

a. Variances—Santa Barbara hasauthority under State and local law toissue a variance from State and localrequirements. Sections 42350 et sec. ofthe California Health and Safety Codeand District Regulation V, Rule 506allow the District to grant relief fromenforcement action for permitviolations. In the opinion submittedwith California operating permitprograms, California’s Attorney Generalstates that ‘‘(t)he variance process is notpart of the Title V permitting processand does not affect federal enforcementfor violations of the requirements setforth in a Title V permit.’’ (Emphasis inoriginal.)

The EPA regards these State anddistrict variance provisions as whollyexternal to the program submitted forapproval under part 70, andconsequently, is proposing to take noaction on these provisions of State andlocal law. The EPA has no authority toapprove provisions of State or local law,such as the variance provisions referredto, that are inconsistent with the Act.The EPA does not recognize the abilityof a permitting authority to grant relief

from the duty to comply with a federallyenforceable part 70 permit, exceptwhere such relief is granted throughprocedures allowed by part 70. A part70 permit may be issued or revised(consistent with part 70 permittingprocedures) to incorporate those termsof a variance that are consistent withapplicable requirements. A part 70permit may also incorporate, via part 70permit issuance or modificationprocedures, the schedule of complianceset forth in a variance. However, EPAreserves the right to pursue enforcementof applicable requirementsnotwithstanding the existence of acompliance schedule in a permit tooperate. This is consistent with 40 CFR70.5(c)(8)(iii)(C), which states that aschedule of compliance ‘‘shall besupplemental to, and shall not sanctionnoncompliance with, the applicablerequirements on which it is based.’’

b. Permit Content—Santa Barbara’spermit content rule (Rule 1303) does notinclude certain important § 70.6 permitcontent requirements. Santa Barbara’srule does not require the level of detailregarding recordkeeping associated withmonitoring found in § 70.6(a)(3)(ii) (A)and (B). Paragraph D.1.f. of Rule 1303more generally addresses therequirements for recordkeepingassociated with monitoring. Paragraph1303.D.1.f. provides that operatingpermits issued pursuant to this rule willcontain conditions establishingapplicable recordkeeping requirements.Although 1303.D.1.f. does not explicitlystate the recordkeeping requirementsassociated with monitoring, theparagraph’s general language isconsistent with the requirements of§ 70.6(a)(3)(ii) (A) and (B).

In addition to lacking specificrecordkeeping requirements of § 70.6,paragraph 1303.D.1.b. of Santa Barbara’srule does not require the permit tocontain identification of any differencein form from the applicable requirementupon which a term or condition isbased, as is required under§ 70.6(a)(1)(ii). Additionally, SantaBarbara’s definition of ‘‘prompt’’reporting in the case of deviations,found in 1303.D.1.g, applies only todeviations due to emergency upsetconditions, and does not define‘‘prompt’’ for all deviations, as isrequired under § 70.6(a)(3)(iii)(B).

Santa Barbara’s part 70 programsubmittal included a ‘‘Standard PermitFormat,’’ (Appendix B–1, submittedNovember 15, 1993). The conditions ofthe Standard Permit Format includedconditions that would correct thedeficiencies identified above. Forinterim approval, EPA is specificallyapproving the Standard Permit Format


that was submitted as part of SantaBarbara’s part 70 program [Appendix B–1, Sections C, E.3.c through h, and E.6,submitted November 15, 1993.] Anymodifications to these sections of theStandard Permit Format must beapproved by EPA. Failure to includethese conditions in part 70 permits willbe cause for EPA to object to a Districtoperating permit. See § 70.8(c)(1). Inorder to receive full approval, SantaBarbara must modify Rule XIII toinclude the level of detail regardingrecordkeeping associated withmonitoring found in § 70.6(a)(3)(ii) (A)and (B), identification of difference inform from the applicable requirement,consistent with the requirements of§ 70.6(a)(1)(ii), and definition of‘‘prompt’’, consistent with§ 70.6(a)(3)(iii)(B).

c. Insignificant Activities—Section70.4(b)(2) requires States to include intheir part 70 programs any criteria usedto determine insignificant activities oremission levels for the purpose ofdetermining complete applications.Section 70.5(c) states that an applicationfor a part 70 permit may not omitinformation needed to determine theapplicability of, or to impose, anyapplicable requirement, or to evaluateappropriate fee amounts. Section 70.5(c)also states that EPA may approve, aspart of a State program, a list ofinsignificant activities and emissionslevels which need not be included inpermit applications. Under part 70, aState must request and EPA mustapprove as part of that State’s programany activity or emission level that theState wishes to consider insignificant.Part 70, however, does not establishappropriate emission levels forinsignificant activities, relying insteadon a case-by-case determination ofappropriate levels based on theparticular circumstances of the part 70program under review.

Santa Barbara submitted District Rule202, its current permit exemption rule,as its list of insignificant activities. It isclear that Rule 202 was not developedwith the purpose of defininginsignificant activities under theDistrict’s title V program in mind; theapplicability provisions of the rule statethat the exemptions apply to therequirements of Rule 201, the Districtrequirements for obtaining Authority toConstruct permits and non-federallyenforceable Permits to Operate. SantaBarbara did not provide EPA withcriteria used to develop the exemptionslist, information on the level ofemissions from the activities, nor witha demonstration that these activities arenot likely to be subject to an applicablerequirement. Therefore, EPA cannot

propose full approval of the list as thebasis for determining insignificantactivities.

For other State and district programs,EPA has proposed to accept, assufficient for full approval, emissionlevels for insignificant activities of 2tons per year for criteria pollutants andthe lesser of 1000 pounds per year,Section 112(g) de minimis levels, orother title I significant modificationlevels for hazardous air pollutants(HAP) and other toxics (40 CFR52.21(b)(23)(i)). The EPA believes thatthese levels are sufficiently below theapplicability thresholds of manyapplicable requirements to assure thatno unit potentially subject to anapplicable requirement is left off a titleV application. The EPA is requestingcomment on the appropriateness ofthese emission levels for determininginsignificant activities in Santa Barbara.This request for comment is notintended to restrict the ability of Statesor districts, including Santa Barbara, topropose, and EPA to approve, differentemission levels if the State or districtdemonstrates that such alternativeemission levels are insignificantcompared to the level of emissions fromand types of units that are permitted orsubject to applicable requirements.

d. Definition of Title I Modification—Among the several criteria that SantaBarbara includes in its definition of‘‘significant part 70 permitmodification’’ is the provision that it notincluded a ‘‘minor permitmodification.’’ Santa Barbara’sexclusion of minor permit modificationsas well as its definition of ‘‘title I (ormajor) modification’’ to include onlymodifications that are major underfederal NSR and PSD resulting in a‘significant’ net emissions increase, or anew or modified HAPs source resultingin a ‘de minimis’ increase of HAPs,clearly indicates that Santa Barbara doesnot interpret ‘‘title I modification’’ toinclude ‘‘minor NSR changes.’’Additionally, Santa Barbara’s definitionof ‘‘title I modification’’ does notinclude modifications under part 60.Santa Barbara’s definition of‘‘significant part 70 permitmodification’’ includes only ‘‘Anyequivalent or identical replacement ofan emissions unit that is subject tostandards promulgated under CAA,sections 111 or 112.’’ Therefore, SantaBarbara’s rule would not require allmodifications under part 60 to beprocessed as significant permitrevisions. Part 70 requires allmodifications under title I of the Act tobe processed as significant permitmodifications (§ 70.7(e)(2)(i)(A)(5)). TheEPA is currently in the process of

determining the proper definition of‘‘title I modification.’’ As furtherexplained below, EPA has solicitedpublic comment on whether the phrase‘‘modification under any provision oftitle I of the Act’’ in 40 CFR70.7(e)(2)(i)(A)(5) should be interpretedto mean literally any change at a sourcethat would trigger permitting authorityreview under regulations approved orpromulgated under title I of the Act.This would include Statepreconstruction review programsapproved by EPA as part of the StateImplementation Plan under section110(a)(2)(C) of the Clean Air Act.

On August 29, 1994, EPA proposedrevisions to the interim approval criteriain 40 CFR 70.4(d) to, among otherthings, allow State programs with amore narrow definition of ‘‘title Imodification’’ to receive interimapproval (59 FR 44572). The Agencyexplained its view that the betterreading of ‘‘title I modification’’includes minor NSR, and solicitedpublic comment on the properinterpretation of that term (59 FR44573). The Agency stated that if, afterconsidering the public comments, itcontinued to believe that the phrase‘‘title I modification’’ should beinterpreted as including minor NSRchanges, it would revise the interimapproval criteria as needed to allowStates with a narrower definition to beeligible for interim approval.

Santa Barbara’s exclusion of certaintypes of modifications under part 60from the definition of ‘‘title I (or major)modification’’ and ‘‘significant part 70permit revision’’ is an interim approvalissue. EPA’s initial part 70 proposal (56FR 21712) identified part 60modifications as title I modifications.No comment was received on theinclusion of part 60 modifications in thedefinition of ‘‘title I modification,’’ andEPA is not considering modifying thedefinition to remove modificationsunder part 60. With respect to minorNSR, the EPA hopes to finalize itsrulemaking revising the interimapproval criteria under 40 CFR 70.4(d)expeditiously. If EPA establishes in itsrulemaking that the definition of ‘‘titleI modification’’ can be interpreted toexclude changes reviewed under minorNSR programs, Santa Barbara’sexclusion of minor new source reviewfrom the definition of ‘‘significant part70 permit modification’’ andinterpretation of ‘‘title I (or major)modification’’ would be consistent withpart 70. Conversely, if EPA establishesthrough the rulemaking that thedefinition of ‘‘title I modification’’ mustinclude changes reviewed under minorNSR, Santa Barbara’s definition and


interpretation will become a basis forinterim approval. If the definition andinterpretation become a basis for interimapproval as a result of EPA’srulemaking, Santa Barbara would berequired to revise its definition andinterpretation to include minor NSR inaddition to revising the definition andinterpretation to include all part 60modifications in order to conform to therequirements of part 70.

Accordingly, today’s proposedapproval does not identify SantaBarbara’s exclusion of minor new sourcereview from the definition of‘‘significant part 70 permitmodification’’ and interpretation of‘‘title I (or major) modification’’ asnecessary grounds for either interimapproval or disapproval. EPA does notbelieve that it is appropriate todetermine whether this is a programdeficiency until EPA completes itsrulemaking on this issue. Santa Barbarasubmitted a June 15, 1995 letter fromPeter Cantle, Engineering DivisionManager, Santa Barbara County AirPollution Control District, committing torevise the definitions of ‘‘title I (ormajor) modification’’ and ‘‘significantpart 70 permit revision’’ to include allmodifications under 40 CFR part 60.EPA has therefore identified SantaBarbara’s definitions of ‘‘significationpart 70 permit modification’’ and ‘‘titleI (or major) modification’’ as an interimapproval issue on the basis that thedefinitions do not adequately includemodifications under part 60.

3. Permit Fee DemonstrationSection 502(b)(3) of the Act requires

that each permitting authority collectfees sufficient to cover all reasonabledirect and indirect costs required todevelop and administer its title Voperating permits program. Each title Vprogram submittal must contain either adetailed demonstration of fee adequacyor a demonstration that aggregate feescollected from title V sources meet orexceed $25 per ton per year (adjustedannually based on the Consumer PriceIndex (CPI), relative to 1989 CPI). The$25 per ton amount is presumed, forprogram approval, to be sufficient tocover all reasonable program costs andis thus referred to as the ‘‘presumptiveminimum,’’ (40 CFR 70.9(b)(2)(i)).

Santa Barbara has opted to make apresumptive minimum feedemonstration. The fees collected underSanta Barbara’s existing fee schedule inRule 210 results in title V facilitiespaying an average of $112.20 perpermitted ton in permitting andemissions fees. Santa Barbara calculatedits fee level at $112.20 per ton by addingup the annual permit equipment and

emissions fees paid by sourcesidentified as title V facilities($2,373,000), and dividing that numberby the permitted emissions (tons peryear of regulated air pollutants) fromthose facilities.

In addition, Santa Barbara’s title V feerule (Rule 1304.D.11) requires that allcosts incurred by the District forissuance of Part 70 permits be‘‘reimbursable costs.’’ This will result inadditional fees of $119,000 per year, anadditional $20.65 per ton of actualemissions, as calculated by the District.Based on a conservative billing rate of$80 per hour, the District expectsrevenues of $119,000 annually. Thesefees combined result in collection of anamount that is well above thepresumptive minimum. The Districtdoes not specifically require thisemissions-based fee to be adjustedannually based upon the CPI. However,the District meets this requirement as apractical matter, because SantaBarbara’s fees are significantly above thepresumptive minimum. Santa Barbara’sfee schedule was developed based on anestimation of workload associated withadministration of the title V program.For more information, see Section III.Cof Santa Barbara’s Title V OperatingPermit Program Description, andAppendix B–10 of the programsubmittal, available in the docket.

4. Provisions Implementing theRequirements of Other Titles of the Act

a. Authority and Commitments forSection 112 Implementation—SantaBarbara has demonstrated in its title Vprogram submittal adequate legalauthority to implement and enforce allsection 112 requirements through thetitle V permit. This legal authority iscontained in the State of Californiaenabling legislation and in regulatoryprovisions defining ‘‘federallyenforceable requirements’’ and requiringeach permit to incorporate conditionsthat assure compliance with all suchfederally enforceable requirements. EPAhas determined that this legal authorityis sufficient to allow Santa Barbara toissue permits that assure compliancewith all Section 112 requirements.

EPA is interpreting the above legalauthority to mean that Santa Barbara isable to carry out all Section 112activities. For further rationale on thisinterpretation, please refer to theTechnical Support Documentaccompanying this rulemaking and theApril 13, 1993 guidance memorandumtitled ‘‘Title V Program ApprovalCriteria for Section 112 Activities,’’signed by John Seitz, Director of theOffice of Air Quality Planning andStandards, U.S. EPA.

b. Authority and Commitments forTitle IV Implementation—Santa Barbaracertified in a letter from Peter Cantle,Engineering Division Manager, SantaBarbara County Air Pollution ControlDistrict, dated March 2, 1994, that thereare no acid rain sources in the District.Santa Barbara committed in the March2, 1994 letter to expeditiously adopt theappropriate legal authority necessary toissue timely Title IV permits to new orexisting sources that become subject toor opt into Title IV.

B. Proposed Interim Approval andImplications

The EPA is proposing to grant interimapproval to the operating permitsprogram submitted by CARB on behalfof the Santa Barbara County AirPollution Control District on November15, 1993, and supplemented on March2, 1994, August 8, 1994, December 8,1994, and June 15, 1995. If EPA were tofinalize this proposed interim approval,it would extend for two years followingthe effective date of final interimapproval, and could not be renewed.During the interim approval period,Santa Barbara would be protected fromsanctions, and EPA would not beobligated to promulgate, administer andenforce a federal permits program forthe District. Permits issued under aprogram with interim approval have fullstanding with respect to part 70, and the1-year time period for submittal ofpermit applications by subject sourcesbegins upon the effective date of interimapproval, as does the 3-year time periodfor processing the initial permitapplications.

Following final interim approval, ifthe District failed to submit a completecorrective program for full approval bythe date 6 months before expiration ofthe interim approval, EPA would startan 18-month clock for mandatorysanctions. If Santa Barbara then failed tosubmit a corrective program that EPAfound complete before the expiration ofthat 18-month period, EPA would berequired to apply one of the sanctionsin section 179(b) of the Act, whichwould remain in effect until EPAdetermined that the District hadcorrected the deficiency by submitting acomplete corrective program. Moreover,if the Administrator found a lack ofgood faith on the part of the District,both sanctions under section 179(b)would apply after the expiration of the18-month period until theAdministrator determined that theDistrict had come into compliance. Inany case, if, six months after applicationof the first sanction, the District still hadnot submitted a corrective program that


EPA found complete, a second sanctionwould be required.

If, following final interim approval,EPA were to disapprove Santa Barbara’scomplete corrective program, EPAwould be required to apply one of thesection 179(b) sanctions on the date 18months after the effective date of thedisapproval, unless prior to that date theDistrict had submitted a revisedprogram and EPA had determined thatit corrected the deficiencies thatprompted the disapproval. Moreover, ifthe Administrator found a lack of goodfaith on the part of the District, bothsanctions under section 179(b) wouldapply after the expiration of the 18-month period until the Administratordetermined that the District had comeinto compliance. In all cases, if, sixmonths after EPA applied the firstsanction, Santa Barbara had notsubmitted a revised program that EPAhad determined corrected thedeficiencies that prompted disapproval,a second sanction would be required.

In addition, discretionary sanctionsmay be applied where warranted anytime after the end of an interim approvalperiod if a district has not timelysubmitted a complete correctiveprogram or EPA has disapproved asubmitted corrective program.Moreover, if EPA has not granted fullapproval to a district title V operatingpermits program by the expiration of aninterim approval and that expirationoccurs after November 15, 1995, EPAmust promulgate, administer andenforce a federal permits program forthat district upon interim approvalexpiration.

1. Santa Barbara’s Title V OperatingPermits Program

If EPA finalizes this interim approval,Santa Barbara must make the followingchanges, or changes that have the sameeffect, to receive full approval (allrequired revisions are to District RuleXIII unless otherwise noted):

a. Variances—Revise Rule 1305.G(1)to read ‘‘The terms and conditions ofany variance or abatement order thatwould prescribe a compliance scheduleshall be incorporated into the permit asa compliance schedule, to the extentrequired by Part 70 rules.’’

b. Permit Content—Revise Rule1303.D.1.f. permit content requirementsto provide adequate specificity withregard to the applicable recordkeepingrequirements. See § 70.6(a)(3)(ii)(A) and(B).

c. Insignificant Activities—Provide ademonstration that activities that areexempt from permitting under Rule XIII,(pursuant to rule 202, the District’spermit exemption list) are truly

insignificant and are not likely to besubject to an applicable requirement.Alternatively, Rule XIII may restrict theexemptions to activities that are notlikely to be subject to an applicablerequirement and emit less than District-established emission levels. The Districtshould establish separate emissionlevels for HAP and for other regulatedpollutants and demonstrate that theseemission levels are insignificantcompared to the level of emissions fromand type of units that are required to bepermitted or subject to applicablerequirements. See § 70.4(b)(2).

Additionally, Revise Rule XIII torequire that insignificant activities thatare exempted because of size orproduction rate be listed in the permitapplication. See § 70.5(c). See1302.D.1.f., Definition of insignificantactivities.

Additionally, Revise Rule 1301definition of ‘‘Insignificant Activities’’to delete the last sentence, whichcontradicts the requirement thatapplications may not omit informationneeded to determine the applicabilityof, or to impose, any applicablerequirement, or to evaluate the feeamount required. See § 70.5(c).

d. Definition of Administrative PermitAmendment—Revise 1301, definition of‘‘Administrative Permit Amendment’’part 6. Santa Barbara must define byrule what ‘‘other changes’’ will bedetermined to be administrative permitamendments. In order for ‘‘otherchanges’’ to qualify as an administrativepermit amendment, the specific changesmust be approved by the Administratoras part of the part 70 program. See§ 70.7(d)(1)(iv).

e. Operational FlexibilityNotification—Rule 1304.E.2 and E.3must be revised to incorporate arequirement that sources notify EPA ofchanges made under the operationalflexibility provisions. See § 70.4(b)(12).

f. Public Notification Requirement—Revise Rule 1304.D.6 to include notice‘‘by other means if necessary to assureadequate notice to the affected public.’’See § 70.7(h)(1).

g. Significant Changes to MonitoringRequirements—Revise Rule 1301,definition of ‘‘Minor PermitModification’’ part (4) to read ‘‘Themodification does not involve anyrelaxation of any existing reporting orrecordkeeping requirements in thepermit, or any significant changes toexisting monitoring requirements in thepermit.’’ See § 70.7(e)(2)(i)(2) and§ 70.7(e)(4)(i).

h. Form of Applicable Requirement—The rule does not require theidentification of any difference in formfrom the applicable requirement upon

which the term or condition is based.Regulation XIII must be revised toinclude this requirement. Thisrequirement is included in the StandardPermit Format. EPA is specificallyapproving the Standard Permit Formatthat was submitted as part of SantaBarbara’s part 70 program (Appendix B–1, Section C, November 15, 1993submittal). Any modifications to thestandard permit format must beapproved by EPA. Failure to includethese conditions in part 70 permits willbe cause for EPA to object to a Districtoperating permit. See § 70.6(a)(1)(i).

i. Applicable Requirement Trading—Add emissions trading provisionsconsistent with § 70.6(a)(10), whichrequire that trading must be allowedwhere an applicable requirementprovides for trading increases anddecreases without a case-by-caseapproval.

j. Prompt Reporting of Deviations—Santa Barbara has not defined ‘‘prompt’’in their program with respect toreporting of all deviations. Part 70 of theoperating permits regulations requiresprompt reporting of deviations from thepermit requirements. Section70.6(a)(3)(iii)(B) requires the permittingauthority to define prompt in relation tothe degree and type of deviation likelyto occur and the applicablerequirements. Santa Barbara’srequirement for reporting of deviationsis limited to deviations due toemergency upset conditions. Under part70, deviations include, but are notlimited to, upset conditions. SantaBarbara must revise rule 1303.D.1.g tobe consistent with the more inclusivepart 70 requirement. To make Rule XIIImore inclusive, Rule 1303.D.1.g couldbe revised to read ‘‘* * * Deviationsshall be reported within 72 hours of theoccurrence * * *.’’

Although the permit programregulations should define prompt forpurposes of administrative efficiencyand clarity, an acceptable alternative isto define prompt in each individualpermit. Therefore, as an alternative tothe revision to Rule 1303.D.1.g above,Rule XIII could be revised to requireprompt reporting of all deviations, andto require that prompt be defined ineach permit. Rule 1303.D.1.g could berevised to read ‘‘Conditions establishingall applicable reporting requirements;conditions establishing promptreporting of any deviations from permit-stipulated requirement, includingdefinition(s) of ‘‘prompt’’ for alldeviations. All applicable reports shallbe submitted every 6 months and shallbe certified by a responsible official.Deviations due to emergency upsetconditions shall be reported within 72


hours of the occurrence. All otherdeviations shall be reported promptly,as defined in the permittee’s permit.The probable cause of deviations andremedial measure taken to correct thisshall also be reported at this time.’’ TheEPA believes that prompt shouldgenerally be defined as requiringreporting within two to ten days of thedeviation. Two to ten days is sufficienttime in most cases to protect publichealth and safety as well as to providea forewarning of potential problems. Forsources with a low level of excessemissions, a longer time period may beacceptable. However, prompt reportingmust be more frequent than thesemiannual reporting requirement,given this is a distinct reportingobligation under § 70.6(a)(3)(iii)(A).Where ‘‘prompt’’ is defined in theindividual permit but not in theprogram regulations, EPA may vetopermits that do not contain sufficientlyprompt reporting of deviations.

As a third alternative, Santa Barbaracould revise Rule XIII to includedefinitions of ‘‘prompt’’ for other typesof deviations in addition to those causedby emergency upset conditions. Part 70allows the permitting authority to define‘‘prompt’’ in relation to the degree andtype of deviation. Therefore, SantaBarbara may also revise Rule XIII todefine reporting times for other types ofdeviations, if the types of deviations andtheir related reporting times arespecifically defined in Santa Barbara’srule.

Meeting the requirements of§ 70.6(a)(3)(iii)(B) through one of thethree methods outlined above is arequirement for full approval of SantaBarbara’s part 70 program.

k. Exemptions—Delete Rule 1301.B.4.Section 70.3(b) requires that majorsources, affected sources (acid rainsources), and solid waste incineratorsregulated pursuant to section 129(e) ofthe CAA may not be exempted from theprogram. Although section 129(g)(1)(3)of the CAA exempts solid wasteincineration units subject to section3005 of the Solid Waste Disposal Act,part 70 does not exempt these units.Any solid waste incineration unit thatmeets the definition of ‘‘major source’’under part 70 would be subject to therequirement to obtain a part 70 permitregardless of the unit’s applicabilityunder section 129.

l. Recordkeeping for off-permitchanges—Santa Barbara’s rule does notrequire that the permittee keep recordsdescribing off-permit changes and theemissions resulting from these changes.Santa Barbara’s rule must be revised tobe consistent with the requirements of§ 70.4(b)(14)(iv).

m. Definition of Title I Modificationsand Significant Part 70 PermitModifications—Rule 1301 defines‘‘modification’’ to include allmodifications under 40 CFR part 60.However, the definitions of ‘‘title I (ormajor) modification’’ and ‘‘significantpart 70 permit modification’’ do notclearly define all modifications underpart 60 as title I modifications and donot clearly ensure they will be treatedas significant permit modifications. Seediscussion in Section II.A.2.d of thisnotice. Santa Barbara submitted a June15, 1995 letter from Peter Cantle,Engineering Division Manager, SantaBarbara County Air Pollution ControlDistrict, committing to provideinterpretive guidance demonstratingthat all modifications under 40 CFR part60 will be treated as significant permitmodifications. In order to receive finalinterim approval, Santa Barbara mustfinalize and submit to EPA interpretiveguidance demonstrating that allmodifications under 40 CFR part 60 willbe treated as significant permitmodifications. In order to receive fullapproval, Santa Barbara must clarify thedefinitions of ‘‘title I (or major)modification’’ and ‘‘significant part 70permit modification’’ to include allmodifications under 40 CFR part 60.

n. Reporting of an Emergency—Inorder to obtain an affirmative defense inan emergency, Santa Barbara requires inRule 1303.F.d., among other things, thatthe permittee submit a description ofthe emergency within 4 days of theemergency. Santa Barbara must revise1303.F.d to require submittal of noticeof emergency to the permitting authoritywithin 2 working days of the time whenemission limitations were exceeded dueto the emergency, to be consistent with§ 70.6(g)(3)(iv) and in order to maintainthe affirmative defense of emergency.Prior to amending the rule, SantaBarbara should insure that sources areaware that this 2 day notice is necessaryin order to maintain the affirmativedefense. This could be accomplished byincluding a permit condition in allpermits issued that requires notice ofemergency to be submitted within 2days.

2. California Enabling Legislation—Legislative Source Category LimitedInterim Approval Issue

Because California State law currentlyexempts agricultural production sourcesfrom permit requirements, the CaliforniaAir Resources Board has requestedsource category-limited interimapproval for all California districts. TheEPA is proposing to grant sourcecategory-limited interim approval to theoperating permits program submitted by

the California Air Resources Board onbehalf of Santa Barbara on November15, 1993. In order for this program toreceive full approval (and to avoid adisapproval upon the expiration of thisinterim approval), the CaliforniaLegislature must revise the Health andSafety Code to eliminate the exemptionof agricultural production sources fromthe requirement to obtain a permit.

The above described program andlegislative deficiencies must becorrected before Santa Barbara canreceive full program approval. Foradditional information, please refer tothe TSD, which contains a detailedanalysis of Santa Barbara’s operatingpermits program and California’senabling legislation.

3. District Preconstruction PermitProgram Implementing Section 112(g)

The EPA has published aninterpretive notice in the FederalRegister regarding section 112(g) of theAct (60 FR 8333; February 14, 1995).The revised interpretation postpones theeffective date of section 112(g) untilafter EPA has promulgated a ruleaddressing that provision. Theinterpretive notice explains that EPA isconsidering whether the effective dateof section 112(g) should be delayedbeyond the date of promulgation of thefederal rule so as to allow States time toadopt rules implementing the federalrule, and that EPA will provide for anysuch additional delay in the finalsection 112(g) rulemaking. Unless anduntil EPA provides for such anadditional postponement of section112(g), Santa Barbara must be able toimplement section 112(g) during theperiod between promulgation of thefederal section 112(g) rule and adoptionof implementing District regulations.

For this reason, EPA is proposing toapprove the use of Santa Barbara’spreconstruction review program as amechanism to implement section 112(g)during the transition period betweenpromulgation of the section 112(g) ruleand adoption by Santa Barbara of rulesspecifically designed to implementsection 112(g). However, since the solepurpose of this approval is to confirmthat the District has a mechanism toimplement section 112(g) during thetransition period, the approval itselfwill be without effect if EPA decides inthe final section 112(g) rule that therewill be no transition period. The EPA islimiting the duration of this proposedapproval to 12 months followingpromulgation by EPA of the section112(g) rule.


4. Program for Delegation of Section 112Standards as Promulgated

Requirements for approval, specifiedin 40 CFR 70.4(b), encompass section112(l)(5) requirements for approval of aprogram for delegation of section 112standards as promulgated by EPA asthey apply to part 70 sources. Section112(l)(5) requires that the State’sprogram contain adequate authorities,adequate resources for implementation,and an expeditious complianceschedule, which are also requirementsunder part 70. Therefore, EPA is alsoproposing to grant approval undersection 112(l)(5) and 40 CFR 63.91 ofSanta Barbara’s program for receivingdelegation of section 112 standards thatare unchanged from federal standards aspromulgated. California Health andSafety Code section 39658 provides forautomatic adoption by CARB of section112 standards upon promulgation byEPA. Section 39666 of the Health andSafety Code requires that districts thenimplement and enforce these standards.Thus, when section 112 standards areautomatically adopted pursuant tosection 39658, Santa Barbara will havethe authority necessary to acceptdelegation of these standards withoutfurther regulatory action by the District.The details of this mechanism and themeans for finalizing delegation ofstandards will be set forth in aMemorandum of Agreement betweenSanta Barbara and EPA, expected to becompleted prior to approval of SantaBarbara’s section 112(l) program fordelegation of unchanged federalstandards. This program applies to bothexisting and future standards but islimited to sources covered by the part70 program.

III. Administrative Requirements

A. Request for Public Comments

The EPA is requesting comments onall aspects of this proposed interimapproval. Copies of the District’ssubmittal and other information reliedupon for the proposed interim approvalare contained in a docket maintained atthe EPA Regional Office. The docket isan organized and complete file of all theinformation submitted to, or otherwiseconsidered by, EPA in the developmentof this proposed interim approval. Theprincipal purposes of the docket are:

(1) To allow interested parties ameans to identify and locate documentsso that they can effectively participatein the approval process, and

(2) To serve as the record in case ofjudicial review. The EPA will considerany comments received by August 9,1995.

B. Executive Order 12866

The Office of Management and Budgethas exempted this action from ExecutiveOrder 12866 review.

C. Regulatory Flexibility Act

The EPA’s actions under section 502of the Act do not create any newrequirements, but simply addressoperating permits programs submittedto satisfy the requirements of 40 CFRpart 70. Because this action does notimpose any new requirements, it doesnot have a significant impact on asubstantial number of small entities.

D. Unfunded Mandates Act

Under Section 202 of the UnfundedMandates Reform Act of 1995(‘‘Unfunded Mandates Act’’), signedinto law on March 22, 1995, EPA mustprepare a budgetary impact statement toaccompany any proposed or final rulethat includes a federal mandate thatmay result in estimated costs to State,local, or tribal governments in theaggregate; or to the private sector, of$100 million or more. Under section205, EPA must select the most cost-effective and least burdensomealternative that achieves the objectivesof the rule and is consistent withstatutory requirements. Section 203requires EPA to establish a plan forinforming and advising any smallgovernments that may be significantlyor uniquely impacted by the rule.

EPA has determined that theproposed approval action promulgatedtoday does not include a federalmandate that may result in estimatedcosts of $100 million or more to eitherState, local, or tribal governments in theaggregate, or to the private sector. Thisfederal action approves pre-existingrequirements under State or local law,and imposes no new federalrequirements. Accordingly, noadditional costs to State, local, or tribalgovernments, or to the private sector,result from this action.


Environmental protection,Administrative practice and procedure,Air pollution control, Hazardoussubstances, Intergovernmental relations,Operating permits, Reporting andrecordkeeping requirements.

Authority: 42 U.S.C. 7401–7671q.

Dated: June 30, 1995.

Felicia Marcus,Regional Administrator.[FR Doc. 95–16827 Filed 7–7–95; 8:45 am]

BILLING CODE 6560–50–P

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Health Care Financing Administration

42 CFR Part 405

[BPO–121–P]

RIN 0938–AG48

Medicare Program; Telephone andElectronic Requests for Review of PartB Initial Claim Determinations

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Proposed rule.

SUMMARY: This proposed rule wouldallow beneficiaries, providers, andphysicians (and other suppliers), whoare entitled to appeal Medicare Part Binitial claim determinations, to requesta review of the carrier’s initialdetermination by telephone orelectronic transmission. (Currently, arequest for review may be made only inwriting.) Allowing the use of telephoneand electronic requests would expeditethe review process by supplementing,not replacing, the current reviewprocedures. It would also improvecarrier relationships with the providerand beneficiary communities byproviding quick and easy access to theappeals process. (This rule would notprovide for telephone or electronicrequests for review of Part B initialdeterminations made by Peer ReviewOrganizations and Health MaintenanceOrganizations.)DATES: Comments will be considered ifwe receive them at the appropriateaddress, as provided below, no laterthan 5 p.m. on September 8, 1995.ADDRESSES: Mail written comments (1original and 3 copies) to the followingaddress: Health Care FinancingAdministration, Department of Healthand Human Services, Attention: BPO–121–P, P.O. Box 26688, Baltimore, MD21207.

If you prefer, you may deliver yourwritten comments (1 original and 3copies) to one of the followingaddresses:Room 309–G, Hubert H. Humphrey

Building, 200 Independence Avenue,SW., Washington, DC 20201, or

Room C5–09–26, 7500 SecurityBoulevard, Baltimore, MD 21244–1850.Because of staffing and resource

limitations, we cannot accept commentsby facsimile (FAX) transmission. Incommenting, please refer to file codeBPO–121–P. Comments received timelywill be available for public inspection asthey are received, generally beginning


approximately 3 weeks after publicationof a document, in Room 309–G of theDepartment’s offices at 200Independence Avenue, SW.,Washington, DC, on Monday throughFriday of each week from 8:30 a.m. to5 p.m. (phone: (202) 690–7890).

For comments that relate toinformation collection requirements,mail a copy of comments to: AllisonHerron Eydt, HCFA Desk Officer, Officeof Information and Regulatory Affairs,Room 10235, New Executive OfficeBuilding, Washington, DC 20503.FOR FURTHER INFORMATION CONTACT:Rosalind Little, (410) 966–6972.


I. Background

Under current Medicare regulations, ifa party indicates dissatisfaction with aPart B initial determination on a claim,either a review is made in accordancewith regulations set forth in 42 CFR405.807 (Review of initialdetermination) and section 12010 of theMedicare Carriers Manual (effectiveOctober 1990) or the request isdismissed if the appellant is not aproper party. (‘‘Party’’ is defined at§ 405.802 as a person enrolled underPart B of title XVIII, his/her assignee, orother entity having standing in theinitial or appellate proceedings.)

Section 405.807 sets forth the reviewprocess to be followed by a party whois dissatisfied with an initialdetermination by a carrier. A party iscurrently required to file a writtenrequest for review of the initialdetermination with the carrier, theSocial Security Administration, orHCFA within 6 months after the date ofthe notice of the initial determination.The carrier may, upon request by theparty, extend the time period to file arequest for review if it finds the partyhad good cause for failing to request atimely review. The review, anindependent reexamination of the entireclaim, is performed by carrier staff whoplayed no part in making the initialdetermination.

‘‘Supplier’’ is defined at § 400.202 asa physician or other practitioner, or anentity other than a ‘‘provider,’’ thatfurnishes health care services underMedicare. Although ‘‘supplier’’encompasses physicians, for clarity inthis document, we refer to both‘‘physicians’’ and ‘‘suppliers’’.

‘‘Provider’’ is defined at § 400.202 asa hospital, a skilled nursing facility, acomprehensive outpatient rehabilitationfacility, a home health agency, or ahospice, that has in effect an agreementto participate in Medicare, or a clinic, arehabilitation agency, or a public health

agency that has a similar agreement butonly to furnish outpatient physicaltherapy or speech pathology services.

Under section 1879(d) of the SocialSecurity Act (the Act), a provider, or aphysician or other supplier that acceptsassignment to furnish services toMedicare beneficiaries has the sameappeal rights as an individualbeneficiary under certain limitedcircumstances if the issue in disputeinvolves medical necessity or custodialcare or home health denials involvingthe failure to meet homebound orintermittent skilled nursing carerequirements. Additionally, regulationsat 42 CFR part 405, subpart H (AppealsUnder the Medicare Part B Program)provide that a supplier or physician thathas taken assignment of a Part BMedicare claim has the same appealrights as the beneficiary.

II. Proposed Changes to the Proceduresfor Requesting a Review

We propose to change the Medicareregulations at § 405.807 to allow a partyto request a review of a Part B initialclaim determination by telephone or byelectronic transmission, in addition tothe current provisions for a writtenrequest. The term ‘‘electronictransmission’’ would refer to tape-to-tape, disk-to-disk, or any other HCFA-approved electronic media form forelectronic transmission. Fax machinetransmissions would not be considered‘‘electronic transmissions.’’ We haveincluded in this section proposedmethods for allowing parties to requesta review by telephone or electronictransmission.

A. Telephone Requests for ReviewThe notice accompanying the carrier’s

initial determination, which explainshow to initiate a request for review,would include the telephone numberdesignated by the carrier for makingreview requests. If an appellant initiatesa request for review by telephone, thecarrier would assign the request aconfirmation number. During thetelephone discussion, the appellantwould be given the confirmationnumber and the name of the person whoreceived his or her telephone request. Itis important that the confirmationnumber be kept by the party requestinga review. If it is unclear to the carrierthat a request was filed or filed timely,the confirmation number would assistthe carrier in locating its records of thetelephone request. While providing aconfirmation number serves asadditional protection for the appellant,loss of the number would not affectaccess to the appeal process and orappeal records.

We believe that allowing appellants toinitiate a request for review bytelephone would facilitate easier accessto the appeals process. We recognize,however, that there may be instances inwhich the appellants may havedifficulty in reaching a carrier bytelephone. In order to ensure thatappellants who encounter difficultieshave sufficient time to file a writtenrequest for review by the 180-daydeadline, we would limit the period torequest a review by telephone to aperiod of 150 days after the date of thenotice of the initial determination. Thisshorter period for initiating a review bytelephone would afford an appellantwho may be unsuccessful in reaching acarrier by telephone an additional‘‘window of opportunity’’ to make awritten request for review before thetime to appeal expires.

We believe that providing thiswindow would establish a safeguard forappellants who were unable to reach thecarrier by telephone. This safeguard isnecessary because of difficulty verifyingthat the appellant could not reach thecarrier by telephone. Therefore, if theappellant telephoned the carrier on the150th day and could not get through, heor she would still have an additional 30days to submit a written request forreview.

We intend to establish instructions forcarriers that would ensure that the rightto a review is not compromised. Theseinstructions would include, but may notbe limited to, the following:

B. Requests for Review

• The carrier’s initial claim noticemust specify the telephone number thata party dissatisfied with the initialdetermination can call to request areview. The initial claim notice mustalso specify the timeframe for requestingreview by telephone (that is, 150 days),as well as the timeframe for filing awritten request for review (that is, 180days).

• The carrier must inform andeducate the beneficiaries about itstelephone review process through anyone of the following:—Bulletins/newsletters.—Newspaper articles.—Senior citizen groups.—Beneficiary outreach workshops.—Carrier’s customer service/inquiry

department.—Provider relations department.

• The carrier must document alltelephone calls at the time a call isreceived. The carrier must record thedate the appellant called and theconfirmation number assigned to assuretimely filing.


• The carrier must attempt to resolveas many issues as possible during thetelephone conversation. Some telephonereviews may not be processed orcompleted because of the complexity ofissues, need for additionaldocumentation, or other factors. At theend of each telephone review, thecarrier must advise the appellant offurther appeal rights.

• The carrier must give the appellanta written determination advising him orher of the results of the review,regardless of whether a review isrequested by telephone, in writing, orvia electronic transmission.

C. Electronic Requests for ReviewFiling review requests electronically

would be easier and faster for partiesthan submitting a letter or the HCFA–1964 form (Request for Review of PartB Medicare Claim). Electronic requestswould shorten the mailing time forsubmitting review requests andeliminate the paper hassle of hardcopyrequests. Currently, not all of thecarriers have the capacity to receiveelectronic requests for review. However,in the future all carriers will have thecapability to accept electronic requestsfor review from entities that submittheir claims electronically. We proposeto provide for electronic requests forreview but to limit this process to thoseentities that electronically bill theirclaims to a carrier system that has thecapability to receive electronic requestsfor review. We would instruct carriers toinform their billers whenever theyobtain this capability and inform themhow the process works.

The following steps show how theelectronic process is expected to work:

• Once the biller electronicallyreceives notification of the initial claimdetermination from the carrier, he or shemust enter a ‘‘specified code’’ toindicate that the retransmission is arequest for review.

• For each line of the claim beingsubmitted for review, the biller mustindicate the reason for the review in the‘‘Notes’’ field. This request for review istransmitted to the carrier.

• Any additional documentation thebiller wants to submit can be mailed, orwith carrier agreement, faxed to thecarrier.

An appellant would have a 180-dayperiod to request a review of an initialdetermination by electronic means,which is the same time allowed to filea written request for review. Theappellant submitting an electronicrequest for review would receive anonline acknowledgement at the time oftransmission. Therefore, the appellantwould have documentation that a

request for review was filed and thetime of filing. Since the appellant whosubmitted an electronic request wouldhave more control over initiating therequest for review than an appellantwho telephoned for a request, we arenot limiting electronic requests to 150days.

The above explanation is beingfurnished simply to provide an idea ofthe way the process should work.However, should this proposed rule befinally implemented, the above processis not necessarily the exact process thatwill be employed.

III. Reasons for the RevisionsParties to a Part B determination,

particularly physicians who takeassignment, often contact carriers bytelephone to dispute a determinationthat a service was not covered or toobtain information about why they werepaid less than they thought wasreasonable. Sometimes, physicians callbecause they believe the code assignedto the service is incorrect, or they wantto correct some other error they believethe carrier made.

Many beneficiaries raise questionsabout initial determinations if a denialor partial denial of a bill is involved.Beneficiaries often want to know whycharges were reduced, especially if theybelieve the charges were reasonable.

As a result of these calls, carriersfrequently make corrections bytelephone, calling the process areopening, informal review, or othername. This action requiresadministrative funds, even though theparty has not actually used theadministrative review process. Thecarrier, in effect, may do two reviews inplace of one for each instance in whichthe informal action does not satisfy theparty.

A party that calls to inquire about theinitial determination, we believe, wouldbe pleased to know he or she has theoption of writing or calling to request areview. Whenever possible, the carrierwould attempt to resolve issues duringa call and provide a reviewdetermination at the conclusion of thecall. At the end of each telephonereview, the carrier would advise theparty of further appeal rights.

The current review process thatrequires a party to write to request areview takes time and effort, especiallyfor beneficiaries. At times, the partyrequesting a review in writing may haveto wait approximately 45 days to receivea review determination. Our intentionin encouraging telephone requests forreviews is to foster quickcommunication between the review staffand the parties. The proposed

additional means of requesting a reviewby telephone or electronic transmissionwould improve customer service in thefollowing ways:

• Making access to the appealsprocess easier.

• Saving time.• Providing a more prompt response.• Reducing paperwork. (Currently a

party must write a letter or completeHCFA Form 1964 (Request for Review)or submit a completed EOMB to requesta review.)

• Ensuring prompt payments.• Improving our relationship with the

beneficiary and physician/suppliercommunities.

IV. Exclusions From Telephone andElectronic Reviews

We do not intend to provide fortelephone requests for review on Part Bdeterminations made by Peer ReviewOrganizations (PROs) because of thetypes of issues PROs handle. The issuesare usually medically focused andhighly technical. We also believe thisprocess would not be administrativelyefficient and reasonable, if, in mostcases, adjudication cannot occur at thetime of the call. The process couldactually result in delays and/orduplication of effort. We believe theissues and documentation needed toprocess PRO appeals are sufficientlydifferent from other Part B reviews andthe telephone request process would becumbersome for these appeals.

Similarly, we do not intend to providefor telephone requests for review on PartB initial determinations made by HealthMaintenance Organizations (HMOs).Requests for reconsideration of initialdeterminations made by HMOs aregoverned exclusively by 42 CFR part417, subpart Q. Unlike part 473, subpartB (PRO reconsiderations and appealsprocess), there is no cross-reference topart 405, subpart H in part 417, subpartQ.

Electronic requests for review wouldbe available to those billers that billtheir claims to a carrier system that hasthe capability to receive electronicrequests for review. Although PROs maymake the review determination, it is thecarrier or fiscal intermediary’sresponsibility to process anyadjustments to the claim, as a result ofthe review determination. Since thePROs are not involved in the billingprocess, the PROs would not need tohave the capability to receive claimsand/or electronic requests for reviews.

V. Provisions of the ProposedRegulation

Under sections 205(a), 1102(a),1871(a)(1) and 1872 of the Act, the


Secretary has the authority to prescriberegulations as may be necessary toadminister the Medicare program. It isunder these statutory authorities that wepropose to change the Medicareregulations to allow a party to request areview of a Part B initial claimdetermination by telephone or byelectronic transmission.

We propose to revise § 405.807(Review of Initial Determination) asfollows:

• Redesignate existing paragraph (d)as new paragraph (b) and remove thewords ‘‘in writing’’ from newlyredesignated paragraph (b).

• Redesignate existing paragraph (b)as paragraph (c) and revise it to allowthe additional methods of telephone andelectronic transmission for a party(other than a PRO) to request a reviewof an initial determination by a carrier.

• Redesignate existing paragraph (c)as paragraph (d) and revise it to allowfor a period of 150 days after the dateof the notice of the initial determinationfor a party to telephone the carrier andrequest a review.

• Add new paragraph (e) to clarifythat a beneficiary, provider, or attendingpractitioner who is dissatisfied with aPRO initial determination may request areview of an initial determination onlyin writing.

VI. Collection of InformationRequirements

Section 405.807 of this documentcontains information collection andrecordkeeping requirements that aresubject to review by the Office ofManagement and Budget (OMB) underthe Paperwork Reduction Act of 1980(44 U.S.C. 3501 et seq.). These reportingand recordkeeping requirements are noteffective until a notice of OMB’sapproval is published in the FederalRegister. This proposed rule wouldimpose minimal recordkeepingrequirements. We would require carriersto assign a confirmation number to aparty that initiates a request for reviewby telephone. The party would be giventhe confirmation number by the personwho received his or her telephonerequest. We anticipate that theconfirmation number would be the samenumber the carrier uses as its internalcontrol number/documentation number(usually a 13-digit number). If this canbe done, there would not be anyadditional recordkeeping on thecarrier’s part. The carrier is alreadyassigning this number and recording it.

The party who would be given theconfirmation number would have torecord the number. This number wouldconfirm that the party timely filed arequest should that become an issue

later. The confirmation number wouldassist the carrier in locating its record ofthe telephone request. It would take lessthan one minute for the carrier to assignand record the confirmation numberand the same for the party to record theconfirmation number. While providing aconfirmation number serves asadditional protection for the party, lossof the number would not affect accessto the appeal process and/or appealrecords. Organizations and individualsdesiring to submit comments on theinformation collection andrecordkeeping requirements shoulddirect them to the OMB official whosename appears in the ADDRESSES sectionof this preamble.

VII. Response to CommentsBecause of the large number of items

of correspondence we normally receiveon Federal Register documentspublished for comments, we are not ableto acknowledge or respond to themindividually. We will consider allcomments we receive by the date andtime specified in the ‘‘DATES’’ sectionof this preamble, and, if we proceedwith a subsequent document, we willrespond to the comments in thepreamble to that document.

VIII. Regulatory Impact StatementWe generally prepare a regulatory

flexibility analysis that is consistentwith the Regulatory Flexibility Act(RFA) (5 U.S.C. 601 through 612), unlesswe certify that a rule would not have asignificant economic impact on asubstantial number of small entities. Forpurposes of the RFA, carriers andbeneficiaries are not considered to besmall entities. We consider allproviders, physicians, and othersuppliers to be small entities. Under thisproposed rule, beneficiaries, providers,and physicians and other suppliers mayrequest a review of an initial claimdetermination by telephone or throughelectronic transmission. This review isthe first level of appeal for Part B claimsand is performed by carrier staff whohad no part in making the initialdetermination. This review, without thepresence of oral testimony by theappellant party, is considered to be lesscostly to all parties and is a moreexpeditious way of handling complaintsthan a hearing.

Section 1102(b) of the Act requires usto prepare a regulatory impact statementif a rule may have a significant impacton the operations of a substantialnumber of small rural hospitals. Suchan analysis must conform to theprovisions of section 603 of the RFA.For purposes of section 1102(b) of theAct, we define a small rural hospital as

a hospital that is located outside of aMetropolitan Statistical Area and hasfewer than 50 beds.

We are not preparing a regulatoryimpact statement since we havedetermined, and we certify, that thisrule would not have a significanteconomic impact on the operations of asubstantial number of small ruralhospitals.

In accordance with the provisions ofExecutive Order 12866, this proposedrule was not reviewed by the Office ofManagement and Budget.


Administrative practice andprocedure, Health facilities, Healthprofessions, Kidney diseases, Medicare,Reporting and recordkeepingrequirements, Rural areas, X-rays.

42 CFR Part 405 would be amendedas follows:

PART 405—FEDERAL HEALTHINSURANCE FOR THE AGED ANDDISABLED

1. The authority citation for part 405,subpart H is revised to read as follows:

Authority: Secs. 205(a), 1102,1842(b)(3)(C), 1869(b), and 1871, and 1872 ofthe Social Security Act, as amended. (42U.S.C. 405(a), 1302, 1395u(b)(3)(C), 1395ff(b),1395hh and 1395ii.)

Subpart H—Appeals Under theMedicare Part B Program

2. Section 405.807 is revised to readas follows:

§ 405.807 Review of initial determination.(a) General. A party to an initial

determination by a carrier, who isdissatisfied with the initialdetermination, may request that thecarrier review the determination. If areview is requested, the request forreview does not constitute a waiver ofthe right to a hearing (under § 405.815)subsequent to the review.

(b) Definition. Request for review is aclear expression by a party to an initialdetermination that indicates he or she isdissatisfied with the initialdetermination and wants to appeal thematter.

(c) Place and method of filing arequest. Except for the limitation onPRO requests set forth in paragraph (e)of this section, a request by a party fora carrier to review the initialdetermination may be made only in oneof the following ways:

(1) In writing and filed at an office ofthe carrier or at an office of SSA orHCFA.

(2) By telephone to the telephonenumber designated by the carrier as the


appropriate number for its receipt ofrequests for review.

(3) By electronic transmission to thecarrier.

(d) Time of filing request. (1) Fortelephone requests, a party to the initialdetermination may request a review ofthe initial determination within 150days after the date of the notice of theinitial determination.

(2) For requests made in writing or byelectronic transmission, a party to theinitial determination may request areview of the determination within 180days after the date of the notice of theinitial determination.

(3) The carrier may, upon request bythe party affected, extend the period forrequesting the review.

(4) For telephone requests, a party tothe initial determination is notprecluded from later making a writtenor electronic request if unable to contactthe carrier within the 150 daytimeframe. The party has an additional30 days to submit a written or electronicrequest for review.

(e) Exception to telephone andelectronic review requests. A party thatsubmits a request for review of aMedicare Part B initial determination ona claim by a PRO must follow thesubmittal requirements described inparagraph (c)(1) of this section.(Catalog of Federal Domestic AssistanceProgram No. 93.774, Medicare—Supplementary Medical Insurance Program)




[DA 95–1409]

Proposed Reporting Requirements onVideo Dialtone Costs andJurisdictional Separations for LocalExchange Carriers Offering VideoDialtone Service

AGENCY: Federal CommunicationsCommission.ACTION: Proposed rule.

SUMMARY: On June 23, 1995, the Bureauissued an Order Inviting Comments thatsolicits comments on proposed reportsfor local exchange carriers offeringvideo dialtone service. The proposedreports would enable the Commission tomonitor video dialtone’s impact on

LECs cost, local telephone rates, and theassignment of costs between federal andstate jurisdictions. The Bureau actedunder authority delegated to it in theVideo Dialtone Reconsideration Order,(FCC 94–269. 10 FCC Rcd 244,326(1994)) which set forth accountingand reporting requirements for LECsthat offer video dialtone service.DATES: Comments are due July 26, 1995.Reply comments are due August 14,1995.ADDRESSES: The FederalCommunications Commission, 1919 MStreet, NW., Washington, DC 20554.FOR FURTHER INFORMATION CONTACT:Kenneth Ackerman, Common CarrierBureau, Accounting and AuditsDivision, (202) 418–0810.SUPPLEMENTARY INFORMATION: OnNovember 7, 1994 the Commissionissued the Video DialtoneReconsideration Order, requiring LECsto establish two sets of subsidiaryaccounting records to capture the sharedand wholly dedicated video dialtoneinvestment, revenue and expense. TheCommission also required thesummaries of these records be filed ona quarterly basis in order to enhance theCommission’s ability to identify andevaluate video dialtone costs for thetariff review process and for futuremonitoring efforts. The Commissiondelegated to the Common CarrierBureau the authority to determine thecontent and format of the subsidiaryrecords and the quarterly reports. Inaddition, the Commission directed theBureau to develop a data collectionprogram to track the impact of videodialtone on local telephone rates andthe assignment of costs between federaland state jurisdictions. The BureauOrder asks parties to comment on itsproposal to establish a quarterly reportand an annual report in which theywould collect and summarize videodialtone investment, expense andrevenue data disaggregated by regulatedand nonregulated classification and alsoby jurisdictional categories. The Orderalso requests that parties identify thecircumstances under which the Bureaucould streamline or lift these proposedreporting requirements and the changesit should make in response to thosecircumstances.

Complete text of this Order InvitingComments is available for inspectionand copying in the Accounting andAudits Division public reference room,2000 L Street, NW., Suite 812,Washington DC. Copies are alsoavailable from InternationalTranscription Service, Inc., at 2100 MStreet, NW., Suite 140, Washington, DC20037, or call (202) 857–3800.

Federal Communications Commission.William F. Caton,Acting Secretary.[FR Doc. 95–16844 Filed 7–7–95; 8:45 am]BILLING CODE 6712–01–M

47 CFR Part 73

[MM Docket No. 95–103, RM–8659]

Radio Broadcasting Services;Wyeville, WI

AGENCY: Federal CommunicationsCommission.ACTION: Proposed rule.

SUMMARY: This document requestscomments on a petition filed byJosephine Miracle requesting theallotment of Channel 267A to Wyeville,Wisconsin, as that community’s firstlocal service. The coordinates forChannel 267A are 44–01–39 and 90–16–35. There is a site restriction 8.7kilometers (5.4 miles) east of thecommunity.DATES: Comments must be filed on orbefore August 21, 1995, and replycomments on or before September 5,1995.ADDRESSES: Federal CommunicationsCommission, Washington, DC 20554. Inaddition to filing comments with theFCC, interested parties should serve thepetitioner, as follows: JosephineMiracle, 206 East 19th Street, Lockport,Illinois 60441.FOR FURTHER INFORMATION CONTACT:Kathleen Scheuerle, Mass MediaBureau, (202) 418–2180.SUPPLEMENTARY INFORMATION: This is asummary of the Commission’s Notice ofProposed Rule Making, MM Docket No.95–103, adopted June 23, 1995, andreleased June 30, 1995. The full text ofthis Commission decision is availablefor inspection and copying duringnormal business hours in theCommission’s Reference Center (Room239), 1919 M Street, NW., Washington,DC. The complete text of this decisionmay also be purchased from theCommission’s copy contractors,International Transcription Services,Inc., 2100 M Street, NW., Suite 140,Washington, DC 20037, (202) 857–3800.

Provisions of the RegulatoryFlexibility Act of l980 do not apply tothis proceeding.

Members of the public should notethat from the time a Notice of ProposedRule Making is issued until the matteris no longer subject to Commissionconsideration or court review, all exparte contacts are prohibited inCommission proceedings, such as thisone, which involve channel allotments.


See 47 CFR 1.1204(b) for rulesgoverning permissible ex parte contact.

For information regarding properfiling procedures for comments, see 47CFR 1.415 and 1.420.


Radio broadcasting.Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 95–16842 Filed 7–7–95; 8:45 am]BILLING CODE 6712–01–F

DEPARTMENT OF TRANSPORTATION

Research and Special ProgramsAdministration

49 CFR Part 195

[Docket PS–140, Notice 2]

RIN 2137–AC34

Areas Unusually Sensitive toEnvironmental Damage

AGENCY: Research and Special ProgramsAdministration (RSPA), DOT.ACTION: Extension of comment period.

SUMMARY: This notice extends thecomment period for the publicworkshop notice on areas unusually

sensitive to environmental damagewhich RSPA published May 26, 1995.DATES: Interested persons are invited tosubmit comments by August 25, 1995.ADDRESSES: Written comments must besubmitted in duplicate and mailed orhand delivered to the Dockets Unit,Room 8421, U.S. Department ofTransportation, 400 Seventh Street,SW., Washington, DC 20590–0001.Please refer to the docket and noticenumbers stated in the heading of thisnotice. All comments and materialscited in this document will be availablefor inspection and copying in Room8421 between 8:30 a.m. and 4:30 p.m.each business day. Non-federalemployee visitors are admitted into theDOT headquarters building through thesouthwest entrance at Seventh and EStreets, SW.FOR FURTHER INFORMATION CONTACT:Christina Sames, (202) 366–4561, aboutthis document, or the Dockets Unit,(202) 366–5046, for copies of thisdocument or other materials in thedocket.SUPPLEMENTARY INFORMATION: On June15 and 16, 1995, RSPA held a publicworkshop on unusually sensitiveenvironmental areas. The workshop’spurpose was to openly discuss thecriteria being considered by RSPA todetermine areas unusually sensitive toenvironmental damage from a

hazardous liquid pipeline release. Thecriteria are needed to carry out statutoryrequirements. RSPA requested thatpersons unable to attend the workshopsubmit written comments by June 26,1995.

The American Petroleum Institute(API) sent a letter to the docketrequesting a 60 day extension be grantedfor comment to the notice announcingthe public workshop on areas unusuallysensitive to environmental damage (60FR 27948). API stated that an extensionwas necessary to allow its members timeto review the information in the notice,to evaluate the potential value of theapproach, and to prepare comments forRSPA’s consideration.

RSPA has decided the 60 dayextension to the public comment periodis reasonable to allow API and others toevaluate and respond to the informationpresented in the public workshopnotice. The comment period willtherefore be extended to close onAugust 25, 1995.

Authority: 49 U.S.C. 60102, 60108, 60109;49 CFR 1.53 and Appendix A to part 106.

Issued in Washington, DC on July 3, 1995.Cesar De Leon,Acting Associate Administrator for PipelineSafety.[FR Doc. 95–16811 Filed 7–7–95; 8:45 am]BILLING CODE 4910–60–P

This section of the FEDERAL REGISTERcontains documents other than rules orproposed rules that are applicable to thepublic. Notices of hearings and investigations,committee meetings, agency decisions andrulings, delegations of authority, filing ofpetitions and applications and agencystatements of organization and functions areexamples of documents appearing in thissection.

Notices Federal Register

35550

Vol. 60, No. 131


DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

[Docket No. 95–031N]

National Advisory Committee onMicrobiological Criteria for Foods;Meeting

The National Advisory Committee onMicrobiological Criteria for Foods(NACMCF) will hold a meeting on July18 through July 20 1995, at the RamadaHotel Denver West, 14707 West Colfax,Golden, Colorado 80401, (303) 279–7611. The committee will meet onTuesday, July 18, from 8:30 AM to 5:00PM and on Thursday, July 20, from 1:00PM to 3:00 PM. Subcommittees willmeet Wednesday, July 19, from 8:30 AMto 5:00 PM, and Thursday, July 20, from8:30 AM to 12:00 PM.

The NACMCF provides advice andrecommendations to the Secretaries ofAgriculture, and Health and HumanServices concerning the development ofmicrobiological criteria by which thesafety and wholesomeness of food canbe assessed. This includes criteriapertaining to microorganisms thatindicate whether food has beenprocessed using good manufacturingpractices. The meeting will include thefollowing activities, as time permits:I. A critique and comment session on the

International Committee onMicrobiological Specifications for Foods’draft document, ‘‘Principles forEstablishment and Application ofMicrobiological Specifications for Foods.’’

II. A discussion on the role of the Food Safetyand Inspection Service in animalproduction food safety.

III. A session to review and proposemodifications to the NACMCF document,‘‘Hazard Analysis and Critical ControlPoint System.’’

IV. A presentation and discussion about theterms and concepts of microbial riskassessment.

V. A discussion on the microbiology of rawproduce as related to public health issues.

VI. A presentation and discussion aboutpathogens other than Vibrio vulnificus inshellfish.

VII. A meeting and discussion on the use ofmicroorganisms as indicators of the safetyof meat, poultry, and egg products.

VIII. Meetings held by the subcommittees.IX. Public comments.

The NACMCF meeting is open to thepublic on a space available basis.Interested persons may file commentsrelating to the activities listed aboveprior to and following the meeting.These comments should be addressedto: Mr. Craig Fedchock, AdvisoryCommittee Specialist, U.S. Departmentof Agriculture, Food Safety andInspection Service, Room 311, 125522nd Street, NW., Washington, DC20250. Background materials areavailable for inspection by contactingMr. Fedchock on (202) 254–2517.

Done at Washington, DC, on: July 5, 1995.Michael R. Taylor,Administrator.[FR Doc. 95–16939 Filed 7–7–95; 8:45 am]BILLING CODE 3410–DM–P

Forest Service

Oregon Coast Provincial AdvisoryCommittee Meeting

AGENCY: Forest Service, USDA.ACTION: Notice of Meeting.

SUMMARY: The Oregon Coast ProvincialAdvisory Committee will meet on July27, 1995, in Depoe Bay, Oregon, at theSurfrider (motel/restaurant), 3115 NWHighway 101 (2 miles north of DepoeBay). The meeting will begin at 9:30a.m. and continue until 3:30 p.m.Agenda items to be covered include: (1)Coastal Landscape Analysis andModeling Study (CLAMS); (2) CoastalOregon Productivity Enhancement(COPE); (3) watershed analysis: fromPresident’s Plan to projects; (4) NorthCoast Adaptive Management Area; (5)powerful questions (discuss/prioritizepowerful questions developed at April27, 1995, meeting), and (7) open publicforum. All Oregon Coast ProvinceAdvisory Committee meetings are opento the public. The ‘‘open forum’’ isscheduled near the conclusion of themeeting. Interested citizens areencouraged to attend. The Committeewelcomes the public’s writtencomments on committee business at anytime.

FOR FURTHER INFORMATION CONTACT:Direct questions regarding this meetingto Harry Bonini, Public Affairs Officer,at (503) 750–7075, or write to ForestSupervisor, Siuslaw National Forest,P.O. Box 1148, Corvallis, Oregon 97339.

Dated: July 3, 1995.Jose Linares,Acting Forest Supervisor.[FR Doc. 95–16836 Filed 7–7–95; 8:45 am]BILLING CODE 3410–11–M

DEPARTMENT OF COMMERCE

International Trade Administration

[A–821–807]

Notice of Antidumping Order:Ferrovanadium and Nitrided VanadiumFrom the Russian Federation

AGENCY: Import Administration,International Trade Administration,Department of Commerce.EFFECTIVE DATE: July 10, 1995.FOR FURTHER INFORMATION CONTACT:David J. Goldberger or Louis Apple,Office of Antidumping Investigations,Import Administration, InternationalTrade Administration, U.S. Departmentof Commerce, 14th Street andConstitution Avenue NW., Washington,DC, 20230; telephone: (202) 482–4136 or(202) 482–1769, respectively.

Applicable Statute and RegulationsUnless otherwise indicated, all

citations to the statute and to theDepartment of Commerce (theDepartment) regulations are in referenceto the provisions as they existed onDecember 31, 1994.

Scope of OrderThe products covered by this order

are ferrovanadium and nitridedvanadium, regardless of grade,chemistry, form or size, unless expresslyexcluded from the scope of this order.Ferrovanadium includes alloyscontaining ferrovanadium as thepredominant element by weight (i.e.,more weight than any other element,except iron in some instances) and atleast 4 percent by weight of iron.Nitrided vanadium includes compoundscontaining vanadium as thepredominant element, by weight, and atleast 5 percent, by weight, of nitrogen.Excluded from the scope of this orderare vanadium additives other than

35551Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Notices

ferrovanadium and nitrided vanadium,such as vanadium-aluminum masteralloys, vanadium chemicals, vanadiumwaste and scrap, vanadium-bearing rawmaterials, such as slag, boiler residues,fly ash, and vanadium oxides.

The products subject to this order arecurrently classifiable under subheadings2850.00.20, 7202.92.00, 7202.99.5040,8112.40.3000, and 8112.40.6000 of theHarmonized Tariff Schedule of theUnited States (HTSUS). Although theHTSUS subheadings are provided forconvenience and customs purposes, ourwritten description of the scope isdispositive.

Antidumping Duty Order

In accordance with sections 735(a) ofthe Tariff Act of 1930, as amended (‘‘theAct’’), the Department of Commerce(‘‘the Department’’) made its finaldetermination that ferrovanadium andnitrided vanadium from the RussianFederation (‘‘Russia’’) is being sold atless than fair value (60 FR 27957, May26, 1995). On July 3, 1995, theInternational Trade Commission (ITC)notified the Department of its finaldetermination, pursuant to section735(b)(1)(A)(i) of the Act, that anindustry in the United States ismaterially injured by reason of importsof the subject merchandise from Russia.

Therefore, all unliquidated entries offerrovanadium and nitrided vanadiumfrom Russia that are entered, orwithdrawn from warehouse, forconsumption on or after January 4,1995, the date of publication of theDepartment’s preliminary determination(60 FR 438), are liable for theassessment of antidumping duties.

In accordance with section 736(a)(1)of the Act, the Department will directCustoms officers to assess, upon furtheradvice by the administering authority,antidumping duties equal to the amountby which the foreign market exceeds theUnited States price for all relevantentries of ferrovanadium and nitridedvanadium from Russia. Customs officersmust require, at the same time asimporters would normally depositestimated duties on this merchandise, acash deposit equal to the estimatedweighted-average antidumping dutymargins as noted below.

The ad valorem weighted-averagedumping margins are as follows:

Manufacturer/Producer/ExporterWeighted-AverageMargin

Galt Alloys, Inc ........................... 3.75

Manufacturer/Producer/ExporterWeighted-AverageMargin

Gesellschaft farElektrometallurgie m.b.H. (andits related companiesShieldalloy Metallurgical Cor-poration, and Metallurg, Inc.) .. 11.72

Odermet ...................................... 10.10Russia-wide Rate ....................... 108.00

This notice constitutes theantidumping duty order with respect toferrovanadium and nitrided vanadiumfrom Russia. Interested parties maycontact the Central Records Unit, RoomB–099 of the Main Commerce Building,for copies of an updated list ofantidumping duty orders currently ineffect.

This order is published in accordancewith section 736(a) of the Act and 19CFR 353.21.

Dated: July 3, 1995.Barbara R. Stafford,Acting Assistant Secretary for ImportAdministration.[FR Doc. 95–16839 Filed 7–7–95; 8:45 am]BILLING CODE 3510–DS–P

[A–357–804]

Notice of Amendment to FinalDetermination and Antidumping DutyOrder: Silicon Metal From Argentina

AGENCY: Import Administration,International Trade Administration,Department of Commerce.EFFECTIVE DATE: July 10, 1995.FOR FURTHER INFORMATION CONTACT:Kristin Heim or Elizabeth Graham,Office of Countervailing Investigations,U.S. Department of Commerce, RoomB099, 14th Street and ConstitutionAvenue, NW., Washington, DC 20230;telephone (202) 482–3798 and 482–4105, respectively.

Summary

On May 30, 1995, the United StatesCourt of International Trade (CIT)affirmed the Department of Commerce’s(the Department) April 7, 1995, remanddetermination and entered FinalJudgment. See American Alloys, Inc. etal. v. United States of America, Slip-Op95–98, Court No. 91–10–00782 (CITMay 30, 1995).

On September 26, 1991, theDepartment published the AntidumpingDuty Order of Silicon Metal fromArgentina (56 FR 48779, September 26,1991). The weight-averaged margin wasdetermined to be 8.65 percent.

The Department prepared the finalresults of redetermination pursuant to aremand order dated December 9, 1994,

from the Court of International Trade,which was based upon the U.S. Court ofAppeals for the Federal Circuit’sopinion in American Alloys, Inc. et al.v. United States, 30 F.3d 1469 (Fed.Cir.1994). In accordance with the FederalCircuit’s order, the Departmentattempted to analyze whether indirecttaxes rebated under Argentina’sReembolso program should beaccounted for in the calculation of U.S.price (USP), pursuant to 19 U.S.C.1677a(d)(1)(C), when determining thedumping margin. Because therespondent refused to allow verification,the Department made its remanddetermination on the basis of bestinformation available (BIA) whichresulted in a dumping margin of 17.87percent.

BackgroundThe Reembolso is a program through

which the Government of Argentinaprovided tax and duty rebates to siliconmetal exporters that purchaseddomestically produced and importedinputs. In the antidumpinginvestigation, the Departmentdetermined that the USP should beadjusted upward by the amount of therebated taxes which the respondent,Electrometalurgica Andina S.A.I.C.(Andina), received upon export of thesubject merchandise to the UnitedStates. Petitioners challenged themethodology the Department used tomake this determination, arguing thatthe Department had failed to investigatewhether the taxes rebated underReembolso were imposed directly uponsilicon metal or inputs physicallyincorporated into silicon metal. Inpetitioners’ view, this inquiry wasnecessary to determine which of thetaxes rebated under the Reembolsoprogram were directly related to theexported merchandise or componentsphysically incorporated therein.

The CIT affirmed the Department’sdetermination that this type of inquirywas relevant to a countervailinginvestigation, but not an antidumpinginvestigation. The CIT also instructedthe Department to examine more closelythe tax pass-through issue. AmericanAlloys, Inc. v. United States, 810 F.Supp. 1294, 1296 (CIT 1993). Petitionerssubsequently appealed and the U.S.Court of Appeals for the Federal Circuitreversed and remanded the lowercourt’s decision, holding that theDepartment must undertake a directly-related inquiry in the antidumpinginvestigation of silicon metal fromArgentina. American Alloys, Inc. v.United States, 30 F.3d 1469 (Fed.Cir.1994). In addition, the Federal Circuitreversed the Court of International

35552 Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Notices

Trade’s ruling that the Department hadto conduct a tax pass-through analysisin the home market. In so doing, theFederal Circuit found that theDepartment’s verification in theinvestigation that taxes were includedin the home market price was based onsufficient record evidence.

ITA Remand ResultsThe Department attempted to follow

the Court’s remand instructions toexamine whether each tax was directlyrelated to the merchandise in questionand its physically incorporatedcomponents. In so doing, theDepartment requested the respondent,Andina, to identify which componentsused in the production of silicon metalwere physically incorporated intosilicon metal, and which of the taxesrebated under the Reembolso programwere directly related to the silicon metalor the components physicallyincorporated therein. Andina filed itsresponse and petitioners subsequentlycommented. The Department thenissued a deficiency questionnairerequesting additional information whichthe Department concluded wasnecessary to complete a physicalincorporation analysis and the directlyrelated test. Andina responded andpetitioners subsequently submittedcomments on this response.

Due to the substantial amount of newinformation submitted by Andina, averification was deemed necessary.Andina initially indicated itswillingness to participate in averification. However, Andinasubsequently informed the Departmentthat it would not allow a verification ofthe responses. Andina cited costreductions, reduced personnel,preparation of annual financialstatements and difficulty in locatingdocumentation from the period ofinvestigation (March 1 through August31, 1990) as reasons for its decision notto participate in the verification.

Because the respondent refused toallow verification of its responses, theDepartment was forced to make itsremand determination on the basis ofBIA pursuant to section 776(c) of theTariff Act of 1930, as amended, 19U.S.C. 1677e(c). Accordingly, as BIA,the Department did not allow anadjustment to USP for the rebated taxesreceived under the Reembolso program.Therefore, we have calculated thedumping rates for Andina withoutmaking an upward adjustment to USPfor the amount of the Reembolso taxrebated received. In addition, theadjustment to USP of the value-addedtax (VAT) that was disallowed in thefirst remand can now be reinstated. In

adjusting USP for the VAT, weemployed the methodology developedas a result of the Court’s decision inFederal-Mogul, et al. v. United States,834 F. Supp 1391 (CIT 1993). See FinalDetermination of Sales at Less Than FairValue: Calcium Aluminate Cement,Cement Clinker and Flux from France,59 FR 14136, March 25, 1994.

Based on our examination of therecord, we determine the LTFV marginto be:

Producer/ManufacturerExporter

Margin (per-centage)

Andina ................................... 17.87All others ............................... 17.87

Dated: June 30, 1995.Susan G. Esserman,Assistant Secretary for ImportAdministration.[FR Doc. 95–16837 Filed 7–7–95; 8:45 am]BILLING CODE 3510–DS–M

Applications for Duty-Free Entry ofScientific Instruments

Pursuant to Section 6(c) of theEducational, Scientific and CulturalMaterials Importation Act of 1966 (Pub.L. 89–651; 80 Stat. 897; 15 CFR part301), we invite comments on thequestion of whether instruments ofequivalent scientific value, for thepurposes for which the instrumentsshown below are intended to be used,are being manufactured in the UnitedStates.

Comments must comply with 15 CFR301.5(a)(3) and (4) of the regulations andbe filed within 20 days with theStatutory Import Programs Staff, U.S.Department of Commerce, Washington,D.C. 20230. Applications may beexamined between 8:30 A.M. and 5:00P.M. in Room 4211, U.S. Department ofCommerce, 14th Street and ConstitutionAvenue, N.W., Washington, D.C.

Docket Number: 95–048. Applicant:University of Nebraska - Lincoln,Physics and Astronomy Department,205 Brace Lab, Lincoln, NE 68588-0111.Instrument: Integrated Sensors, ModelMD100. Manufacturer: IntegratedSensors Ltd., United Kingdom. IntendedUse: The instrument will be used forstudies of singly and multiply chargedions of helium, neon, oxygen, and othercommon gases in order to further theknowledge of the structure of atoms andhow they interact with beams of x-ray.Application Accepted by Commissionerof Customs: June 21, 1995.

Docket Number: 95–049. Applicant:Auburn University, 311 Ingram Hall,Auburn University, AL 36849.Instrument: Electron Microscope, Model

JEM-2010. Manufacturer: JEOL Ltd.,Japan. Intended Use: The instrumentwill be used for study of themicrostructure of metals, metal alloys,ceramics, intermetallic compounds,metal - matrix composites andpolymers. The experiments to beconducted include:

1. characterization of multiphaseintermetallic compounds,

2. dynamic investigations of nickelaluminides at elevated temperatures,

3. edge-on microscopy of intermetallic- metal joints,

4. microstructural and chemicalcharacterization of nanoparticulatematerials,

5. imaging of polymeric thin films,6. high resolution imaging of

structural ceramic materials, and7. crystallographic characterization of

phases by electron diffraction.In addition, the instrument will be

used for the training of faculty, staff andgraduate students. ApplicationAccepted by Commissioner of Customs:June 21, 1995.

Docket Number: 95–050. Applicant:North Carolina State University,Campus Box 7212, Raleigh, NC 27695-7212. Instrument: Mass Spectrometer,Model IMS-6f. Manufacturer: CamecaInstruments, France. Intended Use: Theinstrument will be used to determinethe levels of impurities to the PPB andPPT level in materials of engineeringimportance using the SIMS techniquesof dynamic depth profiling, staticsurface analysis, three dimensionaldepth profiling, surface mapping, etc.These techniques will be applied forboth negative and positive ions, for bothconducting samples and insulatorsusing the appropriate primary ion beamwith both electron and molecularflooding as needed to provide theoptimum sensitivity and depthresolution. In addition, the instrumentwill be used for educational purposes inthe Materials Science and Engineeringmaterials characterization course,‘‘Advanced Scanning ElectronMicroscopy and Surface Analysis’’ MAT612. Application Accepted byCommissioner of Customs: June 21,1995.

Frank W. Creel,Director, Statutory Import Programs Staff.[FR Doc. 95–16838 Filed 7–7–95; 8:45 am]

BILLING CODE 3510–DS–F


DEPARTMENT OF DEFENSE

Office of the Secretary

Technical Assistance for PublicParticipation

AGENCY: Department of Defense, Officeof the Deputy Under Secretary ofDefense for Environmental Security(DUSD(ES)).ACTION: Notice of request for expressionsof interest.

SUMMARY: On May 24, 1995, theDepartment of Defense published in theFederal Register a request for commentson several options being considered forproviding technical and publicparticipation assistance to communitymembers of Restoration AdvisoryBoards (RABs) and Technical ReviewCommittees (TRCs) established atDepartment of Defense facilities. TheDepartment of Defense has not yetdecided which option(s) to implement.One option under considerationinvolves the use of independenttechnical assistance provider(s) toadminister and provide this assistance.The Department of Defense is issuingthis notice to request expressions ofinterest from eligible organizations andinstitutions for cooperative agreementsof grants to provide technical and publicparticipation assistance to communitymembers of established RABs and TRCs.This request is for expressions ofinterest only. Expressions of interest areexpected to be no more than three pageslong and it is not anticipated that theywill require prior meetings ordiscussion with Department of Defensepersonnel. Guidance on theestablishment of RABs can be found fornon-closure bases in the April 14, 1994,Department of Defense ManagementGuidance for Execution of the FY 94/95and Development of the FY 96 DefenseEnvironmental Restoration Program andfor closure bases in the September 9,1993, Department of Defense policy forestablishing RABs at closure bases.Section 326 of the National DefenseAuthorization Act for Fiscal Year 1995(NDAA–95), provides for technicalassistance funding to citizens affectedby the environmental restorationactivities ongoing at Department ofDefense facilities.

DATES: Submittals must be received onor before September 8, 1995.

ADDRESSES: Mailed submittals should beaddressed to: the Office of the DeputyUnder Secretary of Defense forEnvironmental Security/Cleanup, 3400Defense Pentagon, Washington, DC20301–3400.

FOR FURTHER INFORMATION CONTACT:Patricia Ferrebee or Marcia Read at (703)697–7475.SUPPLEMENTARY INFORMATION: Today’snotice has the following sections:I. IntroductionII. Discussion of the Technical and Public

Participation Assistance ProviderConcept

III. Expressions of Interest and InformationalProposals

IV. Special InstructionsV. Number of Copies RequiredVI. Proprietary InformationVII. Submission of Preparation Costs

I. IntroductionSection 326(a) of the National Defense

Authorization Act for Fiscal Year 1995(NDAA–95) (Public Law 103–337),provides for technical assistancefunding to citizens affected by theenvironmental restoration ofDepartment of Defense facilities andrequires the promulgation of regulationson this funding. In the May 24, 1995,Federal Register, the Department ofDefense published a request forcomments on proposed options forproviding technical and publicparticipation assistance to communitymembers of TRCs and RABs. Theoptions deal with the question ofadministering funds for assistingcommunity members near Departmentof Defense facilities. Among the optionsbeing considered is the use of anindependent party other than theDepartment of Defense to administerthis program and to provide theassistance. The purpose of this notice isto seek expressions of interests fromeligible organizations and institutionsthat would be interested in participatingin this effort.II. Discussion of the Technical andPublic Participation AssistanceProvider Concept

The RABs and TRCs which receivefunding for assistance may have littleexperience in applying for federal grantsor meeting the various record keeping,accounting and contracting and otherrequirements established in theDepartment of Defense grant andprocurement regulations. Rather thanhaving the community members onRABs and TRCs devote some of theirlimited resources to managing grants incompliance with Department of Defenseregulations, the Department of Defensemay seek to procure one or moreindependent technical assistanceproviders to provide technical andpublic participation assistance tocommunity members of TRCs andRABs. Technical assistance wouldinclude the provision of technicaladvisors, facilitators, mediators andeducators. Public participation

assistance means the provision oftraining and related expenses. Technicalassistance providers would assume fullresponsibility for ensuring that thetechnical services and publicparticipation support provided aredelivered in a timely and effectivemanner, and that all funds are managedand disbursed in full compliance withappropriate Department of Defenseregulations. The technical assistanceprovider would be subject to audit(s)and liable for any costs disallowed as aresult of an audit. The provider wouldalso be responsible for ensuring that useof the funds was consistent with theoverall program budget, scope of workand the allocations for individual RABsand TRCs. The technical assistanceprovider concept could incorporateeither a nationwide provider or a seriesof providers set up by geographic area.

The community members ofindividual RABs and TRCs would beresponsible for making requests to thecommunity co-chair or designatedmembers of the RAB or TRC responsiblefor applying to the designated technicalassistance provider for assistance andfor preparing facility specific statementsdescribing the type and level of supportrequested. The provider would beresponsible for allocating availableresources among these competingrequests using general guidelines andestablished criteria provided by theDepartment of Defense.

Technical assistance providers wouldbe responsible for ensuring that use ofthe funds was consistent with theoverall program budget, scope of workand the allocations for individual RABsand TRCs, and for ensuring that allfunds are managed and disbursed in fullcompliance with applicable Departmentof Defense regulations. Providers wouldreport periodically to the Department ofDefense on activities performed underthis program. Providers would alsoprovide information to the Departmentof Defense on the status of the programincluding the information for the reportto Congress required by the legislation.

III. Expressions of Interest andInformational Proposals

Respondents to this notice shouldhave, at a minimum, the followingqualifications:

(1) Perceived as neutral and credible.(2) Either have or be able to obtain an

interdisciplinary staff withdemonstrated expertise in hazardoussubstance remediation, investigation,management and/or research.

(3) Management capability, for bothfinancial and scientific management,and a demonstrated skill in planning


and scheduling projects of comparablemagnitude to that discussed in thisnotice.

(4) Ability to provide facilitation andmediation services.

(5) Knowledge and experience inenvironmental restoration activitiespreferably at federal facilities.

(6) A demonstrated ability todisseminate results of hazardoussubstance information through aninterdisciplinary program to locallyaffected and concerned citizens.

(7) The ability to perform the requiredtasks either nationally or within adefined geographic area.

(8) Not-for-profit.Expressions of Interest submitted in

response to this notice shall indicateinterest in serving as a technicalassistance provider for providingtechnical and public participationassistance to community members ofTRCs and RABs that, at a minimum,includes the following:

(1) The identity of the respondinginstitution, organization or consortium,including the name, title, telephonenumber, mailing address, facsimilenumber and where available electronicmailing address of an individual point-of-contact.

(2) Brief statement of qualifications.(3) Summary of ability to perform the

required tasks at either a regional ornational level.

Respondents are advised that theDepartment of Defense is not requestingextensive data on technicalperformance, partnership arrangements,or project economics as part of anyproposed submission under this notice.Respondents are also advised that anyprocurement of technical assistanceproviders in the future would not belimited to parties and organizationsresponding to this notice.

IV. Special Instructions

Expressions of Interest shall beprepared in accordance with the specialinstructions provided, and shall bestructured in the order that follows.Respondents may reproduce andcomplete these forms electronically (bycomputer software) in lieu ofcompleting the actual forms publishedin this notice. There is no preferencegiven to the use of published formsversus electronically recreated forms.

(1) Cover letter.(2) Expression of Interest response

form (see Appendix A).(3) Attachments to Expression of

Interest response form.

Cover Letter

A single page cover letter shouldaccompany the expression of interestresponse form. The cover letter shouldcontain a basic statement of interest onthe part of the responding party inserving as a provider. The cover lettermust include the notice of proprietaryinformation described in Section VI ifone is required.

Expression of Interest Response Form

Appendix A of this notice provides aform that shall be used for thepreparation of the Expression of Interestresponse form. Submitters are requiredto complete the form in accordance withthe instructions that follow, and then tophotocopy that form for use in theirsubmission. Instructions for the form areprovided in the following section.

(1) Respondent: Identify the name(s)of the submitting institutions,organization or consortium listing theprimary party first and listing all otherparticipants in the response.

(2, 3, 4, and 5) Mailing address:Provide the full mailing address of theprimary single point-of-contact for therespondent (i.e. the party thatDepartment of Defense should contact ifnecessary).

(6) Primary contact. The name of theperson who will serve as the primarypoint-of-contact for the expression ofinterest.

(7 and 8) Phone/Fax Numbers. Thetelephone and facsimile numbers for theperson identified in item (6), area codefirst.

(9) Electronic address: Where one isavailable, the electronic mail address ofthe primary contact.

(10) Project phase: Respondent shouldcheck the box indicating which phase(s)of the project the respondent isinterested in.

(11) Geographic area: Respondentshould indicate whether the Expressionof Interest is national in coverage orshould indicate the geographic area inwhich it could provide service.

(12) Attached statements:Respondents shall indicate the numberof attached pages.

Attachment to Expression of InterestResponse Form

Respondent shall attach twostatements. Attachment 1 shall indicatethat the respondent meets thequalifications listed in Section III.Attachment 2 shall include a summaryof the respondent’s ability to performthe required tasks as described inSection II.

V. Number of Copies Required

Each submittal should consist ofseven (7) copies, one original and six (6)photocopies. The original copy of theexpression of interest shall contain alldocuments that bear original signatures.Indicate the copy number of each copyusing number ‘‘1’’ for the original andnumbers ‘‘2 through 7’’ for the sixcopies.

The cover letters, expressions ofinterest and attachments should becontained on sheets of paper thatcontain no writing or information of anykind on the reverse sides. In eachinstance, for all items, no otherinformation shall appear with, or beadded to, that required in Appendix A.VI. Proprietary Information

Submitters should strive to avoidincluding proprietary and confidentialbusiness information in theirexpressions of interest. However,information provided by a respondentand identified as a trade secret orconfidential business information willbe treated in confidence, to the extentpermitted by law, provided that thisinformation is clearly marked by thesubmitter with the term ‘‘ConfidentialProprietary Information,’’ and providedthat appropriate page numbers areinserted into the notice that is set forthin the following section which must beplaced in the expression of interestcover letter:Notice on Restriction on Disclosure andUse of Data

This submission includes data thatconstitute trade secrets or confidentialbusiness information and shall not beduplicated, used, disclosed, in whole orin part, for any purpose other than toanalyze information contained in thissubmission, except to the extentpermitted or required by law. Thisrestriction does not limit theGovernment’s right to use informationcontained in these data if it is obtainedfrom another source without restriction.The data that are subject to thisrestriction are contained in sheetslll [insert page numbers or otheridentification of sheets].VII. Submission of Preparation Costs

The Department of Defense is not ableto reimburse respondents for any costsassociated with the preparation ofexpressions of interests or informationalproposals.

Dated: July 3, 1995.L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.


APPENDIX A

U.S. Department of Defense; Expressions ofInterest Response Form for Administrationof a Program To Provide Technical andPublic Participation Assistance toCommunity Members of RestorationAdvisory Boards (RABs) and TechnicalReview Committees (TRCs)

(1) Respondent:(2) Mailing Address:(3) City:(4) State:(5) Zip Code:(6) Primary Contact and Title:(7) Phone Number:(8) Fax Number:(9) E-mail Address:(10) Project phase:Respondent is interested in:b Initial Phase (FY95)b Subsequent Phase (if implemented)b Both phases(11) Geographic area:b Nationwideb OtherIf other, specify area:(12) Number of attached pages:


Office of the Secretary of Defense

Membership of the Defense ContractAudit Agency (DCAA) PerformanceReview BoardsAGENCY: Defense Contract AuditAgency, DOD.ACTION: Notice of Membership of theDefense Contract Audit AgencyPerformance Review Boards.

SUMMARY: This notice announces theappointment of the members of thePerformance Review Boards (PRBs) ofthe Defense Contract Audit Agency(DCAA). The publication of PRBmembership is required by 5 U.S.C.4314(c)(4). The Performance ReviewBoards provide fair and impartialreview of Senior Executive Service(SES) performance appraisals and makerecommendations to the Director,DCAA, regarding final performanceratings and performance awards forDCAA SES members.EFFECTIVE DATE: July 10, 1995.FOR FURTHER INFORMATION CONTACT:Dale R. Collins, Director, Personnel andSecurity Division, Defense ContractAudit Agency, Department of Defense,Cameron Station, Alexandria, Virginia22304–6178, 703–274–7325.SUPPLEMENTARY INFORMATION: Inaccordance with 5 U.S.C. 4314(c)(4), thefollowing are the names and titles of theexecutives who have been appointed toserve as members of the DCAAPerformance Review Boards. They willserve one-year terms, effective uponpublication of this notice.

Headquarters Performance ReviewBoardMr. John van Santen, Assistant Director,

Resources, Defense Contract AuditAgency, Chairperson

Mr. Russell Richards, Assistant Director,Operations, Defense Contract AuditAgency, member

Mr. Lawrence Uhlfelder, AssistantDirector, Policy and Plans, DefenseContract Audit Agency, member

Regional Performance Review BoardMr. William Kraft, Regional Director,

Mid-Atlantic, Defense Contract AuditAgency, Chairperson

Mr. Charles Cherry, Regional Director,Central, Defense Contract AuditAgency, member

Ms. Barbara Reilly, Deputy RegionalDirector, Northeastern, DefenseContract Audit Agency, memberDated: July 3, 1995.

L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.[FR Doc. 95–16776 Filed 7–7–95; 8:45 am]BILLING CODE 5000–04–M

Department of the Air Force

USAF Scientific Advisory BoardMeeting

The Blue Ribbon Panel on Air ForceSafety of the USAF Scientific AdvisoryBoard will meet on 7 July 1995 atRandolph AFB, TX from 8:00 am to 5:00pm.

The purpose of the meeting is togather data in support of the 1995 studyon the Air Force Safety Program.

The meeting will be closed to thepublic in accordance with Section 5526of Title 5, United States Code,specifically subparagraphs (c) (1) (4) and(6) thereof.

For further information, contact AirForce Safety at (703) 614–3908.Patsy J. Conner,Air Force Federal Register Liaison Officer.[FR Doc. 95–16789 Filed 7–7–95; 8:45 am]BILLING CODE 3910–01–P


The Blue Ribbon Panel on Air ForceSafety of the USAF Scientific AdvisoryBoard will meet on 13 July at Scott AFB,IL from 8:00 am to 5:00 pm.


The meeting will be closed to thepublic in accordance with Section 5526of Title 5, United States Code,specifically subparagraphs (c) (1), (4),and (6) thereof.



The Blue Ribbon Panel on Air ForceSafety of the USAF Scientific AdvisoryBoard will meet on 14 July at Wright-Patterson AFB, OH from 8:00 am to 5:00pm.


The meeting will be closed to thepublic in accordance with Section 5526of Title 5, United States Code,specifically subparagraphs (c) (1), (4),and (6) thereof.



The Blue Ribbon Panel on Air ForceSafety of the USAF Scientific AdvisoryBoard will meet on 28 July 1995 atLangley AFB, TX from 8:00 am to 5:00pm.


The meeting will be closed to thepublic in accordance with Section 5526of Title 5, United States Code,specifically subparagraphs (c)(1) (4), and(6) thereof.


DEPARTMENT OF EDUCATION

Notice of Meeting

AGENCY: National AssessmentGoverning Board, Education.

SUMMARY: This notice sets forth theschedule and proposed agenda of aforthcoming meeting of the ExecutiveCommittee of the National AssessmentGoverning Board. This notice also


describes the functions of the Board.Notice of this meeting is required underSection 10(a)(2) of the Federal AdvisoryCommittee Act. This document isintended to notify the general public oftheir opportunity to attend.DATES: July 20, 1995.TIME: 11:00 a.m. (et).LOCATION: National AssessmentGoverning Board, Suite 825, 800 NorthCapitol Street, NW., Washington, DC.FOR FURTHER INFORMATION CONTACT:Mary Ann Wilmer, Operations Officer,National Assessment Governing Board,Suite 825, 800 North Capitol Street,NW., Washington, DC 20002–4233,Telephone: (202) 357–6938.SUPPLEMENTARY INFORMATION: TheNational Assessment Governing Boardis established under section 412 of theNational Education Statistics Act of1994 (Title IV of the ImprovingAmerica’s Schools Act of 1994).

The Board is established to formulatepolicy guidelines for the NationalAssessment of Educational Progress.The Board is responsible for selectingsubject areas to be assessed, developingassessment objectives, identifyingappropriate achievement goals for eachgrade and subject tested, andestablishing standards and proceduresfor interstate and national comparisons.

The Executive Committee of theNational Assessment Governing Boardwill meet July 30, 1995 from 11:00 a.m.until 12:30 p.m. Because this is ateleconference meeting, facilities will beprovided so the public will have accessto the Committee’s deliberations. The

agenda items for this meeting are (1)review and approval of the August 3–5,1995 meeting agenda, and (2) review ofbudget workshop plans.

Records are kept of all Boardproceedings and are available for publicinspection at the U.S. Department ofEducation, National AssessmentGoverning Board, Suite 825, 800 NorthCapitol Street, N.W., Washington, D.C.,from 8:30 a.m. to 5:00 p.m.

Dated: July 5, 1995.Roy Truby,Executive Director, National AssessmentGoverning Board.[FR Doc. 95–16795 Filed 7–7–95; 8:45 am]BILLING CODE 4000–01–M

DEPARTMENT OF ENERGY

Western Area Power Administration

Central Valley Project—ProposedCommercial Firm Power Rates

AGENCY: Western Area PowerAdministration, DOE.ACTION: Notice of Proposed CentralValley Project Commercial Firm PowerRate Adjustment.

SUMMARY: The Western Area PowerAdministration (Western) is proposing arate adjustment for commercial firmpower service (Proposed Rates) for theCentral Valley Project (CVP), for theremaining period under the currentSchedule for Rates for CommercialFirm-Power Service (Rate Schedule CV–F7). The power repayment study (PRS)

and other analysis indicate thatWestern’s commercial firm power ratesneed to be revised. At this time, only thecommercial firm power rates are beingadjusted. Other rate schedules approvedas part of Western’s Rate Order No. 59,and all other provisions under RateSchedule CV–F7 will remainunchanged. A rate adjustmentaddressing all provisions of RateSchedule CV–F7 will occur prior to itsexpiration on April 30, 1998.

The Proposed Rates will continue toprovide sufficient revenue to pay allannual costs (including interestexpense), plus repayment of requiredinvestment within the allowable timeperiod. The rate impacts are detailed ina rate brochure to be distributed to allinterested parties. The Proposed Ratesare scheduled to go into effect onOctober 1, 1995.

The Proposed Rates consist of baseenergy rates up to a 70-percent loadfactor, tier energy rates at or above a 70-percent load factor, and capacity rates.

The Proposed Rates are designed torecover 40-percent of the revenuerequirement from the capacity rate and60-percent from the energy rate.

A comparison of the current ratesunder Rate Schedule CV–F7, and theProposed Rates for the same timeperiod, show rate adjustments beginningon October 1, 1995; October 1, 1996;and October 1, 1997. The ProposedRates and applicable revenuerequirement split are provided in Table1 below.

TABLE 1.—PROPOSED COMMERCIAL FIRM POWER RATES

Effective periodTotal

composite(mills/kWh)

Capacity($/kW-mo)

Base energy(mills/kWh)

Tier energy(mills/kWh)

Capacity/energy split

10/01/95 to 09/30/96 ............................................................ 24.00 4.89 13.35 26.05 40/6010/01/96 to 09/30/97 ............................................................ 26.60 5.41 15.01 26.16 40/6010/01/97 to 04/30/98 ............................................................ 27.00 5.50 15.26 26.26 40/60

The Tier Rate will be applied tocommercial firm energy at 70- percentload factor and above, with the loadfactor based on the lesser of thecustomer’s (1) maximum demand for themonth or, if a scheduling customer,maximum scheduled demand for themonth; or (2) contract rate of deliveryfor commercial firm power.

The Assistant Secretary forConservation and Renewable Energy ofthe Department of Energy (DOE),

approved the existing rate schedules onan interim basis on April 12, 1993 (RateOrder No. WAPA–59, 58 FR 35933 (July2, 1993), and the Federal EnergyRegulatory Commission (FERC)confirmed and approved the rateschedule on a final basis on September22, 1993, under FERC Docket No. EF93–5011–000, (64 FERC Part 61,332). Theexisting rate schedule was effective onMay 1, 1993, for the period ending April30, 1998. Under the current CVP Rate

Schedule CV–F7, the composite rate onOctober 1, 1995, will be 31.55 mills perkilowatt-hour (mills/kWh), the baseenergy rate will be 17.73 mills/kWh, thetier energy rate will be 34.70 mills/kWh,and the capacity rate will be $6.57 perkilowatt-month (kW-mo). Table 2provides a comparison of the rates inthe current CVP Rate Schedule CV–F7and the Proposed Rates along with thepercentage change in the rates:


TABLE 2.—COMPARISON OF CURRENT AND PROPOSED RATES

Percentage change in commercial firm power rates

Effective period Total compos-ite (mills/kWh)

Percentchange

Capacity ($/kW-mo)

Percentchange

Base energy(mills/kWh)

Percentchange

Tier energy(mills/kWh)

Percentchange

Current rate schedule:10/01/95 to 09/30/97 .. 31.55 ............... 6.57 ............... 17.73 ............... 34.7010/01/97 to 04/30/98 .. 34.37 ............... 7.16 ............... 19.33 ............... 37.46

Proposed rates:10/01/95 to 09/30/96 .. 24.00 ¥24 4.89 ¥26 13.35 ¥25 26.05 ¥2510/01/96 to 09/30/97 .. 26.60 ¥16 5.41 ¥18 15.01 ¥15 26.16 ¥2510/01/97 to 04/30/98 .. 27.00 ¥21 5.50 ¥23 15.26 ¥21 26.26 ¥30

Other Rate Provisions Associated Withthe Proposed CVP Power Rates

Power Factor Adjustment ClauseThis provision contained in CVP Rate

Schedule CV–F7, will remain the sameunder the Proposed Rates.

Low Voltage Loss AdjustmentThis provision contained in CVP Rate

Schedule CV–F7, will remain the sameunder the Proposed Rates.

Revenue Adjustment ClauseThe methodology for the Revenue

Adjustment Clause (RAC) is beingamended in a concurrent process.DATES: The consultation and commentperiod will begin July 7, 1995, and willend not less than 30 days later, orAugust 11, 1995. Under the existing rateschedule, a rate increase will occurOctober 1, 1995. In an effort to avoidlarge rate fluctuations, and the resultantimpact on customers, the Proposed Ratemust be put in place on or beforeOctober 1, 1995. To meet this deadline,the comment period has been shortenedto 30 days in accordance with theregulations on Rate Adjustments foundat 10 CFR 903.14.

The proposed rates reflect roughly a16% to 24% decrease from thecommercial firm power rates in CVPRate Schedule CV–F7. The recentchange in the level of customers’purchases from Western, and thedetermination of the resulting rateimpacts prevented Western frominitiating this rate adjustment at anearlier date. Because of the limitedscope of this rate adjustment, Westernfeels a 30 day comment period isappropriate and allows sufficientopportunity for input into the rateadjustment. A public information forumwill be held on July 26, 1995, beginningat 10 a.m. at the Red Lion Hotel, 2001Point West Way, Sacramento, California,95815. A public comment forum atwhich Western will receive oral andwritten comments will also be held onJuly 26, 1995, beginning at 1 p.m., at thesame location. To be considered, written

comments should be received byWestern by close of business on August11, 1995. This is the end of theconsultation and comment period.Comments should be sent to the addressbelow: James C. Feider, Area Manager,Sacramento Area Office, Western AreaPower Administration, 1825 Bell Street,Suite 105, Sacramento, CA 95825–1097,(916) 649–4418.

FOR FURTHER INFORMATION CONTACT:Debbie Dietz, Director, Division ofRates, Studies, and Power Billing,Sacramento Area Office, Western AreaPower Administration, 1825 Bell Street,Suite 105, Sacramento, CA 95825–1097,(916) 649–4453.

SUPPLEMENTARY INFORMATION: Power andtransmission rates for the CVP areestablished pursuant to the Departmentof Energy Organization Act (42 U.S.C.7101 et seq.) and the Reclamation Act of1902 (43 U.S.C. 371 et seq.), as amendedand supplemented by subsequentenactments, particularly section 9(c) ofthe Reclamation Project Act of 1939 (43U.S.C. 485h(c)) and Acts of Congressapproved August 26, 1937 (50 Stat. 844,850); August 12, 1955 (69 Stat. 719); andOctober 23, 1962 (76 Stat. 1173, 1191),and Acts amendatory or supplementarythereof.

By Amendment No. 3 to DelegationOrder No. 0204–108, publishedNovember 10, 1993 (58 FR 59716), theSecretary of DOE delegated (1) Theauthority to develop long-term powerand transmission rates on anonexclusive basis to the Administratorof Western; (2) the authority to confirm,approve, and place such rates into effecton an interim basis to the DeputySecretary; and (3) the authority toconfirm, approve, and place into effecton a final basis, to remand, or todisapprove such rates to the FERC.Existing DOE procedures for publicparticipation in power rate adjustments(10 CFR part 903) became effective onSeptember 18, 1985 (50 FR 37835).

Availability of Information

All brochures, studies, comments,letters, memoranda, or other documentsmade or kept by Western for thepurpose of developing the ProposedRates for commercial firm power, areand will be made available forinspection and copying at theSacramento Area Office, located at 1825Bell Street, Suite 105, Sacramento,California 95825.

Determination Under Executive Order12866

DOE has determined that this is nota significant regulatory action because itdoes not meet the criteria of ExecutiveOrder 12866, 58 FR 51735. Western hasan exemption from centralizedregulatory review under ExecutiveOrder 12866; accordingly, no clearanceof this notice by Office of Managementand Budget is required.

Environmental Evaluation

In compliance with the NationalEnvironmental Policy Act of 1969 (42U.S.C. 4321 et seq.); Council onEnvironmental Quality Regulations (40CFR parts 1500 through 1508); and DOENEPA Regulations (10 CFR part 1021),Western conducts environmentalevaluations of the CVP commercial firmpower rate adjustment and develops theappropriate level of environmentaldocumentation prior to theimplementation of any rate adjustment.

Issued at Golden, Colorado, June 22, 1995.

J.M. Shafer,Administrator.[FR Doc. 95–16820 Filed 7–7–95; 8:45 am]




[FRL–5256–1]

Underground Injection ControlProgram: Hazardous Waste DisposalInjection Restrictions

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice of final action to grant acase-by-case extension.

SUMMARY: The EPA is granting finalapproval to Great Lakes ChemicalCorporation (Great Lakes), in El Dorado,Arkansas for an additional case-by-caseextension for specific injected wasteswhich were impacted by the August 8,1990, ban date (California listed wastes,solvents less than one (1) percentsolvent constituents and First Thirdwastes). This action responds to thepetition submitted under 40 CFR 148.4according to procedures set out in 40CFR 268.5, which allows any person torequest that the Administrator grant, ona case-by-case basis, an extension of theapplicable effective date based on ashowing that the petitioner has enteredinto a binding contractual commitmentto construct or otherwise provideadequate alternative treatment,recovery, or disposal capacity for thepetitioner’s waste. The Agencyproposed action on this request in aMay 24, 1995, Federal Register notice.See 55 FRL–5210–5212. By granting thisapproval, Great Lakes can inject theabove identified wastes throughSeptember 30, 1995, but not later thanthis date without being subject to theprohibitions applicable to such wastes.DATES: This Action is effective June 30,1995.ADDRESSES: The docket for this action islocated at the EPA Region 6, 1445 RossAvenue, Dallas, Texas 75202, and isopen during normal business hours,8:00 a.m. through 4:00 p.m., Mondaythrough Friday.FOR FURTHER INFORMATION CONTACT: GusChavarria, Acting Chief Water SupplyBranch, EPA Region 6, 1445 RossAvenue, Dallas, Texas 75202–2733 ortelephone (214) 655–7165.SUPPLEMENTARY INFORMATION: EPA istoday approving of the applicationsubmitted by Great Lakes ChemicalCorporation (Great Lakes), requesting anextension to the June 30, 1995, extendeddate of the RCRA land disposalrestrictions (LDR) treatment standardsapplicable to wastewaters with thehazardous wastes codes K117, K118,K131, K132, and F039. To be grantedsuch a request, the applicant mustdemonstrate, among other things, that

there is insufficient capacity to manageits waste and has entered into a bindingcontractual commitment to construct orotherwise provide such capacity, butdue to circumstances beyond its control,such capacity could not reasonably bemade available by the effective date.Great Lakes adequately met theserequirements and was granted an initialCase-By-Case Extension for one yeareffective June 30, 1994 to June 30, 1995,with the option to renew this extensionfor up to one additional year (see FR5151–5153. Based on the Case-By-Caseextension provisions and request byGreat Lakes to extend the ban date,Great Lakes will be allowed, upon finalapproval to land dispose of its K117,K118, K131, K132, and F039 wastesupon final approval, until September30, 1995, without being subject to theland disposal restrictions applicable tosuch wastes. Final Approval of thisextension, will only be valid forinjection into Well Nos. 5 and 6.

Effective Date: This approvedextension of the LDR effective datebecomes effective June 30, 1995.

Addresses: Environmental ProtectionAgency, Region 6, Water ManagementDivision, Water Supply Branch (6W–SU), 1445 Ross Avenue, Dallas, Texas75202–2733.

For Further Information Contact: TheRCRA/Superfund Hotline, at (800) 424–9346 (toll free) or (703) 412–9810, in theWashington, DC metropolitan area.

Dated: June 30, 1995.Myron O. Knudson,Director, Water Management Division (6W),EPA Region 6.[FR Doc. 95–16828 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–P

[FRL–5227–3]

Border Environment CooperationCommission, CD. Juarez, Chihuahua;Notice of Public Meeting

The Border Environment CooperationCommission (BECC) cordially invitesyou to attend the next public meeting ofthe Board of Directors on Friday, July28, 1995, from 9:00 a.m.–5:00 p.m., atthe Gran Hotel, in Tijuana, BajaCalifornia. The meeting is free and opento the public.

The primary purpose of the meetingwill be to receive public comment onBECC ‘‘Guidelines for ProjectSubmission and Criteria for ProjectCertification.’’ Additional agenda itemswill include an overview of BECCTechnical Assistance and OutreachPrograms, and a discussion of BECCproposed rules regarding confidentialityand complaints.

Proposed Agenda

1. Opening Statements2. Approval of Proposed Agenda3. Approval of Minutes from May 19,

1995 Board of Directors Meeting4. Report from Advisory Council5. Public Comment and Discussion of

Guidelines for Project Submission andCriteria for Certification

6. Consideration of Project Certifications7. Report on Technical Assistance

Program8. Status of the Outreach Program9. Comments by Directors and Advisors10. Adjournment

Any member of the public interestedin submitting written comments to theBoard of Directors should submitwritten material to the BECC staff byJuly 14, 1995. Anyone interested inmaking a brief oral statement to theBoard will be able to during the publicmeeting. Considering translationrequirements, written presentationsshould be limited to three pages.

In order to allow adequate time toplan and arrange for the public meeting,please confirm your attendance no laterthan July 14, 1995 to BECC by letter,phone, or fax to: Blvd. Tomas FernandezNo. 7940 or P.O. Box 221648, Ed. TorresCampestre, sexto piso, El Paso, TX79913, Cd. Juarez, Chih. C.P. 23470,Tel.: (91–16) 29–23–95 (from Mexico),(011–52–16) 29–23–95 (from U.S.), Fax:(91–16) 29–23–97 (from Mexico), (011–52–16) 29–23–97 (from U.S.).Tracy J. Williams,Public Outreach Coordinator.[FR Doc. 95–16830 Filed 7–7–95; 8:45 am]BILLING CODE 6560–50–M

FEDERAL EMERGENCYMANAGEMENT AGENCY

[FEMA–1055–DR]

Kentucky; Amendment to Notice of aMajor Disaster Declaration

AGENCY: Federal EmergencyManagement Agency (FEMA).ACTION: Notice.

SUMMARY: This notice amends the noticeof a major disaster for the State ofKentucky, (FEMA–1055–DR), datedJune 13, 1995, and relateddeterminations.EFFECTIVE DATE: July 3, 1995.FOR FURTHER INFORMATION CONTACT:Pauline C. Campbell, Response andRecovery Directorate, FederalEmergency Management Agency,Washington, DC 20472, (202) 646–3606.SUPPLEMENTARY INFORMATION: The noticeof a major disaster for the State of


Kentucky dated June 13, 1995, is herebyamended to include the following areasamong those areas determined to havebeen adversely affected by thecatastrophe declared a major disaster bythe President in this declaration of June13, 1995:

The Counties of Fulton, Jackson, Perry, andRockcastle for Public Assistance.(Catalog of Federal Domestic Assistance No.83.516, Disaster Assistance)Richard W. Krimm,Associate Director, Response and RecoveryDirectorate.[FR Doc. 95–16822 Filed 7–7–95; 8:45 am]BILLING CODE 6718–02–M

[FEMA–1059–DR]

Virginia; Amendment to Notice of aMajor Disaster Declaration

AGENCY: Federal EmergencyManagement Agency (FEMA).

ACTION: Notice.

SUMMARY: This notice amends the noticeof a major disaster for theCommonwealth of Virginia, (FEMA–1059–DR), dated July 1, 1995, andrelated determinations.

EFFECTIVE DATE: July 3, 1995.

FOR FURTHER INFORMATION CONTACT:Pauline C. Campbell, Response andRecovery Directorate, FederalEmergency Management Agency,Washington, DC 20472, (202) 646–3606.

SUPPLEMENTARY INFORMATION: The noticeof a major disaster for theCommonwealth of Virginia dated July 1,1995, is hereby amended to include thefollowing areas among those areasdetermined to have been adverselyaffected by the catastrophe declared amajor disaster by the President in hisdeclaration of July 1, 1995:

Greene County for Public Assistance(already designated for IndividualAssistance.)

The City of Lexington for IndividualAssistance (already designated for PublicAssistance.)

The counties of Albemarle, Augusta,Campbell, Culpeper, and Giles, and, thecities of Lynchburg and Staunton forIndividual and Public Assistance.(Catalog of Federal Domestic Assistance No.83.516, Disaster Assistance)Richard W. Krimm,Associate Director, Response and RecoveryDirectorate.[FR Doc. 95–16824 Filed 7–7–95; 8:45 am]BILLING CODE 6718–02–M

[FEMA–1059–DR]

Virginia; Major Disaster and RelatedDeterminations

AGENCY: Federal EmergencyManagement Agency (FEMA).ACTION: Notice.

SUMMARY: This is a notice of thePresidential declaration of a majordisaster for the Commonwealth ofVirginia (FEMA–1059–DR), dated July 1,1995, and related determinations.EFFECTIVE DATE: July 1, 1995.FOR FURTHER INFORMATION CONTACT:Pauline C. Campbell, Response andRecovery Directorate, FederalEmergency Management Agency,Washington, DC 20472, (202) 646–3606.SUPPLEMENTARY INFORMATION: Notice ishereby given that, in a letter dated July1, 1995, the President declared a majordisaster under the authority of theRobert T. Stafford Disaster Relief andEmergency Assistance Act (42 U.S.C.5121 et seq.), as follows:

I have determined that the damage incertain areas of the Commonwealth ofVirginia, resulting from severe storms andflooding on June 22, 1995 and continuing, isof sufficient severity and magnitude towarrant a major disaster declaration underthe Robert T. Stafford Disaster Relief andEmergency Assistance Act (‘‘the StaffordAct’’). I, therefore, declare that such a majordisaster exists in the Commonwealth ofVirginia.

In order to provide Federal assistance, youare hereby authorized to allocate from fundsavailable for these purposes, such amounts asyou find necessary for Federal disasterassistance and administrative expenses.

You are authorized to provide IndividualAssistance and Public Assistance in thedesignated areas. Hazard Mitigation may bedesignated at a later date, if warranted.Further, you may provide direct Federalassistance for emergency work at 100 percentFederal funding for 72 hours followingdeclaration, if warranted. Consistent with therequirement that Federal assistance besupplemental, any Federal funds providedunder the Stafford Act for Public Assistanceand Hazard Mitigation will be limited to 75percent of the total eligible costs.

The time period prescribed for theimplementation of section 310(a),Priority to Certain Applications forPublic Facility and Public HousingAssistance, 42 U.S.C. 5153, shall be fora period not to exceed six months afterthe date of this declaration.

Notice is hereby given that pursuantto the authority vested in the Director ofthe Federal Emergency ManagementAgency under Executive Order 12148, Ihereby appoint Robert J. Gunter of theFederal Emergency Management Agencyto act as the Federal CoordinatingOfficer for this declared disaster.

I do hereby determine the followingareas of the Commonwealth of Virginiato have been affected adversely by thisdeclared major disaster:

Greene County for Individual Assistanceonly;

The City of Buena Vista and the Countiesof Madison and Rockbridge for IndividualAssistance and Public Assistance; and

The City of Lexington for Public Assistanceonly.(Catalog of Federal Domestic Assistance No.83.516, Disaster Assistance)

Dated: July 3, 1995.James L. Witt,Director.[FR Doc. 95–16823 Filed 7–7–95; 8:45 am]BILLING CODE 6718–02–M

FEDERAL MARITIME COMMISSION

Ocean Freight Forwarder LicenseApplicants

Notice is hereby given that thefollowing applicants have filed with theFederal Maritime Commissionapplications for licenses as ocean freightforwarders pursuant to section 19 of theShipping Act of 1984 (46 U.S.C. app.1718 and 46 CFR part 510).

Persons knowing of any reason whyany of the following applicants shouldnot receive a license are requested tocontact the Office of Freight Forwarders,Federal Maritime Commission,Washington, DC 20573.Delmar International, Inc., 147–55 175th

Street, Jamaica, NY 11434, Officers:Herbert William Julich, President,Robert Iny, Vice President

U.S. Airfreight, Inc., 7213 N.W. 46thStreet, Miami, FL 33166, Officers: JoseAlmanzar, President, BlancaAlmanzar, Vice President

Air Cargo Centralam, Inc., 8001 SW157th Court, Miami, FL 33193,Officers: Arelys E. Crespo, President,Ordonel A. Crespo, Vice President

LT International, 1480 W 8th Street,Brooklyn, NY 11204, LersvidhyaThienvanich, Sole Proprietor

A.T. Associates Inc., 347 Fifth Avenue#310, New York, NY 10016, Officers:Tariq A. Kahn, President, Zafar AboulRashid, Director

Customized Brokers, Inc., 7220 N.W. 36Street, Suite 103, Miami, FL 33166,Officer: Patricia Compres, President.Dated: July 3, 1995.By the Federal Maritime Commission.

Joseph C. Polking,Secretary.[FR Doc. 95–16798 Filed 7–7–95; 8:45 am]BILLING CODE 6730–01–M


FEDERAL RESERVE SYSTEM

Rebecca Carson McWilliams; Changein Bank Control Notice; Acquisition ofShares of Banks or Bank HoldingCompanies

The notificant listed below hasapplied under the Change in BankControl Act (12 U.S.C. 1817(j)) and §225.41 of the Board’s Regulation Y (12CFR 225.41) to acquire a bank or bankholding company. The factors that areconsidered in acting on notices are setforth in paragraph 7 of the Act (12U.S.C. 1817(j)(7)).

The notice is available for immediateinspection at the Federal Reserve Bankindicated. Once the notice has beenaccepted for processing, it will also beavailable for inspection at the offices ofthe Board of Governors. Interestedpersons may express their views inwriting to the Reserve Bank indicatedfor the notice or to the offices of theBoard of Governors. Comments must bereceived not later than July 21, 1995.

A. Federal Reserve Bank of St. Louis(Randall C. Sumner, Vice President) 411Locust Street, St. Louis, Missouri 63166:

1. Rebecca Carson McWilliams, Halls,Tennessee; to acquire an additional 3.74percent, for a total of 27.73 percent, ofthe voting shares of Lauderdale CountyBancshares, Halls, Tennessee, andthereby indirectly acquire LauderdaleCounty Bank, Halls, Tennessee.

Board of Governors of the Federal ReserveSystem, July 3, 1995.Jennifer J. Johnson,Deputy Secretary of the Board.[FR Doc. 95–16796 Filed 7–7–95; 8:45 am]BILLING CODE 6210–01–F

SunTrust Banks, Inc., et al.; Notice ofApplications to Engage de novo inPermissible Nonbanking Activities

The companies listed in this noticehave filed an application under §225.23(a)(1) of the Board’s Regulation Y(12 CFR 225.23(a)(1)) for the Board’sapproval under section 4(c)(8) of theBank Holding Company Act (12 U.S.C.1843(c)(8)) and § 225.21(a) of RegulationY (12 CFR 225.21(a)) to commence or toengage de novo, either directly orthrough a subsidiary, in a nonbankingactivity that is listed in § 225.25 ofRegulation Y as closely related tobanking and permissible for bankholding companies. Unless otherwisenoted, such activities will be conductedthroughout the United States.

Each application is available forimmediate inspection at the FederalReserve Bank indicated. Once theapplication has been accepted for

processing, it will also be available forinspection at the offices of the Board ofGovernors. Interested persons mayexpress their views in writing on thequestion whether consummation of theproposal can ‘‘reasonably be expected toproduce benefits to the public, such asgreater convenience, increasedcompetition, or gains in efficiency, thatoutweigh possible adverse effects, suchas undue concentration of resources,decreased or unfair competition,conflicts of interests, or unsoundbanking practices.’’ Any request for ahearing on this question must beaccompanied by a statement of thereasons a written presentation wouldnot suffice in lieu of a hearing,identifying specifically any questions offact that are in dispute, summarizing theevidence that would be presented at ahearing, and indicating how the partycommenting would be aggrieved byapproval of the proposal.

Unless otherwise noted, commentsregarding the applications must bereceived at the Reserve Bank indicatedor the offices of the Board of Governorsnot later than July 21, 1995.

A. Federal Reserve Bank of Atlanta(Zane R. Kelley, Vice President) 104Marietta Street, N.W., Atlanta, Georgia30303:

1. SunTrust Banks, Inc., Atlanta,Georgia; to engage de novo in leasingpersonal or real property or acting asagent, broker, or adviser, pursuant to §225.25(b)(5)(i) and (ii) of the Board’sRegulation Y.

B. Federal Reserve Bank of KansasCity (John E. Yorke, Senior VicePresident) 925 Grand Avenue, KansasCity, Missouri 64198:

1. Mountain Parks Financial Corp.,Denver, Colorado; to engage de novothrough its subsidiary, Mountain ParksMortgage Co., Denver, Colorado, in thebusiness of making, acquiring andservicing residential mortgages as anapproved HUD mortgagee, pursuant to §225.25(b)(1) of the Board’s Regulation Y.

Board of Governors of the Federal ReserveSystem, July 3, 1995.Jennifer J. Johnson,Deputy Secretary of the Board.[FR Doc. 95–16797 Filed 7–7–95; 8:45 am]BILLING CODE 6210–01–F

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[MT–921–05–1320–01; MTM 80697]

Coal Lease Offering

AGENCY: Bureau of Land Management,Interior.

ACTION: Notice of coal lease offering bysealed bid; MTM 80697—WesternEnergy Company.

SUMMARY: Notice is hereby given thatthe coal resources in the lands describedbelow in Rosebud County, Montana,will be offered for competitive lease bysealed bid. This offering is being madeas a result of an application filed byWestern Energy Company, inaccordance with the provisions of theMineral Leasing Act of 1920 (41 Stat.437; 30 U.S.C. 181–287), as amended.

An Environmental Assessment of theproposed coal development and relatedrequirements for consultation, publicinvolvement, and hearing have beencompleted in accordance with 43 CFR3425. Concerns and issues expressed bythe public during the public scopingprocess centered on social, economic,and cultural impacts to the NorthernCheyenne and Crow Tribes, hydrologicimpacts to the area, and the need to doan Environmental Impact Statement(EIS) as the appropriate level ofenvironmental documentation for thedevelopment of the coal resources.Three alternatives (Preferred, No Action,and Cultural Resource Avoidance) weredeveloped to analyze impacts and toaddress issues relating to the proposedaction. The Preferred Alternative,including special stipulations andmitigation measures, was chosenbecause it will maximize the beneficialuse of the subject coal resource and willmitigate impacts to one historic site andtwo sites which have high values astraditional cultural properties.

The tract will be leased to thequalified bidder of the highest cashamount provided that the high bidmeets the fair market value of the coalresource. The minimum bid for the tractis $100 per acre, or fraction thereof. Nobid that is less than $100 per acre, orfraction thereof, will be considered. Theminimum bid is not intended torepresent fair market value. The fairmarket value will be determined by theauthorized officer after the sale.

Coal OfferedThe coal resource to be offered

consists of all recoverable reserves inthe following described lands locatedapproximately 10 miles west of thetown of Colstrip:T. 1 N., R. 39 E., P.M.M.,

Sec. 2: S1⁄2NW1⁄4, N1⁄2NE1⁄4SE1⁄4.T. 1 N., R. 40 E., P.M.M.,

Sec. 6: Lots 1, 2, 3, 4, S1⁄2N1⁄2, S1⁄2;Sec. 8: E1⁄2, N1⁄2NW1⁄4;Sec. 14: S1⁄2SW1⁄4, SE1⁄4.

T. 2 N., R. 40 E., P.M.M,Sec. 32: All.Containing 2,061 acres, Rosebud County,

Montana.


The Rosebud seam, averaging 22.3 feet inthickness, is the only economically minablecoal seam within the tract. The tract containsan estimated 35.6 million tons of recoverablereserves. Coal quality, as received, averages8,360 BTU/lb, 25.52 percent moisture, 10.03percent ash, and 0.97 percent sulfur. Thiscoal bed is being mined in adjoining tractsby Western Energy Company.

Rental and Royalty

A lease issued as a result of thisoffering will provide for payment of anannual rental of $3 per acre, or fractionthereof; and a royalty payable to theUnited States of 12.5 percent of thevalue of coal mined by surface methodsand 8.0 percent of the value of coalmined by underground methods. Thevalue of the coal shall be determined inaccordance with 43 CFR 3485.2.DATES: Lease Sale—The lease sale willbe held at 11 a.m., Wednesday, August9, 1995, in the Conference Room on theSixth Floor of the Granite TowerBuilding, Bureau of Land Management,222 North 32nd Street, Billings,Montana 59107.

Bids—Sealed bids must be submittedon or before 10 a.m., Wednesday,August 9, 1995, to the cashier, Bureauof Land Management, Montana StateOffice, Second Floor, Granite TowerBuilding, 222 North 32nd Street, PostOffice Box 36800, Billings, Montana59107–6800. The bids should be sent bycertified mail, return receipt requested,or be hand-delivered. The cashier willissue a receipt for each hand-deliveredbid. Bids received after that time willnot be considered.SUPPLEMENTARY INFORMATION: Biddinginstructions for the offered tract areincluded in the Detailed Statement ofLease Sale. Copies of the statement andthe proposed coal lease are available atthe Montana State Office. Casefiledocuments are also available for publicinspection at the Montana State Office.

Dated: June 29, 1995.Randy D. Heuscher,Acting Chief, Branch of Solid Minerals.[FR Doc. 95–16780 Filed 7–7–95; 8:45 am]BILLING CODE 4310–DN–P

[AZ–024–1330–00]

Draft White Canyon Resource PlanAmendment and EnvironmentalAssessment for the Phoenix ResourceManagement Plan and the SaffordDistrict Resource Management Plan,AZ

AGENCY: Bureau of Land Management,Interior.ACTION: Notice of availability.

SUMMARY: The Bureau of LandManagement, Phoenix District, inresponse to a land exchange proposal, ispreparing a Plan Amendment andEnvironmental Assessment to amendthe Phoenix Resource Management Planand the Safford District ResourceManagement Plan (RMPs) in compliancewith the Federal Land Policy andManagement Act of 1976, as amended,and Section 102(2)(c) of the NationalEnvironmental Policy Act of 1969. Theproposal involves exchanging selectedpublic lands for private lands with highresource values. The selected landsinclude 1,828 acres of federal mineralestate and 4,721 acres of public landswhich includes 160 non-wildernessacres of the White Canyon Area ofCritical Environmental Concern(ACEC)—most of the ACEC is nowmanaged as the White CanyonWilderness. Three hundred fifty-five(355) acres of these selected publiclands were transferred from the SaffordDistrict to the Phoenix Resource Area(Phoenix District) under a 1991boundary adjustment. The planamendment/environmental assessmentconsiders changing the current landtenure decision from retention for theselands and mineral estate to disposalthrough an exchange and considerschanging the White Canyon ACECdesignation. Four plan amendmentalternatives, including the no actionalternative, are analyzed. The proposedaction is to make available for exchange4,721 acres of public lands and 1,828acres of federal minerals, and to removeACEC designation from 300 non-wilderness acres of which 160 acres areto be included in the proposedexchange. The proposed action wouldalso remove ACEC designation from1,620 acres now included within theWhite Canyon Wilderness.

Written specific comments are neededon the draft to be considered in the finalamendment/environmental assessment.Public open houses will be held at thefollowing locations and times:Florence Open House, August 1, 1995,

3–7 p.m. at the Florence UnifiedSchool District Office, AdministrationBuilding, 350 S. Main St., Florence,Arizona 85232 (602) 868–2300.

Mesa Open House, August 2, 1995, 3–7 p.m. at the Cholla Room, CentennialHall, 201 North Center Street, Mesa,Arizona (602) 644–2178.

DATES: Written public comments may besubmitted during the open houses or tothe address given below. Publiccomments will be accepted untilSeptember 8, 1995.ADDRESSES: Written comments shouldbe mailed to and copies of the draft plan

amendment/environmental assessmentare available from: Bureau of LandManagement, Phoenix District Office,2015 West Deer Valley Road, Phoenix,AZ 85027, ATTENTION MCFARLINAMENDMENT.FOR FURTHER INFORMATION CONTACT:Shela McFarlin, Bureau of LandManagement, Phoenix District Office,2015 West Deer Valley Road, Phoenix,AZ 85027 or telephone (602) 780–8090.

Dated: June 30, 1995.G.L. Cheniae,District Manager.[FR Doc. 95–16781 Filed 7–7–95; 8:45 am]BILLING CODE 4310–32–P–M

Intent To Reopen Formal Scoping andHold Public Meetings Concerning theEnvironmental Impact Statement onthe Proposed Warm Springs Project;Iron, Kane, and Washington Counties,Utah; Coconino County, Arizona; andClark County, Nevada

AGENCY: Bureau of Land Management,Interior.ACTION: Notice.

SUMMARY: Notice is hereby given thatthe Bureau of Land Management (BLM)and the Office of Surface MiningReclamation and Enforcement (OSM)(the Agencies) intend to offer the publican opportunity to comment, in eitherwritten or oral form, on changes to theproposed size and mine life at theSmoky Hollow Mine that may affect theanalysis of impacts in theenvironmental impact statement (EIS)on the proposed Warm Springs Project.

Andalex Resources, Inc. (Andalex)has recently submitted revisions to thepermit application packages (PAPs) forthe proposed Smoky Hollow Mine.These revisions identify a proposedmining area of nearly 25,000 acres ofleased Federal and State land withinAndalex’s 36,419-acre leasehold thatwould contain sufficient coal reserves toaccommodate proposed undergroundmining operations over the next 40years. Previous proposals had identifieda mining area of 9,775 acres of Federaland State land that would have beenmined over a 30-year period. No othermajor changes are being proposed in therevisions to the PAPs. Coal would stillbe: (1) mined by underground methods,(2) produced at a rate in the range of 2.5to 3 million tons per year, and (3)hauled by contractor-supplied trucks tothe proposed unit-train loadout facilitiesnear Cedar City, Utah, and Moapa,Nevada. The larger mining area wouldconstitute an expansion of theunderground workings identified in the


original proposal, but would not involvean additional mine.

Formal scoping activities are beingannounced to explain the revisions tothe PAPs and solicit public inputpertaining to any additionalenvironmental concerns that may needto be addressed in the Warm SpringsProject EIS.DATES: Comment Period: Writtencomments pertaining to additionalenvironmental concerns that may needto be addressed in the EIS will beaccepted through September 5, 1995, ateither of the two locations listed below,under ADDRESSES.

Public Meetings: BLM and OSM willhold seven public meetings for thereceipt of oral statements pertaining toadditional environmental concerns thatmay need to be addressed in the EIS.The Agencies intend to conduct thesemeetings under an open-house format.No formal presentation will be given,but Agency representatives will be onhand to answer questions and receivepublic comment/statements. The firstopen-house/meeting will be held onAugust 8, 1995, in the Juniper No. 3Conference Room of the Holiday Inn,1575 West 200 North in Cedar City,Utah. Successive open-house/meetingswill be held on August 9, 1995, in theHurricane Senior Citizen Center, 95North 300 West in Hurricane, Utah;August 10, 1995, in the Tucson Room ofthe Little America Hotel, 500 SouthMain Street in Salt Lake City, Utah;August 14, 1995, in the MoapaCommunity Center, Highway 168 inMoapa, Nevada; August 15, 1995, in theWillows Room of the Shilo Inn, 296West 100 North in Kanab, Utah; andAugust 16, 1995, in the City of PageCouncil Chambers, 697 Vista Avenue inPage, Arizona. The final open-house/meeting will be held on August 17,1995, at the Embassy Suites Hotel, 706South Milton Road in Flagstaff, Arizona.Each open-house/meeting will begin at7 p.m. local time and continue as longas necessary to accommodate the needsof all interested parties. Agencyrepresentatives will remain present atthe open-house/meeting site until atleast 10 p.m.ADDRESSES: Written commentspertaining to additional environmentalconcerns that may need to be addressedin the EIS should be mailed or hand-delivered to either: (1) Mat Millenbach,Utah State Director, c/o Kanab ResourceArea, Bureau of Land Management, 318North 100 East, Kanab, Utah 84741,(Attention: Michael Noel); or (2) PeterA. Rutledge, acting Chief, TechnicalSupport Division, Office of SurfaceMining Reclamation and Enforcement,

Western Regional Coordinating Center,1999 Broadway, Suite 3320, Denver,Colorado 80202–5733, (Attention: FloydMcMullen).FOR FURTHER INFORMATION, contacteither: (1) Michael Noel, BLM EISProject Manager (telephone: 801–644–2672); or (2) Floyd McMullen, OSM EISProject Manager (telephone: 303–672–5601) at the Kanab, Utah and Denver,Colorado, locations given underADDRESSES.SUPPLEMENTARY INFORMATION: AndalexResources, Inc. (Andalex), withcooperation from: The Garkane PowerAssociation, Inc.; the Utah Power andLight Company; the Overton PowerDistrict; the U.S. West CommunicationsCompany; the Moapa Valley TelephoneCompany, Inc.; the Union PacificRailroad Company; the Kane CountyBoard of Commissioners; the IronCounty Board of Commissioners; and, aprivate, bulk-carrier transport company;proposes to develop the Warm SpringsProject.

The Warm Springs Project wouldhave seven elements: (1) the proposedSmoky Hollow Mine; (2) a proposed138–kV power transmission lineextending from an existing powerlinesoutheast of Big Water to the mine; (3)a proposed microwave communicationsystem that would serve the mine; (4)either the Warm Creek Road, an existingcounty-maintained road passing througha corner of the Glen Canyon NationalRecreation Area (NRA) which wouldrequire reconstruction and realignment,or the Benchtop Road, a new countyroad that would be constructed overNipple and Tibbet Benches; (5) aproposed unit-train loading facilityadjacent to the Union Pacific Railroadright-of-way (ROW) west of Cedar City,Utah, near Iron Springs; (6) a proposedunit-train loading facility adjacent to theUnion Pacific Railroad ROW southwestof Moapa, Nevada; and (7) a proposedtruck-maintenance facility near eitherFredonia, Arizona, or Hurricane, Utah.

The Smoky Hollow Mine would be anew underground coal mine located atthe site of the inactive Missing CanyonCoal (Test) Mine, about 6 miles north ofthe Glen Canyon NRA, 13 milesnortheast of the City of Big Water, Utah,and 15 miles north of the Arizona/Utahborder. The mine, the majority of thepowerline, the microwavecommunication system, and the WarmCreek/Benchtop Road would be locatedin eastern Kane County, Utah. Thereminder of the powerline would belocated in Coconino County, Arizona.The coal-loadout facilities would belocated in Iron County, Utah, and ClarkCounty, Nevada. The truck maintenance

facility would be located in eitherCoconino County, Arizona, orWashington County, Utah.

The proposed Smoky Hollow Minethat would be considered in theenvironmental analysis would be inoperation for up to 54 years, including1 to 2 years for premining constructionand development, 40 years of active coalmining, 2 years for reclamation, and, aminimum of 10 years for total bondrelease. Andalex proposes to eventuallyrecover 100 to 120 million tons of coalduring this period, using primarilylongwall mining methods. The coal,proposed to be produced at a rate in therange of 2.5 to 3 million tons per year,would be hauled by contractor-suppliedtrucks over county, State, and Federalroads to the new unit-train loadoutfacilities near Cedar City, Utah, andMoapa, Nevada. Once loaded onrailcars, produced coal would bedelivered to developing markets in thesouthwestern United States and inforeign countries along the western rimof the Pacific Ocean (the Pacific Rim).

The proposed Smoky Hollow Minearea would encompass about 25,000acres of land located in Secs. 25 through28, and 33 through 35, T. 40 S., R. 3 E.,Sec. 31, T. 40 S., R. 4 E.; Secs. 1, 3through 5, 8 through 15, 17 23 through25, and 36, T. 41 S., R. 3 E; and Secs.5 through 10, 16 through 21, and 29through 32, T. 41 S., R. 4 E., all in theSalt Lake Meridian. About 150 to 200acres in this area would be disturbed byexploration activities and by mine-support facilities (including ventilationfacilities, a coal stockpile, equipmentand operation buildings, coal-processingand loadout facilities, a sediment pond,and a topsoil stockpile). The surfaceeffects of underground mining(subsidence) within the Smoky HollowMine area could potentially occur onabout 14,000 acres.

BLM and OSM originally announcedtheir intent to jointly prepare an EIS onthe proposed Warm Springs Project onJuly 14, 1992 (57 FR 31207). Scopingactivities concerning the proposedProject and the EIS conducted by theAgencies since that time have, so far,resulted in over 1,000 letters and over3,000 comments from the interestedpublic.

At this time, BLM and OSM arerequesting that any interested partysubmit written comments, and/or attendone of the public meetings to submitoral statements, pertaining to additionalenvironmental concerns that may needto be addressed in the EIS. Comments/statements that are received will assistthe Agencies in gathering informationand in further defining the scope of


1 The record is defined in sec. 207.2(f) of theCommission’s Rules of Practice and Procedure (19CFR 207.2(f)).

2 For purposes of these investigations, certainpasta consists of dry non-egg pasta in packages offive pounds (or 2.27 kilograms) or less, whether ornot enriched or fortified or containing milk or otheroptional ingredients such as chopped vegtables,vegetable purees, milk, gluten, diasastes, vitamins,coloring and flavorings, and up to two percent eggwhite. The pasta covered by these investigations istypically sold in the retail market in fiberboard orcardboard cartons or polyethylene or polypropylenebags, of varying dimensions. Excluded from thescope of these investigations are refrigerated,frozen, or canned pastas, as well as all forms of eggpasta, with the exception of dry non-egg pastacontaining up to two percent egg white.

3 Chairman Peter S. Watson and Vice ChairmanJanet A. Nuzum made affirmative determinations onthe basis of the threat of material injury.

issues and concerns to be evaluated inthe EIS.

Please note that the current effort isan extension of the scoping activities forthe EIS that have been taking place overthe last several years. The Agencieshave retained the scoping commentssubmitted previously by the public andsuggest that commenters focus theirattention on those additionalenvironmental concerns that they feelneed to be addressed in the EIS. It is notnecessary to repeat comments that weresubmitted during previous scoopingactivities.

The EIS is being prepared to assist theAssistant Secretary of the Interior, Landand Minerals Management, and theBLM Authorized Officer(s) in makingdecisions to approve or disapprove themining plan and the various rights-of-way grants pertaining to the proposedProject.

The public should be aware that anymaterial(s) submitted in response to thisFederal Register notice will becomepart of the public record and will beaccessible to any member of the publicwho desire to see it.

Dated: June 28, 1995.G. William Lamb,Acting State Director, Utah State Office,Bureau of Land Management.[FR Doc. 95–16779 Filed 7–7–95; 8:45 am]BILLING CODE 4310–DQ–M

National Park Service

Notice of Meeting

SUMMARY: Notice is hereby given inaccordance with the Federal AdvisoryCommittee Act that a meeting of theDelta Region Preservation Commissionwill be held at 7 p.m. at the followinglocation and date.DATES: July 26, 1995.LOCATION: University of New Orleans,University Center, Room 211B,Lakefront, New Orleans, Louisiana70140.FOR FURTHER INFORMATION CONTACT:Mr. Robert Belous, Superintendent, JeanLafitte National Historical Park andPreserve, 365 Canal Street, Suite 3080,New Orleans, Louisiana 70130–1142,(504) 589–3882, extension 108.SUPPLEMENTARY INFORMATION: The DeltaRegion Preservation Commission wasestablished pursuant to Section 907 ofPublic Law 95–625 (16 U.S.C. 230f), asamended, to advise the Secretary of theInterior in the selection of sites forinclusion in Jean Lafitte NationalHistorical Park and Preserve, and in theimplementation and development of ageneral management plan and of a

comprehensive interpretive program ofthe natural, historic, and culturalresources of the Region.

The matters to be discussed at thismeeting include:—Old Business—New Business—New Discussion of Interpretive

Material—General Park Update

The meeting will be open to thepublic. However, facilities and space foraccommodating members of the publicare limited, and persons will beaccommodated on a first-come-first-served basis. Any member of the publicmay file a written statement concerningmatters to be discussed with theSuperintendent, Jean Lafitte NationalHistorical Park and Preserve.

Minutes of the meeting will beavailable for public inspection fourweeks after the meeting at the office ofJean Lafitte National Historical Park andPreserve.

Dated: June 21, 1995.Frank A. Catroppa,Acting Field Director Southeast Area.[FR Doc. 95–16845 Filed 7–7–95; 8:45 am]BILLING CODE 4310–70–M

INTERNATIONAL TRADECOMMISSION

[Investigations Nos. 701–TA–365–366(Preliminary) and 731–TA–734–735(Preliminary)]

Certain Pasta From Italy and Turkey

DeterminationsOn the basis of the record 1 developed

in the subject investigations, theCommission determines, pursuant tosections 703(a) and 733(a) of the TariffAct of 1930 (19 U.S.C. 1671b(a) and 19U.S.C. 1673b(a)), that there is areasonable indication that an industryin the United States is materiallyinjured by reason of imports from Italyand Turkey of certain pasta (exceptoriental-style noodles),2 provided for in

subheading 1902.19.20 of theHarmonized Tariff Schedule of theUnited States, that are alleged to besubsidized by the Governments of Italyand Turkey and that are alleged to besold in the United States at less than fairvalue (LTFV).3 The Commission alsounanimously determined that imports oforiental-style noodles from Italy andTurkey are negligible.

Background

On May 12, 1995, a petition was filedwith the Commission and theDepartment of Commerce by counsel forBorden, Inc., Columbus, OH; HersheyFoods Corp, Hershey, PA; and GoochFoods, Inc. (Archer Daniels MidlandCo.), Lincoln, NE, alleging that anindustry in the United States ismaterially injured or threatened withmaterial injury by reason of subsidizedimports of certain pasta from Italy orTurkey and by reason of LTFV importsfrom Italy and Turkey. Accordingly,effective May 12, 1995, the Commissioninstituted countervailing duty andantidumping investigations No. 701–TA–365–366 (Preliminary) and 731–TA–734–735 (Preliminary). The petitionin these investigations was filedsubsequent to the effective date of theUruguay Round Agreements Act(‘‘URAA’’). These investigations, thus,are subject to the substantive andprocedural rules of the law as modifiedby the URAA. See P.L. 103–465,approved Dec. 8, 1994, 108 Stat. 4809,at § 291.

Notice of the institution of theCommission’s investigations and of apublic conference to be held inconnection therewith was given byposting copies of the notice in the Officeof the Secretary, U.S. InternationalTrade Commission, Washington, DC,and by publishing the notice in theFederal Register of May 19, 1995 (60 FR26899). The conference was held inWashington, DC, on June 2, 1995, andall persons who requested theopportunity were permitted to appear inperson or by counsel.

The Commission transmitted itsdeterminations in these investigations tothe Secretary of Commerce on June 26,1995. The views of the Commission arecontained in USITC Publication 2905(July 1995), entitled ‘‘Certain pasta fromItaly and Turkey: Investigations Nos.701–TA–365–366 (Preliminary) and731–TA–734–735 (Preliminary).’’

Issued: June 28, 1995.


By order of the Commission.Donna R. Koehnke,Secretary.[FR Doc. 95–16803 Filed 7–7–95; 8:45 am]BILLING CODE 7020–02–P

[Investigations Nos. 731–TA–736 and 737(Preliminary)]

Large Newspaper Printing Presses andComponents Thereof, WhetherAssembled or Unassembled, FromGermany and Japan

AGENCY: United States InternationalTrade Commission.ACTION: Institution and scheduling ofpreliminary antidumping investigations.

SUMMARY: The Commission hereby givesnotice of the institution of preliminaryantidumping investigations Nos. 731–TA–736 and 737 (Preliminary) undersection 733(a) of the Tariff Act of 1930,as amended by section 212(b) of theUruguay Round Agreements Act(URAA), Public Law 103–465, 108 Stat.4809 (1994) (19 U.S.C. 1673b(a)) todetermine whether there is a reasonableindication that an industry in theUnited States is materially injured, or isthreatened with material injury, or theestablishment of an industry in theUnited States is materially retarded, byreason of imports from Germany andJapan of large newspaper printingpresses and components thereof,whether assembled or unassembled,provided for in subheadings 8443.11.10,8443.11.50, 8443.30.00, 8443.60.00, and8443.90.50 of the Harmonized TariffSchedule of the United States, that arealleged to be sold in the United Statesat less than fair value. Unless theDepartment of Commerce extends thetime for initiation pursuant to section732(c)(1)(B), the Commission mustcomplete preliminary antidumpinginvestigations in 45 days, or in this caseby August 14, 1995. The Commission’sviews are due at the Department ofCommerce within 5 business daysthereafter, or by August 21, 1995.

For further information concerningthe conduct of these investigations andrules of general application, consult theCommission’s Rules of Practice andProcedure, part 201, subparts A throughE (19 CFR part 201), and part 207,subparts A and B (19 CFR part 207).EFFECTIVE DATE: June 30, 1995.FOR FURTHER INFORMATION CONTACT:Tedford Briggs (202–205–3181), Officeof Investigations, U.S. InternationalTrade Commission, 500 E Street SW.,Washington, DC 20436. Hearing-impaired persons can obtaininformation on this matter by contacting

the Commission’s TDD terminal on 202–205–1810. Persons with mobilityimpairments who will need specialassistance in gaining access to theCommission should contact the Officeof the Secretary at 202–205–2000.Information can also be obtained bycalling the Office of Investigations’remote bulletin board system forpersonal computers at 202–205–1895(N,8,1).


BackgroundThese investigations are being

instituted in response to a petition filedon June 30, 1995, by Rockwell GraphicSystems, Inc., Westmont, IL.

Participation in the Investigations andPublic Service List

Persons (other than petitioners)wishing to participate in theinvestigations as parties must file anentry of appearance with the Secretaryto the Commission, as provided insections 201.11 and 207.10 of theCommission’s rules, not later than seven(7) days after publication of this noticein the Federal Register. The Secretarywill prepare a public service listcontaining the names and addresses ofall persons, or their representatives,who are parties to these investigationsupon the expiration of the period forfiling entries of appearance.

Limited Disclosure of BusinessProprietary Information (BPI) Under anAdministrative Protective Order (APO)and BPI Service List

Pursuant to section 207.7(a) of theCommission’s rules, the Secretary willmake BPI gathered in these preliminaryinvestigations available to authorizedapplicants under the APO issued in theinvestigations, provided that theapplication is made not later than seven(7) days after the publication of thisnotice in the Federal Register. Aseparate service list will be maintainedby the Secretary for those partiesauthorized to receive BPI under theAPO.

ConferenceThe Commission’s Director of

Operations has scheduled a conferencein connection with these investigationsfor 9:30 a.m. on July 21, 1995, at theU.S. International Trade CommissionBuilding, 500 E Street SW., Washington,DC. Parties wishing to participate in theconference should contact TedfordBriggs (202–205–3181) not later thanJuly 19, 1995, to arrange for theirappearance. Parties in support of theimposition of antidumping duties inthese investigations and parties in

opposition to the imposition of suchduties will each be collectivelyallocated one hour within which tomake an oral presentation at theconference. A nonparty who hastestimony that may aid theCommission’s deliberations may requestpermission to present a short statementat the conference.

Written SubmissionsAs provided in sections 201.8 and

207.15 of the Commission’s rules, anyperson may submit to the Commissionon or before July 26, 1995, a writtenbrief containing information andarguments pertinent to the subjectmatter of the investigations. Parties mayfile written testimony in connectionwith their presentation at the conferenceno later than three (3) days before theconference. If briefs or writtentestimony contain BPI, they mustconform with the requirements ofsections 201.6, 207.3, and 207.7 of theCommission’s rules.

In accordance with sections 201.16(c)and 207.3 of the rules, each documentfiled by a party to the investigationsmust be served on all other parties tothe investigations (as identified byeither the public or BPI service list), anda certificate of service must be timelyfiled. The Secretary will not accept adocument for filing without a certificateof service.

Authority: These investigations are beingconducted under authority of the Tariff Actof 1930, title VII, as amended by the URAA.This notice is published pursuant to section207.12 of the Commission’s rules.

Issued: July 3, 1995.By order of the Commission.

Donna R. Koehnke,Secretary.[FR Doc. 95–16802 Filed 7–7–95; 8:45 am]BILLING CODE 7020–02–P

DEPARTMENT OF LABOR

Employment and TrainingAdministration

Job Training Partnership Act:Technical Assistance for CET JobTraining Model Replication

The Department of Labor (DOL) isannouncing the availability of technicalassistance to Job Training PartnershipAct (JTPA) service providers. TheCenter for Employment Training (CET)is being funded by DOL to provide suchtechnical assistance to replicate the CETJob Training Model which has beenidentified as particularly effective intraining and placing hard-to-serve clientpopulations. Eight service providers


will receive technical assistance fromCET toward the development andimplementation of programs using theCET Job Training Model for use withinthe JTPA system in their communities.An additional 16 service providers mayreceive technical assistance pendingfunding availability.

Selected organizations would enterinto agreement with the Center forEmployment Training to receive thetechnical assistance required for thedevelopment and start-up of the localCET Job Training Model program. Thisis a non-monetary award to selectedsites.

A series of information seminars willbe held at CET’s headquarters in SanJose, California. Interested partiesshould contact CET to find out the datesof upcoming information seminars.Alternative arrangements can be madeto schedule a seminar or visit suitableto an organization’s own time frame. Tobe considered for receipt of technicalassistance, an eligible organizationmust: (1) Attend an information seminarand (2) submit a complete application toDOL, see below.TO ARRANGE ATTENDANCE AT ANINFORMATION SEMINAR: Arrangements toattend an information seminar shall bemade through Max Martinez, CETReplication Project Training Director,Center for Employment Training, 701Vine Street, San Jose, CA 95110. Thetelephone number is (408) 287–7924.That is not a toll-free number.APPLICATION DATES: Applications will beaccepted and reviewed on an opensubmission basis. Applications thatmeet program standards and eligibilitycriteria will be accepted on a first comebasis. Consequently, it is in the interestof organizations to submit proposals ona timely basis. To allow time forapplicants to attend an informationseminar, applications will be acceptedwith postmarks starting August 1. Once8 acceptable applications have beenreceived, other acceptable applicationsmay be placed on a waiting list forfuture technical assistance pendingadditional federal funding.APPLICATION ADDRESS: Applications forthis technical assistance award shall bemailed by certified mail, return receiptrequested, to Janice Perry, Grant Officer,Department of Labor, 200 ConstitutionAvenue, NW., Room S–4203,Washington, DC 20210. The telephonenumber is (202) 219–8702. This is nota toll free number.FOR FURTHER INFORMATION CONTACT: LisaStuart, Employment and TrainingAdministration, Department of Labor,200 Constitution Avenue, NW., RoomN–4666, Washington, DC 20210. The

telephone number is (202) 219–6825.This is not a toll-free number.


Background

The Center for Employment Trainingoffers a unique program whichchallenges standard notions of trainingthe disadvantaged. It provides a holisticapproach to train the hard-to-servethrough an integrated program ofpractical hands-on job skills trainingand in-context remediation includingEnglish-as-a-Second Language. CETfocuses on technical skills training, butintegrates basic education and relatedservices in context with this coretraining. This method of learning wasendorsed by the Secretary of Labor’sCommission on Achieving NecessarySkills (SCANS). CET’s program isunique in that it is accessible to all, withno entry tests or screening out hard-to-serve clients. This represents thedirection of the 1992 JTPA amendments,which stress targeting of services tothose most in need and intensifying andimproving the quality of servicesoffered. The CET design, asimplemented through this replication,will reflect key provisions of the newJTPA program design such as targetingthe hard-to-serve, comprehensive one-stop services, integration of training andremediation, and focus on quality jobsenabling self-sufficiency.

CET is widely recognized as one ofthe most effective job training programsin the country. CET’s program servingminority single mothers was the onlyprogram to have a significant long-termimpact in a comprehensive study, theMinority Female Single ParentDemonstration, funded by theRockefeller Foundation and conductedby Mathematica Policy Research.Additionally, recent research ondropout youth, known as theJOBSTART study, conducted by theManpower Demonstration ResearchCorporation (MDRC), found that CETwas the only program, of thirteenstudied, that achieved significantimpacts. These studies providesignificant evidence of the effectivenessof CET’s program model.

Technical Assistance

Technical assistance will be providedfor up to 24 sites to replicate the CETJob Training Model. This technicalassistance award will provide fortraining and technical assistance forlocal entities which are selected tooperate CET Job Training Modelprograms. This award to CET is made asa modification to an existing DOL–CETagreement that previously provided for

training and technical assistance for upto 14 sites.

Selected organizations would enterinto agreements with the Center forEmployment Training to receive thetechnical assistance required for thedevelopment and start-up of the localCET Job Training Model program. Thisis a non-monetary award to selectedsites.

The technical assistance awardincludes the provision of local and CETon-site training to enable anorganization to start its own CET JobTraining Model program. Trainingwould be provided during the period ofagreement between CET and theselected site(s). The award covers thecost of services that will be required ofCET in providing technical assistance.Start-up costs, including sitedevelopment and preliminary staffingcosts, will be the responsibility of theselected service providers. Operationscosts of the selected CET model programalso are not included and are expectedto come from the organization’s regularJTPA, JOBS, and other local, state andfoundation funding.

EligibilityThis award is to provide services to

the JTPA community. Eligibleapplicants are limited to servicedelivery area JTPA administrativeentities who run their own trainingprograms, consortiums of serviceproviders, not-for-profit community-based organizations as defined underSection 4 of JTPA and local educationorganizations. Two types of applicationswill be accepted:

(1) Applications from JTPAadministrative entities, and (2) jointapplications with one party being theJTPA administrative entity and the otherbeing an organization listed above.Applications that do not include thelocal JTPA administrative entity will notbe accepted. This process is to ensurethat all service providers havecoordinated with their JTPA fundingstream and that the administrativeentity has committed to funding theprogram the service provider is beingtrained to operate.

JTPA administrative entities will havethe opportunity, if desired, to sub-contract with CET directly to establisha CET administered job training center.This would be done through a solesource arrangement where localprocurement processes allow for it.

Information SeminarsThe three day information seminars

are targeted to JTPA programadministrators, community basedtraining organizations, government


officials, foundation directors or otherindividuals that would be involved infunding or operating the modelprogram. The principal decision makersfor these entities are the desiredparticipants.

The seminars will provideparticipants with the opportunity totour CET skill training centers and todirectly observe the CET job trainingmodel in action. It will provide theopportunity to meet and interact withCET instructors and students.Distinguished researchers will presentstudy results related to their research ofthe CET program design. Informationwill be provided about CET’s technicalassistance program, the process forapplying for technical assistance andthe requirements for selection of CETmodel development sites. Applicantsare encouraged to attend an informationseminar prior to submitting theirapplications.

ApplicationsApplications will be accepted on a

first come first serve basis startingAugust 1, 1995 from eligible applicantsthat meet the standards below.

To be considered, all applicants mustmeet the following standards:

(1) Applicants must be or become aJTPA service provider. If the serviceprovider is not the JTPA administrativeentity, the application must besubmitted jointly with the JTPAadministrative entity. A jointapplication should elaborate on therelationship between the serviceprovider and the administrative entity.This should include descriptions ofprevious services; JTPA, JOBS and othertraining contract funding levels; and thelevel of cooperation between the serviceprovider and the administrative entity.

(2) The proposed service providermust include a written commitmentfrom their organization’s board ofdirectors.

(3) Applicants must be able to showthat there is solid JTPA or other fundingsources available to the proposedservice provider. The applicants mustcommit to or have a reasonablelikelihood of receiving operating fundsof at least $1,000,000 a year. A smalleramount may be acceptable for SDAs andother organizations operating incommunities with limited fundingresources. Any local procurementprocedures that would be required priorto initiating the project, including thosefor a sole source award, if applicable,should be detailed. A timeline for theprocurement process should beprovided.

(4) The applicants must show asubstantial startup funding

commitment. A minimum of $250,000 isexpected although lesser amounts withan explanation of why that level offunding is sufficient may be acceptable.

(5) The applicants must commit tosending staff for training throughout thetechnical assistance period.

(6) The applicants must commit tofollow all key aspects of the CET-modeltraining design, as discussed at theinformation seminar, including openadmission of hard-to-serve clientgroups.

(7) The applicant must indicate itswillingness to: (a) begin staff trainingwithin 3 months of notice of technicalassistance award and, (b) open a newtraining site within 6 months of noticeof technical assistance award. Thoseapplicants who wish to scheduletechnical assistance after this period areencouraged to submit applications.Services to those applicants, however,will be contingent upon additionalfederal funding and may not be selectedas part of this first come first serverequest for proposals.

(8) The applicants must stipulatewhich of the following replication siteservice provider option it wishes topursue:

a. An incorporated SDA with501(c)(3) status operates the program;

b. A non-SDA, nonprofit, community-based or local education organizationoperates the program; or

c. The Center for EmploymentTraining operates the program.

(9) The applicants must state that theyare willing to participate in evaluationstudies.

Applications will be reviewed againstthe above standards. All acceptableapplications will be ranked based upondate received. The initial 8 sites will beprovided with technical assistanceunder this agreement. Additionalservice providers, including thoseapplicants who request assistanceoutside the current time frame, will beserved contingent upon the availabilityof funds. Applications which do notmeet the standard will be notified withan explanation.

Signed at Washington, DC, this 30th day ofJune 1995.

James M. Aaron,Director, Office of Employment and TrainingPrograms.[FR Doc. 95–16831 Filed 7–7–95; 8:45 am]

BILLING CODE 4510–30–M

NATIONAL AERONAUTICS ANDSPACE ADMINISTRATION

[Notice (95–052)]

NASA Advisory Council (NAC), SpaceScience Advisory Committee (SScAC),Meeting

AGENCY: National Aeronautics andSpace Administration.ACTION: Notice of meeting.

SUMMARY: In accordance with theFederal Advisory Committee Act, Pub.L. 92–463, as amended, the NationalAeronautics and Space Administrationannounces a forthcoming meeting of theNASA Advisory Council, Space ScienceAdvisory Committee.DATES: Monday, July 31, 1995, 8:30 a.m.to 5:00 p.m.; Tuesday, August 1, 1995,8:30 a.m. to 5:00 p.m.ADDRESSES: NASA Headquarters,Conference Room MIC 6–A&B–West,300 E Street SW., Washington, DC20546.FOR FURTHER INFORMATION CONTACT:Kathy Dakon, Code SZ, NationalAeronautics and Space Administration,Washington, DC 20546, 202/358–0732.SUPPLEMENTARY INFORMATION: Themeeting will be open to the public upto the capacity of the room. The agendafor the meeting is as follows:—Status of Prior SScAC

Recommendations—Agency Streamlining—Science Policy Guide—FY 96 Budget Update—Subcommittee Business

It is imperative that the meeting beheld on these dates to accommodate thescheduling priorities of the keyparticipants. Visitors will be requestedto sign a visitor’s register.

Dated: June 30, 1995.Timothy M. Sullivan,Advisory Committee Management Officer.[FR Doc. 95–16833 Filed 7–7–95; 8:45 am]BILLING CODE 7510–01–M

NUCLEAR REGULATORYCOMMISSION

Report to Congress on AbnormalOccurrences October–December,1994; Dissemination of Information

Section 208 of the EnergyReorganization Act of 1974, asamended, requires NRC to disseminateinformation on abnormal occurrences(AOs) (i.e., unscheduled incidents orevents that the Commission determinesare significant from the standpoint ofpublic health and safety). During the


fourth quarter of CY 1994, the followingincidents at NRC licensed facilities weredetermined to be AOs and are describedbelow, together with the remedialactions taken. The events are also beingincluded in NUREG–0090, Vol. 17, No.4, (‘‘Report to Congress on AbnormalOccurrences: October–December 1994’’).This report will be available at NRC’sPublic Document Room, 2120 L StreetNW. (Lower Level), Washington, DC20037 about three weeks after thepublication date of this Federal RegisterNotice.

Nuclear Power Plants

94–20 Core Shroud Cracking in BoilingWater Reactors

One of the AO reporting guidelinesnotes that a major deficiency in design,construction, or operation having safetyimplications requiring immediateattention can be considered an AO. Asecond reporting guideline notes thatrecurring incidents and incidents withimplications for similar facilities(generic incidents) that create a majorsafety concern can be considered an AO.

Date and Place—From October 1993through the present, various GeneralElectric-designed boiling water reactors.

Nature and Probable Consequences—Intergranular stress corrosion cracking(IGSCC) of General Electric (GE)-designed boiling water reactor (BWR)reactor vessel internals has beenidentified as a technical issue ofconcern by both NRC and the industry.Core shroud cracking as a result ofIGSCC was initially discovered overseasand later identified in operating BWRplants within the United States.Although no adverse consequences areexpected at currently observed levels ofshroud cracking, it has been postulatedthat a 360-degree through-wall coreshroud crack in concert with a loss-of-coolant accident has the potential tolead to core damage.

NRC has been meeting every yearsince 1988 with the BWR Owners Group(BWROG) and GE to review the genericsafety implications of potential failureof reactor internals, with IGSCC as oneof the failure mechanisms of concern.

Cracking of BWR core shrouds wasfirst observed in an overseas BWR in1990. It was located in the heat affectedzone of a circumferential weld in thebeltline elevation of the shroud, andwas reported by GE via RapidInformation Communication ServicesInformation Letter (RICSIL) 054. Thecore shroud is a stainless steel cylinderwhich performs the following functions:(1) Separates feedwater in the reactorvessel’s downcomer annulus fromcooling water flowing through the

reactor core, (2) maintains coregeometry, and (3) provides a refloodablevolume under postulated accidentconditions. The potential loss of arefloodable volume under accidentconditions has the potential of resultingin core damage making BWR coreshroud cracking the most significantconcern related to potential failures ofreactor internals reported during 1993and 1994.

In response to this concern, severalactions were taken by NRC. In a meetingwith the BWROG in January 1992, thestaff emphasized that a comprehensiveprogram should be developed to addressinternals cracking and that the utilitiesshould adopt an enhanced inspectionprogram. In September 1993,Information Notice (IN) 93–79,‘‘Cracking at the Beltline Region Weldsin Boiling Water Reactors,’’ was issuedin response to the discovery ofsignificant circumferential cracking ofthe core shroud welds at BrunswickUnit 1. (This event was also included inNRC’s ‘‘Report to Congress on AbnormalOccurrences, October–December 1993.’’[NUREG–0090, Vol. 16, No. 4]).Following the additional discovery ofsignificant core shroud cracks atDresden Unit 3 and Quad Cities Unit 1in May and June 1994, respectively,NRC issued IN 94–42 ‘‘Cracking in theLower Region of the Core Shroud inBoiling Water Reactors,’’ June 7, 1994;IN 94–42 Supplement 1, July 19, 1994;and Generic Letter (GL) 94–03,‘‘Intergranular Stress Corrosion Crackingof BWR Core Shrouds,’’ July 25, 1994.

GL 94–03 requested that BWRlicensees inspect their core shrouds atthe next refueling outage, and performa safety analysis to support continuedoperation of their facilities untilcorrective actions were implemented.During the same period of time, theBWROG initiated the BWR Vessels andInternals Project (BWRVIP) to facilitateindustry response to the core shroudand internals cracking issues. Licenseeresponses to GL 94–03 were receivedduring August and September 1994, andseveral BWR licensees began outages inSeptember 1994.

Cause or Causes—IGSCC of BWRvessel internals is a time dependentmaterial degradation process which isaccelerated by the presence of crevices,residual stresses, material sensitization,irradiation, cold work and corrosiveenvironments.

Actions Taken To Prevent RecurrenceLicensees—Several domestic BWR

licensees performed visualexaminations of their core shrouds inaccordance with the recommendationsof GE RICSIL 054 or GE Services

Information Letter (SIL) 572, which wasissued in late 1993 and incorporatesdomestic experience.

NRC—Because of the extent ofcracking observed, NRC evaluated safetyconcerns associated with the possibilityof a 360-degree circumferentialseparation of the shroud following apipe break. Such separation might eitherprevent full insertion of the controlrods, or open a gap in the shroud largeenough so that the resulting leakagewould limit adequate core cooling bythe emergency core cooling system. Theaccident scenarios of primary concernare the main steam line break and therecirculation line break, which arenormally referred to as loss-of-coolantaccidents.

The most serious event associatedwith cracks in the upper shroud weldsis the steam line break, since the liftingforces generated may be sufficient toelevate the top guide and potentiallyaffect the ability to insert rods. The mostserious event associated with cracks inthe lower elevations of the core shroudis the recirculation line break. Arecirculation line break concurrent witha 360-degree through-wall weld failurecould cause a lateral displacement ofthe shroud or opening of a crack, whichwould allow enough leakage throughthe shroud and out of the break affectingthe ability to adequately cool the core.

NRC performed a probabilistic riskassessment of the consequences ofshroud separation at the lower elevationfor Dresden Unit 3 and Quad Cities Unit1. The assessment estimated thepotential contribution to core damagefrequency from a cracked shroud.Assuming that severe shroud cracking(360-degree through-wall cracking) didexist, a large rupture of either a steamor recirculation line would have tooccur to generate sufficiently large loadsto move the shroud. No events involvinga large rupture of a steam line orrecirculation line have ever occurred,and probabilistic risk assessments haveshown that such ruptures have a lowprobability of occurring. Furthermore,for welds in the upper portion of theshroud, such extensive degradation inand of itself can be detected duringnormal operation by a power/flowmismatch condition.

From the above evaluations, NRCmade conservative estimates of the riskcontribution to core damage fromshroud cracking and concluded thatimmediate corrective actions are notnecessary. Although immediate plantshutdowns to implement correctiveactions are not necessary, degradation ofthe core shroud does have the potentialto impact plant safety. The core shroudprovides the important functions of


properly directing coolant flow throughthe core, maintaining core geometry,and providing a refloodable volumeunder postulated accident conditions.NRC therefore considers that 360-degreecracking of the shroud is a safetyconcern for the long term based on: (1)The potential to exceed the AmericanSociety of Mechanical Engineer Code’sstructural margins, if the cracks aresufficiently deep and continue topropagate through the subsequentoperating cycle; and (2) the potentialeffects on the ability to protect againstcore damage.

Even though licensees have justified(through engineering evaluations)continued operation with significantcracks existing in core shrouds, BWRswith core shroud materials susceptibleto IGSCC will eventually have to berepaired or modified to inhibit crackingand thereby assure structural integrity ofthe shrouds in the long term.

Due to the location and the extent ofthe cracking recently found, NRC andthe BWROG agreed that additionalattention to this issue was warranted.BWROG met with NRC on June 28,1994, to announce the formation ofBWRVIP, which is headed by severalhigh level utility executives to direct itsefforts. BWRVIP has since submitteddocuments which addressed anintegrated safety assessment of theissue, inspection plans for the reactorinternals, and generic criteria for repairsand flaw acceptance.

NRC has reviewed these documentsand concurs with the BWRVIPrecommended generic repair criteriaand flaw assessment methodology.Inspection scope and methodology arestill under consideration.

In addition to the aboves actions, inorder to verify compliance with thestructural integrity requirements of 10CFR 50.55a and to assure that the riskassociated with core shroud crackingremains low, NRC concluded that it isappropriate for BWR licensees toimplement timely inspections and/orrepairs, as appropriate, at their plants.To implement this position, NRC issuedGL 94–03 (July 25, 1994) whichrequested BWR licensees to inspecttheir core shrouds by the next outageand to justify continued safe operationuntil all appropriate corrective actionshave been implemented.* * * * *

Other NRC Licensees

(Industrial Radiographers, MedicalInstitutions, Industrial Users, etc.)

94–21 Recurring Incidents ofAdministering Higher Doses ThanProcedurally Allowed for DiagnosticImaging at Ball Memorial Hospital inMuncie, Indiana

One of the AO reporting guidelinesnotes that a serious deficiency inmanagement or procedural controls in amajor area can be considered an AO.

Date and Place—October 1988through June 1993; Ball MemorialHospital; Muncie, Indiana.

Nature and Probable Consequences—On July 19, 1993, NRC was notified thatnuclear medicine technologistsemployed by the licensee had increasedthe dosages of radiopharmaceuticalsused in diagnostic studies. NRC wasalso informed that the technologists hadfalsified the required records of thedosages administered.

On July 21 through August 9, 1993,NRC conducted an inspection of thelicensed facility. The inspectionrevealed that since 1988, nuclearmedicine technologists employed by thelicensee have been administeringradiopharmaceutical dosages above theapproved dose ranges for diagnosticimage studies by as much as 40 percent.The inspection also verified thatsubsequent to administering high doses,the technologists entered falseinformation in NRC-required records.The doses were increased for imagingstudies of the lung, liver, bone, andgastrointestinal tract using technetium–99m and xenon–133.

NRC inspectors did not identify anymedical misadministrations, as definedin 10 CFR 35.2, as a result of thispractice of administering higher thanapproved doses for diagnostic imaging.

Cause or Causes—According to thelicensee, one technologist told licenseeofficials that dosages were increased tominimize patient discomfort, to reduceimaging time for critically ill patientsand to enhance the clarity of images forstudies performed on obese patients.

Action Taken To Prevent RecurrenceLicensee—The licensee conducted an

internal review. Based on the findingsfrom this review, the licensee initiallysuspended two nuclear medicinetechnologists from all NRC-licensedactivities. Subsequently, the licenseeterminated one of the two individualsand the other individual was allowed tocontinue to perform duties that do notinvolve NRC-licensed activities.

The licensee also committed to anumber of corrective actions. Some ofthe corrective actions include:

Assigning a pharmacist or a radiologistto verify all radioisotope dosages;implementing a unit dose system;obtaining the services of an assistantradiation safety officer; and conductingmonthly and quarterly audits of theNuclear Medicine Section for at leastone year.

NRC—A special safety inspection wasconducted by NRC from July 21 toAugust 9, 1993. Subsequent to thatinspection, NRC conducted a followupreview.

NRC issued a Confirmatory ActionLetter on July 26, 1993, and aConfirmatory Order Modifying Licenseon October 20, 1993. These documentedspecific procedures and verifications toprevent any further unauthorizedincreases in patient doses.

On May 23, 1994, NRC issued anOrder against a former nuclear medicinetechnologist of the licensee. The Orderrequired the following: (1) Prohibitedthe technologist from involvement inNRC-licensed activities for a period ofone year; (2) required the technologist toprovide a copy of the Order to anyprospective employer who engages inNRC-licensed activities for a three-yearperiod; and (3) required the technologistto notify NRC within 20 days ofaccepting employment involving NRC-licensed activities.

On May 27, 1994, the technologistrequested a hearing and on September26, 1994, a settlement agreement wasreached. The settlement was reviewedand approved by the Atomic Safety andLicensing Board on October 3, 1994.The agreement resulted in thewithdrawal of the requirement for thetechnologist to provide a copy of theOrder to any prospective employer whoengages in NRC-licensed activities. Thesettlement retained provisions (1) and(3) of the Order.* * * * *

94–22 Medical TherapyMisadministration at Veterans AffairsMedical Center in Long Beach,California

One of the AO reporting guidelinesnotes that a therapeutic exposure to anypart of the body not scheduled toreceive radiation can be considered anAO.

Date and Place—August 9, 1994;Veterans Affairs Medical Center; LongBeach, California.

Nature and Probable Consequences—On August 9, 1994, the licensee’sradiation safety officer (RSO) notifiedNRC of a misadministration involving atherapeutic dose of strontium–89 (Sr–89).

The RSO reported that a patientscheduled to receive 185 megabecquerel


(MBq) (5 millicurie [mCi]) of thallium–201 (a radiopharmaceutical notregulated by NRC) for a myocardialperfusion study was mistakenlyadministered 148 MBq (4 mCi) of Sr–89(which is regulated by NRC). Based onthe misadministration of the Sr–89, thelicensee estimated that the patientreceived 250 centigray (250 rads) to thesurface of the bone. The RSO reportedthat no action was taken to mitigate theconsequences of the dose (i.e.,administration of calcium as a blockingagent) because the patient had apreexisting heart condition which couldhave been exacerbated by administeringcalcium. The licensee also stated thatmedical experts were contacted to assistin an assessment of potential healtheffects to the patient. In addition, thelicensee reported that with theexception of emergency procedures, ithad voluntarily suspended all nuclearmedicine procedures involving theintravenous administration ofradiopharmaceuticals and had initiatedan internal review of themisadministration.

On August 10, 1994, NRC issued aConfirmatory Action Letter to confirmthe licensee’s actions as stated above.

Cause or Causes—The cause of themisadministration was attributed to theadministering technologist’s failure toverify the isotope as well as the dosage(by reading the label on the syringe)prior to injection.

Actions Taken To Prevent RecurrenceLicensee—Corrective actions initially

proposed by the licensee included thefollowing: (1) Physically separatingdiagnostic unit dosages from therapeuticradiopharmaceutical dosages in thelicensee’s hot lab; (2) packaging unitdosages received from a localradiopharmacy in different containers,according to isotopes; and (3) retrainingtechnologists in requirements foridentifying radiopharmaceuticals priorto injection.

NRC—Two NRC inspectors conducteda special safety inspection on August10–12 and 17–19, 1994, to review thecircumstances associated with themisadministration and to review thelicensee’s corrective actions. Inaddition, NRC contracted a medicalphysician consultant to assist in itsevaluation of the potentialconsequences of the patient’s radiationexposure. The consultant stated thatthere were no adverse health effects tothe patient.

An Enforcement Conference was heldwith the licensee on November 30,1994, to discuss an apparent violationinvolving the failure of an individualworking under the supervision of an

authorized user physician to follow thelicensee’s written radiation safetyprocedures. Additional concernsdiscussed during the conferenceincluded the licensee’s use of aninformal labeling system for unitradiopharmaceuticals which wasidentified as a potential programmaticweakness. The licensee presentedinformation during the conferencewhich supported its view that the errorwhich led to the August 9, 1994,misadministration was an isolatedfailure rather than a programmaticproblem.

Based on its review of informationdeveloped during the inspection andinformation provided during theEnforcement Conference, NRCconcluded that the misadministrationwas the result of an isolated failure. ANotice of Violation was issued onDecember 29, 1994, for a violationinvolving the failure of an individualworking under the supervision of aphysician authorized user to follow thelicensee’s written procedures forverifying a radiopharmaceutical doseprior to administration to a patient. Theviolation was categorized as a SeverityLevel IV violation.* * * * *

94–23 Medical BrachytherapyMisadministration at North MemorialMedical Center in Robbinsdale,Minnesota

One of the AO reporting guidelinesnotes that a therapeutic exposure to anypart of a body not scheduled to receiveradiation can be considered an AO.

Date and Place—August 3, 1994;North Memorial Medical Center;Robbinsdale, Minnesota.

Nature and Probable Consequences—On August 15, 1994, a licensee informedNRC that a patient received 1380centigray (cGy) (1380 rads) to a wrongtreatment site during a brachytherapytreatment for metastatic lung cancer.

On August 3, 1994, a catheter wasinserted into the patient’s bronchus anda ribbon containing 20 seeds of iridium–192 having a total activity of 673.4megabecquerel (18.2 millicuries) wasthen inserted into the catheter andmoved to the proper treatment location.The treatment plan was intended todeliver a prescribed dose of 2000 cGy(2000 rads) to the intended target. Thetreatment began at 11:15 a.m. on August3, 1994, and continued until itsscheduled completion at 10:15 a.m. onAugust 4, 1994.

At about 7 p.m. on August 3, 1994, anurse informed the physician that thevisible portion of the catheter appearedto be protruding approximately 25.4 to30.5 centimeters (10 to 12 inches) from

the patient’s nose. This was asignificantly greater protrusion thanpreviously observed, indicating that thecatheter had moved from its initialplacement. The nurse secured thecatheter in place with additional tape.The physician stated that, based on theinformation available to him at thattime, he determined that the catheterand ribbon had moved but that thetumor was receiving some radiationdose and therefore he continued thetreatment. The iridium-192 seeds wereremoved on August 4 as planned. OnAugust 4, 1994, a staff radiologist readthe portable x-ray film taken on August3, 1994, and indicated that the iridiumimplant was not seen.

Due to catheter displacement, thetumor dose was significantly reducedand estimated to be 620 cGy (620 rads)or 31 percent of the intended dose. Theremaining dose of 1380 cGy (1380 rads)was delivered to an unintended site.

The patient was notified of the eventby the treating physician on August 4,1994, and again by another physician onAugust 17, 1994. The referringphysician was informed by the treatingphysician on August 4, 1994.

An NRC medical consultant wasretained to perform a clinicalassessment of this misadministration.The medical consultant concluded thatit is improbable that the patient willexperience any long term consequencesas a result of the exposure to theunintended treatment site.

Cause or Causes—The licensee hasdetermined that the catheter movementcaused a misadministration of theintended dose. Two possibleexplanations for the catheter movementcould be the following: (1) Failure toproperly secure the catheter in placewith tape; or (2) nasal dischargedecreasing the adhesive capability of thetape.

Action Taken To Prevent RecurrenceLicensee—The licensee’s corrective

actions include: amending the nursingstaff procedure so that the attendingphysician will be contacted if there arefurther questions; directing nurses tofollow the standing protocol forobtaining an administrative consult;providing additional inservice training;documenting the final length of thecatheter in the patient chart; anddocumenting the catheter position oneach visit to the patient’s room.

NRC—NRC conducted a safetyinspection from August 15 throughSeptember 7, 1994, to review thecircumstances of the misadministration.One apparent violation and one area ofconcern were identified. AnEnforcement Conference was held with


the licensee on October 11, 1994.Enforcement action is pending. NRC iscontinuing its review.* * * * *

A copy of NUREG–0090, Vol. 17, No.4 is available for inspection or copyingfor a fee at the NRC Public DocumentRoom, 2120 L Street NW., (lower level),Washington, DC 20037, or at any of thenuclear power plant Local PublicDocument Rooms throughout thecountry.

Copies of this report (or any of theprevious reports in this series), may bepurchased from the Superintendent ofDocuments, U.S. Government PrintingOffice, Post Office Box 37082,Washington, DC 20013–7082. A year’ssubscription to the NUREG–0090 seriespublication, which consists of fourissues, is also available.

Copies of the report may also bepurchased from the National TechnicalInformation Service, U.S. Department ofCommerce, 5285 Port Royal Road,Springfield, VA 22161.

Dated at Rockville, MD this 3rd day of July1995.

For the Nuclear Regulatory Commission.John C. Hoyle,Secretary of the Commission.[FR Doc. 95–16808 Filed 7–7–95; 8:45 am]BILLING CODE 7590–01–M

[Docket No. STN 50–456]

Commonwealth Edison Company;Braidwood Station, Unit 1;Environmental Assessment andFinding of No Significant Impact

The U.S. Nuclear RegulatoryCommission (the Commission) isconsidering issuance of an exemptionfrom Facility Operating License No.NPF–72, issued to the CommonwealthEdison Company (the licensee), forBraidwood Station, Unit 1, located inWill County, Illinois.

Environmental Assessment

Identification of Proposed Action

The proposed action requests anexemption from certain requirements of10 CFR 50.60, ‘‘Acceptance Criteria forFracture Prevention Measures for Light-Water Nuclear Power Reactors forNormal Operation,’’ to allow applicationof an alternate methodology todetermine the low temperatureoverpressure protection (LTOP) setpointfor Braidwood Station, Unit 1. Theproposed alternate methodology isconsistent with guidelines developed bythe American Society of MechanicalEngineers (ASME) Working Group onOperating Plant Criteria (WGOPC) todefine pressure limits during LTOP

events that avoid certain unnecessaryoperational restrictions, provideadequate margins against failure of thereactor pressure vessel, and reduce thepotential for unnecessary activation ofpressure-relieving devices used forLTOP. These guidelines have beenincorporated into Code Case N–514,‘‘Low Temperature OverpressureProtection,’’ which has been approvedby the ASME Code Committee.

The content of this code case has beenincorporated into Appendix G ofSection XI of the ASME Code andpublished in the 1993 Addenda toSection XI. The NRC staff is revising 10CFR 50.55a, which will endorse the1993 Addenda and Appendix G ofSection XI into the regulations.

The philosophy used to develop CodeCase N–514 guidelines is to ensure thatthe LTOP limits are still below thepressure/temperature (P/T) limits fornormal operation, but allow thepressure that may occur with activationof pressure-relieving devices to exceedthe P/T limits, provided acceptablemargins are maintained during theseevents. This philosophy protects thepressure vessel from LTOP events, andstill maintains the TechnicalSpecification P/T limits applicable fornormal heatup and cooldown inaccordance with Appendix G to 10 CFRPart 50 and Sections III and XI of theASME Code. The exemption wasrequested by the licensee by letter datedNovember 30, 1994, and supplementedby letter dated May 11, 1995.

The Need for the Proposed ActionIn 10 CFR 50.60 it states that all light-

water nuclear power reactors must meetthe fracture toughness and materialsurveillance program requirements forthe reactor coolant pressure boundary asset forth in Appendices G and H to 10CFR Part 50. Appendix G to 10 CFR 50defines P/T limits during any conditionof normal operation, includinganticipated operational occurrences andsystem hydrostatic tests, to which thepressure boundary may be subjectedover its service lifetime. It is specifiedin 10 CFR 50.60(b) that alternatives tothe described requirements inAppendices G and H to 10 CFR Part 50may be used when an exemption isgranted by the Commission under 10CFR 50.12.

To prevent transients that wouldproduce pressure excursions exceedingthe Appendix G P/T limits while thereactor is operating at low temperatures,the licensee installed an LTOP system.The LTOP system includes pressurerelieving devices in the form of Power-Operated Relief Valves (PORVs) that areset at a pressure low enough that if a

transient occurred while the coolanttemperature is below the LTOP enablingtemperature, they would prevent thepressure in the reactor vessel fromexceeding the Appendix G P/T limits.To prevent these valves from lifting asa result of normal operating pressuresurges (e.g., reactor coolant pumpstarting, and shifting operating chargingpumps) with the reactor coolant systemin a water solid condition, the operatingpressure must be maintained below thePORV setpoint.

In addition, in order to preventcavitation of a reactor coolant pump, theoperator must maintain a differentialpressure across the reactor coolantpump seals. Hence, the licensee mustoperate the plant in a pressure windowthat is defined as the difference betweenthe minimum required pressure to starta reactor coolant pump and theoperating margin to prevent lifting ofthe PORVs due to normal operatingpressure surges. The licensee’s LTOPanalysis indicates that using theAppendix G safety margins to determinethe PORV setpoint would result in apressure setpoint within its operatingwindow, but there would be no marginfor normal operating pressure surges.Therefore, operating with these limitscould result in the lifting of the PORVsand cavitation of the reactor coolantpumps during normal operation.Therefore, the licensee proposed that indetermining the PORV setpoint forLTOP events for Braidwood, theallowable pressure be determined usingthe safety margins developed in analternate methodology in lieu of thesafety margins required by Appendix Gto 10 CFR Part 50. The alternatemethodology is consistent with ASMECode Case N–514.

An exemption from 10 CFR 50.60 isrequired to use the alternatemethodology for calculating themaximum allowable pressure for LTOPconsiderations.

Environmemntal Impacts of theProposed Action

The Commission has completed itsevaluation of the licensee’s application.

Appendix G of the ASME Coderequires that the P/T limits becalculated: (a) using a safety factor oftwo on the principal membrane(pressure) stresses, (b) assuming a flawat the surface with a depth of one-quarter (1/4) of the vessel wall thicknessand a length of six (6) times its depth,and (c) using a conservative fracturetoughness curve that is based on thelower bound of static, dynamic, andcrack arrest fracture toughness tests onmaterial similar to the Braidwoodreactor vessel material.


In determining the PORV setpoint forLTOP events, the licensee proposed touse safety margins based on an alternatemethodology consistent with theproposed ASME Code N–514guidelines. The ASME Code Case N–514allows determination of the setpoint forLTOP events such that the maximumpressure in the vessel would not exceed110 percent of the P/T limits of theexisting ASME Appendix G. This resultsin a safety factor of 1.8 on the principalmembrane stresses. All other factors,including assumed flaw size andfracture toughness, remain the same.Although this methodology wouldreduce the safety factor on the principalmembrane stresses, use of the proposedcriteria will provide adequate marginsof safety to the reactor vessel duringLTOP transients.

Accordingly, the Commissionconcludes that this proposed actionwould result in no significantradiological environmental impact.

With regard to potential non-radiological impacts, the proposedchange involves use of more realisticsafety margins for determining thePORV setpoint during LTOP events. Itdoes not affect non-radiological planteffluents and has no otherenvironmental impact. Therefore, theCommission concludes that there are nosignificant non-radiologicalenvironmental impacts associated withthe proposed exemption.

Alternative to the Proposed Action

As an alternative to the proposedaction, the staff considered denial of theproposed action. Denial of theapplication would result in no changein current environmental impacts. Theenvironmental impacts of the proposedaction and the alternative action aresimilar.

Alternative Use of Resources

This action did not involve the use ofany resources not previously consideredin the Final Environmental Statementsrelated to operation of BraidwoodStation.

Agencies and Persons Consulted

In accordance with its stated policy,on June 15, 1995, the staff consultedwith the Illinois State Official, Mr.Frank Niziolek; Head, Reactor SafetySection; Division of Engineering; IllinoisDepartment of Nuclear Safety; regardingthe environmental impact of theproposed action. The State official hadno comments.

Finding of No Significant ImpactBased upon the foregoing

environmental assessment, the

Commission concludes that theproposed action will not have asignificant effect on the quality of thehuman environment. Accordingly, theCommission has determined not toprepare an environmental impactstatement for the proposed exemption.

For further details with respect to thisaction, see the request for exemptiondated November 30, 1994, assupplemented May 11, 1995, which isavailable for public inspection at theCommission’s Public Document Room,2120 L Street, NW., Washington, DC andat the local public document roomlocated at the Wilmington PublicLibrary, 201 S. Kankakee Street,Wilmington, Illinois 60481.

Dated at Rockville, Maryland, this 3rd dayof July 1995.

For the Nuclear Regulatory Commission.Ramin R. Assa,Project Director, Project Directorate III–2,Division of Reactor Projects–III/IV, Office ofNuclear Reactor Regulation.[FR Doc. 95–16809 Filed 7–6–95; 8:45 am]BILLING CODE 7590–01–M

Advisory Committee on ReactorSafeguards Subcommittee Meeting onThermal Hydraulic Phenomena; Noticeof Meeting

The ACRS Subcommittee on ThermalHydraulic Phenomena will hold ameeting on July 26 and 27, 1995, RoomT–2B1, 11545 Rockville Pike, Rockville,Maryland.

Most of the meeting will be closed topublic attendance to discussWestinghouse Electric Corporationproprietary information pursuant to 5U.S.C. 552b(c)(4).

The agenda for the subject meetingshall be as follows:Wednesday, July 26, 1995—8:30 a.m.

until the conclusion of businessThursday, July 27, 1995—8:30 a.m. until

the conclusion of businessThe Subcommittee will continue its

review of the Westinghouse COBRA/TRAC best-estimate ECCS thermalhydraulic code. The purpose of thismeeting is to gather information,analyze relevant issues and facts, and toformulate proposed positions andactions, as appropriate, for deliberationby the full Committee.

Oral statements may be presented bymembers of the public with theconcurrence of the SubcommitteeChairman; written statements will beaccepted and made available to theCommittee. Electronic recordings willbe permitted only during those portionsof the meeting that are open to thepublic, and questions may be asked only

by members of the Subcommittee, itsconsultants, and staff.

Persons desiring to make oralstatements should notify the cognizantACRS staff engineer named below fivedays prior to the meeting, if possible, sothat appropriate arrangements can bemade.

During the initial portion of themeeting, the Subcommittee, along withany of its consultants who may bepresent, may exchange preliminaryviews regarding matters to beconsidered during the balance of themeeting.

The Subcommittee will then hearpresentations by and hold discussionswith representatives of the NRC staff,the Westinghouse Electric Corporation,their consultants, and other interestedpersons regarding this review.

Further information regarding topicsto be discussed, whether the meetinghas been canceled or rescheduled, thescheduling of sessions which are opento the public, the Chairman’s ruling onrequests for the opportunity to presentoral statements and the time allottedtherefor can be obtained by contactingthe cognizant ACRS staff engineer, Mr.Paul A. Boehnert (telephone 301/415–8065) between 7:30 a.m. and 4:15 p.m.(edt). Persons planning to attend thismeeting are urged to contact the abovenamed individual one or two workingdays prior to the meeting to be advisedof any potential changes in the proposedagenda, etc., that may have occurred.

Dated: June 30, 1995.Sam Duraiswamy,Chief, Nuclear Reactors Branch.[FR Doc. 95–16810 Filed 7–7–95; 8:45 am]BILLING CODE 7590–01–M

[Docket 70–364]

Babcock and Wilcox Company; ParksTownship Facility; Director’s DecisionUnder 10 CFR 2.206

Notice is hereby given that theDirector, Office of Nuclear MaterialSafety and Safeguards, has taken actionwith regards to the remaining issues(Sections Q and X) referred to theCommission’s Executive Director forOperations, by the Atomic Safety andLicensing Board, in its Initial Director’sDecision, dated January 3, 1995,Babcock and Wilcox Company(Pennsylvania Nuclear ServiceOperation Parks Township, PA), LBP–95–1, 41 NRC 1, 35 (1995). Section Qwas interpreted as a request that theNRC test for radioactive contaminationin the general vicinity of Kepple Hilland Riverview in Parks Township, andSection X was interpreted as a request


1 Babcock and Wilcox Company (PennsylvaniaNuclear Service Operations, Parks Township, PA),LBP–94–12, 39 NRC 215 (1994).

2 Id., LBP–95–1, 41 NRC 1, 35 (1995).3 As the Commission recently noted, there were

three concerns (Sections Q, R, and X). However, oneof the concerns (Section R) was included withinSection Q. See Babcock and Wilcox Company(Pennsylvania Nuclear Service Operations, ParksTownship, PA), CLI–95–04, slip op. at 7 (April 26,1995), 41 NRC ll.

4 In the acknowledgement letter it was noted thatthe other concerns (Sections B, H, I, M, P, S, T, U,W, and Y) had been addressed by the Commissionstaff in affidavits of Michael A. Lamastra andHeather M. Astwood. These affidavits weresubmitted to the Atomic Safety and Licensing Boardin the Subpart L proceeding on September 22, 1994.

5 The Commission on April 26, 1995, denied theIntervenors’ petition for review of the PresidingOfficer’s January 3, 1995, Initial Decision (LicenseRenewal), LBP–95–1 (‘‘Initial Decision’’). The staffexpects to renew the license in 1995.

for the NRC to investigate radiologicalcontamination on the Farmers DelightDairy Farm. Notice of Receipt of Petitionfor Director’s Decision under 10 CFR2.206, dated March 3, 1995, waspublished in the Federal Register onMarch 13, 1995, (60 FR 13478).

The Director of the Office of NuclearMaterial Safety and Safeguards hasdetermined, after taking actions withrespect to each request discussed in theDecision, that no further action by theCommission is warranted. The reasonsfor this Decision are explained in the‘‘Director’s Decision under 10 CFR2.206’’ (DD–95–12), which is publishedbelow.

A copy of the Decision will be filedwith the Office of the Secretary of theCommission in accordance with 10 CFR2.206(c). As provided by this regulation,the Decision will constitute the finalaction of the Commission 25 days afterthe date of issuance of the Decisionunless the Commission on its ownmotion institutes a review of theDecision within that time.

A copy of the Petition, InitialDecision, Notice of Receipt of Petitionfor Director’s Decision under 10 CFR2.206, and other documents related tothe Petition are available for inspectionin the NRC Public Document Room,2120 L Street, NW., Washington, DC20555, and the Local Public DocumentRoom located at the Apollo MemorialLibrary, 219 N. Pennsylvania Avenue,Apollo, Pennsylvania 15613.

Dated at Rockville, Maryland this 26th dayof June 1995.

For the Nuclear Regulatory Commission.Malcolm R. Knapp,Deputy Director, Office of Nuclear MaterialSafety and Safeguards.

I. IntroductionBy Petition dated January 5, 1994,

Citizens’ Action for a Safe Environment(CASE) and the Kiski Valley CoalitionTo Save Our Children (the Coalition)(together referred to as Intervenors orPetitioners) filed a joint request for aninformal hearing pursuant to 10 CFRPart 2, Subpart L, with regard toBabcock & Wilcox Company’s (Licensee)application for renewal of SpecialNuclear Material (SNM) License SNM–414 issued to the Licensee by the U.S.Nuclear Regulatory Commission (NRCor Commission) for the PennsylvaniaNuclear Service Operations facilitylocated in Parks Township, ArmstrongCounty, Pennsylvania (Parks Townshipfacility). In a Memorandum and Orderdated April 22, 1994, the PresidingOfficer granted the request for hearingand admitted the Petitioners as

Intervenors.1 An informal hearing wasconducted pursuant to Subpart L of theCommission’s procedural regulations. Inthe Initial Decision, dated January 3,1995, authorizing the renewal of thematerials license, the Presiding Officer,pursuant to 10 CFR 2.1205(k)(2),referred to the Commission’s ExecutiveDirector for Operations forconsideration, as a request for actionunder 10 CFR 2.206, 12 areas of concernraised in that proceeding by theIntervenors.2 These concerns werereferred to my office for review. Each ofthese concerns were reviewed withrespect to the requirements of 10 CFR2.206. Two concerns 3 (Sections Q andX) were found to satisfy therequirements of 10 CFR 2.206. OnMarch 7, 1995, a latter was sent to theIntervenors acknowledging thetreatment of the Intervenors’ Sections Qand X as requests for action under 10CFR 2.206.4

Section Q has been interpreted as arequest for the Commission to test forradioactive contamination in the generalvicinity of Kepple Hill and Riverview inParks Township. The apparent concernis that this area is downwind of theApollo facility, which the Intervenorsassert had been releasing radioactivity ata rate above regulatory limits. TheIntervenors rely on letters dated April20, 1966, and May 26, 1969, concerningthe need for experimental data for an airsurveillance program at the Apollo plantand authorization by the Commission’spredecessor, the Atomic EnergyCommission (AEC), for the discharge ofradioactive materials in concentrationsexceeding 10 CFR Part 20 limits.

Section X has been interpreted as arequest for the Commission toinvestigate radiological contaminationon the Farmers Delight Dairy Farm(apparently located in Parks Township).The apparent concern is that pastoperations of the Parks Townshipfacility caused radioactivecontamination of the farm. As basis forthis request, the Intervenors assert thatthere is information in a 1966 U.S.

Department of Agriculture (USDA)study that indicates that the cattle onthe farm were having thyroid problemsand that radionuclides were showing upin the cows’ milk.

I have completed my evaluation of thematters raised by the Intervenors andhave determined that, for the reasonsstated below, no further action by theCommission is warranted.

II. BackgroundThe Nuclear Material and Equipment

Company (NUMEC) began operations atthe Apollo and Parks Townshipfacilities in the late 1950s. The AtlanticRichfield Company (ARCO) purchasedthe stock of NUMEC in 1967. In 1971,Babock & Wilcox (B&W) purchasedNUMEC and is the current owner of theApollo and Parks Township facilities.

The primary function of the NUMECApollo facility was the conversion oflow-enriched (less than 5 wt. percent U–235) uranium hexafluoride to uraniumoxide for use in fuel for light-water-moderated power reactors and toproduce high-enriched (> 93 wt. percentU–235) nuclear fuel material for use innaval reactors. The B&W Apollo facilityceased manufacturing nuclear fuel in1983 and has completed sitedecommissioning. The Commission staffexpects to terminate the Apollo facilitylicense in 1995.

The primary function of the NUMECParks Township facility was thefabrication of plutonium fuel, thepreparation of high-enriched uraniumfuel, and the production of zirconium/hafnium bars. The Parks Townshipfacility ceased fuel fabrication activitiesin 1980 and is currently conductingdecontamination and refurbishment ofnuclear reactor components andequipment. The Parks Township licensewas last renewed on May 16, 1984, withan expiration date of May 31, 1989, andthe license is currently under timelyrenewal.5

III. DiscussionThe NRC staff has evaluated the

Intervenors’ two requests for actionpursuant to 10 CFR 2.206. Theevaluation and my disposition for eachrequest are discussed below.

1. Test for radioactive contaminationin the general vicinity of Kepple Hilland Riverview areas in Parks Township.

The Intervenors’ request is based ontheir interpretation of letters dated April20, 1966, and May 26, 1969, from RogerD. Caldwell, Manager, Health, Safety


6 One of the sub-areas of concern accepted as anissue in the informal hearing was ‘‘[w]hether B&WManagement practices as manifested by themanagement of the Apollo facility threaten offsitereleases of radiation from the Park Townshipfacility.’’ LBP–94–12, 39 NRC, 215, 222–23 (1994).

7 Prior to January 1994, NRC regulations forradioactivity in effluents to unrestricted areas werecontained in 10 CFR 20.106. The currentrequirements are found in 10 CFR 1302. 10 CFR20.106(a) limited radioactivity in air effluents tounrestricted areas to less than those listed inAppendix B, Table II, except as authorized in 10CFR 20.106(b). 10 CFR 20.106(b) allowed licenseesto propose limits higher than those specified in 10CFR 20.106(a), if certain conditions were met. 10CFR 20.106(d) clarified that the limits listed inAppendix B, Table II, apply at the boundary of therestricted area and not at the stack discharge point.

8 The values set forth in 10 CFR Part 20,Appendix B, Table II, are the regulatory limitsapplicable at the site boundary, not at the stack.

9 10 CFR 20.1003 defines ‘‘unrestricted area’’ as‘‘. . . an area, access to which is neither limited norcontrolled by the licensee.’’ Prior to January 1,1994, an unrestricted area was defined as ‘‘. . . anyarea access to which is not controlled by thelicensee for purposes of protection of individualsfrom exposure to radiation and radioactivematerials, and any area used for residentialquarters.’’

10 An estimate of the average airborne uraniumconcentration can be calculated using a uraniumdeposition rate of 20 pCi/Ft2/week (measured byNUMEC during plant operation) and assuming agravitational settlement rate of 0.001 meters persecond.

11 An estimate of the soil uranium concentrationcan be calculated using a uranium deposition rateof 20 pCi/Ft2/week (measured by NUMEC duringplant operation) and assuming a 1cm depth, a soildensity of 1.5g cm¥3, and a 15-year operatingperiod at Apollo.

12 The current release criteria for uranium, whichis 30 pCi per gram, is set forth in the Commission’s‘‘Branch Technical Position’’ (BTP) published in theFederal Register, October 23, 1981.

13 Gamma radiation is electromagnetic photonsoriginating from the nucleus of an atom. Gammarays are similar to x-rays.

and Licensing, of NUMEC concerningthe need for experimental data for an airsurveillance program at the NUMECApollo plant6 and authorization by theAtomic Energy Commission for thedischarge of radioactive materials inconcentrations exceeding 10 CFR Part20 limits.7

By application dated November 13,1968, and supplement dated March 5,1969, and pursuant to 10 CFR 20.106(b),NUMEC requested that License SNM–145 be amended to permitconcentrations up to 100 times thelimits specified in Part 20, Appendix B,Table II, in any stack effluent, providedthat concentrations at the roof edge andin the local environment complied with10 CFR Part 20 limits. By LicenseAmendment 31, dated May 26, 1969, theAEC authorized NUMEC to dischargeradioactive material from any stack, inconcentrations up to 100 times thevalues specified in Appendix B, TableII, of 10 CFR Part 208 subject to thefollowing conditions:

(a) Concentrations of radioactivematerial measured by the continuouslyoperating air samplers positioned at theplant roof perimeter shall not exceed thevalues specified in Appendix B, TableII, of 10 CFR Part 20; and

(b) an environmental air samplingprogram shall be conducted in theneighboring unrestricted areas9 of theplant.

Accordingly, even though NUMECwas authorized to discharge at the stackup to 100 times the value specified inAppendix B, Table II, NUMEC was stillrequired to meet the limits at the siteboundary (see footnote 8). Moreover,

NUMEC was required to meet thesesame values at the plant roof perimeter.

To evaluate the Intervenors’ concernabout the alleged contamination in thegeneral vicinity of the Kepple Hill andRiverview areas of Parks Township, thestaff estimated the average airborneuranium concentrations using theresults from the environmentalmonitoring program, which was acondition of the License. The NRC staffcalculated the average airborne uraniumconcentrations to be 3.6×10¥13uCi/cc.10

This calculated value is less than onetenth of the maximum permissibleconcentration in air for insolubleuranium-238 and uranium-235; therequirement for unrestricted air effluentset forth in 10 CFR Part 20, AppendixB, Table II. Accordingly, the releasesfrom the facility were within 10 CFRPart 20 requirements for unrestrictedrelease and, therefore, were not a safetyconcern.

The NRC staff also estimated thepotential contamination of soil outsidethe plant boundary from facilityoperations.11 Using conservativeassumptions, the Commission staffcalculated a maximum concentration of12 pCi per gram of soil. This is less thanthe Commission’s current releasecriteria for uranium.12

The Commission staff also reviewedenvironmental radiation monitoringdata collected during the facility’speriod of operation. Environmentalradiation monitoring has beenconducted at the Apollo site since 1968.Monitoring programs includedmeasurements of radioactive materialsin the environment (river water, andsediment, air, soil, and vegetation) andthermoluminescent dosimetry (TLD)measurements of direct radiation in theenvironment. Radiological monitoringstations have been active in the Apollofacility area for as long as three decades,monitoring the Allegheny andKiskiminetas Rivers and varioustributaries, as well as other surfacewaters and ground water. These includeCommission, State, and B&W stations.Based on its review of this data, theCommission staff concludes that

operation of the Apollo facility did notresult in any significant changes tonormal background levels outside theimmediate site area.

The Commission staff also reviewedthe results of an aerial radiologicalsurvey to measure gamma radiation 13

levels in the area of the Apollo facility.At the request of the Commission, thesurvey was conducted by EG&G EnergyMeasurement Group from June 15–19,1981. The survey data identified onlybackground levels of radiation.

In summary, the Commission staffcalculated the potential airborneuranium concentration and potentialcontamination of soil, reviewed theenvironmental monitoring and aerialradiological survey data, and concludedthat the radioactive releases from theApollo facility have been withinregulatory limits and have not resultedin concentrations of radioactivity in thesoil greater than the NRC release criteriastated in the Branch Technical Position(see footnote 12). In reaching thisconclusion, the staff took into accountthe fact that in 1969, the AECauthorized NUMEC to release at thestack, radioactive materials inconcentrations up to 100 times thevalues (applicable at the site boundary)listed in Appendix B of 10 CFR Part 20.The Intervenors’ request that theCommission test for radiologicalcontamination in the general vicinity ofKepple Hill and Riverview in ParksTownship is granted to the extent of thereview described above. However, theIntervenors have failed to raise anysubstantial health or safety issues.Therefore, no further action iswarranted.

2. Investigate potential radiologicalcontamination on the Farmers DelightDairy Farm located in the vicinity of theParks Township facility.

In its request for the Commission toinvestigate radiological contaminationon the Farmers Delight Dairy Farm, theIntervenors assert that informationcontained in a U.S. Department ofAgriculture (USDA) report entitledNUMEC–1966 indicates that cattle onthe farm are having thyroid problemsand that radionuclides are showing upin the cows’ milk. The Intervenorsindicate that the report was read to themover the telephone by a referencelibrarian at the USDA Library inBeltsville, Maryland. The Intervenorsalso assert that the report ‘‘vanished’’from that Library.

To evaluate the NUMEC–1966 report,the Commission staff searched its files,


14 The NRC soil sampling results were reported inNRC combined Inspection Reports Nos. 70–135/93–01 and 70–364/93–02; 70–135/93–02 and 70–364/93–03; 70–135/93–03 and 70–364/93–04; 70–135/94–01 and 70–364/94–01; and 70–135/94–02 and70–364/94–02.

requested both B&W and ARCO tosearch their files, and requested theUSDA to check its files for a copy of thereport. No copy was found. However,the USDA did confirm that the onlycopy in its system was missing from theUSDA Beltsville, Maryland, library. Itwas also determined that NUMEC–1966was not a USDA report but a NUMEC-published document. The Commissionstaff again searched its files andrequested that B&W and ARCO searchtheir files for a NUMEC report entitledNUMEC–1966. Again, no copy wasfound.

Since the Commission staff wasunable to evaluate the NUMEC–1966report, the staff reviewed environmentalradiation monitoring data collected fromthe area of the Parks Township facility.Environmental radiation monitoring hasbeen conducted at the Parks Townshipsite since 1969. The monitoring programincludes measurements of radioactivematerials in the environment (air, soil,and vegetation) and TLD measurementsof direct radiation in the environment.These include Commission, State, andB&W monitoring stations. The NRC staffhas also taken soil samples from privateresidences and other locations in theParks Township area.14 The NRC staffhas reviewed the environmentalmonitoring data, including the soilsamples, and concluded that there hasbeen no significant increase inbackground levels outside of theimmediate site area of the ParksTownship facility. The Intervenors’request that the Commission investigatepotential radiological contamination onthe Farmers Delight Dairy Farm isgranted to the extent of the reviewdescribed above. The Intervenors have,however, failed to raise a substantialhealth or safety concern; therefore, nofurther action is warranted.

IV. ConclusionThe institution of proceedings

pursuant to 10 CFR 2.206 is appropriateonly where substantial health and safetyissues have been raised. SeeConsolidated Edison Co. of New York(Indian Point, Units 1, 2, and 3), CLI–75–8, 2 NRC 173, 175–76 (1975), andWashington Public Power SupplySystem (WPPSS Nuclear Project No. 2),DD–84–7, 19 NRC 899, 923 (1984). Thisis the standard that I have applied todetermine whether the actionsrequested by the Intervenors arewarranted. Since no substantial health

and safety issues have been raised bythe Intervenors and for the reasonsdiscussed above, no basis exists fortaking any further action in response tothe requests beyond that describedabove. Accordingly, in this matter, theCommission is taking no further actionpursuant to 10 CFR 2.206.

As provided by 10 CFR 2.206(c), acopy of this Decision will be filed withthe Secretary of the Commission for theCommission’s review. The Decision willbecome the final action of theCommission 25 days after issuanceunless the Commission, on its ownmotion, institutes a review of theDecision.

Dated at Rockville, Maryland, this 26th dayof June, 1995.

For the Nuclear Regulatory Commission.Malcolm R. Knapp,Deputy Director, Office of Nuclear MaterialSafety and Safeguards.[FR Doc. 95–16787 Filed 7–7–95; 8:45 am]BILLING CODE 7590–01–M


[Form DPRS–2809]

Notice of Request for Review of aCurrently Approved InformationCollection

AGENCY: Office of PersonnelManagement.ACTION: Notice.

SUMMARY: In accordance with thePaperwork Reduction Act of 1980 (title44, U.S. Code, chapter 35), this noticeannounced a request for review of acurrently approved informationcollection. Form DPRS–2809, Request toChange FEHB Enrollment or to ReceivePlan Brochures, is used by formerspouses who are eligible to elect, cancel,or change health benefits enrollmentduring open season.

Approximately 28,000 forms arecompleted annually. This form requiresapproximately 10 minutes to complete.The annual burden is 4,700 hours.

For copies of this proposal, contactDoris R. Benz on (703) 908–8564.DATES: Comments on this proposalsshould be received on or before August9, 1995.ADDRESSES: Send or deliver commentsto—Robert A. Yuran, Chief, Financial

Management Division, Retirement andInsurance Service, U.S. Office ofPersonnel Management, 1900 E Street,N.W., Room 4351, Washington, DC20415

andJoseph Lackey, OPM Desk Officer,

Office of Information and RegulatoryAffairs, Office of Management andBudget, New Executive OfficeBuilding, NW., Room 10235,Washington, DC 20503.

FOR INFORMATION REGARDINGADMINISTRATIVE COORDINATION—CONTACT:Mary Beth Smith-Toomey, ManagementServices Division, (202) 606–0623.Office of Personnel Management.Lorraine A. Green,Deputy Director.[FR Doc. 95–16816 Filed 7–7–95; 8:45 am]BILLING CODE 6325–01–M

RAILROAD RETIREMENT BOARD

Agency Forms Submitted for OMBReview

SUMMARY: In accordance with thePaperwork Reduction Act of 1980 (44U.S.C. Chapter 35), the RailroadRetirement Board has submitted thefollowing proposal(s) for the collectionof information to the Office ofManagement and Budget for review andapproval.

SUMMARY OF PROPOSAL(S):

(1) Collection title: Sick Pay andMiscellaneous Payments Report.

(2) Form(s) submitted: BA–10.(3) OMB Number: 3220–0175.(4) Expiration date of current OMB

clearance: October 31, 1995.(5) Type of request: Extension of a

currently approved collection.(6) Respondents: Business or other

for-profit.(7) Estimated annual number of

respondents: 140(8) Total annual responses: 140.(9) Total annual reporting hours: 128.(10) Collection description: The

Railroad Retirement Solvency Act of1983 added Sec. 1(h)(8) to the RRAexpanding the definition ofcompensation for purposes ofcomputing the Tier 1 portion of anannuity to include sickness paymentsand certain payments other than sickpay which are considered compensationwithin the meaning of Sec. 1(h)(8).Collection obtains the sick pay andother types of payments consideredcompensation within the meaning ofSec. 1(h)(8).ADDITIONAL INFORMATION OR COMMENTS:Copies of the form and supportingdocuments can be obtained from ChuckMierzwa, the agency clearance officer(312–751–3363). Comments regardingthe information collection should beaddressed to Ronald J. Hodapp, Railroad


1 15 U.S.C. § 78s(b)(1) (1988).

2 The Commission has approved these proposalson a temporary basis on six previous occasions inSecurities Exchange Act Release Nos. 27192(August 29, 1989), 54 FR 37010 (approving FileNos. SR–NSCC–87–04, SR–MCC–87–03, and SR–SCCP–87–03 until December 31, 1990); 28728(December 31, 1990), 56 FR 717 (approving FileNos. SR–NSCC–90–25, SR–MCC–90–08, and SR–SCCP–90–03 until June 30, 1991); 29388 (June 28,1992), 56 FR 30951 (approving File Nos. SR–NSCC–91–06, SR–MCC–91–03, and SR–SCCP–91–03through June 30, 1992); 30879 (July 1, 1992), 57 FR30279 (approving File Nos. SR–NSCC–92–04, SR–MCC–92–07, and SR–SCCP–92–02 through June 30,1993); 32547 (June 29, 1993), 58 FR 36491(approving file Nos. SR–NSCC–93–04, SR–MCC–93–02, and SR–SCCP–93–02 through June 30,1994); and 33996 (June 27, 1994), 59 FR 33996(approving File Nos. SR–NSCC–94–09, SR–MCC–94–06, and SR–SCCP–94–02 through June 30,1995).

3 The Commission has modified the language inthese sections.

4 For a more detailed discussion of the proposals,refer to Securities Exchange Act Release Nos.34261, 32547, 30879, 29388, 28728, and 27192 andthe accompanying rule filings, supra note 3.

5 15 U.S.C. § 78q–1 (1988).6 15 U.S.C. § 78q–1 (1988).7 15 U.S.C. § 78q–1(b)(3)(F) (1988).

Retirement Board, 844 North RushStreet, Chicago, Illinois 60611–2092 andthe OMB reviewer, Laura Oliven (202–395–7316), Office of Management andBudget, Room 10230, New ExecutiveOffice Building, Washington, DC 20503.Ronald J. Hodapp,Chief, Information Resources Management.[FR Doc. 95–16835 Filed 7–7–95; 8:45 am]BILLING CODE 7905–01–M

SECURITIES AND EXCHANGECOMMISSION

[Release No. 34–35916; File Nos. SR–NSCC–95–04; SR–MCC–95–02; SR–SCCP–95–03]

Self-Regulatory Organizations;National Securities ClearingCorporation; Midwest ClearingCorporation; Stock ClearingCorporation of Philadelphia; Notice ofFiling and Order Granting TemporaryApproval on an Accelerated Basis ofProposed Rule Changes Relating tothe Guarantee of Trades in ContinuousNet Settlement Systems

June 28, 1995.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’),1 notice is hereby given that theNational Securities Clearing Corporation(‘‘NSCC’’), Midwest ClearingCorporation (‘‘MCC’’), and StockClearing Corporation of Philadelphia(‘‘SCCP’’) (collectively referred to as‘‘Clearing Corporations’’) filed with theSecurities and Exchange Commission(‘‘Commission’’) on May 19, 1995, May26, 1995, and June 12, 1995,respectively, the proposed rule changesas described in Items I and II below,which items have been preparedprimarily by the Clearing Corporations.The proposals seek approval of rulechanges relating to the guarantee oftrades in the Clearing Corporations’continuous net settlement systems. TheCommission is publishing this noticeand order to solicit comments frominterested persons and to extendtemporary approval of the proposed rulechanges on an accelerated basis throughJune 28, 1996.

I. Self-Regulatory Organizations’Statement of the Terms of Substance ofthe Proposed Rule Changes

The proposals seek approval of theCommission’s temporary order thatauthorizes the Clearing Corporations: (1)to guarantee at an earlier time thesettlement of participant trades in theirContinuous Net Settlement (‘‘CNS’’)

systems and (2) to use revised clearingfund calculations to protect against anyincreased risk caused by such earlierguarantees.2

II. Self-Regulatory Organizations’Statement of the Purpose of, andStatutory Basis for, the Proposed RuleChanges

In their filings with the Commission,the Clearing Corporations includedstatements concerning the purpose ofand basis for the proposed rule changesand discussed any comments theyreceived on the proposed rule changes.The text of these statements may beexamined at the places specified in ItemIV below. The Clearing Corporationshave prepared summaries, set forth insections A, B, and C below, of the mostsignificant aspects of such statements.3

(A) Self-Regulatory Organizations’Statement of the Purpose of, andStatutory Basis for, the Proposed RuleChanges

The proposed rule changes seekapproval of the Clearing Corporations’procedures whereby the settlement ofall pending CNS trades are guaranteedas of midnight (11:59 p.m. for MCC) onthe day after the trade date for locked-in or automatically compared trades andas of midnight (11:59 p.m. for MCC) onthe day trades are reported to membersas compared for all other trades. Theproposed rule changes also seekapproval of the Clearing Corporations’revisions to the CNS portions of theirclearing fund formulas. These revisionsare designed to protect against increasedrisk associated with earlier guarantees.4

The Clearing Corporations believethat the proposed rule changes areconsistent with the Act and particularlywith Section 17A of the Act because

they will help the Clearing Corporationsto assure the safeguarding of securitiesand funds which are in their custody orcontrol or for which they areresponsible.5

(B) Self-Regulatory Organizations’Statement on Burden on Competition

The Clearing Corporations believethat the proposed rule changes will notimpose a burden on competition.

(C) Self-Regulatory Organizations’Statement on Comments on theProposed Rule Changes Received FromMembers, Participants or Others

The Clearing Corporations haveneither solicited nor received anycomments.

III. Date of Effectiveness of theProposed Rule Changes and Timing forCommission Action

The Commission believes the ClearingCorporations’ proposals to continueproviding earlier guarantees for CNStrades along with using revised formulasfor calculating clearing fundcontributions are consistent with theAct and particularly with Section 17Aof the Act.6 Section 17A(b)(3)(F) of theAct 7 requires that the rules of clearingagencies be designed to assure thesafeguarding of securities and funds thatare in the custody or control of theclearing agencies or for which theclearing agencies are responsible and bedesigned to remove impediments to andperfect the national system for theclearance and settlement of securitiestransactions.

The Commission believes that theseproposals promote the perfection of thenational system by providing increasedcertainty as to settlement of securitiestransactions by reducing the time thatclearing members are exposed to therisk of counterparty default. TheCommission further believes that theseproposals achieve that goal withoutcompromising the safeguarding ofsecurities and funds in the ClearingCorporations’ custody or control or forwhich they are responsible.

The Clearing Corporations haverequested that the Commission findgood cause for approving the proposedrule changes prior to the thirtieth dayafter the date of publication of notice ofthe filings in the Federal Register. TheCommission finds good cause for soapproving because accelerated approvalwill permit the Clearing Corporations tocontinue to provide their participantswith earlier trade guarantees and to


8 The Commission reserves the right to amend thedata request during the ensuing temporary approvalperiod for any of the Clearing Corporations in orderto obtain the most useful and accurate informationavailable. 9 17 CFR 200.30–3(a)(12) (1994).

continue to base clearing fundassessments on the revised formulaswithout any needless disruptions totheir programs. During the proposals’temporary approval periods, theCommission and the ClearingCorporations have continued to examinethe Clearing Corporations’ proceduresand safeguards applicable to earlierguarantees of CNS trades and therevised formulas for calculating CNSclearing fund contributions. To date, theearlier guarantee procedures and revisedclearing fund formulas have functionedadequately.

The Clearing Corporations and theCommission will continue to monitorthe adequacy of the ClearingCorporation’s procedures andsafeguards applicable to earlierguarantees of CNS trades and therevised clearing fund formulas isnecessary. Each Clearing Corporationwill remain under a continuingobligation to provide data to theCommission pertaining to earlier tradeguarantees and the ability of the revisedCNS clearing formulas to guard againstany increased risks posed by earlierguarantees.8

IV. Solicitation of CommentsInterested persons are invited to

submit written data, views, andarguments concerning the foregoing.Persons making written submissionshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, NW.,Washington, DC 20549. Copies of thesubmissions, all subsequentamendments, all written statementswith respect to the proposed rulechange that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. § 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom, 450 Fifth Street, NW.,Washington, DC 20549. Copies of suchfilings will also be available forinspection and copying at the principaloffice of each Clearing Corporation. Allsubmissions should refer to the filenumbers SR–NSCC–95–04, SR–MCC–95–02, and SR–SCCP–95–03 and shouldbe submitted by July 31, 1995.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that the

proposed rule changes (File Nos. SR–NSCC–95–04, SR–MCC–95–02, and SR–SCCP–95–03) be and hereby areapproved on a temporary basis throughJune 28, 1996.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.9

Jonathan G. Katz,Secretary.[FR Doc. 95–16784 Filed 7–7–95; 8:45 am]BILLING CODE 8010–01–M

TENNESSEE VALLEY AUTHORITY

Environmental Impact Statement:Lamar County Alabama Water SupplyDevelopment

AGENCIES: Tennessee Valley Authorityand U.S. Army Corps of Engineers.ACTION: Notice of intent.

SUMMARY: The Tennessee ValleyAuthority (TVA) and the U.S. ArmyCorps of Engineers (COE) will preparean Environmental Impact Statement(EIS) on water supply development forLamar County, Alabama, located in westcentral Alabama. This EIS will considera range of alternatives to provide anadequate and reliable water supply forthe Lamar County area. Alternatives tobe considered will include one or acombination of the following:construction of a surface impoundmenton a tributary of Yellow Creek;installation of one or more waterpipelines from existing reservoirs orstreams, use of groundwater wells;direct withdrawal and storage fromYellow Creek; the no action alternative;and other alternatives identified duringthe scoping process. With this notice,TVA and the COE invite comments onthe scope of this EIS. This notice isprovided in accordance with theprocedural requirements of the NationalEnvironmental Policy Act (NEPA), aswell as TVA’s and the COE’simplementing procedures.DATES: Written comments on the scopeof the EIS must be received at theaddress below on or before December15, 1995.ADDRESSES: Comments should be sent toDale V. Wilhelm, NEPA Liaison,Tennessee Valley Authority, WT 8C,400 West Summit Hill Drive, Knoxville,Tennessee 37902–1499.FOR FURTHER INFORMATION CONTACT:Jack L. Davis, Manager, Water ResourceProjects, Tennessee Valley Authority,WT 10C, 400 West Summit Hill Drive,Knoxville, Tennessee 37902–1499,phone (615) 632–7183.

SUPPLEMENTARY INFORMATION: TheTennessee Valley Authority and LamarCounty in West Central Alabama areaddressing the water supply needs forthe County, in order to assure a safe andreliable water supply for the future.

At this time, Lamar County hasabundant reserves of both surface andgroundwater which are sufficient tomeet the needs for the County.However, a county-wide study ofdevelopment patterns, land use, andpotential for contamination of existinggroundwater sources indicates a highpotential for contamination ofgroundwater from human activities. Onewell at Sulligent, Alabama, in thenorthern part of Lamar County, hasalready been abandoned as a result ofgroundwater contamination.

Any new water supply for LamarCounty must: (1) Provide sufficientwater to serve an expected increasedgrowth, (2) be of good water quality and,(3) be from reliable water sources. Itmust be sufficient to provide waterduring peak demands and droughtcycles, and it must be free ofcontamination. At the present time,groundwater, including the Countypublic water system (which depends100 percent on groundwater) andprivate wells, provides 93 percent ofLamar County’s drinking water.Currently, there is a potential forgroundwater contamination fromnatural sources and from humanactivities such as waste disposal, use ofpesticides, underground storage tanks,and spills. The Tuscaloosa aquifer, onwhich the County depends almostexclusively for its water needs, isoverlaid by permeable soils that allowinfiltration and make the aquifervulnerable to potential contamination.The water from the primarygroundwater well is also high in iron.For these reasons, an alternative surfacewater supply is being considered.

TVA and Lamar County will evaluatealternatives to meet the water supplyneeds of the area. These analyses ofwater supply needs will includedomestic, industrial, agricultural uses,and water quality. For planningpurposes, projected benefits and costswill be evaluated for a 30 to 50 yearperiod, depending on the alternativeunder consideration. Conservationeffects on water use will also beconsidered.

The first step in the preparation of theEIS will be the determination of thescope of the EIS. It is anticipated thatthe scope will include possibleconstruction of a surface impoundmenton a tributary of Yellow Creek,installation of one or more waterpipelines from existing reservoirs, in


stream flow withdrawals, pumpedstorage, or a combination of any ofthese. Different design concepts willalso be addressed. In addition, asrequired by NEPA, the no actionalternative will also be analyzed. Onealternative, construction of a surfaceimpoundment directly on Yellow Creekwill not be considered at this timebecause of the potential impacts to largeareas of regulated wetlands. Potentiallyimportant issues for discussion in theEIS include:

1. Effects on stream discharge, waterquality, and availability;

2. Impacts on terrestrial and aquaticecology, including threatened andendangered species and habitat loss;

3. Impacts on floodplains, wetlands,recreation, and existing land uses; and

4. Socioeconomic, historic,archeological, and cultural effectsassociated with completion of theproject and alternatives to it.

This list is not intended to be allinclusive, nor is it intended to be apredetermination of impacts. As scopingand preparation of the EIS proceeds,other issues may be revealed which willnecessitate further analyses.

TVA and COE invite comments on theabove issues. Comments are alsorequested on environmental issueswhich should not be viewed asimportant and which should not bediscussed in detail in the EIS.

Sometime during the scoping period,a public meeting will be held in Vernon(Lamar County) to receive commentsabout the scope of this EIS. Detailsabout this meeting will be announced inarea newspapers. Comments received atthis meeting will be accorded the sameweight as written comments.

As noted, the United States ArmyCorps of Engineers (Mobile District) willparticipate in this EIS process as a jointlead agency. Other Federal Agenciesmay also become cooperating agencies.

After the scoping process and theinitial environmental analyses arecompleted, TVA and COE will preparea draft EIS. A Notice of Availability ofthe draft EIS, soliciting publiccomments, will be published in theFederal Register and area newspapers.Those persons who choose not tocomment on the scope of the documentat this time, but wish to receive a copyof the draft for their review andcomment, should write to the aboveaddress.

Dated: June 30, 1995.Kathryn J. Jackson,Senior Vice President/Resource Group.[FR Doc. 95–16847 Filed 7–7–95; 8:45 am]BILLING CODE 8120–01–M

Adoption of Final EnvironmentalImpact Statement

AGENCY: Tennessee Valley Authority.ACTION: Adoption of FinalEnvironmental Impact Statement.

SUMMARY: In accordance with TVA’sprocedures implementing the NationalEnvironmental Policy Act (NEPA) andconsistent with 40 CFR 1506.3 (1993),TVA has decided to adopt a FinalSupplemental Environmental ImpactStatement (FSEIS) that was issued bythe U.S. Nuclear RegulatoryCommission (NRC) in late April 1995.This FSEIS is entitled, ‘‘FinalEnvironmental Statement related to theoperation of Watts Bar Nuclear PlantUnits 1 and 2, Supplement No. 1.’’Notice of the availability of this FSEISwas published in the Federal Registeron May 5, 1995 (60 FR 22,389). TVA hasdetermined that the FSEIS meets thestandards for an adequate FSEIS andcan be adopted.ADDRESSES: The FSEIS can be inspectedby the public at the following places:TVA Corporate Library, East Tower

Building, 400 West Summit HillDrive, Knoxville, Tennessee 37902;

TVA Corporate Library, Signal Place,1101 Market Street, Chattanooga,Tennessee 37402;

andTVA Technical Library, A100 National

Environmental Research Center, CTR1E, Muscle Shoals, Alabama 35660.Copies of the FSEIS may also be

obtained by writing or calling: Dale V.Wilhelm, Team Leader, EnvironmentalManagement Staff, 400 West SummitHill Drive, WT 8C–K, Knoxville,Tennessee 37902, (615) 632–6693.FOR FURTHER INFORMATION CONTACT:Jon M. Loney, Manager, EnvironmentalManagement Staff, Tennessee ValleyAuthority, 400 West Summit Hill Drive,WT 8C–K, Knoxville, Tennessee 37902,(615) 632–2201.SUPPLEMENTARY INFORMATION: On orabout April 21, 1995, NRC released aFSEIS on the operation of TVA’s WattsBar Nuclear Plant (WBN). Thesupplement addresses changes in theplant design and the environment thatoccurred after NRC issued its ‘‘FinalEnvironmental Statement’’ in 1978 onthe operation of the plant. NRCconcluded in the FSEIS that there havebeen no significant changes in potentialenvironmental impacts associated withplant operation from those evaluated inits 1978 document. The FSEIS alsoconcluded that TVA’s preoperationaland operational environmental andradiological monitoring programs wereappropriate for establishing baseline

conditions and for assessing resultingenvironmental impacts. Finally, theFSEIS concluded that the analysis ofsevere accident mitigation designalternatives for the plant demonstratedthat none would be cost beneficial forfurther mitigating environmentalimpacts beyond the procedural changeswhich TVA had already committed toimplement.

BackgroundTVA is the electric supplier to an

80,000 square mile area containing partsof seven States. It and the distributors ofthe electricity, which TVA generates,serve about 7.5 million people. TVAcurrently has 25,600 megawatts ofgenerating capacity on its system. Thisincludes coal-fired units, nuclear units,hydro-electric units, combustionturbines, and pumped storage hydrounits.

TVA’s WBN is located in RheaCounty, Tennessee, approximately 13kilometers (8 miles) southeast of SpringCity, Tennessee, and 80 kilometers (50miles) northeast of Chattanooga,Tennessee. The site is located adjacentto TVA’s Watts Bar Dam Reservation atTennessee River Mile 528. WBN is a twounit pressurized water reactor nuclearplant. Each of its units has a nameplatecapacity of 1,170 megawatts. TVAexpects to load fuel in Unit 1 in the Fallof 1995. Unit 2 is approximately 65percent complete. Alternatives to TVAcompleting Unit 2 are being evaluatedas part of an integrated resourceplanning (IRP) process and anassociated EIS. The IRP is scheduled tobe completed in December 1995. InDecember 1994, the TVA Board ofDirectors announced that based oninterim data from the IRP, it would notbe in TVA’s or its customers’ interestsfor TVA itself to complete Unit 2.

In August 1970, TVA proposed toconstruct and operate WBN in order tomeet forecasted power needs in the TVAregion. The Atomic Energy Commission(AEC), now NRC, issued constructionpermits for the two units on January 23,1973. TVA commenced construction ofWBN in 1973. In 1976, TVA applied toNRC for licenses to operate WBN.

At the time TVA sought operatinglicenses, construction of WBN Unit 1was 85 percent complete and Unit 2 was65 percent complete. TVA’s proposedfuel loading dates for the units wereDecember 1979 and September 1980,respectively. However, licensing of theplant was delayed and the constructionpermits for the units were extended byNRC. The delay was due in part toinstallation of modifications that NRCordered for most nuclear plantsfollowing the 1979 incident at the Three


Mile Island nuclear plant. In addition,the need for power in the TVA regionand elsewhere in the countrydramatically changed from the needforecasted in the early 1970s. After theArab oil embargo in the mid-1970s,energy consumption in the countrysubstantially declined. In the mid-1980’s, plant licensing was delayedwhile TVA resolved a number of WBN-specific safety concerns that were raisedby employees and the public. TVAimplemented a series of correctiveactions and plant modifications toprepare WBN Unit 1 for operation.

It takes many years to plan, permit,and construct new energy sources or toplan and deploy energy conservationprograms (demand-side managementprograms). Years before the demand forelectric energy arises, electric utilitieshave typically had to make decisionsabout the energy resource mix that theywant on their systems to meet futuredemands. If no action is taken, a utilityrisks being unable to meet demand andthe customers in its service territorywould not be served. TVA, like mostutilities, projects or forecasts the futuredemand for power in its region.Determining the need for power offuture ‘‘load’’ on an utility systemdepends on two factors: (1) Thecapabilities of currently available energyresources, and (2) the forecast of futureenergy needs. If the forecasted need forpower exceeds available capabilities toprovide that power, additional energyresources must be obtained by theutility. These resources can be in theform of self-built generating facilities,purchases from other energy generators,or energy conservation measures thatreduce the potential demand to levelscapable of being met with existingenergy resources.

TVA routinely produces three loadforecasts to help in making energyresource decisions—a high-, medium-,and low-load forecast. The high forecastis designed to project a level of futureenergy demand for which there is a 90percent chance or probability of notbeing exceeded. For the mediumforecast, there is a 50 percentprobability of not being exceeded; forthe low forecast, a 10 percentprobability of not being exceeded.

Under all of TVA’s current forecasts,there is a need for additional energyresources in the immediate future tomeet the demand for energy in the TVAregion. In the medium-load forecast,there is a need in 1996 for the capacityof WBN Unit 1 (1170 megawatts) as wellas an additional 850 megawatts. Underthe high-load forecast, there is a needbeyond WBN Unit 1’s capacity for anadditional 1500 megawatts in 1996.

Only under the low-load forecast isthere a slight surplus of capacity in 1996of 300 megawatts with the capacity ofWBN Unit 1 online.

Operating WBN Unit 1 will help meetprojected future loads on the TVApower system at a very economicallycompetitive cost. TVA has invested $6.4billion in the construction of WBN Unit1 and facilities which are shared incommon with Unit 2. These costs havealready been incurred and cannot beavoided even if TVA now chooses tomeet future needs some other way.Operating the unit will allow TVA theopportunity of earning a return on theagency’s investment. Compared topurchasing power or meeting demandwith coal-fired generation orcombustion turbine units, operation ofWBN Unit 1 will be among TVA’slowest cost generating sources. WBNUnit 1’s operating costs are projected tobe approximately 1.7 cents/kwh. Incontrast, the operating costs ofalternative generating sources wouldrange from 2.0 to 6.0 cents/kwh.

Environmental ReviewsIn accordance with NEPA, TVA

prepared and released in November1972 a Final EIS on the potentialenvironmental impacts associated withconstructing and operating WBN. AECrelied on the TVA EIS when it issuedconstruction permits to the plant in1973. When TVA began the operatinglicense application process for the WBNunits in 1976, it updated theenvironmental analyses and informationabout the plant in a report entitled‘‘Environmental InformationStatement,’’ and supplemented thisreport in 1977 to respond to NRCquestions. This report and supplementwere made part of the public record forthe plant. Relying in part on TVA’sanalyses and information, NRC thenissued its 1978 Final EIS. This EISsupplemented the earlier TVA EIS, andfocused on the potential environmentalimpacts associated with operating WBN.

In 1993, TVA initiated aninterdisciplinary environmental reviewof WBN. The purpose of this review wasto determine if there were any new,significant environmental impactsrelated to WBN that had not beenaddressed in TVA’s 1972 EIS. Thisreview relied on the substantial amountof environmental-related data that TVAhad collected through its preoperationalmonitoring programs at WBN and anumber of special environmentalstudies that TVA had conducted overthe years at WBN. Review findings weredocumented in an August 1993 reportentitled ‘‘Review of FinalEnvironmental Statement, Watts Bar

Nuclear Plant Units 1 and 2.’’ Based onthis review, TVA determined:

The [1972] EIS concluded that theprincipal ways the plant will interactwith the environment are: (1) Releasesof small quantities of radioactivity to airand water, (2) release of minorquantities of heat and non-radioactivewaste waters to TVA’s ChickamaugaReservoir and major quantities of heatand water vapor from the plant’s coolingtowers into the atmosphere, (3) loss ofaquatic life (such as fish larvae andplankton) that is drawn into the waterintake, and (4) a change in land usefrom farming to industrial. Theseconclusions remain valid today.* * * * *

Changes have occurred since therelease of WBN’s EIS in 1972. Most ofthese changes involve designmodifications or changes in expectedoperational practices which improvesafety or lessen potential environmentalimpacts. Additional information aboutenvironmental conditions in the vicinityof WBN has also been developed. Noneof the changes or new informationmaterially affect impact projections inthe EIS.

In September 1994, NRC decided toissue a formal supplement to its 1978Final EIS. NRC released a Draft SEIS forpublic comment in November 1994. Apublic meeting to obtain comments onthe Draft SEIS was held on January 10,1995 in Sweetwater, Tennessee. NRCissued its FSEIS in late April 1995.Consistent with TVA’s 1993 review,NRC did not identify any changes toWBN, significant new circumstances, orenvironmental concerns thatsubstantially differed from thoseaddressed earlier.

The FSEIS reached the followingconclusions:

• There are no changes in the designof WBN that result in significant changein environmental impacts.

• Changes in proposed WBNoperations have occurred but thesechanges do not result in significantenvironmental impacts.

• Changes in the population anddemographics of the region haveoccurred; however these changes are notsignificant and changes in employmentat the plant have not had significantsocioeconomic impacts.

• Land use and water use impactsessentially remain unchanged.

• Regional climatology and WBN sitemeteorology have not changedsignificantly.

• There have been no significantchanges in the terrestrial and aquaticenvironments in the vicinity of WBN.

• There have been no significantchanges to the background of


radiological characteristics in thevicinity of the plant.

• Based on available data, it does notappear that any minority or low incomecommunities would bedisproportionally affected by WBNoperations.

The action before NRC is respondingto TVA’s request for an operatinglicense for Watts Bar Unit 1. A favorabledecision would allow the operation ofthe unit by TVA. Although the actionsbefore the two agencies are essentiallythe same from the perspective ofpotential environmental consequences,it was deemed inappropriate for TVA toparticipate as a cooperating agency inthe preparation and issuance of the SEISbecause TVA is the applicant for theNRC operating license. However, TVAprovided NRC and its contractor, PacificNorthwest Laboratory, substantialamounts of environmental data,information, and analyses that it hadcollected and prepared over the yearsfor WBN. Much of this data andinformation were used in the FSEIS.

In its regulations implementingNEPA, the Council on EnvironmentalQuality (CEQ) strongly encouragesagencies to reduce the paperwork andduplication that have frequently beenthe hallmarks of NEPA reviews. One ofthe methods identified by CEQ toaccomplish these goals is adopting theenvironmental documents prepared byother agencies. 40 CFR 1500.4(n) (1994).Under applicable regulations, TVA isallowed to adopt the NRC FSEIS as itsown.

TVA has carefully reviewed the FSEISand has concluded that it adequatelyupdates the earlier environmentalreviews, adequately assesses theremaining environmental impactsassociated with operation of WBN Unit1, and is an adequate supplement. Thisreview has been documented in a TVApublicly-available report entitled,‘‘Supplemental Environmental Review,Operation of Watts Bar Nuclear Plant.’’Accordingly, TVA hereby adopts NRC’s

‘‘Final Environmental Statement relatedto the operation of Wattts Bar NuclearPlant, Units 1 and 2, Supplement No.1.’’

Dated: June 30, 1995.Kathryn J. Jackson,Senior Vice President, Resource Group.[FR Doc. 95–16848 Filed 7–7–95; 8:45 am]BILLING CODE 8120–01–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

Approved Motor Fuel DistributionTerminals

AGENCY: Internal Revenue Service (IRS),Treasury.ACTION: Notice of issuance of terminalcontrol numbers for approved motorfuel terminals.

SUMMARY: IRS has developed TerminalControl Numbers (TCN) to clearlycommunicate to the motor fuel industryand other interested parties such as stateexcise taxing authorities, the motor fuelterminal facilities that meet thedefinitions of Internal Revenue CodeSection 4081 and the regulationsthereunder. The IRS intends to use theterminal numbers to coordinate dyedfuel compliance activities and in thefuture, excise fuel information reportingsystems. IRS encourages states to adoptand use the numbers for motor fuelinformation reporting whereappropriate. This list is published underthe authority of Internal Revenue CodeSection 6103(k)(7).

What Facilities Are Included?The listing of Terminal Control

Numbers represents IRS approved motorfuel terminal locations in the bulktransport/delivery system. Approvedmotor fuel terminals, as defined byInternal Revenue Code Section 4081 andthe regulations thereunder, receivetaxable fuel via a pipeline, ship, orbarge, deliver taxable fuel across a truck

rack and be operated by a terminaloperator who is properly registered ingood standing with IRS. Only thosetaxpayers who are registered with theIRS on a Registration for Tax-FreeTransactions—Form 637 (637Registration) with a suffix code of ‘‘S’’may operate an approved terminal. EachTCN identifies a unique physicallocation in the bulk transport/deliverysystem and is therefore independent ofthe registered operator.

When Does a Terminal Operator NeedTo Notify IRS of Changes?

A terminal operator must notify theIRS for any of the following changes:—Terminal ownership or operator

changes; or—A new terminal is opened; or—A terminal ceases operation.

How Should Notification Be Made?

Notify the IRS District Office wherethe Form 637 is issued of the changeand by FAX the IRS TCN Coordinator at:Internal Revenue ServiceCP:EX:ST:Ex:R&T, Excise, Research &Technology Group, Att: TCNCoordinator (202) 622–4388 FAX.

Changes to the terminal status orother information will be published bythe Excise Program Office in the IRSHeadquarters Office. Notification isrequired in order to retain approvedstatus of the terminal and 637Registration. Failure to notify of changesmay lead to suspension or revocation ofthe approved status of the terminal or637 Registration. Changes orsuspensions of approved status will bepublished monthly.

If you have any questions regardingthe approved terminals or the listing,you may contact: Terminal NumberCoordinator—Claude ‘‘Bud’’ Smith at(202) 622–4370 or Excise Research &Technology Manager—John C. Love, Jr.(202) 622–4376 (not toll-free numbers).Marshall V. Washburn,National Director, Specialty Taxes.

INTERNAL REVENUE SERVICE TERMINAL CONTROL LIST

[July 1, 1995]

TCN Terminal name Street address City State Zip

T–92–AK–4500 .......... Chevron Anchorage ..................... 459 W Bluff Rd ............................ Anchorage ............................... AK ... 99501T–92–AK–4501 .......... MAPCO Alaska Anchorage ......... 1076 Ocean Dock Road .............. Anchorage ............................... AK ... 99501T–92–AK–4502 .......... Texaco R & M Anchorage ........... 1601 Tidewater ............................ Anchorage ............................... AK ... 99501T–92–AK–4505 .......... Tesoro Alaska Petroleum Co ....... Mile 22.5 Kenai Spur Road ......... Kenai ....................................... AK ... 99611T–92–AK–4503 .......... MAPCO Alaska North Pole .......... 1150 H & H Lane ......................... North Pole ............................... AK ... 99705T–63–AL–2333 .......... Kerr-McGee Oxford ...................... 2625 Highway 78 East ................. Anniston .................................. AL ... 36201T–63–AL–2300 .......... Amoco Oil Birmingham ................ 1600 Mims Ave Southwest .......... Birmingham ............................. AL ... 35211T–63–AL–2301 .......... Chevron Birmingham ................... 2400 28th St Southwest .............. Birmingham ............................. AL ... 35211T–63–AL–2302 .......... CITGO Birmingham ..................... 2200 25th St Southwest .............. Birmingham ............................. AL ... 35211T–63–AL–2303 .......... Crown Central Birmingham .......... 2500 Nabors Road ....................... Birmingham ............................. AL ... 35211T–63–AL–2305 .......... B P Oil Co Birmingham ............... 1600 Mims Ave SW ..................... Birmingham ............................. AL ... 35211


INTERNAL REVENUE SERVICE TERMINAL CONTROL LIST—CONTINUED

[July 1, 1995]


T–63–AL–2306 .......... Marathon Birmingham .................. 2704 28th St Southwest .............. Birmingham ............................. AL ... 35211T–63–AL–2307 .......... Phillips 66 Birmingham ................ 2635 Balsam Avenue ................... Birmingham ............................. AL ... 35211T–63–AL–2308 .......... Shell Birmingham ......................... 2601 Wilson Road ....................... Birmingham ............................. AL ... 35221T–63–AL–2309 .......... Southern Facilities Birmingham ... 2400 Nabors Road ....................... Birmingham ............................. AL ... 35211T–63–AL–2310 .......... Star Enterprise Birmingham ......... 2529 28th St Southwest .............. Birmingham ............................. AL ... 35211T–63–AL–2311 .......... Kerr-McGee Birmingham ............. 2600 Ishkooda Road .................... Birmingham ............................. AL ... 35211T–63–AL–2312 .......... Louis Dreyfus Birmingham ........... 1600 Mims Ave SW ..................... Birmingham ............................. AL ... 35211T–63–AL–2321 .......... Kerr-McGee Blakely Island .......... U S Hwy 90 .................................. Blakely Island .......................... AL ... 36633T–63–AL–2316 .......... Coastal Mobile Chickasaw ........... 200 Viaduct Rd ............................ Chickasaw ............................... AL ... 36611T–63–AL–2314 .......... Amoco Oil Mobile ......................... Hwy 90 and 98 ............................. Mobile ...................................... AL ... 36601T–63–AL–2315 .......... Coastal Fuels Mobile ................... PO Box 1423 ............................... Mobile ...................................... AL ... 36633T–63–AL–2322 .......... Amoco Oil Montgomery ............... 3560 Well Rd ............................... Montgomery ............................ AL ... 36108T–63–AL–2323 .......... Chevron USA Montgomery .......... 200 Hunter Loop Road ................ Montgomery ............................ AL ... 31608T–63–AL–2324 .......... B P Oil Mongtomery .................... Access Highway 31 North ........... Montgomery ............................ AL ... 36108T–63–AL–2325 .......... Marathon Montgomery ................. 320 Hunter Loop Rural Rt 6 ........ Montgomery ............................ AL ... 36125T–63–AL–2327 .......... Southern Facilities Montgomery .. 420 Hunter Loop Road ................ Montgomery ............................ AL ... 36108T–63–AL–2304 .......... Southeast Terminal Montgomery . Hwy 31 North ............................... Montgomery ............................ AL ... 36108T–63–AL–2326 .......... S T Services Montgomery ........... 520 Hunter Loop Road ................ Montgomery ............................ AL ... 36108T–63–AL–2330 .......... S T Services Moundville .............. PO Box 6T ................................... Moundville ............................... AL ... 35474T–63–AL–2334 .......... LL&E Petroleum Saraland ........... PO Box 308 ................................. Saraland .................................. AL ... 36571T–63–AL–2335 .......... Murphy Sheffield .......................... 136 Blackwell Road ..................... Sheffield .................................. AL ... 35660T–63–AL–2329 .......... Hunt Refining Co ......................... 1855 Fairlawn RD ........................ Tuscaloosa .............................. AL ... 35401T–71–AR–2451 ......... Lion Oil El Dorado ....................... 1000 McHenry .............................. El Dorado ................................ AR ... 71730T–71–AR–2452 ......... TEPPCO El Dorado ..................... Hwy 167 North ............................. El Dorado ................................ AR ... 71730T–71–AR–2453 ......... Williams Pipe Line Fort Smith ..... 8101 Hwy 71 ................................ Fort Smith ............................... AR ... 72903T–71–AR–2454 ......... TEPPCO Helena .......................... 826 Old Highway ......................... Helena ..................................... AR ... 72342T–71–AR–2456 ......... North Little Rock Terminaling ...... 2725 Central Airport Rd ............... North Little Rock ..................... AR ... 72117T–71–AR–2457 ......... Exxon USA North Little Rock ...... 2724 Central Airport Rd ............... North Little Rock ..................... AR ... 72117T–71–AR–2458 ......... La Gloria Oil N Little Rock ........... 2626 Central Airport Road ........... North Little Rock ..................... AR ... 72117T–71–AR–2459 ......... Little Rock Terminaling ................ 3222 Central Airport Rd ............... North Little Rock ..................... AR ... 72117T–71–AR–2464 ......... Arkansas Terminaling & Trading . Rt 1 Box 67 A .............................. North Little Rock ..................... AR ... 72117T–71–AR–2467 ......... Razorback Terminaling ................ 2801 West Hwy 102 Rt 2 ............ Rogers ..................................... AR ... 72756T–71–AR–2460 ......... Cross Oil & Refining Smackover . East Sixth Street .......................... Smackover .............................. AR ... 71762T–71–AR–2463 ......... Truman Arnold West Memphis .... South of 8th Street ....................... West Memphis ........................ AR ... 72303T–86–AZ–4311 .......... Sunbelt Refining Coolidge ........... 5415 E Randolph Rd ................... Coolidge .................................. AZ ... 85228T–86–AZ–4300 .......... Caljet Phoenix .............................. 125 N 53rd Avenue ...................... Phoenix ................................... AZ ... 85015T–86–AZ–4301 .......... Chevron USA Phoenix ................. 5110 West Madison ..................... Phoenix ................................... AZ ... 85043T–86–AZ–4303 .......... Pro Petroleum Phoenix ................ 408 S 43rd Avenue ...................... Phoenix ................................... AZ ... 85009T–86–AZ–4307 .......... UNOCAL Phoenix ........................ 10 South 51st Avenue ................. Phoenix ................................... AZ ... 85001T–86–AZ–4304 .......... SFPP LP Phoenix ........................ 49 North 53rd Ave Van Buren ..... Phoenix ................................... AZ ... 85063T–86–AZ–4306 .......... Texaco R & M Phoenix ................ 5325 West Van Buren ................. Phoenix ................................... AZ ... 85043T–86–AZ–4313 .......... ARCO Phoenix ............................. 5333 W Van Buren St .................. Phoenix ................................... AZ ... 85043T–86–AZ–4305 .......... Mobil Oil Phoenix ......................... 5333 W Van Buren ...................... Phoenix ................................... AZ ... 85043T–86–AZ–4308 .......... Chevron USA Tucson .................. 3865 East Refinery Way .............. Tucson .................................... AZ ... 85713T–86–AZ–4310 .......... SFPP LP Tucson ......................... 3841 East Refinery Way .............. Tucson .................................... AZ ... 85713T–86–AZ–4312 .......... Texaco Tucson ............................ 3735 South Dodge Boulevard ..... Tucson .................................... AZ ... 85713T–86–AZ–4309 .......... S T Services Tucson ................... 3605 South Dodge ....................... Tuscon .................................... AZ ... 85726T–33–CA–4750 ......... Mobil Oil Atwood .......................... 1477 Jefferson ............................. Anaheim .................................. CA ... 92806T–77–CA–4662 ......... UNOCAL Avila Beach .................. 10 San Rafael St ......................... Avila Beach ............................. CA ... 93424T–77–CA–4655 ......... Kern Oil Bakersfield ..................... 7724 East Panama Lane ............. Bakersfield .............................. CA ... 93307T–77–CA–4656 ......... Sunland Refing Bakersfield ......... 2152 Coffee Road ........................ Bakersfield .............................. CA ... 93302T–77–CA–4657 ......... Texaco Bakersfield ...................... 2436 Fruitvale Avenue ................. Bakersfield .............................. CA ... 93302T–77–CA–4661 ......... Golden Bear Refinery .................. Norris Rd & Manor ....................... Bakersfield .............................. CA ... 93308T–68–CA–4603 ......... Exxon USA Benicia ...................... 3410 East Second Street ............. Benicia .................................... CA ... 94510T–33–CA–4756 ......... Chevron USA Colton ................... 2297 South Riverside Avenue ..... Bloomington ............................ CA ... 92316T–33–CA–4757 ......... SFPP LP Colton ........................... 2359 South Riverside Avenue ..... Bloomington ............................ CA ... 92316T–33–CA–4758 ......... Shell Oil Colton ............................ 2307 South Riverside Avenue ..... Bloomington ............................ CA ... 92316T–33–CA–4759 ......... Texaco Colton .............................. 2237 South Riverside Avenue ..... Bloomington ............................ CA ... 92316T–33–CA–4753 ......... ARCO Colton ............................... 2395 S Riverside Avenue ............ Bloomington ............................ CA ... 92316T–33–CA–4754 ......... Mobil Oil Colton ........................... 2305 S Riverside Avenue ............ Bloomington ............................ CA ... 92316T–33–CA–4766 ......... UNOCAL Bloomington ................. 2301 S Riverside ......................... Bloomington ............................ CA ... 92316T–94–CA–4700 ......... SFPP LP Brisbane ....................... Old County Road ......................... Brisbane .................................. CA ... 94005T–33–CA–4751 ......... GATX Tank Storage .................... 2000 East Sepulveda Blvd .......... Carson ..................................... CA ... 90810T–33–CA–4769 ......... ARCO Carson .............................. 2149 E Sepulreda Blvd ................ Carson ..................................... CA ... 90749T–68–CA–4600 ......... SFPP LP Chico ............................ Midway & Hegan Lane ................ Chico ....................................... CA ... 95927T–68–CA–4601 ......... Shell Oil Chico ............................. Hegan Lane ................................. Chico ....................................... CA ... 95927T–68–CA–4620 ......... Ultramar Inc Chico ....................... Midway & Hegan Lane ................ Chico ....................................... CA ... 95927T–33–CA–4755 ......... Calnev Pipe Line Colton .............. 2051 West Slover Avenue ........... Colton ...................................... CA ... 92324



[July 1, 1995]


T–68–CA–4605 ......... Wickland Oil Crockett .................. 90 San Pablo Ave ........................ Crockett ................................... CA ... 94525T–33–CA–4761 ......... Calnev Pipe Line Daggett ............ 34277 Daggett-Yermo Road ........ Daggett .................................... CA ... 92327T–33–CA–4762 ......... S T Services Imperial .................. 349 Aten Road ............................. El Centro ................................. CA ... 92251T–95–CA–4800 ......... Chevron USA El Segundo ........... 302 West El Segundo Blvd .......... El Segundo ............................. CA ... 90245T–68–CA–4606 ......... Chevron USA Eureka .................. 3400 Christie Street ..................... Eureka ..................................... CA ... 95501T–68–CA–4615 ......... UNOCAL Eureka .......................... 1200 Railroad Ave ....................... Eureka ..................................... CA ... 95502T–77–CA–4651 ......... SFPP LP Fresno .......................... 4149 South Maple Avenue .......... Fresno ..................................... CA ... 93725T–77–CA–4660 ......... Chevron USA Fresno ................... 4073 S Maple ............................... Fresno ..................................... CA ... 93725T–68–CA–4608 ......... Pacific Refining Co Hercules ....... 4901 San Pablo Avenue .............. Hercules .................................. CA ... 94547T–33–CA–4771 ......... Chevron USA Huntington Beach . 17881 Gothard St ........................ Huntington Beach ................... CA ... 92647T–33–CA–4763 ......... SFPP LP Imperial ........................ 345 W Aten Road ........................ Imperial ................................... CA ... 92251T–33–CA–4764 ......... ARCO Long Beach ...................... 5905 Paramount Ave ................... Long Beach ............................. CA ... 90805T–33–CA–4767 ......... Petro-Diamond Term Long Beach 1920 Lugger Way ........................ Long Beach ............................. CA ... 90805T–33–CA–4779 ......... Chemoil Long Beach ................... 2365 E Sepulveda Blvd ............... Long Beach ............................. CA ... 90810T–95–CA–4803 ......... UNOCAL Los Angeles ................. 13500 South Broadway ............... Los Angeles ............................ CA ... 90061T–95–CA–4806 ......... UNOCAL Center Street LA .......... 501 N Center St ........................... Los Angeles ............................ CA ... 90012T–95–CA–4809 ......... Shell Oil Los Angeles .................. 2015 Long Beach Ave ................. Los Angeles ............................ CA ... 90058T–68–CA–4610 ......... Shell Oil Martinez ......................... 1801 Marvin Vista ........................ Martinez .................................. CA ... 94553T–68–CA–4611 ......... Tosco Refining Martinez .............. Solano Way & Waterfront RD ...... Martinez .................................. CA ... 94553T–68–CA–4607 ......... Chevron USA Avon ...................... 611 Solano Way .......................... Martinez .................................. CA ... 94553T–95–CA–4811 ......... Chevron USA Montebella ............ 601 South Vail Avenue ................ Montebella ............................... CA ... 90640T–33–CA–4772 ......... SFPP LP Orange ......................... 1350 North Main Street ............... Orange .................................... CA ... 92667T–95–CA–4808 ......... Paramount Petroleum .................. 8835 Somerset Blvd .................... Paramount ............................... CA ... 90723T–68–CA–4613 ......... SFPP LP Rancho Cordova .......... 2901 Bradshaw Rd ...................... Rancho Cordova ..................... CA ... 95741T–33–CA–4760 ......... Tosco Refining Colton ................. 271 E Slover Avenue ................... Rialto ....................................... CA ... 92376T–68–CA–4614 ......... ARCO Richmond ......................... 1306 Canal Boulevard ................. Richmond ................................ CA ... 94807T–68–CA–4616 ......... Chevron Richmond ...................... 155 Castro St ............................... Richmond ................................ CA ... 94802T–68–CA–4619 ......... Texaco Richmond ........................ 100 Cutting Blvd .......................... Richmond ................................ CA ... 94804T–68–CA–4617 ......... UNOCAL Richmond ..................... 1300 Canal Blvd .......................... Richmond ................................ CA ... 94804T–68–CA–4621 ......... Chevron USA Sacramento .......... 2420 Front Street ......................... Sacramento ............................. CA ... 95818T–68–CA–4624 ......... Tosco Refining Sacramento ........ 66 Broadway at Riverside ............ Sacramento ............................. CA ... 95818T–68–CA–4618 ......... UNOCAL Sacramento .................. 76 Broadway ................................ Sacramento ............................. CA ... 95818T–33–CA–4773 ......... Chevron USA San Diego ............. 2351 East Harbor Drive ............... San Diego ............................... CA ... 92113T–33–CA–4774 ......... Pacific Southwest San Diego ...... 4370 LaJolla Village Drive ........... San Diego ............................... CA ... 92113T–33–CA–4776 ......... SFPP LP San Diego .................... 9950 San Diego Mission Road .... San Diego ............................... CA ... 92108T–33–CA–4777 ......... Shell Oil San Diego ..................... 9950 San Diego Mission Road .... San Diego ............................... CA ... 92108T–33–CA–4778 ......... Texaco San Diego ....................... 9966 San Diego Mission Road .... San Diego ............................... CA ... 92108T–33–CA–4782 ......... ARCO San Diego ......................... 2295 E Harbor Drive .................... San Diego ............................... CA ... 92113T–33–CA–4783 ......... Mobil Oil San Diego ..................... 9950 San Diego Mission Rd ........ San Diego ............................... CA ... 92108T–33–CA–4790 ......... UNOCAL San Diego .................... 2750 Murphy Canyon Rd ............. San Diego ............................... CA ... 92123T–77–CA–4650 ......... Chevron USA San Jose ............... 1020 Berryessa Road .................. San Jose ................................. CA ... 95133T–77–CA–4652 ......... SFPP LP San Jose ...................... 2150 Kruse Avenue ..................... San Jose ................................. CA ... 95131T–77–CA–4653 ......... Shell Oil San Jose ....................... 2165 O’Toole Avenue .................. San Jose ................................. CA ... 95131T–33–CA–4780 ......... GATX Terminals San Pedro ........ Port of LA Berths 70–71 .............. San Pedro ............................... CA ... 90733T–33–CA–4781 ......... Western Fuel Oil Co San Pedro .. 2100 North Gaffey ....................... San Pedro ............................... CA ... 90731T–95–CA–4801 ......... Powerine Oil Santa Fe Springs ... 12354 East Lakeland Rd ............. Santa Fe Springs .................... CA ... 90670T–95–CA–4802 ......... Golden West Santa Fe Springs ... 13415 Carmenita Road ................ Santa Fe Springs .................... CA ... 90670T–33–CA–4784 ......... ARCO Signal Hill ......................... 2350 Hathaway Drive .................. Signal Hill ................................ CA ... 90806T–33–CA–4785 ......... Shell Oil Signal Hill ...................... 2457 Redondo Avenue ................ Signal Hill ................................ CA ... 90806T–94–CA–4703 ......... Shell Oil San Francisco ............... 135 North Access Road ............... So San Francisco ................... CA ... 94080T–95–CA–4807 ......... ARCO Vinvale Terminal ............... 8601 S Garfield Ave .................... South Gate .............................. CA ... 90280T–68–CA–4625 ......... Tosco Refining Stockton .............. 3505 Navy Drive .......................... Stockton .................................. CA ... 95203T–68–CA–4626 ......... S T Services Stockton ................. 2941 Navy Drive .......................... Stockton .................................. CA ... 95203T–68–CA–4628 ......... Shell Oil Stockton ........................ 3515 Navy Drive .......................... Stockton .................................. CA ... 95203T–68–CA–4629 ......... Tesoro Refining Mktg Stockton ... 3033 Navy Drive .......................... Stockton .................................. CA ... 95205T–68–CA–4630 ......... Time Oil Stockton ........................ 3015 Navy Drive .......................... Stockton .................................. CA ... 95206T–68–CA–4609 ......... ARCO Stockton Terminal ............ 2700 West Washington St ........... Stockton .................................. CA ... 95203T–33–CA–4786 ......... Mobil Oil Torrance ....................... 3700 West 190th Street ............... Torrance .................................. CA ... 90509T–68–CA–4604 ......... Chevron USA Banta .................... 22888 S Kasson Rd ..................... Tracy ....................................... CA ... 95376T–95–CA–4804 ......... Shell Oil Van Nuys ....................... 8100 Haskell Avenue ................... Van Nuys ................................ CA ... 91326T–95–CA–4810 ......... Chevron USA Van Nuys .............. 15359 Oxnard Street ................... Van Nuys ................................ CA ... 91411T–77–CA–4654 ......... Shell Oil Ventura .......................... 3284 North Ventura Avenue ........ Ventura .................................... CA ... 93001T–95–CA–4805 ......... Mobil Oil Vernon .......................... 2709 East 37th Street .................. Vernon ..................................... CA ... 90058T–68–CA–4622 ......... Shell Oil West Sacramento .......... 1509 South River Road ............... West Sacramento ................... CA ... 95691T–68–CA–4631 ......... Tesoro Ref West Sacramento ..... 1700 South River Road ............... West Sacramento ................... CA ... 95691T–68–CA–4612 ......... ARCO Sacramento ...................... 1701 South River Road ............... West Sacramento ................... CA ... 95691T–33–CA–4768 ......... Texaco Long Beach ..................... 1926 East Pacific Coast Hwy ...... Wilmington .............................. CA ... 90744T–33–CA–4770 ......... Texaco LA Harbor ........................ 2101 East Pacific Coast Hwy ...... Wilmington .............................. CA ... 90744T–33–CA–4789 ......... Ultramar Inc Wilmington .............. 2402 E Anaheim St ...................... Wilmington .............................. CA ... 90744



[July 1, 1995]


T–33–CA–4752 ......... UNOCAL Wilmington ................... 1660 W Anaheim St ..................... Wilmington .............................. CA ... 90744T–84–CO–4100 ......... Chase Pipeline Aurora ................. 15000 East Smith Road ............... Aurora ..................................... CO .. 80011T–84–CO–4108 ......... Diamond Colorado Springs .......... 7810 Drennan .............................. Colorado Springs .................... CO .. 80925T–84–CO–4101 ......... Total Petroleum Denver ............... 5800 Brighton Boulevard ............. Commerce City ....................... CO .. 80022T–84–CO–4102 ......... Conoco Denver ............................ 5575 Brighton Boulevard ............. Commerce City ....................... CO .. 80022T–84–CO–4103 ......... Diamond Shamrock Denver ......... 3601 East 56th Street .................. Commerce City ....................... CO .. 80022T–84–CO–4104 ......... Phillips 66 Commerce City .......... 3960 East 56th Avenue ............... Commerce City ....................... CO .. 80022T–84–CO–4105 ......... WYCO Pipe Line Dupont ............. 8160 Krameria ............................. DuPont .................................... CO .. 80024T–84–CO–4106 ......... WYCO Pipe Line Fountain .......... 7 Miles South of Old Hwy 85 ....... Fountain .................................. CO .. 80024T–84–CO–4107 ......... Landmark Petroleum Fruita ......... 1493 Hwy 6 & 50 ......................... Fruita ....................................... CO .. 81521T–84–CO–4109 ......... Sinclair Pipeline Henderson ......... 8581 East 96th Ave ..................... Henderson ............................... CO .. 80640T–06–CT–1250 .......... Hoffman Fuel Bridgeport .............. 156 East Washington Avenue ..... Bridgeport ................................ CT ... 6604T–06–CT–1256 .......... Shell Bridgeport Plant .................. 250 Eagles Nest Road ................. Bridgeport ................................ CT ... 6607T–06–CT–1253 .......... Star Enterprise E Hartford ........... Riverside Drive ............................. East Hartford ........................... CT ... 6108T–06–CT–1255 .......... Amerada Hess Groton ................. 443 Eastern Point Road .............. Groton ..................................... CT ... 6340T–06–CT–1257 .......... Amerada Hess New Haven ......... 100 River Street ........................... New Haven ............................. CT ... 6513T–06–CT–1261 .......... Getty Terminal New Haven ......... 85 Forbes Avenue ....................... New Haven ............................. CT ... 6512T–06–CT–1262 .......... Gulf Oil New Haven ..................... 500 Waterfront Street .................. New Haven ............................. CT ... 6512T–06–CT–1263 .......... Mobil Oil New Haven ................... 134 Forbes Avenue ..................... New Haven ............................. CT ... 6512T–06–CT–1254 .......... Northeast Petroleum New Haven 481 East Shore Parkway ............. New Haven ............................. CT ... 6512T–06–CT–1264 .......... Gateway Terminal New Haven .... 400 Waterfront St ......................... New Haven ............................. CT ... 6512T–06–CT–1260 .......... Louis Dreyfus Norwich ................. 340 West Thomas Street ............. Norwich ................................... CT ... 6360T–06–CT–1252 .......... CITGO Rocky Hill ........................ 109 Dividend Road ...................... Rocky Hill ................................ CT ... 6067T–06–CT–1268 .......... Hoffman Fuel Stamford ................ 100 Southfield Avenue ................. Stamford .................................. CT ... 6902T–06–CT–1251 .......... Sprague Energy Stamford ........... 10 Water St .................................. Stamford .................................. CT ... 6902T–06–CT–1270 .......... Northeast Petroleum Wethersfield 80 Burbank Road ......................... Wethersfield ............................ CT ... 6109T–06–CT–1259 .......... Amerada Hess Wethersfield ........ 50 Burbank Road ......................... Wethersfield ............................ CT ... 6109T–52–MD–1553 ......... Steuart Petroleum DC .................. 401 Farragut Street NE ............... Washington ............................. DC ... 20111T–52–MD–1564 ......... Steuart Petroleum ........................ 1333 M St SE .............................. Washington ............................. DC ... 20111T–51–DE–1601 ......... Blades Terminal-Peninsula Oil .... Blades Causeway ........................ Blades ..................................... DE ... 19973T–51–DE–1600 ......... Star Enterprise Delaware City ..... River Rd and J Street .................. Delaware City .......................... DE ... 19706T–51–DE–1603 ......... Wilco Inc, Peninsula Oil Co ......... PO Box 389 ................................. Seaford .................................... DE.T–59–FL–2138 .......... Coastal Fuels Cape Canaveral .... Port Canaveral ............................. Cape Canaveral ...................... FL .... 32920T–65–FL–2153 .......... Chevron USA Port Everglades .... 1400 SE 24th Street .................... Fort Lauderdale ....................... FL .... 33316T–65–FL–2156 .......... Amerada Hess Port Everglades .. 1501 SE 20th St .......................... Fort Lauderdale ....................... FL .... 33316T–65–FL–2157 .......... CITGO Port Everglades ............... 800 SE 28th Street ...................... Fort Lauderdale ....................... FL .... 33316T–65–FL–2150 .......... Coastal Fuels Port Everglades .... 2401 Eisenhower Blvd ................. Fort Lauderdale ....................... FL .... 33316T–65–FL–2160 .......... Marathon Oil Port Everglades ..... 1601 SE 20th St .......................... Fort Lauderdale ....................... FL .... 33316T–65–FL–2161 .......... Mobil Oil Port Everglades ............ 1150 Spangler Blvd ..................... Fort Lauderdale ....................... FL .... 33316T–65–FL–2163 .......... Shell Oil Port Everglades ............. 909 SE 24 St ............................... Fort Lauderdale ....................... FL .... 33335T–65–FL–2165 .......... Louis Dreyfus Port Everglades .... 2701 SE 14th Ave ........................ Fort Lauderdale ....................... FL .... 33316T–59–FL–2115 .......... Murphy Oil Freeport ..................... 200 Center St ............................... Freeport ................................... FL .... 32439T–65–FL–2154 .......... GATX Terminals Port Everglades 1500 SE 26 Street ....................... Ft Lauderdale .......................... FL .... 33316T–65–FL–2151 .......... S T Services Homestead ............. 13195 S W 288th Street .............. Homestead .............................. FL .... 33033T–59–FL–2102 .......... Amerada Hess Jacksonville ......... 2617 Heckscher Drive ................. Jacksonville ............................. FL .... 32226T–59–FL–2103 .......... Amoco Oil Jacksonville ................ 2054 Heckscher Drive ................. Jacksonville ............................. FL .... 32226T–59–FL–2104 .......... Chevron USA Jacksonville .......... 3117 Talleyrand Avenue .............. Jacksonville ............................. FL .... 32206T–59–FL–2105 .......... Coastal Fuels Jacksonville .......... 3529 Talleyrand Avenue .............. Jacksonville ............................. FL .... 32206T–59–FL–2106 .......... B P Oil Jacksonville ..................... Access I–95 ................................. Jacksonville ............................. FL .... 32218T–59–FL–2108 .......... Koch Refining Jacksonville .......... 1974 Talleyrand Avenue .............. Jacksonville ............................. FL .... 32239T–59–FL–2109 .......... Petroleum Fuel Jacksonville ........ 1903 E Adams St ......................... Jacksonville ............................. FL .... 32202T–59–FL–2112 .......... Steuart Petroleum Jacksonville ... 6531 Evergreen Avenue .............. Jacksonville ............................. FL .... 32208T–59–FL–2113 .......... Kerr-McGee Jacksonville ............. 2470 Talleyrand Blvd ................... Jacksonville ............................. FL .... 32206T–59–FL–2114 .......... Kerr-McGee Niceville ................... 904 Bayshore Drive ..................... Niceville ................................... FL .... 32578T–59–FL–2122 .......... Coastal Fuels Point Manatee ...... PO Box 939 ................................. Palmetto .................................. FL .... 34220T–59–FL–2116 .......... Chevron USA Panama City ......... 500 West Fifth Street ................... Panama City ........................... FL .... 32402T–59–FL–2117 .......... CITGO Panama City .................... 122 South Center Avenue ........... Panama City ........................... FL .... 32401T–59–FL–2118 .......... Coastal Fuels Pensacola ............. 640 S Barracks St ........................ Pensacola ............................... FL .... 32501T–59–FL–2119 .......... Pensacola Terminals ................... 3088 Barrancas Avenue .............. Pensacola ............................... FL .... 32507T–59–FL–2120 .......... Louis Dreyfus Pensacola ............. 5115 South Clubb St ................... Pensacola ............................... FL .... 32501T–65–FL–2152 .......... Amoco Oil Port Everglades ......... 1180 Spangler Road .................... Port Everglades ...................... FL .... 33316T–65–FL–2164 .......... Star Enterprise Port Everglade .... 1200 Southeast 28th Street ......... Port Everglades ...................... FL .... 33316T–59–FL–2124 .......... Shell Oil Port Tampa ................... 6500 Commerce St ...................... Port Tampa ............................. FL .... 33616T–59–FL–2125 .......... Murphy Oil St Marks .................... 585 Port Leon Drive ..................... St Marks .................................. FL .... 32355T–59–FL–2127 .......... TOC Terminals St Marks ............. 25 miles south of Tallahassee ..... St Marks .................................. FL .... 32355T–59–FL–2129 .......... GATX Terminal Taft ..................... 9919 Palm Avenue ...................... Taft .......................................... FL .... 32824T–59–FL–2100 .......... Murphy Oil USA Tampa ............... 1306 Ingram Ave ......................... Tampa ..................................... FL .... 33601T–59–FL–2101 .......... Louis Dreyfus Tampa ................... 1523 Port Avenue ........................ Tampa ..................................... FL .... 33605



[July 1, 1995]


T–59–FL–2123 .......... GATX Terminals Port Tampa ...... 100 GATX Drive ........................... Tampa ..................................... FL .... 33605T–59–FL–2130 .......... Amoco Oil Tampa ........................ 848 McCloskey Boulevard ........... Tampa ..................................... FL .... 33605T–59–FL–2131 .......... Chevron USA Tampa ................... 5500 Commerce Street ................ Tampa ..................................... FL .... 33616T–59–FL–2133 .......... CITGO Tampa ............................. 801 McCloskey Blvd .................... Tampa ..................................... FL .... 33605T–59–FL–2135 .......... B P Oil Tampa ............................. 5881 Ingraham Street .................. Tampa ..................................... FL .... 33686T–59–FL–2136 .......... Marathon Oil Tampa .................... 425 South 20th Street .................. Tampa ..................................... FL .... 33605T–59–FL–2137 .......... Star Enterprise Tampa ................. 519 19th Street ............................ Tampa ..................................... FL .... 33605T–59–FL–2107 .......... Amerada Hess Tampa ................. 504 N 19th Street ........................ Tampa ..................................... FL .... 33605T–58–GA–2500 ......... Phillips Pipeline Albany ................ 1603 W Oakridge Dr .................... Albany ..................................... GA ... 31707T–58–GA–2501 ......... Southern Facilities Albany ........... 1722 W Oakridge Dr .................... Albany ..................................... GA ... 31707T–58–GA–2502 ......... Louis Dreyfus Albany ................... 1162 Gillionville Rd ...................... Albany ..................................... GA ... 31707T–58–GA–2505 ......... Louis Dreyfus Americus ............... Plains Road Highway 280 W ....... Americus ................................. GA ... 31709T–58–GA–2506 ......... Chevron USA Athens ................... 3460 Jefferson Road ................... Athens ..................................... GA ... 30607T–58–GA–2508 ......... Louis Dreyfus Athens ................... 3450 Jefferson Road ................... Athens ..................................... GA ... 30607T–58–GA–2511 ......... Louis Dreyfus Atlanta ................... 3132 Parrot Avenue Northwest ... Atlanta ..................................... GA ... 30318T–58–GA–2504 ......... S T Services Augusta .................. 209 Sand Bar Ferry Road ........... Augusta ................................... GA ... 30901T–58–GA–2514 ......... Star Enterprise Bainbridge ........... 803 East Shotwell Street ............. Bainbridge ............................... GA ... 31717T–58–GA–2515 ......... Louis Dreyfus Bainbridge ............. 1909 East Shotwell Street ........... Bainbridge ............................... GA ... 31717T–58–GA–2516 ......... Stratus Petroleum Blakely ........... Hwy 62 W & Chattahoochee Rd . Blakely ..................................... GA ... 31723T–58–GA–2517 ......... S T Services Bremen ................... Hwy 27 South .............................. Bremen .................................... GA ... 30110T–58–GA–2518 ......... Steuart Petroleum Brunswick ...... 211 Newcastle Street ................... Brunswick ................................ GA ... 31520T–58–GA–2519 ......... Fina Oil & Chemical Atlanta ........ 2970 Parrott Avenue .................... Chattahoochee ........................ GA ... 30318T–58–GA–2520 ......... Chevron USA Columbus .............. 5131 Miller Road .......................... Columbus ................................ GA ... 31908T–58–GA–2521 ......... Crown Central Columbus ............. 4840 Miller Rd .............................. Columbus ................................ GA ... 31904T–58–GA–2522 ......... ITAPCO Inc Columbus ................ 5225 Miller Road .......................... Columbus ................................ GA ... 31904T–58–GA–2523 ......... Marathon Oil Columbus ............... 5030 Miller Road .......................... Columbus ................................ GA ... 31908T–58–GA–2524 ......... S T Services Columbus ............... 800 Lumpkin Boulevard ............... Columbus ................................ GA ... 31901T–58–GA–2510 ......... Star Enterprise Doraville .............. 4127 Winters Chapel Road ......... Doraville .................................. GA ... 30360T–58–GA–2525 ......... Amerada Hess Doraville .............. 2836 Woodwin Road ................... Doraville .................................. GA ... 30362T–58–GA–2526 ......... Amoco Oil Doraville ..................... 6430 New Peachtree Road ......... Doraville .................................. GA ... 30340T–58–GA–2527 ......... Ashland Doraville ......................... 4201 Winters Chapel Road ......... Doraville .................................. GA ... 30360T–58–GA–2528 ......... Chevron USA Doraville ................ 4026 Winters Chapel Road ......... Doraville .................................. GA ... 30362T–58–GA–2529 ......... CITGO Doraville ........................... 3877 Flowers Drive ...................... Doraville .................................. GA ... 30362T–58–GA–2530 ......... Crown Central Doraville ............... 2765 Woodwin Rd ....................... Doraville .................................. GA ... 30360T–58–GA–2531 ......... Exxon USA Doraville ................... 4143 Winters Chapel Rd ............. Doraville .................................. GA ... 30360T–58–GA–2532 ......... Marathon Oil Doraville ................. 6293 New Peachtree Road ......... Doraville .................................. GA ... 30341T–58–GA–2533 ......... Phillips Pipeline Doraville ............. 4149 Winters Chapel Road ......... Doraville .................................. GA ... 30360T–58–GA–2534 ......... Amoco Oil Doraville ..................... 4064 Winters Chapel Rd ............. Doraville .................................. GA ... 30340T–58–GA–2535 ......... Southern Facilities Doraville ........ 2797 Woodwin Road ................... Doraville .................................. GA ... 30360T–58–GA–2537 ......... Louis Dreyfus Griffin .................... 643B East McIntosh Road ........... Griffin ....................................... GA ... 30223T–58–GA–2538 ......... Chevron USA Macon ................... 2476 Allen Road .......................... Macon ..................................... GA ... 31206T–58–GA–2541 ......... Marathon Oil Macon .................... 2445 Allen Road .......................... Macon ..................................... GA ... 31206T–58–GA–2542 ......... S T Services Macon .................... 6225 Hawkinsville Road .............. Macon ..................................... GA ... 31206T–58–GA–2543 ......... Southern Facilities Macon ........... 2505 Allen Road .......................... Macon ..................................... GA ... 31206T–58–GA–2544 ......... Louis Dreyfus Macon ................... 5041 Foryth Rd ............................ Macon ..................................... GA ... 31210T–58–GA–2545 ......... Marathon Oil Powder Springs ...... 3895 Anderson Farm Road NW .. Powder Springs ....................... GA ... 30073T–58–GA–2547 ......... Louis Dreyfus Southeast .............. 2671 Calhoun Road ..................... Rome ....................................... GA ... 30161T–58–GA–2548 ......... Steuart Petroleum Savannah ....... 1 Woodcock Road ....................... Savannah ................................ GA ... 31404T–58–GA–2550 ......... Colonial Oil Savannah ................. 101 North Lathrop Ave ................ Savannah ................................ GA ... 31401T–58–GA–2551 ......... Paktank Corp Savannah Term .... Georgia Ports Garden City .......... Savannah ................................ GA ... 31418T–58–GA–2552 ......... UNOCAL Savannah ..................... Deptford Tract President St ......... Savannah ................................ GA ... 31412T–58–GA–2503 ......... CITGO Savannah ........................ Foundation Dr .............................. Savannah ................................ GA ... 31402T–99–HI–4552 ........... Chevron USA Hilo ........................ 666 Kalanianaole Avenue ............ Hilo .......................................... HI .... 96720T–99–HI–4558 ........... Shell Oil Hilo ................................ 661 Kalanianaole Ave .................. Hilo .......................................... HI .... 96720T–99–HI–4559 ........... UNOCAL Hilo ............................... 607 Kalanianaole Ave .................. Hilo .......................................... HI .... 96420T–99–HI–4560 ........... Texaco Hilo .................................. 999 Kalanianaole Ave .................. Hilo .......................................... HI .... 96720T–99–HI–4561 ........... BHP Petroleum Americas Hilo ..... 700 Kalanianaole Ave .................. Hilo .......................................... HI .... 96720T–99–HI–4553 ........... Chevron USA Honolulu ................ 777 North Nimitz Highway ........... Honolulu .................................. HI .... 96817T–99–HI–4556 ........... UNOCAL Honolulu ....................... 411 Pacific St ............................... Honolulu .................................. HI .... 96814T–99–HI–4557 ........... Shell Oil Honolulu ........................ 789 N Nimitz ................................ Honolulu .................................. HI .... 96814T–99–HI–4564 ........... BHP Petro Americas Term 29–A . 739A North Nimitz Highway ......... Honolulu .................................. HI .... 96814T–99–HI–4554 ........... Chevron USA Kahului .................. 100A Hobron Avenue .................. Kahului .................................... HI .... 96732T–99–HI–4563 ........... BHP Petro Americas Kahului ....... 140 H Hobron Ave ....................... Kahului .................................... HI .... 96742T–99–HI–4565 ........... UNOCAL Kahului ......................... 76 Hobron Ave ............................. Kahului .................................... HI .... 96732T–99–HI–4566 ........... Shell Kahului ................................ 60 Hobron .................................... Kahului .................................... HI .... 96742T–99–HI–4562 ........... Shell Oil Nawiliwili ........................ 3145 Waapa Rd ........................... Lihue ....................................... HI .... 96766T–99–HI–4551 ........... Texaco Barber’s Point ................. Barber’s Point .............................. Oahu ....................................... HI .... 96706T–99–HI–4555 ........... Chevron USA Port Allen .............. A & B Road Port .......................... Port Allen ................................ HI .... 96704T–42–IA–3450 ........... Amoco Oil Bettendorf ................... 75 South 31st Street .................... Bettendorf ................................ IA .... 52722T–42–IA–3451 ........... Koch Refining Bettendorf ............. 4100 Elm St ................................. Bettendorf ................................ IA .... 52722



[July 1, 1995]


T–42–IA–3452 ........... Phillips Petro Bettendorf .............. 2925 Depot Street ........................ Bettendorf ................................ IA .... 52722T–42–IA–3471 ........... UNO-VEN Riverdale .................... 312 South Bellingham Street ....... Bettendorf ................................ IA .... 52722T–42–IA–3465 ........... Williams Pipe Line Mason City .... 2810 East Main ............................ Clear Lake ............................... IA .... 50428T–42–IA–3463 ........... Williams Pipe Line Iowa City ....... 912 First Avenue .......................... Coralville ................................. IA .... 52241T–42–IA–3454 ........... Amoco Oil Council Bluffs ............. 829 East South Bridge Rd ........... Council Bluffs .......................... IA .... 51501T–42–IA–3455 ........... National Coop Council Bluffs ....... 825 East South Omaha Bridge

Rd.Council Bluffs .......................... IA .... 51502

T–42–IA–3456 ........... Amoco Oil Des Moines ................ 1501 Northwest 86th Street ......... Des Moines ............................. IA .... 50325T–42–IA–3457 ........... Williams Pipe Line Des Moines ... 2503 Southeast 43rd Street ......... Des Moines ............................. IA .... 50317T–42–IA–3459 ........... Koch Refining Dubuque ............... PO Box 921 ................................. Dubuque .................................. IA .... 52004T–42–IA–3460 ........... Williams Pipe Line Dubuque ........ 8038 St Joe’s Prairie Rd .............. Dubuque .................................. IA .... 52003T–42–IA–3461 ........... Williams Pipe Line Fort Dodge .... 6 miles from Ft Dodge ................. Duncombe ............................... IA .... 50532T–42–IA–3462 ........... Sinclair Pipeline Fort Madison ..... 35th St & Santa Fe Bridge .......... Fort Madison ........................... IA .... 52627T–42–IA–3458 ........... Amoco Oil Dubuque ..................... 8 Mi W of Dubuque on Hwy 20 ... Julian ....................................... IA .... 52001T–42–IA–3464 ........... Kaneb Pipe Line Le Mars ............ US Hwy 75/7 Miles N of LeMars . Le Mars ................................... IA .... 51031T–42–IA–3466 ........... Kaneb Pipe Line Milford .............. 1 mile W of Milford & Hwy 71 ...... Milford ..................................... IA .... 51351T–42–IA–3467 ........... Williams Pipe Line Milford ........... RT #1 ........................................... Milford ..................................... IA .... 51351T–42–IA–3468 ........... Amoco Oil North Liberty .............. 2092 Hwy 965 NE ........................ North Liberty ........................... IA .... 52317T–42–IA–3469 ........... Amoco Oil Ottumwa ..................... Three miles west on US 34 ......... Ottumwa .................................. IA .... 52501T–42–IA–3470 ........... Heartland Pleasant Hill ................ 4500 Vandalia .............................. Pleasant Hill ............................ IA .... 50317T–42–IA–3472 ........... Kaneb Pipeline Rock Rapids ....... State Hwy 9 ................................. Rock Rapids ............................ IA .... 51246T–42–IA–3473 ........... Williams Pipe Line Sioux City ...... 4300 41st Street .......................... Sioux City ................................ IA .... 51108T–42–IA–3453 ........... Williams Pipe Line Sioux South ... 3701 South Lewis Blvd ................ Sioux City ................................ IA .... 51106T–42–IA–3474 ........... Williams Pipe Line Waterloo ........ 5360 Eldora Rd ............................ Waterloo .................................. IA .... 50701T–82–ID–4150 ........... Boise Idaho Terminal ................... 321 North Curtis Road ................. Boise ....................................... ID .... 83707T–82–ID–4152 ........... Flying J Boise .............................. 70 North Philipi Road ................... Boise ....................................... ID .... 83706T–82–ID–4151 ........... Northwest Terminaling Boise ....... 321 North Curtis Rd ..................... Boise ....................................... ID .... 83704T–82–ID–4155 ........... Amoco Oil Burley ......................... 421 East Highway 81 ................... Burley ...................................... ID .... 83318T–82–ID–4157 ........... Burley Products Terminal ............ 425 East Hwy 81 PO Box 233 .... Burley ...................................... ID .... 83318T–82–ID–4159 ........... Chevron Pipeline Pocatello .......... Rowland Road Route One ........... Pocatello ................................. ID .... 83201T–36–IL–3319 ........... Williams Pipe Line Amboy ........... 1222 U S Route 30 ...................... Amboy ..................................... IL ..... 61310T–36–IL–3305 ........... GATX Terminals Argo .................. 8500 West 68th Street ................. Argo ......................................... IL ..... 60501T–36–IL–3304 ........... CITGO Mt Prospect ..................... 2316 Terminal Drive .................... Arlington Heights ..................... IL ..... 60005T–36–IL–3307 ........... Marathon Mt Prospect ................. 3231 Busse Road ........................ Arlington Heights ..................... IL ..... 60005T–36–IL–3316 ........... Shell Oil Des Plaines ................... 1605 East Algonguin Road .......... Arlington Heights ..................... IL ..... 60005T–36–IL–3322 ........... ARCO Des Plaines Terminal ....... 1000 Terminal Drive .................... Arlington Heights ..................... IL ..... 60005T–37–IL–3364 ........... Meioco Terminal .......................... Rt 49 South .................................. Ashkum ................................... IL ..... 60911T–37–IL–3352 ........... Clark Rfg Peoria .......................... 7022 South Cilco Lane ................ Bartonville ............................... IL ..... 61607T–36–IL–3315 ........... Shell Oil Argo ............................... 8600 West 71st Street ................. Bedford Park ........................... IL ..... 60501T–36–IL–3310 ........... Martin Oil Blue Island .................. 3210 West 131st Street ............... Blue Island .............................. IL ..... 60406T–36–IL–3300 ........... Clark Rfg Blue Island Term ......... 131st & Homan Avenue ............... Blue Island .............................. IL ..... 60406T–37–IL–3366 ........... Phillips Petroleum E St Louis ...... 3300 Mississippi Ave ................... Cahokia ................................... IL ..... 62206T–37–IL–3358 ........... Marathon Champaign .................. 511 S Staley Road ....................... Champaign .............................. IL ..... 61821T–37–IL–3367 ........... S T Services Chillicothe ............... 20206 Rt 29 North ....................... Chillicothe ................................ IL ..... 61523T–37–IL–3350 ........... Amoco Oil Peoria ......................... 1101 Wesley Road ...................... Creve Coeur ............................ IL ..... 61611T–37–IL–3355 ........... Hicks Oils & Hicks Gas Inc .......... 1118 Wesley Road ...................... Creve Coeur ............................ IL ..... 61611T–36–IL–3301 ........... Amoco Oil Des Plaines ................ 2201 South Elmhurst Rd ............. Des Plaines ............................. IL ..... 60018T–36–IL–3311 ........... Mobil Oil Des Plaines .................. 2312 Terminal Drive .................... Des Plaines ............................. IL ..... 60005T–36–IL–3318 ........... UNO-VEN Des Plaines ................ 2304 Terminal Drive .................... Des Plaines ............................. IL ..... 60056T–37–IL–3368 ........... Shell Oil Effingham ...................... Rural Route 3 ............................... Effingham ................................ IL ..... 62401T–36–IL–3302 ........... Amoco Oil Forest View ................ 4811 South Harlem Avenue ........ Forest View ............................. IL ..... 60402T–36–IL–3312 ........... Petroleum Fuel Forest View ........ 4801 South Harlem ...................... Forest View ............................. IL ..... 60402T–37–IL–3365 ........... Phillips 66 Decatur ....................... 266 E Shafer ................................ Forsuth .................................... IL ..... 62535T–36–IL–3320 ........... Williams Pipeline Franklin ............ 10601 Franklin Avenue ................ Franklin Park ........................... IL ..... 60131T–37–IL–3362 ........... Petroleum Fuel Granite City ........ 2801 Rock Road .......................... Granite City ............................. IL ..... 62040T–37–IL–3369 ........... Shell Oil Harristown ..................... 600 E Lincoln Memorial Pky ........ Harristown ............................... IL ..... 62537T–37–IL–3353 ........... Conoco Wood River ..................... Route 3 ........................................ Hartford ................................... IL ..... 62048T–37–IL–3354 ........... Hartford Wood River .................... 900 North Delmar ........................ Hartford ................................... IL ..... 62048T–37–IL–3356 ........... Clark Rfg Hartford ........................ South Side Hawthorne ................. Hartford ................................... IL ..... 62048T–37–IL–3371 ........... Williams Pipe Line Heyworth ....... Rural Route Two .......................... Heyworth ................................. IL ..... 61745T–36–IL–3313 ........... Phillips 66 Kankakee ................... 275 North 2750 Road West ......... Kankakee ................................ IL ..... 60901T–37–IL–3357 ........... Lawrenceville Indian Refinery ...... Rt 1 South .................................... Lawrenceville .......................... IL ..... 62439T–36–IL–3317 ........... UNO-VEN Lemont ....................... 135th New Avenue ...................... Lemont .................................... IL ..... 60439T–37–IL–3361 ........... La Gloria Oil Norris City ............... Rural Route 2 ............................... Norris City ............................... IL ..... 62869T–36–IL–3314 ........... S T Services Peru ........................ 2830 West Market Street ............. Peru ......................................... IL ..... 61354T–37–IL–3372 ........... Williams Pipe Line Menard Cty ... Rural Route Three ....................... Petersburg ............................... IL ..... 62675T–37–IL–3360 ........... Marathon Robinson ...................... Rural Route One .......................... Robinson ................................. IL ..... 62454T–36–IL–3303 ........... Amoco Oil Rochelle ..................... 100 East Standard Oil Road ........ Rochelle .................................. IL ..... 61068T–36–IL–3308 ........... Marathon Oil Rockford ................. 7312 Cunningham Road .............. Rockford .................................. IL ..... 61102T–36–IL–3306 ........... Clark Rfg Rockford ...................... 1511 South Meridian Rd .............. Rockford .................................. IL ..... 61102T–36–IL–3321 ........... J M Sweeney Stickney ................ 5200 West 41st Street ................. Stickney ................................... IL ..... 60650T–36–IL–3309 ........... Marathon Willow Springs ............. 7600 LaGrange Road .................. Willow Springs ........................ IL ..... 60480



[July 1, 1995]


T–37–IL–3351 ........... Amoco Oil Wood River ................ 335 South Old St Louis Rd .......... Wood River ............................. IL ..... 62095T–35–IN–3201 ........... Amoco Oil Brookston ................... Route 43 ...................................... Brookston ................................ IN .... 47923T–35–IN–3206 ........... Ashland Clarksville ....................... 214 Center Street ........................ Clarksville ................................ IN .... 47124T–35–IN–3215 ........... La Gloria Oil Clermont ................. 9323 West 30th ............................ Clermont .................................. IN .... 46234T–35–IN–3226 ........... Phillips 66 Clermont ..................... 3230 N Raceway Road ................ Clermont .................................. IN .... 46234T–35–IN–3227 ........... S T Services Clermont ................. 3350 N Raceway Rd .................... Clermont .................................. IN .... 46234T–35–IN–3209 ........... CITGO East Chicago ................... 2500 East Chicago Ave ............... East Chicago ........................... IN .... 46312T–35–IN–3225 ........... Phillips 66 East Chicago .............. 400 East Columbus Dr ................ East Chicago ........................... IN .... 46312T–35–IN–3207 ........... Ashland Evansville ....................... 2500 Broadway ............................ Evansville ................................ IN .... 47712T–35–IN–3213 ........... ITAPCO Evansville Terminal ....... 2630 Broadway ............................ Evansville ................................ IN .... 47712T–35–IN–3203 ........... Amoco Oil Granger ...................... State Highway 23 ......................... Granger ................................... IN .... 46530T–35–IN–3218 ........... Marathon Hammond .................... 4206 Columbia Avenue ............... Hammond ................................ IN .... 46327T–35–IN–3224 ........... Mobil Oil Hammond ..................... 1527 141th Street ........................ Hammond ................................ IN .... 46327T–35–IN–3228 ........... Shell Oil Hammond ...................... 2400 Michigan St ......................... Hammond ................................ IN .... 46320T–35–IN–3208 ........... Ashland Huntington ...................... 4648 N Meridian Road ................. Huntington ............................... IN .... 46750T–35–IN–3210 ........... CITGO Huntington ....................... 4393 N Meridian Rd US 24 ......... Huntington ............................... IN .... 46750T–35–IN–3211 ........... Gladieux T & M Huntington ......... 4757 US 24 E .............................. Huntington ............................... IN .... 46750T–35–IN–3231 ........... Sun Huntington ............................ 4691 N Meridian St ...................... Huntington ............................... IN .... 46750T–35–IN–3234 ........... Lassus Bros Huntington ............... 4413 North Meridian Rd .............. Huntington ............................... IN .... 46750T–35–IN–3204 ........... Amoco Oil Indianapolis ................ 2500 N Tibbs Avenue .................. Indianapolis ............................. IN .... 46222T–35–IN–3219 ........... Marathon Indianapolis .................. 4955 Robison Rd ......................... Indianapolis ............................. IN .... 46268T–35–IN–3222 ........... Marathon Speedway .................... 1304 Olin Ave .............................. Indianapolis ............................. IN .... 46222T–35–IN–3230 ........... Shell Oil Zionsville ....................... 5405 W 96th ................................ Indianapolis ............................. IN .... 46268T–35–IN–3233 ........... Kerr-McGee Indianapolis ............. 9301 W 30th Street ...................... Indianapolis ............................. IN .... 46234T–35–IN–3217 ........... Clark Rfg Clermont ...................... W 30th St PO Box 34175 ............ Indianapolis ............................. IN .... 46234T–35–IN–3223 ........... Sun Clairmont .............................. 3006 North Raceway Rd ............. Indianapolis ............................. IN .... 46234T–35–IN–3238 ........... Indianapolis Terminaling Co ........ 9410 E County Rd 300N ............. Indianapolis (CL) ..................... IN .... 46234T–35–IN–3237 ........... CountryMark Switz City ............... State Road 54 East ..................... Linton ...................................... IN .... 47441T–35–IN–3214 ........... CountryMark Mount Vernon ......... 1200 Refinery Road ..................... Mount Vernon ......................... IN .... 47620T–35–IN–3220 ........... Marathon Mount Vernon .............. Old State Rd #69 South ............... Mount Vernon ......................... IN .... 47620T–35–IN–3239 ........... Mt Vernon Terminal Indian Ref ... 300 Old Hwy 69 South ................ Mount Vernon ......................... IN .... 47620T–35–IN–3221 ........... Marathon Muncie ......................... 2100 East State Road 28 ............ Muncie ..................................... IN .... 47303T–35–IN–3229 ........... Shell Oil Muncie ........................... 2000 E State Rd 28 ..................... Muncie ..................................... IN .... 47303T–35–IN–3212 ........... ITAPCO Kentuckiana ................... 20 Jackson St .............................. New Albany ............................. IN .... 47150T–35–IN–3232 ........... TEPPCO Princeton ...................... Highway 64 West ......................... Oakland City ........................... IN .... 47660T–35–IN–3236 ........... CountryMark Peru ........................ Highway 24 West ......................... Peru ......................................... IN .... 46970T–35–IN–3216 ........... La Gloria Oil Seymour ................. 9780 N US Hwy 31 ...................... Seymour .................................. IN .... 47274T–35–IN–3235 ........... CountryMark Jolietville ................. 17710 Mule Barn ......................... Westfield ................................. IN .... 46074T–35–IN–3205 ........... Amoco Oil Whiting ....................... 2530 Indianapolis Blvd ................. Whiting .................................... IN .... 46394T–48–KS–3650 .......... Total Petroleum Arkansas City .... 1400 South M Street .................... Arkansas City .......................... KS ... 67005T–48–KS–3651 .......... Farmland Ind Coffeyville .............. North & Linden Streets ................ Coffeyville ................................ KS ... 67337T–48–KS–3652 .......... Kaneb Pipe Line Concordia ......... Route 1 ........................................ Delphos ................................... KS ... 67436T–48–KS–3654 .......... Texaco El Dorado ........................ South Haverhill Road ................... El Dorado ................................ KS ... 67042T–48–KS–3655 .......... Chase Pipeline Great Bend ......... Hwys 56 & 156 4 mi east of GB .. Great Bend .............................. KS ... 67530T–48–KS–3656 .......... Kaneb Pipe Line Hutchison ......... 3300 East Avenue G ................... Hutchison ................................ KS ... 67501T–48–KS–3658 .......... Sinclair Pipeline Kansas City ....... 3401 Fairbanks Avenue ............... Kansas City ............................. KS ... 66106T–48–KS–3659 .......... Williams Pipeline Kansas City ..... 401 East Donovan Road ............. Kansas City ............................. KS ... 66115T–48–KS–3660 .......... National Coop McPherson ........... 2000 South Main Street ............... McPherson .............................. KS ... 67460T–48–KS–3661 .......... Williams Pipe Line Olathe ............ 13745 West 135th Street ............. Olathe ...................................... KS ... 66062T–48–KS–3662 .......... Farmland Phillipsburg .................. Hwy 183 N ................................... Phillipsburg .............................. KS ... 67661T–48–KS–3663 .......... S T Services Salina ..................... West State Street & I–35 ............. Salina ...................................... KS ... 67401T–48–KS–3664 .......... Chase Pipeline Scott City ............ Junction Highways 83 & 4 ........... Scott City ................................. KS ... 67871T–48–KS–3666 .......... Amoco Oil Valley Center ............. 7452 N Meridian .......................... Valley Center .......................... KS ... 67147T–48–KS–3665 .......... Williams Pipe Line Topeka .......... US Hwy 75 RFD 1 ....................... Wakarusa ................................ KS ... 66546T–48–KS–3667 .......... Williams Pipe Line Wathena ........ Hwy 36 1 mile East of Wathena .. Wathena .................................. KS ... 66090T–48–KS–3669 .......... Coastal Refining Wichita .............. 1100 East 21st Street .................. Wichita .................................... KS ... 67214T–48–KS–3670 .......... Conoco Wichita ............................ 8001 Oak Knoll Road .................. Wichita .................................... KS ... 67207T–48–KS–3671 .......... Phillips Pipeline Wichita ............... 2400 East 37th Street North ........ Wichita .................................... KS ... 67219T–61–KY–3261 .......... B P Oil Bromley ........................... 409 River Road ............................ Bromley ................................... KY ... 41016T–61–KY–3262 .......... Ashland Catlettsburg .................... Old St Rt 23 ................................. Catlettsburg ............................. KY ... 41129T–61–KY–3263 .......... Ashland Covington ....................... 230 East 33rd Street .................... Covington ................................ KY ... 41015T–61–KY–3265 .......... Henderson Terminaling ................ 2321 Old Geneva Road ............... Henderson ............................... KY ... 42420T–61–KY–3266 .......... Ashland Lexington ....................... 1770 Old Frankfort Pike ............... Lexington ................................. KY ... 40504T–61–KY–3267 .......... Chevron USA Lexington .............. 1750 Old Frankfort Pike ............... Lexington ................................. KY ... 40504T–61–KY–3268 .......... Ashland Louisville ........................ 4510 Algonquin Parkway ............. Louisville ................................. KY ... 40211T–61–KY–3269 .......... B P Oil Louisville .......................... SW Parkway & Gibson Lane ....... Louisville ................................. KY ... 40211T–61–KY–3270 .......... Chevron USA Louisville ............... 4401 Bells Lane ........................... Louisville ................................. KY ... 40211T–61–KY–3271 .......... ITAPCO Louisville ........................ 4510 Bells Lane ........................... Louisville ................................. KY ... 40211T–61–KY–3272 .......... Marathon Oil Louisville ................ 3920 Kramers Lane ..................... Louisville ................................. KY ... 40216T–61–KY–3273 .......... Sun Louisville ............................... 7800 Cane Run Road .................. Louisville ................................. KY ... 40258T–61–KY–3274 .......... Kerr-McGee Louisville .................. 4724 Camp Ground Road ........... Louisville ................................. KY ... 40216



[July 1, 1995]


T–61–KY–3264 .......... Chevron USA Covington .............. 700 River Road ............................ Ludlow ..................................... KY ... 41016T–61–KY–3276 .......... Ashland Paducah ......................... Highway 62 & Ashland Road ....... Paducah .................................. KY ... 42003T–61–KY–3278 .......... ITAPCO Paducah ........................ 233 Elizabeth St ........................... Paducah .................................. KY ... 42001T–72–LA–2350 .......... B P Oil Alliance ............................ ...................................................... Alliance .................................... LA ... .........T–72–LA–2351 .......... Chevron USA Arcadia .................. Highway 80 East .......................... Arcadia .................................... LA ... 71001T–72–LA–2352 .......... CITGO Arcadia ............................ Highway 80 East .......................... Arcadia .................................... LA ... 71001T–72–LA–2353 .......... Exxon Co USA Arcadia ............... Highway 80 East .......................... Arcadia .................................... LA ... 71001T–72–LA–2358 .......... Exxon USA Baton Rouge ............ 3329 Scenic Highway .................. Baton Rouge ........................... LA ... 70805T–72–LA–2382 .......... Paktank Corp Westwego ............. 106 Bridge City Avenue ............... Bridge City .............................. LA ... 70094T–72–LA–2360 .......... Mobil Oil Chalmette ..................... 1700 Paris Rd Gate 50 ................ Chalmette ................................ LA ... 70043T–72–LA–2362 .......... Kerr-McGee Cotton Valley ........... Highway 7 South .......................... Cotton Valley ........................... LA ... 71018T–72–LA–2383 .......... Phibro Marine Fuels ..................... 7168 Shrimpers Row ................... Dulac ....................................... LA ... 70353T–72–LA–2357 .......... Chevron USA Baton Rouge ......... 1315 Mengel Road ...................... East Baton Rouge ................... LA ... 70807T–72–LA–2363 .......... Marathon Oil Garyville ................. Highway 61 .................................. Garyville .................................. LA ... 70051T–72–LA–2384 .......... Phibro Marine Fuel Gretna .......... 1125 Fourth St ............................. Gretna ..................................... LA ... .........T–72–LA–2365 .......... Shell Oil Kenner ........................... 143 Firehouse Drive .................... Kenner ..................................... LA ... 70062T–72–LA–2366 .......... Phibro Energy USA Krotz Spring Highway 105 South ...................... Krotz Springs .......................... LA ... 70750T–72–LA–2367 .......... Calcasieu Lake Charles ............... West End of Tank Farm Road ..... Lake Charles ........................... LA ... 70606T–72–LA–2368 .......... CITGO Lake Charles ................... Cities Serv Hwy & LA Hwy 108 ... Lake Charles ........................... LA ... 70601T–72–LA–2386 .......... Goldline Refinery ......................... 4646 Hwy 3059 ............................ Lake Charles ........................... LA ... 70601T–72–LA–2370 .......... Dubach Gas Co Claiborne Plant . Highway 2 PO Box 170 ............... Lisbon ...................................... LA ... 71048T–72–LA–2373 .......... Star Enterprise New Orleans ....... Barataria & River Road ................ Marrero .................................... LA ... 70072T–72–LA–2371 .......... Murphy Oil USA Meraux .............. 2501 East St Bernard Hwy .......... Meraux .................................... LA ... 70075T–72–LA–2372 .......... Mobil Oil Morgan City .................. 1000 Young’s Road ..................... Morgan City ............................. LA ... 70380T–72–LA–2374 .......... GATX Terminals Norco ................ 1601 River Road .......................... Norco ....................................... LA ... 70079T–72–LA–2375 .......... Chevron USA Opelousas ............. Highway 182 South ...................... Opelousas ............................... LA ... 70571T–72–LA–2359 .......... Petroleum Fuel Baton Rouge ...... 995 Earnest Wilson Road ............ Port Allen ................................ LA ... 70767T–72–LA–2376 .......... Placid Refining Co Port Allen ...... 1940 Louisiana Hwy One North .. Port Allen ................................ LA ... 70767T–72–LA–2378 .......... Atlas Processing Co Shreveport .. 3333 Midway PO Box 3099 ......... Shreveport ............................... LA ... 71133T–72–LA–2361 .......... Star Enterprise Convent .............. LA Highways 44 N of Sunshine ... Union ....................................... LA ... 70723T–72–LA–2381 .......... Conoco Westlake ......................... 1980 Old Spanish Trail ................ Westlake ................................. LA ... 70669T–04–MA–1154 ......... Mobil Oil East Boston .................. 467 Chelsea Street ...................... Boston ..................................... MA .. 2128T–04–MA–1155 ......... CITGO East Braintree .................. 385 Quincy Ave ........................... Braintree .................................. MA .. 2184T–04–MA–1153 ......... Gulf Oil Chelsea ........................... 151 Everett Ave ........................... Chelsa ..................................... MA .. 2150T–04–MA–1156 ......... Exxon USA Everett ...................... 52 Beachum Street ...................... Everett ..................................... MA .. 2149T–04–MA–1157 ......... Shell Oil Fall River ....................... One New Street ........................... Fall River ................................. MA .. 2720T–04–MA–1160 ......... B P Oil Revere ............................. 41 Lee Burbank Highway ............ Revere ..................................... MA .. 2151T–04–MA–1161 ......... Coastal Oil NE Revere ................ 222 Lee Burbank Hwy ................. Revere ..................................... MA .. 2151T–04–MA–1162 ......... Global Petroleum Revere ............ 140 Lee Burbank Hwy ................. Revere ..................................... MA .. 2151T–04–MA–1163 ......... Northeast Petroleum Salem ......... 25 Derby Street ............................ Salem ...................................... MA .. 1970T–04–MA–1164 ......... Northeast Petroleum Sandwich ... 3 Coast Guard Road .................... Sandwich ................................. MA .. 2563T–04–MA–1165 ......... Coastal Oil NE South Boston ...... 900 E First Street ......................... South Boston .......................... MA .. 2128T–04–MA–1168 ......... Mobil Oil Springfield ..................... 145 Albany Street ........................ Springfield ............................... MA .. 1105T–04–MA–1151 ......... L E Belcher Springfield ................ 615 St James Ave ....................... Springfield ............................... MA .. 1109T–04–MA–1170 ......... Sprague Energy Weymouth ......... 5 Bridge St ................................... Weymouth ............................... MA .. 2191T–52–MD–1550 ......... Amerada Hess Baltimore ............. 6200 Pennington Avenue ............ Baltimore ................................. MD .. 21226T–52–MD–1552 ......... B P Oil Baltimore ......................... 2155 Northbridge Ave .................. Baltimore ................................. MD .. 21226T–52–MD–1554 ......... APEX Oil Baltimore ...................... 5101 Erdman Avenue .................. Baltimore ................................. MD .. 21205T–52–MD–1555 ......... Conoco Baltimore ........................ 3410 Farifield Road ..................... Baltimore ................................. MD .. 21226T–52–MD–1556 ......... Crown Central Baltimore .............. 6000 Pennington Avenue ............ Baltimore ................................. MD .. 21226T–52–MD–1557 ......... Exxon USA Baltimore .................. 3801 Boston Street ...................... Baltimore ................................. MD .. 21224T–52–MD–1558 ......... Mobil Oil Baltimore ....................... 3445 Fairfield Road ..................... Baltimore ................................. MD .. 21226T–52–MD–1559 ......... Petroleum Fuel Baltimore ............ 1622 South Clinton Street ........... Baltimore ................................. MD .. 21224T–52–MD–1560 ......... S T Services Baltimore ................ 1800 Frankfurst Avenue .............. Baltimore ................................. MD .. 21226T–52–MD–1561 ......... Shell Oil Baltimore ....................... 2400 Petrolia Avenue .................. Baltimore ................................. MD .. 21226T–52–MD–1562 ......... Star Enterprise Baltimore ............. 2201 Southport Avenue ............... Baltimore ................................. MD .. 21226T–52–MD–1563 ......... Stratus Petroleum Baltimore ........ 3100 Vera Street .......................... Baltimore ................................. MD .. 21226T–52–MD–1551 ......... Amoco Oil Baltimore .................... 801 East Ordance Rd .................. Curtis Bay ............................... MD .. 21226T–52–MD–1565 ......... Steuart Petroleum Piney Point .... Route 249 .................................... Piney Point .............................. MD .. 20674T–52–MD–1566 ......... Amoco Oil Salisbury .................... Parson’s Road ............................. Salisbury ................................. MD .. 21801T–52–MD–1567 ......... Cato Oil Salisbury ........................ 1030 Marine Road PO Box 1030 Salisbury ................................. MD .. 21801T–52–MD–1568 ......... Maritank Salisbury ....................... Marine Road Route 12 ................ Salisbury ................................. MD .. 21801T–01–ME–1000 ......... Mobil Oil Bangor .......................... 730 Lower Main Street ................ Bangor ..................................... ME .. 4401T–01–ME–1011 ......... Webber Oil Bangor ...................... 700 Main St .................................. Bangor ..................................... ME .. 4401T–01–ME–1013 ......... Webber Tanks Brewer ................. 230 South Main ............................ Brewer ..................................... ME .. 4412T–01–ME–1012 ......... Webber Tanks Buckport .............. Drawer CC River Road ................ Bucksport ................................ ME .. 4416T–01–ME–1002 ......... Coldbrook Energy Hampden ....... 809 Main Road No ....................... Hampden ................................. ME .. 4044T–01–ME–1003 ......... B P Oil South Portland ................ 59 Main Street ............................. South Portland ........................ ME .. 4106T–01–ME–1004 ......... Mobil Oil Portland ........................ 170 Lincoln Street ........................ South Portland ........................ ME .. 4106



[July 1, 1995]


T–01–ME–1007 ......... Getty Terminal South Portland .... 27 Main Street ............................. South Portland ........................ ME .. 4102T–01–ME–1008 ......... Gulf Oil South Portland ................ 175 Front St ................................. South Portland ........................ ME .. 4106T–01–ME–1009 ......... Northeast Petroleum S Portland .. One Clarks Road ......................... South Portland ........................ ME .. 4106T–01–ME–1010 ......... Star Enterprise South Portland .... 102 Mechanic Street .................... South Portland ........................ ME .. 4106T–01–ME–1001 ......... Koch Fuels South Portland .......... 5 Central Avenue ......................... South Portland ........................ ME .. 4106T–38–MI–3031 .......... Total Petroleum Alma .................. 1925 East Superior St ................. Alma ........................................ MI .... 48802T–38–MI–3000 .......... Amoco Oil Bay City ...................... 411 Tiernan Road ........................ Bay City ................................... MI .... 48707T–38–MI–3032 .......... Total Petroleum Bay City ............. 1806 Marquette ............................ Bay City ................................... MI .... 48706T–38–MI–3036 .......... Uno Ven Bay City ........................ 5011 Wilder Road ........................ Bay City ................................... MI .... 48706T–38–MI–3038 .......... Crystal Refining Company ........... 801 North Williams ....................... Carson City ............................. MI .... 48811T–38–MI–3001 .......... Amoco Oil Cheyboygan ............... 311 Coast Guard Drive ................ Cheyboygan ............................ MI .... 49721T–38–MI–3021 .......... Mobil Oil Dearborn ....................... 6011 Wyoming ............................. Dearborn ................................. MI .... 48126T–38–MI–3015 .......... Marathon Detroit .......................... 12700 Toronto St ......................... Detroit ...................................... MI .... 48217T–38–MI–3025 .......... Shell Oil Detroit ............................ 700 South Deacon ....................... Detroit ...................................... MI .... 48217T–38–MI–3030 .......... Sun River Rouge ......................... 500 South Dix Avenue ................. Detroit ...................................... MI .... 48217T–38–MI–3008 .......... CITGO Ferrysburg ....................... 524 Third Street ........................... Ferrysburg ............................... MI .... 49409T–38–MI–3013 .......... Koch Ferrysburg .......................... 17806 North Shore Drive ............. Ferrysburg ............................... MI .... 49409T–38–MI–3022 .......... Mobil Oil Flint ............................... G5340 North Dort Highway ......... Flint ......................................... MI .... 48505T–38–MI–3026 .......... Shell Oil Grand Haven ................. 740 North 3rd St .......................... Grand Haven ........................... MI .... 49417T–38–MI–3041 .......... Quality Oil Company .................... 630 Ottawa Avenue ..................... Holland .................................... MI .... 49423T–38–MI–3009 .......... CITGO Jackson ........................... 2001 Morrill Rd ............................ Jackson ................................... MI .... 49201T–38–MI–3017 .......... Marathon Jackson ........................ 2090 Morrill Rd ............................ Jackson ................................... MI .... 49201T–38–MI–3027 .......... Shell Oil Jackson ......................... 2103 Morrill Rd ............................ Jackson ................................... MI .... 49201T–38–MI–3033 .......... Total Petroleum Lansing .............. 6300 West Grand River ............... Lansing .................................... MI .... 48906T–38–MI–3043 .......... Clark Rfg Marshall ....................... 12451 S Old US 27 ..................... Marshall ................................... MI .... 49068T–38–MI–3016 .......... Marathon Flint .............................. 6065 North Dort Highway ............ Mt Morris ................................. MI .... 48458T–38–MI–3004 .......... Amoco Oil Napoleon .................... 6777 Brooklyn Road .................... Napoleon ................................. MI .... 49261T–38–MI–3010 .......... CITGO Niles ................................. 2233 South Third ......................... Niles ........................................ MI .... 49120T–38–MI–3011 .......... Marathon Niles ............................. 2140 South Third St ..................... Niles ........................................ MI .... 49120T–38–MI–3019 .......... Marathon Oil Niles ....................... 2216 South Third Street .............. Niles ........................................ MI .... 49120T–38–MI–3023 .......... Mobil Oil Niles .............................. 2150 South Third Street .............. Niles ........................................ MI .... 49120T–38–MI–3028 .......... Shell Oil Niles .............................. 3252 Fulkerson Rd ...................... Niles ........................................ MI .... 49120T–38–MI–3040 .......... Koch Niles .................................... 2303 South Third Street .............. Niles ........................................ MI .... 49120T–38–MI–3020 .......... Marathon N Muskegon ................ 3005 Holton Rd ............................ North Muskegon ...................... MI .... 49445T–38–MI–3039 .......... Delta Fuels of Michigan ............... 40600 Grand River ...................... Novi ......................................... MI .... 48375T–38–MI–3029 .......... Sun Owosso ................................. 4004 West Main Rd ..................... Owosso ................................... MI .... 48867T–38–MI–3005 .......... Amoco Oil River Rouge ............... 205 Marion Street ........................ River Rouge ............................ MI .... 48218T–38–MI–3034 .......... Total Petroleum Romulus ............ 28001 Citrin Drive ........................ Romulus .................................. MI .... 48174T–38–MI–3037 .......... Uno Ven Romulus ........................ 29120 Wick Road ........................ Romulus .................................. MI .... 48174T–38–MI–3006 .......... Amoco Oil Taylor ......................... 8625 South Inkster Rd. ................ Taylor ...................................... MI .... 48180T–38–MI–3007 .......... B P Oil Taylor .............................. 24801 Ecorse Rd ......................... Taylor ...................................... MI .... 48180T–38–MI–3012 .......... Cousins Petroleum Taylor ........... 7965 Holland ................................ Taylor ...................................... MI .... 48180T–38–MI–3014 .......... Koch Taylor .................................. 2450 Ecorse Rd ........................... Taylor ...................................... MI .... 48180T–38–MI–3042 .......... Ashland Detroit ............................ 22970 Ecorse Road ..................... Taylor ...................................... MI .... 48180T–38–MI–3044 .......... Clark Rfg Taylor ........................... 8000 S Beech Daly Rd ................ Taylor ...................................... MI .... 48180T–38–MI–3035 .......... Total Petroleum Traverse City ..... 13544 West Bay Shore Dr ........... Traverse City ........................... MI .... 49684T–38–MI–3024 .......... Mobil Oil Woodhaven ................... 20089 West Road ........................ Woodhaven ............................. MI .... 48183T–41–MN–3412 ......... Williams Pipe Line Alexandria ..... 709 3rd Ave W ............................. Alexandria ............................... MN .. 56308T–41–MN–3410 ......... Duluth Petroleum Products .......... 5746 Old Hwy 61 ......................... Esko ........................................ MN .. 55733T–41–MN–3416 ......... Williams Pipe Line Rochester ...... 1331 Hwy 42 Southeast .............. Eyota ....................................... MN .. 55934T–41–MN–3413 ......... Williams Pipe Line Mankato ........ Rural Route Nine ......................... Mankato .................................. MN .. 56001T–41–MN–3414 ......... Williams Pipe Line Marshall ......... Route Four ................................... Marshall ................................... MN .. 56258T–41–MN–3400 ......... Amoco Oil Moorhead ................... 1101 Southeast Main ................... Moorhead ................................ MN .. 56560T–41–MN–3406 ......... Erickson Petroleum Barge ........... 50 21st St ..................................... Newport ................................... MN .. 55055T–41–MN–3403 ......... Amoco Oil Twin Cities ................. 2288 West County Road C .......... Roseville .................................. MN .. 55113T–41–MN–3415 ......... Williams Pipe Line Roseville ........ 2451 W County Rd C .................. Roseville .................................. MN .. 55713T–41–MN–3401 ......... Amoco Oil Sauk Centre ............... 1 Mile W on County Rd 52 .......... Sauk Centre ............................ MN .. 56378T–41–MN–3402 ......... Amoco Oil Spring Valley .............. 2 Miles East of U S 16 ................ Spring Valley ........................... MN .. 55975T–41–MN–3407 ......... Koch Pine Bend ........................... Junction Highways 52 & 55 ......... St Paul .................................... MN .. 55164T–41–MN–3408 ......... Koch St Paul ................................ 778 Otto Avenue .......................... St Paul .................................... MN .. 55102T–41–MN–3409 ......... Mobil Oil St Paul .......................... 852 Hathaway .............................. St Paul .................................... MN .. 55102T–41–MN–3411 ......... UNO-VEN St Paul ........................ 747 Shepard Road ....................... St Paul .................................... MN .. 55102T–41–MN–3404 ......... Ashland Refinery St Paul ............. 100 West Third Street .................. St Paul Park ............................ MN .. 55071T–41–MN–3405 ......... Conoco Wrenshall ........................ 10 Broadway Street ..................... Wrenshall ................................ MN .. 55797T–43–MO–3700 ......... Conoco Belle ................................ HCR 3 .......................................... Belle ........................................ MO .. 65013T–43–MO–3718 ......... Williams Pipeline Springfield ........ Junction MM Rd & Hwy 60 .......... Brookline ................................. MO .. 65619T–43–MO–3703 ......... Ayers Oil Canton .......................... Fourth & Grant ............................. Canton ..................................... MO .. 63435T–43–MO–3704 ......... ITAPCO Missouri ......................... 1400 S Giboney ........................... Cape Girardeau ...................... MO .. 63701T–43–MO–3706 ......... Sinclair Pipeline Carrollton ........... S Main & 24 Business Route ...... Carrollton ................................. MO .. 64633T–43–MO–3708 ......... Williams Pipeline Columbia ......... Rural Route 1 Hwy 63 South ....... Columbia ................................. MO .. 65201T–43–MO–3702 ......... Texon Terminals Corp ................. PO Box 637 ................................. Dexter ...................................... MO .. 63841



[July 1, 1995]


T–43–MO–3707 ......... Williams Pipeline Carthage .......... 2 mi South of Jasper on US 71 ... Jasper ..................................... MO .. 64755T–43–MO–3709 ......... Phillips 66 Jefferson City ............. 2116 Idlewood .............................. Jefferson City .......................... MO .. 65109T–43–MO–3711 ......... Kerr-McGee LaGrange ................ 905 North Main Street ................. LaGrange ................................ MO .. 63448T–43–MO–3712 ......... Sinclair Pipeline Mexico ............... Highway 54 East .......................... Mexico ..................................... MO .. 65265T–43–MO–3713 ......... Conoco Mount Vernon ................. US 66 New Highway 96 .............. Mount Vernon ......................... MO .. 65712T–43–MO–3715 ......... Sinclair Pipeline New Madrid ....... 211 Water Street .......................... New Madrid ............................. MO .. 63869T–43–MO–3716 ......... Williams Pipeline Palmyra ........... 6 mi North on Highway 61 ........... Palmyra ................................... MO .. 63461T–43–MO–3710 ......... Conoco Kansas City .................... 6699 NW Riverpark Drive ............ Parkville ................................... MO .. 64152T–43–MO–3705 ......... TEPPCO Cape Girardeau ........... Rural Route 2 ............................... Scott City ................................. MO .. 63780T–43–MO–3717 ......... Kerr-McGee St Louis ................... 4000 Koch Road .......................... St Louis ................................... MO .. 63129T–43–MO–3725 ......... Shell Oil St Louis ......................... 239 East Prairie ........................... St Louis ................................... MO .. 63147T–43–MO–3726 ......... Clark Rfg St Louis ........................ 4070 South First Street ................ St Louis ................................... MO .. 63118T–43–MO–3701 ......... JD Street St Louis ........................ 3800 S 1st St ............................... St Louis ................................... MO .. 63118T–43–MO–3719 ......... JD Street River Plant ................... 1 River Road ................................ St Louis ................................... MO .. 63125T–43–MO–3721 ......... Williams Pipeline St Charles ........ 4695 South Service Road ............ St Peter ................................... MO .. 63376T–43–MO–3720 ......... Amoco Oil Sugar Creek ............... 1000 North Sterling ...................... Sugar Creek ............................ MO .. 64054T–64–MS–2400 ......... Munro Petroleum Biloxi ................ 540 Bayview Avenue ................... Biloxi ........................................ MS .. 39533T–64–MS–2401 ......... Chevron USA Collins ................... Old Highway 49 South ................. Collins ..................................... MS .. 39428T–64–MS–2402 ......... Exxon USA Collins ....................... Old US 49 & Kola Road .............. Collins ..................................... MS .. 39428T–64–MS–2403 ......... B P Oil Collins .............................. Fir Avenue South ......................... Collins ..................................... MS .. 39428T–64–MS–2404 ......... Shell Oil Collins ............................ 49So & Kola RD .......................... Collins ..................................... MS .. 39428T–64–MS–2405 ......... Louis Dreyfus Collins ................... Fir Avenue South ......................... Collins ..................................... MS .. 39428T–64–MS–2406 ......... Greenville Republic Terminal ....... 310 Walthall Street ...................... Greenville ................................ MS .. 38701T–64–MS–2408 ......... ITAPCO Greenville ...................... 208 Short Clay Street .................. Greenville ................................ MS .. 38701T–64–MS–2409 ......... Southland Oil Lumberton ............. 5 Mi North of Lumberton Hwy 11 Lumberton ............................... MS .. 39455T–64–MS–2410 ......... Amoco Oil Meridan ...................... 181 65th Avenue .......................... Meridian .................................. MS .. 39307T–64–MS–2411 ......... Chevron USA Meridian ................ 101 65th Avenue .......................... Meridian .................................. MS .. 39301T–64–MS–2412 ......... CITGO Meridian ........................... 180 65th Avenue .......................... Meridian .................................. MS .. 39305T–64–MS–2413 ......... B P Oil Meridian ........................... 1401 65th Ave S .......................... Meridian .................................. MS .. 39307T–64–MS–2414 ......... Star Enterprise Meridian .............. 6540 N Frontage Rd .................... Meridian .................................. MS .. 39301T–64–MS–2415 ......... Louis Dreyfus Meridian ................ 1401 65th Ave S .......................... Meridian .................................. MS .. 39307T–64–MS–2416 ......... Chevron USA Pascagoua ............ Industrial Road State Hwy 611 .... Pascagoula ............................. MS .. 39568T–64–MS–2417 ......... Amerada Hess Purvis .................. US Hwy 11 ................................... Purvis ...................................... MS .. 39475T–64–MS–2418 ......... Southland Oil Sandersville ........... 2 mi N on Hwy 11 PO Drawer A . Sandersville ............................. MS .. 39477T–64–MS–2419 ......... CITGO Vicksburg ......................... 1585 Haining Rd .......................... Vicksburg ................................ MS .. 39180T–64–MS–2407 ......... Barrett Refining Vicksburg ........... 2222 Warrenton RD ..................... Vicksburg ................................ MS .. 39182T–81–MT–4000 ......... Conoco Billings ............................ 23rd & Fourth Ave South ............. Billings ..................................... MT ... 59107T–81–MT–4007 ......... Exxon USA Billings ...................... Lockwood Frontage Rd ................ Billings ..................................... MT ... 59107T–81–MT–4001 ......... Conoco Bozeman ........................ 316 West Griffin Drive ................. Bozeman ................................. MT ... 59715T–81–MT–4008 ......... Exxon USA Bozeman .................. 220 West Griffin Drive ................. Bozeman ................................. MT ... 59715T–81–MT–4006 ......... CENEX Glendive ......................... P O Box 240 ................................ Glendive .................................. MT ... 59330T–81–MT–4002 ......... Conoco Great Falls ...................... 1401 52nd North .......................... Great Falls .............................. MT ... 59405T–81–MT–4011 ......... Montana Refining Great Falls ...... 1900 10th Street .......................... Great Falls .............................. MT ... 59403T–81–MT–4003 ......... Conoco Helena ............................ 3180 Highway 12 East ................. Helena ..................................... MT ... 59601T–81–MT–4009 ......... Exxon USA Helena ...................... 3120 Highway 12 Eaast ............... Helena ..................................... MT ... 59601T–81–MT–4005 ......... CENEX Laurel .............................. P O Box 909 ................................ Laurel ...................................... MT ... 59044T–81–MT–4004 ......... Conoco Missoula ......................... 3330 Raser Drive ......................... Missoula .................................. MT ... 59802T–81–MT–4010 ......... Exxon USA Missoula ................... 3350 Raser Drive ......................... Missoula .................................. MT ... 59801T–56–NC–2027 ......... Star Enterprise Raleigh ................ 2232 Ten-Ten Road ..................... Apex ........................................ NC ... 27502T–56–NC–2000 ......... Exxon USA Charlotte ................... 6801 Freedom Drive .................... Charlotte .................................. NC ... 28208T–56–NC–2001 ......... CITGO Charlotte .......................... 7600 Mount Holly Road ............... Charlotte .................................. NC ... 28214T–56–NC–2003 ......... Crown Central Charlotte .............. 7720 Mount Holly Road ............... Charlotte .................................. NC ... 28214T–56–NC–2005 ......... Shell Oil Charlotte ........................ 6851 Freedom Drive .................... Charlotte .................................. NC ... 28214T–56–NC–2006 ......... Conoco Facilities Charlotte .......... 7145 Mount Holly Road ............... Charlotte .................................. NC ... 28214T–56–NC–2007 ......... Star Enterprise Charlotte ............. 410 Tom Sadler Road ................. Charlotte .................................. NC ... 28130T–56–NC–2026 ......... Phibro Energy Inc Paw Creek ..... 7325 Old Mount Holly Road ........ Charlotte .................................. NC ... 28214T–56–NC–2009 ......... Star Enterprise Fayetteville .......... 992 Shaw Mill Road ..................... Fayetteville .............................. NC ... 28303T–56–NC–2011 ......... Amoco Oil Greensboro ................ 7109 West Market Street ............. Friendship ............................... NC ... 27410T–56–NC–2014 ......... Exxon USA Greensboro .............. 6907 West Market Street ............. Greensboro ............................. NC ... 27409T–56–NC–2010 ......... Amerada Hess Greensboro ......... 6907B West Market Street .......... Greensboro ............................. NC ... 27419T–56–NC–2012 ......... Ashland Greensboro .................... 6311 Burnt Poplar Road .............. Greensboro ............................. NC ... 27409T–56–NC–2017 ......... B P Oil Greensboro ..................... 6801 West Market Street ............. Greensboro ............................. NC ... 27409T–56–NC–2020 ......... Southern Facilities Greensboro ... 115 Chimney Rock Road ............. Greensboro ............................. NC ... 27409T–56–NC–2021 ......... Star Enterprise Greensboro ......... 101 S Chimney Rock Rd ............. Greensboro ............................. NC ... 27419T–56–NC–2022 ......... Louis Dreyfus Greensboro ........... 6801 West Market Street ............. Greensboro ............................. NC ... 27409T–56–NC–2015 ......... Triad Terminal .............................. 6376 Burnt Poplar Rd .................. Greensboro ............................. NC ... 27409T–56–NC–2002 ......... Marathon Oil Charlotte ................. 8035 Mt Holly Rd ......................... Paw Creek .............................. NC ... 28130T–56–NC–2004 ......... Phillips 66 Charlotte ..................... 502 Tom Sadler Road ................. Paw Creek .............................. NC ... 28130T–56–NC–2008 ......... Louis Dreyfus Charlotte ............... 7401 Old Mount Holly Road ........ Paw Creek .............................. NC ... 28214T–56–NC–2023 ......... Amerada Hess Paw Creek .......... 7615 Old Mount Holly Road ........ Paw Creek .............................. NC ... 28130



[July 1, 1995]


T–56–NC–2024 ......... Amoco Oil Paw Creek ................. 7924 Mt Holly Rd ......................... Paw Creek .............................. NC ... 28130T–56–NC–2028 ......... Amerada Hess Selma .................. West State Road 1929 ................ Selma ...................................... NC ... 27576T–56–NC–2029 ......... B P Oil Selma .............................. Buffalo Road ................................ Selma ...................................... NC ... 27576T–56–NC–2030 ......... CITGO Selma .............................. State Hwy 1003 and Oak St Ext . Selma ...................................... NC ... 27576T–56–NC–2031 ......... Exxon USA Selma ....................... 2555 West Oak Street ................. Selma ...................................... NC ... 27576T–56–NC–2033 ......... Phibro Energy Inc Selma ............. 4383 Buffaloe Road ..................... Selma ...................................... NC ... 27576T–56–NC–2034 ......... Phillips Petro Selma ..................... 4086 Buffalo Road ....................... Selma ...................................... NC ... 27576T–56–NC–2036 ......... Southern Facilities Selma ............ 4414 Buffalow Road .................... Selma ...................................... NC ... 27576T–56–NC–2018 ......... Triad Terminal Selma .................. 2200 Oil Terminal Rd ................... Selma ...................................... NC ... 27576T–56–NC–2025 ......... Crown Central Selma ................... 2999 W Oak St ............................ Selma ...................................... NC ... 27576T–56–NC–2037 ......... Amerada Hess Wilmington .......... 1312 S Front Street ..................... Wilmington .............................. NC ... 28401T–56–NC–2039 ......... CTI of North Carolina Inc ............. 1002 S Front Street ..................... Wilmington .............................. NC ... 28402T–56–NC–2041 ......... Koch Refining N Wilmington ........ 3325 River Road .......................... Wilmington .............................. NC ... 28412T–56–NC–2042 ......... Koch Refining S Wilmington ........ 3334 River Rd .............................. Wilmington .............................. NC ... 28412T–56–NC–2043 ......... Petroleum Fuel Wilmington .......... 3314 River Road .......................... Wilmington .............................. NC ... 28403T–45–ND–3500 ......... Williams Pipeline Grand Forks .... 3930 Gateway Drive .................... Grand Forks ............................ ND ... 58203T–45–ND–3502 ......... Amoco Oil Jamestown ................. 10 Mi West on I–94 Stand Spur .. Jamestown .............................. ND ... 58401T–45–ND–3503 ......... Kaneb Pipe Line Jamestown ....... 3790 Hwy 281 SE ........................ Jamestown .............................. ND ... 58401T–45–ND–3505 ......... Amoco Oil Mandan ...................... ...................................................... Mandan ................................... ND ... 58554T–45–ND–3504 ......... CENEX Minot ............................... 700 Second Street SW ................ Minot ....................................... ND ... 58701T–45–ND–3501 ......... Williams Pipe Line Fargo ............. 902 Main Avenue East ................ West Fargo ............................. ND ... 58078T–47–NE–3600 ......... Kaneb Pipe Line Columbus ......... Highway 30 .................................. Columbus ................................ NE ... 68601T–47–NE–3602 ......... Williams Pipe Line Doniphan ....... 12275 South U S Hwy 281 .......... Doniphan ................................. NE ... 68832T–47–NE–3601 ......... Kaneb Pipe Line Geneva ............. U S Highway 81 ........................... Geneva .................................... NE ... 68361T–47–NE–3606 ......... Kaneb Pipe Line Norfolk .............. Highway 81 .................................. Norfolk ..................................... NE ... 68701T–47–NE–3607 ......... Kaneb Pipe Line North Platt ........ Rural Route Four ......................... North Platte ............................. NE ... 69101T–47–NE–3608 ......... Williams Pipe Line Omaha .......... Seventh & Yates Street ............... Omaha .................................... NE ... 68103T–47–NE–3610 ......... Kaneb Pipe Line Osceola ............ Rural Route 1 ............................... Osceola ................................... NE ... 68651T–47–NE–3603 ......... Conoco Lincoln Products ............. Route 1 ........................................ Roca ........................................ NE ... 68430T–47–NE–3605 ......... Williams Pipe Line Lincoln ........... 2000 Saltillo Road ........................ Roca ........................................ NE ... 68430T–47–NE–3609 ......... Conoco Pipeline Sidney ............... Rural Route 1 ............................... Sidney ..................................... NE ... 69162T–47–NE–3611 ......... Kaneb Pipe Line Superior ............ Rural Route 1 ............................... Superior ................................... NE ... 68978T–02–NH–1050 ......... Sprague Energy Newington ......... Spaulding Turnpike ...................... Newington ............................... NH ... .........T–02–NH–1054 ......... Sprague Energy Portsmouth ....... Adjacent to Interstate 95 .............. Portsmouth .............................. NH ... 3801T–02–NH–1056 ......... Northeast Petroleum Portsmouth 50 Preble Way ............................. Portsmouth .............................. NH ... 3801T–22–NJ–1500 .......... Amerada Hess Bayonne .............. Lower Hook Road ........................ Bayonne .................................. NJ ... 7002T–22–NJ–1501 .......... Coastal Oil Bayonne .................... Foot of East Fifth Street .............. Bayonne .................................. NJ ... 7002T–22–NJ–1505 .......... Amerada Hess Bogota ................. 238 West Fort Lee Road ............. Bogota ..................................... NJ ... 7503T–22–NJ–1506 .......... Amoco Oil Carteret Terminal ....... 760 Roosevelt Avenue ................. Carteret ................................... NJ ... 7008T–22–NJ–1508 .......... Amerada Hess Edgewater ........... 615 River Road ............................ Edgewater ............................... NJ ... 7020T–22–NJ–1509 .......... Crown Central Elizabeth .............. 450 South Front Street ................ Elizabeth ................................. NJ ... 7202T–22–NJ–1511 .......... Koch Fuels Gloucester City ......... Across Delaware River from PA .. Gloucester City ....................... NJ ... 8030T–22–NJ–1512 .......... B P Oil Linden .............................. Foot of Southwood Ave ............... Linden ..................................... NJ ... 7036T–22–NJ–1513 .......... CITGO Linden .............................. 4801 South Wood Avenue ........... Linden ..................................... NJ ... 7036T–22–NJ–1514 .......... Bayway Refining Co .................... 1100 US Highway One ................ Linden ..................................... NJ ... 7036T–22–NJ–1515 .......... Gulf Oil Linden ............................. 2600 Marshes Deer Road ........... Linden ..................................... NJ ... 7036T–22–NJ–1516 .......... Mobil Oil Linden ........................... South Wood Avenue .................... Linden ..................................... NJ ... 7036T–22–NJ–1518 .......... Amerada Hess Newark Doremus 148–182 Doremus Avenue .......... Newark .................................... NJ ... 7105T–22–NJ–1520 .......... Getty Terminal Newark ................ 86 Doremus Rd ............................ Newark .................................... NJ ... 7105T–22–NJ–1521 .......... Star Enterprise Newark ................ 909 Delaney Street ...................... Newark .................................... NJ ... 7105T–22–NJ–1522 .......... Stratus Petroleum Newark ........... 678 Doremus Ave ........................ Newark .................................... NJ ... 7105T–22–NJ–1523 .......... Sun Newark ................................. 436 Doremus Avenue .................. Newark .................................... NJ ... 7105T–22–NJ–1502 .......... Amerada Hess Newark Delanny . 1111 Delanny St .......................... Newark .................................... NJ ... 7105T–22–NJ–1524 .......... B P Oil Paulsboro ........................ 303 Mantua Avenue ..................... Paulsboro ................................ NJ ... 8066T–22–NJ–1525 .......... GATX Terminals Paulsboro ......... 3rd St & Billingsport Road ........... Paulsboro ................................ NJ ... 8066T–22–NJ–1526 .......... Mobil Oil Paulsboro ...................... North Delaware Street ................. Paulsboro ................................ NJ ... 8066T–22–NJ–1528 .......... Amerada Hess Pennsauken ........ One Derousse Avenue ................ Pennsauken ............................ NJ ... 8110T–22–NJ–1529 .......... Star Enterprise Pennsauken ........ Foot of Cove Road ...................... Pennsauken ............................ NJ ... 8110T–22–NJ–1533 .......... CITGO Petty’s Island ................... Route 36 & Delaware River ......... Pennsauken ............................ NJ ... 8110T–22–NJ–1530 .......... Amerada Hess Perth Amboy ....... State Street .................................. Perth Amboy ........................... NJ ... 8861T–22–NJ–1531 .......... Chevron USA Perth Amboy ......... 1200 State Street ......................... Perth Amboy ........................... NJ ... 8861T–22–NJ–1545 .......... Amerada Hess Woodbridge ......... Smith Street & Convery Blvd ....... Perth Amboy ........................... NJ ... 8861T–22–NJ–1534 .......... Sun Piscataway ........................... 1028 Stelton Road ....................... Piscataway .............................. NJ ... 8854T–22–NJ–1519 .......... B P Oil Newark ............................ Building 350 Coastel St ............... Port Newark ............................ NJ ... 7114T–22–NJ–1535 .......... Amerada Hess Port Reading ....... Cliff Road ..................................... Port Reading ........................... NJ ... 7064T–22–NJ–1536 .......... Amerada Hess Secaucus ............ 35 Meadowlands Parkway ........... Secaucus ................................ NJ ... 7094T–22–NJ–1537 .......... Royal Petroleum Sewaren ........... 115 State Street ........................... Sewaren .................................. NJ ... 7077T–22–NJ–1538 .......... Shell Oil Sewaren ........................ 111 State Street ........................... Sewaren .................................. NJ ... 7077



[July 1, 1995]


T–22–NJ–1544 .......... Coastal Eagle Point Westville ...... U S Route 130 ............................. South Westville ....................... NJ.T–22–NJ–1540 .......... Gulf Oil Thorofare ........................ 358 Kings Highway ...................... Thorofare ................................. NJ ... 8086T–22–NJ–1542 .......... Mobil Oil Trenton ......................... 2785 Lamberton Road ................. Trenton .................................... NJ ... 8611T–85–NM–4259 ......... S T Services Alamogordo ............ Highway 54 South of Town ......... Alamogordo ............................. NM .. 88310T–85–NM–4251 ......... Chevron USA Albuquerque ......... 3200 Broadway SE within city ..... Albuquerque ............................ NM .. 87105T–85–NM–4252 ......... Conoco Albuquerque ................... 4036 Broadway Southeast ........... Albuquerque ............................ NM .. 87105T–85–NM–4253 ......... Diamond Albuquerque ................. ...................................................... Route Nine 6348 Street 30 Al-

buquerque.NM .. 87105

T–85–NM–4254 ......... Phillips 66 Albuquerque ............... 6356 State Road 47 S W ............ Albuquerque ............................ NM .. 87105T–85–NM–4255 ......... Texaco Albuquerque .................... 3209 Broadway Southeast ........... Albuquerque ............................ NM .. 87103T–85–NM–4256 ......... Navajo Refining Artesia ............... US Highway 82 ............................ Artesia ..................................... NM .. 88210T–85–NM–4257 ......... Bloomfield Refining ...................... # 89 Road 4990 ........................... Bloomfield ............................... NM .. 87413T–85–NM–4258 ......... Giant Refining Ciniza ................... I–40 17 mi east of Gallup ............ Gallup ...................................... NM .. 87301T–85–NM–4260 ......... Diamond Tucumcari ..................... 3 Mi East on Hwy 54 ................... Tucumcari ............................... NM .. 88401T–88–NV–4350 ......... Calnev Pipe Line Las Vegas ....... 5049 N Sloan ............................... Las Vegas ............................... NV ... 89114T–88–NV–4359 ......... Rebel Oil Las Vegas .................... 1900 West Sahara ....................... Las Vegas ............................... NV ... 89102T–88–NV–4351 ......... Texaco Las Vegas ....................... North Las Vegas .......................... North Las Vegas ..................... NV ... 89030T–88–NV–4353 ......... SFPP LP Sparks .......................... 301 Nugget Avenue ..................... Sparks ..................................... NV ... 89431T–88–NV–4354 ......... Time Oil Sparks ........................... 525 B Street ................................. Sparks ..................................... NV ... 89431T–88–NV–4358 ......... Chevron USA Sparks ................... 275 Nugget Ave ........................... Sparks ..................................... NV ... 89431T–88–NV–4360 ......... Berry Hinckley Terminal ............... 147 South Stanford Way ............. Sparks ..................................... NV ... 89431T–14–NY–1400 ......... Agway Energy Products .............. 184 Port Rd .................................. Albany ..................................... NY ... 12202T–14–NY–1401 ......... Cibro Petroleum Prod Albany ...... Port of Albany .............................. Albany ..................................... NY ... 12202T–14–NY–1403 ......... Mobil Oil Albany ........................... 50 Church Street .......................... Albany ..................................... NY ... 12202T–16–NY–1450 ......... Stratus Petro Baldwinsville .......... Hillside Ave off Route 370 ........... Baldwinsville ............................ NY ... 13088T–16–NY–1456 ......... Agway Petroleum Corp

Brewerton.Rt 37 River Road ......................... Brewerton ................................ NY ... 13029

T–13–NY–1351 ......... Amerada Hess Bronx ................... 1392 Commerce Ave ................... Bronx ....................................... NY ... 10461T–13–NY–1352 ......... Castle Port Morris Term Bronx .... 290 Locust Avenue ...................... Bronx ....................................... NY ... 10454T–13–NY–1353 ......... Cibro Terminals Inc Bronx ........... 1040 East 149th Street ................ Bronx ....................................... NY ... 10455T–13–NY–1354 ......... Getty Terminal Bronx ................... 4301 Boston Post Road ............... Bronx ....................................... NY ... 10466T–11–NY–1308 ......... Amerada Hess Brooklyn .............. 722 Court Street .......................... Brooklyn .................................. NY ... 11231T–11–NY–1301 ......... Amoco Oil Brooklyn ..................... 125 Apollo Street ......................... Brooklyn .................................. NY ... 11222T–11–NY–1302 ......... Metro Terminals Brooklyn ............ 498 Kingsland Avenue ................. Brooklyn .................................. NY ... 11222T–11–NY–1304 ......... Shell Oil Brooklyn ........................ 25 Paidge Street .......................... Brooklyn .................................. NY ... 11222T–11–NY–1313 ......... Star Enterprise Brooklyn .............. One North 12th Street ................. Brooklyn .................................. NY ... 11211T–16–NY–1458 ......... Mobil Oil Buffalo ........................... One Babcock Street ..................... Buffalo ..................................... NY ... 14210T–11–NY–1460 ......... Mobil Oil Cold Spring Harbor ....... 95 Shore Road ............................. Cold Spring ............................. NY ... 11724T–11–NY–1319 ......... Tosco Pipeline East Setauket ...... 19 Bell Meade Road .................... East Setauket .......................... NY ... 11733T–11–NY–1306 ......... Coastal Oil Flushing ..................... 31–70 College Point Blvd ............ Flushing ................................... NY ... 11354T–16–NY–1462 ......... Agway Petroleum Corp Geneva .. West River Road .......................... Geneva .................................... NY ... 14456T–14–NY–1402 ......... CITGO Albany .............................. 495 River Road ............................ Glenmont ................................. NY ... 12077T–14–NY–1405 ......... Sears Petroleum Glenmont ......... Route 144 552 River Road .......... Glenmont ................................. NY ... 12077T–11–NY–1309 ......... Mobil Oil Glenwood Landing ........ Shore & Glenwood Rd ................. Glenwood Landing .................. NY ... 11547T–14–NY–1406 ......... Stratus Petroleum Green Isle ...... Center Island ................................ Green Island ........................... NY ... 12181T–11–NY–1307 ......... Castle Astoria ............................... 500 Mamaroneck Avenue ............ Harrison ................................... NY ... 10528T–11–NY–1310 ......... Tosco Pipeline Holtsville .............. 586 Union Ave ............................. Holtsville .................................. NY ... 11742T–11–NY–1305 ......... Mobil Oil Inwood .......................... 464 Doughty Blvd ........................ Inwood ..................................... NY ... 11696T–11–NY–1320 ......... Shell Oil Inwood ........................... 20 Rogers Ave ............................. Inwood ..................................... NY ... 11696T–11–NY–1312 ......... Star Enterprise Inwood ................ Rockawaw Blvd & East St ........... Inwood ..................................... NY ... 11696T–16–NY–1455 ......... Sun Binghamton .......................... 4324 Watson Boulevard .............. Johnson City ........................... NY ... 13790T–11–NY–1311 ......... Getty Terminal Long Island ......... 30–23 Greenpoint Avenue ........... Long Island City ...................... NY ... 11101T–16–NY–1463 ......... Agway Petroleum Corp Marcy ..... Rd # 2 Riverside Drive ................. Marcy ...................................... NY ... 13403T–16–NY–1464 ......... Amerada Hess Marcy .................. Riverside Drive ............................. Marcy ...................................... NY ... 13403T–16–NY–1465 ......... Bray Terminals Marcy .................. River Road ................................... Marcy ...................................... NY ... 13403T–16–NY–1487 ......... Sears Oil Utica ............................. Route 49 ...................................... Marcy ...................................... NY ... 13403T–14–NY–1409 ......... Agway Petroleum Corp Milton ..... Sands Ave .................................... Milton ....................................... NY ... 12547T–13–NY–1356 ......... Amoco Oil Mount Vernon ............ 40 Canal St .................................. Mount Vernon ......................... NY ... 10550T–14–NY–1414 ......... Sun Newburgh ............................. 49 River Road .............................. New Windsor ........................... NY ... 12553T–14–NY–1411 ......... Coastal Oil Newburgh .................. Hudson River ............................... Newburgh ................................ NY ... 12551T–14–NY–1413 ......... Mobil Oil Newburgh ..................... 20 River Road .............................. Newburgh ................................ NY ... 12550T–14–NY–1421 ......... Amerada Hess Roseton ............... 590 River Road ............................ Newburgh ................................ NY ... 12250T–11–NY–1315 ......... RAD Operating Oceanside .......... 7 Hampton Road .......................... Oceanside ............................... NY ... 11572T–11–NY–1467 ......... Northville Industries Plainvie ........ Off Long Island Expressway ........ Plainview ................................. NY ... 11803T–11–NY–1303 ......... Tosco Pipeline Plainview ............. 150 Fairchild Avenue ................... Plainview ................................. NY ... 11803T–11–NY–1317 ......... Lewis Oil Port Washington .......... 65 Shore Road ............................. Port Washington ..................... NY ... 11050T–14–NY–1404 ......... Petroleum Fuel Albany ................ 54 Riverside Avenue .................... Rensselaer .............................. NY ... 12144T–14–NY–1415 ......... Amerada Hess Rensselaer .......... River Road E Greenbush ............ Rensselaer .............................. NY ... 12144T–14–NY–1416 ......... Bray Terminals Rensselaer ......... 50 Riverside Drive ....................... Rensselaer .............................. NY ... 12144T–14–NY–1417 ......... Sprague Energy Rensselaer ........ Riverside Avenue, PO Box 25 ..... Rensselaer .............................. NY ... 12144T–14–NY–1418 ......... Getty Terminal Rensselaer .......... 49 Riverside Avenue .................... Rensselaer .............................. NY ... 12144



[July 1, 1995]


T–14–NY–1419 ......... Gulf Oil Rensselaer ...................... 60 Riverside Avenue .................... Rensselaer .............................. NY ... 12144T–14–NY–1420 ......... Sun Rensselaer ........................... 58 Riverside Avenue .................... Rensselaer .............................. NY ... 12144T–11–NY–1318 ......... Tosco Riverhead .......................... 212 Sound Shore Road ............... Riverhead ................................ NY ... 11901T–16–NY–1468 ......... Agway Petroleum Rochester ....... 754 Brooks Ave ........................... Rochester ................................ NY ... 14619T–16–NY–1469 ......... Amerada Hess Rochester Lyell ... 1975 Lyell Avenue ....................... Rochester ................................ NY ... 14606T–16–NY–1472 ......... Mobil Oil Rochester ..................... 675 Brooks Avenue ..................... Rochester ................................ NY ... 14619T–16–NY–1473 ......... Sun Rochester ............................. 1840 Lyell Avenue ....................... Rochester ................................ NY ... 14606T–16–NY–1474 ......... United Refining Rochester ........... 1075 Chili Avenue ........................ Rochester ................................ NY ... 14624T–16–NY–1452 ......... Amerada Hess Rochester Cairn .. 22 Cairn Street ............................. Rochester ................................ NY ... 14611T–13–NY–1355 ......... Mobil Oil Port Mobil ..................... 4101 Arthur Kill Rd ...................... Staten Island ........................... NY ... 10309T–13–NY–1362 ......... GATX Staten Island ..................... 500 Western Ave ......................... Staten Island ........................... NY ... 10302T–16–NY–1476 ......... Amerada Hess Syracuse ............. 420 West Hiawatha Boulevard .... Syracuse ................................. NY ... 13204T–16–NY–1478 ......... CITGO Syracuse .......................... 545 Solar Street ........................... Syracuse ................................. NY ... 13204T–16–NY–1479 ......... Coastal Oil Syracuse ................... 475 Solar Street ........................... Syracuse ................................. NY ... 13204T–16–NY–1480 ......... Mobil Oil Syracuse ....................... 502 Solar Street ........................... Syracuse ................................. NY ... 13204T–16–NY–1482 ......... Sun Syracuse ............................... 540 Solar Street ........................... Syracuse ................................. NY ... 13204T–16–NY–1457 ......... United Refining Tonawanda ........ 4545 River Road .......................... Tonawanda ............................. NY ... 14150T–16–NY–1484 ......... Sun Tonawanda ........................... 3733 River Road .......................... Tonawanda ............................. NY ... 14150T–16–NY–1459 ......... Noco Energy Corp ....................... 700 Grand Island Blvd ................. Tonawanda ............................. NY ... 14151T–16–NY–1486 ......... Mobil Oil Utica .............................. 37 Wurz Avenue .......................... Utica ........................................ NY ... 13502T–16–NY–1453 ......... Coastal Oil Binghamton ............... 3121 Shippers Road .................... Vestal ...................................... NY ... 13851T–16–NY–1451 ......... Mobil Oil Binghamton ................... 3301 Old Vestal Rd ..................... Vestal ...................................... NY ... 13850T–16–NY–1488 ......... Agway Petroleum Vestal .............. Shippers Road ............................. Vestal ...................................... NY ... 13851T–16–NY–1489 ......... Amerada Hess Vestal .................. 440 Prentice Road ....................... Vestal ...................................... NY ... 13850T–16–NY–1454 ......... CITGO Vestal ............................... 3212 Old Vestal Road ................. Vestal ...................................... NY ... 13850T–13–NY–1363 ......... A Tarricone Yonkers .................... 91 Alexander St ........................... Yonkers ................................... NY ... 10701T–34–OH–3159 ......... Sun Akron .................................... 999 Home Avenue ....................... Akron ....................................... OH .. 44310T–31–OH–3120 ......... UNO-VEN Columbus ................... 6433 Cosgray Road ..................... Amlin ....................................... OH .. 43002T–34–OH–3142 ......... Aurora Terminal & Trans ............. 1519 S Chillicothe Rd .................. Aurora ..................................... OH .. 44202T–34–OH–3168 ......... Amoco Oil Aurora ........................ 1521 Chillicothe Rd ...................... Aurora ..................................... OH .. 44202T–34–OH–3166 ......... Marathon Bellevue ....................... Rural Route 4 ............................... Bellevue .................................. OH .. 44811T–34–OH–3151 ......... Marathon Brecksville .................... 10439 Brecksville Road ............... Brecksville ............................... OH .. 44141T–34–OH–3140 ......... Ashland Refinery Canton ............. 2408 Gamfrinus Rd SW ............... Canton ..................................... OH .. 44706T–34–OH–3143 ......... B P Oil Canton ............................. 807 Hartford Southeast ................ Canton ..................................... OH .. 44707T–31–OH–3100 ......... Ashland Cincinnati ....................... 4015 River Road .......................... Cincinnati ................................ OH .. 45204T–31–OH–3104 ......... B P Oil Cincinnati ......................... 930 Tennessee Avenue ............... Cincinnati ................................ OH .. 45229T–31–OH–3122 ......... Boswell Oil Company ................... 5 W 4th St Floor 2500 ................. Cincinnati ................................ OH .. 45202T–34–OH–3150 ......... Fleet Supplies .............................. 250 Mahoning Ave ....................... Cleveland ................................ OH .. 44101T–34–OH–3157 ......... Shell Oil Cleveland ...................... 2201 West Third Street ................ Cleveland ................................ OH .. 44113T–34–OH–3160 ......... Sun Cleveland .............................. 3200 Independence Road ........... Cleveland ................................ OH .. 44105T–34–OH–3163 ......... UNO-VEN Cleveland ................... 2985 Eggers Avenue ................... Cleveland ................................ OH .. 44105T–31–OH–3101 ......... Ashland Columbus ....................... 3855 Fisher Road ........................ Columbus ................................ OH .. 43228T–31–OH–3105 ......... B P Oil Columbus ........................ 303 North Wilson Road ............... Columbus ................................ OH .. 43204T–31–OH–3112 ......... Marathon Columbus ..................... 4125 Fisher Rd ............................ Columbus ................................ OH .. 43228T–31–OH–3114 ......... Shell Oil Distillate Columbus ....... 3651 Fisher Rd ............................ Columbus ................................ OH .. 43228T–31–OH–3116 ......... Sun Columbus ............................. 3499 West Broad Street .............. Columbus ................................ OH .. 43204T–31–OH–3107 ......... Clark Rfg Columbus ..................... 4033 Fisher Road ........................ Columbus ................................ OH .. 43228T–31–OH–3111 ......... Midwest Terminal Columbus ....... 3866 Fisher Rd ............................ Columbus ................................ OH .. 43228T–34–OH–3144 ......... B P Oil Cleveland ........................ 4850 E 49th Street ....................... Cuyahoga Hts ......................... OH .. 44125T–31–OH–3106 ......... B P Oil Dayton ............................. 621 Brandt Pike ........................... Dayton ..................................... OH .. 45404T–31–OH–3115 ......... Shell Oil Dayton ........................... 801 Brandt Pike ........................... Dayton ..................................... OH .. 45404T–31–OH–3117 ......... Sun Dayton .................................. 1708 Farr Drive ............................ Dayton ..................................... OH .. 45404T–31–OH–3121 ......... UNO-VEN Dayton ........................ 1800 Farr Drive ............................ Dayton ..................................... OH .. 45404T–34–OH–3141 ......... Ashland Findlay ........................... 709 Glessner ................................ Findlay ..................................... OH .. 45840T–34–OH–3145 ......... B P Oil Lorain .............................. 12545 S Avon Belden Rd ............ Grafton .................................... OH .. 44044T–31–OH–3102 ......... Ashland Heath ............................. 840 Heath Road ........................... Heath ....................................... OH .. 43056T–31–OH–3113 ......... Marathon Lebanon ....................... 999 West State Rt 122 ................ Lebanon .................................. OH .. 45036T–31–OH–3118 ......... TEPPCO Lebanon ....................... RT 122 2700 Hart Road .............. Lebanon .................................. OH .. 45036T–34–OH–3146 ......... B P Oil Lima ................................. 817 West Vine Street ................... Lima ........................................ OH .. 45804T–34–OH–3152 ......... Marathon Lima ............................. 2990 South Dixie Highway .......... Lima ........................................ OH .. 45804T–34–OH–3158 ......... Shell Oil Lima ............................... 1500 West Buckeye Road ........... Lima ........................................ OH .. 45804T–31–OH–3103 ......... Ashland Marietta .......................... Old Rt 7 & Moores Junction ........ Marietta ................................... OH .. 45750T–34–OH–3156 ......... Shell Oil Akron ............................. 246 N Cleveland .......................... Mogodore ................................ OH .. 44260T–34–OH–3167 ......... B P Oil Niles ................................ 1001 Youngstown Warren Rd ..... Niles ........................................ OH .. 41446T–34–OH–3153 ......... Marathon Oregon ......................... 4131 Seaman Road ..................... Oregon .................................... OH .. 43616T–34–OH–3165 ......... UNO-VEN Oregon ....................... 1840 Otter Creek Road ............... Oregon .................................... OH .. 43616T–31–OH–3108 ......... B P Oil Sciotoville ........................ 106 Harding Ave .......................... Portsmouth .............................. OH .. 45662T–34–OH–3154 ......... Marathon Stuebenville ................. 2B371 Kingsdale Road ................ Stuebenville ............................. OH .. 43952T–34–OH–3164 ......... UNO-VEN Tallmadge ................... 1595 Southeast Avenue .............. Tallmadge ............................... OH .. 44278T–34–OH–3147 ......... B P Oil Tiffin ................................. 197 Wall Street ............................ Tiffin ........................................ OH .. 44883T–34–OH–3148 ......... B P Oil Toledo ............................. 2450 Hill Avenue .......................... Toledo ..................................... OH .. 43607



[July 1, 1995]


T–34–OH–3161 ......... Sun Toledo ................................... 1601 Woodvalle Road ................. Toledo ..................................... OH .. 43605T–34–OH–3149 ......... Delta Fuels Toledo ....................... 1820 South Front ......................... Toledo ..................................... OH .. 43605T–34–OH–3169 ......... Clark Rfg Toledo .......................... 2844 Summit St ........................... Toledo ..................................... OH .. 43611T–34–OH–3155 ......... Marathon Youngstown ................. 1140 Bears Den Road ................. Youngstown ............................ OH .. 44511T–34–OH–3162 ......... Sun Youngstown .......................... 6331 Southern Boulevard ............ Youngstown ............................ OH .. 44512T–73–OK–2600 ......... Total Petroleum Ardmore ............. Hwy 142 Bypass .......................... Ardmore .................................. OK ... 73401T–73–OK–2613 ......... Williams Pipeline Co Okla City .... 251 N Sunny Lane ....................... Del City ................................... OK ... 73117T–73–OK–2604 ......... S T Services Drumright ............... Route One .................................... Drumright ................................ OK ... 74030T–73–OK–2606 ......... Williams Pipeline Enid ................. 1401 North 30th Street ................ Enid ......................................... OK ... 73701T–73–OK–2608 ......... Conoco Jenks .............................. Route Two .................................... Jenks ....................................... OK ... 74037T–73–OK–2609 ......... Phillips 66 Laverne ...................... U S 283 ........................................ Laverne ................................... OK ... 73848T–73–OK–2610 ......... Koch Fuels Medford ..................... US 81 ........................................... Medford ................................... OK ... 73759T–73–OK–2612 ......... Conoco Oklahoma City ................ NE Tenth St Rt 4 ......................... Oklahoma City ........................ OK ... 73111T–73–OK–2614 ......... Texaco Oklahoma City ................ 951 N Vickie ................................. Oklahoma City ........................ OK ... 73117T–73–OK–2616 ......... Williams Pipeline Oklahoma Cty .. 1250 South High Street ............... Oklahoma City ........................ OK ... 73129T–73–OK–2617 ......... Conoco Ponca City ...................... South Highway 60 ........................ Ponca City ............................... OK ... 74601T–73–OK–2618 ......... Sinclair Pipeline Shawnee ........... 2411 W MacArthur Road ............. Shawnee ................................. OK ... 74802T–73–OK–2619 ......... Barrett Refining Thomas Plant .... Rt 1 Box 101 ................................ Thomas ................................... OK ... 73669T–73–OK–2620 ......... Sinclair Pipeline Tulsa ................. 1307 West 35th Street ................. Tulsa ....................................... OK ... 74107T–73–OK–2621 ......... Sun Tulsa ..................................... 1700 South Union ........................ Tulsa ....................................... OK ... 74102T–73–OK–2622 ......... Williams Pipeline Tulsa ................ 2120 S 33rd Ave .......................... Tulsa ....................................... OK ... 74107T–73–OK–2623 ......... Diamond Shamrock Turpin .......... Hwy 64 & Junction Rt 2 ............... Turpin ...................................... OK ... 73950T–73–OK–2624 ......... Kerr-McGee Wynnewood ............. 906 South Powell ......................... Wynnewood ............................ OK ... 73098T–93–OR–4453 ......... UNOCAL Coos Bay ..................... 2640 North Bayshore ................... Coos Bay ................................ OR .. 97420T–93–OR–4454 ......... SFPP LP Eugene ......................... 1765 Prairie Road ........................ Eugene .................................... OR .. 97402T–93–OR–4451 ......... SFPP LP Albany .......................... 3651 Northeast Cosner Road ...... Millersburg ............................... OR .. 97321T–93–OR–4456 ......... Chevron USA Portland ................ 5531 Northwest Doane Street ..... Portland ................................... OR .. 97210T–93–OR–4457 ......... GATX Terminals Portland ............ 11400 NW St Helen’s Road ........ Portland ................................... OR .. 97283T–93–OR–4458 ......... McCall Oil Portland ...................... 5480 NW Front Ave ..................... Portland ................................... OR .. 97210T–93–OR–4459 ......... Mobil Portland .............................. 9420 Northwest St Helen’s Rd .... Portland ................................... OR .. 97231T–93–OR–4460 ......... Shell Oil Portland ......................... 5880 NW St Helen’s Road .......... Portland ................................... OR .. 97210T–93–OR–4461 ......... Texaco Portland ........................... 3800 Northwest St Helen’s Road Portland ................................... OR .. 97210T–93–OR–4462 ......... Time Oil Portland St Helens ........ 9100 NW St Helen’s Road .......... Portland ................................... OR .. 97231T–93–OR–4463 ......... Time Oil Portland Burgard ........... 12005 North Burgard Street ........ Portland ................................... OR .. 97203T–93–OR–4464 ......... UNOCAL Portland ........................ 5528 Northwest Doane ................ Portland ................................... OR .. 97210T–93–OR–4455 ......... ARCO Portland Terminal ............. 9930 NW St Helens Rd ............... Portland ................................... OR .. 97231T–93–OR–4452 ......... Tidewater Terminal Umatilla ........ 535 Port Avenue .......................... Umatilla ................................... OR .. 97882T–25–PA–1785 .......... Gulf Oil Altoona ............................ 6033 Sixth Avenue ....................... Altoona .................................... PA ... 16602T–23–PA–1700 .......... Agway Petroleum Corp Macungie Buckeye Road .............................. Allentown ................................. PA ... 18062T–23–PA–1701 .......... Mobil Oil Allentown ...................... 1134 North Quebec Street ........... Allentown ................................. PA ... 18103T–25–PA–1784 .......... Amoco Oil Altoona ....................... Sixth Avenue Rd Canan Station .. Altoona .................................... PA ... 16635T–25–PA–1788 .......... Sun Altoona ................................. Route 764 Sugar Run Road ........ Altoona .................................... PA ... 16601T–25–PA–1767 .......... Petroleum Products Eldorado ...... Burns Avenue .............................. Altoona .................................... PA ... 16602T–23–PA–1746 .......... Sun Twin Oaks ............................ 4041 Market Street ...................... Aston ....................................... PA ... 19014T–23–PA–1703 .......... Gulf Oil Avoca .............................. Box 403–A Suscon Rd ................ Avoca ...................................... PA ... 18641T–23–PA–1706 .......... Agway Petroleum Corp Du Pont . Rd 2 Box 399K Suscon Rd ......... Avoca ...................................... PA ... 18641T–23–PA–1707 .......... Petroleum Products Du Pont ....... Suscon Road ............................... Avoca ...................................... PA ... 18641T–25–PA–1790 .......... Guttman Oil Belle Vernon ............ 200 Speers Road ......................... Belle Vernon ........................... PA ... 15012T–23–PA–1705 .......... Petron Oil Chester ....................... One Ward Street .......................... Chester .................................... PA ... 19013T–25–PA–1792 .......... B P Oil Coraopolis ....................... Access State Route 51 ................ Coraopolis ............................... PA ... 15108T–25–PA–1760 .......... Buckeye Tank Term Coraopolis .. 520 Narrows Run Road ............... Coraopolis ............................... PA ... 15108T–25–PA–1780 .......... Star Enterprise Pittsburgh ............ Nine Thorn Street ........................ Coraopolis ............................... PA ... 15108T–25–PA–1761 .......... Sun Delmont ................................ Route 66 North ............................ Delmont ................................... PA ... 15626T–25–PA–1778 .......... Gulf Oil Pittsburgh/Delmont ......... Route 22 ...................................... Delmont ................................... PA ... 15626T–25–PA–1762 .......... Boswell Oil Co Dravosburg .......... 702 Washington Avenue .............. Dravosburg .............................. PA ... 15034T–25–PA–1764 .......... B P Oil Duncansville .................... Access US 220 ............................ Duncansville ............................ PA ... 16635T–25–PA–1765 .......... Agway Petroleum East Freedom . Old Rte US 220 ........................... East Freedom ......................... PA ... 16637T–23–PA–1720 .......... Sun Kingston ................................ 60 S Wyoming Avenue ................ Edwardsville ............................ PA ... 18704T–23–PA–1710 .......... Sun Exton .................................... 601 East Lincoln Hwy .................. Exton ....................................... PA ... 19341T–25–PA–1768 .......... Ashland Floreffe ........................... 204 Glass Glass House Road ..... Floreffe .................................... PA ... 15025T–23–PA–1718 .......... Mobil Oil Malvern ......................... 8 South Malin Rd ......................... Frazer ...................................... PA ... 19406T–25–PA–1769 .......... B P Oil Greensburg ..................... Rural Delivery 6 ........................... Greensburg ............................. PA ... 15601T–23–PA–1713 .......... Mobil Oil Harrisburg ..................... 5140 Paxton Street ...................... Harrisburg ............................... PA ... 17111T–23–PA–1714 .......... Petroleum Products Harrisburg ... 3300 Industrial Road .................... Harrisburg ............................... PA ... 17110T–23–PA–1751 .......... Sun Willow Grove ........................ 3290 Sunset Lane ........................ Hatboro ................................... PA ... 19040T–25–PA–1771 .......... American Refining Indianola ........ State Route 910 ........................... Indianola .................................. PA ... 15051T–23–PA–1719 .......... Amoco Oil Kingston ..................... 70 South Wyoming Avenue ......... Kingston .................................. PA ... 18704T–23–PA–1721 .......... Mobil Oil Lancaster ...................... 1360 Manheim Pike ..................... Lancaster ................................ PA ... 17604



[July 1, 1995]


T–23–PA–1702 .......... Star Enterprise Allentown ............ Buckeye Road .............................. Macungie ................................. PA ... 18062T–23–PA–1704 .......... Carlos R Leffler Inc Macungie ..... 5088 Shippers Lane ..................... Macungie ................................. PA ... 18062T–23–PA–1722 .......... Sun Malvern ................................. Lincoln Hwy & Malin Road .......... Malvern ................................... PA ... 19355T–23–PA–1723 .......... B P Oil Marcus Hook ................... 428 Post Rd ................................. Marcus Hook ........................... PA ... 19061T–23–PA–1712 .......... Amoco Oil Harrisburg .................. 5135 Simpson Ferry Road ........... Mechanicsburg ........................ PA ... 17055T–23–PA–1715 .......... Star Enterprise Harrisburg ........... RD #5 Texaco Drive .................... Mechanicsburg ........................ PA ... 17055T–23–PA–1724 .......... B P Oil Mechanicsburg ................ Sinclair Rd .................................... Mechanicsburg ........................ PA ... 17055T–23–PA–1725 .......... Gulf Oil Mechanicsburg ............... 5125 Simpson Ferry Rd ............... Mechanicsburg ........................ PA ... 17055T–23–PA–1726 .......... Sun Mechanicsburg ..................... 5145 Simpson Ferry Road ........... Mechanicsburg ........................ PA ... 17055T–23–PA–1716 .......... Petroleum Products Highspire ..... 900 Eisenhower Blvd ................... Middletown .............................. PA ... 17057T–23–PA–1709 .......... Montour Oil Service ..................... 112 Broad St ................................ Montoursville ........................... PA ... 17754T–23–PA–1754 .......... C R Leffler New Kingston ............ 236 Locust Pt Road ..................... New Kingston .......................... PA ... 17702T–23–PA–1728 .......... Petroleum Prod Northumberland . Rt 11 North RD 1 ......................... Northumberland ...................... PA ... 17857T–23–PA–1729 .......... Sun Northumberland .................... Rt 11 North Rd 1 ......................... Northumberland ...................... PA ... 17857T–23–PA–1737 .......... Maritank Phila Inc ........................ 67th & Schuylkill River ................. Philadalphia ............................. PA ... 19153T–23–PA–1730 .......... Amerada Hess Philadelphia ........ 1630 South 51st Street ................ Philadelphia ............................. PA ... 19143T–23–PA–1731 .......... Amoco Oil Philadelphia ................ 63rd & Passyunk Avenue ............ Philadelphia ............................. PA ... 19153T–23–PA–1732 .......... B P Oil Philadelphia ..................... G Street & Hunting ...................... Philadelphia ............................. PA ... 19124T–23–PA–1734 .......... Exxon USA Philadelphia .............. 6850 Essington Avenue ............... Philadelphia ............................. PA ... 19153T–23–PA–1736 .......... Sun Philadelphia .......................... 2700 W Passyunk Avenue .......... Philadelphia ............................. PA ... 19145T–25–PA–1791 .......... Sun Blawnox ................................ Freeport Road & Boyd Avenue ... Pittsburgh ................................ PA ... 15238T–25–PA–1775 .......... Amoco Oil Pittsburgh ................... East Carson Street ...................... Pittsburgh ................................ PA ... 15207T–25–PA–1776 .......... Exxon USA Pittsburgh ................. 2760 Neville Road ....................... Pittsburgh ................................ PA ... 15201T–25–PA–1777 .......... Gulf Oil Pittsburgh ........................ 400 Grand Ave ............................. Pittsburgh ................................ PA ... 15225T–25–PA–1779 .......... Pennzoil Products Pittsburgh ....... 54th Street and AVRR ................. Pittsburgh ................................ PA ... 15201T–25–PA–1781 .......... Sun Pittsburgh ............................. 5733 Butler Street ........................ Pittsburgh ................................ PA ... 15201T–23–PA–1745 .......... C R Leffler Tuckerton .................. 4030 Pottsville Pike ..................... Reading ................................... PA ... 19605T–25–PA–1782 .......... Pennzoil Products Rouseville ...... Two Main Street ........................... Rouseville ................................ PA ... 16344T–23–PA–1727 .......... Sun Montello ................................ Fritztown Road ............................. Sinking Spring ......................... PA ... 19608T–23–PA–1742 .......... B P Oil Sinking Spring ................. Mountain Home Rd ...................... Sinking Spring ......................... PA ... 19608T–23–PA–1708 .......... Carlos R Leffler Inc S Spring ....... Mountain Home Road .................. Sinking Spring ......................... PA ... 19608T–23–PA–1743 .......... Carlos R Leffler Inc ...................... Sylvan Dell Road ......................... South Williamsport .................. PA ... 17701T–23–PA–1717 .......... Coastal Oil New York Inc ............ Sylvan Dell Rd ............................. South Williamsport .................. PA ... 17701T–23–PA–1744 .......... Sun Tamaqua .............................. Tuscarora State Park Rd ............. Tamaqua ................................. PA ... 18252T–23–PA–1753 .......... Meenan Oil Co Tullytown ............ 113 Main Street ........................... Tullytown ................................. PA ... 19007T–25–PA–1789 .......... Sun Vanport ................................. Route 68 & Division Lane ............ Vanport .................................... PA ... 15009T–25–PA–1783 .......... United Refining Warren ............... 15 Bradley Street ......................... Warren .................................... PA ... 16365T–23–PA–1711 .......... Sun Whitehall ............................... 2480 Main St ................................ Whitehall ................................. PA ... 18052T–23–PA–1748 .......... Gulf Oil Whitehall ......................... 2451 Main Street ......................... Whitehall ................................. PA ... 18052T–23–PA–1749 .......... Gulf Oil Williamsport .................... Sylvan Dell Rd ............................. Williamsport ............................. PA ... 17703T–05–RI–1200 ........... Getty Terminal Providence .......... Dexter Rd & Massasoit Ave ........ East Providence ...................... RI .... 2914T–05–RI–1203 ........... Coastal Oil East Providence ........ 100 Dexter Road .......................... East Providence ...................... RI .... 2914T–05–RI–1207 ........... Mobil Oil East Providence ........... 1001 Wampanoag Trail ............... East Providence ...................... RI .... 2915T–05–RI–1201 ........... Sprague Energy Providence ........ 144 Allens Avenue ....................... Providence .............................. RI .... 2903T–05–RI–1202 ........... CITGO Petroleum Providence ..... 130 Terminal Road ...................... Providence .............................. RI .... 2905T–05–RI–1204 ........... Northeast Petroleum .................... 170 Allens Avenue ....................... Providence .............................. RI .... 2903T–05–RI–1205 ........... Star Enterprise Providence .......... 520 Allens Avenue ....................... Providence .............................. RI .... 2905T–05–RI–1206 ........... Sun Providence ............................ 35 Terminal Road ........................ Providence .............................. RI .... 2905T–57–SC–2050 ......... Amerada Hess Belton .................. Highway 20 North ........................ Belton ...................................... SC ... 29627T–57–SC–2053 ......... Marathon Oil Belton ..................... State Route 20 ............................. Belton ...................................... SC ... 29627T–57–SC–2051 ......... Louis Dreyfus Belton .................... Hwy 20 North ............................... Belton ...................................... SC ... 29627T–57–SC–2066 ......... Marathon North Charleston ......... 5165 Virginia Ave ......................... Charleston ............................... SC ... 29406T–57–SC–2059 ......... Amoco Oil North Augusta ............ Sweet Water Road ....................... North Augusta ......................... SC ... 29841T–57–SC–2060 ......... Charter Term Co North Augusta . 221 Laurel Lake Drive ................. North Augusta ......................... SC ... 29841T–57–SC–2061 ......... B P Oil North Augusta ................. Access Highway 36 ..................... North Augusta ......................... SC ... 29841T–57–SC–2062 ......... Phillips Pipeline N Augusta .......... Highway 36 & Sweetwater ........... North Augusta ......................... SC ... 29841T–57–SC–2063 ......... Southern Facilities N Augusta ..... 222 Sweetwater Road ................. North Augusta ......................... SC ... 29841T–57–SC–2064 ......... Amerada Hess N Charleston ....... 5150 Virginia Ave ......................... North Charleston ..................... SC ... 29406T–57–SC–2065 ......... Koch Refining N Charleston ........ 1003 East Montague .................... North Charleston ..................... SC ... 29406T–57–SC–2067 ......... Amerada Hess Spartanburg ........ Old Union Road ........................... Spartanburg ............................ SC ... 29304T–57–SC–2068 ......... Amoco Oil Spartanburg ............... Old Union Rd Route 4 ................. Spartanburg ............................ SC ... 29304T–57–SC–2069 ......... Ashland Spartanburg ................... 75 Pine Ridge Road .................... Spartanburg ............................ SC ... 29302T–57–SC–2074 ......... Phillips Pipeline Spartanburg ....... 200 Nebo Street ........................... Spartanburg ............................ SC ... 29302T–57–SC–2076 ......... Southern Facility Spartanburg ..... 2430 Pine Street Ext .................... Spartanburg ............................ SC ... 29302T–57–SC–2077 ......... Star Enterprise Spartanburg ........ 2590 Southport Road ................... Spartanburg ............................ SC ... 29302T–57–SC–2071 ......... Crown Central Spartansburg ....... PO Box 2442 ............................... Spartansburg ........................... SC ... 29304T–57–SC–2075 ......... Shell Oil Spartanburg ................... 300 Delmar Road ......................... Spartansburg ........................... SC ... 29302T–57–SC–2052 ......... Louis Dreyfus Spartenburg .......... 680 Dilmer Road .......................... Spartenburg ............................ SC ... 29302T–46–SD–3550 ......... Kaneb Pipe Line Aberdeen .......... Hwy 281 ....................................... Aberdeen ................................. SD ... 57401



[July 1, 1995]


T–46–SD–3558 ......... Williams Pipe Line Canton ........... RR #1 Box 12 A ........................... Canton ..................................... SD ... 57013T–46–SD–3551 ......... Kaneb Pipe Line Mitchell ............. Hwy 38 ......................................... Mitchell .................................... SD ... 57301T–46–SD–3552 ......... WYCO Pipe Line Rapid City ........ 3225 Eglin Street ......................... Rapid City ............................... SD ... 57701T–46–SD–3553 ......... Amoco Oil Sioux Falls ................. 3751 S Grange ............................ Sioux Falls .............................. SD ... 57105T–46–SD–3554 ......... Williams Pipeline Sioux Falls ....... 5300 west 12th Street .................. Sioux Falls .............................. SD ... 57107T–46–SD–3555 ......... Williams Pipeline Watertown ....... 1000 17th Street S E ................... Watertown ............................... SD ... 57201T–46–SD–3556 ......... Kaneb Pipe Line Wolsey ............. US Hwy 14 & 281 ........................ Wolsey .................................... SD ... 57384T–46–SD–3557 ......... Kaneb Pipe Line Yankton ............ Star Rte 50 ................................... Yanton ..................................... SD ... 57078T–62–TN–2200 .......... Amoco Oil Chattanooga ............... 4235 Jersey Pike ......................... Chattanooga ............................ TN ... 37416T–62–TN–2201 .......... Chevron USA Chattanooga ......... 4716 Bonny Oaks Drive ............... Chattanooga ............................ TN ... 37416T–62–TN–2202 .......... CITGO Chattanooga .................... 4233 Jersey Pike ......................... Chattanooga ............................ TN ... 37416T–62–TN–2205 .......... General Oils Chattanooga ........... 817 Pineville Road ....................... Chattanooga ............................ TN ... 37405T–62–TN–2206 .......... Southeast Terminals .................... 5800 St Elmo Avenue .................. Chattanooga ............................ TN ... 37409T–62–TN–2208 .......... Southern Facility Chattanooga .... 4326 Jersey Pike ......................... Chattanooga ............................ TN ... 37416T–62–TN–2209 .......... Star Enterprise Chattanooga ....... 710 Manufacturers Road ............. Chattanooga ............................ TN ... 37405T–62–TN–2211 .......... Amoco Oil Knoxville ..................... 5101 Middlebrook Pike NW ......... Knoxville .................................. TN ... 37921T–62–TN–2213 .......... CITGO Knoxville .......................... 2409 Knott Road .......................... Knoxville .................................. TN ... 37921T–62–TN–2214 .......... Cummins Terminals Knoxville ..... Third Creek Rd & Middlebrook .... Knoxville .................................. TN ... 37912T–62–TN–2215 .......... Exxon USA Knoxville ................... 5009 Middlebrook Pike ................ Knoxville .................................. TN ... 37921T–62–TN–2216 .......... B P Oil Knoxville .......................... 1908 Third Creek Road ............... Knoxville .................................. TN ... 37921T–62–TN–2217 .......... Marathon Oil Knoxville ................. 2601 Knott Road .......................... Knoxville .................................. TN ... 37950T–62–TN–2218 .......... Shell Oil Knoxville ........................ 5001 Middlebrook Pike NW ......... Knoxville .................................. TN ... 37921T–62–TN–2219 .......... Southern Facility Knoxville ........... 4801 Middlebrook Pike ................ Knoxville .................................. TN ... 37921T–62–TN–2221 .......... Louis Dreyfus Knoxville ............... 1720 Island Home Avenue .......... Knoxville .................................. TN ... 37920T–62–TN–2225 .......... Exxon USA Memphis ................... 454 Wisconsin Avenue ................ Memphis .................................. TN ... 38106T–62–TN–2226 .......... Lion Oil Memphis ......................... 1023 Riverside ............................. Memphis .................................. TN ... 38106T–62–TN–2227 .......... MAPCO Petroleum Memphis ....... ...................................................... Memphis .................................. TN ... 38109T–62–TN–2228 .......... Petroleum Fuel Memphis ............. 1232 Riverside ............................. Memphis .................................. TN ... 38106T–62–TN–2203 .......... Truman Arnold Memphis ............. 1237 Riverside ............................. Memphis .................................. TN ... 38106T–62–TN–2231 .......... Amoco Oil Nashville ..................... 1441 51st Avenue North .............. Nashville .................................. TN ... 37209T–62–TN–2232 .......... Ashland Nashville ........................ Five Main Street ........................... Nashville .................................. TN ... 37213T–62–TN–2233 .......... CITGO Nashville .......................... 720 South Second Street ............ Nashville .................................. TN ... 37213T–62–TN–2234 .......... Cumberland Terminals Nashville . 7260 Centennial Boulevard ......... Nashville .................................. TN ... 37209T–62–TN–2236 .......... Exxon USA Nashville ................... 1741 Ed Temple Blvd .................. Nashville .................................. TN ... 37208T–62–TN–2237 .......... B P Oil Nashville .......................... 1409 51st Ave .............................. Nashville .................................. TN ... 37209T–62–TN–2238 .......... Marathon Oil Nashville ................. 2920 Old Hydes Ferry Road ........ Nashville .................................. TN ... 37218T–62–TN–2241 .......... Star Enterprise Nashville ............. 1717 61st & Centennial Bvld ....... Nashville .................................. TN ... 37209T–62–TN–2242 .......... Kerr-McGee Nashville .................. 180 Anthes Avenue ..................... Nashville .................................. TN ... 37210T–62–TN–2204 .......... Lion Oil Nashville ......................... 90 Van Buren St .......................... Nashville .................................. TN ... 37208T–62–TN–2240 .......... Southern Facility Nashville .......... 1609 63rd Avenue North ............. Nashvilleue North .................... TN ... 37209T–75–TX–2650 .......... Diamond Abernathy ..................... Highway 54 .................................. Abernathy ................................ TX ... 79311T–75–TX–2651 .......... Fina Oil Abilene ........................... Highway 277 North ...................... Abilene .................................... TX ... 79604T–75–TX–2652 .......... Pride Refining Abilene ................. Hwy 277 N Industrial Dist ............ Abilene .................................... TX ... 79604T–75–TX–2665 .......... Carswell Pipeline Aledo ............... I 20 in Willow Park ....................... Aledo ....................................... TX ... 76008T–75–TX–2653 .......... Diamond Amarillo ......................... 4200 West Cliffside ...................... Amarillo ................................... TX ... 79124T–75–TX–2654 .......... Phillips 66 Amarillo ...................... 4300 Cliffside Dr .......................... Amarillo ................................... TX ... 79142T–74–TX–2706 .......... Koch Refining Austin ................... 9011 Johnny Morris Rd ............... Austin ...................................... TX ... 78724T–76–TX–2781 .......... Exxon USA Baytown .................... 3139 Decker Drive & Highway 10 Baytown .................................. TX ... 77037T–76–TX–2783 .......... Chevron USA Port Arthur ............ 9406 West Port Arthur Rd ........... Beaumont ................................ TX ... 77705T–76–TX–2798 .......... Mobil Oil Beaumont ..................... Route 4 ........................................ Beaumont ................................ TX ... 77705T–76–TX–2784 .......... Chevron USA Big Sandy ............. Highway 155 and Sabine River ... Big Sandy ................................ TX ... 75755T–75–TX–2656 .......... Fina Oil Big Spring ....................... East IS–20 & Refinery Rd ........... Big Spring ............................... TX ... 79721T–75–TX–2657 .......... Phillips 66 Borger ......................... ...................................................... Borger ..................................... TX ... 79007T–74–TX–2709 .......... CITGO Brownsville ...................... 11001 South Port Road ............... Brownsville .............................. TX ... 78520T–74–TX–2713 .......... CITGO Bryan ............................... 1714 Finfeather Road .................. Bryan ....................................... TX ... 77801T–75–TX–2659 .......... Truman Arnold Caddo Mills ......... ...................................................... Caddo Mills ............................. TX ... 75505T–74–TX–2701 .......... Mobil Oil Center ........................... US 87 South ................................ Center ..................................... TX ... 75692T–75–TX–2678 .......... CITGO Center .............................. Hwy 87 South .............................. Center ..................................... TX ... 75935T–76–TX–2786 .......... Koch Refining Channelview ......... 16514 Dezavala Road ................. Channelview ............................ TX ... 77530T–76–TX–2791 .......... Howell Hydrocarbons & Chem .... 1201 S Sheldon Road ................. Channelview ............................ TX ... 77530T–74–TX–2716 .......... CITGO Corpus Christi .................. 1308 Oak Park Street .................. Corpus Christi ......................... TX ... 78407T–74–TX–2718 .......... Coastal Oil Corpus Christi ........... 5441 UP River Road .................... Corpus Christi ......................... TX ... 78407T–74–TX–2719 .......... Diamond Corpus Christi ............... 2700 Texaco Road ...................... Corpus Christi ......................... TX ... 78403T–74–TX–2720 .......... SW Refining Corpus Christi ......... 1700 Nueces Bay Boulevard ....... Corpus Christi ......................... TX ... 78469T–74–TX–2721 .......... Koch Refining Corpus Christi ...... Suntide Road ............................... Corpus Christi ......................... TX ... 78403T–74–TX–2711 .......... CITGO Oil Corpus Christi ............ 2505 N Port Ave .......................... Corpus Christi ......................... TX ... 78401T–75–TX–2661 .......... Mobil Oil Dallas ............................ 4200 Singleton Boulevard ............ Dallas ...................................... TX ... 75212T–75–TX–2662 .......... Star Enterprise Dallas .................. 3900 Singleton ............................. Dallas ...................................... TX ... 75212T–74–TX–2724 .......... Chevron USA El Paso ................. 6501 Trowbridge .......................... El Paso .................................... TX ... 79905T–74–TX–2726 .......... Navajo Refining El Paso .............. 1000 Eastside Road .................... El Paso .................................... TX ... 79915



[July 1, 1995]


T–74–TX–2710 .......... Shell Pipeline El Paso ................. 6767 Gateway West .................... El Paso .................................... TX ... 79926T–74–TX–2744 .......... S T Services Elmendorf ............... 20830 Lamm Rd .......................... Elmendorf ................................ TX ... 75112T–75–TX–2655 .......... Phillips 66 Arlington ..................... 12401 Calloway Cemetery Road . Euless ..................................... TX ... 76040T–75–TX–2664 .......... Koch Refining Euless ................... Highway 157 and Trinity Blvd ...... Euless ..................................... TX ... 76040T–75–TX–2670 .......... Total Petroleum Ft Worth ............ 3520 Euless South Main .............. Euless ..................................... TX ... 76040T–74–TX–2728 .......... Coastal Oil Falfurrias ................... Three Mi North on US Hwy 281 .. Falfurrias ................................. TX ... 78355T–75–TX–2666 .......... Chevron USA Fort Worth ............. 2525 Brennan Street .................... Fort Worth ............................... TX ... 76106T–75–TX–2667 .......... CITGO Fort Worth ....................... 301 Terminal Road ...................... Fort Worth ............................... TX ... 76106T–75–TX–2668 .......... Mobil Oil Fort Worth ..................... 3600 North Sylvania .................... Fort Worth ............................... TX ... 76111T–75–TX–2669 .......... Star Enterprise Ft Worth .............. 3200 Sylvania .............................. Fort Worth ............................... TX ... 76111T–76–TX–2789 .......... Chevron USA Galena Park .......... 12523 American Petroleum Rd ... Galena Park ............................ TX ... 77547T–76–TX–2788 .......... GATX Galena Park ...................... 906 Clinton Drive ......................... Galena Park ............................ TX ... 77547T–76–TX–2792 .......... Amerada Hess Galena Park ........ 12901 American Petroleum Rd ... Galena Park ............................ TX ... 77547T–75–TX–2671 .......... Conoco Southlake ........................ 3100 Highway 26 West ................ Grapevine ................................ TX ... 76051T–75–TX–2672 .......... Fina Oil Southlake ....................... 3000 Highway 26 West ................ Grapevine ................................ TX ... 76051T–75–TX–2680 .......... Diamond Southlake ...................... 1700 Hwy 26 ................................ Grapevine ................................ TX ... 76051T–74–TX–2729 .......... Diamond Harlingen ...................... 4.5 miles east on highway 106 .... Harlingen ................................. TX ... 78550T–74–TX–2704 .......... Exxon USA Hearne ...................... Highway Six ................................. Hearne .................................... TX ... 77859T–75–TX–2658 .......... Mobil Oil Hearne .......................... ...................................................... Hearne .................................... TX ... 76705T–74–TX–2702 .......... Star Enterprise Hearne ................ Highway 6 South .......................... Hearne .................................... TX ... 77859T–76–TX–2794 .......... CITGO Houston ........................... 12325 North Fwy at Greens Rd .. Houston ................................... TX ... 77060T–76–TX–2795 .......... Coastal Oil Houston ..................... 11650 Almeda Road Loop 610 .... Houston ................................... TX ... 77045T–76–TX–2799 .......... Jetera Fuels Houston ................... 17617 Aldine-Westfield Road ...... Houston ................................... TX ... 77073T–76–TX–2800 .......... Lyondell-CITGO Refining ............. 12000 Lawndale ........................... Houston ................................... TX ... 77002T–76–TX–2803 .......... Star Enterprise Houston .............. 2661 Stevens Street .................... Houston ................................... TX ... 77226T–76–TX–2804 .......... Stolt Terminals Inc Houston ........ 15602 Jacinto Port Blvd ............... Houston ................................... TX ... 77213T–76–TX–2808 .......... Exxon USA North Houston .......... 8700 North Freeway .................... Houston ................................... TX ... 77037T–76–TX–2812 .......... Exxon USA South Houston ......... 10501 East Almeda ..................... Houston ................................... TX ... 77051T–76–TX–2806 .......... Phibro Energy USA Houston ....... 9701 Manchester ......................... Houston ................................... TX ... 77536T–75–TX–2660 .......... Exxon USA Dallas ....................... 1201 East Airport Freeway .......... Irving ....................................... TX ... 75062T–74–TX–2715 .......... Diamond Larado .......................... 13380 South Unitec ..................... Larado ..................................... TX ... 78044T–75–TX–2674 .......... Phillips 66 Lubbock ...................... Clovis Road and Flint Avenue ..... Lubbock ................................... TX ... 79408T–75–TX–2675 .......... Texaco Lubbock ........................... Clovis Rd & Flint Ave Hwy 84 ..... Lubbock ................................... TX ... 79417T–74–TX–2730 .......... Coastal Oil Hidako ....................... 7 Miles S at Hidalgo Box 3095 .... McAllen ................................... TX ... 78501T–75–TX–2679 .......... Chevron USA Midland ................. 1100 North County Rd 1160 ........ Midland .................................... TX.T–75–TX–2676 .......... Conoco Mount Pleasant .............. 1503 West Ferguson ................... Mount Pleasant ....................... TX ... 75455T–75–TX–2685 .......... Shell Oil Odessa .......................... 2700 S Grandview ....................... Odessa .................................... TX ... 79760T–76–TX–2782 .......... Shell Oil Pasadena ...................... 1320 West Shaw St ..................... Pasadena ................................ TX ... 77506T–76–TX–2809 .......... GATX Pasadena .......................... 530 North Witter ........................... Pasadena ................................ TX ... 77506T–76–TX–2811 .......... Phillips Pipeline Pasadena .......... 100 Jefferson Street .................... Pasadena ................................ TX ... 77501T–74–TX–2731 .......... Coastal Oil Placedo ..................... 2 Mi S of Placedo Hwy 87 ........... Placedo ................................... TX ... 77977T–74–TX–2733 .......... Fina Oil Port Arthur Hwy 366 ...... Highway 366 and 32nd Street ..... Port Arthur ............................... TX ... 77640T–76–TX–2785 .......... Star Enterprise Port Arthur .......... 401 West 19th Street ................... Port Arthur ............................... TX ... 77640T–76–TX–2801 .......... Fina Oil Port Arthur 32nd ............. Hwy 366 & 32nd St ...................... Port Arthur ............................... TX ... 77642T–75–TX–2686 .......... Pride San Angelo ......................... 4008 U S Hwy 67N ...................... San Angelo ............................. TX ... 76905T–74–TX–2737 .......... Chevron USA San Antonio .......... 4851 Emil Road ........................... San Antonio ............................ TX ... 78219T–74–TX–2738 .......... Coastal Oil San Antonio .............. 4719 Corner Parkway #2 ............. San Antonio ............................ TX ... 78219T–74–TX–2739 .......... Diamond San Antonio .................. 10619 Highway 281 South .......... San Antonio ............................ TX ... 78221T–74–TX–2740 .......... Exxon USA San Antonio .............. 3214 North Pan Am Expressway San Antonio ............................ TX ... 78219T–74–TX–2742 .......... Koch Refining San Antonio .......... I–10 and East Houston Street ..... San Antonio ............................ TX ... 78220T–74–TX–2745 .......... Star Enterprise San Antonio ........ 510 Petroleum Drive .................... San Antonio ............................ TX ... 78219T–76–TX–2780 .......... Petro-United Terminals Bayport .. 11666 Port Road .......................... Seabrook ................................. TX ... 77586T–75–TX–2682 .......... Diamond Sunray .......................... 9 Mi NE of Dumas TX on FM 119 Sunray ..................................... TX ... 79086T–76–TX–2813 .......... Phillips 66 Sweeny ....................... Hwys 35 & 36 at West Columbia Sweeny ................................... TX ... 77480T–76–TX–2814 .......... S T Services Texas City .............. 1111 Main Dock Road ................. Texas City ............................... TX ... 77592T–74–TX–2747 .......... Diamond Three Rivers ................. 301 Leroy Street .......................... Three Rivers ........................... TX ... 78071T–74–TX–2748 .......... Conoco Tye .................................. I–20 West Exit 278 ...................... Tye .......................................... TX ... 79563T–75–TX–2681 .......... La Gloria Oil Tyler ........................ 425 McMurry Drive ...................... Tyler ........................................ TX ... 75702T–74–TX–2703 .......... CITGO Victoria ............................. 1708 North Ben Jordan Blvd ....... Victoria .................................... TX ... 77901T–74–TX–2749 .......... CITGO Waco ............................... 1600 South Loop Dr .................... Waco ....................................... TX ... 76705T–74–TX–2705 .......... Star Enterprise Waco ................... 420 South Lacy Drive .................. Waco ....................................... TX ... 76705T–74–TX–2707 .......... Koch Refining Waco .................... 2017 Kendall Lane ....................... Waco ....................................... TX ... 76705T–74–TX–2708 .......... Mobil Oil Waco ............................. 502 South Lacy Dr ....................... Waco ....................................... TX ... 76705T–75–TX–2687 .......... Star Enterprise Waskom .............. 9 South ......................................... Waskom .................................. TX ... 75692T–75–TX–2688 .......... Mobil Oil Waskom ........................ 9 South ......................................... Waskom .................................. TX ... 75692T–75–TX–2683 .......... Fina Oil Wichita Falls ................... Old Charlie & Sinclair Blvd .......... Wichita Falls ............................ TX ... 76307T–75–TX–2684 .......... Conoco Wichita Falls ................... 1214 North Eastside Ave ............. Wichita Falls ............................ TX ... 76304T–87–UT–4200 .......... Flying J North Salt Lake .............. 333 West Center St ..................... North Salt Lake ....................... UT ... 84054T–87–UT–4204 .......... Salt Lake Terminal Company ...... 245 East 1100 North .................... North Salt Lake City ................ UT ... 84054T–87–UT–4201 .......... Penzoil Prod Co Roosevelt .......... P O Box 10–W Hwy 40 ............... Roosvelt .................................. UT ... 84066T–87–UT–4202 .......... Amoco Oil Salt Lake City ............. 474 West 900 N ........................... Salt Lake City .......................... UT ... 84103



[July 1, 1995]


T–87–UT–4203 .......... Chevron USA Salt Lake City ....... 2351 North Tenth West ............... Salt Lake City .......................... UT ... 84110T–87–UT–4205 .......... Crysen Refining Woods Cross .... 2355 South 1100 West ................ Woods Cross .......................... UT ... 84087T–87–UT–4206 .......... Phillips 66 Woods Cross .............. 393 South 800 West .................... Woods Cross .......................... UT ... 84087T–54–VA–1652 .......... CITGO Chesapeake .................... 201 Freeman Street ..................... Cheasapeake .......................... VA ... 23324T–54–VA–1650 .......... Amerada Hess Chesapeake ........ 4030 Buell Street ......................... Chesapeake ............................ VA ... 23324T–54–VA–1651 .......... Amoco Oil Chesapeake ............... 428 Barnes Road ......................... Chesapeake ............................ VA ... 23324T–54–VA–1653 .......... Conoco Chesapeake ................... 502 Hill Street .............................. Chesapeake ............................ VA ... 23324T–54–VA–1654 .......... Exxon USA Chesapeake ............. 4115 Buell Street ......................... Chesapeake ............................ VA ... 23324T–54–VA–1673 .......... Crown Central Norfolk ................. 801 Butt Street ............................. Chesapeake ............................ VA ... 23324T–54–VA–1674 .......... Mobil Oil Norfolk .......................... Halifax Lane ................................. Chesapeake ............................ VA ... 23324T–54–VA–1656 .......... Louis Dreyfus Chesapeake .......... 7600 Halifax Lane ........................ Chesapeake ............................ VA ... 23324T–54–VA–1658 .......... Steuart Petroleum Cockpit Pt ...... 1301 Cherry Hill Rd ..................... Dumfries .................................. VA ... 22026T–54–VA–1659 .......... Amoco Oil Fairfax ........................ 9601 Colonial Avenue .................. Fairfax ..................................... VA ... 22030T–54–VA–1660 .......... Global Petroleum Fairfax ............. 3790 Pickett Road ....................... Fairfax ..................................... VA ... 22031T–54–VA–1661 .......... CITGO Fairfax .............................. 9600 Colonial Avenue .................. Fairfax ..................................... VA ... 22031T–54–VA–1662 .......... Star Enterprise Fairfax ................. 3800 Pickett Road ....................... Fairfax ..................................... VA ... 22030T–54–VA–1663 .......... Mobil Oil Manassas ..................... 10315 Ballsford Road .................. Manassas ................................ VA ... 22110T–54–VA–1665 .......... Amoco Oil Montvale ..................... US Route 460 & St Rt 892 .......... Montvale .................................. VA ... 24122T–54–VA–1666 .......... Chevron USA Montvale ............... U S 460 East ............................... Montvale .................................. VA ... 24122T–54–VA–1668 .......... Southern Facilities Montvale ........ U S Highway 460 ......................... Montvale .................................. VA ... 24122T–54–VA–1691 .......... Star Enterprise Roanoke ............. Route 460 .................................... Montvale .................................. VA ... 24122T–54–VA–1664 .......... Amerada Hess Montvale ............. Route 460 .................................... Monvale ................................... VA ... 24122T–54–VA–1670 .......... Crown Central Newington ............ 8211 Terminal Road .................... Newington ............................... VA ... 22122T–54–VA–1671 .......... Exxon USA Newington ................ 8200 Terminal Road .................... Newington ............................... VA ... 22122T–54–VA–1692 .......... Shell Oil Springfield ..................... 8206 Terminal Road .................... Newington ............................... VA ... 22122T–54–VA–1669 .......... Koch Fuels Newport News .......... 801 Terminal Ave ......................... Newport News ......................... VA ... 23607T–54–VA–1655 .......... Bagwell Oil Onancock .................. 33 Market ..................................... Onancock ................................ VA ... 23417T–54–VA–1677 .......... Amoco Oil Richmond ................... 1636 Commerce Road ................. Richmond ................................ VA ... 23224T–54–VA–1678 .......... Chevron USA Richmond .............. 700 Goodes Street ....................... Richmond ................................ VA ... 23224T–54–VA–1679 .......... CITGO Richmond ........................ Third & Maury Street ................... Richmond ................................ VA ... 23224T–54–VA–1680 .......... Crown Central Richmond ............. 4405 E Main ................................. Richmond ................................ VA ... 23231T–54–VA–1681 .......... Exxon USA Richmond ................. 2000 Trenton Avenue .................. Richmond ................................ VA ... 23234T–54–VA–1682 .......... First Energy Corp Richmond ....... Second & Maury Streets .............. Richmond ................................ VA ... 23224T–54–VA–1683 .......... Koch Fuels Richmond .................. 4110 Deepwater Terminal Road .. Richmond ................................ VA ... 23234T–54–VA–1684 .......... Southern Facility Richmond ......... 204 East First Avenue ................. Richmond ................................ VA ... 23224T–54–VA–1685 .......... Star Enterprise Richmond ............ 5801 Jefferson Davis Highway .... Richmond ................................ VA ... 23234T–54–VA–1687 .......... Louis Dreyfus Richmond .............. 1314 Commerce Road ................. Richmond ................................ VA ... 23224T–54–VA–1657 .......... Primary Corp Deepwater ............. 3302 Deepwater Terminal Rd ...... Richmond ................................ VA ... 23234T–54–VA–1672 .......... Primary Corp Bickerstaff .............. 413 Bickerstaff Rd ....................... Richmond ................................ VA ... 23231T–54–VA–1688 .......... Exxon USA Roanoke ................... 835 Hollins Road Northeast ......... Roanoke .................................. VA ... 24012T–54–VA–1689 .......... Marathon Oil Roanoke ................. 5287 Terminal Road .................... Roanoke .................................. VA ... 24014T–54–VA–1690 .......... Shell Oil Roanoke ........................ 5280 Terminal Road Southwest .. Roanoke .................................. VA ... 24014T–54–VA–1693 .......... S T Services Virginia Beach ........ 3925 North Landing Road ........... Virginia Beach ......................... VA ... 23456T–54–VA–1694 .......... Amoco Oil Yorktown .................... Route 73 East Entrance .............. Yorktown ................................. VA ... 23690T–03–VT–1100 .......... Mobil Oil Burlington ...................... 2 Flynn Avenue ............................ Burlington ................................ VT ... 5401T–91–WA–4400 ......... Texaco Anacortes ........................ Marches Point .............................. Anacortes ................................ WA .. 98221T–91–WA–4401 ......... Conoco Moses Lake .................... 3 miles north of Moses Lake ....... Moses Lake ............................. WA .. 98837T–91–WA–4423 ......... Tidewater Terminal Wilma ........... 2950 Wilma Drive ........................ North Clarkston ....................... WA .. 99403T–91–WA–4402 ......... Northwest Terminaling Pasco ...... 3000 Sacajawea Park Road ........ Pasco ...................................... WA .. 99301T–91–WA–4420 ......... Tidewater Snake River ................ Tank Farm Road .......................... Pasco ...................................... WA .. 99301T–91–WA–4405 ......... Wilkins Distributing Co ................. 134 Bay Street W ........................ Port Orchard ........................... WA .. 98366T–91–WA–4404 ......... Tosco Northwest Renton ............. 2423 Lind Avenue Southwest ...... Renton ..................................... WA .. 98055T–91–WA–4403 ......... Chevron USA Point Wells ............ 20500 Richmond Beach Drive N . Richmond Beach ..................... WA .. 98177T–91–WA–4406 ......... GATX Seattle ............................... 1733 Alaskan Way South ............ Seattle ..................................... WA .. 98134T–91–WA–4407 ......... Shell Oil Seattle ........................... ...................................................... Seattle ..................................... WA .. 98124T–91–WA–4408 ......... Texaco Seattle ............................. 2555 13th Ave S W ..................... Seattle ..................................... WA .. 98134T–91–WA–4409 ......... Time Oil Seattle ........................... 2737 West Commodore Way ...... Seattle ..................................... WA .. 98199T–91–WA–4424 ......... Pacific Northern Oil Corp ............. Pier 91 Bldg 19 ............................ Seattle ..................................... WA .. 98119T–91–WA–4425 ......... ARCO Seattle Terminal ............... 1652 SW Lander St ..................... Seattle ..................................... WA .. 95124T–91–WA–4410 ......... Conoco Spokane ......................... 6317 East Sharp Avenue ............. Spokane .................................. WA .. 99206T–91–WA–4411 ......... Exxon USA Spokane ................... 6311 East Sharp Avenue ............. Spokane .................................. WA .. 99211T–91–WA–4412 ......... Tosco Northwest Spokane ........... 3225 East Lincoln Road .............. Spokane .................................. WA .. 99207T–91–WA–4413 ......... Tosco Northwest Tacoma ............ 520 E D Street ............................. Tacoma ................................... WA .. 98421T–91–WA–4414 ......... Sound Refining Tacoma .............. 2628 Marine View Drive .............. Tacoma ................................... WA .. 98421T–91–WA–4415 ......... Superior Oil Tacoma .................... 250 East D Street ........................ Tacoma ................................... WA .. 98401T–91–WA–4421 ......... US Oil Tacoma ............................ 3001 Marshall Ave ....................... Tacoma ................................... WA .. 98421T–91–WA–4422 ......... UNOCAL Tacoma ........................ 516 East D Street ........................ Tacoma ................................... WA .. 98421T–91–WA–4416 ......... Texaco Tumwate ......................... 7370 Linderson Way S W ............ Tumwater ................................ WA .. 98501T–91–WA–4417 ......... CENEX Vancouver ...................... 5420 Fruit Valley Road ................ Vancouver ............................... WA .. 98660T–91–WA–4419 ......... Tesoro Refining Mtg Vancouver .. 2211 West 26th Street Ext .......... Vancouver ............................... WA .. 98660T–39–WI–3064 .......... CENEX Chippewa Falls ............... 2331 N Prairie View Rd ............... Chippewa Falls ....................... WI ... 54729



[July 1, 1995]


T–39–WI–3082 .......... Kerr-McGee Chippewa Falls ........ 2553 North Prairie View Rd ......... Chippewa Falls ....................... WI ... 54729T–39–WI–3061 .......... Amoco Oil Green Bay .................. 1124 North Broadway .................. Green Bay ............................... WI ... 54303T–39–WI–3066 .......... CITGO Green Bay ....................... 1391 Bylsby Avenue .................... Green Bay ............................... WI ... 54303T–39–WI–3075 .......... Green Bay Terminal ..................... 1031 Hurlbut Street ...................... Green Bay ............................... WI ... 54303T–39–WI–3077 .......... Mobil Oil Green Bay .................... 410 Prairie Ave ............................ Green Bay ............................... WI ... 54303T–39–WI–3089 .......... U S Oil Green Bay West ............. 1075 Hurlbut Ct ............................ Green Bay ............................... WI ... 54303T–39–WI–3078 .......... Clark Rfg Green Bay ................... 1445 Bylsby Ave .......................... Green Bay ............................... WI ... 54303T–39–WI–3091 .......... U S Oil Green Bay East .............. 1910 N Quincy St ........................ Green Bay ............................... WI ... 54302T–39–WI–3071 .......... Koch Junction City ....................... Junction US 10 & 34N ................. Junction City ........................... WI ... 54443T–39–WI–3069 .......... Terminal Oil Madison ................... 3910 Terminal Road .................... Madison ................................... WI ... 53704T–39–WI–3088 .......... US Oil Madison ............................ 4306 Terminal Dr ......................... Madison ................................... WI ... 53558T–39–WI–3065 .......... CENEX McFarland ....................... 4103 Triangle St .......................... McFarland ............................... WI ... 53558T–39–WI–3067 .......... CITGO McFarland ........................ 4606 Terminal Drive .................... McFarland ............................... WI ... 53558T–39–WI–3072 .......... Koch McFarland ........................... 4505 Terminal Drive .................... McFarland ............................... WI ... 53558T–39–WI–3079 .......... Mobil Oil Madison ........................ 4516 Sigglekow Road .................. McFarland ............................... WI ... 53558T–39–WI–3083 .......... Kerr-McGee McFarland ............... 4009 Triangle St Hwy 51 S ......... McFarland ............................... WI ... 53558T–39–WI–3085 .......... UNO-VEN McFarland .................. 4402 Terminal Drive .................... McFarland ............................... WI ... 53558T–39–WI–3062 .......... Amoco Oil Milwaukee .................. 9101 North 107th Street .............. Milwaukee ............................... WI ... 53201T–39–WI–3068 .......... CITGO Milwaukee ........................ 9235 North 107th Street .............. Milwaukee ............................... WI ... 53224T–39–WI–3073 .......... Koch Milwaukee ........................... 9343 North 107th Street .............. Milwaukee ............................... WI ... 53224T–39–WI–3076 .......... Marathon Milwaukee .................... 9125 North 107th St .................... Milwaukee ............................... WI ... 53224T–39–WI–3081 .......... S T Services Milwaukee .............. 1626 South Harbor Drive ............. Milwaukee ............................... WI ... 53207T–39–WI–3084 .......... US Oil Milwaukee ........................ 9135 North 107th Street .............. Milwaukee ............................... WI ... 53224T–39–WI–3086 .......... UNO-VEN Milwaukee .................. 9521 North 107th Street .............. Milwaukee ............................... WI ... 53224T–39–WI–3090 .......... Clark Rfg Milwaukee .................... 9451 North 107th Street .............. Milwaukee ............................... WI ... 53224T–39–WI–3087 .......... Williams Pipe Line Mosinee ......... 2007 Old Highway 51 .................. Mosinee ................................... WI ... 54455T–39–WI–3063 .......... Amoco Oil Superior ...................... 2904 Winter Street ....................... Superior ................................... WI ... 54880T–39–WI–3080 .......... Murphy Oil Superior ..................... 2407 Stinson Ave ......................... Superior ................................... WI ... 54880T–39–WI–3074 .......... Koch Waupun .............................. Route Two .................................... Waupun ................................... WI ... 53963T–55–WV–3181 ......... Exxon USA Charleston ................ Standard St & MacCorkle Ave ..... Charleston ............................... WV .. 25314

ReEngineering Excise Tax with TECHNOLOGY.

[FR Doc. 95–16783 Filed 7–7–95; 8:45 am]BILLING CODE 4830–01–U

This section of the FEDERAL REGISTERcontains notices of meetings published underthe ‘‘Government in the Sunshine Act’’ (Pub.L. 94-409) 5 U.S.C. 552b(e)(3).

Sunshine Act Meetings Federal Register

35598

Vol. 60, No. 131


FEDERAL ENERGY REGULATORYCOMMISSION

The following notice of meeting ispublished pursuant to section 3(a) of theGovernment in the Sunshine Act (Pub.L. No. 94–409), 5 U.S.C. 552B:

DATE AND TIME: July 12, 1995, 10:00 a.m.

PLACE: 825 North Capitol Street, N.E.,Room 9306, Washington, D.C. 20426.

STATUS: Open.

MATTERS TO BE CONSIDERED: Agenda.Note.—Items listed on the agenda may be

deleted without further notice.

CONTACT PERSON FOR MORE INFORMATION:Lois D. Cashell, Secretary, Telephone(202) 208–0400. For a recording listingitems stricken from or added to themeeting, call (202) 208–1627.

This is a list of matters to beconsidered by the Commission. It doesnot include a listing of all papersrelevant to the items on the agenda;however, all public documents may beexamined in the reference andinformation center.

Consent Agenda—Hydro, 634th Meeting—July 12, 1995, Regular Meeting (10:00 A.M.)

CAH–1.Docket# P–553–024, City of Seattle,

WashingtonOther#S EL78–36–001, City of Seattle,

WashingtonCAH–2.

Docket# P–2735–043, Pacific Gas & ElectricCompany

CAH–3.Docket# P–3913–002, Puget Sound Power

& Light CompanyOther#S P–10269–003, Washington Hydro

Development CorporationCAH–4.

Docket# P–2804–013, Goose River Hydro,Inc.

CAH–5.Docket# P–3083–052, Oklahoma Municipal

Power AuthorityOther#S P–3083–058, Oklahoma Municipal

Power AuthorityP–3083–068, Oklahoma Municipal Power

AuthorityCAH–6.

Docket# P–2360–022, Minnesota Power &Light Company

CAH–7.Docket# P–2363–007, Potlatch Corporation

CAH–8.

Docket# P–2506–002, Mead Corporation,Publishing Paper Division

CAH–9.Docket# P–2607–001, Duke Power

Company

Consent Agenda—ElectricCAE–1.

Docket# ER95–1084–000, WisconsinElectric Power Company

Other#S EL95–61–000, Wisconsin ElectricPower Company

ER94–1625–000, Wisconsin Electric PowerCompany

ER95–264–000, Wisconsin Electric PowerCompany

CAE–2.Docket# EL95–4–000, Commonwealth

Edison Company v. American ElectricPower Service Corporation

CAE–3.Docket# ER93–266–000, Boston Edison

CompanyCAE–4.

Docket# ER94–1062–000, Montaup ElectricCompany

Other#S EL94–64–000, Middleborough Gasand Electric Department and PascoagFire District v. Montaup and EasternEdison Company

EL94–68–000, Montaup Electric Companyand Newport Electric Corporation

CAE–5.Docket# EC95–12–000, Century Power

CorporationCAE–6.

Docket# ER84–560–037, Union ElectricCompany

CAE–7.Docket# FA92–9–002, Central Louisiana

Electric Company, Inc.CAE–8.

Docket# FA91–66–001, Indiana MichiganPower Company

CAE–9.Docket# EL94–81–001, Oglethorpe Power

Corp. v. Georgia Power Co. andMunicipal Electric Authority of Georgiav. Georgia Power Co.

CAE–10.Docket# ER94–950–002, Hermiston

Generating Company, L.P.CAE–11.

Docket# ER95–530–001, Ocean State PowerII

Other#s ER95–533–001, Ocean State PowerCAE–12.

Docket# QF83–333–004, Cal BanCorporation

CAE–13.Docket# EL93–19–001, San Diego Gas &

Electric Company v. Tucson ElectricPower Company and Century PowerCorporation

Other#s FA90–34–002, Tucson,ElectricPower Company

CAE–14.Docket# EL95–28–001, New York State

Electric & Gas CorporationCAE–15.

Docket# EG95–52–000, HIE Opco S.A.CAE–16. Docket# EG95–53–000, HIE Argener

S. A.CAE–17.

OmittedCAE–18.

OmittedCAE–19.

OmittedCAE–20.

Docket# EL94–75–000, The ClevelandElectric Illuminating Company v. TheCity of Cleveland, Ohio

Other#s EL94–80–000, The City ofCleveland, Ohio v. The ClevelandElectric Illuminating Company

EL94–86–000, The City of Cleveland, Ohiov. The Cleveland Electric IlluminatingCompany

CAE–21.Docket# EL91–13–000, Northern States

Power Company (Minnesota) v. SouthernMinnesota Municipal Power Agency

CAE–22.Docket# EL93–36–000, Southern California

Edison Company

Consent Agenda—Gas and Oil

CAG–1.Docket# PR95–5–000, Cranberry Pipeline

CorporationCAG–2.

OmittedCAG–3.

Docket# RP95–347–000, CNG TransmissionCorporation

CAG–4.Docket# RP95–328–001, Northern Natural

Gas CompanyCAG–5.

Docket# RP94–16–000, Southern CaliforniaGas Company

Other#s RP94–16–002, Southern CaliforniaGas Company

SA95–2–000, Southern California GasCompany

SA95–2–001, Southern California GasCompany

CAG–6.Docket# RP95–4–000, Arkansas Oklahoma

Gas CorporationCAG–7.

Docket# RP95–6–000, Utah Gas ServiceCompany

CAG–8.Docket# RP91–203–054, Tennessee Gas

Pipeline CompanyCAG–9.

Docket# RP94–219–005, Columbia GulfTransmission Company

Other#s CP94–177–001, Columbia GulfTransmission Company

RP94–219–003, Columbia GulfTransmission Company



CAG–10.

35599Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Sunshine Act Meetings

Docket# RP95–314–000, Tennessee GasPipeline Company

CAG–11.Omitted

CAG–12.Docket# RP89–34–013, Williston Basin

Interstate Pipeline CompanyOther#s RP89–34–005, Williston Basin

Interstate Pipeline CompanyRP89–257–004, Williston Basin Interstate

Pipeline CompanyRP90–2–014, Williston Basin Interstate


Docket# RP95–185–000, Northern NaturalGas Company

CAG–14.Docket# RP88–262–000, Panhandle Eastern

Pipe Line CompanyOther#s CP89–281–000, Panhandle Eastern

Pipe Line CompanyCP89–817–000, Panhandle Eastern Pipe

Line CompanyCP89–817–004, Panhandle Eastern Pipe

Line CompanyCP89–917–000, Panhandle Eastern Pipe

Line CompanyRP88–262–029, Panhandle Eastern Pipe

Line CompanyCAG–15.

Docket# RP92–163–000, Williston BasinInterstate Pipeline Company

Other#s RP92–170–000, Williston BasinInterstate Pipeline Company

RP92–236–000, Williston Basin InterstatePipeline Company

CAG–16.Omitted

CAG–17.Omitted

CAG–18.Docket# RP88–44–050, El Paso Natural Gas

CompanyOther#S RP88–44–051, El Paso Natural Gas

CompanyCAG–19.

OmittedCAG–20.

Docket# RP93–14–024, Algonquin GasTransmission Company

CAG–21.Docket# RP94–149–002, Pacific Gas

Transmission CompanyCAG–22.

OmittedCAG–23.

OmittedCAG–24.

Docket# CP88–391–014, TranscontinentalGas Pipe Line Corporation

CAG–25.Docket# RP95–246–000, Mississippi Valley

Gas Company v. Southern Natural GasCompany

CAG–26.Docket# OR95–6–000, Plantation Pipe Line

CompanyCAG–27.

Docket# MG88–30–003, Great Lakes GasTransmission Limited Partnership

CAG–28.Docket# PR95–11–000, Egan Hub Partners,

L.P.CAG–29.

Docket# CP88–105–003, Yukon PacificCompany L.P.

CAG–30.

Docket# CP90–1050–005, PanhandleEastern Pipe Line Company

CAG–31.Docket# CP94–806–001, Tennessee Gas


Docket# CP95–76–001, Texas EasternTransmission Corporation

CAG–33.Omitted

CAG–34.Docket# CP94–775–001, Tennessee Gas


Docket# RP95–2–001, Williams NaturalGas Company

Other#S RP95–2–000, Williams NaturalGas Company

CAG–36.Docket# CP95–545–000, Overthrust


Docket# CP95–251–000, Pacific InterstateTransmission Company

Hydro AgendaH–1.

Omitted

Electric AgendaE–1.

Reserved

Oil and Gas Agenda

I. Pipeline Rate Matters

PR–1.Docket# RP91–143–027, Great Lakes Gas

Transmission Limited PartnershipOrder on Remand.

II. Pipeline Certificate Matters

PC–1.ReservedDated: July 5, 1995.

Lois D. Cashell,Secretary.[FR Doc. 95–16914 Filed 7–6–95; 11:00 am]BILLING CODE 6717–01–P


Notice of Agency MeetingPursuant to the provisions of the

‘‘Government in the Sunshine Act’’ (5U.S.C. 552b), notice is hereby given thatat 10:33 a.m. on Wednesday, July 5,1995, the Board of Directors of theFederal Deposit Insurance Corporationmet in closed session to consider (1)administrative enforcementproceedings, and (2) a matter relating tothe Corporation’s supervisory activities.

In calling the meeting, the Boarddetermined, on motion of ViceChairman Andrew C. Hove, Jr.,seconded by Director Eugene A. Ludwig(Comptroller of the Currency),concurred in by Director Jonathan L.Fiechter (Acting Director, Office ofThrift Supervision), and Chairman RickiHelfer, that Corporation businessrequired its consideration of the matters

on less than seven days’ notice to thepublic; that no earlier notice of themeeting was practicable; that the publicinterest did not require consideration ofthe matters in a meeting open to publicobservation; and that the matters couldbe considered in a closed meeting byauthority of subsections (c)(4), (c)(6),(c)(8), and (c)(9)(A)(ii) of the‘‘Government in the Sunshine Act’’ (5U.S.C. 552b (c)(4), (c)(6), (c)(8), and(c)(9)(A)(ii)).

The meeting was held in the BoardRoom of the FDIC Building located at550—17th Street, N.W., Washington,DC.

Dated: July 5, 1995.Federal Deposit Insurance Corporation.Patti C. Fox,Assistant Executive Secretary.[FR Doc. 95–16954 Filed 7–6–95; 2:47 pm]BILLING CODE 6714–01–M

INTERSTATE COMMERCE COMMISSION

Commission Voting ConferenceTIME AND DATE: 10:00 a.m., Thursday,July 20, 1995.PLACE: Hearing Room A, InterstateCommerce Commission, 12th andConstitution Avenue, N.W.,Washington, D.C. 20423.STATUS: The Commission will meet todiscuss among themselves the followingagenda items. Although the conferenceis open for the public observation, nopublic participation is permitted.MATTERS TO BE DISCUSSED:

Finance Docket No. 32549 BurlingtonNorthern Inc. And Burlington NorthernRailroad Company—Control And Merger—Santa Fe Pacific Corporation And TheAtchison, Topeka And Santa Fe RailwayCompany.

CONTACT PERSONS FOR MOREINFORMATION: Alvin H. Brown or A.Dennis Watson, Office of Congressionaland Press Services, Telephone: (202)927–5350, TDD: (202) 927–5721.Vernon A. Williams,Secretary.[FR Doc. 95–16947 Filed 7–6–95; 2:47 pm]BILLING CODE 7035–01–P

DEPARTMENT OF JUSTICE

UNITED STATES PAROLE COMMISSION

Record of Vote of Meeting Closure

(Public Law 94–409)

(5 U.S.C. Sec. 552b)I, Edward F. Reilly, Jr., Chairman of

the United States Parole Commission,presided at a meeting of saidCommission which started atapproximately two o’clock p.m. on

35600 Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Sunshine Act Meetings

Tuesday, June 27, 1995 at theCommission’s North Central RegionalOffice, 10220 North Executive HillsBlvd., North Point Tower, Suite 700,Kansas City, Missouri 64153. Thepurpose of the meeting was to decidenineteen appeals from NationalCommissioners’ decisions pursuant to28 C.F.R. Section 2.27. SixCommissioners were present,constituting a quorum when the vote toclose the meeting was submitted. Asecond matter addressed at the closed

meeting was the adoption of the WitnessSecurity Manual.

Public announcement furtherdescribing the subject matter of themeeting and certifications of GeneralCounsel that this meeting may be closedby vote of the Commissioners presentwere submitted to the Commissionersprior to the conduct of any otherbusiness. Upon motion duly made,seconded, and carried, the followingCommissioners voted that the meetingbe closed: Edward F. Reilly, Jr., Carol

Pavilack Getty, Jasper Clay, Jr., VincentJ. Fechtel, Jr., John R. Simpson, andMichael J. Gaines.

IN WITNESS WHEREOF, I make thisofficial record of the vote taken to closethis meeting and authorize this record tobe made available to the public.

Dated: July 3, 1995.Edward F. Reilly, Jr.,Chairman, U.S. Parole Commission.[FR Doc. 95–16982 Filed 7–6–95; 3:52 pm]BILLING CODE 4410–01–M

This section of the FEDERAL REGISTERcontains editorial corrections of previouslypublished Presidential, Rule, Proposed Rule,and Notice documents. These corrections areprepared by the Office of the FederalRegister. Agency prepared corrections areissued as signed documents and appear inthe appropriate document categorieselsewhere in the issue.

Corrections Federal Register

35601

Vol. 60, No. 131


DEPARTMENT OF AGRICULTURE

Food and Consumer Service

National School Lunch, Special Milk,and School Breakfast Programs;National Average Payments/MaximumReimbursement Rates

CorrectionIn notice document 95–16272

beginning on page 34500, in the issue ofMonday, July, 3, 1995, make thefollowing correction:

On page 34501, in the third columnunder School Breakfast ProgramPayments, in the fifth line, ‘‘69.45cents’’ should read ‘‘69.75 cents’’.BILLING CODE 1505–01–D


5 CFR Part 575

RIN 3206-AF86

Recruitment and Relocation Bonusesand Retention Allowances

Correction

In final rule document 95–15713beginning on page 33323 in the issue ofWednesday, June 28, 1995, make thefollowing corrections:

§ 575.203 [Corrected]

On page 33326, in §575.203, underthe definition for Employee, in the nextto last line ‘‘community’’ should read‘‘commuting’’.

§ 575.304 [Corrected]

On page 33327, in §575.304(a), in thesecond column, in the second line ‘‘by’’should read ‘‘for’’.BILLING CODE 1505–01–D

fede

ral r

egiste

r

35603

MondayJuly 10, 1995

Part II

Securities andExchangeCommission17 CFR Parts 228, 229, et al.

Securities; Final Rule and ProposedRules


1 17 CFR 239.11, 12, 13, 25, 16, 16b, 18, 9, 10, 31,32, 33, 34, 37, 38, 39, 40, 41 and 90.

2 17 CFR 230.501–508.3 15 U.S.C. 77a et seq.4 17 CFR 249.310 and 310b.5 17 CFR 240.13e–3, 13e–4, 14a–3, 14c–3, 14d–1

and 14d–6.6 17 CFR 240.13e–102, 14a–101, 14c–101, 14d–

102, and 14d–103.7 15 U.S.C. 78a et seq.8 17 CFR Part 228 and 17 CFR Part 229.9 See Rules 14a–3 and 14c–3.10 Financial statements prepared in conformity

with generally accepted accounting principles(‘‘GAAP’’) are required to include adequatedisclosure of material matters (Statement onAuditing Standards (‘‘SAS’’) No. 32, Adequacy ofDisclosure in Financial Statements). Disclosures innotes to the financial statements are intended toprovide material information necessary to make thefinancial statements, in light of the circumstancesunder which they are made, not misleading (Rule4–01(a) of Regulation S–X [17 CFR 210.4–01(a)]). Inrecent decades, numerous requirements have beenadopted that specify in detail the content ofdisclosures required in the notes to the financialstatements.

11 See, e.g., Groves, Ray J., ‘‘Overload of FinancialDisclosure Rules is Defeating the Purpose of theExercise,’’ American Banker (Jan. 3, 1995);Beresford, Dennis R. and Hepp, John A., FinancialAccounting Series: Status Report, No. 149–B,‘‘Financial Statement Disclosures: Too Many or TooFew?’’ (May 25, 1995); Deloitte & Touche LLP,Summary Annual Reporting, ImprovingShareholder Communications (1995), at 3–4; Cook,Michael and Sutton, Michael H., ‘‘Summary AnnualReporting: A Cure for Information Overload,’’ Fin.Executive (Jan/Feb 1995). 12 17 CFR 249.220f.


17 CFR Parts 228, 229, 230, 239, 240and 249

[Release Nos. 33–7183; 34–35893; IC–21166; File No. S7–13–95]

RIN 3235–AG49

Use of Abbreviated FinancialStatements in Documents Delivered toInvestors Pursuant to the SecuritiesAct of 1933 and Securities ExchangeAct of 1934

AGENCY: Securities and ExchangeCommission.ACTION: Proposed rule.

SUMMARY: The Securities and ExchangeCommission (‘‘Commission’’) today issoliciting comment on proposedamendments to allow the use ofabbreviated financial statements inannual reports delivered to shareholderspursuant to the proxy rules. Comment isalso solicited on additional approachesto streamlining annual reports toshareholders. Rule changes also areproposed to allow the use of abbreviatedfinancial statements in other disclosuredocuments, including prospectuses, thatare required to be delivered to investors.In order to encourage individualinvestor comments and suggestions, theCommission is including in the Releasean Appendix directed to investors,which will be published separately anddistributed to investors. In addition,during the comment period, theCommission intends to hold focusgroups composed of investors to assessinvestors’ views as to the utility ofsample abbreviated financial statements,as compared with full financialstatements.DATES: Comments on the proposedamendments should be received on orbefore October 10, 1995.ADDRESSES: Comments should besubmitted in triplicate to Jonathan G.Katz, Secretary, Securities and ExchangeCommission, 450 Fifth Street NW.,Washington, DC 20549. Comment lettersshould refer to File No. S7–13–95. Allcomments received will be available forpublic inspection and copying in theCommission’s Public Reference Room,450 Fifth Street NW., Washington, DC20549.FOR FURTHER INFORMATION CONTACT:Craig C. Olinger, Associate ChiefAccountant, at (202) 942–2960, KennethT. Marceron, Staff Accountant, at (202)942–1781, or Elizabeth M. Murphy orWilliam B. Haseltine, Special Counsels,at (202) 942–2910, Division ofCorporation Finance, Securities and

Exchange Commission, 450 Fifth StreetNW., Mail Stop 3–12, Washington, DC20549.SUPPLEMENTARY INFORMATION: TheCommission is proposing amendmentsto Forms S–1, S–2, S–3, S–4, S–6, S–8,S–11, SB–1, SB–2, F–1, F–2, F–3, F–4,F–7, F–8, F–9, F–10, F–80 and 1–A 1 andRegulation D 2 under the Securities Actof 1933 (‘‘Securities Act’’),3 as well asForms 10–K and 10–KSB 4, Rules 13e–3, 13e–4, 14a–3, 14c–3, 14d–1 and 14d–6 5 and Schedules 13E–4F, 14A, 14C,14D–1F, and 14D–9F 6 under theSecurities Exchange Act of 1934(‘‘Exchange Act’’).7 Additionally, a newItem 305 would be added to RegulationsS–B and S–K,8 and new Securities ActRule 435 and new Exchange Act Rules14a–16 and 14c–8 would be created.

I. Executive Summary and BackgroundThe Commission today is publishing

for comment proposals to streamline thefinancial information currently requiredto be delivered to investors inconnection with the annual election ofdirectors pursuant to the Commission’sproxy regulations.9 This initiativeresponds to concerns that the growingcomplexity and volume of financialinformation, particularly that requiredin notes to financial statements,10 renderthe annual report less readable anduseful to the general shareholder body.11

Proponents of annual reportsimplification believe that streamlinedannual reports will allow registrantsboth to communicate more effectivelywith shareholders in the annual reportby being able to highlight key financialitems and to reduce the costs ofpreparing and delivering the annualreport. These commentators are of theview that a large segment of acompany’s shareholder body does notreview and analyze the detailedinformation in the notes to the financialstatements, particularly in determiningwhether to vote for director nominees,and companies therefore should nothave to incur the cost of delivery of thefull set of financial statements in theannual report.

Various approaches have beensuggested to accomplish thestreamlining. One, which is containedin rule amendments proposed today,would permit an eligible registrant touse financial statements withsignificantly abbreviated notes(‘‘abbreviated financial statements’’) inannual reports to shareholders. Theannual report would prominentlyidentify the financial statements asabbreviated and state that the registrantwill provide upon request, and withoutcharge, a copy of the full financialstatements. The full financial statementswould be required to be filed in theregistrant’s annual report on Form 10–K, 10–KSB or 20–F; 12 registrants arealready required to advise shareholdersin the proxy statement or annual reportthat the Form 10–K or 10–KSB will beprovided upon request and withoutcharge. This would continue under theproposed rules.

In summary, disclosure required inthe notes to the abbreviated financialstatements would include:

• the significant accounting policiesof the registrant;

• certain matters materially affectingthe comparability of amounts reportedin the financial statements;

• circumstances identified inexplanatory language added to theindependent accountant’s report,contingencies, loan defaults, andsubsequent events; and

• related party transactions.The abbreviated financial statements

contemplated by the proposed rulewould omit a significant number ofnotes to financial statements that arerequired under GAAP. Appendix A tothis release summarizes the commondisclosures that would be omitted fromthe abbreviated financial statementsunder the proposals. In general, thedisclosures that would be omitted from


13 ‘‘Summary Reporting of FinancialInformation—Moving Toward More ReadableAnnual Reports,’’ Deloitte, Haskins & Sells (1983)(‘‘FERF Report’’).

14 These documents include: (1) prospectusesrequired to be delivered in connection withofferings of securities pursuant to the SecuritiesAct; (2) proxy or information statements required tobe furnished pursuant to Section 14 of the ExchangeAct [15 U.S.C. 78n]; (3) documents furnished toinvestors in connection with tender offers or goingprivate transactions; (4) offering circulars deliveredin connection with Regulation A [17 CFR 230.251–263] offerings; and (5) disclosure required to befurnished in connection with Regulation Dofferings. If the disclosure document is required toinclude financial statements of another entity, suchas an acquired business, significant subsidiary, orguarantor, the registrant also could choose to

deliver abbreviated financial statements of thatentity to investors, provided that the eligibilitycriteria are met.

15 See, e.g., Securities Act Release No. 7053 (April19, 1994) [59 FR 21644] and Securities Act ReleaseNos. 7117, 7118 and 7119 (December 1, 1994) [59FR 65628, 65632, and 65637] adopting amendmentsto Form 20–F and Regulation S–X [17 CFR 210]designed to streamline the financial informationand reconciliation requirements for both foreignand domestic companies.

16 In response to the Financial AccountingStandards Advisory Council’s 1994 Annual FASBAgenda Survey, survey respondents selected‘‘Comprehensive Review of Financial StatementDisclosures’’ from a list of projects not currently onFASB’s agenda and indicated that it should begiven high priority by FASB. While FASB has notyet added a formal project to its agenda, theChairman of FASB has indicated that FASB will bedevoting significant resources to this issue. SeeBeresford, Dennis R. and Hepp, John A., FinancialAccounting Series: Status Report, No. 149–B,‘‘Financial Statement Disclosures: Too Many or TooFew?’’ at 7 (May 25, 1995).

17 Proposed Item 305 of Regulations S–B and S–K. References throughout the release to provisionsof proposed Item 305 of Regulation S–K should beread to include the comparable provisions inproposed Item 305 of Regulation S–B. The twoitems are identical in all substantive respects,except that all but one of the references toRegulation S–X in proposed Item 305 of RegulationS–K are omitted from proposed Item 305 ofRegulation S–B or changed to refer to Item 310 ofRegulation S–B [17 CFR 228.310] (there is areference to Article 2 of Regulation S–X [17 CFR210.2] regarding accountants’ reports in both theproposed Regulation S–K and S–B Items).

18 Proposed Item 305(b)(1) of Regulation S–K.19 Proposed Items 305(b) (1) and (2) of Regulation

S–K. Updating requirements for the abbreviatedfinancial statements in prospectuses and proxystatements would be consistent with the updatingrequirements for the full financial statements.Accordingly, domestic issuers would follow therequirements of Rule 3–12 of Regulation S–X [17CFR 210.3–12], while foreign issuers would followthe requirements of Rule 3–19 of Regulation S–X[17 CFR 210.3–19]. See proposed Regulation S–KItems 305(c) and (f)(2). Pursuant to proposedRegulation S–B Item 305(c), small business issuerswould update their abbreviated financial statementsin accordance with Item 310(d) of Regulation S–B[17 CFR 228.310(d)].

20 The abbreviated financial statement proposalsdo not affect other disclosure requirements, such asthe registrant’s description of business, legalproceedings discussions, supplementary financialinformation, or Management’s Discussion &Analysis (‘‘MD&A’’) (Items 101, 103, 302, and 303of Regulations S–B and S–K [17 CFR 228.101, 103,302 and 303 and 229.101, 103, 302 and 303]).Registrants that currently cross-reference, but donot reiterate, data set forth in the notes to thefinancial statements in the MD&A section of theirdisclosure documents could not cross-referencenotes omitted from the abbreviated financialstatements. It is the current practice of manyregistrants to include supplementary financialinformation pursuant to Item 302 of Regulations S–K and S–B in an unaudited note to the financial

Continued

the abbreviated financial statementscontain quantitative detail and relatedexplanatory information regardingamounts included in the financialstatements. Detailed quantitativedisclosures and related explanatorymaterial regarding many off-balancesheet items also would be omitted. Forexample, disclosure enumerating thecomposition of inventories and fixedassets, the terms and conditions ofborrowings, the components of incometax expense and related deferred taxes,the status of pension fund assets andobligations, the assets and operatingresults of business and geographicsegments, the details of restructuringcharges and the characteristics of on-balance sheet and off-balance sheetfinancial instruments (includingderivative instruments), among otherthings, would be omitted.

Other approaches for streamlining theannual report to shareholders includethe concept of a summary annual report,the subject of a 1983 research studyprepared for the Financial ExecutivesResearch Foundation (‘‘FERF’’).13 Thesummary annual report concept isdiscussed in this release, and commentsare solicited on the approach. Commentis also being solicited as to whether theCommission should allow registrantstotal flexibility, subject to therequirements of state corporate law andtrading market listing agreements, byrescinding the proxy requirementsregarding delivery of the annual reportto shareholders.

Similar concerns about thecomplexity and volume of financialinformation, particularly in the notes tothe financial statements, as well as theuse of the annual report to shareholdersin the integrated disclosure system,underlie additional rule proposals thatwould allow the use of abbreviatedfinancial statements in the full spectrumof other disclosure documents requiredto be delivered to investors, such asprospectuses and transactional proxystatements.14 Use of abbreviated

financial statements in thesecircumstances raises additional issues,including the extent to which thosemaking investment decisions would bewilling to rely on the abbreviatedfinancial statements and the practicalityof requiring delivery of full financialstatements upon request in varioustransactional contexts. A number ofCommission registration forms, mostnotably Forms S–3 and F–3, already usea model of incorporation by reference,and delivery of incorporated documentsupon request. The Commission invitescomment as to the appropriateness andutility of such approach for bothinvestors and issuers generally, andspecifically with respect to each class ofdisclosure document covered by theproposed rulemaking.

The Commission recognizes that thefeasibility of this initiative requires theconfidence of registrants that they willnot be subject to liability for failure todeliver the full financial statements inthe annual report or other mandateddisclosure documents. The rulesproposed today include a safe harborfrom liability for non-delivery of thenote disclosures allowed to be excludedfrom the abbreviated financialstatements. The proposals would notchange the disclosure currently requiredoutside the company’s financialstatements in mandated disclosuredocuments.

This initiative is part of theCommission’s overall efforts to improvethe effectiveness and efficiency of itsdisclosure system.15 Both theCommission and the FinancialAccounting Standards Board (‘‘FASB’’)recognize that an important part of thateffort is to evaluate current financialdisclosures to assess their continuedutility and cost effectiveness.16

II. Proposed Amendments To PermitUse of Abbreviated FinancialStatements

A. Content of Abbreviated FinancialStatements

The proposed rule amendmentswould permit eligible registrants to useabbreviated financial statements inspecified disclosure documentsdelivered to shareholders and investors.The content of the abbreviated financialstatements is set forth in proposed newItem 305(b) of Regulations S–K and S–B.17

The face of the abbreviated financialstatements would have to include aprominent statement identifying themas such.18 Abbreviated financialstatements would include balancesheets, statements of income and cashflows, and statements of changes instockholders’ equity that conform withGAAP and Regulation S–X with respectto classifications, measurements andperiods presented.19 The notes to theabbreviated financial statements wouldbe limited to the items specified inproposed Item 305. 20


statements. Registrants using abbreviated financialstatements would be required to disclosesupplementary financial information outside of thefinancial statements elsewhere in the disclosuredocument.

21 Proposed Item 305(b)(3) of Regulation S–K.22 Disclosure of Accounting Policies.23 Disclosures responsive to a particular matter

may emanate from requirements in variousaccounting pronouncements. SAS No. 69, TheMeaning of Present Fairly in Conformity withGenerally Accepted Accounting Principles in theIndependent Auditor’s Report, defines the sourcesof accounting principles generally accepted in theUnited States.

24 Proposed Item 305(b)(3)(i)–(xiii) of RegulationS–K.

25 The note to the abbreviated financial statementscontaining basis of presentation disclosures that isincluded by small business issuers in their deliverydocuments would refer only to GAAP since smallbusiness issuers are not required to comply withRegulation S–X.

26 ‘‘Related pronouncement’’ as used throughoutthis section refers to a pronouncement constitutingGAAP as defined in SAS No. 69 that requiresdisclosure regarding a matter that would have to bedisclosed in the notes to the abbreviated financialstatements under proposed Item 305 of RegulationS–K.

27 Accounting Changes.28 Business Combinations.

29 Reporting the Results of Operations—theEffects of Disposal of a Segment of a Business, andExtraordinary, Unusual and Infrequently OccurringEvents and Transactions.

30 Reports on Audited Financial Statements.31 Accounting for Contingencies.32 Rule 4–08(c) of Regulation S–X [17 CFR 210.4–

08(c)].

As proposed, the disclosures requiredin the notes to the abbreviated financialstatements are intended to be anextraction of all disclosures included inthe registrant’s full financial statementsthat are responsive to the mattersspecified by Item 305.21 Disclosuresresponsive to a particular matter may belocated in several places in the notes tothe full financial statements. ProposedItem 305 would require all disclosuresincluded in the notes to the fullfinancial statements that are responsiveto a matter specified in Item 305 to beincluded in the notes to the abbreviatedfinancial statements, regardless of thesource of the underlying disclosurerequirement or the location of thedisclosure in the full financialstatements. For example, requirementsregarding the disclosure of accountingpolicies are primarily contained inAccounting Principles Board (‘‘APB’’)Opinion No. 22,22 but various otherFASB and AICPA pronouncementsspecifically require disclosure ofaccounting policies with respect tocertain matters.23 In practice, someregistrants include all accounting policydisclosures in a single note, whileothers integrate certain accountingpolicy disclosures within the detaileddisclosure of the matters to which thepolicies relate. Under the proposedrequirements, registrants would have toidentify and describe in the notes to theabbreviated financial statements allsignificant accounting policies used inthe preparation of the financialstatements, regardless of the particularmanner in which they are presented inthe notes to the full financialstatements.

The specific matters proposed to berequired in the notes to the abbreviatedfinancial statements are as follows: 24

1. Basis of presentation. A note to theabbreviated financial statements wouldexplain that although such statementswere prepared using GAAP formeasurement and classification,substantially all of the notes necessaryfor a fair presentation in accordancewith GAAP and Regulation S–X have

been omitted.25 The note also wouldstate that the disclosures in the notes tothe abbreviated financial statements arelimited to those matters specified byCommission rules, and comply withCommission rules for presentation ofabbreviated financial statements. Thenote would contain a reference to thecomplete note disclosures in the fullfinancial statements.

2. Accounting policies. A descriptionof all significant accounting policiesused in the preparation of the financialstatements, including a description ofthe accounting principles followed bythe reporting entity and the methods ofapplying those principles thatmaterially affect the determination offinancial position, cash flows or resultsof operations, as specified by APBOpinion No. 22 and relatedpronouncements, would be provided.26

3. Changes in accounting principle.The nature of, and justification for, achange in accounting principle, and theeffects of the change, as specified byAPB Opinion No. 20 27 and relatedpronouncements, would be furnished.

4. Restatements and reclassifications.The nature and effects of a correction ofan error in previously issued financialstatements, as specified by APB OpinionNo. 20 and related pronouncements,would be furnished. Also, the natureand reasons for a change in thereporting entity, and effects of thechange, as specified by APB OpinionNo. 20 and related pronouncements,would be furnished. Further, the natureand effects of reclassificationsmaterially affecting amounts reported inpreviously issued financial statementswould be explained.

5. Changes in accounting estimate.The nature and effects of changes inaccounting estimate, as specified byAPB Opinion No. 20 and relatedpronouncements, would be furnished.

6. Business combinations. The natureof business combinations during themost recent fiscal year and quantitativedisclosures of the effects of the businesscombinations, as specified by APBOpinion No. 16 28 and relatedpronouncements, would be furnished.

7. Discontinued operations. Thenature of business operations that werediscontinued during the most recentfiscal year, and quantitative disclosuresof the effects of the discontinuation, asspecified by APB Opinion No. 30 29 andrelated pronouncements, would befurnished.

8. Circumstances identified inexplanatory language added to theindependent accountant’s standardreport. If the independent accountant’sreport on the entity’s full financialstatements includes explanatorylanguage added to the standard report,a note would describe the circumstancesidentified in SAS No. 58 30 necessitatingthe explanatory language and wouldinclude all disclosure set forth in notesto the full financial statements thatbears upon an understanding of thosecircumstances. Disclosure would also beprovided for explanatory paragraphsthat emphasize a matter regarding thefinancial statements.

9. Loss contingencies. If the entity isexposed to loss contingencies for whicha loss exceeding the amount accrued inthe financial statements is reasonablypossible, a note would describe thenature of the loss and disclose either theamount or range of reasonably possibleadditional loss, or management’s viewthat such amount or range of loss cannotbe estimated, as specified by SFAS No.5 31 and related pronouncements.

10. Events of default under creditagreements. As presently required byRegulation S–X, 32 the facts and amountsconcerning any default in principal,interest, sinking fund, or redemptionprovisions with respect to any materialissue of securities or credit agreements,or any breach of covenant of a relatedindenture or agreement, which defaultor breach existed at the date of the mostrecent balance sheet date being filed andhas not been subsequently cured, wouldbe described. If a default or breachexists but acceleration of the obligationhas been waived for a stated period oftime beyond the date of the most recentbalance sheet being filed, the amount ofthe obligation and the period of thewaiver would have to be stated.

11. Related party transactions. Thenature of related party relationships,and a description of transactions,amounts and balances, as specified by


33 Related Party Disclosures.34 Financial Reporting Entities and

Reorganization Under the Bankruptcy Code.35 Rule 5–02.31(b) of Regulation S–X [17 CFR

210.5–02.31(b)]. See also Accounting Series Release25 and Staff Accounting Bulletins 78 and 86, Quasi-Reorganizations.

36 Disclosure of Information about FinancialInstruments with Off-Balance Sheet Risk andFinancial Instruments with Concentrations of CreditRisk, Disclosures about Fair Value of FinancialInstruments, and Disclosure about DerivativeFinancial Instruments and Fair Value of FinancialInstruments, respectively.

37 A draft of a Final Statement on stockcompensation has been sent to the FASB’s Stock

Compensation Task Force and other interestedpersons for review and comment. FASB hopes toissue a Final Statement in July.

38 In recognition of developments in electronicmedia, the staff issued an interpretive letter tofacilitate the use of electronic transmission tosatisfy prospectus delivery requirements. Brown &Wood (Feb. 17, 1995). The Division of CorporationFinance staff, in addition to issuing the Brown &Wood letter, is considering generally delivery underthe Securities Act of prospectuses through othernon-paper media (e.g., audiotapes, videotapes,facsimile, directed electronic mail, and CD ROMs).The staff anticipates submitting to the Commissionin the near future recommendations intended bothto facilitate compliance with the Securities Act’sprospectus delivery requirements and to encouragecontinued technological developments of non-paperdelivery media.

39 To date, 6,250 Exchange Act registrants arefiling on EDGAR, and 2,500 under the InvestmentCompany Act. The remaining domestic registrantswill be required to file on EDGAR by May 1996.Foreign issuers may file on EDGAR on a voluntarybasis.

40 For example, EDGAR filings are availablethrough Dow Jones and Lexis/Nexis. One of thesubscribers to the EDGAR data base has made itavailable on the Internet.

SFAS No. 57 33 and relatedpronouncements, would be furnished.

12. Bankruptcies and quasi-reorganizations. Entities entering into,operating under, or emerging fromproceedings under the federalbankruptcy code during the most recentfiscal year would have to provide all thedisclosures specified by AICPAStatement of Position No. 90–7.34 Aspresently required by Regulation S–Xand related interpretations,35 entitieseffecting a quasi-reorganization duringthe most recent fiscal year woulddisclose the nature and effects of thequasi-reorganization.

13. Subsequent events. All eventsoccurring subsequent to the date of themost recent balance sheet for whichdisclosure was required to be made inthe full financial statements would bedisclosed.

If none of the matters identified inItems 3 through 13 above apply to aregistrant, the note disclosures includedin abbreviated financial statements ofthat registrant would be limited to adescription of the basis of presentationof the abbreviated financial statementsand the registrant’s accounting policies.

The types of disclosures commonlyprovided in full financial statementsthat would be omitted from the notes tothe abbreviated financial statements aresummarized in Appendix A to therelease. Comment is requested as towhether any of the items specified forinclusion should not be deemednecessary in a presentation ofabbreviated financial statements, orwhether there are other specific itemsincluded in full financial statementsthat should be required disclosure inabbreviated financial statements inorder to provide essential information toinvestors. For example, should thedisclosures regarding the amounts,terms, risks, or fair values of financialinstruments (including derivatives)specified by SFAS Nos. 105, 107, and119,36 or the information about stockoptions valuation to be required by theforthcoming FASB standard on stockcompensation,37 be required?

Proposed Item 305 specifies everymatter that would require disclosure inthe notes to the abbreviated financialstatements; the Item does not providefor the discretionary addition byregistrants of note disclosures regardingother matters. Comment is solicited asto whether the Item should allow foradditional discretionary notedisclosures. Commenters remarking onthis issue are asked to address whether,if proposed Item 305 expresslypermitted the discretionary notedisclosures: (1) registrants would bemore or less likely to use theabbreviated financial statement format;(2) the disclosures included in the notesto the abbreviated financial statementswould be more or less useful toinvestors; and (3) whether registrantswould feel compelled routinely to addnote disclosures regarding discretionarymatters similar to those included at thediscretion of other registrants.

As an alternative to the disclosuresspecified in the proposed rules,comment is requested as to whethernote disclosures in abbreviated financialstatements should be limited to onlythose matters regarding the manner inwhich the full financial statements wereprepared. For example, shoulddisclosures be limited to a descriptionof the registrant’s significant accountingpolicies, changes in those policies, andmaterial restatements andreclassifications of previously reportedamounts? Should disclosures be furtherlimited to only include changes in thosematters, and to exclude descriptions ofaccounting policies that have notchanged during the reporting period?Should the abbreviated financialstatements also include a list of thenotes that have been omitted?

B. Use of Abbreviated FinancialStatements—Specified DisclosureDocuments

As discussed in the introduction tothis release, the primary impetus to theabbreviated financial statementinitiative has been suggestions tostreamline the financial informationrequired to be included in annualreports to shareholders, so as to makethe reports more readable and useful tothe general shareholder body.Underlying these suggestions is thepremise that, at least in the case ofvoting on the election of directors,many, if not most, shareholders do notuse the detailed information containedin the financial statement footnotes tomake their voting decision.

The proposed amendments alsowould extend the abbreviated financialstatement approach to other disclosuredocuments required to be delivered toinvestors, including those prospectusescurrently required to include financialstatements. While the transactionalcontext of these documents and the useof the information as a basis for aninvestment decision present additionalissues to those raised by the annualreport, the Commission is interested incommenters’ views as to whether theconcept of allowing delivery of moresummary information, while assuringthat more extensive information isavailable in Commission filings andpromptly upon request from thecompany, should be extendedthroughout the Commission’s disclosurescheme. This model already currentlyexists in the distinction between theannual report required to be delivered toshareholders and the Form 10–K annualreport required to be filed with theCommission. Registration on Form S–2similarly uses this model.

The Commission also solicitscomment as to the extent to which theavailability of financial disclosuredocuments through electronic mediawarrants a reassessment of theregulatory framework that is based ondelivery of disclosure documents inhard copy to investors.38 By mid-1996,most registrants under the SecuritiesAct, Exchange Act and InvestmentCompany Act will be required to filetheir disclosure documentselectronically through the Commission’sElectronic Data Gathering, Analysis andRetrieval (‘‘EDGAR’’) system.39 Publicaccess to these reports is currentlyavailable through a wide variety ofprivate vendors, as well as through theCommission.40 Today, it is estimated


41 Gates, Bill, ‘‘In Praise of a Free MarketApproach,’’ The Guardian (June 22, 1995) at 7.

42 See Langevoort, Donald C., ‘‘InformationTechnology and the Structure of SecuritiesRegulation, Harvard Law Review (February 1985),and Arnold, Jerry L., Greene, Edward F., and Keller,Earl C., ‘‘The Impact of Electronic Technology at theS.E.C.: An Analysis of Policies Governing theContent and Dissemination of CorporateDisclosures’’ (Financial Executives Institute andSEC and Financial Reporting Institute, 1987).

43 Proposed Rules 435(c); 13e–3(e)(4)(iv); 13e–4(d)(1)(i); 14a–16; 14c–8 and 14d–1(b)(3)(iii).

44 15 U.S.C. 78l.45 Exchange Act Rules 14a–3 and 14c–3.

46 As noted above, full, rather than abbreviated,financial statements would be required in Forms10–K, 10–KSB, and 20–F. Technical revisionswould be made to Forms 10–K and 10–KSB.

47 A number of companies have used a variationof the summary annual report approach followingstaff interpretative letters issued in 1987. SeeGeneral Motors (avail. January 20, 1987) andMcKesson Corp. (avail. May 15, 1987). Under theinterpretative guidance in the letters, a registrantmay provide summary financial information in theannual report to shareholders, provided the fullfinancial statements are otherwise delivered toshareholders, for example, as an attachment to theannual meeting proxy statement.

48 Applicable state law and self-regulatoryorganization rules may require that certain specifiedfinancial information be furnished to securityholders on an annual basis.

49 15 U.S.C. 78o(d).50 Exchange Act Release No. 8000 (Dec. 5, 1966)

[31 FR 15750].

that more than 16% of the public hasaccess through home computers to thisinformation.41 These developments havechanged and will continue to changehow investors access information aboutpublic companies, and provide asignificant opportunity to enhance theefficacy and efficiency of the disclosureprocess under the federal securitieslaws.42

The manner in which the abbreviatedfinancial statements scheme wouldapply to specified disclosure documentsvaries according to the nature of thedocument, as described in this section.In all cases, the rules would providethat the full financial statements wouldbe deemed a part of the relateddisclosure document, so that liability forthis information would remainunchanged.43 Comment is requestedgenerally on whether the proposedsystem of delivering abbreviatedfinancial statements to investors andfiling the full financial statementswould benefit the investing public.Comment also is solicited as to whetherissuers should be permitted to includeabbreviated financial statements in eachtype of disclosure document covered bythe proposed amendments.

1. Annual Reports to Shareholdersa. Abbreviated Financial Statements.

Companies that are subject to the proxyand information statement rules becausethey have a class of securities registeredunder Section 12 of the Exchange Act 44

must furnish shareholders an annualreport containing specified information,including financial statements.45 Underthe proposal, registrants could choose touse abbreviated financial statements intheir annual reports to shareholders. Ifthe Form 10–K or 10–KSB containingthe full financial statements was on filewith the Commission, the copy of theannual report to shareholders wouldsimply be submitted to the Commission,as is currently the case. If the Form 10–K or 10–KSB was not yet on file, theannual report to shareholders submittedto the Commission would have to beaccompanied by a copy of the fullfinancial statements. This is to assure

the availability of the full financialstatements in the Commission’s publicfiles at the time the annual report toshareholders with the abbreviatedfinancial statements is being used.

Under the proposed rules, registrantsusing abbreviated financial statementsin their annual report to shareholderswould not be able to incorporate thefinancial statements from such annualreport, but would have to file the fullfinancial statements in their Form 10–Kor 10–KSB report filed with theCommission. This would assure thatinvestors would be able to easily accessthe complete financial statements inCommission filings.46 Comment isrequested as to whether registrantsshould be permitted to incorporate theabbreviated financial statements fromthe annual report to shareholders andinclude the additional information (i.e.,the omitted notes and the accountant’sreport on the full financial statements)in the Form 10–K or 10–KSB whenfiled.

b. Summary Annual Reports. Anotheralternative to simplifying the annualreport requirements is the summaryannual reporting concept that was thesubject of the 1983 FERF Report. Thesummary annual report discussed in theFERF Report contemplated use ofcondensed financial statements withouttraditional financial statement notes.Certain information customarilycontained in the notes, e.g. materialaccounting changes, significantacquisitions and dispositions, materialcontingencies, specified information onsignificant equity investees, would beincluded in the summary annual reportunder the Disclosure Guidelinesoutlined in the FERF Report. Thesummary report would not include thefull MD&A, or the full stock price anddividend information and businessdescription currently mandated byRules 14a–3 or 14c–3.47 Under thesummary annual report approach,registrants would still be required todeliver financial information toshareholders annually. The rules couldprovide significantly greater flexibilityas to the form and content of such

reports and could expressly permit theuse of condensed financial statements.The disclosure guidelines included inthe FERF Report are set forth inAppendix B to this release.

c. Rescission of the Rules Governingthe Annual Report to Shareholders.Rescission of the rules governing theannual report to shareholders wouldgive registrants the most flexibility indetermining how to communicatedirectly with their shareholders, subjectto requirements of state corporate lawand any trading market for theregistrant’s securities.48

The Exchange Act’s periodic reportingprovisions require the filing of annualand quarterly reports with theCommission. The requirement to deliverspecified information, including auditedfinancial statements, was implementedas part of the Commission’s proxy rules.Registrants not subject to theCommission’s proxy rules, such asforeign private issuers, registrantssubject to Section 15(d) 49 reportingrequirements, or registrants with onlySection 12 registered debt securities, arenot required to deliver annual reports totheir investors.

In adopting the requirement to deliveraudited financial statements and otherspecified information to shareholdersprior to their voting in the annualelection of directors, the Commissionnoted that existing common practicewas to deliver this information.However, in formalizing the practice, itreaffirmed its belief that the informationwas important to enable investors ‘‘toappraise the financial position andresults of operations of the issuer.’’ 50

Comment is requested as to whetherthe Commission should continue torequire a registrant to deliver to itsshareholders full financial statements,MD&A and the other informationspecified by Rules 14a–3 and 14c–3 inadvance of the annual election ofdirectors. If not, should the rules beamended to provide for a morestreamlined disclosure using the modelof abbreviated financial statementsproposed today, the summary annualreport concept outlined in the FERFreport or some other simplificationapproach? Should the currentrequirement simply be rescinded andregistrants permitted total discretion todetermine the form and content of theirannual report to shareholders, subject tothe requirements of state corporate law


51 Part I of Securities Act registration statementssets forth the information required in theprospectus.

52 Part II of Securities Act registration statementssets forth the information not required in theprospectus. A new Part II Item would be added toeach of the forms to require filing of the fullfinancial statements with the Commission.

53 Forms S–2, S–3, F–2, and F–3.54 Since Form S–3 and F–3 registrants generally

incorporate their financial statements into theprospectus by reference from Exchange Act reportsand are not required to deliver this information,they ordinarily would not use abbreviated financialstatements, but the forms would be amended so thisoption would be available.

55 Forms S–2, F–2, S–3, F–3, S–4 and F–4 requirefinancial statements of the registrant to be restatedif: (1) there has been a change in accountingprinciples or a correction of an error where suchchange or correction requires a material retroactiverestatement of financial statements; (2) where oneor more business combinations accounted for by thepooling of interests method of accounting have beenconsummated subsequent to the most recent fiscalyear and the acquired businesses, considered in theaggregate, are significant pursuant to Rule 11–01(b)[17 CFR 210.11–01(b)]; or (3) in certain situationsinvolving a material disposition of assets not in theordinary course of business.

56 With respect to Form S–2, in addition to theoptions currently available, a registrant notchoosing to deliver its Form 10–K could elect toinclude abbreviated financial statements in theprospectus, or instead choose to deliver with theprospectus its latest annual report to securityholders that included abbreviated financialstatements. With respect to Form S–8, documentsrequired to be delivered upon request, such as theannual report to security holders, could containabbreviated financial statements. No financialstatements are required in the prospectus orregistration statement other than those incorporatedby reference. Accordingly, this form would not beamended, except for a technical provision in PartII to assure that the full financial statements areincorporated by reference (proposed revision toItem 3(a) of Form S–8).

57 See Part II.C below for further discussion ofForms S–4 and F–4.

58 Pursuant to Item 17(b) of Form S–4, if thecompany being acquired is not subject to thereporting requirements of either Section 13(a) [15U.S.C. 78m(a)] or 15(d) of the Exchange Act, or,because of Section 12(i) [15 U.S.C. 78l(i)] of theExchange Act, has not furnished an annual reportto security holders pursuant to Exchange Act Rule14a–3 or 14c–3 for its latest fiscal year, theregistrant would furnish financial statements aswould have been required to be included in a Rule14a–3 or 14c–3 annual report except that thefinancial statements need not be audited in certaincircumstances.

and stock exchange or NASDAQ listingrequirements and antifraudprohibitions? If the requirements wererescinded, do commenters expect thatregistrants would discontinue deliveryof annual reports if not subject to otherrequirements to do so? If the annualreport rules were amended to allow useof abbreviated financial statements orsummary annual reports or rescindedaltogether, should the rules requireregistrants to provide a mechanism bywhich shareholders could make astanding request for the company todeliver annually a copy of the Form 10–K or 10–KSB report? If the annual reportrules were rescinded, do commentersexpect that those registrants deliveringannual reports would include fullfinancial statements, or would theyprovide summary financial data? Arethere other alternatives to streamliningthe annual report to shareholders?

2. Securities Act Disclosure DocumentsUnder the proposed amendments, the

Part I item in each Securities Actregistration form 51 requiring theregistrant to include financialstatements in the prospectus deliveredto investors would be amended toprovide eligible registrants with theoption of including in the prospectuseither full or abbreviated financialstatements. Registrants choosing toinclude full financial statements in theprospectus would deliver to investorsand file with the Commission the sameinformation, in the same format, thatthey deliver and file under currentrequirements.

For registration statements on formsnot permitting incorporation byreference of financial statements,registrants choosing to includeabbreviated financial statements in theprospectus would put the informationrequired by proposed Item 305 in PartI. The full financial statements would befiled in Part II of the registrationstatement,52 but not delivered toinvestors except upon specific request.If requested, a copy of the full financialstatements would have to be provided.Comment is requested as to whether, inorder to avoid unnecessary duplicationin filing, the proposal should permit aregistrant either to file the full financialstatements in their entirety in Part II, orto file only the remaining financialinformation—that is, the independent

accountant’s report on the full financialstatements plus the notes omitted fromthe disclosure document, which, takentogether with the abbreviated financialstatements, would constitute the fullfinancial statements meeting therequirements of GAAP and RegulationS–X. This latter option would befeasible only if the omitted notes weregrouped so the presentation would beclear when the abbreviated financialstatements were considered togetherwith the omitted notes. If the option tofile only the remaining financialinformation in Part II were adopted,should delivery of the remainingfinancial information suffice in theevent of a request from a potentialinvestor? Comment is solicited onwhether the option to file only theremaining financial information wouldbe useful to registrants, whether thepresentation would be clear to membersof the financial community obtainingand using this information, and whethersuch a presentation would be permittedby existing auditing standards.

In addition, comment is solicited onwhether, rather than requiring fullfinancial statements to be physicallyfiled, in whole or in part, in Part II ofthe registration statement, incorporationby reference should be permitted. If theregistrant had previously filed fullfinancial statements for the same periodas required in the related disclosuredocument, for example in a report onForm 10–K, would it be acceptable toprovide this information byincorporation by reference, which iscurrently not permitted for any of the‘‘long form’’ registration statements?

Registrants eligible to use short formregistration statements providing for theincorporation by reference of previouslyfiled documents 53 also could elect touse abbreviated financial statements.54

In general, full financial statementswould not be required to be filed in PartII of these forms, since these would beincorporated by reference from theregistrant’s periodic Exchange Actfilings. Where restated financialstatements of the registrant, or financialstatements of businesses acquired or tobe acquired, are not incorporated byreference from a previously filed reportand therefore required to be included ina prospectus, abbreviated financialstatements of those entities could beincluded in the prospectus and

delivered to investors.55 The fullfinancial statements would be requiredto be filed with the Commission in PartII of the registration statement, anddelivered to investors upon request.56

With respect to securities registeredon Form S–4 or F–4, registrants andcompanies being acquired 57 would havethe same options regarding delivery ofabbreviated financial statementsdescribed above, depending on whetherthey furnish the Form S–1, S–2, or S–3 level of disclosure.58 Comment issolicited on whether the use ofabbreviated financial statements isappropriate in the context of a businesscombination. It appears thatstreamlining the financial informationpresented to investors would beparticularly useful in this context,where the information for the registrantand other entities can grow quitevoluminous. Comment also is solicitedon whether the current requirement inForms F–4 and S–4 that, ifincorporation by reference is used, theprospectus must be sent to securityholders no later than 20 business daysprior to the meeting or the date onwhich action is to be taken should also


59 General Instruction A.2 to both Forms F–4 andS–4.

60 Item 901(c) of Regulation S–K [17 CFR229.901(c)].

61 This appended information would be publiclyavailable unless the related proxy or information

statement was the subject of a confidentialtreatment request.

62 17 CFR 249.308a, 249.308b.63 Item 14 of Schedule 14A.64 See Rules 13e–3, 13e–4, and 14d–6; Schedules

13E–3 [17 CFR 240.13e–100], 13E–4 [17 CFR240.13e–101], and 14D–1 [17 CFR 240.14d–100].

65 Proposed Item 305(a)(1) of Regulation S–K.66 Proposed Item 305(a)(2) of Regulation S–K.

67 Rules 3–05, 3–09 and 3–10 of Regulation S–X[17 CFR 210.3–05, 3–09 and 3–10] and Item 310(c)of Regulation S–B [17 CFR 228.310(c)] require thefinancial statements of a business acquired or to beacquired, 50 percent or less owned entity accountedfor by the equity method, or guarantor to beincluded in registrants’ disclosure documents incertain circumstances.

68 Proposed Item 305(a) of Regulation S–K.69 Proposed Item 305(d) of Regulation S–K.

Financial statements of other entities may beincluded in Commission filings in certaincircumstances other than those specified by Rules3–05, 3–09 and 3–10 of Regulation S–X. Theproposed rules also would permit the use ofabbreviated financial statements of those entities,provided that all conditions for their use areotherwise met.

apply when abbreviated financialstatements are being used.59

The proposals would apply to filingsrelating to roll-up transactions, whetheror not involving a Form F–4 or S–4.60

Comment is solicited on whetherabbreviated financial statements shouldbe permissible in the roll-up context.Since roll-ups are subject to a 60 daysolicitation period, investors desiringfull financial statements would have theopportunity to send for them andconsider them before making a voting ortendering decision.

Under the proposed amendments,abbreviated financial statements couldbe included by eligible issuers inoffering statements on Form 1–A underRegulation A and furnished topurchasers of securities offeredpursuant to Regulation D. Comment issolicited on whether it is appropriate toprovide issuers conducting exemptofferings pursuant to Regulation A or Dwith the option to distribute abbreviatedfinancial statements to investors, andwhether such issuers would find this tobe a useful option.

Since, under current requirements,Regulation D issuers are required tofurnish financial statement informationto purchasers, but are not required tofile this information with theCommission, issuers opting to furnishabbreviated financial statements topurchasers would not be required to filethe full financial statements with theCommission. They would, however,have to deliver the full financialstatements to requesting purchasers.Comment is solicited as to whetherRegulation D issuers choosing todistribute abbreviated financialstatements to purchasers should have tofile the full financial statements withthe Commission, and if so, the methodby which they should be filed. Specificconsideration should be given towhether the fact that Regulation Dissuers would not have to file the fullfinancial statements with theCommission would impair theobjectives of the proposed amendments.

3. Proxy and Information StatementsRegistrants could use abbreviated

financial statements in proxy andinformation statements requiringfinancial statements. The full financialstatements would be appended to theproxy or information statement filedwith the Commission and delivered tosecurity holders only upon request.61 It

would not, however, be necessary toappend the information if the fullfinancial statements for the same periodhad previously been filed in theregistrant’s Form 10–K or 10–KSB andany Forms 10–Q or 10–QSB 62 necessaryto provide interim financial disclosure.Proxy or information statements formergers or other businesscombinations,63 which permitincorporation by reference in a mannercomparable to that in Form S–4registration statements, could includeabbreviated financial statements in thesame manner as Form S–4.

4. Tender Offers and Going PrivateTransactions

Currently, the rules governing tenderoffers and going private transactionspermit the delivery to investors ofsummary financial information, withfull financial statements being filed withthe Commission in the associatedSchedule.64 As proposed, abbreviatedfinancial statements could be used forthese transactions as well, whetherfinancial statements are required in thedisclosure document or includedvoluntarily. Comment is solicited onwhether the eligibility requirementsshould vary depending on whether thefinancial statements involved are thoseof the bidder, the affiliate engaging inthe transaction, or the subject company.

C. Eligibility to Use AbbreviatedFinancial Statements

As proposed, both reporting and non-reporting registrants would be permittedto include abbreviated financialstatements in the specified disclosuredocuments delivered to investors, inlieu of full financial statements requiredby the applicable form, provided thattwo conditions are met. First, the reportof the independent accountant on thefull financial statements of the registrantmust express an opinion that isunqualified as to scope of the audit andas to accounting principles used, andmust not contain a disclaimer ofopinion.65 Second, a reporting registrantwould have to be current in filing all ofits Exchange Act reports at the time theabbreviated financial statements aredelivered.66 Comment is requested as towhether a further condition should bethat an issuer filing reports under theExchange Act must have timely filed all

required reports during the most recent12 months, or since becoming subject tothe Exchange Act, whichever is shorter.

Comment also is requested as towhether use of the proposed rule shouldbe limited to companies that are subjectto Section 13(a) or 15(d) of the ExchangeAct, precluding the use of abbreviatedfinancial statements in initial publicofferings. If so, should the rule containa reporting history requirement, e.g., 12or 18 months? Comment also isrequested as to whether other eligibilitycriteria should be established, such assize of the issuer or other condition.Comment is further requested onwhether eligibility should be limitedbased on certain financial statementattributes.

In addition to financial statements ofthe registrant, disclosure documentsmay be required to include financialstatements of other entities, such as abusiness acquired or to be acquired, 50percent or less owned entity accountedfor by the equity method, or guarantor.67

The proposed rules would baseeligibility for the use of abbreviatedfinancial statements of such entities ona combination of: (1) the registrant’seligibility, i.e., the registrant would haveto have filed with its full financialstatements an acceptable independentaccountant’s report and be current in itsfiling of Exchange Act reports; 68 and (2)the acceptability of the independentaccountant’s report on the other entity’sfull financial statements.69 Whether theother entity had filed all requiredExchange Act reports would not affectthe registrant’s ability to includeabbreviated financial statements of thatentity. The same criteria would apply tothe use of abbreviated financialstatements of the company beingacquired in a registration statement onForm S–4 or F–4 or a merger proxy orinformation statement.

Comment is requested as to whetherthis eligibility standard is appropriateregarding financial statements of acompany other than the registrant.Comment also is requested concerning


70 15 U.S.C. 80a–1, et seq.71 17 CFR 274.11b.72 17 CFR 274.11c.73 In order to provide Canadian issuers using the

MJDS with the same flexibility to deliver disclosuredocuments with abbreviated financial statements asall other issuers, the Commission proposes toamend the MJDS registration forms to permiteligible Canadian issuers to include abbreviatedfinancial statements in MJDS disclosure documentsdelivered to U.S. investors, notwithstanding theCanadian requirements that would otherwise apply.

74 See Items 17 and 18 of Form 20–F.75 17 CFR 210.3–19. Proposed Item 305(f)(2) of

Regulation S–K.76 Proposed Item 305(f)(1) of Regulation S–K.

77 Proposed Item 305(b)(5)(i) of Regulation S–K.While interim financial statements prepared underexisting rules (Article 10 of Regulation S–X) omitsubstantially all footnote disclosures required underGAAP, disclosures required to be included underArticle 10 differ in certain respects from thoseproposed for annual abbreviated financialstatements. For example, Article 10 calls fordisclosure of material changes in the status of long-term contracts, while Item 305(b)(3) does not. Ifissuers were not required to conform the basis ofpresentation of annual and interim financialstatements, certain matters required to be disclosedin interim financial statements would be includedin a disclosure document that would not have beendisclosed in the abbreviated annual financialstatements, had the matter occurred during the mostrecently completed fiscal year.

whether the ability of a registrant toinclude abbreviated financial statementsof a third party should be based solelyon the registrant’s eligibility, or whetherdifferent or additional eligibility criteriashould be established. For example,should a Form S–4 registrant bepermitted to include abbreviatedfinancial statements of a target companyif the target company has an acceptableindependent accountant’s report on itsfull financial statements but theregistrant does not satisfy theabbreviated financial statementeligibility criteria?

Investment companies registeredunder the Investment Company Act of1940,70 and business developmentcompanies, a type of investmentcompany with securities registeredunder Section 12 of the Exchange Act,would not be eligible to use abbreviatedfinancial statements. The Commissiondoes not believe that it is necessary toextend the proposed amendments tothese types of companies because theygenerally have fewer note disclosures.As proposed, the amendments wouldallow insurance companies that are theissuers of variable life insurancecontracts and register on Form S–6under the Securities Act to provideabbreviated financial statements in theprospectus for these types of securities.Insurance companies that issue variableannuity contracts and register on FormsN–3 71 or N–4 72 would continue to berequired to provide their full financialstatements, which currently are madeavailable to investors only upon requestin a Statement of AdditionalInformation. The Commission requestscomment on whether insurancecompanies should be permitted to useabbreviated financial statements inconnection with the sale of variableannuity contracts.

D. Foreign IssuersPursuant to the proposed

amendments, foreign issuers that meetthe eligibility requirements would beable to elect to include abbreviatedfinancial statements in delivereddisclosure documents. This wouldinclude Canadian issuers using themultijurisdictional disclosure system(‘‘MJDS’’).73 As is currently the case

with full financial statements of foreignissuers, the informational content of theabbreviated financial statements offoreign issuers would have to besubstantially similar to the abbreviatedfinancial statements of domesticissuers 74 and would be provided for theperiods specified by Rule 3–19 ofRegulation S–X.75

As with full financial statements offoreign issuers, the abbreviated financialstatements could be prepared either onthe basis of U.S. GAAP or on acomprehensive body of accountingprinciples other than U.S. GAAP.76 Ifthe abbreviated financial statementswere prepared on a basis other than U.S.GAAP, the required note disclosureswould include the same matters as thoserequired in the abbreviated financialstatements of domestic issuers, and anadditional note containing thequantitative reconciling informationrequired by Item 17(c) or Item 18(c), asapplicable, of Form 20–F also would beprovided. However, a foreign issuer thatfollows Item 17 of Form 20–F inpreparing its full financial statementswould omit from the notes to theabbreviated financial statements anydisclosures that are not required by Item17, even if those disclosures otherwisewould be required by proposed Item305. Comment is solicited as to whethera more abbreviated or otherwisedifferent reconciliation should berequired.

E. Use of Abbreviated FinancialStatements to be at Registrant’s Option

Under the proposed amendments, aregistrant would have the optionwhether or not to include abbreviatedfinancial statements each time itprepared one of the specified disclosuredocuments for delivery to investors,provided that the registrant met theeligibility criteria for using abbreviatedstatements described above. Forexample, a registrant could elect toinclude abbreviated financial statementsin its annual report to shareholdersdelivered to investors, but decide toinclude full financial statements in aSecurities Act prospectus delivered afew months later, or vice versa. Theregistrant also might choose to includeabbreviated financial statements relatingto its existing business in a proxystatement and full financial statementsrelating to an acquired business in thesame proxy statement, or vice versa.

However, with respect to a particulardisclosure document, for purposes of

comparability and consistency, theproposed rules would require theinterim financial statements of aparticular entity to be presented in thesame manner as the annual financialstatements of that entity. For example,if a prospectus included abbreviatedannual financial statements of theregistrant, the interim financialstatements of the registrant included inthe same prospectus also would have tobe abbreviated.77

Comment is solicited as to whetherregistrants should be able to includeabbreviated financial statements insome of the specified deliverydocuments and not others, or whetherthey should be required to make anelection and consistently includeabbreviated or full financial statementsin their delivery documents. Commentalso is solicited as to whether interimfinancial statements of a particularentity should be presented in the samemanner as the entity’s annual financialstatements. Additional comment isrequested on whether it would beappropriate for a registrant to select oneoption with respect to its own financialstatements and a different one regardingthe financial statements of anotherentity whose financial statements arerequired in the disclosure document.

F. Report of the IndependentAccountant on the AbbreviatedFinancial Statements

Proposed Item 305 would require theabbreviated financial statementsdelivered to investors to beaccompanied by a report of theindependent accountant. The rulewould specify that the report mustcontain: (1) a statement that theabbreviated financial statements wereexamined in connection with an auditof the registrant or other entity’s fullfinancial statements; (2) a completedescription of the opinion rendered bythe independent accountant on the fullfinancial statements, including anyexplanatory language included in thereport on the full financial statements;


78 Proposed Item 305(b)(4) of Regulation S–K.79 Special Reports.80 Article 10 of Regulation S–X specifies the

content of interim financial statements.81 Proposed Item 305(b)(5)(ii) of Regulation S–K.82 Proposed Item 305(e) of Regulation S–K.

83 Id.84 Id.85 With respect to delivery of annual reports or

proxy or information statements that includeabbreviated financial statements, in addition tosetting forth this statement, registrants wouldcontinue to be required to provide the Rule 14a–3(b)(10) [17 CFR 240.14a–3(b)(10)] undertaking toprovide persons from whom proxy authority issolicited with a Form 10–K or 10–KSB upon writtenrequest.

86 Safe harbors with respect to the omission ofnotes from abbreviated financial statements wouldbe provided in proposed Securities Act Rule 435and Exchange Act Rules 13e–3, 13e–4, 14a–16, 14c–8 and 14d–1. These rules also would provide thatthe omitted information is deemed part of thedisclosure document.

87 This would not preclude the registrant fromdiscussing such information in the delivereddisclosure document, but only cause thatdiscussion to be set forth outside of the abbreviatedfinancial statements.

and (3) a statement of the independentaccountant’s opinion that the content ofthe abbreviated financial statementscomplies with Item 305.78 It iscontemplated that an independentaccountant’s report satisfying therequirements of proposed Item 305would fall within the auditing guidancecontained in SAS No. 62,79 whichgoverns reporting on financialstatements prepared on a basis ofaccounting prescribed in a regulatoryprovision that results in an incompletepresentation but one that is otherwise inconformity with GAAP. Comment issolicited as to whether a report in theform prescribed by proposed Item 305 isappropriate and sufficient, or whetheradditional or different statements orexplanations would be desirable. Also,comment is requested as to whetherauditing guidance other than SAS No.62 would be applicable to a report onabbreviated financial statements, orwhether the reporting objectives underthe proposed rule would require theaccounting profession to develop newguidance governing the form of suchreport and procedures necessary to itsissuance.

G. Abbreviated Interim FinancialStatements

Proposed Item 305 also would statethat, like full financial statements,abbreviated financial statementsrequired with respect to an interimperiod should be prepared inconformity with GAAP and RegulationS–X,80 except that note disclosures tothe abbreviated interim financialstatements would be limited only to anyof the thirteen items set forth above notpreviously disclosed in the abbreviatedannual financial statements. Ascurrently required in interim financialstatements, loss contingencies wouldhave to be disclosed even though asignificant change since year end maynot have occurred.81

H. Delivery of Full Financial Statementsto Requesting Investors

Registrants choosing to includeabbreviated financial statements indisclosure documents delivered toinvestors would have to furnish the fullaudited financial statements and theindependent accountant’s reportthereon to any person making a writtenor oral request, at no cost to the personmaking the request.82 Comment issolicited on whether registrants should

be permitted to send only the remainingfinancial information rather than thecomplete full financial statements.Which format would be more useful toinvestors? Comment also is solicited onwhether a means should be providedthat would enable security holders whoreceive abbreviated financial statementsin an annual report and request deliveryof the full financial information also toindicate that they would like to receiveautomatically full financial informationor the entire Form 10–K or 10–KSB infuture years.

As proposed, if Form 10–K (and/orForm 10–Q) financial statements weredelivered to investors in compliancewith the delivery requirement,registrants could deliver only theportion of those reports that contain thefinancial statements.83 The deliveredinformation would have to be for thesame periods covered by the abbreviatedfinancial statements.84

A statement setting forth theregistrant’s obligation to furnish the fullfinancial statements and the name,address and telephone number of theperson designated by the registrant toreceive requests would have to beincluded in the disclosure document.85

The registrant would be required todeliver the requested information by ameans reasonably calculated to result inthe information reaching the requestinginvestor within five business days fromthe date the request is received.Comment is solicited as to whether adelivery period should be specified inthe rule, and if so, whether the proposedtime period is appropriate, both from aninvestor’s and registrant’s perspective,or should it be shorter or longer. Shouldthe rule simply require prompt delivery,with promptness being determinedaccording to the context? Comment alsois solicited as to whether the deliveryperiod should be shorter than fivebusiness days when the abbreviatedfinancial statements are delivered toinvestors in connection with certaintypes of transactions, e.g., mergers andexchange offers, where the investor doesnot initiate the transaction, has nocontrol over the timing of thetransaction, and will be affectedfinancially by the transaction even if theinvestor does not act. Commenters alsoshould address whether the delivery

period should be longer when therequested delivery is not in connectionwith any specific transaction.

Further comment is solicited onwhether the rule should specify theappropriate means of delivery, and, ifso, the means that should be specified.Finally, comment is requested as towhether availability of the full financialstatements by public filing at theCommission, and from the registrantupon investor request, is sufficientlypractical, timely and effective formeeting investor requirements.

I. Safe Harbor ProvisionsThe Commission recognizes that the

utility of the abbreviated financialstatement proposal will depend oncompanies’ perception of theirvulnerability to liability for theomission of certain financial statementnotes pursuant to the provisions ofproposed Item 305.86 The proposedrules, therefore, include a safe harborprovision stating that disclosurecontained in disclosure documents willnot be materially misleading or omit tostate a material fact on the basis of theexclusion from the abbreviated financialstatements of the information permittedto be excluded from the financialstatement notes pursuant to proposedItem 305. The safe harbor would covercases where, for example, an investorclaimed that the information includedin the abbreviated financial statementsin the delivered document failed toinclude information that was in the fullfinancial statements included in thefiled document. Comment is requestedas to both the efficacy of the proposedsafe harbor provisions and theirappropriateness.

As discussed above in Part II.A,proposed Item 305 would not providefor inclusion of note disclosuresregarding matters other than thosespecified by the Item,87 althoughcomment is solicited on whetherregistrants should be permitted to adddiscretionary note disclosures. Asproposed, the safe harbor would not beavailable to issuers that includedadditional notes. Commenters are askedto address whether the protection of thesafe harbor provisions should beavailable to registrants who add


88 15 U.S.C. 78w(a).

discretionary note disclosures, and if so,should the protection extend only to thenote disclosures specified by Item 305,or to the voluntarily included notes aswell?

III. Request for CommentAny interested person wishing to

submit written comments on theproposed amendments that wouldpermit abbreviated financial statementsto be included in disclosure documents,as well as other matters that might havean impact on the proposedamendments, is requested to do so.Comment is solicited from the point ofview of investors, registrants,accountants and financial analysts.Comment is specifically requested onthe extent to which the informationcurrently contained in notes to thefinancial statements is used by investorsto conduct a thorough analysis of aregistrant’s financial condition andfuture prospects. The Commission alsorequests comment on whether theproposed rules, if adopted, would havean adverse impact on competition thatis neither necessary nor appropriate infurthering the purposes of the ExchangeAct. Comments responsive to thisinquiry will be considered by theCommission in complying with itsresponsibilities under Section 23(a) ofthe Exchange Act.88

IV. Cost-Benefit AnalysisTo evaluate fully the costs and

benefits associated with the proposals,the Commission requests commenters toprovide views and empirical data as tothe costs and benefits associatedtherewith. The proposals are expectedto benefit registrants by allowing moreflexibility in accounting and loweringcosts associated with printing andmandated across the board delivery ofinformation that may be used directlyonly by a portion of investors. Fullfinancial statements of these entitieswill continue to be required inCommission filings. Furthermore, theproposals are expected to makefinancial statement note disclosuresmore useful and meaningful to theindividual investor.

V. Summary of Initial RegulatoryFlexibility Analysis

An Initial Regulatory FlexibilityAnalysis has been prepared inaccordance with 5 U.S.C. 603concerning the proposed amendments.The analysis notes that the proposedamendments are intended to respond toconcerns regarding the increasingvolume and complexity of financial

information that is included inprospectuses and other documentsdelivered to investors. The proposedamendments are intended to make thefinancial information presented toinvestors more readable andunderstandable by streamlining the notedisclosure and focusing on matters ofparticular significance to investors.

As discussed more fully in theanalysis, some of the registrants that theproposed amendments would affect aresmall entities, as defined by theCommission’s rules. The proposedamendments would decrease the costfor all issuers choosing to rely on them,including small businesses.

The analysis discusses severalpossible alternatives to the proposedamendments including, among others,establishing different compliance orreporting requirements for small entitiesor exempting them from all or part ofthe proposed requirements. Given thefact that small business issuers wouldreceive a favorable impact from theproposed rules and that use of theproposed rules would be at the issuer’soption, the Commission does notbelieve that any of the alternatives arepreferable at this time.

Comments are encouraged on anyaspect of this analysis. A copy of theanalysis may be obtained by contactingWilliam B. Haseltine, Office ofDisclosure Policy, Division ofCorporation Finance, Securities andExchange Commission, 450 Fifth StreetNW., Washington, DC 20549.

VI. Statutory Basis

The amendments to Forms 1–A, S–1,S–2, S–3, S–4, S–6, S–8, S–11, SB–1,SB–2, F–1, F–2, F–3, F–4, F–7, F–8, F–9, F–10 and F–80 and new Rule 435 arebeing proposed pursuant to Sections 6,7, 10 and 19(a) of the Securities Act.The amendments to Rules 13e–3, 13e–4, 14a–3, 14c–3, 14d–1 and 14d–6,Schedules 13E–4F, 14A, 14C, 14D–1Fand 14D–9F and Forms 10–K and 10–KSB and new Rules 14a–16 and 14c–8are being proposed pursuant to Sections12, 13, 14 and 23(a) of the ExchangeAct.

List of Subjects in 17 CFR 228, 229, 230,239, 240 and 249

Accountants, Accounting, Reportingand recordkeeping requirements, andSecurities.

Text of the Proposals

In accordance with the foregoing,Title 17, Chapter II of the Code ofFederal Regulations is proposed to beamended as follows:

PART 228—INTEGRATEDDISCLOSURE SYSTEM FOR SMALLBUSINESS ISSUERS


Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j,77k, 77s, 77aa(25), 77aa(26), 77ddd, 77eee,77ggg, 77hhh, 77jjj, 77nnn, 77sss, 78l, 78m,78n, 78o, 78w, 78ll, 80a–8, 80a–29, 80a–30,80a–37, 80b–11, unless otherwise noted.

2. By amending Part 228 by adding§ 228.305 to read as follows:

§ 228.305 (Item 305) Abbreviated financialstatements.

Note: The term full financial statements asused throughout this Item refers to financialstatements filed with the Commissionmeeting the requirements of Item 310 ofRegulation S–B (§ 228.310).

(a) Eligibility. A small business issuer,other than an investment companyregistered under the InvestmentCompany Act of 1940 [15 U.S.C. 80a–1et seq.] or a business developmentcompany under that Act, that meets thefollowing conditions may furnishabbreviated financial statements in adocument to be furnished to investors orsecurity holders, as permitted by theForm or Schedule governing therequirements of that document:

(1) The small business issuer has filedwith its full financial statements anindependent accountant’s report thatcomplies with the requirements ofArticle 2 of Regulation S–X (17 CFR210.2) and does not contain aqualification as to scope of audit, or asto accounting principles used, or adisclaimer of opinion. However, if thefull financial statements of the smallbusiness issuer filed with theCommission are not required to beaudited, neither this condition nor therequirement to provide an independentaccountant’s report pursuant toparagraph (b)(4) of this Item shall apply;and

(2) If the small business issuer is areporting company, all reports due musthave been filed.

(b) Information to be included inabbreviated financial statements.Abbreviated financial statements shallinclude the following information:

(1) A balance sheet as of the end ofthe most recent fiscal year andstatements of income and cash flows foreach of the two most recent fiscal yearsprepared in conformity with accountingprinciples generally accepted in theUnited States (‘‘U.S. GAAP’’), exceptthat note disclosures specified by U.S.GAAP shall not be included unlessspecified in paragraph (b)(3) of thisItem. The face of the financialstatements shall include a prominent


statement identifying them as‘‘abbreviated financial statements.’’

(2) A statement of changes instockholders’ equity prepared inconformity with Item 310(a) ofRegulation S–B (§ 228.310(a)) for each ofthe two most recent fiscal years.

(3) Notes to the financial statements.The disclosures required in the notes tothe abbreviated financial statementsshall be an extraction of all notedisclosures included in the smallbusiness issuer’s full financialstatements that are responsive to thematters specified in paragraphs (b)(3)(ii)through (b)(3)(xiii) of this Item. Tofacilitate the extraction of all disclosuresresponsive to the specified matters, theprimary authoritative pronouncementsconcerning the specified matters areidentified in paragraphs (b)(3)(ii)through (b)(3)(xiii) of this Item. Theterm ‘‘related pronouncements’’ as usedin paragraphs (b)(3)(ii) through(b)(3)(xiii) of this Item refers topronouncements constituting U.S.GAAP as defined in Statement ofAuditing Standards (‘‘SAS’’) No. 69 thatrequires disclosure regarding the matterspecified for disclosure in theabbreviated financial statements. Thenotes shall disclose the following:

(i) Basis of presentation. The smallbusiness issuer shall state that theabbreviated financial statements havebeen prepared using U.S. GAAP formeasurement and classification. Theregistrant also shall state thatsubstantially all note disclosuresnecessary for a fair presentation underU.S. GAAP have been omitted, and thatthe note disclosures are limited to thosematters specified by Commission rulesfor inclusion in abbreviated financialstatements. Additionally, the smallbusiness issuer shall state that the notedisclosures comply with Commissionrules for presentation of abbreviatedfinancial statements. A reference to thecomplete disclosures in the fullfinancial statements shall be provided.

(ii) Accounting policies. The smallbusiness issuer shall provide adescription of all significant accountingpolicies used in the preparation of thefinancial statements. Disclosure ofaccounting policies shall identify anddescribe the accounting principlesfollowed by the reporting entity and themethods of applying those principlesthat materially affect the determinationof financial position, cash flows orresults of operations, as specified byAccounting Principles Board (‘‘APB’’)Opinion No. 22 and relatedpronouncements.

(iii) Changes in accounting principle.The small business issuer shall disclosethe nature of, and justification for, a

change in accounting principle, and theeffects of the change, as specified byAPB Opinion No. 20 and relatedpronouncements.

(iv) Restatements andreclassifications. The small businessissuer shall disclose the followingmatters:

(A) The nature and effects of acorrection of an error in previouslyissued financial statements, as specifiedby APB Opinion No. 20 and relatedpronouncements.

(B) The nature and reasons for achange in the reporting entity, andeffects of the change, as specified byAPB Opinion No. 20 and relatedpronouncements. Combinations ofentities under common control andsimilar reorganizations described inAPB Opinion No. 16 and relatedpronouncements shall be consideredchanges in the reporting entity forpurposes of this item.

(C) The nature and effects ofreclassifications materially affectingamounts reported in previously issuedfinancial statements.

(v) Changes in accounting estimate.The small business issuer shall disclosethe nature and effects of a change inaccounting estimate, as specified byAPB Opinion No. 20 and relatedpronouncements.

(vi) Business combinations. The smallbusiness issuer shall disclose thefollowing with respect to businesscombinations:

(A) The nature of businesscombinations accounted for as a poolingof interests and the disclosures of theeffects of the business combinations, asspecified by APB Opinion No. 16 andrelated pronouncements.

(B) The nature of businesscombinations accounted for as apurchase and the disclosures specifiedby APB Opinion No. 16 and relatedpronouncements.

(vii) Discontinued operations. Thesmall business issuer shall disclose thenature of discontinued operations andprovide the quantitative disclosures ofthe effects of the discontinuedoperations, as specified by APB OpinionNo. 30 and related pronouncements.

(viii) Circumstances identified inexplanatory language added to theindependent accountant’s standardreport. The small business issuer shalldisclose the nature and effects ofcircumstances for which theindependent accountant’s report on thefull financial statements includesexplanatory language. Thesecircumstances are identified inparagraph 11 of SAS No. 58. The notesshall include all disclosures regardingthe matter considered necessary by the

independent accountant in rendering anopinion on the full financial statementsunqualified as to adequacy ofdisclosure. However, disclosure neednot be provided where the explanatorylanguage merely reports that theindependent accountant’s opinion isbased in part on the work of anotherindependent accountant. Disclosureshall be provided for explanatoryparagraphs that emphasize a matterregarding the financial statements.

(ix) Loss contingencies. The smallbusiness issuer shall disclose the natureof loss contingencies and estimatedamount or range of reasonably possibleloss in excess of amounts accrued in thefinancial statements, as specified byStatement of Financial AccountingStandards (‘‘SFAS’’) No. 5 and relatedpronouncements. A statement that theamount or range of probable orreasonably possible loss cannot bereasonably estimated shall be includedif applicable.

(x) Events of default under creditagreements. The small business issuershall disclose the facts and amountsconcerning any default in principal,interest, sinking fund, or redemptionprovisions with respect to any materialissue of securities or credit agreements,or any breach of covenant of a relatedindenture or agreement, which defaultor breach existed at the date of the mostrecent balance sheet being filed andwhich has not been subsequently cured.If a default or breach exists butacceleration of the obligation has beenwaived for a stated period of timebeyond the date of the most recentbalance sheet being filed, the smallbusiness issuer shall state the amount ofthe obligation and the period of thewaiver.

(xi) Related party transactions. Thesmall business issuer shall disclose thenature of related party relationships,and a description of transactions,amounts and balances as specified bySFAS No. 57 and relatedpronouncements.

(xii) Bankruptcies and quasi-reorganizations. (A) Bankruptcies.Small business issuers entering into,operating under, or emerging fromproceedings under the federalbankruptcy code during the most recentfiscal year shall provide all of thedisclosures required by AICPAStatement of Position No. 90–7.

(B) Quasi-reorganizations. Smallbusiness issuers effecting a quasi-reorganization during the most recentfiscal year shall disclose the nature andeffects of the quasi-reorganization.

(xiii) Subsequent events. The smallbusiness issuer shall disclose all eventsoccurring subsequent to the date of the


most recent balance sheet for whichdisclosure was required in the fullfinancial statements.

(4) An independent accountant’sreport. The report shall state that theabbreviated annual financial statementshave been examined in connection withthe audit of the full financial statements.The report shall state clearly theopinion of the independent accountantthat the abbreviated financial statementscomply with the requirements inparagraph (b) of this Item forpresentation of abbreviated financialstatements. The report shall describe theopinion rendered by the independentaccountant on the full financialstatements, including any explanatorylanguage.

(5) Abbreviated interim financialstatements. (i) Where interim financialstatements of the registrant are requiredin a document that includes abbreviatedannual financial statements of theregistrant, those interim financialstatements shall be abbreviated. Whereinterim financial statements of theregistrant are required in a documentthat includes full annual financialstatements of the registrant, thoseinterim financial statements shall not beabbreviated.

(ii) Abbreviated interim financialstatements shall be furnished for thesame periods as prescribed by Item310(b) of Regulation S–B (§ 228.310(b)).The abbreviated interim financialstatements shall be prepared inconformity with generally acceptedaccounting principles, except that notedisclosures required by generallyaccepted accounting principles shall notbe included unless specified inparagraph (b)(3) of this Item. However,disclosures that would substantiallyduplicate the disclosure contained inthe most recent annual abbreviatedfinancial statements may be omitted,except that contingencies shall bedisclosed pursuant to paragraph(b)(3)(ix) of this Item even though asignificant change since year end maynot have occurred. The abbreviatedinterim financial statements shallcomply with all requirements of Item310(b) of Regulation S–B governingclassification of items on the face of thebalance sheet, statement of income, andstatement of cash flows.

(c) Age of abbreviated financialstatements at effective date ofregistration statement or mailing date ofproxy statement. Small business issuersshall update the abbreviated financialstatements to cover the same periods asrequired pursuant to Item 310(g) ofRegulation S–B (§ 228.310(g)).

(d) Abbreviated financial statementsof entities other than the registrant. In

those instances where full financialstatements of businesses acquired or tobe acquired are required by Item 310(c)of Regulation S–B (§ 228.310(c)), or fullfinancial statements of other entities arerequired to be included in a smallbusiness issuer’s filing with theCommission on a form that permits theabbreviation of financial statements,abbreviated financial statements may befurnished for those entities providedthat the small business issuer meets theconditions in paragraph (a) of this Itemand those entities meet the condition inparagraph (a)(1) of this Item.Abbreviated financial statements ofbusinesses acquired or to be acquiredshall be prepared in accordance withthis Item for the respective periodsspecified by Item 310(c) of RegulationS–B. Where abbreviated financialstatements of entities other than thesmall business issuer are furnished, fullfinancial statements shall also be filedwith the Commission as provided in therespective form requirements.

(e) Delivery of full financialstatements to requesting investors.Small business issuers includingabbreviated financial statements indisclosure documents shall deliverwithout charge to each person to whomthe document is furnished, upon thewritten or oral request of such personand by a means reasonably calculated toresult in the information reaching therequesting person within five businessdays from the date of the request, a copyof the small business issuer’s fullfinancial statements and theindependent accountant’s reportthereon filed with the Commission forthe same periods covered by theabbreviated financial statements. Thesmall business issuer shall include astatement in bold face or otherwisereasonably prominent type in thedisclosure document that the smallbusiness issuer will provide a copy ofits full financial statements and theindependent accountant’s reportthereon without charge to each personto whom the document is furnished,upon the written or oral request by suchperson, and shall state the name,address, and telephone number of theperson (including title and department)to whom the request for full financialstatements should be directed. If Form10–KSB (17 CFR 249.310b) and/or Form10–QSB (17 CFR 249.308b) financialstatements are permitted to be furnishedto requesting persons in satisfaction ofthe delivery requirement, only theportion of those reports containing thefinancial statements, and theindependent accountant’s reportthereon, need be delivered.

(f) Special provisions as toabbreviated financial statements forforeign private issuers. (1) Theabbreviated financial statements may beprepared according to U.S. GAAP,except that note disclosures shall belimited to those specified in paragraph(b)(3) of this item. Alternatively, suchabbreviated financial statements may beprepared according to a comprehensivebody of accounting principles otherthan U.S. GAAP. Where the abbreviatedfinancial statements are preparedaccording to a comprehensive body ofaccounting principles other than U.S.GAAP, the disclosures specified by Item18(c) of Form 20–F (17 CFR 249.220f)shall be furnished, except that notedisclosures shall be limited to thosespecified in paragraph (b)(3) of thisitem. However, foreign private issuersthat comply with Item 17 of Form 20–F rather than Item 18 may furnish thedisclosure specified by Item 17(c) in thenotes to the abbreviated financialstatements. Where Item 17(c) permitsthe omission of a disclosure from thenotes to the full financial statements,that disclosure shall not be included inthe notes to the abbreviated financialstatements even if specified fordisclosure by paragraph (b)(3) of thisItem.

(2) Abbreviated financial statementsshall be provided for the periodsspecified by Rule 3–19 of Regulation S–X.

PART 229—STANDARDINSTRUCTIONS FOR FILING FORMSUNDER SECURITIES ACT OF 1933,SECURITIES EXCHANGE ACT OF 1934AND ENERGY POLICY ANDCONSERVATION ACT OF 1975—REGULATION S–K

3. The authority citation for part 229continues to read in part as follows:

Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j,77k, 77s, 77aa(25), 77aa(26), 77ddd, 77eee,77ggg, 77hhh, 77iii, 77jjj, 77nnn, 77sss, 78c,78i, 78j, 78l, 78m, 78n, 78o, 78w, 78ll(d), 79e,79n, 79t, 80a–8, 80a–29, 80a–30, 80a–37,80b–11, unless otherwise noted.

* * * * *4. By amending Part 229 by adding

§ 229.305 to read as follows:

§ 229.305 (Item 305) Abbreviated financialstatements.

Note: The term full financial statements asused throughout this Item refers to financialstatements filed with the Commissionmeeting the requirements of Regulation S–X(17 CFR part 210).

(a) Eligibility. A registrant, other thanan investment company registeredunder the Investment Company Act of1940 [15 U.S.C. 80a–1 et seq.], or abusiness development company under


that Act, that meets the followingconditions may furnish abbreviatedfinancial statements in a document to befurnished to investors or securityholders, as permitted by the Form orSchedule governing the requirements ofthat document:

(1) The registrant has filed with itsfull financial statements an independentaccountant’s report that complies withthe requirements of Article 2 ofRegulation S–X (17 CFR 210.2) and doesnot contain a qualification as to scopeof audit or as to accounting principlesused, or a disclaimer of opinion.

However, if the full financialstatements of the registrant filed withthe Commission are not required to beaudited, neither this condition nor therequirement to provide an independentaccountant’s report pursuant toparagraph (b)(4) of this Item shall apply;and

(2) If the registrant is subject to therequirement to file reports pursuant toSection 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 U.S.C. 78m(a)or 78o(d)), it has filed all reports andother materials required to be filed bysuch requirements.

(b) Information to be included inabbreviated financial statements.Abbreviated financial statements shallinclude the following information:

(1) Balance sheets as of the end ofeach of the two most recent fiscal yearsand statements of income and cashflows for each of the three most recentfiscal years prepared in conformity withaccounting principles generallyaccepted in the United States (‘‘U.S.GAAP’’) and Regulation S–X (17 CFR210), except that note disclosuresspecified by U.S. GAAP and Articles 4,5, 7, and 9 of Regulation S–X (17 CFR210.4, 210.5, 210.7 and 210.9) shall notbe included unless specified inparagraph (b)(3) of this Item. Theabbreviated annual financial statementsshall comply with all requirements ofRegulation S–X governing classificationof items on the face of the balance sheet,statement of income, and statement ofcash flows, and shall include alldisclosures required by Regulation S–Xto be included on the face of the balancesheet, statement of income, andstatement of cash flows. The face of thefinancial statements shall include aprominent statement identifying themas ‘‘abbreviated financial statements.’’

(2) A statement of changes instockholders’ equity prepared inconformity with Rule 3–04 ofRegulation S–X (17 CFR 210.3–04) foreach of the registrant’s three most recentfiscal years.

(3) Notes to the financial statements.The disclosures required in the notes to

the abbreviated financial statementsshall be an extraction of all notedisclosures included in the registrant’sfull financial statements that areresponsive to the matters specified inparagraphs (b)(3)(ii) through (b)(3)(xiii)of this Item. To facilitate the extractionof all disclosures responsive to thespecified matters, the primaryauthoritative pronouncementsconcerning the specified matters areidentified in paragraphs (b)(3)(ii)through (b)(3)(xiii) of this Item. Theterm ‘‘related pronouncements’’ as usedin paragraphs (b)(3)(ii) through(b)(3)(xiii) of this Item refers topronouncements constituting U.S.GAAP as defined in Statement ofAuditing Standards (‘‘SAS’’) No. 69 thatrequire disclosure regarding the matterspecified for disclosure in theabbreviated financial statements. Thenotes shall disclose the following:

(i) Basis of presentation. Theregistrant shall state that the abbreviatedfinancial statements have been preparedusing U.S. GAAP for measurement andclassification. The registrant also shallstate that substantially all notedisclosures necessary for a fairpresentation under U.S. GAAP andRegulation S–X (17 CFR 210) have beenomitted, and that the note disclosuresare limited to those specified byCommission rules for inclusion inabbreviated financial statements.Additionally, the registrant shall statethat the note disclosures comply withCommission rules for presentation ofabbreviated financial statements. Areference to the complete disclosures inthe full financial statements shall beprovided.

(ii) Accounting policies. The registrantshall provide a description of allsignificant accounting policies used inthe preparation of the financialstatements. Disclosure of accountingpolicies shall identify and describe theaccounting principles followed by thereporting entity and the methods ofapplying those principles thatmaterially affect the determination offinancial position, cash flows or resultsof operations, as specified byAccounting Principles Board (‘‘APB’’)Opinion No. 22 and relatedpronouncements.

(iii) Changes in accounting principle.The registrant shall disclose the natureof, and justification for, a change inaccounting principle, and the effects ofthe change, as specified by APBOpinion No. 20 and relatedpronouncements.

(iv) Restatements andreclassifications. The registrant shalldisclose the following matters:

(A) The nature and effects of acorrection of an error in previouslyissued financial statements, as specifiedby APB Opinion No. 20 and relatedpronouncements.

(B) The nature and reasons for achange in the reporting entity, andeffects of the change, as specified byAPB Opinion No. 20 and relatedpronouncements. Combinations ofentities under common control andsimilar reorganizations described inAPB Opinion No. 16 and relatedpronouncements shall be consideredchanges in the reporting entity forpurposes of this Item.

(C) The nature and effects ofreclassifications materially affectingamounts reported in previously issuedfinancial statements.

(v) Changes in accounting estimate.The registrant shall disclose the natureand effects of a change in accountingestimate, as specified by APB OpinionNo. 20 and related pronouncements.

(vi) Business combinations. Theregistrant shall disclose the followingwith respect to business combinations:

(A) The nature of businesscombinations accounted for as a poolingof interests and the disclosures of theeffects of the business combinations, asspecified by APB Opinion No. 16 andrelated pronouncements.

(B) The nature of businesscombinations accounted for as apurchase and the disclosures specifiedby APB Opinion No. 16 and relatedpronouncements.

(vii) Discontinued operations. Theregistrant shall disclose the nature ofdiscontinued operations and providethe quantitative disclosures of theeffects of the discontinued operations,as specified by APB Opinion No. 30 andrelated pronouncements.

(viii) Circumstances identified inexplanatory language added to theindependent accountant’s standardreport. The registrant shall disclose thenature and effects of circumstances forwhich the independent accountant’sreport on the full financial statementsincludes explanatory language. Thesecircumstances are identified inparagraph 11 of SAS No. 58. The notesshall include all disclosures regardingthe matter considered necessary by theindependent accountant in rendering anopinion on the full financial statementsunqualified as to adequacy ofdisclosure. However, disclosure neednot be provided where the explanatorylanguage merely reports that theindependent accountant’s opinion isbased in part on the work of anotherindependent accountant. Disclosureshall be provided for explanatory


paragraphs that emphasize a matterregarding the financial statements.

(ix) Loss contingencies. The registrantshall disclose the nature of losscontingencies and estimated amount orrange of reasonably possible loss inexcess of amounts accrued in thefinancial statements, as specified byStatement of Financial AccountingStandards (‘‘SFAS’’) No. 5 and relatedpronouncements. A statement that theamount or range of probable orreasonably possible loss cannot bereasonably estimated should beincluded if applicable.

(x) Events of default under creditagreements. The registrant shall disclosethe facts and amounts concerning anydefault in principal, interest, sinkingfund, or redemption provisions withrespect to any material issue ofsecurities or credit agreements, or anybreach of covenant of a relatedindenture or agreement, which defaultor breach existed at the date of the mostrecent balance sheet being filed andwhich has not been subsequently cured.If a default or breach exists butacceleration of the obligation has beenwaived for a stated period of timebeyond the date of the most recentbalance sheet being filed, the registrantshall state the amount of the obligationand the period of the waiver.

(xi) Related party transactions. Theregistrant shall disclose the nature ofrelated party relationships, and adescription of transactions, amountsand balances as specified by SFAS No.57 and related pronouncements.

(xii) Bankruptcies and quasi-reorganizations. (A) Bankruptcies.Registrants entering into, operatingunder, or emerging from proceedingsunder the federal bankruptcy codeduring the most recent fiscal year shallprovide all of the disclosures requiredby AICPA Statement of Position No. 90–7.

(B) Quasi-reorganizations. Registrantseffecting a quasi-reorganization duringthe most recent fiscal year shall disclosethe nature and effects of the quasi-reorganization.

(xiii) Subsequent events. Theregistrant shall disclose all eventsoccurring subsequent to the date of themost recent balance sheet for whichdisclosure was required in the fullfinancial statements.

(4) An independent accountant’sreport. The report shall state that theabbreviated annual financial statementshave been examined in connection withthe audit of the full financial statements.The report shall state clearly theopinion of the independent accountantthat the abbreviated financial statementscomply with the requirements in

paragraph (b) of this Item forpresentation of abbreviated financialstatements. The report shall describe theopinion rendered by the independentaccountant on the full financialstatements, including any explanatorylanguage.

(5) Abbreviated interim financialstatements. (i) Where interim financialstatements of the registrant are requiredin a document that includes abbreviatedannual financial statements of theregistrant, those interim financialstatements shall be abbreviated. Whereinterim financial statements of theregistrant are required in a documentthat includes full annual financialstatements of the registrant, thoseinterim financial statements shall not beabbreviated.

(ii) Abbreviated interim financialstatements shall be furnished for thesame periods as prescribed by Rules 3–01 and 3–02 of Regulation S–X (17 CFR210.3–01 and 210.3–02). Theabbreviated interim financial statementsshall be prepared in conformity withgenerally accepted accountingprinciples and Article 10 of RegulationS–X (17 CFR 210.10), except that notedisclosures specified by generallyaccepted accounting principles andRegulation S–X shall not be includedunless specified in paragraph (b)(3) ofthis Item. However, disclosures thatwould substantially duplicate thedisclosure contained in the most recentannual abbreviated financial statementsmay be omitted, except thatcontingencies shall be disclosedpursuant to (b)(3)(ix) of this Item eventhough a significant change since yearend may not have occurred. Theabbreviated interim financial statementsshall comply with all requirements ofArticle 10 of Regulation S–X governingclassification of items on the face of thebalance sheet, statement of income, andstatement of cash flows.

(c) Age of abbreviated financialstatements at effective date ofregistration statement or at mailing dateof proxy statement. Registrants shallupdate the abbreviated financialstatements to cover the same periods asrequired pursuant to Rule 3–12 ofRegulation S–X (17 CFR 210.3–12).

(d) Abbreviated financial statementsof entities other than the registrant. Inthose instances where full financialstatements of entities other than theregistrant are required by Rule 3–05, 3–09 or 3–10 of Regulation S–X (17 CFR210.3–05, 210.3–09, or 210.3–10), or areotherwise required to be included in aregistrant’s filing with the Commissionon a form that permits the abbreviationof financial statements, abbreviatedfinancial statements may be furnished

for those other entities provided that theregistrant meets the conditions inparagraph (a) of this Item and thoseother entities meet the condition inparagraph (a)(1) of this Item.Abbreviated financial statements ofentities other than the registrant shall beprepared in accordance with this Itemfor the respective periods specified byRule 3–05, 3–09 or 3–10 of RegulationS–X. Where abbreviated financialstatements of entities other than theregistrant are furnished, full financialstatements shall also be filed with theCommission as provided in therespective form requirements.

(e) Delivery of full financialstatements to requesting investors.Registrants including abbreviatedfinancial statements in a disclosuredocument shall deliver without chargeto each person to whom the documentis furnished, upon the written or oralrequest of such person and by a meansreasonably calculated to result in theinformation reaching the requestingperson within five business days fromthe date of the request, a copy of the fullfinancial statements and theindependent accountant’s reportthereon filed with the Commission forthe same periods covered by theabbreviated financial statements. Theregistrant shall include a statement inbold face or otherwise reasonablyprominent type in the disclosuredocument that the registrant willprovide a copy of its full financialstatements and the independentaccountant’s report thereon withoutcharge to each person to whom thedocument is furnished, upon the writtenor oral request of such person, and shallstate the name, address, and telephonenumber of the person (including titleand department) to whom the requestfor full financial statements should bedirected. If Form 10–K (17 CFR 249.310)and/or Form 10–Q (17 CFR 249.308a)financial statements are permitted to befurnished to requesting persons insatisfaction of the delivery requirement,only the portion of those reportscontaining the financial statements, andthe independent accountant’s reportthereon, need be delivered.

(f) Special provisions as toabbreviated financial statements forforeign private issuers. (1) Theabbreviated financial statements may beprepared according to U.S. GAAP,except that note disclosures shall belimited to those specified in paragraph(b)(3) of this Item. Alternatively, suchabbreviated financial statements may beprepared according to a comprehensivebody of accounting principles otherthan U.S. GAAP. Where the abbreviatedfinancial statements are prepared


according to a comprehensive body ofaccounting principles other than U.S.GAAP, the disclosures specified by Item18(c) of Form 20–F (17 CFR 249.220f)shall be furnished, except that notedisclosures shall be limited to thosespecified in paragraph (b)(3) of thisItem. However, foreign private issuersthat comply with Item 17 of Form 20–F rather than Item 18 may furnish thedisclosure specified by Item 17(c) in thenotes to the abbreviated financialstatements. Where Item 17(c) permitsthe omission of a disclosure from thenotes to the full financial statements,that disclosure shall not be included inthe notes to the abbreviated financialstatements even if specified fordisclosure by paragraph (b)(3) of thisItem.

(2) Abbreviated financial statementsshall be provided for the periodsspecified by Rule 3–19 of Regulation S–X (17 CFR 210.3–19).

PART 230—GENERAL RULES ANDREGULATIONS, SECURITIES ACT OF1933

5. The authority citation for Part 230continues to read in part as follows:

Authority: 15 U.S.C. 77b, 77f, 77g, 77h, 77j,77s, 77sss, 78c, 78l, 78m, 78n, 78o, 78w,78ll(d), 79t, 80a–8, 80a–29, 80a–30, and 80a–37, unless otherwise noted.

* * * * *6. By amending Part 230 by adding


§ 230.435 Abbreviated financialstatements.

(a) For purposes of this section:(1) The term full financial statements

shall mean financial statements filedwith the Commission meeting therequirements of Regulation S–X (17 CFR210), or, for small business issuers, Item310 of Regulation S–B (§ 228.310 of thischapter).

(2) The term abbreviated financialstatements shall mean financialstatements that include the informationspecified in Item 305(b) of RegulationS–B (§ 228.305(b) of this chapter) orItem 305(b) of Regulation S–K(§ 229.305(b) of this chapter).

(b) A prospectus containingabbreviated financial statements shallnot be deemed materially misleading oromitting material facts from theprospectus within the meaning of thefederal securities laws based on theomission from the prospectus of thosefinancial statement footnotes permittedby Item 305 of Regulation S–B(§ 228.305 of this chapter) or Item 305of Regulation S–K (§ 229.305 of thischapter) deemed a part of theprospectus, provided the registrant has

complied with Item 305 of RegulationS–B or Item 305 of Regulation S–K.

(c) The full financial statements thatare omitted from a prospectus shall bedeemed to be part of the prospectus.

7. By amending § 230.502 ofRegulation D by adding a sentence at theend of paragraph (b)(2)(i)(B)(1) to readas follows:

§ 230.502 General conditions to be met.

* * * * *(b) Information requirements. * * *(2) Type of information to be

furnished. * * *(i) * * *(B) Financial statement information.

* * *(1) Offerings up to $2,000,000. * * *

If the issuer satisfies the eligibilitycriteria in Item 305(a) of Regulation S–B (§ 228.305(a) of this chapter), theissuer may provide the abbreviatedfinancial statements required by Item305 of Regulation S–B (§ 228.305 of thischapter) rather than the informationrequired in Item 310 of Regulation S–B(§ 228.310 of this chapter).* * * * *

PART 239—FORMS PRESCRIBEDUNDER THE SECURITIES ACT OF 1933

8. The authority citation for part 239continues to read, in part, as follows:

Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s,77sss, 78c, 78l, 78m, 78n, 78o(d), 78w(a),78ll(d), 79e, 79f, 79g, 79j, 79l, 79m, 791, 79t,80a–8, 80a–29, 80a–30 and 80a–37, unlessotherwise noted.

* * * * *9. By amending Form SB–1

(referenced in § 239.9) by revising PartF/S and adding Item 7 to Part II to readas follows:

Note—The text of Form SB–1 does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form SB–1

Registration Statement Under the SecuritiesAct of 1933

* * * * *Part F/S—Financial Information Required inProspectus

Furnish either: (1) the full financialstatements required by Item 310 ofRegulation S–B (§ 228.310 of this chapter); or(2) the abbreviated financial statementsrequired by Item 305 of Regulation S–B(§ 228.305 of this chapter). The option tofurnish abbreviated financial statements isavailable only to registrants satisfying theeligibility criteria in Item 305(a) ofRegulation S–B.

Instruction to Part F/S

Abbreviated financial statements meetingthe requirements of Item 305 of RegulationS–B may be furnished with respect tobusinesses acquired or to be acquired, except

that the information need only be providedfor the periods specified by Item 310(c) ofRegulation S–B. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–B.

* * * * *Part II—Information Not Required inProspectus

* * * * *Item 7. Financial Statements

If abbreviated financial statements arefurnished in the prospectus pursuant to PartF/S of this Form SB–1, furnish the fullfinancial statements required by Item 310 ofRegulation S–B and the independentaccountant’s report thereon.

* * * * *10. By amending Form SB–2

(referenced in § 239.10) by revising Item22 to Part I and adding Item 29 to PartII to read as follows:

Note—The text of Form SB–2 does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form SB–2



Furnish either: (a) the full financialstatements required by Item 310 ofRegulation S–B (§ 228.310 of this chapter); or(b) the abbreviated financial statementsrequired by Item 305 of Regulation S–B(§ 228.305 of this chapter). The option tofurnish abbreviated financial statements isavailable only to registrants satisfying theeligibility criteria in Item 305(a) ofRegulation S–B.

Instruction to Item 22

Abbreviated financial statements meetingthe requirements of Item 305 of RegulationS–B may be furnished with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Item 310(c) ofRegulation S–B. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–B.



If abbreviated financial statements arefurnished pursuant to Item 22(b), furnish thefull financial statements required by Item 310of Regulation S–B and the independentaccountant’s report thereon.

* * * * *11. By amending Form S–1

(referenced in § 239.11) by revising Item11(e), adding an Instruction to Item11(e), removing the words ‘‘andFinancial Statement Schedules’’ fromthe caption to Item 16, removing


paragraph (b) of Item 16, and addingItem 18 to read as follows:

Note—The text of Form S–1 does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form S–1


* * * * *Item 11. Information with Respect to theRegistrant

* * * * *(e) Full financial statements meeting the

requirements of Regulation S–X (17 CFR Part210) (Schedules required under RegulationS–X shall be filed pursuant to Item 18‘‘Financial Statements and Schedules,’’ ofthis Form) as well as any financialinformation required by Rule 3–05 andArticle 11 of Regulation S–X; or abbreviatedfinancial statements meeting therequirements of Item 305 of Regulation S–Kshall be filed, as well as any financialinformation required by Rule 3–05 andArticle 11 of Regulation S–X. The option tofurnish abbreviated financial statements isavailable only to registrants satisfying theeligibility criteria in Item 305(a) ofRegulation S–K (§ 229.305(a) of this chapter).

Instruction to Item 11(e)

Abbreviated financial statements meetingthe requirements of Item 305 of RegulationS–K may be furnished with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X (§ 210.3–05 of this chapter).This option is available only if the businessacquired or to be acquired satisfies theeligibility criteria in Item 305(a)(1) ofRegulation S–K.


* * * * *Item 18. Financial Statements and Schedules

(a) If abbreviated financial statements arefurnished pursuant to Item 11(e) of thisForm, furnish the full financial statementsrequired by Regulation S–X and theindependent accountant’s report thereon.

(b) Regardless of whether full orabbreviated financial statements arefurnished pursuant to Item 11(e) of thisForm, furnish the financial statementschedules required by Regulation S–X. Theseschedules shall be lettered or numbered inthe manner described for exhibits in Item 601of Regulation S–K (§ 229.601 of this chapter).


(referenced in § 239.12) by revising thelast sentence in General Instruction II.C,adding paragraph (iv) to Item 11(a)(2),adding a sentence at the end of Item11(a)(3), adding paragraphs (A), (B), and(C) to Item 11(b)(2), adding instructionsto Item 11(a)(2), (a)(3), and Item 11(b)(2),and adding Item 18 to read as follows:


Form S–2

Registration Statement under the SecuritiesAct of 1933

* * * * *

General Instructions

* * * * *II. Application of General Rules andRegulations

* * * * *C. * * * If, however, the small business

issuer satisfies the eligibility criteria in Item305(a) of Regulation S–B (§ 228.305(a) of thischapter), the small business issuer mayprovide the abbreviated financial statementsrequired by Item 305 of Regulation S–Brather than the financial information in Item310 of Regulation S–B (§ 228.310 of thischapter).

* * * * *Item 11. Information with Respect to theRegistrant

(a) * * *(2) * * *(iv) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statements ofthe registrant meeting the requirements ofItem 305(b)(5) of Regulation S–K may befurnished pursuant to paragraphs (a)(2)(i) or(a)(2)(iii) of this Item.

(3) * * * Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X (§ 210.3–05 ofthis chapter). This option is available only ifthe business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K.

* * * * *(b) * * *(2) Include either: financial * * *(A) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statementsmeeting the requirements of Item 305(b)(5) ofRegulation S–K may be furnished pursuant toparagraph (b)(2)(i) of this Item.

(B) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

(C) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(b)(2) of this Item with respect to restatedfinancial statements of the registrant requiredby this Item.

* * * * *

Instruction to Item 11(a)(2), (a)(3) and (b)(2)

Abbreviated financial statements meetingthe requirements of Item 305 of RegulationS–K may be furnished with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K.

* * * * *PART II—INFORMATION NOT REQUIREDIN PROSPECTUS


If abbreviated financial statements arefurnished pursuant to Item 11(a)(3) or(b)(2)(B) with respect to businesses acquiredor to be acquired, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.If abbreviated financial statements arefurnished pursuant to Item 11(b)(2)(C) withrespect to restated financial statements of theregistrant, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.


(referenced in § 239.13) by revising thelast sentence of General Instruction II.C,adding Item 11(c) and Item 18 to readas follows:


Form S–3


* * * * *


* * * * *II. Application of General Rules andRegulations

* * * * *C. * * * If, however, the small business

issuer satisfies the eligibility criteria in Item305(a) of Regulation S–B (§ 228.305(a) of thischapter), the small business issuer mayprovide the abbreviated financial statementsrequired by Item 305 of Regulation S–Brather than the financial information in Item310 of Regulation S–B (§ 228.310 of thischapter).

* * * * *Item 11. Material Changes

* * * * *(c) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K:(1) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toItem 11(b)(i) with respect to businessesacquired or to be acquired, except that theinformation need only be provided for theperiods specified by Rule 3–05 of RegulationS–X. This option is available only if thebusiness acquired or to be acquired satisfies


the eligibility criteria in Item 305(a)(1) ofRegulation S–K.

(2) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toItems 11(b)(ii), 11(b)(iii) and 11(b)(iv) withrespect to restated financial statements of theregistrant.



If abbreviated financial statements arefurnished pursuant to Item 11(c)(1) withrespect to businesses acquired or to beacquired, furnish the full financial statementsrequired by Regulation S–X and theindependent accountant’s report thereon. Ifabbreviated financial statements arefurnished pursuant to Item 11(c)(2) withrespect to restated financial statements of theregistrant, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.


(referenced in § 239.16) by designatingthe undesignated paragraph followingparagraph (c)(2) of Instruction 1 ofInstructions as to the Prospectus asparagraph (c)(3) and adding paragraph(c)(4) and by adding paragraph 6 to theInstructions as to Exhibits to read asfollows:


Form S–6

For Registration Under the Securities Act of1933 of Securities of Unit Investment TrustsRegistered on Form N–8B–2

* * * * *Instructions as to the Prospectus

Instruction 1. Information to be Contained inProspectus

* * * * *(c) * * *(4) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K (§ 229.305 of this chapter)may be included in the prospectus in lieu ofthe financial statements required byparagraphs (c)(1) and (2) above. The optionto include abbreviated financial statements isavailable only to registrants satisfying theeligibility criteria in Item 305(a) ofRegulation S–K.

* * * * *Instructions as to Exhibits

* * * * *6. If abbreviated financial statements are

furnished pursuant to Instruction 1(c)(4) ofthe Instructions as to the Prospectus, furnishthe full financial statements required byInstructions 1(c)(1) and (2) of the Instructionsas to the Prospectus and the independentaccountant’s report thereon.

15. By amending Form S–8(referenced in § 239.16b) by adding anInstruction to Item 3(a) to read asfollows:


Form S–8


* * * * *PART II—INFORMATION REQUIRED INTHE REGISTRATION STATEMENT

Item 3. Incorporation of Documents byReference

* * * * *(a) * * *Instruction to Item 3(a). If the registrant’s

latest prospectus filed pursuant to Rule424(b) under the Act contains abbreviatedfinancial statements, the registrant shall notincorporate such prospectus by reference intothe Form S–8. In lieu thereof, the registrantshall incorporate its latest effectiveregistration statement filed under the Act thatcontains audited full financial statements forthe registrant’s latest fiscal year for whichsuch statements have been filed.


(referenced in § 239.18) by revising Item27 and adding paragraph (c) to Item 35to read as follows:


Form S–11

For Registration Under the Securities Act of1933 of Securities of Certain Real EstateCompanies

* * * * *Item 27. Financial Statements andInformation

Include in the prospectus either fullfinancial statements meeting therequirements of Regulation S–X (17 CFR 210)or abbreviated financial statements meetingthe requirements of Item 305 of RegulationS–K (§ 229.305 of this chapter). The option tofurnish abbreviated financial statements isavailable only to registrants satisfying theeligibility criteria in Item 305(a) ofRegulation S–K. In addition, include thesupplementary financial informationrequired by Item 302 of Regulation S–K(§ 229.302 of this chapter) and theinformation concerning changes in anddisagreements with accountants onaccounting and financial disclosure requiredby Item 304 of Regulation S–K (§ 229.304 ofthis chapter). Although all schedulesrequired by Regulation S–X are to beincluded in the registration statement, allsuch schedules other than those prepared inaccordance with Rules 12–12, 12–28 and 12–29 of the Regulation may be omitted from theprospectus.

* * * * *

INFORMATION NOT REQUIRED INPROSPECTUS

* * * * *Item 35. Financial statements and Exhibits

* * * * *(c) If abbreviated financial statements are

furnished pursuant to Item 27 of this Form,file the full financial statements meeting therequirements of Regulation S–X and theindependent accountant’s report thereon.


(referenced in § 239.25) by revising thelast sentence of General Instruction D.3;adding Item 10(b)(5), paragraph (iv) toItem 12(a)(2), a sentence at the end ofItem 12(a)(3); revising Item 14(e), addinga sentence at the end of Items 15, 16(a),17(a) and 17(b)(8); removing the words‘‘and Financial Statement Schedules’’from the caption to Item 21; removingItem 21(b), and redesignating Item 21(c)as Item 21(b); and adding Item 23 toread as follows:


Form S–4


* * * * *


* * * * *D. Application of General Rules andRegulations

* * * * *3. * * * Small business issuers shall

provide or incorporate by reference theinformation called for by Item 310 ofRegulation S–B (§ 228.310 of this chapter), or,if the small business issuer satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter),the abbreviated information in Item 305 ofRegulation S–B.

* * * * *Item 10. Information with Respect to S–3Registrants

* * * * *(b) * * *(5) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K:(i) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraph (b)(1) of this Item with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X (§ 210.3–05 of this chapter).This option is available only if the businessacquired or to be acquired satisfies theeligibility criteria in Item 305(a)(1) ofRegulation S–K.

(ii) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraphs (b)(2), (b)(3) and (b)(4) of this Item


with respect to restated financial statementsof the registrant.

* * * * *Item 12. Information With Respect to S–2 orS–3 Registrants

* * * * *(a) * * *(2) * * *(iv) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statements ofthe registrant meeting the requirements ofItem 305(b)(5) of Regulation S–K may befurnished pursuant to paragraphs (a)(2)(i) or(a)(2)(iii) of this Item.

(3) * * * Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to the businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

* * * * *(b) * * *(2) * * *(vi) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statements ofthe registrant meeting the requirements ofItem 305(b)(5) of Regulation S–K may befurnished pursuant to paragraph (b)(2)(i) ofthis Item.

(vii) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraph (b)(2)(ii) of this Item with respectto businesses acquired or to be acquired,except that the information need only beprovided for the periods specified by Rule 3–05 of Regulation S–X. This option is availableonly if the business acquired or to beacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

(viii) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraphs(b)(2)(iii), (iv) and (v) of this Item withrespect to restated financial statements of theregistrant required by this Item.

* * * * *Item 14. Information with Respect toRegistrants Other than S–2 or S–3 Registrants

* * * * *(e) Financial statements required by either

paragraph (e)(1) or (e)(2) of this Item:(1) Financial statements of the registrant

meeting the requirements of Regulation S–X(17 CFR Part 210) (Schedules required underRegulation S–X shall be filed pursuant toItem 23 ‘‘Financial Statements andSchedules,’’ of this Form) as well as anyfinancial information required by Rule 3–05and Article 11 of Regulation S–X; or

(2) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K, as well as anyfinancial information required by Rule 3–05and Article 11 of Regulation S–X.

(3) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraphs (1) and (2) of this Item withrespect to businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

* * * * *Item 15. Information with Respect to S–3Companies

* * * Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished for thecompany being acquired pursuant to Items 10and 11 of this Form if the company beingacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K.

Item 16. Information with Respect to S–2 orS–3 Companies

(a) * * * Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished for thecompany being acquired pursuant to Items 12and 13 of this Form if the company beingacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K.

* * * * *Item 17. Information With Respect toCompanies Other Than S–2 or S–3Companies

* * * * *(a) * * * Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished for thecompany being acquired pursuant to Item 14of this Form if the company being acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K and the registrantsatisfies the eligibility criteria in Item 305(a)of Regulation S–K.

(b) * * *(8) * * * If the registrant satisfies the

eligibility criteria in Item 305(a) ofRegulation S–K, abbreviated interim financialstatements of the company being acquiredmeeting the requirements of Item 305(b)(5) ofRegulation S–K may be furnished pursuant tothis paragraph.



(a) S–3 Registrants. If abbreviated financialstatements are furnished pursuant to Item10(b)(5)(i) with respect to the businessesacquired or to be acquired, furnish the fullfinancial statements required by RegulationS–X and the independent accountant’s reportthereon. If abbreviated financial statementsare furnished pursuant to Item 10(b)(5)(ii)with respect to the restated financialstatements of the registrant, furnish the fullfinancial statements required by Regulation

S–X and the independent accountant’s reportthereon.

(b) S–2 or S–3 Registrants. If abbreviatedfinancial statements are furnished pursuantto Item 12(a)(3) or 12(b)(2)(vii) with respectto the businesses acquired or to be acquired,furnish the full financial statements requiredby Regulation S–X and the independentaccountant’s report thereon. If abbreviatedfinancial statements are furnished pursuantto Item 12(b)(2)(viii) with respect to therestated financial statements of the registrant,furnish the full financial statements requiredby Regulation S–X and the independentaccountant’s report thereon.

(c) Registrants Other Than S–2 or S–3Registrants. If abbreviated financialstatements are furnished pursuant to Item14(e)(2) with respect to the financialstatements of the registrant, furnish the fullfinancial statements required by RegulationS–X and the independent accountant’s reportthereon. If abbreviated financial statementsare furnished pursuant to Item 14(e)(3) withrespect to the businesses acquired or to beacquired, furnish the full financial statementsrequired by Regulation S–X and theindependent accountant’s report thereon.

(d) S–3 Companies. If abbreviated financialstatements of the company being acquired arefurnished pursuant to Item 15, furnish thefull financial statements required byRegulation S–X and the independentaccountant’s report thereon.

(e) S–2 or S–3 Companies. If abbreviatedfinancial statements of the company beingacquired are furnished pursuant to Item 16,furnish the full financial statements requiredby Regulation S–X and the independentaccountant’s report thereon.

(f) Companies Other Than S–2 or S–3Companies. If abbreviated financialstatements of the company being acquired arefurnished pursuant to Item 17(a), furnish thefull financial statements required byRegulation S–X and the independentaccountant’s report thereon. If abbreviatedfinancial statements are furnished pursuantto Item 17(a) with respect to the otherbusinesses acquired or to be acquired,furnish the full financial statements requiredby Regulation S–X and the independentaccountant’s report thereon. If abbreviatedfinancial statements are furnished pursuantto Item 17(b)(7) with respect to the companybeing acquired, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.

(g) Furnish the financial statementschedules required by Regulation S–X (17CFR Part 210) and Item 14(e), Item 17(a), orItem 17(b)(9) of this Form. These schedulesshould be lettered or numbered in themanner described for exhibits in paragraph(a) of Item 21.

* * * * *18. By amending Form F–1

(referenced in § 239.31) by revisingItems 11(b) and (c), removing the words‘‘and Financial Statement Schedules’’from the caption to Item 16, removingparagraph (b) of Item 16, and addingItem 18 to read as follows:


Note—The text of Form F–1 does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form F–1


* * * * *Item 11. Information with respect to theRegistrant

Furnish the following information withrespect to the Registrant:

* * * * *(b) Information required by either

paragraph (b)(1) or (b)(2) of this Item:(1) Information required by Item 18 of

Form 20–F (Schedules required underRegulation S–X shall be filed pursuant toItem 18 ‘‘Financial Statements andSchedules,’’ of this Form) as well as anyinformation required by Rule 3–05 andArticle 11 of Regulation S–X (§ 210 of thischapter), except as provided by paragraph (c)of this Item; or

(2) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements of the registrant meetingthe requirements of Item 305 of RegulationS–K, as well as any information required byRule 3–05 and Article 11 of Regulation S–X.

(3) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

(c) Information required by eitherparagraph (1) or (2) of this Item:

(1) Information required by Item 17 ofForm 20–F may be furnished in lieu of theinformation specified by Item 18 thereof ifthe only securities to be issued pursuant tothis registration statement are non-convertible securities that are ‘‘investmentgrade securities,’’ as defined below, or theonly securities to be issued hereunder are tobe offered: (1) upon the exercise ofoutstanding rights granted by the issuer ofthe securities to be offered, if such rights aregranted on a pro rata basis to all existingsecurity holders of the class of securities towhich the rights attach and there is nostandby underwriting in the United States orsimilar arrangement; or (2) pursuant to adividend or interest reinvestment plan; or (3)upon the conversion of outstandingtransferable warrants issued by the issuer ofthe securities to be offered, or by an affiliateof such issuer; or

(2) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K, as well as anyinformation required by Rule 3–05 andArticle 11 of Regulation S–X.

(3) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to businesses acquired or to be

acquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.


(a) If abbreviated financial statements arefurnished pursuant to Items 11 (b)(2) or (3)of this Form, furnish the full financialstatements required by Item 18 of Form 20–F and the independent accountant’s reportthereon.

(b) If abbreviated financial statements arefurnished pursuant to Items 11 (c)(2) or (3)of this Form, furnish the full financialstatements required by Item 17 of Form 20–F and the independent accountant’s reportthereon.


(referenced in § 239.32) by amendingGeneral Instructions I.D and I.G byadding a sentence at the end of eachInstruction, adding paragraphs(b)(1)(A)–(C) to Item 11, adding asentence at the end of paragraph (b)(2)of Item 11, revising Item 12, revisingInstruction 4 to Item 12, and addingItem 18 to read as follows:


Form F–2


* * * * *


I. Eligibility Requirements for Use of Form F–2

* * * * *D. * * * This instruction does not apply

to any abbreviated financial statementsincluded in the prospectus pursuant to Item11(b) or 12(b) of this Form.

* * * * *G. * * * If the subsidiary satisfies the

eligibility criteria in Item 305(a) ofRegulation S–K (§ 229.305(a) of this chapter),abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished as specified in Form S–2.


(b) * * *(1) * * *(A) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to the businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

(B) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting the

requirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraphs(b)(1)(ii), (iii) or (iv) above with respect torestated financial statements of the registrantrequired by these paragraphs.

(2) * * *If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraph (b)(2)(i) above.

Item 12. Information with Respect to theRegistrant

The registrant shall incorporate byreference the latest Form 20–F, Form 40–F orForm 10–K filed pursuant to the ExchangeAct that contains certified financialstatements for the registrant’s latest fiscalyear for which a Form 20–F, Form 40–F orForm 10–K was required to have been filedand any report on Form 10–Q or Form 8–Kfiled since the end of the fiscal year coveredby such annual report. The registrant mayincorporate by reference any other Form 10–Q or Form 8–K, and any Form 6–Kcontaining information meeting therequirements of this Form. The registrantshall deliver with the prospectus theinformation required by paragraph (a) or (b)of this Item, except that only registrantssatisfying the eligibility criteria in Item305(a) of Regulation S–K may choose todeliver the information in paragraph (b).

(a) The latest Form 20–F, Form 40–F orForm 10–K and any report on Form 10–Q orForm 8–K required to be incorporated byreference into this Form, along with anyother Form 10–Q, Form 8–K or Form 6–Kincorporated by reference into this Form atthe registrant’s option.

(b) The information required by Part I ofForm 20–F and abbreviated financialstatements of the registrant meeting therequirements of Item 305 of Regulation S–K,as well as any information required by Rule3–05 and Article 11 of Regulation S–X.Abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished with respect to businessesacquired or to be acquired, except that theinformation need only be provided for theperiods specified by Rule 3–05 of RegulationS–X. This option is available only if thebusiness acquired or to be acquired satisfiesthe eligibility criteria in Item 305(a)(1) ofRegulation S–K. The registrant also shalldeliver any Form 10–Q, Form 8–K or Form6–K incorporated by reference into this Format the registrant’s option.

Instructions

* * * * *4. If the registrant elects to comply with

paragraph (a) of this Item, the Form 20–F,Form 40–F or Form 10–K shall be deliveredwith the preliminary prospectus but need notbe redelivered with the final prospectus to arecipient that had previously received theForm 20–F, Form 40–F or Form 10–K withthe preliminary prospectus.


If abbreviated financial statements arefurnished pursuant to Item 11(b)(1)(A) or


Item 12(b) with respect to businessesacquired or to be acquired, furnish the fullfinancial statements required by RegulationS–X and the independent accountant’s reportthereon. If abbreviated financial statementsare furnished pursuant to Item 11(b)(1)(B)with respect to restated financial statementsof the registrant, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.

20. By amending Form F–3(referenced in § 239.33) by adding asentence to the end of the note toGeneral Instruction I.A.5, by adding asentence to the end of GeneralInstruction I.B.1, I.B.2, I.B.3 and I.B.4,adding Item 11(c), and Item 18 to readas follows:


Form F–3


* * * * *General Instructions

I. Eligibility Requirements for Use of Form F–3

* * * * *A. Registrant Requirements * * *5. Majority-owned subsidiaries * * *Note: * * * If such subsidiary satisfies the

eligibility criteria in Item 305(a) ofRegulation S–K (§ 229.305(a) of this chapter),abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished as specified in Form S–3.

B. Transaction Requirements1. * * * If the registrant satisfies the

eligibility criteria in Item 305(a) ofRegulation S–K, abbreviated financialstatements meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to this Instruction.

* * * * *2. * * * If the registrant satisfies the

eligibility criteria in Item 305(a) ofRegulation S–K, abbreviated financialstatements meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to this Instruction.

3. * * * If the registrant satisfies theeligibility criteria in Item 305(a) ofRegulation S–K, abbreviated financialstatements meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to this Instruction.

4. * * * If the registrant satisfies theeligibility criteria in Item 305(a) ofRegulation S–K, abbreviated financialstatements meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to this Instruction.


(b)(1) * * *(A) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to the businesses acquired or to be

acquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

(B) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraphs(b)(ii), (iii) or (iv) above with respect torestated financial statements of the registrantrequired by these paragraphs.

(2) * * * If the registrant satisfies theeligibility criteria in Item 305(a) ofRegulation S–K, abbreviated interim financialstatements meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to paragraph (i) above.


If abbreviated financial statements arefurnished pursuant to paragraph (i) of Item11(b) with respect to businesses acquired orto be acquired, furnish the full financialstatements required by Regulation S–X andthe independent accountant’s report thereon.If abbreviated financial statements arefurnished pursuant to paragraph (ii), (iii) or(iv) of Item 11(b) with respect to restatedfinancial statements of the registrant, furnishthe full financial statements required byRegulation S–X and the independentaccountant’s report thereon.


(referenced in § 239.34) by adding Item10(c)(5), paragraph (iv) to Item 12(a)(2),a sentence at the end of Item 12(a)(3), asentence at the end of Item 12(a)(5),redesignating paragraph (h) of Item 14as paragraph (h)(1) of Item 14, addingparagraph (h)(2) to Item 14,redesignating current Item 15 asparagraph (a) to Item 15, addingparagraph (b) to Item 15, redesignatingcurrent Item 16 as paragraph (a) to Item16, adding paragraph (b) to Item 16,adding paragraph (c) to Item 17,removing the words ‘‘and FinancialStatement Schedules’’ from the captionto Item 21, removing paragraph (b) fromItem 21, redesignating paragraph (c) ofItem 21 as paragraph (b) of Item 21, andadding Item 23 to read as follows:


Form F–4


* * * * *Item 10. Information With Respect to F–3Companies * * *

(c) * * *(5) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K:(i) Abbreviated financial statements

meeting the requirements of Item 305 of

Regulation S–K may be furnished pursuant toparagraph (c)(1) of this Item with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K.

(ii) Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished pursuant toparagraphs (c)(2), (3) and (4) of this Item withrespect to restated financial statements of theregistrant.

* * * * *Item 12. Information With Respect to F–2 orF–3 Registrants

* * * * *(a) * * *(2) * * *(iv) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statements ofthe registrant meeting the requirements ofItem 305(b)(5) of Regulation S–K may befurnished pursuant to paragraph (a)(2)(i) ofthis Item.

(3) * * * Abbreviated financial statementsmeeting the requirements of Item 305 ofRegulation S–K may be furnished withrespect to the businesses acquired or to beacquired, except that the information needonly be provided for the periods specified byRule 3–05 of Regulation S–X. This option isavailable only if the business acquired or tobe acquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K.

* * * * *(b) * * *(2) * * *(vi) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated interim financial statements ofthe registrant meeting the requirements ofItem 305 of Regulation S–K may be furnishedpursuant to paragraph (i) above.

(vii) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(b)(2)(ii) of this Item with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K.

(viii) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraphs(b)(2)(iii), (iv) and (v) of this Item withrespect to restated financial statements of theregistrant required by this Item.

(3) * * *(ix) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to paragraph (3)(vii) of this Item. If


the registrant satisfies the eligibility criteriain Item 305(a) of Regulation S–K, abbreviatedfinancial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(3)(vii) of this Item with respect to businessesacquired or to be acquired, except that theinformation need only be provided for theperiods specified by Rule 3–05 of RegulationS–X. This option is available only if thebusiness acquired or to be acquired satisfiesthe eligibility criteria in Item 305(a)(1) ofRegulation S–K.

* * * * *Item 14. Information With Respect to ForeignRegistrants Other Than F–2 or F–3Registrants

(h) Financial statements required by eitherparagraph (1) or (2) of this Item:

(1) * * *(2) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K may be furnished withrespect to paragraph (h)(1) of this Item.Abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kalso may be furnished with respect tobusinesses acquired or to be acquired if suchbusinesses satisfy the eligibility criteria inItem 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K, except thatthe information need only be provided forthe periods specified by Rule 3–05 ofRegulation S–X.

* * * * *Item 15. Information With Respect to F–3Companies

(a) * * *(b) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K of the company beingacquired may be furnished pursuant to Items10 and 11 of this Form if the company beingacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K.

* * * * *Item 16. Information With Respect to F–2 orF–3 Companies

(a) * * *(b) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished for thecompany being acquired pursuant to Items 12and 13 of this Form if the company beingacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K.

* * * * *Item 17. Information With Respect to ForeignCompanies Other Than F–2 or F–3Companies

* * * * *(c) Abbreviated financial statements

meeting the requirements of Item 305 ofRegulation S–K may be furnished for thecompany being acquired pursuant to

paragraph (a) of this Item if the companybeing acquired satisfies the eligibility criteriain Item 305(a)(1) of Regulation S–K and theregistrant satisfies the eligibility criteria inItem 305(a) of Regulation S–K.


If abbreviated financial statements arefurnished pursuant to paragraph (b)(3)(ix) ofItem 12, paragraph (h)(2) of Item 14,paragraph (b) of Item 15, paragraph (b) ofItem 16, or paragraph (c) of Item 17 of thisItem, furnish full financial statementsmeeting the requirements of Item 17 or 18 ofForm 20–F, whichever is applicable. Ifabbreviated financial statements arefurnished pursuant to paragraph (c)(5)(i) ofItem 10, paragraph (a)(3) of Item 12, orparagraph (b)(2)(vii) of Item 12 of this Item,furnish full financial statements meeting therequirements of Regulation S–X with respectto businesses acquired or to be acquired. Ifabbreviated financial statements arefurnished pursuant to paragraph (c)(5)(ii) ofItem 10 or paragraph (b)(2)(viii) of Item 12above, furnish restated full financialstatements of the registrant meeting therequirements of Regulation S–X. Ifabbreviated financial statements arefurnished pursuant to paragraph (a)(2)(iv) orparagraph (b)(2)(vi) of Item 12 above, furnishinterim financial statements meeting therequirements of Regulation S–X.

22. By amending Form F–7(referenced in § 239.37) by adding aparagraph to the end of Item 1 to readas follows:


Form F–7


* * * * *Item 1. Home Jurisdiction Documents

* * * * *Notwithstanding the foregoing, the

prospectus may contain, in lieu of anyfinancial statements required in anyCanadian jurisdiction, if the bidder satisfiesthe eligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter)or Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements meeting therequirements of Item 305 of such regulation.


(referenced in § 239.38) by adding aparagraph to the end of Item 1 to readas follows:


Form F–8



* * * * *

Notwithstanding the foregoing, theprospectus may contain, in lieu of anyfinancial statements required in anyCanadian jurisdiction, if the bidder satisfiesthe eligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter)or Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements meeting therequirements of Item 305 of such regulation.




Form F–9








Form F–10









Form F–80





* * * * *27. By amending Form 1–A

(referenced in § 239.90) by revising PartF/S, by adding a sentence to the end ofsection (2), paragraph (f) to section (3)and paragraph (11) to Item 2 of Part IIIto read as follows:

Note—The text of Form 1–A does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form 1–A

Regulation A Offering Statement Under theSecurities Act of 1933

* * * * *PART F/S

* * * * *(2) Statements of income, cash flows, and

other stockholders equity—* * * If the issuersatisfies the eligibility criteria in Item 305(a)of Regulation S–B, the issuer may furnishabbreviated financial statements inaccordance with Item 305 of Regulation S–B,except that the information shall befurnished for the periods specified inparagraphs (1) and (2) above, in lieu of fullfinancial statements.

* * * * *(3) Financial Statements of Businesses

Acquired or to be Acquired.

* * * * *(f) If the issuer satisfies the eligibility

criteria in Item 305(a) of Regulation S–B, theissuer may furnish abbreviated financialstatements of the business acquired or to beacquired in accordance with Item 305 ofRegulation S–B, except that the informationshall be furnished for the periods specifiedunder paragraph (c) above, in lieu of fullfinancial statements. This option is availableonly if the business acquired or to beacquired satisfies the eligibility criteria inItem 305(a)(1) of Regulation S–B.

* * * * *PART III—EXHIBITS

* * * * *Item 2. Description of Exhibits

* * * * *(11) Financial statements—If

abbreviated financial statements arefurnished pursuant to Part F/S of thisForm, furnish the full financialstatements. If the full financial

statements furnished pursuant to thisparagraph are audited, furnish theindependent accountant’s report on thefull financial statements.* * * * *

PART 240—GENERAL RULES ANDREGULATIONS, SECURITIESEXCHANGE ACT OF 1934


Authority: 15 U.S.C. 77c, 77d, 77g, 77j,77s, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c,78d, 78i, 78j, 78l, 78m, 78n, 78o, 78p, 78q,78s, 78w, 78x, 78ll(d), 79q, 79t, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, 80b–4, and 80b–11, unless otherwise noted.

* * * * *29. By amending § 240.13e–3 by

adding paragraph (e)(4) to read asfollows:

§ 240.13e–3 Going private transactions bycertain issuers or their affiliates.

* * * * *(e) Disclosure of certain information.

* * * * *(4) In lieu of the information required

by paragraph (e)(1) of this sectionregarding information contained in Item14 of Schedule 13E–3 (§ 240.13e–3), ora fair and adequate summary thereof,the information set forth in thisparagraph (e)(4) may be disclosed.

(i) If the issuer or affiliate satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of thischapter) or Item 305(a) of Regulation S–K (§ 229.305(a) of this chapter),abbreviated financial statementsmeeting the requirements of Item 305 ofsuch regulation may be furnished.

(ii) Abbreviated Financial Statements.For purposes of this section:

(A) The term full financial statementsshall mean financial statements filedwith the Commission pursuant to Item14 of Schedule 13E–3.

(B) The term abbreviated financialstatements shall mean financialstatements that meet the requirements ofItem 305 of Regulation S–B or Item 305of Regulation S–K.

(iii) A disclosure documentcontaining abbreviated financialstatements shall not be deemedmaterially misleading or omittingmaterial facts from the disclosuredocument within the meaning of thefederal securities laws based on theomission from the disclosure documentof those financial statement footnotespermitted by Item 305 of Regulation S–B (§ 228.305 of this chapter) or Item 305of Regulation S–K (§ 229.305 of thischapter) deemed a part of the disclosuredocument, provided the issuer oraffiliate has complied with Item 305 of

Regulation S–B or Item 305 ofRegulation S–K.

(iv) The full financial statements thatare omitted from a disclosure documentpursuant to this paragraph (e)(4) shall bedeemed to be part of the disclosuredocument.

30. By amending § 240.13e–4 byadding paragraphs (d)(1)(v) and (i) toread as follows:

§ 240.13e–4 Tender offers by issuers.

* * * * *(d) Disclosure of certain information.(1) * * *(v) In lieu of the information required

by paragraph (d)(1)(iv) of this sectionregarding information contained in Item7 of Schedule 13E–4 (§ 240.13e–4), or afair and adequate summary thereof, ifthe issuer or affiliate satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of thischapter) or Item 305(a) of Regulation S–K (§ 229.305(a) of this chapter),abbreviated financial statementsmeeting the requirements of Item 305 ofsuch regulation may be furnished.* * * * *

(i) Abbreviated Financial Statements.(1) For purposes of this section 13e–4:

(i) The term full financial statementsshall mean financial statements filedwith the Commission pursuant to Item7 of Schedule 13E–4 or Item 1(a) ofSchedule 13E–4F.

(ii) The term abbreviated financialstatements shall mean financialstatements that meet the requirements ofItem 305 of Regulation S–B or Item 305of Regulation S–K.

(2) A disclosure document containingabbreviated financial statements shallnot be deemed materially misleading oromitting material facts from thedisclosure document within themeaning of the federal securities lawsbased on the omission from thedisclosure document of those financialstatement footnotes permitted by Item305 of Regulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the disclosure document, providedthe issuer or affiliate has complied withItem 305 of Regulation S–B or Item 305of Regulation S–K.

(3) The full financial statements thatare omitted from a disclosure documentpursuant to paragraph (d)(1)(v) of thissection or Item 1 of Schedule 13E–4Fshall be deemed to be part of thedisclosure document.

31. By amending § 240.13e–102 byredesignating paragraph (a) of Item 1 asparagraph (a)(1), adding a sentence atthe beginning of paragraph (a)(1) andadding paragraph (a)(2) to read asfollows:


§ 240.13e–102 Schedule 13E–4F. Tenderoffer statement pursuant to section 13(e)(1)of the Securities Exchange Act of 1934 and§ 240.13e–4 thereunder.* * * * *Item 1. Home Jurisdiction Documents

(a) (1) Furnish the information required byparagraph (a)(1) of this item to theCommission. Either the information requiredby paragraph (a)(1) or that required byparagraph (a)(2) of this Item shall befurnished to shareholders. If information isdelivered to shareholders pursuant toparagraph (a)(2) of this Item, suchinformation shall be furnished to theCommission. * * *

(2) Furnish the information required byparagraph (a)(1) of this Item, provided that inlieu of financial statements included in suchinformation, if the issuer satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter)or Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements meeting therequirements of Item 305 of such regulationmay be furnished.

* * * * *32. By amending § 240.14a–3 by

revising the third sentence in the ‘‘Noteto Small Business Issuers’’; by revisingparagraph (b)(1); following theparagraph (b)(1), redesignating Notes 1and 2 as Notes 2 and 3, and adding Note1 to read as follows:

§ 240.14a–3 Information to be furnished tosecurity holders.* * * * *

(b) * * *Note to Small Business Issuers. * * * A

small business issuer shall provide theinformation in Item 310(a) of Regulation S–B, or, provided that the small business issuersatisfies the eligibility criteria in Item 305(a)of Regulation S–B, the abbreviated financialstatements required by Item 305 ofRegulation S–B, in lieu of the financialinformation required by § 240.14a–3(b)(1)).* * *

(1) The report shall include, for theregistrant and its subsidiariesconsolidated, either:

(i) Audited balance sheets as of theend of the two most recent fiscal yearsand audited statements of income andcash flows for each of the three mostrecent fiscal years prepared inaccordance with Regulation S–X (Part210 of this chapter), except that theprovisions of Article 3 (other than§ 210.3–03(e), 210.3–04 and 210.3–20)and Article 11 shall not apply; or

(ii) If the registrant satisfies theeligibility criteria in Item 305(a) ofRegulation S–K, abbreviated financialstatements for the registrant and itssubsidiaries consolidated prepared inaccordance with Item 305 of RegulationS–K for the same periods specified in§ 240.14a–3(b)(1)(i). If abbreviatedfinancial statements are included in the

annual report to security holders, theregistrant shall append the full financialstatements required by Regulation S–Xand the independent accountant’s reportthereon to the copies of the reportmailed to the Commission pursuant toparagraph (c) of this section. If,however, the registrant has filed withthe Commission an annual report onForm 10–K for the same fiscal year onor before the date that the annual reportrequired by this section is delivered tosecurity holders, the registrant does nothave to append full financial statementsto the copies of the report mailed to theCommission, and the registrant mayfurnish the Form 10–K financialstatements to requesting persons insatisfaction of the delivery requirementset forth in Item 305(e) of Regulation S–K.

Note 1. Any financial statement schedulesor exhibits or separate financial statementsthat may otherwise be required in filingswith the Commission may be omitted. If thefinancial statements of the registrant and itssubsidiaries consolidated in the annualreport filed or to be filed with theCommission are not required to be audited,the financial statements required by thisparagraph (b) may be unaudited.

* * * * *33. By adding § 240.14a–16 to read as

follows:

§ 240.14a–16 Abbreviated financialstatements.

(a) For purposes of this section:(1) The term full financial statements

shall mean financial statements filedwith the Commission meeting therequirements of Regulation S–X (Part210 of this chapter), or, for smallbusiness issuers, Item 310 of RegulationS–B (§ 228.310 of this chapter).

(2) The term abbreviated financialstatements shall mean financialstatements that include the informationspecified in Item 305(b) of RegulationS–B (§ 228.305(b) of this chapter) orItem 305(b) of Regulation S–K(§ 229.305(b) of this chapter).

(b) A report furnished pursuant to§ 240.14a–3(b) containing abbreviatedfinancial statements shall not bedeemed materially misleading oromitting material facts from the reportwithin the meaning of the federalsecurities laws based on the omissionfrom the report of those financialstatement footnotes permitted by Item305 of Regulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the report, provided the issuer hascomplied with Item 305 of RegulationS–B or Item 305 of Regulation S–K.

(c) A proxy statement containingabbreviated financial statements

pursuant to Item 13 or 14 of Schedule14A (§ 240.14a–101 of this chapter)shall not be deemed materiallymisleading or omitting material factsfrom the proxy statement within themeaning of the federal securities lawsbased on the omission from the proxystatement of those financial statementfootnotes permitted by Item 305 ofRegulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the proxy statement, provided theissuer has complied with Item 305 ofRegulation S–B or Item 305 ofRegulation S–K.

(d) The full financial statements thatare omitted from a report or proxystatement shall be deemed to be part ofthe report or proxy statement.

34. By amending Schedule 14A(§ 240.14a–101) by revising the lastsentence in Note F, by revisingparagraph (2) of Note G, by revisingparagraph (3)(f) of Note G, by addingparagraph (a)(6) and Instruction 6 toItem 13 and by adding paragraphs(b)(1)(ii)(E), (b)(2)(i)(A)(5),(b)(2)(i)(B)(2)(vi), (b)(3)(i)(J) and(b)(3)(ii)(F) and Instruction 8 to Item 14to read as follows:

§ 240.14a–101 Schedule 14A. Informationrequired in proxy statement.* * * * *

Notes.

* * * * *F. Note to Small Business Issuers—* * *

Small business issuers shall provide thefinancial information in Item 310 ofRegulation S–B or, if the small businessissuer satisfies the eligibility criteria in Item305(a) of Regulation S–B, the abbreviatedfinancial statements required by Item 305 ofRegulation S–B, in lieu of the financialstatements required in Schedule 14A.

G. Special Note for Small Business Issuers.

* * * * *(2) Registrants and acquirees which relied

upon Alternative 1 in their most recent Form10–KSB may provide the followinginformation (Question numbers are inreference to Model A of Form 1–A): (a)Questions 37 and 38 instead of Item 6(d); (b)Question 43 instead of Item 7(a); (c)Questions 29–36 and 39 instead of Item 7(b);(d) Questions 40–42 instead of Item 8; (e)Questions 40–42 instead of Item 10; (f) theinformation required in Part F/S of Form 10–SB, or, if the small business issuer satisfiesthe eligibility criteria in Item 305(a) ofRegulation S–B, the abbreviated financialstatements required by Item 305 ofRegulation S–B, instead of the financialstatement requirements of Items 13 or 14(abbreviated financial statements may befurnished for a business acquired or to beacquired if the small business issuer satisfiesthe eligibility criteria in Item 305(a) ofRegulation S–B and the business acquired orto be acquired satisfies the eligibility criteriain Item 305(a)(1) of Regulation S–B); (g)


Questions 4, 11 and 47–50 instead of Item13(a)(1)(3); (h) Question 3 instead of Item14(b)(3)(i)(A) and (B); and (i) Questions 4, 11and 47–50 instead of Item 14(b)(3)(i)(H).

* * * * *(3) * * *(f) the information required in Part F/S of

Form 10–SB, or, if the small business issuersatisfies the eligibility criteria in Item 305(a)of Regulation S–B, the abbreviated financialstatements required by Item 305 ofRegulation S–B, instead of the financialstatement requirements of Items 13 or 14 ofSchedule 14A (abbreviated financialstatements may be furnished for a businessacquired or to be acquired if the smallbusiness issuer satisfies the eligibility criteriain Item 305(a) of Regulation S–B and thebusiness acquired or to be acquired satisfiesthe eligibility criteria in Item 305(a)(1) ofRegulation S–B);

Item 13. Financial and Other Information.* * *

(a) Information required. * * *

* * * * *(6) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to paragraph (a)(1) of this Item. Ifthe registrant satisfies the eligibility criteriain Item 305(a) of Regulation S–K, abbreviatedfinancial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(a)(1) above with respect to businessesacquired or to be acquired, except that theinformation need only be provided for theperiods specified by Rule 3–05 of RegulationS–X. This option is available only if thebusiness acquired or to be acquired satisfiesthe eligibility criteria in Item 305(a)(1) ofRegulation S–K.

* * * * *Instructions to Item 13. * * *6. If abbreviated financial statements are

included pursuant to paragraph (a)(6) of thisItem, the registrant shall append the fullfinancial statements required by RegulationS–X and the independent accountant’s reportthereon to the copies of the proxy statementfiled with the Commission pursuant to Rule14a–6 (17 CFR 240.14a–6). If, however, theregistrant previously has filed with theCommission full financial statements and theindependent accountant’s report thereon forthe same period in an annual report on Form10–K and any quarterly reports on Form 10–Q necessary to provide interim financialdisclosure, the registrant does not have toappend full financial statements to the copiesof the proxy statement filed with theCommission, and the registrant may furnishthe Form 10–K and 10–Q financialstatements and the independent accountant’sreport thereon to requesting persons insatisfaction of the delivery requirement setforth in Item 305(e) of Regulation S–K.

Item 14. Mergers, consolidations,acquisitions and similar matters

* * * * *(b) * * *(1) * * *(ii) * * *

(E) If the registrant satisfies the eligibilitycriteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(b)(1)(ii)(A) of this Item with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K. If the registrantsatisfies the eligibility criteria in Item 305(a)of Regulation S–K, abbreviated financialstatements of the registrant meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraphs(b)(1)(ii)(B), (C) or (D) of this Item.

* * * * *(2) Information with respect to S–2 or S–

3 registrants.

* * * * *(i) * * *(A) * * *(5) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(b)(2)(i)(A)(3) of this Item with respect tobusinesses acquired or to be acquired, exceptthat the information need only be providedfor the periods specified by Rule 3–05 ofRegulation S–X. This option is available onlyif the business acquired or to be acquiredsatisfies the eligibility criteria in Item305(a)(1) of Regulation S–K.

(B) * * *(2) * * *(vi) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph(b)(2)(i)(B)(2)(i) of this Item with respect tointerim financial information of theregistrant, paragraph (b)(2)(i)(B)(2)(ii) of thisItem with respect to businesses acquired orto be acquired, except that the informationneed only be provided for the periodsspecified by Rule 3–05 of Regulation S–X,paragraphs (b)(2)(i)(B)(2) (iii) and (iv) of thisItem with respect to restated financialstatements of the registrant, and paragraph(b)(2)(i)(B)(2)(v) of this Item with respect tofinancial information required because of amaterial disposition of assets outside of thenormal course of business. The option tofurnish abbreviated financial statements withrespect to businesses acquired or to beacquired is available only if the businessacquired or to be acquired satisfies theeligibility criteria in Item 305(a)(1) ofRegulation S–K.

* * * * *(3) Information with respect to registrants

other than S–2 or S–3 registrants. * * *(i) * * *(J) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to paragraph (b)(3)(i)(E) of this Item.

If the registrant satisfies the eligibility criteriain Item 305(a) of Regulation S–K, abbreviatedfinancial statements meeting therequirements of Item 305 of Regulation S–Kmay be furnished pursuant to paragraph (E)above with respect to businesses acquired orto be acquired, except that the informationneed only be provided for the periodsspecified by Rule 3–05 of Regulation S–X.This option is available only if the businessacquired or to be acquired satisfies theeligibility criteria in Item 305(a)(1) ofRegulation S–K.

(ii) * * *(F) If the registrant satisfies the eligibility

criteria in Item 305(a) of Regulation S–K,abbreviated financial statements of theregistrant meeting the requirements of Item305 of Regulation S–K may be furnishedpursuant to paragraphs (b)(3)(ii) (A) and (B)of this Item.

* * * * *Instructions to Item 14. * * *8. If abbreviated financial statements are

included pursuant to paragraphs (b)(1)(ii)(E),(b)(2)(i)(A)(5), (b)(2)(i)(B)(2)(vi), (B)(3)(i)(J), or(b)(3)(ii)(F) of this Item, the registrant shallappend the full financial statements requiredby Regulation S–X and the independentaccountant’s report thereon to the copies ofthe proxy statement filed with theCommission pursuant to Rule 14a–6 [17 CFR240.14a–6]. If, however, the registrantpreviously has filed with the Commissionfull financial statements and the independentaccountant’s report thereon for the sameperiod in an annual report on Form 10–K andany quarterly reports on Form 10–Qnecessary to provide interim financialdisclosure, the registrant does not have toappend full financial statements to the copiesof the proxy statement filed with theCommission, and the registrant may furnishthe Form 10–K and 10–Q financialstatements and the independent accountant’sreport thereon to requesting persons insatisfaction of the delivery requirement setforth in Item 305(e) of Regulation S–K.

* * * * *35. By amending § 240.14c–3 by

adding two sentences at the end ofparagraph (a)(1) and revising the thirdsentence in the ‘‘Note to Small BusinessIssuers’’ to read as follows:

§ 240.14c–3 Annual report to be furnishedsecurity holders.

(a) * * *(1) * * * If abbreviated financial

statements are included in the annualreport to security holders, the registrantshall append the full financialstatements required by Regulation S–Xand the independent accountant’s reportthereon to the copies of the reportmailed to the Commission pursuant toparagraph (c) of this rule. If, however,the registrant has filed with theCommission an annual report on Form10–K on or before the date that theannual report required by this rule isdelivered to security holders, theregistrant does not have to append full


financial statements to the copies of thereport mailed to the Commission, andthe registrant may furnish the Form 10–K financial statements to requestingpersons in satisfaction of the deliveryrequirement set forth in Item 305(e) ofRegulation S–K.

(2) * * *Note to Small Business Issuers. * * * A

small business issuer shall provide theinformation in Item 310(a) of Regulation S–B, or, if the small business issuer satisfies theeligibility criteria in Item 305(a) ofRegulation S–B, the abbreviated financialstatements required by Item 305 ofRegulation S–B, in lieu of the financialinformation required by Rule 14a–3(b)(1)(§ 240.14a–3(b)(1)).

* * * * *36. By adding § 240.14c–8 to read as

follows:

§ 240.14c–8 Abbreviated financialstatements.

(a) For purposes of this rule:(1) The term ‘‘full financial

statements’’ shall mean financialstatements filed with the Commissionmeeting the requirements of RegulationS–X (§ 210 of this chapter), or, for smallbusiness issuers, Item 310 of RegulationS–B (§ 228.310 of this chapter).

(2) The term ‘‘abbreviated financialstatements’’ shall mean financialstatements that include the informationspecified in Item 305(b) of RegulationS–B (§ 228.305(b) of this chapter) orItem 305(b) of Regulation S–K(§ 229.305(b) of this chapter).

(b) A report furnished pursuant to§ 240.14c–3 containing abbreviatedfinancial statements shall not bedeemed materially misleading oromitting material facts from the reportwithin the meaning of the federalsecurities laws based on the omissionfrom the report of those financialstatement footnotes permitted by Item305 of Regulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the report, provided the issuer hascomplied with Item 305 of RegulationS–B or Item 305 of Regulation S–K.

(c) An information statementcontaining abbreviated financialstatements pursuant to Item 1 ofSchedule 14C (§ 240.14c–101 of thischapter) shall not be deemed materiallymisleading or omitting material factsfrom the information statement withinthe meaning of the federal securitieslaws based on the omission from theinformation statement of those financialstatement footnotes permitted by Item305 of Regulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the information statement, provided

the issuer has complied with Item 305of Regulation S–B or Item 305 ofRegulation S–K.

(d) The full financial statements thatare omitted from a report or informationstatement shall be deemed to be part ofthe report or information statement.

37. By amending Schedule 14C(§ 240.14c–101) by revising the lastsentence in the Note to read as follows:

* * * * *Note: * * * Small business issuers shall

provide the financial information in Item 310of Regulation S–B or, if the small businessissuer satisfies the eligibility criteria in Item305(a) of Regulation S–B, the abbreviatedfinancial statements required by Item 305 ofRegulation S–B, in lieu of any financialstatements required by Item 1 of § 240.14c–101.

* * * * *38. By amending § 240.14d–1 by

adding paragraph (b)(3) to read asfollows:

§ 240.14d–1 Scope of and definitionsapplicable to Regulations 14D and 14E.

* * * * *(b) * * *(3) Abbreviated Financial Statements

(i) For purposes of this rule:(A) The term ‘‘full financial

statements’’ shall mean financialstatements filed with the Commissionpursuant to Item 9 of Schedule 14D–1,Item 1(a) of Schedule 14D–1F or Item1(a) of Schedule 14D–9F.

(B) The term ‘‘abbreviated financialstatements’’ shall mean financialstatements that meet the requirements ofItem 305 of Regulation S–B or Item 305of Regulation S–K.

(ii) A disclosure document containingabbreviated financial statements shallnot be deemed materially misleading oromitting material facts from thedisclosure document within themeaning of the federal securities lawsbased on the omission from thedisclosure document of those financialstatement footnotes permitted by Item305 of Regulation S–B (§ 228.305 of thischapter) or Item 305 of Regulation S–K(§ 229.305 of this chapter) deemed a partof the disclosure document, providedthe bidder or other filer has compliedwith Item 305 of Regulation S–B or Item305 of Regulation S–K.

(iii) The full financial statements thatare omitted from a disclosure documentpursuant to paragraph (e)(1)(x) of Rule14d–6, Item 1(a) of Schedule 14D–1F orItem 1(a) of Schedule 14D–9F shall bedeemed to be part of the disclosuredocument.

39. By amending § 240.14d–6 byadding paragraph (e)(1)(x) to read asfollows:

§ 240.14d–6 Disclosure requirements withrespect to tender offers.

* * * * *(e) Information to be included(1) * * *(x) In lieu of the information required

by paragraph (e)(1)(viii) above regardinginformation contained in Item 9 ofSchedule 14D–1, or a fair and adequatesummary thereof, if the bidder satisfiesthe eligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of thischapter) or Item 305(a) of Regulation S–K (§ 229.305(a) of this chapter),abbreviated financial statementsmeeting the requirements of Item 305 ofsuch regulation may be furnished.

40. By amending § 240.14d–102 byredesignating paragraph (a) of Item 1 asparagraph (a)(1), adding a newparagraph (a) introductory text andadding paragraph (a)(2) to read asfollows:

§ 240.14d–102 Schedule 14D–1F. Tenderoffer statement pursuant to rule 14d–1(b)under the Securities Exchange Act of 1934.* * * * *Item 1. Home Jurisdiction Documents

(a) Furnish the information required byparagraph (a)(1) of this item to theCommission. Either the information requiredby paragraph (a)(1) or that required byparagraph (a)(2) of this item shall befurnished to shareholders. If information isdelivered to shareholders pursuant toparagraph (a)(2) of this item, suchinformation shall be furnished to theCommission.

(1) * * *(2) Furnish the information required by

paragraph (a)(1) above, provided that in lieuof financial statements included in suchinformation, if the bidder satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter)or Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements meeting therequirements of Item 305 of such regulationmay be furnished.

41. By amending § 240.14d–103 byredesignating paragraph (a) of Item 1 asparagraph (a)(1), adding a newparagraph (a) introductory text andadding paragraph (a)(2) to read asfollows:

§ 240.14d–103 Schedule 14D–9F.Solicitation/recommendation statementpursuant to section 14(d)(4) of theSecurities Exchange Act of 1934 and rules14d–1(b) and 14e–2(c) thereunder.* * * * *

Item 1. Home Jurisdiction Documents.(a) Furnish the information required by

paragraph (a)(1) of this item to theCommission. Either the information requiredby paragraph (a)(1) or that required byparagraph (a)(2) of this item shall befurnished to shareholders. If information isdelivered to shareholders pursuant to


paragraph (a)(2) of this item, suchinformation shall be furnished to theCommission.

(1) * * *(2) Furnish the information required by

paragraph (a)(1) above, provided that in lieuof financial statements included in suchinformation, if the bidder satisfies theeligibility criteria in Item 305(a) ofRegulation S–B (§ 228.305(a) of this chapter)or Item 305(a) of Regulation S–K(§ 229.305(a) of this chapter), abbreviatedfinancial statements meeting therequirements of Item 305 of such regulationmay be furnished.

* * * * *

PART 249—FORMS, SECURITIESEXCHANGE ACT OF 1934

* * * * *42. The authority for Part 249

continues to read, in part, as follows:Authority: 15 U.S.C. 78a, et seq., unless

otherwise noted.

43. By amending Form 10–K(referenced in § 249.310) by deleting thesecond sentence in Item 8, and addinga sentence at the end of Note 1 toGeneral Instruction G to read as follows:

Note—The text of Form 10–K does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form 10–K

Annual Report Pursuant to Section 13 or15(d) of the Securities Exchange Act of 1934


* * * * *G. Information to be Incorporated by

Reference.

* * * * *Note 1. * * * In addition, if abbreviated

financial statements are included in theregistrant’s annual report that is incorporatedby reference, then full financial statementsmeeting the requirements of Regulation S–Xshall be filed under Item 8.

44. By amending Form 10–KSB(referenced in § 249.310b) by addingparagraph 2(c) to the GeneralInstructions to read as follows:

Note—The text of Form 10–KSB does not,and this amendment will not, appear in theCode of Federal Regulations.

Form 10–KSB


* * * * *E. Information to be Incorporated by

Reference.

* * * * *2. * * *

* * * * *(c) If abbreviated financial statements are

included in the registrant’s annual report thatis incorporated by reference, then fullfinancial statements meeting the

requirements of Regulation S–B shall be filedunder Item 7.

By the Commission.Dated: June 27, 1995.

Margaret H. McFarland,Deputy Secretary.


Note: The following appendices will notappear in the Code of Federal Regulations.

Appendix A—Summary of CommonFootnote Disclosures That Would Be OmittedFrom Abbreviated Financial Statements

The proposed rules for abbreviatedfinancial statements would omit footnotedisclosure included in the full financialstatements, except with respect to a limitednumber of specified matters. Those specifiedmatters are discussed in the proposingrelease. The following is a summary of themajor types of disclosures that wouldtypically be omitted from abbreviatedfinancial statements of commercial andindustrial companies. It may be useful inevaluating the general extent to which thevolume of footnote disclosures would bereduced. The listing is not intended toinclude every specific disclosure that wouldbe omitted, nor is it intended to define whatdisclosures would be omitted under theproposed rules. The listing does notspecifically address additional footnotedisclosures that may be required in fullfinancial statements of registrants inspecialized industries. However, suchdisclosures would be omitted from the notesto the abbreviated financial statements unlesstheir inclusion is required in response to amatter specified for disclosure under theproposed rules. Certain informationregarding the financial statement captionslisted below is required to be shown on theface of the full financial statements, and thatinformation also is required on the face of theabbreviated financial statements.

Omitted Disclosures by Major FinancialStatement Caption

CashRestrictions, compensating balances

InventoriesAmounts by major classes, LIFO

information, long term contract termsand conditions, billed and unbilledamounts

Investment securitiesTypes, maturities, realized and unrealized

gains or losses, sales and transfers

Loan impairment information

Depreciable assetsAmounts by major classes, depreciation

expense, depreciable livesIntangible assets

Amounts by major classes, amount andreasons for significant additions,deletions and writeoffs, amortizationperiods

Investments accounted for under the equitymethod

Nature of investment, percentageownership, market value, summarizedfinancial information of investee

Amount of assets subject to lienLease information

Operating leasesAmounts expensed, commitments, future

minimum lease payments, contingentrentals, terms and effects of sale-leaseback transactions

Capital leasesAssets subject to capital lease, interest

portion of obligation, future minimumlease payments

Long-term obligationsTerms, maturities, sinking fund

requirements, security interests,covenants, nature and terms ofextinguishments, terms and effects oftroubled debt restructurings, capitalizedinterest amounts, rates used to discountcertain liabilities

On-balance sheet and off-balance sheetfinancial instruments

Financial instrumentsTerms and characteristics of both on-

balance sheet and off-balance sheetfinancial instruments, notional orcontract amounts, concentrations ofcredit risk, amount of possibleaccounting loss on off balance sheetinstruments

Hedging activitiesNature of activities and offsetting amounts,

risksDerivativesNature, terms and objectives,

characteristics by category, notional orcontract amounts

Fair value disclosuresPension, post-employment, and post-

retirement benefit plan informationDescription of plan, details of the expense,

plan assets, plan benefit obligations, netasset or liability recognized, assumptionsregarding weighted-average assumeddiscount rate, rate of compensationincrease used to measure the projectedbenefit, weighted-average expected long-term rate of return on plan assets, andhealth care cost trend rate, nature andgain or loss on curtailment of settlementof plan

Income taxesComponents of tax expense, components of

deferred tax assets/liabilities and anyvaluation allowance, reconciliation ofthe effective income tax rate,carryforward information, nature andamounts of deferred taxes not recognizeddue to special exceptions to SFAS 109

Redeemable preferred stockDetails of preferences, redemption terms

and amountsStockholders equity

Details of preferences, redemption terms,conversion features, voting rights,restrictions on net assets or payments ofdividends, details of sales of stock bysubsidiaries

Stock options and warrantsAmounts granted, exercised, terminated

and exercisable, changes in terms orexercise prices

Employee stock ownership plans (ESOPs)Details of plan, compensation expense

during the period, number of shareallocated and committed to be released,fair value of unearned ESOP shares andthe existence of any obligation to


repurchase shares including the fairvalue of such shares

CommitmentsPurchase, sale, delivery, guarantees etc.

Gain contingenciesNonmonetary transactionsTransfers of receivable with recourseEarnings per share

Supplementary earnings per sharereflecting recent conversions orissuances of debt or equity securities

Cash flowsInterest and taxes paid, noncash

transactions, sales, purchases, andmaturities of investment securities

Research and development costs

Restructuring changesNature and basis for the charge, description

of major restructuring actions, amountsexpensed by category, description andnumber of employees to be terminated,nature and extent to which actualrestructuring action differed fromoriginal plan

Segment, geographic and currencytranslation information

Business segment informationRevenues, operating profit or loss,

identifiable assets, depreciation andcapital expenditures

Revenue from major customersForeign operationsReveues, operating profit or loss,

identifiable assetsCurrency translationBalances, nature of foreign currency

translated, exchange gains or lossesincluded in net income

Foreign exchange contractsContract amounts and nature of foreign

currencyCertain Risks and Uncertainties as defined

by AICPA SOP 94–6

Disclosures specified by recently issued orproposed FASB standards that would beomitted from abbreviated financialstatements

Accounting for the impairment of long-livedassets and for long-lived assets to bedisposed of (SFAS 121)

A description of impaired assets and factsand circumstances leading toimpairment

The amount of the impairment loss andhow fair value was determined

The caption in the income statement inwhich the impairment loss is recognized

The business segment affected (ifapplicable)

Accounting for stock optionsAny additional disclosures that may be

required by the proposed FASBstatement with respect to disclosure ofstock option compensation.

Appendix B—Disclosure Guidelines Fromthe 1983 Study

The following disclosure guidelines arereproduced from Summary Reporting ofFinancial Information, published in 1983 bythe Financial Executives ResearchFoundation. The Guidelines were developedby the companies participating in the 1983FERF study subsequent to the preparation oftheir prototype summary annual reports.

These guidelines are based on theaccounting and disclosure standards in effectin 1983. They have not been updated forchanges since then.

General GuidelinesSEC Rule. The guidelines presume that the

summary report would not be materiallymisleading. This is implicit in SEC Rule10(b)(5) and was among the instructionsgiven to the nineteen companies thatprepared mock summary reports.

Format. No specific guidelines arerecommended for the format of summaryreports. Companies should have flexibility tomake the most meaningful presentation oftheir individual circumstances.

Narrative Financial Review. A summaryreport should include a narrative financialreview. The authors believe that thesummary reports that communicated mosteffectively were those that contained anarrative financial review in whichmanagement presented the company’sfinancial results in layman’s language. Inaddition, the financial review serves as aplace to include all significant financialinformation, so as to avoid the duplicationwhich occurs in many of today’s annualreports. Also, the financial review provides aplace where material now contained in thenotes to the financial statements in technicalterms can be explained in everyday language.

The reporting on various aspects of theresults of operations, of financial position,and of changes in financial position in anarrative financial review should be on anexception basis. For example, companies thatare not incurring any liquidity problems orthat do not lack resources would not berequired to include ‘‘boilerplate’’ languagecovering these matters.

There should be total flexibility as toformat and location of a narrative financialreview. For example, a company couldpresent such a discussion in an expandedletter to shareholders, if it wishes.

Basic Financial Statements. A summaryreport should include a balance sheet and anincome statement covering a minimum oftwo years. These could be condensed fromthose presented in the Form 10–K.

Funds flow information should bepresented and should indicate the principalsources and uses of funds for a minimum oftwo years. This may be a condensedstatement of changes in financial position, orany suitable alternative, such as a table orgraph with a narrative explanation.

Notes. The style and placement of footnote-type disclosures, when required by thesummary reporting guidelines, are optional.The traditional footnote format is acceptablebut not required.

Guidelines for Specific Disclosures

Segment Data. A summary annual reportshould disclose industry and geographicsegment data if necessary to give the readeran understanding of the company’s business.

Industry segment data should include adescription of the segments, sales by segmentand some meaningful measure of segmentearnings (e.g., operating income or netearnings).

Disclosure of identifiable assets, capitalexpenditures and depreciation expense by

industry segment may be necessary if theywould indicate a relationship amongindustry segments that is different from thatwhich a reader might presume fromobserving sales and income.

Encouraged disclosure. Companies areencouraged to provide additional informationto aid readers in understanding thecompany’s lines of business. Disclosures,such as rate of return on investment bysegment, would be helpful in analyzingoperations by segment.

Companies are encouraged to disclosemajor operations outside the United States,especially when such operations are incountries that are politically or economicallyunstable.

In addition, disclosing major customerinformation is encouraged.

Accounting Policies and AccountingChanges. A company’s accounting policiesshould be disclosed if:

• The policies are unique to the industry.• There are acceptable alternative

accounting principles that could be used andthe choice would result in significantlydifferent reported financial results.

Factors to consider in determining whetheror not to disclose an accounting policyinclude how much impact the policy mayhave on the financial statements and whethera reader would expect the policy to bedisclosed.

In addition, any material accountingchanges should be disclosed, along with theeffects of the changes on financial position oroperating results.

Contingencies and Uncertainties. Summaryreports should disclose specificcontingencies that could, on resolution, havea material effect on financial position oroperation results.

Acquisition and Dispositions. Summaryreports should disclose significantacquisitions and dispositions of businesses,so the reader can more easily compare year-to-year reported financial results.

Encourgaged disclosure. A company isencouraged to disclose the business reasonsfor an acquisition or disposition if thatinformation might aid the reader inunderstanding the event and its importance.

Long-term Debt. The total amount of long-term debt at the latest balance sheet dateshould be disclosed, including capitalizedlease obligations. Scheduled maturities ofthis debt for each of the five years subsequentto the latest balance sheet date should bedisclosed if it is anticipated that thematurities may cause or contribute toliquidity problems.

Restrictive loan covenants (e.g., dividendrestrictions, working capital requirements,interest coverage ratios) should be disclosedif the company is in or near violation of acovenant at the balance sheet date, or therestrictions significantly impede the flow offunds from subsidiaries to the parentcompany or from the company to theshareholders.

Encouraged disclosure. Disclosure is alsoencouraged for larger than usual annual debtmaturities, unusual financing and abnormalinterest rates.

Financial information on UnconsolidatedSubsidiaries and Equity Investees. The


entities should be identified and thepercentages of ownership disclosed. Inaddition, aggregate totals of the followingshould be disclosed:

• Amount of the company’s equity inearnings.

• Dividends received.• Condensed balance sheet information.Short-term Debt. The total amount of short-

term debt and the amount of unused lines ofcredit at the latest balance sheet date shouldbe disclosed.

Income Taxes. Companies should explainwhy the effective tax rate differs from thestatutory tax rate, if there is a significantdifference. Current guidance used by publiccompanies would continue to apply in asummary report to determine materialitythresholds for disclosure. Such anexplanation could be in the form of areconciliation or be accomplished vianarrative discussion.

The amount of any significant operatingloss or investment tax credit carryforwardsthat the company expects to use should bedisclosed.

Changing Prices Information. No minimumguidelines are proposed.

Encouraged disclosure. Companies areencouraged to include whatever quantitativeinflation-adjusted data they considerappropriate and to provide a narrativediscussion of the effects of inflation onreported financial results.

Quarterly Data. No minimum guidelinesare proposed.

Market Price Data. No minimum guidelinesare proposed.

Encouraged disclosure. Disclosure of themarket price of the company’s common stockis encouraged. This information could be ona monthly, quarterly or annual basis,indicating the highs, lows or averages for theperiod. The degree of detail would dependon the volatility of the stock’s price.

Selected Five-year Data. Both incomestatement and balance sheet data for a periodof least five years should be presented. At aminimum, this disclosure should include theitems required by the SEC’s selected financialdata rule—revenues, income from continuingoperations, income per share from continuingoperations, total assets, long-term obligationsand cash dividends declared per commonshare.

Encouraged disclosure. Companies areencouraged to disclose trend information,such as rate of return on investment, thatwould help the reader evaluate long-termperformance and trends in financial position.

Pension and Employee Benefit Plans. Nominimum guidelines are proposed, pendingthe forthcoming guidance from the FASB’scurrent pension accounting project.

Detail of Inventory and Property. Nominimum guidelines are proposed.

Leases. Five-year maturities of capitalizedlease obligations should be disclosed if thematurities may be the cause of or contributeto liquidity problems. Such disclosure wouldtypically be included with long-term debtmaturity information.

Companies that have significant leases asa lessor should disclose information on theiractivities as a lessor, so the average readercan understand the business. Also,

significant commitments for noncancelableoperating leases should be disclosed.

Encouraged disclosure. Disclosure ofsignificant leasing transactions and othertypes of financing arrangements isencouraged.

Shareholders’ Equity. Minimum disclosureincludes:

• The number of common sharesoutstanding at the latest balance sheet date.

• The components of shareholders’ equityin the balance sheet at a minimum, abreakdown of retained earnings, totalpreferred stock and the total of commonstock accounts.

• Total dividends declared.• Restrictions on the payment of dividends

due to loan or other covenants in cases wherefuture dividend payments may be in jeopardybecause the company is in or near violationof these covenants.

Extraordinary Items. Extraordinary itemsmerit ample explanation to help the averagereader understand the significant items thataffect the comparability of reported financialresults. Both the nature of the items andeffect on the financial statements should bedisclosed.

Other Income and Expense Data.Significant components of other income andexpense should be disclosed if they wouldassist the average reader in understanding thecomparability of reported financial results.

Other Specific Expenses. No minimumguidelines are proposed for depreciation,research and development, interest andadvertising expenses.

Encouraged disclosure. Companies areencouraged to disclose these expenses whenthey are significant.

Capitalized Interest. No minimumguidelines are proposed.

Capital Expenditures and Firm PurchaseCommitments. Companies should disclosecurrent year capital expenditures. Nominimum guidelines are proposed for firmpurchase commitments that are in theordinary course of business.

Encouraged disclosure. Disclosure isencouraged of planned capital expendituresfor the next year and beyond, if significant,as well as significant commitments and anyplans for major new capital projects.

Related Party Disclosures. Disclosureshould include related party transactions orrelationships where it is necessary for thereader to understand their present orpotential future effects on results ofoperations or financial position.

Prior Period Adjustments. Any adjustmentof prior period financial statements should bedisclosed, along with reasons, to inform thereader that comparative financial informationis different from that previously issued.

Ratios (Other Than Earnings Per Share). Nominimum guidelines are proposed.

Encouraged disclosure. Companies areencouraged to show ratios that would bemeaningful indicators of the results ofoperations, funds flow and financial position.

Earnings Per Share. Earnings per shareamounts should be disclosed. In addition,fully diluted earnings per share should bedisclosed if it is significantly different fromprimary earnings per share.

Treasury Stock. Significant amounts ofcommon stock held in the treasury should be

disclosed. It is presumed that significantacquisitions of treasury shares would bedisclosed in the funds flow data.

Preferred stock. Significant types ofpreferred stock should be disclosed asseparate line items in the balance sheet. Anyscheduled maturities of preferred stock withmandatory redemption features should bedisclosed if they may cause or contribute toliquidity problems.

Reports on Financial Statements

Report of Management. Companies areencouraged to include a management report.It could explain the basis on which thefinancial information is prepared andmanagement’s objectives in simplifying thepresentation of financial information toshareholders and state that the Form 10–K isavailable upon request.

Report of Independent Accountants. Asummary report should state, at a minimum,that the audited financial statements,including the independent accountants’report, are available in the Form 10–K. Inaddition, if the independent accountants’report is qualified for a matter other thanconsistency due to a change in accounting,such qualification should be mentioned inthe summary report.

Illustration of Independent Auditors’ Report

Report on condensed Financial Statements ofa Public Entity Included in a SummaryAnnual Report

Independent Auditors’ Report

Blank Company

We have audited the consolidated balancesheets of Blank Company and subsidiaries asof December 31, 19x5 and 19x4 and therelated consolidated statements of income,stockholders’ equity, and cash flows for theyears then ended. Such consolidatedfinancial statements and our report thereondated March 15, 19x6, expressing anunqualified opinion (which are not presentedherein) are included in Appendix A to theproxy statement for the 19x6 annual meetingof stockholders. The accompanyingcondensed consolidated financial statementsare the responsibility of the Company’smanagement. Our responsibility is to expressan opinion on such condensed consolidatedfinancial statements in relation to thecomplete consolidated financial statements.

In our opinion, the information set forth inthe accompanying condensed consolidatedbalance sheets as of December 31, 19x5 and19x4 and the related condensed consolidatedstatements of income, stockholders’ equityand cash flows for the years then ended isfairly stated in all material respects inrelation to the basic consolidated financialstatements from which it has been derived.

Appendix C—SEC Request for InvestorSuggestions on How to Improve theFinancial Information Provided in AnnualReports and Other Disclosure DocumentsSent to Shareholders

The U.S. Securities and ExchangeCommission (‘‘the SEC’’), the federalgovernment agency that oversees disclosureof information about companies to investors,wants to hear from investors about how they


use the annual report to shareholders that theSEC requires most companies to send theirshareholders every year. These annualreports are required to contain financialstatements, including notes to the financialstatements, as well as other informationabout the company.

The SEC is proposing changes to its rulesthat would affect annual reports and otherdisclosure documents, such as prospectuses,containing financial statements that the SECrequires to be sent to investors. Some peoplehave suggested that the information nowrequired is too long and complex, and coulddiscourage investors from examining thefinancial information they receive.Streamlining this information could highlightwhat is most important to investors. Inaddition, companies and their shareholdersmight be able to save substantial printing,mailing and other costs if the informationwere streamlined.

The proposed changes to the SEC ruleswould allow companies to include‘‘abbreviated financial statements’’ in theirannual reports and other documents sent toinvestors. Abbreviated financial statementswould be the same as the financialstatements now required, except that most ofthe notes could be omitted. The completefinancial statements, with all of the notes,would still be filed with the SEC, andcompanies would have to send thisinformation to investors promptly if theyrequested it.

The SEC also is asking questions aboutother approaches to streamlining theinformation given to investors. For example,should it allow companies to give theirshareholders a ‘‘summary annual report’’ thatincludes financial information that is morecondensed than abbreviated financialstatements? Should it totally rescind therequirement that companies send theirshareholders an annual report, and leave itup to the companies to decide when andwhat to communicate to shareholders?

The SEC would like information about howinvestors use the financial information theyreceive, and whether the proposed rulechanges would be helpful to them. Sincemany people now have computers, the SECwould like to hear whether investors preferto receive information about companies inwhich they invest in electronic format or inpaper.

In addition, the SEC is proposing changesto its rules that would streamline disclosuresabout executive and director compensationin companies’ annual proxy statements.Some of the information now required couldbe put into the company’s Form 10–K reportinstead of the proxy statement. The Form 10–K is required to be filed with the SEC andprovided to shareholders by the companyupon request. The proposed rules also wouldrequire some of the director compensationinformation to be put in tabular form.

Here is a series of questions. We urge youto respond, whether you answer one questionor all, or just have general comments. Feelfree to use this form or write a separate lettermarked ‘‘File No. S7–13–95.’’

Please mail your comments to the SEC sothey arrive no later than October 10, 1995.Directions for sending your comments to the

SEC are provided at the end of thisdocument. The SEC will make yourcomments and other comments received bythe SEC available to the public. In additionto receiving written comments, the SECintends to hold focus groups composed ofinvestors to assess investors’ views as to theusefulness of sample abbreviated financialstatements, as compared with full financialstatements.

1. Do you read notes to the financialstatements?Yes ll No ll

Do you find notes to the financialstatements useful in making financialdecisions?Yes ll No ll

Please add any comments you like aboutwhy the notes are or are not useful.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

2. The SEC proposes to allow companies tosend investors ‘‘abbreviated financialstatements’’ that are the same as full financialstatements except for limiting the number ofnotes. Notes would be limited to thosecovering the following matters:1. Basis of presentation of the abbreviated

financial statements.2. Accounting policies.3. Changes in accounting principle.4. Restatements and reclassifications.5. Changes in accounting estimate.6. Business combinations.7. Discontinued operations.8. Circumstances identified in explanatory

language added to the independentaccountant’s standard report.

9. Loss contingencies.10. Events of default under credit

agreements.11. Related party transactions.12. Bankruptcies and quasi-reorganizations.13. Subsequent events.

All other financial statement notes wouldbe available from the company on requestand would be on file with the SEC. Are theresome notes you would always want to seethat are not set forth above?Yes ll No ll

If yes, please identify which notes youwould want to see.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

Are there notes listed above that you feelcould be omitted?Yes ll No ll

If yes, please identify which notes could beomitted.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

3. What information is the most useful inthe annual report to shareholders—financialstatements or other information?Financial statements most useful llOther information most useful ll

If you think it is other information, pleasedescribe the type of other information thatyou find the most useful.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

4. Would you like to receive shorterdocuments, with less financial information, ifyou could still get the more detailedinformation by asking the company for it?Yes ll No ll

Please explain:lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

5. Should the SEC continue to require thatcompanies send shareholders annual reports?Yesll No ll

If the SEC does continue to require annualreports, should it continue to tell companieswhat information should go into thosereports, instead of leaving it up to thecompany?Yesll No ll


6. Financial statements are also in manyprospectuses. Do you examine the financialstatements in prospectuses?Yesll No ll

Would you be more likely to read thefinancial statements in a prospectus if theywere shorter, with fewer notes?Yesll No ll


7. Do you have easy access to a computerwith a modem?Yesll No ll

If yes, do you use the computer to getinformation about companies in which youare a shareholder or are consideringinvesting?Yesll No ll

Would you like to continue to get financialand other information from companies inpaper even if you can get it electronically?Yesll No ll

Please explain or comment. If you do usethe computer to get information about


1 17 CFR 228.402 and 229.402.2 17 CFR 249.310 and 249.310b.3 17 CFR 240.14a–101.4 15 U.S.C. 78a et seq.5 Throughout this release, references to proxy

statements include information statements.6 The discussion of Form 10–K in this release also

includes Form 10–KSB.7 In order to encourage individual investor

comments and suggestions, a ‘‘plain English’’solicitation of comment is included in anotherrelease issued today (33–7183), relating to proposalsfor abbreviated financial statements. This ‘‘plainEnglish’’ solicitation of comment also solicitsinvestor comment on the proposed changes to theexecutive compensation disclosure requirements; acopy may be obtained by calling 1–800–SEC–0330.

companies, describe what kind ofinformation you get, and what database youget it from.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

8. The SEC proposes to allow companies toprovide some information about executiveand director compensation in the Form 10–K rather than the annual proxy statement.The proposed rule changes still wouldrequire the following information to remainin the proxy statement:1. Summary Compensation Table2. Option Grants3. Director Compensation4. Compensation Committee Interlocks5. Compensation Committee Report on

Executive Compensation6. Graph of the Company’s Shareholder

ReturnsThe SEC proposes to allow companies to

move the following information to the Form10–K:7. Option Exercises and Value of Options

Held8. Long-Term Incentive Plan Awards9. Pension Plans10. Employment Contracts and Arrangements11. Repricing of Options

Please state which of these items you findmost useful, and give any explanation youwish to add:lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

Of the items proposed to be moved, arethere any that you would like to continue tohave in the proxy statement?Yes ll No ll

If yes, which ones? Add any comments youwish.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

Of the items proposed to be retained in theproxy statement, are there any that you feelcould be moved to the Form 10–K?Yes ll No ll

If yes, which ones? Add any comments youwish.lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

9. Would you like to receive shorter annualproxy statements, with less informationabout the details of executive compensation,if you could still get the more detailedinformation by asking the company for it?Yes ll No ll

Please explain:

lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

How to Mail Your Ideas and Suggestions tothe SEC:

• This form can be mailed to the SEC byfolding it in half, with the return addressshowing. Please staple or tape this formclosed. No postage is necessary.

• If you do not wish to use this form, youcan write a letter directly to the SEC. Markyour letter ‘‘File No. S7–13–95,’’ and send itto Jonathan G. Katz, Secretary, Securities andExchange Commission, 450 Fifth Street,N.W., Washington, D.C. 20549.

• Remember to send your ideas andsuggestions in time to arrive by October 10,1995.

Do You Want Further Information AboutWhat the SEC is Considering?

• If you would like a copy of the completeSEC releases that describe what the SEC isconsidering, write to Office of ConsumerAffairs, Securities and ExchangeCommission, Attn: Jonathan M. Gottsegen,Mail Stop 2–6, 450 Fifth Street, N.W.,Washington, D.C. 20549. Please state whetheryou are asking for the release proposing‘‘abbreviated financial statesments’’ or therelease proposing changes to informationabout executive and director compensation,or both.

Thank You For Responding.

Your Name lllllllllllllllStreet Address llllllllllllllCityllll State llll Zip llll


17 CFR Parts 228, 229, 240 and 249

[Release Nos. 33–7184; 34–35894; File No.S7–14–95]

RIN 3235–AG50

Streamlining and Consolidation ofExecutive and Director CompensationDisclosure

AGENCY: Securities and ExchangeCommission.ACTION: Proposed Rule.

SUMMARY: The Securities and ExchangeCommission (‘‘Commission’’) today isproposing amendments that wouldpermit registrants to provide in theForm 10–K some of the executivecompensation disclosure that iscurrently required in the proxystatement furnished to shareholders. Inaddition, amendments to the format ofdisclosure regarding directorcompensation are being proposed inorder to improve the presentation.

DATES: Comments on the proposedamendments should be received on orbefore September 8, 1995.ADDRESSES: Comments should besubmitted in triplicate to Jonathan G.Katz, Secretary, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549. Commentletters should refer to File No. S7–14–95. All comments received will beavailable for public inspection andcopying in the Commission’s PublicReference Room, 450 Fifth Street, N.W.,Washington, D.C. 20549.FOR FURTHER INFORMATION CONTACT:Elizabeth M. Murphy or William B.Haseltine, Special Counsels, at (202)942–2910, Division of CorporationFinance, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Mail Stop 3–12, Washington, D.C.20549.SUPPLEMENTARY INFORMATION: TheCommission is proposing amendmentsto Item 402 of Regulations S–B and S–K 1 and to Forms 10–K and 10–KSB 2

and Schedule 14A 3 under the SecuritiesExchange Act of 1934 (‘‘ExchangeAct’’).4 The annual proxy andinformation statement 5 would bestreamlined by allowing some of themore detailed compensation disclosurerequired by Item 402 of Regulations S–B and S–K to be provided in the annualreport on Form 10–K 6 filed with theCommission rather than included in theproxy or information statementfurnished to shareholders. Theproposals also would affect directorcompensation disclosure, which wouldremain in the proxy statement, byconsolidating certain elements of thatdisclosure into an easier-to-read tabularformat that provides information foreach director.7

I. Discussion of Proposals

A. Annual Proxy StatementStreamlining—Location ofCompensation Disclosure

Under the proposal, registrants couldreduce the detailed executive


8 This is the information required by Item 402(b),(c), (g), (j), (k), and (l) of Regulation S–K [17 CFR229.402(b), (c), (g), (j), (k) and (l)]. Small businessissuers are not required to provide interlocksinformation, the Board Compensation CommitteeReport, or the Performance Graph. Thus, under theproposal, their proxy statements would includeonly the Summary Compensation Table, theOption/SAR Grants table, and disclosure of directorcompensation.

9 Comment is specifically solicited on whetherthe performance graph should be moved to theannual report to shareholders. See text below at n.15.

10 17 CFR 240.14a–3(b)(10).

11 Currently, the Repricing Report is required onlyin an annual election of directors proxy orinformation statement. Under the proposal, thiswould instead appear in the Form 10–K, with theretained proviso that this information is not deemedto be incorporated by reference into any otherSecurities Act or Exchange Act filing.

12 This is the information required by Item 402(d),(e), (f), (h) and (i) of Regulation S–K [17 CFR229.402(d), (e), (f), (h) and (i)].

13 See Item 8(b)–(d) of Schedule 14A.14 Such proxy statements include information

required by Item 10 of Schedule 14A, which isrelated to and builds upon the Item 402information.

15 See Rule 14a–3(b) [17 CFR 240.14a–3(b)].16 Item 303 of Regulation S–B and S–K [17 CFR

228.303 and 229.303].17 Suggestions have been made that disclosure of

director compensation should be enhanced in orderto assist shareholders who rely on board oversightas an accountability mechanism. See ‘‘Report of theNACD Blue Ribbon Commission on DirectorCompensation,’’ National Association of CorporateDirectors (‘‘NACD’’), June 19, 1995. Theamendments regarding the presentation of directorcompensation disclosure proposed in this releaseare intended to assist shareholders by making thedisclosure more readable and easily understood, butare not being proposed in response to the recentlyissued NACD report. Upon a thorough review of thereport and further study of the issues raised by theNACD, the Commission will determine whetheradditional revisions to director compensationdisclosure should be proposed.

compensation information provided inthe proxy statement by insteadfurnishing that information in the Form10–K. The proxy or informationstatement could include only thefollowing items: 8

• Summary Compensation Table.• Option/SAR Grants Table.• Compensation of Directors (as

proposed to be revised).• Additional Information with

Respect to Compensation CommitteeInterlocks and Insider Participation inCompensation Decisions.

• Board Compensation CommitteeReport on Executive Compensation.

• Performance Graph.9Some have suggested that this

information is that upon which mostinvestors focus, and that provision of allof the other executive compensationdisclosures required by Item 402 (the‘‘remaining disclosures’’) may actuallydetract from a full understanding of thedisclosure items listed above, or reducethe likelihood that investors will focuson these disclosure items. Theremaining disclosures would bereported in Item 11 of Part III of Form10–K. Pursuant to Rule 14a–3(b)(10),10

registrants must include an undertakingin either their proxy statements or theirannual reports to security holders toprovide without charge, upon writtenrequest, a copy of the Form 10–K for themost recent fiscal year. Therefore, theremaining executive compensationdisclosure would be available tosecurity holders upon request.

Comment is solicited on whetherregistrants should be permitted to movethe specified disclosure items to theForm 10–K only if the Form 10–Kcontaining these items is filed prior toor at the same time as the proxy orinformation statement is first sent toshareholders. Comment is also solicitedon whether registrants should have toprovide the Form 10–K containing theremaining executive compensationdisclosure upon security holders’ oralrequest.

The following information would bemoved from the annual proxy orinformation statement to the Form 10–K:

• Aggregated Option/SAR Exercisesand Fiscal Year-End Option/SAR ValueTable.

• Long-Term Incentive Plan AwardsTable.

• Defined Benefit or Actuarial PlanDisclosure.

• Employment Contracts andTermination of Employment andChange-in-Control Arrangements.

• Report on Repricing of Options/SARs.11

Comment is requested as to theappropriateness of the proposed moveof the disclosure to the Form 10–K foreach of the above items.12 Should any orall of the items remain in the annualproxy or information statement becausethey are generally of interest to allshareholders in voting on directorcandidates, and thus warrant an annualdelivery requirement in connection withthe election of directors? Are any of theitems proposed to be moved necessaryor helpful to a shareholderunderstanding of the disclosureprovided in the SummaryCompensation Table or BoardCompensation Committee Report?Should the Option/SAR Grants Table bekept together with the AggregatedOption/SAR Exercises and Fiscal Year-End Option/SAR Value Table, and if so,would it be more appropriate to requirethis information in the proxy statementor the Form 10–K?

The streamlined executivecompensation disclosure would applyonly to proxy statements involving theannual election of directors, but not tothose involving approval ofcompensation or retirement plans oroption grants.13 Comment is solicited onwhether the items remaining in theproxy statement are the most pertinentones for shareholders considering theelection of directors, and whether theproposed streamlined disclosure shouldalso apply to proxy statements involvingthe approval of compensation orretirement plans or option grants.14 Arethere any other types of proxysolicitations or shareholder meetings forwhich any or all of such items shouldbe included in the proxy statement? Is

it appropriate to retain the proxystatement disclosure requirement for theitems proposed to be retained in theproxy statement?

Should the company be given thechoice of including the performancegraph in the annual report to securityholders delivered to investors,15 whereit would be placed in the context of thecompany’s financial statements,Management’s Discussion andAnalysis,16 and other matters relating tothe company’s performance, rather thanin the proxy statement? In that case, ifthe company chooses to include somegraphic presentation of performance inthe annual proxy or informationstatement, should it be required toinclude the mandated performancegraph as well? Should the performancegraph be required to be included in theannual report to security holders,where, as noted, it would be placed incontext, even if it is also presented inthe proxy statement?

B. Format of Director CompensationDisclosure

The Commission proposes to makethe presentation of several commonelements of director compensationdisclosure that lend themselves to atabular presentation, e.g., annualretainer fees, meeting fees, and stockand option awards, clearer and moreconcise by replacing the currentnarrative disclosure of suchcompensation with a new table thatwould be entitled, ‘‘DirectorCompensation for Last Fiscal Year.’’ 17

The elements of director compensationthat do not as readily lend themselvesto a tabular presentation, e.g., retirementbenefits and legacy programs, as well asmandated or voluntary explanations ofamounts presented in the table, wouldbe discussed in notes or narrativeimmediately following the table.Disclosure of director compensationwould remain a proxy statementrequirement in order for shareholders to


18 17 CFR 229.402(g). Item 402(f) is the analogousprovision in Regulation S–B [17 CFR 228.402(f)].

19 This is the information currently required byItem 402(g)(1) of Regulation S–K [17 CFR229.402(g)(1)].

20 Current Item 402(a)(6) of Regulation S–K [17CFR 229.402(a)(6)] and Item 402(a)(5) of RegulationS–B [17 CFR 228.402(a)(5)] would be revised topermit the omission of the table or column.

21 This is the information currently required byItem 402(g)(2) of Regulation S–K [17 CFR240.402(g)(2)].

22 17 CFR 228.404 and 229.404.23 The consolidated table would be entitled,

‘‘Director Compensation and Transactions for LastFiscal Year.’’

24 15 U.S.C. 78w(a).

have this information in consideringtheir vote for the election of directors.

As proposed to be revised, Item 402(g)of Regulation S–K 18 would containessentially the same disclosure ascurrently required, but the new tablewould require individual informationfor the last fiscal year to be given foreach director who was not named in theSummary Compensation Table. Thenew table would exclude informationabout directors who also are executiveofficers named in the SummaryCompensation Table to avoid repetitivedisclosure, since any compensationsuch individuals receive in theircapacity as directors would be includedin the Summary Compensation Table.Comment is solicited on whether itwould be appropriate to require adescription of standard arrangements,such as directors’ fees, for directorsnamed in the Summary CompensationTable, by means of a note to the DirectorCompensation Table.19

For each director not named in theSummary Compensation Table, the newtable would require disclosure of bothcash and stock compensation providedto the director for services renderedduring the registrant’s last fiscal year.The table would consist of six columnsrequiring disclosure of:

• The director’s name.• The amount of any annual retainer

fees paid to the director for service onthe Board and Board Committees.

• The amount of any separate feespaid for attendance at Board andCommittee meetings.

• The amount of any consulting fees,special assignment fees or other specialcompensatory fees.

• The number of any shares of stockgranted.

• The number of securitiesunderlying any stock options/SARsgranted.

As is the case with other Item 402tables, a column could be omitted fromthe table if there was no disclosurerequired under that caption.20 Theamounts of annual retainer fees andmeeting fees set forth in the table wouldinclude any premium paid to a directorfor serving as a committee chairperson.With respect to these amounts,registrants would have the option ofeither setting forth the actual amount ofthe annual retainer fee and meeting fees

paid to each director for services duringthe last completed fiscal year or simplydescribing any standard compensatoryarrangements established by theregistrant regarding payment of annualretainer and meeting fees, similar to thedisclosure that currently is required innarrative form.

For example, if a director received theregistrant’s standard annual retainer feeof $10,000 and standard committeechair fee of $5000, the annual retainercolumn could state either ‘‘$10,000annual retainer and $5000 committeechair fee,’’ or state only ‘‘$15,000.’’Similarly, if a director received theregistrant’s standard $1000 per boardmeeting fee and $500 per committeemeeting fee, resulting in aggregatemeeting fee payments of $7500 for theyear, the meeting fee column could stateeither ‘‘$1000 per board meeting fee and$500 per committee meeting fee,’’ orstate only ‘‘$7500.’’ Comment issolicited on whether the Commissionshould require, in each column,disclosure of the actual aggregate dollaramount compensation paid to eachdirector during the last fiscal year,rather than standard compensatoryarrangements, and if so, whether a noteto the table should briefly describe thearrangements pursuant to which thecompensation was given.

In cases where some, but not all, ofthe registrant’s directors listed in thetable received compensation pursuant tostandard arrangements, the standardfees could be reflected in the table onlyfor the directors receiving such fees. Theactual amounts of any non-standard feeswould have to be set forth in the tablefor the directors receiving the non-standard fees.

The following types of compensatoryarrangements, whether standard or non-standard arrangements, generally wouldnot lend themselves as readily to atabular presentation and wouldtherefore continue to be presented innarrative:

• Retirement and pension benefits.• Death benefits to the director’s

heirs.• Insurance benefits.• Legacy and other charitable

programs.• Other non-cash and non-stock

benefits.Consistent with current requirements,

the material terms of any non-standardcompensatory arrangement would haveto be disclosed, as well as the amountpaid.21 With respect to consultingcontracts and other non-standard

arrangements for which amounts arepresented in the new table, the materialterms of these arrangements could be setforth either in a note to the table ornarrative immediately following thetable.

Comment is solicited as to whetherthere are any elements of directorcompensation proposed to be presentedin the new table that should bediscussed narratively, and vice versa.Could any of the compensatory itemsproposed to be described in narrativeform be readily measured in currentdollars (e.g., because they involvecurrent cash or stock allocations) andtherefore be easily and efficientlyreported in tabular form?

Furthermore, as proposed, disclosurewould not have to be providedregarding the grant date market value ofany stock provided to directors inconsideration for their service on theboard, nor would the exercise price ofany options/SARs granted to directors,or other terms of such grants, have to bedisclosed. Comment is solicited onwhether this disclosure should berequired. The proposed table also doesnot include information required byItem 404 of Regulations S–B and S–K(Certain Relationships and RelatedTransactions),22 except to the extent it isalso compensation information requiredby Item 402(g). Comment is solicited onwhether it would be useful toconsolidate Item 404 information withrespect to directors into the DirectorCompensation Table.23

II. Request for Comment

Any interested person wishing tosubmit written comments on theproposed amendments to executive anddirector compensation disclosure, aswell as other matters that might have animpact on the proposed amendments, isrequested to do so. Comment is solicitedfrom the point of view of registrants,shareholders, and other users ofinformation about the compensation ofexecutives and directors. TheCommission also requests comment onwhether the proposed rules, if adopted,would have an adverse impact oncompetition that is neither necessarynor appropriate in furthering thepurposes of the Exchange Act.Comments responsive to this inquirywill be considered by the Commissionin complying with its responsibilitiesunder Section 23(a) of the ExchangeAct.24


III. Cost-Benefit Analysis

To evaluate fully the costs andbenefits associated with the proposals,the Commission requests commenters toprovide views and data as to the costsand benefits associated therewith. Theproposal to permit certain informationto be provided in Form 10–K rather thanthe proxy statement is expected tobenefit registrants by lowering costsassociated with printing and mailing ofinformation currently required to befurnished to shareholders. The proposalto revise the format of directorcompensation disclosure should notappreciably affect costs to the registrantspreparing such information.

IV. Summary of Initial RegulatoryFlexibility Analysis

An Initial Regulatory FlexibilityAnalysis has been prepared inaccordance with 5 U.S.C. 603concerning the proposed amendments.The analysis notes that the proposedamendments are intended to reduce theinformation regarding executivecompensation included in proxy orinformation statements, while keepingin mind the Commission’s goal ofproviding useful information toinvestors at a reasonable cost tocompanies.

As discussed more fully in theanalysis, some of the registrants that theproposed amendments would affect aresmall entities, as defined by theCommission’s rules. The proposedamendments would decrease the costfor all issuers, including smallbusinesses.

The analysis discusses possiblealternatives to the proposedamendments including, among others,establishing different compliance or

reporting requirements for small entitiesor exempting them from all or part ofthe proposed requirements. Given thefact that small business issuers willreceive a favorable impact from theproposed rules, the Commission doesnot believe that any of the alternativesare preferable at this time.

Comments are encouraged on anyaspect of this analysis. A copy of theanalysis may be obtained by contactingWilliam B. Haseltine, Office ofDisclosure Policy, Division ofCorporation Finance, Securities andExchange Commission, 450 Fifth Street,N.W., Washington, D.C. 20549.

V. Statutory BasisThe amendments to Item 402 of

Regulations S–B and S–K are beingproposed pursuant to Sections 3(b), 6, 7,8, 10 and 19(a) of the Securities Act,Sections 12, 13, 14(a), 15(d) and 23(a) ofthe Exchange Act, and Sections 8, 20,24, 30 and 38 of the InvestmentCompany Act of 1940.

List of Subjects in 17 CFR Parts 228,229, 240 and 249

Reporting and recordkeepingrequirements, and Securities.

Text of the ProposalsIn accordance with the foregoing,

Title 17, Chapter II of the Code ofFederal Regulations is proposed to beamended as follows:



Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j,77k, 77s, 77aa(25), 77aa(26), 77ddd, 77eee,

77ggg, 77hhh, 77jjj, 77nnn, 77sss, 78l, 78m,78n, 78o, 78w, 78ll, 80a–8, 80a–29, 80a–30,80a–37, 80b–11, unless otherwise noted.

2. By amending § 228.402 by revisingparagraphs (a)(5), (a)(7) and (f) to readas follows:

§ 228.402 (Item 402) Executivecompensation.

(a) * * *(5) Omission of table or column. A

table or column may be omitted, if therehas been no compensation awarded to,earned by or paid to any of the namedexecutives or directors required to bereported in that table or column in anyfiscal year covered by that table.* * * * *

(7) Location of specified information.The information required by paragraphs(d), (e), (g) and (h) of this item need notbe provided in a proxy or informationstatement pursuant to Item 8(a) ofSchedule 14A (§ 240.14a–101 of thischapter), but may instead be provided inthe registrant’s Form 10–KSB(§ 249.310b of this chapter). Theinformation required by paragraph (h) ofthis item will not be deemed to beincorporated by reference into any filingunder the Securities Act or theExchange Act, except to the extent thatthe registrant specifically incorporates itby reference.* * * * *

(f) Compensation of directors. (1) Theinformation specified in paragraph (f)(2)of this item, regarding certain types ofcompensation paid or provided in thelast completed fiscal year to eachdirector of the registrant, except adirector who is a named executiveofficer, shall be disclosed in the tabularformat specified below:

DIRECTOR COMPENSATION FOR LAST FISCAL YEAR

Name

Cash compensation Security grants

Annual re-tainer fees

($)

Meetingfees ($)

Consultingfees/otherfees ($)

Number ofshares (#)

Number ofsecuritiesunderlying

options/SARs (#)

(a) (b) (c) (d) (e) (f)

Director ADirector BDirector C

(2) The Table shall include:(i) The name of the director (column

(a));(ii) Cash and Cash-Equivalent

Compensation paid or provided to thedirector (columns (b), (c) and (d)),including:

(A) The dollar value (cash and non-cash) of any annual retainer fees forservice on the Board and any BoardCommittees, including any premium forchairing a committee (column (b));

(B) The aggregate dollar value (cashand non-cash) of any fees for attendance

at Board and Committee meetings,including any premium for chairing acommittee (column (c)); and

(C) The aggregate dollar value (cashand non-cash) of any consulting feespaid or provided to the directorpursuant to a consulting contract


entered into in consideration of thedirector’s service on the board, as wellas any special assignment fees and anyother non-stock compensation paid orprovided to the director inconsideration of the director’s serviceon the board; and

Instructions to Item 402(f)(2)(ii)1. Amounts deferred at the election of a

director, whether pursuant to a planestablished under Section 401(k) of theInternal Revenue Code [26 U.S.C. 401(k)], orotherwise, shall be included in columns (b),(c), or (d) as appropriate. The fact that theamounts have been deferred may beexplained in a note to the table.

2. For any form of non-cash compensation,disclose the fair market value at the time thecompensation is provided.

3. In lieu of stating the dollar value of anyannual retainer fee (column (b)), or aggregatedollar value of any meeting fees (column (c)),actually paid or provided to each director forservices during the last completed fiscal year,the standard compensatory arrangement foreach individual director receiving theregistrant’s standard fees may be described.For example, if Director A received aregistrant’s standard annual retainer fee of$10,000 and standard meeting fees of $1000per board meeting and $500 per committeemeeting, ‘‘$10,000’’ would be set forth incolumn (b) and ‘‘$1000 per board meetingand $500 per committee meeting’’ would beset forth in column (c). If Director B receivedthe registrant’s standard annual retainer feeof $10,000 plus a $5000 standard premiumfor serving as a committee chairperson,‘‘$15,000’’ would be set forth in column (b).If Director C received non-standard retainerand/or meeting fees, the actual amount of thefees paid or provided to Director C wouldhave to be set forth in columns (b) and/or (c).

(iii) Any grant of securities to thedirector for any service provided as adirector, including:

(A) the number of any shares granted(column (e)); and

(B) the number of securitiesunderlying any stock options or SARsgranted (column (f)).

Instruction to Items 402(f)(2)(ii) and (iii)

The material terms of any non-standardarrangements, including consulting contracts,pursuant to which any of the directors namedin the table was compensated for any serviceprovided as a director during the registrant’slast completed fiscal year shall be providedin a note to the table or in narrative followingthe table.

(3) Describe the material terms of anyarrangements, standard or otherwise,pursuant to which any director of theregistrant was compensated for servicesduring the last fiscal year for services asa director, that are not required to bedisclosed in the table required byparagraphs (f)(1) and (2) of this Item.Such arrangements include, e.g.,retirement and pension benefits,insurance benefits, death benefits to thedirector’s heirs, legacy and othercharitable award program benefits. Withrespect to each arrangement described,state the name of the director thatreceived compensation pursuant to thearrangement and state any amount paidduring the last completed fiscal year.* * * * *

PART 229—STANDARDINSTRUCTIONS FOR FILING FORMSUNDER SECURITIES ACT OF 1933,SECURITIES EXCHANGE ACT OF 1934AND ENERGY POLICY ANDCONSERVATION ACT OF 1975—REGULATION S–K

3. The authority citation for part 229continues to read in part as follows:

Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j,77k, 77s, 77aa(25), 77aa(26), 77ddd, 77eee,77ggg, 77hhh, 77iii, 77jjj, 77nnn, 77sss, 78c,78i, 78j, 78l, 78m, 78n, 78o, 78w, 78ll(d), 79e,79n, 79t, 80a–8, 80a–29, 80a–30, 80a–37,80b–11, unless otherwise noted.

4. By amending § 229.402 by revisingparagraphs (a)(6), (a)(8) and (g) to readas follows:

§ 229.402 (Item 402) Executivecompensation.

(a) * * *(6) Omission of table or column. A

table or column may be omitted, if therehas been no compensation awarded to,earned by or paid to any of the namedexecutives or directors required to bereported in that table or column in anyfiscal year covered by that table.* * * * *

(8) Location of specified information.The information required by paragraphs(k) and (l) of this item need not beprovided in any filings other than aregistrant proxy or informationstatement relating to an annual meetingof security holders at which directorsare to be elected (or special meeting orwritten consents in lieu of suchmeeting). The information required byparagraphs (d), (e), (f), (h), and (i) of thisitem need not be provided in a proxy orinformation statement pursuant to Item8(a) of Schedule 14A (§ 240.14a–101 ofthis chapter), but may instead beprovided in the registrant’s Form 10–K(§ 249.310 of this chapter). Theinformation required by paragraphs (i),(k) and (l) of this item will not bedeemed to be incorporated by referenceinto any filing under the Securities Actor the Exchange Act, except to theextent that the registrant specificallyincorporates it by reference.* * * * *

(g) Compensation of directors. (1) Theinformation specified in paragraph (g)(2)of this item, regarding certain types ofcompensation paid or provided for thedirector’s service in the last completedfiscal year to each director of theregistrant, except a director who is anamed executive officer, shall bedisclosed in the tabular format specifiedbelow:

DIRECTOR COMPENSATION FOR LAST FISCAL YEAR

Name

Cash compensation Security grants

Annual re-tainer fees

($)

Meetingfees ($)

Consultingfees/otherfees ($)

Number ofshares (#)

Number ofSecuritiesunderlying

options/SARs (#)

(a) (b) (c) (d) (e) (f)

Director ADirector BDirector C

(2) The Table shall include:(i) The name of the director (column

(a));

(ii) Cash and Cash-EquivalentCompensation paid or provided to the

director (columns (b), (c) and (d)),including:


(A) The dollar value (cash and non-cash) of any annual retainer fees forservice on the Board and any BoardCommittees, including any premium forchairing a committee (column (b));

(B) The aggregate dollar value (cashand non-cash) of any fees for attendanceat Board and Committee meetings,including any premium for chairing acommittee (column (c)); and

(C) The aggregate dollar value (cashand non-cash) of any consulting feespaid or provided to the directorpursuant to a consulting contractentered into in consideration of thedirector’s service on the board, as wellas any special assignment fees and anyother non-stock compensation paid orprovided to the director inconsideration of the director’s serviceon the board; and

Instructions to Item 402(g)(2)(ii)1. Amounts deferred at the election of a

director, whether pursuant to a planestablished under Section 401(k) of theInternal Revenue Code [26 U.S.C. 401(k)], orotherwise, shall be included in columns (b),(c), or (d) as appropriate. The fact that theamounts have been deferred may beexplained in a note to the table.

2. For any form of non-cash compensation,disclose the fair market value at the time thecompensation is provided.

3. In lieu of stating the dollar value of anyannual retainer fee (column (b)), or aggregatedollar value of any meeting fees (column (c)),actually paid or provided to each director forservices during the last completed fiscal year,the standard compensatory arrangement foreach individual director receiving theregistrant’s standard fees may be described.For example, if Director A received aregistrant’s standard annual retainer fee of$10,000 and standard meeting fees of $1000per board meeting and $500 per committeemeeting, ‘‘$10,000’’ would be set forth incolumn (b) and ‘‘$1000 per board meetingand $500 per committee meeting’’ would beset forth in column (c). If Director B receivedthe registrant’s standard annual retainer feeof $10,000 plus a $5000 standard premiumfor serving as a committee chairperson,‘‘$15,000’’ would be set forth in column (b).If Director C received non-standard retainerand/or meeting fees, the actual amount of thefees paid or provided to Director C wouldhave to be set forth in columns (b) and/or (c).

(iii) Any grant of securities to thedirector for any service provided as adirector, including:

(A) the number of any shares granted(column (e)); and

(B) the number of securitiesunderlying any stock options or SARsgranted (column (f)).

Instruction to Items 402(g)(2) (ii) and (iii)

The material terms of any non-standardarrangements, including consulting contracts,pursuant to which any of the directors namedin the table was compensated for any serviceprovided as a director during the registrant’s

last completed fiscal year shall be providedin a note to the table or in narrative followingthe table.

(3) Describe the material terms of anyarrangements, standard or otherwise,pursuant to which any director of theregistrant was compensated for servicesduring the last fiscal year for services as adirector, that are not required to be disclosedin the table required by paragraphs (g)(1) and(2) of this Item. Such arrangements include,e.g., retirement and pension benefits,insurance benefits, death benefits to thedirector’s heirs, legacy and other charitableaward program benefits. With respect to eacharrangement described, state the name of thedirector that received compensation pursuantto the arrangement and state any amountpaid during the last completed fiscal year.

* * * * *



Authority: 15 U.S.C. 77c, 77d, 77g, 77j,77s, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c,78d, 78i, 78j, 78l, 78m, 78n, 78o, 78p, 78s,78w, 78x, 78ll(d), 79q, 79t, 80a–20, 80a–23,80a–29, 80a–37, 80b–3, 80b–4, and 80b–11,unless otherwise noted.

6. By amending § 240.14a–101 bydesignating the existing Instruction toItem 8 as Instruction 1 and addingInstruction 2 to read as follows:

§ 240.14a–101 Schedule 14A. Informationrequired in proxy statement.

* * * * *Item 8. Compensation of directors and

executive officers.

* * * * *Instructions.

* * * * *2. If action is to be taken with regard to

Item 8(a), but not with regard to Item 8(b),(c) or (d), only the disclosure specified byItem 402(a)(8) of Regulation S–K(§ 229.402(a)(8) of this chapter) (or, ifapplicable, Item 402(a)(7) of Regulation S–B(§ 228.402(a)(7) of this chapter)) need beprovided in response to this Item.


* * * * *7. The authority for Part 249


otherwise noted.

8. By amending Form 10–K(referenced in § 249.310) by adding asentence at the end of Item 11 read asfollows:

Note—The text of Form 10–K does not, andthis amendment will not, appear in the Codeof Federal Regulations.

Form 10–K

Annual Report Pursuant to Section 13 or15(d) of the Securities Exchange Act of 1934

* * * * *Item 11. Executive Compensation. * * * If

the registrant’s definitive proxy orinformation statement is incorporated byreference pursuant to General InstructionG.3, and does not include all of theinformation required by Item 402 ofRegulation S–K (§ 229.402 of this chapter), aspermitted by Item 402(a)(8) of Regulation S–K, then the remaining Item 402 informationshall be included in the annual report onForm 10–K.

* * * * *9. By amending Form 10–KSB

(referenced in § 249.310b) by adding asentence at the end of Item 10 to readas follows:

Note—The text of Form 10–KSB does not,and this amendment will not, appear in theCode of Federal Regulations.

Form 10–KSB

* * * * *Item 10. Executive Compensation. * * * If

the small business issuer’s definitive proxyor information statement is incorporated byreference pursuant to General Instruction E.3,and does not include all of the informationrequired by Item 402 of Regulation S–B(§ 228.402 of this chapter), as permitted byItem 402(a)(7) of Regulation S–B, then theremaining Item 402 information shall beincluded in the annual report on Form 10–KSB.

* * * * *Dated: June 27, 1995.By the Commission.

Margaret H. McFarland,Deputy Secretary.[FR Doc. 95–16386 Filed 7–7–95; 8:45 am]BILLING CODE 8010–01–P

17 CFR Part 230

[Release No. 33–7185; File No. S7–15–95]

RIN 3235–AG51

Exemption for Certain CaliforniaLimited Issues

AGENCY: Securities and ExchangeCommission.ACTION: Proposed rule.

SUMMARY: In order to reduce regulatoryburdens associated with certain offersand sales of securities, the Commissiontoday is proposing a new exemptionfrom its registration requirements forlimited offerings of up to $5 million thatare exempt from qualification underrecently enacted California statesecurities law. In addition, publiccomment is solicited on whether theprohibition against general solicitationin certain Regulation D offerings shouldbe reconsidered.


1 The proposed rule would be added asRegulation CA, 17 CFR 230.1001.

2 15 U.S.C. 77c(b).3 15 U.S.C. 77a et seq.4 Cal. Corporations Code § 25102(n).5 17 CFR 230.144.6 See Release Nos. 33–158, 159 (April 27, 1934).7 See, e.g., Regulation A [17 CFR 230.251–

230.263] and Rule 504 [17 CFR 230.504] inRegulation D [17 CFR 230.501–230.508].

8 This is the maximum dollar amount permittedunder the Commission’s Section 3(b) exemptiveauthority.

9 The Commission has established the AdvisoryCommittee on the Capital Formation and RegulatoryProcesses (‘‘the Advisory Committee’’), chaired byCommissioner Steven M.H. Wallman. The AdvisoryCommittee is considering fundamental issuesrelating to the regulatory framework governing thecapital formation process, including whether thecurrent system of registering securities offeringsshould be replaced with a company registrationsystem. The Advisory Committee may makerecommendations that, if endorsed by theCommission, may result in rule proposals orlegislative recommendations that could address thematters discussed in this release.

10 Chapter 828, Statutes of 1994 (Senate Bill1951—Killea), adding subdivision (n) toCorporations Code Section 25102.

11 Section 3, Senate Bill 1951.12 15 U.S.C. 80a–1 et seq.

13 Officers and directors of corporate issuers (orpersons performing similar duties), general partnersand trustees where the issuer is a partnership or atrust, small business investment companies,business development companies subject to theInvestment Company Act, private venture capitalcompanies exempted from the Investment AdvisersAct of 1940 [15 U.S.C. 80b–1 et seq.], certain naturalpersons, entities comprised of accredited investors,banks, savings and loan associations, insurancecompanies, Investment Company Act companies,non-issuer pension or profit-sharing trusts,organizations described in Section 501(c)(3) of theInternal Revenue Code [26 U.S.C. 501(c)(3)],business entities (corporations, business trusts orpartnerships) with assets of more than $5 million.All these persons would qualify as ‘‘accreditedinvestors’’ under Rule 501(a) [17 CFR 230.501(a)].

14 Under the California provision, $150,000purchasers and natural persons meeting a $1million net worth or $250,000 annual income testmust also satisfy one of the following additionalsuitability standards: (1) they must have, alone orwith the assistance of a professional advisor, thecapacity to protect their own interests; (2) they musthave the ability to bear the economic risk of theinvestment; or (3) the investment must not exceed10 percent of the person’s net worth.

15 15 U.S.C. 78a et seq.16 This provision states that each such natural

person, by reason of his or her business or financialexperience, or the business or financial experienceof his or her professional advisor (who isunaffiliated with and who is not compensated,directly or indirectly, by the issuer), can bereasonably assumed to have the capacity to protecthis or her interests in connection with thetransaction. The California Department ofCorporations has indicated that qualified investorsunder this rubric must have business or financialexperience or rely on a professional advisor.Release No. 94–C (September 27, 1994).

17 26 U.S.C. 401(k).

DATES: Comments should be submittedto the Commission on or beforeSeptember 8, 1995.ADDRESSES: All comments concerningthe proposed rules should be submittedin triplicate to Jonathan G. Katz,Secretary, U.S. Securities and ExchangeCommission, Mail Stop 6–9, 450 FifthStreet, N.W., Washington D.C. 20549and should refer to File Number S7–15–95. Comment letters will be available forinspection and copying in theCommission’s public reference room atthe same address.FOR FURTHER INFORMATION CONTACT:Richard K. Wulff, Office of SmallBusiness Policy, Division of CorporationFinance, at (202) 942–2950 or James R.Budge, Office of Disclosure Policy,Division of Corporation Finance, at(202) 942–2910.SUPPLEMENTARY INFORMATION: TheCommission today is proposing a newRule 1001 1 under Section 3(b) 2 of theSecurities Act of 1933 (the ‘‘SecuritiesAct’’).3 The new rule would exemptfrom the registration requirements of theSecurities Act offers and sales up to $5million that are exempt from statequalification under paragraph (n) ofSection 25102 of the CaliforniaCorporations Code.4 Rule 144 5 alsowould be amended to include securitiesissued in reliance upon Rule 1001 in thedefinition of ‘‘restricted securities.’’

I. IntroductionSince the inception of the Securities

Act, Congress has delegated to theCommission the authority to exemptsmall issues from Securities Actregistration provisions when suchaction is consistent with the publicinterest and the protection of investors.Soon after its creation, the Commissionexercised this authority to provide anexemption for small offerings,6 andsince then, has adopted other rules fromtime to time, including exemptive rulesunder Section 3(b), to assist smallbusinesses’ capital raising ability, whereconsistent with investor protection.7

Today’s proposal would provide afederal exemption for offerings of up to$5 million 8 that meet the qualificationsof a new California exemption designed

to assist small business capitalformation.9 The new California lawprovides an exemption from state lawregistration for offerings made tospecified classes of qualified purchasersthat are similar, but not the same as,accredited investors under RegulationD. Unlike Regulation D, variousmethods of general solicitations arepermitted under the California law. TheCommission believes that the Californiaexemption facilitates small businesscapital raising with adequateprotections to investors and thereforeproposes to exercise its exemptiveauthority in Section 3(b) to provide aparallel federal exemption.

II. The California Exemption

On September 26, 1994, a newexemption from the issuer transactionsqualification provisions of the CaliforniaCorporations Code became effective.10

The provision was specifically designed‘‘to facilitate the ability of smallcompanies to raise capital to financetheir growth.’’ 11

The exemption generally is limited toissuers that are California corporationsor any other form of business entityorganized in that state, includingpartnerships and trusts. In addition,non-California organized businessesmay use the exemption if they canattribute more than 50 percent ofproperty, payroll and sales to Californiaand if more than 50 percent ofoutstanding voting securities of theissuer are held of record by personshaving addresses in California. It is notavailable for offerings relating to arollup transaction, nor may it be used by‘‘blind pool’’ issuers or investmentcompanies subject to the InvestmentCompany Act of 1940 (the ‘‘InvestmentCompany Act’’).12

Sales under the exemption must beeffected only to qualified purchaserswho buy for investment purposes andnot for redistribution. A qualifiedpurchaser is defined as:

• Designated professional orinstitutional purchasers or personsaffiliated with the issuer;13

• Certain relatives residing withqualified purchasers;

• Promoters;• Any person purchasing more than

$150,000 of securities in the offering; 14

• Entities whose equity owners arelimited to officers, directors and anyaffiliate of the issuer;

• Reporting companies under theSecurities Exchange Act of 1934 (the‘‘Exchange Act’’), 15 if the transactioninvolves the acquisition of all of anissuer’s capital stock for investment;

• A natural person whose net worthexceeds $500,000, or a natural personwhose net worth exceeds $250,000 ifsuch purchaser’s annual incomeexceeds $100,000—in either case thetransaction must involve

(a) only a one-class voting stock (orpreferred establishing the same votingrights),

(b) an amount limited to no more than10 percent of the purchaser’s net worth,and

(c) a purchaser able to protect his orher own interests (alone or with thehelp of a professional advisor);16

• Pension and profit sharing trusts, aswell as 401(k) plans 17 and Individual


18 This delivery requirement is limited to thosenatural persons designated as qualified purchasersbecause their net worth exceeds $500,000, or whosenet worth exceeds $250,000 where there is anannual income of $100,000.

19 See 17 CFR 230.502(b)(2).20 The California provision limits the content of

the general announcement to the following items:the issuer’s identity; the full title of the securitiesbeing offered; the suitability standards ofprospective investors; a statement that no money isbeing sought or will be accepted, that an indicationof interest involves no commitment to purchase andthat under certain circumstances a disclosuredocument will be provided prior to purchase; andthe name, address and telephone number of aperson who can provide further information aboutthe offering. Only the following additionalinformation may be included at the issuer’s option:a brief description of the business, its geographicallocation and the offering price or method ofdetermination.

21 See CCH NASAA Reports ¶ 7036. Colorado,Kansas, Massachusetts, Oklahoma, Oregon,Pennsylvania, Vermont, Virginia and Washingtonare participating in a pilot program in this regard.

22 CCH NASAA Reports ¶ 6201.23 17 CFR 230.504.24 Securities Act Section 3(a)(11) [15 U.S.C.

77c(a)(11)] and Rule 147 [17 CFR 230.147].

25 Proposed Rule 1001(a). While the transactionswould not be subject to registration under Section5, the antifraud provisions of the federal securitieslaws would continue to be applicable to all exempttransactions. See preliminary note 1 to proposedRule 1001.

Proposed Rule 1001 would provide an exemptiononly for the transactions in which the securities areoffered or sold by the issuer, not for the securitiesthemselves.

26 As noted above, California law precludesreliance on the exemption in connection withinvestment company, blind pool or roll-upofferings; thus, the proposed Rule 1001 exemptionalso would be unavailable in those cases.

27 17 CFR 230.405.28 Standard integration analysis concepts would

apply. See Release No. 33–4552 (November 7, 1962)[27 FR 11316].

29 See, e.g., Rule 251(b) [17 CFR 230.251(b)], Rule504(b)(2) [17 CFR 230.504(b)(2)] and Rule505(b)(2)(i) [17 CFR 230.505(b)(2)(i)].

30 Where a transaction involves non-cashconsideration, the amount of the offering would becalculated as provided under California law.

31 Proposed Rule 1001(c) and proposedamendment to Rule 144.

Retirement Accounts of individualqualified purchasers.

Issuers must provide certainpurchasers who are natural persons 18 adisclosure document as specified inRule 502 of Regulation D 19 five daysprior to any sale or commitment topurchase.

Offers, oral or written, are generallylimited to qualified purchasers.However, the law does permit generalannouncements of a proposed offeringto be widely published and circulated,so long as they contain only specifiedinformation. 20 This generalannouncement process is modeled onthe ‘‘test the waters’’ concept being usedby several of the states 21 and by theCommission in connection withRegulation A.

A notice must be filed with theCalifornia Corporations Commissionerat the initial offer of securities or withthe publication of a generalannouncement of proposed offering,whichever comes first, accompanied bya $600 filing fee. A second filing isrequired within 10 business days afterthe close or abandonment of theoffering, and in no case later than 210days after the filing of the initial notice.

Because the new California exemptioncombines a form of general solicitationusing a ‘‘test the waters’’ concept witha qualified purchaser concept in partderived from the Uniform LimitedOffering Exemption (‘‘ULOE’’), 22 it doesnot fit well within any current federalexemption, other than Rule 504, 23

which is limited to $1 million, orpotentially the intrastate offeringexemption. 24 Rules 505 of 506 ofRegulation D prohibit general

solicitations; moreover, California’sdefinition of qualified purchasers isbroader than Regulation D’s. Theintrastate offering exemption isavailable only for those offerings byissuers incorporated and doing businessin California.

The Commission does not believe thatthese differences need to be animpediment to the ability of smallbusinesses to take full advantage of theCalifornia exemption. While thequalified purchaser definition differssomewhat from the accredited investordefinition for individuals, the Californialaw includes additional suitabilitystandards. Moreover, the generalannouncement of proposed offering issubject to significant limitation, therebyprotecting against abuse of theprocedure. The provisions of theCalifornia law are consistent withinvestor protection and the publicinterest, and therefore warrant theCommission’s full exercise of itsexemptive authority under Section 3(b).

III. Proposed Regulation CA and Rule1001

A. The Exemption

Proposed Rule 1001 would providethat offers and sales of securities, inamounts of up to $5 million, that areexempt from registration under theCalifornia securities law pursuant toparagraph (n) of § 25102 of theCalifornia Corporations Code areexempt from the registrationrequirements of Section 5 of theSecurities Act, pursuant to Section 3(b)of that Act.25 The proposal would allowreliance on Rule 1001 by all issuers thatqualify for the state exemption.26 Issuerswould look to the state of California forinterpretations relating to who qualifiesfor the exemption, since any personwho lawfully relies on the stateexemption also could rely on its federalcounterpart. Comment is requested as towhether proposed Rule 1001 shouldinclude additional eligibility criteria, forexample, non-reporting status under theExchange Act or small business issuer

status under federal securities laws, asdefined in Securities Act Rule 405.27

As proposed, the rule would notrequire issuers to notify the Commissionwhen they rely on the Californiaexemption in view of the notificationprovisions of the California law.Comment is solicited as to whether anotice of reliance, similar to that usedin connection with Regulation Dofferings, should be required.

B. Computation of $5 Million Amount

Proposed Rule 1001 exempts offeringsup to $5 million, the maximum allowedunder Section 3(b). The $5 million limitwould apply on an offering by offeringbasis.28 This approach differs from thatapplied in other Section 3(b) rules,where an annual dollar limit for theaggregate of various Section 3(b) offershas been used.29 Rule 1001’s offering byoffering approach is proposed to moreclosely parallel the California exemptiveprovision. Comment is requested as towhether the proposed approach isappropriate, or whether the moretraditional Section 3(b) annualaggregated offering approach should beused. If commenters prefer that theamount allowed be reduced by otherSection 3(b) offerings in the previous12-month period, which offeringsshould reduce the amount? 30

C. Resale Limitations

The proposed exemption wouldprovide that purchasers in the exempttransaction receive ‘‘restrictedsecurities.’’ 31 Consequently, purchaserswould have to either register subsequentresales of the securities or have anexemption for such sales. Categorizingthe securities offered and sold pursuantto the proposed exemption as‘‘restricted’’ is consistent with theCalifornia exemption, since it requiresan investment intent on the part ofpurchasers in the offering, and suchshares could not be resold underCalifornia law without qualification orsome other exemption under such law.In addition, the treatment is consistentwith other federal exemptions, theavailability of which depends on the


32 See, e.g., Section 4(6) of the Exchange Act [15U.S.C. 78d(6)], Securities Act Rule 506 [17 CFR230.506], and Securities Act Rule 701 [17 CFR230.701].

33 Several states currently are consideringenacting exemptions comparable to the Californialaw, but the Commission is unaware of any thathave been adopted as of the date of this release.

34 NASAA is an association of securitiescommissioners from each of the 50 states, the

District of Columbia, Puerto Rico, Mexico andseveral of the Canadian provinces.

35 State statutes and rules based on NASAA’sULOE exempt offers or sales of securities made incompliance with Rules 501–503, 505 and/or 506 ofRegulation D [17 CFR 230.501–230.503, 230.505and 230.506 respectively], including the prohibitionof general solicitations found in Rule 502(c).

36 See, e.g., Release No. 33–7188, a companionrelease proposing to permit ‘‘test the waters’’activity in anticipation of a registered initial publicoffering, and Rule 254 of Regulation A [17 CFR230.254].

37 15 U.S.C. 77s(a).38 15 U.S.C. 78w(a).

sophistication, wealth or institutionalcharacter of the investor.32

IV. Similar Exemptions Adopted byOther States

While the exemption being proposedtoday is based on a California statute,the Commission is proposing also toprovide the same exemption for eachstate that enacts a transaction exemptionincorporating the same standards usedby California.33 This would be doneeither at such time as the Commissionmay determine to adopt Rule 1001, or ifa state adopts such exemption later, theCommission will adopt a coordinatedexemption upon notification by thestate. The Commission requestscomment on whether this proposedapproach to adopting the Rule 1001exemption for any state exemptionswith the same requirements as theCalifornia exemption is appropriate.Where states determine to providecomparable exemptions that vary fromthe specific details of the California law,the Commission would expect topropose for comment an exemptioncomparable to that provided in Rule1001.

V. General Solicitation UnderRegulation D and ULOE

The California exemption permitsbroad dissemination of informationabout a proposed offering—called the‘‘general announcement’’—includingspecific information about the offering,such as the price of the securities to beoffered. This ability to reach out to abroad audience to find possible interest,while formally offering and selling onlyto qualified purchasers that may befound through that process, appears tohave the potential to significantlyenhance the usefulness of an exemptionthat limits sales to specified classes ofpurchasers.

As noted, however, this publicdissemination is one of the features ofthe California exemption that makes itdifficult to fit within the Regulation Dexemption, since Regulation D prohibitsgeneral solicitations, other than underthe Rule 504 seed capital rule.Similarly, ULOE, an official policyguideline of the North AmericanSecurities Administrators Association,Inc. (‘‘NASAA’’) 34 that was adopted in

coordination with the Commission’sadoption of Regulation D, also prohibitsgeneral solicitations in these offerings.35

The inability to reach out broadly tofind possible qualified investors forRegulation D exempt offerings hampersthe utility of the exemption and mayraise the costs to companies of trying todo these exempt offerings; California’snew exemption demonstrates thepotential benefits of reexamining thecosts and benefits of such prohibition.

Against the backdrop of this newapproach in California, the Commissionis considering whether amendments toRegulation D should be proposed thatwould similarly facilitate better use ofthe exemptions and lower the costs forcompanies by revising or eliminatingthe prohibition against generalsolicitation for Rule 505 and 506offerings.

Comment is requested on whether theCommission should explore withNASAA the possibility of proposingsuch a change to Regulation D andULOE. If NASAA will not follow thisapproach, would it still be worthwhilefor the Commission to implement thechange even if there were not significantstate uniformity?

If the Commission makes proposals topermit some form of general solicitationin Rule 505 and 506 exempt offerings,a number of approaches could beconsidered. For example, a limitedapproach similar to the one adopted inCalifornia could be implemented. Thisallows a written communication to bebroadly disseminated, but specificallylimits the information allowed to beincluded. Would this approach besufficiently helpful in allowingcompanies to locate potential investorsfor a private offering, or are thelimitations overly restrictive? Otherapproaches would permit moreextensive communications to bedisseminated, including more extensivewritten and oral communications,36 butcould include some limitations, such ason the methods of dissemination or theclasses of issuers entitled to use theprovision. For example, woulddissemination methods that aredesigned to reach only accreditedinvestors be workable? Should any

issuers be entitled to disseminatebroadly to locate potential investors, orshould this be limited to specific classesof companies, such as only non-reporting issuers, only small businessissuers, or only reporting issuers? Arethere other approaches that theCommission should consider?

Comment generally is requested onwhether the Commission shouldconsider altering the general solicitationprohibition. Given that all purchasersmust continue to meet the requirementsof Regulation D, and all informationrequired by the regulation must beprovided prior to purchase, would theability to broadly disseminate to locatepotential investors compromise investorprotection interests?

Finally, the Commission requestscomment as to whether the question ofgeneral solicitation in Regulation D orother private offerings should beaddressed through legislative changes tothe Securities Act rather than throughCommission rulemaking. For example,should the Commission seek specificauthority under the Securities Act toexempt private offerings that includegeneral solicitations, provided that salesare made only to qualified purchasers?More generally, should the Commissionrecommend general exemptivelegislation that would allow it greaterflexibility to address these or evenbroader kinds of issues?

VI. General Request for CommentAny interested persons wishing to

submit written comments on theproposed Section 3(b) exemption asexplained in this release, or thequestions regarding general solicitation,are invited to do so by submitting themin triplicate to Jonathan G. Katz,Secretary, U.S. Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549. Comment isrequested from the point of view of thepublic interest, the states, and thecompanies that would be affected;comments should address any possibleeffects on investor protection resultingfrom the proposed exemption. TheCommission further requests commenton any competitive burdens that mightresult from the adoption of theproposals. Comments on this inquirywill be considered by the Commissionin complying with its responsibilitiesunder Section 19(a) of the SecuritiesAct 37 and Section 23 of the ExchangeAct.38 Comment letters should refer toFile Number S7–15–95. All commentsreceived will be available for publicinspection and copying in the


Commission’s Public Reference Room,450 Fifth Street, N.W., Washington, D.C.20549.

VII. Cost-Benefit AnalysisTo assist the Commission in its

evaluation of the costs and benefits thatmay result from the proposedexemption discussed in this release,commenters are requested to provideviews and data relating to any costs andbenefits associated with these proposals.It is expected that compliance burdenswill decrease with respect to issuerswho qualify for the proposedexemption, inasmuch as they would beable to raise up to $5 million in capitalwithout the burden and expense ofcompliance with the registration andreporting requirements of the federalsecurities laws.

VIII. Summary of Initial RegulatoryFlexibility Analysis

An initial regulatory flexibilityanalysis has been prepared inaccordance with 5 U.S.C. 603concerning the proposed Rule 1001exemption and the proposedamendment to Rule 144. The analysisnotes that the purpose of the proposalsis to relieve small businesses of federalregistration requirements where thetransaction is exempt from qualificationunder paragraph (n) of Section 25102 ofthe California Corporations Code.

As discussed more fully in theanalysis, the changes would affectpersons that are small entities, asdefined by the Commission’s rules. It isanticipated that small businesses thatqualify for the proposed exemptionwould experience a reduction inreporting, recordkeeping andcompliance burdens. The analysis alsoindicates that there are no current rulesthat duplicate, overlap or conflict withthe proposed exemption.

As stated in the analysis, severalpossible significant alternatives to theproposals were considered, including,among others, establishing differentcompliance or reporting requirementsfor small entities or exempting themfrom all or part of the proposals. TheCommission believes that there is noneed for special small businessalternatives, since the purpose of theproposed rulemaking is to reduceburdens for small business. The fact thatlarger entities also could take advantageof the rule should not detract from thatpurpose.

Written comments are encouragedwith respect to any aspect of theanalysis. Such comments will beconsidered in the preparation of theFinal Regulatory Flexibility Analysis ifthe proposals are adopted. A copy of the

analysis may be obtained by contactingJames R. Budge, Office of DisclosurePolicy, Division of Corporation Finance,at (202) 942–2910, U.S. Securities andExchange Commission, 450 Fifth Street,N.W., Washington, D.C. 20549.

IX. Statutory Basis for the Proposal

Regulation CA, Rule 1001 and theamendment to Rule 144 are proposedpursuant to Sections 3(b) and 19 of theSecurities Act.


Registration requirements, Securities.

Text of the Proposed Exemption





* * * * *2. By amending § 230.144 by

removing the period at the end ofparagraph (a)(3)(iv) and adding ‘‘; or’’ inits place and by adding paragraph(a)(3)(v), to read as follows:

§ 230.144 Persons deemed not to beengaged in a distribution and therefore notunderwriters.

* * * * *(a) * * *(3) * * *(v) Securities acquired from the issuer

that are subject to the resale limitationsof Regulation CA (§ 230.1001).* * * * *

3. By adding a new undesignatedcenter heading and § 230.1001, to readas follows:

Regulation CA—Exemption for CertainIssues of Securities Exempt Under StateLaw

§ 230.1001 Exemption for transactionsexempt from qualification under § 25102(n)of the California Corporations Code.

Preliminary Notes: (1) Nothing in thissection is intended to be or should beconstrued as in any way relieving issuers orpersons acting on behalf of issuers fromproviding disclosure to prospective investorsnecessary to satisfy the antifraud provisionsof the federal securities laws. This sectiononly provides an exemption from theregistration requirements of the SecuritiesAct of 1933 (‘‘the Act’’) [15 U.S.C. 77a etseq.].

(2) Nothing in this section obviates theneed to comply with any applicable state lawrelating to the offer and sales of securities.

(3) Attempted compliance with this sectiondoes not act as an exclusive election; theissuer also can claim the availability of anyother applicable exemption.

(4) This exemption is not available to anyissuer for any transaction which, while intechnical compliance with the provision ofthis section, is part of a plan or scheme toevade the registration provisions of the Act.In such cases, registration under the Act isrequired.

(a) Exemption. Offers and sales ofsecurities that satisfy the conditions ofparagraph (n) of § 25102 of theCalifornia Corporations Code, andparagraph (b) of this section, shall beexempt from the provisions of Section 5of the Securities Act of 1933 by virtueof Section 3(b) of that Act.

(b) Limitation on and computation ofoffering price. The sum of all cash andother consideration to be received forthe securities shall not exceed$5,000,000, less the aggregate offeringprice for all other securities sold in thesame offering of securities, whetherpursuant to this or another exemption.

(c) Resale limitations. Securitiesissued pursuant to this § 230.1001 aredeemed to be ‘‘restricted securities’’ asdefined in Securities Act Rule 144[§ 230.144]. Resales of such securitiesmust be made in compliance with theregistration requirements of the Act oran exemption therefrom.

Dated: June 27, 1995.By the Commission.


17 CFR Parts 230, 240, 249 and 260

[Release Nos. 33–7186; 34–35895; 39–2333;File No. S7–16–95]

RIN Number 3235–AG48

Relief From Reporting by Small Issuers

AGENCY: Securities and ExchangeCommission.ACTION: Notice of proposed rulemaking.

SUMMARY: The Commission ispublishing proposals designed to reduceburdens on small business by doublingthe asset threshold that subjectscompanies to registration and periodicreporting under the Securities ExchangeAct of 1934 (the ‘‘Exchange Act’’) from$5 million to $10 million.DATES: Comments should be submittedto the Commission on or beforeSeptember 8, 1995.


1 17 CFR 240.12g–1, 240.12g–4 and 240.12h–3.2 15 U.S.C 78a et seq.3 17 CFR 249.323. Form 15 is filed by an issuer

to notify the Commission that it is terminating itsregistration under Section 12(g) of the Exchange Act[15 U.S.C. 78l(g)] or suspending its reporting underSection 15(d) [15 U.S.C. 78o(d)].

4 The definitions are found at 17 CFR 230.157; 17CFR 240.0–10; and 17 CFR 260.0–7.

5 5 U.S.C. 601 et seq.6 See Exchange Act Section 12(g) [15 U.S.C.

78l(g)] and Rule 12g–1.7 E.g., the proxy requirements of Section 14, the

Williams Act and the short-swing profit provisionsof Section 16 of the Exchange Act.

8 Release No. 34–18647 (April 15, 1982) [47 FR17046].

9 Release No. 34–23406 (July 8, 1986) [51 FR25360].

10 The proposed modification to Rule 12g–1would retain the standard with respect to foreignprivate issuers providing that if a foreign privateissuer has securities quoted in an automatedinterdealer quotation system it would remainsubject to registration under Section 12(g).

11 Securities traded on a national securitiesexchange must be registered under the ExchangeAct pursuant to Section 12(b) [15 U.S.C. 78l(b)] ofthat Act.

12 Pursuant to Schedule D to the NASD’s By-Laws, securities traded on the NASDAQ systemmust be registered pursuant to Section 12 of theExchange Act, CCH NASD Manual para. 1803.

13 15 U.S.C. 77a et seq.14 Rules 12g–4 and 12h–3 currently allow for

termination of registration of a class of securitiesunder Section 12(g) and suspension of the duty tofile reports under Section 15(d) when the class ofsecurities is held of record by less than 300 persons,or by less than 500 persons where the total assetsof the issuer have not exceeded $5 million on thelast day of each of the issuer’s three most recentfiscal years. Also, the Section 15(d) reportingobligation cannot be suspended under Rule 12h–3for fiscal year in which a Securities Act registrationstatement relating to the class of securities becomeseffective. The proposals would amend Rules 12g–4 and 12h–3 to change the asset test from $5 millionto $10 million.

15 See Securities Act Release 6605 (September 30,1985) [50 FR 41162].

16 The Commission’s Small Business Initiativesand Additional Small Business Initiatives adoptedin 1992 and 1993 were designed to reduce both

Securities Act and Exchange Act complianceburdens for small business. Release Nos. 33–6949(July 30, 1992) [57 FR 36442] and 6996 (April 28,1993) [58 FR 26509].

17 15 U.S.C. 77c(b).18 17 CFR 230.251–230.263.19 In 1992, the Commission requested Congress to

raise the ceiling for its small offering exemptiveauthority under Section 3(b) of the Securities Actto $10 million. See S. 2518, 102d Cong., 2d Sess.(1992).

20 At present, approximately 1,670 reportingissuers have less than $10 million in assets.

21 At present, approximately 975 of theapproximately 1,670 reporting issuers that have less

Continued

ADDRESSES: All comments concerningthe proposed rules should be submittedin triplicate to Jonathan G. Katz,Secretary, Securities and ExchangeCommission, 450 Fifth Street NW.,Washington, DC 20549 and should referto File Number S7–16–95. Commentletters will be available for inspectionand copying in the Commission publicreference room at the same address.

FOR FURTHER INFORMATION CONTACT:Richard K. Wulff, Office of SmallBusiness Policy, Division of CorporationFinance, (202) 942–2950.

SUPPLEMENTARY INFORMATION: TheCommission is publishing for commentproposed amendments to Rules 12g–1,12g–4 and 12h–3 1 under the ExchangeAct.2 These amendments wouldincrease the total asset threshold forExchange Act registration and reportingfrom $5 million to $10 million. TheCommission also is proposingconforming amendments to thedescription of Form 15 3 and to certainof the Commission’s definitions of theterm ‘‘small entity’’ 4 under theRegulatory Flexibility Act.5

I. Current Requirements and ProposedRevisions

Under the current rules, an issuer thathas 500 or more record holders of aclass of equity securities and total assetsof $5 million or more must register itssecurities under the Exchange Act.6Issuers that must register are required tocomply with the periodic reporting andother provisions applicable to publiccompanies contained in the ExchangeAct.7 The asset threshold was originallyset at $1 million in Section 12(g) of theExchange Act. The Commission hasincreased the amount on two occasions:from $1 million to $3 million in 1982,8and from $3 million to the current $5million in 1986.9 As a part of itscontinuing efforts to reduce regulatoryburdens on smaller companies, the

Commission is now proposing to raisethis asset threshold to $10 million.

Under the proposed revision to Rule12g–1, an issuer would not be requiredto register under Section 12(g) until ithas 500 or more record holders of aclass of equity securities and total assetsof $10 million or more.10 This revisionwould not change requirements thatsecurities traded on nationalexchanges 11 or the National Associationof Securities Dealers AutomatedQuotation System (‘‘NASDAQ’’) 12 beregistered pursuant to Section 12 of theExchange Act. In addition, a companythat conducts a public offeringregistered under the Securities Act of1933 (the ‘‘Securities Act’’) 13 wouldcontinue to be subject to reportingpursuant to Section 15(d) of theExchange Act unless the companybecomes eligible to suspend suchreporting. The proposals also wouldraise the asset threshold for terminationof Section 12(g) registration andsuspension of Section 15(d) reportingfrom $5 million to $10 million, butwould not change the other tests forsuch termination and suspension.14

The Commission has long recognizedthat the cost of compliance withExchange Act reporting requirements isrelatively greater for small companiesthan for larger ones; 15 similarly, theCommission continuously examines andrefines its securities registrationexemptions under the Securities Act inan effort to lower the cost of raisingcapital for small business.16 For

example, in 1992 as a part of theCommission’s Small Business Initiativesthe Commission used the full amount ofits Securities Act Section 3(b) 17

exemptive authority to increase theamount that may be raised in aRegulation A 18 exempt small offeringfrom $1.5 million to $5 million.However, under the current Section12(g) threshold, a company that is nottraded on an exchange or NASDAQ, andhas not conducted a registered publicoffering, can nevertheless becomesubject to the Exchange Act registrationand reporting expense even though thecompany has conducted only one, or alimited number of, exempt smallofferings. For example, a company thatconducts an exempt Regulation Aoffering and raises the full $5 millionpermitted under the rule would likelybe required to register under Section12(g) under the current $5 million assettest (assuming it has the requisitenumber of shareholders). This is so eventhough a principal benefit of theRegulation A exemption is that, unlikea Securities Act registered transaction, itdoes not give rise to an Exchange Actreporting obligation. This burdenappears to significantly reduce theutility of the small offering exemptionsfor small companies. The increase to$10 million in the Section 12(g)threshold proposed today should betterenable companies to use the smalloffering exemptions without becomingsubject to Exchange Act reporting.19

There currently are approximately670 issuers with between $5 million and$10 million in total assets that reportwith the Commission.20 Had theproposed increase in the asset thresholdbeen in effect, these companies wouldnot have been required to register andreport with the Commission, unless theyhad voluntarily decided to do so, eitherbecause their securities are traded on anational securities exchange orNASDAQ, or because they chose toconduct a Securities Act registeredoffering. Of the 670, approximately 550are traded on an exchange orNASDAQ.21 A number of these


than $10 million in assets have securities that aretraded either on an exchange or NASDAQ.

22 Companies that take steps to reduce the numberof shareholders in order to deregister, or otherwiseengage in a Rule 13e–3 transaction [17 CFR240.13e–3] with a view to deregistration, arereminded of the need to comply with the ‘‘goingprivate’’ regulations.

23 Release Nos. 33–6380, 34–18452, 35–22371,39–639, 1C–12194 and 1A–791, (January 28, 1982)[47 FR 5215]. The proposals would thus continuethe parity that exists between the definition of asmall entity for purposes of the RegulatoryFlexibility Act and the concept of a small issuer forpurposes of Exchange Act reporting and registrationrequirements. Rule 157(a) under the Securities Act,Rule 0–10(a) under the Exchange Act and Rule 0–7 under the Trust Indenture Act of 1939 would beaffected by the proposed conforming modificationsto the definition of a small entity for purposes ofthe Regulatory Flexibility Act. The proposedmodifications would not affect the definition of a

small entity for purposes of the RegulatoryFlexibility Act found in Rule 0–10 under theInvestment Company Act of 1940, Rule 0–7 underthe Investment Advisers Act of 1940, or Rule 110under the Public Utility Holding Company Act of1935, as such Acts contain definitions of a smallentity for purposes of the Regulatory Flexibility Actthat do not relate to a total asset criterion.

companies would become eligible toterminate registration and reporting ifthe proposals are adopted, if they choseto do so, assuming the number ofshareholders does not exceed theapplicable limits for termination.22 Ofcourse, many of these companies maycontinue to report by choice in order toretain their ability to trade on anexchange or NASDAQ or as a result ofadditional registered public offerings, sothe Commission cannot predict withany certainty the number of issuerswhose Exchange Act registration andreporting requirements that mayterminate as a result of the increase inthe total assets criterion from $5 millionto $10 million.

Comment is requested on whether theproposed increase in the Section 12(g)asset threshold is appropriate and usefulfor small businesses. Is $10 million inassets the appropriate level forsubjecting companies that have nototherwise voluntarily entered thereporting system to this system? Shouldthe increase be smaller than thatproposed, e.g., $7.5 million, or greater,e.g., $15 million. Commenters are askedto specifically discuss their reasons forany suggested amount.

II. Proposed Revisions to RegulatoryFlexibility Act Definitions

The Commission is simultaneouslyproposing technical conformingamendments to the definition of a smallentity for purposes of the RegulatoryFlexibility Act. A small entity iscurrently defined as an issuer whosetotal assets on the last day of its mostrecent fiscal year were $5 million orless, where the entity is not aninvestment company. Under theproposals the total assets criterionwould be increased to $10 million toconform with the total asset criterionproposal for purposes of entering into orexiting from Exchange Act registrationand reporting requirements.23

III. Request for CommentAny interested persons wishing to

submit written comments on theproposed increase in the reportingthreshold as explained in this releaseare invited to do so by submitting themin triplicate to Jonathan G. Katz,Secretary, U.S. Securities and ExchangeCommission, 450 Fifth Street NW.,Washington, DC 20549. Comment isrequested from the point of view of thepublic interest and the issuers thatwould be affected; comments shouldaddress any possible effects on investorprotection resulting from the proposedincrease in the threshold. TheCommission further requests commentson any competitive burdens that mightresult from the adoption of theproposals. Comments on this inquirywill be considered by the Commissionin complying with its responsibilitiesunder Section 19(a) of the Securities Actand Section 23 of the Exchange Act.Comment letters should refer to FileNumber S7–16–95. All commentsreceived will be available for publicinspection and copying in theCommission’s public reference room,450 Fifth Street NW., Washington, DC20549.

IV. Cost-Benefit AnalysisTo assist the Commission in its

evaluation of the costs and benefits thatmay result from the proposed increasein the threshold discussed in thisrelease, commenters are requested toprovide views and data relating to anycosts and benefits associated with theseproposals. It is expected thatcompliance burdens will decrease withrespect to issuers who qualify for theproposed higher threshold, inasmuch asissuers below the threshold will nothave to register and report pursuant tothe requirements of the Exchange Actand issuers that are currently reportingbut who would otherwise now be belowthe threshold may choose to opt out oftheir reporting requirements.

V. Summary of Initial RegulatoryFlexibility Analysis

The Commission has prepared aninitial regulatory flexibility analysis inaccordance with 5 U.S.C. 603 regardingthe changes to Exchange Act Rules 12g–1, 12g–4, and 12h–3 and the descriptionof Form 15, as well as to RegulatoryFlexibility Act definitions of ‘‘small

entity.’’ Among other things, theanalysis notes that these proposals areintended to reduce the cost ofcompliance with the Exchange Actreporting requirements, which isrelatively greater for small companiesthan for larger issuers.

The proposals would not increase theExchange Act reporting burden for anyissuer and no additional recordkeepingor reporting will be required except acertification/notification to theCommission of the termination of anyissuer’s reporting duties under cover ofForm 15. Such a filing may require theskills of a professional familiar with thesecurities laws, and some services bymanagement, but does not require anyrecordkeeping or reporting beyond thatalready required by the Exchange Act.

The analysis indicates that a numberof alternatives were considered incrafting the proposals, including theestablishment of differing compliance orreporting requirements for smallbusinesses, the clarification,consolidation or simplification of rulesfor small entities, the use ofperformance rather than designstandards, and exemption from coverageof Commission rules for small entities.As more fully explained in the analysis,there is no better alternative to simplify,consolidate or better accommodatesmall business entities than the chosenapproach, which is specificallydesigned to reduce regulatory burdenson small issuers.

A copy of the initial regulatoryflexibility analysis may be obtained bycontacting Twanna M. Young, Divisionof Corporation Finance, U.S. Securitiesand Exchange Commission, 450 FifthStreet NW., Washington, DC 20549 at(202) 942–2950.

VI. Statutory BasisThe amendments to the Commission’s

rules and form are being proposed bythe Commission pursuant to Section 19of the Securities Act; Sections 12, 13, 15and 23(a) of the Securities ExchangeAct; and Section 319 of the TrustIndenture Act of 1939.

Section 12(h) of the Exchange Actauthorizes the Commission to exemptany issuer, or class of issuers, fromSection 12(g) upon a finding that, byreason of the number of publicinvestors, amount of trading interest inthe securities, the nature and extent ofthe activities of the issuer, income orassets of the issuer, or otherwise, thatsuch action is not inconsistent with thepublic interest or the protection ofinvestors. The proposal todayrecognizes that the relatively higher costof reporting for small issuers must beweighed against the need for reporting.


24 See Release 33–6605 (September 30, 1985) [50FR 41162].

1 15 U.S.C. 77a et seq.2 17 CFR 230.144.3 ‘‘Restricted securities’’ are defined in Rule

144(a)(3). See infra Note 7.4 The Commission has established the Advisory

Committee on the Capital Formation and RegulatoryProcesses (the ‘‘Advisory Committee’’), chaired byCommissioner Steven M.H. Wallman. The AdvisoryCommittee is considering fundamental issuesrelating to the regulatory framework governing thecapital formation process, including whether thecurrent system of registering securities offeringsshould be replaced with a company registrationsystem. The recommendations of the AdvisoryCommittee may result in rule proposals orlegislative recommendations that, if endorsed bythe Commission, ultimately may address thematters discussed in this release. Under some of thecompany registration models now being consideredby the Advisory Committee, many of the legaldistinctions between publicly offered and privatelyplaced securities would be eliminated, includingthe concept of restricted securities. Securitiesissued by a company registered with theCommission would be freely tradeable, regardless ofthe public or private character of the transaction.

5 15 U.S.C. 78p.

The Commission historically hasfocused on the importance ofcontinuous reporting when there is atrading market, where investors have anexpectation that companies will providecontinuous reports under theCommission’s continuous reportingsystem, and has found the absence ofsuch a market support for theconclusion that small companies shouldbe given the opportunity to avoid thecost of continuous reporting.24 Today’sproposal is consistent with thisapproach since companies withsecurities traded on an exchange orNASDAQ would continue to be subjectto Section 12 registration and reporting,and the expectation of investors incompanies traded in such markets thatthese companies will continue to besubject to periodic reporting would notbe altered. In addition, the proposalfurthers the policies of Section 3(b) ofthe Securities Act to allow smallofferings to be conducted withoutsubjecting the issuer to registrationunder Section 12 of the Exchange Act.

List of Subjects in 17 CFR Parts 230,240, 249 and 260

Reporting and recordkeepingrequirements, Securities.

Text of Proposals





PART 260—GENERAL RULES ANDREGULATIONS, TRUST INDENTUREACT OF 1939

1. The authority citation for Part 230continues to read, in part, as follows:


* * * * *2. The authority citation for Part 240

continues to read, in part, as follows:Authority: 15 U.S.C. 77c, 77d, 77g, 77j,

77s, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c,78d, 78i, 78j, 78l, 78m, 78n, 78o, 78p, 78s,

78w, 78x, 78ll(d), 79q, 79t, 80a–20, 80a–23,80a–29, 80a–37, 80b–3, 80b–4 and 80b–11,unless otherwise noted.



otherwise noted.


continues to read as follows:Authority: 15 U.S.C. 77eee, 77ggg, 77nnn,

77sss, 78ll(d), 80b–3, 80b–4, and 80b–11.

Parts 230, 240, 249, and 260 [Amended]

5. 17 CFR Parts 230, 240, 249 and 260are amended by removing the referenceto ‘‘$5 million’’ and adding in its place‘‘$10 million’’ in the following sections:(a) 17 CFR 230.157(a)(b) 17 CFR 240.0–10(a)(c) 17 CFR 240.12g–1(d) 17 CFR 240.12g–4(a)(1)(ii)(e) 17 CFR 240.12g–4(a)(2)(ii)(f) 17 CFR 240.12h–3(b)(1)(ii)(g) 17 CFR 240.12h–3(b)(2)(ii)(h) 17 CFR 249.323(a)(i) 17 CFR 260.0–7



17 CFR Part 230

[Release Nos. 33–7187; 34–35896; File No.S7–17–95]

RIN 3235–AG53

Revision of Holding PeriodRequirements in Rule 144; Section16(a) Reporting of Equity Swaps andOther Derivative Securities


SUMMARY: The Commission is proposingto amend the holding periodrequirements contained in Rule 144 (d)and (k) to permit resales of ‘‘restricted’’securities after a one-year, rather than atwo-year, holding period, if the salecomplies with all of the other provisionsof Rule 144. Securities held by non-affiliated shareholders could be resoldwithout restriction after a holdingperiod of two, rather than three years. Inaddition, the Commission is requestingcomment on whether Rule 144 shouldbe revised to address new tradingstrategies, such as equity swaps, and isreminding persons subject to reportingunder Section 16 of the Securities

Exchange Act of 1934 (the ‘‘ExchangeAct’’) that reporting of thesetransactions is required under thecurrent rules.

DATES: Comments must be submitted onor before September 8, 1995.

ADDRESSES: Comments should besubmitted in triplicate to Jonathan G.Katz, Secretary, Securities and ExchangeCommission, 450 Fifth Street NW.,Washington, DC 20549. All commentletters should refer to File No. S7–17–95 and will be available for publicinspection and copying in theCommission’s Public Reference Room.

FOR FURTHER INFORMATION CONTACT:Richard K. Wulff, Office of SmallBusiness Policy, Division of CorporationFinance at (202) 942–2950.

SUPPLEMENTARY INFORMATION: TheCommission is proposing to shorten theholding periods in Securities Act of1933 (the ‘‘Securities Act’’) 1 Rule 144,2the non-exclusive safe harbor for resalesof ‘‘restricted’’ securities 3 and securitiesheld by affiliates of the issuer. Underthe proposal, the holding period forresales of limited amounts of securitiesby any person would be reduced fromtwo years to one year, and the holdingperiod for resales by non-affiliateswithout compliance with any provisionsof the rule would be reduced from threeyears to two years.4 This release alsoincludes a discussion of whether Rule144 should be amended to reflect newtrading strategies, such as equity swaps,and a reminder to persons subject toreporting under Section 16 of theExchange Act 5 that reporting of thesetransactions is required under thecurrent rules.


6 Release No. 33–5223 (January 11, 1972) [37 FR591].

7 ‘‘Restricted’’ securities include those acquiredfrom the issuer or an affiliate in a transaction orchain of transactions not involving a publicoffering; those acquired from the issuer and subjectto resale limitations under Regulation D, 17 CFR230.501–508 or Rule 701, 17 CFR 230.701; thosesubject to the Regulation D resale limitations andacquired in a transaction or chain of transactionsnot involving a public offering; and those acquiredin a transaction or chain of transactions meeting therequirements of Rule 144A, 17 CFR 230.144A.

8 See Section 2(11) of the Securities Act.9 Section 4(1) exempts transactions by persons

that are not issuers, underwriters or dealers.

10 Final Reports of the SEC Government-BusinessForum On Small Business Capital Formation (June1992) (June 1993) (June 1994) (February 1995). TheSmall Business Investment Incentive Act of 1980directs the Commission to host this annual meetingfor the purpose of reviewing ‘‘the current status ofproblems and programs relating to small businesscapital formation.’’ Pub. L. No. 96–477, Section 503,94 Stat. 2275, 2292–93 (1980).

11 Release No. 33–6286 (February 6, 1981) [46 FR12195].

12 Release No. 33–6862 (April 23, 1990) [55 FR17933].

13 Conforming changes also are proposed to bemade in paragraph (e)(3) relating to determining thelimitations on the amounts resalable by pledgees,donees and trusts, reducing the period from twoyears after the event of pledge default, donation ortrust acquisition, to one year.

14 In 1990, the Commission rescinded formersubdivision (d)(3) of Rule 144, which generallytolled the holding period while a holder had a shortposition in or an option to sell securities of thesame class as the restricted securities.

15 See Release No. 33–7190, which addressesother issues relating to equity swaps and similartransactions.

I. Background and Proposal

The Commission adopted Rule 144 in1972 6 to provide an objectivelydeterminable safe harbor for resales of‘‘restricted’’ securities and ‘‘control’’securities. ‘‘Restricted’’ securitiesgenerally are securities issued in privateplacements; 7 ‘‘control’’ securities aresecurities owned by affiliates of theissuer. The rule provides that a personthat complies with its terms andconditions will not be engaged in adistribution of securities and, thus, notbe an underwriter 8 for purposes of theSection 4(1) exemption from SecuritiesAct registration for ordinary tradingtransactions.9

The rule includes holding periods for‘‘restricted’’ securities to establish thatthe holder did not purchase with a viewto an unregistered public distribution.Under the rule, all ‘‘restricted’’securities must be held at least twoyears before any can be resold,measured from the time the securitieswere purchased from the issuer or anaffiliate. For ‘‘restricted’’ securities heldbetween two and three years, otherprovisions of the rule require that theissuer be providing certain currentinformation about itself, that limitedamounts of securities are resold, that theresales are effected in ordinarybrokerage transactions or directly with amarket-maker, and that a notification ofthe resale is filed with the Commission.After a three-year holding period,‘‘restricted’’ securities may be resold bynon-affiliates without compliance withany of these provisions.

The length of the holding period for‘‘restricted’’ securities significantlyimpacts the costs of raising capital inprivate placements since investorsrequire that the price of the securities bediscounted commensurate with themarket risk during the holding period.In each of the past four years, the smallbusiness community has asked theCommission through the annualGovernment-Business Forums on SmallBusiness Capital Formation to considershortening the Rule 144 holding

period.10 The two-year holding periodhas been in place since the rule wasadopted in 1972; the concept of ‘‘free’’resales for non-affiliates after three yearswas adopted in 1981.11 In 1990, the rulewas revised 12 to permit the holdingperiod to be measured from the timethat the securities were purchased fromthe issuer or an affiliate, so that holdersmay tack each other’s holding periods,rather than requiring the entire holdingperiod for each holder.

Based on the Commission’sexperience with Rule 144 in the 20years since adoption, the Commissionbelieves that it is appropriate to enhancethe utility of the safe harbor, and reducecosts for private capital formation, byshortening the holding periods.Consequently, the Commission isproposing that the holding periodapplicable to limited Rule 144 resales bereduced from two years to one 13 and theholding period for ‘‘free’’ resales by non-affiliates reduced from three years totwo. The Commission believes thatthese proposed holding periods aresufficiently long to establish that thesecurities were not purchased with aview to a public unregistereddistribution.

Comment is requested as to whetherthe proposed revisions to the holdingperiod are appropriate. Are theseperiods sufficient to assure that personsrelying upon Rule 144 are not engagedin a public distribution of securitiesinconsistent with the Section 4(1)ordinary trading transaction exemption?Should the periods be retained, orshould the proposed periods be changedto be shorter or longer? If other holdingperiods are suggested, the basis for theselected holding period should beindicated.

II. Equity Swaps and Other LikeInvestment Strategies

A. Treatment Under Rule 144In 1990 when the Commission

amended Rule 144 to allow tacking ofthe holding period between investors,

the Commission also deleted theprovision that previously tolled theholding period if the holder engaged inshort sales, puts or other options to sellsecurities.14 The intervening 5-yearperiod since implementation of theholding period revisions has evidencedthe growth of a variety of investmentstrategies associated with separating thebundle of rights that make up a security:strategies that are used in both theprivate and public securities markets.Through the use of equity swaps,forward contracts, derivatives and otherfinancial tools, holders of restricted andcontrol shares are selling interests insuch shares while retaining legal title tothe ‘‘underlying’’ security. Today,record or beneficial ownership does notnecessarily reflect who holds the voting,investment or income interests of asecurity.15

The Commission is examiningwhether it may be appropriate to reviseRule 144 to reflect the economicrealities of these transactions. Forexample, is it appropriate to treatsecurities as ‘‘held’’ in the privatemarkets if the economic risk of theinvestment has been shifted to thepublic markets? If not, should this beaddressed through reintroducingholding period tolling concepts forperiods when the holder is not at risk,or should the rule be revised to requirecompliance with the rule when the riskshifting transaction to the publicmarkets occurs? If Rule 144 were to berevised to address these questions, whatchanges would best ensure that theeconomic benefits and risks ofinvestment are not shifted during theprescribed holding period? Also, shouldany possible revisions distinguishbetween companies that are and are notwidely followed in the market and, if so,why? In addressing the questiongenerally, commenters should providetheir views as to the need to have afungibility doctrine underlie Rule 144 toassure that the safe harbor in factprotects resales that are not part of thedistribution and that are consistent withinvestment intent.

B. Reminder of Requirement To FileSection 16 Reports

Questions are being raised as to theadequacy of information to the marketsabout the securities transactions effectedthrough equity swaps and similar


16 See Rocker, ‘‘Short Interest: No More BullishBellow,’’ Barron’s, May 1, 1995.

17 Release No. 34–34514 (August 10, 1994) [59 FR42449].

18 The term ‘‘insider’’ as used in this release refersto officers, directors and holders of more than tenpercent of a class of equity securities who aresubject to Section 16.

19 59 FR 42449, 42457, footnote 101 andaccompanying text. No Section 16 consequenceswould flow from a swap transaction to the extentthe swap relates solely to interests in securitiescomprising part of a broad-based, publicly tradedmarket basket or index of stocks, approved fortrading by the appropriate federal governmentalauthority, that are deemed not to confer beneficialownership for purposes of Section 16 pursuant toRule 16a–1(a)(5)(iii) [17 CFR 240.16a–1(a)(5)(iii)]and/or are excluded from the definition of‘‘derivative securities’’ pursuant to Rule 16a–1(c)(4)[17 CFR 240.16a–1(c)(4)].

20 17 CFR 228.405 and 229.405.

21 To the extent settlement of the partiesobligations occurs on an interim basis during theterm of the swap, such as quarterly, the insider’sSection 16 obligations would arise with respect toeach settlement.

22 5 U.S.C. 603.

strategies.16 In August 1994, theCommission’s release proposingrevisions to rules under Section 16 ofthe Exchange Act 17 included adiscussion of reporting obligationsarising from equity swaps and similarrisk-shifting transactions. In that release,the Commission stated that Section 16insiders must report equity swaps andsimilar transactions in equity securitiesof the issuer,18 unless the swap relatessolely to interests in securitiescomprising part of specified marketbaskets or indices of stocks.19

The release provided the followingexample of an equity swap required tobe reported. An insider agrees to pay tothe counterparty for a period of threeyears the value of dividend payments on100,000 shares of issuer common stock,in exchange for payment of a fixedinterest rate based on the market valueof the 100,000 shares of stock at thecommencement of the swap term. Theparties also agree that at the end of theswap term, the insider will pay to thecounterparty the cash value of anyappreciation on the shares during theterm, or, conversely, the counterpartywill pay to the insider the cash value ofany depreciation. The insider retainstitle to and any voting rights in thesecurities.

The release suggested a method ofreporting entering into and closing outthe swap using stock appreciation anddepreciation rights and deemedacquisitions and dispositions of theunderlying securities. In setting forththis analysis, the Commission speciallynoted in the release that it was notsuggesting that previously filed formsreporting swap transactions in anothermanner needed to be revised, or thatswap transactions reported differentlywould be subject to disclosure pursuantto Item 405 of Regulations S–B or S–K.20

The release solicited comment onwhether the Commission’s approachreflects economic reality and whether a

separate reporting code for equity swapsis needed. The Commission wishes toremind Section 16 insiders thatreporting at the time these transactionsare entered into and when they areclosed out is required.21

III. Summary of Initial RegulatoryFlexibility Analysis

The Commission has prepared aninitial regulatory flexibility analysis inaccordance with the RegulatoryFlexibility Act.22 The analysis notes thatthe amendments to Rule 144 are beingproposed as a result ofrecommendations developed at the SECGovernment-Business Forums on SmallBusiness Capital Formation. Thepurpose of the revisions is to removeunnecessary restrictions in the resale ofsecurities while maintaining importantprotections to the investing public.

A copy of the initial regulatoryflexibility analysis may be obtainedfrom Twanna M. Young, Office of SmallBusiness Policy, Division of CorporationFinance, Securities and ExchangeCommission, 450 Fifth Street, NW., Stop7–8, Washington, DC 20549, (202) 942–2950.

IV. Statutory Basis, Text of Proposaland Authority

The amendment to the Commission’srule is being proposed pursuant tosections 2(11), 4(1), 4(4) and 19(a) of theSecurities Act.


Reporting and recordkeeping.Securities.

For the reasons set out in thepreamble, title 17, chapter II of the Codeof Federal Regulations is proposed to beamended as follows:


1. The authority citation for Part 230continues to read in part, as follows:


* * * * *2. Section 230.144 is amended by

revising paragraphs (d)(1), (e)(3)(ii),(e)(3)(iii), (e)(3)(iv) and (k) to read asfollows:

§ 230.144 Persons deemed not to beengaged in a distribution and therefore notunderwriters.

* * * * *(d) Holding period for restricted

securities. * * *(1) General rule. A minimum of one

year must elapse between the later ofthe date of the acquisition of thesecurities from the issuer or from anaffiliate of the issuer, and any resale ofsuch securities in reliance on thissection for the account of either theacquiror or any subsequent holder ofthose securities, and if the acquirortakes the securities by purchase, theone-year period shall not begin until thefull purchase price or otherconsideration is paid or given by theperson acquiring the securities from theissuer or from an affiliate of the issuer.* * * * *

(e) Limitation on amount of securitiessold. * * ** * * * *

(3) Determination of amount. * * ** * * * *

(ii) The amount of securities sold forthe account of a pledgee thereof, or forthe account of a purchaser of thepledged securities, during any period ofthree months within one year after adefault in the obligation secured by thepledge, and the amount of securitiessold during the same three-monthperiod for the account of the pledgorshall not exceed, in the aggregate, theamount specified in paragraph (e)(1) or(2) of this section, whichever isapplicable;

(iii) The amount of securities sold forthe account of a donee thereof duringany period of three months within oneyear after the donation, and the amountof securities sold during the same three-month period for the account of thedonor, shall not exceed, in theaggregate, the amount specified inparagraph (e)(1) or (2) of this section,whichever is applicable;

(iv) Where securities were acquired bya trust from the settlor of the trust, theamount of such securities sold for theaccount of the trust during any periodof three months within one year afterthe acquisition of the securities by thetrust, and the amount of securities soldduring the same three-month period forthe account of the settlor, shall notexceed, in the aggregate, the amountspecified in paragraph (e)(1) or (2) ofthis section, whichever is applicable;* * * * *

(k) Termination of certain restrictionson sales of restricted securities bypersons other than affiliates. Therequirements of paragraphs (c), (e), (f)and (h) of this section shall not apply to


1 Proposed Rule 135d.2 15 U.S.C. 77a et seq.3 Securities Act Rule 254 [17 CFR 230.254].4 17 CFR 230.251–230.263.5 Proposed amendments to Rule 254(d) [17 CFR

230.254(d)] and Rule 254(b)(4) [17 CFR230.254(b)(4)].

6 17 CFR 230.100.7 17 CFR Part 232.8 Release No. 33–6949 (July 30, 1992) [57 FR

36442]; Release No. 33–6996 (April 28, 1993) [58 FR26509].

9 NASAA is an association of securitiescommissioners from each of the 50 states, theDistrict of Columbia, Puerto Rico, Mexico andseveral of the Canadian provinces.

10 See NASAA’s Proposed Statement of Policy onSolicitation of Interest (Test the Waters)(‘‘NASAA’sStatement’’) which is set forth in an Appendix tothis release.

11 Colorado, Kansas, Massachusetts, Oklahoma,Oregon, Pennsylvania, Vermont, Virginia, andWashington.

12 The NASAA Statement requires, in addition tothe information set forth in Rule 254, (1) the dateof the issuer’s organization as well as a statementof its stage of development; (2) a more specificdescription of the issuer’s business, products andservices and the manner in which the issuer intendsto carry out its activities; (3) a general indication ofthe manner of using proposed proceeds from theoffering; and (4) a complete listing of the issuer’sofficers and directors, their locations, employmenthistory and educational background. SeeSolicitation of Interest Form in the NASAAStatement in the Appendix to this release.

13 The comment letter prepared by members ofthe Committee on Federal Regulation of Securities,the Committee on State Regulation of Securities andthe Small Business Committee of the Section ofBusiness Law of the American Bar Association onthe Small Business Initiatives suggested in 1992that the Commission explore extending use of ‘‘testthe waters’’ beyond the Regulation A context toother offerings. See letter dated July 8, 1992 inresponse to request for comment on the SmallBusiness Initiatives (Release No. 33–6924 (March12, 1992) [57 FR 9768]).

restricted securities sold for the accountof a person who is not an affiliate of theissuer at the time of the sale and has notbeen an affiliate during the precedingthree months, provided a period of atleast two years has elapsed since thelater of the date the securities wereacquired from the issuer or from anaffiliate of the issuer. In computing thetwo-year period for purposes of thisprovision, reference should be made toparagraph (d) of this section.* * * * *


Margaret H. McFarland,Deputy Secreatary.[FR Doc. 95–16390 Filed 7–7–95; 8:45 am]BILLING CODE 8010–01–P


[Release No. 33–7188; File No. S7–18–95]

RIN 3235–AG52

Solicitations of Interest Prior to anInitial Public Offering


SUMMARY: The Securities and ExchangeCommission (‘‘Commission’’) ispublishing for comment a proposed rulethat would allow issuers contemplatinginitial public offerings to solicitindications of investor interest in theircompanies prior to the filing of aregistration statement under theSecurities Act of 1933. The proposedrule would allow an issuer to assesspotential investor interest in thecompany before incurring possiblysignificant costs associated with thepreparation of offering disclosuredocuments. The proposals are intendedto reduce the regulatory impedimentsand cost of accessing public marketsconsistent with investor protectioninterests.DATES: Comments must be submitted onor before September 8, 1995.ADDRESSES: Comments should besubmitted in triplicate to Jonathan G.Katz, Secretary, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549. Commentletters should refer to File No. S7–18–95. All comments received will beavailable for public inspection andcopying in the Commission’s publicreference room, 450 Fifth Street, N.W.,Washington, D.C., 20549.FOR FURTHER INFORMATION CONTACT:Richard K. Wulff, Office of SmallBusiness Policy, Division of Corporation

Finance, at (202) 942–2950 or James R.Budge, Office of Disclosure Policy,Division of Corporation Finance, at(202) 942–2910.SUPPLEMENTARY INFORMATION: TheCommission is publishing for commenta rule 1 that would permit an issuerprior to its initial public offering(‘‘IPO’’) to solicit indications of interestin the company’s securities before filinga registration statement under theSecurities Act of 1933 (the ‘‘SecuritiesAct’’).2 The Commission also isproposing to amend the ‘‘test thewaters’’ provision 3 under Regulation A 4

to permit issuers that ‘‘test the waters’’under Regulation A and decide to havea registered offering instead to do sowithout a 30 day waiting period, as wellas permitting issuers to use RegulationA if, after ‘‘testing the waters’’ under theproposed new rule, they determine to goforward with a Regulation A offeringinstead of a registered offering.5 Inaddition, Securities Act Rule 100 6

would be amended to add a definitionof direct participation investmentprogram for purposes of the new rule,and Regulation S–T 7 would be amendedto provide that the ‘‘test the waters’’document for registered offerings maybe submitted to the Commission inelectronic format via the EDGARsystem, at the option of the issuer.

I. BackgroundIn 1992, as part of its Small Business

Initiatives, the Commission introducednew procedures into Regulation A thatallow issuers considering whether toundertake a public offering to ‘‘test thewaters’’ for potential investor interestbefore undertaking a full-scale offeringthat requires the preparation,Commission filing and delivery toinvestors of the mandated offeringdocumentation.8 The initiative wasintended to provide a cost-effectivemeans for an issuer, with no establishedmarket for its securities, to determinewhether there is any investor interest inits securities before undertaking anoffering and incurring the full costs ofcompliance with the applicabledisclosure requirements. If, after thesolicitation, the issuer concludes thereis insufficient or no investor interest, it

can avoid significant, unnecessarycompliance costs. If the issuerdetermines to proceed with the offering,it is required to provide potentialinvestors with the full mandateddisclosure documents. Since adoptionof the ‘‘test the waters’’ procedures, 61issuers have submitted solicitations tothe Commission, 26 of which haveproceeded to file Regulation A orregistered offerings.

In 1993, the North AmericanSecurities Administrators Association,Inc. (‘‘NASAA’’) 9 undertook a two-yearpilot program to consider and evaluate‘‘test the waters’’ approach under statesecurities laws.10 Nine states 11 havebeen participating in the pilot. TheNASAA pilot procedures differ fromthose adopted under Regulation A inseveral respects, the most significant ofwhich are: (a) a pre-use filingrequirement; (b) more mandatedinformation in the solicitationdocument; 12 (c) a requirement that thewritten solicitation document bedelivered to those directly contacted;and (d) delivery of the prospectus atleast seven days prior to sale. Severalclasses of issuers are disqualified fromusing the NASAA pilot ‘‘test the waters’’procedures.

Various commenters have suggestedthat the Commission explore extendingthe benefits of the ‘‘test the waters’’process beyond Regulation A.13 Mostrecently, the Subcouncil on CapitalAllocation of the Competitiveness


14 See Forthcoming Report to be used by theSubcouncil on Capital Allocation of theCompetitiveness Policy Council, March 31, 1995.

15 The Commission has established the AdvisoryCommittee on the Capital Formation and RegulatoryProcesses (the ‘‘Advisory Committee’’), chaired byCommissioner Steven M.H. Wallman. The AdvisoryCommittee is considering fundamental issuesrelating to the regulatory framework governing thecapital formation process, including whether thecurrent system of registering securities offeringsshould be replaced with a company registrationsystem. The recommendations of the AdvisoryCommittee may result in rule proposals orlegislative recommendations that, if implemented,may also address the matters discussed in thisrelease. While some of the company registrationmodels under consideration generally would notchange the requirements by which a company thatwas not filing reports with the SEC conducts anIPO, certain company registration models couldfacilitate solicitations of interest by registeredcompanies with respect to repeat offerings, byeliminating the requirement for registering eachpublic offering of securities.

16 A discussion of the legal basis for the proposedrule is in Section C of the release; comment isspecifically solicited on this issue.

17 See, e.g. Foreign Firms Flock to U.S. for IPOs,Wall Street Journal, June 23, 1995, at C1.

18 Securities Data Company. This includes foreigncompanies’ first common equity offerings in theU.S.; it does not include asset-backed securities.

19 Limitations on general solicitation underRegulation D [17 CFR 230.501–230.508] and caselaw under Section 4(2) of the Securities Act [15U.S.C.77d(2)] may limit companies’ flexibility inpursuing such alternatives. Comment is requestedin the discussion hereinafter as to what steps theCommission should take to address these issues. Ina companion release published today, theCommission is soliciting comment on variouspossible approaches to allowing generalsolicitations in some form in Regulation D offerings.See Release No. 33–7185.

20 Proposed Rule 135d(a). This provision wouldbe similar to that contained in Rule 135 [17 CFR230.135].

21 15 U.S.C. 77e.22 15 U.S.C. 78m(a) and 15 U.S.C. 78o(d).23 Proposed Rule 135d(a)(1).24 ’’Asset-backed securities’’ is defined in General

Instruction I.B.5 of Form S–3 [17 CFR 239.13].25 ’’Direct participation investment program’’

would be defined in a proposed amendment to Rule100. Comment is requested as to whether the scopeof the proposed definition is appropriate or whetheran alternative definition would meet the goals ofthe exclusion.

26 15 U.S.C. 80a–1 et seq.27 A ‘‘blank check’’ company is defined at

Securities Act Rule 419(a)(2) [17 CFR 230.419(a)(2)];and ‘‘penny stock’’ is defined at Exchange Act Rule3a51–1 [17 CFR 240.3a51–1].

28 See Section 1 of NASAA Statement in theAppendix to this release.

29 ’’Small business issuer’’ is defined in SecuritiesAct Rule 405 [17 CFR 230.405].

Policy Council 14 recommended that inthe interest of facilitating small businesscapital raising, these issuers bepermitted to ‘‘test the waters’’ inadvance of undertaking a registered IPO.

Experience under Regulation Asuggests that the ‘‘test the waters’’initiative provides issuers of smallofferings a useful and cost-effectivemeans of assessing whether there issufficient potential interest in thecompany as an investment to proceedwith a Regulation A offering. To date,these solicitations do not appear to haveraised significant investor protectionconcerns. Accordingly, the Commissiontoday is soliciting comment on theappropriateness of providing a similar‘‘test the waters’’ option for registeredIPOs. 15

In considering whether to provide a‘‘test the waters’’ process for registeredIPO’s, the Commission is committed toassuring that the interests of investorsare not compromised. The releasesolicits comment on a number oflimitations or conditions that go beyondthose currently required in connectionwith Regulation A offerings. Thesecomments are intended to provide abasis for the Commission to assess theneed for any or all of these provisionsto assure that investors have the fullopportunity to review and consider theinformation mandated by the SecuritiesAct in making their investmentdecision, and that the solicitation ofinterest communications are not such asto cause investors to overlook themandated disclosures. 16

The IPO market is one of the greatstrengths of the U.S. capital markets,and its breadth and depth is unique. 17

In the first five years of the 1990’s,$114.8 billion have been raised in thecommon equity IPO market. 18

Continued investor confidence is key tomaintaining the strength and vitality ofthis market, and any ‘‘test the waters’’process implemented by theCommission will have to be consistentwith maintaining this confidence.

II. Proposals

A. Description of proposed Rule 135dUnder the proposal, an eligible issuer

considering a registered IPO would bepermitted to solicit indications ofinterest prior to filing a registrationstatement under the Securities Act,subject to the conditions and limitationsof proposed new Rule 135d. Whileassuring that investors receiveinformation mandated by the SecuritiesAct before making an investment, theproposed rule would allow companiesto gauge investor interest beforeincurring the significant expenserequired in the preparation of IPOdisclosure documents. If market interestis not reflected by the response to thesolicitation, companies may turn toother capital-raising plans. 19

Under the current system, this wouldonly be determined after preparation ofall required compliance materials,which may involve significant expense.The efficiency of the capital markets,and the fiscal health of developingenterprises, is not benefited by issuers’finding out later rather than sooner thatthe public markets are not the mostappropriate forums for their capitalraising. On the contrary, the efficiencyof the capital raising process isenhanced when issuers that spend thelarge sums required for an IPO havesome indication as to how an offeringwill be received. The proposal wouldallow issuers to structure their offeringswith consideration for their particularneeds as well as the needs of investors,since issuers would be able to receiveindications from potential investorsconcerning what offering structure maybe of interest, and could then use thatinformation in structuring theirofferings.

Communications meeting therequirements of the proposed rulewould not be deemed to offer anysecurity for sale 20 for purposes ofSection 5 of the Securities Act.21 Asproposed, those eligible to use the newrule would include any issuer notreporting under Section 13(a) or 15(d) ofthe Securities Exchange Act of 1934 (the‘‘Exchange Act’’), 22 but not: 23

(a) Issuers of asset-backed offerings; 24

(b) Partnerships, limited liabilitycompanies and other directparticipation investment programs; 25

(c) Investment companies registeredor required to be registered under theInvestment Company Act of 1940; 26 or

(d) Blank check or penny stockissuers.27

The first three exclusions apply tothose issuers that appear unsuited to a‘‘test the waters’’ concept, given thecomplex and contractual nature of theissuer. Blank check and penny stockissuers are excluded because of thesubstantial abuses that have arisen insuch offerings. Comment is requested asto the appropriateness of the proposedexclusions. Are there any issuersproposed to be excluded that should beprovided the benefits of the ‘‘test thewaters’’ process? Are there additionalclasses of issuers that should beexcluded either because of the nature ofthe investment vehicle or potential forabuse? Should any of the exclusions inthe NASAA draft policy statement bespecifically incorporated into theproposal? 28 Should the rule be limitedto small business issuers? 29

As in the case of Regulation A, theproposed IPO ‘‘test the waters’’solicitation may include both oral andwritten solicitations, provided that awritten solicitation document issubmitted to the Commission at or priorto the time the solicitation is first


30 Proposed Rule 135d(a)(3) and (4).31 Proposed Rule 135d(a)(2).32 See Solicitation of Interest Form in the NASAA

Statement in the Appendix to this release.

33 Proposed Rule 135d(b).34 Rule 254 of Regulation A does not prohibit

requests for such information in the coupon.35 If an issuer wants to maintain full flexibility to

proceed with an offering under Regulation D andSection 4(2) of the Securities Act, the means ofdissemination of the ‘‘test the waters’’ solicitationwould have to be consistent with the limitationsunder the regulation and statute. See thecompanion release issued today, solicitingcomment on the use of general solicitation inRegulation D offerings. Release No. 33–7185.

36 See Rule 501(d) of Regulation D [17 CFR230.501(d)].

37 See Rule 144A(a)(1) [17 CFR 230.144A(a)(1)].38 Proposed Rule 135d(a)(3). Under the proposed

rule, the document would be submitted to theCommission, but not officially filed, and, like Rule254 material, would be available for publicinspection. The ‘‘test the waters’’ submission couldbe submitted either in paper or via theCommission’s EDGAR system. See proposedamendment to Rule 101(b) of Regulation S-T [17CFR 232.101(b)].

The proposed rule would contain a note statingthat only solicitation of interest material thatcontains substantive changes from or additions topreviously submitted material need be submitted.

39 Rule 254 of Regulation A provides thatsubmission of the materials to the Commission isnot a condition to the exemption.

40 Proposed note to proposed Rule 135d(a)(4).41 Rule 254(b)(3) [17 CFR 230.254(b)(3)].42 Proposed Rule 135d(a)(5).43 Rule 254(b)(4) [17 CFR 230.254(b)(4)].44 Proposed Rule 135d(a)(6).45 The Commission amended Rule 254 to provide

that a written ‘‘test the waters’’ solicitationdocument complying with Regulation A will notconstitute a ‘‘prospectus’’ as defined in Section2(10) of the Securities Act [15 U.S.C. 77b(10)]. See

made.30 Unlike Regulation A, however,the submission of the ‘‘test the waters’’written materials would be a conditionto reliance on the rule. Comment isrequested as to whether the rule shouldrequire that the written ‘‘test the waters’’solicitation material be submitted andsubject to Commission staff review priorto use. Comment also is requested as towhether submission should be acondition to reliance upon the rule.

Any written solicitation or broadcastwould be required to include thefollowing:

• A statement that the solicitation isnot an offering of securities for sale, andthat any public offering to be made willbe made by means of a prospectus thatmay be obtained from the issuer andthat will contain detailed informationabout the company and management, aswell as financial statements;

• A statement that no money is beingsolicited, or will be accepted;

• A statement that no sales will bemade or commitments to purchasesecurities will be accepted until aregistration statement is filed with theCommission and becomes effective oran appropriate exemption fromregistration is available and utilized;

• A statement that indications ofinterest involve no obligation orcommitment of any kind; and

• An identification of the issuer’schief executive officer and a brief andgeneral description of its business andproducts.31

Comment is solicited as to whethereach of the specified disclosure items isneeded in the IPO context. Should anyadditional information be requiredunder the proposed rule? Comment isrequested as to whether additionalinformation should be required in thesoliciting material, such as that requiredby the NASAA draft policy.32 Shouldthe rule limit the amount of informationincludable about financing plans suchas the type and amounts of securitiesthat might be offered for sale, as well aspossible underwriting arrangements?Should the mandated information berequired in any oral solicitation?

Subject to the prescribed disclosure,the proposed rule would permit otherinformation to be included. Thisinformation specifically could includethe type, amount, and price of thesecurities to be offered, financialinformation (including unauditedfinancial statements, and projections orother forward-looking statements). Allsuch information, of course, would be

subject to antifraud prohibitions.Comment is requested as to whetherinformation with this level of specificityabout the possible offering should bepermitted, or, instead, whether theinformation should be more limited,such as to information about thecompany generally and its intention toconduct an initial public offering.

The issuer would be permitted toinclude a coupon that could be returnedto the company indicating interest andrequesting a prospectus in the event thecompany determines to undertake apublic offering.33 The coupon would berequired to state clearly and separatelythat the indication of interest is notbinding and that no money should besent. Under the proposed rule, issuerswould not be permitted to includequestions in the coupon solicitinginformation about the investors’financial profile, such as income, assetsand investment history. Comment isrequested as to whether this limitationis appropriate.34

Under the rule as proposed, there isno restriction on the means ofdissemination of the ‘‘test the waters’’solicitation.35 Thus, the issuer couldsend the solicitation material toprospective investors, or publish it in anewspaper or other print media. Use ofbroadcast media, whether radio ortelevision, would be permitted, aswould electronic dissemination throughsuch media as the Internet or other datanetworks. To come within theprotection of the proposed safe harbor,the mandated disclosure provisionswould have to be met with respect toeach publication or transmission.Comment is requested as to whetherthere should be restrictions on this typeof solicitation. While unsolicitedtelephoning of investors could beconducted, should such telephoning beprohibited by the issuer, by broker/dealers, and other non-issuer personnelaltogether? Should the rule require thatany person directly contacted be givena copy of the written solicitationmaterial required to be submitted to theCommission? Should the rule containadditional limitations on the statementsallowed? Should the rule prescribe whatinformation is permitted to be included?

Should oral solicitations be limited orprecluded? For example, should oralsolicitations be limited to certainstatements, or limited to the informationset forth in the written solicitationmaterial? Should oral solicitations belimited to accredited investors 36 orqualified institutional buyers? 37

The proposed rule also would requirethat the writing or script be submittedto the Commission. Unlike the currentRegulation A ‘‘test the waters’’provision, however, the submissionwould be made only at theCommission’s Washington, D. C.headquarters.38 Also, as noted above,unlike the current Regulation A ‘‘testthe waters’’ provision, this submissionwould be a condition to reliance uponthe rule.39 Following the submission ofthe written document or script of thebroadcast, oral communications withprospective investors and otherbroadcasts would be permitted. Allcommunications would be subject to theantifraud provisions of the federalsecurities laws.40 As is the case withRegulation A,41 the proposed rule couldnot be relied upon after the filing of aregistration statement.42 Thus, under theproposal, all ‘‘test the waters’’solicitations, written or oral, mustterminate at the time a registrationstatement for the offering is filed. Also,the proposal would, like Regulation A,43

require that 20 days elapse between thelast publication or delivery of thesolicitation document or broadcast andany sales of securities.44 Should thisapply to oral ‘‘test the waters’’solicitations as well?

Finally, the proposed rule, likeRegulation A,45 would deem ‘‘test the


Release No. 33–6996 (April 28, 1993) [58 FR 26509].The antifraud provisions of the federal securitieslaws (Section 17(a) of the Securities Act [15 U.S.C.77q(a)] and Section 10(b) of the Securities ExchangeAct of 1934 [15 U.S.C. 78j(b)]), however, continueto apply to any Regulation A ‘‘test the waters’’material.

46 15 U.S.C. 77b(10).47 15 U.S.C. 77l(2).48 15 U.S.C. 77k.49 lll U.S. lll, 115 S. Ct. 1061, 131 L. Ed.

2d 1 (1995).50 Of course, if the issuer were to comply with

both proposed Rule 135d and Rule 505 (or 506) ofRegulation D, [17 CFR 230.505 and 230.506,respectively] and it were decided not to proceedwith an IPO, it could sell immediately under Rule505 (506). Similarly, if an issuer were to complywith both Rule 135d and Rule 504 [17 CFR 230.504](which does permit general solicitation), sales couldproceed immediately without waiting 20 days inthe event the issuer determines not to go the IPOroute.

51 See Rule 15c2–8 [17 CFR 240.15c2–8].

52 C. Schneider, J. Manko, and R. Kant, GoingPublic: Practice, Procedure and Consequences, 36(1995).

53 Section 4(2) of the Securities Act [15 U.S.C.77d(2)].

54 Proposed Rule 254(b)(4).55 See Rule 254(d). This provision would be

amended to eliminate the 30 day waiting periodcurrently required before filing a registrationstatement.

56 17 CFR 230.502(c).57 Because public offerings are permitted under

Rule 504, the following discussion about ‘‘generalsolicitation’’ would not apply to transactionspursuant to that exemption.

58 This would depend upon the manner and scopeof the dissemination of the ‘‘test the waters’’communication. The determination as to whetherthe activities constituted a general solicitationwould hinge upon the particular facts andcircumstances of individual situations.

waters’’ material submitted to theCommission and otherwise incompliance with the rule not to be a‘‘prospectus’’ as defined in Section 2(10)of the Securities Act,46 and therefore notsubject to Section 12(2) of the SecuritiesAct.47 Comment is requested as to theappropriateness of removing thesematerials from Section 12(2) liabilities.Should ‘‘test the waters’’ solicitingmaterial be required to be filed as partof the registration statement for the IPOand subjected to Sections 11 48 and 12(2)liabilities if the registered offering isconducted within a specified timeperiod of the solicitation, e.g. 2, 6 or 12months?

In Gustafson v. Alloyd Co., Inc., 49 theSupreme Court concluded that thewritten instruments there at issue didnot constitute a ‘‘prospectus’’ as thatterm is used in Section 12(2) of theSecurities Act, notwithstanding thebroad coverage of the statutorydefinition of the term ‘‘prospectus’’ inSection 2(10) of the Securities Act. TheCommission believes that itsdetermination that written documents ofthe type referred to in proposed Rule135d should not be deemed aprospectus, or part of a prospectus, is anappropriate use of its authority bothunder Sections 2(10) and 19(a). It alsobelieves that its proposal to limit thebreadth of the term ‘‘prospectus’’ is notinconsistent with the Supreme Court’sdecision in Gustafson.

As noted above, the proposed rulerequires that no sales of securities occuruntil at least 20 days after the lastpublication or delivery of thesolicitation document or broadcast.50

Comment is requested as to whether ornot pre-confirmation prospectusdelivery requirements 51 should berevised to permit investors a longerperiod of time than they have currently,e.g., seven days (instead of the current

48 hours) to consider prospectusinformation where the ‘‘test the waters’’process has been used. Comment isrequested as to the need for additionalprocedures to assure investors asufficient opportunity following a ‘‘testthe waters’’ solicitation to review andassess the full information about theissuer, its management, the securitiesand the offering provided by theregistration statement and prospectus.Comment also is requested as towhether or not there is a need to requirethat all ‘‘test the waters’’ solicitations,written or oral, cease at some period oftime prior to the filing of a registrationstatement for an IPO. Given the purposeof the proposed rule, allowing issuers todetermine whether to undertake aregistered IPO before incurring the costsof complying with the disclosure andother related requirements, would sucha cooling-off period be consistent withfinancing schedules? Due diligence andpreparation of documents typicallytakes 60 to 90 days.52 Comment isrequested as to the need for a cooling-off period prior to the commencement ofa registered offering, and the period oftime that would be appropriate, e.g. 30days or 60 days.

Under Regulation A, failure to complywith the terms and conditions of the‘‘test the waters’’ procedures can resultin a Commission order suspending aRegulation A exemption. Underproposed Rule 135d, just as with Rule135, full compliance with the terms andconditions of the rule is required tocome within the safe harbor provisionsof the rule. Comment is requested as towhether there should be a provisionaddressing failures to comply with theprovisions that would provide adequateprotection to investors, preclude undueconditioning of the market, allow timelyoversight of the contents of the writtensolicitation material, and avoid loss ofthe safe harbor for technical, immaterialdeviations from the specificrequirements of the safe harbor.

With respect to investor protection,today’s proposals would not alter thetype and amount of informationavailable to investors in connectionwith an IPO. Issuers making use of theproposed ‘‘test the waters’’ procedurewould continue to be subject to all thecurrent IPO disclosure requirements,and IPO registration statements wouldcontinue to be subject to Commissionstaff review if the issuer determined toproceed with a registered offering aftersoliciting investor interest.

Comment is requested generally onwhether the proposed ‘‘test the waters’’rule is appropriate and in investors’interest in the context of registeredIPOs. Will the proposed processeffectively accomplish theCommission’s goal of allowingbusinesses to assess the capital market’spotential interest in their businesses ona cost-effective basis, without causinginvestors to overlook the full disclosuresmandated by the federal securities laws?

B. Relationship of Exempt Offerings to‘‘Test the Waters’’ Activity

After an issuer has engaged in a ‘‘testthe waters’’ procedure under theproposed rule, it might conclude that,rather than having a registered offering,it would be desirable to raise capital bymeans of a Regulation A, private 53 orRegulation D offering. In order toaccommodate the issuer’s flexibility touse Regulation A, that Regulation’s ‘‘testthe waters’’ rule would be amended tomake it clear that ‘‘testing the waters’’under the proposed new rule could befollowed by a Regulation A offering,54

just as an issuer that ‘‘tests the waters’’under Regulation A could ultimatelydetermine to have a registered offeringinstead.55 Comment is solicited onwhether proposed Rule 135d should beused for ‘‘testing the waters’’ with aview to either a registered or aRegulation A offering, thus replacingRule 254.

With respect to offerings relying on anexemption other than Regulation A, it isnoted that under Rule 502(c) ofRegulation D,56 any form of generalsolicitation or general advertising wouldpreclude availability of the exemptionsprovided by Rules 505 and 506.57 Thus,if the issuer’s ‘‘test the waters’’ activitywas done in a way that involved generaladvertising or other activitiesconstituting general solicitation,58 itcould not proceed directly to an offeringrelying on an exemption that precludedgeneral solicitation, even if the partiesexpected to purchase in the exempt


59 17 CFR 230.501(a).60 See Rule 502(a) of Regulation D [17 CFR

230.502(a)], which enumerates factors to beconsidered in determining whether offers and salesshould be integrated for purposes of the exemptionsunder Regulation D.

61 Rule 502(a).62 The five-factors integration test is set forth in

Securities Act Release No. 4552 (November 6,1962)[27 FR 11316].

63 See Release No. 33–6949, Part II.B.64 Release No. 33–7185.

65 Section 2(3) [15 U.S.C. 77b(3)] provides, inpertinent part:

The term ‘‘offer to sell’’, ‘‘offer for sale’’, or‘‘offer’’ shall include every attempt or offer todispose of, or solicitation of an offer to buy, asecurity or interest in a security, for value.

66 The Commission has indicated that theSecurities Act allows the following publiccommunications, among others, prior to the filingof a registration statement:

• Rule 135 [17 CFR 230.135] (notice given by anissuer that it proposes to make a registered publicoffering of securities, if the notice states that theoffering will be made only by means of a prospectusand contains only specified information).

• Rule 135a [17 CFR 230.135a] (certain genericinvestment company advertising).

• Rule 135b [17 CFR 230.135b] (certainstandardized options disclosure materials).

• Rule 135c [17 CFR 230.135c] (notice by anissuer that it proposes to make, is making, or hasmade an offering of securities not registered orrequired to be registered under the Securities Act,provided that the notice is not for the purposes ofconditioning the U.S. securities market, the noticestates that the securities may not be offered or soldin the U.S. absent registration or an exemption, andthe notice contains only specified information).

• Rules 137 [17 CFR 230.137], 138 [17 CFR230.138], and 139 [17 CFR 230.139] (certain broker-dealer research reports).

• Rule 145(b)(1) [17 CFR 230.145(b)(1)] (certaincommunications regarding Rule 145(a)transactions).

• Release 33–5927 (April 24, 1978) [42 FR18163]; United Technologies Corporation (April 24,1978) (interpretive release and letter, permittingdisclosure by a bidder in a cash tender offer ofinformation required by the Williams Act aboutprevious negotiations or agreements with thesubject company regarding a merger without aregistration statement being on file).

67 See, e.g., Release No. 33–3844 (Oct. 8, 1957) [22FR 8359] (discussing publication of informationprior to and after the effective date).

68 See Release No. 33–6996 (April 28, 1993) [58FR 26509]. The Commission is considering theextent to which the rationale underlying Rule 254should guide its present inquiry.

69 15 U.S.C. 77g and 77j, respectively.

offering were accredited investors.59 Justas with any other party relying on suchan exemption, the issuer would have toensure that the exempt offering wouldnot be integrated with the ‘‘test thewaters’’ activity,60 either by relying onthe safe harbor afforded for transactionsoccurring more than six months beforeand after the Regulation D transaction,61

or by otherwise ensuring that thetransactions were distinct enough sothat they would not be integrated underthe five-factors test.62 This iscomparable to the treatment ofRegulation A ‘‘test the waters’’activity.63

The Commission recognizes that thepossibility of integrating ‘‘test thewaters’’ activity with private orRegulation D offerings could impair theusefulness of proposed Rule 135d. In acompanion release that proposes a newexemption from registration for offeringsmade in compliance with a recentlyenacted California exemption,64 theCommission is soliciting publiccomment on a variety of approaches togeneral solicitation, including whetherthe prohibition against generalsolicitation for Rules 505 and 506offerings should be rescinded, whetherit would be feasible to reducerestrictions but limit the informationallowed to be disseminated or themanner of dissemination, and otherapproaches. Would another approach beto provide a special integration safeharbor for private placements followinga Rule 135d ‘‘test the waters’’solicitation?

For example, would the 20 day periodproposed between the last ‘‘test thewaters’’ document or broadcast and anysale be an appropriate safe harbor fornon-integration of a sale to accreditedinvestors following a ‘‘test the waters’’solicitation?

C. Communications That Are Not‘‘Offers’’

As noted, proposed Rule 135d wouldprovide that any communicationmeeting the conditions of the rule, asdescribed above, is not deemed to offerany securities for sale, for purposes onlyof Section 5 of the Securities Act. Thus,‘‘test the waters’’ activity could takeplace without the filing of a Securities

Act registration statement or anavailable exemption from registration.

The Commission is cognizant thatrulemaking in this area is circumscribedby the statute’s prohibition of conductconstituting an ‘‘offer’’ prior to the filingof a registration statement.65 Theapplication of this definition to differingforms of pre-filing communications will,of course, vary. In proposing Rule 135dfor comment, it is the Commission’sintention to examine further theelements of the types of pre-filingactivity that would be most constructivefor IPOs and investors, as well as theappropriate limitations or parameters ofsuch activity.

The Commission has previously hadoccasion to consider the application ofthe statute to other types of publiccommunications made prior to the filingof a registration statement, both in rulesand in interpretive positions.66 TheCommission has also cautioned thatcertain publicity efforts in advance of aproposed public offering, although notcouched in terms of an express offer,may raise questions under the statute ifthey contribute to conditioning thepublic market or arousing publicinterest in an issuer or its securities

before a registration statement is filed.67

In the context of exempt public offeringsfor small businesses under Section 3(b)and Regulation A, the Commission hasindicated that ‘‘test the waters’’activities pursuant to Rule 254 areconsidered offers for purposes ofSection 2(3).68 The Commission intendsto examine these and otherinterpretations of the relevant statutoryprovisions in considering the historicalscope of permissible ‘‘test the waters’’activities and the appropriateness of theprovisions of proposed Rule 135d.

Recognizing these statutorylimitations, the Commission requestscomment as to whether alternativemeans are available to permit issuers togather data efficiently to assist them inassessing the likelihood that acontemplated offering will besuccessful. For example, could asimplified registration procedure beadopted in which ‘‘test the waters’’practices are made pursuant to a filed,but extremely simplified, registrationstatement, with normal, extensiveinformation to be filed by amendment ifan offering proceeds? Would thisapproach be consistent with Sections 7and 10 of the Securities Act,69 whichallow the Commission to define thecontents of a registration statement anda prospectus, respectively? Would themodest additional burden of filing ‘‘testthe waters’’ materials as a technicalregistration statement render theprocedure substantially less useful forissuers? Would issuers use a processthat requires the inclusion of the ‘‘testthe waters’’ materials in a registrationstatement subject to Section 11 or aprospectus subject to Section 12(2) ofthe Securities Act?

III. Request for CommentAny interested persons wishing to

submit written comments on theproposed expansion of the ‘‘test thewaters’’ procedure to IPOs, as well as onother matters that might have an impacton the proposals contained herein, arerequested to do so. Comments arerequested on the impact of the proposalson issuers, investors, and others. TheCommission also requests comment onwhether the proposed rules, if adopted,would have an adverse impact oncompetition that is neither necessarynor appropriate in furthering thepurposes of the Securities Act.


70 15 U.S.C. 78w(a).

71 15 U.S.C. 77b, 77c, 77d, 77e, and 77s.72 15 U.S.C. 78c, 78l, 78m, 78n, 78o(d), 78w(a)

and 78ll.73 15 U.S.C. 79c, 79e, 79f, 79g, 79j, 79l, 79m, 79n,

79q and 79t.74 15 U.S.C. 77sss.75 15 U.S.C. 80a-8, 80a-29, 80a-30 and 80a-37.

Comments will be considered by theCommission in complying with itsresponsibilities under Section 23(a) ofthe Exchange Act.70 Comment lettersshould refer to File No. S7–18–95. Allcomments received will be available forpublic inspection and copying in theCommission’s Public Reference Room,450 Fifth Street, N.W., Washington, D.C.20549.

IV. Cost-Benefit Analysis

To assist the Commission in itsevaluation of the costs and benefits thatmay result from the proposals,commenters are requested to provideviews and data relating to any costs andbenefits associated with these proposals.The proposals, which are intended toreduce complexity and potentiallysignificant costs to an issuer inconnection with the planning for anIPO, while not sacrificing investorprotection, are expected to reduce thecosts associated with IPOs. TheCommission is not proposing to increasethe burdens on any issuer that choosesto engage in an IPO. Use of the proposed‘‘test the waters’’ procedure would beoptional. Further, any cost associatedwith the preparation of the proposed‘‘test the waters’’ document would beoffset by the significant benefits thatissuers would receive in the reductionof costs. Those benefits also include ahigher degree of assurance that aparticular offering will find a receptivemarket.

V. Summary of the Initial RegulatoryFlexibility Analysis

An initial regulatory flexibilityanalysis has been prepared inaccordance with 5 U.S.C. 603concerning the proposed new rule andamendments. The analysis notes thatthe amendments are intended to reducecosts associated with IPOs.

As discussed more fully in theanalysis, the proposals would affectpersons that are small entities, asdefined by the Commission’s rules, butwould affect small entities in the samemanner as other registrants. Theproposed rule and amendments,however, are designed to decreasepotential costs to all issuers, includingsmall businesses.

A copy of the analysis may beobtained by contacting James R. Budge,Office of Disclosure Policy, Division ofCorporation Finance, Mail Stop 3–12,450 Fifth Street, N.W., Washington, D.C.20549.

VI. Statutory Basis for Rules

The amendments to the Securities Actrules, Regulation A and Regulation S–Tare being proposed pursuant to Sections2, 3, 4, 5, and 19 of the Securities Act,as amended.71

The amendment to Regulation S–Talso is being proposed pursuant toSections 3, 12, 13, 14, 15(d), 23(a) and35A of the Exchange Act, as amended,72

Sections 3, 5, 6, 7, 10, 12, 13, 14, 17 and20 of the Public Utility HoldingCompany Act of 1935, as amended,73

Section 319 of the Trust Indenture Actof 1939, as amended,74 and Sections 8,30, 31 and 38 of the InvestmentCompany Act of 1940, as amended.75

List of Subjects in 17 CFR Parts 230 and232

Reporting and recordkeepingrequirements, Securities

Text of Proposed Amendments




Authority: 15 U.S.C. 77b, 77f, 77g, 77h, 77j,77s, 77sss, 78c, 78l, 78m, 78n, 78o, 78w,78ll(d), 79t, 80a–8, 80a–29, 80a–30 and 80a–37, unless otherwise noted.

* * * * *2. By adding a paragraph (a)(8) to


§ 230.100 Definition of terms used in therules and regulations.

(a) * * *(8) The term direct participation

investment program means any program(other than an investment companyregistered or required to be registeredunder the Investment Company Act of1940 (15 U.S.C. 80a–1 et seq.)) thatprovides for flow-through taxconsequences regardless of the structureof the legal entity or vehicle fordistribution, including, but not limitedto, partnerships, limited partnerships,real estate investment trusts as definedin I.R.C. § 856, and limited liabilitycompanies.* * * * *

3. By adding § 230.135d to read asfollows:

§ 230.135d Solicitation of interestdocument for use prior to an initial publicoffering.

(a) For purposes only of section 5 ofthe Act, a written or oralcommunication, or the making ofscripted radio or television broadcasts,to determine whether there is anyinterest in the issuer’s initial publicoffering of securities shall not bedeemed to offer any securities for saleif:

(1) The issuer of the securities:(i) Is not subject to section 13 or 15(d)

of the Securities Exchange Act of 1934(the ‘‘Exchange Act’’) (15 U.S.C. 78a etseq.) immediately before the submissionof solicitation material pursuant to thissection;

(ii) Is not a development stagecompany that either has no specificbusiness plan or purpose, or hasindicated that its business plan is tomerge within an unidentified companyor companies;

(iii) Is not an issuer of penny stock asdefined in Section 3(a)(51) and Rule3a51–1 under the Exchange Act;

(iv) Is not an investment companyregistered or required to be registeredunder the Investment Company Act of1940 (15 U.S.C. 80a–1 et seq.);

(v) Is not an issuer of asset-backedsecurities; and

(vi) Is not an issuer that after its initialpublic offering would be a directparticipation investment program;

(2) The written document or script ofthe broadcast:

(i) States that the solicitation is not anoffering of securities for sale, and thatany public offering to be made will bemade by means of a prospectus that maybe obtained from the issuer and that willcontain detailed information about thecompany and management, as well asfinancial statements;

(ii) States that no money or otherconsideration is being solicited, and ifsent in response, will not be accepted;

(iii) States that no sales of thesecurities will be made or commitmentto purchase accepted until a registrationstatement is filed with the Commissionand becomes effective, or an appropriateexemption from registration is availableand utilized;

(iv) States that an indication ofinterest made by a prospective investorinvolves no obligation or commitmentof any kind; and

(v) Identifies the chief executiveofficer of the issuer and briefly and ingeneral its business and products;

(3) On or before the date of its firstuse, the issuer shall submit a copy of


any written document or the script ofany broadcast to be used in relianceupon this section to the Commission’smain office in Washington, D.C.(Attention: Office of Small BusinessPolicy). The document or broadcastscript shall either contain or beaccompanied by the name andtelephone number of a person able toanswer questions about the document orthe broadcast.

Note: Only solicitation of interest materialthat contains substantive changes from oradditions to previously submitted materialneed be submitted.

(4) Oral communications withprospective investors and otherbroadcasts are not made until aftersubmission of the written document orscript of the broadcast to theCommission as provided insubparagraph (a)(3) of this section; thereis no solicitation or acceptance ofmoney or other consideration, nor ofany commitment, binding or otherwise,from any prospective investor inreliance upon this section; and no saleis made until a registration statement iseffective pursuant to Section 8 of theAct with respect to the securitiesoffering, or an appropriate exemptionfrom registration is available andutilized;

Note: The written documents, broadcastsand oral communications are each subject tothe antifraud provisions of the federalsecurities laws.

(5) Solicitations of interest in relianceupon the provisions of this section arenot made after the filing of a registrationstatement under the Act; provided,however, that receipt by the issuer afterthe filing of a registration statement ofa coupon from a potential investorprovided to such potential investorpursuant to paragraph (b) of this sectionprior to the filing of a registrationstatement is consistent with thissubparagraph; and

(6) Sales pursuant to a registrationstatement are not made until 20calendar days after the last publicationor delivery of the document or radio ortelevision broadcast.

(b) Any written document used inreliance upon this section may includea coupon, returnable to the issuer,indicating interest in a potentialregistered offering, revealing the name,address and telephone number of theprospective investor, and stating clearlyand separately that the indication ofinterest is not binding and that nomoney should be sent. Such couponmay not request information about thefinancial profile of the investor, such asincome, assets or investment history.

(c) Written solicitation of interestmaterials used in reliance upon this

section submitted to the Commission asprovided in paragraph (a)(3) of thissection, and otherwise in compliancewith this section shall not be deemed tobe a prospectus as defined in Section2(10) of the Act.

4. By amending § 230.254 by revisingparagraph (b)(4), to read as follows:

§ 230.254 Solicitation of interest documentfor use prior to an offered statement.

* * * * *(b) * * *(4) Sales pursuant to an offering

circular or registration statement maynot be made until 20 calendar days afterthe last publication or delivery of thedocument or radio or televisionbroadcast pursuant to this rule orpursuant to § 230.135d.* * * * *

5. By amending paragraph (d) of§ 230.254 by removing the phrase: ‘‘, ifat least 30 calendar days have elapsedbetween the last solicitation of interestand the filing of the registrationstatement with the Commission,’’.

PART 232—REGULATION S–T—GENERAL RULES AND REGULATIONSFOR ELECTRONIC FILINGS


Authority: 15 U.S.C. 77f, 77g, 77h, 77j,77s(a), 77sss(a), 78c(b), 78l, 78m, 78n, 78o(d),78w(a), 78ll(d), 79t(a), 80a–8, 80a–29, 8a–30and 80a–37.

7. By amending § 232.101 byremoving the word ‘‘and’’ following thesemicolon in paragraph (b)(4), byremoving the period at the end of (b)(5)and adding in its place ‘‘; and’’, and byadding paragraph (b)(6) to read asfollows:

§ 232.101 Mandated electronicsubmissions and exceptions.

(b) * * *(6) Solicitation of interest documents

or broadcast scripts submitted to theCommission pursuant to Rule 135d(§ 230.135d of this chapter).

* * * * *Dated: June 27, 1995.By the Commission.

Margaret H. McFarland,Deputy Secretary.

Note: The following appendix will notappear in the Code of Federal Regulations.

Appendix To Release

Title: Resolution of the North AmericanSecurities Administrators Association, Inc.,Regarding the Testing-the-Waters Exemption

Whereas, NASAA recognizes the policyobjectives underlying the testing-the-watersexemption drafted by its working group, buthas substantial concerns as to whether it can

adequately ensure that investors areprotected,

Therefore, be it resolved that NASAA willtake no formal action with regard to theproposal so that a two year pilot programmay be undertaken by those jurisdictionselecting to do so and the results of theprogram may be carefully considered.

Adopted by the membership of the NorthAmerican Securities AdministratorsAssociation on April 25, 1993 at its SpringMeeting in Washington, D.C.

Proposed Statement of Policy on Solicitationof Interest (Test the Waters)

Note: This proposed rule has not beenadopted by the NASAA membership by aresolution adopted April 25, 1993, themembership voted to take no action on theproposal pending a study of its effect in thosejurisdictions that choose to adopt its use onan experimental basis. It is being publishedsolely to provide a uniform basis for thispilot project that will attempt to determine ifsuch an exemptive rule can be implementedwithout jeopardizing investor protection.

Solicitations of Interest prior to the Filingof the Registration Statement:

(1) An offer, but not a sale, of a securitymade by or on behalf of an issuer for the solepurpose of soliciting an indication of interestin receiving a prospectus (or its equivalent)for such security is exempt from section [301]of the Act if all of the following conditionsare satisfied:

(a) The issuer is or will be a business entityorganized under the laws of one of the statesor possessions of the United States or one ofthe provinces or territories of Canada, isengaged in or proposes to engage in abusiness other than petroleum exploration orproduction or mining or other extractiveindustries and is not a ‘‘blind pool’’ offeringor other offering for which the specificbusiness or properties cannot now bedescribed.

(b) The offerer intends to register thesecurity in this state and conduct its offeringpursuant to either Regulation A or Rule 504of Regulation D, as promulgated by theSecurities and Exchange Commission.

(c) Ten (10) business days prior to theinitial solicitation of interest under this rule,the offerer files with the [Administrator] aSolicitation of Interest Form along with anyother materials to be used to conductsolicitations of interest, including, but notlimited to, the script of any broadcast to bemade and a copy of any notice to bepublished.

(d) Five (5) business days prior to usage,the offerer files with the [Administrator] anyamendments to the foregoing materials oradditional materials to be used to conductsolicitations of interest, except for materialsprovided to a particular offeree pursuant toa request by that offeree.

(e) No Solicitation of Interest Form, script,advertisement or other material which theofferer has been notified by the[Administrator] not to distribute is used tosolicit indications of interest.

(f) Except for scripted broadcasts andpublished notices, the offerer does notcommunicate with any offeree about thecontemplated offering unless the offeree is


1 The bracketed subsection should only be usedin those jurisdictions that have or intend to adoptan applicable ‘‘red herring’’ exemption. The ‘‘redherring’’ exemption should cross-reference this ruleto avoid confusion.

2 See footnote 1.3 Each jurisdiction should review its exemptions

to determine which ones should be denied ifcontaminated by public solicitation.

4 Some jurisdictions may choose a twelve monthperiod because the private placement exemptionsalready in their statutes use this time frame.

provided with the most current Solicitationof Interest Form at or before the time of thecommunication or within five (5) days fromthe communication.

(g) During the solicitation of interestperiod, the offerer does not solicit or acceptmoney or a commitment to purchasesecurities.

(h) No sale is made until seven (7) daysafter delivery to the purchaser of aprospectus. [Alternative: No sale is madeuntil seven (7) days after delivery to thepurchaser of a final prospectus, or in thoseinstances in which delivery of a preliminaryprospectus is allowed hereunder, apreliminary prospectus.] 1

(i) The offerer does not know, and in theexercise of reasonable care, could not knowthat the issuer or any of the issuer’s officers,directors, ten percent shareholders orpromoters:

1. Has filed a registration statement whichis the subject of a currently effectiveregistration stop order entered pursuant toany federal or state securities law within fiveyears prior to the filing of the Solicitation ofInterest Form.

2. Has been convicted within five yearsprior to the filing of the Solicitation ofInterest Form of any felony or misdemeanorin connection with the offer, purchase or saleof any security or any felony involving fraudor deceit, including, but not limited toforgery, embezzlement, obtaining moneyunder false pretenses, larceny, or conspiracyto defraud.

3. Is currently subject to any federal orstate administrative enforcement order orjudgment entered by any state securitiesadministrator or the Securities and ExchangeCommission within five years prior to thefiling of the Solicitation of Interest Form oris subject to any federal or stateadministrative enforcement order orjudgment entered within five years prior tothe filing of the Solicitation of Interest Formin which fraud or deceit, including, but notlimited to, making untrue statements ofmaterial facts and omitting to state materialfacts, was found.

4. Is subject to any federal or stateadministrative enforcement order orjudgement which prohibits, denies, orrevokes the use of any exemption fromregistration connection with the offer,purchase or sale of securities.

5. Is currently subject of any order,judgment, or decree of any court ofcompetent jurisdiction temporarily orpreliminarily restraining or enjoining, or issubject to any order, judgment or decree ofany court of competent jurisdictionpermanently restraining or enjoining, suchparty from engaging in or continuing anyconduct or practice in connection with thepurchase or sale of any security or involvingthe making of any false filing with the stateentered within five years prior to the filingof the Solicitation of Interest Form.

The prohibitions listed above shall notapply if the person subject to the

disqualification is duly licensed or registeredto conduct securities related business in thestate in which the administrative order orjudgment was entered against such person orif the broker/dealer employing such party islicensed or registered in this state and theForm B–D filed with this state discloses theorder, conviction, judgment or decreerelating to such person. No persondisqualified under this subsection may act ina capacity other than that for which theperson is licensed or registered. Anydisqualification caused by this section isautomatically waived if the agency whichcreated the basis for disqualificationdetermines upon a showing of good causethat it is not necessary under thecircumstances that the exemption be denied.

(2) A failure to comply with any conditionof section (1) of this rule will not result inthe loss of the exemption from therequirements of section [301] of this Act forany offer to a particular individual or entityif the offerer shows:

(a) The failure to comply did not pertainto a condition directly intended to protectthat particular individual or entity; and

(b) The failure to comply was insignificantwith respect to the offering as a whole; and

(c) A good faith and reasonable attemptwas made to comply with all applicableconditions of section (1).

Where an exemption is established onlythrough reliance upon this section (2), thefailure to comply shall nonetheless beactionable as a violation of the Act by the[Administrator] under section [408] of theAct and constitute grounds for denying orrevoking the exemption as to a specificsecurity or transaction.

(3) The offerer shall comply with therequirements set forth below. Failure tocomply will not result in the loss of theexemption from the requirements of section[301] of this Act, but shall be a violation ofthe Act, be actionable by the [Administrator]under section [408] of the Act, and constitutegrounds for denying or revoking theexemption as to a specific security ortransaction.

(a) Any published notice or script forbroadcast must contain at least the identityof the chief executive officer of the issuer, abrief and general description of its businessand products and the following legends:

1. No money or other consideration isbeing solicited and none will be accepted;

2. No sales of the securities will be madeor commitment to purchase accepted untildelivery of an offering circular that includescomplete information about the issuer andthe offering;

3. An indication of interest made by aprospective investor involves no obligationor commitment of any kind; and

4. This offer is being made pursuant to anexemption from registration under the federaland state securities laws. No sale may bemade until the offering statement is qualifiedby the SEC and is registered in this state.

(b) All communications with prospectiveinvestors made in reliance on this rule mustcease after a registration statement is filed inthis state, and no sale may be made until atleast twenty (20) calendar days after the lastcommunication made in reliance on this rule.

[(c) A preliminary prospectus (or itsequivalent) may only be used in connectionwith an offering for which indications ofinterest have been solicited under this rule ifthe offering is conducted by a registeredbroker-dealer.] 2

(4) The [Administrator] may waive anycondition of this exemption in writing, uponapplication by the offerer and cause havingbeen shown. Neither compliance norattempted compliance with this rule, nor theabsence of any objection or order by the[Administrator] with respect to any offer ofsecurities undertaken pursuant to this rule,shall be deemed to be a waiver of anycondition of the rule or deemed to be aconfirmation by the [Administrator] of theavailability of this rule.

(5) Offers made in reliance on this rule willnot result in a violation of Section 301 of theAct by virtue of being integrated withsubsequent offers or sales of securities unlesssuch subsequent offers and sales would beintegrated under federal securities laws.

(6) Issuers on whose behalf indications ofinterest are solicited under this rule may notmake offers or sales in reliance on section[s][private placement exemption] 3 until [six(6)] 4 months after the last communicationwith a prospective investor made pursuant tothis rule.

Comments

1. All communications made in reliance onthis rule are subject to the anti-fraudprovisions of this Act.

2. The [Administrator] may or may notreview the materials filed pursuant to thisrule. Materials filed, if reviewed, will bejudged under anti-fraud principles. Anydiscussion in the offering documents of thepotential rewards of the investment must bebalanced by a discussion of possible risks.

3. Any offer effected in violation of thisrule may constitute an unlawful offer of anunregistered security for which civil liabilityattaches under Section [410] of the Act.Likewise any misrepresentation or omissionmay give rise to civil liability. Under theUniform Securities Act a subsequentregistration of the security for the sale of thesecurity does not ‘‘cure’’ the previousunlawful offer. Only a rescission offer madein accordance with the provisions of the Actcan accomplish such a ‘‘cure.’’ Seecommentary under Section 410.

Note to Users: The following form setsforth the minimum informationalrequirement for soliciting indications ofinterest under federal and state securitieslaws. You may include additionalinformation if you think it necessary ordesirable. Remember that any discussion inthis document is subject to the anti-fraudprovisions of the federal and state securitieslaws and must thereby be complete. Also,any discussion of potential rewards of theproposed investment must be balanced by a


1 15 U.S.C. 77a et seq.2 15 U.S.C. 78a et seq.3 17 CFR 210.3–05.4 17 CFR 228.310.

5 17 CFR 239.25.6 17 CFR 239.34.7 17 CFR 249.308.8 17 CFR 249.308a.9 17 CFR 249.308b.10 17 CFR 249.310.11 17 CFR 249.310b.12 17 CFR 230.901–904.13 Release No. 33–6863 (Apr. 24, 1990) [55 FR

18306] (the ‘‘Adopting Release’’).14 Release No. 33–7190.15 See Item 2 and Item 7 of Form 8–K [17 CFR

249.308].

discussion of possible risks. You may alterthe graphic presentation of the form in anyway as long as the minimum information isclearly presented.

Solicitation of Interest Form

lllllllllllllllllllllName of Company

Street Address of Principal Office:Company Telephone Number:Date of Organization:

Amount of the Proposed Offering: lllll

Name of Chief Executive Officer: lllll

This is a solicitation of interest only. Nomoney or other consideration is beingsolicited and none will be accepted.

No sales of the securities will be made orcommitment to purchase accepted until thedelivery of a final offering circular thatincludes complete information about theissuer and the offering.

An indication of interest made by aprospective investor involves no obligationor commitment of any kind.

This offer is being made pursuant to anexemption from registration under the federaland state securities laws. No sale may bemade until the offering statement is qualifiedby the SEC and is registered in this state.This Company

( ) Has never conducted businessoperations.

( ) Is in the development stage.( ) Is currently conducting operations.( ) Has shown a profit for the last fiscal

year.( ) Other (specify) lllll

Business

1. Describe in general what business thecompany does or proposes to do, includingwhat products or goods are or will beproduced or services that are or will berendered.

2. Describe in general how these productsor services are to be produced or renderedand how and when the company intends tocarry out its activities.

Offering Proceeds

3. Describe in general how the companyintends to use the proceeds of the proposedoffering.

Key Personnel of the Company

4. Provide the following information for allofficers and directors or persons occupyingsimilar positions:

Name, Title, Office Street Address,Telephone Number, Employment History(Employers, titles and dates of positions heldduring the past five years), and Education(degrees, schools and dates).

(end of form)

[FR Doc. 95–16391 Filed 7–7–95; 8:45 am]


17 CFR Parts 210, 228, 239 and 249

[Release Nos. 33–7189; 34–35897;International Series No. 820; File No. S7–19–95]

RIN 3235–AG47

Streamlining Disclosure RequirementsRelating to Significant BusinessAcquisitions and Requiring QuarterlyReporting of Unregistered Equity Sales

AGENCY: Securities and ExchangeCommission.ACTION: Proposed rules and forms.

SUMMARY: In connection with its reviewof problematic practices relating toRegulation S, the Commission ispublishing for comment rule revisionsthat reduce the need for reliance onRegulation S by eliminating certainimpediments to registered offerings ofsecurities under the Securities Act of1933 by streamlining requirements withrespect to financial statements ofsignificant acquisitions. Also, rulerevisions are proposed that wouldrequire registrants to report on aquarterly basis recent sales of equitysecurities that have not been registeredunder the Securities Act of 1933.DATES: Comments should be received onor before September 8, 1995.ADDRESSES: Comment letters shouldrefer to File number S7–19–95 andshould be submitted in triplicate toJonathan G. Katz, Secretary, U.S.Securities and Exchange Commission,450 Fifth Street, N.W., Washington, D.C.20549. The Commission will make allcomments available for publicinspection and copying in its PublicReference Room at the same address.FOR FURTHER INFORMATION CONTACT:Annemarie Tierney, (202) 942–2990,Office of International CorporateFinance, or Douglas Tanner, (202) 942–2960, Office of Chief Accountant,Division of Corporation Finance, U.S.Securities and Exchange Commission,Washington, D.C. 20549.SUPPLEMENTARY INFORMATION: TheCommission is publishing for commentproposed amendments to the followingrules and forms under the Securities Actof 1933 (the ‘‘Securities Act’’) 1 and theSecurities Exchange Act of 1934 (the‘‘Exchange Act’’) 2 concerning financialstatements of acquired (or to beacquired) businesses and quarterlyreporting of unregistered equityofferings: Rule 3–05 of Regulation S–X,3Rule 310 of Regulation S–B,4 Item 17 of

Form S–4,5 Item 17 of Form F–4,6 Item7 of Form 8–K,7 Item 2 of Form 10–Q,8Item 2 of Form 10–QSB,9 Item 5 of Form10–K,10 and Item 5 of Form 10–KSB.11

I. Introduction

The Commission adopted RegulationS 12 in April 1990 in order to clarify theextraterritorial application of theregistration requirements of theSecurities Act.13 Since adoption, anumber of problematic practices havedeveloped involving unregistered salesof equity securities of domesticreporting companies purportedly inreliance upon Regulation S. In acompanion release,14 the Commission ispublishing its views concerningproblematic practices under RegulationS and is requesting comment as towhether Regulation S also should beamended to impose additionalrestrictions on its use.

Commenters have suggested thatcompanies may be compelled to sellsecurities offshore, rather than inregistered transactions, because ofregistration disclosure requirementsrelating to significant acquisitions. TheCommission is proposing to streamlinethese requirements to reduce regulatoryimpediments to the use of registeredofferings. Also, in response tocommenters’ suggestions that investorsneed information about private oroffshore placements of equity securitiesthat is not currently disclosed, theCommission is proposing to requirequarterly reporting of unregisteredequity offerings. Commenters havesuggested this public reporting may alsohave the ancillary benefit of deterringabuses of Regulation S.

II. Proposed Simplification ofRegistration Disclosure of SignificantAcquisitions

Domestic companies subject to thereporting requirements of the ExchangeAct are required to report significantacquisitions on Form 8–K within 15days after consummation of thetransaction; a grace period of up to 60days from the filing due date is given forfiling the required audited financialstatements.15 On the other hand, a


16 See Rule 3–05 of Regulation S–X and Item310(c) of Regulation S–B [17 CFR 210.3–05 and 17CFR 228.310(c)].

Registered offerings that are not primarily of acapital raising nature are permitted to go forwardwithout those financial statements until 75 daysfollowing the acquisition, as permitted by Form 8–K. Specifically, the restriction on offeringsregistered under the Securities Act does not applyto (a) offerings or sales of securities upon theconversion of outstanding convertible securities orupon the exercise of outstanding warrants or rights;(b) dividend or interest reinvestment plans; (c)employee benefit plans; (d) transactions involvingsecondary offerings; or (e) sales of securitiespursuant to Rule 144. The restriction also appliesto certain unregistered offerings as well. SeeInstruction 2 to Item 7 of Form 8–K.

17 The significance of an acquired business isevaluated based on (i) the amount of the issuer’sinvestment in the acquired business; (ii) the totalassets of the acquired business; and (iii) the pre-taxincome of the acquired business, all as comparedto the registrant’s most recent comparable financialitems.

18 The amendments would also permit certainprivate placements under Rules 505 and 506 ofRegulation D under the Securities Act [17 CFR230.505 and 506] to go forward under the sameconditions as a registered offering.

19 The Commission has established the AdvisoryCommittee on the Capital Formation and RegulatoryProcesses (the ‘‘Advisory Committee’’), chaired by

Commissioner Steven M.H. Wallman. The AdvisoryCommittee is considering fundamental issuesrelating to the regulatory framework governing thecapital formation process, including whether thecurrent system of registering securities offeringsshould be replaced with a company registrationsystem. The recommendations of the AdvisoryCommittee may result in rule proposals orlegislative recommendations that, if endorsed bythe Commission, ultimately may address thematters discussed in this release. Because mostfinancing transactions that would be undertakenwithin the framework of several of the companyregistration models now being considered by theAdvisory Committee could be conducted primarilyon the basis of disclosure provided in a registeredcompany’s filed periodic and current reports,business acquisition reporting generally would berendered consistent in both the public offering andperiodic reporting contexts.

20 A ‘‘blank check company’’ is defined in§ 230.419 of Regulation C [17 CFR 230.419(a)].

21 The date of an offering will be deemed to bethe date of a final prospectus or prospectussupplement relating to the offering as filed with theCommission pursuant to Rule 424(b) [17 CFR230.424(b)] under the Securities Act.

22 17 CFR 210.11–01 to 11–03.23 See Item 303 of Regulation S–K and S–B [17

CFR 229.303 and 228.303].

24 In such case, the issuer must furnish auditedfinancial statements of the most recent fiscal year

Continued

company that registers securities underthe Securities Act must provideinformation in the registration statementabout significant acquisitions, includingaudited financial statements, from suchtime as the acquisition is probable.16

One, two or three years of auditedfinancial statements may be required,depending on the relative significanceof the acquired business.17 If theregistrant is unable to obtain suchfinancial statements from the potentialacquiree for inclusion in the registrationstatement, the issuer would have toresort to alternative financings. Thus,reporting companies, including thosewith shelf registrations of securities,may be compelled to forgo publicofferings and to undertake private oroffshore offerings. The rules proposedtoday are intended generally to allowcompanies to provide information aboutsignificant acquisitions in Securities Actregistration statements on the same timeschedule as for Exchange Actreporting.18

In addition, the Commission isproposing to provide an automaticwaiver of the earliest year of requiredaudited financial statements otherwiserequired to be provided for aconsummated business acquisition infilings made under either the SecuritiesAct or the Exchange Act if thosefinancial statements are not readilyavailable. A similar waiver provisionwas previously adopted for smallbusiness issuers and has proved quiteuseful in addressing significant practicalproblems for issuers engaged inacquisitions.19

A. Elimination of Required FinancialStatements for Pending Acquisitionsand Waiver of Financial Statements forRecently Completed Acquisitions

The Commission proposes toeliminate the requirement to provideaudited financial statements for pendingbusiness acquisitions in Securities Actregistration statements, other thanregistrations by ‘‘blank checkcompanies.’’ 20 In addition, the proposedrules would automatically waive therequired financial statements forsignificant acquisitions completedwithin 75 days of a registered offering,if such audited financial statements arenot readily available at the time the offercommences.21 However, other thanfinancial statements and pro formainformation presented pursuant to Rules3–05 and Article 11 of Regulation S–Xand Item 310 of Regulation S–B, theproposed rule changes do not changeinformation required with respect tosignificant acquisitions.

Although financial statements ofacquirees may be omitted under theproposed amendments, pro formafinancial information required byArticle 11 of Regulation S–X and Item310 of Regulation S–B would continueto be required when financialstatements of the acquiree arefurnished.22 In any case, likely effects ofa probable or recently consummatedbusiness combination are required to bediscussed in Management’s Discussionand Analysis, to the extent material.23

Comments are requested concerningwhether the accommodations proposedtoday should only be available withrespect to acquisitions below aparticular level of significance

compared to the assets and pre-taxincome of the registrant. If a significancetest is appropriate, should it be, forexample, 75%, 60%, 50%, 40%, 30% or20%? Comment is requested whetherother classes of issuers, in addition to‘‘blank check companies,’’ should beexcluded from the provisions of theproposed amendments. Is it appropriateto provide the same grace period foroffering documents as for Form 8–Kreports? Should the grace period beshorter, e.g. 15 days? Further, commentis requested regarding whether suchrelief should be available to allregistrants (including new registrants) orwhether minimum reporting history orpublic float requirements should beestablished. Comment is requested as towhether audited financial statementswith respect to significant businesscombinations that have not beenconsummated but are probable shouldbe required to be furnished in theprospectus if the financial statementsare readily available. Comment isrequested as to whether unauditedfinancial statements with respect toprobable or recently consummatedbusiness combinations should berequired if they are readily available.

Although a domestic company mayproceed with a registered offering ofsecurities without financial statementsof a recent or probable acquiree in thecircumstances described above, it willbe required to file financial statementsof each significant acquired business onForm 8–K within 75 days ofconsummation of the acquisition. Theproposed revisions would apply toofferings of domestic and foreign issuersalike. However, foreign private issuersare not subject to quarterly or Form 8–K reporting rules, and are not requiredcurrently to furnish financial statementsof acquired businesses in the absence ofa registered offering of securities.Comment is requested as to whether therule should therefore include, as acondition for omission of the financialstatements in a registration statement,that the foreign private issuer undertakein the registration statement to provideon Form 6–K the audited financialstatements of the acquired businesswithin 75 days of consummation of thebusiness combination.

The amendments proposed todaywould also eliminate the significancethreshold that triggers the requirementto provide in registration statementsaudited financial statements of acquiredbusinesses that, in the aggregate, but notindividually, are significant.24 Comment


for a majority of the individually insignificantbusinesses. See Rule 3–05(b)(i) of Regulation S–X.

25 Audited income statements of significantacquired or to be acquired operating real estateproperties are required to be furnished pursuant toRule 3–14 of Regulation S–X and Item 310(e) ofRegulation S-B [17 CFR 210.3–14 and 228.310(e)].The income statements are required to be presentedonly for the most recent fiscal year, regardless ofsignificance, if the property is not acquired from arelated party and the registrant is not aware of anymaterial factors relating to the specific property thatwould cause the reported financial information notto be necessarily indicative of future operatingresults. The income statements may exclude itemsnot comparable to the proposed future operation ofthe property, such as mortgage interest, leaseholdrental, depreciation, corporate expenses and federaland state income taxes.

26 Forms S–4 and F–4 do provide certainaccommodations with respect to acquirees that arenot reporting companies under the Exchange Act.See Item 17 in each Form [17 CFR 239.25 and 33].

27 Financial statements of an acquired businessare required pursuant to Item 14 if action is to betaken with respect to mergers, consolidations,acquisitions and similar matters [17 CFR 240.14a-101.14].

28 The number of years for which auditedfinancial statements are required depends on thelevel of significance: one year at 10%, two years at20%, and three years at 40%. See Rule 3–05(b)(1)of Regulation S–X.

29 Release No. 33–6949 (July 30, 1992) [57 FR36442]; Release No. 33–6996 (April 28, 1993) [58 FR26509].

30 If a registrant omits financial statements inreliance on the proposed amendments, the proforma financial information included in a Form 8–K relating to the acquisition could not be used asthe basis for measuring the significance ofsubsequent acquisitions as otherwise permitted byRule 3–05(b)(1) of Regulation S–X. See proposedamendments to Rule 3–05(b)(1) of Regulation S–X.

31 17 CFR 230.135c, adopted in Release No. 33–7053 (Apr. 26, 1994) [59 FR 21644].

32 Final Report of the SEC Government-SmallBusiness Capital Formation (February 1995).

33 The term ‘‘equity security’’ would includeconvertible and exchangeable securities, warrants,options and other types of equity-related securities,as provided under Rule 3a11–1 [17 CFR 240.3a–11–1] under the Exchange Act.

34 This information is currently required inregistration statements on Forms S–1, S–11 and F–1.

35 17 CFR 229.701.36 17 CFR 228.701.37 As to consideration, Item 701 requires: ‘‘As to

securities sold for cash, state the aggregate offeringprice and the aggregate underwriting discounts or

is requested as to whether eliminationof the requirement is appropriate orwhether a significance level applicableto aggregations of individuallyinsignificant businesses should bemaintained at the current threshold of20%, or increased to 40%, 50%, 60% or75%.

No change is proposed with respect tocurrent rules governing financialstatements required for acquiredoperating real estate properties. TheCommission has previously addressedthe issue of financial statements foroperating real estate properties. Rule 3–14 of Regulation S–X reflectsconclusions reached regarding theappropriate form of financialinformation and the number of periodsfor which the financial informationshould be furnished.25 Comment isrequested on whether relief proposedunder the proposed amendments shouldalso be available for operating real estateproperties acquired or to be acquired bythe registrant.

Where securities are being registeredin an offering to acquire a business,audited financial statements of thebusiness to be acquired will still berequired as provided under the currentrules.26 The proposed amendments donot cover these situations. The registrantmay rely on the proposed rules withrespect to other pending or recentlycompleted acquisitions.

Likewise, the proposed new ruleswould not change the financialstatement requirements of the businessto be acquired for proxy statements inwhich financial statements of suchbusiness are required to be providedpursuant to Item 14 of Schedule 14A.27

Comment is requested as to whether therelief afforded under the proposed

amendments should be available for acompany being acquired if thatacquisition transaction is the subject ofthe registration statement or proxystatement.

B. Automatic Waiver of CertainUnavailable Acquiree FinancialStatements

When audited financial statements ofan acquired business are required infilings made under the Exchange Act orthe Securities Act, the number of yearsfor which statements are mandatedvaries depending on the level ofsignificance of the acquisition relative tothe assets and income of the registrant.28

In 1992, as part of its Small BusinessInitiatives,29 the Commission providedcertain relief in cases where theacquiree’s audited financial statementsare not readily available. This automaticwaiver is proposed to be extended to allissuers. As proposed to be amended,Rule 3–05 would provide that, where anacquiree’s audited financial statementsare not readily available, therequirement for furnishing them wouldbe automatically waived if thesignificance of the acquired businessdoes not exceed 20%, and the earlier ofthe two years of the required financialstatements would be automaticallywaived where significance does notexceed 40%.30

Comment is requested as to theappropriateness of this automaticwaiver provision. Should theCommission eliminate altogether therequirement for financial statements ofany acquisition below the 20%significance level? Should financialstatements that are not readily availablebe waived automatically unless theacquisition exceeds the 50% level ofsignificance? Comment is requested alsoas to whether unaudited financialstatements should be required to befiled if audited financial statements areomitted pursuant to the automaticwaiver granted under the proposed rule.

III. Quarterly Reporting of UnregisteredEquity Sales

Concerns have been raised by somecommenters that while unregisteredoffshore or private placements ofcommon stock may have a materialeffect on the issuer and may result insignificant dilution of existingshareholders, they frequently are notpublicly disclosed.

Recognizing the market need for suchinformation, the Commission last yearadopted Rule 135c 31 to remove anyregulatory impediment to suchdisclosure. The rule provides a safeharbor under Section 5 for publicannouncement of unregistered offerings.Some have suggested that mandatedreporting of unregistered equityplacements would assure investors areprovided with material informationabout such transactions and have theadditional benefit of spotlighting abusesof Regulation S. The SEC Government-Business Forum on Small BusinessCapital Formation included arecommendation that reporting ofRegulation S offerings on Form 8–K berequired.32

In response to these concerns andsuggestions, the Commission isproposing amendments to its annualand quarterly report forms for domesticissuers that would require thedisclosure of unregistered sales ofequity securities 33 during the previousfiscal quarter, whether pursuant to aprivate placement, a Regulation Soffering or otherwise. This informationwould be provided in an issuer’sQuarterly Report on Form 10–Q or 10–QSB for sales during the issuer’s firstthree fiscal quarters and in the AnnualReport on Form 10–K or 10–KSB forofferings during the final fiscal quarter.

The disclosure proposed 34 is thatcurrently set forth in Items 701 ofRegulation S–K 35 and Regulation S–B,36

and includes:• The title and amount of securities

sold, and the date of the transaction.• Underwriter or placement agent.• The consideration received.37


commissions. As to any securities sold otherwisethan for cash, state the nature of the transactionsand the nature and aggregate amount ofconsideration received by the registrant.’’ 38 5 U.S.C. 603 (1988).

• Persons or classes of persons towhom the securities were sold.

• The exemption from registrationclaimed.

Comment is requested on investors’need for such information. Comment isalso requested as to whether theinformation will be sufficiently timely,or instead, should be provided in afiling at an earlier date, such as amandatory Current Report on Form 8–K, or a notice of sale similar to that usedfor Regulation D. Should notice berequired prior to or at the time of thesale? Some have suggested that earlierreporting should be required unless theRegulation S restricted period islengthened so that a report must be filedbefore the end of the restricted period.Comment also is requested as to theadequacy of the information required; isthere additional information that wouldbe helpful to investors; are there itemsthat are not necessary?

The proposed requirement is limitedto unregistered sales of common equitysecurities (and common equityequivalents) because of the significantmarket impact the issuance of suchsecurities often has and the current lackof public information about such sales.Comment is requested as to whether areporting requirement should beextended to other types of securities orregistered offerings, e.g., takedowns offa shelf registration statement, and if sowhy?

IV. Cost-Benefit Analysis

To assist the Commission in itsevaluation of the costs and benefits thatmay result from the proposed changes todisclosure requirements contained inthis release, commenters are requestedto provide views and data relating toany costs and benefits associated withthe proposals. It is expected that theproposals relating to financialstatements of acquired businesses willdecrease registrants’ costs andcompliance burdens. It is expected thatthe proposals to disclose sales ofunregistered equity securities on aquarterly basis will modestly increaseregistrants’ costs and complianceburdens. This requirement should notsignificantly increase the burden oncompany resources, since mostregistrants are required to gather suchinformation in connection with thepreparation of audited and unauditedfinancial statements. To the extent thisrequirement results in any additionalexpense, it may be justified in view of

the material information that would beavailable to investors.

V. Request for CommentsAny interested person wishing to

submit written comments on any aspectof the amendments to forms and rulesthat are subject to this release arerequested to do so. Comments should besubmitted in triplicate to Jonathan G.Katz, secretary, U.S. Securities andExchange Commission, 450 5th Street,N.W., Washington, D.C. 20549 andshould refer to file number S7–19–95.

VI. Summary of Initial RegulatoryFlexibility Analysis

The Commission has prepared anInitial Regulatory Flexibility Analysispursuant to the requirements of theRegulatory Flexibility Act,38 regardingthe proposed amendments to Rule 3–05of Regulation S-X, Item 310 ofRegulation S–B, Form S–4 and Form F–4 and Forms 10–Q, 10–QSB, 10–K and10–KSB. The analysis notes that theseproposed amendments relating tofinancial statement requirements foracquired businesses would provideissuers greater flexibility and efficiencyin accessing the public securitiesmarkets. The proposed amendmentswith respect to disclosure of recent salesof unregistered securities are intendedto provide investors with moreinformation regarding changes inoutstanding securities of publiccompanies.

As discussed more fully in theanalysis, the proposed changes wouldaffect persons that are small entities, asdefined by the Commission’s rules. It isexpected that the changes primarilywould decrease reporting,recordkeeping and compliance burdens,although the requirement to reportunregistered sales would modestlyincrease such burdens. The analysis alsoindicates that there are no currentfederal rules that duplicate, overlap orconflict with the revised disclosureprovisions.

As stated in the analysis, severalpossible significant alternatives to thedisclosure proposals were considered,including, among others, establishingdifferent compliance or reportingrequirements for small entities orexempting them from all or part of theproposed requirements. As more fullydiscussed in the analysis, thealternatives were either addressed in theproposals, inconsistent with thepurposes of the federal securities laws,or otherwise without justification.

Written comments are encouragedwith respect to any aspect of the

analysis. Such comments will beconsidered in the preparation of theFinal Regulatory Flexibility Analysis ifthe proposed revisions are adopted. Acopy of the analysis may be obtained bycontacting Annemarie Tierney, Office ofInternational Corporate Finance,Division of Corporation Finance at (202)942–2990, U.S. Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549.

VII. Statutory Bases

The amendments to the Commission’srules and forms are being proposedpursuant to sections 2, 3, 4 and 19 of theSecurities Act of 1933 and 3(b), 4A, 12,13, 14, 15, 16 and 23 of the SecuritiesExchange Act of 1934.

Text of Proposals


PART 210—FORM AND CONTENT OFAND REQUIREMENTS FOR FINANCIALSTATEMENTS, SECURITIES ACT OF1933, SECURITIES EXCHANGE ACTOF 1934, PUBLIC UTILITY HOLDINGCOMPANY ACT OF 1935, INVESTMENTCOMPANY ACT OF 1940, ANDENERGY POLICY ANDCONSERVATION ACT OF 1975—REGULATION S–X


Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s,77aa(25), 77aa(26), 78l, 78m, 78n, 78o(d),78w(a), 78ll(d), 79e(b), 79j(a), 79n, 79t(a),80a–8, 80a–20, 80a–29, 80a–30, 80a–37a,unless otherwise noted.

2. Section 210.3–05 is amending byrevising paragraph (b) to read as follows:

§ 210.3–05 Financial statements ofbusinesses acquired or to be acquired.

(a) ***(b) Periods to be presented. (1)(i) If

securities are being registered to beoffered to the security holders of thebusiness to be acquired, the financialstatements specified in §§ 210.3–01 and210.3–02 shall be furnished for thebusiness to be acquired, except asprovided otherwise for filings on FormN–14, S–4 or F–4. In all other cases,financial statements of the businessacquired or to be acquired shall be filedfor the periods specified in thisparagraph or such shorter period as thebusiness has been in existence. Thefinancial statements covering fiscalyears shall be audited except asprovided in Item 14 of Schedule 14A,(§ 240.14a–101 of this chapter) withrespect to certain proxy statements or in


registration statements filed on FormsN–14, S–4 or F–4 (§ 239.23, 25 or 34 ofthis chapter). The periods for whichsuch financial statements are to be filedshall be determined using theconditions specified in the definition ofsignificant subsidiary in § 210.1–02(w)as follows:

(A) If none of the conditions exceeds10 percent, financial statements are notrequired.

(B) If any of the conditions exceeds 10percent, but none exceed 20 percent,financial statements shall be furnishedfor at least the most recent fiscal yearand any interim periods specified in§§ 210.3–01 and 210.3–02.

(C) If any of the conditions exceeds 20percent, but none exceed 40 percent,financial statements shall be furnishedfor at least the two most recent fiscalyears and any interim periods specifiedin §§ 210.3–01 and 210.3–02.

(D) If any of the conditions exceeds 40percent, the full financial statementsspecified in §§ 210.3–01 and 210.3–02shall be furnished.

(ii) The determination shall be madeby comparing the most recent annualfinancial statements of each suchbusiness to the registrant’s most recentannual consolidated financialstatements filed at or prior to the dateof the acquisition. However, if theregistrant made a significant acquisitionsubsequent to the latest fiscal year-endand filed a report on Form 8–K whichincluded audited financial statements ofsuch acquired business for the periodsrequired by this section and the proforma financial information required by§ 210.11, such determination may bemade by using the pro forma amountsfor the latest fiscal year in the report onForm 8–K rather than by using thehistorical amounts for the latest fiscalyear of the registrant. The tests may notbe made by ‘‘annualizing’’ data.However, if a Form 8–K was filed toreport a significant acquisition butaudited financial statements were notfurnished pursuant to the provisions ofparagraph (b)(2)(i) of this section, thedetermination of significance may notbe made using the pro forma amountsfor the latest fiscal year.

(2) Notwithstanding the requirementsin paragraph (b)(1) of this section:

(i) If none of the conditions specifiedin the definition of significantsubsidiary in paragraph (b)(1) of thissection exceeds 20 percent and therequired audited financial statements ofthe acquired business are not readilyavailable, an automatic waiver of therequired audited financial statements isgranted. If none of the conditionsspecified in the definition of significantsubsidiary in paragraph (b)(1) of this

section exceeds 40 percent and therequired audited financial statementsare not readily available, an automaticwaiver is granted with respect to therequired audited financial statementsfor the fiscal year preceding the latestfiscal year.

(ii)(A) Separate financial statements ofthe acquired or to be acquired businessneed not be presented in a proxystatement or registration statementpursuant to this rule, if either:

(1) The consummation of theacquisition has not yet occurred; or

(2) The acquisition was consummatedwithin 75 days of the date of the offeringunder the Securities Act of 1933 [15U.S.C. §§ 77a et seq.], or mailing date inthe case of a proxy statement, and therequired audited financial statements ofthe acquired business are not readilyavailable at the date of the finalprospectus or mailing of the proxy.

(B) Except that the provisions of thisparagraph are not applicable toregistration statements for securitiesissued to acquire the business orregistrations statements subject to theprovisions of § 419 of Regulation C [17CFR 230.419].

(iii) Separate financial statements ofthe acquired business need not bepresented once the operating results ofthe acquired business have beenreflected in the audited consolidatedfinancial statements of the registrant fora complete fiscal year unless suchfinancial statements have not beenpreviously filed or unless the acquiredbusiness is of such significance to theregistrant that omission of suchfinancial statements would materiallyimpair an investor’s ability tounderstand the historical financialresults of the registrant. For example, if,at the date of acquisition, the acquiredbusiness met at least one of theconditions in the definition ofsignificant subsidiary in § 210.1–02 atthe 80 percent level the incomestatements of the acquired businessshould normally continue to befurnished for such periods prior to thepurchase as may be necessary whenadded to the time for which auditedincome statements after the purchaseare filed to cover the equivalent of theperiod specified in § 210.3–02.

(iv) A separate audited balance sheetof the acquired business is not requiredwhen the registrant’s most recentaudited balance sheet required by§ 210.3–01 is for a date after the date theacquisition was consummated.* * * * *

3. Section 210.11–01 is amended byrevising paragraph (e) to read as follows:

§ 210.11–01 Pro forma financialinformation.

* * * * *(e) This rule does not apply to

transactions between a parent companyand its totally held subsidiary or to atransaction for which financialstatements of an acquired or to beacquired business are not presentedpursuant to § 210.3–05(b)(i) and§ 210.3–05(b)(ii).



Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j,77k, 77s, 77aa(25), 77aa(26), 77ddd, 77eee,77ggg, 77hhh, 77jjj, 77nnn, 77sss, 78l, 78m,78n, 78o, 78w, 78ll, 80a-8, 80a-29, 80a-30,80a-37, 80b-11, unless otherwise noted.

5. By amending § 228.310 by addingparagraph (c)(3)(iv), removing paragraph(c)(4), redesignating paragraph (c)(5) asparagraph (c)(4), and revising paragraph(d)(2) to read as follows:

§ 228.310 (Item 310) financial statements.

* * * * *(c) * * *(3) * * *(iv) Notwithstanding the requirements

in paragraphs (c)(3)(i) and (c)(3)(ii) ofthis Item, separate financial statementsof the acquired or to be acquiredbusiness need not be presented in aproxy statement or registrationstatement pursuant to this rule, if either:

(A) The consummation of theacquisition has not yet occurred; or

(B) The acquisition was consummatedwithin 75 days of the date of the offeringunder the Securities Act of 1933 [15U.S.C. §§ 77a et seq.], or mailing date inthe case of a proxy statement, and therequired audited financial statements ofthe acquired business are not readilyavailable at the date of the finalprospectus or mailing of the proxy.Except that the provisions of thisparagraph are not applicable toregistration statements for securitiesissued to acquire the business orregistrations statements subject to theprovisions of § 419 of Regulation C [17CFR 230.419].

(4) * * *(d) * * *(2) The provisions of paragraph (c)(2)

of this Item apply to paragraph (d) ofthis Item. However, paragraph (d) of thisItem does not apply to a transaction forwhich financial statements of anacquired or to be acquired business arenot presented pursuant to paragraph(c)(3)(iv) of this Item.* * * * *


PART 239—FORMS PRESCRIBEDUNDER THE SECURITIES ACT OF 1993


Authority: 15 U.S.C. 77f, 77g, 77h, 77j,77sss, 78c, 78l, 78m, 78n, 78o(d), 78w(a),78ll(d), 79e, 79f, 79g, 79j, 79l ,79m, 79n, 79q,79t, 80a-8, 80a-29, 80a-30 and 80a-37, unlessotherwise noted.

* * * * *7. By revising paragraph (b)(7) of Item

17 of Form S–4 (referenced in § 239.25)to read as follows:

Note: Form S–4 does not and theseamendments will not appear in the Code ofFederal Regulations.

Form S–4* * * * *

Item 17. Information with Respect toCompanies Other Than S–3 or S–2Companies.* * * * *

(b) * * *(7) Financial statements as would have

been required to be included in an annualreport furnished to security holders pursuantto Rules 14a–3(b)(1) and (b)(2) (§ 240.14a–3of this chapter) or Rules 14c–3(a)(1) and(a)(2) (§ 240.14c–3 of this chapter), had thecompany being acquired been required toprepare such a report; Provided, however,that the balance sheet for the year precedingthe latest full fiscal year and the incomestatements for the two years preceding thelatest full fiscal year need not be audited ifthey have not previously been audited. Inany case, such financial statements need onlybe audited to the extent practicable. If thisForm is used for resales to the public by anyperson who with regard to the securitiesbeing reoffered is deemed to be anunderwriter within the meaning of Rule145(c) (§ 230.145(c) of this chapter), thefinancial statements of such companies mustbe audited for the periods required to bepresented pursuant to paragraphs (b)(1) and(b)(2)(i) of Rule 3–05 of Regulation S–X (17CFR 210.3–05).

* * * * *8. By revising paragraph (b)(5) of Item

17 of Form F–4 to read as follows:Note: Form F–4 does not and these

amendments will not appear in the Code ofFederal Regulations.

Form F–4

* * * * *Item 17. Information with Respect to

Foreign Companies Other Than F–3 or F–2Companies.

* * * * *(b) * * *(5) Financial statements as would have

been required to be included in an annualreport on Form 20–F (17 CFR 249.220f) hadthe company being acquired been required toprepare such a report; Provided, however,that the balance sheet for the year precedingthe latest full fiscal year and the incomestatements for the two years preceding thelatest full fiscal year need not be audited if

they have not previously been audited. Inany case, such financial statements need onlybe audited to the extent practicable. If thisForm is used for resales to the public by anyperson who with regard to the securitiesbeing reoffered is deemed to be anunderwriter within the meaning of Rule145(c) (§ 230.145(c) of this chapter), thefinancial statements of such companies mustbe audited for the periods required to bepresented pursuant to paragraphs (b)(1) and(b)(2)(i) of Rule 3–05 of Regulation S–X (17CFR 210.3–05).

* * * * *



Authority: 15 U.S.C. 78a et seq., unlessotherwise noted;

* * * * *10. By amending Form 8–K

(referenced in § 249.308) by revisingInstruction 2 of Item 7 to read asfollows:

Note: Form 8–K does not and theseamendments will not appear in the Code ofFederal Regulations

Form 8–K* * * * *

Item 7. Financial Statements and Exhibits.

* * * * *Instructions. * * *2. During the pendency of an extension

pursuant to this paragraph, registrants will bedeemed current for purposes of theirreporting obligations under Section 13(a) or15(d) of the Securities Exchange Act of 1934.With respect to filings under the SecuritiesAct of 1933, however, registration statementswill not be declared effective and post-effective amendments to registrationstatements will not be declared effective. Inaddition, offerings should not be madepursuant to effective registration statements,or pursuant to Rules 505 and 506 ofRegulation D (§§ 230.501 through 506 of thischapter), where any purchasers are notaccredited investors under Rule 501(a) of thatRegulation, until the required auditedfinancial statements are filed; Provided,however, that the above restriction shall notapply during the pendency period of anextension pursuant to this Item if therequired audited financial statements of theacquired business are not readily available.Further, the following offerings or sales ofsecurities shall not be affected by thisrestriction:

(a) Offerings or sales of securities upon theconversion of outstanding convertiblesecurities or upon the exercise of outstandingwarrants or rights;

(b) Dividend or interest reinvestmentplans;

(c) Employee benefit plans;(d) Transactions involving secondary

offerings; or(e) Sales of securities pursuant to Rule 144

(§ 230.144 of this chapter).

* * * * *

11. By amending Form 10–Q(referenced in § 249.308a) by addingparagraph (c) to Item 2 of Part II priorto the Instruction to read as follows:

Note: Form 10–Q does not and theseamendments will not appear in the Code ofFederal Regulations

Form 10–Q

* * * * *

Part II

Item 2. Changes in Securities.

* * * * *(c) Furnish the information required by

Item 701 of Regulation S–K (§ 229.701 of thischapter) as to all equity securities of theregistrant sold by the registrant during theperiod covered by the report that were notregistered under the Securities Act.

* * * * *12. By amending Form 10–QSB

(referenced in § 249.308b) by addingparagraph (c) to Item 2 of Part II priorto the Instruction to read as follows:

Note: Form 10–QSB does not and theseamendments will not appear in the Code ofFederal Regulations

Form 10–QSB

* * * * *

Part II

* * * * *Item 2. Changes in Securities.

* * * * *(c) Furnish the information required by

Item 701 of Regulation S–B (§ 228.701 of thischapter) as to all equity securities of theregistrant sold by the registrant during theperiod covered by the report that were notregistered under the Securities Act.

* * * * *13. By amending Form 10–K

(referenced in § 249.310) by revisingItem 5 of Part II as follows:


Form 10–K

* * * * *

Part II

* * * * *Item 5. Market for Registrant’s Common

Equity and Related Stockholder Matters.Furnish the information required by Item

201 of Regulation S–K (§ 229.201 of thischapter) and Item 701 of Regulation S–K(§ 229.701 of this chapter) as to all equitysecurities of the registrant sold by theregistrant during the period covered by thereport that were not registered under theSecurities Act; provided that information thathas previously been included in a QuarterlyReport on Form 10–Q or 10–QSB (§ 249.308aor 249.308b of this chapter) need not beprovided.

* * * * *


14. By amending Form 10–KSB(referenced in § 249.310b) by revisingItem 5 of Part II to read as follows:


Form 10–KSB

* * * * *

Part II

* * * * *Item 5. Market for Common Equity and

Related Stockholder Matters.Furnish the information required by Item

201 of Regulation S–B and Item 701 ofRegulation S–B as to all equity securities ofthe registrant sold by the registrant duringthe period covered by the report that werenot registered under the Securities Act;provided that information that has previouslybeen included in a Quarterly Report on Form10–Q or 10–QSB need not be provided.

* * * * *By the Commission.Dated: June 27, 1995.



1 17 CFR 230.901–904.2 15 U.S.C. 77a et seq.3 Securities Act Release No. 7189.

4 Securities Act Release No. 6863 (April 24, 1990)[55 FR 18306] (the ‘‘Adopting Release’’).

5 15 U.S.C. 77(e).6 See Rule 901. Whether a transaction occurs

outside the United States within the meaning ofRule 901 is a question of the facts and

circumstances of the transaction. See the AdoptingRelease at footnote 18 and accompanying text.

7 See Rules 903 and 904.8 See Preliminary Note 2 to Regulation S.9 See Rule 903. The issuer safe harbor

distinguishes three categories of securities offerings,based upon factors such as the nationality andreporting status of the issuer and the degree of U.S.market interest in the issuer’s securities. Under theissuer safe harbor, varying procedural safeguardsare imposed with the intent of having the securitiesoffered come to rest offshore.

10 See Rule 904.11 Section 5 of the Securities Act prohibits any

person, directly or indirectly, from usinginstrumentalities of interstate commerce or themails to offer or sell a security unless a registrationstatement has been filed or is in effect as to suchsecurity. Exemptions from the registrationprovisions are set forth in Sections 3 and 4 of thestatute, and the related rules promulgated under theSecurities Act. A person who offers or sells asecurity in reliance upon an exemption from theregistration requirements of Section 5 has the

Continued


17 CFR Part 231

[Release No. 33–7190; International SeriesNo. 821; File No. S7–20–95]

Problematic Practices UnderRegulation S

AGENCY: Securities and ExchangeCommission.ACTION: Interpretive Release; Request forComments.

SUMMARY: The Commission ispublishing its views concerningproblematic practices under RegulationS and is requesting comment as towhether Regulation S should beamended to limit its vulnerability toabuse. The Commission will study thecomments received in response to thisrelease and will determine whetherrulemaking or other action is necessaryor appropriate.DATES: This interpretation is effectiveJuly 10, 1995. Comments should bereceived on or before September 8,1995.ADDRESSES: Comment letters shouldrefer to File number S7–20–95 andshould be submitted in triplicate toJonathan G. Katz, Secretary, U.S.Securities and Exchange Commission,450 Fifth Street, N.W., Washington, D.C.20549. The Commission will make allcomments available for publicinspection and copying in its PublicReference Room at the same address.FOR FURTHER INFORMATION CONTACT: PaulDudek or Annemarie Tierney, (202)942–2990, Office of InternationalCorporate Finance, Division ofCorporation Finance, U.S. Securitiesand Exchange Commission,Washington, D.C. 20549.SUPPLEMENTARY INFORMATION: TheCommission is stating its views withrespect to certain problematic practicesin connection with offers and salesunder Regulation S,1 the safe harborunder the Securities Act of 1933 (the‘‘Securities Act’’) 2 for offshore offeringsor resales, and is requesting comment asto whether specific amendments toRegulation S are necessary to curtailRegulation S abuses.

In addition, in a companion release,3the Commission is publishing forcomment rule revisions that wouldeliminate certain impediments toregistered offerings of securities underthe Securities Act by streamlining

requirements with respect to financialstatements of significant acquisitions.Also in the companion release, rulerevisions are proposed that wouldrequire registrants to report on aquarterly basis recent sales of equitysecurities that have not been registeredunder the Securities Act.

I. IntroductionThe Commission adopted Regulation

S in April 1990 in order to clarify theextraterritorial application of theregistration requirements of theSecurities Act.4 Since adoption, anumber of problematic practices havedeveloped involving unregistered salesof equity securities of domesticreporting companies purportedly inreliance upon Regulation S. In thisrelease, the Commission states its viewsconcerning these problematic practicesand is requesting comment as towhether Regulation S also should beamended to impose additionalrestrictions on its use to impedeattempts to use the Regulation to evadethe registration requirements of theSecurities Act.

Commenters have suggested thatcompanies may be compelled to sellsecurities offshore, rather than inregistered transactions, because of theregistration disclosure requirementsrelating to significant acquisitions. In acompanion release, the Commission isproposing to streamline theserequirements to reduce regulatoryimpediments to the use of registeredofferings. Also, in response tocommenters’ suggestions that investorsneed information about private oroffshore placements of equity securitiesthat is not currently required to bedisclosed, the Commission is proposingto require quarterly reporting ofunregistered equity offerings.Commenters have suggested this publicreporting may also have the ancillarybenefit of deterring abuses of RegulationS. The Commission in this release issoliciting comment as to otherregulatory burdens that may causeissuers to resort to offshore offeringsrather than registered public offerings.

II. Interpretive Guidance on RegulationS Practices

Regulation S contains a generalstatement providing that Section 5 ofthe Securities Act 5 shall be deemed notto apply to offers or sales of securitiesthat occur outside the United States 6

and two non-exclusive safe harbors.7However, neither of the safe harbors northe general statement is available for atransaction or series of transactions that,although in technical compliance withthe regulation, is part of a plan orscheme to evade the registrationrequirements of the Securities Act.8

Preliminary Note 2 to Regulation Sstates that ‘‘* * * Regulation S is notavailable with respect to any transactionor series of transactions that, althoughin technical compliance with theserules, is part of a plan or scheme toevade the registration provisions of theAct. In such cases, registration underthe Act is required.’’ This releasepertains only to violations of Section 5in connection with Regulation Sofferings and does not address issuesdealing with the antifraud provisions ofthe federal securities laws.

The safe harbors provide specificguidance to issuers and other marketparticipants as to conditions underwhich a transaction will be deemed tooccur outside the United States. Onesafe harbor applies to offers and sales byissuers, underwriters and other personsinvolved in the distribution processpursuant to contract (defined as‘‘distributors’’) and any person acting onbehalf of the foregoing (the ‘‘issuer safeharbor’’).9 The other safe harbor appliesto resales by persons other than theissuer, distributors, their respectiveaffiliates (except certain officers anddirectors) and persons acting on behalfof the foregoing (the ‘‘resale safeharbor’’).10 An offer and sale ofsecurities that satisfies all conditions ofthe applicable safe harbor is deemed tobe outside the United States and thus isnot subject to the registrationrequirements of Section 5, provided thatit is not part of a plan or scheme toevade registration.11


burden of establishing the availability of theexemption. Securities & Exchange Commission v.Murphy, 626 F.2d 633, 645 (9th Cir. 1980). Suchexemptions are construed narrowly. Id. at 641.

12 In addition, a purported Regulation S offeringthat involves a distribution in the United Statesmay raise issues under Rule 10b–6 under theSecurities Exchange Act of 1934. See, e.g., R.A.Holman & Co., Inc. v. Securities & ExchangeCommission, 366 F.2d. 446, at 449, (2d Cir. 1966)(a distribution of securities is not deemed to becompleted until the securities come to rest in thehands of the investing public).

13 See Rule 144(d).14 Of course, some discounts may well be

warranted in order to compensate for the length ofthe restricted period, historic volatility of the stock,financial condition of the issuer, the dilutionrepresented by the newly issued shares, currentmarket condition, availability of currentinformation as to the issuer, information the issuermay have had that was disclosed to the purchaserbut not otherwise disclosed to the market, or otherfactors. Nevertheless, some discounts have been sounrelated to the economics of the transaction thatthe only justification that can be ascertained is thatthey are part of a parking or holding scheme wherethe offshore purchaser is simply being used as aconduit for what is in reality an onshore financing.

15 See Securities Act Release No. 7187, Part II.A,which addresses equity swaps and other likeinvestment strategies in different contexts.

Securities would not be deemed to have come torest abroad during the restricted period if thesecurities were pledged as collateral, either in amargin account or otherwise, where the expectationwas that the collateralization would shift thebenefits and burdens of ownership to the lender asopposed to the purchaser and the lender was notoffshore.

16 Since the market for the securities is in theUnited States, the short-selling or other hedgingtransaction occurs in the United States markets. Ifthe short-selling or other hedging transactionoccurred solely by or among parties offshore, andthe purchaser engaged in the transaction couldreasonably expect that the economic risk ofownership would remain abroad, then thetransaction could satisfy the requirements of therule if the other provisions of Regulation S weresatisfied.

17 Public resales in the United States by personsthat would be deemed underwriters under Section2(11) of the Securities Act [15 U.S.C. 77b(11)]would not be permissible without registration or anexemption from registration. Footnote 110 of theAdopting Release, which addresses the restrictedperiods, should not be read to provide otherwise.

Section 4(1) of the Securities Act [15 U.S.C.77d(1)] exempts ‘‘transactions by any person otherthan an issuer, underwriter, or dealer.’’ Section2(11) defines the term ‘‘underwriter’’ as:

Any person who has purchased from an issuerwith a view to, or offers or sells for an issuer inconnection with, the distribution of any security, orparticipates or has a direct or indirect participationin any such undertaking. . . . As used in thisparagraph the term ‘‘issuer’’ shall include, inaddition to an issuer, any person directly orindirectly controlling or controlled by the issuer, orany person under direct or indirect common controlwith the issuer.

Accordingly, any distributions by a statutory‘‘underwriter’’ must be registered pursuant toSection 5. United States v. Wolfson, 405 F.2d 779,782 (2d Cir. 1968), cert. denied, 394 U.S. 946(1969).

18 See, for example, United States v. Sung andFeher, Litigation Release No. 14500 (May 15, 1995);Securities and Exchange Commission v. Softpoint,Inc., et al., Litigation Release No. 14480 (April 27,1995).

19 See Ajhar, ‘‘Foreign Stock Sales: Don’t GetBlindsided,’’ Worth p. 37 (March 1994); TheCorporate Counsel, March-April 1995; E. Greene,‘‘Recent Problems Under Regulation S,’’ Insights

Since the adoption of Regulation S, ithas come to the Commission’s attentionthat some market participants areconducting placements of securitiespurportedly offshore under Regulation Sunder circumstances that indicate thatsuch securities are in essence beingplaced offshore temporarily to evaderegistration requirements with the resultthat the incidence of ownership of thesecurities never leaves the U.S. market,or that a substantial portion of theeconomic risk relating thereto is left inor is returned to the U.S. market duringthe restricted period, or that thetransaction is such that there was noreasonable expectation that thesecurities could be viewed as actuallycoming to rest abroad. Thesetransactions are the types of activitiesthat run afoul of Preliminary Note 2,would not be covered by the safeharbors and would be found not to bean offer and sale outside the UnitedStates for purposes of the generalstatement under Rule 901.12

The practices described belowgenerally have involved equitysecurities of U.S. companies whosesecurities are traded principally, andtypically solely, in the United States.

There have been a variety of schemesinvolving parking securities withoffshore affiliates of the issuer or adistributor. In these transactions,Regulation S is claimed as the basis tosell securities to offshore shell entitiesformed by the issuer or a distributor (or,in some cases, persons closelyassociated with the issuer or distributor)to purchase the securities. The entitieshold the securities for the restrictedperiod; at the end of that period,proceeds from the U.S. sale make theirway, directly or indirectly, to the issueror distributor. These transactions do notqualify for either the Regulation S safeharbor or the Rule 901 general statementsince they are nothing more than shamoffshore transactions structured to evadethe Securities Act registrationrequirements.

Troubling issues also have arisenunder the resale safe harbor provisionsof Rule 904. Rule 904 cannot be used forthe purpose of ‘‘washing off’’ resalerestrictions, such as the holding period

requirement for restricted securities inRule 144.13 Likewise, the restrictedstatus of securities is not affected by aprearranged transaction by or on behalfof the seller conducted offshore. If aperson with restricted securities soldthe securities in an offshore transactionand replaced them with a repurchase offungible unrestricted securities, thereplacement securities would be subjectto the same restrictions as thosereplaced.

As noted, the Commission hasbecome aware of a number of instanceswhere the total mix of factors raises theconcerns described above. These factors,any one of which may serve to indicatethat the economic or investment risknever shifted to the offshore purchaser,and that the securities—as a matter ofsubstance as opposed to form—neverleft the United States or remainedoffshore for less than the restrictedperiod, have included the use of: (i)non-recourse promissory notes (noteswhere the purchaser never is at risk inconnection with the purchase of thesecurities) for all or almost all of thepurchase price, where the expectation ofrepayment stems from the resale of thesecurities into the U.S. market, (ii)recourse notes where the entityproviding the notes is unknown to theseller of the securities or the entity hasno, or minimal, assets where, again, theexpectation of repayment stems fromthe resale of the securities into the U.S.market, (iii) fees paid to the purchaserof the securities to hold the securitiesfor the restricted period, whether paiddirectly or as more frequently seems tobe done through significant 14 discountsto the U.S. market price for the issuer’sstock, where the fees or discounts aresuch to indicate that the transaction wasintended to create a parking scheme orother scheme where the securities weremerely being held offshore to evade theregistration requirements, and (iv) shortselling and other hedging transactionssuch as option writing, equity swaps orother types of derivative transactions,15

where purchasers transfer the benefitsand burdens of ownership back to theUnited States market during therestricted period.16

In these cases it appears thetransaction is nothing more than adelayed sale by the seller in the UnitedStates, with the purported offshorepurchaser serving as a statutoryunderwriter.17

III. Request for CommentsIn addition to taking enforcement

action against those who seek to evadethe registration requirements of theSecurities Act under the color ofcompliance with Regulation S,18 theCommission is considering whether it isnecessary to amend the regulation todeter these abuses and requestscomment as to the need for revision ofRegulation S. A number of proposedrevisions have been suggested bycommentators.19 These suggestions are


(August 1994); ‘‘Rule Permitting Offshore StockSales Yields Deals that Spark SEC Concerns’’, WallStreet Journal, at C1, April 26, 1994.

20 Rule 903(c)(2).21 15 U.S.C. 78a et seq.22 Rule 903(c)(3).

23 The Commission has established the AdvisoryCommittee on the Capital Formation and RegulatoryProcesses (the ‘‘Advisory Committee’’), chaired byCommissioner Steven M.H. Wallman. The AdvisoryCommittee is considering fundamental issuesrelating to the regulatory framework governing thecapital formation process, including whether thecurrent system of registering securities offeringsshould be replaced with a company registrationsystem. The recommendations of the AdvisoryCommittee may result in rule proposals orlegislative recommendations that, if endorsed bythe Commission, ultimately may address thematters discussed in this release. Under some of thecompany registration models being considered bythe Advisory Committee, the need to draw legaldistinctions between securities issued by registeredcompanies in public offerings conducteddomestically and offshore would be significantlyreduced. All securities issued by companiesregistered with the Commission would be freelytradable in this country, regardless of the public orprivate, or domestic or offshore, nature of thatoffering.

being considered by the Commissionand comment is requested on each ofthe proposals that follow.Commentators’ proposals have generallyfocused on common stock placementsby domestic issuers. Is there acomparable need for such restrictions inthe case of foreign issuers’ equity forwhich the United States is the sole orprincipal market, or for any other classof securities?

1. Extend the Restricted Period.Currently, the restricted period underthe category 2 safe harbor 20 for offeringsof securities of domestic companies thatare reporting under the SecuritiesExchange Act of 1934 (the ‘‘ExchangeAct’’) 21 is 40 days. Some have suggestedextending the restricted period, forexample, to one year in the case ofequity securities of domestic issuers.One commentator has suggested thatsuch offerings should be subject to themore restrictive conditions of thecategory 3 safe harbor,22 which arecurrently generally applicable tooffshore offerings by non-reportingdomestic issuers. This would not onlyextend the restricted period to one yearbut also require legending of sharecertificates and an express agreement bythe purchaser to resell the securitiesonly in accordance with an availableexemption from registration.

2. Exclude certain discounted offersfrom the safe harbor. Another possiblerevision would be to limit use of thecategory 2 safe harbor by domesticissuers offering common stock to thoseofferings sold at the market price orwith a specified minimal discount.Those selling at a disqualifying discountcould proceed under Rule 901 if thefacts and circumstances established thatthe placement was truly an offshoreoffer and sale and not part of a plan orscheme to evade the registrationrequirements of the Securities Act.Alternatively, rather than exclude someor all discounted offerings from theissuer safe harbors, should instead alonger restricted period or all of thecategory 3 procedures apply todiscounted offers?

3. Restrict risk shifting transactionsduring the restricted period. Should thesafe harbor require selling restrictionsthat limit purchasers’ ability during therestricted period to sell short orotherwise take a short position withrespect to, or otherwise hedge the riskof holding common equity securities?

4. Prohibit payment with certain typesof non-recourse or other types ofpromissory notes where the expectationof repayment derives solely from theresale of securities. Should the category2 or 3 safe harbor be amended toprohibit (or limit through tolling of therestricted period) payment for commonequity securities with certain types ofnon-recourse or other types ofpromissory notes where the expectationof repayment derives solely (orprimarily) from the proceeds of resale ofthe securities?

IV. The Role of Regulation S inCompanies’ Capital Raising Plans

The Commission, when it adoptedRegulation S, understood and intendedthat legitimate offshore transactionswhereby the issuer intended that itssecurities would be sold and placedoffshore would be covered byRegulation S. Regulation S clarified andsimplified procedures for offshoreplacement of securities and wasintended to provide U.S. issuers with anefficient capital raising alternative. TheCommission understands, in part due toits participation in the Government-Business Forum on Small BusinessCapital Formation, that there are issuers,particularly those ineligible to use shelfregistration, that view offshore offeringsas an important financing alternative.The Commission is soliciting commentsas to the types of companies that areusing Regulation S, how are they usingit, and what mechanisms can be used toprevent abuse without unduly deterringlegitimate offshore capital raisingactivities.

Reportedly, many small businessissuers consider Regulation S offeringsan important financing tool. Is this dueto the increased pool of potentialinvestors, or to the process involved inaccomplishing a Regulation S offeringversus a registered offering, or both? TheCommission also recognizes that issuersmay be compelled to sell securitiesoffshore, rather than in registeredtransactions, because of registrationdisclosure requirements relating tosignificant acquisitions. As noted above,in a companion release, the Commissionis addressing this concern through ruleproposals to streamline these disclosurerequirements. The Commission isseeking comments as to what otherimpediments in the current system maylead to problematic Regulation Sofferings, and what commenters suggestshould be done to alleviate theseproblems so that resorting to

problematic Regulation S practices canbe eliminated.23

Further, the Commission requests thatcommenters address the benefits andcosts and other burdens to investors,issuers, and other market participantsthat would result from any of thesuggested changes to Regulation S notedin Section III above.

V. Cost-Benefit Analysis

The Commission requests views anddata relating to the costs and benefitsassociated with the proposals relating toadditional restrictions for offeringsunder Regulation S. It is expected thatsuch restrictions would not directlyimpose additional burdens oncompanies, although there may beindirect costs incurred by companies.

VI. Request for Comments

Any interested person wishing tosubmit written comments on any aspectof the amendments to forms and rulesthat are subject to this release arerequested to do so. Comments should besubmitted in triplicate to Jonathan G.Katz, Secretary, U.S. Securities andExchange Commission, 450 5th Street,NW., Washington, DC 20549 and shouldrefer to file number S7–20–95.


Securities.

Amendment of the Code of FederalRegulations

For the reasons set out in thepreamble, Title 17 Chapter II of theCode of Federal Regulations is amendedas set forth below:


PART 231—INTERPRETATIVERELEASES RELATING TO THESECURITIES ACT OF 1933 ANDGENERAL RULES AND REGULATIONSTHEREUNDER

Part 231 is amended by addingRelease No. 33–7190 and the releasedate of June 27, 1995 to the list ofinterpretive releases.



fede

ral r

egiste

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35667

MondayJuly 10, 1995

Part III

Department ofDefense48 CFR Part 219 and 252Defense Federal Acquisition RegulationSupplement; Comprehensive SmallBusiness Subcontracting Plans; TestProgram for Negotiation ofComprehensive Small BusinessSubcontracting Plans; Final Rule andNotice




Defense Federal AcquisitionRegulation Supplement;Comprehensive Small BusinessSubcontracting Plans

AGENCY: Department of Defense (DoD).ACTION: Final rule.

SUMMARY: The Director of DefenseProcurement has issued a final ruleamending the Defense FederalAcquisition Regulation Supplement(DFARS) to extend the time period forconducting a test program fornegotiation of comprehensive smallbusiness subcontracting plans.DATES: Effective Date: July 10, 1995.FOR FURTHER INFORMATION CONTACT: Ms.Amy Williams, Defense AcquisitionRegulations Directorate,PDUSD(A&T)DP(DAR), IMD 3D139,3062 Defense Pentagon, Washington, DC20301–3062, telephone (703) 602–0131.Please cite DFARS Case 95–D002 in allcorrespondence related to this issue.


A. BackgroundThis final DFARS rule implements

Section 7103 of the Federal AcquisitionStreamlining Act of 1994 (Pub. L. 103–355). Section 7103 amends Section 834of Public Law 101–189 by extending,through September 30, 1998, the testprogram for negotiation ofcomprehensive small businesssubcontracting plans.

B. Regulatory Flexibility ActThis final rule does not constitute a

significant revision within the meaning

of Public Law 98–577 and publicationfor public comment is not required.Therefore, the Regulatory Flexibility Actdoes not apply. However, commentsfrom small entities concerning theaffected DFARS subparts will beconsidered in accordance with Section610 of the Act. Please cite DFARS Case95–D002 in correspondence.

C. Paperwork Reduction ActThe Paperwork Reduction Act does

not apply because this final rule doesnot impose any new informationcollection requirements which requirethe approval of OMB under 44 U.S.C.3501, et seq.

List of Subjects in 48 CFR Parts 219 and252

Government procurement.Michele P. Peterson,Executive Editor, Defense AcquisitionRegulations Council.

Therefore, 48 CFR Parts 219 and 252are amended as follows:

PART 219—SMALL BUSINESS ANDSMALL DISADVANTAGED BUSINESSCONCERNS

1. The authority citation for 48 CFRParts 219 and 252 are revised to read asfollows:

Authority: 41 U.S.C. 421 and 48 CFRChapter 1.

2. Section 219.702 is amended byrevising paragraph (a) introductory textand paragraph (a)(i)(A)(1) to read asfollows:

219.702 Statutory requirements.(a) Section 834 of Pub. L. 101–189, as

amended by Section 7103 of Pub. L.103–355, requires the DoD to establish

a test program to determine whethercomprehensive subcontracting plans ona corporate, division, or plant-widebasis will increase subcontractingopportunities for small businessconcerns.

(i) * * *(A) * * *(1) From October 1, 1990, through

September 30, 1998;* * * * *

PART 252—SOLICITATIONPROVISIONS AND CONTRACTCLAUSES

3. Section 252.219–7004 is amendedby revising the clause date ‘‘(DEC1991)’’ to read ‘‘(JUL 1995)’’ and byrevising paragraph (b) to read as follows:

252.219–7004 Small business and smalldisadvantaged business subcontractingplan (test program).

* * * * *(b) The Offeror’s comprehensive small

business subcontracting plan and itssuccessors, which are authorized by andapproved under the test program ofSection 834 of Pub. L. 101–189, asamended by Section 7103 of Pub. L.103–355, shall be included in and madea part of the resultant contract. Uponexpulsion from the test program orexpiration of the test program, theContractor shall negotiate an individualsubcontracting plan for all futurecontracts that meet the requirements ofSection 211 of Pub. L. 95–507.* * * * *[FR Doc. 95–16719 Filed 7–7–95; 8:45 am]

BILLING CODE 5000–04–M



Test Program for Negotiation ofComprehensive Small BusinessSubcontracting Plans

AGENCY: Department of Defense (DoD).ACTION: Notice of test program.

SUMMARY: The Department of Defense isproposing to amend the Test Programfor Negotiation of Comprehensive SmallBusiness Subcontracting Plans.DATES: Comments on the test planshould be submitted in writing at theaddress shown below on or beforeSeptember 8, 1995 to be considered infinalization of the program.ADDRESSES: Interested parties shouldsubmit written comments to: Office ofSmall and Disadvantaged BusinessUtilization, ATTN: Ms. Susan Haley,USD (A&T) SADBU, 3000 DefensePentagon, Washington, DC 20301–3000.Telefax number (703) 693–7014.FOR FURTHER INFORMATION CONTACT:Ms. Susan Haley, (703) 697–9383.


A. BackgroundUnder Section 834 of Pub. L. 101–189,

as amended, the Department of Defense(DoD) established a test program todetermine whether the use ofcomprehensive small businesssubcontracting plans would result inincreased opportunities for small firmsperforming under Defense contracts.The initial test program covered a four-year period, beginning October 1, 1990.

The period of the test program hasbeen extended through September 30,1998, to implement Section 7103 of theFederal Acquisition Streamlining Act of1994 (Pub. L. 103–355).

With regard to eligibility criteria, therevised plan clarifies that therequirement for business concerns toannually receive $25 million or moreunder DoD contracts applies at thecorporate level. Eligibility criteria arefurther revised to require firms to haveachieved a small disadvantagedbusiness (SDB) subcontractingperformance rate of 5 percent or more inorder to participate, or to submit aspecial request for participation whichwould include a plan to achieve the 5percent participation rate. Allparticipants will be required to accept a5 percent or higher SDB goal and mustagree to comply with the provisions ofSection 215.605 of the Defense FederalAcquisition Regulation Supplementregarding evaluation of small business(SB)/SDB participation in sourceselections.

The revised plan reduces fromquarterly to annually the requirement

for the contracting officer (CO) to reviewthe progress of participating contractorstoward achievement of the SB, SDB andwomen-owned small business goals asagreed upon in the comprehensivesubcontracting plan. Submission ofsubcontracting reports (Standard Form(SF) 295) remains unchanged.

The test plan is also amended torecognize revisions related to women-owned small business.

The contracting activities under themilitary departments designated toparticipate remain unchanged. Defenseagencies may nominate to the Director,Office of Small and DisadvantagedBusiness Utilization, Office of the UnderSecretary of Defense (Acquisition andTechnology) a contracting activity toparticipate in this program.Susan Haley,Office of Small and Disadvantaged BusinessUtilization.

The revised test plan is as follows:

Test Program for Negotiation ofComprehensive Small BusinessSubcontracting Plans

I. PurposeThis document implements section

834 of Public Law 101–189, the NationalDefense Authorization Act for FiscalYears 1990 and 1991, as amended. Theprimary purpose of the Test Program(the Program) is to determine whetherthe negotiation and administration ofcomprehensive small businesssubcontracting plans will result inincreased opportunities for smallbusiness concerns performing underDepartment of Defense (DoD) contracts.

II. AuthorityThe Program is established pursuant

to section 834 of the National DefenseAuthorization Act for Fiscal Years 1990and 1991, as amended.

III. Program RequirementsA. The Program shall be conducted

from October 1, 1990, throughSeptember 30, 1998.

B. The selection of contractors forparticipation in the Program shall be inaccordance with section 834(b)(3). Largebusiness concerns at the major (total)corporate level that, during thepreceding fiscal year:

1. Pursuant to at least five Departmentof Defense (DoD) contracts, furnishedsupplies or services (includingprofessional services) to the DoD,engaged in research and developmentfor the Department, or performedconstruction for the Department; andwere paid $25,000,000 or more for suchcontract activities.

2. (a) Achieved a small disadvantagedbusiness (SDB) subcontracting

participation rate of five percent or moreduring the preceding fiscal year 1994; or

(b) Firms with an SDB subcontractingparticipation rate of less than fivepercent during the preceding fiscal year1994 may request through thedesignated contracting activity toparticipate under the ComprehensiveSubcontracting Test Program.Requesting firms shall submit a detailedplan with milestones leading toattainment of at least five percent SDBsubcontracting participation rate byfiscal year 1998. The provisions ofparagraph B(2) do not apply to the eightoriginal contractors accepted into theprogram.

3. Shall accept a SDB goal for eachfiscal year of not less than five percent,or a SDB goal that is in accordance withthe milestone established in paragraphB(2)(b) above.

4. Shall comply with the requirementsof the Defense Federal AcquisitionRegulation Supplement Subpart 215.605for source selection purposes.

C. For the purposes of the Program, tothe extent practicable, contractorsselected to participate shall establishtheir comprehensive subcontractingplans on the same corporate, division orplant-wide basis under which theysubmitted the Standard Form (SF) 295during the preceding fiscal year exceptthat in the case of a division or plantthat historically reported through ahigher level division, but would meetthe criteria under B(2) above, shall bepermitted to participate in the programif the division, plant or profit center candemonstrate a five percent or greatersubcontract performance level with SDBconcerns.

D. Contractors selected forparticipation shall:

1. Be eligible in accordance with III(B) and (C),

2. Have reported to the DoD on the SF295 for the last fiscal year, except asapplicable under III(C) above,

3. Offer a broad range ofsubcontracting opportunities,

4. Voluntarily agree to participate,and

5. Have at least one active contractthat requires a subcontracting plan atthe designated DoD buying activityresponsible for negotiating theComprehensive Subcontracting Plan.

IV. Elements of the ComprehensiveSmall Business Subcontracting Plan

A. The comprehensive small businesssubcontracting plan shall address eachof the eleven elements set forth inparagraph (d) of the clause at FAR52.219–9, ‘‘Small Business and SmallDisadvantaged Business SubcontractingPlan.’’


1. The subcontracting plan,percentage and corresponding dollargoals for awards to small business, smalldisadvantaged business and women-owned small business concerns shall bedeveloped by the contractor for itsentire business operation in support ofall DoD contracts regardless of dollarvalue.

2. Participating contractors shallinclude separate specific goals andtimetables for the awarding ofsubcontracts in two industry categorieswhich have not historically been madeavailable to small business, smalldisadvantaged business and women-owned small business. These industrycategories will be recommended by thecontractor and approved by thecontracting officer. Subcontract awardsmade in support of the specific industrycategories shall also count towardsattainment of the overall small business,small disadvantaged business andwomen-owned small business goals.

3. The subcontracting plan shall set-forth the prime contractor’s actions topublicize prospective subcontractopportunities for small business, smalldisadvantaged business and women-owned small business concerns.

B. Subcontracting plans to beestablished under the Program shall besubmitted each year by participatingcontractors to the designated contractingofficer 45 days prior to the end of theGovernment’s fiscal year (September30). However, new contractorsrequesting participation under theProgram shall submit subcontractingplans to the contracting officer as closeas possible to September 30.

V. Procedures

A. The Service Acquisition Executivewithin each Military Department andDefense Agency having contractors thatmeet the requirements of III(B) shalldesignate one contracting activity toparticipate in the Program.

B. The designated contracting activitywill accomplish the following:

1. With the coordination of theDirector, Office of Small andDisadvantaged Business Utilization fortheir military Department or DefenseAgency, select as many eligible primecontractors for participation under theProgram as deemed appropriate.

2. Establish a ‘‘Comprehensive SmallBusiness Subcontracting Plan’’negotiating team(s) composed asfollows:

a. A contracting officer(s) who will beresponsible for negotiation and approvalof the comprehensive subcontractingplan(s) as well as the responsibilities atFAR 19.705.

b. The contracting activity’s Smalland Disadvantaged Business UtilizationSpecialist.

c. The Small and DisadvantagedBusiness Utilization Specialist of thecognizant contract administrationactivity that administers thepreponderance of the selected primecontractor’s contracts and/or theappropriate individual who willadminister contractor performanceunder the test in accordance with FAR19.706 and the provisions herein.

d. Production specialist, price analystand other functional specialists asappropriate.

C. The designated contracting officershall:

1. Solicit proposed comprehensivesubcontracting plans from selectedcontractor(s) as soon as possible and byJuly 1, annually thereafter.

2. By October 1, and annuallythereafter, review, negotiate andapprove on behalf of the DoD acomprehensive subcontracting plan foreach selected contractor.

3. Distribute copies of the approvedsubcontracting plan in accordance withVI(A) below.

4. Upon negotiation and acceptance ofthe comprehensive subcontracting plan,the contracting officer shall obtain fromthe contractor:

a. A listing of all active DoD contractsthat contain individual subcontractingplans required by section 211 of PublicLaw 95–507.

b. The listing shall include thefollowing:

i. Contract number.ii. Name and address of the

contracting activity.iii. Contracting officer’s name and

phone number.5. Upon receipt of the information

provided by the participating contractorunder 4 above, the contracting officershall notify the designatedadministrative contracting officer toissue a comprehensive change order,which modifies all of the contractor’sactive DoD contracts that includesubcontracting plans. The modificationwill substitute the contractor’s approvedcomprehensive subcontracting plan forthe individual plans, will substitute theclause at DFARS 252.219–7004 for theclauses at FAR 52.219–9, and 52.219–16, respectively, and will delete theclauses at FAR 52.219–10 and DFARS252.219–7003 and 252.219–7005, asappropriate.

6. Review annually, with the contractadministration activity, contractor’sperformance under the plan. Documentthe review findings and distribute, inaccordance with VI(A), within 45 daysof the end of the fiscal year.

7. By November 15 of the year afteracceptance and annually thereafter,determine whether the contractor hasmet its comprehensive subcontractinggoals. If the goals have not been met,determine whether there is anyindication that the contractor failed tomake a good faith effort and takeappropriate action.

8. By December 15, 1998, prepare andsubmit a report on each participatingcontractor’s performance which detailsthe results of the Program. The reportmust compare the contractor’sperformance under the Program with itsperformance for the three fiscal yearsprior to acceptance into the program.The report distribution will be inaccordance with VI(A) below.

D. Participating contractors:1. To the extent practicable, shall

establish their comprehensivesubcontracting plans on the samecorporate, division or plant-wide basisunder which they submitted theStandard Form (SF) 295 during fiscalyear 1994, except those contractors thathistorically reported through a higherheadquarters however as a separatereporting profit center, plant or divisionthe contractor achieved an SDBsubcontracting performance rate of fivepercent or greater in fiscal year 1994.

2. Upon negotiation of an acceptablecomprehensive subcontracting planshall be exempt from individualcontract by contract reportingrequirements for DoD contracts unlessotherwise required in accordance with(III)(B)(5).

3. Shall continue individual contractreporting on non-DoD contracts.

4. Shall comply with the flow-downprovisions of section 211 of Public Law95–507. Large business concernsreceiving a DoD subcontract in excess of$500,000 ($1,000,000 for construction)are required to adopt a plan similar tothat mandated by the clause at 52.219–9. Participating contractors areprohibited from flowing down the‘‘Comprehensive’’ subcontractingdeviations provisions of 252.219–7004.Accordingly, large businesssubcontractors to the participatingcontractors shall be required to establishindividual subcontracting plans withspecific goals for awards to smallbusiness, small disadvantaged businessand women-owned small business.

5. Upon expulsion from the Programor Program termination on September30, 1998, shall negotiate and establishindividual subcontracting plans on allfuture DoD contracts that otherwisemeets the requirements of section 211 ofPublic Law 95–507.


VI. Monitoring and Reporting ofComprehensive Subcontracting Plansand Goals

A. Upon negotiation and acceptanceof comprehensive subcontracting plansand goals the designated activity shallimmediately forward one copy of theplan to each of the following:

1. Director, Small and DisadvantagedBusiness Utilization, Office of the UnderSecretary of Defense (Acquisition andTechnology), Room 2A338, ThePentagon, Washington, DC 20301–3061.

2. Director, Small and DisadvantagedBusiness Utilization, for the MilitaryDepartment or Defense Agency of theactivity that negotiated and accepted thecomprehensive subcontracting plan.

3. The cognizant contractadministration office.

B. Each participating contractor shallcomplete the Standard Form (SF) 295‘‘Summary Subcontract Report’’ inaccordance with the instructions on theback of the form on a quarterly basis,except as noted below:

1. Participating contractors shall beexempt from completing items 17 and18 under ‘‘Subcontract GoalAchievement.’’

2. Participating contractors shall enterin item 16 ‘‘Remarks’’ block the annualcorporate, division or plant-wide smallbusiness, small disadvantaged businessand women-owned small businesspercentage and corresponding dollargoals.

3. Participating contractors shall alsoenter separately in item 14 thepercentage and corresponding dollargoals for each of the two selectedindustry category (see section IV(A)(2)).

4. Participating contractors shall alsoenter separately in item 14 on aquarterly cumulative basis thepercentage and corresponding dollaramount of subcontract awards made ineach of the two selected industrycategories.

5. Participating contractors shall beexempt from the completion of SF 294‘‘Subcontract Report For IndividualContracts’’ for DoD contracts duringtheir participation in the Program.


fede

ral r

egiste

r

35673

MondayJuly 10, 1995

Part IV

Department of the TreasuryOffice of the Comptroller of the Currency12 CFR Part 30

Federal Reserve System12 CFR Parts 208 and 263

Federal Deposit InsuranceCorporation12 CFR Parts 303, 308, and 364

Department of the TreasuryOffice of Thrift Supervision12 CFR Part 570

Standards for Safety and Soundness andInteragency Guidelines EstablishingStandards for Safety and Soundness;Final Rule and Proposed Rule



Office of the Comptroller of theCurrency

12 CFR Part 30

[Docket No. 95–15]



[Docket No. R–0766]


12 CFR Parts 303, 308 and 364

RIN 3064–AB13


Office of Thrift Supervision

12 CFR Part 570

[No. 95–113]

RIN 1550–AA54

Standards for Safety and Soundness

AGENCIES: Office of the Comptroller ofthe Currency, Treasury; Board ofGovernors of the Federal ReserveSystem; Federal Deposit InsuranceCorporation; and Office of ThriftSupervision, Treasury.ACTION: Final rule.

SUMMARY: As required by section 132 ofthe Federal Deposit InsuranceCorporation Improvement Act of 1991(FDICIA), the Office of the Comptrollerof the Currency (OCC), the Board ofGovernors of the Federal ReserveSystem (Board of Governors), theFederal Deposit Insurance Corporation(FDIC), and the Office of ThriftSupervision (OTS) (collectively, theagencies) have adopted a final ruleestablishing deadlines for submissionand review of safety and soundnesscompliance plans. The agencies mayrequire compliance plans to be filed byan insured depository institution forfailure to meet the safety and soundnessstandards prescribed by guidelinepursuant to section 39 of the FederalDeposit Insurance Act (FDI Act). Inconjunction with this final rule, theagencies have adopted InteragencyGuidelines Establishing Standards forSafety and Soundness (Guidelines). TheGuidelines will appear as an appendixto each of the agencies’ final rule. Theagencies view the final rule andGuidelines as a realistic balancebetween the objectives of section 132 ofFDICIA and avoiding overlyburdensome regulation.

In November 1993, the agenciespublished in the Federal Register a jointnotice of proposed rulemakingprescribing standards for safety andsoundness, including standards for assetquality and earnings. The agencies areproposing revised asset quality andearnings standards. A documentrequesting comment on these standardsis published elsewhere in this separatepart of the Federal Register. Theagencies intend to add asset quality andearnings standards to the Guidelinesafter public comments are consideredand final standards are adopted.EFFECTIVE DATE: August 9, 1995.FOR FURTHER INFORMATION CONTACT:OCC: Emily R. McNaughton, NationalBank Examiner (202/874–5170), Officeof the Chief National Bank Examiner;David Thede, Senior Attorney (202/874–5210), Securities and CorporatePractices Division, Office of theComptroller of the Currency, 250 EStreet, SW., Washington, DC 20219.

Board of Governors: David Wright,Supervisory Financial Analyst (202/728–5854), Division of BankingSupervision and Regulation; Scott G.Alvarez, Associate General Counsel(202/452–3583), Gregory A. Baer,Managing Senior Counsel (202/452–3236), Legal Division, Board ofGovernors of the Federal ReserveSystem. For the hearing impaired only,Telecommunication Device for the Deaf(TDD), Dorothea Thompson (202/452–3544), Board of Governors of the FederalReserve System, 20th and C StreetsNW., Washington, DC 20551.

FDIC: Robert W. Walsh, Manager,Planning and Program Development(202/898–6911) or Michael D. Jenkins,Examination Specialist (202/898–6896),Division of Supervision; Lisa M.Stanley, Senior Counsel (202/898–7494)or Nancy L. Alper, Counsel (202/898–3720), Legal Division, Federal DepositInsurance Corporation, 550 17th StreetNW., Washington, DC 20429.

OTS: William Magrini, ProjectManager (202/906–5744), Policy Office,Cathern Smith, Regional Coordinator(202/906–6614), Regional Operations;Kevin Corcoran, Assistant Chief Counsel(202/906–6962), Teri M. Valocchi,Counsel (Banking and Finance) (202/906–7299), Chief Counsel’s Office,Office of Thrift Supervision, 1700 GStreet NW., Washington, DC 20552.


I. Background

A. Statutory Framework

Section 132 of the Federal DepositInsurance Corporation Improvement Actof 1991 (FDICIA), Pub. L. 102–242,

added a new section 39 to the FDI Act(12 U.S.C. 1831p–1) which requiredeach Federal banking agency toestablish by regulation certain safetyand soundness standards for the insureddepository institutions and depositoryinstitution holding companies for whichit was the primary Federal regulator.That portion of section 39 that addressescompensation was subsequentlyamended by section 956 of the Housingand Community Development Act of1992, Pub. L. 102–550.

On September 23, 1994, the RiegleCommunity Development andRegulatory Improvement Act of 1994(CDRI Act), Pub. L. 103–325, wasenacted. Section 318 of the CDRI Actfurther amended section 39 of the FDIAct: (1) To authorize the agencies toestablish safety and soundnessstandards by regulation or by guidelinefor all insured depository institutions;(2) to give the agencies greater flexibilityin prescribing asset quality and earningsstandards; and (3) to eliminate therequirement that standards prescribedunder section 39 apply to depositoryinstitution holding companies. Pursuantto section 318 of the CDRI Act, theseamendments have the same effectivedate as section 39 of the FDI Act, asprovided in section 132(c) of FDICIA.

Section 39(a) requires the agencies toestablish operational and managerialstandards relating to: (1) Internalcontrols, information systems andinternal audit systems, in accordancewith section 36 of the FDI Act (12 U.S.C.1831m); (2) loan documentation; (3)credit underwriting; (4) interest rateexposure; (5) asset growth; and (6)compensation, fees, and benefits, inaccordance with subsection (c) ofsection 39 of the FDI Act. Section 39(b)requires the agencies to establishstandards relating to asset quality,earnings, and stock valuation that theagencies determine to be appropriate.

Section 39(c) requires the agencies toestablish standards prohibiting as anunsafe and unsound practice anycompensatory arrangement that wouldprovide an executive officer, employee,director, or principal shareholder of theinstitution with excessivecompensation, fees or benefits and anycompensatory arrangement that couldlead to material financial loss to aninstitution. Section 39(c) also requiresthat the agencies establish standardsthat specify when compensation isexcessive. If an agency determines thatan institution fails to meet any standardestablished by regulation undersubsection (a) or (b) of section 39, theinstitution must submit to the agency anacceptable plan to achieve compliancewith the standard. Under the CDRI Act


amendment to section 39, if an agencydetermines that an institution fails tomeet any standard established byguideline under subsection (a) or (b) ofsection 39, the agency may require theinstitution to submit to the agency anacceptable plan to achieve compliancewith the standard.

Where an agency requires submissionof a plan to achieve compliance with thestandards, if the institution fails tosubmit an acceptable plan within thetime allowed by the agency or fails inany material respect to implement anaccepted plan, the agency must, byorder, require the institution to correctthe deficiency. The agency may, and insome cases must, take other supervisoryactions until the deficiency has beencorrected.

B. Agencies’ ProposalsOn July 15, 1992, the agencies

published a joint advance notice ofproposed rulemaking (ANPR) in theFederal Register, 57 FR 31336, for a 60-day comment period. The agenciesreceived over 400 comment letters inresponse to the ANPR, with some letterssubmitted to more than one agency.Commenters strongly recommended thatthe agencies propose general rather thanspecific standards in order to avoidregulatory micromanagement.

On November 18, 1993, the agenciespublished a joint notice of proposedrulemaking in the Federal Register, 59FR 60802, for a 45-day comment period.Based on comments received inresponse to the ANPR, the agenciesproposed general standards designed toidentify emerging safety and soundnessproblems in depository institutions.

II. The Final RuleAlthough section 39 of the FDI Act, as

amended by the CDRI Act, allows theagencies to establish safety andsoundness standards by regulation or byguideline, section 39(e) of the FDI Actcontinues to require the agencies toestablish deadlines for submission andreview of compliance plans byregulation. For this reason, although theagencies have established safety andsoundness standards by guideline, theagencies have established deadlines andprocedures for submission and reviewof compliance plans by regulation.

The agencies’ final rule adopts theprocedures proposed for submission ofcompliance plans and issuance oforders, except that, under the final rule,the agencies are authorized, rather thanrequired, to request a compliance planfor failure to satisfy the safety andsoundness standards set out in theGuidelines. The procedures for issuingorders in the final rule are modelled

after those adopted by the agencies forissuance of prompt corrective actiondirectives pursuant to section 38 of theFDI Act.

The agencies expect thatnoncompliance with the standardsadopted pursuant to section 39generally will be detected duringexaminations of institutions. Under thefinal rule, an institution must file acompliance plan within 30 days of arequest to do so from the institution’sprimary Federal regulator. An agencymay extend or shorten that time, ifnecessary. The agency then generallyhas 30 days to review the plan.

Several commenters requested anextension, from 30 days to 60 days ormore, of the time period within whichan institution must file a complianceplan after receiving a request from theagency to do so. The agencies’ proposalallowed the agencies to require that acompliance plan be filed within 30 daysor within a time period specified by theagencies. The agencies believe that thisprovision provides sufficient flexibilityto extend the time period whereappropriate or necessary. Accordingly,the agencies have decided not to extendthe time period within which aninstitution must generally file acompliance plan. Although section 39does not provide for any prior notice oradministrative review of an agencyorder, the agencies’ final rule providesfor prior notice of, and an opportunityto respond to, a proposed order.

A few commenters requested that theagencies extend from 14 to 60 days ormore the time period within which aninstitution must respond to the agency’snotice of intent to issue an orderrequiring the institution to correct asafety and soundness deficiency or totake or refrain from taking other actions.Under the agencies’ proposal, theagencies could determine that adifferent time period was appropriate inlight of the safety and soundness of theinstitution or other relevantconsiderations. The agencies havedecided to adopt the time period setforth in the proposal because theagencies believe that time period carriesout the purpose of section 39 tofacilitate early identification andcorrection of safety and soundnessdeficiencies.

A compliance plan may, with thepermission of the agency, be part of acapital restoration plan submittedpursuant to section 38 of the FDI Act(prompt corrective action) (12 U.S.C.1831p), a cease-and-desist order enteredinto pursuant to section 8 of the FDI Act(12 U.S.C. 1818), a formal or informalagreement, or a response to a report ofexamination.

In conjunction with this rulemaking,the FDIC has amended part 303 of itsregulations regarding delegations ofauthority to act on compliance plansunder section 39.

III. Interagency Guidelines EstablishingStandards for Safety and Soundness

The agencies have adoptedInteragency Guidelines EstablishingStandards for Safety and Soundness(Guidelines) pursuant to section 39 ofthe FDI Act. By adopting the standardsas guidelines, the agencies retain theauthority to require an institution tosubmit an acceptable compliance planas well as the flexibility to pursue othermore appropriate or effective courses ofaction given the specific circumstancesand severity of an institution’snoncompliance with one or morestandards. Failure to submit or adhere toa compliance plan will subject aninstitution to the sanctions undersection 39.

The agencies expect to request acompliance plan from an institutionwhose failure to meet one or more of thestandards is of such severity that itcould threaten the safe and soundoperation of the institution. Theagencies may elect to rely on an existingplan or enforcement action to ensurethat an institution achieves compliancewith the Guidelines, rather thanrequiring the submission of a separatesafety and soundness compliance plan.

The Guidelines set out the safety andsoundness standards that the agencieswill use to identify and addressproblems at institutions before capitalbecomes impaired. The agencies believethat the standards adopted in theGuidelines serve this end withoutdictating how institutions must bemanaged and operated. Adoption ofthese Guidelines is consistent with theoverwhelming majority of commenters’recommendations that the standardsestablished under section 39 be generaland flexible in nature. The agencieshave decided to use the flexibilityprovided by the CDRI Act to proposenew asset quality and earningsstandards which the agencies believeare more appropriate. Therefore, theagencies have not included thesestandards in the final Guidelines, butare seeking comment on these standardselsewhere in this separate part of theFederal Register. The agencies intend toadd revised asset quality and earningsstandards to the Guidelines aftercomments are considered and finalstandards are adopted.

A. Holding Company CoverageSection 318 of the CDRI Act

eliminates the requirement that the


standards established pursuant tosection 39 apply to depositoryinstitution holding companies. TheConference Report for the CDRI Actstates, ‘‘The Conferees intend theserequirements to apply only to thedepository institutions.’’ H.R. Conf. Rep.No. 652, 103rd Cong., 2d Sess. 175(1994). Accordingly, the Guidelines donot apply to holding companies.

B. Operational and ManagerialStandards

The agencies’ proposed operationaland managerial standards did notspecify each procedure an institutionmust have in place. Instead, theproposed standards established theobjectives that proper operations andmanagement oversight should achieve,while leaving the methods for achievingthose objectives to each institution. Theproposed standards represented thefundamental standards in use by theagencies to assess the operational andmanagerial quality of an institution. Thestandards did not represent a change inany of the agencies’ policies.

The majority of commenters believedthat the proposed standards weresufficiently flexible and general innature. Commenters generally viewedthe standards as a realistic balancebetween the mandates of section 39 andthe objective of avoiding overlyburdensome regulation. Manycommenters believed that the standardswould ensure that decision-makingresponsibility resides with managementof the institution.

A few commenters expressed concernthat the agencies’ examination processwould, in effect, require specificstandards, and they asked that morespecific guidance be provided toexaminers to ensure consistentinterpretation of the standards. Theagencies acknowledge the importance ofconsistent interpretation of theGuidelines and are considering issuingguidance to their examination staffs.

In response to the agencies’ proposals,many commenters recommended thatthe agencies adopt standards that wouldapply according to an institution’s assetsize. The agencies recognize thatsmaller, less complex institutions mayrequire less sophisticated systems andpractices. Therefore, the standards forinternal controls and informationsystems, internal audit systems, andcredit underwriting state that thesestandards must be appropriate to thesize of the institution and the natureand scope of its activities. In addition,the agencies’ standard for interest rateexposure states that an institution mustmanage its interest rate risk in a mannerappropriate to the size of the institution

and the complexity of its assets andliabilities.

The agencies specifically requestedcomment on whether the proposedstandards would require institutions tomodify their operations. While manycommenters encouraged the agencies toexempt certain institutions from thestandards based on asset size or capitalcategory, the majority of commentersdid not believe that the proposedstandards would require institutions tomodify their operations in order tocomply. The agencies believe that well-managed institutions generally shouldnot find it necessary to modify theiroperations in order to comply with theoperational and managerial standards inthe Guidelines.

The standards adopted by theagencies are based in large measureupon the standards proposed by theagencies. In determining whether aninstitution satisfies the standards, theagencies intend to consider aninstitution’s overall practices andperformance so that an institutionwould not fail one of the standards dueto an isolated error or inconsistency.

1. Compliance With Laws andRegulations

The agencies’ proposed standards forinternal controls and informationsystems, loan documentation, creditunderwriting, interest rate exposure andasset growth included a requirement forcompliance with laws and regulations.Several commenters believed that thisrequirement was redundant andunnecessary since all institutions mustcomply with applicable laws andregulations and violation of a law orregulation may subject an institution toappropriate supervisory andenforcement action. The agenciesbelieve that the express requirement toensure compliance with applicable lawsand regulations is a necessary standardfor internal controls and informationsystems, but agree that repeating therequirement in the other standards isunnecessary. Accordingly, therequirement to ensure compliance withapplicable laws and regulations hasbeen deleted from the standards for loandocumentation, credit underwriting,interest rate exposure and asset growth.

2. Internal Controls, InformationSystems, and Internal Audit Systems

The agencies’ proposed standards forinternal controls and informationsystems were designed to enable eachinstitution to comply by using controlsystems tailored to its individualoperating environment. The majority ofcommenters favored these standards.Some accounting and auditing firm

commenters recommended that theagencies incorporate into the standardsthe guidelines prepared by theCommittee of Sponsoring Organizations(COSO) of the Treadway Commission in‘‘Internal Control: An IntegratedFramework’’. The agencies believe thatthe proposed internal control standardsare consistent with the COSOframework for the structure of controlsystems. Therefore, using the COSOframework in developing and evaluatinga system of internal controls is one wayan institution could meet the standardsproposed by the agencies.

The agencies’ proposal addressedinternal audit systems separately.Internal audit systems are important tothe ongoing monitoring of theeffectiveness of the design andexecution of any system of internalcontrols. The proposal required eachinstitution to have an internal auditsystem that provided for adequatetesting and review of internal controlsand information systems among otherprovisions. Commenters criticized therequirement for an internal audit systembecause it seemed to imply that eithera full-time internal auditor and staff oroutside consultants would be necessaryto perform an internal audit. Severalcommenters believed that the costsinvolved could not be justified for manysmaller institutions.

The proposed audit standard did notexplicitly require an internal auditfunction. The agencies believe it ismanagement’s responsibility to considercarefully the level of audit activity thatwill provide effective monitoring of theinternal control system after taking intoaccount the audit system’s costs andbenefits. For many bankingorganizations that have reached acertain size or complexity of operations,the benefits derived from anindependent internal audit functionmore than outweigh its cost. However,for certain smaller institutions with fewemployees and less complex operations,the costs may outweigh these benefits.

Several commenters recommendedthat the agencies clarify how aninstitution, especially a small institutionwithout an internal auditor, can ensurethat its internal audit system providesfor the ‘‘independence and objectivity’’of those performing internal audits. Theagencies believe that this standard canbe met by ensuring that the personconducting the review, whether theauditor and/or another employee, isindependent from the function underreview and is able to report findingsdirectly to the board of directors or toa designated directors’ audit committee.The Guidelines adopted by the agenciesclarify the appropriate role of a system


1 The current regulation establishing detailed loandocumentation requirements at 12 CFR 563.170(c)remains in effect for all savings associationsregulated by the OTS.

2 The OTS regulation implementing section 305requires additional capital from institutions thathave ‘‘above normal’’ interest rate risk. See 58 FR45299 (August 31, 1993).

of independent reviews in an internalaudit system.

A few commenters noted that theproposed standard providing for‘‘verification and review of managementactions to address identifiedweaknesses’’ seemed unnecessarilybroad and potentially burdensome if thestandard was interpreted to mean thatevery weakness, including minor,technical weaknesses, had to bespecifically addressed by managementin a report to the board of directors. Toclarify this standard and to ensure thatmanagement’s attention is focused onareas of concern, the agencies havechanged ‘‘identified weaknesses’’ to‘‘material weaknesses’’.

The agencies are aware that manyinstitutions use data processing serviceorganizations to execute and recordtransactions, maintain related recordsand process related data. Thedetermination of whether aninstitution’s independent auditor needsto review a service organization’soperations, as they relate to theinstitution’s internal controls, should bemade in accordance with generallyaccepted auditing standards.

3. Loan Documentation

The agencies’ proposal specified whatan institution’s loan documentationpractices must enable the institution todo, instead of specifying an item-by-item listing of loan documentationrequirements.1 An overwhelmingmajority of commenters strongly favoredgeneral loan documentation standards.Commenters believed that the proposedstandards were sufficiently general toallow for different treatment accordingto loan type and amount.

In response to numerous comments,the agencies wish to emphasize that inevaluating an institution’s loandocumentation practices, they do notexpect an institution to obtain anopinion of legal counsel for the purposeof demonstrating that a claim against aborrower is legally enforceable. Rather,an institution must establish loandocumentation practices that providefor proper recording or perfection of thesecurity interest.

The Guidelines adopt the agencies’standards on loan documentation asproposed. The agencies believe that theloan documentation standards provide agauge against which compliance can bemeasured, while at the same timeallowing for differing approaches toloan documentation.

Under the Interagency PolicyStatement Regarding Documentation ofSmall and Medium-sized Business andFarm Loans, (March 30, 1993), well-managed, well- or adequatelycapitalized institutions are permitted toestablish a ‘‘basket’’ of small- andmedium-sized business and farm loansthat will not be subject to examinercriticism based on documentation. Theagencies’ Guidelines do not affect theapplication of this interagency policystatement.

4. Credit Underwriting

The agencies’ proposed standards forcredit underwriting established generalparameters of safe and sound creditunderwriting practices. Commentersoverwhelmingly favored general creditunderwriting standards rather than adetailed listing of requirements thatmust be met for each extension of credit.Based on the comments received, theagencies have adopted the creditunderwriting standards as proposed, inguideline form.

5. Interest Rate Exposure

The agencies proposed to require aninstitution to manage interest rate riskin a manner appropriate to the size ofthe institution and the complexity of itsassets and liabilities and to provide forperiodic reporting to management andthe board of directors regarding interestrate risk. A majority of commenterssupported this standard. Based on thesecomments, the agencies’ Guidelinesadopt this standard without change.

Section 305 of FDICIA requiresamendment of the agencies’ risk-basedcapital standards to take account ofinterest rate risk. The final regulationimplementing section 305 may requiresome institutions to quantify interestrate risk.2

6. Asset Growth

The agencies’ proposal required aninstitution to base its asset growth on aplan that fully considered the source ofthe institution’s growth, the riskspresented by such growth, and the effectof growth on the institution’s capital.Commenters overwhelmingly favoredthis approach rather than a quantitativelimit on asset growth which thecommenters believed would be overlyrestrictive and inconsistent with safetyand soundness. The agencies do notbelieve that asset growth necessarilycauses safety and soundness problems.The agencies, however, do find that

unplanned or poorly managed assetgrowth can be a cause for concern.

Based on the comments received, theagencies’ Guidelines adopt the assetgrowth standard as proposed. Theagencies will evaluate asset growthagainst an institution’s overall strategicplan for growth.

7. Compensation, Fees and BenefitsSection 39(a) requires the agencies to

establish operational and managerialstandards relating to compensation, feesand benefits. As noted in the agencies’proposal, this mandate isdistinguishable from that of section39(c), which requires the agencies toprohibit as an unsafe and unsoundpractice any compensation that isexcessive or that could lead to materialfinancial loss to an institution.

The agencies’ proposal required eachinstitution to maintain safeguards toprevent the payment of compensation,fees, or benefits that are excessive orthat could lead to material financialloss. A majority of commenterssupported the agencies’ proposed rules,although many commentersrecommended that the rules exempthealthy institutions from thecompensation standards.

Section 39 does not allow for anyexemptions from this standard.Moreover, the agencies do not believethat exemptions are necessary in view ofthe flexibility of this standard. For thesereasons and based on the commentsreceived, the agencies’ Guidelinesincorporate the proposed operationaland managerial standards relating tocompensation, fees and benefits withoutchange.

C. Standards Relating to StockValuation

The agencies believe that establishingstock valuation standards for publiclytraded institutions is not appropriate.As indicated in the agencies’ proposal,in the long run the market value of anorganization is dependent on aninstitution’s financial condition andperformance, but over shorter and moreoperationally relevant time horizons,market value is also affected by factorssuch as the attractiveness of financialinstitution stocks relative to othercompetitors and industries, theperformance of the general stock market,industry conditions and randomfluctuations. Therefore, over anypractical period of time, institutions donot have direct control over themarketplace’s evaluation of their stock’svalue. An additional consideration isthe appropriateness of applying astandard that affects only a subset ofbanking and thrift organizations and


could operate to discourage depositoryinstitutions from becoming publiclytraded. The agencies intend to continuetheir existing policy of augmenting theiroverall examinations and ongoingmonitoring of publicly-tradedinstitutions through the review of stockprice changes, market price to bookvalue ratios, bond ratings and otherindicators of the market’s assessment ofan institution’s performance. To theextent that an institution’s market tobook ratio appears to significantlycontradict the agencies’ assessment ofits condition, the agencies intend tocontinue to scrutinize carefully suchinstitutions for developing problems.

D. Prohibition on Compensation That isExcessive or That Could Lead toMaterial Financial Loss

Section 39(c) of the FDI Act, asamended by the CDRI Act, continues torequire the agencies to establishstandards (1) prohibiting as an unsafeand unsound practice the payment ofexcessive compensation orcompensation that could lead tomaterial financial loss to an institution;and (2) specifying when compensation,fees, or benefits are excessive.

The agencies’ joint proposal reliedupon the statutory language informulating the standards requiredunder section 39(c). Commentersstrongly supported the use of the factorsset forth in section 39(c) as the solestandard in defining excessivecompensation. Commenters believedthat more detailed standards wouldconstitute micro-management of aninstitution’s management practices.Accordingly, the agencies’ Guidelinesinclude the compensation standards asproposed.

In the Guidelines, as under theproposal, compensation is consideredexcessive if it is unreasonable ordisproportionate to the services actuallyperformed by the executive officer,employee, director, or principalshareholder being compensated. Inmaking that determination, the agencieswill consider all relevant factors,including those set out in section 39(c).

E. Effect on Agencies’ Existing AuthorityCompliance with the standards set out

in the Guidelines does not preclude theagencies from finding that an institutionis engaged in an unsafe and unsoundpractice or is in an unsafe and unsoundcondition. Conversely, failure to complywith the standards set out in theGuidelines does not necessarilyconstitute an unsafe or unsoundpractice or an unsafe and unsoundcondition, except for failure to complywith the standard prohibiting payment

of excessive compensation orcompensation that could lead tomaterial financial loss.

The agencies may take supervisoryaction against an institution that has notbeen requested to submit a safety andsoundness compliance plan. Inaddition, the agencies may requestsubmission of a compliance planwithout taking any other supervisory orenforcement action.

IV. Regulatory Flexibility ActThe agencies have concluded that the

final rule will not impose a significanteconomic hardship on smallinstitutions. The rule establishesdeadlines for submission and review ofcompliance plans requested by theagencies of any insured depositoryinstitution which fails to meet thestandards adopted by the agencies in theInteragency Guidelines EstablishingStandards for Safety and Soundness.The impact of the final rule on smallinstitutions should be proportionate toits impact on larger institutions.Accordingly, pursuant to section 605(b)of the Regulatory Flexibility Act, 5U.S.C. 605(b), the agencies herebycertify that the final rule will not havea significant economic impact on asubstantial number of small entities.

V. OCC and OTS: Unfunded MandatesReform Act of 1995 Statement

Section 202 of the UnfundedMandates Reform Act of 1995, Pub. L.104–4 (Unfunded Mandates Act) (signedinto law on March 22, 1995) requiresthat an agency prepare a budgetaryimpact statement before promulgating arule that includes a Federal mandatethat may result in expenditure by State,local, and tribal governments, in theaggregate, or by the private sector, of$100 million or more in any one year.If a budgetary impact statement isrequired, section 205 of the UnfundedMandates Act also requires an agency toidentify and consider a reasonablenumber of regulatory alternatives beforepromulgating a rule. As discussed in thepreamble, the final rule establishesdeadlines and procedures forsubmission and review of safety andsoundness plans and establishesstandards for safety and soundness, asprescribed by section 132 of the FederalDeposit Insurance CorporationImprovement Act of 1991, Pub. L. 102–242. The standards represent thefundamental standards in use by theagencies, represent no change in theagencies’ policies and impose minimalnew Federal requirements. Thus, noadditional costs to State, local or tribalgovernments or to the private sector of$100 million or more in any one year

result from this rule. Accordingly, theOCC and OTS have not prepared abudgetary impact statement norspecifically addressed any regulatoryalternatives.

VI. Effective DateThe agencies have determined that

pursuant to section 302 of the RiegleCommunity Development andRegulatory Improvement Act of 1994(CDRI), Pub. L. 104–4, there is goodcause for the final rule on safety andsoundness to be effective 30 days afterpublication in the Federal Register. Theimplementation of this final regulationhas been delayed because of changesrequired due to changes in the statute.CDRI amended 12 U.S.C. 1831p-1 toallow the agencies to implement thestandards for safety and soundness byguideline rather than regulation. Underthe guidelines the agencies may requirean institution that fails to meet thestandards to file a compliance plan.However, that action would be taken ona case-by-case basis after adequatenotice to the institution. Therefore, theagencies believe that further delay isunnecessary.

VII. Executive Order 12866The OCC and the OTS have

determined that this final rule is not a‘‘significant regulatory action’’ forpurposes of Executive Order 12866.

Text of Final Common RuleThe text of the agencies’ final

common rule appears below:

Appendix ll to Part ll—InteragencyGuidelines Establishing Standards for Safetyand Soundness

Table of Contents

I. IntroductionA. Preservation of existing authority.B. Definitions.

II. Operational and Managerial StandardsA. Internal controls and information

systems.B. Internal audit system.C. Loan documentation.D. Credit underwriting.E. Interest rate exposure.F. Asset growth.G. [Reserved].H. [Reserved].I. Compensation, fees and benefits.

III. Prohibition on Compensation ThatConstitutes an Unsafe and Unsound Practice

A. Excessive compensation.B. Compensation leading to material

financial loss.


1 Section 39 of the Federal Deposit Insurance Act(12 U.S.C. 1831p–1) was added by section 132 ofthe Federal Deposit Insurance CorporationImprovement Act of 1991 (FDICIA), Pub. L. 102–242, 105 Stat. 2236 (1991), and amended by section956 of the Housing and Community DevelopmentAct of 1992, Pub. L. 102–550, 106 Stat. 3895 (1992)and section 318 of the Riegle CommunityDevelopment and Regulatory Improvement Act of1994, Pub. L. 103–325, 108 Stat. 2160 (1994).

2 For the Office of the Comptroller of theCurrency, these regulations appear at 12 CFR Part30; for the Board of Governors of the FederalReserve System, these regulations appear at 12 CFRPart 263; for the Federal Deposit InsuranceCorporation, these regulations appear at 12 CFRPart 308, subpart R, and for the Office of Thrift

Supervision, these regulations appear at 12 CFRPart 570.

3 In applying these definitions for savingsassociations, pursuant to 12 U.S.C. 1464, savingsassociations shall use the terms ‘‘savingsassociation’’ and ‘‘insured savings association’’ inplace of the terms ‘‘member bank’’ and ‘‘insuredbank’’.

4 See footnote 3 in section I.B.4. of this appendix.5 See footnote 3 in section I.B.4. of this appendix.

I. Introduction

i. Section 39 of the Federal DepositInsurance Act 1 (FDI Act) requires eachFederal banking agency (collectively, theagencies) to establish certain safety andsoundness standards by regulation or byguideline for all insured depositoryinstitutions. Under section 39, the agenciesmust establish three types of standards: (1)Operational and managerial standards; (2)compensation standards; and (3) suchstandards relating to asset quality, earnings,and stock valuation as they determine to beappropriate.

ii. Section 39(a) requires the agencies toestablish operational and managerialstandards relating to: (1) Internal controls,information systems and internal auditsystems, in accordance with section 36 of theFDI Act (12 U.S.C. 1831m); (2) loandocumentation; (3) credit underwriting; (4)interest rate exposure; (5) asset growth; and(6) compensation, fees, and benefits, inaccordance with subsection (c) of section 39.Section 39(b) requires the agencies toestablish standards relating to asset quality,earnings, and stock valuation that theagencies determine to be appropriate.

iii. Section 39(c) requires the agencies toestablish standards prohibiting as an unsafeand unsound practice any compensatoryarrangement that would provide anyexecutive officer, employee, director, orprincipal shareholder of the institution withexcessive compensation, fees or benefits andany compensatory arrangement that couldlead to material financial loss to aninstitution. Section 39(c) also requires thatthe agencies establish standards that specifywhen compensation is excessive.

iv. If an agency determines that aninstitution fails to meet any standardestablished by guideline under subsection (a)or (b) of section 39, the agency may requirethe institution to submit to the agency anacceptable plan to achieve compliance withthe standard. In the event that an institutionfails to submit an acceptable plan within thetime allowed by the agency or fails in anymaterial respect to implement an acceptedplan, the agency must, by order, require theinstitution to correct the deficiency. Theagency may, and in some cases must, takeother supervisory actions until the deficiencyhas been corrected.

v. The agencies have adopted amendmentsto their rules and regulations to establishdeadlines for submission and review ofcompliance plans.2

vi. The following Guidelines set out thesafety and soundness standards that theagencies use to identify and addressproblems at insured depository institutionsbefore capital becomes impaired. Theagencies believe that the standards adoptedin these Guidelines serve this end withoutdictating how institutions must be managedand operated. These standards are designedto identify potential safety and soundnessconcerns and ensure that action is taken toaddress those concerns before they pose arisk to the deposit insurance funds.

A. Preservation of Existing AuthorityNeither section 39 nor these Guidelines in

any way limits the authority of the agenciesto address unsafe or unsound practices,violations of law, unsafe or unsoundconditions, or other practices. Action undersection 39 and these Guidelines may be takenindependently of, in conjunction with, or inaddition to any other enforcement actionavailable to the agencies. Nothing in theseGuidelines limits the authority of the FDICpursuant to section 38(i)(2)(F) of the FDI Act(12 U.S.C. 1831(o)) and Part 325 of Title 12of the Code of Federal Regulations.

B. Definitions1. In general. For purposes of these

Guidelines, except as modified in theGuidelines or unless the context otherwiserequires, the terms used have the samemeanings as set forth in sections 3 and 39 ofthe FDI Act (12 U.S.C. 1813 and 1831p–1).

2. Board of directors, in the case of a state-licensed insured branch of a foreign bank andin the case of a federal branch of a foreignbank, means the managing official in chargeof the insured foreign branch.

3. Compensation means all direct andindirect payments or benefits, both cash andnon-cash, granted to or for the benefit of anyexecutive officer, employee, director, orprincipal shareholder, including but notlimited to payments or benefits derived froman employment contract, compensation orbenefit agreement, fee arrangement,perquisite, stock option plan,postemployment benefit, or othercompensatory arrangement.

4. Director shall have the meaningdescribed in 12 CFR 215.2(c).3

5. Executive officer shall have the meaningdescribed in 12 CFR 215.2(d).4

6. Principal shareholder shall have themeaning described in 12 CFR 215.2(l).5

II. Operational and Managerial Standards

A. Internal controls and informationsystems. An institution should have internalcontrols and information systems that areappropriate to the size of the institution andthe nature, scope and risk of its activities andthat provide for:

1. An organizational structure thatestablishes clear lines of authority and

responsibility for monitoring adherence toestablished policies;

2. Effective risk assessment;3. Timely and accurate financial,

operational and regulatory reports;4. Adequate procedures to safeguard and

manage assets; and5. Compliance with applicable laws and

regulations.B. Internal audit system. An institution

should have an internal audit system that isappropriate to the size of the institution andthe nature and scope of its activities and thatprovides for:

1. Adequate monitoring of the system ofinternal controls through an internal auditfunction. For an institution whose size,complexity or scope of operations does notwarrant a full scale internal audit function,a system of independent reviews of keyinternal controls may be used;

2. Independence and objectivity;3. Qualified persons;4. Adequate testing and review of

information systems;5. Adequate documentation of tests and

findings and any corrective actions;6. Verification and review of management

actions to address material weaknesses; and7. Review by the institution’s audit

committee or board of directors of theeffectiveness of the internal audit systems.

C. Loan documentation. An institutionshould establish and maintain loandocumentation practices that:

1. Enable the institution to make aninformed lending decision and to assess risk,as necessary, on an ongoing basis;

2. Identify the purpose of a loan and thesource of repayment, and assess the ability ofthe borrower to repay the indebtedness in atimely manner;

3. Ensure that any claim against a borroweris legally enforceable;

4. Demonstrate appropriate administrationand monitoring of a loan; and

5. Take account of the size and complexityof a loan.

D. Credit underwriting. An institutionshould establish and maintain prudent creditunderwriting practices that:

1. Are commensurate with the types ofloans the institution will make and considerthe terms and conditions under which theywill be made;

2. Consider the nature of the markets inwhich loans will be made;

3. Provide for consideration, prior to creditcommitment, of the borrower’s overallfinancial condition and resources, thefinancial responsibility of any guarantor, thenature and value of any underlying collateral,and the borrower’s character and willingnessto repay as agreed;

4. Establish a system of independent,ongoing credit review and appropriatecommunication to management and to theboard of directors;

5. Take adequate account of concentrationof credit risk; and

6. Are appropriate to the size of theinstitution and the nature and scope of itsactivities.

E. Interest rate exposure. An institutionshould:

1. Manage interest rate risk in a mannerthat is appropriate to the size of the


institution and the complexity of its assetsand liabilities; and

2. Provide for periodic reporting tomanagement and the board of directorsregarding interest rate risk with adequateinformation for management and the board ofdirectors to assess the level of risk.

F. Asset growth. An institution’s assetgrowth should be prudent and consider:

1. The source, volatility and use of thefunds that support asset growth;

2. Any increase in credit risk or interestrate risk as a result of growth; and

3. The effect of growth on the institution’scapital.

G. [Reserved].H. [Reserved].I. Compensation, fees and benefits. An

institution should maintain safeguards toprevent the payment of compensation, fees,and benefits that are excessive or that couldlead to material financial loss to theinstitution.

III. Prohibition on Compensation ThatConstitutes an Unsafe and Unsound Practice

A. Excessive Compensation

Excessive compensation is prohibited as anunsafe and unsound practice. Compensationshall be considered excessive when amountspaid are unreasonable or disproportionate tothe services performed by an executiveofficer, employee, director, or principalshareholder, considering the following:

1. The combined value of all cash and non-cash benefits provided to the individual;

2. The compensation history of theindividual and other individuals withcomparable expertise at the institution;

3. The financial condition of theinstitution;

4. Comparable compensation practices atcomparable institutions, based upon suchfactors as asset size, geographic location, andthe complexity of the loan portfolio or otherassets;

5. For postemployment benefits, theprojected total cost and benefit to theinstitution;

6. Any connection between the individualand any fraudulent act or omission, breach oftrust or fiduciary duty, or insider abuse withregard to the institution; and

7. Any other factors the agenciesdetermines to be relevant.

B. Compensation Leading to MaterialFinancial Loss

Compensation that could lead to materialfinancial loss to an institution is prohibitedas an unsafe and unsound practice.

Adoption of Final Common RuleThe agency specific adoption of the

final common rule, which appears at theend of the common preamble, appearsbelow.

List of Subjects

OCC

12 CFR Part 30Administrative practice and

procedure, National banks, Reporting

and recordkeeping requirements, Safetyand soundness.

Board

12 CFR Part 208

Accounting, Agriculture, Banks,banking, Confidential businessinformation, Crime, Currency, FederalReserve System, Mortgages, Reportingand recordkeeping requirements, Safetyand soundness, Securities.

12 CFR Part 263

Administrative practice andprocedure, Claims, Crime, Equal Accessto justice, Federal Reserve System,Lawyers, Penalties.

FDIC

12 CFR Part 303

Administrative practice andprocedure, Authority delegations(Government agencies), Bank depositinsurance, Banks, banking, Reportingand recordkeeping requirements,Savings associations.

12 CFR Part 308

Administrative practice andprocedure, Claims, Crime, Equal accessto justice, Investigations, Lawyers,Penalties.

12 CFR Part 364

Administrative practice andprocedure, Bank deposit insurance,Banks, banking, Reporting andrecordkeeping requirements, Safety andsoundness.

OTS

12 CFR Part 570

Accounting, Administrative practicesand procedures, Bank depositinsurance, Holding companies,Reporting and recordkeepingrequirements, Savings associations,Safety and soundness.

OFFICE OF THE COMPTROLLER OFTHE CURRENCY

12 CFR Chapter I

Authority and Issuance

For the reasons set forth in thepreamble, chapter I of title 12 of theCode of Federal Regulations is amendedas follows:

1. A new part 30 is added to read asfollows:

PART 30—SAFETY AND SOUNDNESSSTANDARDS

Sec.30.1 Scope.30.2 Purpose.

30.3 Determination and notification offailure to meet safety and soundnessstandard and request for complianceplan.

30.4 Filing of safety and soundnesscompliance plan.

30.5 Issuance of orders to correctdeficiencies and to take or refrain fromtaking other actions.

30.6 Enforcement of orders.Authority: 12 U.S.C. 1831p–1.

§ 30.1 Scope.The rules and procedures set forth in

this part apply to national banks andfederal branches of foreign banks, thatare subject to the provisions of section39 of the Federal Deposit Insurance Act(section 39) (12 U.S.C. 1831p–1).

§ 30.2 Purpose.Section 39 of the FDI Act, 12 U.S.C.

1831p–1, requires the Office of theComptroller of the Currency (OCC) toestablish safety and soundnessstandards. Pursuant to section 39, abank may be required to submit acompliance plan if it is not incompliance with a safety and soundnessstandard prescribed by guideline undersection 39(a) or (b). An enforceableorder under section 8 of the FDI Act, 12U.S.C. 1818(b), may be issued if, afterbeing notified that it is in violation ofa safety and soundness standardprescribed under section 39, the bankfails to submit an acceptable complianceplan or fails in any material respect toimplement an accepted plan. This partestablishes procedures for requiringsubmission of a compliance plan andissuing an enforceable order pursuant tosection 39. The Interagency GuidelinesEstablishing Standards for Safety andSoundness are set forth in appendix Ato this part.

§ 30.3 Determination and notification offailure to meet safety and soundnessstandard and request for compliance plan.

(a) Determination. The OCC may,based upon an examination, inspection,or any other information that becomesavailable to the OCC, determine that abank has failed to satisfy the safety andsoundness standards contained in theInteragency Guidelines EstablishingStandards for Safety and Soundness setforth in Appendix A to this part.

(b) Request for compliance plan. If theOCC determines that a bank has faileda safety and soundness standardpursuant to paragraph (a) of this section,the OCC may request, by letter orthrough a report of examination, thesubmission of a compliance plan andthe bank shall be deemed to have noticeof the deficiency three days aftermailing of the letter by the OCC ordelivery of the report of examination.


§ 30.4 Filing of safety and soundnesscompliance plan.

(a) Schedule for filing complianceplan—(1) In general. A bank shall file awritten safety and soundnesscompliance plan with the OCC within30 days of receiving a request for acompliance plan pursuant to § 30.3(b)unless the OCC notifies the bank inwriting that the plan is to be filedwithin a different period.

(2) Other plans. If a bank is obligatedto file, or is currently operating under,a capital restoration plan submittedpursuant to section 38 of the FDI Act (12U.S.C. 1831o), a cease-and-desist orderentered into pursuant to section 8 of theFDI Act (12 U.S.C. 1818(b)), a formal orinformal agreement, or a response to areport of examination or report ofinspection, it may, with the permissionof the OCC, submit a compliance planunder this section as part of that plan,order, agreement, or response, subject tothe deadline provided in paragraph (a)of this section.

(b) Contents of plan. The complianceplan shall include a description of thesteps the bank will take to correct thedeficiency and the time within whichthose steps will be taken.

(c) Review of safety and soundnesscompliance plans. Within 30 days afterreceiving a safety and soundnesscompliance plan under this part, theOCC shall provide written notice to thebank of whether the plan has beenapproved or seek additional informationfrom the bank regarding the plan. TheOCC may extend the time within whichnotice regarding approval of a plan willbe provided.

(d) Failure to submit or implement acompliance plan—(1) Supervisoryactions. If a bank fails to submit anacceptable plan within the timespecified by the OCC or fails in anymaterial respect to implement acompliance plan, then the OCC shall, byorder, require the bank to correct thedeficiency and may take further actionsprovided in section 39(e)(2)(B).Pursuant to section 39(e)(3), the OCCmay be required to take certain actionsif the bank commenced operations orexperienced a change in control withinthe previous 24-month period, or thebank experienced extraordinary growthduring the previous 18-month period.

(2) Extraordinary growth. Forpurposes of paragraph (d)(1) of thissection, extraordinary growth means anincrease in assets of more than 7.5percent during any quarter within the18-month period preceding the issuanceof a request for submission of acompliance plan, by a bank that is notwell capitalized for purposes of section38 of the FDI Act. For purposes of

calculating an increase in assets, assetsacquired through merger or acquisitionapproved pursuant to the Bank MergerAct (12 U.S.C. 1828(c)) will beexcluded.

(e) Amendment of compliance plan. Abank that has filed an approvedcompliance plan may, after prior writtennotice to and approval by the OCC,amend the plan to reflect a change incircumstance. Until such time as aproposed amendment has beenapproved, the bank shall implement thecompliance plan as previouslyapproved.

§ 30.5 Issuance of orders to correctdeficiencies and to take or refrain fromtaking other actions.

(a) Notice of intent to issue order—(1)In general. The OCC shall provide abank prior written notice of the OCC’sintention to issue an order requiring thebank to correct a safety and soundnessdeficiency or to take or refrain fromtaking other actions pursuant to section39 of the FDI Act. The bank shall havesuch time to respond to a proposedorder as provided by the OCC underparagraph (c) of this section.

(2) Immediate issuance of final order.If the OCC finds it necessary in order tocarry out the purposes of section 39 ofthe FDI Act, the OCC may, withoutproviding the notice prescribed inparagraph (a)(1) of this section, issue anorder requiring a bank immediately totake actions to correct a safety andsoundness deficiency or take or refrainfrom taking other actions pursuant tosection 39. A bank that is subject tosuch an immediately effective ordermay submit a written appeal of theorder to the OCC. Such an appeal mustbe received by the OCC within 14calendar days of the issuance of theorder, unless the OCC permits a longerperiod. The OCC shall consider anysuch appeal, if filed in a timely matter,within 60 days of receiving the appeal.During such period of review, the ordershall remain in effect unless the OCC, inits sole discretion, stays theeffectiveness of the order.

(b) Content of notice. A notice ofintent to issue an order shall include:

(1) A statement of the safety andsoundness deficiency or deficienciesthat have been identified at the bank;

(2) A description of any restrictions,prohibitions, or affirmative actions thatthe OCC proposes to impose or require;

(3) The proposed date when suchrestrictions or prohibitions would beeffective or the proposed date forcompletion of any required action; and

(4) The date by which the banksubject to the order may file with theOCC a written response to the notice.

(c) Response to notice—(1) Time forresponse. A bank may file a writtenresponse to a notice of intent to issue anorder within the time period set by theOCC. Such a response must be receivedby the OCC within 14 calendar daysfrom the date of the notice unless theOCC determines that a different periodis appropriate in light of the safety andsoundness of the bank or other relevantcircumstances.

(2) Content of response. The responseshould include:

(i) An explanation why the actionproposed by the OCC is not anappropriate exercise of discretion undersection 39;

(ii) Any recommended modificationof the proposed order; and

(iii) Any other relevant information,mitigating circumstances,documentation, or other evidence insupport of the position of the bankregarding the proposed order.

(d) Agency consideration of response.After considering the response, the OCCmay:

(1) Issue the order as proposed or inmodified form;

(2) Determine not to issue the orderand so notify the bank; or

(3) Seek additional information orclarification of the response from thebank, or any other relevant source.

(e) Failure to file response. Failure bya bank to file with the OCC, within thespecified time period, a writtenresponse to a proposed order shallconstitute a waiver of the opportunity torespond and shall constitute consent tothe issuance of the order.

(f) Request for modification orrescission of order. Any bank that issubject to an order under this part may,upon a change in circumstances, requestin writing that the OCC reconsider theterms of the order, and may propose thatthe order be rescinded or modified.Unless otherwise ordered by the OCC,the order shall continue in place whilesuch request is pending before the OCC.

§ 30.6 Enforcement of orders.(a) Judicial remedies. Whenever a

bank fails to comply with an orderissued under section 39, the OCC mayseek enforcement of the order in theappropriate United States district courtpursuant to section 8(i)(1) of the FDIAct.

(b) Failure to comply with order.Pursuant to section 8(i)(2)(A) of the FDIAct, the OCC may assess a civil moneypenalty against any bank that violates orotherwise fails to comply with any finalorder issued under section 39 andagainst any institution-affiliated partywho participates in such violation ornoncompliance.


(c) Other enforcement action. Inaddition to the actions described inparagraphs (a) and (b) of this section,the OCC may seek enforcement of theprovisions of section 39 or this partthrough any other judicial oradministrative proceeding authorized bylaw.

2. A new appendix A is added to part30 as set forth at the end of the commonpreamble:

Appendix A to Part 30—InteragencyGuidelines Establishing Standards forSafety and Soundness

Dated: April 13, 1995.Eugene A. Ludwig,Comptroller of the Currency.


12 CFR Chapter II

For the reasons outlined in thepreamble, the Board hereby amends 12CFR parts 208 and 263 as set forthbelow:

PART 208—MEMBERSHIP OF STATEBANKING INSTITUTIONS IN THEFEDERAL RESERVE SYSTEM(REGULATION H)

1. The authority citation for 12 CFRPart 208 is revised to read as follows:

Authority: 12 U.S.C. 36, 248(a) and (c),321–338, 461, 481, 486, 601, and 611, 1814,1823(j), 1831o, 1831p–1, 3906, 3909, 3310,3331–3351; 15 U.S.C. 78b, 78o–4(c)(5), 78q,78q–1, 78w, 781(b), 781(i), and 1781(g).

2. A new subpart D, comprising§ 208.60, is added to part 208 to read asfollows:

Subpart D—Standards for Safety andSoundness

§ 208.60 Standards for safety andsoundness.

The Interagency GuidelinesEstablishing Standards for Safety andSoundness prescribed pursuant tosection 39 of the Federal DepositInsurance Act (12 U.S.C. 1831p–1), asset forth as appendix D to this partapply to all state member banks.

3. A new appendix D is added to part208 as set forth at the end of thecommon preamble:

Appendix D to Part 208—InteragencyGuidelines Establishing Standards forSafety and Soundness

PART 263—RULES OF PRACTICE FORHEARINGS

1. The authority citation for 12 CFRPart 263 is revised to read as follows:

Authority: 5 U.S.C. 504; 12 U.S.C. 248,324, 504, 505, 1817(j), 1818, 1828(c), 1831o,1831p–1, 1847(b), 1847(d), 1884(b),1972(2)(F), 3105, 3107, 3108, 3907, 3909; 15U.S.C. 21, 78o–4, 78o–5, and 78u–2.

2. A new subpart I, comprising§§ 263.300 through 263.305, is added topart 263 to read as follows:

Subpart I—Submission and Review ofSafety and Soundness CompliancePlans and Issuance of Orders ToCorrect Safety and SoundnessDeficiencies

Sec.263.300 Scope.263.301 Purpose.263.302 Determination and notification of

failure to meet safety and soundnessstandard and request for complianceplan.



263.305 Enforcement of orders.

Subpart I—Submission and Review ofSafety and Soundness CompliancePlans and Issuance of Orders ToCorrect Safety and SoundnessDeficiencies


this subpart apply to State memberbanks that are subject to the provisionsof section 39 of the Federal DepositInsurance Act (section 39) (12 U.S.C.1831p–1).

§ 263.301 Purpose.Section 39 of the FDI Act requires the

Board to establish safety and soundnessstandards. Pursuant to section 39, abank may be required to submit acompliance plan if it is not incompliance with a safety and soundnessstandard established by guideline undersection 39(a) or (b). An enforceableorder under section 8 may be issued if,after being notified that it is in violationof a safety and soundness standardestablished under section 39, the bankfails to submit an acceptable complianceplan or fails in any material respect toimplement an accepted plan. Thissubpart establishes procedures forrequiring submission of a complianceplan and issuing an enforceable orderpursuant to section 39.

§ 263.302 Determination and notification offailure to meet safety and soundnessstandard and request for compliance plan.

(a) Determination. The Board may,based upon an examination, inspection,or any other information that becomesavailable to the Board, determine that abank has failed to satisfy the safety and

soundness standards contained in theInteragency Guidelines EstablishingStandards for Safety and Soundness setout in appendix D to part 208 of thischapter.

(b) Request for compliance plan. If theBoard determines that a State memberbank has failed a safety and soundnessstandard pursuant to paragraph (a) ofthis section, the Board may request, byletter or through a report ofexamination, the submission of acompliance plan, and the bank shall bedeemed to have notice of the requestthree days after mailing of the letter bythe Board or delivery of the report ofexamination.


(a) Schedule for filing complianceplan—(1) In general. A State memberbank shall file a written safety andsoundness compliance plan with theBoard within 30 days of receiving arequest for a compliance plan pursuantto § 263.302(b), unless the Board notifiesthe bank in writing that the plan is tobe filed within a different period.

(2) Other plans. If a State memberbank is obligated to file, or is currentlyoperating under, a capital restorationplan submitted pursuant to section 38 ofthe FDI Act (12 U.S.C. 1831o), a cease-and-desist order entered into pursuantto section 8 of the FDI Act, a formal orinformal agreement, or a response to areport of examination or report ofinspection, it may, with the permissionof the Board, submit a compliance planunder this section as part of that plan,order, agreement, or response, subject tothe deadline provided in paragraph(a)(1) of this section.

(b) Contents of plan. The complianceplan shall include a description of thesteps the State member bank will taketo correct the deficiency and the timewithin which those steps will be taken.

(c) Review of safety and soundnesscompliance plans. Within 30 days afterreceiving a safety and soundnesscompliance plan under this subpart, theBoard shall provide written notice to thebank of whether the plan has beenapproved or seek additional informationfrom the bank regarding the plan. TheBoard may extend the time withinwhich notice regarding approval of aplan will be provided.

(d) Failure to submit or implement acompliance plan. (1) Supervisoryactions. If a State member bank fails tosubmit an acceptable plan within thetime specified by the Board or fails inany material respect to implement acompliance plan, then the Board shall,by order, require the bank to correct thedeficiency and may take further actions


provided in section 39(e)(2)(B).Pursuant to section 39(e)(3), the Boardmay be required to take certain actionsif the bank commenced operations orexperienced a change in control withinthe previous 24-month period, or thebank experienced extraordinary growthduring the previous 18-month period.

(2) Extraordinary growth. Forpurposes of paragraph (d)(1) of thissection, extraordinary growth means anincrease in assets of more than 7.5percent during any quarter within the18-month period preceding the issuanceof a request for submission of acompliance plan, by a bank that is notwell capitalized for purposes of section38 of the FDI Act. For purposes ofcalculating an increase in assets, assetsacquired through merger or acquisitionapproved pursuant to the Bank MergerAct (12 U.S.C. 1828(c)) will beexcluded.

(e) Amendment of compliance plan. AState member bank that has filed anapproved compliance plan may, afterprior written notice to and approval bythe Board, amend the plan to reflect achange in circumstance. Until such timeas a proposed amendment has beenapproved, the bank shall implement thecompliance plan as previouslyapproved.


(a) Notice of intent to issue order—(1)In general. The Board shall provide abank prior written notice of the Board’sintention to issue an order requiring thebank to correct a safety and soundnessdeficiency or to take or refrain fromtaking other actions pursuant to section39 of the FDI Act. The bank shall havesuch time to respond to a proposedorder as provided by the Board underparagraph (c) of this section.

(2) Immediate issuance of final order.If the Board finds it necessary in orderto carry out the purposes of section 39of the FDI Act, the Board may, withoutproviding the notice prescribed inparagraph (a)(1) of this section, issue anorder requiring a bank immediately totake actions to correct a safety andsoundness deficiency or take or refrainfrom taking other actions pursuant tosection 39. A State member bank that issubject to such an immediately effectiveorder may submit a written appeal ofthe order to the Board. Such an appealmust be received by the Board within 14calendar days of the issuance of theorder, unless the Board permits a longerperiod. The Board shall consider anysuch appeal, if filed in a timely matter,within 60 days of receiving the appeal.During such period of review, the order

shall remain in effect unless the Board,in its sole discretion, stays theeffectiveness of the order.

(b) Contents of notice. A notice ofintent to issue an order shall include:


(2) A description of any restrictions,prohibitions, or affirmative actions thatthe Board proposes to impose or require;


(4) The date by which the banksubject to the order may file with theBoard a written response to the notice.

(c) Response to notice—(1) Time forresponse. A bank may file a writtenresponse to a notice of intent to issue anorder within the time period set by theBoard. Such a response must bereceived by the Board within 14calendar days from the date of thenotice unless the Board determines thata different period is appropriate in lightof the safety and soundness of the bankor other relevant circumstances.

(2) Contents of response. Theresponse should include:

(i) An explanation why the actionproposed by the Board is not anappropriate exercise of discretion undersection 39;



(d) Agency consideration of response.After considering the response, theBoard may:




(e) Failure to file response. Failure bya bank to file with the Board, within thespecified time period, a writtenresponse to a proposed order shallconstitute a waiver of the opportunity torespond and shall constitute consent tothe issuance of the order.

(f) Request for modification orrescission of order. Any bank that issubject to an order under this subpartmay, upon a change in circumstances,request in writing that the Boardreconsider the terms of the order, andmay propose that the order be rescindedor modified. Unless otherwise orderedby the Board, the order shall continuein place while such request is pendingbefore the Board.


State member bank fails to comply withan order issued under section 39, theBoard may seek enforcement of theorder in the appropriate United Statesdistrict court pursuant to section 8(i)(1)of the FDI Act.

(b) Failure to comply with order.Pursuant to section 8(i)(2)(A) of the FDIAct, the Board may assess a civil moneypenalty against any State member bankthat violates or otherwise fails tocomply with any final order issuedunder section 39 and against anyinstitution-affiliated party whoparticipates in such violation ornoncompliance.

(c) Other enforcement action. Inaddition to the actions described inparagraphs (a) and (b) of this section,the Board may seek enforcement of theprovisions of section 39 or this partthrough any other judicial oradministrative proceeding authorized bylaw.

By Order of the Board of Governors of theFederal Reserve System, June 6, 1995.William W. Wiles,Secretary of the Board.


12 CFR Chapter IIIFor the reasons set forth in the

preamble, the Board of Directors of theFederal Deposit Insurance Corporationhereby amends chapter III of title 12 ofthe Code of Federal Regulations asfollows:

PART 303—APPLICATIONS,REQUESTS, SUBMITTALS,DELEGATIONS OF AUTHORITY, ANDNOTICES REQUIRED TO BE FILED BYSTATUTE OR REGULATION


Authority: 12 U.S.C. 378, 1813, 1815, 1816,1817(j), 1818, 1819 (Seventh and Tenth),1828, 1831e, 1831o, 1831p–1; 15 U.S.C. 1607.

2. In § 303.9, a new paragraph (o) isadded to read as follows:

§ 303.9 Delegation of authority to act oncertain enforcement matters.

* * * * *(o) Compliance plans under section

39 of the Act (standards for safety andsoundness) and part 308 of this chapter.(1) Authority is delegated to theDirector, and where confirmed inwriting by the Director, to an associatedirector, or to the appropriate regionaldirector or deputy regional director, toaccept, to reject, to require new or


revised compliance plans or to makeany other determinations with respect tothe implementation of compliance planspursuant to subpart R of part 308 of thischapter.

(2) Authority is delegated to theDirector, and where confirmed inwriting by the Director, to an associatedirector, to:

(i) Issue notices of intent to issue anorder requiring the bank to correct asafety and soundness deficiency or totake or refrain from taking other actionspursuant to section 39 of the Act (12U.S.C. 1831p–1) and in accordance withthe requirements contained in§ 308.304(a)(1) of this chapter;

(ii) Issue an order requiring the bankimmediately to correct a safety andsoundness deficiency or to take orrefrain from taking other actionspursuant to section 39 of the Act (12U.S.C. 1831p–1) and in accordance withthe requirements contained in§ 308.304(a)(2) of this chapter; and

(iii) Act on requests for modificationor rescission of an order.

(3) The authority delegated underparagraph (o)(1) of this section shall beexercised only upon the concurrentcertification by the Associate GeneralCounsel for Compliance andEnforcement, or in cases where aregional director or deputy regionaldirector accepts, rejects or requires newor revised compliance plans or makesany other determinations with respect tocompliance plans, by the appropriateregional counsel, that the action taken isnot inconsistent with the Act.

(4) The authority delegated underparagraph (o)(2) of this section shall beexercised only upon the concurrentcertification by the Associate GeneralCounsel for Compliance andEnforcement that the allegationscontained in the notice of intent, ifproven, constitute a basis for theissuance of a final order pursuant tosection 39 of the Act or that the issuanceof a final order is not inconsistent withsection 39 of the Act or that thestipulated section 39 order is notinconsistent with section 39 and is anorder which has become final forpurposes of enforcement pursuant to theAct.

PART 308—RULES OF PRACTICE ANDPROCEDURE


Authority: 5 U.S.C. 504, 554–557; 12U.S.C. 1815(e), 1817(a) and 1818(j), 1818,1828(j), 1829, 1831i, 1831o, 1831p–1; 15U.S.C. 78l(h), 78(m), 78n(a), 78n(c), 78n(d),78n(f), 78(o), 78o–4(c)(5), 78(p), 78(q), 78q–1, 78s.

4. A new subpart R, comprising§§ 308.300 through 308.305, is added topart 308 to read as follows:

Subpart R—Submission and Review ofSafety and Soundness Compliance Plans andIssuance of Orders To Correct Safety andSoundness DeficienciesSec.308.300 Scope.308.301 Purpose.308.302 Determination and notification of

failure to meet a safety and soundnessstandard and request for complianceplan.



308.305 Enforcement of orders.

Subpart R—Submission and Review ofSafety and Soundness CompliancePlans and Issuance of Orders ToCorrect Safety and SoundnessDeficiencies


this subpart apply to insured statenonmember banks and to state-licensedinsured branches of foreign banks, thatare subject to the provisions of section39 of the Federal Deposit Insurance Act(section 39) (12 U.S.C. 1831p–1).

§ 308.301 Purpose.Section 39 of the FDI Act requires the

FDIC to establish safety and soundnessstandards. Pursuant to section 39, abank may be required to submit acompliance plan if it is not incompliance with a safety and soundnessstandard established by guideline undersection 39(a) or (b). An enforceableorder under section 8 of the FDI Actmay be issued if, after being notifiedthat it is in violation of a safety andsoundness standard established undersection 39, the bank fails to submit anacceptable compliance plan or fails inany material respect to implement anaccepted plan. This subpart establishesprocedures for requiring submission ofa compliance plan and issuing anenforceable order pursuant to section39.

§ 308.302 Determination and notification offailure to meet a safety and soundnessstandard and request for compliance plan.

(a) Determination. The FDIC may,based upon an examination, inspection,or any other information that becomesavailable to the FDIC, determine that abank has failed to satisfy the safety andsoundness standards set out in part 364of this chapter and in the InteragencyGuidelines Establishing Standards forSafety and Soundness set forth inappendix A to part 364 of this chapter.

(b) Request for compliance plan. If theFDIC determines that a bank has faileda safety and soundness standardpursuant to paragraph (a) of this section,the FDIC may request, by letter orthrough a report of examination, thesubmission of a compliance plan andthe bank shall be deemed to have noticeof the request three days after mailing ofthe letter by the FDIC or delivery of thereport of examination.


(a) Schedule for filing complianceplan—(1) In general. A bank shall file awritten safety and soundnesscompliance plan with the FDIC within30 days of receiving a request for acompliance plan pursuant to§ 308.302(b), unless the FDIC notifiesthe bank in writing that the plan is tobe filed within a different period.

(2) Other plans. If a bank is obligatedto file, or is currently operating under,a capital restoration plan submittedpursuant to section 38 of the FDI Act (12U.S.C. 1831o), a cease-and-desist orderentered into pursuant to section 8 of theFDI Act, a formal or informal agreement,or a response to a report of examinationor report of inspection, it may, with thepermission of the FDIC, submit acompliance plan under this section aspart of that plan, order, agreement, orresponse, subject to the deadlineprovided in paragraph (a)(1) of thissection.

(b) Contents of plan. The complianceplan shall include a description of thesteps the bank will take to correct thedeficiency and the time within whichthose steps will be taken.

(c) Review of safety and soundnesscompliance plans. Within 30 days afterreceiving a safety and soundnesscompliance plan under this subpart, theFDIC shall provide written notice to thebank of whether the plan has beenapproved or seek additional informationfrom the bank regarding the plan. TheFDIC may extend the time within whichnotice regarding approval of a plan willbe provided.

(d) Failure to submit or implement acompliance plan—(1) Supervisoryactions. If a bank fails to submit anacceptable plan within the timespecified by the FDIC or fails in anymaterial respect to implement acompliance plan, then the FDIC shall,by order, require the bank to correct thedeficiency and may take further actionsprovided in section 39(e)(2)(B).Pursuant to section 39(e)(3), the FDICmay be required to take certain actionsif the bank commenced operations orexperienced a change in control withinthe previous 24-month period, or the


bank experienced extraordinary growthduring the previous 18-month period.

(2) Extraordinary growth. Forpurposes of paragraph (d)(1) of thissection, extraordinary growth means anincrease in assets of more than 7.5percent during any quarter within the18-month period preceding the issuanceof a request for submission of acompliance plan, by a bank that is notwell capitalized for purposes of section38 of the FDI Act. For purposes ofcalculating an increase in assets, assetsacquired through merger or acquisitionapproved pursuant to the Bank MergerAct (12 U.S.C. 1828(c)) will beexcluded.

(e) Amendment of compliance plan. Abank that has filed an approvedcompliance plan may, after prior writtennotice to and approval by the FDIC,amend the plan to reflect a change incircumstance. Until such time as aproposed amendment has beenapproved, the bank shall implement thecompliance plan as previouslyapproved.


(a) Notice of intent to issue order—.(1)In general. The FDIC shall provide abank prior written notice of the FDIC’sintention to issue an order requiring thebank to correct a safety and soundnessdeficiency or to take or refrain fromtaking other actions pursuant to section39 of the FDI Act. The bank shall havesuch time to respond to a proposedorder as provided by the FDIC underparagraph (c) of this section.

(2) Immediate issuance of final order.If the FDIC finds it necessary in orderto carry out the purposes of section 39of the FDI Act, the FDIC may, withoutproviding the notice prescribed inparagraph (a)(1) of this section, issue anorder requiring a bank immediately totake actions to correct a safety andsoundness deficiency or take or refrainfrom taking other actions pursuant tosection 39. A bank that is subject tosuch an immediately effective ordermay submit a written appeal of theorder to the FDIC. Such an appeal mustbe received by the FDIC within 14calendar days of the issuance of theorder, unless the FDIC permits a longerperiod. The FDIC shall consider anysuch appeal, if filed in a timely matter,within 60 days of receiving the appeal.During such period of review, the ordershall remain in effect unless the FDIC,in its sole discretion, stays theeffectiveness of the order.



(2) A description of any restrictions,prohibitions, or affirmative actions thatthe FDIC proposes to impose or require;


(4) The date by which the banksubject to the order may file with theFDIC a written response to the notice.

(c) Response to notice—(1) Time forresponse. A bank may file a writtenresponse to a notice of intent to issue anorder within the time period set by theFDIC. Such a response must be receivedby the FDIC within 14 calendar daysfrom the date of the notice unless theFDIC determines that a different periodis appropriate in light of the safety andsoundness of the bank or other relevantcircumstances.


(i) An explanation why the actionproposed by the FDIC is not anappropriate exercise of discretion undersection 39;



(d) Agency consideration of response.After considering the response, the FDICmay:




(e) Failure to file response. Failure bya bank to file with the FDIC, within thespecified time period, a writtenresponse to a proposed order shallconstitute a waiver of the opportunity torespond and shall constitute consent tothe issuance of the order.

(f) Request for modification orrescission of order. Any bank that issubject to an order under this subpartmay, upon a change in circumstances,request in writing that the FDICreconsider the terms of the order, andmay propose that the order be rescindedor modified. Unless otherwise orderedby the FDIC, the order shall continue inplace while such request is pendingbefore the FDIC.


bank fails to comply with an order

issued under section 39, the FDIC mayseek enforcement of the order in theappropriate United States district courtpursuant to section 8(i)(1) of the FDIAct.

(b) Failure to comply with order.Pursuant to section 8(i)(2)(A) of the FDIAct, the FDIC may assess a civil moneypenalty against any bank that violates orotherwise fails to comply with any finalorder issued under section 39 andagainst any institution-affiliated partywho participates in such violation ornoncompliance.

(c) Other enforcement action. Inaddition to the actions described inparagraphs (a) and (b) of this section,the FDIC may seek enforcement of theprovisions of section 39 or this partthrough any other judicial oradministrative proceeding authorized bylaw.


PART 364—STANDARDS FOR SAFETYAND SOUNDNESS

Sec.364.100 Purpose.364.101 Standards for safety and

soundness.Authority: 12 U.S.C. 1819(Tenth), 1831p–

1.

§ 364.100 Purpose.

Section 39 of the Federal DepositInsurance Act requires the FederalDeposit Insurance Corporation toestablish safety and soundnessstandards. Pursuant to section 39, thispart establishes safety and soundnessstandards by guideline.

§ 364.101 Standards for safety andsoundness.

The Interagency GuidelinesEstablishing Standards for Safety andSoundness prescribed pursuant tosection 39 of the Federal DepositInsurance Act (12 U.S.C. 1831p-1), as setforth as appendix A to this part applyto all insured state nonmember banksand to state-licensed insured branchesof foreign banks, that are subject to theprovisions of section 39 of the FederalDeposit Insurance Act.

6. A new appendix A is added to part364 as set forth at the end of thecommon preamble:


By order of the Board of Directors.Dated at Washington, DC, this 21st day of

March, 1995.


Federal Deposit Insurance Corporation.Robert E. Feldman,Deputy Executive Secretary.

OFFICE OF THRIFT SUPERVISION

12 CFR Chapter V

For the reasons set out in thepreamble, chapter V of title 12 of theCode of Federal Regulations is amendedas follows:


PART 570—SUBMISSION AND REVIEWOF SAFETY AND SOUNDNESSCOMPLIANCE PLANS AND ISSUANCEOF ORDERS TO CORRECT SAFETYAND SOUNDNESS DEFICIENCIES

Sec.570.1 Authority, purpose, scope and

preservation of existing authority.570.2 Determination and notification of

failure to meet safety and soundnessstandards and request for complianceplan.



570.5 Enforcement of orders.Authority: 12 U.S.C. 1831p–1.

§ 570.1 Authority, purpose, scope andpreservation of existing authority.

(a) Authority. This part and theGuidelines in Appendix A to this partare issued by the OTS pursuant tosection 39 (section 39) of the FederalDeposit Insurance Act (FDI Act) (12U.S.C. 1831p–1) as added by section 132of the Federal Deposit InsuranceCorporation Improvement Act of 1991(FDICIA) (Pub. L. 102–242, 105 Stat.2236 (1991)), and as amended by section956 of the Housing and CommunityDevelopment Act of 1992 (Pub. L. 102–550, 106 Stat. 3895 (1992)), and asamended by section 318 of theCommunity Development Banking Actof 1994 (Pub. L. 103–325, 108 Stat. 2160(1994)).

(b) Purpose. Section 39 of the FDI Actrequires the OTS to establish safety andsoundness standards. Pursuant tosection 39, a savings association may berequired to submit a compliance plan ifit is not in compliance with a safety andsoundness standard established byguideline under section 39 (a) or (b). Anenforceable order under section 8 of theFDI Act may be issued if, after beingnotified that it is in violation of a safetyand soundness standard prescribedunder section 39, the savingsassociation fails to submit an acceptablecompliance plan or fails in any materialrespect to implement an accepted plan.

This part establishes procedures forsubmission and review of safety andsoundness compliance plans and forissuance and review of orders pursuantto section 39. Interagency GuidelinesEstablishing Standards for Safety andSoundness pursuant to section 39 of theFDI Act are set forth in Appendix A tothis part.

(c) Scope. This part and theInteragency Guidelines EstablishingStandards for Safety and Soundness inAppendix A to this part implement theprovisions of section 39 of the FDI Actas they apply to savings associations.

(d) Preservation of existing authority.Neither section 39 of the FDI Act northis part in any way limits the authorityof the OTS under any other provision oflaw to take supervisory actions toaddress unsafe or unsound practices,violations of law, unsafe or unsoundconditions, or other practices. Actionunder section 39 and this part may betaken independently of, in conjunctionwith, or in addition to any otherenforcement action available to theOTS.

§ 570.2 Determination and notification offailure to meet safety and soundnessstandards and request for compliance plan.

(a) Determination of failure to meetsafety and soundness standard. TheOTS may, based upon an examination,inspection, or any other informationthat becomes available to the OTS,determine that a savings association hasfailed to satisfy the safety andsoundness standards contained in theInteragency Guidelines EstablishingStandards for Safety and Soundness asset forth in Appendix A to this part.

(b) Request for compliance plan. If theOTS determines that a savingsassociation has failed to meet a safetyand soundness standard pursuant toparagraph (a) of this section, the OTSmay request by letter or through a reportof examination, the submission of acompliance plan. The savingsassociation shall be deemed to havenotice of the request three days aftermailing or delivery of the letter or reportof examination by the OTS.


(a) Schedule for filing complianceplan—(1) In general. A savingsassociation shall file a written safetyand soundness compliance plan withthe OTS within 30 days of receiving arequest for a compliance plan pursuantto § 570.2(b), unless the OTS notifies thesavings association in writing that theplan is to be filed within a differentperiod.

(2) Other plans. If a savingsassociation is obligated to file, or is

currently operating under, a capitalrestoration plan submitted pursuant tosection 38 of the FDI Act (12 U.S.C.1831o), a cease-and-desist order enteredinto pursuant to section 8 of the FDIAct, a formal or informal agreement, ora response to a report of examination, itmay, with the permission of the OTS,submit a compliance plan under thissection as part of that plan, order,agreement, or response, subject to thedeadline provided in paragraph (a)(1) ofthis section.

(b) Contents of plan. The complianceplan shall include a description of thesteps the savings association will take tocorrect the deficiency and the timewithin which those steps will be taken.

(c) Review of safety and soundnesscompliance plans. Within 30 days afterreceiving a safety and soundnesscompliance plan under this subpart, theOTS shall provide written notice to thesavings association of whether the planhas been approved or seek additionalinformation from the savings associationregarding the plan. The OTS may extendthe time within which notice regardingapproval of a plan will be provided.

(d) Failure to submit or implement acompliance plan. If a savingsassociation fails to submit an acceptableplan within the time specified by theOTS or fails in any material respect toimplement a compliance plan, then theOTS shall, by order, require the savingsassociation to correct the deficiency andmay take further actions provided insection 39(e)(2)(B) of the FDI Act.Pursuant to section 39(e)(3), the OTSmay be required to take certain actionsif the savings association commencedoperations or experienced a change incontrol within the previous 24-monthperiod, or the savings associationexperienced extraordinary growthduring the previous 18-month period.

(e) Amendment of compliance plan. Asavings association that has filed anapproved compliance plan may, afterprior written notice to and approval bythe OTS, amend the plan to reflect achange in circumstance. Until such timeas a proposed amendment has beenapproved, the savings association shallimplement the compliance plan aspreviously approved.


(a) Notice of intent to issue order—(1)In general. The OTS shall provide asavings association prior written noticeof the OTS’s intention to issue an orderrequiring the savings association tocorrect a safety and soundnessdeficiency or to take or refrain fromtaking other actions pursuant to section


39 of the FDI Act. The savingsassociation shall have such time torespond to a proposed order as providedby the OTS under paragraph (c) of thissection.

(2) Immediate issuance of final order.If the OTS finds it necessary in order tocarry out the purposes of section 39 ofthe FDI Act, the OTS may, withoutproviding the notice prescribed inparagraph (a)(1) of this section, issue anorder requiring a savings associationimmediately to take actions to correct asafety and soundness deficiency or totake or refrain from taking other actionspursuant to section 39. A savingsassociation that is subject to such animmediately effective order may submita written appeal of the order to the OTS.Such an appeal must be received by theOTS within 14 calendar days of theissuance of the order, unless the OTSpermits a longer period. The OTS shallconsider any such appeal, if filed in atimely manner, within 60 days ofreceiving the appeal. During suchperiod of review, the order shall remainin effect unless the OTS, in its solediscretion, stays the effectiveness of theorder.


(1) A statement of the safety andsoundness deficiency or deficienciesthat have been identified at the savingsassociation;

(2) A description of any restrictions,prohibitions, or affirmative actions thatthe OTS proposes to impose or require;


(4) The date by which the savingsassociation subject to the order may filewith the OTS a written response to thenotice.

(c) Response to notice—(1) Time forresponse. A savings association may file

a written response to a notice of intentto issue an order within the time periodset by the OTS. Such a response mustbe received by the OTS within 14calendar days from the date of thenotice unless the OTS determines that adifferent period is appropriate in light ofthe safety and soundness of the savingsassociation or other relevantcircumstances.


(i) An explanation why the actionproposed by the OTS is not anappropriate exercise of discretion undersection 39 of the FDI Act;


(iii) Any other relevant information,mitigating circumstances,documentation, or other evidence insupport of the position of the savingsassociation regarding the proposedorder.

(d) OTS consideration of response.After considering the response, the OTSmay:


(2) Determine not to issue the orderand so notify the savings association; or

(3) Seek additional information orclarification of the response from thesavings association, or any otherrelevant source.

(e) Failure to file response. Failure bya savings association to file with theOTS, within the specified time period,a written response to a proposed ordershall constitute a waiver of theopportunity to respond and shallconstitute consent to the issuance of theorder.

(f) Request for modification orrescission of order. Any savingsassociation that is subject to an orderunder this subpart may, upon a changein circumstances, request in writing thatthe OTS reconsider the terms of the

order, and may propose that the orderbe rescinded or modified. Unlessotherwise ordered by the OTS, the ordershall continue in place while suchrequest is pending before the OTS.

§ 570.5 Enforcement of orders.

(a) Judicial remedies. Whenever asavings association fails to comply withan order issued under section 39 of theFDI Act, the OTS may seek enforcementof the order in the appropriate UnitedStates district court pursuant to section8(i)(1) of the FDI Act.

(b) Administrative remedies. Pursuantto section 8(i)(2)(A) of the FDI Act, theOTS may assess a civil money penaltyagainst any savings association thatviolates or otherwise fails to complywith any final order issued undersection 39 and against any savingsassociation-affiliated party whoparticipates in such violation ornoncompliance.

(c) Other enforcement action. Inaddition to the actions described inparagraphs (a) and (b) of this section,the OTS may seek enforcement of theprovisions of section 39 of the FDI Actor this part through any other judicial oradministrative proceeding authorized bylaw.

2. A new appendix A is added to part570 as set forth at the end of thecommon preamble:


Dated: May 25, 1995.By the Office of Thrift Supervision.

Jonathan L. Fiechter,Acting Director.[FR Doc. 95–16563 Filed 7–7–95; 8:45 am]BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P;6720–01–P



Office of the Comptroller of theCurrency

12 CFR Part 30

[Docket No. 95–15]


12 CFR Part 208

[Docket No. R–0766]


12 CFR Part 364

RIN 3064–AB13


Office of Thrift Supervision

12 CFR Part 570

[No. 95–114]

RIN 1550–AA54

Interagency Guidelines EstablishingStandards for Safety and Soundness

AGENCIES: Office of the Comptroller ofthe Currency, Treasury; Board ofGovernors of the Federal ReserveSystem; Federal Deposit InsuranceCorporation; and Office of ThriftSupervision, Treasury.ACTION: Proposed guidelines.

SUMMARY: The Office of the Comptrollerof the Currency (OCC), the Board ofGovernors of the Federal ReserveSystem (Board of Governors), theFederal Deposit Insurance Corporation(FDIC), and the Office of ThriftSupervision (OTS) (collectively, theagencies) are proposing asset qualityand earnings standards to be added tothe Interagency Guidelines EstablishingStandards for Safety and Soundness(Guidelines) adopted pursuant tosection 39 of the Federal DepositInsurance Act (FDI Act) and appearingas an appendix to each of the agencies’standard for safety and soundness finalrule published elsewhere in thisseparate part of the Federal Register.The agencies may require an insureddepository institution to file acompliance plan for failure to meetthese asset quality and earningsstandards when adopted in final form.DATES: Comments must be submitted byAugust 24, 1995.ADDRESSES: Interested parties areinvited to submit written comments toany or all of the agencies. All commentswill be shared among the agencies.

OCC: Communications Division, 250E Street, SW., Washington, DC 20219,attention: Docket No. 95–15. Commentswill be available for public inspectionand photocopying at the same locationon business days between 9 a.m. and 5p.m.

Board of Governors: Comments,which should refer to Docket No. R–0766, may be mailed to Mr. WilliamWiles, Secretary, Board of Governors ofthe Federal Reserve System, 20th Streetand Constitution Avenue, NW.,Washington, DC 20551. Commentsaddressed to Mr. Wiles may also bedelivered to the Board’s mail roombetween 8:45 a.m. and 5:15 p.m., and tothe security control room outside ofthose hours. Both the mail room andcontrol room are accessible from thecourtyard entrance on 20th Streetbetween Constitution Avenue and CStreet, NW. Comments may beinspected in room MP–500 between 9a.m. and 5 p.m., except as provided in§ 261.8 of the Board’s Rules RegardingAvailability of Information, 12 CFR261.8.

FDIC: Robert E. Feldman, ActingExecutive Secretary, Attention: Room F–402, Federal Deposit InsuranceCorporation, 550 17th Street, NW.,Washington, DC 20429. Comments maybe hand-delivered to room F–400, 1776F Street, NW., Washington, DC, onbusiness days between 8:30 a.m. and 5p.m. [FAX number (202) 898–3838];Internet E-mail comments @fdic.gov.Comments will be available forinspection and photocopying in room7118, 550 17th Street, NW., Washington,DC 20429, between 9 a.m. and 4:30 p.m.on business days.

OTS: Send comments to Chief,Dissemination Branch RecordsManagement and Information Policy,Office of Thrift Supervision, 1700 GStreet, NW., Washington, DC 20552,Attention Docket No. 95–114. Thesesubmissions may be hand delivered to1700 G Street, NW., from 9 a.m. to 5p.m. on business days; they may be sentby facsimile transmission to FAXnumber (202) 906–7755. Comments willbe available for inspection at 1700 GStreet, NW., from 1 p.m. until 4 p.m. onbusiness days.FOR FURTHER INFORMATION CONTACT:OCC: Emily R. McNaughton, NationalBank Examiner (202/874–5170), Officeof the Chief National Bank Examiner;David Thede, Senior Attorney, (202/874–5210) Securities and CorporatePractices Division, Office of theComptroller of the Currency, 250 EStreet, SW., Washington, DC 20219.

Board of Governors: David Wright,Supervisory Financial Analyst (202/

728–5854), Division of BankingSupervision and Regulation; Scott G.Alvarez, Associate General Counsel(202/452–3583), Gregory A. Baer,Managing Senior Counsel (202/452–3236), Legal Division, Board ofGovernors of the Federal ReserveSystem. For the hearing impaired only,Telecommunication Device for the Deaf(TDD), Dorothea Thompson (202/452–3544), Board of Governors of the FederalReserve System, 20th and C Streets,NW., Washington, DC 20551.

FDIC: Robert W. Walsh, Manager,Planning and Program Development(202/898–6911) or Michael D. Jenkins,Examination Specialist (202/898–6896),Division of Supervision; Lisa M.Stanley, Senior Counsel (202/898–7494), Legal Division, Federal DepositInsurance Corporation, 550 17th Street,NW., Washington, DC 20429.

OTS: William Magrini, ProjectManager (202/906–5744), CathernSmith, Regional Coordinator (202/906–6614), Supervision; Kevin Corcoran,Assistant Chief Counsel (202/906–6962),Teri M. Valocchi, Counsel (Banking andFinance) (202/906–7299), ChiefCounsel’s Office, Office of ThriftSupervision, 1700 G Street, NW.,Washington, DC 20552.


I. Background

A. Statutory FrameworkSection 132 of the Federal Deposit

Insurance Corporation Improvement Actof 1991 (FDICIA), added a new section39 to the FDI Act which required eachFederal banking agency to establish byregulation certain safety and soundnessstandards for the insured depositoryinstitutions and depository institutionholding companies for which it was theprimary Federal regulator. As enacted inFDICIA, section 39(b) of the FDI Actrequired the agencies to establishstandards by regulation specifying amaximum ratio of classified assets tocapital and minimum earningssufficient to absorb losses withoutimpairing capital.

On September 23, 1994 the RiegleCommunity Development andRegulatory Improvement Act of 1994(CDRI Act) was enacted. Section 318(a)of the CDRI Act eliminated therequirement that standards prescribedunder section 39 apply to depositoryinstitution holding companies andreplaced the requirement that theagencies establish quantitative assetquality and earnings standards with arequirement that the agencies establishstandards, by regulation or by guideline,relating to asset quality and earningsthat the agencies determine to be


1 For the OCC, these Guidelines appear asAppendix A to Part 30; for the Board of Governors,these Guidelines appear as Appendix D to Part 208;for the FDIC, these Guidelines appear as AppendixA to Part 364; and for the OTS, these Guidelinesappear as Appendix A to Part 570.

appropriate. Pursuant to section 318 ofthe CDRI Act, these amendments havethe same effective date as section 39 ofthe FDI Act, as provided in section132(c) of FDICIA.

B. Agencies’ ProposalsThe agencies published a joint

advance notice of proposed rulemakingin the Federal Register. 57 FR 31336(July 15, 1992). The agencies receivedover 400 comment letters in response tothe ANPR, with some letters submittedto more than one agency. The agencies’proposal requested comment on allaspects of the safety and soundnessstandards required to be prescribedpursuant to section 39 of the FDI Act,as enacted in FDICIA. Commentersstrongly recommended that the agenciesadopt general rather than specificstandards. The agencies published ajoint notice of proposed rulemaking inthe Federal Register on November 18,1993, 59 FR 60802. The agenciesproposed quantitative asset quality andearnings standards in accordance withthe statutory mandate set forth inFDICIA.

C. Final Rule and InteragencyGuidelines Establishing Standards forSafety and Soundness

Each of the agencies has adopted afinal rule (Final Rule) and InteragencyGuidelines Establishing Standards forSafety and Soundness (Guidelines). Theagencies’ Final Rule establishesdeadlines for submission and review ofsafety and soundness compliance planswhich may be required for failure tomeet one or more of the safety andsoundness standards adopted in theGuidelines. The agencies’ Final Ruleand Guidelines are published elsewherein this separate part of the FederalRegister. The Guidelines will appear asappendices to each of the agencies’Final Rule.1

If adopted in final form, the agenciesintend to incorporate these asset qualityand earnings standards into theGuidelines. Thus, if adopted in finalform, the agencies may requiresubmission of a compliance plan forfailure to meet the asset quality andearnings standards.

II. Request for Comment on ProposedAsset Quality and Earnings Standards

As enacted in FDICIA, section 39(b) ofthe FDI Act required the agencies toestablish standards specifying a

maximum ratio of classified assets tocapital and minimum earningssufficient to absorb losses withoutimpairing capital. As amended by theCDRI Act, section 39(b) no longerrequires the agencies to establishquantitative standards. Instead, theagencies are required to establish suchstandards relating to asset quality andearnings that the agencies determine tobe appropriate.

Although commenters generallyfound the agencies’ proposedquantitative standards acceptable, somecommenters criticized the proposedstandards as inflexible and simplistic.While the agencies believe that thestandards as proposed are acceptable,they also believe that morecomprehensive standards in these areas,as allowed under section 39(b), asamended, would be more useful andappropriate. Therefore, the agencies areproposing new standards for assetquality and earnings that emphasizemonitoring, reporting and preventive orcorrective action appropriate to the sizeof the institution and the nature andscope of its activities. These standardswould be adopted by guideline.

The agencies believe the proposedstandards are more likely to aid in theidentification and resolution ofemerging problems than settingminimum or maximum ratios. Theagencies intend to continue to performindependent analyses that may includeasset quality and earnings ratio analysisand will focus on an institution’soversight, reporting and correctiveactions in these areas. The agenciesbelieve that well-managed institutionsshould not find it necessary to modifytheir operations to comply with theproposed guidelines.

A. Standards Relating to Asset QualityThe agencies are proposing asset

quality standards requiring monitoringand reporting systems to identifyemerging problems and correctiveactions to resolve them. The standardsprovide for institutions to identifyproblem assets and estimate inherentlosses. Institutions would also berequired to: (1) Consider the size andpotential risks of materialconcentrations of credit risk, (2)compare the level of problem assets tothe level of capital and establishreserves sufficient to absorb anticipatedlosses on those and other assets, (3) takeappropriate corrective action to resolveproblem assets; and (4) provide periodicasset quality reports to the board ofdirectors to assess the level of asset risk.

The complexity and sophistication ofan institution’s monitoring, reportingsystems and corrective actions should

be commensurate with the size, natureand scope of the institution’soperations. The agencies believe that theproposed asset quality standards areconsistent with the practices of well-managed institutions and represent thelong-standing and establishedexpectations of the agencies.

B. Standards Relating to Earnings

The agencies are proposing earningsstandards requiring monitoring andreporting systems similar to thestandards for asset quality. Thestandards are intended to ensure promptremedial actions to enhance earlyidentification and resolution ofproblems. The standards requireinstitutions to compare their earningstrends, relative to equity, assets andother common benchmarks with theirhistorical experience and with theirpeers. The standards also provide thatinstitutions should: (1) evaluate theadequacy of earnings given theinstitution’s size, and complexity, andthe risk profile of the institution’s assetsand operations, (2) assess the source,volatility and sustainability of earnings,(3) evaluate the effect of nonrecurring orextraordinary income or expense, (4)take steps to ensure that earnings aresufficient to maintain adequate capitaland reserves after considering assetquality and the institution’s rate ofgrowth, and (5) provide periodic reportswith enough information formanagement and the board of directorsto assess earnings performance.

As with the asset quality standards,the institution’s monitoring, reportingsystems and corrective actions shouldbe commensurate with the size, natureand scope of the institution’soperations. Once again, the agenciesbelieve that these earnings standards areconsistent with the practices of well-managed institutions and represent thelong-standing and establishedexpectations of the agencies.

The agencies propose to add to theInteragency Guidelines EstablishingStandards for Safety and Soundnessstandards relating to asset quality andearnings as set forth below. Theagencies request comment on all aspectsof the proposed standards.


Pursuant to Section 605(b) of theRegulatory Flexibility Act, the agenciescertify that the proposal will not have asignificant economic impact on asubstantial number of small entities.Accordingly, a regulatory flexibilityanalysis is not required. This proposaladds asset quality and earningsstandards to the Interagency Guidelines


Establishing Standards for Safety andSoundness.

Executive Order 12866The OCC and the OTS have

determined that this proposal is not a‘‘significant regulatory action’’ forpurposes of Executive Order 12866.

The proposed new paragraphs G andH of Section II of the InteragencyGuidelines Establishing Standards forSafety and Soundness are as follows:

Asset Quality and Earnings StandardsG. Asset Quality. An insured

depository institution should establishand maintain a system to identifyproblem assets and preventdeterioration in those assets in a mannercommensurate with its size and thenature and scope of its operations. Theinstitution should:

1. Conduct periodic asset qualityreviews to identify problem assets andestimate the inherent losses in thoseassets;

2. Consider the size and potentialrisks of material asset concentrations;

3. Compare problem asset totals tocapital and establish reserves that aresufficient to absorb estimated losses;

4. Take appropriate corrective actionto resolve problem assets;

5. Provide periodic asset qualityreports with adequate information formanagement and the board of directorsto assess the level of asset quality risk.

H. Earnings. An insured depositoryinstitution should establish andmaintain a system to evaluate andmonitor earnings and ensure thatearnings are sufficient to maintainadequate capital and reserves in amanner commensurate with its size andthe nature and scope of its operations.The institution should:

1. Compare recent earnings trendsrelative to equity, assets or othercommonly used benchmarks to theinstitution’s historical results and thoseof its peers;

2. Evaluate the adequacy of earningsgiven the size, complexity and riskprofile of the institution’s assets andoperations;

3. Assess the source, volatility andsustainability of earnings;

4. Evaluate the effect of nonrecurringor extraordinary income or expense;

5. Take steps to ensure that earningsare sufficient to maintain adequate

capital and reserves after consideringthe institution’s asset quality andgrowth rate; and

6. Provide periodic earnings reportswith adequate information formanagement and the board of directorsto assess earnings performance.

Dated: April 13, 1995.

Eugene A. Ludwig,Comptroller of the Currency.

By Order of the Board of Governors of theFederal Reserve System, June 6, 1995.

William W. Wiles,Secretary of the Board.

By order of the Board of Directors.

Dated at Washington, D.C., this 21st day ofMarch, 1995.

Federal Deposit Insurance Corporation

Robert E. Feldman,Deputy Executive Secretary.

Dated: May 25, 1995.

By the Office of Thrift Supervision.Jonathan L. Fiechter,Acting Director.[FR Doc. 95–16564 Filed 7–7–95; 8:45 am]BILLING CODES: 4810–33–P; 6210–01–P; 6714–01–P;6720–01–P

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i

CFR PARTS AFFECTED DURING JULY

Vol. 60, No. 131


FEDERAL REGISTER PAGES AND DATES, JULY

34453–34842......................... 3

34843–35112......................... 535113–35320......................... 635321–35460......................... 735461–35690.........................10

3 CFR

Administrative Orders:Memorandums:June 29, 1995..................35113Presidential Determinations:No. 95–27 of June 23,

1995 .............................35461No. 95–28 of June 23,

1995 .............................35463No. 95–29 of June 28,

1995 .............................35465

4 CFR

28.....................................3511529.....................................35115

5 CFR

213...................................35119316...................................35119532...................................35467575...................................35601581...................................35468Proposed Rules:550...................................35342

7 CFR

956...................................34843958...................................344531955.................................344542812.................................34456Proposed Rules:1.......................................3447447.....................................34474319...................................34832

9 CFR

Proposed Rules:82.....................................35343145...................................35343147...................................35343

10 CFR

515...................................35321

11 CFR

100...................................35292106...................................35292109...................................35292114...................................35292

12 CFR

22.....................................3528630.....................................35674208.......................35286, 35674225...................................35120263...................................35674303...................................35674308...................................35674339...................................35286360...................................35487364...................................35674

563...................................35286570...................................35674614...................................35286760...................................35286Proposed Rules:20.....................................3490721.....................................3447628.....................................3490730.....................................3568834.....................................35353208.......................34481, 35688211...................................34481225...................................34481309...................................35148364...................................35688570...................................35688

14 CFR

39 ...........34844, 35322, 35323,35324, 35326, 35328, 35452

71 ...........34845, 35330, 35331,35332, 35333

Proposed Rules:234...................................35158

16 CFR

Proposed Rules:436...................................344851500.................................349221507.................................34922

17 CFR

30.....................................34458231...................................35663Proposed Rules:210...................................35656228 ..........35604, 35633, 35656229.......................35604, 35633230 .........35604, 35638, 35642,

35645, 35648232...................................35648239.......................35604, 35656240 ..........35604, 35633, 35642249 .........35604, 35633, 35642,

35656260...................................35642

18 CFR

Proposed Rules:284...................................35522

19 CFR

141 to 199 .......................35122

21 CFR

102...................................34459510...................................35122522.......................35122, 35123558...................................344601309.................................352641313.................................352641316.................................35264

ii Federal Register / Vol. 60, No. 131 / Monday, July 10, 1995 / Reader Aids

Proposed Rules:314...................................34486

23 CFR

645...................................34846

24 CFR

791...................................35123882...................................34660887...................................34660982...................................34660983...................................34660

25 CFR

Proposed Rules:Ch. I .................................34488

28 CFR

0.......................................35334

29 CFR

1960.................................34851Proposed Rules:2628.................................35308

30 CFR

Proposed Rules:944...................................35158948...................................34934

31 CFR

321...................................35126

34 CFR

200...................................34800201...................................34800203...................................34800205...................................34800212...................................34800263...................................35111

36 CFR

701...................................34852

37 CFR

Proposed Rules:201...................................35522202...................................35522

39 CFR

111...................................34854

40 CFR

9...........................34582, 35452

52 ............34856, 34859, 3486760.....................................3545270.....................................3533580.....................................3548881.........................34461, 3485990.....................................34582180 .........34868, 34869, 34871,

34874, 34876185...................................34876186...................................34876260...................................35452262...................................35452264...................................35452265...................................35452270...................................35452271...................................35452281...................................34879302...................................35492704...................................34462707...................................34462712.......................34462, 34879716.......................34462, 34879720...................................34462721...................................34462723...................................34462761...................................34462763...................................34462766...................................34462790...................................34462795...................................34462796...................................34462799...................................34462Proposed Rules:52 ...........34488, 34938, 35361,

35531, 3553563.....................................3493870 ............34488, 34493, 3553880.....................................34940140...................................34940180 ..........34943, 34945, 35365300...................................35160430...................................34938439...................................35367

42 CFR414...................................35492417...................................34885433...................................35498Proposed Rules:52b...................................35266405...................................35544

44 CFR65 ............34888, 34889, 3527667.....................................34891

Proposed Rules:67.....................................34947Proposed Rules:1160.................................35162

47 CFR

0...........................34901, 355031.......................................349022.......................................3550763.....................................3550773 ...........35338, 35339, 35340,

3551280.....................................3550790.....................................35507Proposed Rules:2.......................................3516615.....................................3516625.....................................3516632.....................................3554836.....................................3554864.....................................3536873 ...........34959, 35369, 35372,

3554887.....................................35166

48 CFR1 ..............34732, 34733, 347352 ..............34732, 34735, 347413...........................34732, 347414 ..............34732, 34735, 347415 ..............34732, 34735, 347416...........................34732, 347417...........................34732, 347358 ..............34732, 34735, 347419 ..............34732, 34735, 3474112.........................34732, 3473513.........................34732, 3474114.........................34732, 3473515 ............34732, 34735, 3474116 ............34732, 34735, 3474119 ............34732, 34735, 3474120 ............34732, 34735, 3474122.........................34732, 3474123.........................34732, 3474125 ............34732, 34735, 3474127.........................34732, 3474128 ............34732, 34735, 3474129.....................................3474132 ............34732, 34735, 3474133.....................................3473236 ............34732, 34735, 3474141.........................34732, 3474142.........................34732, 3474143.........................34732, 3474144.........................34732, 34741

45 ............34732, 34735, 3474146.........................34732, 3474147.........................34732, 3474149.........................34732, 3474152 ............34732, 34735, 3474153 ............34732, 34735, 34741204...................................34467215...................................34467217...................................34467219...................................35668225.......................34470, 34471243...................................34467252.......................34471, 35668Proposed Rules:32.....................................3545452.....................................35454206...................................34497207...................................34497225...................................34497

49 CFR

571...................................35126573...................................35458576...................................35458577...................................35458Proposed Rules:195...................................35549225...................................34498571.......................35169, 35373573...................................35459575...................................34961576...................................35459577...................................35459

50 CFR

301...................................34472630...................................35340644...................................35340645...................................35340650...................................35513651...................................35513653...................................35340663...................................34472669...................................35340672...................................35146675...................................34904677...................................34904678...................................35340Proposed Rules:17.....................................35374635...................................34965

iiiFederal Register / Vol. 60, No. 131/ Monday, July 10, 1995 / Reader Aids

CFR CHECKLIST

This checklist, prepared by the Office of the Federal Register, ispublished weekly. It is arranged in the order of CFR titles, stocknumbers, prices, and revision dates.An asterisk (*) precedes each entry that has been issued since lastweek and which is now available for sale at the Government PrintingOffice.A checklist of current CFR volumes comprising a complete CFR set,also appears in the latest issue of the LSA (List of CFR SectionsAffected), which is revised monthly.The annual rate for subscription to all revised volumes is $883.00domestic, $220.75 additional for foreign mailing.Mail orders to the Superintendent of Documents, Attn: New Orders,P.O. Box 371954, Pittsburgh, PA 15250–7954. All orders must beaccompanied by remittance (check, money order, GPO DepositAccount, VISA, or Master Card). Charge orders may be telephonedto the GPO Order Desk, Monday through Friday, at (202) 512–1800from 8:00 a.m. to 4:00 p.m. eastern time, or FAX your charge ordersto (202) 512-2233.Title Stock Number Price Revision Date

1, 2 (2 Reserved) ......... (869–026–00001–8) ...... $5.00 Jan. 1, 19953 (1994 Compilation

and Parts 100 and101) .......................... (869–026–00002–6) ...... 40.00 1 Jan. 1, 1995

4 .................................. (869–026–00003–4) ...... 5.50 Jan. 1, 19955 Parts:1–699 ........................... (869–026–00004–2) ...... 23.00 Jan. 1, 1995700–1199 ...................... (869–026–00005–1) ...... 20.00 Jan. 1, 19951200–End, 6 (6

Reserved) ................. (869–026–00006–9) ...... 23.00 Jan. 1, 19957 Parts:0–26 ............................. (869–026–00007–7) ...... 21.00 Jan. 1, 199527–45 ........................... (869–026–00008–5) ...... 14.00 Jan. 1, 199546–51 ........................... (869–026–00009–3) ...... 21.00 Jan. 1, 199552 ................................ (869–026–00010–7) ...... 30.00 Jan. 1, 199553–209 .......................... (869–026–00011–5) ...... 25.00 Jan. 1, 1995210–299 ........................ (869–026–00012–3) ...... 34.00 Jan. 1, 1995300–399 ........................ (869–026–00013–1) ...... 16.00 Jan. 1, 1995400–699 ........................ (869–026–00014–0) ...... 21.00 Jan. 1, 1995700–899 ........................ (869–026–00015–8) ...... 23.00 Jan. 1, 1995900–999 ........................ (869–026–00016–6) ...... 32.00 Jan. 1, 19951000–1059 .................... (869–026–00017–4) ...... 23.00 Jan. 1, 19951060–1119 .................... (869–026–00018–2) ...... 15.00 Jan. 1, 19951120–1199 .................... (869–026–00019–1) ...... 12.00 Jan. 1, 19951200–1499 .................... (869–026–00020–4) ...... 32.00 Jan. 1, 19951500–1899 .................... (869–026–00021–2) ...... 35.00 Jan. 1, 19951900–1939 .................... (869–026–00022–1) ...... 16.00 Jan. 1, 19951940–1949 .................... (869–026–00023–9) ...... 30.00 Jan. 1, 19951950–1999 .................... (869–026–00024–7) ...... 40.00 Jan. 1, 19952000–End ...................... (869–026–00025–5) ...... 14.00 Jan. 1, 1995

8 .................................. (869–026–00026–3) ...... 23.00 Jan. 1, 1995

9 Parts:1–199 ........................... (869–026–00027–1) ...... 30.00 Jan. 1, 1995200–End ....................... (869–026–00028–0) ...... 23.00 Jan. 1, 1995

10 Parts:0–50 ............................. (869–026–00029–8) ...... 30.00 Jan. 1, 199551–199 .......................... (869–026–00030–1) ...... 23.00 Jan. 1, 1995200–399 ........................ (869–026–00031–0) ...... 15.00 6Jan. 1, 1993400–499 ........................ (869–026–00032–8) ...... 21.00 Jan. 1, 1995500–End ....................... (869–026–00033–6) ...... 39.00 Jan. 1, 1995

11 ................................ (869–026–00034–4) ...... 14.00 Jan. 1, 1995

12 Parts:1–199 ........................... (869–026–00035–2) ...... 12.00 Jan. 1, 1995200–219 ........................ (869–026–00036–1) ...... 16.00 Jan. 1, 1995220–299 ........................ (869–026–00037–9) ...... 28.00 Jan. 1, 1995300–499 ........................ (869–026–00038–7) ...... 23.00 Jan. 1, 1995500–599 ........................ (869–026–00039–5) ...... 19.00 Jan. 1, 1995600–End ....................... (869–026–00040–9) ...... 35.00 Jan. 1, 1995

13 ................................ (869–026–00041–7) ...... 32.00 Jan. 1, 1995

Title Stock Number Price Revision Date

14 Parts:1–59 ............................. (869–026–00042–5) ...... 33.00 Jan. 1, 199560–139 .......................... (869–026–00043–3) ...... 27.00 Jan. 1, 1995140–199 ........................ (869–026–00044–1) ...... 13.00 Jan. 1, 1995200–1199 ...................... (869–026–00045–0) ...... 23.00 Jan. 1, 19951200–End ...................... (869–026–00046–8) ...... 16.00 Jan. 1, 1995

15 Parts:0–299 ........................... (869–026–00047–6) ...... 15.00 Jan. 1, 1995300–799 ........................ (869–026–00048–4) ...... 26.00 Jan. 1, 1995800–End ....................... (869–026–00049–2) ...... 21.00 Jan. 1, 1995

16 Parts:0–149 ........................... (869–026–00050–6) ...... 7.00 Jan. 1, 1995150–999 ........................ (869–026–00051–4) ...... 19.00 Jan. 1, 19951000–End ...................... (869–026–00052–2) ...... 25.00 Jan. 1, 1995

17 Parts:1–199 ........................... (869–022–00054–3) ...... 20.00 Apr. 1, 1994200–239 ........................ (869–022–00055–1) ...... 23.00 Apr. 1, 1994240–End ....................... (869–022–00056–0) ...... 30.00 Apr. 1, 1994

18 Parts:1–149 ........................... (869–026–00057–3) ...... 16.00 Apr. 1, 1995150–279 ........................ (869–026–00058–1) ...... 13.00 Apr. 1, 1995280–399 ........................ (869–026–00059–0) ...... 13.00 Apr. 1, 1995*400–End ...................... (869–026–00060–3) ...... 11.00 Apr. 1, 1995

19 Parts:1–140 ........................... (869–026–00061–1) ...... 25.00 April 1, 1995141–199 ........................ (869–026–00062–0) ...... 21.00 Apr. 1, 1995200–End ....................... (869–026–00063–8) ...... 12.00 Apr. 1, 1995

20 Parts:1–399 ........................... (869–026–00064–6) ...... 20.00 Apr. 1, 1995400–499 ........................ (869–022–00064–1) ...... 34.00 Apr. 1, 1994500–End ....................... (869–026–00066–2) ...... 34.00 Apr. 1, 1995

21 Parts:1–99 ............................. (869–022–00066–7) ...... 16.00 Apr. 1, 1994100–169 ........................ (869–022–00067–5) ...... 21.00 Apr. 1, 1994170–199 ........................ (869–026–00068–7) ...... 22.00 Apr. 1, 1995200–299 ........................ (869–026–00070–1) ...... 7.00 Apr. 1, 1995300–499 ........................ (869–026–00071–9) ...... 39.00 Apr. 1, 1995500–599 ........................ (869–022–00071–3) ...... 16.00 Apr. 1, 1994600–799 ........................ (869–022–00072–1) ...... 8.50 Apr. 1, 1994800–1299 ...................... (869–022–00073–0) ...... 22.00 Apr. 1, 19941300–End ...................... (869–026–00075–1) ...... 13.00 Apr. 1, 1995

22 Parts:1–299 ........................... (869–022–00075–6) ...... 32.00 Apr. 1, 1994300–End ....................... (869–026–00077–8) ...... 24.00 Apr. 1, 1995

23 ................................ (869–022–00077–2) ...... 21.00 Apr. 1, 1994

24 Parts:0–199 ........................... (869–022–00078–1) ...... 36.00 Apr. 1, 1994200–499 ........................ (869–022–00079–9) ...... 38.00 Apr. 1, 1994500–699 ........................ (869–022–00080–2) ...... 20.00 Apr. 1, 1994700–1699 ...................... (869–022–00081–1) ...... 39.00 Apr. 1, 19941700–End ...................... (869–026–00085–9) ...... 17.00 Apr. 1, 1995

25 ................................ (869–026–00086–7) ...... 32.00 Apr. 1, 1995

26 Parts:§§ 1.0-1–1.60 ................ (869–026–00087–5) ...... 21.00 Apr. 1, 1995§§ 1.61–1.169 ................ (869–026–00088–3) ...... 34.00 Apr. 1, 1995§§ 1.170–1.300 .............. (869–022–00086–1) ...... 24.00 Apr. 1, 1994§§ 1.301–1.400 .............. (869–022–00087–0) ...... 17.00 Apr. 1, 1994§§ 1.401–1.440 .............. (869–022–00088–8) ...... 30.00 Apr. 1, 1994§§ 1.441-1.500 .............. (869-022-00089-6) ...... 22.00 Apr. 1, 1994*§§ 1.501–1.640 ............ (869–026–00093–0) ...... 21.00 Apr. 1, 1995§§ 1.641–1.850 .............. (869–022–00091–8) ...... 24.00 Apr. 1, 1994§§ 1.851–1.907 .............. (869–022–00092–6) ...... 26.00 Apr. 1, 1994*§§ 1.908–1.1000 ........... (869–026–00096–4) ...... 27.00 Apr. 1, 1995§§ 1.1001–1.1400 .......... (869–022–00094–2) ...... 24.00 Apr. 1, 1994*§§ 1.1401–End ............. (869–026–00098–1) ...... 33.00 Apr. 1, 19952–29 ............................. (869–022–00096–9) ...... 24.00 Apr. 1, 1994*30–39 .......................... (869–026–00100–6) ...... 18.00 Apr. 1, 199540–49 ........................... (869–022–00098–4) ...... 14.00 Apr. 1, 199450–299 .......................... (869–026–00102–2) ...... 14.00 Apr. 1, 1995300–499 ........................ (869–022–00100–1) ...... 24.00 Apr. 1, 1994

iv Federal Register / Vol. 60, No. 131/ Monday, July 10, 1995 / Reader Aids


500–599 ........................ (869–026–00104–9) ...... 6.00 4 Apr. 1, 1990600–End ....................... (869–022–00102–7) ...... 8.00 Apr. 1, 1994

27 Parts:1–199 ........................... (869–022–00103–5) ...... 36.00 Apr. 1, 1994200–End ....................... (869–026–00107–3) ...... 13.00 8Apr. 1, 1994

28 Parts: .....................1-42 ............................. (869–022–00105–1) ...... 27.00 July 1, 199443-end ......................... (869-022-00106-0) ...... 21.00 July 1, 1994

29 Parts:0–99 ............................. (869–022–00107–8) ...... 21.00 July 1, 1994100–499 ........................ (869–022–00108–6) ...... 9.50 July 1, 1994500–899 ........................ (869–022–00109–4) ...... 35.00 July 1, 1994900–1899 ...................... (869–022–00110–8) ...... 17.00 July 1, 19941900–1910 (§§ 1901.1 to

1910.999) .................. (869–022–00111–6) ...... 33.00 July 1, 19941910 (§§ 1910.1000 to

end) ......................... (869–022–00112–4) ...... 21.00 July 1, 19941911–1925 .................... (869–022–00113–2) ...... 26.00 July 1, 19941926 ............................. (869–022–00114–1) ...... 33.00 July 1, 19941927–End ...................... (869–022–00115–9) ...... 36.00 July 1, 1994

30 Parts:1–199 ........................... (869–022–00116–7) ...... 27.00 July 1, 1994200–699 ........................ (869–022–00117–5) ...... 19.00 July 1, 1994700–End ....................... (869–022–00118–3) ...... 27.00 July 1, 1994

31 Parts:0–199 ........................... (869–022–00119–1) ...... 18.00 July 1, 1994200–End ....................... (869–022–00120–5) ...... 30.00 July 1, 199432 Parts:1–39, Vol. I .......................................................... 15.00 2 July 1, 19841–39, Vol. II ......................................................... 19.00 2 July 1, 19841–39, Vol. III ........................................................ 18.00 2 July 1, 19841–190 ........................... (869–022–00121–3) ...... 31.00 July 1, 1994191–399 ........................ (869–022–00122–1) ...... 36.00 July 1, 1994400–629 ........................ (869–022–00123–0) ...... 26.00 July 1, 1994630–699 ........................ (869–022–00124–8) ...... 14.00 5 July 1, 1991700–799 ........................ (869–022–00125–6) ...... 21.00 July 1, 1994800–End ....................... (869–022–00126–4) ...... 22.00 July 1, 1994



35 ................................ (869–022–00133–7) ...... 12.00 July 1, 1994

36 Parts:1–199 ........................... (869–022–00134–5) ...... 15.00 July 1, 1994200–End ....................... (869–022–00135–3) ...... 37.00 July 1, 1994

37 ................................ (869–022–00136–1) ...... 20.00 July 1, 1994

38 Parts:0–17 ............................. (869–022–00137–0) ...... 30.00 July 1, 199418–End ......................... (869–022–00138–8) ...... 29.00 July 1, 1994

39 ................................ (869–022–00139–6) ...... 16.00 July 1, 1994

40 Parts:1–51 ............................. (869–022–00140–0) ...... 39.00 July 1, 199452 ................................ (869–022–00141–8) ...... 39.00 July 1, 199453–59 ........................... (869–022–00142–6) ...... 11.00 July 1, 199460 ................................ (869-022-00143-4) ...... 36.00 July 1, 199461–80 ........................... (869–022–00144–2) ...... 41.00 July 1, 199481–85 ........................... (869–022–00145–1) ...... 23.00 July 1, 199486–99 ........................... (869–022–00146–9) ...... 41.00 July 1, 1994100–149 ........................ (869–022–00147–7) ...... 39.00 July 1, 1994150–189 ........................ (869–022–00148–5) ...... 24.00 July 1, 1994190–259 ........................ (869–022–00149–3) ...... 18.00 July 1, 1994260–299 ........................ (869–022–00150–7) ...... 36.00 July 1, 1994300–399 ........................ (869–022–00151–5) ...... 18.00 July 1, 1994400–424 ........................ (869–022–00152–3) ...... 27.00 July 1, 1994425–699 ........................ (869–022–00153–1) ...... 30.00 July 1, 1994


700–789 ........................ (869–022–00154–0) ...... 28.00 July 1, 1994790–End ....................... (869–022–00155–8) ...... 27.00 July 1, 199441 Chapters:1, 1–1 to 1–10 ..................................................... 13.00 3 July 1, 19841, 1–11 to Appendix, 2 (2 Reserved) ................... 13.00 3 July 1, 19843–6 ..................................................................... 14.00 3 July 1, 19847 ........................................................................ 6.00 3 July 1, 19848 ........................................................................ 4.50 3 July 1, 19849 ........................................................................ 13.00 3 July 1, 198410–17 ................................................................. 9.50 3 July 1, 198418, Vol. I, Parts 1–5 ............................................. 13.00 3 July 1, 198418, Vol. II, Parts 6–19 ........................................... 13.00 3 July 1, 198418, Vol. III, Parts 20–52 ........................................ 13.00 3 July 1, 198419–100 ............................................................... 13.00 3 July 1, 19841–100 ........................... (869–022–00156–6) ...... 9.50 July 1, 1994101 ............................... (869–022–00157–4) ...... 29.00 July 1, 1994102–200 ........................ (869–022–00158–2) ...... 15.00 July 1, 1994201–End ....................... (869–022–00159–1) ...... 13.00 July 1, 1994

42 Parts:1–399 ........................... (869–022–00160–4) ...... 24.00 Oct. 1, 1994400–429 ........................ (869–022–00161–2) ...... 26.00 Oct. 1, 1994430–End ....................... (869–022–00162–1) ...... 36.00 Oct. 1, 1994

43 Parts:1–999 ........................... (869–022–00163–9) ...... 23.00 Oct. 1, 19941000–3999 .................... (869–022–00164–7) ...... 31.00 Oct. 1, 19944000–End ...................... (869–022–00165–5) ...... 14.00 Oct. 1, 1994

44 ................................ (869–022–00166–3) ...... 27.00 Oct. 1, 1994

45 Parts:1–199 ........................... (869–022–00167–1) ...... 22.00 Oct. 1, 1994200–499 ........................ (869–022–00168–0) ...... 15.00 Oct. 1, 1994500–1199 ...................... (869–022–00169–8) ...... 32.00 Oct. 1, 19941200–End ...................... (869–022–00170–1) ...... 26.00 Oct. 1, 1994

46 Parts:1–40 ............................. (869–022–00171–0) ...... 20.00 Oct. 1, 199441–69 ........................... (869–022–00172–8) ...... 16.00 Oct. 1, 199470–89 ........................... (869–022–00173–6) ...... 8.50 Oct. 1, 199490–139 .......................... (869–022–00174–4) ...... 15.00 Oct. 1, 1994140–155 ........................ (869–022–00175–2) ...... 12.00 Oct. 1, 1994156–165 ........................ (869–022–00176–1) ...... 17.00 7Oct. 1, 1993166–199 ........................ (869–022–00177–9) ...... 17.00 Oct. 1, 1994200–499 ........................ (869–022–00178–7) ...... 21.00 Oct. 1, 1994500–End ....................... (869–022–00179–5) ...... 15.00 Oct. 1, 1994

47 Parts:0–19 ............................. (869–022–00180–9) ...... 25.00 Oct. 1, 199420–39 ........................... (869–022–00181–7) ...... 20.00 Oct. 1, 199440–69 ........................... (869–022–00182–5) ...... 14.00 Oct. 1, 199470–79 ........................... (869–022–00183–3) ...... 24.00 Oct. 1, 199480–End ......................... (869–022–00184–1) ...... 26.00 Oct. 1, 1994

48 Chapters:1 (Parts 1–51) ............... (869–022–00185–0) ...... 36.00 Oct. 1, 19941 (Parts 52–99) ............. (869–022–00186–8) ...... 23.00 Oct. 1, 19942 (Parts 201–251) .......... (869–022–00187–6) ...... 16.00 Oct. 1, 19942 (Parts 252–299) .......... (869–022–00188–4) ...... 13.00 Oct. 1, 19943–6 ............................... (869–022–00189–2) ...... 23.00 Oct. 1, 19947–14 ............................. (869–022–00190–6) ...... 30.00 Oct. 1, 199415–28 ........................... (869–022–00191–4) ...... 32.00 Oct. 1, 199429–End ......................... (869–022–00192–2) ...... 17.00 Oct. 1, 1994

49 Parts:1–99 ............................. (869–022–00193–1) ...... 24.00 Oct. 1, 1994100–177 ........................ (869–022–00194–9) ...... 30.00 Oct. 1, 1994178–199 ........................ (869–022–00195–7) ...... 21.00 Oct. 1, 1994200–399 ........................ (869–022–00196–5) ...... 30.00 Oct. 1, 1994400–999 ........................ (869–022–00197–3) ...... 35.00 Oct. 1, 19941000–1199 .................... (869–022–00198–1) ...... 19.00 Oct. 1, 19941200–End ...................... (869–022–00199–0) ...... 15.00 Oct. 1, 1994

50 Parts:1–199 ........................... (869–022–00200–7) ...... 25.00 Oct. 1, 1994200–599 ........................ (869–022–00201–5) ...... 22.00 Oct. 1, 1994600–End ....................... (869–022–00202–3) ...... 27.00 Oct. 1, 1994

CFR Index and FindingsAids .......................... (869–026–00053–1) ...... 36.00 Jan. 1, 1995

vFederal Register / Vol. 60, No. 131/ Monday, July 10, 1995 / Reader Aids


Complete 1995 CFR set ...................................... 883.00 1995

Microfiche CFR Edition:Complete set (one-time mailing) ................... 188.00 1992Complete set (one-time mailing) ................... 223.00 1993Complete set (one-time mailing) ................... 244.00 1994

Subscription (mailed as issued) ...................... 264.00 1995Individual copies ............................................ 1.00 19951 Because Title 3 is an annual compilation, this volume and all previous volumes

should be retained as a permanent reference source.2 The July 1, 1985 edition of 32 CFR Parts 1–189 contains a note only for

Parts 1–39 inclusive. For the full text of the Defense Acquisition Regulationsin Parts 1–39, consult the three CFR volumes issued as of July 1, 1984, containingthose parts.

3 The July 1, 1985 edition of 41 CFR Chapters 1–100 contains a note onlyfor Chapters 1 to 49 inclusive. For the full text of procurement regulationsin Chapters 1 to 49, consult the eleven CFR volumes issued as of July 1,1984 containing those chapters.

4 No amendments to this volume were promulgated during the period Apr.1, 1990 to Mar. 31, 1995. The CFR volume issued April 1, 1990, should beretained.

5 No amendments to this volume were promulgated during the period July1, 1991 to June 30, 1994. The CFR volume issued July 1, 1991, should be retained.

6 No amendments to this volume were promulgated during the period January1, 1993 to December 31, 1994. The CFR volume issued January 1, 1993, shouldbe retained.

7 No amendments to this volume were promulgated during the period October1, 1993, to September 30, 1994. The CFR volume issued October 1, 1993, shouldbe retained.

8 No amendments to this volume were promulgated during the period April1, 1994 to March 31, 1995. The CFR volume issued April 1, 1994, should beretained.

9 Note: Title 19, CFR Parts 141-199, revised 4-1-95 volume is being republishedto restore inadvertently omitted text.

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