Tuesday September 3, 1996 - GovInfo

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TuesdaySeptember 3, 1996Vol. 61 No. 171

Pages 46373–46528

9–3–96

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Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996

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WHEN: September 17, 1996 at 9:00 am.WHERE: National Archives—Northwest Region

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Contents Federal Register

III

Vol. 61, No. 171

Tuesday, September 3, 1996

Agency for International DevelopmentNOTICESAgency information collection activities:

Proposed collection; comment request, 46484

Agriculture DepartmentSee Federal Crop Insurance CorporationSee Foreign Agricultural ServiceSee Forest ServiceSee Grain Inspection, Packers and Stockyards

AdministrationSee Rural Utilities Service

Air Force DepartmentRULESIndustrial labor relations activities; CFR part removed,

46379

Alcohol, Tobacco and Firearms BureauPROPOSED RULESAlcohol; viticultural area designations:

Redwood Valley, CA, 46403–46407NOTICESAgency information collection activities:

Proposed collection; comment request, 46506–46507Senior Executive Service:

Performance Review Board; membership, 46507

Antitrust DivisionNOTICESCompetitive impact statements and proposed consent

judgments:Universal Shippers Association, Inc., 46484–46488

National cooperative research notifications:ATM Forum, 46488

Architectural and Transportation Barriers ComplianceBoard

NOTICESMeetings:

Telecommunications Access Advisory Committee, 46434–46435

Arts and Humanities, National FoundationSee National Foundation on the Arts and the Humanities

Census BureauNOTICESAgency information collection activities:


Centers for Disease Control and PreventionNOTICESMeetings:

Advisory Committee to Director, 46465

Commerce DepartmentSee Census BureauSee International Trade AdministrationSee National Institute of Standards and TechnologySee National Oceanic and Atmospheric Administration

NOTICESAgency information collection activities:

Submission for OMB review; comment request, 46435–46436

Committee for the Implementation of Textile AgreementsNOTICESCotton, wool, and man-made textiles:

Jamaica, 46503

Defense DepartmentSee Air Force DepartmentSee Navy Department

Drug Enforcement AdministrationNOTICESApplications, hearings, determinations, etc.:

Calbiochem-Novabiochem Corp., 46488Radian International LLC, 46488–46489Research Triangle Institute, 46489

Education DepartmentNOTICESAgency information collection activities:

Proposed collection; comment request, 46446–46447Submission for OMB review; comment request, 46447

Meetings:President’s Board of Advisors on Historically Black

Colleges and Universities, 46447–46448

Energy DepartmentSee Energy Research OfficeSee Federal Energy Regulatory CommissionNOTICESMeetings:

Environmental Management Site-Specific AdvisoryBoard—

Fernald Site, 46449–46450Hanford Site, 46448Oak Ridge Reservation, 46449Rocky Flats, 46448–46449

Energy Research OfficeNOTICESMeetings:

High Energy Physics Advisory Panel, 46450

Environmental Protection AgencyRULESHazardous waste:

Identification and listing—Exclusions, 46380–46384

PROPOSED RULESAir pollution; standards of performance for new stationary

sources:Volatile organic compound (VOC) emissions—

Architectural coatings; correction, 46410–46417Clean Air Act:

Enhanced monitoring programs; compliance assurancemonitoring

Correction, 46418

IV Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Contents

Superfund program:National oil and hazardous substances contingency

plan—National priorities list update, 46418–46419

NOTICESClean Air Act:

Citizens suits; proposed settlements—Sierra Club, 46460–46461

Meetings:Common sense initiative—

Computers and electronics sector et al., 46461–46462Urban Wet Weather Flows Advisory Committee et al.,

46462Superfund; response and remedial actions, proposed

settlements, etc.:Iota Site, LA, 46463–46464

Superfund program:Prospective purchaser agreements—

Southern Crop Site, FL, 46462–46463

Export-Import BankNOTICESMeetings:

Advisory committee, 46464

Federal Aviation AdministrationNOTICESMeetings:

RTCA, Inc., 46504Passenger facility charges; applications, etc.:

Harrisburg International Airport, PA, 46504–46505Johnstown-Cambria County Airport, PA, 46505Tri-State Airport, WV, 46505–46506

Federal Communications CommissionPROPOSED RULESCommon carrier services:

Aeronautical services provision via InternationalMaritime Satellite Organization (INMARSAT) system,46419–46420

Commercial mobile radio services—Competitive service safeguards for local exchange

carrier provision, 46420–46430Satellite communications—

Satellite earth stations; local zoning regulationspreemption, 46420

Radio stations; table of assignments:Arkansas, 46430

Federal Crop Insurance CorporationPROPOSED RULESCrop insurance regulations:

Cotton crop, 46401–46403

Federal Energy Regulatory CommissionNOTICESElectric rate and corporate regulation filings:

Illinois Power Co. et al., 46458–46460Warbasse-Cogeneration Technologies Partnership L.P.,

46460Environmental statements; availability, etc.:

Appalachian Power Co., 46460Egan Hub Partners, L.P.; correction, 46460

Applications, hearings, determinations, etc.:ANR Pipeline Co., 46450Canyon Creek Compression Co., 46450–46451Carnegie Interstate Pipeline Co., 46451CNG Transmission Corp., 46451

East Tennessee Gas Transmission Co., 46451El Paso Natural Gas Co., 46451–46452Florida Gas Transmission Co., 46452, 46452Kentucky West Virginia Gas Co., L.L.C., 46452–46453KN Interstate Gas Transmission Co., 46453Koch Gateway Pipeline Co., 46453Mississippi River Transmission Corp., 46453Mojave Pipeline Co., 46453–46454Natural Gas Pipeline Co. of America, 46454Nora Transmission Co., 46454Overthrust Pipeline Co., 46454Ozark Gas Transmission System, 46454–46455Panhandle Eastern Pipe Line Co., 46455Public Utility District No. 1 of Douglas County, WA,

46455Questar Pipeline Co., 46455Sabine Pipe Line Co., 46455–46456Southern Natural Gas Co., 46456South Georgia Natural Gas Co., 46456Stingray Pipeline Co., 46456–46457Tennessee Gas Pipeline Co., 46457Texas-Ohio Pipeline, Inc., 46457–46458Trailblazer Pipeline Co., 46458Transcontinental Gas Pipe Line Corp., 46458

Federal Maritime CommissionNOTICESAgreements filed, etc., 46464–46465

Federal Reserve SystemNOTICESBanks and bank holding companies:

Change in bank control, 46465

Fish and Wildlife ServiceRULESHunting and fishing:

Refuge-specific regulations, 46390–46399PROPOSED RULESEndangered and threatened species:

Lane Mountain milk-vetch, etc., 46430–46431Migratory bird permits:

Canada geese, injurious; control permits; environmentalassessment, 46431

Food and Drug AdministrationRULESFood additives:

Peroxyacetic acid, acetic acid, and hydrogen peroxide,46376–46378

Peroxyacetic acid, acetic acid, hydrogen peroxide and 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP),46374–46376

NOTICESHuman drugs:

Patent extension; regulatory review perioddeterminations—

CEDAX capsules, 46465–46466

Foreign Agricultural ServiceNOTICESAgency information collection activities:


Forest ServiceNOTICESMeetings:

Southwest Oregon Provincial Interagency ExecutiveCommittee Advisory Committee, 46432

VFederal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Contents

Grain Inspection, Packers and Stockyards AdministrationNOTICESAgency designation actions:

Illinois et al., 46432–46433Iowa et al., 46433–46434

Health and Human Services DepartmentSee Centers for Disease Control and PreventionSee Food and Drug AdministrationSee Health Care Financing AdministrationSee National Institutes of Health

Health Care Financing AdministrationRULESMedicare and Medicaid:

Health maintenance organizations, competitive medicalplans, and health care prepayment plans—

Prepaid health care organizations; physician incentiveplan requirements; correction, 46384–46385

NOTICESMedicare:

Skilled nursing facilities—Inpatient routine service costs; payment rates, 46466–

46478

Housing and Urban Development DepartmentRULESReal Estate Settlement Procedures Act:

Unnecessary or illustrative regulations; streamlining;Federal regulatory reform

Correction, 46510PROPOSED RULESReal Estate Settlement Procedures Act:

Escrow accounting procedures, 46511–46527

Immigration and Naturalization ServiceRULESImmigration:

Fees for motions to reopen or reconsider when filedconcurrently with any application for relief underimmigration laws for which fee is chargeable, 46373–46374

Information Security Oversight OfficeNOTICESMeetings:

National Industrial Security Program Policy AdvisoryCommittee, 46490–46491

Interior DepartmentSee Fish and Wildlife ServiceSee Land Management BureauSee Minerals Management ServiceSee National Park Service

International Development Cooperation AgencySee Agency for International Development

International Trade AdministrationNOTICESAntidumping:

Fresh kiwifruit from—New Zealand, 46438–46440

Porcelain on steel cookware from—China, 46440

Sebacic acid from—China, 46440–46444

Antidumping duty orders and findings:Intent to revoke, 46437–46438

Justice DepartmentSee Antitrust DivisionSee Drug Enforcement AdministrationSee Immigration and Naturalization ServiceSee Justice Programs Office

Justice Programs OfficeNOTICESAgency information collection activities:

Submission for OMB review; comment request, 46489–46490

Land Management BureauNOTICESAgency information collection activities:

Proposed collection; comment request, 46480–46481Oil and gas leases:

Utah, 46481Opening of public lands:

California, 46481–46482Survey plat filings:

Idaho, 46482

Minerals Management ServiceNOTICESEnvironmental statements; availability, etc.:

Outer Continental Shelf oil and gas leasing program(1997–2002), 46482–46483

National Aeronautics and Space AdministrationNOTICESMeetings:

Aeronautics Advisory Committee, 46490Patent licenses; non-exclusive, exclusive, or partially

exclusive:Honeywell, Inc., 46490

National Archives and Records AdministrationSee Information Security Oversight Office

National Foundation on the Arts and the HumanitiesNOTICESMeetings:

Humanities Panel, 46435

National Highway Traffic Safety AdministrationRULESMotor vehicle content labeling; passenger cars and light

vehicles; domestic and foreign content information,46385–46390

National Institute of Standards and TechnologyNOTICESInformation processing standards, Federal:

Code for information interchange, its representations,subsets, and extension, etc.; proposed withdrawal,46444–46445

National Institutes of HealthNOTICESGrants and cooperative agreements; availability, etc.:

Fusion proteins that include antibody and non-antibodyportions; scientific and commercial development,46478–46479

Meetings:National Institute on Deafness and Other Communication

Disorders, 46479–46480Research Grants Division special emphasis panels, 46480

VI Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Contents

National Oceanic and Atmospheric AdministrationRULESFishery conservation and management:

Alaska scallop, 46399–46400NOTICESMeetings:

Mid-Atlantic Fishery Management Council, 46445Permits:

Endangered and threatened species, 46445–46446

National Park ServiceRULESSpecial regulations:

Lassen Volcanic National Park, CA; boating, fishing, andlimit of catch; regulations removed, 46379–46380

NOTICESAgency information collection activities:

Proposed collection; comment request, 46483Environmental statements; availability, etc.:

Independence National Historical Park, PA, 46483–46484

Navy DepartmentRULESNavigation, COLREGS compliance exemptions:

USS Hopper, 46378–46379NOTICESPatent licenses; non-exclusive, exclusive, or partially

exclusive:Davis Liquid Crystals, Inc., et al., 46446

Panama Canal CommissionPROPOSED RULESShipping and navigation:

Canal tolls rates and vessel management rules—Toll rates increase and on-deck container capacity

measurement, 46407–46410

Personnel Management OfficeNOTICESAgency information collection activities:

Submission for OMB review; comment request, 46491Excepted service:

Schedules A, B, and C; positions placed or revoked—Update, 46491–46492

Public Health ServiceSee Centers for Disease Control and PreventionSee Food and Drug AdministrationSee National Institutes of Health

Rural Utilities ServiceNOTICESWater and wastewater loan program:

Refinancing policies, eligible borrowers list, and loanportfolio participation, 46434

Securities and Exchange CommissionNOTICESSelf-regulatory organizations; proposed rule changes:

Chicago Board Options Exchange, Inc., 46497–46498Depository Trust Co., 46498–46499Options Clearing Corp., 46499–46502

Applications, hearings, determinations, etc.:Arizona Limited Maturity Municipals Portfolio, 46492–

46493First American Strategy Funds, Inc., et al., 46493–46496North Carolina Limited Maturity Municipals Portfolio,

46496

Virginia Limited Maturity Municipals Portfolio, 46496–46497

Social Security AdministrationNOTICESAgency information collection activities:

Proposed collection; comment request, 46502–46503

Surface Transportation BoardNOTICESRailroad services abandonment:

Missouri Pacific Railroad Co., 46506

Textile Agreements Implementation CommitteeSee Committee for the Implementation of Textile

Agreements

Thrift Supervision OfficeNOTICESAgency information collection activities:

Submission for OMB review; comment request, 46507Applications, hearings, determinations, etc.:

Fulton Savings Bank, FSB, 46507–46508

Transportation DepartmentSee Federal Aviation AdministrationSee National Highway Traffic Safety AdministrationSee Surface Transportation BoardNOTICESAir carrier operations; resumption:

ValuJet Airlines, Inc., 46503Meetings:

Aviation Safety and Security White House Commission,46504

Treasury DepartmentSee Alcohol, Tobacco and Firearms BureauSee Thrift Supervision Office

United States Institute of PeaceNOTICESGrants and cooperative agreements; availability, etc.:

Solicited grants—Post-settlement peacebuilding, etc., 46508

Separate Parts In This Issue

Part IIHousing and Urban Development Department, 46510–46527

Reader AidsAdditional information, including a list of public laws,telephone numbers, reminders, and finding aids, appears inthe Reader Aids 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.

VIIFederal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Contents

7 CFRProposed Rules:457...................................46401

8 CFR3.......................................46373103...................................46373242...................................46373

21 CFR173 (2 documents) .........46374,

46376

24 CFR3500.................................46510Proposed Rules:3500.................................46523

27 CFRProposed Rules:9.......................................46403

32 CFR706...................................46378801...................................46379

35 CFRProposed Rules:133...................................46407135...................................46407

36 CFR7.......................................46379

40 CFR261...................................46380Proposed Rules:59.....................................4641064.....................................4641870.....................................4641871.....................................46418300...................................46418

42 CFR417...................................46384

47 CFRProposed Rules:Ch. 1 ................................464191.......................................4642022.....................................4642025.....................................4642073.....................................46430

49 CFR583...................................46385

50 CFR679...................................4639932.....................................46390Proposed Rules:17.....................................4643021.....................................46431

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

46373

Vol. 61, No. 171


DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Parts 3, 103, and 242

[EOIR No. 114I; A.G. Order No. 2051–96]

RIN 1125–AA15

Fees for Motions To Reopen orReconsider

AGENCY: Department of Justice.ACTION: Interim rule with request forcomments.

SUMMARY: This interim rule clarifieswhen and how fees must be paid whena motion to reopen or reconsider is filedconcurrently with any application forrelief under the immigration laws forwhich a fee is chargeable. This interimrule applies to motions to reopen orreconsider that are filed in all types ofimmigration proceedings, includingthose over which the Immigration andNaturalization Service (the ‘‘Service’’)and the Board of Immigration Appeals(the ‘‘Board’’) have appellatejurisdiction, respectively.DATES: This interim rule is effectiveSeptember 3, 1996. Written commentsmust be received on or before November4, 1996.ADDRESSES: Please submit writtencomments to Margaret M. Philbin,General Counsel, Executive Office forImmigration Review, Suite 2400, 5107Leesburg Pike, Falls Church, Virginia22041, and Ernest B. Duarte, BranchChief, Immigration and NaturalizationService, 425 I Street NW., Suite 3214,Washington, DC 20536.FOR FURTHER INFORMATION CONTACT:Margaret M. Philbin, General Counsel,Executive Office for ImmigrationReview, Suite 2400, 5107 Leesburg Pike,Falls Church, Virginia 22041, telephone(703) 305–0470, or Ernest B. Duarte,Branch Chief, Immigration andNaturalization Service, 425 I Street NW.,

Suite 3214, Washington, DC 20536,telephone (202) 307–3587.SUPPLEMENTARY INFORMATION: Thisinterim rule amends 8 CFR parts 3, 103,and 242 by clarifying when the requiredfees must be paid when a motion toreopen or reconsider is filedconcurrently with any application forrelief under the immigration laws forwhich a fee is chargeable. This interimrule applies to motions to reopen orreconsider that are filed in all types ofimmigration proceedings, includingthose over which the Service and theBoard of Immigration Appeals haveappellate jurisdiction, respectively.

This interim rule is necessary toeliminate questions that have arisenregarding the payment of fees forapplications for relief that require theirown separate fees when filedconcurrently with motions to reopen orreconsider. For example, if anindividual files a motion to reopen hisor her deportation case in order to applyfor suspension of deportation, is theindividual required to pay only one feefor the motion to reopen, or one fee forthe motion, and a second fee for theapplication?

Prior to April 4, 1989, the provisionat 8 CFR 103.7(b) regarding motions toreopen or reconsider contained asentence that specified that ‘‘[w]hen themotion to reopen or reconsider is madeconcurrently with any applicationunder the immigration laws, theapplication will be considered anintegral part of the motion and only forthe fee for filing the motion or the feefor filing the application, whichever isgreater, is payable.’’ When thisprovision was amended in April 1989,see 54 FR 13515, this sentence wasdeleted without explanation. During theensuing years, confusion mounted as tothe meaning, if any, of this deletionfrom the regulation and its effect on thefee requirements. The Executive Officefor Immigration Review (‘‘EOIR’’) andthe Service are prepared to eliminatethis confusion by amending the feerequirement for motions to reopen orreconsider as follows:

If a motion to reopen or reconsider isfiled by an individual concurrently withany application for relief under theimmigration laws for which a fee ischargeable (e.g., an application forsuspension of deportation, adjustmentof status, or registry), the individualinitially must pay only the fee required

for the motion (currently, $110), unlessa fee waiver has been granted pursuantto 8 CFR 103.7(c)(1). If the motion toreopen or reconsider is granted, theindividual then will have to pay the feeset forth in 8 CFR 103.7(b) required forthe underlying application for relief inorder to complete the application. Feeremittance for the underlyingapplication for relief should be madepayable to the ‘‘Immigration andNaturalization Service’’. Unless a feewaiver has been granted pursuant to 8CFR 103.7(c)(1), failure to pay thesubsequent fee for the underlyingapplication for relief will result in thedenial of the application. If the motionto reopen or reconsider is denied, nofurther fee will be required because theunderlying application for relief, ineffect, will be moot. This procedureprovides a fair and equitable feestructure for motions and theirunderlying applications by requiringpayment of a fee for the underlyingapplication only if the motion to reopenor reconsider is granted. This willprevent imposing undue financialburdens on those individuals filing suchmotions.

The implementation of this rule as aninterim rule, with provisions for post-promulgation public comment, is basedupon the ‘‘good cause’’ exceptionsfound at 5 U.S.C. 553 (b)(B) and (d)(3).The reasons and the necessity forimmediate implementation of thisinterim rule without prior notice andcomment are as follows: Immediateimplementation of this rule will ensurethat fees for motions to reopen orreconsider, and their underlyingapplications for relief, are acceptable ina consistent manner by all immigrationcourts and the Board. Immediateimplementation of this rule also willeliminate any existing confusion withregard to the payment of such fees at theearliest possible time, while stillaffording the agencies the opportunityto solicit and consider all publiccomments that are timely submitted.Finally, this interim rule provides abenefit to individuals who wish to filemotions to reopen or reconsider. Hence,immediate implementation will makethis benefit available without anyfurther delay, which would be contraryto the public interest.

In accordance with 5 U.S.C. 605(b),the Attorney General certifies that thisrule affects only individuals filing

46374 Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Rules and Regulations

motions to reopen or reconsiderconcurrently with applications for therelief from deportation. Therefore, thisrule does not have a significanteconomic impact on a substantialnumber of small entities. The AttorneyGeneral has determined that this rule isnot a significant regulatory action underExecutive Order No. 12866, andaccordingly this rule has not beenreviewed by the Office of Managementand Budget. This rule has no federalismimplications warranting the preparationof a Federalism Assessment inaccordance with Executive Order No.12612. The rule meets the applicablestandards provided in sections 3(a) and3(b)(2) of Executive Order No. 12988.

List of Subjects

8 CFR Part 3

Administrative practice andprocedure, Immigration, Lawyers,Organizations and functions(Government agencies), Reporting andrecordkeeping requirements.

8 CFR Part 103

Administrative practice andprocedure, Authority delegations(Government agencies), Freedom ofInformation, Privacy, Reporting andrecordkeeping requirements, Suretybonds.

8 CFR Part 242

Administrative practice andprocedure, Aliens.

Accordingly, chapter I of Title 8 of theCode of Federal Regulations is amendedas follows:

PART 3—EXECUTIVE OFFICE FORIMMIGRATION REVIEW

Subpart C—Rules of Procedure forImmigration Judge Proceedings

1. The authority citation for part 3continues to read as follows:

Authority: 5 U.S.C. 301; 8 U.S.C. 1103,1252 note, 1252b, 1324b, 1362, 1362; 28U.S.C. 509, 1746; sec. 2, Reorg. Plan No. 2 of1950, 3 CFR 1949–1953 Comp., p. 1002.

2. In § 3.31, paragraph (b) is amendedby revising the first sentence to read asfollows:

§ 3.31 Filing documents and applications.

* * * * *(b) Except as provided in 8 CFR

242.17(e), all documents or applicationsrequiring the payment of a fee must beaccompanied by a fee receipt from theService or by an application for a waiverof fees pursuant to 8 CFR 3.24. * * ** * * * *

PART 103—POWERS AND DUTIES OFSERVICE OFFICERS; AVAILABILITYOF SERVICE RECORDS


Authority: 5 U.S.C. 552, 552(a); 8 U.S.C.1101, 1103, 1201, 1252 note, 1252b, 1304,1356; 31 U.S.C. 9701, E.O. 12356, 47 FR14874; 15557; 3 CFR, 1982, Comp., p. 166; 8CFR part 2.

4. In § 103.7, paragraph (b)(1) isamended by revising the two entries for‘‘Motion’’, respectively, to read asfollows:

§ 103.7 Fees.* * * * *

(b) * * *(1) * * *

* * * * *Motion. For filing a motion to reopen

or reconsider any decision under theimmigration laws in any type ofproceeding over which the Board ofImmigration Appeals has appellatejurisdiction. No fee shall be charged fora motion to reopen or reconsider adecision on an application for relief forwhich no fee is chargeable. (The fee of$110 shall be charged whenever anappeal or motion is filed by or on behalfof two or more aliens and all such aliensare covered by one decision. When amotion to reopen or reconsider is madeconcurrently with any application forrelief under the immigration laws forwhich a fee is chargeable, the fee of$110 will be charged when the motionis filed and, if the motion is granted, therequisite fee for filing the application forrelief will be charged and must be paidwithin the time specified in order tocomplete the application.)—$110.

Motion. For filing a motion to reopenor reconsider any decision under theimmigration laws in any type ofproceeding over which the Board ofImmigration Appeals does not haveappellate jurisdiction. No fee shall becharged for a motion to reopen orreconsider a decision on an applicationfor relief for which no fee is chargeable.(The fee of $110 shall be chargedwhenever an appeal or motion is filedby on or behalf of two or more aliensand all such aliens are covered by onedecision. When a motion to reopen orreconsider is made concurrently withany application for relief under theimmigration laws for which a fee ischargeable, the fee of $110 will becharged when the motion is filed and,if the motion is granted, the requisite feefor filing the application for relief willbe charged and must be paid within thetime specified in order to complete theapplication.)—$110.* * * * *

PART 242—PROCEEDINGS TODETERMINE DEPORTABILITY OFALIENS IN THE UNITED STATES:APPREHENSION, CUSTODY,HEARING, AND APPEAL


Authority: 8 U.S.C. 1103, 1182, 1186a,1251, 1252, 1252 note, 1252a, 1252b, 1524,1362; 8 CFR , part 2.

6. In § 242.17, paragraph (e) isamended by adding two new sentencesafter the 4th sentence, to read asfollows:

§ 242.17 Ancillary matters, applications.

* * * * *(e) * * * When a motion to reopen or

reconsider is made concurrently with anapplication for relief seeking one of theimmigration benefits set forth inparagraphs (a) and (c) of this section,only the fee set forth in § 103.7(b)(1) ofthis chapter for the motion mustaccompany the motion and applicationfor relief. If such a motion is granted,the appropriate fee for the applicationfor relief, if any, set forth in 8 CFR103.7(b)(1), must be paid within thetime specified in order to complete theapplication.* * *

Dated: August 26, 1996.

Janet Reno,Attorney General.[FR Doc. 96–22335 Filed 8–30–96; 8:45 am]BILLING CODE 4410–01–M

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Food and Drug Administration

21 CFR Part 173

[Docket No. 95F–0160]

Secondary Direct Food AdditivesPermitted in Food for HumanConsumption

AGENCY: Food and Drug Administration,HHS.ACTION: Final rule.

SUMMARY: The Food and DrugAdministration (FDA) is amending thefood additive regulations to provide forthe safe use of a mixture of peroxyaceticacid, acetic acid, hydrogen peroxide and1-hydroxyethylidene-1,1-diphosphonicacid (HEDP) to reduce the microbialload in water used to wash certain fruitsand vegetables. Elsewhere in this issueof the Federal Register, FDA ispublishing a document that provides forthe safe use of a mixture of peroxyaceticacid, acetic acid, and hydrogen peroxide

46375Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Rules and Regulations

to reduce the microbial load in waterused to wash certain fruits andvegetables. This action is in response toa petition filed by Ecolab Inc.DATES: Effective September 3, 1996;written objections and requests for ahearing by October 3, 1996.ADDRESSES: Submit written objections tothe Dockets Management Branch (HFA–305), Food and Drug Administration,12420 Parklawn Dr., rm. 1–23,Rockville, MD 20857.FOR FURTHER INFORMATION CONTACT:Mary E. LaVecchia, Center for FoodSafety and Applied Nutrition (HFS–217), Food and Drug Administration,200 C St. SW., Washington, DC 20204–0001, 202–418–3072.SUPPLEMENTARY INFORMATION: In a noticepublished in the Federal Register ofJuly 13, 1995 (60 FR 36150), FDAannounced that a food additive petition(FAP 5A4460) had been filed by EcolabInc., 370 North Wabasha St., St. Paul,MN 55102. The petition proposed toamend the food additive regulations in§ 173.315 Chemicals used in washing orto assist in the lye peeling of fruits andvegetables (21 CFR 173.315) to providefor the safe use of a mixture ofperoxyacetic acid, acetic acid, hydrogenperoxide and 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) to controlmicrobial growth in water contactingfruits and vegetables.

An antimicrobial solution used towash fruits and vegetables is potentiallysubject to regulation as a food additiveunder section 409 of the Federal Food,Drug, and Cosmetic Act (the act) (21U.S.C. 348), or as a pesticide chemicalunder the Federal Insecticide,Fungicide, and Rodenticide Act (FIFRA)(7 U.S.C. 136(u)), depending upon thestatus of the fruit or vegetable. FDAregulates antimicrobial solutions as foodadditives under the act when suchsolutions are used on processed food.The Environmental Protection Agency(EPA) regulates antimicrobial solutionsas pesticide chemicals under FIFRAwhen the solutions are used on rawagricultural commodities.

Under section 201(q)(1) of the act (21U.S.C. 321(q)(1)), as amended by theFood Quality Protection Act of 1996, theterm ‘‘pesticide chemical’’ means apesticide as defined in FIFRA. UnderFIFRA’s regulatory scheme, anantimicrobial solution used on or inprocessed food does not come withinthe definition of the term pesticide.FIFRA defines a pesticide as anysubstance intended for preventing,destroying, repelling, or mitigating anypest (7 U.S.C. 136(u)); the definition ofpest includes ‘‘fungus’’ (7 U.S.C. 136(t)).However, excluded from the definition

of fungus are rust, smut, mildew, mold,yeast, and bacteria on or in processedfood (7 U.S.C. 136(k)). Therefore, bydefinition, an antimicrobial solutionused on or in processed food is not apesticide because it does not prevent,destroy, repel, or mitigate a ‘‘pest,’’within the meaning of that term (7U.S.C. 136(t)). Thus, such a solution isnot a pesticide chemical under the act.

FDA received one comment inresponse to the notice of filing of thispetition. The comment expressedconcern that the chemical mixtureappeared to be a biocide and mayrequire FIFRA pesticide registration.The comment also stated that thepreparation would be regulated moreaccurately under § 178.1010 Sanitizingsolutions (21 CFR 178.1010). Lastly, thecomment stated that one of thecomponents of the mixture containedphosphoric acid, which needed to bedeclared as an ingredient.

As noted above, an antimicrobialformulation used on raw agriculturalcommodities is regulated as a pesticidechemical and thus, may requireregistration, under FIFRA, as well as atolerance established under section 408of the act (21 U.S.C. 346a). Similarly,FDA has jurisdiction over antimicrobialsolutions used on processed foods.Thus, consistent with FDA’sjurisdiction, FDA’s approval of thisformulation is limited to its use inwashing fruits and vegetables other thanthose that are raw agriculturalcommodities. This approval isconsistent with the division ofresponsibility between FDA and EPAover solutions of this type. FDA has,however, referred the petitioner to EPAin order to ascertain whether FIFRApesticide registration and a toleranceunder section 408 of the act are requiredfor any uses not regulated by FDA.Thus, FDA’s decision in this final ruletakes into consideration thejurisdictional question between FDAand EPA raised by the comment.

FDA disagrees with the comment tothe extent that it suggests that thesolution in question should be regulatedas a sanitizing solution. FDA notes thatthis formulation is presently approvedfor use as a sanitizing solution, under§ 178.1010(b)(30). However, thepetitioned use for this formulation is toreduce the microbial load in water usedto wash fruits and vegetables, consistentwith the technical effect listed in 21CFR 170.3(o)(2). This use is differentfrom its use as a sanitizing solution.Because the petitioned conditions of usediffer from those for a sanitizingsolution, approval under § 173.315 isnecessary and appropriate. The point ofthis comment is not entirely clear. To

the extent that this comment suggeststhat the solution is not safe for use asa washing solution for fruits andvegetables, the agency has determinedthat the petitioned use is safe. To theextent that the comment suggests thatthe solution should be regulated as asanitizing solution under § 178.1010,the comment is meaningless because thesolution is already approved for suchuse (§ 178.1010(b)(30)).

Finally, the agency disagrees with thecomment to the extent that it asserts thatone of the components of the mixturecontains phosphoric acid, which shouldbe considered an ingredient.Importantly, there is no phosphoric acidin the formulation and thus there is noneed to consider it as an ingredient.Commercial HEDP does contain a lowlevel (approximately 3 percent byweight) of phosphorous acid, notphosphoric acid (Ref. 1), which is usedas a reactant in the preparation of HEDP.The agency has evaluated the level ofphosphorous acid in HEDP andconcludes that essentially no residue ofphosphorous acid would remain ontreated produce and that this use ofHEDP is safe. Because this antimicrobialsolution contains no phosphoric acid,FDA finds no merit in the commentstating that phosphoric acid needs to bedisclosed as an ingredient.

FDA has evaluated data in thepetition and other relevant material. Aspart of its review, FDA evaluated thesafety of each of the components of theantimicrobial solution. Based on thisinformation, the agency concludes thatthe proposed use of the additive is safe,that it will achieve its intendedtechnical effect of reducing themicrobial load in water used to washfruits and vegetables, and that therefore,the regulations in § 173.315 should beamended as set forth below.

In accordance with § 171.1(h) (21 CFR171.1(h)), the petition and thedocuments that FDA considered andrelied upon in reaching its decision toapprove the petition are available forinspection at the Center for Food Safetyand Applied Nutrition by appointmentwith the information contact personlisted above. As provided in § 171.1(h),the agency will delete from thedocuments any materials that are notavailable for public disclosure beforemaking the documents available forinspection.

The agency has carefully consideredthe potential environmental effects ofthis action. FDA has concluded that theaction will not have a significant impacton the human environment, and that anenvironmental impact statement is notrequired. The agency’s finding of nosignificant impact and the evidence


supporting that finding, contained in anenvironmental assessment, may be seenin the Dockets Management Branch(address above) between 9 a.m. and 4p.m., Monday through Friday.

Any person who will be adverselyaffected by this regulation may at anytime on or before October 3, 1996, filewith the Dockets Management Branch(address above) written objectionsthereto. Each objection shall beseparately numbered, and eachnumbered objection shall specify withparticularity the provisions of theregulation to which objection is madeand the grounds for the objection. Eachnumbered objection on which a hearingis requested shall specifically so state.Failure to request a hearing for anyparticular objection shall constitute awaiver of the right to a hearing on thatobjection. Each numbered objection forwhich a hearing is requested shallinclude a detailed description andanalysis of the specific factualinformation intended to be presented insupport of the objection in the eventthat a hearing is held. Failure to include

such a description and analysis for anyparticular objection shall constitute awaiver of the right to a hearing on theobjection. Three copies of all documentsshall be submitted and shall beidentified with the docket numberfound in brackets in the heading of thisdocument. Any objections received inresponse to the regulation may be seenin the Dockets Management Branchbetween 9 a.m. and 4 p.m., Mondaythrough Friday.

Reference

The following reference has beenplaced on display in the DocketsManagement Branch (address above)and may be seen by interested personsbetween 9 a.m. and 4 p.m., Mondaythrough Friday.

1. Monsanto Material Safety Data Sheet forMonsanto Product Name DEQUEST 2010DEFLOCCULANT and SEQUESTRANT.

List of Subjects in 21 CFR Part 173

Food additives.Therefore, under the Federal Food,

Drug, and Cosmetic Act and under

authority delegated to the Commissionerof Food and Drugs and redelegated tothe Director, Center for Food Safety andApplied Nutrition, 21 CFR part 173 isamended as follows:

PART 173—SECONDARY DIRECTFOOD ADDITIVES PERMITTED INFOOD FOR HUMAN CONSUMPTION

1. The authority citation for 21 CFRpart 173 continues to read as follows:

Authority: Secs. 201, 402, 409 of theFederal Food, Drug, and Cosmetic Act (21U.S.C. 321, 342, 348).

2. Section 173.315 is amended in thetable in paragraph (a)(2) byalphabetically adding a new entry underthe headings ‘‘Substances’’ and‘‘Limitations’’ to read as follows:

§ 173.315 Chemicals used in washing or toassist in the lye peeling of fruits andvegetables.

* * * * *(a) * * *(2) * * *

Substances Limitations

* * * * * * *1-Hydroxyethylidene-1,1-diphosphonic acid. May be used only with peroxyacetic acid. Not to exceed 4.8 ppm in wash water.

Limited to use on fruits and vegetables that are not raw agricultural commod-ities.

* * * * * * *

* * * * *Dated: August 26, 1996.

Fred A. Shank,Director, Center for Food Safety and AppliedNutrition.[FR Doc. 96–22286 Filed 8–30–96; 8:45 am]BILLING CODE 4160–01–F

21 CFR Part 173

[Docket No. 95F–0161]

Secondary Direct Food AdditivesPermitted in Food for HumanConsumption

AGENCY: Food and Drug Administration,HHS.ACTION: Final rule.

SUMMARY: The Food and DrugAdministration (FDA) is amending thefood additive regulations to provide forthe safe use of a mixture of peroxyaceticacid, acetic acid, and hydrogen peroxideto reduce the microbial load in waterused to wash certain fruits and

vegetables. Elsewhere in this issue ofthe Federal Register, FDA is alsopublishing a document that provides forthe safe use of a mixture of peroxyaceticacid, acetic acid, hydrogen peroxide,and 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) to reduce themicrobial load in water used to washcertain fruits and vegetables. This actionis in response to a petition filed byEcolab Inc.DATES: Effective September 3, 1996;written objections and requests for ahearing by October 3, 1996.ADDRESSES: Submit written objections tothe Dockets Management Branch (HFA–305), Food and Drug Administration,12420 Parklawn Dr., rm. 1–23,Rockville, MD 20857.FOR FURTHER INFORMATION CONTACT:Mary E. LaVecchia, Center for FoodSafety and Applied Nutrition (HFS–217), Food and Drug Administration,200 C St. SW., Washington, DC 20204–0001, 202–418–3072.SUPPLEMENTARY INFORMATION: In a noticepublished in the Federal Register of

July 13, 1995 (60 FR 36150), FDAannounced that a food additive petition(FAP 5A4459) had been filed by EcolabInc., 370 North Wabasha St., St. Paul,MN 55102. The petition proposed toamend the food additive regulations in§ 173.315 Chemicals used in washing orto assist in the lye peeling of fruits andvegetables (21 CFR 173.315) to providefor the safe use of a mixture ofperoxyacetic acid, acetic acid andhydrogen peroxide to control microbialgrowth in water contacting fruits andvegetables.

An antimicrobial solution used towash fruits and vegetables is potentiallysubject to regulation as a food additiveunder section 409 of the Federal Food,Drug, and Cosmetic Act (the act) (21U.S.C. 348), or as a pesticide chemicalunder the Federal Insecticide,Fungicide, and Rodenticide Act (FIFRA)(7 U.S.C. 136(u)), depending upon thestatus of the fruit or vegetable. FDAregulates antimicrobial solutions as foodadditives under the act when suchsolutions are used on processed food.


The Environmental Protection Agency(EPA) regulates antimicrobial solutionsas pesticide chemicals under FIFRAwhen the solutions are used on rawagricultural commodities.

Under section 201(q)(1) of the act (21U.S.C. 321(q)(1)), as amended by theFood Quality Protection Act of 1996, theterm ‘‘pesticide chemical’’ means apesticide as defined in FIFRA. UnderFIFRA’s regulatory scheme, anantimicrobial solution used on or inprocessed food does not come withinthe definition of the term pesticide.FIFRA defines a pesticide as anysubstance intended for preventing,destroying, repelling, or mitigating anypest (7 U.S.C. 136(u)); the definition ofpest includes ‘‘fungus’’ (7 U.S.C. 136(t)).However, excluded from the definitionof fungus are rust, smut, mildew, mold,yeast, and bacteria on or in processedfood (7 U.S.C. 136(k)). Therefore, bydefinition, an antimicrobial solutionused on or in processed food is not apesticide because it does not prevent,destroy, repel, or mitigate a ‘‘pest,’’within the meaning of that term (7U.S.C. 136(t)). Thus, such a solution isnot a pesticide chemical under the act.

FDA received one comment inresponse to the notice of filing of thispetition. The comment expressedconcern that the chemical mixtureappeared to be a biocide and mayrequire FIFRA pesticide registration.The comment also stated that thepreparation would be regulated moreaccurately under § 178.1010 Sanitizingsolutions (21 CFR 178.1010).

As noted above, an antimicrobialformulation used on raw agriculturalcommodities is regulated as a pesticidechemical and thus, may requireregistration under FIFRA, as well as atolerance established under section 408of the act (21 U.S.C. 346a). Similarly,FDA has jurisdiction over antimicrobialsolutions used on processed foods.Thus, consistent with FDA’sjurisdiction, FDA’s approval of thisformulation is limited to its use inwashing fruits and vegetables other thanthose that are raw agriculturalcommodities. This approval isconsistent with the division ofresponsibility between FDA and EPAover solutions of this type. FDA has,however, referred the petitioner to EPAin order to ascertain whether FIFRApesticide registration and a toleranceunder section 408 of the act are requiredfor any uses not regulated by FDA.Thus, FDA’s decision in this final ruletakes into consideration the

jurisdictional question between FDAand EPA raised by the comment.

FDA disagrees with the comment tothe extent that it suggests that thesolution in question should be regulatedas a sanitizing solution. The petitioneduse for this formulation is to reduce themicrobial load in water used to washfruits and vegetables, consistent withthe technical effect listed in 21 CFR170.3(o)(2). This use is different from itsuse as a sanitizing solution. Because thepetitioned conditions of use differ fromthose for a sanitizing solution, approvalunder § 173.315 is necessary andappropriate. The point of this commentis not entirely clear. To the extent thatthis comment suggests that the solutionis not safe for use as a washing solutionfor fruits and vegetables, the agency hasdetermined that the petitioned use issafe.

FDA has evaluated data in thepetition and other relevant material. Aspart of its review, FDA evaluated thesafety of each of the components of theantimicrobial solution. Based on thisinformation, the agency concludes thatthe proposed use of the additive is safe,that it will achieve its intendedtechnical effect of reducing themicrobial load in water used to washfruits and vegetables, and that therefore,the regulations in § 173.315 should beamended as set forth below.

In accordance with § 171.1(h) (21 CFR171.1(h)), the petition and thedocuments that FDA considered andrelied upon in reaching its decision toapprove the petition are available forinspection at the Center for Food Safetyand Applied Nutrition by appointmentwith the information contact personlisted above. As provided in § 171.1(h),the agency will delete from thedocuments any materials that are notavailable for public disclosure beforemaking the documents available forinspection.

The agency has carefully consideredthe potential environmental effects ofthis action. FDA has concluded that theaction will not have a significant impacton the human environment, and that anenvironmental impact statement is notrequired. The agency’s finding of nosignificant impact and the evidencesupporting that finding, contained in anenvironmental assessment, may be seenin the Dockets Management Branch(address above) between 9 a.m. and 4p.m., Monday through Friday.

Any person who will be adverselyaffected by this regulation may at anytime on or before October 3, 1996, file

with the Dockets Management Branch(address above) written objectionsthereto. Each objection shall beseparately numbered, and eachnumbered objection shall specify withparticularity the provisions of theregulation to which objection is madeand the grounds for the objection. Eachnumbered objection on which a hearingis requested shall specifically so state.Failure to request a hearing for anyparticular objection shall constitute awaiver of the right to a hearing on thatobjection. Each numbered objection forwhich a hearing is requested shallinclude a detailed description andanalysis of the specific factualinformation intended to be presented insupport of the objection in the eventthat a hearing is held. Failure to includesuch a description and analysis for anyparticular objection shall constitute awaiver of the right to a hearing on theobjection. Three copies of all documentsshall be submitted and shall beidentified with the docket numberfound in brackets in the heading of thisdocument. Any objections received inresponse to the regulation may be seenin the Dockets Management Branchbetween 9 a.m. and 4 p.m., Mondaythrough Friday.


Food additives.Therefore, under the Federal Food,

Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs and redelegated tothe Director, Center for Food Safety andApplied Nutrition, 21 CFR part 173 isamended as follows:

PART 173—SECONDARY DIRECTFOOD ADDITIVES PERMITTED INFOOD FOR HUMAN CONSUMPTION


Authority: Secs. 201, 402, 409 of theFederal Food, Drug, and Cosmetic Act (21U.S.C. 321, 342, 348).

2. Section 173.315 is amended in thetable in paragraph (a)(2) byalphabetically adding two new entriesunder the headings ‘‘Substances’’ and‘‘Limitations’’ to read as follows:

§ 173.315 Chemicals used in washing or toassist in the lye peeling of fruits andvegetables.

* * * * *(a) * * *(2) * * *


Substances Limitations

* * * * * * *Hydrogen peroxide. Used in combination with acetic acid to form peroxyacetic acid. Not to exceed 59

ppm in wash water. Limited to use on fruits and vegetables that are not raw agri-cultural commodities.

Peroxyacetic acid. Prepared by reacting acetic acid with hydrogen peroxide. Not to exceed 80 ppm inwash water. Limited to use on fruits and vegetables that are not raw agriculturalcommodities.

* * * * * * *

* * * * *Dated: August 26, 1996.

Fred R. Shank,Director, Center for Food Safety and AppliedNutrition.[FR Doc. 96–22287 Filed 8–30–96; 8:45 am]BILLING CODE 4160–01–F

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706

Certifications and Exemptions Underthe International Regulations forPreventing Collisions at Sea, 1972;Amendment

AGENCY: Department of the Navy, DOD.ACTION: Final rule.

SUMMARY: The Department of the Navyis amending its certifications andexemptions under the InternationalRegulations for Preventing Collisions atSea, 1972 (72 COLREGS), to reflect thatthe Deputy Assistant Judge AdvocateGeneral (Admiralty) of the Navy hasdetermined that USS HOPPER (DDG 70)is a vessel of the Navy which, due to itsspecial construction and purpose,cannot fully comply with certainprovisions of the 72 COLREGS withoutinterfering with its special function as anaval ship. The intended effect of thisrule is to warn mariners in waters where72 COLREGS apply.EFFECTIVE DATE: August 1, 1996.FOR FURTHER INFORMATION CONTACT:Lieutenant M.W. Kerns, JAGC, U.S.Navy, Assistant Admiralty Counsel,Office of the Judge Advocate General,Navy Department, 200 Stovall Street,Alexandria, VA 22332–2400, Telephonenumber: (703) 325–9744.SUPPLEMENTARY INFORMATION: Pursuantto the authority granted in 33 U.S.C.1605, the Department of the Navyamends 32 CFR Part 706. Thisamendment provides notice that the

Deputy Assistant Judge AdvocateGeneral (Admiralty) of the Navy, underauthority delegated by the Secretary ofthe Navy, has certified that USSHOPPER (DDG 70) is a vessel of theNavy which, due to its specialconstruction and purpose, cannot fullycomply with the following specificprovisions of 72 COLREGS withoutinterfering with its special function as anaval ship: Annex I, paragraph 2(f)(i)pertaining to placement of the mastheadlight or lights above and clear of allother lights and obstructions; Annex I,paragraph 3(a) pertaining to the locationof the forward masthead light in theforward quarter of the vessel, and thehorizontal distance between the forwardand after masthead lights; and, Annex I,paragraph 3(c) pertaining to placementof task lights not less than two metersfrom the fore and aft centerline of theship in the athwartship direction. TheDeputy Assistant Judge AdvocateGeneral (Admiralty) has also certifiedthat the lights involved are located inclosest possible compliance with theapplicable 72 COLREGS requirements.

Moreover, it has been determined, inaccordance with 32 CFR Parts 296 and701, that publication of this amendmentfor public comment prior to adoption isimpracticable, unnecessary, andcontrary to public interest since it isbased on technical findings that theplacement of lights on this vessel in amanner differently from that prescribedherein will adversely affect the vessel’sability to perform its military functions.


Marine safety, Navigation (water), andVessels.

Accordingly, 32 CFR Part 706 isamended as follows:

PART 706—[AMENDED]

1. The authority citation for 32 CFRPart 706 continues to read:

Authority: 33 U.S.C. 1605.

2. Table Four, Paragraph 15 of § 706.2is amended by adding the followingentry:

§ 706.2 Certifications of the Secretary ofthe Navy under Executive Order 11964 and33 U.S.C. 1605.

* * * * *

Vessel Num-ber

Horizontaldistance

from the foreand aft cen-terline of thevessel in theathwartship

direction

* * * * *USS HOPPER ........ DDG

701.83 meters.

* * * * *

3. Table Four, Paragraph 16 of § 706.2is amended by adding the followingentry:

§ 706.2 Certifications of the Secretary ofthe Navy under Executive Order 11964 and33 U.S.C. 1605.

* * * * *

Vessel Num-ber

Obstructionangle rel-

ative ship’sheadings

* * * * *USS HOPPER ........ DDG

70102.25 thru112.50°

* * * * *

4. Table Five of § 706.2 is amended byadding the following entry:

§ 706.2 Certifications of the Secretary of theNavy under Executive Order 11964 and 33U.S.C. 1605.

* * * * *


TABLE FIVE

Vessel No.

Mastheadlights notover all

other lightsand ob-

structions.annex I,sec. 2(f)

Forwardmastheadlight not in

forwardquarter of

ship. annexI, sec. 3(a)

After mast-head light

less than 1⁄2ship’s

length aft offorward

mastheadlight. annexI, sec. 3(a)

Percentagehorizontalseparationattained

* * * * * * *USS HOPPER ......................................................................................... DDG70 X X X 20.4

* * * * * * *

Dated: August 1, 1996.M.W. Kerns,LT, JAGC, U.S. Navy, Acting Deputy AssistantJudge Advocate General (Admiralty).[FR Doc. 96–22288 Filed 8–30–96; 8:45 am]BILLING CODE 3810–FF–P

Department of the Air Force

32 CFR Part 801

Industrial Labor Relations Activities

AGENCY: Department of the Air Force,Department of Defense.ACTION: Final rule.

SUMMARY: The Department of the AirForce is removing the rule on IndustrialLabor Relations Activities because it haslimited applicability to the generalpublic. This action is the result ofdepartmental review. The intendedeffect is to ensure that only rules whichsubstantially affect the public aremaintained in the Air Force portion ofthe Code of Federal Regulations.EFFECTIVE DATE: September 3, 1996.FOR FURTHER INFORMATION CONTACT: MsPatsy Conner, Air Force Federal RegisterLiaison Officer, SAF/AAX, 1720 AirForce Pentagon, Washington DC 20330–1720.

SUPPLEMENTARY INFORMATION:


Equal employment opportunity,Federal buildings and facilities,Government contracts, Investigations,Labor unions, Military personnel.

PART 801—[REMOVED]

Accordingly under the authority 10U.S.C. 8013, 32 CFR Chapter VII isamended by removing Part 801.Patsy J. Conner,Air Force Federal Register Liaison Officer.[FR Doc. 96–22388 Filed 8–30–96; 8:45 am]BILLING CODE 3910–01–W

DEPARTMENT OF THE INTERIOR

National Park Service

36 CFR Part 7

RIN 1024–AC52

Lassen Volcanic National Park

AGENCY: National Park Service, Interior.ACTION: Final rule.

SUMMARY: The National Park Service(NPS) is removing the currentregulations concerning boating, fishingand limit of catch in Lassen VolcanicNational Park. With this deletion, thepark will allow for catch and releasefishing only, using a barbless hook,when fishing at Manzanita Lake. Theexisting regulation allows for the takingof native fish species (rainbow trout) inthis small fishery. The taking of thenative species has and would continueto adversely affect native speciescomposition if allowed to continue. TheNPS intends to maintain and, wherenecessary, restore the aquatic ecosystemto a natural state while allowingrecreational fishing to continue at levelsthat allow natural processes to continue.The park will continue to manageboating, a restricted fishing season,closed waters, limits of catch and thecatch and release program through theSuperintendent’s Compendium.EFFECTIVE DATE: This final rule becomeseffective on September 3, 1996.FOR FURTHER INFORMATION CONTACT:Gilbert E. Blinn, Lassen VolcanicNational Park, P.O. Box 100, Mineral,CA 96063.


Background

This final rule addresses a problemwhere a special park regulation (36 CFR7.11) was not removed at the timeimproved management means wereinstituted to manage boating, fishingand limit of catch at Lassen Volcanic

National Park. Operation of motorboatson all waters in the park and the closureto all vessels on four of the lakes withinthe park is now documented andaddressed in Superintendent’sCompendium under the authority foundat 36 CFR 1.5, Closures and public uselimits. Fishing restrictions on GrassyCreek during certain months of the year,and closure of certain other waters tofishing is also documented andaddressed in the Superintendent’sCompendium.

In 1976, fish stocking of ManzanitaLake was discontinued after 44 years ofalmost annual stocking due to the policyof the NPS to cease artificialmanagement of natural resources. In1982, due to observations that thefishery at Manzanita Lake wasdeclining, a fisheries study of the lakewas conducted. As a result of this study,two recommendations were made forManzanita Lake: (1) Reduce the currentlimit of 5 trout or 5 pounds and 1 trout,to 1 or 2 fish of 18 inches or more; or(2) designate the lake as catch andrelease only, using artificial lures andbarbless hooks. In 1984, the CaliforniaGame and Fish Commissionrecommended that the NPS adoptregulations for catch and release fishingonly using artificial lures with abarbless hook in Manzanita Lake.

In March of 1985, in order to restorenatural aquatic ecosystems whileallowing recreational fishing inManzanita Lake, the park adopted catchand release fishing with artificial luresand barbless hooks. This is addressed inthe Superintendent’s Compendium.

Other management optionsconsidered included leaving the currentregulation in place and returning tomore consumptive methods of fishing.Continuing fishery studies and publiccomment favor the catch and releasefishing method. Closures andrestrictions are documented andaddressed in the Superintendent’s


Compendium and need not be repeatedin the special regulations.

The deletion of the existing ruleallows the park to continue to restorethe natural aquatic ecosystem whileallowing recreational fishing in all parkwaters. Closures and restrictions havebeen in place in the park for over 20years and are fully accepted andsupported by the visiting public and theState of California.

Administrative Procedure ActIn accordance with the

Administrative Procedure Act (5 U.S.C.553(b)(B)), the NPS is promulgating thisrule under the ‘‘good cause’’ exceptionof the Act from general notice andcomment rulemaking. As discussedabove, the NPS believes this exceptionis warranted because the existingregulations are no longer used and havenot been used for over 20 years. Thisfinal rule will not impose any additionalrestrictions on the public and commentson this rule are deemed unnecessary.Based upon this discussion, the NPSfinds pursuant to 5 U.S.C. 533(b)(B) thatit would be contrary to the publicinterest to publish this rule throughgeneral notice and commentrulemaking.

The NPS also believes that publishingthis final rule 30 days prior to the rulebecoming effective would becounterproductive and unnecessary forthe reasons discussed above. A 30-daydelay in this instance would beunnecessary and contrary to the publicinterest. Therefore, under the ‘‘goodcause’’ exception of the AdministrativeProcedure Act (5 U.S.C. 553(d)(3)), ithas been determined that this finalrulemaking is excepted from the 30-daydelay in the effective date and willtherefore become effective on the datepublished in the Federal Register.

Drafting InformationThe primary authors of this rule are

Bryan Swift, Chief Ranger of LassenVolcanic National Park, and DennisBurnett, Washington Office of RangerActivities, National Park Service.

Paperwork Reduction ActThis final rule does not contain

collections of information requiringapproval by the Office of Managementand Budget under the PaperworkReduction Act of 1995.

Compliance With Other LawsThis rule was not subject to Office of

Management and Budget review underExecutive Order 12866. The Departmentof the Interior determined that thisdocument will not have a significanteconomic effect on a substantial number

of small entities under the RegulatoryFlexibility Act (5 U.S.C. 601 et seq.).The economic effects of this rulemakingare local in nature and negligible inscope.

The NPS has determined and certifiespursuant to the Unfunded MandatesReform Act (2 U.S.C. 1502 et seq.), thatthis rule will not impose a cost of $100million or more in any given year onlocal, State or tribal governments orprivate entities.

The NPS has determined that this rulewill not have a significant effect on thequality of the human environment,health and safety because it is notexpected to:

(a) Increase public use to the extent ofcomprising the nature and character ofthe area or causing physical damage toit;

(b) Introduce non-compatible usesthat may compromise the nature andcharacteristics of the area, or causephysical damage to it;

(c) Conflict with adjacent ownershipsor lands uses; or

(d) Cause a nuisance to adjacentowners or occupants.

Based upon this determination, thisfinal rule is categorically excluded fromthe procedural requirements of theNational Policy Act (NEPA) byDepartmental regulations in 516 DM 6(49 FR 21438). As such, neither anEnvironmental Assessment (EA) nor anEnvironmental Impact Statement (EIS)has been prepared.


National parks, Reporting andrecordkeeping requirements.

In consideration of the foregoing, 36CFR Chapter I is amended as follows:

PART 7—SPECIAL REGULATIONS,AREAS OF THE NATIONAL PARKSYSTEM

1. The authority citation for Part 7continues to read as follows:

Authority: 16 U.S.C. 1, 3, 9a, 460(q),462(k); Sec. 7.96 also issued under D.C. Code8–137 (1981) and D.C. Code 40–721 (1981).

§ 7.11 [Removed]

2. Section 7.11 is removed.

Dated: August 15, 1996.George T. Frampton, Jr.,Assistant Secretary for Fish and Wildlife andParks.[FR Doc. 96–22331 Filed 8–30–96; 8:45 am]BILLING CODE 4310–70–P

ENVIRONMENTAL PROTECTIONAGENCY

40 CFR Part 261

[SW–FRL–5602–6]

Hazardous Waste ManagementSystem; Identification and Listing ofHazardous Waste; Final Exclusion

AGENCY: Environmental ProtectionAgency.ACTION: Final rule.

SUMMARY: The Environmental ProtectionAgency (EPA) today is granting apetition submitted by Giant RefiningCompany (Giant) to exclude fromhazardous waste control (delist) certainsolid wastes. The wastes being delistedconsist of excavated soils contaminatedwith K051 currently being stored in anon-site waste pile. This action respondsto Giant’s petition to delist these wasteson a one-time basis from the hazardouswaste lists. After careful analysis, EPAhas concluded that the petitioned wasteis not hazardous waste when disposedof in Subtitle D landfills. This exclusionapplies only to excavated soilsgenerated at Giant’s Bloomfield, NewMexico facility. Accordingly, this finalrule excludes the petitioned waste fromthe requirements of hazardous wasteregulations under the ResourceConservation and Recovery Act (RCRA)when disposed of in Subtitle D landfills.EFFECTIVE DATE: September 3, 1996.ADDRESSES: The public docket for thisfinal rule is located at theEnvironmental Protection AgencyRegion 6, 1445 Ross Avenue, Dallas,Texas 75202, and is available forviewing in the EPA Library of the 12thfloor from 9:00 a.m. to 4:00 p.m.,Monday through Friday, excludingFederal holidays. Call (214) 665–6444for appointments. The reference numberfor this docket is ‘‘F–96–NMDEL-GIANT.’’ The public may copy materialfrom any regulatory docket at no cost forthe first 100 pages and at a cost of $0.15per page for additional copies.FOR FURTHER INFORMATION CONTACT: Forgeneral and technical informationconcerning this document, contactMichelle Peace, EnvironmentalProtection Agency, 1445 Ross Avenue,Dallas, Texas, (214) 665–7430.


I. Background

A. Authority

Under 40 CFR 260.20 and 260.22,facilities may petition EPA to removetheir wastes from hazardous wastecontrol by excluding them from the lists


of hazardous wastes contained in§§ 261.31 and 261.32. Specifically,§ 260.20 allows any person to petitionthe Administrator to modify or revokeany provision of Parts 260 through 265and 268 of Title 40 of the Code ofFederal Regulations; and § 260.22provides generators the opportunity topetition the Administrator to exclude awaste on a ‘‘generator-specific’’ basisfrom the hazardous waste lists.Petitioners must provide sufficientinformation to EPA to allow EPA todetermine that the waste to be excludeddoes not meet any of the criteria underwhich the waste was listed as ahazardous waste. In addition, theAdministrator must determine, wherehe/she has a reasonable basis to believethat factors (including additionalconstituents) other than those for whichthe waste was listed could cause thewaste to be a hazardous waste, that suchfactors do not warrant retaining thewaste as a hazardous waste.

B. History of This RulemakingGiant petitioned EPA to exclude from

hazardous waste control the excavatedsoils contaminated with K051–APIseparator sludge waste presently storedin an on-site waste pile at Bloomfield,New Mexico facility. After evaluatingthe petition, EPA proposed, on May 20,1996 to exclude Giant’s waste from thelists of hazardous wastes under§§ 261.31 and 261.32 (See 61 FR 25175).This rulemaking addresses publiccomments received on the proposal andfinalizes the proposed decision to grantGiant’s petition.

II. Disposition of PetitionGiant Refining Company, Bloomfield,

New Mexico

A. Proposed ExclusionGiant petitioned EPA to exclude from

the lists of hazardous wastes containedin 40 CFR 261.31 and 261.32, a discretevolume of contaminated soil excavatedfrom its wastewater treatmentimpoundments. Specifically, in itspetition, Giant requested that EPA granta one-time exclusion for 2,000 cubicyards of excavated soil presently storedin an on-site waste pile. The soil isclassified as EPA Hazardous Waste No.K051—‘‘API separator sludge from thepetroleum refining industry.’’ The listedconstituents of concern for EPAHazardous Waste No. K051 arehexavalent chromium and lead (see Part261, Appendix VII). Giant petitioned theEPA to exclude this discrete volume ofexcavated soil because it does notbelieve that the waste meets the criteriafor which it was listed. Giant alsobelieves that the waste does not contain

any other constituents that wouldrender it hazardous. Review of thispetition included consideration of theoriginal listing criteria, as well as theadditional factors required by theHazardous and Solid WasteAmendments (HSWA) of 1984. SeeSection 222 of HSWA, 42 U.S.C. 6921(f),and 40 CFR 260.22(d) (2)–(4).

In support of its petition, Giantsubmitted: (1) descriptions of itswastewater treatment processes and theexcavation activities associated with thepetitioned waste; (2) results from totalconstituent analyses for the eightToxicity Characteristic (TC) metalslisted in § 261.24 (i.e., the TC metals)antimony, beryllium, cyanide, nickel,vanadium, and zinc from representativesamples of the stockpiled waste; (3)results from the Toxicity CharacteristicLeaching Procedure (TCLP, SW–846Method 1311) for the eight TC metals,antimony, beryllium, cyanide, nickel,vanadium, and zinc from representativesamples of the stockpiled waste; (4)results from the Oily Waste ExtractionProcedure (OWEP, SW–846 Method1330) for the eight TC metals, antimony,beryllium, nickel, vanadium, and zincfrom representative samples of thestockpiled waste; (5) results from theExtraction Procedure Toxicity Test (EP,SW–846 Method 1310) for the eightmetals listed in § 261.24 fromrepresentative samples of the stockpiledwaste; (6) results from total oil andgrease analyses from representativesamples of the stockpiled waste; (7) testresults and information regarding thehazardous characteristics of ignitability,corrosivity, and reactivity; and (8)results from total constituent and TCLPanalyses for certain volatile and semi-volatile organic compounds fromrepresentative samples of the stockpiledwaste.

B. Summary of Responses to PublicComments

The EPA received public comment onthe May 20, 1996, proposal from twointerested parties, the American ZincAssociation (AZA) and HorseheadResource Development Company (HRD).The comments consisted of the concernthat zinc is incorrectly viewed as ahazardous constituent to which the EPAComposite Model for Landfills(EPACML) must be applied and theneed to evaluate delisting decisions inrelation to the Pollution Prevention Actand the Land Disposal Restrictions.

Classification of Zinc as a HazardousConstituent

Comment: The AZA is concernedthat, for some reason, EPA inconnection with the delisting petition

filed by Giant Refining Companyappears to view zinc as a ‘‘hazardousconstituent’’ to which the EPACMLmust be applied. The AZA contendsthat zinc is not considered a ‘‘hazardousconstituent’’ as defined under RCRA, isnot listed on Appendix VIII to 40 CFRPart 261 and is specifically excludedfrom the definition of ‘‘underlyinghazardous constituents’’ in 40 CFR268.2 (i). The AZA requests that thefinal rule be changed to exclude zinc.

Response: The criteria for making asuccessful petition to amend Part 261 toexclude a waste produced at a particularfacility can be found in 40 CFR Part260.22. The regulations in 40 CFR Part260.22(a)(2) states that based on acomplete application, the Administratormust determine where there is areasonable basis to believe that factors(including additional constituents) otherthan those for which the waste waslisted could cause the waste to be ahazardous waste, that such factors donot warrant retaining the waste as ahazardous waste.

The EPA understands the AZA’sconcern regarding implication that zincis being viewed as a ‘‘hazardousconstituent’’ in this delisting petition. Inresponse to this concern, EPA willrevise the preamble language to futurerulemakings to read that ‘‘ the EPACMLwill be used to predict theconcentrations of constituents that maybe released from the petitioned waste,once it is disposed.’’ To evaluatedelisting petitions, any constituentdetected in the leachate of thepetitioned waste must be evaluated bythe EPACML. All organic and inorganicconstituents detected in the leachate ofa petitioned waste are evaluated fortheir potential hazard to human healthand the environment. Zinc, while it maynot meet the definitions of hazardousconstituent or ‘‘underlying hazardousconstituent’’ as defined under the LandDisposal Restrictions, is a constituentfound in Giant Refining’s waste andmoreover, in the leachate of thepetitioned waste. Therefore, to meet thedelisting criteria, zinc must be evaluatedto determine if as a result of leachinginto the groundwater the concentrationof zinc would pose a hazard to humanhealth or the environment.

In the analysis of the leachate fromGiant’s waste, levels of zinc weredetected and the maximum value isreported on the list of inorganicconstituents found in Table 1 of the May20, 1996, notice. The evaluation of zincas an ‘‘additional constituent’’ isconducted and compared to its health-based value and the secondary drinkingwater regulations to determine whetherthe levels of zinc detected could cause


the waste to be a potential hazard. In thecase of Giant’s waste, the value for zincis below the level of regulatory concernand should not present a hazard tohuman health or the environment.

Impact of This Delisting Upon Recyclingof K051

Comment: The commenter did notobject to the proposed decision to delistGiant’s waste, since the constituentlevels in the waste were low enoughthat HRD did not feel that any statutorymandates were violated. The commentersummarized two principal statutoryrequirements that HRD feels must beaccounted for in order for any delistingdecision to be valid:

(a) The Pollution Prevention Act of1990 established a hierarchy of wastemanagement methods, in order ofdecreasing preference as: (1) sourcereduction, (2) recycling, (3) treatment,and (4) land disposal. The commenteremphasized that recycling, such as hightemperature metal recovery, is favoredover waste treatment methods, such asstabilization. The commenter also statedthat the low levels of metals in thepetitioned waste were not amenable torecycling; and

(b) The Land Disposal Restrictions(LDR) of RCRA include stringenttreatment standards which must be metprior to land disposal of hazardouswastes. The commenter felt that LDRtreatment standards should be one ofthe ‘‘factors (including additionalconstituents) other than those for whichthe waste was listed’’ that could causethe waste to be a hazardous waste or tobe retained as a hazardous waste (see 40CFR 260.22(d)(2)). Again, thecommenter did not feel that theconstituent levels in the petitionedwaste were high enough to exceed LDRtreatment standards.

Response: The EPA agrees with thecommenter that the statutory mandatessummarized above are very importantconsiderations. The EPA also agrees thatthe decision to delist the waste whichis the subject of this final rule is not inconflict with either of these mandates.It is also EPA’s position that if theevaluation of a delisting petition revealsthat the petitioned waste meets all theappropriate criteria in Petitions to DelistHazardous Wastes—A GuidanceManual, Second Edition, EPAPublication No. EPA/530–R–93–007,March 1993, the conditions specified in40 CFR 260.22(d)(2) have been met, andthe waste need not be subject to RCRASubtitle C. That is to say, the delistinglevels established by EPA are protectiveof human health and the environment,and a waste that meets these levels doesnot have factors that ‘‘could cause the

waste to be a hazardous waste.’’ ManyLDR treatment standards areconcentration levels below those thatwould be protective of human healthand the environment, because they arebased on what is technologicallyachievable, rather than on risk.

The EPA has responded, in an earlierrulemaking, to similar comment by HRDconcerning the effect that delistingstabilized wastes might have on therecycling of wastes to recover metals(see 60 FR 31109, June 13, 1995). TheEPA’s position continues to be that nopolicies are undermined nor regulationsviolated by the delisting of a wastewhich meets all applicable criteria fordelisting. Specifically, the existence ofan alternate treatment and/or recyclingtechnology is not a factor that ‘‘couldcause the waste to be a hazardouswaste.’’

C. Final Agency DecisionFor reasons stated in both the

proposal and this document, EPAbelieves that Giant’s excavated soilshould be excluded from hazardouswaste control. The EPA, therefore, isgranting a final exclusion to GiantRefining Company, Bloomfield, NewMexico for its 2,000 cubic yards ofexcavated soil, described in its petitionas EPA Hazardous Waste No. K051. Thisexclusion only applies to the wastedescribed in the petition. The maximumvolume of contaminated soil covered bythis exclusion is 2,000 cubic yards.

Although management of the wastecovered by this petition is relieved fromSubtitle C jurisdiction, the generator ofthe delisted waste must either treat,store, or dispose of the waste in an on-site facility, or ensure that the waste isdelivered to an off-site storage,treatment, or disposal facility, either ofwhich is permitted, licensed orregistered by a State to managemunicipal or industrial solid waste.Alternatively, the delisted waste may bedelivered to a facility that beneficiallyuses or reuses, or legitimately recyclesor reclaims the waste, or treats the wasteprior to such beneficial use, reuse,recycling, or reclamation (see 40 CFRpart 260, Appendix I).

III. Limited Effect of Federal ExclusionThe final exclusion being granted

today is issued under the Federal(RCRA) delisting program. States,however, are allowed to impose theirown, non-RCRA regulatoryrequirements that are more stringentthan EPA’s, pursuant to section 3009 ofRCRA. These more stringentrequirements may include a provisionwhich prohibits a Federally-issuedexclusion from taking effect in the State.

Because a petitioner’s waste may beregulated under a dual system (i.e., bothFederal (RCRA) and State (non-RCRA)programs), petitioners are urged tocontact the State regulatory authority todetermine the current status of theirwastes under the State law.

Furthermore, some States (e.g.,Louisiana, Georgia, Illinois) areauthorized to administer a delistingprogram in lieu of the Federal program,i.e., to make their own delistingdecisions. Therefore, this exclusiondoes not apply in those authorizedStates. If the petitioned waste will betransported to and managed in any Statewith delisting authorization, Giant mustobtain delisting authorization from thatState before the waste can be managedas non-hazardous in the State.

IV. Effective DateThis rule is effective September 3,

1996. The Hazardous and Solid WasteAmendments of 1984 amended Section3010 of RCRA to allow rules to becomeeffective in less than six months whenthe regulated community does not needthe six-month period to come intocompliance. That is the case herebecause this rule reduces, rather thanincreases, the existing requirements forpersons generating hazardous wastes.These reasons also provide a basis formaking this rule effective immediately,upon publication, under theAdministrative Procedure Act, pursuantto 5 U.S.C. 553(d).

V. Regulatory ImpactUnder Executive Order 12866, EPA

must conduct an ‘‘assessment of thepotential costs and benefits’’ for all‘‘significant’’ regulatory actions. Theeffect of this rule is to reduce the overallcosts and economic impact of EPA’shazardous waste managementregulations. The reduction is achievedby excluding waste from EPA’s lists ofhazardous wastes, thereby enabling afacility to treat its waste as non-hazardous. As discussed in EPA’sresponse to public comments, this ruleis unlikely to have an adverse annualeffect on the economy of $100 millionor more. Therefore, this rule does notrepresent a significant regulatory actionunder the Executive Order, and noassessment of costs and benefits isnecessary. The Office of Managementand Budget (OMB) has exempted thisrule from the requirement for OMBreview under Section (6) of ExecutiveOrder 12866.

VI. Regulatory Flexibility ActPursuant to the Regulatory Flexibility

Act, 5 U.S.C. §§ 601–612, whenever anagency is required to publish a general


notice of rulemaking for any proposedor final rule, it must prepare and makeavailable for public comment aregulatory flexibility analysis whichdescribes the impact of the rule on smallentities (i.e., small businesses, smallorganizations, and small governmentaljurisdictions). No regulatory flexibilityanalysis is required, however, if theAdministrator or delegatedrepresentative certifies that the rule willnot have any impact on any smallentities.

This regulation will not have anadverse impact on any small entitiessince its effect will be to reduce theoverall costs of EPA’s hazardous wasteregulations. Accordingly, I herebycertify that this regulation will not havea significant economic impact on asubstantial number of small entities.This regulation, therefore, does notrequire a regulatory flexibility analysis.

VII. Paperwork Reduction Act

Information collection andrecordkeeping requirements associatedwith this final rule have been approvedby OMB under the provisions of thePaperwork Reduction Act of 1980 (Pub.L. 96–511, 44 U.S.C. 3501 et seq.) andhave been assigned OMB ControlNumber 2050–0053.

VIII. Unfunded Mandates Reform Act

Under section 202 of the UnfundedMandates Reform Act of 1995 (UMRA),Pub. L. 104–4, which was signed into

law on March 22, 1995, EPA generallymust prepare a written statement forrules with Federal mandates that mayresult in estimated costs to State, local,and tribal governments in the aggregate,or to the private sector, of $100 millionor more in any one year. When such astatement is required for EPA rules,under section 205 of the UMRA, EPAmust identify and consider alternatives,including the least costly, most cost-effective or least burdensome alternativethat achieves the objectives of the rule.The EPA must select that alternative,unless the Administrator explains in thefinal rule why it was not selected or itis inconsistent with law. Before EPAestablishes regulatory requirements thatmay significantly or uniquely affectsmall governments, including tribalgovernments, it must develop undersection 203 of the UMRA a smallgovernment agency plan. The plan mustprovide for notifying potentiallyaffected small governments, giving themmeaningful and timely input in thedevelopment of EPA regulatoryproposals with significant Federalintergovernmental mandates, andinforming, educating, and advising themon compliance with the regulatoryrequirements.

The UMRA generally defines aFederal mandate for regulatory purposesas one that imposes an enforceable dutyupon State, local, or tribal governmentsor the private sector. The EPA finds thattoday’s delisting decision is

deregulatory in nature and does notimpose any enforceable duty on anyState, local, or tribal governments or theprivate sector. In addition, today’sdelisting decision does not establish anyregulatory requirements for smallgovernments and so does not require asmall government agency plan underUMRA section 203.


Environmental protection, Hazardouswaste, Recycling, Reporting andrecordkeeping requirements.

Authority: Sec. 3001(f) RCRA, 42 U.S.C.6921(f).

Dated: August 21, 1996.Jane N. Saginaw,Regional Administrator.

For the reasons set out in thepreamble, 40 CFR Part 261 is amendedas follows:

PART 261—IDENTIFICATION ANDLISTING OF HAZARDOUS WASTE


Authority: 42 U.S.C. 6905, 6912(a), 6921,6922, and 6938.

2. In Table 2 of Appendix IX, Part 261add the following waste stream inalphabetical order by facility to read asfollows:

Appendix IX—Wastes Excluded Under§§ 260.20 and 260.22

TABLE 2.—WASTES EXCLUDED FROM SPECIFIC SOURCES

Facility Address Waste description

* * * * * * *Giant Refining Company, Inc .......... Bloomfield, New Mexico ............. Waste generated during the excavation of soils from two wastewater

treatment impoundments (referred to as the South and North OilyWater Ponds) used to contain water outflow from an API separator(EPA Hazardous Waste No. K051). This is a one-time exclusion forapproximately 2,000 cubic yards of stockpiled waste. This exclusionwas published on September 3, 1996.

Notification Requirements: Giant Refining Company must provide aone-time written notification to any State Regulatory Agency to whichor through which the delisted waste described above will be trans-ported for disposal at least 60 days prior to the commencement ofsuch activities. Failure to provide such a notification will result in aviolation of the delisting petition and a possible revocation of the de-cision.

* * * * * * *


[FR Doc. 96–22377 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–P


Health Care Financing Administration

42 CFR Part 417

[OMC–010–FC]

RIN 0938–AF74

Medicare and Medicaid Programs;Requirements for Physician IncentivePlans in Prepaid Health CareOrganizations

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Final rule correction; Notice ofchanges in compliance dates, withcomment period.

SUMMARY: In the March 27, 1996, issueof the Federal Register, we published, at61 FR 13430, a final rule with commentperiod that implements requirements insections 4204(a) and 4731 of theOmnibus Budget Reconciliation Act of1990 that concern physician incentiveplans. In the preamble of that rule, weset forth dates by which prepaid healthplans had to comply with certain of therule’s provisions. This documentclarifies and changes some of thosedeadlines, and provides an opportunityfor public comments on them. It doesnot otherwise change the requirementsset forth in the rule.

In addition this document corrects theMarch 27 rule’s inadvertent reversal ofthe nomenclature change made by aprevious final rule.DATES: Effective date: September 3,1996.

Comment dates: Comments on thedecision to change the compliance datespublished in the March 27, 1996preamble will be considered if receivedat the appropriate address providedbelow, no later than 5 p.m. onNovember 4, 1996.ADDRESSES: Mail written comments (1original and 3 copies) to the followingaddress: Health Care FinancingAdministration, Department of Healthand Human Services, Attention: OMC–010–CN, 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 IndependenceAvenue, SW., Washington, DC 20201, orRoom C5–09–26, 7500 SecurityBoulevard, Baltimore, MD 21244–1850.

Because of staffing and resourcelimitations, we cannot accept commentsby facsimile (FAX) transmission. Incommenting, please refer to file codeOMC–010–CN. Comments receivedtimely will be available for publicinspection as they are received,generally beginning approximately 3weeks after publication of a document,in Room 309–G of the Department’soffices at 200 Independence Avenue,SW., Washington, DC, on Mondaythrough Friday of each week from 8:30a.m. to 5 p.m. (phone: (202) 690–7890).FOR FURTHER INFORMATION CONTACT:Medicare: Tony Hausner, (410) 786–1093. Medicaid: Beth Sullivan, (410)786–4596.


I. Change in Compliance DatesThe preamble for the March 27, 1996,

rule (61 FR 13430) stated that theregulation was effective on April 26,1996. The preamble also set forth a setof ‘‘compliance dates,’’ by which timesthe prepaid health plans affected by theregulation would be required to havetaken actions to be in compliance withthe regulation. These dates varied,depending on the specific requirementsof the regulations. They also varieddepending on whether the prepaidhealth plan had a contract withMedicare or Medicaid in place onMarch 27, 1996, or entered into itsinitial contract at a later date.

These compliance dates ranged froma date certain—May 28, 1996—to a datedetermined by when the prepaid healthplan applied for a contract, renewed anexisting contract, or took other actionsspecified in the regulation. For example,most of the requirements that prepaidhealth plans disclose specified elementsof information to us would becomeapplicable by May 28, 1996, or by therenewal date of the plan’s contract withus, whichever is later. Since allMedicare risk contracts with prepaidhealth plans are put on a January 1renewal cycle, this meant that, forpractical purposes, these requirementswould all become effective on January 1,1997.

The explanation of these compliancedates in the March 27, 1996, preamble,however, was not sufficientlycomprehensive and unambiguous to befully understood. There has beenconsiderable confusion, doubt, andmisunderstanding about them,particularly with respect to theirapplicability to new contracts enteredinto subsequent to March 27, 1996. It isalso now apparent that some of thecompliance dates were clearlyimpracticable. Most notably, the

regulation requires plans, under certaincircumstances, to obtain ‘‘stop-loss’’insurance; the compliance date set forthfor doing so was May 28, 1996. This wasnot only unrealistic, but it was alsoinconsistent with the related disclosurerequirements that would not go intoeffect until January 1, 1997, and withthe wording in the congressionalauthorizing legislation stating that thelaw should become effective with thestart of a contract year. We notifiedprepaid health plans on May 28 that thisrequirement would not be enforcedbefore January 1, 1997.

Because of these difficulties with thecompliance dates set forth in the March27 publication, we have decided tosimplify and clarify all of thecompliance dates. Stated in generalterms, the compliance date for allprovisions (other than the twoexceptions noted below) is now the firstrenewal date falling on or after January1, 1997, or the effective date of a newcontract or agreement having aneffective date on or after January 1,1997. To explain how this statementapplies to contracts and agreementshaving various renewal dates oreffective dates, and how it appliesdifferently to Medicare contracts and toMedicaid contracts or agreements, weprovide the following details:

• For all affected health maintenanceorganizations (HMOs), competitivemedical plans (CMPs), and healthinsuring organizations (HIOs) that havecontracts or agreements with HCFA orState Medicaid Agencies in effect on thedate of this notice, the March 27, 1996,regulation becomes applicable(according to the terms set forth in theregulation) at the time the contract oragreement is next renewed on or afterJanuary 1, 1997. For all plans withMedicare risk contracts, this means thecompliance date is January 1, 1997,since that is uniformly the renewal datefor all risk contracts. That is also therenewal date for the majority ofMedicare cost contracts, although thereare a few for which the renewal datewill occur later in 1997, at which timethis regulation becomes applicable tothem. Medicaid agreements havevarying dates for renewal and some ofthem are written as multi-yearagreements. For Medicaid agreements,compliance is required for all plans ata date during calendar year 1997. Thatdate is the date on which the agreementis renewed or, in the case of multi-yearagreements, the anniversary date of theeffective date of the agreement.

• For all affected HMOs and CMPsthat enter into Medicare contractsbetween the date of this notice and theend of calendar year 1996, the


compliance date is January 1, 1997. ForHMOs and HIOs entering into Medicaidcontracts or agreements during thisperiod, the regulation becomesapplicable on the first anniversary datein 1997 of the effective date of theircontract or agreement.

• For all affected HMOs, CMPs, andHIOs that enter into contracts oragreements on or after January 1, 1997,whether for Medicare or Medicaid, theregulation becomes applicable on theeffective date of the contract oragreement.

There are two exceptions to thegeneral rule set forth above:

• The requirement in § 417.479(g)(1)that surveys be conducted of planenrollees and disenrollees underspecified circumstances must be metwithin 1 year of the compliance date forthe plan in question, as set forth above.This allows affected HMOs, CMPs, andHIOs discretion on the timing of thesurvey and permits them to combine itwith a survey they may already beconducting and to survey all theenrollees in their sample at the sametime.

• The requirement in§ 417.479(h)(1)(vi) that plans disclosecapitation payments for the most recentyear must be met, by all plans withcontracts or agreements in effect onDecember 31, 1996, by April 1, 1997,disclosing information for calendar year1996. Plans with new agreements on orafter January 1, 1997, must comply byApril 1 of the first year after the year ofthe effective date, disclosing data for thecalendar year of the effective date.

II. Other Provisions of the March 27Regulation

This document does not address anyof the requirements set forth in theMarch 27, 1996, final rule other than thecompliance dates. All of the obligationsof prepaid plans set forth in theregulation remain intact. The March 27,1996, rule provided a 60-dayopportunity for comment. We havereceived a variety of comments inresponse to it. We will be publishing adocument in the Federal Register later,evaluating and responding to thesecomments. In the meantime, prepaidplans affected by this regulation shouldbe making arrangements to comply withthe requirements as set forth on March27, in accordance with the compliancedates established in this document.

III. Technical Corrections inNomenclature

The March 27 rule inadvertentlyreversed a nomenclature change that aprevious final rule identified as OCC–015 (published on July 15, 1993, at 58

FR 134) had made throughout part 417.This document corrects the oversight byrestoring the precise terms ‘‘HMO’’ and‘‘CMP’’ that are currently usedthroughout part 417 instead of thegeneric ‘‘organization’’.

IV. Waiver of Prior Notice andComment

Changes in final regulations areordinarily published in proposed formto provide for a period of publiccomment prior to the change takingeffect. However, we may waive thisprocedure if we find good cause thatprior notice and comment areimpractical, unnecessary, or contrary topublic interest. We find good cause toimplement the changes made in thisnotice without prior notice andcomment because the delay in priornotice and comment would beimpractical and contrary to the publicinterest. As set forth above, we do notbelieve that it would be reasonable toexpect HMOs, CMPs, and HIOs to be incompliance with the requirements thatthe final rule indicated these entitieswere required to comply with by May28, 1996. We have alreadycommunicated with affected entities thefact that we were planning to publish anotice changing these compliance datesand would not take enforcement actionsunder the regulations pending thischange. We believe that it is not in thepublic interest for regulatorycompliance obligations to be imposedunder a timeframe that both the entitiesaffected and we believe to beunreasonable and impractical. Given thefact that some of these complianceobligations have already taken effect, webelieve that it would be impractical toleave these obligations in place pendinga public notice and comment process.

Corrections

§ 417.479 [Corrected]

1. On page 13446, column 3, in§ 417.479(a) introductory text,‘‘organization’’ is revised to read ‘‘HMOor CMP’’.

2. On page 13447, column 1, inparagraph (b), ‘‘eligible organizations’’ isrevised to read ‘‘HMOs and CMPs’’; inthe definitions in paragraph (c) of‘‘bonus’’, ‘‘payments’’, and ‘‘physicianincentive plan’’, ‘‘organization’’,wherever it appears, is revised to read‘‘HMO or CMP’’, and in the definitionof ‘‘payments’’, ‘‘this subpart’’ is revisedto read ‘‘this section’’.

3. On page 13447, column 2, in thedefinition of ‘‘withhold’’,‘‘organization’’ is revised to read ‘‘HMOor CMP’’, and in paragraph (d),

‘‘organization’s’’ is revised to read‘‘HMO’s or CMP’s’’.

4. On page 13447, column 3, inparagraph (g) introductory text,‘‘organizations’’ is revised to read‘‘HMOs and CMPs’’, and in paragraph(g)(1)(i), ‘‘organization’’ is revised toread ‘‘HMO or CMP’’, and‘‘organization’s’’ is revised to read‘‘HMO’s or CMP’s’’.

5. On page 13448, column 1, inparagraph (g)(2)(ii) introductory text andparagraph (g)(2)(iii), ‘‘organization’’,wherever it appears, is revised to read‘‘HMO or CMP’’, and in paragraphs(h)(1) introductory text and (h)(1)(v)(B),‘‘organization’’ is revised to read ‘‘HMOor CMP’’.

6. On page 13448, column 2, inparagraphs (h)(2)(i) introductory text,(h)(2)(ii) introductory text, (h)(3)introductory text, and paragraph (i)(1)introductory text, ‘‘organization’’ isrevised to read ‘‘HMO or CMP’’.

7. On page 13448, column 3, inparagraph (i)(2) introductory text, andthe heading of paragraph (j),‘‘organization’’ is revised to read ‘‘HMOor CMP’’, and in the text of paragraph(j), ‘‘eligible organization’’ is revised toread ‘‘HMO or CMP’’.(Catalog of Federal Domestic AssistanceProgram No. 93.733—Medicare—HospitalInsurance Program; No. 93.774—MedicareSupplementary Medical Insurance Program;No. 93.778—Medical Assistance Program)

Dated: August 4, 1996.Bruce C. Vladeck,Administrator, Health Care FinancingAdministration.

Dated: August 14, 1996.Donna E. Shalala,Secretary.[FR Doc. 96–22147 Filed 8–30–96; 8:45 am]BILLING CODE 4120–01–P

DEPARTMENT OF TRANSPORTATION

National Highway Traffic SafetyAdministration

49 CFR Part 583

[Docket No. 92–64; Notice 9]

RIN 2127–AG46

Motor Vehicle Content Labeling

AGENCY: National Highway TrafficSafety Administration (NHTSA),Department of Transportation (DOT).ACTION: Temporary final rule; Requestfor comments.

SUMMARY: Under NHTSA’s contentlabeling program, passenger motorvehicles (passenger cars and other lightvehicles) are required to be labeled with


information about their domestic andforeign parts content. In response topetitions for rulemaking submitted bythe American AutomobileManufacturers Association and GeneralMotors, the agency is making a limited,temporary amendment to its contentcalculation procedures to providevehicle manufacturers added flexibilityin making content determinations whereoutside suppliers have not responded torequests for content information. Thisflexibility will only be available for upto 10 percent, by value, of a carline’stotal parts content from outsidesuppliers, and only for carlines offeredfor sale prior to January 1, 1997. It willalso only be available wheremanufacturers or allied suppliers havemade a good faith effort to obtain theinformation. The agency is requestingcomments on whether to provide this orsimilar added flexibility for a longerperiod of time.DATES: Effective date: The amendmentsmade by this temporary rule areeffective September 3, 1996.

Comments: Comments must bereceived on or before October 3, 1996.ADDRESSES: Comments should refer tothe docket and notice number of thisnotice and be submitted to: DocketSection, Room 5109, National HighwayTraffic Safety Administration, 400Seventh Street, SW., Washington, DC20590. (Docket Room hours are 9:30a.m.–4 p.m., Monday through Friday.)FOR FURTHER INFORMATION CONTACT: Fornon-legal issues: Mr. Orron Kee, Officeof Planning and Consumer Programs,National Highway Traffic SafetyAdministration, 400 Seventh Street,SW., Washington, DC 20590 (202–366–0846).

For legal issues: Mr. J. EdwardGlancy, Office of Chief Counsel,National Highway Traffic SafetyAdministration, 400 Seventh Street,SW., Washington, DC 20590 (202–366–2992).


BackgroundOn July 21, 1994, NHTSA published

in the Federal Register (59 FR 37294) anew regulation, 49 CFR Part 583,Automobile Parts Content Labeling, toimplement the American AutomobileLabeling Act (Labeling Act). That Act,which is codified at 49 U.S.C. 32304,requires passenger motor vehicles to belabeled with information about theirdomestic and foreign parts content.Interested persons are encouraged toread the July 1994 notice for a detailedexplanation of this program.

NHTSA received several petitions forreconsideration of the July 1994 final

rule, and has subsequently publishedthree notices addressing issues raised inthose or subsequent petitions. In a finalrule published in the Federal Register(60 FR 14228) on March 16, 1995,NHTSA partially responded to thepetitions for reconsideration byextending, for an additional year, atemporary alternative approach for datacollection and calculations. This option,which ceased to be available effectiveJune 1, 1996, permitted manufacturersand suppliers to use procedures that areexpected to yield similar results to thefull procedures set forth in Part 583.NHTSA provided this temporaryalternative approach in the 1994 finalrule because there was insufficientremaining time, before the statutory datefor beginning to provide labelinginformation, for manufacturers tocomplete the full procedures. Theagency provided the one-year extensionof the temporary approach in light of asubstantial number of complex issuesraised about the full procedures in thepetitions for reconsideration and thetime needed by the agency to addressthose issues.

The agency completed its response tothe initial set of petitions in a final rulepublished in the Federal Register (60FR 47878) on September 15, 1995. Theagency made a number of changes toreduce the burdens associated withmaking content calculations and toproduce more accurate information.

NHTSA received one petition forreconsideration of the September 1995final rule, from the AmericanAutomobile Manufacturers Association(AAMA). That organization re-raised anissue that it had raised in its firstpetition, concerning a provision in Part583 which specifies that the U.S./Canadian content of components isdefaulted to zero if outside suppliers failto respond to a manufacturer’s or alliedsupplier’s request for contentinformation.

On April 19, 1996, NHTSA publishedin the Federal Register (61 FR 17253) anotice denying AAMA’s petition. Theagency explained that it believes thatthe ability to obtain the necessarycontent information from suppliers iswithin the control of the vehiclemanufacturers.

Petitions for RulemakingNHTSA has received petitions for

rulemaking from AAMA (on behalf ofsome of its members) and GeneralMotors (GM) which again raise concernsabout the provision in Part 583 whichspecifies that the U.S./Canadian contentof components is defaulted to zero ifsuppliers fail to respond to amanufacturer’s or allied supplier’s

request for content information.According to the petitioners, although agreat deal of effort has been put forth toobtain certificates from suppliers, somevehicle manufacturers continue to havedifficulty with non-responsivesuppliers. The petitioners requested thatthe agency immediately extend for anadditional six months the temporaryprocedures that have been in place forthe last two years. The petitioners alsorequested again that NHTSA permitvehicle manufacturers and alliedsuppliers to make good-faith contentdeterminations when their outsidesuppliers fail to do so.

AAMA and GM made severalarguments in support of their petitions.First, the petitioners stated that NHTSAtook six months to respond to the earlierpetition for reconsideration, leavingonly six weeks for manufacturers tocalculate U.S./Canadian content for1997 model year vehicles under newrules. They argued that it isunreasonable to expect compliance withthis provision of the rule when theagency took so long to respond to theearlier petition.

Second, AAMA and GM stated thatwhile NHTSA has concluded thatautomakers can easily cause suppliercompliance by contract, the supplierrelationship is much more complex thanwhether the supplier provides one pieceof data to the purchaser. They arguedthat to expect a shift in production fromone supplier to another for notsupplying AALA data is not realistic.The petitioners also argued that even ifa non-responsive supplier is penalizedunder the contract, the penalty paid tothe manufacturer is not compensatorybecause the ‘‘damages’’ that result arenot financial but result in anunderstated U.S./Canadian contentvalue for the manufacturer’s vehicles.

Third, AAMA and GM argued thatany procedure that requires 100 percentcompliance and does not providealternative approaches to determine theresult will understate the U.S./Canadianvalue and provide false information tothe consumer. Finally, AAMA and GMstated that NHTSA permits outsidesuppliers to make certain ‘‘best effort’’determinations of where value wasadded, and argued that it is inequitablenot to permit allied suppliers andvehicle manufacturers this sameflexibility.

Representatives of GM met withNHTSA staff on June 12 to provideadditional information in support ofthat company’s petition. Among otherthings, they discussed a letter whichChrysler had sent to NHTSA DeputyAdministrator Philip R. Recht on May 9concerning Chrysler’s success in


obtaining information from suppliers.Chrysler’s letter, from Vice Chairmanand Chief Administrative Officer T. G.Denomme, read as follows:

At our recent meeting with Secretary Pena,I mentioned that we were not experiencingmuch success with our suppliers onsubmitting information required underlabeling legislation. You asked if we hadleveraged our suppliers on this issue.

After our meeting, I got into the issue inmore detail. As it turns out, you were correcton this one. We had not pushed the suppliershard enough. On April 25, only 46% of oursuppliers had returned the labeling forms(873 suppliers out of 1,924 total). With arenewed effort on our part, by May 7 we hadpushed that figure to 81% response with anexpectation of getting well into the 90% levelby this summer.

I send you this because I did not want toleave you with the wrong impression on thisissue. It now appears Chrysler should be inposition to not only comply with the termsof the legislation, but also to have virtuallyall of our suppliers reporting as well.

The GM representatives stated thatGM’s situation is different thanChrysler’s because of several factors.GM said it has more than 13,000suppliers, while Chrysler has 1,924. GMis highly vertically integrated; Chrysleris not. Because of vertical integration,GM must trace parts through multipletiers internally and externally. Finally,the GM representatives stated that theircompany’s multiplicity of carlinesmakes the determination of domesticcontent more complex.

The GM representatives alsodiscussed their efforts to obtaincertificates from outside suppliers. Anumber of GM employees have beenworking full-time for the past severalweeks to obtain certificates from outsidesuppliers who have not responded toprevious requests.

The GM representatives indicatedthat, despite these efforts, the stateddomestic content of some of GM’s carswill fall by about 10 percentage points(e.g., from 95% in model year 1996 to85% in model year 1997), solely as aresult of defaulting non-reportingsupplier content to zero domesticcontent. They also discussed, by way ofexample, a vehicle for which GM hashad particular difficulty ‘‘getting the last9% [of content] identified.’’

The GM representatives argued that,unless the agency provides immediaterelief, consumers will receiveinformation about that company’svehicles which is inaccurate. The needfor immediate relief arises from the factthat the vehicle manufacturers are in thefinal stages of making contentcalculations for their model year 1997vehicles. Under the content labelingprogram, these calculations are made

only once per model year for a carline.Subsequent to the meeting, GM sent theagency a list of its 1997 model yearstartup dates. Most of the startup dateswere between late June and very earlyAugust, with many in the middle ofJuly.

Response to PetitionsNHTSA notes that the AAMA and GM

petitions re-raise many issues which theagency has addressed at length inresponding to previous petitions. Sincethe petitions did not provide any newarguments significantly different fromthe ones previously offered by thepetitioners, the agency is not changingits views with respect to those basicissues.

However, based on the newinformation provided by AAMA andGM, NHTSA has decided that a verynarrow, temporary change should bemade in the content calculationprocedures. The agency is amendingPart 583 to provide that, in limitedsituations where outside suppliers havenot responded to requests for contentinformation, allied suppliers andmanufacturers are permitted to makethose content calculations. Thisflexibility will only be available if theallied supplier or manufacturer has agood faith basis for making thecalculation. Moreover, this flexibilitywill only be available for up to 10percent, by value, of a carline’s totalparts content from outside suppliers.Finally, the flexibility will only beavailable where manufacturers or alliedsuppliers have made a good faith effortto obtain the information.

Today’s amendment applies only tocarlines offered for sale before January1, 1997. The agency has not decidedwhether the applicability of theamendment, or a similar one, should beextended past that date. However, theagency is requesting comments on thatissue.

NHTSA is issuing today’s amendmentin light of several factors. On the onehand, NHTSA believes that Chrysler’sexperience demonstrates that the abilityto obtain the necessary contentinformation from suppliers is within thecontrol of the vehicle manufacturers.However, the agency also agrees thatthere are differences between Chryslerand GM, related to number of suppliersand degree of vertical integration, whichmake efforts by GM to obtain contentinformation from its suppliersconsiderably more complex.

The agency has previously recognizedthat a certain amount of confusion islikely during the time period when anew program, such as content labeling,is implemented. The content labeling

program is still a relatively newprogram. Indeed, model year 1997 is thefirst year for which the full contentcalculation procedures of Part 583 arerequired, i.e., the temporary alternativeprocedures are not available.

The agency believes that GM hasdemonstrated that it has been makingsignificant efforts in recent months toobtain content information from non-responsive suppliers. Moreover, GM hasshown that, despite those efforts, it ishaving difficulty obtaining informationfor the last portion of a carline’s content.

Finally, NHTSA believes that, allother things being equal, a good faithcontent determination by a vehiclemanufacturer or allied supplier ofequipment it receives is likely to bemore accurate than simply applying a‘‘default-to-zero’’ provision. Thus,adoption of today’s amendment shouldresult in more accurate information forconsumers.

The agency recognizes, of course, thatthe most accurate determinations arethose provided by the outside suppliersthemselves, since they obviously havemuch more complete information aboutthe content of the equipment theymanufacture than the purchaser.Therefore, the agency must considerwhether its actions would have theeffect of reducing the incentives foroutside suppliers to provide therequired information, or for the vehiclemanufacturers to make efforts to obtainthe information.

NHTSA has concluded that adoptionof today’s temporary amendment willnot reduce incentives for outsidesuppliers or vehicle manufacturers formodel year 1997. Given that the vehiclemanufacturers are already in the finalstages of making content calculations forthese vehicles, today’s amendmentshould not have any effect on whetheroutside suppliers provide, or do notprovide, the required information formodel year 1997. However, the agencywill consider this issue further indeciding whether to extend theapplicability of today’s temporaryamendment. NHTSA also emphasizesthat today’s amendment does not excuseoutside suppliers for failure to complywith Part 583.

The agency notes that today’stemporary amendment is muchnarrower than the temporary onerequested by AAMA and GM. Thepetitioners requested a six-monthextension of the temporary proceduresthat have been in place for the last twoyears. However, they raised concernsabout only one of Part 583’s provisions,the one concerning non-responsiveoutside suppliers. AAMA and GM didnot give any reasons why the agency


1 While content percentages are ordinarilycalculated only once for a carline for a particularmodel year, NHTSA has previously concluded that,under special circumstances, manufacturers mayrevise the carline percentages. See interpretationletter to Diamond Star Motors dated February 10,1995.

should provide flexibility for otheraspects of the content labelingcalculation procedures. Therefore, theagency declines to provide relief relatedto other sections.

In addition, as noted above, the addedflexibility is limited to no more than 10percent, by value, of a carline’s totalparts content from outside suppliers.The relief is thus tailored to the fact thatthe problem faced by the vehiclemanufacturers is in obtaining the lastportion of outside content value forparticular carlines. Also, theamendment ensures that the addedflexibility can only be used for a verysmall portion of a carline’s total outsidecontent, and that the vast majority ofU.S./Canadian content determinationswill be based on supplier certificates.

This flexibility will also only beavailable where manufacturers or alliedsuppliers have made a good faith effortto obtain the information. NHTSA is notincluding a specific definition of whatconstitutes ‘‘good faith effort’’ in today’sfinal rule. However, the agency intendsthe term to mean at least some effortbeyond the request for information andcertificates that is required by Part 583,e.g., some kind of follow-up effort.

NHTSA will not provide specificresponses to all of the other issuesraised by AAMA and GM in theirpetitions, because the agency hasresponded to many of those issues inprevious notices. The agencyspecifically incorporates by reference itsresponses to these issues set forth in theSeptember 15, 1995 and April 19, 1996notices referenced earlier in thisdocument.

However, the agency will address twoissues. First, NHTSA rejects thesuggestion that it should amend Part583 because it took six months torespond to AAMA’s earlier petition forreconsideration. NHTSA’s regulationsclearly specify that the filing of apetition for reconsideration does notmean that a rule does not take effect.See 49 CFR 553.35(d).

Second, the agency does not believethere is anything inequitable aboutproviding different procedures foroutside and allied suppliers. TheLabeling Act establishes vastly differentprocedures for outside and alliedsuppliers. For example, in makingdomestic content calculations, outsidesuppliers need determine only whetheran item of equipment has at least 70percent U.S./Canadian content, whileallied suppliers must make precisecalculations based on certificates fromoutside suppliers. The differences inPart 583’s procedures for outside andallied suppliers reflect the specificstatutory differences for these two

groups and/or the agency’s efforts tolimit the regulatory burdens associatedwith the content labeling program. Forexample, a significant reason why theagency permits outside suppliers tomake good faith estimates of the U.S./Canadian content of the materials theypurchase is that, unlike the situation forallied suppliers, suppliers to outsidesuppliers are not required, by statute orregulation, to provide certificates ofcontent.

NHTSA finds that the issuance of thisfinal rule without prior opportunity forcomment is necessary in view of theimmediate difficulties that somemanufacturers, including GM, arehaving obtaining content informationfrom a number of outside suppliers, andthe fact that the manufacturers arenecessarily in the final stages of makingcontent determinations for their modelyear 1997 vehicles. Unless the agencyamends the standard on an immediatebasis, consumers will receive lessaccurate content information for modelyear 1997 vehicles. NHTSA also findsgood cause to establish an immediateeffective date for this final rule. In theabsence of an immediate effective date,the manufacturers could not availthemselves of the added flexibility inmaking content determinations for theirmodel year 1997 vehicles. The final ruledoes not impose any new requirementsbut instead provides additionalflexibility to manufacturers in makingcontent determinations.

NHTSA notes that, since model year1997 production has begun for somecarlines, some vehicles have probablyalready been labeled. Given thecircumstances of today’s final rule, theagency believes it would be appropriatefor manufacturers to re-label thesevehicles, should they wish to do so.1 Insuch an instance, however, NHTSAurges manufacturers to take steps toprevent confusion when consumerscompare the labels of vehicles withinthe same carline manufactured atdifferent times. For example,manufacturers could take steps to re-label all of the vehicles within a carlinethat have not yet been sold to aconsumer. Alternatively, the revisedlabel could include a note indicatingthat the carline percentages have beenrevised during the model year.

The second issue to be considered iswhether the applicability of today’samendment, or a similar one, should be

extended for a longer period of time.The agency believes that the guidingprinciple for making this decisionshould be the statutory directionspecifying that regulations promulgatedunder the Labeling Act are to providethe ultimate purchaser of a newpassenger motor vehicle with the bestand most understandable informationpossible about the foreign and U.S./Canadian origin of the equipment of thevehicles without imposing costly andunnecessary burdens on themanufacturers. 49 U.S.C. 32304(e).

There is no question that the ‘‘best’’determinations of the content ofequipment provided by outsidesuppliers are those provided by thesuppliers themselves, since theyobviously have much more completeinformation about the content of theequipment they manufacture than thepurchaser. There is also no question thatthe Labeling Act contemplates thevehicle manufacturers basing theircontent calculations on certificatesprovided by the outside suppliers, andthat outside suppliers are statutorilyrequired to provide this information.See 49 U.S.C. 32304(e). Thus, the onlyquestion is the extent, if any, to whichthe agency should provide alternativesto address situations where outsidesuppliers fail to provide the requiredinformation despite being asked to do soby the vehicle manufacturers.

As indicated above, an importantconsideration is whether suchalternatives would have the effect ofreducing the incentives for outsidesuppliers to provide the requiredinformation, or for the vehiclemanufacturers to make efforts to obtainthe information. It is clear that the‘‘default-to-zero’’ provision doesprovide significant incentives in thisregard. Therefore, the agency will notsimply drop that provision.

To the extent that the non-responsivesupplier problem experienced by GM islikely to continue, it could be arguedthat, at some point, the costs ofobtaining the last portion of outsidesupplier content value for a particularcarline become unreasonable. Thisargument could be used to supportextending the temporary amendment.The length of such extension woulddepend on how long the problem waslikely to continue.

On the other hand, NHTSA is notconvinced that the vehiclemanufacturers cannot ultimately obtainthe necessary content information fromessentially 100 percent of theirsuppliers, without costly efforts. Theagency included the followingdiscussion in its March 16, 1996 notice


denying AAMA’s earlier petition on thissubject:

NHTSA notes that AAMA’s petition didnot discuss whether its member companiesexperienced difficulty in obtaining contentinformation from suppliers in the presence orabsence of specific contractual provisionsintended to ensure the provision of contentinformation by suppliers. As stated in theSeptember 1995 notice, outside suppliers aredependent on the vehicle manufacturers fortheir business. Therefore, the agencybelieved, and continues to believe, that theability to obtain the necessary contentinformation is within the control of thevehicle manufacturers.

The purpose of including any specificprovision in a business contract is to makeobservance of the terms of that provision arequired element of the businessrelationship. Just as such things as meetingmaterial specifications, strength requirementsand specified time of delivery are a necessarypart of a supplier’s doing business with avehicle manufacturer and are ensured byprovisions included in contractualagreements, the providing of contentinformation can also be made a necessarypart of that business relationship and bereflected in the purchase contract.

Moreover, just as liquidated damagesclauses can be inserted in a contract forfailure to comply with any other part of thecontract, so can such a provision be includedfor failure to provide timely content reports.If a supplier knows that it will be paid lessmoney if it fails to provide contentinformation, it will have a strong incentive toprovide the information.

The agency also notes that the supplierindustry is highly competitive. If onesupplier is unwilling to agree to providecontent information (an agreement to do nomore than comply with existing Federal law),other suppliers would step in to takeadvantage of the opportunity for newbusiness.

For the above reasons, including thosepresented in the September 1995 notice,NHTSA continues to believe that the vehiclemanufacturers will be able to obtain therequired content information from theirsuppliers.

As indicated above, AAMA and GMargued in their new petitions that evenif a non-responsive supplier ispenalized under the contract, thepenalty paid to the manufacturer is notcompensatory because the ‘‘damages’’cannot offset the effects of understatingthe U.S./Canadian content value for themanufacturer’s vehicles. NHTSAbelieves, in contrast, that the contractualprovisions would help ensure thatoutside suppliers provide contentinformation without the need to actuallyimpose ‘‘damages.’’ The agency believesoutside suppliers would not signcontracts that they planned to violate.Also, given that it is not very costly toprovide content information, it wouldbe irrational for outside suppliers todecide to pay damages instead of simply

providing the information (informationthat they are, in any event, required byFederal law to provide).

In addition to providing an extraincentive for outside suppliers, suchcontractual provisions would providean educational function. AAMA statedin its petition that ‘‘suppliers thatdeliberately do not respond cite theuncompensated cost to establish theinformation on content in their parts,the increased employees to calculate thedata, and the burdens they already facein generating multiple content reportssuch as for NAFTA, AALA, CAFE andothers each with its own rules.’’ Thesesorts of explanations by supplierssuggest that they were unaware of theneed to provide content informationwhen they signed their contracts. Theinclusion of a specific contractprovision concerning the need toprovide content information wouldmake suppliers aware of this obligation.While the costs of providing contentinformation may not be compensateddirectly, such costs are simply anecessary part of doing business.Assuming that suppliers are aware ofthese costs, they will presumablyconsider them in negotiating theircontracts, just as they consider othercosts of doing business.

As indicated above, NHTSA has notdecided whether to extend today’samendment beyond December 31 of thisyear, but is requesting comments on thisissue. The agency requests commentersto address the following questions:

1. Can the problems beingexperienced by some vehiclemanufacturers with non-responsivesuppliers be resolved by contractualprovisions? Have the vehiclemanufacturers experiencing theseproblems included specific provisionsconcerning content labeling in theircontracts? If not, why? If suchprovisions are not included in contracts,how long would it take to add them?Are there other ways to resolve theseproblems, particularly without costlyefforts by the vehicle manufacturers?

2. If the agency were to extend theapplicability of today’s amendmentbeyond December 31 of this year, howlong should the extension be? Shouldsuch an extension continue to providethe same type and degree of flexibility,i.e., flexibility for up to 10 percent, byvalue, of a carline’s total parts contentfrom outside suppliers? Would anothervalue, or a somewhat different meansfor providing flexibility, be moreappropriate?

3. If the agency provides flexibilitypast December 31 of this year, shouldthe flexibility be limited to situationswhere the vehicle manufacturers have

made specified good-faith efforts toobtain the information from an outsidesupplier (beyond the initial request tothe supplier)? If so, what good-faithefforts should be specified in theregulation, e.g., certain contractualprovisions, follow-up letters and/orphone calls, etc.?

NHTSA recognizes that, to the extentcommenters argue that a somewhatdifferent amendment should apply tomodels introduced after December 31 ofthis year, those arguments may bear alsoon the appropriateness of the reliefprovided up to that date. However,given the imminence of the introductionof most model year 1997 vehicles, it isnot clear whether it would be feasible toconsider amendments to the reliefprovided for models introduced beforeDecember 31. Nonetheless, the agencyinvites commenters to address thisissue. Moreover, to accommodate thepossibility of making such anamendment, the agency expediting thecomment process by limiting thecomment period to 30 days.

For the reasons discussed above,NHTSA is granting the AAMA and GMpetitions to the extent reflected intoday’s final rule and request forcomments. The petitions are otherwisedenied.

Rulemaking Analyses and Notices

A. Executive Order 12866 (RegulatoryPlanning and Review) and DOTRegulatory Policies and Procedures

This rulemaking document was notreviewed under Executive Order 12866.NHTSA has considered the economicimplications of this regulation anddetermined that it is not significantwithin the meaning of the DOTRegulatory Policies and Procedure.Today’s amendments will not affectmanufacturer or supplier costs. Theysimply provide additional flexibility tovehicle manufacturers and their alliedsuppliers in making contentcalculations.

B. Regulatory Flexibility Act

In accordance with the RegulatoryFlexibility Act, NHTSA has evaluatedthe effects of this action on smallentities. Based upon this evaluation, Icertify that the final rule will not havea significant economic impact on asubstantial number of small entities.Today’s amendments simply provideadditional flexibility to vehiclemanufacturers and their allied suppliersin making content calculations.Therefore, a regulatory flexibilityanalysis is not required for this action.


C. Executive Order 12612 (Federalism)This action has been analyzed in

accordance with the principles andcriteria contained in Executive Order12612, and it has been determined thatthe final rule did not have sufficientFederalism implications to warrantpreparation of a Federalism Assessment.No state laws are affected.

D. Executive Order 12778 (Civil JusticeReform)

This final rule does not have anyretroactive effect. States are preemptedfrom promulgating laws and regulationscontrary to the provisions of this rule.The rule does not require submission ofa petition for reconsideration or otheradministrative proceedings beforeparties may file suit in court.

E. National Environmental Policy ActThe agency has considered the

environmental implications of this rulein accordance with the NationalEnvironmental Policy Act of 1969 anddetermined that this rule will notsignificantly affect the humanenvironment.

CommentsInterested persons are invited to

submit comments on this document. Itis requested but not required that 10copies be submitted.

All comments must not exceed 15pages in length (49 CFR 553.21).Necessary attachments may beappended to these submissions withoutregard to the 15-page limit. Thislimitation is intended to encouragecommenters to detail their primaryarguments in a concise fashion.

If a commenter wishes to submitcertain information under a claim ofconfidentiality, three copies of thecomplete submission, including thepurportedly confidential businessinformation, should be submitted to theChief Counsel, NHTSA, at the streetaddress given above, and seven copiesfrom which the purportedly confidentialinformation has been deleted should besubmitted to the NHTSA DocketSection. A request for confidentialityshould be accompanied by a cover lettersetting forth the information specified inthe agency’s confidential businessinformation regulation. 49 CFR Part 512.

All comments received by NHTSAbefore the close of business on thecomment closing date indicated abovewill be considered, and will be availablefor examination in the docket at theabove address both before and after thatdate. To the extent possible, commentsfiled after the closing date will also beconsidered. Comments received too latefor consideration in regard to this

rulemaking action will be considered assuggestions for further rulemakingaction. Comments on the document willbe available for inspection in the docket.The NHTSA will continue to filerelevant information as it becomesavailable in the docket after the closingdate, and recommends that interestedpersons continue to examine the docketfor new material.

Those persons desiring to be notifiedupon receipt of their comments in therules docket should enclose a self-addressed, stamped postcard in theenvelope with their comments. Uponreceiving the comments, the docketsupervisor will return the postcard bymail.

List of Subjects in 49 CFR Part 583Motor vehicles, Imports, Labeling,

Reporting and recordkeepingrequirements.

In consideration of the foregoing, 49CFR part 583 is amended as follows:

PART 583—AUTOMOBILE PARTSCONTENT LABELING

1. The authority for part 583continues to read as follows:

Authority: 49 U.S.C. 32304, 49 CFR 1.50,501.2(f).

2. Section 583.6 is amended byrevising paragraph (c)(5) and addingparagraph (c)(6) to read as follows:

§ 583.6 Procedure for determining U.S./Canadian parts content.

* * * * *(c) * * *(5) Except as provided in paragraph

(c)(6) of this section, if a manufactureror allied supplier does not receiveinformation from one or more of itssuppliers concerning the U.S./Canadiancontent of particular equipment, theU.S./Canadian content of thatequipment is considered zero. Thisprovision does not affect the obligationof manufacturers and allied suppliers torequest this information from theirsuppliers or the obligation of thesuppliers to provide the information.

(6) For carlines which are first offeredfor sale to ultimate purchasers beforeJanuary 1, 1997, if a manufacturer orallied supplier requests information in atimely manner from one or more of itsoutside suppliers concerning the U.S./Canadian content of particularequipment, but does not receive thatinformation despite a good faith effort toobtain it, the manufacturer or alliedsupplier may make its own good faithvalue added determinations, subject tothe following provisions:

(i) The manufacturer or alliedsupplier shall make the same value

added determinations as would be madeby the outside supplier, i.e., whether 70percent or more of the value ofequipment is added in the United Statesand/or Canada;

(ii) The manufacturer or alliedsupplier shall consider the amount ofvalue added and the location in whichthe value was added for all of the stagesthat the outside supplier would berequired to consider;

(iii) The manufacturer or alliedsupplier may determine that the valueadded in the United States and/orCanada is 70 percent or more only if ithas a good faith basis to make thatdetermination;

(iv) A manufacturer and its alliedsuppliers may, on a combined basis,make value added determinations for nomore than 10 percent, by value, of acarline’s total parts content from outsidesuppliers;

(v) Value added determinations madeby a manufacturer or allied supplierunder this paragraph shall have thesame effect as if they were made by theoutside supplier;

(vi) This provision does not affect theobligation of outside suppliers toprovide the requested information.

Issued on: August 28, 1996.Ricardo Martinez,Administrator.[FR Doc. 96–22409 Filed 8–28–96; 5:08 pm]BILLING CODE 4910–59–P


Fish and Wildlife Service

50 CFR Part 32

RIN 1018–AD76

1996–97 Refuge-Specific Hunting andSport Fishing Regulations

AGENCY: Fish and Wildlife Service,Interior.ACTION: Final rule.

SUMMARY: The Fish and Wildlife Service(Service) amends certain regulationsthat pertain to migratory game birdhunting, upland game hunting, big gamehunting and sport fishing on individualnational wildlife refuges for the 1996–97seasons. Refuge hunting and fishingprograms are reviewed annually todetermine whether the individual refugeregulations governing these programsshould be modified, deleted or haveadditions made to them. Changingenvironmental conditions, State andFederal regulations, and other factorsaffecting wildlife populations andhabitat may warrant modifications


ensuring continued compatibility ofhunting and fishing with the purposesfor which individual refuges wereestablished. The Service determines thatsuch use is compatible with thepurposes for which these refuges wereestablished. The Service furtherdetermines that this action is inaccordance with the provisions of allapplicable laws, is consistent withprinciples of sound fish and wildlifemanagement, and is otherwise in thepublic interest by providing additionalrecreational opportunities at nationalwildlife refuges.EFFECTIVE DATE: This rule is effectiveSeptember 3, 1996.FOR FURTHER INFORMATION CONTACT:Stephen R. Vehrs, (703) 358–2397.SUPPLEMENTARY INFORMATION: 50 CFRpart 32 contains provisions governinghunting and fishing on national wildliferefuges. Hunting and fishing areregulated on refuges to:

• Ensure compatibility with refugepurposes;

• Properly manage the fish andwildlife resource;

• Protect other refuge values; and• Ensure refuge user safety.On many refuges, the Service policy

of adopting State hunting and fishingregulations is adequate in meeting theseobjectives. On other refuges, it isnecessary to supplement Stateregulations with more restrictiveFederal regulations to ensure that theService meets its managementresponsibilities, as outlined under thesection entitled ‘‘Statutory Authority.’’Refuge-specific hunting and fishingregulations may be issued only after awildlife refuge is opened to migratorygame bird hunting, upland gamehunting, big game hunting or sportfishing through publication in theFederal Register. These regulations maylist the wildlife species that may behunted or are subject to sport fishing,seasons, bag limits, methods of huntingor fishing, descriptions of open areas,and other provisions as appropriate.Previously issued refuge-specificregulations for hunting and fishing arecontained in 50 CFR part 32. Many ofthe amendments to these sections arebeing promulgated to standardize andclarify the existing language of theseregulations.

Text in this final rule is somewhatdifferent than that used in the proposedrule because it reflects conformity toplain English writing standards. In theJune 24, 1996, issue of the FederalRegister (61 FR 32415–32422) theService published a proposedrulemaking containing a description ofthe refuges, their proposed hunting and/

or fishing programs and invited publiccomment.

The State of New Jersey, Departmentof Environmental Protection, Division ofFish, Game and Wildlife, commentedthat the proposed rule did not includeany openings for sport fishing in NewJersey. This concern has been forwardedto the Service’s Regional Director,having jurisdiction in New Jersey. Toopen new fishing programs in NewJersey, a separate rulemaking isnecessary. The refuge managers, inconsultation with other Fish andWildlife Service offices and the NewJersey Division of Fish, Game andWildlife, will determine whether toopen additional public fishing areas onrefuges in New Jersey through acompatible use determination process.

The State of Utah, Department ofNatural Resources, Division of WildlifeResources commented that the proposedregulations for Bear River MigratoryBird Refuge were overly restrictiveregarding: (1) The requirement for casedor dismantled firearms while beingcarried and/or transported on the refuge,since this regulation is more restrictivethan State law; (2) refuge closure 90minutes after hunting hours, where atleast two hours should be allowed; and(3) a ten-shell limit for swan huntingcould create a significant lawenforcement problem.

The Humane Society of the UnitedStates (HSUS) generally supports thechanges made to the refuge regulations,but expressed concern about huntingtundra swans on this refuge and othernational wildlife refuges. They weresupportive of steps taken by the refugemanager to better regulate the swanhunt. The HSUS further recommendsthat the number of shotshells used tohunt swans be limited to five shells.

The Fund for Animals Inc.commented on the proposed 1995–96late season migratory bird huntingframeworks, 60 FR 44463 (August 28,1995), and the Draft Bear River RefugeHunt Plan Environmental Assessment(DEA). Both of these documents followa separate public comment process andtherefore will be responded toelsewhere and not addressed in thisrulemaking.

The Biodiversity Legal Foundation(BLF) commented that regulations forBear River Migratory Bird Refuge areinsufficient to protect and encourageadequate restoration of the trumpeterswan in Utah. They specificallyrecommend: (1) The refuge be closed 60minutes after shooting time todiscourage sky-busting and the resultantcrippling of swans. They feel this ismore than sufficient time to accumulateall equipment and depart from the

refuge; (2) illegal shooting from dikes iswell documented and the Serviceshould take all necessary steps toeliminate this activity, particularly onthose areas that lie between closed(security) areas where low flyingtrumpeters are observed; and (3) theService should consider the kind ofregulations and recovery effects thatwould exist if the trumpeter were listedunder the ESA. They suggest that thesesame recovery goals should be in effectat this time; and refuge regulationsclearly allow for an excessive andunreasonable incidental take (mortality)of trumpeters in contradiction to theMigratory Bird Treaty Act.

The Service has reviewed the abovecomments regarding proposed changesin waterfowl hunting regulations at theBear River Migratory Bird Refuge. Anumber of alternatives were consideredwhile trying to improve the swan huntwith a minimum impact to waterfowlersand birdwatchers. The Serviceconsidered: assigning blinds; limitinghunter numbers; closing portions of theRefuge to swan hunting; requiringcheck-in and check-out; limitingshooting hours and requiring swanhunters to pass a special training class.

The requirement for all guns, whennot being used in the act of hunting, tobe dismantled or cased when in vehiclesis a System-wide regulation containedin 50 CFR 27.42(b), therefore, theproposed refuge specific regulation forBear River is removed from this finalrule.

The Service will extend the refugeclosing time from the proposed ninetyminutes to two hours after shooting timeends. This will allow adequate time foravid hunters with decoys to traverseremote areas of the refuge duringdarkness. However, we remainconcerned with the possibility ofincreased wildlife disturbance, lost orinjured hunters and those who mayavoid being checked by enforcementofficers. Refuge patrol plans will bemade to specifically address theseissues.

The Service feels it is important toretain the regulation requiring a 10-shellpossession limit for swan hunting.Hunters may reasonably expect to besuccessful within this 10-shell limit.This technique has worked well at otherrefuges, along with modified lawenforcement techniques, to minimizeshooting at out-of-range birds.

In an effort to improve the overallquality of refuge visits for both huntersand birdwatchers, time and spacezoning will be used to better separatethe two activities.

The Refuge Manager understands theabove concerns about hunting at the


Bear River NWR, and will continue toconsult with representatives of the UtahDivision of Wildlife Resources, TheHumane Society of the United States,The Fund for Animals, Inc. and theBiodiversity Legal Foundation. TheRefuge Manager will closely monitorthis year’s hunt program and has ampleauthority to place greater restrictions,amend, and/or relax these refugespecific hunting requirements duringthe course of the season with local,public/hunter notice in accordance with50 CFR,32.3(f).

This rule is effective uponpublication. The Service has determinedthat any further delay in theimplementation of these refuge-specifichunting and sport fishing regulationswould not be in the public interest inthat it would hinder the effectiveplanning and administration of thehunting and fishing programs. TheService received public comment onthese proposals during the 30-daycomment period and delay of anadditional 30 days would jeopardizeholding the hunting and/or fishingprograms this year, or shorten theirduration and thereby lessen themanagement effectiveness of thisregulation. Therefore, the Service findsgood cause to make this rule effectiveupon publication (5 U.S.C. 553(d)(3)).

Statutory AuthorityThe National Wildlife Refuge System

Administration Act (NWRSAA) of 1966,as amended (16 U.S.C. 668dd), and theRefuge Recreation Act of 1962 (16U.S.C. 460k) govern the administrationand public use of national wildliferefuges. Specifically, Section 4(d)(1)(A)of the NWRSAA authorizes theSecretary of the Interior to permit theuse of any area within the RefugeSystem for any purpose, including butnot limited to, hunting, fishing, andpublic recreation, accommodations, andaccess, when he determines that suchuses are compatible with the majorpurpose(s) for which the area wasestablished.

The Refuge Recreation Act (RRA)authorizes the Secretary to administerareas within the Refuge System forpublic recreation as an appropriateincidental or secondary use only to theextent that it is practicable and notinconsistent with the primarypurpose(s) for which the areas wereestablished. The NWRSAA and the RRAalso authorize the Secretary to issueregulations to carry out the purposes ofthe Acts and regulate uses.

The Service develops hunting andsport fishing plans for each existingrefuge prior to opening it to hunting orfishing. It also develops refuge-specific

regulations, in many cases, to ensure thecompatibility of the programs with thepurposes for which the refuge wasestablished. An interim determinationof compatibility for hunting and sportfishing on newly acquired refuges, madeat the time of acquisition, ensures initialcompliance with the NWRSAA and theRRA. This process ensures thedeterminations required by these actswere made prior to the addition ofrefuges to the lists of areas open tohunting and fishing in 50 CFR part 32.The Service ensures continuedcompliance by the development of long-term hunting and sport fishing plansand by annual review of hunting andsport fishing programs and regulations.

The Service determines that thisaction is in accordance with theprovisions of all applicable laws, isconsistent with principles of sound fishand wildlife management, helpsimplement Executive Order 12962(Recreational Fisheries), and isotherwise in the public interest byproviding additional recreationalopportunities at national wildliferefuges. Sufficient funds are availablewithin the refuge budgets to operate thehunting and sport fishing programs asproposed.

Paperwork Reduction ActThe Service has examined this

regulation under the PaperworkReduction Act of 1995 and has found itto contain no information collectionrequirements.

Economic EffectService review has revealed that the

rulemaking will increase hunter andfishermen visitation to the surroundingarea of the refuges before, during or afterthe recreational uses, compared toclosing the refuges to these recreationaluses. When the Service acquired theselands, all public use ceased under lawuntil opened to the public in accordancewith this rulemaking.

Refuges generally are located awayfrom large metropolitan areas.Businesses in the area of the refugesconsist primarily of small family-ownedstores, restaurants, gas stations andother small commercial enterprises. Inaddition, there are several smallcommercial and recreational fishing andhunting camps and marinas in thegeneral areas. This rule has a positiveeffect on such entities; however, theamount of revenue generated is notlarge.

Many area residents enjoy a rurallifestyle that includes frequentrecreational use of the abundantresources of the area. A high percentageof the households enjoy hunting,

fishing, and boating in area wetlands,rivers and lakes. Refuge lands generallywere not available for public use priorto government acquisition; however,friends and relatives of the landownersfished and hunted there and some landsoperated under commercial hunting andfishing leases. Many nearby residentsalso participate in other forms ofnonconsumptive outdoor recreationsuch as biking, hiking, camping,birdwatching, canoeing, and otheroutdoor sports.

Economic impacts of refuge fishingand hunting programs on localcommunities are calculated fromaverage expenditures in the ‘‘1995National Survey of Fishing, Hunting,and Wildlife-Associated Recreation’’. In1995, 42 million U.S. residents 16 yearsold and older hunted and/or fished.More specifically, 37 million fished and14.5 million hunted. Those who bothfished and hunted account for the 9.5million overage. Nationwideexpenditures by sportsmen totaled $42billion. Trip-related expenditures forfood, lodging, and transportation were$16 billion or 37 percent of all fishingand hunting expenditures; equipmentexpenditures amounted to $19 billion,or 46 percent of the total; otherexpenditures such as those formagazines, membership dues,contributions, land leasing, ownership,licenses, stamps, tags, and permitsaccounted for $6.9 billion, or 16 percentof all expenditures. Overall, anglersspent an average of $41 per day. Foreach day of hunting, big game huntersaveraged spending $40, small gamehunters $20, and migratory bird hunters$33.

At these 40 National Wildlife Refugesin 24 states, 816,000 fisherman areexpected to spend $33.5 millionannually in pursuit of their sport, whilean estimated 203,000 hunters will spend$6.7 million annually hunting on therefuges. While many of these fishermenand hunters already made expendituresprior to the refuge opening, additionalexpenditures directly are due to the newrecreational opportunities beingprovided by the land now being open tothe general public.

This rulemaking was not subject toOffice of Management and Budgetreview under Executive Order 12866. Areview under the Regulatory FlexibilityAct of 1980 (5 U.S.C. 601 et seq.) hasrevealed that although the rulemakingwould increase visitation andexpenditures in the surrounding area ofthe refuge, it would not have asignificant effect on a substantialnumber of small entities in the area,such as businesses, organizations andgovernmental jurisdictions.


Environmental Considerations

The Service ensures compliance withthe National Environmental Policy Actof 1969 (NEPA) (42 U.S.C. 4332(C))when it develops hunting and sportfishing plans, and the requireddeterminations are made prior to theaddition of refuges to the lists of areasopen to hunting and fishing in 50 CFRpart 32. The Service reviewed thechanges in hunting and fishing hereinadopted with regard to Section 7 of theEndangered Species Act of 1973 (16U.S.C. 1531–1543) and found them toeither have no effect on or not likely toadversely affect listed species or criticalhabitat. The amendments of refuge-specific hunting and fishing regulationsare subject to a categorical exclusionfrom the NEPA process if they do notsignificantly alter the existing use of aparticular national wildlife refuge. TheService employs the exclusion found at516 DM 6, App.1.4 B(5) as theseamendments are ‘‘[m]inor changes inthe amounts or types of public use onFWS or State-managed lands, inaccordance with regulations,management plans, and procedures.’’These refuge-specific hunting andfishing revisions to existing regulationsqualify or otherwise define an existinghunting or fishing activity, for purposesof resource management. Thesedocuments are on file in the offices ofthe Service and may be viewed bycontacting the primary author notedbelow. Information regarding huntingand fishing permits and the conditionsthat apply to individual refuge huntsand sport fishing activities, and maps ofthe respective areas are at refugeheadquarters and can be obtained fromthe regional offices of the U.S. Fish andWildlife Service at the addresses listedbelow:Region 1—California, Hawaii, Idaho,

Nevada, Oregon, and Washington.Assistant Regional Director—Refugesand Wildlife, U.S. Fish and WildlifeService, Eastside Federal Complex,Suite 1692, 911 N.E. 11th Avenue,Portland, Oregon 97232–4181;Telephone (503) 231–6214.

Region 2—Arizona, New Mexico,Oklahoma and Texas. AssistantRegional Director—Refuges andWildlife, U.S. Fish and WildlifeService, Box 1306, Albuquerque, NewMexico 87103; Telephone (505) 766–1829.

Region 3—Illinois, Indiana, Iowa,Michigan, Minnesota, Missouri, Ohioand Wisconsin. Assistant RegionalDirector—Refuges and Wildlife, U.S.Fish and Wildlife Service, FederalBuilding, Fort Snelling, Twin Cities,

Minnesota 55111; Telephone (612)725–3507.

Region 4—Alabama, Arkansas, Florida,Georgia, Kentucky, Louisiana,Mississippi, North Carolina,Tennessee, South Carolina, PuertoRico and the Virgin Islands. AssistantRegional Director—Refuges andWildlife, U.S. Fish and WildlifeService, 1875 Century Boulevard,Room 324, Atlanta, Georgia 30345;Telephone (404) 679–7152.

Region 5—Connecticut, Delaware,District of Columbia, Maine,Maryland, Massachusetts, NewHampshire, New Jersey, New York,Pennsylvania, Rhode Island, Vermont,Virginia and West Virginia. AssistantRegional Director—Refuges andWildlife, U.S. Fish and WildlifeService, 300 Westgate Center Drive,Hadley, Massachusetts 01035;Telephone (413) 253–8550.

Region 6—Colorado, Kansas, Montana,Nebraska, North Dakota, SouthDakota, Utah and Wyoming. AssistantRegional Director—Refuges andWildlife, U.S. Fish and WildlifeService, Box 25486, Denver FederalCenter, Denver, Colorado 80225;Telephone (303) 236–8145.

Region 7—Alaska. Assistant RegionalDirector—Refuges and Wildlife, U.S.Fish and Wildlife Service, 1011 E.Tudor Rd., Anchorage, Alaska 99503;Telephone (907) 786–3545.

Unfunded Mandates

The Service has determined andcertifies pursuant to the UnfundedMandates Act, 2 U.S.C. 1502 et seq., thatthis rulemaking will not impose a costof $100 million or more in any givenyear on local or State governments orprivate entities.

Civil Justice Reform

The Department has determined thatthese final regulations meet theapplicable standards provided inSections 3(a) and 3(b)(2) of ExecutiveOrder 12988.

Primary Author

Stephen R. Vehrs, Division of Refuges,U.S. Fish and Wildlife Service,Washington, DC 20240, is the primaryauthor of this rulemaking document.


Fishing, Hunting, Reporting andrecordkeeping requirements, Wildlife,Wildlife refuges.

Accordingly, Part 32 of Chapter I ofTitle 50 of the Code of FederalRegulations is amended as follows:

PART 32—[AMENDED]


Authority: 5 U.S.C. 301; 16 U.S.C. 460k,664, 668dd, and 715i.

§ 32.7 [Amended]2. Section 32.7 List of refuge units

open to hunting and/or fishing, isamended by alphabetically adding thelistings ‘‘Windom Wetland ManagementDistrict’’ to the State of Minnesota;‘‘William L. Finley National WildlifeRefuge’’ to the State of Oregon; ‘‘UpperMississippi River National Wildlife andFish Refuge’’ to the State of Wisconsin;and revising the existing name of‘‘Patuxent Wildlife Research Center’’ toread ‘‘Patuxent Research Refuge’’ in theState of Maryland.

3. Section 32.23 Arkansas is amendedby adding paragraph D.3. to Cache RiverNational Wildlife Refuge to read asfollows:

§ 32.23 Arkansas.

* * * * *

Cache River National Wildlife Refuge

* * * * *D. Sport Fishing. * * *

* * * * *3. Fishermen must fish and frog in

accordance with refuge regulations andapplicable state fishing and froggingregulations.* * * * *

4. Section 32.24 California isamended by revising paragraph A.7., ofLower Klamath National WildlifeRefuge; and by revising paragraph A.2.,of Salton Sea National Wildlife Refugeto read as follows:

§ 32.24 California.

* * * * *

Lower Klamath National WildlifeRefuge

A. Hunting of Migratory Game Birds.* * ** * * * *

7. Hunters may only usenonmotorized boats and boats withelectric motors on units 4b and 4c fromthe start of hunting season throughNovember 30. Hunters may usemotorized boats on units 4b and 4c fromDecember 1 through the end of huntingseason.* * * * *

Salton Sea National Wildlife RefugeA. Hunting of Migratory Game Birds.

* * ** * * * *

2. Hunters must hunt from assignedblinds on the Union Tract and within


100 feet (.9144 meters) of blind sites onthe Hazard Tract, except when shootingto retrieve crippled birds.* * * * *

5. Section 32.28 Florida is amendedby revising paragraphs A. and D. ofMerritt Island National Wildlife Refugeto read as follows:

§ 32.28 Florida.

* * * * *

Merritt Island National Wildlife RefugeA. Hunting of Migratory Game Birds.

Hunters may hunt ducks and coots indesignated areas of the refuge subject tothe following conditions:

1. Hunters must possess a valid refugehunting permit at all times whilehunting on the refuge.

2. Hunters may hunt only onWednesday, Saturday, Sunday, and thefollowing holidays: Thanksgiving,Christmas, and New Years Day onlywithin the designated state season.

3. Hunters may hunt only in fourdesignated areas of the refuge subject todelineation in the refuge hunting mapand brochure, including the open watersof Mosquito Lagoon, Indian River, anddesignated impoundments outside theNASA security area.

4. Hunting hours are one-half hourbefore sunrise until 1:00 pm. eachhunting day.

5. Hunters in Areas 1, 2 or 4 mustcomplete and carry proof of completingan approved hunter safety trainingcourse. Hunters in Area 3 born afterJune 1, 1975 must complete and carryproof of completing an approved huntersafety training course in accordancewith State law.

6. An adult 21 years of age or oldermust supervise and remain in sight andnormal voice contact with huntersunder the age of 16.

7. The public must not enter therefuge between sunset and sunriseexcept: hunters may access the refugefor waterfowl hunting only after 2:00 ameach hunting day during waterfowlhunting season; and a valid refugehunting permit must be in possessionduring these times.

8. Hunters may not park alongBlackpoint Wildlife Drive or PlayalindaBeach Road for the purposes ofwaterfowl hunting.

9. Hunters may not trespass or huntmigratory game birds in refuge areasposted ‘‘AREA CLOSED’’.

10. Vehicles must use only designatedpublic access routes and boat launchingareas north and south of HauloverCanal.

11. Hunters must not constructpermanent above ground, or pit blinds,nor dig into dikes.

12. Hunters must not shoot fromwithin 10 feet of any dike, roadway, orrailroad fill.

13. Hunters must remove decoys,boats, and other personal property fromthe refuge by 2:00 pm daily.

14. Refuge guides must purchase andhave Guide Permits on their personwhile in the field hunting.

15. Hunters may not launch boats offBlack Point Wildlife Drive.

16. Hunters may not use air thrustboats, hovercraft, jetskis or similar crafton refuge waters.

17. Boats must not exceed ‘‘IdleSpeed’’ in Bairs Cove nor 8 mph or‘‘Slow speed-Minimum Wake’’ inHaulover Canal.* * * * *

D. Sport Fishing. Fishermen may fish,crab, clam, oyster and shrimp indesignated areas of the refuge subject tothe following conditions:

1. Fishermen may night fish from aboat only in Mosquito Lagoon, IndianRiver, Banana River, and HauloverCanal. All fishermen must possess avalid refuge night fishing permit.

2. Fishermen must attend their linesat all times.

3. Vehicles must use only designatedpublic access routes and boat launchingareas north and south of HauloverCanal.

4. Fishermen may not launch boatsfrom Black Point Wildlife Drive.

5. Fishermen may not use air thrustboats, hovercraft, jetskis or similar crafton refuge waters.

6. Fishermen may launch or moorboats only between sunset and sunriseat Beacon 42 fish camp and Bairs Coveat Haulover Canal Recreation Area.

7. The public must not use motorizedboats in the Banana River Manateesanctuary (north of KARS Park on thewest side of the Barge Channel andnorth of the Air Force power line on theeast side of the Barge Channel). Thisincludes any boat having an attachedmotor or a non-attached motor that iscapable of use (including electrictrolling motors). This regulation is ineffect throughout the year.

8. Boats must not exceed ‘‘Idle Speed’’in Bairs Cove and KARS Marina nor 8mph or ‘‘Slow speed-Minimum Wake’’in Haulover Canal.

9. The public must not enter therefuge between sunset and sunriseexcept fishermen may launch boatswhile fishing from Beacon 42 FishCamp or Bairs Cove at Haulover Canal.Nighttime fishermen must also possessa valid refuge fishing permit whilefishing on the refuge.* * * * *

6. Section 32.32 Illinois is amendedby removing paragraph A.4., and

revising paragraphs D.2. and D.5 ofChautauqua National Wildlife Refuge;by revising paragraphs C.1. and D.1. ofCrab Orchard National Wildlife Refuge;by revising Mark Twain NationalWildlife Refuge; by revising paragraphsD.1., D.2., D.3., adding paragraph D.4. ofMeredosia National Wildlife Refuge;and revising paragraph A.1., addingparagraph A.3., revising paragraphs B.1.,B.2. and B.3.; revising paragraphs C.1.,C.2., and C.3. of Upper MississippiRiver Wildlife and Fish Refuge to readas follows:

§ 32.32 Illinois.

* * * * *

Chautauqua National Wildlife Refuge


* * * * *2. Anglers must not use more than

two poles and each pole may not havemore than two hooks or lures attachedwhile fishing in the Kikunessa Pool ofChautauqua National Wildlife Refuge.* * * * *

5. The public may not enter WeisLake on the Cameron-Billsbach Unit ofChautauqua National Wildlife Refugefrom October 16 through January 14, toprovide sanctuary for migratory birds.

Crab Orchard National Wildlife Refuge

* * * * *C. Big Game Hunting. * * *1. Hunters must possess a special

permit issued by the Illinois Departmentof Natural Resources.* * * * *

D. Sport Fishing. * * *1. Fishermen may fish from boats all

year west of Wolf Creek Road.2. From March 15 through September

30 fishermen may fish from boats eastof Wolf Creek Road.

3. Fishermen may fish from the bankeast of Wolf Creek Road all year, butonly at the Wolf Creek and Route 148causeways.

4. Fishermen must remove trotlinesand jugs west of Wolf Creek Road fromsunrise to sunset from Memorial Daythrough Labor Day.

5. Fishermen must remove trotlinesand jugs from the entire lake on the lastday of use.

6. Fishermen may anchor trotlinesonly with portable weights that areremoved from the water, along with thetrotlines and jugs.

7. Fishermen must not use stakes oremploy any floatation device which haspreviously contained any petroleumbased materials or toxic substances.

8. Fishermen may use all non-commercial fishing methods except


those requiring underwater breathingapparatus.* * * * *

Mark Twain National Wildlife RefugeA. Hunting of Migratory Game Birds.

Hunters may hunt migratory game birdson designated areas of the refuge subjectto posted regulations.

B. Upland Game Hunting. Huntersmay hunt upland game on designatedareas of the refuge subject to postedregulations.

1. Hunters must possess and use onlynontoxic shot while hunting allpermitted birds, except wild turkeys.Hunters may possess and use lead shotfor hunting wild turkey.

C. Big Game Hunting. Hunters mayhunt white-tailed deer on designatedareas of the refuge subject to postedregulations.

D. Sport Fishing. Fishermen may fishon designated areas of the refuge subjectto posted regulations.

Meredosia National Wildlife Refuge

* * * * *D. Sport Fishing. * * *1. Fishermen may sport fish on all

refuge waters during daylight hoursfrom January 15 through October 15.

2. From October 16 through January14, fishermen may fish south of CarverLake by foot access only.

3. Private boats may not be left inrefuge waters overnight.

4. Motorboats must not exceed ‘‘slowspeed/minimum wake.’’

Upper Mississippi River NationalWildlife and Fish Refuge

A. Hunting of Migratory Game Birds.* * *

1. Hunters may not hunt migratorybirds on refuge closed areas posted‘‘Area Closed’’, on the Goose Island ‘‘NoHunting’’ zone in Pool 8, and on theUpper Halfway Creek Marsh ‘‘NoHunting’’ zone in Pool 7.* * * * *

3. Hunters may only use and possessnontoxic shot when hunting for anypermitted migratory bird.

B. Upland Game Hunting. * * *1. Hunters may not hunt or possess

firearms between March 15 and theopening of the State fall hunting seasonsexcept that hunters may hunt wildturkeys during the State spring turkeyseason.

2. Hunters may hunt on refuge areasposted as ‘‘Area Closed’’ beginning theday after the close of the applicableState duck hunting season until seasonclosure or March 15, whichever occursfirst, except that hunters may hunt wildturkey during the State spring wildturkey season.

3. Hunters must not hunt at any timewithin the Goose Island ‘‘No Hunting’’zone in Pool 8, nor Upper HalfwayCreek Marsh ‘‘No Hunting’’ zone in Pool7.* * * * *

C. Big Game Hunting. * * *1. Hunters may only hunt until season

closure or March 15, whichever dateoccurs first.

2. Hunters may hunt on refuge areasposted ‘‘Area Closed’’ beginning the dayafter the close of the applicable Stateduck hunting season until seasonclosure or March 15, whichever dateoccurs first.

3. Hunters must not hunt at any timeon the Goose Island ‘‘No Hunting’’ zonein Pool 8 and Upper Halfway CreekMarsh ‘‘No Hunting’’ zone in Pool 7.* * * * *

7. Section 32.34 Iowa is amended byremoving paragraph C.2., andredesignating paragraphs C.3. and C.4.as paragraphs C.2. and C.3. of DesotoNational Wildlife Refuge; and byremoving paragraphs C.6. and C.7. ofDriftless Area National Wildlife Refuge;and revising the introductory text ofparagraph B. and paragraph B.2. ofWalnut Creek National Wildlife Refugeto read as follows:

§ 32.34 Iowa.

* * * * *

DeSoto National Wildlife Refuge

* * * * *C. Big Game Hunting. * * *

* * * * *2. Hunters must not construct or use

permanent blinds, platforms or laddersat any time.

3. Hunters must remove all huntingstands from the refuge by the close ofthe season.* * * * *

Walnut Creek National Wildlife Refuge

* * * * *B. Upland Game Hunting. Hunters

may hunt ringnecked pheasants,bobwhite quail, cottontail rabbits, andsquirrels on designated areas of therefuge subject to the followingconditions:* * * * *

2. Hunters may hunt from the openingof state season until closed on the datesposted by the refuge manager.* * * * *

8. Section 32.36 Kentucky is amendedby revising paragraphs A., B., and C., ofOhio River Islands National WildlifeRefuge to read as follows:

§ 32.36 Kentucky.

* * * * *

Ohio River Islands National WildlifeRefuge

A. Hunting of Migratory Game Birds.Hunters may hunt migratory game birdson designated areas of the refuge subjectto the following conditions:

1. Each hunter must have in hispossession a current copy of the OhioRiver Islands National Wildlife RefugeHunting Regulations Leaflet whileparticipating in a refuge hunt.

B. Upland Game Hunting. Huntersmay hunt rabbit and squirrel ondesignated areas of the refuge subject tothe following conditions:

1. Hunters must not use dogs forpursuit while rabbit hunting.

2. Hunters may only use shotguns fortaking squirrels and rabbits.


4. Hunters will possess and use, whilein the field, only nontoxic shot.

C. Big Game Hunting. Hunters mayhunt white-tailed deer on designatedareas of the refuge subject to thefollowing conditions:

1. Hunters may only archery hunt.2. Hunters may not hunt by organized

deer drives of two or more hunters. Thedefinition of a drive is: the act ofchasing, pursuing, disturbing orotherwise directing deer so as to makethe animals more susceptible to harvest.

3. Hunters may not bait deer on refugelands.

4. Each hunter must have in hispossession a current copy of the OhioRiver Islands National Wildlife RefugeRegulations Leaflet while participatingin a refuge hunt.* * * * *

9. Section 32.37 Louisiana is amendedby revising paragraph C.1., ofD’Arbonne National Wildlife Refuge; byrevising paragraph A. of Lake OpheliaNational Wildlife Refuge; and revisingparagraph C.1. of Upper OuachitaNational Wildlife Refuge to read asfollows:

§ 32.37 Louisiana.

* * * * *

D’Arbonne National Wildlife Refuge

* * * * *C. Big Game Hunting. * * *1. Hunters may hunt either-sex deer

with firearms during the second andthird either-sex firearms seasons forUnion Parish.* * * * *

Lake Ophelia National Wildlife RefugeA. Hunting of Migratory Game Birds.

Hunters may hunt ducks and coots on


designated areas of the refuge subject tothe following condition:

1. Hunters must possess a refuge dailypermit.* * * * *

Upper Ouachita National WildlifeRefuge

* * * * *C. Big Game Hunting. * * *1. Hunters may hunt either-sex deer

with firearms during the second andthird either-sex firearms seasons forUnion Parish.* * * * *

10. Section 32.38 Maine is amendedby revising paragraphs A., B., and C., ofRachel Carson National Wildlife Refugeto read as follows:

§ 32.38 Maine.

* * * * *

Rachel Carson National Wildlife Refuge

A. Hunting of Migratory Game Birds.Hunters may hunt ducks, geese, coots,woodcock and snipe on designatedareas of the refuge subject to thefollowing conditions:

1. Hunters must possess a refugepermit.

2. Hunters must remove all personalproperty from the refuge after each day’shunt.

B. Upland Game Hunting. Huntersmay hunt upland game birds, graysquirrel, cottontail rabbit, snowshoehare, fox and coyote on designated areasof the refuge subject to the followingconditions:


2. Hunters may hunt fox and coyoteonly during the State firearm deerseason.

3. Hunters during firearms big gameseason must wear in a conspicuousmanner on head, chest and back aminimum of 400 square inches (10.16square meters) of solid-colored hunterorange clothing or material.


C. Big Game Hunting. Hunters mayhunt deer on designated areas of therefuge subject to the followingconditions:


2. Hunters during firearms big gameseason must wear in a conspicuousmanner on head, chest and back aminimum of 400 square inches (10.16square meters) of solid-colored hunterorange clothing or material.* * * * *

11. Section 32.39 Maryland isamended by revising the refuge heading,

the introductory text of paragraphs A.,B., and C.; and revising paragraph D., ofPatuxent Research Refuge, to read asfollows:

§ 32.39 Maryland.

* * * * *

Patuxent Research Refuge

A. Hunting of Migratory Game Birds.Hunters may hunt migratory game birdson designated areas of the refuge subjectto the following conditions:* * * * *

B. Upland Game Hunting. Huntersmay hunt upland game on designatedareas of the refuge subject to thefollowing conditions:* * * * *

C. Big Game Hunting. Hunters mayhunt deer on designated areas of therefuge subject to the followingconditions:* * * * *

D. Sport Fishing. Fishermen may fishin designated waters of the refuge atdesignated times subject to thefollowing conditions:

1. Fishermen may fish only indelineated areas as shown on a mapavailable at the refuge.

2. Fresh water fishing and boatinglaws of the State of Maryland apply toinclude opening/closing of seasons andcreel limits.

3. Fishermen may use hook and linetackle and baits permitted by Marylandlaw, with the exception of live minnowsor other fish.

4. Special provisions: Cash Lake, a 54acre lake located on the South Tractrequires a federal permit to fish, and alimit of 25 daily permits will be issued.Persons may request a permitapplication by contacting: NationalWildlife Visitor Center, Laurel,Maryland, during normal workinghours. Each request must include theperson’s name, address, and phonenumber, and the model, year andlicense number of the vehicle that willdrive to the refuge. You may request afishing date 1 week prior to when youplan to fish. One licensed angler or upto two children under the age of 16 mayaccompany the permit holder. Openseason is June 15 through October 15: 6a.m. to legal sunset daily. You may fishfor the following species: Bass, pickerel,catfish, and sunfish. Daily creel limits:bass, catch and release only; pickerel,catch and release only except you maykeep one pickerel greater than 15 inchesin length; sunfish and catfish, 15 perday total fish limit. Permittees may useboats subject to the followingconditions: no gasoline motorspermitted; You may not trailer boats to

the water; boats other than canoes maynot exceed 14 feet; you may not usesailboats or kayaks.

12. Section 32.40 Massachusetts isamended by revising paragraph C., ofParker River National Wildlife Refuge toread as follows:

§ 32.40 Massachusetts.

* * * * *

Parker River National Wildlife Refuge

* * * * *C. Big Game Hunting. Hunters may

hunt white-tailed deer on designatedareas of the refuge subject to thefollowing conditions:

1. Hunters must possess a refugepermit.* * * * *

13. Section 32.42 Minnesota isamended by revising introductory textof paragraph B., of Rice Lake NationalWildlife Refuge; by adding inalphabetical order Windom WetlandManagement District to read as follows:

§ 32.42 Minnesota.* * * * *

Rice Lake National Wildlife Refuge


may hunt ruffed grouse, spruce grouse,grey and fox squirrels, cottontail rabbitand snowshoe hare on designated areasof the refuge.

Windom Wetland Management DistrictA. Hunting of Migratory Game Birds.

Hunters may hunt migratory game birdsthroughout the district except thathunters may not hunt on theWorthington Waterfowl ProductionArea in Nobles County.

B. Upland Game Hunting. Huntersmay hunt upland game throughout thedistrict except that hunters may nothunt on the Worthington WaterfowlProduction Area in Nobles County.

C. Big Game Hunting. Hunters mayhunt big game throughout the districtexcept that hunters may not hunt on theWorthington Waterfowl ProductionArea in Nobles County.

D. Sport Fishing. Fishermen may fishthroughout the district.

14. Section 32.43 Mississippi isamended by revising paragraph D., ofDahomey National Wildlife Refuge toread as follows:

§ 32.43 Mississippi.* * * * *

Dahomey National Wildlife Refuge

* * * * *D. Sport Fishing. Fishermen may fish

on designated areas of the refuge subjectto the following condition:


1. Fishermen must possess a refugepermit.* * * * *

15. Section 32.44 Missouri is amendedby revising paragraphs B., C., and D., ofMingo National Wildlife Refuge to readas follows:

§ 32.44 Missouri.

* * * * *

Mingo National Wildlife Refuge


may hunt upland game on designatedareas of the refuge subject to postedregulations.

C. Big Game Hunting. Hunters mayhunt big game on designated areas of therefuge subject to posted regulations.

D. Sport Fishing. Fishermen may fishon designated areas of the refuge subjectto posted regulations.* * * * *

16. Section 32.47 Nevada is amendedby revising paragraph B., of AshMeadows National Wildlife Refuge; andby revising paragraphs D.2, D.4., D.5.,and D.8. of Ruby Lake National WildlifeRefuge to read as follows:

§ 32.47 Nevada.

* * * * *

Ash Meadows National Wildlife Refuge


may hunt quail, cottontail rabbits, andjackrabbits on designated areas of therefuge subject to the followingconditions:

1. Hunters may hunt cottontail rabbitsand jackrabbits only during the Statequail hunting season.

2. Hunters must only use shotguns.* * * * *

Ruby Lake National Wildlife Refuge


* * * * *2. Fishermen may only fish on dikes

in the areas north of the Brown Dike andeast of the Collection Ditch with theexception that you may fish by wadingand from personal flotation devices(float tubes) in Unit 21.* * * * *

4. Fishermen may annually, beginningJune 15 and continuing until December31, only use motorless boats or boatswith battery powered electric motors onthe South Marsh.

5. Fishermen may annually, beginningAugust 1 and continuing untilDecember 31, use boats propelled witha motor or combination of motors in the

aggregate, but not to exceed 10 horse-power rating, on the South Marsh.* * * * *

8. Fishermen may bank fish in theSouth Marsh only at Brown Dike, theMain Boat Landing, and Narciss BoatLanding.* * * * *

17. Section 32.49 New Jersey isamended by revising paragraph A. andadding paragraphs A.1., A.2., and A.3.,of Cape May National Wildlife Refuge toread as follows:* * * * *

§ 32.49 New Jersey.

* * * * *

Cape May National Wildlife RefugeA. Hunting of Migratory Game Birds.

Hunting of waterfowl, coots, moorhensand rails, common snipe, and woodcockis permitted in designated areas of therefuge subject to State of New Jerseyregulations and the following specialrefuge conditions:

1. All persons while huntingmigratory game birds, except waterfowl,must wear in a conspicuous manner onhead, chest and back a minimum of 400square inches of solid-colored hunterorange clothing or material.

2. All hunting blind materials, boats,and decoys must be removed at the endof each hunting day. Permanent and pitblinds are not permitted.

3. The common snipe season on therefuge begins with the early woodcocksouth zone season. (The refuge commonsnipe season will continue through theend of the State-set common snipeseason.)* * * * *

18. Section 32.50 New Mexico isamended by revising paragraphs A.1.and D., of Bitter Lake National WildlifeRefuge to read as follows:

§ 32.50 New Mexico.

* * * * *

Bitter Lake National Wildlife RefugeA. Hunting of Migratory Game Birds.

* * *1. Hunters may hunt for migratory

game birds only on Tuesdays,Thursdays, and Saturdays of each weekuntil 1 p.m.* * * * *

D. Sport Fishing. [Reserved]* * * * *

19. Section 32.52 North Carolina isamended by revising paragraphs C. andD.3., of Mattamuskeet National WildlifeRefuge; and revising introductorylanguage of paragraphs A., B., C. and D.,and revising paragraphs B.1., D.1–5; andremoving paragraphs B.2–4 of Pee Dee

National Wildlife Refuge to read asfollows:

§ 32.52 North Carolina.

* * * * *

Mattamuskeet National Wildlife Refuge


hunt white-tailed deer on designatedareas of the refuge subject to thefollowing condition:


D. Sport Fishing. * * ** * * * *

3. Fishermen may not dip herring(alewife).* * * * *

Pee Dee National Wildlife Refuge

A. Hunting of Migratory Game Birds.Hunters may hunt mourning doves ondesignated areas of the refuge subject tothe following condition:


B. Upland Game Hunting. Huntersmay hunt quail, squirrel, rabbit, raccoonand opossum on designated areas of therefuge subject to the followingcondition:


C. Big Game Hunting. Hunters mayhunt white-tailed deer on designatedareas of the refuge subject to thefollowing condition:

1. Hunters always must possess arefuge permit and a special quota permitfor gun deer hunts.

D. Sport Fishing. Fishermen may fishin designated waters of the refugesubject to the following conditions:

1. Fishermen may fish with a pole andline or rod and reel from March 15 toOctober 15 during daylight hours only.

2. Fishermen may use boats inAndrews Pond, Beaver Ponds, andArrowhead Lake only.

3. Fishermen may only use electricmotors in refuge waters.

4. Fishermen may not possess or useof trotlines, set hooks, gigs, yo-yo’s, jug-lines, limblines, nets, seines, fish traps,and other similar equipment on therefuge.

5. Fishermen may not possess or useminnows as bait on the refuge.

6. Fishermen may not frog or turtle onthe refuge.

7. The refuge may close certainfishing areas at anytime for managementpurposes.* * * * *

20. Section 32.55 Oklahoma isamended by revising paragraphs B. andC., of Deep Fork National Wildlife


Refuge; and by revising paragraphs A.,B.1., B.2., C. and D.1.; addingparagraphs B.3, B.4., B.5. and D.4., ofSequoyah National Wildlife Refuge toread as follows:

§ 32.55 Oklahoma.

* * * * *

Deep Fork National Wildlife RefugeA. Hunting of Migratory Game Birds.

[Reserved]B. Upland Game Hunting. Hunters

may hunt squirrels on portions of therefuge in accordance with State huntingregulations subject to the followingexceptions and conditions:

1. Hunters may not hunt squirrels onthe refuge during the first half of thearchery deer season.

2. Hunters may use only shotgunswith non-toxic shot.

3. The refuge leaflet designatesparking and hunting areas.

C. Big Game Hunting. Hunters mayhunt white-tailed deer on designatedportions of Deep Fork NWR subject tothe following conditions:

1. Hunters must pay fees and obtaina refuge permit.

2. Hunters must not drive offdesignated refuge roads.

3. Each hunter entering the refugemust possess a refuge permit.* * * * *

Sequoyah National Wildlife RefugeA. Hunting of Migratory Game Birds.

Hunters may hunt waterfowl, dove,coots, rail, snipe and woodcock ondesignated areas of the refuge subject tothe following conditions:

1. The Sequoyah National WildlifeRefuge is open during seasons, dates,and times as posted by signs and/orindicated on refuge leaflets, specialregulations, permits, and maps.

2. All hunters shall possess and use,while in the field, only nontoxic shot.

3. Hunters may not build pits orpermanent blinds.

4. Neither hunters nor dogs may enterclosed areas to retrieve game.

5. Hunters may not hunt or shootwithin 50 ft. (15.24 meters) ofdesignated roads or parking areas.

6. Hunters may only hunt withshotguns and bows with arrows(excluding broadhead arrows).

7. Hunters must remove decoys, boatsand other personal property from therefuge following each days hunt.

B. Upland Game Hunting. * * *1. The Sequoyah National Wildlife

Refuge is open during seasons, dates,and times as posted by signs and/orindicated on refuge leaflets, specialregulations, permits, and maps.

2. All hunters shall possess and use,while in the field, only nontoxic shot.

3. Neither hunters nor dogs may enterclosed areas to retrieve game.

4. Hunters may not shoot or huntwithin 50 ft.(15.24 meters) of designatedroads or parking areas.

5. Hunters may only hunt withshotguns and bows with arrows(excluding broadhead arrows).


1. Hunters must pay fees and obtaina refuge permit.

2. All hunters must attend a hunterorientation briefing prior to each hunt.

D. Sport Fishing. * * *1. The Sequoyah National Wildlife

Refuge is open to fishing as specified onrefuge leaflets, special regulations,permits, maps, or as posted on signs.* * * * *

4. Fishermen may not take turtles ormussels.* * * * *

21. Section 32.56 Oregon is amendedby revising paragraphs B.3, of ColdSprings National Wildlife Refuge; byrevising paragraph B.3. of McKay CreekNational Wildlife Refuge, and byrevising paragraph B.3. of UmatillaNational Wildlife Refuge to read asfollows:

§ 32.56 Oregon.* * * * *

Cold Springs National Wildlife Refuge

* * * * *B. Upland Game Hunting. * * *

* * * * *3. Hunters shall possess and use,

while in the field, only nontoxic shot.* * * * *

McKay Creek National Wildlife Refuge




Umatilla National Wildlife RefugeA. Hunting of Migratory Game

Birds. * * ** * * * *

B. Upland Game Hunting. * * ** * * * *

3. Hunters shall possess and use,while in the field, only nontoxic shot.* * * * *

22. Section 32.57 Pennsylvania isamended by revising paragraphs A., B.and C., of Ohio River Islands NationalWildlife Refuge to read as follows:

§ 32.57 Pennsylvania.* * * * *

Ohio River Islands National WildlifeRefuge

A. Hunting of Migratory Game Birds.Hunters may hunt migratory game birdson designated areas of the refuge subjectto the following conditions:


B. Upland Game Hunting. Huntersmay hunt rabbits and squirrels ondesignated areas of the refuge subject tothe following conditions:

1. Hunters may not use dogs forpursuit while rabbit hunting.

2. Hunters may only use shotguns forhunting squirrels and rabbits.




1. Hunters may only archery hunt.2. Hunters may not hunt deer with

organized deer drives by two or morehunters. A drive hereby is defined as theact of chasing, pursuing, disturbing orotherwise directing deer so as to makethe animals more susceptible to harvest.

3. Hunters must not bait deer onrefuge lands.

4. Each hunter must have in hispossession a current copy of the OhioRiver Islands National Wildlife RefugeRegulations Leaflet while participatingin a refuge hunt.* * * * *

23. Section 32.64 Utah is amended byrevising paragraphs A., B. and D. of BearRiver Migratory Bird Refuge to read asfollows:

§ 32.64 Utah.

* * * * *

Bear River Migratory Bird Refuge

A. Hunting of Migratory Game Birds.Hunters may hunt geese, ducks, coots,and tundra swan on designated areas ofthe refuge subject to the followingconditions:

1. Hunters may not shoot or huntwithin 100 yards (30.48 meters) ofprincipal refuge roads (the tour route).

2. While in the field, hunters shallpossess and use only nontoxic shot.

3. Hunters may not use pits orpermanent blinds.

4. Airboats are permitted only in Unit9 and in Block C of the Refuge.


5. Refuge closes two (2) hours aftersunset (end of shooting hours),including parking sites. Decoys, boats,vehicles and other personal propertymay not be left on the refuge overnight.

6. Hunters may only park indesignated parking sites.

7. Hunters who take or attempt to taketundra swans must possess a Utah StateSwan Permit and may not possess or usemore than 10 shells per day whilehunting swans.

8. Any person entering, using oroccupying the refuge for waterfowlhunting must abide by all the terms andconditions in the Refuge HuntingBrochure.

B. Upland Game Hunting. Huntersmay hunt pheasants on designated areasof the refuge subject to the followingconditions:

1. While in the field, hunters shallpossess and use only nontoxic shot.

C. Big Game Hunting. * * *D. Sport Fishing. Fishermen may fish

on designated areas of the refuge subjectto the following conditions:

1. Fishermen may fish year-round indesignated areas of the Refuge.* * * * *

24. Section 32.65 Vermont isamended by revising introductory textof paragraph B., and revising paragraphB.2. of Missisquoi National WildlifeRefuge to read as follows:

§ 32.65 Vermont.* * * * *

Missisquoi National Wildlife Refuge


may hunt rabbits, ruffed grouse andsquirrels on designated areas of therefuge subject to the followingconditions:* * * * *

2. Hunters may not use rifles on thatportion of the refuge lying east of theMissisquoi River.* * * * *

25. Section 32.66 Virginia is amendedby revising paragraph C., ofChincoteague National Wildlife Refugeto read as follows:* * * * *

§ 32.66 Virginia.

* * * * *

Chincoteague National Wildlife Refuge


hunt white-tailed deer and sika indesignated areas of the refuge subject tothe following conditions:

1. Hunters must possess a refugepermit.* * * * *

26. Section 32.67 Washington isamended by revising paragraph A., ofRidgefield National Wildlife Refuge; andby revising paragraph B.2., of ToppenishNational Wildlife Refuge to read asfollows:

§ 32.67 Washington.

* * * * *

Ridgefield National Wildlife Refuge

A. Hunting of Migratory Game Birds.Hunters may hunt geese, ducks, andcoots on designated areas of the refugesubject to the following condition:

1. Hunting is by permit only.* * * * *

Toppenish National Wildlife Refuge




27. Section 32.69 Wisconsin isamended by revising paragraphs B.1.,B.2., C.4. and D., of Necedah NationalWildlife Refuge; and adding UpperMississippi River National Wildlife andFish Refuge alphabetically to read asfollows:

§ 32.69 Wisconsin.

* * * * *

Necedah National Wildlife Refuge

* * * * *B. Upland Game Hunting. * * *1. Hunters must unload or case guns

in the retrieval zone of Refuge Area 7during the State waterfowl huntingseason.

2. During the spring turkey huntingseason only, persons with an unexpiredState spring turkey permit in possessionmay enter and hunt wild turkeys in allopen refuge areas.* * * * *

C. Big Game Hunting. * * ** * * * *

4. Refuge Areas 1, 2, 4, 5, 6 and 7 areopen to deer hunting.* * * * *

D. Sport Fishing. Fishermen may fishin designated waters of the refuge atdesignated times subject to thefollowing conditions.

1. Fishermen may use non-motorizedboats in Sprague-Goose Pools only whenthese pools are open to fishing.Fishermen may use motorized boats inSuk Cerney Pool.* * * * *

Upper Mississippi River NationalWildlife and Fish Refuge Refer to 32.32Illinois for regulations.

28. Section 32.71 Pacific IslandsTerritory is amended by revisingparagraphs D.1., D.3., D.4., removingparagraph D.5., and redesignatingparagraph D.6 as paragraph D.5. ofJohnson Atoll National Wildlife Refugeto read as follows:

§ 32.71 Pacific Islands Territory.

* * * * *

Johnson Atoll National Wildlife Refuge

* * * * *D. Sport Fishing. * * *1. Fishermen may take lobsters of 31⁄4-

inch carapace length or more in thelagoon area from September 1 throughMay 31, but not by spearing, traps, orthe use of pry bars or related methodsdestructive to coral; fishermen may nottake female lobsters bearing eggs at anytime.* * * * *

3. Fishermen or divers may not takefish by the use of a spear ‘‘gun’’, eitherabove or below the water. Hand-propelled spears or ‘‘Hawaiian Slings’’consisting of a single shaft propelled bya rubber tube are permitted forunderwater fishing.

4. The public may not, by any means,collect, export or take any form of liveor dead coral.* * * * *

Dated: August 27, 1996.George T. Frampton, Jr.,Assistant Secretary for Fish and Wildlife andParks.[FR Doc. 96–22507 Filed 8–30–96; 8:45 am]BILLING CODE 4310–55–P

DEPARTMENT OF COMMERCE

National Oceanic and AtmosphericAdministration

50 CFR Part 679

[Docket No. 960502124–6190–02; I.D.082796E]

Fisheries of the Exclusive EconomicZone Off Alaska; Scallop Fishery;Closure in Registration Area H

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Closure.

SUMMARY: NMFS is closing the scallopfishery in the Kamishak Bay District ofRegistration Area H (Cook Inlet). Thisaction is necessary to prevent exceeding


the scallop total allowable catch (TAC)in this area.EFFECTIVE DATE: 800 hrs, Alaska localtime (A.l.t.), August 27, 1996, until 1159hrs, A.l.t., July 1, 1997.FOR FURTHER INFORMATION CONTACT:Andrew Smoker, 907–586–7228.SUPPLEMENTARY INFORMATION: Thescallop fishery in the exclusiveeconomic zone off Alaska is managed byNMFS according to the FisheryManagement Plan for Scallop Fisheryoff Alaska (FMP) prepared by the NorthPacific Fishery Management Councilunder authority of the MagnusonFishery Conservation and Management

Act. Fishing for scallops is governed byregulations appearing at 50 CFR parts600 and 679.

In accordance with § 679.62(b) the1996 scallop TAC for the Kamishak BayDistrict of Registration Area H wasestablished by the Final 1996–97Harvest Specifications of Scallops (61FR 38099, July 23, 1996) as 20,000 lb(9,074 kg) shucked meat.

The Director, Alaska Region, NMFS,has determined, in accordance with§ 679.62(c), that the scallop TAC for theKamishak Bay District of RegistrationArea H has been reached. Therefore,NMFS is prohibiting the taking andretention of scallops in the Kamishak

Bay District of Registration Area H from800 hrs, Alaska local time (A.l.t.),August 27, 1996 through 1159 hrs, A.l.t.,July 1, 1997.

Classification

This action is taken under § 679.62and is exempt from review under E.O.12866.

Authority: 16 U.S.C. 1801 et seq.

Dated: August 27, 1996.Gary C. Matlock,Director, Office of Sustainable Fisheries,National Marine Fisheries Service.[FR Doc. 96–22369 Filed 8–28–96; 12:07 pm]BILLING CODE 3510–22–F

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

46401

Vol. 61, No. 171


DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563–AB53

Common Crop Insurance Regulations;Cotton Crop Insurance Provisions

AGENCY: Federal Crop InsuranceCorporation.

ACTION: Proposed rule.

SUMMARY: The Federal Crop InsuranceCorporation (FCIC) proposes to amendthe Cotton Crop Insurance Provisions.The intended effect of this action is toprovide policy changes to better meetthe needs of the insured and implementchanges made to the Federal CropInsurance Act by the Federal CropInsurance Reform Act of 1994.

DATES: Written comments, data, andopinions on this proposed rule will beaccepted until close of business October3, 1996 and will be considered when therule is to be made final. The commentperiod for information collection underthe Paperwork Reduction Act of 1995continues through October 29, 1996.

ADDRESSES: Interested persons areinvited to submit written comments tothe Chief, Product Development Branch,Federal Crop Insurance Corporation,U.S. Department of Agriculture, 9435Holmes Road, Kansas City, MO 64131.Written comments will be available forpublic inspection and copying in room0324, South Building, 14th andIndependence Avenue, S.W.,Washington, D.C., 8:15 a.m.–5:45 p.m.,Monday through Friday.

FOR FURTHER INFORMATION CONTACT:Stephen Hoy, Program Analyst,Research and Development Division,Product Development Branch, FCIC, at9435 Holmes Road, Kansas City, MO64131, telephone (816) 926–7730.


Executive Order No. 12866 andDepartmental Regulation 1512–1

This action has been reviewed underUnited States Department of Agriculture(USDA) procedures established byExecutive Order No. 12866 andDepartmental Regulation 1512–1. Thisaction constitutes a review as to theneed, currency, clarity, andeffectiveness of these regulations underthose procedures. The sunset reviewdate established for these regulations isMarch 1, 1999.

This rule has been determined to benot significant for the purposes ofExecutive Order No. 12866 and,therefore, has not been reviewed by theOffice of Management and Budget(OMB).

Paperwork Reduction Act of 1995The information collection

requirements contained in theregulations were previously approvedby OMB pursuant to the PaperworkReduction Act of 1995 (44 U.S.C.chapter 35) under OMB control number0563–0003 through September 30, 1998.

The amendments set forth in thisproposed rule do not contain additionalinformation collections that requireclearance by the OMB under theprovisions of 44 U.S.C. chapter 35.

The title of this information collectionis ‘‘Catastrophic Risk Protection Planand Related Requirements including,Common Crop Insurance Regulations;Cotton Crop Provisions.’’ Theinformation to be collected includes: acrop insurance acreage report, aninsurance application, and continuouscontract. Information collected from theacreage report and application iselectronically submitted to FCIC by thereinsured companies. Potentialrespondents to this informationcollection are producers of cotton thatare eligible for Federal crop insurance.

The information requested isnecessary for the insurance companyand FCIC to provide insurance, providereinsurance, determine eligibility,determine the correct parties to theagreement or contract, determine andcollect premiums or other monetaryamounts, and pay benefits.

All information is reported annually.The reporting burden for this collectionof information is estimated to average16.9 minutes per response for each ofthe 3.6 responses from approximately

1,755,015 respondents. The total annualburden on the public for thisinformation collection is 2,676,932hours.

The comment period for informationcollections under the PaperworkReduction Act of 1995 continues for thefollowing: (a) whether the proposedcollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of information; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including the use ofautomated collection techniques orother forms of information gatheringtechnology.

Comments regarding paperworkreduction should be submitted to theDesk Officer for Agriculture, Office ofInformation and Regulatory Affairs,Office of Management and Budget,Washington, D.C. 20503 and to BonnieHart, Advisory and CorporateOperations Staff, Regulatory ReviewGroup, Farm Service Agency, P.O. Box2415, Ag Box 0570, U.S. Department ofAgriculture, Washington, D.C. 20013–2415. Telephone (202)690–2857. Copiesof the information collection may beobtained from Bonnie Hart at the above-stated address.

Unfunded Mandate Reform Act of 1995

Title II of the Unfunded MandateReform of 1995 (UMRA), Pub. L. 104–4, establishes requirements for Federalagencies to assess the effects of theirregulatory actions on State, local, andtribal governments and the privatesector. Under section 202 of the UMRA,FCIC generally must prepare a writtenstatement, including a cost-benefitanalysis, for proposed and final ruleswith ‘‘Federal mandates’’ that mayresult in expenditures of State, local, ortribal governments, in the aggregate, orto the private sector, of $100 million ormore in any 1 year. When such astatement is needed for a rule, section205 of the UMRA generally requiresFCIC to identify and consider areasonable number of regulatoryalternatives and adopt the least costly,more cost-effective or least burdensome

46402 Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Proposed Rules

alternative that achieves the objectivesof the rule.

This rule contains no Federalmandates (under the regulatoryprovisions of Title II of the UMRA) forState, local, and tribal governments orthe private sector. Thus, this rule is notsubject to the requirements of section202 and 205 of the UMRA.

Executive Order No. 12612It has been determined under section

6(a) of Executive Order No. 12612,Federalism, that this rule does not havesufficient federalism implications towarrant the preparation of a FederalismAssessment. The provisions containedin this rule will not have a substantialdirect effect on States or their politicalsubdivisions or on the distribution ofpower and responsibilities among thevarious levels of government.

Regulatory Flexibility ActThis regulation will not have a

significant impact on a substantialnumber of small entities. Under thecurrent regulations, a producer isrequired to complete an application andacreage report. If the crop is damaged ordestroyed, the insured is required togive notice of loss and provide thenecessary information to complete aclaim for indemnity. If the insuredelects to use actual records of acreageand production as the basis for theproduction guarantee, the insured mayelect to report this information on ayearly basis. This regulation does notalter those requirements. Therefore, theamount of work required of theinsurance companies delivering andservicing these policies will not increasesignificantly from the amount of workcurrently required. This rule does nothave any greater or lesser impact on theproducer. Therefore, this action isdetermined to be exempt from theprovisions of the Regulatory FlexibilityAct (5 U.S.C. 605), and no RegulatoryFlexibility Analysis was prepared.

Federal Assistance ProgramThis program is listed in the Catalog

of Federal Domestic Assistance underNo. 10.450.

Executive Order No.12372This program is not subject to the

provisions of Executive Order No.12372, which require intergovernmentalconsultation with State and localofficials. See the Notice related to 7 CFRpart 3015, subpart V, published at 48 FR29115, June 24, 1983.

Executive Order No. 12778The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided insections 2(a) and 2(b)(2) of ExecutiveOrder No. 12778. The provisions of thisrule will not have a retroactive effectprior to the effective date. Theprovisions of this rule will preemptState and local laws to the extent suchState and local laws are inconsistentherewith. The administrative appealprovisions in 7 CFR parts 11 and 780must be exhausted before action forjudicial review may be brought.

Environmental EvaluationThis action is not expected to have a

significant impact on the quality of thehuman environment, health, and safety.Therefore, neither an EnvironmentalAssessment nor an EnvironmentalImpact Statement is needed.

National Performance ReviewThis regulatory action is being taken

as part of the National PerformanceReview Initiative to eliminateunnecessary or duplicative regulationsand improve those that remain in force.

BackgroundFCIC proposes to amend the Common

Crop Insurance Regulations (7 CFR part457) by revising 7 CFR Section 457.104effective for the 1997 and succeedingcrop years. The principal changes to theprovisions for insuring cotton are asfollows:

1. Section 1—Specify that the yieldconversion factor normally applied tonon-irrigated skip-row cotton acreagewill not be used if the land between therows of cotton is planted to any otherspring-planted crop. Current regulationsspecify that the yield conversion factorcannot be applied if the land betweenthe rows of cotton is planted to anycrop. This conflicts with the definitionof ‘‘skip-row’’ in section 1(q)(1), whichallows a planting pattern of alternatingrows of cotton and land planted toanother crop the previous fall. Change‘‘ASCS’’ to ‘‘Farm Service Agency(FSA)’’ to conform with the UnitedStates Department of AgricultureReorganization Act of 1994. Amend thedefinition of ‘‘written agreement’’ tomove the substantive provision tosection 13.

2. Sections 2(d) (1) and (2)—Change‘‘ASCS’’ to ‘‘FSA.’’

3. Section 2(d)(2)—Clarify unitdivision for non-irrigated corners ofcenter-pivot irrigation systems.

4. Section 5—Change the cancellationand termination dates of February 15 toJanuary 15. This change is necessary tocorrespond with the requirement of theFederal Crop Insurance Reform Act of1994 that moved the sales closing datesfor spring-planted crops to 30 days

earlier. Those areas with the presentcancellation and termination dates ofFebruary 28 and March 15 will remainthe same because these dates havealready been moved 30 days earlier inthe 1995 crop year.


Cotton, Crop insurance.Pursuant to the authority contained in

the Federal Crop Insurance Act, asamended (7 U.S.C. 1501 et seq.), theFederal Crop Insurance Corporationhereby proposes to amend the CommonCrop Insurance Regulations (7 CFR part457), effective for the 1997 andsucceeding crop years, to read asfollows:

PART 457—[AMENDED]


Authority: 7 U.S.C. 1506(1) and 1506(p)

2. Section 457.104 is amended byrevising 1(l) as follows:

§ 457.104 Cotton crop insuranceprovisions.

* * * * *1. Definitions

* * * * *(l) Planted acreage—Land in which

seed has been placed by a machineappropriate for the insured crop andplanting method, at the correct depth,into a seedbed which has been properlyprepared for the planting method andproduction practice. Cotton must beplanted in rows to be consideredplanted. Planting in any other mannerwill be considered as a failure to followrecognized good farming practices andany loss of production will not beinsured unless otherwise provided bythe Special Provisions or by writtenagreement to insure such crop. Theyield conversion factor normallyapplied to non-irrigated skip-row cottonacreage will not be used if the landbetween the rows of cotton is planted toany other spring-planted crop.* * * * *

3. Subsection 1(q)(2) is revised to readas follows:

(q) * * *(1) * * *(2) Qualifies as a skip-row planting

pattern as defined by the Farm ServiceAgency (FSA).* * * * *

4. Subsection 1(s) is revised to read asfollows:

(s) Written agreement—A writtendocument that alters designated terms ofa policy in accordance with section 13.* * * * *

46403Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Proposed Rules

5. Subsection 2(d)(1) is amended byremoving ‘‘ASCS’’ and inserting in itsplace ‘‘FSA.’’* * * * *

6. Subsection 2(d)2 is revised to readas follows:

2. Unit Division* * * * *

(d) * * *(1) * * *(2) Optional Units on Acreage

Including Both Irrigated and Non-Irrigated Practices: In addition to, orinstead of, establishing optional units bySection, section equivalent, or FSAFarm Serial Number, optional units maybe based on irrigated acreage or non-irrigated acreage if both are located inthe same section, section equivalent, or

FSA Farm Serial Number. To qualify asseparate irrigated and non-irrigatedoptional units, the non-irrigated acreagemay not continue into the irrigatedacreage in the same rows or plantingpattern. The irrigated acreage may notextend beyond the point at which theirrigation system can deliver thequantity of water needed to produce theyield on which the guarantee is based,except that the corners of a field inwhich a center-pivot irrigation system isused will be considered as irrigatedacreage unless separate acceptablerecords of production from the cornersare provided indicating otherwise. If thecorners of a field in which a center-pivot irrigation system is used do notqualify as a separate non-irrigated

optional unit, they will be consideredpart of the unit containing the irrigatedacreage. Non-irrigated acreage that is nota part of a field in which a center-pivotirrigation system is used may qualify asa separate optional unit provided thatall other requirements of this section aremet.* * * * *

7. Section 5 is revised to read asfollows:

5. Cancellation and Termination DatesIn accordance with section 2 (Life of

Policy, Cancellation, and Termination)of the Common Crop Insurance Policy(§ 457.8), the cancellation andtermination dates are:

State and county Cancellation andtermination dates

Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, Karnes, Goliad, Victoria, and Jackson Counties, Texas, and all Texascounties lying south thereof.

January 15.

Alabama; Arizona; Arkansas; California; Florida; Georgia; Louisiana; Mississippi; Nevada; North Carolina; South Carolina; ElPaso, Hudspeth, Culberson, Reeves, Loving, Winkler, Ector, Upton, Reagon, Sterling, Coke, Tom Green, Concho,McCulloch, San Saba, Mills, Hamilton, Bosque, Johnson, Tarrant, Wise, and Cooke Counties, Texas, and all Texas coun-ties lying south and east thereof to and including Terrell, Crocket, Sutton, Kimble, Gillespie, Blanco, Comal, Guadalupe,Gonzales, De Witt, Lavaca, Colorado, Wharton, Matagorda Counties, Texas.

February 28.

All other Texas counties and all other States ................................................................................................................................ March 15.

* * * * *8. Section 13 is added to read as

follows:13. Written AgreementsDesignated terms of this policy may

be altered by written agreement. Thefollowing conditions will apply:

(a) You must apply in writing for eachwritten agreement no later than the salesclosing date, except as provided insection 13(e).

(b) The application for writtenagreement must contain all terms of thecontract between the insurance providerand the insured that will be in effect ifthe written agreement is not approved.

(c) If approved, the written agreementwill include all variable terms of thecontract, including, but not limited to,crop type or variety, the guarantee,premium rate, and price election.

(d) Each written agreement will onlybe valid for 1 year. If the writtenagreement is not specifically renewedthe following year, insurance coveragefor subsequent crop years will be inaccordance with the printed policy.

(e) An application for writtenagreement submitted after the salesclosing date may be approved if, afterphysical inspection of the acreage, it isdetermined that no loss has occurredand the crop is insurable in accordancewith the policy and written agreementprovisions.

Signed in Washington, D.C., on August 23,1996.Kenneth D. Ackerman,Manager, Federal Crop InsuranceCorporation.[FR Doc. 96–22320 Filed 8–30–96; 8:45 am]BILLING CODE 3410–FA–P

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco andFirearms

27 CFR Part 9

[Notice No. 838]

RIN 1512–AA07

Redwood Valley Viticultural Area (95R–053P)

AGENCY: Bureau of Alcohol, Tobaccoand Firearms (ATF), Treasury.ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Bureau of Alcohol,Tobacco and Firearms (ATF), hasreceived a petition for the establishmentof a viticultural area located within theeast central interior portion ofMendocino County, California to beknown as ‘‘Redwood Valley,’’ under 27CFR part 9. This proposal is the resultof a petition submitted by Mr. TimothyR. Buckner and prepared by Mr.Buckner, Mr. Jefferson Hinchliffe, Mr.

Ulysses Lolonis, and Rudolph H. Light.The petition was signed by 20 growersand winemakers in ‘‘Redwood Valley.’’In addition, 4 letters of support for theproposed area have been received fromgrowers and winemakers in theproposed area. ‘‘Redwood Valley’’ is anunincorporated rural community inMendocino County of northwesternCalifornia with approximately 6,000people spread out over about 35 squaremiles. It is currently the home of sevenwineries that produce varietal winesdistributed around the world. There are66 vineyard owners farming 2,371 acresof wine grapes.DATES: Written comments must bereceived by October 18, 1996.ADDRESS: Send written comments to:Chief, Wine, Beer, and SpiritsRegulations Branch, Bureau of Alcohol,Tobacco and Firearms, PO Box 50221,Washington, DC 20091–0221 (Attn:Notice No. 838). Copies of the petition,the proposed regulations, theappropriate maps, and writtencomments will be available for publicinspection during normal businesshours at: ATF Public Reading Room,Office of Public Affairs and Disclosure,Room 6480, 650 Massachusetts Avenue,NW, Washington, DC.FOR FURTHER INFORMATION CONTACT:David W. Brokaw, Wine, Beer, andSpirits Regulations Branch, Bureau ofAlcohol, Tobacco and Firearms, 650


Massachusetts Avenue, NW,Washington, DC 20226, (202) 927–8230.


Background

On August 23, 1978, ATF publishedTreasury Decision ATF–53 (43 FR37672, 54624) revising regulations in 27CFR part 4. These regulations allow theestablishment of definitive viticulturalareas. The regulations allow the name ofan approved viticultural area to be usedas an appellation of origin on winelabels and in wine advertisements. OnOctober 2, 1979, ATF publishedTreasury Decision ATF–60 (44 FR56692) which added a new part 9 to 27CFR, providing for the listing ofapproved American viticultural areas,the names of which may be used asappellations of origin.

Section 4.25a(e)(l), title 27, CFR,defines an American viticultural area asa delimited grape-growing regiondistinguishable by geographic features,the boundaries of which have beendelineated in subpart C of part 9.

Section 4.25a(e)(2), title 27, CFR,outlines the procedure for proposing anAmerican viticultural area. Anyinterested person may petition ATF toestablish a grape-growing region as aviticultural area. The petition shouldinclude:

(a) Evidence that the name of theproposed viticultural area is locallyand/or nationally known as referring tothe area specified in the petition;

(b) Historical or current evidence thatthe boundaries of the viticultural areaare as specified in the petition;

(c) Evidence relating to thegeographical characteristics (climate,soil, elevation, physical features, etc.)which distinguish the viticulturalfeatures of the proposed area fromsurrounding areas;

(d) A description of the specificboundaries of the viticultural area,based on features which can be foundon United States Geological Survey(U.S.G.S.) maps of the largest applicablescale, and;

(e) A copy (or copies) of theappropriate U.S.G.S. map(s) with theproposed boundaries prominentlymarked.

Petition

ATF has received a petition from Mr.Timothy Buckner proposing to establisha new viticultural area located withinthe east central interior portion ofMendocino County, California to beknown as ‘‘Redwood Valley,’’ under 27CFR part 9.

There are currently seven wineries in‘‘Redwood Valley.’’ The dates they were

bonded are as follows: Fetzer (1968),Weibel (1972), Frey (1980), Lolonis(1983), Elizabeth (1987), Konrad (1989),and Gabrielli (1991).

Evidence That the Name of theProposed Area Is Locally or NationallyKnown

The petitioner states that, ‘‘RedwoodValley’’ is an unincorporated ruralcommunity in Mendocino County ofnorthwestern California withapproximately 6,000 people spread outover about 35 square miles. Accordingto the petitioner, it is currently thehome of seven wineries that producepremium to ultra premium varietalwines distributed around the world.According to the petitioner, ‘‘RedwoodValley’’ grapes are used in vineyarddesignated wines made by wineriesthroughout the region. The petitionerfurther states that, there are 66 vineyardowners farming 2,371 acres of winegrapes in Redwood Valley. There are855 acres of white winegrapes (36%)and 1,516 (64%) planted in red varietiesin Redwood Valley according to thepetitioner.

History and TraditionAccording to the petitioner, the area

has been known by the proposedviticultural area name for over acentury. The petitioner states that someearly settlers arrived in ‘‘RedwoodValley’’ in the mid 1850s, and that therewas a thriving community by 1900. Thepetitioner states that from as early as the1870s, grape growing and wine makingwere an important part of the economyand culture of ‘‘Redwood Valley.’’According to the petitioner, one of theearliest published mentions of‘‘Redwood Valley’’ as a grape growingregion was in a March 7, 1913, articlein the Ukiah Republican Press (1885–1954), which described ‘‘RedwoodValley’’ as ‘‘* * * admirably adaptedfor the grape and fruit land in NorthernCalifornia.’’

In the March 17, 1913 issue of theUkiah Dispatch Democrat, the petitionerfound the following article: TheRedwood Valley Improvement ClubAccomplishing Splendid Results ByConcentrated Action andProgressiveness, which stated asfollows: ‘‘This is perhaps at the presenttime one of the most importantindustries of the valley, with hundredsof acres in vineyards and severalimportant wineries in active operation,and because of the statementsmade * * * by Professor Bioletti, thegrape question has taken on a renewedactivity. Redwood Valley grapes areexceptionally rich in sugar and are indemand because they raise the quality

of wine. Much of the valley’s product iscontracted for over a term ofyears * * * (g)rapes producesplendidly on the bench lands of thevalley, and because of the sunshine andclimatic conditions mature and producethe ideal wine grapes.’’

In the Santa Rosa Press Democrat, thepetitioner found an article printed onJuly 31, 1949, and titled, ‘‘It’s HowdyNeighbor To Calpella, RedwoodValley,’’ by Mike Pardee. According tothe petitioner, this article states that,‘‘[a]pproximately half of MendocinoCounty’s present grape acreage of 7,700acres is in Redwood Valley. FarmAdvisor R.D. Foote of MendocinoCounty said. ‘‘The Valley thus raisedabout half of the county’s 17,000 tonsproduced last year (1948) * * *Redwood Valley for years has been oneof Mendocino County’s most importantfarming sections. Its 314 families for themost part farmers * * *. They’ll tellyou that those grapes make the finestwines in the region’.’’

Name Evidence‘‘Redwood Valley’’ is recognized by

the United States Postal Service as adistinct community with the Zip Code95470. The U.S.G.S. uses the name‘‘Redwood Valley’’ Quadrangle on its1:24,000 topographic map. Thepetitioner states that the valley has adomestic and irrigation water supplierknown as ‘‘Redwood Valley CountyWater District.’’ The petitioner pointsout that a number of entities give thearea its sense of identity, including the‘‘Redwood Valley Grange,’’ ‘‘RedwoodValley School,’’ ‘‘Redwood ValleyShopping Center,’’ ‘‘Redwood ValleyIndustrial Park.’’ According to thepetitioner, businesses and organizationsusing the ‘‘Redwood Valley’’ nameinclude a large vineyard, a gravel plant,2 churches, a Pomo Indian Rancheria,and so on. The petitioner providedphotocopies of stationery and businesscards from six private and three publicentities that use the name ‘‘RedwoodValley’’ in their title. According to thepetitioner, each of the entities arecurrently in business and located in‘‘Redwood Valley.’’

Historical or Current Evidence That theBoundaries of the Proposed ViticulturalArea Are as Specified in the Petition

According to the petitioner, theproposed ‘‘Redwood Valley’’ viticulturalarea boundaries are roughly thewatershed that forms the headwaters ofthe west fork of the Russian River,including Forsythe Creek. Starting at thenorthern tip of the valley and followingthe ridge tops, the area widens out tothe south as far as State Highway 20.


Across Highway 20 to the south is thecommunity of Calpella. Highway 20provides a distinct southern boundaryfor the proposed viticultural area. Thepetitioner states that Calpella has adifferent zip code, water district, school,etc. than Redwood Valley. Furthermore,according to the petitioner, the soils andclimate of Calpella occupy a transitionzone between Ukiah and ‘‘RedwoodValley.’’

Evidence Relating to the GeographicalFeatures (Climate, Soil, Elevation,Physical Features, Etc.) WhichDistinguish the Viticultural Features ofthe Proposed Area From SurroundingAreas

TopographyAccording to the petitioner, the

geography of the area sets it apart fromsurrounding areas in several respects.The petitioner states that, ‘‘RedwoodValley’’ is clearly defined by the ridgesof the coastal mountain range thatsurrounds it and that the Valley floorslopes gently up in elevation fromaround 750′ to 900′ above sea level. Thepetitioner states that the mountainridges rise steeply from the valley floorto over 3,350′ elevation. The petitionerstates that most of the grapes are grownat an elevation between 750′ and 1,500′above sea level. At the south end of thevalley the foothills close in from the eastand west to form a narrowed throatthrough which the Russian River flowssouth. This narrowing is also whereHighway 20 crosses the valley and theriver to intersect with Highway 101. Thepetitioner states that this combination oflandforms provides a natural set ofboundaries for the proposed viticulturalarea. These features combine in severalways to produce growing conditionswhich distinguish the proposed areafrom surrounding areas, according to thepetitioner. The petition contends thatthe soils, as well as the micro, meso,and macro climates are all factors thatdistinguish the proposed viticulturalarea from surrounding areas.

SoilsAccording to the petitioner, while all

of the specific soil series that are foundin ‘‘Redwood Valley’’ also exist in thesurrounding areas, the proportions ofthe soils in ‘‘Redwood Valley’’distinguish it from the surroundingareas. The petitioner states that, TheWine Regions of America, a bookwritten by John J. Baxevanis in 1992,gives the following description of theRedwood Valley area. ‘‘Redwood Valley,the northernmost of the string ofRussian River Valleys, lies (eight) milesnorth of Ukiah and Lake Mendocino on

a series of higher terraces. Representingthe birthplace of Mendocinowinemaking, it is the home of some ofthe county’s largest wineries. With morethan 40 percent of the county’s acreage,it is the most important of all theproducing regions in the two countyregion [Lake and Mendocino]. A regionII area, it produces above-averagequality Zinfandel, Cabernet Sauvignon,Chardonnay, Petite Sirah, andSauvignon Blanc. One of its elements ofcelebrity is the considerable quantity ofManzanita soil.’’ (pg. 295). Thepetitioner was unable to ascertain theorigin of the term ‘‘Manzanita soil.’’However, he states that, ‘‘RedwoodValley does contain the largest depositof the famous Redvine soil in the regionand perhaps it is this to whichBaxevanis refers.’’

According to the petitioner, the soilsin the proposed area have severalunique features as determined by theU.S.D.A. Soil Conservation Service(SCS).

The 1991 Soil Survey of MendocinoCounty, Eastern Part, and TrinityCounty, Southwestern Part, California,was used extensively by the petitionerto determine the identity and areas ofsoils for comparison. Whereas all of thespecific soil series that are found in‘‘Redwood Valley’’ occur in thesurrounding area, it is the proportionsin which they appear in ‘‘RedwoodValley’’ that are unique.

The petitioner states that ‘‘RedwoodValley’’ has by far the largest deposit ofRedvine Series soil (#184–186 SCSSurvey) in the area. According to thepetitioner, nearly one quarter of theproposed viticultural area’s plantableacreage is composed of soils of theRedvine Series. Potter ValleyViticultural Area to the east has noRedvine Series soils. The petitionercontends that the Calpella/Ukiah area tothe south of ‘‘Redwood Valley’’ has afew small and isolated pockets ofRedvine soils but their combined areaamounts to less than 10% of the areacovered by Redvine Series soils in‘‘Redwood Valley.’’

Another soil series that stands out,according to the petitioner, is the PinoleGravelly Loam (#178–180 SCS Survey),which also occurs in the Potter Valleyand Ukiah areas, but is a much smallercomponent of the areas’ overallcomposition. According to thepetitioner, ‘‘Redwood Valley’’ has threetimes as much Pinole Gravelly Loam aseither of these other two areas. Thepetitioner states that this soil typemakes up nearly a third of ‘‘RedwoodValley’s’’ growing area.

The petitioner states that the Redvineand Pinole Gravelly Loam soil series

comprise over half of the vineyardacreage of ‘‘Redwood Valley,’’ and thatthe rest are an amalgam of six othertypes: Feliz, Pinnobie, Yokayo, Russian,Talmage, and Yokayo/Pinole/Pinobie.According to the petitioner, these lastsix general types (plus traces of a fewmore types) evidence themselves in theneighboring areas in varying proportion,but all play a larger role elsewhere thanthey do in ‘‘Redwood Valley.’’

The petitioner provided a tableillustrating the proportions of soil typesin the ‘‘Redwood Valley’’ area comparedwith the Ukian/Calpella area. Thesefigures were derived from SCS mapsand soil descriptions, and weremeasured with a Compensating PolarPlanimeter. The table indicates that,while ‘‘Redwood Valley’’ contains mostof the same soil types as the UkiaValley, such soils are present indifferent quantities in the respectiveareas.

ClimateOne local winemaker, Jefferson

Hinchliffe of Gabrielli Winery stated asfollows about the way ‘‘RedwoodValley’s’’ unique climate and soilsmanifest themselves in the wine: ‘‘Ihave been making wines from the manydistricts of Mendocino County for (t)enyears. During that period I havedeveloped a sense of what distinguishesthe wines of Redwood Valley * * *.The wines in general are of higheracidity and later maturity than of UkiahValley. The typical picking schedule fora given variety would begin with theHopland-Sanel area, followed by Ukiah-Calpella, and then Redwood Valley.Comparisons with Potter Valley arebased on fewer varieties since PotterValley is planted mainly to earlyripening Pinot and Chardonnay.Anderson Valley north of Boonvilleripens later than Redwood Valley * * *Acidity, color (especially in Pinot Noir),and phenolic content are higher inRedwood Valley than in adjacentregions. Higher temperatures in generallower phenolic content, color, andacidity * * *. Late ripening varietiescan have difficulty ripening in RedwoodValley. Cabernet in general is able totolerate the rain associated with the lateseason, but more fragile varieties suchas Petite Sirah, Carignane, andSangiovese can rot before ripening inheavier soils when bearing large crops.Conservative farming can producestellar examples of these varieties* * *.’’

Another wine maker, Jed Steele, ofSteele Wines submitted a letter ofsupport for the petition, in which hestated as follows. ‘‘[T]he REDWOODVALLEY of Mendocino County is an


excellent and singular grape growingregion, certainly worthy of receiving aseparate viticultural district designation* * *. It appears that REDWOODVALLEY’S particular climate allows forattaining many of the positive qualityfactors found in grapes grown in thecooler regions of Mendocino (AndersonValley, etc.) as well as giving harveststhat allow for more consistent maturityfound in the more interior valleys(Potter Valley, etc.) of this county.’’

In addition, the February 15, 1993issue of The Wine Spectator, page 11,contains an article entitled ‘‘California’sRedwood Valley Moves Out of theShadows,’’ by Robyn Bullard, whichstates as follows. ‘‘Wineries such asFetzer, Weibel, and Frey have been inRedwood Valley for years, but now fourmore wineries have cropped up. Theregion boasts good soil and operatingcosts that are cheaper than other areasin Northern California * * * Costsaside, Redwood Valley vineyards havelong yielded quality grapes * * *Compared to the hot Ukiah Valley,Redwood Valley is much cooler. Thearea rarely gets fog, but the terrain andlocation allow ocean breezes—the samewinds that cool Anderson Valley.’’

According to the petitioner, there area number of factors that make‘‘Redwood Valley’’ climatically distinct.The petitioner provided a table listingthe major agricultural areas ofMendocino County and their respectiveclimatic region and number of degreedays, as reflected in the SCS SoilSurvey, 1991, pg. 4. Degree day figuresfor Anderson Valley were unavailable.The table indicates that ‘‘RedwoodValley’’ has 2,914 degree days and is theonly Region II Climate in MendocinoCounty, factors that the petitioner statesare significant. In support of thisassertion, the petitioner cites the grapegrowing textbook General Viticulture,1974, by Winkler et al., which he statescontains the following excerpt: ‘‘RegionII.—An area of great importance. Thevalleys can produce most of thepremium-quality and good standardwhite and red table wines of California.The less productive slopes and hillsidesvineyards cannot compete in growinggrapes for standard wines, because oflower yield, but, nevertheless, canproduce favorable yields of fine wines’’(pgs. 66–67).

The petitioner states that, ‘‘(s)inceNovember of 1987, Light Vineyard ofRedwood Valley (Latitude 39 degrees18.32′, Longitude 123 degrees 12.46′,elevation 800′) has maintained a U.S.Weather Bureau standard weatherstation including the followinginstruments: maximum/minimumthermometer, Belfort Recording

Hygrothermograph, Belfort RecordingPyranograph, Totalizing Anemometer,Evaporation Pan, and Rain Gauge.Readings are taken daily, and data aretransmitted monthly to the CaliforniaIrrigation Management InformationService in Sacramento.’’

According to the petitioner, recordsfrom this station show that, in the mostrecent eight year period, the ‘‘RedwoodValley’’ received 22% more rainfall thanthe Ukiah Valley. The petitionerprovided a table comparing the monthlytotals for rainfall in ‘‘Redwood Valley’’and Ukiah, for the eight year period forwhich they have maintained records.The table and charts were prepared fromdata gathered from the Light VineyardWeather station which meets U.S.Weather Bureau standards. According tothese records, the average total monthlyrainfall in Ukiah Valley was 32.48inches during the period of July throughJune compared to an average total of39.62 inches for ‘‘Redwood Valley’’during the same period. The petitioneralso provided a graph comparing theannual rainfall values for ‘‘RedwoodValley’’ and Ukiah Valley averaged overa six year period. The graph indicatesthat the precipitation values for‘‘Redwood Valley’’ were consistentlyhigher than those for Ukia Valley overthe six year period measured.

According to the petitioner,‘‘Redwood Valley’s’’ temperatures areseveral degrees lower in daily lows thanUkiah Valley. The petitioner states that,‘‘(t)his accounts for the lower growingdegree day totals in Redwood Valleyand its placement in Region II. So,although Redwood Valley may reachdaily high temperatures similar to theUkiah area, because of cooler nightsthere remains a longer morning coolperiod. The petitioner also provided achart comparing monthly averagetemperatures for the two areas averagedover a six year period.

This chart supports the petitioner’scontentions regarding average maximumand minimum temperatures.

Proposed BoundariesThe proposed ‘‘Redwood Valley’’

viticultural area is located in eastcentral Mendocino County, California.The proposed boundaries of theviticultural area can be found on fourU.S. Geological Survey QuadrangleMaps labeled, ‘‘Redwood Valley, Calif.’’1960, photorevised 1975, ‘‘Ukiah,Calif.’’ 1958, photorevised 1975,‘‘Laughlin Range, Calif.’’ 1991 and, ‘‘OrrSprings, California, provisional edition’’1991. All are 7.5 minute series maps. Itshould be noted that the entire easternboundary of the proposed ‘‘RedwoodValley’’ viticultural area abuts the

western boundary of the Potter Valleyviticultural area.

Public Participation—WrittenComments

ATF requests comments from allinterested persons. Comments receivedon or before the closing date will becarefully considered. Commentsreceived after that date will be given thesame consideration if it is practical todo so. However, assurance ofconsideration can only be given tocomments received on or before theclosing date.

ATF will not recognize any submittedmaterial as confidential and commentsmay be disclosed to the public. Anymaterial which the commenterconsiders to be confidential orinappropriate for disclosure to thepublic should not be included in thecomments. The name of the personsubmitting a comment is not exemptfrom disclosure.

Comments may be submitted byfacsimile transmission to (202) 927–8602, provided the comments: (1) Arelegible; (2) are 81⁄2′′×11′′ in size, (3)contain a written signature, and (4) arethree pages or less in length. Thislimitation is necessary to assurereasonable access to the equipment.Comments sent by FAX in excess ofthree pages will not be accepted.Receipt of FAX transmittals will not beacknowledged. Facsimile transmittedcomments will be treated as originals.

Any person who desires anopportunity to comment orally at apublic hearing on the proposedregulation should submit his or herrequest, in writing, to the Directorwithin the 45-day comment period. TheDirector, however, reserves the right todetermine, in light of all circumstances,whether a public hearing will be held.

Paperwork Reduction ActThe provisions of the Paperwork

Reduction Act of 1995, Pub. L. 96–511,44 U.S.C. Chapter 35, and itsimplementing regulations, 5 CFR part1320, do not apply to this noticebecause no requirement to collectinformation is proposed.

Regulatory Flexibility ActIt is hereby certified that this

proposed regulation will not have asignificant impact on a substantialnumber of small entities. Theestablishment of a viticultural area isneither an endorsement nor approval byATF of the quality of wine produced inthe area, but rather an identification ofan area that is distinct from surroundingareas. ATF believes that theestablishment of viticultural areas


merely allows wineries to moreaccurately describe the origin of theirwines to consumers, and helpsconsumers identify the wines theypurchase. Thus, any benefit derivedfrom the use of a viticultural area nameis the result of the proprietor’s ownefforts and consumer acceptance ofwines from that region.

Accordingly, a regulatory flexibilityanalysis is not required because theproposal, if promulgated as a final rule,is not expected (1) to have significantsecondary, or incidental effects on asubstantial number of small entities; or(2) to impose, or otherwise cause asignificant increase in the reporting,recordkeeping, or other complianceburdens on a substantial number ofsmall entities.

Executive Order 12866It has been determined that this

proposed regulation is not a significantregulatory action as defined byExecutive Order 12866. Accordingly,this proposal is not subject to theanalysis required by this executiveorder.

Drafting InformationThe principal author of this document

is David W. Brokaw, Wine, Beer, andSpirits Regulations Branch, Bureau ofAlcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 9Administrative practices and

procedures, Consumer protection,Viticultural areas, and Wine.

Authority and IssuanceTitle 27, Code of Federal Regulations,

part 9, American Viticultural Areas, isproposed to be amended as follows:

PART 9—AMERICAN VITICULTURALAREAS

Paragraph 1. The authority citationfor Part 9 continues to read as follows:


Subpart C—Approved AmericanViticultural Areas

Par. 2. Subpart C is amended byadding § 9. to read as follows:* * * * *

§ 9 Redwood Valley.(a) Name. The name of the viticultural

area described in this section is‘‘Redwood Valley.’’

(b) Approved maps. The appropriatemaps for determining the boundary ofthe Redwood Valley viticultural area arefour Quadrangle 7.5 minute series1:24,000 scale U.S.G.S. topographicalmaps. They are titled:

(1) ‘‘Redwood Valley, Calif.’’ 1960,photorevised 1975.

(2) ‘‘Ukiah, Calif.’’ 1958, photorevised1975.

(3) ‘‘Laughlin Range, Calif.’’ 1991.(4) ‘‘Orr Springs, California,

provisional edition’’ 1991.(c) Boundary. The Redwood Valley

viticultural area is located in the eastcentral interior portion of MendocinoCounty, California. The boundaries ofthe Redwood Valley viticultural area,using landmarks and points of referencefound on appropriate U.S.G.S. maps,follow.

(1) The beginning point is theintersection of State Highway 20 withthe eastern boundary of Section 13,T16N/R12W located in the extremenortheast portion of the U.S.G.S. map,‘‘Ukiah, Calif.’’;

(2) Then north along the eastboundary line of Sections 12 and 1 tothe northeast corner of Section 1, T16N/R12W on the U.S.G.S. map, ‘‘RedwoodValley, Calif.’’;

(3) Then west along the northernboundary line of Section 1 to thenorthwest corner of Section 1, T16N/R12W;

(4) Then north along the eastboundary line of sections 35, 26, 23, 14,11, and 2 to the northeast corner ofSection 2, T17N/R12W;

(5) Then west along the northernboundary of Sections 2, 3, 4, 5, and 6to the northwest corner of Section 6,T17N/R12W;

(6) Then 10 degrees southwest cuttingdiagonally across Sections 1, 12, 13, 24,25, and 36 to a point at the northwestcorner of Section 1, T16N/R13W on theU.S.G.S. map, ‘‘Laughlin, Range, Calif.’’;

(7) Then south along the westernboundary line of Sections 1 and 12 tothe southwest corner of Section 12,T16N/R13W;

(8) Then 13 degrees southeast acrossSections 13, 18, and 17 to theintersection of State Highway 20 andU.S. Highway 101, T16N/R12W on theU.S.G.S. map, Ukiah, Calif.’’;

(9) Then easterly along a linefollowing State Highway 20 back to thebeginning point at the eastern boundaryof Section 13, T16N/R12W located inthe extreme northeast portion of theU.S.G.S. map ‘‘Ukiah, Calif.’’

Dated: August 23, 1996.John W. Magaw,Director.[FR Doc. 96–22346 Filed 8–30–96; 8:45 am]BILLING CODE 4810–31–P

PANAMA CANAL COMMISSION

35 CFR Parts 133 and 135

RIN 3207–AA38

Tolls for Use of Canal; Rules forMeasurement of Vessels

AGENCY: Panama Canal Commission.ACTION: Notice of proposed rulemaking;request for comments; notice of hearing.

SUMMARY: The Panama CanalCommission (PCC) proposes increasingthe general toll rates for the Canal andapplying certain rules of measurementfor on-deck container capacity.

Current toll rates will not producerevenues sufficient to cover costs ofoperations and maintenance and PCC’scapital program for plant replacement,expansion and modernization. For FYs1996–1998 alone, the toll deficienciesprojected are $2.2, $34.5 and $69.7million, respectively. To address this,the PCC here proposes a two-phase toll-rate increase—8.2 percent in FY 1997and 7.5 percent in FY 1998—coupledwith an amendment to apply rules ofmeasurement to on-deck containercapacity as well as the volume of thevessel itself. If for any reason rules ofmeasurement are not applied asproposed here, the general toll-rateincrease will be adjusted to 8.7 and 7.9percent, respectively.

The proposed increases comply withthe statutory requirement that tolls beset at rates that produce revenuessufficient to cover Canal costs ofoperation and maintenance, includingcapital for plant replacement, expansionand improvements, and working capital.

PCC anticipates that, in FYs 1996–1998 alone, it will experience, in theaggregate, a significant deficit resultingfrom increased traffic demands oncapacity and the resultant capitalprogram. To meet this challenge, PCC’sBoard of Directors approvedmanagement’s recommendation toincrease and accelerate the capitalprogram to ensure a Canal operatingcapacity that meets future trafficdemands and an acceptable long-termquality of transit service. Morespecifically, the PCC’s capital programfor FYs 1996–1998 totals $248 million;an additional $228 million isprogrammed for FYs 1999–2000. Thiscapital program will augment andadvance the implementation of manymodernization and improvementprograms in response to projectedcustomer requirements.

The maximum general toll rateincreases that could result from thisproposal are 8.7 percent, effectiveJanuary 1, 1997, and 7.9 percent,


effective January 1, 1998. However, ifCanal measurement rules are adopted soas to apply to on-deck containercapacity, the general toll rate increaseswill be 8.2 percent and 7.5 percent,respectively.

In 1994, PCC completely revised theRules for Measurement of Vessels forthe Canal in 35 CFR Part 135. Thischange simplified PCC’s measurementprocedures and brought measurementrules at the Canal in line with theworldwide standard of tonnagemeasurement. These new rules arereferred to collectively as PC/UMS.

This proposal will allow PCC tocharge its customers more equitably forrevenue producing capacity.Specifically, the adjustments proposedhere include in the PC/UMS NetTonnage a portion of the volume of themaximum capacity of containers carriedon or above the upper deck (VMC). Theproposed rule authorizes PCC todetermine which ships qualify for theassessment and to calculate their VMC.The VMC multiplied by an appropriatefactor, described below, produces theportion to be included in the PC/UMSNet Tonnage.

This notice also announces theavailability from PCC of an analysisshowing the basis and justification forthe proposed changes, solicits writtendata, views, or arguments frominterested parties, and sets the time andplace for two public hearings, one in theUnited States and one in Panama.DATES: Written comments and requeststo present oral testimony must bereceived on or before September 25,1996; public hearings will be held onOctober 8, 1996, in Washington, DC;and in Panama, Republic of Panama onOctober 10, 1996.ADDRESSES: Comments and requests totestify at the hearings in Panama City,Panama and in Washington, DC may bemailed to: John A. Mills, Secretary,Panama Canal Commission, 1825 IStreet NW., Suite 1050, Washington, DC20006–5402, Telephone: (202) 634–6441, Fax: (202) 634–6439, Internet E-Mail: [email protected]; or theOffice of Financial Management,Panama Canal Commission, BalboaHeights, Republic of Panama(Telephone: 011–507–272–3194, Fax:011–507–272–3040).

For the first time, the PCC will beholding two hearings on the same toll-rate/measurement-rule proposal. Thosehearings will be held at the ANAHOTEL, Ballroom I, 2401 M Street, NW,Washington, DC, at 8:00 a.m.; and atMIRAFLORES VISITOR’S PAVILIONTHEATER, Building 6–A, MirafloresLocks, Republic of Panama (accessible

from Gaillard Highway), at 9:00 a.m.Oral presentations should be limited to20 minutes. Regulations governing thecontent of the notice of appearance orintention to present supplementary dataat the hearing appear at 35 CFR 70.8 and70.10.FOR FURTHER INFORMATION CONTACT: JohnA. Mills at the above address,(telephone: (202) 634–6441). Copies ofPCC’s analysis showing the detailedbasis and justification for the proposedchanges are available from PCC (at theabove addresses).SUPPLEMENTARY INFORMATION: Section1602(b) of the Panama Canal Act of1979, as amended, 22 U.S.C. 3792(b),requires that Canal tolls be prescribed atrates calculated to produce revenues tocover as nearly as practicable all costsof maintaining and operating thePanama Canal and the facilities andappurtenances related thereto, as well asto provide capital for plant replacement,expansion and improvements, andworking capital.

Toll rates were last increased onOctober 1, 1992. The 1992 rate increasewas adequate to recover operating costsand capital expenditures through FY1995. However, record-breaking trafficlevels are rapidly approaching theCanal’s existing operating capacity, andhave caused the PCC to re-evaluate itsfinancial requirements to meet itslongstanding commitment to qualitycustomer service which includes anaverage 24-hour Canal Waters Time(CWT). Average CWT in FY 1995 roseto 28.2 hours and has increased furtherduring the first ten months of FY 1996to 32.6 hours. Unless majorimprovements to increase Canalcapacity are completed, CWT cannot bemeaningfully improved as Canal trafficcontinues to grow and strain theexisting operating capacity.

PCC will increase Canal capacity byimplementing a number ofmodernization and improvementprojects, including the acceleration ofthe Gaillard Cut widening project,augmentation of the tugboat fleet, designand procurement of additionallocomotives, modernization of thevessel traffic management system,hydraulic conversion of miter gates andrising stem valves moving machinery,and automation of locks machinerycontrols. As a result, at present tollrates, total operating expenses andcapital expenditure requirements areestimated to exceed revenues by $2.2million in FY 1996, $34.5 million in FY1997, and $69.7 million in FY 1998.This necessitates an increase in thegeneral toll rate. As noted above, adetailed written analysis is available

further explaining the basis andjustification for the changes.

The 1994 revision of the Rules forMeasurement of Vessels was designed tosimplify the measurement procedures ineffect at the Canal and to bring thoserules in line with the worldwidestandard of tonnage measurementcontained in the 1969 InternationalConvention of Tonnage Measurement ofShips. Those rules, which are currentlyin effect and which are referred tocollectively as the Panama Canal/Universal Measurement System (or PC/UMS), presently do not include in thecalculation of a ship’s earning capacityany open spaces available for thecarriage of containers on or above themain deck.

The evolution of container ships hasresulted in improved design andincreased capacity to permit far greateruse of on-deck space. Today, 40 to 60percent of useable capacity of moderncontainer ships is on or above the maindeck. Thus, these ships have increasedtheir earning capacity in terms ofvolume, whereas their PC/UMS NetTonnage calculation under current rulesdoes not include this revenue-producingspace. The same is true with respect toa significant number of other shipswhich, in addition to the bulk and othercargoes they carry below deck, also havethe capacity to carry containers on andabove the main deck. In other words,PCC is not currently charging equitablyfor full revenue producing space.

The costs of PCC’s expanded capitalprogram have prompted PCC to focus onthis practice and conclude that it isinconsistent with the basic principlegoverning all Canal toll assessments,i.e., that tolls are to be based on netvessel tons of earning capacity.Containers carried on or above the maindeck expand the earning capacity. Thatadded capacity should therefore betaken into account in setting Canal tolls.

This proposal includes in PC/UMSNet Tonnage a portion of the volume ofthe capacity of containers carried on orabove the main deck. The rules wouldauthorize the PCC to determine whichships qualify for the assessment and tocalculate the volume of their on-deckcontainer capacity (VMC). The VMCwould then be multiplied against anappropriate factor (designated in theamendments as ‘‘CF1’’) to produce theportion to be included in PC/UMS NetTonnage.

Section 1604 of the Panama Canal Actof 1979, as amended, 22 U.S.C. 3794,establishes procedures for proposing tollrate increases and changes in the rulesfor measurement of vessels. Thoseprocedures have been supplemented byregulations in 35 CFR Part 70, which


also provide interested parties withinstructions for participating in theprocess governing changes in toll ratesand measurement rules.

PCC will consider and stronglyencourages all interested parties topresent in writing or orally at thehearings, pertinent data, views orarguments, along with other relevantinformation, before PCC publishes itsfinal rules in the Federal Register. Thefinal rules, as approved and publishedby the PCC, will be effective no earlierthan 30 days from the date of theirpublication in the Federal Register.

PCC is exempt from Executive Order12866. Accordingly, provisions of thatdirective do not apply to this rule. Evenif the Order were applicable, the changewould not constitute a ‘‘rule’’ as thatterm is defined in the RegulatoryFlexibility Act [5 U.S.C. 601(2)] becauseit concerns ‘‘rates’’ and ‘‘practicesrelating’’ thereto.

Further, PCC has determined thatimplementation of this rule will have noadverse effect on competition,employment, investment, productivity,innovation, or on the ability of theUnited States-based enterprises tocompete with foreign-based enterprisesin domestic or export markets.

The Secretary of the PCC certifies thatthese proposed regulatory changes meetthe applicable standards in sections 3(a)and 3(b)(2) of Executive Order No.12988 of February 7, 1996.

List of Subjects in 35 CFR Part 133 and135

Measurement, Navigation, PanamaCanal, Vessels.

Accordingly, it is proposed that 35CFR parts 133 and 135 be amended asfollows:

PART 133—TOLLS FOR USE OFCANAL

1. The authority citation for part 133is revised to read as follows:


2. Section 133.1 is revised to read asfollows (Note: Alternative versions oftoll rates are shown in this proposedrule):

§ 133.1 Rates of Toll.The following rates of toll shall be

paid by vessels using the Panama Canalto become effective January 1, 1997 andJanuary 1, 1998:

(a) On merchant vessels, yachts, armyand navy transports, colliers, hospitalships, and supply ships, when carryingpassengers or cargo, per PC/UMS NetTon that is, the Net Tonnage determinedin accordance with part 135 of thischapter:

Effectivedate

With amend-ment

WithoutAmendment

Per-cent

Tollrate

Per-cent

Tollrate

1/1/97 ......... 8.2 $2.39 8.7 $2.401/1/98 ......... 7.5 2.57 7.9 $2.59

(b) On vessels in ballast withoutpassengers or cargo, per PC/UMS NetTon.

Effectivedate

With amend-ment

Withoutamendment

Per-cent

Tollrate

Per-cent

Tollrate

1/1/97 ......... 8.2 $1.90 8.7 $1.911/1/98 ......... 7.5 2.04 7.9 2.06

(c) On other floating craft includingwarships, other than transports, colliers,hospital ships, and supply ships, perton of displacement:

Effectivedate

With amend-ment

Withoutamendment

Per-cent

Tollrate

Per-cent

Tollrate

1/1/97 ......... 8.2 $1.33 8.7 $1.341/1/98 ......... 7.5 1.43 7.9 1.45

PART 135—RULES FORMEASUREMENT OF VESSELS

1. The authority citation for part 135is revised to read as follows:


2. Section 135.2 is amended byadding at the end thereof a newsentence to read as follows:

§ 135.2 Vessels generally to presenttonnage certificate or be measured.

* * * In addition, these same vesselsshall provide documentation, such asplans and classification certificates,with sufficient information to determinethe volume of the maximum capacity ofcontainers that may be carried on orabove the upper deck, or VMC asdefined in § 135.13 (a)(11).

3. In § 135.3 the heading andparagraph (a) are revised to read asfollows:

§ 135.3 Determination of total volume andVMC.

(a) Determination of total volume andVMC used to calculate PC/UMS NetTonnage shall be carried out by thePanama Canal Commission. In so doing,however, the Commission may relyupon total volume and VMCinformation provided by such officialsas are authorized by nationalgovernments to undertake surveys andissue national tonnage certificates. Total

volume and VMC information presentedto the Commission shall be subject toverification, and if necessary, correctionas necessary to ensure accuracy to adegree acceptable to the Commission.* * * * *

4. Section 135.13 is amended byrevising the formula for determining PC/UMS Net Tonnage in paragraph (a), byadding new paragraphs (a)(10) and(a)(11), and by revising paragraph (b) toread as follows:

§ 135.13 Determination of PC/UMS NetTonnage.

* * * * *(a) * * *

PC/UMS Net Tonnage =K4(V)+K5(V)+CF1(VMC)

* * * * *(10) ‘‘CF1’’ = .031 for ships which the

Commission determines are designed tocarry containers on or above the upperdeck; otherwise ‘‘CF1’’ = 0. In makingthe foregoing determination, theCommission may considerdocumentation provided by suchofficials as are authorized by nationalgovernments to undertake surveys andissue national tonnage certificates.

(11) ‘‘VMC’’ = the volume (in cubicmeters) of maximum capacity of thecontainers that can be carried on orabove the upper deck. This volume maybe calculated by multiplying themaximum number of containers by 29.2m3, or by other generally acceptedmethods that meet the Commission’saccuracy standards. VMC will notinclude any container capacity that isincluded in ‘‘V’’.

(b) For vessels subject to transitionalrelief measures, the existing PanamaCanal Net Tonnage as specified on thecertificate issued by the Commissionplus CF1 (VMC) shall be the PC/UMSNet Tonnage. In such case, the formulafor determining PC/UMS Net Tonnageis: PC/UMS Net Tonnage=Panama CanalNet Tonnage+CF1(VMC).

5. Section 135.14, is amended byadding a new paragraph (d) to read asfollows:

§ 135.14 Change of PC/UMS Net Tonnage.

* * * * *(d) If the VMC of a vessel is changed

due to any physical modification afterthe vessel’s PC/UMS Net Tonnage hasbeen determined at the Canal, the PC/UMS Net Tonnage may be revised bythe Commission.

6. Section 135.15 is amended byadding new paragraphs (d) and (e), toread as follows:

§ 135.15 Calculation of volumes.

* * * * *


(d) VMC may be calculated bymultiplying the maximum number ofcontainers by 29.2 m3, or by othergenerally accepted methods that meetthe Commission’s accuracy standards.

(e) For purposes of this part, theoutside dimension of a container is 8 ft.× 8 ft. × 20 ft, or 36.25 m3. Theseparameters will be used for determiningthe maximum above-deck containercapacity.

7. Section 135.31 is amended byadding at the end thereof a newsentence to read as follows:

§ 135.31 Transitional relief measures.

* * * Vessels subject to reliefmeasures shall provide Canalauthorities with sufficientdocumentation, such as plans andclassification certificates, for theCommission to determine the VMC.

8. Section 135.41 is amended byrevising the first sentence to read asfollows:

§ 135.41 Measurement of vessels whenvolume information is not available.

When an ITC 69 or suitable substituteand documentation for the calculationof the VMC are not presented, or whenthe certificate, substitute or VMCdocumentation presented does not meetaccuracy standards acceptable to theCommission, vessels will be measuredin a manner that will include the entirecubical contents of V and VMC asdefined in this part. * * *

9. Section 135.42 is amended byadding a new paragraph (c) to read asfollows:

§ 135.42 Measurement of vessels whentonnage cannot be otherwise ascertained.

* * * * *(c) VMC may be determined by any

accepted method or combination ofmethods, including but not limited to,simple geometric formulas,multiplication of a container by 29.2 m3,or other standard mathematical formula.The on-deck container capacity of avessel for VMC purposes will bedetermined by the Commission.

Dated: August 28, 1996.John A. Mills,Secretary, Panama Canal Commission.[FR Doc. 96–22398 Filed 8–30–96; 8:45 am]BILLING CODE 3640–04–P


40 CFR Part 59

[AD–FRL–5604–1]

National Volatile Organic CompoundEmission Standards for ArchitecturalCoatings

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Proposed rule; extension ofpublic comment period.

SUMMARY: The EPA is publishing theproposed regulatory text and extendingthe public comment period for theproposed National Volatile OrganicEmission Standards for ArchitecturalCoatings. As initially published in theFederal Register on June 25, 1996 (61FR 32729), written comments on theproposed rule were to be submitted tothe EPA on or before August 30, 1996(a 60-day public comment period). Thepublic comment period is beingextended and will end on September 30,1996.

Two errors in the proposed rule arebeing corrected in this notice, and thetext of the corrected proposed rule isprinted herein for the convenience ofinterested parties.

In addition, this document discussesthe definition of ‘‘small entity’’ used toevaluate impacts under the RegulatoryFlexibility Act since it is different thanthe definition used by the SmallBusiness Administration (SBA). TheEPA requests comments on thisalternative definition.DATES: Written comments must besubmitted by September 30, 1996.ADDRESSES: Comments. Commentsshould be submitted (in duplicate) to:Air and Radiation Docket andInformation Center (6102), Attention:Docket No. A–92–18, U.S.Environmental Protection Agency, 401M Street, SW, Washington, DC 20460.Comments and data may also besubmitted electronically by sendingelectronic mail (e-mail) to: [email protected]. Electroniccomments must be submitted as anASCII file avoiding the use of specialcharacters and any form of encryption.Comments and data will also beaccepted on diskette in WordPerfect 5.1file format or ASCII file format. Allcomments and data in electronic formmust be identified by the docket numberA–92–18. No Confidential BusinessInformation (CBI) should be submittedthrough e-mail.

Docket. The proposed regulatory textand other materials related to this

rulemaking, excepting any informationclaimed as CBI, are available for publicreview. This public record has beenestablished for the rulemaking underDocket No. A–92–18 and containssupporting information used indeveloping the proposed rule. Thedocket, including paper versions ofelectronic comments, is available forpublic inspection and copying between8:30 a.m. and 5:30 p.m., Mondaythrough Friday, at the U.S.Environmental Protection Agency Airand Radiation Docket and InformationCenter (6102), Waterside Mall, RoomM1500, 401 M Street, SW, Washington,DC 20460; telephone number (202) 260–7548, FAX (202) 260–4400. Areasonable fee may be charged forcopying.FOR FURTHER INFORMATION CONTACT: Ms.Ellen Ducey, Coatings and ConsumerProducts Group, Emission StandardsDivision (MD–13), U.S. EnvironmentalProtection Agency, Office of Air QualityPlanning and Standards, ResearchTriangle Park, North Carolina 27711,telephone number (919) 541–5408.SUPPLEMENTARY INFORMATION: On June25, 1996, at 61 FR 32729, the EPApublished the proposed NationalVolatile Organic Compound EmissionStandards for Architectural Coatingsand provided a 60-day public commentperiod. Requests have been received toextend the public comment periodbeyond the 60 days originally provided.In consideration of these requests, someof which were from small businessesthat will be affected by the rule, the EPAis extending the comment period by 30days (until September 30, 1996), inorder to give all interested persons theopportunity to comment fully.

The proposed rule text is included inthis notice to enhance its availability tocommenters. Corrections of two errorsin the previous version of the rule textare highlighted below.

The first correction is in the definitionof volatile organic compound (VOC)content in Section 59.401. BothEquation 1 and Equation 2 define theterm Ws. This term is used to represent‘‘the weight of volatiles, in grams.’’ Inthe previous version of the proposedrule, it was incorrectly defined as ‘‘theweight of VOC, in grams.’’ The EPA’sMethod 24—Determination of volatilematter content, water content, density,volume solids, and weight solids ofsurface coatings details the standardmethods used to determine the VOCcontent of a coating, including thevolatile content of coatings.

The second correction is in Section59.403 which details container labelingrequirements. The error in the rule text


was in paragraph (a)(3), which describesthe VOC content type of informationthat must be on the label. The incorrectportion of the proposed rule textrequired the label to include a statementof the VOC content in the container.This is being corrected to specify thatthe VOC content statement on the labelshall refer to the maximum VOC contentof the coating in the container,displayed in units of grams of VOC perliter of coating thinned to themanufacturer’s recommendation,excluding the volume of any water,exempt compounds, or colorant addedto tint bases.

Information on the label about themaximum VOC content of the coatingmay not allow consumers to compareVOC contents of different coatings. Thisis because manufacturers would tend tospecify on the label that the maximumVOC content of the coating is theapplicable standard. Use of a maximumVOC content on the label that is wellabove the actual VOC content of thecoating would allow a manufacturer toaccount for fluctuations in VOC contentof the coating due to batch variation, aswell as formulation modificationswithout requiring a label change toreflect the actual VOC contentadjustment. The EPA requests commenton whether consumers would benefitfrom a VOC labeling requirement thatmore accurately reflects the actual VOCcontent of the coating. For example, therequirement could specify that the VOCcontent of the coating must be within 75grams of the VOC content on the label.Alternatively, the EPA requestscomment on the use of a label whichwould specify ‘‘this coating meets allapplicable State and Federal VOCrequirements.’’

Request for Comment on Definition ofSmall Business

The Regulatory Flexibility Act of 1980requires special consideration of theeffect of Federal regulations on smallentities. Results of the initial regulatoryflexibility analysis were summarized inSection VII.D of the June 25, 1996Federal Register notice for thearchitectural coatings proposed rule.Docket No. A–92–18 contains thecomplete initial regulatory flexibilityanalysis.

To conduct a regulatory flexibilityanalysis, small entities may be definedusing the criteria prescribed in theRegulatory Flexibility Act or some othercriteria identified by the EPA. TheSBA’s general size standard definitionsfor Standard Industrial Classification(SIC) codes is one way to define smallbusinesses. These size standards arepresented either by number of

employees or by annual receipt levels,depending on the SIC code. For SIC2851, Paint and Allied Products, theSBA defines small business as fewerthan 500 employees. Because thecoating manufacturing industry is notlabor intensive, a revenue value cut-offrather than a number of employees cut-off appears to be a better measure toreflect the ability of a manufacturer todevote time as well as research anddevelopment resources to meetregulation requirements. Based on inputfrom stakeholders, the EPA has definedsmall manufacturers as having less than$10 million in annual architecturalcoating sales and less than $50 millionin total annual sales of all products.Using this alternative definition,between 70 and 85 percent of thearchitectural coating industry would beclassified as small. The EPA requestscomment on use of this alternativedefinition to identify small entitiesunder the Regulatory Flexibility Act.


Environmental protection, Airpollution control, Architecturalcoatings, Ozone, Volatile organiccompound.

Dated: August 23, 1996.Mary D. Nichols,Assistant Administrator for Air andRadiation.

For the reasons set out in thepreamble, it is proposed that 40 CFRPart 59 be added consisting of subpartD to read as follows:

PART 59—NATIONAL VOLATILEORGANIC COMPOUND EMISSIONSTANDARDS FOR CONSUMER ANDCOMMERCIAL PRODUCTS

Subpart D—National Volatile OrganicCompound Emission Standards forArchitectural Coatings

Secs.59.400 Applicability and designation of

source.59.401 Definitions.59.402 Standards.59.403 Container labeling requirements.59.404 Test methods.59.405 Recordkeeping requirements.59.406 Reporting requirements.59.407 Variances.

Authority: 42 U.S.C. 7401 et seq.

Subpart D—National Volatile OrganicCompound Emission Standards forArchitectural Coatings

§ 59.400 Applicability and designation ofsource.

(a) The provisions of this subpartapply to architectural coatingsmanufactured or imported on or after

April 1, 1997 for sale or distribution inthe United States.

(b) The provisions of this subpartapply to each manufacturer or importerof architectural coatings that sells ordistributes these coatings in the UnitedStates.

(c) The provisions of this subpart donot apply to architectural coatingsmeeting the requirements in paragraphs(c)(1), (c)(2), (c)(3), (c)(4), or (c)(5) of thissection.

(1) Coatings that are manufacturedexclusively for sale or distributionoutside the United States.

(2) Coatings that are manufactured orimported prior to April 1, 1997.

(3) Coatings that are sold innonrefillable aerosol containers.

(4) Coatings that are collected andredistributed at community-based paintexchanges.

(5) Coatings that are sold in containerswith a volume of one liter or less.

§ 59.401 Definitions.Administrator means the

Administrator of the United StatesEnvironmental Protection Agency (U.S.EPA) or his or her authorizedrepresentative.

Antenna coating means a coatingformulated and recommended forapplication to equipment and associatedstructural appurtenances that are usedto receive or transmit electromagneticsignals.

Anti-fouling coating means a coatingformulated and recommended forapplication to submerged stationarystructures and their appurtenances toprevent or reduce the attachment ofmarine or freshwater biologicalorganisms, including, but not limited to,coatings registered with the EPA underthe Federal Insecticide, Fungicide, andRodenticide Act (7 U.S.C. 136, et seq.)and nontoxic foul-release coatings.

Anti-graffiti coating means a clear oropaque high performance coatingspecifically labeled as an anti-graffiticoating and formulated andrecommended for application to interiorand exterior walls, doors, partitions,fences, signs, and murals to deteradhesion of graffiti and to resistrepeated scrubbing and exposure toharsh solvents, cleansers, or scouringagents used to remove graffiti.

Appurtenance means any accessory toa stationary structure, whether installedor detached at the proximate site ofinstallation, including but not limitedto: bathroom and kitchen fixtures;cabinets; concrete forms; doors;elevators; fences; hand railings; heatingequipment, air conditioning equipment,and other fixed mechanical equipmentor stationary tools; lamp posts;


partitions; pipes and piping systems;rain gutters and downspouts; stairways,fixed ladders, catwalks, and fireescapes; and window screens.

Architectural coating means a coatingrecommended for field application tostationary structures and theirappurtenances, to portable buildings, topavements, or to curbs.

Architectural coating importer orimporter means a company, group, orindividual that brings architecturalcoatings from a location outside theUnited States into the United States forsale or distribution within the UnitedStates.

Architectural coating manufacturer ormanufacturer means a company, group,or individual that produces, packages,or repackages architectural coatings forsale or distribution in the United States.A company, group, or individual thatrepackages architectural coatings as partof a community-based paint exchange,and does not produce, package, orrepackage any other architecturalcoatings for sale or distribution in theUnited States, is excluded from thisdefinition.

Below-ground wood preservativemeans a coating that is formulated andrecommended to protect below-groundwood from decay or insect attack andthat is registered with the EPA underthe Federal Insecticide, Fungicide, andRodenticide Act (7 U.S.C. 136, et seq.).

Bituminous coating and mastic meansa coating or mastic formulated andrecommended for roofing, pavementsealing, or waterproofing thatincorporates bitumens. Bitumens areblack or brown materials including, butnot limited to, asphalt, tar, pitch, andasphaltite that are soluble in carbondisulfide, consist mainly ofhydrocarbons, and are obtained fromnatural deposits of asphalt or asresidues from the distillation of crudepetroleum or coal.

Bond breaker means a coatingformulated and recommended forapplication between layers of concreteto prevent a freshly poured top layer ofconcrete from bonding to the layer overwhich it is poured.

Chalkboard resurfacer means acoating formulated and recommendedfor application to chalkboards to restorea suitable surface for writing with chalk.

Clear coating means a coating thatproduces a dry film that allows light topass through, so that the substrate maybe distinctly seen.

Clear and semitransparent woodpreservative means a coating that isformulated and recommended to protectexposed wood from decay or insectattack, registered with the EPA underthe Federal Insecticide, Fungicide, and

Rodenticide Act (7 U.S.C. 136, et seq.),that may change the color of thesubstrate but does not conceal thesubstrate.

Coating means a protective,decorative, or functional film applied toa surface. Such materials include, butare not limited to, paints, topcoats,varnishes, sealers, stains, washcoats,basecoats, enamels, and temporaryprotective coatings.

Coating product means all coatingsproduced by one manufacturer orimported by one importer that have thesame formulation and are definedwithin the same architectural coatingcategory listed in Table 1 of thissubpart.

Colorant means a concentratedpigment dispersion of water, solvent,and/or binder that is added to anarchitectural coating in a paint store oron-site to produce the desired color.

Community-based paint exchangemeans a program in which members ofthe general public may drop off andpick up usable post-consumerarchitectural coatings in order to reducehousehold hazardous waste.

Concrete curing compound means acoating formulated and recommendedfor application to freshly placedconcrete to retard the evaporation ofwater.

Concrete protective coating means ahigh build coating formulated andrecommended for application in a singlecoat over concrete, plaster, or othercementitious surfaces. These coatingsare formulated to be primerless, one-coat systems that can be applied overform oils and/or uncured concrete.These coatings prevent spalling ofconcrete in freezing temperatures byproviding long-term protection fromwater and chloride ion intrusion.

Container means the individualreceptacle that holds the coating forstorage and distribution.

Dry fog coating means a coatingformulated and recommended only forspray application such that overspraydroplets dry before subsequent contactwith incidental surfaces in the vicinityof the surface coating activity.

Exempt compounds means specificorganic compounds that are notconsidered volatile organic compoundsdue to negligible photochemicalreactivity. The exempt compounds arespecified in § 51.100(s) of this chapter.

Exterior coating means anarchitectural coating formulated andrecommended for use in conditionsexposed to the weather.

Extreme high durability coatingmeans an air dry fluoropolymer-basedcoating that is formulated andrecommended for the protection of

architectural subsections and that meetsthe weathering requirements ofAmerican Architectural Manufacturer’sAssociation specification 605.2 Section7.9.

Fire-retardant/resistive coating meansa clear or opaque coating formulatedand recommended to retard ignition andflame spread, or to delay melting orstructural weakening due to high heatthat has been fire tested and rated by acertified laboratory for use in bringingbuildings and construction materialsinto compliance with Federal, State, andlocal building code requirements.

Flat coating means a coating that isnot defined under any other definitionin this section and that registers glossless than 15 on an 85-degree meter orless than 5 on a 60-degree meteraccording to American Society forTesting and Materials Method D523,Standard Test Method for SpecularGloss.

Floor coating means a coating that isformulated and recommended forapplication to flooring including, butnot limited to, decks, porches, and stepsand that has a high degree of abrasionresistance.

Flow coating means a coating that isused by electric power companies ortheir subcontractors to maintain theprotective coating systems present onutility transformer units.

Form release compound means acoating formulated and recommendedfor application to a concrete form toprevent the freshly placed concrete frombonding to the form. The form mayconsist of wood, metal, or some materialother than concrete.

Graphic arts coating or sign paintmeans a coating formulated andrecommended for hand-applicationeither on site or in shop by artists usingbrush or roller techniques to indoor oroutdoor signs (excluding structuralcomponents) and murals includinglettering enamels, poster colors, copyblockers, and bulletin enamels.

Heat reactive coating means a highperformance phenolic-based coatingrequiring a minimum temperature of191 °C (375 °F) to 204 °C (400 °F) toobtain complete polymerization or cure.These coatings are formulated andrecommended for commercial andindustrial use to protect substrates fromdegradation and maintain productpurity in which one or more of thefollowing extreme conditions exist:

(1) Continuous or repeated immersionexposure to 90 to 98 percent sulfuricacid or oleum;

(2) Continuous or repeated immersionexposure to strong organic solvents;


(3) Continuous or repeated immersionexposure to petroleum processing athigh temperatures and pressures; and

(4) Continuous or repeated immersionexposure to food or pharmaceuticalproducts which may or may not requirehigh temperature sterilization.

High temperature coating means ahigh performance coating formulatedand recommended for application tosubstrates exposed continuously orintermittently to temperatures above260 °C (500 °F).

Impacted immersion coating means ahigh performance maintenance coatingformulated and recommended forapplication to steel structures subject toimmersion in turbulent, debris-ladenwater. These coatings are specificallyresistant to high-energy impact damagecaused by floating ice or debris.

Importer (See the definition forarchitectural coating importer.)

Industrial maintenance coatings meanhigh performance architectural coatingsincluding primers, sealers,undercoaters, and intermediate andtopcoats formulated for substrates inindustrial, commercial, or institutionalsituations that are exposed to one ormore of the following extremeenvironmental conditions:

(1) Immersion in water, wastewater,or chemical solutions (aqueous andnonaqueous solutions), or chronicexposure of interior surfaces to moisturecondensation;

(2) Acute or chronic exposure tocorrosive, caustic, or acidic agents, or tochemicals, chemical fumes, or chemicalmixtures or solutions;

(3) Repeated exposure to temperaturesabove 120 °C (250 °F);

(4) Repeated (frequent) heavyabrasion, including mechanical wearand repeated (frequent) scrubbing withindustrial solvents, cleansers, orscouring agents; or

(5) Exterior exposure of metalstructures and structural components.

Interior clear wood sealer means alow viscosity coating formulated andrecommended for sealing and preparingporous wood by penetrating the woodand creating a uniform smooth substratefor a finish coat of paint or varnish.

Interior coating means anarchitectural coating formulated andrecommended for use in conditions notexposed to natural weathering.

Label means any written, printed, orgraphic matter affixed to, applied to,attached to, blown into, formed, moldedinto, embossed on, or appearing uponany architectural coating container forpurposes of branding, identifying, orgiving information with respect to theproduct, use of the product, or contentsof the container.

Lacquer means a clear or pigmentedwood finish including clear lacquersanding sealers formulated withcellulosic or synthetic resins to dry byevaporation without chemical reactionand to provide a solid, protective film.

Low solids stain means a staincontaining one pound or less of solidsper gallon (0.12 kilograms per liter) ofcoating material and for which at leasthalf of the volatile component is water.

Low solids wood preservative means awood preservative containing onepound or less of solids per gallon (0.12kilograms per liter) of coating materialand for which at least half of the volatilecomponent is water.

Manufacturer (See the definition forarchitectural coating manufacturer.)

Magnesite cement coating means acoating formulated and recommendedfor application to magnesite cementdecking to protect the magnesite cementsubstrate from erosion by water.

Mastic texture coating means acoating formulated and recommended tocover holes and minor cracks and toconceal surface irregularities, and isapplied in a single coat of at least 10mils (0.010 inches; dry film thickness).

Metallic pigmented coating means anonbituminous coating containing atleast 0.4 pounds of metallic pigment pergallon (0.048 kilograms per liter) ofcoating including, but not limited to,zinc pigment.

Multi-colored coating means a coatingthat is packaged in a single containerand exhibits more than one color whenapplied.

Nonferrous ornamental metallacquers and surface protectant means aclear coating formulated andrecommended for application toornamental architectural metalsubstrates (bronze, stainless steel,copper, brass, and anodized aluminum)to prevent oxidation, corrosion, andsurface degradation.

Nonflat coating means a coating thatis not defined under any otherdefinition in this section and thatregisters a gloss of 15 or greater on an85-degree meter or five or greater on a60-degree meter according to AmericanSociety for Testing and MaterialsMethod D523, Standard Test Method forSpecular Gloss.

Nuclear coating means any protectivecoating used to seal porous surfacessuch as steel (or concrete) that otherwisewould be subject to intrusion byradioactive materials. These coatingsmust be resistant to long-term (servicelife) cumulative radiation exposure(American Society for Testing andMaterials Method D4082), relativelyeasy to decontaminate (AmericanSociety for Testing and Materials

Method D4256), and resistant to variouschemicals to which the coatings arelikely to be exposed (American Societyfor Testing and Materials MethodD3912). General protective requirementsare outlined by the Department ofEnergy (formerly U.S. Atomic EnergyCommission Regulatory Guide 1.54).

Opaque coating means a coatingproducing a dry film that does not allowlight to pass through, so that thesubstrate is concealed from view.

Opaque stain means a coating labeledas a stain and formulated andrecommended to hide the surface butnot conceal its texture.

Opaque wood preservative means acoating formulated and recommended toprotect wood from decay or insect attackthat is not classified as a clear,semitransparent, or below-ground woodpreservative and that is registered withthe EPA under the Federal Insecticide,Fungicide, and Rodenticide Act (7U.S.C. 136 et seq.).

Pigmented means containing finelyground insoluble powder dispersed togive a characteristic color.

Post-consumer coating means anarchitectural coating that has previouslybeen purchased or distributed but notapplied, and reenters the marketplace tobe purchased by or distributed to aconsumer. Post-consumer coatingsinclude, but are not limited to, coatingscollected during community-basedhousehold hazardous waste collectionprograms for repackaging or blendingwith virgin coating materials.

Pretreatment wash primer means aprimer that contains a minimum of 0.5percent acid, by weight, that is applieddirectly to bare metal surfaces in thinfilms to provide corrosion resistanceand to promote adhesion of subsequenttopcoats.

Primer means a coating formulatedand recommended for application tosubstrates to provide a firm bondbetween the substrate and subsequentcoats.

Quick-dry enamel means a nonflatcoating that has the followingcharacteristics:

(1) Is capable of being applied directlyfrom the container under normalconditions with ambient temperaturesbetween 16 and 27 °C (60 and 80 °F);

(2) When tested in accordance withAmerican Society for Testing MaterialsMethod D1640, Standard Test Methodsfor Drying, Curing, or Film Formation ofOrganic Coatings at Room Temperature,sets to touch in two hours or less, is tackfree in four hours or less, and dries hardin eight hours or less by the mechanicaltest method; and

(3) Has a dried film gloss of 70 orabove on a 60 degree meter.


Quick-dry primer, sealer, andundercoater means a primer, sealer, orundercoater that is dry to the touch inone-half hour and can be recoated intwo hours when tested in accordancewith American Society for Testing andMaterials Method D1640, Standard TestMethods for Drying, Curing, or FilmFormation of Organic Coatings at RoomTemperature.

Recycled coating means anarchitectural coating that contains someportion of post-consumer coating.Recycled architectural coatings include,but are not limited to, post-consumercoatings that have been repackaged orblended with virgin coating materials.

Repackaging means to transfer anarchitectural coating from one containerto another container for sale ordistribution in the final container.

Repair and maintenancethermoplastic coating means anindustrial maintenance coating that hasvinyl or chlorinated rubber as a primaryresin and is recommended solely for therepair of existing vinyl or chlorinatedrubber coatings without the full removalof the existing coating system.

Roof coating means a nonbituminouscoating or a nonthermoplastic rubbercoating formulated and recommendedfor application to exterior roofs for theprimary purpose of preventingpenetration of the substrate by water orreflecting heat and reflecting ultravioletradiation.

Rust preventive coating means acoating formulated and recommendedfor use in preventing the corrosion offerrous metal surfaces in residentialsituations.

Sales means the introduction of acoating product into U.S. commerce.

Sanding sealer means a clear woodcoating formulated and recommendedfor application to bare wood to seal thewood and to provide a coat that can besanded to create a smooth surface. Asanding sealer that also meets thedefinition of a lacquer sanding sealershall not be considered in this category,but shall be considered to be in thelacquer category.

Sealer means a coating formulatedand recommended for application tosubstrates for one or more of thefollowing purposes: to preventsubsequent coatings from beingabsorbed by the substrate; to preventharm to subsequent coatings bymaterials in the substrate; to blockstains, odors, or efflorescence; to seal

fire, smoke, or water damage; or tocondition chalky surfaces.

Semitransparent stain means acoating formulated and recommendedfor application to substrates to impart adesired color without completelyconcealing the surface or its naturaltexture or grain pattern.

Shellac means a clear or pigmentedcoating formulated with natural resinssoluble in alcohol (including, but notlimited to, the resinous secretions of thelac beetle, Laciffer lacca). Shellacs dryby evaporation without chemicalreaction and provide a quick-drying,solid protective film that may be usedfor blocking stains.

Swimming pool coating means acoating formulated and recommended tocoat the interior of swimming pools andto resist swimming pool chemicals.

Thermoplastic rubber coating andmastic means a coating or masticformulated and recommended forapplication to roofing or other structuralsurfaces and that incorporates no lessthan 40 percent by weight ofthermoplastic rubbers in the total resinsolids and may also contain otheringredients including, but not limitedto, fillers, pigments, and modifyingresins.

Tint Base means a coating to whichcolorant is added to produce a desiredcolor.

Traffic marking coating means acoating formulated and recommendedfor marking and striping streets,highways, and other traffic surfacesincluding, but not limited to, curbs,berms, driveways, parking lots, andairport runways.

Undercoater means a coatingformulated and recommended toprovide a smooth surface for subsequentcoats.

Varnish means a clear or semi-transparent coating (excluding lacquersand shellacs) formulated to provide adurable, solid, protective film.Varnishes may contain small amounts ofpigment to color a surface, or to controlthe final sheen or gloss of the finish.

Volatile organic compound or VOCmeans any organic compound thatparticipates in atmosphericphotochemical reactions, that is, anyorganic compound other than thosewhich the Administrator designates ashaving negligible photochemicalreactivity. For a list of compounds thatthe Administrator has designated ashaving negligible photochemical

reactivity, also referred to as exemptcompounds, refer to 40 CFR 51.100.

VOC content. (1) VOC content meansthe amount of VOC, in grams, in oneliter of coating thinned to themanufacturer’s maximumrecommendation excluding the volumeof any water, exempt compounds, orcolorant added to tint bases. Grams ofVOC per liter of material means theweight of VOC per volume of materialand is calculated by using equation 1unless the coating meets the definitionof a ‘‘low solids’’ stain or woodpreservative, in which case, Equation 2is used.

VOCW W W

V V VEquation 1s w ec

m w ec

=− −( )− −( )

( )

where:VOC = grams of VOC per liter of coatingWs = weight of volatiles, in gramsWw = weight of water, in gramsWec = weight of exempt compounds, in

gramsVm = volume of coating, in litersVw = volume of water, in litersVec = volume of exempt compounds, in

liters(2) Equation 2 may be used to

calculate the VOC content of the coatingfor low solids stains and woodpreservatives:

VOCW W W

Vls

s w ec

m

=− −( )

( )(Equation 2)

where:VOCls = the VOC content of a low solids

coating in grams of VOC per liter ofcoating

Ws = weight of volatiles, in gramsWw = weight of water, in gramsWec = weight of exempt compounds, in

gramsVm = volume of coating, in liters

Waterproofing (treatment) sealermeans a coating that is applied toporous substrates for the primarypurpose of preventing the penetration ofwater.

§ 59.402 Standards.

(a) Effective April 1, 1997 andthereafter, manufacturers and importersof architectural coatings subject to thissubpart shall limit the VOC content ofeach architectural coating manufacturedor imported to the VOC levels in Table1, except as provided in § 59.407.


TABLE 1.—ARCHITECTURAL COATING VOLATILE ORGANIC COMPOUND CONTENT LEVELS

[Unless otherwise specified, units are in grams of VOC per liter of coating thinned to the manufacturer’s maximum recommendation excluding thevolume of any water, exempt compounds, or colorant added to tint bases]

Coating categoryEffectiveApril 1,1997

Antenna coatings ......................................................................................................................................................................................... 530Anti-fouling coatings ..................................................................................................................................................................................... 400Anti-graffiti coatings ..................................................................................................................................................................................... 600Bituminous coatings and mastics ................................................................................................................................................................ 500Bond breakers ............................................................................................................................................................................................. 600Chalkboard resurfacers ................................................................................................................................................................................ 450Concrete curing compounds ........................................................................................................................................................................ 350Concrete protective coatings ....................................................................................................................................................................... 400Dry fog coatings ........................................................................................................................................................................................... 400Extreme high durability coatings .................................................................................................................................................................. 800Fire-retardant/resistive coatings:

Clear ..................................................................................................................................................................................................... 850Opaque ................................................................................................................................................................................................. 450

Flat coatings:Exterior ................................................................................................................................................................................................. 250Interior ................................................................................................................................................................................................... 250

Floor coatings .............................................................................................................................................................................................. 400Flow coatings ............................................................................................................................................................................................... 650Form release compounds ............................................................................................................................................................................ 450Graphic arts coatings (sign paints) .............................................................................................................................................................. 500Heat reactive coatings ................................................................................................................................................................................. 420High temperature coatings ........................................................................................................................................................................... 650Impacted immersion coatings ...................................................................................................................................................................... 780Industrial maintenance coatings .................................................................................................................................................................. 450Lacquers (including lacquer sanding sealers) ............................................................................................................................................. 680Magnesite cement coatings ......................................................................................................................................................................... 600Mastic texture coatings ................................................................................................................................................................................ 300Metallic pigmented coatings ........................................................................................................................................................................ 500Multi-colored coatings .................................................................................................................................................................................. 580Nonferrous ornamental metal lacquers and surface protectants ................................................................................................................ 870Nonflat coatings:

Exterior ................................................................................................................................................................................................. 380Interior ................................................................................................................................................................................................... 380

Nuclear coatings .......................................................................................................................................................................................... 420Pretreatment wash primers .......................................................................................................................................................................... 780Primers and undercoaters ........................................................................................................................................................................... 350Quick-dry coatings:

Enamels ................................................................................................................................................................................................ 450Primers, sealers, and undercoaters ..................................................................................................................................................... 450

Repair and maintenance thermoplastic coatings ........................................................................................................................................ 650Roof coatings ............................................................................................................................................................................................... 250Rust preventative coatings .......................................................................................................................................................................... 400Sanding sealers (other than lacquer sanding sealers) ................................................................................................................................ 550Sealers (including interior clear wood sealers) ........................................................................................................................................... 400Shellacs:

Clear ..................................................................................................................................................................................................... 650Opaque ................................................................................................................................................................................................. 550

Stains:Clear and semitransparent ................................................................................................................................................................... 550Opaque ................................................................................................................................................................................................. 350Low solids ............................................................................................................................................................................................. a 120

Swimming pool coatings .............................................................................................................................................................................. 600Thermoplastic rubber coatings and mastics ................................................................................................................................................ 550Traffic marking coatings ............................................................................................................................................................................... 150Varnishes ..................................................................................................................................................................................................... 450Waterproofing sealers and treatments:

Clear ..................................................................................................................................................................................................... 600Opaque ................................................................................................................................................................................................. 400

Wood preservatives:Below ground wood preservatives ....................................................................................................................................................... 550Clear and semitransparent ................................................................................................................................................................... 550Opaque ................................................................................................................................................................................................. 350Low solids ............................................................................................................................................................................................. a 120

a Units are grams of VOC per liter of coating, including water and exempt compounds, thinned to the maximum thinning recommended by themanufacturer.


(b) If anywhere on the container ofany architectural coating, or any label orsticker affixed to the container, or in anysales, advertising, or technical literaturesupplied by a manufacturer or importeror anyone acting on their behalf, anyrepresentation is made that the coatingmay be suitable for use in more than oneof the coating categories listed in Table1, then the most restrictive VOC levelshall apply. This requirement does notapply to the representation of thefollowing coatings in paragraphs (b)(1)through (b)(7).

(1) High temperature coatings thatmay also be suitable for use as metallicpigmented coatings shall only be subjectto the VOC level in Table 1 for hightemperature coatings.

(2) Lacquer sanding sealers that mayalso be suitable for use as sandingsealers in conjunction with clear lacquertopcoats shall only be subject to theVOC level in Table 1 for lacquer sandingsealers.

(3) Metallic pigmented coatings thatmay also be suitable for use as roofcoatings, industrial maintenancecoatings, or primers shall only besubject to the VOC level in Table 1 formetallic pigmented coatings.

(4) Shellacs that may also be suitablefor use as primers, sealers, orundercoaters shall only be subject to theVOC level in Table 1 for shellacs.

(5) Fire-retardant/resistive coatingsthat may be suitable for use as any otherarchitectural coating shall only besubject to the VOC level in Table 1 forfire-retardant/resistive coatings.

(6) Pretreatment wash primers thatmay be suitable for use as primers shallonly be subject to the VOC level inTable 1 for pretreatment wash primers.

(7) Industrial maintenance coatingsthat may also be suitable for use asprimers shall only be subject to the VOClevel in Table 1 for industrialmaintenance coatings.

(c) For the purpose of determiningcompliance with the standards of this

subpart, the VOC content shall bedetermined using the procedure in§ 59.404. With the exception of lowsolids stains and low solids woodpreservatives, the VOC content shall bedetermined in grams of VOC per liter ofcoating thinned to the manufacturer’smaximum recommendation excludingthe volume of any water, exemptcompounds, or colorant added to tintbases. For low solids stains and lowsolids wood preservatives, the VOCcontent shall be determined in units ofgrams of VOC per liter of coatingthinned to the manufacturer’s maximumrecommendation including the volumeof any water and exempt compounds.

(d) For the purpose of determiningcompliance with the requirements ofthis subpart, manufacturers or importersof recycled architectural coatings maycalculate an adjusted VOC content toaccount for the post-consumer coatingcontent. The adjusted VOC content shallbe determined using Equation 3.

Adjusted V Actual VOCOC = Actual VOCPercent Post-consumer Coating

100(Equation 3)−

Where:Adjusted VOC = The VOC content

assigned to the recycled coating forpurposes of complying withprovisions of this section (gramsVOC per liter of coating thinned tothe manufacturer’s maximumrecommendation excluding thevolume of any water, exempt

compounds, or colorant added totint bases.)

Actual VOC = The VOC content of thecoating product as determinedusing the procedure in § 59.404.

Percent Post-consumer Coating = Thevolume percent of the coatingproduct that is post-consumer

architectural coating as determinedin paragraph (e) of this section.

(e) Manufacturers or importers ofrecycled architectural coatingscalculating an adjusted VOC asdescribed in § 59.402(d) of this sectionshall determine the post-consumerarchitectural coating content of eachrecycled coating using Equation 4.

Percent Post-consumer =Volume of Post-consumer Coating

(Volume of Post-consumer Coating + Volume of Virgin Materials) Percent (Equation 4)×100

Where:Percent Post-consumer = The volume

percent of a recycled coating that ispost-consumer coating materials.

Volume of Post-consumer Coating = Thevolume of post-consumer coatingmaterials per gallon used in theproduction of a recycled coating.

Volume of Virgin Materials = Thevolume of virgin coating materialsper gallon used in the production ofa recycled coating.

§ 59.403 Container labeling requirements.

(a) Manufacturers and importerssubject to the provisions of this subpartshall include the information listed inparagraphs (a)(1) through (a)(3) of thissection on the label or lid of allarchitectural coatings subject to this

subpart that are manufactured orimported on or after April 1, 1997.

(1) The date of manufacture of thecontents or a code indicating the date ofmanufacture.

(2) A statement of the manufacturer’srecommendation regarding thinning ofthe coating. This requirement does notapply to the thinning of architecturalcoatings with water. If thinning of thecoating prior to use is not necessary, therecommendation shall specify that thecoating is to be applied withoutthinning.

(3) The maximum VOC content of thecoating in the container, including anyrecommended thinning. With theexception of low solids stains and lowsolids wood preservatives, this VOCcontent shall be displayed in units of

grams of VOC per liter of coatingthinned to the manufacturer’s maximumrecommendation excluding the volumeof any water, exempt compounds, orcolorant added to tint bases. For lowsolids stains and low solids woodpreservatives, the VOC content shall bedisplayed in units of grams of VOC perliter of coating thinned to themanufacturer’s maximumrecommendation including the volumeof any water and exempt compounds.

(b) Manufacturers and importers ofindustrial maintenance coatingsmanufactured or imported on or afterApril 1, 1997 that are subject to theprovisions of this subpart shall displayon the label or lid of the container thephrase ‘‘NOT INTENDED FORRESIDENTIAL USE.’’


(c) Manufacturers or importers ofrecycled coatings complying with therequirements of § 59.402(d) shallindicate the post-consumer coatingcontent by including the followingstatement on the container label or lid:‘‘CONTAINS NOT LESS THAN XPERCENT BY VOLUME POST-CONSUMER COATING,’’ where ‘‘X’’ isreplaced by the percent, by volume, ofpost-consumer architectural coating.

§ 59.404 Test methods.(a) Except as provided in paragraph

(b) of this section, the EPA’s ReferenceMethod 24 of Appendix A of Part 60 ofthis chapter shall be used to determinecompliance with the VOC levels inTable 1 of § 59.402. Analysis ofwaterborne coating VOC contentdetermined by Reference Method 24shall be adjusted as described in Section4.4 of Reference Method 24.

(b) The Administrator may approve,on a case-by-case basis, alternativemethods of determining the VOCcontent of coatings if they aredemonstrated to the Administrator’ssatisfaction to provide results equivalentto or more accurate than those obtainedusing Reference Method 24.

§ 59.405 Recordkeeping requirements.(a) Each manufacturer or importer

complying with the recycled coatingprovisions in § 59.402(d) shall maintainrecords in written or electronic form ofthe information specified in paragraphs(a)(1) through (a)(6) of this section for aperiod of three years.

(1) The minimum percent post-consumer coating content for eachrecycled coating.

(2) Calculations of the adjusted VOCas determined using Equation 3 in§ 59.402(d) for each recycled coating.

(3) The volume of coating received forrecycling.

(4) The volume of coating receivedthat was unusable.

(5) The volume of virgin materials.(6) The volume of the final recycled

coating manufactured or imported.

§ 59.406 Reporting requirements.(a) All reports in this section shall be

submitted to the appropriate address aslisted in § 60.4 of subpart A of thischapter.

(b) Each manufacturer and importer ofcoatings subject to the provisions of thissubpart shall submit an initial report nolater than April 1, 1997 or within 180days after the date of the firstarchitectural coating manufactured orimported. The initial report shallinclude the information in paragraphs(b)(1) and (b)(2) of this section.

(1) The name and mailing address ofthe manufacturer or importer.

(2) A list of the categories from Table1 in § 59.402 in which coating productsare manufactured or imported.

(c) Manufacturers or importers ofrecycled architectural coatings shallreport to the Administrator theinformation in paragraphs (c)(1) through(c)(5) of this section for each coatingproduct for which the adjusted VOCcontent, as determined in § 59.402(d) isto be used to demonstrate compliance.This report shall be submitted byFebruary 1 of the calendar yearfollowing the year in which thecoating(s) is (are) introduced intocommerce.

(1) The volume of coating received forrecycling.

(2) The volume of coating receivedthat was unusable.

(3) The volume of virgin materialsused.

(4) The minimum post-consumercontent of the coatings manufactured orimported.

(5) The volume of the final recycledcoating manufactured or imported.

(d) In cases where codes are used torepresent the date of manufacture, asprovided in § 59.403(a)(1), themanufacturer or importer shall submitan explanation of each date code to theAdministrator by April 1, 1997 orwithin 30 days after becoming subject tothe requirements of this subpart. Thisreport may be included with the initialcompliance report. An explanation ofany new date codes shall be filed withthe Administrator no later than 30 daysafter the new data code is firstintroduced into commerce.

§ 59.407 Variances.(a) Any manufacturer or importer of

architectural coatings subject to theprovisions of this subpart that cannotcomply with the requirements of thissubpart because of extraordinarycircumstances beyond reasonablecontrol may apply in writing to theAdministrator for a variance. Thevariance application shall include theinformation specified in paragraphs(a)(1) through (a)(3).

(1) The specific grounds upon whichthe variance is sought.

(2) The proposed date(s) by whichcompliance with the provisions of thissubpart will be achieved.

(3) A compliance report reasonablydetailing the method(s) by whichcompliance will be achieved.

(b) Upon receipt of a varianceapplication containing the informationrequired in paragraph (a) of this section,the Administrator will hold a publichearing to determine whether, underwhat conditions, and to what extent, avariance from the requirements in this

subpart is necessary and will bepermitted. A hearing will be initiated nolater than 75 days after receipt of avariance application. Notice of the timeand place of the hearing will be sent tothe applicant by certified mail not lessthan 30 days prior to the hearing. Noticeof the hearing will also be published inthe Federal Register and sent to everyperson who requests such notice, notless than 30 days prior to the hearing.At least 30 days prior to the hearing, thevariance application will be madeavailable to the public for inspection.Information submitted to theAdministrator by a variance applicantmay be claimed as confidential. TheAdministrator may consider suchconfidential information in reaching adecision on a variance application.Interested members of the public will beallowed a reasonable opportunity totestify at the hearing and their testimonywill be considered.

(c) The Administrator may grant avariance if the criteria specified inparagraphs (c)(1) through (c)(3) are met.

(1) If there are reasons beyond thereasonable control of the applicant thatcomplying with the provisions of thissubpart would result in economichardship,

(2) The public interest in mitigatingthe extraordinary hardship to theapplicant by issuing the varianceoutweighs the public interest inavoiding any increased emissions or aircontaminants that would result fromissuing the variance, and

(3) The compliance report proposedby the applicant can reasonably beimplemented and will achievecompliance as expeditiously as possible.

(d) Any variance order will specify afinal compliance date by which therequirements of this subpart will beachieved. Any variance order willcontain a condition that specifiesincrements of progress necessary toassure timely compliance.

(e) A variance shall cease to beeffective upon failure of the party towhom the variance was granted tocomply with any term or condition ofthe variance.

(f) Upon the application of any party,the Administrator may review, and forgood cause, modify, or revoke a variancefrom requirements of this subpart afterholding a public hearing in accordancewith the provisions of paragraph (b) ofthis section.

[FR Doc. 96–22266 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–P


40 CFR Parts 64, 70, and 71

[FRL–5605–1]

Compliance Assurance Monitoring

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Correction to notice of publicmeeting; notice of documentavailability.

SUMMARY: The August 13, 1996, noticeconcerning the availability of the draftCompliance Assurance Monitoring(CAM) rule and the notice of publicmeeting (61 FR 41991) included astatement that the draft documentsconcerning required impact analyseswould be available no later than August30, 1996. This was a misstatement andthe documents will not be availableuntil the CAM rule is promulgated.FOR FURTHER INFORMATION CONTACT:Peter Westlin, Office of Air QualityPlanning and Standards, (919) 541–1058.

Dated: August 29, 1996.John S. Seitz,Director, Office of Air Quality Planning andStandards.[FR Doc. 96–22505 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–M

40 CFR Part 300

[FRL–5557–7]

National Oil and HazardousSubstances Contingency Plan NationalPriorities List

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice of intent to delete theSeldon Clark Property from the GeneralElectric/Shepherd Farm Superfund Sitefrom the National Priorities List (NPL).

SUMMARY: The Environmental ProtectionAgency (EPA), Region IV, announces itsintent to delete the Seldon ClarkProperty from the General Electric/Shepherd Farm Superfund Site from theNational Priorities List (NPL), andrequests public comment on thisproposed action. The NPL constitutesAppendix B of 40 CFR part 300 whichis the National Oil and HazardousSubstances Pollution Contingency Plan(NCP), promulgated by EPA, pursuant toSection 105 of the ComprehensiveEnvironmental Response,Compensation, and Liability Act(CERCLA) of 1980, as amended. EPAand the State of North CarolinaDepartment of Environment, Health,and Natural Resources have determinedthat the Seldon Clark Property poses no

significant threat to public health or theenvironment and therefore, CERCLAremedial measures are not appropriate.DATES: Comments must be submitted byOctober 3, 1996.ADDRESSES: Comments may be mailedto: Giezelle S. Bennett, Remedial ProjectManager, U.S. Environmental ProtectionAgency, Region IV, 345 CourtlandStreet, NE, Atlanta, GA 30365.

Comprehensive information on thisSite is available through the EPA RegionIV public docket, which is located atEPA’s Region IV office and is availablefor viewing by appointment from 9:00a.m. to 4:00 p.m., Monday throughFriday, excluding holidays. Requests forappointments or copies of thebackground information from theregional public docket should bedirected to the EPA Region IV docketoffice.

The address for the regional docketoffice is Ms. Debbie Jourdan, U.S. EPA,Region IV, 345 Courtland St, NE,Atlanta, GA 30365. The telephonenumber is 404–347–5059, ext 6217.

Background information from theregional public docket is also availablefor viewing at the Site informationrepository located at the HendersonCounty Public Library, 301 N.Washington Street, Hendersonville, NC28792. The telephone number is 704–697–4725. The library is open Mondaythrough Thursday from 9:00 a.m. to 9:00p.m., and on Friday and Saturday from9:00 a.m. until 6:00 p.m.FOR FURTHER INFORMATION CONTACT:Please contact either Giezelle Bennett orDiane Barrett, U.S. EPA, Region IV, 345Courtland Street, N.E., Atlanta, GA30365, 1–800–435–9233 ext. 2065 or2073.


I. IntroductionThis notice is to announce EPA’s

intent to delete the Seldon ClarkProperty portion of the General Electric/Shepherd Farm Superfund Site from theNPL. It also serves to request publiccomments on the deletion proposal.EPA will accept comments on thisproposed action for deletion for thirtydays after publication of this documentin the Federal Register.

EPA identifies sites that appear topresent a significant risk to publichealth, welfare, or environment andmaintains the NPL as the list of thesesites. Sites on the NPL qualify forremedial responses financed by theHazardous Substances Response TrustFund (Fund). As described in § 300.425(e)(3) of the NCP, sites deleted from theNPL remain eligible for Fund-financedremedial actions in the unlikely event

that conditions at the site warrant suchactions.

II. NPL Deletion CriteriaThe NCP establishes the criteria that

EPA uses to delete sites from the NPL.In accordance with Section 300.425(e)of the NCP, sites may be deleted fromthe NPL where no further response isappropriate. In making thisdetermination, EPA, in consultationwith the State, considers whether thesite has met any of the following criteriafor site deletion:

(i) Responsible or other parties haveimplemented all appropriate responseactions required;

(ii) All appropriate response actionsunder CERCLA have been implementedand no further response actions aredeemed necessary; or

(iii) The remedial investigation hasdetermined that the release poses nosignificant threat to public health or theenvironment and, therefore, no remedialaction is appropriate.

III. Deletion ProceduresEPA Region IV will accept and

evaluate public comments beforemaking a final decision to delete.Comments from the local communitymay be the most pertinent to deletiondecisions. The following procedureswere used for the intended deletion ofthe Seldon Clark Property portion of theGeneral Electric/Shepherd Farm Site: (1)EPA Region IV has recommendeddeletion and has prepared the relevantdocuments. (2) The State has concurredwith the decision to delete the SeldonClark property. (3) Concurrent with thisannouncement, a notice has beenpublished in the local newspaper andhas been distributed to appropriatefederal, state, and local officialsannouncing the commencement of a 30-day public comment period on theNotice of Intent to Delete. (4) EPA hasmade all relevant documents availablefor public review at the informationrepository and in the Regional Office.

Partial deletion of a site from the NPLdoes not itself create, alter, or revokeany individual’s rights or obligations.The NPL is designed primarily forinformation purposes and to assist EPAmanagement. As mentioned earlier,Section 300.425(e)(30) of the NCP statesthat deletion of a site from the NPL doesnot preclude eligibility of the site forfuture Fund-financed response actions.

For the partial deletion of this Site,EPA will accept and evaluate publiccomments on this Notice of Intent toDelete before finalizing the decision.The Agency will prepare aResponsiveness Summary to addressany significant public comments


received during the comment period.The deletion is finalized after theRegional Administrator places a Noticeof Deletion in the Federal Register.

The NPL will reflect any deletions inthe next publication of the final rule.Public notices and copies of theResponsiveness Summary will be madeavailable to local residents by Region IV.

IV. Basis for Intended Seldon ClarkProperty Deletion

The following Site summary providesthe Agency’s rationale for the proposedintent for partial deletion of this Sitefrom the NPL.

The General Electric/Shepherd FarmSite consists of three non-contiguousdisposal areas in East Flat Rock,Henderson County, North Carolina.These disposal areas (subsites) areknown as the GE property, the ShepherdFarm property, and the Seldon Clarkproperty.

The GE Subsite is approximately 50acres in size and located at thesoutheastern corner of SpartanburgHighway and Tabor Road. TheShepherd Farm Subsite isapproximately 31 acres in size and islocated on Roper Road, approximately2500 feet southwest of the GE Subsite.

The Seldon Clark Subsite is 1 acre insize and is located at the northeasterncorner of Spartanburg Highway andTabor Road, directly across the streetfrom the GE Subsite. Geographically, thecenter of the subsite is located at35°16′35′′N latitude and 82°25′00′′Wlongitude according to theHendersonville, North Carolina, USGS7.5 minute topographic map.

From 1955 to present, the GE facilityhas been used to develop, design, andmanufacture complete high intensitydischarge luminaire systems, whichconsists of the assembly of opticalcomponents, ballasts, mountings, andhigh mast lowering devices. From about1955 until 1975, GE also manufactured‘‘constant-current’’ transformers at thisfacility. These transformers were filledwith PCB-containing oil, which weredelivered to the facility in railroad tankcars.

Waste streams generated by GE’sfacility from the beginning of plantoperations have included constructionwastes, buffing compound, epoxycompound, phenolic residue, paintsludges, PCB capacitors, solvents,transformer oil, electrical insulators/capacitors, waste acids, dye cast moldreleased hydrocarbons, heavy petroleumgreases, and varnish residues. Thesewaste streams contain many VOCs,heavy metals, acids, and PCBs.

The GE facility contains threelandfills, two unlined wastewater

treatment ponds, 26 acres oflandspreading plots, and 18 areas whereunderground storage tanks were located.From approximately 1957 to 1970, GEwastes were also intermittentlydeposited at the Shepherd Farmproperty where it was dumped, burned,and bulldozed in an approximate 3-acrearea onsite. The Spring Havencommunity was later constructed over aportion of this dumping area.

During the 1960s and early 1970s, GEwastes were also dumped in anapproximate 0.3 acre ravine on theSeldon Clark property. GE reported thatthe property was used for the disposalof construction rubble only, butaccording to Mr. Clark, the ravine wasalso filled in with drums of aluminumpaint and drums of cleaning fluid fromdye-casting machinery. Oldtransformers are also reported to havebeen deposited in the ravine. However,none of these items were found duringEPA’s investigation.

In 1988 and 1989, EPA conducted SiteInspections and investigations at allthree Subsites. The Site was proposedfor inclusion on the NPL in February1992 and finalized on the NPL inDecember 1994.

EPA performed a RemedialInvestigation of all three subsites inSeptember 1994. This Notice of Intent toDelete (NOID) is limited to the SeldonClark Subsite.

Five soil samples were collected fromtwo soil borings on the Seldon ClarkSubsite. Semi-volatile organiccompounds, pesticides and PCBs werefound, but all were at concentrationsunder the soil cleanup levels (SCLs)determined in the feasibility study. Onesurface water/sediment sample wastaken downgradient of this Subsite.Again, semi-volatiles and PCBs werefound at concentrations below the SCLs.One groundwater sample was collecteddowngradient of the suspected fill area.This sample contained one semi-volatilecompound at trace concentrations.

A Record of Decision (ROD) for theSite was signed on September 29, 1995.The ROD recommended soil andgroundwater remediation at the GESubsite and the Shepherd Farm Subsite,but not for the Seldon Clark Subsite.

The EPA community relationsactivities at the Site included a publicmeeting on August 3, 1995 to present tothe public the Agency’s Proposed Planfor remediation at the Site. Publiccomments received during the 60-daypublic comment period were consideredand addressed in the ResponsivenessSummary. This document was includedas an appendix to the ROD.

There are no institutional controls forthis Subsite. A five-year review will not

be conducted at the Subsite, due to thefact that soil and groundwatercontaminants are below the SCLs. Theconcentrations found in the samplestaken do not present a current or futurethreat to public health or theenvironment.

EPA, with concurrence of the State ofNorth Carolina, has determined that allappropriate Fund-financed responsesunder CERCLA for the Seldon ClarkSubsite have been completed, and thatno further activities by responsibleparties are appropriate. Therefore, EPAproposes to delete this Subsite from theNPL.

Dated: June 11, 1996.A. Stanley Meiburg,Deputy Regional Administrator, Region IV,U.S. Environmental Protection Agency.[FR Doc. 96–21823 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–P

FEDERAL COMMUNICATIONSCOMMISSION

47 CFR Chapter I

[CC Docket No. 87–75]

Provision of Aeronautical Services viathe Inmarsat System

ACTION: Proposed rule; extension ofcomment date.

SUMMARY: BT North America, Inc.(BTNA) requested a 45-day extension oftime to file comments in response to theFurther Notice of Proposed Rulemaking.BTNA pointed to the numerous changesin the marketplace since the initialpetition was filed and the FurtherNotice was issued, and the need for anin-depth analysis of these changes. TheCommission found that the publicinterest would be served by allowingadditional time for an in-depth analysisof the technical and policy issuespresented in the Further Notice. TheCommission granted BTNA’s extensionrequest and the comment deadline isextended to September 3, 1996.DATES: Comments are due on or beforeSeptember 3, 1996. Replies are due onor before October 4, 1996.ADDRESSES: Federal CommunicationsCommission, 1919 M Street, NW.,Washington, DC 20554.FOR FURTHER INFORMATION CONTACT: OlgaMadruga-Forti at (202) 418–0749.SUPPLEMENTARY INFORMATION: Thefollowing is a summary of PublicNotice, Report No. SPB–52 (releasedJune 26, 1996):

The Commission issued a FurtherNotice of Proposed Rulemaking inProvision of Aeronautical Services via


the Inmarsat System, FCC 96–161, 61FR 30579 (June 17, 1996). Based on thepublication date, comments are due July17, 1996 and replies are due August 16,1996.

BT North America, Inc. (BTNA) hasfiled a Motion for an Extension of Timeto extend the comment date anadditional 45 days, or 75 days frompublication in the Federal Register.BTNA states that more time is neededfor parties to provide in-depthcomments based on changes in theindustry over the past seven years andto conduct the complex technicalanalysis required to address theCommission’s tentative conclusions.

Accordingly, pursuant to section0.261 of the Commission’s rules ondelegations of authority, 47 CFR 0.261,and for good cause shown, BTNA’smotion is granted.

Comments may be filed on or beforeSeptember 3, 1996. Replies may be filedon or before October 4, 1996.Federal Communications CommissionWilliam F. Caton,Acting Secretary.[FR Doc. 96–22198 Filed 8–30–96; 8:45 am]BILLING CODE 6712–01–U

47 CFR Parts 1 and 25

[IB Docket No. 95–59]

Preemption of Local Zoning Regulationof Satellite Earth Stations

AGENCY: Federal CommunicationsCommission.ACTION: Proposed rule; request forcomments.

SUMMARY: The Commission issued aReport and Order and Further Notice ofProposed Rulemaking adopting rulesimplementing Section 207 of theTelecommunications Act of 1996relating to nonfederal restrictions oninstallation of satellite and certain otherantennas. The Public Notice seeks torefresh the record and requestscomments on any remaining issuespertaining to satellite earth stationantennas and local restrictions.DATES: Comments are due on or beforeSeptember 27, 1996. Replies are due onor before October 28, 1996.ADDRESSES: Federal CommunicationsCommission, 1919 M Street, NW.,Washington, DC 20554.FOR FURTHER INFORMATION CONTACT:Rosalee Chiara at (202) 418–0749.SUPPLEMENTARY INFORMATION: Thefollowing is a summary of PublicNotice, Report No. SPB–55 (releasedAugust 7, 1996):

On August 6, 1996, the Commissionreleased a Report and Order and FurtherNotice of Proposed Rulemakingadopting rules implementing Section207 of the Telecommunications Actwith respect to nonfederal restrictionson installation of satellite and certainother antennas used to receive videoprogramming. (See FCC 96–328(released August 6, 1996)) In this order,the Commission stated that theInternational Bureau would issue thispublic notice soliciting comment toupdate and refresh the record withrespect to issues that are not addressedin the August 6 order but which remainpending in IB Docket 95–59.Accordingly, we seek comment on anyissues pertaining to satellite earthstation antennas and local restrictionsthat remain in light of the Commission’sAugust 6 action.

Comments filed in response to thispublic notice should be filed on orbefore September 27, 1996 and repliesshould be filed on or before October 28,1996. Copies of relevant documents canbe obtained in the FCC ReferenceCenter, 1919 M Street, NW., Room 239,Washington, DC, and also may bepurchased from the Commission’s copycontractor, International TranscriptionService, (202) 857–3800, 2100 M Street,NW., Suite 140, Washington, DC 20037.For further information contact RosaleeChiara, 202–418–0749.Federal Communications Commission.William F. Caton,Acting Secretary.[FR Doc. 96–22199 Filed 8–30–96; 8:45 am]BILLING CODE 6712–01–P

47 CFR Part 22

[WT Docket No. 96–162; GEN Docket No.90–314; FCC 96–319]

Competitive Service Safeguards forLocal Exchange Carrier Provision ofCommercial Mobile Radio Services

AGENCY: Federal CommunicationsCommission.ACTION: Notice of proposed rulemaking.

SUMMARY: In this Notice of ProposedRulemaking (NPRM), in WT Docket No.96–162 and GEN Docket No. 90–314, theCommission initiates a comprehensivereview of the existing regulatoryframework of structural andnonstructural safeguards for localexchange carrier (LEC) provision ofcommercial mobile radio services(CMRS). The Commission proposes toeliminate the current requirement thatBell Operating Companies (BOCs) mustprovide cellular service through a

structurally separate corporation. TheCommission also proposes rule changesnecessary to implement thoseprovisions of the TelecommunicationsAct of 1996, Public Law 104–104, 110Stat. 56 (1996) (‘‘the 1996 Act’’) thatgovern the joint marketing of CMRS andlandline services, protections forcustomer proprietary networkinformation (CPNI) and networkinformation disclosure. TheCommission’s objective is to implementfurther the mandate of the OmnibusBudget Reconciliation Act of 1993, TitleVI, Sections 6002(b)(2)(A),6002(b)(2)(B), Public Law No. 103–66,107 Stat. 312, 392 (1993) to treat similarcommercial mobile radio servicessimilarly by placing all CMRS licenseesunder a uniform set of nonstructuralsafeguards.DATES: Comments must be filed on orbefore October 3, 1996. Reply commentsare to be filed on or before October 24,1996. Comment of the Office ofManagement and Budget on theinformation collections containedherein are due November 4, 1996.ADDRESSES: Federal CommunicationsCommission, 1919 M Street, NW.,Washington, DC 20554.FOR FURTHER INFORMATION CONTACT: JaneHalprin or Mika Savir, CommercialWireless Division, WirelessTelecommunications Bureau, at (202)418–0620.SUPPLEMENTARY INFORMATION: ThisNotice of Proposed Rulemaking in WTDocket No. 96–162 and GEN Docket No.90–314, adopted on July 25, 1996 andreleased on August 13, 1996, is availablefor inspection and copying duringnormal business hours in the FCCReference Center, Room 575, 2000 MStreet, NW., Washington, DC. Thecomplete text may also be purchasedfrom the Commission’s copy contractor,International Transcription Service,Inc., 2100 M Street, NW., Suite 140,Washington, DC 20037, (202) 857–3800.Synopsis of the Notice of ProposedRulemaking:

I. Background1. Currently, there are distinct rules

for BOC provision of cellular serviceversus non-BOC provision of personalcommunications service (PCS) and othercommercial mobile radio services. BOCsare required to provide cellular servicethrough structurally separate subsidiarycorporations, whereas all other LECsmay provide cellular service on anunseparated basis. Moreover, theCommission has declined to imposethese restrictions on LEC, includingBOC, provision of other CMRS, such asPCS and specialized mobile radio (SMR)


service. The BOCs have sought relieffrom the Commission’s cellularstructural separation rule on thegrounds of changed circumstances andcompetitive necessity. The BOCs’challenges to the continued viability ofthe restrictions contained in Section22.903 are premised on two points: (1)the Commission’s existinginterconnection rules and accountingsafeguards are sufficient to protectagainst anti-competitive behavior by theBOCs; and (2) LECs that are not BOCsare treated differently with respect tothe provision of cellular service andother commercial mobile radio services.In response, parties opposing grant ofsuch waivers have cited the broadercompetitive implications of theindividual waiver requests, and havegenerally disputed the BOC claims.

2. A central purpose of the 1996 Actis to provide open access to local andother telecommunications markets inorder to encourage entry by newcompetitors. Structural separation wasoriginally imposed over a decade ago oncertain LECs to prevent them fromleveraging their market power in thelocal exchange market into othercompetitive markets, such as cellularservice. The Commission notes thatCMRS providers will, in the very nearterm, need to enter into a series ofagreements with local exchangeincumbents for such things as themutual exchange of traffic, the locationof equipment, and the sharing ofnetwork functionalities. Effectivecompetitive safeguards, where ademonstrated need exists, shouldpermit competitors to construct theirnetworks, implement their businessplans, and begin offering service tocustomers with the reasonableassurance that the incumbent LEC willnot be able to extend its market powerinto the critical new PCS market.

3. The original version of Section22.903 was adopted as Section 22.901 in1981 when the Commission amendedPart 22 of the rules to provide for theauthorization of two cellular licenseesin each market—one wireline carrierand one non-wireline carrier. Topreserve the competitive potential of thenon-wireline cellular provider, theCommission required the wirelinecarrier to provide its cellular servicethrough a structurally separatesubsidiary, i.e., an independentcorporation with separate officers,separate books of account, and separateoperating, marketing, installation andmaintenance personnel, and alsoprohibited cellular licensees affiliatedwith landline LECs from owningfacilities for the provision of landlinetelephone service. The structural

separation requirement was intended toprotect against improper cross-subsidization, to assure equitableinterconnection arrangements, and tomake the detection of anti-competitiveconduct somewhat easier for regulatoryauthorities.

4. In 1982, the Commission revisedSection 22.901 to apply only to AT&Tand its affiliates. In 1983, theCommission further amended Section22.901 in response to the breakup ofAT&T under the divestiture agreemententered into by AT&T and theDepartment of Justice. A final revisionof the cellular structural separationrequirement occurred in the Part 22Rewrite Order, Revision of Part 22 of theCommission’s Rules Governing thePublic Mobile Services, CC Docket No.92–115, Report and Order, 59 FR 59502(November 17, 1994) (Part 22 RewriteOrder), reconsideration pending, as partof the Commission’s comprehensivereorganization of Part 22 of the rules. Inthe Part 22 Rewrite Order, Section22.903 was amended to incorporate theprovisions of former Section 22.901.Section 22.903 essentially consists oftwo parts: (1) the requirement that BOCsprovide cellular service through aseparate corporation; and (2) a series ofrestrictions on the operation of thatseparate affiliate, including restrictionson use and ownership of landlinetransmission facilities and requirementsfor the independent operation of theseparate cellular affiliate throughseparate books of account, officers,operating, marketing, installation andmaintenance personnel and utilizationof separate computer and transmissionfacilities in the provision of cellularservice. In addition, Section 22.903(d)requires that all transactions betweenthe BOC and the cellular subsidiary orits affiliates be reduced to writing andthat a copy of all agreements (other thaninterconnection agreements) betweensuch entities be kept available forinspection upon reasonable request bythe Commission. It also requires that allaffiliate contracts with respect tocellular/landline interconnection befiled with the Commission; however,this requirement does not apply to anytransaction governed by an effectivestate or federal tariff. Section 22.903(e)prohibits BOCs from engaging in thesale or promotion of cellular service onbehalf of the separate corporation. Thisprohibition does not extend to jointadvertising or promotions by thelandline carrier and its cellular affiliate.Finally, the rule prohibits the provisionof BOC customer proprietary networkinformation (CPNI) to the cellularaffiliate, unless such CPNI is made

publicly available on the same termsand conditions.

5. The Broadband PCS Order,Amendment of the Commission’s Rulesto Establish New PersonalCommunications Services, GEN DocketNo. 90–314, Second Report and Order,58 FR 59174 (November 8, 1993),reconsideration, 59 FR 32830 (June 24,1994) (Broadband PCS Order), foundthat allowing LECs to participate in PCSmay produce significant economies ofscope between wireline and PCSnetworks, and that these economies willpromote more rapid development ofPCS, yield a broader range of PCSservices at lower costs to consumers,and should encourage LECs to developtheir wireline architectures to betteraccommodate all PCS. Thus, theCommission declined to imposestructural separation for PCS providersaffiliated with LECs, including theBOCs, reasoning that such limitationson the ability of LECs to take advantageof their potential economies of scopewould jeopardize, if not eliminate, thepublic interest benefits sought throughLEC participation in PCS. TheCommission further concluded that thecellular-PCS cross-ownership policiesare adequate to ensure that LECs do notbehave in an anti-competitive manner.The Commission also found thatexisting accounting safeguards weresufficient to protect against cross-subsidization by the LECs, and thereforedeclined to impose additional cost-accounting rules on LECs that providePCS service. The Broadband PCS Orderalso reiterated that commencement ofPCS operations by LECs would becontingent on the LEC implementing anacceptable non-structural safeguardsplan.

6. In the CMRS Second Report andOrder, Implementation of Sections 3(n)and 332 of the Communications Act,Regulatory Treatment of MobileServices, GEN Docket No. 93–252,Second Report and Order, 59 FR 18493(April 19, 1994) CMRS Second Reportand Order), reconsideration pending,the Commission concluded that all LECswith CMRS affiliates must follow thesame accounting safeguards that wereadopted in the PCS proceeding. TheCommission observed that thesesafeguards were necessary to preventcost-shifting from the non-regulatedaffiliates to the regulated ratebase of theLEC. The Commission also noted thatthe commenters had raised importantissues with respect to the potential roleof accounting, structural separation, andother safeguards in promoting acompetitive CMRS environment. At thattime, due to inadequate notice and aninsufficient record, the Commission


again declined to address the issue ofremoving the cellular structuralseparations requirements for the BOCs.

7. In Cincinnati Bell, Cincinnati BellTelephone v. FCC, 69 F.3d 752 (6th Cir.1995) (Cincinnati Bell), the Sixth CircuitCourt of Appeals found that theCommission had failed to adequatelyjustify its retention of Section 22.903, inlight of the Commission’s decisionpermitting LECs (including BOCs) toprovide PCS under nonstructuralsafeguards. The court stated that theCommission was required to give areasoned explanation of its disparatetreatment of the Bell companies.Accordingly, the court remanded thematter to the Commission withinstructions to promptly conduct aninquiry into whether the structuralseparation requirement continues toserve as a necessary regulatoryrestriction on BellSouth and other BellOperating Companies. Both before andafter Cincinnati Bell, a number of BOCsfiled waiver petitions seeking varyingforms of relief from the requirements ofSection 22.903. The Commission hasgranted one such waiver(Southwestern), another has beenwithdrawn (BellSouth), and theremainder (US West, Bell Atlantic) arepending.

8. The 1996 Act contains specificrequirements that BOCs be permitted toenter into previously prohibited orconstrained lines of business, including,inter alia, in-region interLATAtelecommunications services,interLATA manufacturing, information,and electronic publishing servicesthrough a separate affiliate. In certaincases, this separate subsidiaryrequirement ‘‘sunsets’’ after a number ofyears. With respect to in-regioninterLATA service, these separateaffiliates are under additional structuraland transactional constraints includingthe requirement that the BOC deal withthe separate affiliate on an arm’s lengthbasis. Section 272(c), 47 U.S.C. § 272(c),imposes additional nondiscriminationsafeguards on a BOC’s dealings with itsseparate affiliate. With the addition ofSection 601(d), Public Law 104–104,110 Stat. 56 (1996), the 1996 Actexpressly permits BOCs to marketjointly and sell CMRS together with avariety of landline services. Section 222,47 U.S.C. § 222, contains newrequirements for maintaining theconfidentiality of proprietaryinformation.

II. Notice of Proposed Rulemaking

A. BOC Cellular SafeguardsIn this NPRM, the Commission

addresses one of the issues remanded by

the Sixth Circuit in Cincinnati Bell:whether the structural separationrequirement continues to serve as anecessary regulatory restriction on theBOCs. The Commission proposes aseries of amendments to the ruleintended to provide BOCs sufficientflexibility in serving the public, whilepreserving the ability to detect andcorrect any potential anti-competitivebehavior, whether that be cost shifting,interconnection discrimination, or someother form of leveraging the BOCs’dominant position in the local exchangemarket. The Commission also seekscomment on whether the public interestwould be better served by (1) atransitional arrangement whereby someaspects of the current structuralseparation requirements would beretained during an interim period; or (2)immediate replacement of Section22.903 with the uniform streamlinedsafeguards proposed for in-region LECPCS and other commercial mobile radioservices.

10. One of the primary objectivesunderlying the Commission’s adoptionof structural separations was to preventinterconnection discrimination by BOCsin their relationship with affiliated andunaffiliated cellular carriers. Inconsidering whether to retain structuralseparation for BOC cellular service, theCommission is taking into accountwhether proposed changes to theexisting LEC CMRS interconnectionpolicies either support retention ofSection 22.903, or demonstrate itsobsolescence. In addition, the 1996 Actcontains significant new provisionswith respect to interconnection. TheCommission has examined LEC CMRSinterconnection issues in recentdockets. In the InterconnectionCompensation NPRM, InterconnectionBetween Local Exchange Carriers andCommercial Mobile Radio ServiceProviders, CC Docket No. 95–185,Notice of Proposed Rulemaking, 61 FR03644 (February 1, 1996)(Interconnection Compensation NPRM),the Commission found that if thecommercial mobile radio services are tocompete directly against LEC landlineservices, it is important that the prices,terms and conditions of interconnectionarrangements not serve to buttress LECmarket power against erosion bycompetition. Section 251, 47 U.S.C.§ 251, imposes extensiveinterconnection obligations on alltelecommunications carriers, andparticularly on LECs and incumbentLECs. Section 251(a) imposes a generalduty on all telecommunications carriers(1) to interconnect directly or indirectlywith the facilities and equipment of

other telecommunications carriers; and(2) not to install network features,functions, or capabilities that do notcomply with the guidelines andstandards established pursuant toSection 255 or 256. The newinterconnection obligations in Section251(b) for LECs govern LEC provision ofresale, number portability, dialingparity, access to rights-of-way, andreciprocal compensation for thetransport and termination of trafficoriginating on another carrier’sfacilities. Section 251(c) containsadditional obligations for incumbentLECs, which include, inter alia: (1) goodfaith negotiation of terms andconditions of agreements to fulfillSection 251 (b) and (c) interconnectionobligations; (2) provision ofinterconnection with the LEC’s networkfor transmission and routing oftelephone exchange and exchangeaccess service, at any technicallyfeasible point, that is at least equal inquality to that provided by the LEC toitself or any affiliate or other party, onrates, terms and conditions that are just,reasonable and nondiscriminatory; (3)provision of unbundled,nondiscriminatory access to networkelements to any requestingtelecommunications carrier, at anytechnically feasible point on rates, termsand conditions that are just, reasonableand nondiscriminatory; (4) provision ofpublic notice of changes in theinformation necessary for transmissionand routing of services using the LEC’snetwork or of changes that would affectinteroperabililty; and (5) the duty toprovide physical collocation ofequipment necessary forinterconnection or access to unbundlednetwork elements at the premises of theLEC, on reasonable andnondiscriminatory rates, terms andconditions, unless the LEC demonstratesto the State commission that physicalcollocation is not practical due totechnical reasons or space limitations,in which case the LEC may providevirtual collocation. Section 252 containsprocedures for negotiation, arbitration,and approval of agreements, and givesthe States authority to resolveinterconnection disputes arising underSections 251 and 252. In addition, a LECmust make available to any requestingcarrier, on the same terms andconditions, any interconnection,service, or network element providedunder an approved agreement to whichit is a party.

11. The question remanded by theSixth Circuit is whether the structuralseparation requirements of Section22.903 continue to serve as a necessary


regulatory restriction on the BOCs, orwhether changed circumstances haveeither obviated the need for suchrestrictions, or rendered them contraryto the public interest. The Section22.903 restrictions on the BOCs wereimposed, as a general matter, to preventthem from leveraging their dominanceinto the newly created cellular servicemarkets. The structural separationrequirements were specifically intendedto protect BOC local exchangeratepayers by preventing cross-subsidization of the more competitivecellular service, and to preventdiscriminatory interconnectionpractices with respect to the non-wireline cellular provider, by requiringthat the wireline and non-wirelineentities exist independently from oneanother with respect to facilities,operations, management and otherpersonnel. With respect to both cross-subsidization and interconnection,structural separation was believed topermit easier detection and disclosureof improper activities and to reduceunnecessary regulatory intrusion intocompetitive or unregulated operations.

12. The Commission has alsorecognized that structural separationentails costs to the carriers, in the formof lost efficiencies of scope and addedcosts of establishing separate facilities,operations, and personnel, as well aslost opportunities for customers toobtain integrated and innovative servicepackages. In the case of CPE andenhanced services, the Commissionrecognized costs to small business andresidential customers because the BOCs,which already had existing marketingcontacts with households in theirservice regions, could not inform themof new and desirable enhanced serviceofferings, such as voice messaging,through existing marketing contacts.The result, in many cases, was that suchcustomers would never learn of theavailability of such desired offerings atall. Thus, the public benefit ofdissemination of advanced telephoneofferings that has been the product ofjoint marketing of basic and enhancedservices and CPE was found to outweighthe costs to competition of integratedBOC offerings, if such integratedservices were provided pursuant toappropriate nonstructural safeguards.

13. The Commission referred to theeconomies of scope arising from the useof wireless loops and wireless tails inthe broadband PCS orders, but therewere no specific findings about thepublic benefits of integrated operationsor joint marketing of BOC cellular andlandline services. The onlynonstructural safeguards specificallyaddressed in the broadband PCS

proceeding were the cost accountingand allocation rules contained in Parts32 and 64 of the Commission’s rules.Thus, the nature of the nonstructuralsafeguards, other than the accountingrules, that might be applied in lieu ofstructural separations to LEC-providedCMRS has never been squarelyaddressed by this Commission until thisNPRM.

14. The Commission observes thatCongress has concluded as a generalmatter that such requirements, togetherwith associated nondiscriminationsafeguards, constitute an appropriateinitial safeguard for BOC entry into theprovision of certain competitiveservices, which can be phased out asmarkets become more competitive. Atthe same time, the Commission notesthat the BOCs have been subject tostructural separation requirements fortheir cellular operations since theirinception, and that the BOCs aregenerally incumbents in CMRS markets,facing market entry by PCS competitors.In this NPRM, the Commission exploresvarying approaches to separate affiliateand nondiscrimination safeguards forBOC cellular operations, whileproposing to give full expression toCongressional intent regarding jointmarketing, customer proprietaryinformation and network informationdisclosure requirements.

15. The Commission finds thatalthough there have been vast changesin the nature of the wireless marketsince the 1981 imposition of the BOCcellular structural separationrequirement, the market power of theBOCs in the landline local exchange andexchange access markets has remainedrelatively stable, and is likely to remainso until the market entry andinterconnection changes authorized bythe 1996 Act occur. The BOCs thuscurrently retain market power in thelocal exchange market, and thereforecontrol over public switched networkinterconnection within their in-regionstates. The Commission seeks commentas to whether in-region application ofseparate affiliate and nondiscriminationrequirements would continue to serve asan important regulatory check on theBOCs’ market power in local exchange.

16. Interconnection. Prevention ofinterconnection discrimination was oneof the central justifications for imposingstructural separation. A separate cellularaffiliate provides a template by which tomeasure the rates, terms, and conditionsof these entities’ interconnectionagreements with their affiliated LECs.The effective enforcement ofnondiscrimination rules depends on thevisibility of the transactions underscrutiny. Such visibility does not

depend on structural separation per se,but could be achieved through a morelimited separate affiliate requirement,including one that permitted integratedmanagement with affiliates providinglandline services. The Commissionbelieves that it will be particularlycrucial to retain some form of separateaffiliate requirement, either structural ornon-structural, as the new CMRSentrants begin to negotiate theirinterconnection arrangements with theincumbent BOCs. The Commissionseeks comment on this analysis.

17. Price Discrimination. TheCommission is concerned that thepossibility of discrimination by a BOCor incumbent LEC in favor of its owncellular operations and against otherCMRS providers could be increasedabsent some form of separate subsidiaryrequirement, either structural or non-structural, and that the Commission’stasks of detecting such discriminationand determining whether it isreasonable or unreasonable would begreatly complicated. The Commissionseeks comment on the value of separateaffiliates in detecting and deterringpricing discrimination, and whether thedegree of separation (i.e., structuralversus non-structural) has any effect onthe value of this safeguard.

18. Cross-subsidization. TheCommission observes that somecommenters continue to argue thatcross-subsidization is possible evenunder a price cap regime, for thoseservices that are either not subject to apure price cap option, or continue to beregulated under a rate-of-return systemat the intrastate level. Presumably, thecost-shifting these parties are concernedwith would occur between the as-yetprimarily intrastate competitive cellularservice and the intrastate as-yetprimarily monopoly local exchangeservice. The Commission seeks furthercomment on these issues, and urges theparties alleging continued cross-subsidyproblems under price caps to providespecific data in support of their claimsand to address the relative value ofstructural and non-structural separateaffiliate requirements in this regard.

19. Leveraging of Market Power. TheCommission notes that one concernwith respect to integrated landline andcellular operations has been theincentives and opportunities such acorporate structure provides forleveraging of the LEC’s local exchangemarket power into the more competitivecellular market. The Commission isconcerned about the potential for abusesin provisioning, installation,maintenance and customer networkdesign that might not be addressedadequately by the uniform nonstructural


safeguards proposed for LEC provisionof CMRS, at least during the transitionalperiod before implementation of the1996 Act’s interconnection and networkunbundling provisions. Structuralseparation, if continued on an interimbasis, could prevent, for example, theBOC from tasking a single set of officersand personnel with the interconnectionarrangements for its cellular unit’s PCScompetitor as well as dealings with thatcompetitor’s major customers to providelocal exchange service, or cellularservice, or both. The Commission notesthat nonstructural safeguards would notprevent such sharing of personnel andintegrated management decisionmaking.The Commission seeks comment onwhether such integrated operationswould present realistic opportunities foranti-competitive conduct and, if so,whether safeguards less restrictive thanour current structural separation ruleswould sufficiently constrain suchconduct.

20. Costs and Benefits of IntegratedVersus Structurally SeparatedOperations. The Commission notes thatthe BOCs have sought relief fromSection 22.903 primarily so that theycould benefit from the cost efficienciesof integrated operations, and so thattheir customers could benefit from‘‘one-stop-shopping,’’ i.e., a single pointof contact for all service, repair andbilling needs. The Commission observesSection 601(d) increases the flexibilityafforded the BOCs to meet customerdemands without necessarilyeliminating the remainder of thestructural separation requirement. TheCommission seeks comment on thisanalysis. Additionally, the Commissionseeks data on the relative benefit ofintegrated operations other than thoserelating to joint marketing. TheCommission seeks comment on specificpublic benefits from integrated cellular/landline operations that structuralseparation precludes. Parties submittingcomments should provide specificinstances of savings, economies of scaleand/or scope, or other consumerbenefits that they contend would beimpossible without integratedoperations. The Commission isparticularly interested in receivinginformation and comment on the effecton the cost-benefit analysis of recentinitiatives seeking to introduce greaterflexibility for CMRS licensees’ use oftheir spectrum.

21. Proposed revisions to Section22.903—limitation to in-region BOCcellular services. The Commissiontentatively concludes that, at aminimum, certain aspects of Section22.903 may be safely relaxed to permitthe BOCs increased flexibility in

meeting customer needs, while at thesame time protecting BOC ratepayersand wireless competitors. TheCommission believes that for out-of-region combined service offerings, thecosts to the carrier of establishing asubsidiary in addition to theirstructurally separate cellular subsidiaryto provide integrated competitivelandline local exchange (CLLE) andcellular services outweigh any possiblebenefits to the public of suchfragmented operations. The Commissionalso believes that additional relief iswarranted for BOC provision of out-of-region cellular service. The Commissiontentatively concludes that Section22.903 should be limited in scope to in-region services of the BOC and itscellular operations, or, in the case of ajoint venture between two or moreBOCs, the in-region services of all of thejoint venture participants together. TheCommission tentatively concludes thatsuch relief would promote localexchange competition in those areas inwhich the affiliated LEC is not theincumbent local exchange provider. TheCommission seeks comment on thesetentative conclusions.

22. Proposed revisions to Section22.903—interim relief for out-of-regionoperations. The Commission eliminatesany out-of-region effect of Section22.903, as part of the effort to narrowlytailor restrictions to reach only therelationship between the incumbentBOC and its cellular subsidiary in theincumbent’s in-region service area. TheCommission concludes that the publicinterest would be served by granting theBOCs interim relief from the out-of-region reach of our existing Section22.903 requirements. The Commissionalso concludes that immediate out-of-region relief from Section 22.903 willbenefit consumers by promotingcompetition in those areas in which theBOC cellular operation is not affiliatedwith the incumbent LEC by permittingthe BOCs to structure their out-of-regionofferings to suit their businessjudgment. The Commission furtherconcludes that the BOCs may exercisethis degree of flexibility in provisioningtheir out-of-region cellular serviceswithout undermining the coreprotections of the rule for either theBOCs’ in-region local exchangeratepayers, or their cellular competitors.The Commission is granting to all BOCsa waiver of the requirements of Section22.903 with respect to the provision ofcellular service outside of their in-region service areas.

23. Ownership of Landline Facilities.Section 22.903(a) prohibits, inter alia,BOC separate cellular affiliates fromowning any facilities for the provision

of landline service. The Commissionproposes to amend the portion ofSection 22.903(a) prohibiting thecellular affiliate from owning anyfacilities for the provision of landlineservice to permit a BOC cellular affiliateto own landline facilities for theprovision of landline services, includingcompetitive landline local exchange(CLLE) and interexchange service, in thesame market with the affiliatedincumbent LEC. Thus, the rule would bemodified only to prohibit the cellularaffiliate from owning, including jointlyowning with the incumbent affiliatedLEC, landline facilities that the latteruses in the provision of landline localexchange services. The Commissionbelieves that retention of thisprohibition is appropriate for the samereasons that the Commission proposesto include a limited separate affiliaterequirement in the proposed uniformLEC/CMRS safeguards, i.e., todistinguish clearly between chargesapplied to all interconnectors and jointcost allocations resulting fromintegrated operations. The Commissionbelieves that such relief would benefitthe public by enabling a new entrant tothe local exchange market to provide apackage of services without the risk ofLEC monopoly cross-subsidization orinterconnection discrimination. TheCommission seeks comment on thisproposal.

24. BOC CMRS Joint Marketing andResale; Section 222 CPNI Requirements;and Section 251(c)(5) NetworkInformation Disclosure Obligations. The1996 Act expressly permits a BOC tomarket jointly and sell CMRS inconjunction with several types oflandline service in Section 601(d). TheCommission tentatively concludes thatSection 601(d) does not necessarilyrequire the elimination of the remainderof our current structural separationrequirements. As support for thisconclusion, the Commission notes thatthe authority to engage in jointmarketing and sale of landline andCMRS services is expressly madesubject to the provisions of Section 272,which include separate affiliaterequirements. The Commission believesthat it retains authority andresponsibility to determine the scope ofSection 601(d), the definition of jointmarketing intended, and the rules todefine the relationship between theaffiliated entities engaged in such jointmarketing. The Commission seekscomment on this interpretation of theeffect of Section 601(d).

25. The Commission proposes todefine ‘‘joint marketing’’ as referencedin that provision as the advertising,promotion, and sale, at a single point of


contact, of the CMRS, telephoneexchange service, exchange access,intraLATA and interLATAtelecommunications, and informationservices provided by the BOC. Suchjoint marketing also includes, but is notlimited to, activities such as promotion,advertising and in-bound servicemarketing. The Commission furthertentatively concludes that Section601(d) restores the ability of the BOCsto engage in the joint sale or promotionof cellular and landline service. TheCommission tentatively concludes thatthe public interest in preventing, andpermitting easy detection of, cross-subsidization requires that such jointmarketing be done on behalf of theseparate affiliate, subject to affiliatetransaction rules and classified as a non-regulated activity, on a compensatory,arms-length basis. The Commissionseeks comment on these tentativeconclusions, and whether it shouldimpose a requirement similar to that ofSection 272(b)(5) requiring that alltransactions be reduced to writing andmade available for public inspection.

26. Integrated sales and marketing ofresold cellular and incumbent LEClandline local exchange service areclearly permitted under Section 601(d).The Commission seeks comment onwhether it should impose conditionsimplementing the resale authority underSection 601(d) of the 1996 Act, and ifso, what these conditions should be. Inaddition, the Commission seekscomment on whether it should mandatepublic disclosure of rates, terms, andconditions of service in cases where theLEC is reselling its cellular affiliate’sservice. In the alternative, theCommission seeks comment on whetherthe general proscription against unjustor unreasonable discrimination inSection 202(a) and the formal complaintprocess are sufficient deterrents todiscriminatory resale practices. Inaddition, the Commission seekscomment as to how implementation ofSection 601(d) should affect potentiallyrelated joint marketing and saleactivities that are currently prohibitedunder Section 22.903, such as jointinstallation, maintenance, and repair ofBOC cellular and landline localexchange services. The Commission alsoseeks comment on the effect of the jointmarketing authorization on activitiessuch as billing and collection.

27. Section 22.903(f) currentlyprohibits BOCs from providing anycustomer proprietary information to acellular affiliate unless such informationis publicly available on the same termsand conditions. The Commission seekscomment whether the current CPNI rulein Part 22 is inconsistent with Section

222. The Commission notes thatcontinued application of the existingrule would limit a customer’s options ingranting approval for use or disclosureof, or access to, individually identifiableCPNI under Section 222(c)(1) and (2). Inaddition, the Commission seekscomment whether it should eliminateSection 22.903(f) even if it were todetermine that continued application ofthis rule is not inconsistent with Section222, on the grounds that the current rulewould be superfluous in light of thecomprehensive statutory scheme put inplace by Section 222. In addition, theCommission seeks comment onwhether, in considering the jointmarketing authorization in Section601(d) of the 1996 Act together with theCPNI requirements contained in thenew Section 222, the Commissionshould require any particular BOCorganizational structure or proceduresto guard against the unauthorizeddisclosure of CPNI in the context ofjoint marketing of CMRS and otherBOC-provided services. TheCommission asks for comment on theneed for, and formulation of,appropriate organizational andprocedural guidelines specific to theBOC/CMRS joint marketing situationthat would be in accord with bothSection 601(d) and Section 222.

28. The Commission tentativelyconcludes that no specific Part 22 rulepertaining to network informationdisclosure by the BOCs is necessary orappropriate. The Commission seekscomment on this tentative conclusion.Commenters supporting a specific Part22 rule should provide informationabout particular technical or regulatoryissues to be addressed by such a rule.

29. Sunset/Elimination of Section22.903. Section 22.903 and itspredecessor, Section 22.901, wereestablished without sunset provisions,or the requirement that the Commissionperiodically review the continued needfor the restrictions contained therein. Incontrast, the general approach of the1996 Act to BOC-provided competitiveservices is initial entry pursuant toestablishment of separate subsidiarycorporations, through which thecompetitive service must be providedfor a period of years. In the case of BOCentry into interLATA services, acompetitive checklist must be met priorto BOC entry into that competitivemarket, and such entry must be througha structurally separate corporation. Thisstructural separation continues for threeyears after the BOC receives in-regioninterLATA authorization, unlessextended by order of this Commission.With respect to other competitive

services, the Act imposes sunsetprovisions of varying lengths.

30. The Commission seeks ultimatelyto eliminate any regulatory asymmetrybetween BOC provision of cellularservices, on the one hand, and BOCprovision of other CMRS as well as LECprovision of any CMRS, on the other.Yet, the competitive safeguardscontained in Section 22.903, asmodified through the proposals above,may continue to serve the publicinterest during the present crucial phaseof entry of new wireless competitorsinto the CMRS markets. Further, therealization of the fundamentalregulatory reforms contained in the1996 Act, including the opening of theLEC network for purposes of localexchange competition pursuant toSection 251, would reduce the need forthese safeguards in the not too distantfuture, and would provide a convenientmilepost to mark a transition period.The Commission therefore seekscomment on the addition of a sunsetprovision to Section 22.903, similar tothose contained in the 1996 Act for BOCprovision of other competitive services.Upon the sunset of the Section 22.903requirements for each BOC’s cellularoperations, the Commission proposesthat such service would be governed bythe uniform set of competitivesafeguards proposed below for all in-region LEC CMRS.

31. The Commission proposes tosunset the effectiveness of the Section22.903 requirements for a particularBOC in tandem with that BOC’s receiptof authorization pursuant to Section271(d) to provide interLATA serviceoriginating in any in-region State. Inaddition to the interconnectionrequirements, the competitive checklistrequires BOCs to provide, inter alia,further unbundling of local loops,switching and transport;nondiscriminatory access to 911 andE911 services; directory assistance, andoperator call completion services; andnondiscriminatory access to databasesand associated signaling necessary forcall routing and completing. Theeffective implementation of theserequirements should provide potentialCMRS competitors with sufficientprotection from interconnectiondiscrimination and monopolyleveraging such that the Commissionmay safely relax the degree of separationrequired for BOC cellular operations.The Commission believes thateffectively conditioning relief fromSection 22.903 upon each BOC’smeeting a ‘‘competitive checklist’’ maybe a viable approach to assure that, fromthe regulator’s and the competitor’sstandpoint, a sufficiently level playing


field is in place such that structuralsafeguards may safely be eliminated.Moreover, this approach to sunsettingSection 22.903 would provide the BOCswith an added incentive to meet therequirements of the competitivechecklist. The Commission seekscomment on this formulation of anapproach to sunsetting Section 22.903.

32. The Commission also seekscomment on alternative sunset dates.Parties advocating a different sunsetshould provide information supportingtheir recommendations. Partiesproposing a sunset date and/orcompetitive checklist different than thatcontained in Section 271 (c)(2)(B) and(d) should detail why their proposedfactors are relevant to the question ofBOC cellular safeguards. Parties mayalso suggest alterations to the list forpurposes of setting a sunset date for ourSection 22.903 requirements. TheCommission also notes that BOC entryin some areas could potentially occurwithout a single facilities-basedcompetitor actually obtaininginterconnection arrangements consistentwith Sections 251 and 252 as long as theBOC is generally offering access andinterconnection in a manner that meetsthe requirements of the competitivechecklist. The Commission seekscomment on the effect of this aspect ofSection 271 on the proposal to tie sunsetof Section 22.903 to BOC entry into in-region interLATA markets.

33. The Commission seeks commenton whether it should forgo the transitionperiod described above, where astreamlined Section 22.903 would be ineffect for BOC cellular operations untila designated sunset, in favor ofimmediate elimination of Section22.903 and its replacement by theuniform set of safeguards proposedbelow. The Commission is concernedabout whether transitional structuralseparation for BOC provision of cellularservice, which is more restrictive thanany rules applying to other cellularproviders or any provision of PCS, willpromote or inhibit the development ofcompetition. The Commission seekscomment on this aspect of our twoalternative safeguards proposals, andwhether immediate elimination ofSection 22.903 in favor of uniform LECCMRS safeguards will promotecompetition and the public interestmore effectively than the sunsetapproach outlined above.

34. The Commission seeks commenton the relative costs and benefits for thepublic and the BOCs if the independentoperation and joint researchrequirements were eliminated before theBOCs meet the requirements of thecompetitive checklist in Section 271.

Parties should focus specifically on howthe relative costs and benefits ofindependent versus integratedmanagement and personnel bear uponthe competitive equity issues discussedabove.

35. BOC Provision of IncidentalInterLATA CMRS. The Commissiondoes not believe that the authorizationcontained in Sections 271(g)(3) and272(a)(2)(B)(i) for immediate BOCprovision of in-region, incidentalinterLATA service, defined ascommercial mobile radio service, limitsthe Commission’s authority to retain thecurrent BOC cellular separate affiliaterules, or to prescribe alternative rules,should the Commission determine thatsuch rules constitute an appropriatecompetitive safeguard. The Commissionnotes that Section 271(f)(3) preservesthe Commission’s authority to prescribesafeguards consistent with the publicinterest, convenience, and necessity.The Commission seeks comment on thisanalysis.

B. Symmetry of Cellular Safeguards36. The Commission notes that one of

the principal criticisms of the cellularstructural separation requirement is thatit applies only to the BOCs, but not toother large LECs with similarcharacteristics, particularly GTE. Thelack of regulatory symmetry betweenBOC-provided cellular service and LEC-provided cellular service under Section22.903 presents a difficult problem inthis period of transition to morecompetitive landline and wirelessmarkets. Rather than distinguishbetween BOCs and other LECs, it wouldarguably be more consistent to applySection 22.903 to GTE, which is similarin size to the BOCs, or to all LECs abovea particular size, e.g., all Tier 1 LECs.The rationale for imposing structuralseparation on the BOCs’ cellular servicewould appear to apply to all Tier 1LECs. The Commission does notpropose to apply Section 22.903 to anyadditional LECs at this time. TheCommission seeks comment on thisapproach.

37. The Commission also proposes torequire all the Tier 1 LECs to implementthe same service safeguards for their in-region cellular service that is proposedfor in-region PCS and other CMRSbelow. The Commission seeks commenton the costs to the Tier 1 LECs ofestablishing nonstructurally separateaffiliates. The Commission does notbelieve it appropriate to impose either astreamlined Section 22.903 or theproposed nonstructural competitivesafeguards on any non-Tier 1independent and rural LECs because, onbalance, the cost and potential

disruption of requiring non-Tier 1 LECsto establish new separate affiliates forthe provision of cellular service wouldlikely be significant, both in terms of thedirect costs of incorporation and lostefficiencies of joint operations, facilities,and staff. These costs are obviouslydifferent than the going-forward costs ofretaining a structurally separatecorporate entity, discussed above. TheCommission seeks comment on thenature and extent of such costs, andasks that commenters be specific intheir quantification of both direct costsof separate incorporation, and of losteconomies of scope. The Commissionseeks comment on the tentativeconclusion that such costs likelyoutweigh the benefits of imposing alimited separate affiliate requirement.

C. Safeguards for Provision of CMRS byLECS

38. Cellular/PCS Regulatory Parity.The Commission seeks comment onwhether there are differences betweencellular and PCS that justify differentregulatory treatment, at least in the shortterm. The Commission notes that PCSwas intended to be competitive withboth incumbent cellular systems andlandline networks, and its identity as anew entrant places PCS providers in adifferent competitive situation fromincumbent cellular carriers. TheCommission intended that PCS wouldcompete with cellular service at theoutset, and eventually compete with,complement, or, where appropriate,replace landline local exchange service.In addition, PCS providers facecompetitive hurdles unlike thoseexisting when the cellular service wasestablished, such as auction payments,competition with incumbent cellularproviders themselves, and the need, insome cases, to relocate incumbentmicrowave users before PCS can becomefully operational. Permitting LECsgreater flexibility in the provision ofPCS than the BOCs enjoy with respectto cellular was part of the Commission’splan to get PCS into the market quickly,and to encourage the LECs to engineertheir network architectures in a ‘‘PCS-friendly’’ manner. This added degree offlexibility may act as a counterbalanceto the competitive hurdles unique toPCS. The Commission seeks commenton whether this analysis pertains todayin the same way as when PCS wasestablished as a new service.

39. Need for Uniform Safeguards. TheCommission believes that theimposition of competitive safeguards inaddition to accounting safeguards forLEC provision of in-region broadbandPCS will serve the public interest. TheCommission believes it is time to


replace the initial case-by-case approachwith a uniform set of requirements. Thisshould be more efficient for both thecarriers and the Commission, as it willstreamline the review process andprovide a consistent regulatoryframework for future competition. TheCommission seeks comment on thisanalysis. The potential costs ofimposing additional nonstructuralsafeguards on LEC provision of PCS atthis time are different from the costs foreither retaining structural separation forBOC cellular service, or for extendingsuch structural separation requirementsfor the first time to other LECs, such asGTE. In the case of BOC cellular service,the costs of establishing the subsidiaryhave already been incurred, whereas inthe case of the independent LECs, there-arrangement of existing corporatestructures would entail additional costsof a particular scope and nature. TheCommission also recognizes that, in thecase of an entirely new service such asin-region LEC broadband PCS, the start-up costs of structural separation wouldlikely be of a different nature and scopealtogether. Few LECs currently have in-region PCS licenses as a result of thecellular-PCS cross-ownership andspectrum cap requirements. It is also notclear how far along those other LECs arein building-out their PCS networks andin structuring their PCS operations froman organizational perspective. TheCommission seeks comment on thisanalysis and on the relative costs ofimposing the requirements proposedherein.

40. In-Region/Spectrum AllocationLimitations. With respect to theimposition of nonstructural safeguards,the Broadband PCS Order did notdistinguish between in-region versusout-of-region PCS, nor did it distinguishamong LEC PCS providers on the basisof the amount of PCS spectrum theywould be utilizing to provide service.The Commission does not believe thatthe competitive dangers of integratedLEC provision of landline and PCSoutside of the local exchange serviceareas in which they are the incumbentLEC raises the same concerns as in-region integrated services. In fact, theCommission has found that out-of-region competition from LECs offeringintegrated service packages willpromote local exchange competition.The Commission therefore proposes tolimit LEC PCS nonstructural safeguardsto in-region broadband PCS service. TheCommission seeks comment on thistentative conclusion. In addition, theCommission seeks comment on therelevance of the distinction raised in therecord between LEC holders of 30 MHz

versus 10 MHz in-region PCS licensesfor the proposed uniform nonstructuralsafeguards. Specifically, theCommission seeks comment on whetherit should exempt LEC licensees with nomore than 10 MHz of PCS spectrumfrom some or all of the competitivesafeguards discussed herein, with theexception of those safeguards whicharise from the provisions of the 1996Act.

41. Applicability to Tier 1 LECs. TheCommission believes that the goal ofregulatory symmetry should betempered by a realistic assessment ofthe costs and benefits of applying theproposed competitive safeguards tosmall telephone companies. TheCommission notes that small telephonecompanies, particularly those operatingin rural areas, are uniquely positionedto provide wireless services topopulations which might otherwise notreceive them. The Commission does notwant to unduly burden or discouragesmall telephone company entry intocellular and PCS markets. TheCommission does not believe that thesecompanies pose a significant threat ofanti-competitive conduct towardpotential wireless competitors, as theirability to leverage their bottleneck localexchange facilities is limited ascompared to that of the BOCs and thelarger independents. The Commissionalso seeks to ensure that the localexchange and exchange accesscustomers of the small telephonecompanies are not unduly burdenedwith the costs of these companies’ventures in competitive wirelessmarkets. The Commission thereforewould apply the uniform set ofcompetitive safeguards proposed hereonly to the Tier 1 LECs. TheCommission seeks comment on thisproposal and on what changes, if any,to our accounting rules are necessary orappropriate to ensure that LECs notsubject to the proposed competitivesafeguards will not cross-subsidize PCSactivities from the regulated telephoneratebase.

42. The Commission proposes that allTier 1 LECs providing broadband PCSwithin their in-region states implementa nonstructural safeguard plan, and filethe plan for approval with theCommission. The plan would includethe following elements: (1) a descriptionof a separate affiliate, as defined herein,for the provision of PCS; (2) adescription of compliance with Part 64and Part 32 accounting rules, withcopies of the relevant CAM changesattached; (3) a description of plannedcompliance with all outstandinginterconnection obligations; (4) adescription of compliance with all

outstanding network disclosure rules;and (5) a description of plannedcompliance with the CPNI requirementsin new Section 222. Additionally, theCommission proposes to require thatLEC in-region broadband PCS servicesshould be provided through a corporateaffiliate that is separate from the LEC.

43. The Commission proposes torequire the affiliate to meet thefollowing separation conditions: theaffiliate must (1) maintain separatebooks of account; (2) not jointly owntransmission or switching facilities withthe exchange telephone company; and(3) obtain any exchange telephonecompany-provided communicationsservices at tariffed rates and conditions.The Commission proposes to modify thesecond requirement to conform with theproposed modification of the facilities-sharing prohibition of Section 22.903(a).That is, the separate PCS affiliate wouldnot be permitted to have jointownership with the incumbent LEC oftransmission and switching facilitiesthat the latter uses in the provision oflandline services in the same in-regionmarket. The Commission seekscomment on these proposals.

44. The Commission tentativelyconcludes that these requirements willnot impose excessive burdens on LECs,while providing some protection againstcost-shifting and anti-competitiveconduct, in the case of Tier 1 LEC in-region PCS. The Commission tentativelyconcludes that the separate affiliaterequirement permits greater flexibilityfor the LEC than the Section 22.903structural separation requirement, whilepreserving the competitive safeguards ofseparate books of account, facilities, andtariffed services between the PCSaffiliate and its affiliated LEC. TheCommission seeks comment on theeffect that changes in interconnectiontariffing requirements under Sections251 and 252 have on the requirementthat the separate affiliate obtain anyexchange telephone company service attariffed rates and conditions. Inaddition, the Commission tentativelyconcludes that joint marketing of PCSand LEC landline services should bepermitted on a compensatory, arm’slength basis. Any such joint marketingmust be subject to the Part 64 costallocation and affiliate transaction ruleand the CPNI requirements. TheCommission seeks comment on thesetentative conclusions.

45. The Commission believes that thenonstructural safeguards plan shouldaddress the separation of costsengendered by joint marketingoperations. The Commission believesthat even with these filing requirementsonly an annual audit will help


determine compliance with theaccounting, affiliate transaction and costallocation rules. The Commission notesthat all CAM changes are also subject tocomment and review by theCommission and interested parties. TheCommission believes that a descriptionof the carrier’s procedures to ensurecompliance with the Part 32 and 64rules, together with copies of therelevant CAM changes, is sufficient forpurposes of initial review of the carriers’nonstructural safeguards plans. Thisinitial review will determine whetheradequate accounting procedures are inplace. The company’s compliance withthese procedures, however, can only bedetermined through the existing annualaudit process. The Commission seekscomment on this analysis.

46. The Commission seeks commenton whether the same type oforganizational and proceduralguidelines for the protection anddissemination of CPNI for which theCommission is seeking commentrelating to BOC cellular operations,should apply to the PCS operations ofany LEC (including non-Tier 1 LECs) orinterexchange carrier possessing CPNIgathered in the provision of landlineservices. The Commission also seekscomment as to whether there are anycircumstances under which theCommission should forbear fromrequiring a description of suchorganizational structures andprocedures, and rely instead onenforcement procedures for anyviolations of the CPNI statutorymandates. Such circumstances couldinclude a weighing of relative costs andbenefits, as well as the significance ofthe CPNI at issue. The Commissiontentatively concludes that the filing ofsuch descriptions by non-Tier 1 LECsand non-dominant interexchangecarriers holding PCS licenses is notneeded. The Commission seekscomment on this tentative conclusionand this issue generally. In addition, theCommission seeks comment onwhether, for purposes of applyingSection 222, cellular service and PCSshould be considered the same service(i.e., CMRS) such that CPNI gained inthe provision of one could be utilizedwithout restriction in the marketing ofthe other. The Commission also seekscomment whether other CMRS, such aspaging and Specialized Mobile Radio,should be considered the same serviceas cellular service and PCS for purposesof implementing Section 222 and whatdistinctions, if any, should be madeamong these different types of CMRS.Finally, the Commission seeks commentwhether a toll service provided by

means of CMRS (e.g., cellular longdistance) should be treated as a distincttelecommunications service forpurposes of implementing the newSection 222.

47. The Commission believes that inthe case of LEC PCS two factors rendera lesser degree of separationappropriate. First, and mostimportantly, the public interest benefitsthe Commission anticipates frompermitting LECs somewhat moreflexibility in establishing their PCSoperations counterbalance the loss ofthe added level of protection thatcomplete structural separation underSection 22.903 provides. TheCommission’s proposal that LECsestablish nonstructurally separateaffiliates for the provision of in-regionPCS is intended as an interconnectionsafeguard that will render visible theLEC’s interconnection arrangementswith its affiliate. The second factor isone of timing. The Commission believesthat the possible retention of structuralseparation for the in-region BOC cellularservice may act as additional protectionagainst anti-competitive actions withrespect to PCS competitors of the BOCcellular providers who are seekinginterconnection arrangements. TheCommission seeks comment on this,and asks that parties disagreeing withthis analysis provide specific examplesand argument in support of theirposition.

48. In light of the statutory provisionregarding public notice by incumbentLECs of network technical changes andthe implementation of that provision,the Commission seeks comment on theneed for specific PCS rules pertaining tonetwork information disclosure.Commenters supporting a specific Part24 rule should provide informationabout particular technical or regulatoryissues to be addressed by such a rule.

49. With respect to LEC in-regionbroadband PCS, the Commission hasproposed a set of flexible servicesafeguards that strike an appropriatebalance between the Commission’s pro-competitive goals and the goal ofexpediting in-region LEC-providedbroadband PCS service. Nonetheless,assuming that competition in the localexchange market increases to the pointwhere LECs do not have market powerin the provision of local exchangeservice, those safeguards that are notmandated by statute could be relaxed oreliminated. The Commission seekscomment on whether the rules proposedhere should be subject to a sunsetprovision. The Commission also seekscomment on the appropriate term ofsuch a provision, or the conditions that

would justify relaxing or eliminatingthese restrictions in the future.

50. The Commission notes thatCongress created the CMRS regulatoryclassification and mandated that similarcommercial mobile radio services beaccorded similar regulatory treatmentunder the rules. Therefore, theCommission tentatively concludes thatthe nonstructural safeguards discussedabove for LEC provision of PCS shouldapply to Tier 1 LEC provision of otherin-region CMRS. The Commission seekscomment on this proposal.

III. Conclusion

51. The Commission believes that theproposals in this NPRM are consistentwith the legislative mandate in the 1996Act and will promote competition inwireless communications markets byapplying the least intrusive means tocurb the residual market power of theLECs. The Commission intends to moverapidly to complete the comprehensivereview of the CMRS safeguards initiatedby this NPRM, and to put into placenew, streamlined rules whichaccomplish the goals of promotingwireless competition, limiting theexercise of market power, andestablishing regulatory symmetry.

IV. Procedural Matters and OrderingClauses

A. Regulatory Flexibility Act

Summary: As required by Section 603of the Regulatory Flexibility Act, theCommission has prepared an InitialRegulatory Flexibility Analysis (IRFA)of the expected impact on small entitiesof the policies and rules proposed inthis NPRM. Written public commentsare requested on the IRFA.

Reason for Action: The Commission isissuing this NPRM to review theregulatory regime for the provision ofcommercial mobile services, and toimplement certain provisions of theTelecommunications Act of 1996. Theproposals advanced in the NPRM aredesigned to explore whether the BOCseparate subsidiary requirement ofSection 22.903 continues to be relevantin today’s marketplace. The NPRM alsoproposes streamlined safeguards for Tier1 LECs seeking to provide PCS andother commercial mobile services.

Objectives: The objective of the NPRMis to provide an opportunity for publiccomment and to provide a record for aCommission decision regardingappropriate competitive safeguards forlandline telephone companies seekingto provide wireless services. The NPRMproposes two alternatives formodification of Section 22.903, theBOC/cellular separate subsidiary


requirement. The first alternative is toretain the rule for in-region provision ofcellular service, subject to a sunsetperiod. The second alternative is toeliminate the rule immediately for in-region cellular services. (TheCommission waives the requirement forout-of-region cellular service.) Further,the NPRM proposes a uniform set ofsafeguards for Tier 1 LECs seeking toprovide PCS and other CMRS services.

Reporting, Recordkeeping and OtherCompliance Requirements: The LEC/PCS safeguards proposed in the NPRMwould require that Tier 1 LECs submitto the Commission a nonstructuralsafeguards plan. Smaller LECs wouldnot be subject to this requirement.

Federal Rules Which Overlap,Duplicate or Conflict With These Rules:None.

Description and Number of SmallEntities Involved: Because Section22.903 only applies to the BOCs andbecause the proposed LEC/PCSsafeguards would apply only to the 23Tier 1 LECs (including the BOCs), nosmall entities would be affected by theproposals included in the NPRM.

Significant Alternatives Minimizingthe Impact on Small Entities ConsistentWith the Stated Objectives: The NPRMproposes to adopt LEC/PCS safeguardsonly for Tier 1 LECs and not for smallerLECs. A Tier 1 LEC is a local exchangecarrier with over $100 million inrevenues from regulatedtelecommunications operations that aresubject to the CAM filing requirementsof Section 64.903 of the Commission’sRules. The Commission notes that smalltelephone companies are uniquelypositioned to provide wireless servicesto populations that might otherwisereceive them. The NPRM points out thatthe Commission wishes to take noaction that would unduly burden ordiscourage small telephone companyentry into cellular and PCS markets, nordo we believe that these companies posea significant threat of anti-competitiveconduct toward potential wirelesscompetitors.

Legal Basis. The NPRM is adoptedpursuant to Sections 1, 2, 4, and 332 ofthe Communications Act of 1934, asamended, 47 U.S.C. §§ 151, 152, 154,and 332.

IRFA Comments. The Commissionrequests written public comment on theforegoing Initial Regulatory FlexibilityAnalysis. Comments must have aseparate and distinct headingdesignating them as responses of theIRFA and must be filed by the deadlinefor comments in response to the NPRM.

B. Paperwork Reduction Act

This NPRM contains a proposedinformation collection. As part of itscontinuing effort to reduce paperworkburdens, the Commission invites thegeneral public and the Office ofManagement and Budget (OMB) to takethis opportunity to comment on theinformation collections contained inthis NPRM as required by the PaperworkReduction Act of 1995, Public Law No.104–13. Public and agency commentsare due October 3, 1996; OMBnotification of action is due November4, 1996. Comments should address (a)whether the proposed collection ofinformation is necessary for the properperformance of the functions of theCommission, including whether theinformation shall have practical utility;(b) the accuracy of the Commission’sburden estimates; (c) ways to enhancethe quality, utility, and clarity of theinformation collected; and (d) ways tominimize the burden of the collection ofinformation on the respondents,including the use of automatedcollection techniques or other forms ofinformation technology.

Dates: Written comments by thepublic on the proposed informationcollections are due October 3, 1996.Written comments must be submitted bythe Office of Management and Budget(OMB) on the proposed informationcollections on or before November 4,1996.

Address: In addition to filingcomments with the Secretary, a copy ofany comments on the informationcollections contained herein should besubmitted to Dorothy Conway, FederalCommunications Commission, Room234, 1919 M Street, N.W., Washington,D.C. 20554, or via the Internet [email protected], and to Timothy Fain,OMB Desk Officer, 10236 NEOB, 725–17th Street, N.W., Washington, D.C.20503 or via the Internet [email protected].

Further Information: For additionalinformation concerning the informationcollections contained in this NPRMcontact Dorothy Conway at (202) 418–0217, or via the Internet [email protected].

Supplementary Information:Title: Amendment of the

Commission’s Rules to EstablishCompetitive Service Safeguards forLocal Exchange Carrier Provision ofCommercial Mobile Radio Services.

Type of Review: New Collection.Respondents: Business or other for

profit.Number of Respondents: We estimate

that approximately 25 Tier 1 LECs maysubmit a nonstructural safeguard plan.

Estimated Time Per Response: Theaverage burden on the LEC is 30 hoursto do the research and development and30 hours to write and review the plan.25 plans×60 hours=1,500 hours.

Estimated Cost to the Respondent: Wepresume that the LECs would useattorneys and engineers (average $200per hour) to prepare the information. 25plans×$200 per hour×60hours=$300,000.

Needs and Uses: This proceedinginitiates a comprehensive review of theexisting regulatory framework ofstructural and nonstructural safeguardsfor local exchange carrier (LEC)provision of commercial mobile radioservices (CMRS). All Tier 1 LECsproviding broadband PersonalCommunications Service (PCS) withintheir in-region states will be required toimplement a nonstructural safeguardplan and file the plan for approval withthe Commission. The plan shouldinclude the following elements: (1) adescription of a separate affiliate for theprovision of PCS; (2) a description ofcompliance with Part 64 and Part 32accounting rules, with copies of therelevant Cost Allocation Manual (CAM)changes attached; (3) a description ofplanned compliance with alloutstanding interconnection obligations;(4) a description of compliance with alloutstanding network disclosure rules;and (5) a description of plannedcompliance with the Customer ProprietyNetwork Information (CPNI)requirements in Section 702 of theTelecommunications Act of 1996(which creates a new Section 222 of theCommunications Act). The Commissionwill use the information to determine ifthe Tier 1 LECs are in compliance withour rules.

C. Ex Parte Presentations—Non-Restricted Proceeding

This is a non-restricted notice andcomment rulemaking proceeding. Exparte presentations are permitted,except during the Sunshine Agendaperiod, provided that they are disclosedas provided in the Commission’s rules.See generally 47 CFR 1.1202, 1.1203,1.1206(a).

D. Comment PeriodPursuant to applicable procedures set

forth in Sections 1.415 and 1.419 of theCommission’s rules, 47 CFR 1.415,1.419, interested parties may filecomments on or before October 3, 1996.Reply comments are to be filed on orbefore October 24, 1996. To file formallyin this proceeding, you must file anoriginal and four copies of allcomments, reply comments, andsupporting comments. If you want each


Commissioner to receive a personalcopy of your comments, you must filean original and nine copies. Commentsand reply comments should be sent toOffice of the Secretary, FederalCommunications Commission, 1919 MStreet, N.W., Room 222, Washington,D.C. 20554. Parties should also submittwo copies of comments and replycomments to Bobby Brown, CommercialWireless Division, WirelessTelecommunications Bureau, 2025 MStreet, N.W., Room 7130, Washington,D.C. 20554. Parties should also file onecopy of any documents filed in thisdocket with the Commission’s copycontractor, International TranscriptionServices, Inc., 2100 M Street, N.W.,Suite 140, Washington, D.C. 20037.

E. AuthorityThe above action is authorized under

the Communications Act of 1934, §§ 1,4, 222, 252(c)(5), 301, and 303, 47 U.S.C.§§ 151, 154, 222, 252(c)(5), 301, and303, as amended, and Section 601(d) ofthe Telecommunications Act of 1996,Section 601(d), Public Law 104–104,110 Stat. 56 (1996).

F. Ordering ClausesIt is ordered that pursuant to Sections

1, 4, 222, 252(c)(5), 301, and 303 of theCommunications Act of 1934, asamended, 47 U.S.C. §§ 151, 154, 222,252(c)(5), 301, and 303, and Section601(d) of the Telecommunications Actof 1996, Section 601(d), Public Law104–104, 110 Stat. 56 (1996), a notice ofproposed rulemaking is hereby adopted.

It is further ordered that comments inWT Docket No. 96–162 will be dueOctober 3, 1996 and reply commentswill be due October 24, 1996.

It is further ordered that, pursuant toSections 1.3 and 22.19 of theCommission’s Rules, 47 CFR 1.3, 22.19,all Bell Operating Companies are herebygranted a WAIVER of the provisions ofSection 22.903 of the Commission’sRules, 47 CFR 22.903 with respect to theprovision of cellular service outside oftheir in-region service areas as definedherein.

It is further ordered that, pursuant toSections 1.3 and 22.19 of theCommission’s Rules, 47 CFR §§ 1.3,22.19, a waiver of Section 22.903 withrespect to the provision of cellularservice outside of their in-region serviceareas as defined herein, is GRANTED toBell Atlantic NYNEX Mobile, Inc. andUS West, Inc.

It is further ordered that, the Secretaryshall send a copy of this Notice ofProposed Rulemaking, including theregulatory flexibility certification, to theChief Counsel for Advocacy of the SmallBusiness Administration, in accordance

with paragraph 603(a) of the RegulatoryFlexibility Act, 5 U.S.C. §§ 601 et seq.

List of Subjects in 47 CFR Part 22Communications common carriers,

Reporting and recordkeepingrequirements.Federal Communications Commission.William F. Caton,Acting Secretary.[FR Doc. 96–22348 Filed 8–30–96; 8:45 am]BILLING CODE 6712–01–P

47 CFR Part 73

[MM Docket No. 96–153; RM–8804]

Radio Broadcasting Services;Batesville, AR

AGENCY: Federal CommunicationsCommission.ACTION: Proposed rule.

SUMMARY: This document requestscomments on a petition for rule makingfiled by Arkansas Radio Broadcasters,seeking the allotment of Channel 258Ato Batesville, Arkansas, as thatcommunity’s second local FM service.Coordinates used for this proposal are35–50–28 and 91–34–45.DATES: Comments must be filed on orbefore September 16, 1996, and replycomments on or before October 1, 1996.ADDRESSES: Secretary, FederalCommunications Commission,Washington, DC 20554. In addition tofiling comments with the FCC,interested parties should serve thepetitioner, as follows: Arkansas RadioBroadcasters, Attn: Carol B. Ingram,President, P.O. Box 73, Batesville, MS38606.FOR FURTHER INFORMATION CONTACT:Nancy Joyner, Mass Media Bureau, (202)418–2180.SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Notice ofProposed Rule Making, MM Docket No.96–153, adopted May 24, 1996, andreleased July 26, 1996. The full text ofthis Commission decision is availablefor inspection and copying duringnormal business hours in the FCC’sReference Center (Room 239), 1919 MStreet, NW., Washington, DC. Thecomplete text of this decision may alsobe purchased from the Commission’scopy contractors, InternationalTranscription Service, Inc., (202) 857–3800, 2100 M Street, NW., Suite 140,Washington, DC 20037.

Provisions of the RegulatoryFlexibility Act of l980 do not apply tothis proceeding.

Members of the public should notethat from the time a Notice of Proposed

Rule 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 contacts.

For information regarding properfiling procedures for comments, See 47CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73Radio broadcasting.

Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 96–22347 Filed 8–30–96; 8:45 am]BILLING CODE 6712–01–F


Fish and Wildlife Service

50 CFR Part 17

Endangered and Threatened Wildlifeand Plants; Notice of Reopening ofComment Period on ProposedThreatened and Endangered Status forSeven Desert Milk-Vetch Taxa FromCalifornia and Nevada

AGENCY: Fish and Wildlife Service,Interior.ACTION: Proposed rule; Notice ofreopening of comment period.

SUMMARY: The Fish and Wildlife Service(Service), pursuant to the EndangeredSpecies Act of 1973, as amended (Act),provides notice of reopening of thecomment period for five plants thathave been proposed as endangered:Lane Mountain milk-vetch (Astragalusjaegerianus), Coachella Valley milk-vetch (Astragalus lentiginosus var.coachellae), Fish Slough milk-vetch(Astragalus lentiginosus var.piscinensis), Peirson’s milk-vetch(Astragalus magdalenae var. peirsonii),and triple-ribbed milk-vetch (Astragaluslentiginosus var. micans); and twoplants that have been proposed asthreatened: shining milk-vetch(Astragalus tricarinatus) and Sodavillemilk-vetch (Astragalus lentiginosus var.sesquimetralis). The comment periodhas been reopened to acquire additionalinformation from interested parties, andto reconsider the proposed listingactions.DATES: The public comment periodcloses October 18, 1996. Any commentsreceived by the closing date will beconsidered in the final decision on thisproposal.


ADDRESSES: Written comments andmaterials concerning this proposalshould be sent directly to the FieldSupervisor, Ventura Field Office, 2493Portola Road, Suite B, Ventura,California 93003. Comments andmaterials received will be available forpublic inspection, by appointment,during normal business hours at theabove address.FOR FURTHER INFORMATION CONTACT:Diane Steeck (see ADDRESSES section) at805/644–1766.


BackgroundThe seven taxa included within the

proposed rule occur in Inyo, Mono,Riverside, San Bernardino, and ImperialCounties within California; Mineral andNye Counties in Nevada; andnortheastern Baja California, Mexico.Like many taxa in the genus Astragalus,these seven taxa are endemic to habitatswith specific substrate or hydrologicconditions and are, therefore, naturallylimited in distribution by theavailability of habitat. Five of the seventaxa occur primarily on public lands.

The seven plant taxa may bethreatened by one or more of thefollowing: off-road vehicle (ORV) use,grazing and trampling by livestock andferal burros, competition from alienplants, urban development, alteration ofsoil hydrology, and construction relatedto fisheries development. Several of theplants may also be threatened withrandom naturally occurring events byvirtue of their small numbers andpopulation sizes.

On May 8, 1992, the Servicepublished a rule proposing endangeredstatus for Astragalus jaegerianus, A.lentiginosus var. coachellae, A.lentiginosus var. piscinensis, A.magdalenae var. peirsonii, and A.lentiginosus var. micans; and threatenedstatus for A. tricarinatus and A.lentiginosus var. sesquimetralis (57 FR19844). The original comment periodclosed on July 7, 1992.

The Service was unable to make afinal listing determination on thesespecies because of a limited budget,other endangered species assignmentsdriven by court orders, and higherlisting priorities. In addition, amoratorium on listing actions (PublicLaw 104–6), which took affect on April10, 1995, stipulated that no funds couldbe used to make final listing or criticalhabitat determinations. Now thatlimited funding has been restored and

the President has waived themoratorium on the use of appropriatedfunds for final listing and critical habitatdeterminations, the Service isproceeding with a final determinationfor these seven plants. This finaldecision, however, must address andconsider any changes in theadministration of desert lands since1992, like the lands transferred from theBureau of Land Management to theNational Park Service, and anyconservation efforts, like the WestMohave Conservation Plan, that mayhave influenced management of desertareas.

Due to the length of time that haselapsed since the close of the initialcomment period, changing proceduraland biological circumstances and theneed to review the best scientific andcommercial information availableduring the decision-making process, thecomment period is being reopened. TheService particularly seeks informationthat has become available in the lastfour years, concerning:

(1) Biological, commercial, or otherrelevant data on any threat (or lackthereof) to these species;

(2) Additional information on thesize, number, or distribution ofpopulations; and

(3) Whether one or more of theseplant species are subject to conservationagreements or other protectioninstruments, and their possible impactsto such species.

Written comments may now besubmitted until October 18, 1996 to theService office in the ADDRESSES section.

AuthorThe primary author of this notice is

Diane Steeck (see ADDRESSES section).Authority: The authority for this action is

the Endangered Species Act of 1973 (16U.S.C. 1531 et seq.).

Dated: August 26, 1996.Thomas Dwyer,Acting Regional Director, Region 1.[FR Doc. 96–22332 Filed 8–30–96; 8:45 am]BILLING CODE 4310–55–U

50 CFR Part 21

Availability of a Draft EnvironmentalAssessment on Permits for Control ofInjurious Canada Geese and Requestfor Comments on PotentialRegulations

AGENCY: Fish and Wildlife Service,Interior.

ACTION: Notice of availability.

SUMMARY: This notice advises the publicthat a Draft Environmental Assessmenton Permits for Control of InjuriousCanada Geese is available for publicreview and announces the U.S. Fish andWildlife Service’s (hereinafter Service)intent to consider regulatory changes tothe process for issuing these permits.Comments and suggestions arerequested.DATES: Written comments are requestedby October 18, 1996.ADDRESSES: Copies of the DraftEnvironmental Assessment can beobtained by writing to the Chief, Officeof Migratory Bird Management, U.S.Fish and Wildlife Service, room 634—Arlington Square, Washington, DC20240. Written comments can be sent tothe same address.FOR FURTHER INFORMATION CONTACT: Mr.Paul R. Schmidt, Chief, Office ofMigratory Bird Management, U.S. Fishand Wildlife Service, (703) 358-1714.SUPPLEMENTARY INFORMATION: The DraftEnvironmental Assessment reviews theexisting regulations governing issuanceof permits to control injurious Canadageese. The Assessment was prompted byrequests from States and the U. S.Department of Agriculture to improvethe permit issuance process. TheAssessment deals only with howpermits are issued and does not addressspecific control measures used tocontrol injury problems in the field. TheService’s proposed action is to issue ablanket permit to State ConservationAgencies and/or the U. S. Department ofAgriculture on a State-specific basis.This permit will be limited to the periodMarch 11 through August 31 to avoidconflicts with existing hunting seasons.This approach is intended to provide aquicker response time to problemsituations, allow for greater localoversight in control actions, and reducegovernment administrative costs andoverhead related to issuance of thesepermits. Three alternatives, includingthe proposed action, are considered.

Dated: August 23, 1996George T. Frampton, Jr.Assistant Secretary for Fish and Wildlife andParks[FR Doc. 96–22194 Filed 8–30–96; 8:45 am]BILLING CODE 4310–55–F

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

46432

Vol. 61, No. 171


DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

Notice of Request for Extension ofCurrently Approved InformationCollection

AGENCY: Foreign Agricultural Service.ACTION: Notice and request forcomments.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995, thisnotice announces the ForeignAgricultural Service’s (FAS) intention torequest an extension for a currentlyapproved information collection insupport of the Pub. L. 480, Title Iprogram.DATES: Comments on this notice must bereceived by November 4, 1996 to beassured of consideration.FOR FURTHER INFORMATION CONTACT:Connie B. Delaplane, Director, P.L. 480Operations Division, Export Credits,Foreign Agricultural Service, Room4549 South Building, Stop 1033, U.S.Department of Agriculture, 1400Independence Ave., SW, Washington,DC 20250–1033. Telephone: (202) 720–3664.


Title: Declaration of Sale, Form FAS–359.

OMB Number: 0551–0009.Expiration Date of Approval:

December 31, 1996.Type of Request: Extension of a

currently approved informationcollection.

Abstract: Title I of the AgriculturalTrade Development and Assistance Actof 1954, as amended, (Pub. L. 480)authorizes the Commodity CreditCorporation (CCC) to finance the saleand exportation of agriculturalcommodities on concessional creditterms. 7 U.S.C. 1701 et seq. Commoditysuppliers must report details of sales forprice approval. Form FAS–359,

‘‘Declaration of Sale,’’ is the writtenrecord, signed by the commoditysupplier, of the terms of sale as reportedby telephone. When signed for theGeneral Sales Manager, it providesevidence of the USDA price approvalrequired for CCC financing.

Estimate of Burden: The publicreporting burden is 15 minutes perresponse for commodity suppliersreporting details of sales.

Respondents: Business or other for-profit.

Estimated Number of Respondents:15.

Estimated Total Annual Burden onRespondents: 36.25 hours.

Copies of this information collectioncan be obtained from Valerie Countiss,the Agency Information CollectionCoordinator, at (202) 720–6713.

Request for Comments

Comments are invited on (a) whetherthe proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information will havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of informationincluding the validity of themethodology and assumptions used; (c)ways to enhance the quality, utility andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon those who are to respond, includingthrough the use of appropriateautomated, electronic, mechanical, orother technological collectiontechniques or other forms of informationtechnology. Comments may be sent toConnie B. Delaplane, Director, P.L. 480Operations Division, Export Credits,Foreign Agricultural Service, Room4549 South Building, Stop 1033 U.S.Department of Agriculture, 1400Independence Ave., SW, Washington,DC 20250–1033. Telephone (202) 720–3664.

All responses to this notice will besummarized and included in the requestfor OMB approval. All comments willbecome a matter of public record.

Signed at Washington, DC on August 26,1996.Christopher E. Goldthwait,General Sales Manager, Foreign AgriculturalService, and Vice President, CommodityCredit Corporation.[FR Doc. 96–22367 Filed 8–30–96; 8:45 am]BILLING CODE 3410–10–M

Forest Service

Southwest Oregon ProvincialInteragency Executive Committee(PIEC), Advisory Committee

AGENCY: Forest Service, USDA.ACTION: Notice of meeting.

SUMMARY: The Southwest Oregon PIECAdvisory Committee will meet onSeptember 17, 1996 at J. Herbert StoneNursery, Central Point, Oregon. Themeeting will begin at 9:00 a.m. andcontinue until 4:15 p.m. Agenda itemsto be covered include: (1) Local areaissues presentation; (2) Subcommitteeassignments; (3) Riparian reserves andgrazing; (4) Implementation monitoringresults approval; (5) Presentation on theApplegate AMA Draft Guide; and (6)Public comments.

All Province Advisory committeemeetings are open to the public.Interested citizens are encouraged toattend.FOR FURTHER INFORMATION CONTACT:Direct questions regarding this meetingto Kurt Austermann, Province AdvisoryCommittee staff, USDI, Medford District,Bureau of Land Management, 3040Biddle Rd., Medford, Oregon 97504,phone 541–770–2200.

Dated: August 26, 1996.James T. Gladen,Forest Supervisor, Designated FederalOfficial.[FR Doc. 96–22394 Filed 8–30–96; 8:45 am]BILLING CODE 3410–11–M

Grain Inspection, Packers andStockyards Administration

Opportunity for Designation in theSpringfield (IL) Area and the State ofAlabama

AGENCY: Grain Inspection, Packers andStockyards Administration (GIPSA).ACTION: Notice.

SUMMARY: The United States GrainStandards Act, as amended (Act),

46433Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Notices

provides that official agencydesignations will end not later thantriennially and may be renewed. Thedesignation of Springfield GrainInspection, Inc. (Springfield), will endMarch 31, 1997, according to the Actand the designation of AlabamaDepartment of Agriculture andIndustries (Alabama) will end February28, 1997, according to the Act, andGIPSA is asking persons interested inproviding official services in theSpringfield and Alabama areas tosubmit an application for designation.DATES: Applications must bepostmarked or sent by telecopier (FAX)on or before October 3, 1996.ADDRESSES: Applications must besubmitted to USDA, GIPSA, Janet M.Hart, Chief, Review Branch, ComplianceDivision, STOP 3604, 1400Independence Ave. S.W., Washington,DC 20250–3604. Telecopier (FAX) usersmay send applications to the automatictelecopier machine at 202–690–2755,attention: Janet M. Hart. If anapplication is submitted by telecopier,GIPSA reserves the right to request anoriginal application. All applicationswill be made available for publicinspection at this address located at1400 Independence Avenue, S.W.,during regular business hours.FOR FURTHER INFORMATION CONTACT:Janet M. Hart, telephone 202–720–8525.SUPPLEMENTARY INFORMATION:

This action has been reviewed anddetermined not to be a rule or regulationas defined in Executive Order 12866and Departmental Regulation 1512–1;therefore, the Executive Order andDepartmental Regulation do not applyto this action.

Section 7(f)(1) of the Act authorizesGIPSA’s Administrator to designate aqualified applicant to provide officialservices in a specified area afterdetermining that the applicant is betterable than any other applicant to providesuch official services. GIPSA designatedSpringfield, main office located inSpringfield, Illinois, to provide officialinspection services under the Act onApril 1, 1994, and Alabama, main officelocated in Mobile, Alabama, to provideofficial inspection services under theAct on March 1, 1994.

Section 7(g)(1) of the Act providesthat designations of official agenciesshall end not later than triennially andmay be renewed according to thecriteria and procedures prescribed inSection 7(f) of the Act. The designationof Springfield ends on March 31, 1997,and the designation of Alabama ends onFebruary 28, 1997.

Pursuant to Section 7(f)(2) of the Act,the following geographic area, in the

State of Illinois, is assigned toSpringfield.

Bounded on the North by the northernSchuyler, Cass, and Menard Countylines; the western Logan County linenorth to State Route 10; State Route 10east to the west side of Beason;

Bounded on the East by a straight linefrom the west side of Beason southwestto Elkhart on Interstate 55; a straightline from Elkhart southeast toStonington on State Route 48; a straightline from Stonington southwest to Irvingon State Route 16;

Bounded on the South by State Route16 west to the eastern Macoupin Countyline; the eastern, southern, and westernMacoupin County lines; the southernand western Greene County lines; thesouthern Pike County line; and

Bounded on the West by the westernPike County line west to U.S. route 54;U.S. Route 54 northeast to State Route107; State Route 107 northeast to StateRoute 104; State Route 104 east to thewestern Morgan County line. Thewestern Morgan, Cass, and SchuylerCounty lines.

The following grain elevator, locatedoutside of the above contiguousgeographic area, is part of thisgeographic area assignment: EastLincoln Farmers Grain Co., Lincoln,Logan County (located inside CentralIllinois Grain Inspection, Inc.’s, area).

Pursuant to Section 7(f)(2) of the Act,the following geographic area, the entireState of Alabama, except those exportport locations within the State, isassigned to Alabama.

Interested persons, includingSpringfield, and Alabama, are herebygiven the opportunity to apply fordesignation to provide official servicesin the geographic areas specified aboveunder the provisions of Section 7(f) ofthe Act and section 800.196(d) of theregulations issued thereunder.Designation in the Springfieldgeographic area is for the periodbeginning April 1, 1997, and endingFebruary 29, 2000. Designation in theAlabama geographic area is for theperiod beginning March 1, 1997, andending February 29, 2000. Personswishing to apply for designation shouldcontact the Compliance Division at theaddress listed above for forms andinformation.

Applications and other availableinformation will be considered indetermining which applicant will bedesignated.

AUTHORITY: Pub. L. 94–582, 90 Stat. 2867,as amended (7 U.S.C. 71 et seq.)

Dated: August 22, 1996.Neil E. PorterDirector, Compliance Division[FR Doc. 96–22109 Filed 8–30–96; 8:45 am]BILLING CODE 3410–EN–F

Designation for the Mid-Iowa (IA) Areaand the State of Oregon

AGENCY: Grain Inspection, Packers andStockyards Administration (GIPSA).ACTION: Notice.

SUMMARY: GIPSA announces thedesignation of Mid-Iowa GrainInspection, Inc. (Mid-Iowa), and OregonDepartment of Agriculture (Oregon) toprovide official services under theUnited States Grain Standards Act, asamended (Act).EFFECTIVE DATES: October 1, 1996.ADDRESSES: USDA, GIPSA, Janet M.Hart, Chief, Review Branch, ComplianceDivision, STOP 3604, 1400Independence Ave. S.W., Washington,DC 20250–3604.FOR FURTHER INFORMATION CONTACT:Janet M. Hart, telephone 202–720–8525.SUPPLEMENTARY INFORMATION:

This action has been reviewed anddetermined not to be a rule or regulationas defined in Executive Order 12866and Departmental Regulation 1512–1;therefore, the Executive Order andDepartmental Regulation do not applyto this action.

In the April 1, 1996, Federal Register(61 FR 14289), GIPSA asked personsinterested in providing official servicesin the geographic areas assigned to Mid-Iowa and Oregon to submit anapplication for designation.Applications were due by May 1, 1996.Mid-Iowa and Oregon, the onlyapplicants, each applied for designationto provide official services in the entireareas currently assigned to them.

Since Mid-Iowa and Oregon were theonly applicants, GIPSA did not ask forcomments on the applicants.

GIPSA evaluated all availableinformation regarding the designationcriteria in Section 7(f)(l)(A) of the Act;and according to Section 7(f)(l)(B),determined that Mid-Iowa and Oregonare able to provide official services inthe geographic areas for which theyapplied. Effective October 1, 1996, andending September 30, 1999, Mid-Iowaand Oregon are designated to provideofficial services in the geographic areasspecified in the April 1, 1996, FederalRegister.

Interested persons may obtain officialservices by contacting Mid-Iowa at 319–363–0239 and Oregon at 503–276–0939.

Authority: Pub. L. 94–582, 90 Stat. 2867,as amended (7 U.S.C. 71 et seq.)

46434 Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Notices

Dated: August 22, 1996Neil E. PorterDirector, Compliance Division[FR Doc. 96–22373 Filed 8–30–96; 8:45 am]BILLING CODE 3410–EN–F

Rural Utilities Service

Refinancing Water and WastewaterLoans

AGENCY: Rural Utilities Service, USDA.ACTION: Notice.

SUMMARY: This Notice describes theRural Utilities Service’s Water andWastewater (WW) loan programrefinancing policies, informscommercial lenders of the availability ofa list of eligible WW borrowers thathave the potential to refinanceoutstanding debt, and invitescooperatives and private credit sourcesto participate in refinancing loans fromthe Agency’s loan portfolio.FOR FURTHER INFORMATION CONTACT:Deborah Pope, Loan Specialist, RuralUtilities Service, USDA, Room 6336,South Agriculture Building, 1400Independence Avenue S.W.,Washington, D.C. 20250, Telephone:(202) 720–1938.SUPPLEMENTARY INFORMATION: TheAgency provides credit to publicentities such as municipalities,counties, special-purpose districts,Indian tribes, tribal organizations andnonprofit corporations. The eligible WWloan purposes are to construct, enlarge,extend, or otherwise improve water andwastewater systems. The Agency’scredit programs are administered in amanner which ensures that they do notcompete with credit available fromother reliable sources. Loan agreementsrequire financially capable borrowers torefinance debts owed to the Agencywhen other credit is available atreasonable rates and terms from acooperative or private credit source.

The Agency would like to furtherdevelop its public/private partnershipswhile enhancing its refinancing efforts.As part of these efforts, each RuralDevelopment State office, whichadministers the WW program in thefield, will maintain a current listing ofborrowers that have the potential torefinance. The Agency requests that anyinterested lenders contact the Stateoffice in each State for the current listof borrowers with potential to graduate.The Agency will develop a unifieddatabase of lenders interested in thisrefinancing initiative as part of theirongoing effort to establish a strongeralliance with private sector lenders.Each interested lender should submit its

name and address to the State officelocated in its residing State. Each Stateoffice will be required to provide a copyof its current list of lenders annually tothe National office for compilation of anationwide database. This list should besubmitted to the National office byOctober 1, of each year.

Dated: August 21, 1996.Wally Beyer,Adminstrator, Rural Utilities Service.[FR Doc. 96–22368 Filed 8–30–96; 8:45 am]BILLING CODE 3410–15–M

ARCHITECTURAL ANDTRANSPORTATION BARRIERSCOMPLIANCE BOARD

Telecommunications Access AdvisoryCommittee; Meeting

AGENCY: Architectural andTransportation Barriers ComplianceBoard.ACTION: Notice of meeting.

SUMMARY: The Architectural andTransportation Barriers ComplianceBoard (Access Board) gives notice of thedates and location of the meetings of theTelecommunications Access AdvisoryCommittee.DATES: The Telecommunications AccessAdvisory Committee will meet onSeptember 25, 26, and 27, 1996. Themeetings will begin at 9:30 a.m. and endno later than 5:00 p.m.ADDRESSES: The meetings will be heldin the Steptoe & Johnson building, 1330Connecticut Avenue, NW., Washington,DC on the concourse level. Themeetings are open to the public. Thefacility is accessible to individuals withdisabilities. Sign language interpreters,assistive listening systems and real-timetranscription will be available.FOR FURTHER INFORMATION CONTACT: Forfurther information regarding themeetings, please contact DennisCannon, Office of Technical andInformation Services, Architectural andTransportation Barriers ComplianceBoard, 1331 F Street, NW., Suite 1000,Washington, D.C. 20004–1111.Telephone number (202) 272–5434extension 35 (voice); (202) 272–5449(TTY). Electronic mail address:[email protected]. Thisdocument is available in alternateformats (cassette tape, braille, largeprint, or computer disk) upon request.SUPPLEMENTARY INFORMATION: On May24, 1996, the Access Board published anotice appointing members to itsTelecommunications Access AdvisoryCommittee (Committee). 61 FR 26155(May 24, 1996). The Committee will

make recommendations to the AccessBoard on accessibility guidelines fortelecommunications equipment andcustomer premises equipment. Theserecommendations will be used by theAccess Board to develop accessibilityguidelines under section 255(e) of theTelecommunications Act of 1996. TheCommittee is composed ofrepresentatives of manufacturers oftelecommunications equipment andcustomer premises equipment;organizations representing the accessneeds of individuals with disabilities;telecommunications providers andcarriers; and other persons affected bythe guidelines. At its first meeting onJune 12–14, 1996, the Committee tookthe following actions:

• The statutory definitions oftelecommunications,telecommunications equipment andcustomer premises equipment are to beconstrued broadly.

• Providing access is not a ‘‘change inform’’ of information within themeaning of the statute’s definition oftelecommunications and, therefore, notexcluded.

• A listserv was created through theTrace Center: [email protected]. Tosubscribe, send e-mail [email protected] with themessage subscribe taac-l <firstnamelastname>.

At its second meeting on August 14–16, 1996, the Committee agreed on thefollowing points:

• In customer premises equipment(CPE), it is not always possible toseparate the effects of software fromhardware and one manufacturer maychoose to perform the same functionwith one or the other. Therefore, theguidelines must cover both.

• It is not always possible todetermine whether a particular functionresides with the CPE, thetelecommunications carrier or thesource material. Therefore, theguidelines will be developed with theassumption that the function resides inthe CPE and urge the FCC to apply thesame guidelines to entities and servicesunder its jurisdiction.

• The Committee also agreed that theexisting definitions of CPE andtelecommunications equipment aresufficient.

The Committee also took thefollowing administrative and proceduralactions:

• While the definition of ‘‘readilyachievable’’ in the TelecommunicationsAct is the same as in the Americanswith Disabilities Act (ADA), the term isapplied differently. In the ADA, theterm applies to barrier removal inexisting facilities whereas the


Telecommunications Act applies theterm to the manufacture of newequipment. An ad hoc task group wasformed to develop criteria to assess‘‘readily achievable’’ in this newcontext.

• Subcommittees on ComplianceAssessment and Guidelines contentwere created. Discussions will beconducted primarily by e-mail. Toparticipate in a subcommittee, send e-mail to [email protected] [email protected].

The Committee will meet again on:November 6–8, December 16–18, andJanuary 14–15. Subsequent meetingswill be held at locations to beannounced.

The Committee will meet on the datesand at the location announced in thisnotice. There will be a public commentperiod each day for persons interestedin presenting their views to theCommittee.Lawrence W. Roffee,Executive Director.[FR Doc. 96–22336 Filed 8–30–96; 8:45 am]BILLING CODE 8150–01–M

NATIONAL FOUNDATION ON THEARTS AND THE HUMANITIES

Meeting of Humanities Panel

AGENCY: National Endowment for theHumanities.ACTION: Notice of meeting.

SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, as amended),notice is hereby given that the followingmeeting of the Humanities Panel will beheld at the Old Post Office, 1100Pennsylvania Avenue, N.W.,Washington, D.C. 20506.FOR FURTHER INFORMATION CONTACT:Sharon I. Block, Advisory CommitteeManagement Officer, NationalEndowment for the Humanities,Washington, D.C. 20506; telephone(202) 606–8322. Hearing-impairedindividuals are advised that informationon this matter may be obtained bycontacting the Endowment’s TDDterminal on (202) 606–8282.SUPPLEMENTARY INFORMATION: Theproposed meeting is for the purpose ofpanel review, discussion, evaluationand recommendation on applicationsfor financial assistance under theNational Foundation on the Arts and theHumanities Act of 1965, as amended,including discussion of informationgiven in confidence to the agency by thegrant applicants. Because the proposedmeeting will consider information that

is likely to disclose: (1) Trade secretsand commercial or financial informationobtained from a person and privilegedor confidential; or (2) information of apersonal nature the disclosure of whichwould constitute a clearly unwarrantedinvasion of personal privacy, pursuantto authority granted me by theChairman’s Delegation of Authority toClose Advisory Committee meetings,dated July 19, 1993, I have determinedthat this meeting will be closed to thepublic pursuant to subsections (c) (4),and (6) of section 552b of Title 5, UnitedStates Code.

Date: September 26–27, 1996.Time: 8:30 a.m. to 5:00 p.m.Room: 317.Program: This meeting will review

applications for Education Development andDemonstration submitted to the Division ofResearch and Education Programs, forprojects at the September 15, 1996 deadline.Michael S. Shapiro,Acting, Advisory Committee ManagementOfficer.[FR Doc. 96–22374 Filed 8–30–96; 8:45 am]BILLING CODE 7536–01–M

Department of Commerce

Submission for OMB Review;Comment Request

The Department of Commerce (DOC)has submitted to the Office ofManagement and Budget (OMB) forclearance the following proposal forcollection of information under theprovisions of the Paperwork ReductionAct (44 U.S.C. Chapter 35).

Agency: Patent and Trademark Office(PTO).

Title: Trademark RegistrationProcessing.

Agency Approval Number: 0651–0009.

Form Numbers: PTO Forms 1478,1478a, 4.8, 4.9, 4.17a, 1553, and 1581.

Type of Request: Reinstatement, withchange, of a previously approvedcollection for which approval hasexpired.

Burden: 193,988 hours.Number of Respondents: 239,571.Avg. Hours Per Response: 1 hour for

PTO Forms 1478, 1478s, 4.8 and 4.9,and 4.17a; .25 hour for PTO Form 1553.

Needs and Uses: This collection ofinformation is required by theTrademark Act, 15 U.S.C. 1501, et. eq,which provides for the Federalregistration of trademarks and servicemarks. Any individual or businessowning a valid mark, that is used inconnection with goods or servicestraveling in commerce regulable by theU.S. Congress, may apply to federally

register its mark. A registration is validfor ten years and renewable, byaffidavit, for like periods.

The Patent and Trademark Officeadministers the Trademark Actaccording to 37 CFR Part 2, containingthe rules that implement the TrademarkAct. Registration is not required toobtain rights in a mark; however,registration provides certain benefits,such as access to the Federal courtsystem and nationwide constructivenotice of the Registrant’s rights. Noindividual or business is required toregister a trademark, or to use the formsin this collection. The forms areprovided as a convenience to the public,and serve as guidance on whatinformation is legally mandated, shouldan individual or business desireregistration.

The PTO uses this information todetermine the eligibility of each markfor registration and to maintain a publicsearch library where copies of theregistration certificates for marks can besearched. The PTO also provides theinformation to the Patent and TradeDepository Libraries (PTDLs) that alsomaintain the information for use by thepublic.

The information is a matter of publicrecord, and used by the public for avariety of private business purposesrelated to establishing and reinforcingtrademark rights. This information isimportant to the public, since bothcommon law trademark owners andFederal trademark registrants mustactively protect their own rights.

Affected Public: Trademark Ownersand Trademark Practitioners.

Frequency: When filing a markapplication.

Respondent’s Obligation: Required toobtain or retain a benefit.

OMB Desk Officer: Maya A. Bernstein,(202) 395–4816.

Copies of the above informationcollection proposal can be obtained bya calling or writing Linda Engelmeier,Acting DOC Forms Clearance Officer,(202) 482–3272, Department ofCommerce, Room 5312, 14th andConstitution Avenue, NW., Washington,DC 20230.

Written comments andrecommendations for the proposedinformation collection should be sentwithin 30 days of publication of thisnotice to Maya Bernstein, OMB DeskOfficer, Room 10236, New ExecutiveOffice Building, Washington, DC 20503.


Dated: August 27, 1996.Linda Engelmeier,Acting Departmental Forms ClearanceOfficer, Office of Management andOrganization.[FR Doc. 96–22282 Filed 8–30–96; 8:45 am]BILLING CODE 3510–16–M

DEPARTMENT OF COMMERCE



Agency: Bureau of the Census.Title: 1997 Vehicle Inventory and Use

Survey.Form Number(s): TC–9501, TC–9502,

TC–9503, TC–9504.Agency Approval Number: None.Type of Request: New collection.Burden: 103,257 hours in FY 1998.Number of Respondents: 140,000.Avg Hours Per Response: 45 minutes.Needs and Uses: The 1997 Vehicle

Inventory and Use Survey (VIUS), acomponent of the economic census, willsurvey a sample of private andcommercial trucks, automobiles, andbuses registered in the 50 States and theDistrict of Columbia. Governmentvehicles will not be sampled. The VIUSwill produce basic statistics on thephysical and operational characteristicsof the nation’s trucks, automobiles, andbuses. It also will yield a variety ofsubject statistics, including vehicles byannual miles, major use, fuel type, milesper gallon, and products carried. TheCensus Bureau will publish truckestimates at the state and national level,and automobile and bus estimates at thenational level. Federal, state, and localtransportation agencies will use VIUSdata for analysis of safety issues,proposed investments in new roads andtechnology, vehicle size and weightissues, user fees, cost allocation, energyand environmental constraints,hazardous materials transport, and otheraspects of the Federal-aid highwayprogram. Although the 1997 VehicleInventory and Use Survey is beingsubmitted as a new collection, similardata are collected every five years aspart of the economic census. The 1992collection was known as the TruckInventory and Use Survey (TIUS). TheVIUS was renamed for this census toreflect a change in the scope of thesurvey to include two additional modesof transportation—automobiles and

busses. The Bureau of TransportationStatistics, Department of Transportationis contributing funds to sponsor theinclusion of these two types of motorvehicles.

Affected Public: Individuals orhouseholds, Businesses or other for-profit, Not-for-profit institutions, Farms.

Frequency: One-time.Respondent’s Obligation: Mandatory.Legal Authority: Title 13 USC,

Sections 131 and 224.OMB Desk Officer: Jerry Coffey, (202)

395–7314.Copies of the above information

collection proposal can be obtained bycalling or writing Linda Engelmeir,Acting DOC Forms Clearance Officer,(202) 482–3272, Department ofCommerce, Room 5312, 14th andConstitution Avenue, NW, Washington,DC 20230.

Written comments andrecommendations for the proposedinformation collection should be sentwithin 30 days of publication of thisnotice to Jerry Coffey, OMB DeskOfficer, Room 10201, New ExecutiveOffice Building, Washington, DC 20503.

Dated: August 27, 1996.Linda Engelmeir,Acting Departmental Forms ClearanceOfficer, Office of Management andOrganization.[FR Doc. 96–22410 Filed 8–30–96; 8:45 am]BILLING CODE 3510–07–M



Agency: Bureau of the Census.Title: 1997 American Community

Survey.Form Number(s): TACS–1/1A,

10/10A, 12(L)/12A(L), 13(L)/13A(L),14(L)/14A(L), 16(L)/16A(L), 20/20A, 30/30A.

Agency Approval Number: 0607–0810.

Type of Request: Revision of acurrently approved collection.

Burden: 72,325 hours.Number of Respondents: 144,650.Avg Hours Per Response: 30 minutes.Needs and Uses: The Census Bureau

is developing a methodology known as‘‘Continuous Measurement’’ which willproduce socioeconomic data on acontinual basis throughout the decadefor small areas and smallsubpopulations. The American

Community Survey (ACS), implementedin November 1995, is a continuing full-scale operation of a continuousmeasurement system in four survey sites(three urban and one rural) designed todetermine the feasibility of a continuousmeasurement system. The survey alsoincludes a national sample to testresponse rates and our ability to obtaintelephone numbers for nonresponsehouseholds. The data collected in thissurvey will be within the general scopeand nature of those inquiries covered inthe decennial census every ten years.We plan to continue sampling andenumeration in the ACS in 1997 and1998. We also plan to add testing ofprocedures for identification, sampling,and data collection for persons living inspecial situations such as Indianreservations, military bases, and largeinstitutional and noninstitutional groupquarters. We will also develop andimplement procedures to create listingprocedures and a national list of specialplaces. In addition to the present surveysites, we plan to add sites in DouglasCounty, Nebraska; Otero County, NewMexico; Harris and Fort Bend Counties,Texas; and Franklin County, Ohio,including the entire city of Columbus.

Affected Public: Individuals orhouseholds.

Frequency: Monthly.Respondent’s Obligation: Mandatory.Legal Authority: Title 13 USC, Section

182.OMB Desk Officer: Jerry Coffey, (202)

395–7314.Copies of the above information

collection proposal can be obtained bycalling or writing Linda Engelmeier,Acting DOC Forms Clearance Officer,(202) 482–3272, Department ofCommerce, Room 5312, 14th andConstitution Avenue, NW, Washington,DC 20230.

Written comments andrecommendations for the proposedinformation collection should be sentwithin 30 days of publication of thisnotice to Jerry Coffey, OMB DeskOfficer, room 10201, New ExecutiveOffice Building, Washington, DC 20503.



Bureau of the Census

1997 Economic Census of the OutlyingAreas Including Puerto Rico, Guam,Northern Mariana Islands and the U.S.Virgin Islands

ACTION: Proposed agency informationcollection activity; comment request.

SUMMARY: The Department ofCommerce, as part of its continuingeffort to reduce paperwork andrespondent burden, invites the generalpublic and other Federal agencies totake this opportunity to comment onproposed and/or continuing informationcollections, as required by thePaperwork Reduction Act of 1995,Public Law 104–13 (44 U.S.C. 3506(c)(2)(A)).DATES: Written comments must besubmitted on or before November 4,1996.ADDRESSES: Direct all written commentsto Linda Engelmeier, ActingDepartmental Forms Clearance Officer,Department of Commerce, Room 5327,14th and Constitution Avenue, NW.,Washington, DC 20230.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the information collectioninstrument(s) and instructions shouldbe directed to Joseph T. Reilly, Bureauof the Census, Agriculture and FinancialStatistics Division, Room 437, IversonMall, Washington, DC 20233. Phone:(301) 763–8557.


I. AbstractThe Census Bureau is the preeminent

collector and provider of timely,relevant and quality data about thepeople and economy of the UnitedStates including Puerto Rico, Guam,Northern Mariana Islands, and theVirgin Islands. Economic data are theCensus Bureau’s primary programcommitment during nondecennialcensus years. The economic census,conducted under the authority of Title13, United States Code, is the primarysource of dependable facts about each ofthe outlying areas’ economy, andfeatures the only recognized source ofdata at a geographic level equivalent toU.S. counties. Outlying areas economiccensus statistics serve to benchmarkestimates of net income and grossproduct, and provide essentialinformation for government (Federaland local), business, and the generalpublic. The 1997 Economic Census ofthe Outlying Areas will cover thefollowing sectors: retail and wholesaletrades, certain services industries,construction, and manufactures.

The information collected in the 1997Economic Census of the Outlying Areaswill produce basic statistics by kind ofbusiness for number of establishments,sales, payroll, and employment. It alsowill yield a variety of industry-specificstatistics, including value of shipments,sales by commodity and merchandiselines, and number of hotel rooms.

II. Method of CollectionThe 1997 Economic Census of the

Outlying Areas will be conducted usingmailout/mailback procedures. Mailout/mailback procedures will replacecanvassing for Guam, NorthernMarianas, and the Virgin Islands. Theuse of the mail helps reduce respondentburden for establishments that are notwithin the scope of the census whileallowing in-scope establishments theflexibility to complete the form whenconvenient. As in the 1992 census, onlyone form covering all economic activitywithin the scope of the census is usedfor each area. Since administrativerecords for the outlying areas sometimeshave classification deficiencies the useof one form eliminates time spent by therespondent requesting a sector-appropriate form. Establishments willbe selected from the Census Bureau’sStandard Statistical Establishment List.An establishment will be included inthe 1997 Economic Census of theOutlying Areas if: (a) It is engaged inretail, wholesale, certain servicesactivities, construction, ormanufacturing; (b) it is an activeestablishment with payroll; and (c) it islocated in Puerto Rico, Guam, NorthernMariana Islands or the Virgin Islands.No data are tabulated for establishmentswithout payroll.

III. DataOMB Number: Not Available.Form Number: OA9819 (Puerto Rico

Spanish), OA9820 (Puerto Rico English),OA9863 (Guam), OA9883 (NorthernMariana Islands), and OA9873 (VirginIslands).

Type of Review: Regular Review.Affected Public: Businesses or Other

For-Profit Organizations.Estimated Number of Respondents:

Puerto Rico—45,000Guam—4,000Northern Mariana Islands—2,000Virgin Islands—3,000Total—54,000

Estimated Time Per Response:Puerto Rico—1 hr.Guam—.5 hr.Northern Mariana Islands—.5 hr.Virgin Islands—.5 hr.Total—2.5 hrs.

Estimated Total Annual BurdenHours:

Puerto Rico—45,000Guam—2,000Northern Mariana Islands—1,000Virgin Islands—1,500Total—49,500

Estimated Total Annual Cost: Thetotal cost to the government for thiswork is included in the total cost of the1997 Economic Census, estimated at$218 million.

IV. Request for CommentsComments are invited on: (a) Whether

the proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden(including hours and cost) of theproposed collection of information; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including through theuse of automated collection techniquesor other forms of informationtechnology.

Comments submitted in response tothis notice will be summarized and/orincluded in the request for OMBapproval of this information collection;they also will become a matter of publicrecord.


International Trade Administration

Intent To Revoke Antidumping DutyOrders and Findings and To TerminateSuspended Investigations

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of Intent To RevokeAntidumping Duty Orders and Findingsand To Terminate SuspendedInvestigations.

SUMMARY: The Department of Commerce(the Department) is notifying the publicof its intent to revoke the antidumpingduty orders and findings and toterminate the suspended investigationslisted below. Domestic interested partieswho object to these revocations andterminations must submit theircomments in writing no later than thelast day of September 1996.EFFECTIVE DATE: September 3, 1996.


FOR FURTHER INFORMATION CONTACT:Michael Panfeld or the analyst listedunder Antidumping Proceeding at:Import Administration, InternationalTrade Administration, U.S. Departmentof Commerce, 14th Street & ConstitutionAvenue, NW., Washington, DC 20230.


Background

The Department may revoke anantidumping duty order or finding orterminate a suspended investigation ifthe Secretary of Commerce concludesthat it is no longer of interest tointerested parties. Accordingly, asrequired by § 353.25(d)(4) of theDepartment’s regulations, we arenotifying the public of our intent torevoke the following antidumping dutyorders and findings and to terminate thesuspended investigations for which theDepartment has not received a requestto conduct an administrative review forthe most recent four consecutive annualanniversary months:

Antidumping Proceeding

GermanyCertain Forged Steel CrankshaftsA–428–60452 FR 35751September 23, 1987Contact: Amy Wei at (202) 482–1131

ItalyPads for Woodwind Instrument KeysA–475–01749 FR 37137September 21, 1984Contact: Lyn Johnson at (202) 482–

5287The People’s Republic of China

Greige Polyester/Cotton PrintclothA–570–10148 FR 41614September 16, 1983Contact: Amy Wei at (202) 482–1131If no interested party requests an

administrative review in accordancewith the Department’s notice ofopportunity to request administrativereview, and no domestic interestedparty objects to the Department’s intentto revoke or terminate pursuant to thisnotice, we shall conclude that theantidumping duty orders, findings, andsuspended investigations are no longerof interest to interested parties and shallproceed with the revocation ortermination.

Opportunity To Object

Domestic interested parties, asdefined in § 353.2(k) (3), (4), (5), and (6)of the Department’s regulations, mayobject to the Department’s intent torevoke these antidumping duty ordersand findings or to terminate the

suspended investigations by the last dayof September 1996. Any submission tothe Department must contain the nameand case number of the proceeding anda statement that explains how theobjecting party qualifies as a domesticinterested party under § 353.2(k) (3), (4),(5), and (6) of the Department’sregulations.

Seven copies of such objectionsshould be submitted to the AssistantSecretary for Import Administration,International Trade Administration,Room B–099, U.S. Department ofCommerce, Washington, DC 20230. Youmust also include the pertinentcertification(s) in accordance with§ 353.31(g) and § 353.31(i) of theDepartment’s regulations. In addition,the Department requests that a copy ofthe objection be sent to Michael F.Panfeld in Room 4203. This notice is inaccordance with 19 CFR 353.25(d)(4)(i).

Dated: August 26, 1996.Barbara R. Stafford,Deputy Assistant Secretary for AD/CVDEnforcement.[FR Doc. 96–22415 Filed 8–30–96; 8:45 am]BILLING CODE 3510–DS–P

[A–614–801]

Fresh Kiwifruit From New Zealand;Final Results of AntidumpingAdministrative Review

AGENCY: Import Administration,International Trade Administration,Commerce.

ACTION: Notice of Final Results ofAntidumping Duty AdministrativeReview.

SUMMARY: On April 10, 1996, theDepartment of Commerce (theDepartment) published the preliminaryresults of its administrative review ofthe antidumping duty order on freshkiwifruit from New Zealand. The reviewcover one exporter, the New ZealandKiwifruit Marketing Board (NZKMB),and the period from June 1, 1994,through May 31, 1995. Based on ouranalysis of the comments received, wehave revised the dumping margin forNZKMB.

EFFECTIVE DATES: September 3, 1996.

FOR FURTHER INFORMATION CONTACT: PaulM. Stolz or Thomas F. Futtner, ImportAdministration, International TradeAdministration, U.S. Department ofCommerce, 14th Street and ConstitutionAvenue, NW., Washington, DC 20230;telephone (202) 482–4474 or 482–3814,respectively.


Background

On April 10, 1996, the Departmentpublished the preliminary results (61 FR15924) of its administrative review ofthe antidumping duty order on freshkiwifruit from New Zealand (57 FR23203 (June 2, 1992)). The Departmenthas now completed this administrativereview in accordance with section 751of the Tariff Act of 1930, as amended(the Act). Unless otherwise indicated,all citations to the statute are referencesto the provisions effective January 1,1995, the effective date of theamendments made to the Tariff Act of1930 (the Act), by the Uruguay RoundAgreements Act (URAA). In addition,unless otherwise indicated, all citationsto the Departments regulations are to thecurrent regulations, as amended by theinterim regulations published in theFederal Register on May 11, 1995 (60FR 25130).

Scope of the Review

The product covered by the orderunder review is fresh kiwifruit.Processed kiwifruit, including fruitjams, jellies, pastes, purees, mineralwaters, or juices made from orcontaining kiwifruit, are not coveredunder the scope of the order. Thesubject merchandise is currentlyclassifiable under subheading0810.90.20.60 of the Harmonized TariffSchedule (HTS). Although the HTSnumber is provided for convenience andcustoms purposes, our writtendescription of the scope of this reviewis dispositive.

Analysis of Comments Received

We invited interested parties tocomment on the preliminary results. Wereceived timely comments fromrespondent, the New Zealand KiwifruitMarketing Board (NZKMB), andpetitioner, the California KiwifruitCommission.

Comment 1

The petitioner alleged a number ofspecific ministerial errors pertaining tothe application of the computer programused by the Department and submittedspecific suggested program edits.

Respondents also alleged ministerialerrors pertaining to the computerprogram. In one instance, respondentalleged a ministerial error with regard totransportation insurance, and petitionerargued that this was not an error. Thisissue is considered in comment 2. In allother instances there was nodisagreement between the petitionerand respondent concerning the alleged


ministerial errors made by theDepartment.

The errors alleged by the petitionerand respondent related to the following:1) exchange rates were incorrectlyapplied; 2) certain indirect sellingexpenses were erroneously labeled asdirect expenses while certain directexpenses were labeled as indirect; 3)delivery premiums were not added tothe starting price for both U.S. and NewZealand sales; 4) inventory carryingcosts were not included in home marketindirect selling expenses; 5) imputedcredit expenses were deducted from theprice in performing the cost test; 6)General and Administrative (G&A)expenses were double counted.

DOC PositionWith respect to the ministerial error

allegations other than that which isconsidered in comment 2, theDepartment has incorporated thesuggested edits into the computerprogram. (See memorandum to the filedated July 22, 1996, for a detaileddescription of all adjustments made.)

Comment 2Respondent claims that transportation

insurance expenses to U.S. sales shouldnot be deducted from the constructedexport price (CEP) starting price as thisis an indirect selling expense.Respondent states that these expensesare incurred in New Zealand and aretherefore not direct U.S. expenses.Furthermore, respondent states that inthe Department’s analysis memorandumfor the preliminary determination inthis proceeding, the Department statedthat it intended to treat transportationinsurance as an indirect selling expense.

Petitioner states that transportationinsurance should be deducted from theCEP starting price because it is anexpense identifiable with U.S. salesregardless of whether respondentconsiders it to be a direct or indirectselling expense.

DOC PositionAlthough the Department did indicate

in its analysis memorandum for thepreliminary results that it was treatingtransportation insurance as an indirectselling expense, upon reassessment ofthis point, we agree with petitioner thattransportation insurance should bededucted from CEP as it shouldsimilarly be deducted from NewZealand normal value (NV).Transportation insurance is a movementexpense and can be linked to specificshipments to different markets. We havemade the appropriate adjustments to thecomputer program to deduct the amountof transportation insurance allocated to

U.S. sales for the CEP starting price andNew Zealand NV.

Comment 3Petitioner argues that although New

Zealand home market sales exceededfive percent of U.S. sales during theperiod of review (POR), particularmarket conditions in New Zealandduring the POR were such that theDepartment should not consider thatmarket to be viable. Petitioner claimsthat particular market conditions inNew Zealand did not permit propercomparisons between New Zealandsales and U.S. sales. Petitioner relies onan exception outlined in the URAAStatement of Administrative Action(SAA) at 151–152: ‘‘The Administrationintends that Commerce will normallyuse the five percent threshold exceptwhere some unusual situation rendersits application inappropriate. * * * Inunusual situations * * * home marketsales constituting more than five percentof sales to the United States could beconsidered not viable.’’ Petitioner statesthat the New Zealand market wasdistorted because New Zealand law andrespondent’s own regulations establishrespondent as the exclusive exporter ofexport quality kiwifruit from NewZealand. Petitioner claims that NewZealand has been a ‘‘dumping ground’’for production that cannot be sold inexport markets, thus driving downdomestic prices. Finally, petitionerclaims that all home market sales arebelow cost, and that this should be afactor in evaluating the viability of themarket. Petitioner requested that theDepartment require respondent tosubmit Japanese sales and that theDepartment use this information toestablish NV.

The respondent asserts that the URAAexplicitly and clearly establishes that ahome market is considered viable ifhome market sales equal or exceed fivepercent of U.S. sales. Respondent notesthat the SAA at 151, establishes anexception to this rule for ‘‘particularmarket situations.’’ Respondent notesthat such circumstances only existwhere ‘‘* * * a single sale in the homemarket constitutes five percent of salesto the United States or there isgovernment control over pricing to suchan extent that home market pricescannot be considered to becompetitively set. It may also be thecase that a particular market situationcould arise from differing patterns ofdemand in the United States and in theforeign market. For example, ifsignificant price changes are closelycorrelated with holidays which occur atdifferent times of the year in the twomarkets, the prices in the foreign market

may not be suitable for comparison toprices in the United States.’’Respondent asserts that none of thesesituations prevailed in the New Zealandhome market during the POR.

DOC PositionWe disagree with petitioner. The

home market clearly meets thequantitative standard set forth in 19U.S.C. 1677b(a)(1)(C). We note that, inpast reviews of kiwifruit from NewZealand, where the quantitative test wasbased on third country markets ratherthan the U.S. market, the New Zealandhome market was not viable. Under thenew law, viability is determined on thebasis of the relationship between homemarket sales and U.S. sales. Since salesof subject merchandise in New Zealandsubstantially exceeded five percent ofthose in the U.S. market, thequantitative test of the home marketunder current law is satisfied.

Petitioner alleges that the NewZealand market is an inappropriatebasis for normal value because the‘‘particular market situation in theexporting country does not permit aproper comparison with the export priceor constructed export price,’’ as theseterms are used in 19 U.S.C.1677b(a)(1)(C)(iii). The SAA thataccompanied the URAA, at 822,establishes that a ‘‘particular marketsituation’’ might exist where a singlesale in the home market exceeds thequantitative viability threshold or wherethere is government control over pricingto such an extent that home marketprices cannot be considered to becompetitively set. The SAA alsomentions situations in which demandpatterns are different in the foreignmarket and the United States.

As the language of the SAA makesclear, we are not limited by theexamples of ‘‘particular marketsituations’’ described in that document.However, based on the evidence on therecord, we find that there is no‘‘particular market situation,’’ withinthe meaning of 19 U.S.C.1677b(a)(1)(c)(iii) which warrants adeparture from the normal five percenttest. We are not persuaded bypetitioner’s assertion that, during thePOR, New Zealand was used as a‘‘dumping ground’’ for production thatcould not be sold in export markets. Therecord does not demonstrate thatkiwifruit sold in export markets by theNZKMB is of higher quality thankiwifruit sold in the home market by theNZKMB. Nor does NZKMB’s dominancein the exportation of kiwifruit from NewZealand establish that there were pricecontrols in the New Zealand kiwifruitmarket. Indeed, evidence on the record


demonstrates that the NZKMB is notstrictly the exclusive exporter ofkiwifruit from New Zealand. Sales ofkiwifruit by any grower, reseller or otherparty, to the Australian market ispermissible under New Zealand law.Also, New Zealand resellers of kiwifruitare permitted to export to other marketsif they are licensed by the NZKMB.Thus export markets and export pricingare not subject to absolute control andmanipulation by the NZKMB. Even ifthe NZKMB were in a position tomanipulate export prices, there is noevidence on the record that the NZKMBacts on behalf of the New Zealandgovernment to control prices in thehome market. As a result, we find thatpetitioners have not presented evidenceof ‘‘price control’’ sufficient to satisfythe ‘‘particular market situation’’standard under the new law.

A finding of sales below cost ofproduction does not, in and of itself,establish that a ‘‘particular marketsituation’’ exists. It is the Department’slongstanding practice to first determinewhether the home market is viable andthen to determine whether sales aremade below cost of production. In thisreview, we applied the below-cost test,as described in the preliminary resultsof review, and found that within anextended period of time, substantiallymore than 80 percent of the homemarket sales were sold at prices belowthe COP, which would not permit therecovery of all costs within a reasonableperiod of time. Since a substantialnumber of sales were made below costwe relied on constructed value (CV).Since the remaining above-cost sale(s)in this review segment had nocorresponding model matches, we alsorelied on CV where sale(s) were above-cost.

For these reasons, based on theevidence on the record, we find that theNew Zealand market does not representa ‘‘particular market situation’’ withinthe meaning of 19 U.S.C.1677b(a)(1)(C)(iii). As a result, wereaffirm our preliminary determinationon this issue.

Final Results of Review

As a result of comments received andprogramming errors corrected, we haverevised our preliminary results.

Manufacturer/exporter Margin(Percent)

New Zealand Kiwifruit Market-ing Board ............................... 2.81

The Customs Service shall assessantidumping duties on all appropriateentries. Individual differences between

U.S. price and NV may vary from thepercentage stated above. TheDepartment will issue appraisementinstructions concerning the respondentdirectly to the U.S. Customs Service.

Furthermore, the following depositrequirements will be effective for allshipments of the subject merchandise,entered, or withdrawn from warehouse,for consumption on or after thepublication date of these final results ofadministrative review, as provided forby section 751(a)(1) of the Act: (1) thecash deposit rate for the review firmwill be 2.81 percent; and (2) the cashdeposit rate for merchandise exportedby all other manufacturers and exporterswill be the ‘‘all others’’ rate of 98.60percent established in the less-than-fair-value investigation; in accordance withthe Department practice. See FloralTrade Council v. United States, 822 F.Supp. 766 (1993), and Federal MogulCorporation, 822 F. Supp. 782 (1993).

These deposit requirements shallremain in effect until publication of thefinal results of the next administrativereview. This notice serves as the finalreminder to importers of theirresponsibility under 19 CFR 353.26 tofile a certificate regarding thereimbursement of antidumping dutiesprior to liquidation of the relevantentries during this review period.Failure to comply with this requirementcould result in the Secretary’spresumption that reimbursement ofantidumping duties occurred and thesubsequent assessment of doubleantidumping duties.

This notice also serves as a reminderto parties subject to administrativeprotective order (APO) of theirresponsibility concerning thedisposition of proprietary informationdisclosed under APO in accordancewith 19 CFR 353.34(d). Timely writtennotification or conversion to judicialprotective order is hereby requested.Failure to comply with the regulationsand the terms of the APO is asanctionable violation.

This administrative review and noticeare in accordance with section 751(a)(1)of the Act (19 U.S.C. 1675(a)(1)) and 19CFR 353.22.

Dated: August 22, 1996.Robert S. La Russa,Acting Assistant Secretary for ImportAdministration.[FR Doc. 96–22412 Filed 8–30–96; 8:45 am]BILLING CODE 3510–DS–M

[A–570–506]

Porcelain on Steel Cookware From thePeople’s Republic of China;Antidumping Duty AdministrativeReview; Extension of Time Limits forAntidumping Duty AdministrativeReview

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of extension of timelimits for antidumping dutyadministrative review.

SUMMARY: The Department of Commerce(the Department) is extending the timelimits of the preliminary and finalresults of this antidumping dutyadministrative review of Porcelain onSteel Cookware from the People’sRepublic of China. The review coversthe period December 1, 1994, throughNovember 30, 1995.EFFECTIVE DATE: September 3, 1996.FOR FURTHER INFORMATION CONTACT: JudyKornfeld, Import Administration,International Trade Administration,U.S. Department of Commerce, 14thStreet and Constitution Avenue, NW.,Washington, DC 20230, telephone: (202)482–3146.SUPPLEMENTARY INFORMATION: Because itis not practicable to complete thisreview within the original time limit,the Department is extending the timelimits for the completion of thepreliminary results until January 21,1997 and of the final results until 120days after publication of the preliminaryresults of this review, in accordancewith section 751(a)(3)(A) of the TariffAct of 1930, as amended by the UruguayRound Agreements Act (URAA). (SeeMemorandum to the file from Jeffrey P.Bialos to Robert S. LaRussa.)

These extensions are in accordancewith section 751(a)(3)(A) of the TariffAct of 1930, as amended by the URAA(19 U.S.C. 1675(a)(3)(A)).

Dated: August 28, 1996.Jeffrey P. Bialos,Principal Deputy Assistant Secretary forImport Administration.[FR Doc. 96–22414 Filed 8–30–96; 8:45 am]BILLING CODE 3510–DS–P

[A–570–825]

Sebacic Acid From the People’sRepublic of China; Preliminary Resultsof Antidumping Duty AdministrativeReview

AGENCY: Import Administration,International Trade Administration,Department of Commerce.


ACTION: Notice of Preliminary Results ofAntidumping Duty AdministrativeReview of Sebacic Acid from thePeople’s Republic of China.

SUMMARY: The Department of Commerce(the Department) is conducting anadministrative review of theantidumping duty order on sebacic acidfrom the People’s Republic of China(PRC) in response to requests frompetitioner, Union Camp Corporation andthree respondents: Tianjin ChemicalsImport and Export Corporation(Tianjin), Guangdong Chemicals Importand Export Corporation (Guangdong)and Sinochem International ChemicalsCompany, Ltd. (SICC). This reviewcovers four exporters of the subjectmerchandise, including the threerespondent companies above andSinochem Jiangsu Import and ExportCorporation (Jiangsu). The period ofreview (POR) is July 13, 1994 throughJune 30, 1995.

We have preliminarily determinedthat sales have been made below normalvalue (NV) during this period. If thesepreliminary results are adopted in ourfinal results of administrative review,we will instruct the U.S. CustomsService to assess antidumping dutiesequal to the difference between UnitedStates price (USP) and NV. Interestedparties are invited to comment on thesepreliminary results.EFFECTIVE DATE: September 3, 1996.FOR FURTHER INFORMATION CONTACT:Elizabeth Patience or Jean Kemp, ImportAdministration, International TradeAdministration, U.S. Department ofCommerce, 14th and ConstitutionAvenue, NW., Washington, DC 20230;telephone: (202) 482–3793.

Applicable Statute

Unless otherwise indicated, allcitations to the statute are references tothe provisions effective January 1, 1995,the effective date of the amendmentsmade to the Tariff Act of 1930 (the Act)by the Uruguay Round Agreements Act(URAA). In addition, unless otherwiseindicated, all citations to theDepartment’s regulations are to thecurrent regulations, as amended by theinterim regulations published in theFederal Register on May 11, 1995 (60FR 25130).


Background

The Department published in theFederal Register an antidumping dutyorder on sebacic acid from the PRC onJuly 14, 1994 (59 FR 35909). On July 3,1995, the Department published in theFederal Register (60 FR 34511) a notice

of opportunity to request anadministrative review of theantidumping duty order on sebacic acidfrom the PRC covering the period July13, 1994 through June 30, 1995.

On July 26, 1995, in accordance with19 CFR 353.22(a), Union Camprequested that we conduct anadministrative review of Tianjin,Guangdong, SICC, and Jiangsu. On July28, 1996, Tianjin, Guangdong and SICCrequested that we conduct anadministrative review. We published anotice of initiation of this antidumpingduty administrative review onSeptember 15, 1995 (60 FR 47930). TheDepartment is conducting thisadministrative review in accordancewith section 751 of the Act.

Scope of ReviewThe products covered by this order

are all grades of sebacic acid, adicarboxylic acid with the formula(CH2)8(COOH)2, which include but arenot limited to CP Grade (500ppmmaximum ash, 25 maximum APHAcolor), Purified Grade (1000ppmmaximum ash, 50 maximum APHAcolor), and Nylon Grade (500ppmmaximum ash, 70 maximum ICV color).The principal difference between thegrades is the quantity of ash and color.Sebacic acid contains a minimum of 85percent dibasic acids of which thepredominant species is the C10 dibasicacid. Sebacic acid is sold generally as afree-flowing powder/flake.

Sebacic acid has numerous industrialuses, including the production of nylon6/10 (a polymer used for paintbrush andtoothbrush bristles and paper machinefelts), plasticizers, esters, automotivecoolants, polyamides, polyester castingsand films, inks and adhesives,lubricants, and polyurethane castingsand coatings.

Sebacic acid is currently classifiableunder subheading 2917.13.00.00 of theHarmonized Tariff Schedule of theUnited States (HTSUS). Although theHTSUS subheading is provided forconvenience and customs purposes, ourwritten description of the scope of thisproceeding remains dispositive.

This review covers the period July 13,1994 through June 30, 1995, and fourexporters of Chinese sebacic acid.

VerificationWe conducted verifications of the

sales and factor information provided bySICC and Tianjin Zhong He ChemicalPlant (Zhong He) in Beijing and Tianjin,PRC. We conducted the verificationsusing standard verification procedures,including onsite inspection of themanufacturer’s facilities, theexamination of relevant sales and

financial records, and selection oforiginal documentation containingrelevant information. Our verificationresults are outlined in the publicversions of the verification reports.

Separate Rates

1. Background and Summary ofFindings

It is the Department’s standard policyto assign all exporters of themerchandise subject to review in non-market-economy countries a single rate,unless an exporter can demonstrate anabsence of government control, both inlaw and in fact, with respect to exports.To establish whether an exporter issufficiently independent of governmentcontrol to be entitled to a separate rate,the Department analyzes the exporter inlight of the criteria established in theFinal Determination of Sales at LessThan Fair Value: Sparklers from thePeople’s Republic of China (56 FR20588, May 6, 1991) (Sparklers), asamplified in the Final Determination ofSales at Less Than Fair Value: SiliconCarbide from the People’s Republic ofChina (59 FR 22585, May 2, 1994)(Silicon Carbide). Evidence supporting,though not requiring, a finding of dejure absence of government control overexport activities includes: (1) Anabsence of restrictive stipulationsassociated with an individual exporter’sbusiness and export licenses; (2) anylegislative enactments decentralizingcontrol of companies; and (3) any otherformal measures by the governmentdecentralizing control of companies.Evidence relevant to a de facto absenceof government control with respect toexports is based on four factors, whetherthe respondent: (1) Sets its own exportprices independent from thegovernment and other exporters; (2) canretain the proceeds from its export sales;(3) has the authority to negotiate andsign contracts; and (4) has autonomyfrom the government regarding theselection of management. See SiliconCarbide at 22587; see also Sparklers at20589.

In our final determination of sales atless than fair value, the Departmentdetermined that there was de jure andde facto absence of government controland determined that each companywarranted a company-specific dumpingmargin. See Final Determination ofSales at Less Than Fair Value: SebacicAcid From the People’s Republic ofChina, 59 FR 28053 (May 31, 1994)(Sebacic Acid). For this period ofreview, SICC, Tianjin, and Guangdonghave responded to the Department’srequest for information regardingseparate rates. We have found that the


evidence on the record is consistentwith the final determination in theLTFV investigation and continues todemonstrate an absence of governmentcontrol, both in law and in fact, withrespect to their exports, in accordancewith the criteria identified in Sparklersand Silicon Carbide. For SICC, althoughwe applied the PRC, country-wide rateto two sales reported by SICC, we havepreliminarily determined that SICC isseparate from government control andJiangsu. During verification of SICC, weexamined its business license andcharter, government notices announcingits separation from the government, itstax registration certificate, companymanagement election ballots, andfinancial statements. These documentsshowed no evidence of governmentcontrol of SICC or of any affiliationbetween Jiangsu and SICC.

2. Separate Rate Determination for Non-responsive Company

For Jiangsu, which did not respond tothe questionnaire, we preliminarilydetermine that this company does notmerit a separate rate. Although Jiangsumet the Department’s criteria forseparate rates in the LTFV investigation,because it failed to respond in thisreview, we have no information tosupport continued application of aseparate rate. Therefore, because theDepartment assigns a single rate tocompanies in a non-market economyunless an exporter can demonstrateabsence of government control, wepreliminarily determine that Jiangsu issubject to the country-wide rate for thiscase.

United States PriceFor SICC, Tianjin, and Guangdong,

the Department based USP on exportprice (EP), in accordance with section772(a) of the Act. We made deductionsfrom EP, where appropriate, for foreigninland freight, ocean freight, brokerageand handling, and marine insurance.We valued these adjustments usingsurrogate data based on Indian internalfreight costs and international shippingcosts. We selected India as the surrogatecountry for the reasons explained in the‘‘Normal Value’’ section of this notice.

Normal ValueSection 773(c)(1) of the Act provides

that the Department shall determine thenormal value (NV) using a factors-of-production methodology if: (1) Themerchandise is exported from an NMEcountry; and (2) the information doesnot permit the calculation of NV usinghome-market prices, third-countryprices, or constructed value undersection 773(a) of the Act.

The Department has treated the PRCas an NME country in all previousantidumping cases. In accordance withsection 771(18)(C)(i) of the Act, anydetermination that a foreign country isa NME country shall remain in effectuntil revoked by the administeringauthority. None of the parties to thisproceeding has contested suchtreatment in this review. Furthermore,available information does not permitthe calculation of NV using homemarket prices, third country prices orCV under section 773(a) of the Act.Therefore, we treated the PRC as a NMEcountry for purposes of this review andcalculated NV by valuing the factors ofproduction in a comparable marketeconomy country which is a significantproducer of comparable merchandise. Insuch cases, the factors include, but arenot limited to: (1) Hours of laborrequired; (2) quantities of raw materialsemployed; (3) amounts of energy andother utilities consumed; and (4)representative capital cost, includingdepreciation.

In accordance with section 773(c)(4)of the Act and section 353.52(b) of theDepartment’s regulations, wedetermined that India is comparable tothe PRC in terms of per capita grossnational product (GNP), the growth ratein per capita GNP, and the nationaldistribution of labor. (See Memorandumfrom Director, Office of Policy, toDivision Director, Office ofAntidumping Compliance, dated March4, 1996.) The statute directs us to selecta country that is comparableeconomically to the PRC. Based on thelist of possible surrogate countries, wefind that India is a comparable economyto the PRC.

The statute also requires that, to theextent possible, the Department use asurrogate country that is a significantproducer of merchandise comparable tosebacic acid. The countries that we wereable to confirm still produce sebacicacid, such as Japan and the UnitedStates, do not have economiescomparable to the PRC. However, wefound that India was a significantproducer of comparable merchandise(e.g., oxalic acid) during the POR.Though sebacic acid and oxalic acidhave different end uses, both aredicarboxylic acids. In addition, many ofthe inputs used to produce sebacic acidare also used to produce oxalic acid.Therefore, we find that India fulfillsboth requirements of the statute.

For purposes of calculating NV, wevalued PRC factors of production, inaccordance with section 773(c)(1) of theAct. In determining which surrogatevalue to use for valuing each factor ofproduction, we selected, where

possible, the publicly availablepublished value which was: (1) Anaverage non-export value; (2)representative of a range of priceswithin the POR if submitted by aninterested party, or mostcontemporaneous with the POR; (3)product-specific; and (4) tax-exclusive.We chose values with a preference forprices representative of the POR becausethese prices more closely reflect theprices paid for inputs in the surrogateduring the POR. Where we could notobtain a POR-representative price for aninput, we selected a value in accordancewith the remaining criteria mentionedabove and which was closest in time tothe POR. In accordance with this sectionmethodology, we valued the factors ofproduction as follows:

For castor oil, the Department valuedthis material at the market rate asreported in The Economic Times(Bombay) for Calcutta, Delhi,Hyderabad, Kanpur, and Madras duringthe months of July, August, andNovember 1994. These values werereported by counsel for the respondents.The Department adjusted these values toaccount for freight costs between thesupplier and the respondents’ sebacicacid manufacturing facilities.

For caustic soda, the Department usedthe value reported in the publicationIndian Chemical Weekly, using datafrom the months of October–December1994, and January and April, 1995.These reported values were adjusted toinclude freight expense incurred fromthe suppliers to the respondents’ sebacicacid manufacturing facilities.

For cresol, also referred to as ortholcresol, respondents reported the marketvalue as indicated in Chemical Weekly.Respondents provided informationconcerning prices during the months ofOctober and November, 1994. TheDepartment reviewed pricinginformation for other months of the PORwhich indicated that the market pricesreported by respondents isrepresentative of the market price of thematerial for the entire POR.

The valuation of activated carbon,which is interchangeable withmacropore resin, was based uponinformation found in the publicationIndia’s Imports by Commodities-Countries (Monthly Statistics of theForeign Trade of India (IMF). Thispricing information reflects the averageunit price for the period April–October,1994. This average unit value wasadjusted to account for inland freightexpense.

The market value for sodium chloride(also referred to as sodium chlorite orvacuum salt) and zinc oxide was basedupon the published market prices


reported in Chemical Weekly.Respondents provided informationconcerning the market price of sodiumchloride on December 27, 1994 andMarch 28, 1995, and of zinc oxide onMarch 28, 1995. The Departmentreviewed other dates throughout thePOR and determined that the marketprices published on these dates wererepresentative of the prices for the entirePOR.

For direct labor, we used 1994 datafrom Investing, Licensing & TradingConditions Abroad, India, published inNovember 1994 by the EconomistIntelligence Unit. We then adjusted the1994 labor value to the POR to reflectinflation using wholesale price indices(WPI) of India as published in theInternational Financial Statistics by theInternational Monetary Fund (IMF).

For factory overhead, we usedinformation obtained from the April1995 Reserve Bank of India Bulletin.From ‘‘Statement 1—Combined Income,Value of Production, Expenditure andAppropriation Accounts, IndustryGroup-wise’’ of that report for theIndian metals and chemicals industries,we summed those components whichpertain to overhead expenses anddivided them by the sum of thosecomponents pertaining to the cost ofmanufacturing to calculate an overheadrate of 10.74 percent.

For coal we used prices published inthe Gazette of India for June 1994; forelectricity we used information obtainedfrom the Current Energy Scene in Indiafor July 1995.

For selling, general, andadministrative (SG&A) expenses, weused information from the same sourceas was used for factory overhead. Wesummed the values which comprisedthe components of SG&A and dividedthat figure by the same cost ofmanufacturing figure used to determinefactory overhead, to arrive at an SG&Arate of 17.99 percent.

For the calculation of profit, we usedinformation from the same Reserve Bankof India Bulletin. We divided thereported before-tax profit by the sum ofthose components pertaining to the costof manufacturing plus SG&A tocalculate a profit rate of 5.71 percent.

For the value of export packing(plastic bags), the Department used thevalue of imports into India during April1994–February 1995 and for April 1995,as obtained from the Indian ImportStatistics, for HTS number 3923.21.

For foreign inland freight, theDepartment relied upon the truckingfreight rates reported to the Departmentin an August 1993 embassy cable fromIndia, pursuant to the less-than-fair-value investigation of certain helicalspring lock washers from the PRC. Thisis the same information we used in thesebacic acid less-than-fair-valueinvestigation. We adjusted these rates tothe POR to reflect inflation.

For ocean freight, the Departmentused the information provided byrespondents, which is based upon thecommon rates tariff filed by NipponYusen Kaisha with the Federal MaritimeCommission for rates from China toNew York.

To calculate the expense for marineinsurance, the Department usedinformation from a publiclysummarized version of thequestionnaire response for theinvestigation of sales of less than fairvalue of sulphur dyes from India. Themarine insurance rate reported in thepublic version of the October 8, 1992response was adjusted to reflect marineinsurance charges during the POR.

To value fatty acid, we used publiclyavailable published information fromthe Monthly Statistics of the ForeignTrade of India (Monthly Statistics) andadjusted the value to account forinflation between the time periodapplicable to the value in question andthe POR using wholesale price indices(WPI) published in InternationalFinancial Statistics (IFS) by the IMF. Tovalue glycerine, we used a value forcrude glycerine in the publicationMonthly Statistics of the Foreign Tradeof India and adjusted the value toaccount for inflation between the timeperiod applicable to the value inquestion and the POR using WPIpublished in IFS by the IMF. Consistentwith the methodology employed in thefinal determination in the less-than-fair-value investigation, we have determinedthat fatty acid and glycerine are by-products. See Sebacic Acid at 28056.

Therefore, as by-products, we subtractedthe sales revenue of fatty acid andglycerine from the production costs ofsebacic acid. This treatment of by-products is consistent with generallyaccepted accounting principles. (SeeCost Accounting: A ManagerialEmphasis (1991) at pages 539–544).

To value caproyl alcohol, we usedpublicly available publishedinformation from Chemical Weekly.Consistent with the methodologyemployed in the final determination inthe less-than-fair-value investigation, wehave determined that caproyl alcohol isa co-product. Therefore, we haveallocated the factor inputs, based on therelative quantity of output of thisproduct and sebacic acid. Additionally,we have used the production timesnecessary to complete each productionstage of sebacic acid as a basis forallocating the amount of labor, energyusage, and factory overhead among theproducts. This treatment of co-productsis consistent with generally acceptedaccounting principles. (See CostAccounting: A Managerial Emphasis(1991) at pages 528–533).

Margin Calculation

For SICC, at verification we foundthat certain sales reported as SICC saleswere in fact sales by another respondentcompany, Jiangsu, (See Memorandumfrom Analyst to File: Verification ofSales Questionnaire Response ofSinochem International ChemicalsCompany, dated August 26, 1996.)Therefore, for these sales, we appliedthe rate applicable to Jiangsu’s sales,243.40 percent, and then weighted thesesales into the overall calculation ofSICC’s margin. (See Memorandum fromEdward Yang, Office Director for AD/CVD Enforcement to Joseph Spetrini,Deputy Assistant Secretary for AD/CVDEnforcement: Appropriate Rate forCertain Sales Reported by SinochemInternational Chemical Corporation,First Administrative Review of theAntidumping Duty Order on SebacicAcid from the People’s Republic ofChina, dated August 27).

Preliminary Results of Review

We preliminarily determine that thefollowing dumping margins exist:

Manufacturer/exporter Time period Margin(percent)

Tianjin Chemicals I/E Corp .............................................................................................................................. 7/13/94–6/30/95 ........ 35.42Guangdong Chemicals I/E Corp ...................................................................................................................... 7/13/94–6/30/95 ........ 14.06Sinochem International Chemicals Corp ......................................................................................................... 7/13/94–6/30/95 ........ 70.55Country-Wide Rate ........................................................................................................................................... 7/13/94–6/30/95 ........ 243.40


Parties to the proceeding may requestdisclosure within 5 days of the date ofpublication of this notice. Anyinterested party may request a hearingwithin 10 days of publication. Anyhearing, if requested, will be held 44days after the publication of this notice,or the first workday thereafter.Interested parties may submit writtencomments (case briefs) within 30 daysof the date of publication of this notice.Rebuttal comments (rebuttal briefs),which must be limited to issues raisedin the case briefs, may be filed not laterthan 37 days after the date ofpublication. The Department willpublish a notice of final results of thisadministrative review, which willinclude the results of its analysis ofissues raised in any such comments,within 180 days of publication of thesepreliminary results.

The Department shall determine, andthe Customs Service shall assess,antidumping duties on all appropriateentries. Individual differences betweenUSP and NV may vary from thepercentages stated above. TheDepartment will issue appraisementinstructions directly to the CustomsService.

Furthermore, the following cashdeposit requirements will be effectiveupon publication of the final results ofthis administrative review for allshipments of the subject merchandiseentered, or withdrawn from warehouse,for consumption on or after thepublication date, as provided for bysection 751(a)(1) of the Act: (1) the cashdeposit rates for the reviewedcompanies named above which haveseparate rates (SICC, Tianjin andGuangdong) will be the rates for thosefirms established in the final results ofthis administrative review; (2) for allother PRC exporters, the cash depositrates will be 243.40 percent; and (3) thecash deposit rates for non-PRC exportersof subject merchandise from the PRCwill be the rates applicable to the PRCsupplier of that exporter. These depositrates, when imposed, shall remain ineffect until publication of the finalresults of the next administrativereview.

Notification of Interested PartiesThis notice also serves as a

preliminary reminder to importers oftheir responsibility under 19 CFR353.26 to file a certificate regarding thereimbursement of antidumping dutiesprior to liquidation of the relevantentries during this review period.Failure to comply with this requirementcould result in the Secretary’spresumption that reimbursement ofantidumping duties occurred and the

subsequent assessment of doubleantidumping duties.

This administrative review and noticeare in accordance with section 751(a)(1)of the Act (19 U.S.C. 1675(a)(1)) andsection 353.22 of the Department’sregulations.

Dated: August 26, 1996.Robert S. LaRussa,Acting Assistant Secretary for ImportAdministration.[FR Doc. 96–22413 Filed 8–30–96; 8:45 am]BILLING CODE 3510–DS–P

National Institute of Standards andTechnology

[Docket No. 960726208–6208–01]

RIN 0693–XX21

Proposed Withdrawal of Thirty-twoFederal Information ProcessingStandards (FIPS) Publications

AGENCY: National Institute of Standardsand Technology (NIST), Commerce.ACTION: Notice; Request for comments.

SUMMARY: The following FederalInformation Processing Standards (FIPS)Publications are proposed forwithdrawal from the FIPS series:—FIPS 1–2, Code for Information

Interchange, Its Representations, Subsets,and Extension (ANSI X3.4–1986/R1992,X3.32–1990, X3.41–1990)

—FIPS 11–3, Guideline: American NationalDictionary for Information Systems (ANSIX3.172–1990 & X3.172A–1992)

—FIPS 16–1, Bit Sequencing of Code forInformation Interchange in Serial-By-BitData Transmission (ANSI X3.15–1976/R1983&R1990)

FIPS 17–1, Character Structure and CharacterParity Sense for Serial-By-Bit DataCommunication in the Code forInformation Interchange (ANSI X3.16–1976/R1983&R1990)

—FIPS 19–2, Catalog of Widely Used CodeSets

—FIPS 22–1, Synchronous Signaling RatesBetween Data Terminal and DataCommunication Equipment (ANSI X3.1–1976)

—FIPS 34, Guide for the Use of InternationalSystem of Units (SI) in Federal InformationProcessing Standards Publications

—FIPS 49, Guideline on ComputerPerformance Management: An Introduction

—FIPS 57, Guidelines for the Measurementof Interactive Computer Service ResponseTime and Turnaround Time

—FIPS 58–1, Representations of Local Timeof the Day for Information Interchange(ANSI X3.43–1986)

—FIPS 59, Representations of UniversalTime, Local Time Differentials, and UnitedStates Time Zone References forInformation Interchange (ANSI X3.51–1975)

—FIPS 68–2, BASIC (ANSI X3.113–1987)

—FIPS 70–1, Representation of GeographicPoint Locations for InformationInterchange (ANSI X3.61–1986)

—FIPS 75, Guideline on ConstructingBenchmarks for ADP System Acquisitions

—FIPS 76, Guideline for Planning and Usinga Data Dictionary System

—FIPS 77, Guideline for Planning andManagement of Database Applications

—FIPS 86, Additional Controls for Use withAmerican National Standard Code forInformation Interchange (ANSI X3.64–1979/R1990)

—FIPS 88, Guideline on Integrity Assuranceand Control in Database Administration

—FIPS 94, Guideline on Electrical Power forADP Installations

—FIPS 96, Guideline for Developing andImplementing a Charging System for DataProcessing Services

—FIPS 99, Guideline: A Framework for theEvaluation and Comparison of SoftwareDevelopment Tools

—FIPS 103, Codes for the Identification ofHydrologic Units in the United States andthe Caribbean Outlying Areas (USGS/CIRCULAR #878–A & ANSI X3.145–1986)

—FIPS 104–1, ANS Codes for theRepresentation of Names of Countries,Dependencies, and Areas of SpecialSovereignty for Information Interchange

—FIPS 109, Pascal (ANSI/IEEE 770X3.97–1983/R1990)

—FIPS 110, Guideline for Choosing a DataManagement Approach

—FIPS 123, Specification for a DataDescriptive File for InformationInterchange (DDF) (ANSI/ISO 8211–1985/R1992)

—FIPS 124, Guideline on FunctionalSpecifications for Database ManagementSystems

—FIPS 126, Database Language NDL (ANSIX3.133–1986)

—FIPS 152, Standard Generalized MarkupLanguage (SGML) (ISO 8879–1986)

—FIPS 156, Information Resource DictionarySystem (IRDS) (ANSI X3.138–1988&X3.138A–1991)

—FIPS 157, Guideline for Quality Control ofImage Scanners (ANSI/AIIM MS44–1988)

—FIPS 158–1, The User Interface Componentof the Applications Portability Profile (MITX Version 11, Release 5)

Many of these FIPS adopt voluntaryindustry standards for Federalgovernment use, but the FIPSdocuments have not been updated toreference current or revised voluntaryindustry standards. In some cases,commercial products implementing thevoluntary industry standards, such asthe American National Code forInformation Interchange, are widelyavailable. In other cases, the industryspecifications have not beenimplemented in commercial off-the-shelf products. As a result, it is nolonger necessary for the government tomandate standards in these areas.

Others of these FIPS provide advisoryguidance to Federal agencies with norequirements for compulsory andbinding use. They explain and


recommend practices in themanagement and selection of systems.The earliest of these guidelines is nearlytwenty years old, and the most recentguideline is ten years old. Informationtechnology has changed considerablysince they were issued during the era ofcentralized computing on mainframecomputers. Today, Federalorganizations use a wide variety ofhardware, software, distributed systems,and networks, and there are manysources of information on all aspects ofmanaging these resources.

NIST believes that it would not becost effective to revise these standardsand guidelines, thereby duplicatinginformation that is broadly availablefrom a variety of sources. Withdrawalmeans that the FIPS standards andguidelines will no longer be part of asubscription service that is provided bythe National Technical InformationService, and that NIST will no longer beable to revise or answer questions aboutthe FIPS.

Current voluntary industry standardsshould be used by agencies in theirprocurement actions where appropriate,in accordance with OMB Circular A–119, Federal Participation and Use ofVoluntary Industry Standards. NISTwill continue to provide informationabout good information technologypractices through publications,electronic bulletin boards and Internetpages.

Prior to the submission of thisproposed withdrawal to the Secretary ofCommerce for review and approval, it isessential to assure that consideration isgiven to the needs and views ofmanufacturers, the public, and State andlocal governments. The purpose of thisnotice is to solicit such views.

Interested parties may obtain copiesof these standards and guidelines fromthe National Technical InformationService, U.S. Department of Commerce,Springfield, VA 22161, telephone (703)487–4650.DATE: Comments on this proposedwithdrawal of these FIPS must bereceived on or before December 2, 1996.ADDRESSES: Written commentsconcerning the withdrawal should besent to: Director, Computer SystemsLaboratory, ATTN: ProposedWithdrawal of 32 FIPS, TechnologyBuilding, Room A–231, NationalInstitute of Standards and Technology,Gaithersburg, MD 20899. Electroniccomments should be sent to:[email protected].

Comments received in response tothis notice will be made part of thepublic record and will be madeavailable for inspection and copying in

the Central Reference and RecordsInspection Facility, Room 6020, HerbertC. Hoover Building, 14th Street betweenPennsylvania and ConstitutionAvenues, NW, Washington, DC 20230.FOR FURTHER INFORMATION CONTACT: Ms.Shirley M. Radack, telephone (301) 975–2833, National Institute of Standardsand Technology, Gaithersburg, MD20899.

Authority: Federal Information ProcessingStandards Publications (FIPS PUBS) areissued by the National Institute of Standardsand Technology after approval by theSecretary of Commerce pursuant to Section5131 of the Information TechnologyManagement Reform Act of 1996 and theComputer Security Act of 1987, Public Law104–106.

Dated: August 28, 1996.Samuel Kramer,Associate Director.[FR Doc. 96–22404 Filed 8–30–96; 8:45 am]BILLING CODE 3510–CN–M

National Oceanic and AtmosphericAdministration

[I.D. 082696A]

Mid-Atlantic Fishery ManagementCouncil; Meetings

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Notice of public meetings;request for comments.

SUMMARY: The Mid-Atlantic FisheryManagement Council (Council) and itsDemersal Species Committee, togetherwith the Atlantic States MarineFisheries Commission’s (ASMFC)Summer Flounder, Scup, and Black SeaBass Board, and the Law EnforcementCommittee will hold a public meeting.There will also be opportunity forCouncil to hear comments on the Mainemahogany ocean quahog experimentalfishery.DATES: The meetings will be held onSeptember 17–19, 1996. SeeSUPPLEMENTARY INFORMATION for specificdates and times.ADDRESSES: The meetings will be held atthe Doubletree Guest Suites, 4101 IslandAvenue, Philadelphia, PA; telephone:(215) 365–6600.

Council Address: Mid-AtlanticFishery Management Council, 300 S.New Street, Dover, DE 19901; telephone:(302) 674–2331.FOR FURTHER INFORMATION CONTACT:David R. Keifer, Executive Director;telephone: (302) 674–2331.SUPPLEMENTARY INFORMATION: OnSeptember 17, the Council will hold

Election of Officers between 8:00–8:30a.m. From 8:30 a.m. until 5:00 p.m., theDemersal Species Committee will meetwith the ASMFC Summer Flounder,Scup, and Black Sea Bass Board as aCouncil Committee of the Whole. OnSeptember 18, the Demersal SpeciesCommittee with the ASMFC SummerFlounder, Scup, and Black Sea BassBoard will meet again until noon. Thefull Council will meet from 1:00–4:00p.m. The Enforcement Committee willmeet from 4:00–5:00 p.m. On September19, the Council will meet from 8:00 a.m.until early afternoon.

The NMFS Northeast RegionalAdministrator is seeking comment on aproposed experimental fishery formahogany ocean quahogs in the Gulf ofMaine. This experiment was jointlyrequested by the Council and the Stateof Maine to test the operational aspectsof a management program underconsideration for this fishery. Thisexperimental fishery will provideinformation on the logistical operationof this management program prior to itsadoption for implementation by theCouncil. Written comments must bereceived by this date.

The purpose of this meeting is todecide the 1997 allowable catch,commercial quota, commercialmanagement measures, and recreationaltarget harvest levels for summerflounder and scup; adopt the scupregulatory amendment for Secretarialapproval; consider enforceableregulations for filleting at sea, and otherfishery management matters.

Special Accommodations

This meeting is physically accessibleto people with disabilities. Requests forsign language interpretation or otherauxiliary aids should be directed toJoanna Davis at least 5 days prior to themeeting dates.

Dated: August 26, 1996.Gary C. Matlock,Director, Office of Sustainable Fisheries,National Marine Fisheries Service.[FR Doc. 96–22321 Filed 8–30–96; 8:45 am]BILLING CODE 3510–22–F

[I.D. 082796C]

Endangered Species; Permits

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Issuance of modification 2 topermit 921 (P503P) and notification ofwithdrawal of an application for apermit (P510C).


SUMMARY: Notice is hereby given thatNMFS has issued a modification to apermit that authorizes takes of anEndangered Species Act-listed speciesfor the purpose of scientific research/enhancement, subject to certainconditions set forth therein, to the IdahoDepartment of Fish and Game at Boise,ID (IDFG) and has received anotification of withdrawal of anapplication for an incidental take permitfrom the Shoshone-Bannock Tribes atFort Hall, ID (SBT).ADDRESSES: The applications andrelated documents are available forreview in the following offices, byappointment:

Office of Protected Resources, F/PR8,NMFS, 1315 East-West Highway, SilverSpring, MD 20910–3226 (301-713-1401);and

Environmental and TechnicalServices Division, 525 NE OregonStreet, Suite 500, Portland, OR 97232–4169 (503–230–5400).SUPPLEMENTARY INFORMATION: Themodification to a permit was issuedunder the authority of section 10 of theEndangered Species Act of 1973 (ESA)(16 U.S.C. 1531–1543) and the NMFSregulations governing ESA-listed fishand wildlife permits (50 CFR parts 217–222).

An application was submitted byIDFG (P503P) for modification 2 toscientific research/enhancement permit921. Modification 2 to permit 921 wasissued to IDFG on August 2, 1996.Permit 921 authorizes IDFG annualtakes of adult and juvenile, threatened,Snake River spring/summer chinooksalmon (Oncorhynchus tshawytscha)associated with a supplementationprogram at McCall Hatchery. ForModification 2, IDFG is authorized toallow a proportion of the adult, ESA-listed, natural-origin fish that arereleased upstream of IDFG’s weir at theSouth Fork of the Salmon River eachyear for natural spawning to migratevolitionally to their respective spawninglocations. IDFG may transport theremaining adult, ESA-listed, natural-origin fish to be released for naturalspawning to Stolle Meadows.Previously, NMFS had required IDFG totransport all of the adult, ESA-listed,natural-origin fish to be released fornatural spawning to Stolle Meadows.Modification 2 is valid for the durationof the permit. Permit 921 expires onDecember 31, 1998.

Notice was published on June 20,1996 (61 FR 31510) that an applicationhad been filed by SBT (P510C) for anincidental take permit. SBT requested a5-year permit for an annual incidentaltake of juvenile, threatened, Snake River

spring/summer chinook salmon(Oncorhynchus tshawytscha) associatedwith a study designed to determine thedistribution and abundance of bull trout(Salvelinus confluentus) in the HerdCreek watershed of the East ForkSalmon River and Burnt Creek of thePahsimeroi River. NMFS has receivednotification that SBT would like towithdraw their request for an incidentaltake permit. SBT now believe that theirsampling in the East Fork Salmon Riverdrainage will not result in a take of ESA-listed salmon because no chinooksalmon redds or parr were observedrecently in the areas where SBT proposeto conduct their research. Furthermore,SBT will survey their chosen researchsites by snorkeling prior to sampling toconfirm the absence of ESA-listed fish.

Issuance of the permit modification,as required by the ESA, was based ona finding that such action: (1) Wasrequested in good faith, (2) will notoperate to the disadvantage of the ESA-listed species that is the subject of thepermit, and (3) is consistent with thepurposes and policies set forth insection 2 of the ESA and the NMFSregulations governing ESA-listedspecies permits.

Dated: August 27, 1996.Robert C. Ziobro,Acting Chief, Endangered Species Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 96–22322 Filed 8–30–96; 8:45 am]BILLING CODE 3510–22–F

DEPARTMENT OF DEFENSE

Department of the Navy

Notice of Prospective Exclusive orPartially Exclusive License(s); DavisLiquid Crystals, Inc. andThermographic MeasurementsIncorporated

SUMMARY: Davis Liquid Crystals, Inc. hasapplied for an exclusive license topractice the Government-ownedinvention described in U.S. Patent No.5,480,482 entitled ‘‘ReversibleThermochromic Pigments’’ issuedJanuary 2, 1996, and ThermographicMeasurements Incorporated has alsoapplied for an exclusive license topractice the same invention. TheDepartment of the Navy is consideringthe granting to either one or both ofthese entities of revocable,nonassignable, exclusive or partiallyexclusive license(s) to practice thisinvention in the United States.

Anyone wishing to object to thegranting of licenses to either or both ofthese prospective licensees has 60 days

from the date of this notice to filewritten objections along withsupporting evidence, if any. Writtenobjections are to be filed with the Officeof Naval Research, ONR 00CC, BallstonTower One, Arlington, Virginia 22217–5660.FOR FURTHER INFORMATION CONTACT:Mr. R. J. Erickson, Staff Patent Attorney,Office of Naval Research, ONR 00CC,Ballston Tower One, 800 North QuincyStreet, Arlington, Virginia 22217–5660,telephone (703) 696–4001.

Dated: August 22, 1996.D. E. Koenig,LCDR, JAGC, USN, Federal Register LiaisonOfficer.[FR Doc. 96–22271 Filed 8–30–96; 8:45 am]BILLING CODE 3810–FF–M

DEPARTMENT OF EDUCATION

Notice of Proposed InformationCollection Requests

AGENCY: Department of Education.ACTION: Proposed collection; commentrequest.

SUMMARY: The Director, InformationResources Group, invites comments onthe proposed information collectionrequests as required by the PaperworkReduction Act of 1995.DATES: Interested persons are invited tosubmit comments on or beforeNovember 4, 1996.ADDRESSES: Written comments andrequests for copies of the proposedinformation collection requests shouldbe addressed to Patrick J. Sherrill,Department of Education, 600Independence Avenue, S.W., Room5624, Regional Office Building 3,Washington, DC 20202–4651.FOR FURTHER INFORMATION CONTACT:Patrick J. Sherrill (202) 708–8196.Individuals who use atelecommunications device for the deaf(TDD) may call the Federal InformationRelay Service (FIRS) at 1–800–877–8339between 8 a.m. and 8 p.m., Eastern time,Monday through Friday.SUPPLEMENTARY INFORMATION: Section3506 of the Paperwork Reduction Act of1995 (44 U.S.C. Chapter 35) requiresthat the Office of Management andBudget (OMB) provide interestedFederal agencies and the public an earlyopportunity to comment on informationcollection requests. OMB may amend orwaive the requirement for publicconsultation to the extent that publicparticipation in the approval processwould defeat the purpose of theinformation collection, violate State orFederal law, or substantially interfere


with any agency’s ability to perform itsstatutory obligations. The Director of theInformation Resources Group publishesthis notice containing proposedinformation collection requests prior tosubmission of these requests to OMB.Each proposed information collection,grouped by office, contains thefollowing: (1) Type of review requested,e.g., new, revision, extension, existingor reinstatement; (2) Title; (3) Summaryof the collection; (4) Description of theneed for, and proposed use of, theinformation; (5) Respondents andfrequency of collection; and (6)Reporting and/or Recordkeepingburden. OMB invites public comment atthe address specified above. Copies ofthe requests are available from Patrick J.Sherrill at the address specified above.

The Department of Education isespecially interested in public commentaddressing the following issues: (1) Isthis collection necessary to the properfunctions of the Department, (2) willthis information be processed and usedin a timely manner, (3) is the estimateof burden accurate, (4) how might theDepartment enhance the quality, utility,and clarity of the information to becollected, and (5) how might theDepartment minimize the burden of thiscollection on the respondents, includingthrough the use of informationtechnology.

Dated: August 27, 1996.Gloria Parker,Director, Information Resources Group.

Office of Educational Research andImprovement

Type of Review: Reinstatement.Title: Application for Grants Under

the Library Services and ConstructionAct, Titles I, II and III.

Frequency: Annually.Affected Public: Not-for-profit

institutions; State, local or Tribal Gov’t,SEAs or LEAs.

Reporting Burden and Recordkeeping:Responses: 55.Burden Hours: 2,475.

Abstract: The Office of LibraryPrograms needs the information to knowhow the respondents plan to use thefunds. The information is used todetermine compliance with matching,four separate maintenance-of-effortrequirements, and use of funds forallowable activities. The respondentsare State Library AdministrativeAgencies.

[FR Doc. 96–22277 Filed 8–30–96; 8:45 am]BILLING CODE 4000–01–U

Notice of Proposed InformationCollection Requests

AGENCY: Department of Education.ACTION: Submission for OMB review;comment request.

SUMMARY: The Director, InformationResources Group, invites comments onthe proposed information collectionrequests as required by the PaperworkReduction Act of 1995.DATES: Interested persons are invited tosubmit comments on or before October3, 1996.ADDRESSES: Written comments shouldbe addressed to the Office ofInformation and Regulatory Affairs,Attention: Wendy Taylor, Desk Officer,Department of Education, Office ofManagement and Budget, 725 17thStreet, NW., Room 10235, NewExecutive Office Building, Washington,DC 20503. Requests for copies of theproposed information collectionrequests should be addressed to PatrickJ. Sherrill, Department of Education, 600Independence Avenue, S.W., Room5624, Regional Office Building 3,Washington, DC 20202–4651.FOR FURTHER INFORMATION CONTACT:Patrick J. Sherrill (202) 708–8196.Individuals who use atelecommunications device for the deaf(TDD) may call the Federal InformationRelay Service (FIRS) at 1–800–877–8339between 8 a.m. and 8 p.m., Eastern time,Monday through Friday.SUPPLEMENTARY INFORMATION: Section3506 of the Paperwork Reduction Act of1995 (44 U. S. C. Chapter 35) requiresthat the Office of Management andBudget (OMB) provide interestedFederal agencies and the public an earlyopportunity to comment on informationcollection requests. OMB may amend orwaive the requirement for publicconsultation to the extent that publicparticipation in the approval processwould defeat the purpose of theinformation collection, violate State orFederal law, or substantially interferewith any agency’s ability to perform itsstatutory obligations. The Director of theInformation Resources Group publishesthis notice containing proposedinformation collection requests prior tosubmission of these requests to OMB.Each proposed information collection,grouped by office, contains thefollowing: (1) Type of review requested,e.g., new, revision, extension, existingor reinstatement; (2) Title; (3) Summaryof the collection; (4) Description of theneed for, and proposed use of, theinformation; (5) Respondents andfrequency of collection; and (6)Reporting and/or Recordkeeping

burden. OMB invites public comment atthe address specified above. Copies ofthe requests are available from Patrick J.Sherrill at the address specified above.

Dated: August 27, 1996.Gloria Parker,Director, Information Resources Group.

Office of the Under SecretaryType of Review: New.Title: Survey of State Correctional

Education.Frequency: One-time.Affected Public: State, local or Tribal

Government, SEAs or LEAs.Reporting and Recordkeeping Hour

Burden:Responses: 51.Burden Hours: 510.

Abstract: This survey is part of theEvaluation of State CorrectionalEducation that the Department ofEducation is conducting to be able toprovide federal and state policymakerswith information about whichapproaches to correctional education areassociated with the most positiveoutcomes.

Office of Postsecondary Education

Type of Review: Reinstatement.Title: Performance Report for the

Robert C. Byrd Honors ScholarshipProgram.

Frequency: Annually.Affected Public: Individuals or

households; State, local or Tribal Gov’t,SEAs or LEAs.

Annual Reporting and RecordkeepingHour Burden:

Responses: 59.Burden Hours: 148.

Abstract: This performance report isused by State educational agencies thathave participated in the Robert C. ByrdHonors Scholarship Program. The U.S.Department of Education uses theinformation collected to assess theaccomplishments of project goals andobjectives and to aid in effectivemanagement.

[FR Doc. 96–22276 Filed 8–30–96; 8:45 am]BILLING CODE 4000–01–U

President’s Board of Advisors onHistorically Black Colleges andUniversities; Meeting

AGENCY: President’s Board of Advisorson Historically Black Colleges andUniversities, Department of Education.ACTION: Notice of meeting.

SUMMARY: This notice sets forth theschedule and agenda of the meeting ofthe President’s Board of Advisors onHistorically Black Colleges andUniversities. This notice also describes


the functions of the Board. Notice of thismeeting is required under Section10(a)(2) of the Federal AdvisoryCommittee Act.DATE AND TIME: September 23, 1996 from9 a.m. to 11 a.m.ADDRESS: The meeting will be held atthe Park Hyatt Hotel located at 120124th Street NW, Washington, DC.FOR FURTHER INFORMATION, CONTACT:Amy Billingsley, White House Initiativeon Historically Black Colleges andUniversities, U.S. Department ofEducation, 600 Independence Avenue,SW, the Portals Building, Suite 605,Washington, DC 20202–5120.Telephone: (202) 708–8667.SUPPLEMENTARY INFORMATION: ThePresident’s Board of Advisors onHistorically Black Colleges andUniversities was established underExecutive order 12876 of November 1,1993. The Board is established to adviseon the financial stability of HistoricallyBlack Colleges and Universities, to issuean annual report to the President onHBCU participation in Federalprograms, and to advise the Secretary ofEducation on increasing the privatesector role in strengthening HBCUs.

The meeting of the Board is open tothe public. The meeting will beprimarily devoted to the adoption of theBoard’s Annual Report andRecommendations.

Records are kept of all Boardprocedures, and are available for publicinspection at the White House Initiativeon Historically Black Colleges andUniversities located at 1250 MarylandAvenue, S.W., The Portals Building,Suite 605, Washington, DC 20202, fromthe hours of 8:30 a.m. to 5:00 p.m.David A. Longanecker,Assistant Secretary for PostsecondaryEducation.[FR Doc. 96–22416 Filed 8–30–96; 8:45 am]BILLING CODE 4000–01–M

DEPARTMENT OF ENERGY

Environmental Management Site-Specific Advisory Board, Hanford Site

AGENCY: Department of Energy.ACTION: Notice of open meeting.

SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, 86 Stat. 770) noticeis hereby given of the followingAdvisory Committee meeting:Environmental Management Site-Specific Advisory Board (EM SSAB),Hanford Site.DATES: Friday, September 6, 1996: 8:30a.m.–4:00 p.m.

ADDRESSES: Cavanaugh’s, 1101Columbia Center Boulevard,Kennewick, Washington.FOR FURTHER INFORMATION CONTACT: JonYerxa, Public Participation Coordinator,Department of Energy RichlandOperations Office, P.O. Box 550,Richland, WA, 99352.


Purpose of the Board: The purpose ofthe Board is to make recommendationsto DOE and in the areas ofenvironmental restoration, wastemanagement, and related activities.

Tentative Agenda

September Meeting TopicsThe Hanford Advisory Board will

receive information on and discussissues related to: Introduction of FluorDaniels Hanford Company, DOE Ten-Year Plan and Strategic Issues, VadoseZone Data Gathering, Proposed Use ofEffluent Treatment Facility, andProposed Comments on Tri-PartyAgreement M–33 (Milestone 33). TheBoard will also receive updates fromvarious Subcommittees, includingupdates on: the Hanford TechnologyDevelopment Center, National EquityDialogue, Plutonium Roundtable,Community Relations Plan,Environmental Management ScienceProgram, and the status of the Board’sRequest for Proposal for AdministrativeManagement and Facilitation Contract.

Public Participation: The meeting isopen to the public. Written statementsmay be filed with the Committee eitherbefore or after the meeting. Individualswho wish to make oral statementspertaining to agenda items shouldcontact Jon Yerxa’s office at the addressor telephone number listed above.Requests must be received 5 days priorto the meeting and reasonable provisionwill be made to include the presentationin the agenda. The Designated FederalOfficial is empowered to conduct themeeting in a fashion that will facilitatethe orderly conduct of business. Eachindividual wishing to make publiccomment will be provided a maximumof 5 minutes to present their comments.This notice is being published less than15 days before the date of the meetingdue to programmatic issues that had tobe resolved.

Minutes: The minutes of this meetingwill be available for public review andcopying at the Freedom of InformationPublic Reading Room, 1E–190, ForrestalBuilding, 1000 Independence Avenue,SW, Washington, DC 20585 between 9a.m. and 4 p.m., Monday–Friday, exceptFederal holidays. Minutes will also beavailable by writing to Jon Yerxa,

Department of Energy RichlandOperations Office, P.O. Box 550,Richland, WA 99352, or by calling himat (509) 376–9628.

Issued at Washington, DC on August 27,1996.Rachel M. Samuel,Acting Deputy Advisory CommitteeManagement Officer.[FR Doc. 96–22397 Filed 8–30–96; 8:45 am]BILLING CODE 6450–01–P

Environmental Management Site-Specific Advisory Board, Rocky Flats


SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, 86 Stat. 770) noticeis hereby given of the followingAdvisory Committee meeting:Environmental Management Site-Specific Advisory Board (EM SSAB),Rocky Flats.DATES: Thursday, September 5, 1996,6:00 pm–9:30 pm.ADDRESSES: Westminster City Hall, 4800West 92nd Avenue, Westminster, CO80030 (lower level Multi-PurposeRoom).FOR FURTHER INFORMATION CONTACT: KenKorkia, Board/Staff Coordinator, EMSSAB-Rocky Flats, 9035 NorthWadsworth Parkway, Suite 2250,Westminster, CO 80021, phone: (303)420–7855, fax: (303) 420–7579.

SUPPLEMENTARY INFORMATION:Purpose of the Board: The purpose of

the Board is to make recommendationsto DOE and in the areas ofenvironmental restoration, wastemanagement, and related activities.

Tentative Agenda(1) Presentation from an expert panel

that is reviewing past studies of themovement of plutonium in the soilaround Rocky Flats. This evaluationwill lead to a set of recommendationsfor future research in this area. Thisreview was prompted by research datacollected in May of 1995 whichindicated that plutonium was moving inareas on-site where it was thought tohave been immobile.

(2) Presentation on Kaiser-Hill’s FiscalYear 1997 Performance Measures.

(3) Plans to complete work on a set ofprinciples that the agencies should useto guide environmental cleanup plans atRocky Flats.

(4) Discussion of current options forprivatizing work at Rocky Flats.

Public Participation: The meeting isopen to the public. Written statements


may be filed with the Committee eitherbefore or after the meeting. Individualswho wish to make oral statementspertaining to agenda items shouldcontact Ken Korkia at the address ortelephone number listed above.Requests must be received 5 days priorto the meeting and reasonable provisionwill be made to include the presentationin the agenda. The Designated FederalOfficial is empowered to conduct themeeting in a fashion that will facilitatethe orderly conduct of business. Eachindividual wishing to make publiccomment will be provided a maximumof 5 minutes to present their comments.This notice is being published less than15 days in advance of the meeting dueto programmatic issues that needed tobe resolved.

Minutes: The minutes of this meetingwill be available for public review andcopying at the Freedom of InformationPublic Reading Room, 1E–190, ForrestalBuilding, 1000 Independence Avenue,SW, Washington, DC 20585 between9:00 a.m. and 4 p.m., Monday–Friday,except Federal holidays. Minutes willalso be available at the Public ReadingRoom located at the Board’s office at9035 North Wadsworth Parkway, Suite2250, Westminster, CO 80021;telephone (303) 420–7855. Hours ofoperation for the Public Reading Roomare 9:00 am and 4:00 pm on Mondaythrough Friday. Minutes will also bemade available by writing or calling DebThompson at the Board’s office addressor telephone number listed above.

Issued at Washington, DC, on August 27,1996.Rachel M. Samuel,Acting Deputy Advisory CommitteeManagement Officer.[FR Doc. 96–22399 Filed 8–30–96; 8:45 am]BILLING CODE 6450–01–P

Environmental Management Site-Specific Advisory Board, Oak RidgeReservation


SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, 86 Stat. 770) noticeis hereby given of the followingAdvisory Committee meeting:Environmental Management Site-Specific Advisory Board (EM SSAB),Oak Ridge Reservation.DATES: Wednesday, September 11, 6:00pm–9:00 pm.ADDRESSES: Oak Ridge Inn (formerlyHoliday Inn), 420 South IllinoisAvenue, Oak Ridge, Tennessee.

FOR FURTHER INFORMATION CONTACT:Sandy Perkins, Site-Specific AdvisoryBoard Coordinator, Department ofEnergy Oak Ridge Operations Office,105 Broadway, Oak Ridge, TN 37830,(423) 576–1590.


Purpose of the Board: The purpose ofthe Board is to make recommendationsto DOE in the areas of environmentalrestoration, waste management, andrelated activities.

Tentative Agenda

September Meeting Topics

This meeting will be a businessmeeting with no technical presentationsplanned. The Board will be working onthe 1996 Self Evaluation and it’s AnnualReport.

Public Participation: The meeting isopen to the public. Written statementsmay be filed with the Committee eitherbefore or after the meeting. Individualswho wish to make oral statementspertaining to agenda items shouldcontact Sandy Perkins at the address ortelephone number listed above.Requests must be received 5 days priorto the meeting and reasonable provisionwill be made to include the presentationin the agenda. The Designated FederalOfficial is empowered to conduct themeeting in a fashion that will facilitatethe orderly conduct of business. Eachindividual wishing to make publiccomment will be provided a maximumof 5 minutes to present their comments.

Minutes: The minutes of this meetingwill be available for public review andcopying at the Freedom of InformationPublic Reading Room, 1E–190, ForrestalBuilding, 1000 Independence Avenue,SW, Washington, DC 20585 between9:00 a.m. and 4 p.m., Monday–Friday,except Federal holidays. Minutes willalso be available at the Department ofEnergy’s Information Resource Center at105 Broadway, Oak Ridge, TN between8:30 am and 5:00 pm on Monday,Wednesday, and Friday; 8:30 am and7:00 pm on Tuesday and Thursday; and9:00 am and 1:00 pm on Saturday, or bywriting to Sandy Perkins, Department ofEnergy Oak Ridge Operations Office,105 Broadway, Oak Ridge, TN 37830, orby calling her at (423) 576–1590.


Environmental Management Site-Specific Advisory Board, Fernald


SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, 86 Stat. 770) noticeis hereby given of the followingAdvisory Committee meeting:Environmental Management Site-Specific Advisory Board (EM SSAB),Fernald.DATES: Saturday, September 28, 8:30am—12:30 pm (public comment session,12:15 pm—12:30 pm).ADDRESSES: The Alpha Building, 10967Hamilton Cleves Highway, Harrison,Ohio.FOR FURTHER INFORMATION CONTACT: JohnS. Applegate, Chair of the FernaldCitizens Task Force, P.O. Box 544, Ross,Ohio 45061, or call the Fernald CitizensTask Force office (513) 648–6478.


Purpose of the Board: The purpose ofthe Board is to make recommendationsto DOE and in the areas of future use,cleanup levels, waste disposition andcleanup priorities at the Fernald site.

Tentative Agenda

8:30 am Call to Order8:30–8:45 Chair’s Remarks and New

Business8:45–9:15 Committee Chairs’ Reports9:15–9:25 Report on FERMCO/Labor

Initiatives9:25–9:35 Report on Progress Toward

Task Force Recommendations9:35–9:50 Site Development Map for

the Community Reuse Organization9:50–10:15 Overview of Contaminant

Screening Process10:15–10:30 Break10:30–11:15 Review of Comments of

the Integrated EnvironmentalMonitoring Plan

11:15–12:00 Discuss ProposedChanges to Silo 3 Recommendation

12:00–12:15 Task Force PlanningIssues

12:15–12:30 Opportunity for PublicInput

12:30 pm AdjournA final agenda will be available at the

meeting, Saturday, September 28, 1996.Public Participation: The meeting is

open to the public. Written statementsmay be filed with the Board chair eitherbefore or after the meeting. Individualswho wish to make oral statementspertaining to agenda items shouldcontact the Board chair at the address ortelephone number listed above.Requests must be received 5 days prior


to the meeting and reasonable provisionwill be made to include the presentationin the agenda. The Deputy DesignatedFederal Officer, Gary Stegner, PublicAffairs Officer, Ohio Field Office, U.S.Department of Energy, is empowered toconduct the meeting in a fashion thatwill facilitate the orderly conduct ofbusiness. Each individual wishing tomake public comment will be provideda maximum of 5 minutes to presenttheir comments.

Minutes: The minutes of this meetingwill be available for public review andcopying at the Freedom of InformationPublic Reading Room, 1E–190, ForrestalBuilding, 1000 Independence Avenue,SW, Washington, DC 20585 between9:00 a.m. and 4:00 p.m., Monday–Friday, except Federal holidays.Minutes will also be available bywriting to John S. Applegate, Chair, theFernald Citizens Task Force, P.O. Box544, Ross, Ohio 45061 or by calling theTask Force message line at (513) 648–6478.


Office of Energy Research

High Energy Physics Advisory Panel;Notice of Open Meeting

AGENCY: Department of Energy.

ACTION: Notice of open meeting.

SUMMARY: Pursuant to the provisions ofthe Federal Advisory Committee Act(Public Law 92–463, 86 Stat. 770),notice is given of a meeting of the HighEnergy Physics Advisory Panel.

DATES: Monday, October 7, 1996; 9:00a.m. to 6:00 p.m.; and Tuesday, October8, 1996; 9:00 a.m. to 4:00 p.m.

ADDRESSES: Brookhaven NationalLaboratory, Berkner Hall, Upton, NewYork 11973.

FURTHER INFORMATION CONTACT: Dr.Robert Diebold, Executive Secretary,High Energy Physics Advisory Panel,U.S. Department of Energy, ER–22,GTN, Germantown, Maryland 20874,Telephone: (301) 903–5490.


Purpose of the Meeting: To provideadvice and guidance on a continuingbasis with respect to the high energyphysics research program.

Tentative Agenda

Monday, October 7, 1996 and Tuesday,October 8, 1996Discussion of Department of Energy

High Energy Physics Programs and FY1997 Budget

Discussion of National ScienceFoundation Elementary ParticlePhysics Programs and FY 1997 Budget

Discussion of the Status of the LargeHadron Collider Project and U.S.Participation

Discussion of the Brookhaven HighEnergy Physics Program

Discussion of the Snowmass Workshopon New Directions for High EnergyPhysics

Discussion of University-based HighEnergy Physics Programs

Reports on and Discussions of Topics ofGeneral Interest in High EnergyPhysics

Public Comment (10 minute rule)Public Participation: The two-day

meeting is open to the public. TheChairperson of the Panel is empoweredto conduct the meeting in a fashion thatwill, in his judgment, facilitate theorderly conduct of business. Anymember of the public who wishes tomake oral statements pertaining toagenda items should contact theExecutive Secretary at the address ortelephone number listed above.Requests must be received at least 5days prior to the meeting and reasonableprovision will be made to include thepresentation on the agenda.

Minutes: Available for public reviewand copying at the Public ReadingRoom, Room 1E–190, ForrestalBuilding, 1000 Independence Avenue,S.W., Washington, D.C. between 9:00a.m. and 4:00 p.m., Monday throughFriday, except Federal holidays.

Issued at Washington, D.C. on August 28,1996.Rachel M. Samuel,Acting Deputy Advisory CommitteeManagement Officer.[FR Doc. 96–22396 Filed 8–30–96; 8:45 am]BILLING CODE 6450–01–P

Federal Energy RegulatoryCommission

[Docket No. RP95–182–007]

ANR Pipeline Company; Notice ofProposed Changes in FERC Gas Tariff

August 27, 1996.Take notice that on August 20, 1996,

ANR Pipeline Company (ANR) tenderedfor filing as part of its FERC Gas Tariff,Second Revised Volume No. 1, thefollowing tariff sheets, to becomeeffective September 1, 1996:

Fourth Revised Sheet No. 120Fourth Revised Sheet No. 121Fourth Revised Sheet No. 153

ANR states that the above-referencedtariff sheets are being filed pursuant tothe Commission’s August 5, 1996‘‘Order on Rehearing and Clarification,and Accepting Compliance FilingSubject to Conditions’’ in the captionedproceeding. The revised tariff sheetsaddress directed changes to ANR’s tariffprovisions regarding the segmentationof capacity.

Any person desiring to protest thisfiling should file a protest with theFederal Energy Regulatory Commission,888 First Street, NE. Washington, D.C.02426, in accordance with 18 CFR385.211 of the Commission’s Rules andRegulations. All such protests must befiled in accordance with Section154.210 of the Commission’sRegulations. Protests will be consideredby the Commission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceeding. Copies of this filing areon file with the Commission and areavailable for public inspection in thePublic Reference Room.Lois D. Cashell,Secretary.[FR Doc. 96–22299 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–67–000]

Canyon Creek Compression Company;Notice of Proposed Changes In FERCGas Tariff


Canyon Creek Compression Company(Canyon) tendered for filing as part of itsFERC Gas Tariff, Third Revised VolumeNo. 1, Fourth Revised Sheet No. 6, to beeffective October 1, 1996.

Canyon states that the purpose of thefiling is to implement the AnnualCharges Adjustment (ACA) chargenecessary for Canyon to recover from itscustomers annual charges assessed it bythe Federal Energy RegulatoryCommission (Commission) pursuant toPart 382 of the Commission’sRegulations. The rate authorized by theCommission to be effective October 1,1996 is $.00203 per Mcf. UnderCanyon’s billing basis, this rate convertsto $.0019 per MMBtu.

Canyon states that a copy of the filingis being mailed to Canyon’sjurisdictional customers and interestedstate regulatory agencies.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with the


Federal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the public reference room.Lois D. Cashell,Secretary.[FR Doc. 96–22289 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Carnegie Interstate Pipeline Company;Notice of Informal SettlementConference

August 27, 1996.Take notice that an informal

settlement conference will be convenedin this proceeding on September 5,1996, at 10:00 a.m., at the offices of theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, DC,for the purposes of exploring thepossible settlement of the referenceddocket.

Any party, as defined by 18 CFR385.102(c) or any participant, as definedby 18 CFR 385.102(b) is invited toattend. Persons wishing to become aparty must move to intervene andreceive intervenor status pursuant to theCommission’s regulations (18 CFR385.214).

For additional information, contactKathleen Dias at (202) 208–0524 orLorna Hadlock at (202) 208–0737.Lois D. Cashell,Secretary.[FR Doc. 96–22297 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. CP96–734–000]

CNG Transmission Corporation; Noticeof Request Under BlanketAuthorization


CNG Transmission Corporation (CNG),445 West Main Street, Clarksburg, WestVirginia 26301, filed in Docket No.CP96–734–000, a request pursuant toSections 157.205 and 157.212 of theCommission’s Regulations under the

Natural Gas Act (18 CFR 157.205 and157.212) for authorization to construct anew tap and appurtenant facilities toserve as a new delivery point to HopeGas, Inc. (Hope) in Monongalia County,WV, under CNG’s blanket certificateissued in Docket No. CP82–537–000,pursuant to Section 7(c) of the NaturalGas Act, all as more fully set forth in therequest which is on file with theCommission and open to publicinspection.

CNG states that Hope, a localdistribution company in West Virginiaand an affiliate of CNG, needs the newdelivery point in order to providenatural gas services to Swanson PlatingCo., Inc., ViTech Enterprises, Inc., andMorgantown Construction Group, Inc.(Customer Group) in MonongaliaCounty, West Virginia. CNG relates thatit will transport quantities of natural gasto Hope destined for the CustomerGroup under existing certificatedtransportation arrangements with Hope.CNG says it has sufficient systemdelivery capacity to deliver thesequantities, without disadvantaging itsexisting customers.

CNG explains that is will construct atwo-inch ‘‘hot’’ tap and valve on its TL–323 pipeline. Hope will be installing anew meter and regulator (M&R) withina 20-foot by 20-foot fenced area, whichis within CNG’s existing TL–323 right-of-way, and approximately 7,675 feet of3-inch connecting line to the CustomerGroup. CNG indicates the maximumdesign capacity of the 2-inch tap andM&R is 960 Mcf per day. CNG states thatthe total cost of CNG’s construction willbe fully reimbursed by Hope.

Any person or the Commission’s staffmay, within 45 days after issuance ofthe instant notice by the Commission,file pursuant to Rule 214 of theCommission’s Procedural Rules (18 CFR385.214) a motion to intervene or noticeof intervention and pursuant to Section157.205 of the Regulations under theNatural Gas Act (18 CFR 157.205) aprotest to the request. If no protest isfiled within the time allowed therefor,the proposed activity shall be deemed tobe authorized effective the day after thetime allowed for filing a protest. If aprotest is filed and not withdrawnwithin 30 days after the time allowedfor filing a protest, the instant requestshall be treated as an application forauthorization pursuant to Section 7 ofthe Natural Gas Act.Lois D. Cashell,Secretary.[FR Doc. 96–22312 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


East Tennessee Gas TransmissionCompany; Notice of Cashout Report


East Tennessee Gas TransmissionCompany (East Tennessee) tendered forfiling its cashout report for theNovember 1994 through October 1995period.

East Tennessee states that the cashoutreport reflects a total cashout lossduring this period of $28,822.

East Tennessee states that copies ofthe filing have been mailed to allaffected parties and state commissions.

Any person desiring to be heard or toprotest this filing should file a motionto intervene or protest this filing shouldfile a motion to intervene or protest withthe Federal Energy RegulatoryCommission, Washington, D.C. 20426,in accordance with 18 CFR 385.214 and385.211 of the Commission’s Rules andRegulations. All such motions orprotests must be filed on or beforeSeptember 3, 1996. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22293 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. MT96–24–000]

El Paso Natural Gas Company; Noticeof Proposed Changes in FERC GasTariff


El Paso Natural Gas Company (El Paso)tendered for filing to become part of itsFERC Gas Tariff, Second RevisedVolume No. 1–A, the following tariffsheets, to become effective September20, 1996:First Revised Sheet No. 200Second Revised Sheet No. 293Third Revised Sheet No. 357

Additionally, El Paso states that ittendered for filing and acceptance arevised Statement on Standards ofConduct (Statement) pursuant toSection 161.3(i) of the Commission’sRegulations.

El Paso states that its revisedStatement on Standards of Conduct and


the tendered tariff sheets identify ElPaso Energy Marketing Company,Cornerstone Natural Gas, Inc., and ElPaso Gas Marketing Company asmarketing affiliates of El Paso. El Pasoalso reports that it has revised its tariffto state that it no longer shares operatingfacilities with its marketing affiliates.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Sections385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22305 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–2–34–000]

Florida Gas Transmission Company;Notice of Proposed Changes In FERCGas Tariff


Florida Gas Transmission Company(FGT) tendered for filing to become partof its FERC Gas Tariff, Third RevisedVolume No. 1, effective October 1, 1996,the following tariff sheets:Seventeenth Revised Sheet No. 8ATenth Revised Sheet No. 8A.01Ninth Revised Sheet No. 8A.02Fifteenth Revised Sheet No. 8BEighth Revised Sheet No. 8B.01

FGT states that Section 27 of theGeneral Terms and Conditions (GTC) ofFGT’s Tariff provides for the recoveryby FGT of gas used in the operation ofits system and gas lost from the systemor otherwise unaccounted for. The fuelreimbursement charges pursuant toSection 27 consist of the FuelReimbursement Charge Percentage(FRCP), designed to recover current fuelusage on an in-kind basis, and the UnitFuel Surcharge (UFS), designed torecover or refund previous under orovercollections on a cash basis. Both theFRCP and the UFS are applicable toMarket Area deliveries and are effective

for seasonal periods, changing effectiveeach April 1 (for the Summer Period)and each October 1 (for the WinterPeriod).

FGT states that it is filing to establishan FRCP of 3.06% to become effectiveOctober 1, 1996 based on the actualcompany fuel use, lost and unaccountedfor volumes, and Market Area Deliveriesfor the period from October 1, 1995through March 31, 1996. FGT states thatit is also filing to establish the InitialWinter Period UFS pursuant to Section27.D of the GTC to be effective October1, 1996. The proposed Initial WinterPeriod Unit Fuel Surcharge is calculatedto be <$0.0087> per MMBtu.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, NE, Washington, DC 20426in accordance with Sections 385.211and 385.214 of the Commission’s Rulesand Regulations. All such motions orprotests must be filed as provided inSection 154.210 of the Commission’sRegulations. Protests will be consideredby the Commission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceeding. Any person wishing tobecome a party must file a motion tointervene. Copies of this filing are onfile with the Commission and areavailable for public inspection in thePublic Reference Room.Lois D. Cashell,Secretary.[FR Doc. 96–22308 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–34–000]

Florida Gas Transmission Company;Notice of Proposed Changes in FERCGas Tariff


Florida Gas Transmission Company(FGT) tendered for filing as part of itsFERC Gas Tariff, Third Revised VolumeNo. 1, the following tariff sheets tobecome effective August 1, 1996.Sixteenth Revised Sheet No. 8ANinth Revised Sheet No. 8A.01Eighth Revised Sheet No. 8A.02Fourteenth Revised Sheet No. 8BSeventh Revised Sheet No. 8B.01

FGT states that the above referencedtariff sheets are being filed pursuant toSection 22 of the General Terms andConditions (‘‘GTC’’) of FGT’s Tariff toreflect a decrease of the ACA charge to0.22¢ per MMBtu based on theCommission’s Annual Charge Billing forFiscal Year 1996.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, NE, Washington, DC, 20426,in accordance with Sections 385.211and 385.214 of the Commission’s Rulesand Regulations. All such motions orprotests must be filed as provided inSection 154.210 of the Commission’sRegulations. Protests will be consideredby the Commission in determining theappropriate action to be taken; but willnot serve to make protestants parties tothe proceeding. Any person wishing tobecome a party must file a motion tointervene. Copies of this filing are onfile with the Commission and areavailable for pubic inspection in thePublic Reference Room.Lois D. Cashell,Secretary.[FR Doc. 96–22319 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–46–000]

Kentucky West Virginia Gas Company,L.L.C.; Notice of Proposed Changes inFERC Gas Tariff


Kentucky West Virginia Gas Company,L.L.C. (Kentucky West), tendered forfiling to become part of its FERC GasTariff, Third Revised Volume No. 1, thefollowing tariff sheets to be effectiveOctober 1, 1996:Second Revised Sheet No. 4Second Revised Sheet No. 5Fifth Revised Sheet No. 163

Pursuant to Order No. 472, theCommission has authorized pipelinecompanies to track and pass through totheir customers their annual chargesunder an Annual Charge Adjustment(ACA) clause. The 1996 ACA unitsurcharge approved by the Commissionis $.0020 per Mcf. Kentucky West hasconverted this Mcf rate to a dekatherm(Dth) rate of $.0016 per Dth.

Kentucky West states that a copy of itsfiling has been served upon itscustomers and interested statecommissions.

Any person desiring to be heard or toprotest this filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Sections385.211 and 385.214 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commission


in determining the appropriate action tobe taken, but will not serve to makeProtestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22314 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


K N Interstate Gas TransmissionCompany; Notice of Compliance Filing


K N Interstate Gas TransmissionCompany (K N Interstate) tendered forfiling to become part of its FERC GasTariff, Third Revised Volume No. 1–B,Second Substitute Original Sheet No.86, in compliance with theCommission’s July 31, 1996 order in theabove-referenced proceeding. K NInterstate proposes an effective date ofAugust 1, 1996.

K N Interstate states that copies of thefiling have been served upon eachperson designated on the official servicelist compiled by the Secretary in thisproceeding.

Any person desiring to protest thisfiling should file a protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with Section385.211 of the Commission’s Rules andRegulations. All such protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Copies of this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22295 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Koch Gateway Pipeline Company;Notice of Compliance Filing


Koch Gateway Pipeline Company(Koch) tendered for filing as part of itsFERC GAS Tariff, Fifth Revised Volume

No. 1, the following tariff sheet, with aneffective date of April 12, 1996:2nd Sub First Revised Sheet No. 1408

Koch states that the purpose of thisfiling is to correct a section referencewhich incorrectly references a sectionwhich was deleted in Koch’s August 7,1996 compliance filing.

Koch states that copies of the filingwill be served upon all parties on theofficial service list created by theSecretary in this proceeding.

Any person desiring to protest thisfiling should file a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Section385.211 of the Commission’s rules andregulations. All such protests must befiled as provided by Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Copies of this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22315 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Mississippi River TransmissionCorporation; Notice of ProposedChanges in FERC Gas Tariff


Mississippi River TransmissionCorporation (MRT) tendered for filing tobecome part of its FERC Gas Tariff,Third Revised Volume No. 1, thefollowing tariff sheets to be effectiveJuly 1, 1996:Seventeenth Revised Sheet No. 5Seventeenth Revised Sheet No. 6Fourteenth Revised Sheet No. 7

MRT states that the purpose of thisfiling is to adjust its rates to reflect theremoval of its Gas Supply RealignmentCosts (GSRC) included in MRT’s GSRCReservation Surcharges and that portionof the GSRC included in the volumetricrates charged to MRT’s ITS customers.MRT collects such GSRC pursuant toSection 16.3 of the General Terms andConditions of its FERC Gas Tariff, ThirdRevised Volume No. 1, and the BaseStipulation and Agreement approved bythe Federal Energy RegulatoryCommission in Docket Nos. RP93–4,RP94–68 and RP94–190. MRT’s currentrecovery period expired March 31, 1996

for its price differential GSRC and June30, 1996 for its buyout/buydown GSRC,both as approved for recovery in DocketNo. RP96–890. Personnel changes and acompany-wide restructuring of MRT’soperations is the reason for failure to fileto remove its GSRC prior to theconclusion of its permitted recoveryperiods.

MRT further states it discovered thisoversight in time to remove all GSRC forits customers’ July, 1996 invoices, andany overcollection of the PriceDifferential GSRC that MRT hascollected will be credited or refunded tocustomers, with interest, when MRTmakes its next Price Differential GSRCrecovery filing, with a proposedeffective date of October 1, 1996.

MRT states that copies of its filinghave been mailed to all of its affectedcustomers and State Commissions ofArkansas, Missouri, Illinois andLouisiana.

Any person desiring to be heard orprotest the subject filing should file amotion to intervene or protest with theFederal Energy Regulatory Commission,888 First Street, NE, Washington, D.C.20426, in accordance with Sections385.211 and CFR 385.211 and 385.214.All such motions and protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection.Lois D. Cashell,Secretary.[FR Doc. 96–22294 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Mojave Pipeline Company; Notice ofProposed Changes in FERC Gas Tariff


Mojave Pipeline Company (Mojave)tendered for filing to become part of itsFERC Gas Tariff, First Revised VolumeNo. 1, the following tariff sheets, tobecome effective September 18, 1996:First Revised Sheet No. 128Original Sheet No. 128A

Additionally, Mojave states that ittendered for filing and acceptance aStatement on Standards of Conduct(‘‘Statement’’) pursuant to Section161.3(i) of the Commission’sRegulations.


Mojave states that copies of the filingwere served upon all of Mojave’sinterstate pipeline system transportationcustomers and interested stateregulatory commissions.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Sections385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22306 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–26–000]

Natural Gas Pipeline Company ofAmerica; Notice of Proposed Changesin FERC Gas Tariff


Natural Gas Pipeline Company ofAmerica (Natural) tendered for filing aspart of its FERC Gas Tariff, SixthRevised Volume No. 1, Fifth RevisedSheet No. 26, to be effective October1,1996.

Natural states that the purpose of thefiling is to implement the AnnualCharges Adjustment (ACA) chargenecessary for Natural to recover from itscustomers annual charges assessed toNatural by the Federal EnergyRegulatory Commission (Commission)pursuant to Part 382 of theCommission’s Regulations. The rateauthorized by the Commission to beeffective October 1, 1996 is $.0023 perMcf. Under Natural’s billing basis, thisrate converts to $.0020 per MMBtu.

Natural states that a copy of the filingis being mailed to Natural’sjurisdictional customer and interestedstate regulatory agencies.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with Sections

385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the public reference room.Lois D. Cashell,Secretary.[FR Doc. 96–22290 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–100–000]

Nora Transmission Company; Noticeof Proposed Changes in FERC GasTariff

August 27, 1996.

Take notice that on August 23, 1996,Nora Transmission Company (Nora)tendered for filing to become part of itsFERC Gas Tariff, First Revised VolumeNo. 1, the following tariff sheets to beeffective October 1, 1996.Second Revised Sheet No. 4Third Revised Sheet No. 163

Pursuant to Order No. 472, theCommission has authorized pipelinecompanies to track and pass through totheir customers their annual chargesunder an Annual Charge Adjustment(ACA) clause. The 1996 ACA unitsurcharge approved by the Commissionis $.0020 per Mcf. Nora has convertedthis Mcf rate to a dekatherm (Dth) rateof $.0019 per Dth.

Nora states that a copy of its filing hasbeen served upon its customers andinterested state commissions.

Any person desiring to be heard or toprotest this filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Section385.211 and 385.214 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeProtestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for public

inspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22313 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Overthrust Pipeline Company; Noticeof Tariff Filing


Overthrust Pipeline Company, tenderedfor filing to become part of its FERC GasTariff, First Revised Volume No. 1–A,Second Revised Sheet No. 76 and ThirdRevised Sheet No. 77, to be effectiveSeptember 21, 1996. The proposed tariffsheets update § 28, Affiliate-RelatedInformation, as required by 18 CFR250.16 (b)(1).

Overthrust states that a copy of thisfiling has been served upon itscustomers and the Wyoming PublicService Commission.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Rules385.211 and 385.214 of theCommission’s Rules of Practice andProcedure (18 CFR 385.211 and385.214). All such motions or protestsmust be filed as provided in Section154.210 of the Commission’sRegulations. Protests will be consideredby the Commission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceeding. Copies of this filing areon file with the Commission and areavaialble for public inspection.Lois D. Cashell,Secretary.[FR Doc. 96–22303 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Ozark Gas Transmission System;Notice of Informal SettlementConference


settlement conference will be convenedin this proceeding on Wednesday,September 18, 1996, at 1 p.m., to becontinued if needed on Thursday,September 19, 1996, at 10 a.m. at theoffices of the Federal Energy RegulatoryCommission, 888 First Street, N.E.,Washington, DC 20426 for the purpose


of exploring the possible settlement ofthe above-referenced docket.

Any party, as defined by 18 CFR385.102(c), or any participant as definedby 18 CFR 385.102(b), is invited toattend. Persons wishing to become aparty must move to intervene andreceive intervenor status pursuant to theCommission’s regulations (18 CFR385.214).

For additional information, pleasecontact Robert A. Young at (202) 208–5705 or Michael D. Cotleur at (202) 208–1076.Lois D. Cashell,Secretary.[FR Doc. 96–22296 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket Nos. RP91–229–000 and RP92–166–000, et al.]

Panhandle Eastern Pipe LineCompany; Notice of InformalSettlement Conference


settlement conference will be convenedin this proceeding on Tuesday,September 10, 1996, at 9:00 a.m. Thesettlement conference will be held at theoffices of the Federal Energy RegulatoryCommission, 888 First Street, N.E.,Washington, DC, for the purpose ofexploring the possible settlement of theabove-referenced dockets.

Any party, as defined by 18 CFR385.102(c), or any participant as definedin 18 CFR 385.102(b), is invited toattend. Persons wishing to become aparty must move to intervene andreceive intervenor status pursuant to theCommission’s regulations (18 CFR385.214).

For additional information, pleasecontact Carmen Gastilo at (202) 208–2182 or Kathleen M. Dias (202) 208–0524.Lois D. Cashell,Secretary.[FR Doc. 96–22300 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Project No. 2149–059]

Public Utility District No. 1 of DouglasCounty, Washington; Notice ofApplication for Approval of Contractsfor the Sale of Power for a PeriodExtending Beyond the Term of theLicense

August 27, 1996.On August 5, 1996, pursuant to

Section 22 of the Federal Power Act, 16U.S.C. 815, Public Utility District No. 1of Douglas County, Washington

(Douglas County PUD), filed anapplication requesting Commissionapproval of contracts for the sale ofpower for the Wells Project No. 2149,for the approximately six years that thepower sales contracts extend beyond the2012 expiration date of the license. Theproject is located on the Columbia Riverin Douglas, Chelan, and OkanoganCounties, Washington.

Section 22 provides that contracts forthe sale and delivery of power forperiods extending beyond thetermination date of a license may beentered into upon the joint approval ofthe Commission and the appropriatestate public service Commission orother similar authority in the state inwhich the sale or delivery of power ismade. Douglas County PUD states in itsapplication that Commission approvalof the Wells Project power salescontracts is in the public interestbecause the revenues from thosecontracts have been pledged to securerepayment of bonds (which expire whenthe power sales contracts expire) thatDouglas County PUD issued to financeconstruction of the Wells Project andthat the contracts were essential to thedevelopment of the project.

Anyone may submit comments, aprotest, or a motion to intervene inaccordance with the requirements of theCommission’s Rules of practice andprocedure, 18 CFR 385.210, 385.211,385.214. In determining the appropriateaction to take, the Commission willconsider all protests and othercomments, but only those who file amotion to intervene in accordance withthe Commission’s rules may become aparty to the proceeding. Comments,protests, or motions to intervene mustbe filed by October 3, 1996; must bearin all capital letters the title‘‘COMMENTS,’’ ‘‘PROTEST,’’ or‘‘MOTION TO INTERVENE,’’ asapplicable, and ‘‘Project No. 2149–059.’’Send the filings (original and 14 copies)to: The Secretary, Federal EnergyRegulatory Commission, 888 FirstStreet, N.E., Washington, D.C. 20426. Acopy of any filing must also be servedupon each representative of the licenseespecified in its application.Lois D. Cashell,Secretary.[FR Doc. 96–22302 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Questar Pipeline Company; Notice ofTariff Filing


Questar Pipeline Company (Questar)tendered for filing to become part of itsFERC Gas Tariff, First Revised VolumeNo. 1, Third Revised Sheet No. 96. Theproposed tariff sheet updates § 24,Affiliate-Related Information, asrequired by 18 CFR 250.16(b)(1).

Questar states that a copy of this filinghas been served upon its customers, thePublic Service Commission of Utah andthe Wyoming Public ServiceCommission.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with Rules385.211 and 385.214 of theCommission’s Rules of Practice andProcedure (18 CFR 385.211 and385.214). All such motions or protestsmust be filed as provided in Section154.210 of the Commission’sRegulations. Protests will be consideredby the Commission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceeding. Copies of this filing areon file with the Commission and areavailable for public inspection.Lois D. Cashell,Secretary.[FR Doc. 96–22304 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–79–000]

Sabine Pipe Line Company; Notice ofProposed Changes in FERC Gas Tariff


Sabine Pipe Line Company (Sabine)tendered for filing the followingproposed change to its FERC Gas Tariff,Second Revised Volume No. 1, to beeffective October 1, 1996:

Third Revised Sheet No. 20

Sabine states that the Commission hasspecified the Annual ChargeAdjustment (ACA) unit charge of$.0023111291/Mcf to be applied to ratesin 1996 for recovery of 1995 annualcharges. The ACA unit rate of$.0023111291/Mcf converts to $.0022/MMBtu under Sabine’s basis for billing.

Sabine states that copies of the filingwere served upon Sabine’s customers,the State of Louisiana, Department ofNatural Resources, Office of


Conservation and the RailroadCommission of Texas.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, D.C.20426, in accordance with 18 CFR,Sections 385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeProtestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22309 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


South Georgia Natural Gas Company;Notice of Proposed Changes to FERCGas Tariff


South Georgia Natural Gas Company(South Georgia) tendered for filing aspart of its FERC Gas Tariff, First RevisedVolume No. 1, the following tariff sheetsto become effective as shown:

Effective date

Fourth Revised Sheet No. 5 Jan. 1, 1996.Fourth Revised Sheet No. 6 Jan. 1, 1996.First Revised First Sheet

No. 14.Jan. 1, 1996.

Third Revised Sheet No. 14 Jan. 29, 1996.Third Revised Sheet No. 32 Jan. 1, 1996.

South Georgia states that the purposeof this filing is to implement Tariffrevisions proposed by South Georgia inits Stipulation and agreement filed onJune 10, 1996, in Docket Nos. RP96–64–000, et al., and approved by theCommission in its order issued on July18, 1996. Under the Stipulation andAgreement, which addresses SouthGeorgia’s recovery to its costs underFinancial Accounting Standards No. 106(SFAS 106), South Georgia is required toimplement these revisions retroactivelyto January 1, 1996.

Any person desiring to protest thisfiling should file a protest with theFederal Energy Regulatory Commission,88 First Street, N.E., Washington, D.C.

20426, in accordance with Rule 211 ofthe Commission’s Rules of Practice andProcedures (18 CFR Section 385.211).All such protests must be filed asprovided in Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Copies of this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22316 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Southern Natural Gas Company;Notice of Proposed Changes in FERCGas Tariff


Southern Natural Gas Company(Southern) tendered for filing as part ofits FERC Gas Tariff, Seventh RevisedVolume No. 1, the following tariff sheetsto become effective September 1, 1996:Second Revised Sheet No. 139aThird Revised Sheet No. 140First Revised Sheet No. 140aSecond Revised Sheet No. 141Second Revised Sheet No. 142

Southern states that the purpose ofthis filing is to revise the monthlycashout mechanism of its imbalanceresolution procedures to provide thatthe tolerance level for shippers whoaccrue monthly imbalances in the samedirection as the net system imbalancefor that month will change from twopercent to one percent and thatimbalance percentages will be based onthe actual imbalance at the end of themonth. Southern also states thatmonthly imbalances of less than orequal to 1,000 MMBtu will be priced atthe index price and that the last weeklyposting used from Natural GasIntelligence Gas Price Index fordetermining the monthly low price,high price, and index price will be theposting in the last issue of the month.Southern has requested that these sheetsbe made effective as of September 1,1996.

Southern states that copies of thefiling will be served upon its shippersand interested state commissions.

Any person desiring to be heard or toprotest this filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, N.E., Washington, DC

20426, in accordance with Rules 211and 214 of the Commission’s Rules ofPractice and Procedure (18 CFRSections 385.211 and 385.214). All suchmotions and protests must be filed asprovided in Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22291 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–69–000]

Stingray Pipeline Company; Notice ofProposed Changes in FERC Gas Tariff


Stingray Pipeline Company (Stingray)tendered for filing as part of its FERCGas Tariff, Third Revised Volume No. 1,Sixth Revised Sheet No. 5, to beeffective October 1, 1996.

Stingray states that the purpose of thefiling is to implement the AnnualCharges Adjustment (ACA) chargenecessary for Stingray to recover fromits customers annual charges assessed itby the Federal Energy RegulatoryCommission (Commission) pursuant toPart 382 of the Commission’sRegulations. The rate authorized by theCommission to be effective October 1,1996 is $.00203 per Mcf. UnderStingray’s billing basis, this rateconverts to $.0020 per MMBtu.

Stingray states that a copy of the filingis being mailed to Stingray’sjurisdictional customers and interestedstate regulatory agencies.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copies


of this filing are on file with theCommission and are available for publicinspection in the public reference room.Lois D. Cashell,Secretary.[FR Doc. 96–22310 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Tennessee Gas Pipeline Company;Notice of Proposed Changes in FERCGas Tariff

August 27, 1996.

Take notice that on August 23, 1996,Tennessee Gas Pipeline Company(Tennessee), submitted for filing tobecome part of its FERC Gas Tariff, FifthRevised Volume 1, the following revisedtariff sheets, to be effective onSeptember 23, 1996:

Third Revised Sheet No. 319Third Revised Sheet No. 319A

Tennessee states that the purpose ofthis filing is to correct an inadvertenterror in its October 4, 1995 compliancefiling in Docket No. RP95–112–000, etal. Tennessee states that the revisedtariff sheets reinstate its UnscheduledFlow provision that governs the flow ofgas at receipt or delivery point(s) wherea nomination has not been made forsuch flow.

Any person desiring to be heard or toprotest this filing should file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street N.E., Washington, D.C.20426, in accordance with 18 CFR385.211 and 385.214 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to this proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22292 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Tennessee Gas Pipeline Company;Notice of Compliance Filing


Tennessee Gas Pipeline Company(Tennessee), tendered for filing as partof its FERC Gas Tariff, Fifth RevisedVolume No. 1, the following revisedtariff sheets with a proposed effectivedate of August 1, 1996:Substitute First Revised Sheet No. 405Substitute Original Sheet No. 405ASubstitute Original Sheet No. 405BSubstitute Original Sheet No. 405C

Tennessee states that it is filing therevised tariff sheets in compliance withthe Commission’s July 31 Order in theabove referenced proceeding. TheCommission directed Tennessee tomake certain modifications to its filingsin this docket and to more thoroughlyexplain certain aspects of its net presentvalue criteria which the pipeline willutilize to evaluate bids for availablecapacity posted during open seasons.

Any person desiring to make anyprotest with reference to said filingshould file a protest with the FederalEnergy Regulatory Commission, 888First Street N.E., Washington, D.C.20426, in accordance with Section 211of the Commission’s Rules of Practiceand Procedure, 18 CFR 385.211. Allsuch protests were due to be filed asprovided in Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to this proceeding.Copies of this filing are on file andavailable for public inspection in thePublic Reference Room.Louis D. Cashell,Secretary.[FR Doc. 96–22349 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Texas-Ohio Pipeline, Inc.; Notice ofApplication


Texas-Ohio Pipeline, Inc. (Texas-Ohio),800 Gessner, Suite 900, Houston, Texas77024, filed an application pursuant toSection 7(b) of the Natural Gas Act forpermission and approval to abandon, bysale to Total Compression Incorporated(TCI), two compressors and appurtenantequipment from its existing facilitieslocated in Garrard County, Kentucky,and for the authority to lease back from

TCI one of the compressors forcontinued service on its existingpipeline facilities, all as more fully setforth in the application which is on filewith the Commission and open topublic inspection.

Texas-Ohio requests that theCommission treat the proposedabandonment and leasebackarrangement as one transaction forpurposes of granting the necessaryauthorizations. Texas-Ohio furtherrequests that the Commission grant therequested abandonment and leasebackauthority retroactive to October 1, 1995,the date the abandonment and leasebacktransaction actually took place, oralternatively, grant whatever waivers ofthe Commission’s rules and regulationsare necessary to amend Texas-Ohio’sNGA Section 7(c) certificate to reflectthese transactions.

Texas-Ohio states that it wasconstructed to operate as a winterpeaking service which allowed gas flowaround historical bottlenecks created inTennessee Gas Pipeline Company’s(Tennessee) and Texas EasternTransmission Corporation’s (TETCO)supply area. Texas-Ohio states that itsfacilities consist of approximately 600feet of 10-inch pipeline and two gascompression units each withapproximately 980 horsepower. Withthe advent of Order No. 636 and therestructuring of the interstate pipelineindustry, Texas-Ohio states that itspipeline operations have significantlychanged. It is stated that unbundling ofpipeline services and rate structurechanges on the interstate pipelines havechanged the economics and the flow ofnatural gas on both the interconnectingpipelines of Texas-Ohio’s system to apoint where historical bottlenecks occurless often, requiring substantially lesspeaking service. It is stated that theoriginal transportation design capacityof Texas-Ohio’s facilities is 60,000 Mcfper day. At present, Texas-Ohio statesthat it has no long-term firmtransportation shippers; it onlytransports gas pursuant to interruptibleand short-term firm (less than 30 days)transportation agreements.

Texas-Ohio states that in early 1995,it began evaluating alternatives toreduce the costs of operating itsfacilities in light of a significantreduction in system throughput sincethe advent of Order No. 636. SinceOrder No. 636, which has led to theincreased use of released firm capacityat the expense of interruptible capacityon both Tennessee and TETCO,shippers have become for less reliant oninterruptible transportation, alleviatingmuch of the bottlenecks that historicallyoccurred on these systems, and, more


importantly, dramatically lessening thethroughput on Texas-Ohio’s facilities.

Texas-Ohio states that in an effort toreduce operating costs, in the Spring of1995 it explored various businessopportunities, including the potentialabandonment and sale of surpluscompression facilities that it owned andthe leasing back of such facilities atlower operating expenses, thus reducingits overall cost-of-service and rates.Specifically, Texas-Ohio estimates that anet rate reduction from 5.18¢/MMBtu toapproximately 4.5¢/MMBtu wouldoccur (on a 100 percent volumetricbasis) as a result of the proposedtransaction with TCI.

Any person desiring to be heard or tomake any protest with reference to saidapplication should on or beforeSeptember 17, 1996, file with theFederal Energy Regulatory Commission,Washington, D.C. 20426, a motion tointervene or a protest in accordancewith the requirements of theCommission’s Rules of Practice andProcedure (18 CFR 385.214 or 385.211)and the Regulations under the NaturalGas Act (18 CFR 157.10). All protestsfiled with the Commission will beconsidered by it in determining theappropriate action to be taken but willnot serve to make the protestants partiesto the proceeding. Any person wishingto become a party to a proceeding or toparticipate as a party in any hearingtherein must file a motion to intervenein accordance with the Commission’sRules.

Take further notice that, pursuant tothe authority contained in and subject tothe jurisdiction conferred upon theFederal Energy Regulatory Commissionby Sections 7 and 15 of the Natural GasAct and the Commission’s Rules ofPractice and Procedure, a hearing willbe held without further notice before theCommission or its designee on thisapplication if no motion to intervene isfiled within the time required herein, ifthe Commission on its own review ofthe matter finds that permission andapproval for the proposed abandonmentare required by the public convenienceand necessity. If a motion for leave tointervene is timely filed, or if theCommission on its own motion believesthat a formal hearing is required, furthernotice of such hearing will be dulygiven.

Under the procedure herein providedfor, unless otherwise advised, it will beunnecessary for Texas-Ohio to appear orbe represented at the hearing.Lois D. Cashell,Secretary.[FR Doc. 96–22307 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. TM97–1–68–000]

Trailblazer Pipeline Company; Noticeof Proposed Changes in FERC GasTariff


Trailblazer Pipeline Company(Trailblazer) tendered for filing as partof its FERC Gas Tariff, Third RevisedVolume No. 1, Fourth Revised SheetNos. 5 and 6, to be effective October 1,1996.

Trailblazer states that the purpose ofthe filing is to implement the AnnualCharges Adjustment (ACA) chargenecessary for Trailblazer to recover fromits customers annual charges assessed itby the Federal Energy RegulatoryCommission (Commission) pursuant toPart 382 of the Commission’sRegulations. The rate authorized by theCommission to be effective October 1,1996 is $.00203 per Mcf. UnderTrailblazer’s billing basis, this rateconverts to $.0019 per MMBtu.

Trailblazer states that a copy of thefiling is being mailed to Trailblazer’sjurisdictional customers and interestedstate regulatory agencies.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with Sections385.214 and 385.211 of theCommission’s Rules and Regulations.All such motions or protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the public reference room.Lois D. Cashell,Secretary.[FR Doc. 96–22311 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket Nos. RP95–197–015 and RP96–211–002]

Transcontinental Gas Pipe LineCorporation; Notice of ComplianceFiling


Transcontinental Gas Pipe LineCorporation (Transco) tendered forfiling certain revised tariff sheets to itsFERC Gas Tariff, Third Revised Volume

No. 1 which tariff sheets are listedbelow. The proposed effective date isJune 1, 1996:Substitute First revised Sheet No. 2612nd Sub 3rd Revised First Revised Sheet No.

3392nd Sub 4th Revised First Revised Sheet No.

339

Transco states that the purpose of theinstant filing is to comply with theCommission’s letter order issued August2, 1996 in Docket Nos. RP95–197–012and RP96–211–001 (August 2 Order).The August 2 Order accepted certaintariff sheets to be effective June 1, 1996and directed Transco to file, within 15days of such order, revised tariff sheetsto provide the same curtailment priorityfor primary and secondary receipt anddelivery points. The Commission statesthat such directive is consistent with theCommission’s ‘‘Opinion and Order onInitial Decision’’ (Opinion No. 405),issued July 3, 1996, in Docket No.RP92–137–016, et al. In compliancewith the Commission’s August 2 Order,Transco has revised Sections 11.3(b)and 28.4(c) of its General Terms andConditions.

Transco is serving copies of theinstant filing to customers, StateCommissions and other interestedparties.

Any person desiring to protest thisfiling should file a protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, DC,20426, in accordance with 18 CFR385.211 of the Commission’s Rules andRegulations. All such protests must befiled as provided in Section 154.210 ofthe Commission’s Regulations. Protestswill be considered by the Commissionin determining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Copies of this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom.Lois D. Cashell,Secretary.[FR Doc. 96–22298 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Docket No. ER96–2728–000, et al.]

Illinois Power Company, et al.; ElectricRate and Corporate Regulation Filings

August 26, 1996.Take notice that the following filings

have been made with the Commission:

1. Illinois Power Company

[Docket No. ER96–2728–000]Take notice that on August 14, 1996,

Illinois Power Company (Illinois


Power), 500 South 27th Street, Decatur,Illinois 62526, tendered for filing aPower Sales Tariff, Service Agreementunder which Coastal Electric ServiceCompany will take service underIllinois Power Company’s Power SalesTariff. The agreements are based on theForm of Service Agreement in IllinoisPower’s tariff.

Illinois Power has requested aneffective date of July 15, 1996.

Comment date: September 9, 1996, inaccordance with Standard Paragraph Eat the end of this notice.

2. Consolidated Edison Company ofNew York, Inc.


Consolidated Edison Company of NewYork, Inc. (Con Edison), tendered forfiling a Supplement to Con Edison’sRate Schedule FERC No. 128, the PARSFacilities Agreement under which ConEdison is responsible for the purchase,installation, operation, and maintenanceof phase angle regulators at theBranchburg-Ramapo Interconnectionbetween the New York Power Pool(NYPP) and the Pennsylvania-NewJersey-Maryland (PJM) Interconnection.Con Edison has requested waiver ofnotice requirements so that thedecreases in charges under theSupplement can be made effective as ofJanuary 1, 1995.

Con Edison states that a copy of thisfiling has been served by mail uponNYPP and PJM.


3. Louisville Gas and Electric Company


Louisville Gas and Electric Company(LG&E), tendered for filing a copy of aNon-Firm Transmission Agreementbetween Louisville Gas and ElectricCompany and Federal Energy Sales, Inc.under Rate TS.


4. Idaho Power Company


Idaho Power Company (IPC), tenderedfor filing with the Federal EnergyRegulatory Commission a ServiceAgreement under Idaho PowerCompany’s FERC Electric Tariff, SecondRevised, Volume No. 1 between QuestarEnergy Trading Company and IdahoPower Company, and a Certificate ofConcurrence.


5. Duke Power Company


Duke Power Company (Duke), tenderedfor filing a Service Agreement forMarket Rate (Schedule MR) Salesbetween Duke and Calpine PowerService.


6. Central Illinois Public ServiceCompany


Central Illinois Public Service Company(CIPS), submitted a service agreement,dated July 19, 1996, establishing LG&EPower Marketing, Inc. (LG&E) as acustomer under the terms of CIPS’ OpenAccess Transmission Tariff.

CIPS requests an effective date of July19, 1996 for the service agreements.Accordingly, CIPS requests waiver ofthe Commission’s notice requirements.Copies of this filing were served uponLG&E and the Illinois CommerceCommission.


7. Southern Indiana Gas & ElectricCompany


Southern Indiana Gas & ElectricCompany (SIGECO), filed its proposedWholesale Power Sales Tariff. Theproposed tariff would allow SIGECO tosell capacity and energy to eligiblecustomers at market-based rates.


8. PacifiCorp


PacifiCorp, tendered for filing inaccordance with 18 CFR Part 35 of theCommission’s Rules and Regulations, acopy of the fully executed PowerMarketing and Resource ManagementService Agreement (Agreement) datedJuly 26, 1996 between PacifiCorp andDeseret Generation & TransmissionCooperative.

PacifiCorp requests that theCommission grant a waiver of priornotice pursuant to 18 CFR 35.11 of theCommission’s Rules and Regulationsand that an effective date of July 26,1996 be assigned to the Agreement.

Copies of this filing were supplied tothe Public Utility Commission ofOregon and the Public ServiceCommission of Utah.

A copy of this filing may be obtainedfrom PacifiCorp’s RegulationAdministration Department’s BulletinBoard System through a personalcomputer by calling (502) 464–0122(9600 baud, 8 bits, no parity, 1 stop bit).


9. Ohio Power Company


American Electric Power ServiceCorporation (AEPSC), on behalf of OhioPower Company (OPCO), tendered forfiling a borderline agreement, datedMarch 27, 1996, between OPCO and theOhio Edison Company (OE). Thisagreement provides for OPCO to deliverpower and energy to the distributionsystem of OE, under a state approvedretail rate, for resale by OE to end-usecustomers in the immediate vicinity ofMyers Lake. The parties have requestedan effective date of July 17, 1996.

A copy of the filing was served uponOE and the Public Utility Commissionof Ohio.


10. Louisville Gas and ElectricCompany


Louisville Gas and Electric Company(LG&E), tendered for filing a letter fromthe Executive Committee of the WesternSystems Power Pool (WSPP) indicatingthat it had approved LG&E’s applicationfor good membership. LG&E requeststhat the Commission amend the WSPPAgreement to include it as a member.

LG&E requests an effective date ofAugust 13, 1996, for the proposedamendment. Accordingly, LG&Erequests waiver of the Commission’snotice requirements for good causeshown.

Copies of the filing were served uponthe WSPP Executive Committee.

Comment date: Septmeber 9, 1996, inaccordance with Standard Paragraph Eat the end of this notice.

11. Portland General Electric Company


Portland General Electric Company(PGE), tendered for filing under FERCElectric Tariff, 1st Revised Volume No.2, an executed Service Agreementbetween PGE and City of Shasta Lake.


Pursuant to 18 CFR 35.11 and theCommission’s order issued July 30, 1993(Docket No. PL93–2–002). PGErespectfully requests the Commissiongrant a waiver of the noticerequirements of 18 CFR 35.3 to allowthe executed Service Agreement tobecome effective August 1, 1996.

Copies of this filing were served uponCity of Shasta Lake.


12. Delmarva Power & Light Company


Delmarva Power & Light Company(Delmarva), tendered for filing a serviceagreement providing for non-firm point-to-point transmission service from timeto time to the City of Dover pursuant toDelmarva’s open access transmissiontariff. Delmarva asks that theCommission set an effective date for theservice agreement of July 23, 1996, thedate on which it was executed.


Standard ParagraphE. Any person desiring to be heard or

to protest said filing should file amotion to intervene or protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with Rules 211and 214 of the Commission’s Rules ofPractice and Procedure (18 CFR 385.211and 18 CFR 385.214). All such motionsor protests should be filed on or beforethe comment date. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection.Lois D. Cashell,Secretary.[FR Doc. 96–22350 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–P

[Docket No. QF88–438–003]

Warbasse-Cogeneration TechnologiesPartnership L.P.; Notice of Amendmentto Filing

August 27, 1996.On August 21, 1996, Warbasse-

Cogeneration Technologies PartnershipL.P. tendered for filing a supplement toits filing in this docket.

The supplement pertains to thetechnical aspects of the facility. Nodetermination has been made that thesubmittal constitutes a complete filing.

Any person desiring to be heard orobjecting to the granting of qualifyingstatus should file a motion to interveneor protest with the Federal EnergyRegulatory Commission, 888 FirstStreet, N.E., Washington, D.C. 20426, inaccordance with rules 211 and 214 ofthe Commission’s Rules of Practice andProcedure. A motion or protest must befiled within 15 days after the date ofpublication of this notice and must beserved on the applicant. Protests will beconsidered by the Commission indetermining the appropriate action to betaken but will not serve to makeprotestants parties to the proceeding. Aperson who wishes to become a partymust file a petition to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection.Lois D. Cashell,Secretary.[FR Doc. 96–22318 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M

[Project No. 2210–010]

Appalachian Power Company; Noticeof Availability of EnvironmentalAssessment

August 27, 1996.

An environmental assessment (EA) isavailable for public review. The EA isfor an application to amend the licensefor the Smith Mountain HydroelectricProject. The application is to: (1) Makean administrative correction to theproject’s licensed installed capacity; and(2) upgrade two turbine runners at theproject’s Smith Mountain Powerhouse.The EA finds that approval of theapplication would not constitute amajor federal action significantlyaffecting the quality of the humanenvironment. The Smith MountainHydroelectric Project is located on theRoanoke River in Bedford, Franklin,Pittsylvania, Cambell, and RoanokeCounties, Virginia.

The EA was written by staff in theOffice of Hydropower Licensing,Federal Energy Regulatory Commission.Copies of the EA can be viewed at theCommission’s Reference andInformation Center, Room 2A, 888 FirstStreet, N.E., Washington, D.C. 20426.Copies can also be obtained by calling

the project manager, John Mudre, at(202) 219–1208.Lois D. Cashell,Secretary.[FR Doc. 96–22301 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


Egan Hub Partners, L.P.; Errata Noticeto Notice of Availability of theEnvironmental Assessment for theProposed Egan Gas StorageExpansion Project

August 27, 1996.The comment expiration date of

September 23, 1996 should be replacedwith September 18, 1996, in the noticeissued August 19, 1996 (61 FR 43539,August 23, 1996), and in the lettertransmitting the environmentalassessment in Docket No. CP96–199–000 to the parties addressed.Lois D. Cashell,Secretary.[FR Doc. 96–22317 Filed 8–30–96; 8:45 am]BILLING CODE 6717–01–M


[FRL–5604–6]

Proposed Partial Consent Decree,Clean Air Act Petition Citizen Suit

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice of proposed partialconsent decree; request for publiccomment.

SUMMARY: In accordance with section113(g) of the Clean Air Act, as amended(‘‘Act’’), notice is hereby given of aproposed partial consent decree in thefollowing case: Sierra Club v. Carol M.Browner, and U.S. EnvironmentalProtection Agency, No. 96–436 (D.C.);(consolidated with No. 95–1747). Thisaction was filed under section 304(a)(2)of the Act, 42 U.S.C. 7604(a)(2),contesting among other matters EPA’sfailure to promulgate regulationscontaining standards applicable toemissions from new locomotives andnew locomotive engines pursuant tosection 213(a)(5) of the Act.

For a period of thirty (30) daysfollowing the date of publication of thisnotice, the Agency will receive writtencomments relating to the proposedpartial consent decree from persons whowere not named as parties orintervenors to the litigation in question.EPA or the Department of Justice maywithhold or withdraw consent to the


proposed decree if the commentsdisclose facts or circumstances thatindicate that such agreement isinappropriate, improper, inadequate, orinconsistent with the requirements ofthe Act.

A copy of the proposed partialconsent decree is available from PhyllisJ. Cochran, Air and Radiation Division(2344), Office of General Counsel, U.S.Environmental Protection Agency, 401M Street, S.W., Washington, D.C. 20460,(202) 260–7606. Written commentsshould be sent to John T. Hannon, Esq.at the above address and must besubmitted on or before October 3, 1996.

Dated: August 19, 1996.Scott C. Fulton,Acting General Counsel.[FR Doc. 96–22379 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–M

[FRL–5602–7]

Common Sense Initiative Council(CSIC)

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notification of public advisoryCSIC Computers and Electronics SectorSubcommittee meeting; Common SenseInitiative Council meeting; and CSICMetal Finishing and Iron and SteelSector Subcommittee meetings; openmeetings.

SUMMARY: Pursuant to the FederalAdvisory Committee Act, Public Law92–463, notice is hereby given that theCSIC Computers and Electronics SectorSubcommittee, the Common SenseInitiative Council, and the MetalFinishing and Iron and Steel SectorSubcommittees of the Common SenseInitiative Council, will meet on thedates and times described below. Allmeetings are open to the public. Seatingat all four meetings will be on a first-come basis and limited time will beprovided for public comment. Forfurther information concerning specificmeetings, please contact the individualslisted with the Council and three SectorSubcommittee announcements below.

(1) Computers and Electronics SectorSubcommittee—September 17 and 18,1996

Notice is hereby given that theEnvironmental Protection Agency willhold an open meeting of the Computersand Electronics Sector Subcommittee onTuesday, September 17, 1996, from 8:30a.m. EDT to 5:00 p.m., EDT, andWednesday, September 18, 1996, from8:30 a.m. EDT to 3:00 p.m. EDT, at theOne Washington Circle Hotel, One

Washington Circle, NW, Washington,DC 20037.

The first day of the meeting,September 17, will be devoted partly tobreakout sessions for the threesubcommittee workgroups (Reportingand Public Access to Information;Overcoming Barriers to PollutionPrevention, Product Stewardship, andRecycling; and Integrated andSustainable Alternative Strategies forthe Electronics Industry) and partly toplenary session. The second day,September 18, will also consist of bothworkgroup and plenary sessions. Overthe course of the two days, theSubcommittee will be discussingongoing reporting reinvention projects,management of the end of life ofconsumer electronic products, and thedevelopment of pilots to test alternativeregulatory strategies. Opportunity forpublic comment on major issues underdiscussion will be provided at intervalsthroughout the meeting.

For further information concerningthis meeting of the Computers andElectronics Sector Subcommittee, pleasecontact Gina Bushong at 202–260–3797,Fax 202–260–1096, or by mail at USEPA (MC 7405), 401 M Street, SW,Washington, DC 20460; Mark Mahoney,Region 1, US EPA at 617–565–1155; orDavid Jones, Region 9, US EPA at 415–744–2266.

(2) Common Sense Initiative Council—September 19 and 20, 1996

Notice is hereby given that theEnvironmental Protection Agency willhold an open meeting of the CommonSense Initiative Council on Thursday,September 19, 1996 from 12:30 p.m.EDT, to 5:30 p.m. EDT and on Friday,September 20, 1996, from 8:30 a.m. EDTto 1:00 p.m. EDT. The meeting will beheld at the Dupont Plaza Hotel, 1500New Hampshire Avenue, N.W.,Washington, DC 20036. The telephonenumber is 202–483–6000.

The Council agenda will focus on avariety of topics including: Updates onactions taken since the June 1996Council Meeting and the CSI budget; thePresident’s Council on SustainableDevelopment; One Stop ReportingGuide; economic assessments relating toenvironmental regulations; andcommunity involvement/outreach. Inaddition, the Iron and Steel, AutomobileManufacturing, and Printing SectorSubcommittees will make presentationsto the Council on examples of theirprojects that are addressing communityinvolvement/outreach. Presentationswill also be given by the MetalFinishing Sector on their National GoalsProject; the Petroleum Sector on OneStop Reporting and the Computers and

Electronics sector on managing End ofLife issues for Computer and ElectronicEquipment.

For further information concerningthis meeting of the Common SenseInitiative Council, please contactPrudence Goforth, Designated FederalOfficer (DFO) on (202) 260–7417, or bye-mail [email protected].

(3) Metal Finishing SectorSubcommittee—September 25 and 26,1996

Notice is hereby given that theEnvironmental Protection Agency willhold an open meeting of the MetalFinishing Sector Subcommittee onWednesday, September 25 andThursday, September 26, 1996, fromapproximately 9:00 a.m. EDT to 4:00p.m. EDT., and will include breakoutsessions for the sector subcommitteeworkgroups. The meeting will be held atthe Hyatt Regency Hotel, (Crystal City)2799 Jefferson Davis Highway,Arlington, VA 22202. The telephonenumber is 703–418–1234.

The Metal Finishing SectorSubcommittee anticipates focusing on anumber of topics including: theStrategic Goals Project; the StrategicResearch Plan, the Tier 4 targetedenforcement project; and the Tier 3environmentally responsible sitetransition case studies. The topics ofdiscussion are subject to change;however, an agenda will be available inmid-September.

For further information concerningmeeting times and agenda of the MetalFinishing Sector Subcommittee, pleasecontact Bob Benson, DFO, at 202–260–8668 in Washington, DC, or e-mail himat benson.robert @ epamail.epa.gov.

(4) Iron and Steel SectorSubcommittee—September 26, 1996

Notice is hereby given that theEnvironmental Protection Agency willhold an open meeting of the Iron andSteel Sector Subcommittee onThursday, September 26, 1996. Themeeting will begin at 8:00 a.m. CDT andwill run until 4:00 p.m. CDT. Themeeting will be held at the MetcalfFederal Building, Great LakesConference Center, 12th floor, 77 WestJackson Boulevard, Chicago, Illinois60604. Picture identification will berequired for entry into the building.

The Iron and Steel SectorSubcommittee has created four workgroups which are responsible forproposing to the full Subcommittee, forits review and approval, potentialactivities or projects that the Iron andSteel Sector Subcommittee willundertake, and for carrying out projects


once approved. The subcommittee hasapproved nine projects (Brownfields,Consolidated Multi-media Reporting,Alternative Compliance Strategy, Ironand Steel Web Site, Barriers to the Useof Innovative Technology, Spent PickleLiquor Conference, Multi-mediaPermitting, Permit Issues, andCommunity Involvement). The purposeof this meeting is to discuss the statusof these projects and to review anyrecommendations that the workgroupspropose. Additionally, thesubcommittee will be discussing thestatus of an effort to analyze compliancedata and of a potential self-evaluationand EPA will give a brief presentationon its current activities regulating airparticulates and potential revisions tothe existing standard. TheSubcommittee’s four workgroups willmeet the preceding day, Wednesday,September 25, 1996, fromapproximately 10:00 a.m. CDT to 5:00p.m. CDT at the Metcalf Building.

For further information concerningthis Iron and Steel Sector SubcommitteeMeeting, please call either Ms. JudithHecht at 202–260–5682 in Washington,DC., or by e-mail [email protected] OF SUBCOMMITTEEDOCUMENTS: Documents relating to theabove Sector Subcommitteeannouncements, will be publiclyavailable at the meeting. Thereafter,these documents, together with theofficial minutes for the meetings, will beavailable for public inspection in room2821M of EPA Headquarters, CommonSense Initiative Staff, 401 M Street, SW,Washington, DC 20460, telephonenumber 202–260–7417. Common SenseInitiative information can be accessedelectronically through contactingKatherine Brown [email protected].

Dated: August 26, 1996.Prudence Goforth,Designated Federal Officer.[FR Doc. 96–22385 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–P

[FRL–5604–5]

Public Meetings of the Urban WetWeather Flows Advisory Committee,the Storm Water Phase II AdvisorySubcommittee, and the Sanitary SewerOverflow Advisory Subcommittee

AGENCY: Environmental ProtectionAgency.ACTION: Notice.

SUMMARY: Notice is given that theEnvironmental Protection Agency (EPA)is convening separate public meetings

for the Urban Wet Weather Flows(UWWF) Advisory Committee; theStorm Water Phase II AdvisorySubcommittee; and the Sanitary SewerOverflow (SSO) AdvisorySubcommittee. These meetings are opento the public without need for advanceregistration. The UWWF AdvisoryCommittee will continue discussions ofissues related to monitoring, watershedframework, storm water effluentlimitations, no exposure, physicalimpacts, and water quality standards ina wet weather context. The Storm WaterPhase II Advisory Subcommittee willcontinue discussions on issuesconcerning the framework for Phase IIimplementation. The SSO AdvisorySubcommittee will continue discussionson key issues and the overall SSOstrategy.

DATES:(1) Urban Wet Weather Flows (UWWF)

Advisory Committee:• September 26–27, 1996• November 18–19, 1996

(2) Storm Water Phase II AdvisorySubcommittee:

• October 17–18, 1996• December 12–13, 1996

(3) Sanitary Sewer Overflow AdvisorySubcommittee:

• September 9–10, 1996• October 21–22, 1996 (tentative)The UWWF Advisory Committee

meetings will begin at 10 a.m. EST andend at approximately 5:30 p.m. On thesecond day, the meetings will run from8:00 a.m. until 3:30 p.m. The StormWater Phase II meeting will begin at9:00 a.m. EST and end at approximately5:30 p.m. On the second day, themeeting will begin at 9:00 a.m. and endat approximately 4:30 p.m. The SSOAdvisory Subcommittee meetings willbegin at 10:00 a.m. EST and end atapproximately 5:00 p.m. On the secondday, the meetings will begin at 8:30 a.m.and end at approximately 4:00 p.m. Adecision will be made at the SeptemberSSO meeting on the necessity of holdingthe October 21–22 meeting. If thedecision is made to not hold the Octobermeeting, a notice of cancellation will bepublished in the Federal Register by theend of September.ADDRESSES: All meetings will be held atthe Holiday Inn Historic-District, 625First Street, Alexandria, Virginia. TheHoliday Inn’s telephone number is (703)548–6300.

FOR FURTHER INFORMATION CONTACT:For the UWWF Advisory Committee

meeting, contact Will Hall, Office ofWastewater Management, at (202)260–1458, or Internet:[email protected]

For the Phase II Subcommittee meeting,contact Sharie Centilla, Office ofWastewater Management, at (202)260–6052 or Internet:[email protected]

For the SSO meeting, contact CharlesVanderlyn, Office of WastewaterManagement, at (202) 260–7277 orInternet:[email protected]

Dated: August 21, 1996.Alfred W. Lindsey,Deputy Director, Office of WastewaterManagement Designated Federal Official.[FR Doc. 96–22380 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–M

[FRL–5604–3]

Southern Crop Site; AmendmentNotice of Proposed PurchaserAgreement

Notice is hereby given that a proposedprospective purchaser agreementassociated with Southern CropSuperfund Site in Palm Beach, Floridahas been approved by the Agency andby the Department of Justice. TheProspective Purchaser Agreement wouldresolve certain potential EPA claimsunder Sections 106 and 107 of theComprehensive EnvironmentalResponse, Compensation and LiabilityAct of 1980, as Amended by theSuperfund Amendments andReauthorization Act of 1986(‘‘CERCLA’’), against John McCrocklin,the prospective purchaser (‘‘thepurchaser’’). The Settlement wouldrequire the purchaser to pay to EPA thesum of $150,000.00 within 120 calendardays of the effective date of theAgreement, provide EPA access to theSite, and place certain deed restrictionson the property. EPA will considerpublic comments on the proposedagreement for thirty (30) days. EPA maywithdraw from or modify the proposedpurchaser agreement should suchcomments disclose facts orconsiderations which indicate theproposed agreement is inappropriate,improper, or inadequate. Copies of theagreement are available from: Paula V.Batchelor, U.S. EnvironmentalProtection Agency, Region 4, WasteManagement Division, 345 CourtlandStreet, N.E., Atlanta, Georgia 30365,404/347–5059, vmx. 6169.

Written comments must be submittedto Ms. Batchelor at the above addresswithin thirty (30) days from the date ofpublication.


Dated: August 21, 1996.James S. Kutzman,Acting Director, Waste Management Division.[FR Doc. 96–22383 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–M

[FRL–5602–9]

Notice of Proposed AdministrativeSettlement Pursuant to theComprehensive EnvironmentalResponse, Compensation, and LiabilityAct

AGENCY: Environmental ProtectionAgency.ACTION: Notice; request for publiccomment.

SUMMARY: In accordance with Section122(i) of the ComprehensiveEnvironmental Response,Compensation, and Liability Act, asamended (‘‘CERCLA’’), 42 U.S.C.§ 9622(i), notice is hereby given of aproposed administrative settlementconcerning the Marco of Iota SuperfundSite in Iota, Louisiana, with the settlingparties referenced in the SupplementaryInformation portion of this Notice.

The settlement requires the settlingparties to pay $1,081,025.69 to theHazardous Substances Superfund. Thesettlement is designed to resolve fullythe de minimis and de micromis settlingparties’ liability at the site through acovenant not to sue under Sections 106and 107 of CERCLA, 42 U.S.C. §§ 9606and 9607, and Section 7003 of theResource Conservation and RecoveryAct, 42 (‘‘RCRA’’), U.S.C. § 6973, and toresolve the past liabilities of the settlingnon-de minimis/de micromis partiesunder Section 107 of CERCLA, 42 U.S.C.§ 9607.

For thirty (30) days following the dateof publication of this notice, the Agencywill receive written comments relatingto the settlement. The Agency willconsider all comments received andmay modify or withdraw its consent tothe settlement if comments receiveddisclose facts or considerations whichindicate that the settlement isinappropriate, improper, or inadequate.The Agency’s response to any commentsreceived will be available for publicinspection at 1445 Ross Avenue, Dallas,Texas, 75202–2733. Commenters mayrequest an opportunity for a publicmeeting in the affected area inaccordance with Section 7003(d) ofRCRA, 42 U.S.C. § 6973(d).DATES: Comments must be submitted onor before October 3, 1996.ADDRESSES: The proposed settlementand additional background informationrelating to the settlement are available

for public inspection at 1445 RossAvenue, Dallas, Texas, 75202–2733. Acopy of the proposed settlement may beobtained from Carl Bolden, 1445 RossAvenue, Dallas, Texas, 75202–2733 at(214) 665–6713. Comments shouldreference the Marco of Iota SuperfundSite in Iota, Louisiana, and EPA DocketNo. 6–22–95, and should be addressedto Carl Bolden at the address listedabove.FOR FURTHER INFORMATION CONTACT: JohnDugdale, 1445 Ross Avenue, Dallas,Texas, 75202–2733 at (214) 665–8027.

SUPPLEMENTARY INFOMATION:

3M (Minnesota Mining & ManufacturingCompany)

Acadian Shipyard, IncAero Technologies, Inc.Agrico Chemical Company (IMC Agrico)Agrolinz, Inc.Airco, Inc. (The BOC Group, Inc.)Alamo Heights I.S.D.Alumax, Inc. (Alumax Mill Products,

Inc.)Alza CorporationAmericoldAmeritech ServicesAmpad CorporationBaton Rouge Machine WorksBFI (Browning-Ferris Industries

Chemical Services)Brown & McKenzie, Inc.Butterfield Building SupplyButtes Resources (Reunion Energy

Company)C. Thomas Pearson, Jr.C.M.I/Megahertz Corp. (Component

Manufacturing, Inc.)Cardiopulmonics, Inc. (InnerDyne, Inc.)CBS MeteringCentral Detroit Diesel-Allison, Inc.Central Park ApartmentsCentral Washington UniversityChemical Waste Disposal CorporationChevron U.S.A., Inc.Citgo Petroleum CorporationCities Service CompanyCities Service Trading CompanyColumbia Gulf Transmissions

(Columbia Gulf TransmissionCompany)

Commonwealth of KentuckyConoco, Inc.Continental Grain Rail Shop

(Continental Grain Company)Continental-COF (Continental Grain

Company)Cook Composites & PolymersCooper Industries, Inc.Core Labs (Western Atlas International,

Inc.)Crown Zellerbach (Hanson Natural

Resources Company)Cummins & Walker Oil Co., Inc.Dearborn Chemical Company (W.R.

Grace & Co.-Conn’s. Dearborn Unit)Delgado Community College

Diamond Shamrock (Maxus EnergyCorporation)

Dresser IndustriesDupre Transport, Inc.Dynamic Exploration, Inc.Eastern Washington UniversityEastman Christensen (Baker Hughes)Edmonds District Community CollegeEimco Process Equipment Company

(Baker Hughes)Empak, Inc.Enron Oil Trading and Transportation

Company (EOTT Energy OperatingLtd. Ptrshp.)

ENSCOEnvironmental Specialists, Inc.Everco IndustriesExchange PartsExxon Co. USA (Exxon Corporation)FaKouri Construction Company, Inc.Fashion TechFirestone Tire & Rubber (Bridgestone/

Firestone, Inc.)Fisher Scientific CompanyFlexel, Inc.Florida Gas (Enron Corporation)Freeport Oil Company/Freeport-

McMoran (Crescent Technology, Inc.)G&B Oil ProductsGem Seal of Texas, Inc.GenmarkGeorgia Institute of TechnologyGeorgia-Pacific CorporationGMAC (General Motors Corporation)Good Nature Laboratory (Nestle USA,

Inc.)Goodrich Oil Company (Brammer

Engineering, Inc.)Great Western ManufacturingGulf States Utilities Company (Entergy

Services, Inc.)Hayward Unified School DistrictHESCO (Laidlaw Environmental

Services)HistotecHoly Cross HospitalHouston Oil & Minerals CorporationHoyt, U.S.A.Hughes Tool Division (Baker Hughes)Hunt Oil Co.Immunex CorporationIndependent VWIndustrial SolventsInspectorate America CorporationInternational Oilfield Services/Petrotest,

Inc.J.M. Huber CorporationJohn W. McGowan (McGowan Working

Partners)Johnson Controls, Inc.Kansas City Kansas Community CollegeKennedy Print Shop, Inc.Lases Company, Inc.Lee Scientific (Dionex Corporation)Leger Production Company, Inc.Lig Liquids CorporationLouisiana Department of Corrections

(Dept. Of Public Safety & Corrections)Louisiana State University (L.S.U.)


Louisiana Department of Wildlife andFisheries

L.S.U. Dental SchoolL.S.U. Medical CenterLubriport Laboratories, Inc.Lucas Western, Inc.Marathon Oil Co./Marathon Petroleum

Co.Master Well Works, Inc.Melamine Chemicals, Inc.Merrill Bean ChevroletMetricor (Corning, Inc.)Metro Environmental LaboratoryMetro Transit Power DistributionMetro West Point Treatment PlantMetropolitan Water District of Salt Lake

CityMissouri Southern State CollegeMountain States AnalyticalMultichemical Products, Inc.Natchez Boat Store (Canal Barge

Company, Inc.)New Orleans Spice Co. LabsNewark Unified School DistrictNorth Seattle Community CollegeNortheast Louisiana UniversityNPI (Agridyne)Nuclear Sources & ServicesOccidental Chemical Corporation

(OxyChem)Oregon Regional Primate CenterOur Lady of the Lake Medical CenterOxwell, Inc.Packard Instrument CompanyPATCO (Port Arthur Towing Company)Pepperidge Farm, Inc.Pepsi Cola Bottling of OgdenPeterson/Puritan, Inc. (CCL Custom

Manufacturing)Petrofunds, Inc.Petroleum Stripping, Inc.Phillips 66 Company (Phillips

Petroleum Company)Phillips Philtex (Phillips Petroleum

Company)Physio-Control Corporation (Eli Lilly &

Company)Placid Refining CompanyPlantation Pipe Line CompanyPlaza Point InvestmentPortland State UniversityProvidence Medical Center Hospital

(Sisters of Providence)Puget Sound Power & Light CompanyRayne City HallRent-It Center, Inc.Rexene Products Co./El Paso Products

Company (Rexene Corporation)Safelite Industries (Safelite Glass Corp.)Salt Lake CitySears, Roebuck and Co.Sherwin-Williams CompanySmith Flooring, Inc.South Seattle Community CollegeSouthern Research InstituteSouthern University, Baton Rouge, and

Southern University, New OrleansSouthwall TechnologiesSpell Brothers Trucking

St. Tammany Parish HospitalSterling Drug Co. (Sterling Winthrop,

Inc.)Tenneco Oil CompanyTennessee Gas Pipeline (Tenneco

Energy)Texas City Refining, Inc.Texas Eastern Transmission CorporationTexas Gas Transmission CorporationTexas Southern UniversityTexas Tech UniversityThe Woodlands Technology Center

(Pennzoil Company)Tidewater Marine, Inc.Transco/Transcontinental Gas Pipe Line

CorporationTrumbull Asphalt (Owens-Corning)U.S. Post OfficeUniversity of AlabamaUniversity of ArkansasUniversity of California, RiversideUniversity of HoustonUniversity of South AlabamaUniversity of Southern MississippiUniversity of TexasUniversity of UtahUtah Correctional IndustriesUtah Correctional InstituteUtah State UniversityVarian Associates, Inc.Virginia Mason Hospital (Virginia

Mason Medical Center)Washington State Department of

TransportationWelchem, Inc. (Amoco Corporation)Westlake Polymers CorporationWeyerhaeuser Technology CenterWil-Cor, Inc.Wilson Supply Co./Wilson Industries,

Inc.Xavier University of Louisiana

Dated: August 22, 1996.Jane N. Saginaw,Regional Administrator.[FR Doc. 96–22384 Filed 8–30–96; 8:45 am]BILLING CODE 6560–50–P

EXPORT-IMPORT BANK OF THEUNITED STATES

Notice of Open Special Meeting of theAdvisory Committee of the Export-Import Bank of the United States

SUMMARY: The Advisory Committee wasestablished by Pub. L. 98–181,November 30, 1983, to advise theExport-Import Bank on its programs andto provide comments for inclusion inthe reports of the Export-Import Bank tothe United States Congress.

Time and Place: Thursday, September 26,1996, at 9:30 a.m. to 12:00 noon. The meetingwill be held at EX-IM Bank in Room 1143,811 Vermont Avenue, N.W., Washington,D.C. 20571.

Agenda: The meeting agenda will includea discussion of the following: Reports from

the 3 Working Groups, Discussion on GAOIdeas, Next Steps and other topics.

Public Participation: The meeting will beopen to public participation; and the last 10minutes will be set aside for oral questionsor comments. Members of the public mayalso file written statement(s) before or afterthe meeting. In order to permit the Export-Import Bank to arrange suitableaccommodations, members of the public whoplan to attend the meeting should notifyJoyce Herron, Room 1215, 811 VermontAvenue, N.W., Washington, D.C. 20571, (202)565–3503, not later than September 23, 1996.If any person wishes auxiliary aids (such asa sign language interpreter) or other specialaccommodations, please contact, prior toSeptember 26, 1996, Joyce Herron, Room1215, 811 Vermont Avenue, N.W.,Washington, DC 20571, Voice: (202) 565–3955 or TDD: (303) 565–3377.

FURTHER INFORMATION: For furtherinformation, contact Joyce Herron,Room 1215, 811 Vermont Avenue, N.W.,Washington, D.C. 20571, (202) 565–3503.Kenneth Hansen,General Counsel.[FR Doc. 96–22268 Filed 8–30–96; 8:45 am]BILLING CODE 6690–01–M

FEDERAL MARITIME COMMISSION

Notice of Agreement(s) Filed

The Federal Maritime Commissionhereby gives notice of the filing of thefollowing agreement(s) pursuant tosection 5 of the Shipping Act of 1984.

Interested parties may inspect andobtain a copy of each agreement at theWashington, D.C. Office of the FederalMaritime Commission, 800 NorthCapitol Street, N.W., 9th Floor.Interested parties may submit commentson each agreement to the Secretary,Federal Maritime Commission,Washington, D.C. 20573, within 10 daysafter the date of the Federal Register inwhich this notice appears. Therequirements for comments are found insection 572.603 of Title 46 of the Codeof Federal Regulations. Interestedpersons should consult this sectionbefore communicating with theCommission regarding a pendingagreement.

Agreement No.: 232–010786–008.Title: Contship Containerlines

Limited/Italia di Navigazione SPASpace Charter and Sailing Agreement.

Parties: Contship ContainerlinesLimited Italia di Navigazione S.P.A.

Synopsis: The proposed amendmentrevises Article 5.7 by deleting theAgreement’s authority to agree uponrates, rules, regulations and other tariffitems. It also deletes Article 5.8.

Agreement No.: 232–011553.


Title: CSAV/Nacional Space CharterAgreement.

Parties: Compania Sud Americana deVapores (‘‘CSAV’’) Companhia MaritimaNacional (‘‘Nacional’’).

Synopsis: The proposed Agreementpermits Nacional to charter space onCSAV’s vessels and coordinate sailingsin the trade between East Coast ports inSouth America and U.S. Atlantic Coastports and points.

Dated: August 28, 1996.By Order of the Federal Maritime

Commission.Joseph C. Polking,Secretary.[FR Doc. 96–22355 Filed 8–30–96; 8:45 am]BILLING CODE 6730–01–M

FEDERAL RESERVE SYSTEM

Change in Bank Control Notices;Acquisitions of Shares of Banks orBank Holding Companies

The notificants listed below haveapplied 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 the notices areset forth in paragraph 7 of the Act (12U.S.C. 1817(j)(7)).

The notices are available forimmediate inspection at the FederalReserve Bank indicated. Once thenotices have been accepted forprocessing, they will also be availablefor inspection at the offices of the Boardof Governors. Interested persons mayexpress their views in writing to theReserve Bank indicated for that noticeor to the offices of the Board ofGovernors. Comments must be receivednot later than September 17, 1996.

A. Federal Reserve Bank ofMinneapolis (Karen L. Grandstrand,Vice President) 250 Marquette Avenue,Minneapolis, Minnesota 55480:

1. Raye Plahn Revocable Trust(Trustee is Ms. Raye Plahn), both ofShell Lake, Wisconsin; to retain a totalof 10.52 percent of the voting shares ofShell Lake Bancorp, Inc., Shell Lake,Wisconsin, and thereby indirectlyacquire Shell Lake State Bank, ShellLake, Wisconsin.

B. Federal Reserve Bank of Dallas(Genie D. Short, Vice President) 2200North Pearl Street, Dallas, Texas 75201-2272:

1. Joe Dan Coe, Winnsboro, Texas; toretain a total of 14.09 percent of thevoting shares of Franklin NationalBankshares, Inc., Mt. Vernon, Texas,and thereby indirectly acquire FranklinNational Bank, Mt. Vernon, Texas.

Board of Governors of the Federal ReserveSystem, August 27, 1996.William W. WilesSecretary of the Board.[FR Doc. 96–22281 Filed 8–30–96; 8:45 am]BILLING CODE 6210–01–F


Centers for Disease Control andPrevention

Advisory Committee to the Director,Centers for Disease Control andPrevention: Meeting

In accordance with section 10(a)(2) ofthe Federal Advisory Committee Act(Pub. L. 92–463), the Centers for DiseaseControl and Prevention (CDC)announces the following committeemeeting.

Name: Advisory Committee to the Director,CDC.

Time and Date: 8:30 a.m.–3 p.m.,September 19, 1996.

Place: CDC, Auditorium A, 1600 CliftonRoad, NE, Atlanta, Georgia 30333.

Status: Open to the public, limited only bythe space available.

Purpose: This committee advises theDirector, CDC, on policy issues and broadstrategies that will enable CDC, the Nation’sprevention agency, to fulfill its mission ofpromoting health and quality of life bypreventing and controlling disease, injury,and disability. The Committee recommendsways to incorporate prevention activitiesmore fully into health care. It also providesguidance to help CDC work more effectivelywith its various constituents, in both theprivate and public sectors, to makeprevention a practical reality.

Matters to be Discussed: Agenda items willinclude updates from CDC Director, DavidSatcher, M.D., Ph.D., followed by committeediscussion on strategic thinking about thefuture of CDC and public health, and onlessons from the Los Angeles measles vaccinestudy.

Agenda items are subject to change aspriorities dictate.

Contact Person For More Information:Linda Kay McGowan, Acting ExecutiveSecretary, Advisory Committee to theDirector, CDC, 1600 Clifton Road, NE, M/SD–24, Atlanta, Georgia 30333, telephone 404/639–7080.

Dated: August 27, 1996.Carolyn J. Russell,Director, Management Analysis and ServicesOffice, Centers for Disease Control andPrevention (CDC).[FR Doc. 96–22333 Filed 8–30–96; 8:45 am]BILLING CODE 4163–18–M

Food and Drug Administration

[Docket No. 96E–0102]

Determination of Regulatory ReviewPeriod for Purposes of PatentExtension; CEDAX Capsules

AGENCY: Food and Drug Administration,HHS.ACTION: Notice.

SUMMARY: The Food and DrugAdministration (FDA) has determinedthe regulatory review period forCEDAX capsules and is publishingthis notice of that determination asrequired by law. FDA has made thedetermination because of thesubmission of an application to theCommissioner of Patents andTrademarks, Department of Commerce,for the extension of a patent whichclaims that human drug product.ADDRESSES: Written comments andpetitions should be directed to theDockets Management Branch (HFA–305), Food and Drug Administration,12420 Parklawn Dr., rm. 1–23,Rockville, MD 20857.FOR FURTHER INFORMATION CONTACT:Brian J. Malkin, Office of Health Affairs(HFY–20), Food and DrugAdministration, 5600 Fishers Lane,Rockville, MD 20857, 301–443–1382.SUPPLEMENTARY INFORMATION: The DrugPrice Competition and Patent TermRestoration Act of 1984 (Pub. L. 98–417)and the Generic Animal Drug and PatentTerm Restoration Act (Pub. L. 100–670)generally provide that a patent may beextended for a period of up to 5 yearsso long as the patented item (humandrug product, animal drug product,medical device, food additive, or coloradditive) was subject to regulatoryreview by FDA before the item wasmarketed. Under these acts, a product’sregulatory review period forms the basisfor determining the amount of extensionan applicant may receive.

A regulatory review period consists oftwo periods of time: A testing phase andan approval phase. For human drugproducts, the testing phase begins whenthe exemption to permit the clinicalinvestigations of the drug becomeseffective and runs until the approvalphase begins. The approval phase startswith the initial submission of anapplication to market the human drugproduct and continues until FDA grantspermission to market the drug product.Although only a portion of a regulatoryreview period may count toward theactual amount of extension that theCommissioner of Patents andTrademarks may award (for example,half the testing phase must be


subtracted as well as any time that mayhave occurred before the patent wasissued), FDA’s determination of thelength of a regulatory review period fora human drug product will include allof the testing phase and approval phaseas specified in 35 U.S.C. 156(g)(1)(B).

FDA recently approved for marketingthe human drug product CEDAXcapsules (ceftibuten dihydrate).CEDAX capsules is indicated for thetreatment of individuals with mild-to-moderate infections caused bysusceptible strains of the designatedmicroorganisms in the specificconditions: Acute BacterialExacerbations of Chronic Bronchitis dueto Haemophilus influenzae (includingB-lactamase-producing strains),Moraxella catarrhalis (including B-lactamase producing strains) orStreptoccocus pneumoniae (penicillin-susceptible strains only), AcuteBacterial Otitis Media due to H.influenzae (including B-lactamaseproducing strains), M. catarrhalis(including B-lactamase producingstrains), or S. pyogenes, or Pharyngitisand Tonsillitis due to S. pyogenes.Subsequent to this approval, the Patentand Trademark Office received a patentterm restoration application forCEDAX capsules (U.S. Patent No. 4,634,697) from Schering-Plough Corp.and the Patent and Trademark Officerequested FDA’s assistance indetermining this patent’s eligibility forpatent term restoration. In a letter datedApril 10, 1996, FDA advised the Patentand Trademark Office that this humandrug product had undergone aregulatory review period and that theapproval of CEDAX capsulesrepresented the first permittedcommercial marketing or use of theproduct. Shortly thereafter, the Patentand Trademark Office requested thatFDA determine the product’s regulatoryreview period.

FDA has determined that theapplicable regulatory review period forCEDAX capsules is 3,065 days. Of thistime, 1,603 days occurred during thetesting phase of the regulatory reviewperiod, while 1,462 days occurredduring the approval phase. Theseperiods of time were derived from thefollowing dates:

1. The date an exemption undersection 505(i) of the Federal Food, Drug,and Cosmetic Act (21 U.S.C. 355(i))became effective: August 1, 1987. Theapplicant claims August 2, 1987, as thedate the investigational new drugapplication (IND) became effective.However, FDA records indicate that theIND effective date was August 1, 1987,which was 30 days after FDA receipt ofthe IND.

2. The date the application wasinitially submitted with respect to thehuman drug product under section 507of the Federal Food, Drug, and CosmeticAct (21 U.S.C. 357): December 20, 1991.FDA has verified the applicant’s claimthat the new drug application (NDA) forCEDAX capsules (NDA 20–685) wasinitially submitted on December 20,1991.

3. The date the application wasapproved: December 20, 1995. FDA hasverified the applicant’s claim that NDA20–685 was approved on December 20,1995.

This determination of the regulatoryreview period establishes the maximumpotential length of a patent extension.However, the U.S. Patent andTrademark Office applies severalstatutory limitations in its calculationsof the actual period for patent extension.In its application for patent extension,this applicant seeks 1,826 days of patentterm restoration.

Anyone with knowledge that any ofthe dates as published is incorrect may,on or before November 4, 1996, submitto the Dockets Management Branch(address above) written comments andask for a redetermination. Furthermore,any interested person may petition FDA,on or before March 3, 1997, for adetermination regarding whether theapplicant for extension acted with duediligence during the regulatory reviewperiod. To meet its burden, the petitionmust contain sufficient facts to merit anFDA investigation. (See H. Rept. 857,part 1, 98th Cong., 2d sess., pp. 41–42,1984.) Petitions should be in the formatspecified in 21 CFR 10.30.

Comments and petitions should besubmitted to the Dockets ManagementBranch (address above) in three copies(except that individuals may submitsingle copies) and identified with thedocket number found in brackets in theheading of this document. Commentsand petitions may be seen in theDockets Management Branch between 9a.m. and 4 p.m., Monday throughFriday.

Dated: August 16, 1996.Stuart L. Nightingale,Associate Commissioner for Health Affairs.[FR Doc. 96–22285 Filed 8–30–96; 8:45 am]BILLING CODE 4160–01–F

Health Care Financing Administration

[BPD–842–NC]

RIN 0938–AH70

Medicare Program; Schedule ofProspectively Determined PaymentRates for Skilled Nursing FacilityInpatient Routine Service Costs

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Final notice with commentperiod.

SUMMARY: This final notice withcomment period sets forth the scheduleof payment rates for low Medicarevolume skilled nursing facilities forprospective payments for routineservice costs for Federal fiscal year 1997(cost reporting periods beginning on orafter October 1, 1996 and before October1, 1997). Section 1888(d) of the SocialSecurity Act requires the Secretary toestablish and publish the prospectivelydetermined payment rates 90 days priorto the beginning of the affected Federalfiscal year.DATES: Effective date: The schedule ofpayment rates is effective for costreporting periods beginning on or afterOctober 1, 1996.

Comment date: Written commentswill be considered if we receive them atthe appropriate address, as providedbelow, no later than 5:00 p.m. onNovember 4, 1996.ADDRESSES: Mail written comments (anoriginal and three copies) to thefollowing address: Health CareFinancing Administration, Departmentof Health and Human Services,Attention: BPD–842–NC, P.O. Box 7517,Baltimore, MD 21244–0517.

If you prefer, you may deliver yourwritten comments (an original and threecopies) to one of the followingaddresses: Room 309–G, Hubert H.Humphrey Building, 200 IndependenceAvenue, SW, Washington, DC 20201, orC5–09–26, 7500 Security Boulevard,Baltimore, MD 21244–1850.

Comments may also be submittedelectronically to the following e-mailaddress: BPD–842–[email protected]. E-mailcomments must include the full nameand address of the sender and must besubmitted to the referenced address inorder to be considered. All commentsmust be incorporated in the e-mailmessage because we may not be able toaccess attachments. Electronicallysubmitted comments will be availablefor public inspection at theIndependence Avenue address, below.

Because of staffing and resourcelimitations, we cannot accept commentsby facsimile (FAX) transmission. In


commenting, please refer to file codeBPD–842–NC. Comments receivedtimely will be available for publicinspection as they are received,generally beginning approximately 3weeks after publication of a document,in Room 309–G of the Department’soffices at 200 Independence Avenue,SW, Washington, DC, on Mondaythrough Friday of each week from 8:30a.m. to 5 p.m. (phone: (202) 690–7890).

Copies: To order copies of the FederalRegister containing this document, sendyour request to: New Orders,Superintendent of Documents, P.O. Box371954, Pittsburgh, PA 15250–7954.Specify the date of the issue requestedand enclose a check or money orderpayable to the Superintendent ofDocuments, or enclose your Visa orMaster Card number and expirationdate. Credit card orders can also beplaced by calling the order desk at (202)512–1800 or by faxing to (202) 512–2250. The cost for each copy is $8.00.As an alternative, you can view andphotocopy the Federal Registerdocument at most libraries designatedas Federal Depository Libraries and atmany other public and academiclibraries throughout the country thatreceive the Federal Register.FOR FURTHER INFORMATION CONTACT:Joseph Menning (410) 786–4594.


I. BackgroundSection 1888 of the Social Security

Act (the Act) sets forth the statutoryrequirements concerning Medicarepayments to skilled nursing facilities(SNFs) for their routine service costs forservices furnished to Medicarebeneficiaries. Most SNFs are paid on areasonable cost basis up to a scheduleof routine service per diem cost limitsestablished in accordance with thegeneral reasonable cost provisions ofsection 1861(v)(1) of the Act and thespecific SNF payment provisions ofsection 1888 of the Act. However, underthe provision at section 1888(d) of theAct, for cost reporting periods beginningon or after October 1, 1986, a SNF withfewer than 1,500 Medicare covered daysin a given cost reporting period maychoose to receive payment based on aprospectively determined payment ratein the subsequent cost reporting period.The prospectively determined paymentrates for low Medicare volume SNFs areestablished on a per diem basis andinclude payment for the cost offurnishing general inpatient routineservices and capital-related costsassociated with routine services.

The per diem amounts may notexceed the limit on routine service costs

set forth in section 1888(a) of the Actwith respect to the facility, adjusted totake into account average capital-relatedcosts with respect to the type andlocation of the facility. The limit usedfor this purpose is the applicableroutine service cost limit in effect whenthe provider elects to be paid under theprospectively determined paymentrates.

For SNFs located in an urban area, theprospectively determined paymentamount is equal to 105 percent of themean of the per diem reasonable routineservice and routine capital-related costsof services for SNFs in urban areaswithin the same census region. Themean per diem is determined withoutregard to the limitations of section1888(a) of the Act and is adjusted fordifferent area wage levels.

For SNFs located in a rural area, theprospectively determined paymentamount is equal to 105 percent of themean of the per diem reasonable routineservice and routine capital-related costsof covered services for SNFs in ruralareas within the same census region.The mean per diem is determinedwithout regard to the limitations ofsection 1888(a) of the Act and isadjusted for different area wage levels.

Prior to the enactment of the OmnibusBudget Reconciliation Act of 1993(OBRA 1993; Public Law 103–66), wepublished guidelines specifying themethodology and data used and theactual prospectively determinedpayment rates annually in the MedicareProvider Reimbursement Manual (HCFAPub. 15–1). The general requirementsfor the rates were included undersections 2820 and 2821 of the manualand the actual rates, the most recenteffective for Federal fiscal year 1993,were in section 2828 of the manual.

Section 13503(b) of OBRA 1993prohibited changes to the Federal fiscalyear 1993 prospectively determinedpayment rates paid under section1888(d) of the Act for services furnishedduring cost reporting periods beginningin Federal fiscal year 1994 and inFederal fiscal year 1995, except as maybe necessary to take into account theamendments made by section 13503(c).Section 13503(c) of OBRA 1993amended sections 1861(v)(1)(B) and1878(f)(2) of the Act by eliminatingreturn on owner’s equity for servicesfurnished on or after October 1, 1993.

On July 21, 1995, we published in theFederal Register a final rule (60 FR37590) that codified in the Code ofFederal Regulations the statutoryrequirements for the optionalprospectively determined paymentsystem for low Medicare volume SNFsand the guidelines on the methodology

and data used that were in the ProviderReimbursement Manual. Theseimplementing regulations, effective onAugust 21, 1995, appear at 42 CFR413.1, 413.24 and 413.300 through413.321.

Under the provisions of§ 413.312(a)(1), to calculate theprospectively determined paymentrates, we use the SNF cost data thatwere used to develop the applicableSNF inpatient routine service costlimits, a wage index to adjust for areawage differences, and the most recentprojections of increases in the costsfrom the SNF market basket (inflationfactors). Section 413.312(a)(2) providesthat we will announce in the FederalRegister the wage index and the annualpercentage increases in the marketbasket used in the calculation of therates. In addition, § 413.320 providesthat at least 90 days before thebeginning of a Federal fiscal year towhich revised prospectively determinedpayment rates are to be applied, HCFAwill publish a notice in the FederalRegister establishing the rates forroutine services and explaining thebasis on which the rates are calculated.

This notice announces the schedule ofpayment rates for prospective paymentsfor routine service costs in Federal fiscalyear 1997 (cost reporting periodsbeginning on or after October 1, 1996and before October 1, 1997) for lowMedicare volume SNFs that elect thismethod of payment. This noticerepresents the first schedule ofprospectively determined payment ratespublished in a Federal Register noticeafter the effective date of the July 1995implementing regulations. In addition,this notice includes the inflation factorsto update the routine service cost limitsapplicable for Federal fiscal year 1997,which are necessary to compute a SNF’sprospectively determined payment rate.

II. Update of the Schedule ofProspectively Determined PaymentRates

As mentioned earlier, the statuteprovided that both the SNF routineservice cost limits and the prospectivelydetermined payment rates be frozen atthe Federal fiscal year 1993 amounts forcost reporting periods beginning inFederal fiscal year 1994 and in Federalfiscal year 1995. As a result of theserates and limits remaining at the Federalfiscal year 1993 levels, the Medicareprogram experienced a savings inMedicare trust funds. We hadanticipated that, because of these prioryears’ savings, we would havelegislative support to preserve theseprogram savings for Federal fiscal year1996 and later. We expected to do this


by trending the Federal fiscal year 1993limits and rates to cost reporting periodsbeginning in Federal fiscal year 1996,except that the inflation factors forFederal fiscal year 1994 and Federalfiscal year 1995 would not be included.However, such legislation has not beenenacted. Therefore, in the interim forFederal fiscal year 1996, we providedthe Medicare intermediaries withupdated Federal fiscal year 1996 limitsand rates by trending the Federal fiscal1993 data to Federal fiscal 1996 byusing the projected inflation factors andthe methodology described in theOctober 7, 1992 Federal Register notice(57 FR 46177) that announced theFederal fiscal year 1993 limits(including the inflation factors forFederal fiscal years 1994 and 1995).

In addition, in May 1996, weprovided all Medicare intermediarieswith revisions to the Federal fiscal year1993 cost limits and prospectivelydetermined payment rates that reflectedcorrections to the projected inflationfactors used in the October 7, 1992notice. (An explanation of thecircumstances under which HCFAcorrects projected inflation factors is inthe October 7, 1992 notice (57 FR 46179through 46180).) These revised Federalfiscal year 1993 limits and rates werealso used to compute updated limitsand rates for cost reporting periodsbeginning in Federal fiscal year 1996.However, these revisions did not affectprospectively determined payment ratesissued before the May 1996 notificationto the intermediaries.

In developing the prospectivelydetermined payment rates effective withthis notice, we are using the basicmethodology and cost report dataspecified in § 413.312 of the regulations(and described in section 2828 of theProvider Reimbursement Manual). Wewill continue to use the same wageindexes and the same urban and ruraldesignations used to compute theFederal fiscal year 1993 cost limits andprospectively determined rates, asspecified in the October 7, 1992 FederalRegister notice and described in section2828 of the Provider ReimbursementManual, respectively. In addition, wewill continue to provide a per diem add-on to the prospectively determinedpayment rates to account for costsincurred by SNFs in complying with thenursing home reform provisionsspecified in section 1819 of the Act(enacted by OBRA 1987), including thecosts of conducting nurse aide trainingand competency evaluations, and forcosts associated with the OccupationalSafety and Health Administration(OSHA) universal precautionrequirements.

Tables I and II under section IV. ofthis notice contain the Federal fiscalyear 1997 prospectively determinedpayment rates. Table III under sectionIV. of this notice contains the Federalfiscal year 1997 routine service costlimits. Table IV under section IV. of thisnotice contains the monthly inflationfactors to be applied to full 12 monthcost reporting periods beginning inFederal fiscal year 1997.

III. Methodology for DeterminingProspectively Determined Per DiemPayment Rates

The schedule of rates set forth inTables I and II under section IV. of thisnotice applies to all SNFs that qualifyand request to receive the optionalprospective payment rate for routineservices under the provisions of subpartI of part 413. Under § 413.314(d), aSNF’s prospective payment rate,excluding capital-related costs, cannotexceed its actual routine service costlimit (without regard to exceptions,exemptions, or retroactive adjustments)in effect at the time of the election to bepaid a prospectively determinedpayment rate. The prospectivelydetermined payment rate is in place ofpayment that would otherwise be madefor routine service costs and associatedcapital-related costs under section1861(v) of the Act. There are noretroactive adjustments to these ratesand under § 413.308(c), an SNF may notrevoke its request to be paid under thisprovision after it has received the initialdetermination of eligibility from theintermediary and the cost reportingperiod has begun.

A. DataThe actual cost data used to develop

the prospectively determined paymentrates for cost reporting periodsbeginning in FY 1993 were obtainedfrom settled freestanding SNF Medicarecost reports for periods ending on orafter June 30, 1989, and through May 31,1990. Comparable data for hospital-based SNFs were obtained from settledMedicare cost reports for periods endingon or after October 31, 1988, andthrough September 30, 1989. We arecontinuing to use the same cost reportdata to develop the prospectivelydetermined payment rates in this notice.

B. Use of the Most Recent AvailableInflation Factors

We are continuing to use the SNFinput price market basket index(inflation factor) to adjust the cost reportdata to the initial cost reporting periodto which the prospectively determinedpayment rates apply. The inflationfactors are comprised of a ‘‘market

basket’’ of the most commonly usedcategories of SNF routine serviceexpenses. The categories used are basedprimarily on those used in the NationalCenter for Health Statistics in itsNational Nursing Home Surveys. Thecategories are weighted according to theestimated proportion of SNF routineservice cost attributable to eachcategory. The Appendix to this noticespecifies the weights used in eachcategory.

We are adjusting the cost report datadescribed above using the most recentavailable inflation factors shown below.These inflation factors are similar tothose used in the May 1996 notificationto the intermediaries described insection II. of this notice. These inflationfactors, representing the annualpercentage increases in the marketbasket over the previous year, are:1988 ..............................................................5.11989 ..............................................................6.61990 ..............................................................6.31991 ..............................................................4.41992 ..............................................................3.81993 ..............................................................3.71994 ..............................................................3.41995 ..............................................................2.91996 ..............................................................2.91997 ..............................................................3.21998 ..............................................................3.4

If a facility has a cost reporting periodbeginning in a month after October 1,1996, the intermediary increases theadjusted routine operating portion of therate that otherwise apply to the SNF bythe factor from Table IV of this noticethat corresponds to the month and yearin which the cost reporting periodbegins. Each factor represents thecompounded monthly increase derivedfrom the annual increase in the marketbasket index and is used to account forinflation in costs that occur after thedate on which the prospective paymentrates are effective.

If a facility uses a cost reportingperiod that is not 12 months induration, a special adjustment factorwill be calculated. This is necessarybecause market basket increases arecomputed to the midpoint of a costreporting period and the adjustmentfactors in Table IV of this notice arebased on an assumed 12-month costreporting period. For cost reportingperiods of other than 12 months, thecalculation is done for the midpoint ofthe specific cost reporting period. TheSNF’s intermediary obtains thisadjustment factor from HCFA centraloffice.

C. Use of Wage Index to Adjust Labor-Related Cost

We are continuing to use the hospitalindustry wage index to account for area


wage differences. We are continuing toapply the wage index to five categoriesof labor-related costs: wages, employeebenefits, health service costs, businessservice costs, and other miscellaneouscosts. The portion of labor-related costsremains at the level of 83.1 percent. Inaddition, the same wage index valuesand urban/rural designations, as shownin Tables V and VI of this notice, are tobe applied to the labor-related portion ofthe prospectively determined paymentrates in this notice. (These are the samewage index values and urban/ruraldesignations shown in the October 7,1992 cost limit notice and section 2828of the Provider ReimbursementManual.)

D. Use of Classification SystemWe will retain the classification

system based on grouping SNFs bycensus regions and by urban or ruralarea designation within the region. Asrequired by sections 1888(d)(3) and1886(d)(2)(D) of the Act, the term‘‘region’’ means one of the nine censusdivisions, comprising the fifty Statesand the District of Columbia,established by the Bureau of Census forstatistical and reporting purposes. Theterm ‘‘urban area’’ means an area withina Metropolitan Statistical Area (MSA)(as defined by the Office of Management

and Budget (OMB), with exceptions forcertain New England CountyMetropolitan Areas (NECMAs), asdescribed in a notice published in theFederal Register on April 1, 1991 (56 FR13319)). The term ‘‘rural area’’ means anarea outside of an MSA.

E. Use of OBRA 1987 and OSHA PerDiem Add-on

Section 1861(v)(1)(E) of the Actprovides for payment for costs incurredby SNFs in complying with the nursinghome reform provisions specified insection 1819 of the Act, including thecosts of conducting nurse aide trainingand competency evaluations (referred toas the OBRA 1987 nursing homereform). Since the cost report data usedin this notice does not account for thecosts of implementing the OBRA 1987nursing home reform provisions, wewill continue to provide a per diem add-on for these costs. In addition, we willcontinue to provide a per diem add-onfor the costs associated with theOccupational Safety and HealthAdministration (OSHA) universalprecaution requirements. A detaileddescription of the derivation of the perdiem add-on is contained in section2828 of the Provider ReimbursementManual. The amount of the OBRA/OSHA per diem add-on to determine

prospectively determined payment ratesfor cost reporting periods beginning inFederal fiscal year 1997 is $2.06. (Forcost limit purposes, the per diem add-on is $2.20 for Federal fiscal year 1997.)

F. Comparison of Provider’s ProspectivePayment Rate with Provider’s Cost Limit

Below is an example of thecalculation of the prospectivelydetermined payment rate for a providerincluding the comparison of theadjusted routine operating portion of therate with the applicable routineoperating cost limit applicable to thespecific provider. The capital-relatedcomponent of the rate is added to thelower of the SNF’s specific cost limit orits adjusted routine operating portion ofthe rate to arrive at the provider’s actualprospectively determined payment rate.

Example: In this case, the adjustedcost limit is less than the adjustedroutine operating portion of the rate fora freestanding SNF located inProvidence, Rhode Island (MSA Region1), with a cost reporting periodbeginning January 1, 1997. Therefore,the prospectively determined paymentrate for this SNF is the adjusted costlimit plus the capital-related componentof the rate ($126.12).

Labor-relat-ed compo-

nent

Non-laborrelated

component

Capital-re-lated com-

ponent

Limit (From Table III) ................................................................................................................................ $88.45 $18.99 ....................Rate (From Table I) .................................................................................................................................. $116.46 $22.21 $10.00

CALCULATION OF PROSPECTIVE PAYMENT RATE

Limit Rate Rate source

Labor-Related Component .............................................................................................................. $88.45 $116.46 (Table I).Wage Index ..................................................................................................................................... ×1.0630 ×1.0630 (Table V).Adjusted Labor Component ............................................................................................................ $94.02 $123.80 —Non-Labor Component .................................................................................................................... $18.99 22.21 (Table I).OBRA/OSHA Per Diem Add-on ...................................................................................................... +$2.20 +$2.06 (Sec III.E).Adjusted Limit/Rate ......................................................................................................................... $115.21 $148.07 —Cost Reporting Year Adjustment Factor ......................................................................................... ×1.00796 ×1.00796 (Table IV).Applicable Limit and Operating Rate Portion ................................................................................. $116.12 $149.25 —Capital-Related Component ............................................................................................................ +10.00 — (Table I).Prospectively Determined Payment Rate ....................................................................................... $126.12 — —

TABLE I.—PROSPECTIVE RATES—MSA LOCATIONS, EFFECTIVE FOR COST REPORTING PERIODS BEGINNING IN FY 1997

Region 1 Labor-relat-ed

Nonlabor-related

Capital-re-lated

1. New England (CT, ME, MA, NH, RI, VT) ............................................................................................ $116.46 $22.21 $10.002. Middle Atlantic (PA, NJ, NY) ................................................................................................................ 112.33 20.30 9.793. South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) .................................................................... 100.69 16.19 9.814. East North Central (IL, IN, MI, OH, WI) ............................................................................................... 95.68 15.90 9.185. East South Central (AL, KY, MS, TN) ................................................................................................. 96.25 14.16 7.326. West North Central (IA, KS, MN, MO, NB, ND, SD) ........................................................................... 102.64 17.05 10.237. West South Central (AR, LA, OK, TX) ................................................................................................ 89.81 14.03 10.06


TABLE I.—PROSPECTIVE RATES—MSA LOCATIONS, EFFECTIVE FOR COST REPORTING PERIODS BEGINNING IN FY 1997—Continued

Region 1 Labor-relat-ed

Nonlabor-related

Capital-re-lated

8. Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) .................................................................................... 106.86 18.25 13.049. Pacific (AK, CA, HI, OR, WA) .............................................................................................................. 97.24 19.93 8.40

1 There are 16 MSAs that have counties in two or more regions. For each of these MSAs, the region in which a majority of the SNFs are lo-cated determines the regional rate that is paid as shown below. This is the same methodology as that used to implement the requirements ofsection 1886(d)(2)(D) of the Act as they apply to the hospital prospective payment.

The MSAs are as follows:

MSA Region

Chattanooga, TN–GA .................................................................................................................................................................................... 5Cincinnati, OH–KY–IN ................................................................................................................................................................................... 4Columbus, GA–AL ......................................................................................................................................................................................... 3Davenport-Rock Island-Moline, IA–IL ............................................................................................................................................................ 4Duluth-Superior, MN–WI ................................................................................................................................................................................ 6Evansville-Henderson, IN–KY ........................................................................................................................................................................ 4Huntington-Ashland, WV–KY–OH ................................................................................................................................................................. 3Johnson City-Kingsport-Bristol, TN–VA ......................................................................................................................................................... 5Louisville, KY–IN ............................................................................................................................................................................................ 5Memphis, TN–AR–MS ................................................................................................................................................................................... 5Minneapolis-St. Paul, MN–WI ........................................................................................................................................................................ 6Parkersburg-Marietta, WV–OH ...................................................................................................................................................................... 3St. Louis, MO–IL ............................................................................................................................................................................................ 6Steubenville-Weirton, OH–WV ....................................................................................................................................................................... 4Wheeling, WV–OH ......................................................................................................................................................................................... 3Wilmington-Newark, DE–NJ–MD ................................................................................................................................................................... 3

TABLE II.—PROSPECTIVE RATES—NON-MSA LOCATIONS EFFECTIVE FOR COST REPORTING PERIODS BEGINNING IN FY1997

Region Labor-relat-ed

Nonlabor-related

Capital-re-lated

1. New England (CT, ME, MA, NH, RI, VT) ............................................................................................ $125.72 $20.96 $10.582. Middle Atlantic (PA, NJ, NY) ................................................................................................................ 117.44 16.86 7.943. South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) .................................................................... 111.02 15.09 9.194. East North Central (IL, IN, MI, OH, WI) ............................................................................................... 104.72 14.62 8.285. East South Central (AL, KY, MS, TN) ................................................................................................. 105.49 13.28 6.776. West North Central (IA, KS, MN, MO, NB, ND, SD) ........................................................................... 108.01 14.37 6.667. West South Central (AR, LA, OK, TX) ................................................................................................ 102.51 13.03 9.228. Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) .................................................................................... 107.03 15.69 8.369. Pacific (AK, CA, HI, OR, WA) .............................................................................................................. 119.77 20.11 10.16

TABLE III.—ROUTINE SERVICE COST LIMITS IN EFFECT FOR COST REPORTING PERIODS BEGINNING IN FEDERAL FISCALYEAR 1997

Provider type/locationLabor-relat-ed compo-

nent

Non-labor-related

component

OBRA/OSHA add-

ons

Freestanding: .................... .................... $2.20MSA ................................................................................................................................................... $88.45 $18.99Non-MSA ........................................................................................................................................... 89.81 15.16

Hospital based: .................... .................... 2.20MSA limit ........................................................................................................................................... 124.76 26.45Non-MSA limit ................................................................................................................................... 114.31 19.01


TABLE IV.—COST REPORTING YEARADJUSTMENT FACTORS 1 EFFECTIVEFOR COST REPORTING PERIODS BE-GINNING IN FY 1997

If an SNF cost reporting periodbegins:

The ad-justmentfactor is:

November 1, 1996 ........................ 1.00268December 1, 1996 ........................ 1.00528January 1, 1997 ............................ 1.00796February 1, 1997 .......................... 1.01083March 1, 1997 ............................... 1.01343April 1, 1997 ................................. 1.01631May 1, 1997 .................................. 1.01910June 1, 1997 ................................. 1.02200July 1, 1997 .................................. 1.02481August 1, 1997 ............................. 1.02773September 1, 1997 ....................... 1.03066

1 Based on compounded actual market bas-ket inflation rates of 3.70 percent for 1993,3.40 percent for 1994 and projected rates of2.90 percent for 1995, 2.90 percent for 1996,3.20 percent for 1997, and 3.40 percent for1998.

TABLE V—WAGE INDEX FOR URBANAREAS

Urban area (constituent countiesor county equivalents)

Wageindex

Abilene TX .................................... 0.9220Taylor, TX

Aguadilla, PR ................................ 0.4568Aguada, PRAguadilla, PRIsabella, PRMoca, PR

Akron, OH ..................................... 0.9493Portage, OHSummit, OH

Albany, GA .................................... 0.8050Dougherty, GALee, GA

Albany-Schenectady-Troy, NY ..... 0.8922Albany, NYGreene, NYMontgomery, NYRensselaer, NYSaratoga, NYSchenectady, NY

Albuquerque, NM .......................... 1.0123Bernalillo, NM

Alexandria, LA .............................. 0.8275Rapides, LA

Allentown-Bethlehem, PA–NJ ....... 0.9857Warren, NJCarbon, PALehigh, PANorthampton, PA

Altoona, PA ................................... 0.9238Blair, PA

Amarillo, TX .................................. 0.8739Potter, TXRandall, TX

Anaheim-Santa Ana, CA .............. 1.2130Orange, CA

Anchorage, AK .............................. 1.4176Anchorage, AK

Anderson, IN ................................. 0.9583Madison, IN

Anderson, SC ............................... 0.7258

TABLE V—WAGE INDEX FOR URBANAREAS—Continued


Wageindex

Anderson, SCAnn Arbor, MI ............................... 1.1384

Washtenaw, MIAnniston, AL ................................. 0.7931

Calhoun, ALAppleton-Oshkosh-Neenah, WI .... 0.9179

Calumet, WIOutagamie, WIWinnebago, WI

Arecibo, PR ................................... 0.3953Arecibo, PRCamuy, PRHatillo, PRQuebradillas, PR

Asheville, NC ................................ 0.8739Buncombe, NC

Athens, GA ................................... 0.8209Clarke, GAJackson, GAMadison, GAOconee, GA

Atlanta, GA ................................... 0.9596Barrow, GAButts, GACherokee, GAClayton, GACobb, GACoweta, GADe Kalb, GADouglas, GAFayette, GAForsyth, GAFulton, GAGwinnett, GAHenry, GANewton, GAPaulding, GARockdale, GASpalding, GAWalton, GA

Atlantic City, NJ ............................ 1.0507Atlantic City , NJCape May, NJ

Augusta, GA–SC .......................... 0.9401Columbia, GAMcDuffie, GARichmond, GAAiken, SC

Aurora-Elgin, IL ............................. 0.9665Kane, ILKendall, IL

Austin, TX ..................................... 0.9599Hays, TXTravis, TXWilliamson, TX

Bakersfield, CA ............................. 1.0868Kern, CA

Baltimore, MD ............................... 1.0156Anne Arundel, MDBaltimore, MDBaltimore City, MDCarroll, MDHarford, MDHoward, MDQueen Annes, MD

Bangor, ME ................................... 0.9064Penobscot, ME

Baton Rouge, LA .......................... 0.9089



Wageindex

Ascension, LAEast Baton Rouge, LALivingston, LAWest Baton Rouge, LA

Battle Creek, MI ............................ 0.9465Calhoun, MI

Beaumont-Port Arthur, TX ............ 0.9604Hardin, TXJefferson, TXOrange, TX

Beaver County, PA ....................... 1.0165Beaver, PA

Bellingham, WA ............................ 1.0497Whatcom, WA

Benton Harbor, MI ........................ 0.8406Berrien, MI

Bergen-Passaic, NJ ...................... 1.0295Bergen, NJPassaic, NJ

Billings, MT ................................... 0.9325Yellowstone, MT

Biloxi-Gulfport, MS ........................ 0.8062Hancock, MSHarrison, MS

Binghamton, NY ............................ 0.9260Broome, NYTioga, NY

Birmingham, AL ............................ 0.8769Blount, ALJefferson, ALSaint Clair, ALShelby, ALWalker, AL

Bismarck, ND ................................ 0.8812Burleigh, NDMorton, ND

Bloomington, IN ............................ 0.8639Monroe, IN

Bloomington-Normal, IL ................ 0.8658McLean, IL

Boise City, ID ................................ 0.9757Ada, ID

Boston-Lawrence-Salem-Lowell-Brockton, MA ............................. 1.1809

Essex, MAMiddlesex, MANorfolk, MAPlymouth, MASuffolk, MA

Boulder-Longmont, CO ................. 1.0149Boulder, CO

Bradenton, FL ............................... 0.9262Manatee, FL

Brazoria, TX .................................. 0.9314Brazoria, TX

Bremerton, WA ............................. 0.9535Kitsap, WA

Bridgeport-Stamford-Norwalk-Dan-bury ........................................... 1.2032

Fairfield, CTBrownsville-Harlingen, TX ............ 0.8601

Cameron, TXBryan-College Station, TX ............ 0.9489

Brazos, TXBuffalo, NY .................................... 0.8908

Erie, NYBurlington, NC .............................. 0.7986

Alamance, NCBurlington, VT ............................... 0.9358




Wageindex

Chittenden, VTGrand Isle, VT

Caguas, PR .................................. 0.4479Caguas, PRGurabo, PRSan Lorenz, PRAguas Buenas, PRCayey, PRCidra, PR

Canton, OH ................................... 0.8811Carroll, OHStark, OH

Casper, WY .................................. 0.8891Natrona, WY

Cedar Rapids, IA .......................... 0.8907Linn, IA

Champaign-Urbana-Rantoul, IL .... 0.8745Champaign, IL

Charleston, SC ............................. 0.8331Berkeley, SCCharleston, SCDorchester, SC

Charleston, WV ............................. 0.9692Kanawha, WVPutnam, WV

Charlotte-Gastonia-Rock Hill, NC–SC ............................................. 0.9486

Cabarrus, NCGaston, NCLincoln, NCMecklenburg, NCRowan, NCUnion, NCYork, SC

Charlottesville, VA ........................ 0.9615Albermarle, VACharlottesville City, VAFluvanna, VAGreene, VA

Chattanooga, TN–GA ................... 0.9198Catoosa, GADade, GAWalker, GAHamilton, TNMarion, TNSequatchie, TN

Cheyenne, WY .............................. 0.7908Laramie, WY

Chicago, IL .................................... 1.0518Cook, ILDu Page, ILMcHenry, IL

Chico, CA ...................................... 1.0981Butte, CA

Cincinnati, OH–KY–IN .................. 0.9821Dearborn, INBoone, KYCampbell, KYKenton, KYClermont, OHHamilton, OHWarren, OH

Clarksville-Hopkinsville, TN–KY ... 0.7319Christian, KYMontgomery, TN

Cleveland, OH .............................. 1.0739



Wageindex

Cuyahoga, OHGeauga, OHLake, OHMedina, OH

Colorado Springs, CO .................. 0.9816El Paso, CO

Columbia, MO ............................... 0.9506Boone, MO

Columbia, SC ................................ 0.8940Lexington, SCRichland, SC

Columbus, GA–AL ........................ 0.7482Russell, ALChattanoochee, GAMuscogee, GA

Columbus, OH .............................. 0.9673Delaware, OHFairfield, OHFranklin, OHLicking, OHMadison, OHPickaway, OHUnion, OH

Corpus Christi, TX ........................ 0.8594Nueces, TXSan Patricio, TX

Cumberland, MD–WV ................... 0.8188Allegany, MDMineral, WV

Dallas, TX ..................................... 0.9638Collin, TXDallas, TXDenton, TXEllis, TXKaufman, TXRockwall, TX

Danville, VA .................................. 0.7506Danville City, VAPittsylvania, VA

Davenport-Rock Island-Moline,IA–IL .......................................... 0.8471

Scott, IAHenry, ILRock Island, IL

Dayton-Springfield, OH ................. 0.9664Clark, OHGreene, OHMiami, OHMontgomery, OH

Daytona Beach, FL ....................... 0.8943Volusia, FL

Decatur, AL ................................... 0.7487Lawrence, ALMorgan, AL

Decatur, IL .................................... 0.8286Macon, IL

Denver, CO ................................... 1.0758Adams, COArapahoe, CODenver, CODouglas, COJefferson, CO

Des Moines, IA ............................. 0.9171Dallas, IAPolk, IAWarren, IA

Detroit, MI ..................................... 1.0824



Wageindex

Lapeer, MILivingston, MIMacomb, MIMonroe, MIOakland, MISaint Clair, MIWayne, MI

Dothan, AL .................................... 0.7555Dale, ALHouston, AL

Dubuque, IA .................................. 0.8374Dubuque, IA

Duluth, MN–WI ............................. 0.9517St. Louis, MNDouglas, WI

Eau Claire, WI .............................. 0.8478Chippewa, WIEau Claire, WI

El Paso, TX ................................... 0.8714El Paso, TX

Elkhart-Goshen, IN ....................... 0.8949Elkhart, IN

Elmira, NY ..................................... 0.8810Chemung, NY

Enid, OK ....................................... 0.8912Garfield, OK

Erie, PA ......................................... 0.9155Erie, PA

Eugene-Springfield, OR ................ 1.0164Lane, OR

Evansville, IN–KY ......................... 0.9276Posey, INVanderburgh, INWarrick, INHenderson, KY

Fargo-Moorhead, ND–MN ............ 0.9707Clay, MNCass, ND

Fayetteville, NC ............................ 0.8296Cumberland, NC

Fayetteville-Springdale, AR .......... 0.7990Washington, AR

Flint, MI ......................................... 1.1544Genesee, MI

Florence, AL ................................. 0.7679Colbert, ALLauderdale, AL

Florence, SC ................................. 0.8429Florence, SC

Fort Collins-Loveland, CO ............ 1.0238Larimor, CO

Ft Lauderdale-Hollywood-Pom-pano Beach, FL ......................... 1.0356

Broward, FLFort Myers-Cape Coral, FL ........... 0.9799

Lee, FLFort Pierce, FL .............................. 1.1041

Martin, FLSt. Lucie, FL

Fort Smith, AR–OK ....................... 0.7931Crawford, ARSebastian, ARSequoyah, OK

Fort Walton Beach, FL ................. 0.8916Okaloosa, FL

Fort Wayne, IN ............................. 0.8901Allen, INDe Kalb, INWhitley, IN

Forth Worth-Arlington, TX ............. 0.9747




Wageindex

Johnson, TXParker, TXTarrant, TX

Fresno, CA .................................... 1.0737Fresno, CA

Gadsden, AL ................................. 0.8199Etowah, AL

Gainesville, FL .............................. 0.8798Alachua, FLBradford, FL

Galveston-Texas City, TX ............. 0.9431Galveston, TX

Gary-Hammond, IN ....................... 0.9866Lake, INPorter, IN

Glens Falls, NY ............................. 0.9231Warren, NYWashington, NY

Grand Forks, ND .......................... 0.9577Grand Forks, ND

Grand Rapids, MI ......................... 0.9883Kent, MIOttawa, MI

Great Falls, MT ............................. 0.9992Cascade, MT

Greeley, CO .................................. 0.9358Weld, CO

Green Bay, WI .............................. 0.9585Brown, WI

Greensboro-Winston-Salem-HighPoint, NC ................................... 0.9165

Davidson, NCDavie, NCForsyth, NCGuilford, NCRandolph, NCStokes, NCYadkin, NC

Greenville-Spartanburg, SC .......... 0.8923Greenville, SCPickens, SCSpartanburg, SC

Hagerstown, MD ........................... 0.9157Washington, MD

Hamilton-Middletown, OH ............. 0.9384Butler, OH

Harrisburg-Lebanon-Carlisle, PA 0.9919Cumberland, PADauphin, PALebanon, PAPerry, PA

Hartford-Middletown-New Britain-Bristol, CT ................................. 1.1916

Hartford, CTLitchfield, CTMiddlesex, CTTolland, CT

Hickory, NC ................................... 0.8741Alexander, NCBurke, NCCatawba, NC

Honolulu, HI .................................. 1.1580Honolulu, HI

Houma-Thibodaux, LA .................. 0.7344Lafourche, LATerrebonne, LA

Houston, TX .................................. 0.9935



Wageindex

Fort Bend, TXHarris, TXLiberty, TXMontgomery, TXWaller, TX

Huntington-Ashland, WV–KY–OH 0.9438Boyd, KYCarter, KYGreenup, KYLawrence, OHCabell, WVWayne, WV

Huntsville, AL ................................ 0.8835Madison, AL

Indianapolis, IN ............................. 0.9663Boone, INHamilton, INHancock, INHendricks, INJohnson, INMarion, INMorgan, INShelby, IN

Iowa City, IA ................................. 0.9528Johnson, IA

Jackson, MI ................................... 0.9664Jackson, MI

Jackson, MS ................................. 0.7733Hinds, MSMadison, MSRankin, MS

Jackson, TN .................................. 0.7910Madison, TN

Jacksonville, FL ............................ 0.9051Clay, FLDuval, FLNassau, FLSt. Johns, FL

Jacksonville, NC ........................... 0.7154Onslow, NC

Jamestown-Dunkirk, NY ............... 0.7735Chautaqua, NY

Janesville-Beloit, WI ..................... 0.8466Rock, WI

Jersey City, NJ ............................. 1.0526Hudson, NJ

Johnson City-Kingsport-Bristol,TN–VA ....................................... 0.8668

Carter, TNHawkins, TNSullivan, TNUnicoi, TNWashington, TNBristol City, VAScott, VAWashington, VA

Johnstown, PA .............................. 0.9067Cambria, PASomerset, PA

Joliet, IL ........................................ 1.0278Grundy, ILWill, IL

Joplin, MO ..................................... 0.7957Jasper, MONewton, MO

Kalamazoo, MI .............................. 1.1709Kalamazoo, MI

Kankakee, IL ................................. 0.8489Kankakee, IL

Kansas City, KS–MO .................... 0.9588



Wageindex

Johnson, KSLeavenworth, KSMiami, KSWyandotte, KSCass, MOClay, MOJackson, MOLafayette, MOPlatte, MORay, MO

Kenosha, WI ................................. 0.8855Kenosha, WI

Killeen-Temple, TX ....................... 1.1295Bell, TXCoryell, TX

Knoxville, TN ................................. 0.8693Anderson, TNBlount, TNGrainger, TNJefferson, TNKnox, TNSevier, TNUnion, TN

Kokomo, IN ................................... 0.9435Howard, INTipton, IN

LaCrosse, WI ................................ 0.8956LaCrosse, WI

Lafayette, LA ................................. 0.8227Lafayette, LASt. Martin, LA

Lafayette, IN ................................. 0.8432Tippecanoe, IN

Lake Charles, LA .......................... 0.8374Calcasieu, LA

Lake County, IL ............................ 0.9994Lake, IL

Lakeland-Winter Haven, FL .......... 0.8171Polk, FL

Lancaster, PA ............................... 0.9258Lancaster, PA

Lansing-East Lansing, MI ............. 1.0222Clinton, MIEaton, MIIngham, MI

Laredo, TX .................................... 0.7278Webb, TX

Las Cruces, NM ............................ 0.7909Dona Ana, NM

Las Vegas, NV .............................. 1.0631Clark, NV

Lawrence, KS ............................... 0.8937Douglas, KS

Lawton, OK ................................... 0.8388Comanche, OK

Lewiston-Auburn, ME ................... 0.9057Androscoggin, ME

Lexington-Fayette, KY .................. 0.8446Bourbon, KYClark, KYFayette, KYJessamine, KYScott, KYWoodford, KY

Lima, OH ....................................... 0.8062Allen, OHAuglaize, OH

Lincoln, NE ................................... 0.8956Lancaster, NE

Little Rock-North Little Rock, AR 0.8420




Wageindex

Faulkner, ARLonoke, ARPulaski, ARSaline, AR

Longview-Marshall, TX ................. 0.8691Gregg, TXHarrison, TX

Lorain-Elyria, OH .......................... 0.8969Lorain, OH

Los Angeles-Long Beach, CA ...... 1.2354Los Angeles, CA

Louisville, KY–IN ........................... 0.9092Clark, INFloyd, INHarrison, INBullitt, KYJefferson, KYOldham, KYShelby, KY

Lubbock, TX .................................. 0.8790Lubbock, TX

Lynchburg, VA .............................. 0.8544Amherst, VACampbell, VALynchburg City, VA

Macon-Warner Robins, GA .......... 0.8804Bibb, GAHuston, GAJones, GAPeach, GA

Madison, WI .................................. 1.0311Dane, WI

Manchester-Nashua, NH .............. 1.0261Hillsborough, NHMerrimack, NH

Mansfield, OH ............................... 0.8392Richland, OH

Mayaguez, PR .............................. 0.4771Anasco, PRCabo Rojo, PRHormigueros, PRMayaguez, PRSan German, PR

McAllen-Edinburg-Mission, TX ..... 0.7715Hidalgo, TX

Medford, OR ................................. 1.0045Jackson, OR

Melbourne-Titusville Fl .................. 0.9199Brevard, Fl

Memphis, TN–AR–MS .................. 0.9060Crittenden, ARDe Soto, MSShelby, TNTipton, TN

Merced, CA ................................... 1.0312Merced, CA

Miami-Hialeah, FL ......................... 1.0188Dade, FL

Middlesex-Somerset-Hunterdon,NJ .............................................. 1.0401

Hunterdon, NJMiddlesex, NJSomerset, NJ

Midland, TX ................................... 1.0377Midland, TX

Milwaukee, WI .............................. 0.9719



Wageindex

Milwaukee, WIOzaukee, WIWashington, WIWaukesha, WI

Minneapolis-St Paul, MN–WI ........ 1.0818Anoka, MNCarver, MNChisago, MNDakota, MNHennepin, MNIsanti, MNRamsey, MNScott, MNWashington, MNWright, MNSt. Croix, WI

Mobile, AL ..................................... 0.8319Baldwin, ALMobile, AL

Modesto, CA ................................. 1.1577Stanislaus, CA

Monmouth-Ocean, NJ ................... 0.9900Monmouth, NJOcean, NJ

Monroe, LA ................................... 0.7864Ouachita, LA

Montgomery, AL ........................... 0.7738Autauga, ALElmore, ALMontgomery, AL

Muncie, IN ..................................... 0.8068Delaware, IN

Muskegon, MI ............................... 0.9568Muskegon, MI

Naples, FL .................................... 1.0324Collier, FL

Nashville, TN ................................ 0.9397Cheatham, TNDavidson, TNDickson, TNRobertson, TNRutherford TNSumner, TNWilliamson, TNWilson, TN

Nassau-Suffolk, NY ...................... 1.2938Nassau, NYSuffolk, NY

New Bedford-Fall River-Attleboro,MA ............................................. 1.0002

Bristol, MANew Haven Waterbury-Meriden,

CT .............................................. 1.2095New Haven, CT

New London, London-Norwich ..... 1.1571New London, CT

New Orleans, LA .......................... 0.8908Jefferson, LAOrleans, LASt. Bernard, LASt. Charles, LASt. John The Baptist, LASt. Tammany, LA

New York, NY ............................... 1.3460



Wageindex

Bronx, NYKings, NYNew York City, NYPutnam, NYQueens, NYRichmond, NYRockland, NYWestchester, NY

Newark, NJ ................................... 1.1232Essex, NJMorris, NJSussex, NJUnion, NJ

Niagara Falls, NY ......................... 0.8382Niagara, NY

Norfolk-Virginia Beach-NewportNews, VA .................................. 0.8515

Chesapeake City, VAGloucester, VAHampton City, VAJames City Co., VANewport News City, VANorfolk City, VAPoquoson, VAPortsmouth City, VASuffolk City, VAVirginia Beach City, VAWilliamsburg City, VAYork, VA

Oakland, CA ................................. 1.4283Alameda, CAContra Costa, CA

Ocala, FL ...................................... 0.8614Marion, FL

Odessa, TX ................................... 1.0817Ector, TX

Oklahoma City, OK ....................... 0.9145Canadian, OKCleveland, OKLogan, OKMcClain, OKOklahoma, OKPottawatomie, OK

Olympia, WA ................................. 1.1002Thurston, WA

Omaha, NE–IA .............................. 0.8989Pottawattamie, IADouglas, NESarpy, NEWashington, NE

Orange, County, NY ..................... 0.9653Orange, NY

Orlando, FL ................................... 0.9621Orange, FLOsceola, FLSeminole, FL

Owensboro, KY ............................. 0.8114Daviess, KY

Oxnard-Ventura, CA ..................... 1.2309Ventura, CA

Panama City, FL ........................... 0.8632Bay, FL

Parkersburg-Marietta, WV–OH ..... 0.8540Washington, OHWood, WV

Pascagoula, MS ............................ 0.8755Jackson, MS

Pensacola, FL ............................... 0.8623




Wageindex

Escambia, FLSanta Rosa, FL

Peoria, IL ...................................... 0.8710Peoria, ILTazewell, ILWoodford, IL

Philadelphia, PA–NJ ..................... 1.0952Burlington, NJCamden, NJGloucester, NJBucks, PAChester, PADelaware, PAMontgomery, PAPhiladelphia, PA

Phoenix, AZ .................................. 1.0429Maricopa, AZ

Pine Bluff, AR ............................... 0.7872Jefferson, AR

Pittsburgh, PA ............................... 1.0127Allegheny, PAFayette, PAWashington, PAWestmoreland, PA ................

Pittsfield, MA ................................. 1.0782Berkshire, MA

Ponce, PR ..................................... 0.4601Juana Diaz, PRPonce, PR

Portland, ME ................................. 0.9292Cumberland, MESagadahoc, MEYork, ME

Portland, OR ................................. 1.1576Clackamas, ORMultnomah, ORWashington, ORYamhill, OR

Portsmouth-Dover-Rochester, NH 1.0080Rockingham, NHStrafford, NH

Poughkeepsie, NY ........................ 1.0447Dutchess, NY

Providence-Pawtucket-Woonsocket, RI ......................... 1.0630

Bristol, RIKent, RINewport, RIProvidence, RIWashington, RI

Provo-Orem, UT ........................... 1.0230Utah, UT

Pueblo, CO ................................... 0.8722Pueblo, CO

Racine, WI .................................... 0.8849Racine, WI

Raleigh-Durham, NC .................... 0.9465Durham, NCFranklin, NCOrange, NCWake, NC

Rapid City, SD .............................. 0.8400Pennington, SD

Reading, PA .................................. 0.8814Berks, PA

Redding, CA ................................. 1.0549Shasta, CA

Reno, NV ...................................... 1.1618Washoe, NV

Richland-Kennewick, WA ............. 0.9402



Wageindex

Benton, WAFranklin, WA

Richmond-Petersburg, VA ............ 0.9417Charles City Co., VAChesterfield, VAColonial Heights City, VADinwiddie, VAGoochland, VAHanover, VAHenrico, VAHopewell City, VANew Kent, VAPetersburg City, VAPowhatan, VAPrince George, VARichmond City, VA

Riverside-San Bernardino, CA ..... 1.1160Riverside, CASan Bernardino, CA

Roanoke, VA ................................. 0.8284Botetourt, VARoanoke, VARoanoke City, VASalem City, VA

Rochester, MN .............................. 1.1030Olmsted, MN

Rochester, NY .............................. 0.9710Livingston, NYMonroe, NYOntario, NYOrleans, NYWayne, NY

Rockford, IL .................................. 0.9283Boone, ILWinnebago, IL

Sacramento, CA ........................... 1.2232Eldorado, CAPlacer, CASacramento, CAYolo, CA

Saginaw-Bay City-Midland, MI ..... 1.0451Bay, MIMidland, MISaginaw, MI

St. Cloud, MN ............................... 0.9420Benton, MNSherburne, MNStearns, MN

St. Joseph, MO ............................. 0.9414Buchanan, MO

St. Louis, MO–IL ........................... 0.9388Clinton, ILJersey, ILMadison, ILMonroe, ILSt. Clair, ILFranklin, MOJefferson, MOSt. Charles, MOSt. Louis, MOSt. Louis City, MOSullivan City, MO

Salem, OR .................................... 1.0445Marion, ORPolk, OR

Salinas-Seaside-Monterey, CA ..... 1.3041Monterey, CA

Salt Lake City-Ogden, UT ............ 0.9932



Wageindex

Davis, UTSalt Lake, UTWeber, UT

San Angelo, TX ............................ 0.8139Tom Green, TX

San Antonio, TX ........................... 0.8452Bexar, TXComal, TXGuadalupe, TX

San Diego, CA .............................. 1.1934San Diego, CA

San Francisco, CA ........................ 1.4539Marin, CASan Francisco, CASan Mateo, CA

San Jose, CA ................................ 1.4900Santa Clara, CA

San Juan, PR ............................... 0.4987Barcelona, PRBayoman, PRCanovanas, PRCarolina, PRCatano, PRCorozal, PRDorado, PRFajardo, PRFlorida, PRGuaynabo, PRHumacao, PRJuncos, PRLos Piedras, PRLoiza, PRLuguillo, PRManati, PRNaranjito, PRRio Grande, PRSan Juan, PRToa Alta, PRToa Baja, PRTrojillo Alto, PRVega Alta, PRVega Baja, PR

Santa Barbara-Santa Maria-Lompoc, CA .............................. 1.1768

Santa Barbara, CASanta Cruz, CA ............................. 1.2784

Santa Cruz, CASanta Fe, NM ............................... 0.9139

Los Alamos, NMSanta Fe, NM

Santa Rosa-Petaluma, CA ........... 1.2957Sonoma, CA

Sarasota, FL ................................. 0.9781Sarasota, FL

Savannah, GA .............................. 0.8327Chatham, GAEffingham, GA

Scranton, Wilkes Barre, PA .......... 0.8952Columbia, PALackawanna, PALuzerne, PAMonroe, PAWyoming, PA

Seattle, WA ................................... 1.0871King, WASnohomish, WA

Sharon, PA ................................... 0.9061Mercer, PA

Sheboygan, WI ............................. 0.8872




Wageindex

Sheboygan, WISherman-Denison, TX .................. 0.9089

Grayson, TXShreveport, LA .............................. 0.9299

Bossier, LACaddo, LA

Sioux City, IA–NE ......................... 0.8504Woodbury, IADakota, NE

Sioux Falls, SD ............................. 0.8833Minnehaha, SD

South Bend-Mishawaka, IN .......... 1.0067St. Joseph, IN

Spokane, WA ................................ 1.0691Spokane, WA

Springfield, IL ................................ 0.9295Menard, ILSangamon, IL

Springfield, MO ............................. 0.8082Christian, MOGreene, MO

Springfield, MA ............................. 1.0316Hampden, MAHampshire, MA

State College, PA ......................... 0.9901Centre, PA

Steubenville-Weirton, OH–WV ..... 0.8712Jefferson, OHBrooke, WVHancock, WV

Stockton, CA ................................. 1.1612San Joaquin, CA

Syracuse, NY ................................ 0.9917Madison, NYOnondaga, NYOswego, NY

Tacoma, WA ................................. 1.0317Pierce, WA

Tallahassee, FL ............................ 0.9220Gadsden, FLLeon, FL

Tampa-St. Petersburg-Clearwater,FL .............................................. 0.9188

Hernando, FLHillsborough, FLPasco, FLPinellas, FL

Terre Haute, IN ............................. 0.8758Clay, INVigo, IN

Texarkana, TX–AR ....................... 0.7892Miller, ARBowie, TX

Toledo, OH ................................... 1.0097Fulton, OHLucas, OHWood, OH

Topeka, KS ................................... 0.9302Shawnee, KS

Trenton, NJ ................................... 1.0038Mercer, NJ

Tucson, AZ ................................... 0.9591Pima, AZ

Tulsa, OK ...................................... 0.8532Creeks, OKOsage, OKRogers, OKTulsa, OKWagoner, OK

Tuscaloosa, AL ............................. 0.8521



Wageindex

Tuscaloosa, ALTyler, TX ....................................... 0.9838

Smith, TXUtica-Rome, NY ............................ 0.8512

Herkimer, NYOneida, NY

Vallejo-Fairfield-Napa, CA ............ 1.3203Napa, CASolano, CA

Vancouver, WA ............................. 1.0798Clark, WA

Victoria, TX ................................... 0.8994Victoria, TX

Vineland-Millville-Bridgeton, NJ .... 0.9760Cumberland, NJ

Visalia-Tulare-Porterville, CA ........ 1.0392Tulare, CA

Waco, TX ...................................... 0.7814McLennan, TX

Washington, DC–MD–VA ............. 1.0941District of Columbia, DCCalvert, MDCharles, MDFrederick, MDMontgomery, MDPrince Georges, MDAlexandria City, VAArlington, VAFairfax, VAFairfax City, VAFalls Church City, VALoudoun, VAManassas City, VAManassas Park City, VAPrince William, VAStafford, VA

Waterloo-Cedar Falls, IA .............. 0.8642Black Hawk, IABremer, IA

Wausau, WI .................................. 0.9748Marathon, WI

West Palm Beach-Boca Raton-Delray Beach, FL ...................... 1.0135

Palm Beach, FLWheeling, WV–OH ........................ 0.8067

Belmont, OHMarshall, WVOhio, WV

Wichita, KS ................................... 0.9809Butler, KSHarvey, KSSedgwick, KS

Wichita Falls, TX ........................... 0.8172Wichita, TX

Williamsport, PA ........................... 0.8864Lycoming, PA

Wilmington, DE–NJ–MD ............... 1.0869New Castle, DECecil, MDSalem, NJ

Wilmington, NC ............................. 0.8712New Hanover, NC

Worcester-Fitchburg-Leominster,MA ............................................. 1.0826

Worcester, MAYakima, WA .................................. 1.0111

Yakima, WAYork, PA ........................................ 0.9021



Wageindex

Adams, PAYork, PA

Youngstown-Warren, OH .............. 0.9866Mahoning, OHTrumbull, OH

Yuba City, CA ............................... 1.0167Sutter, CAYuba, CA

Yuma, AZ ...................................... 0.8885Yuma, AZ

TABLE VI.—WAGE INDEX FOR RURALAREAS

Non-urban areas Wageindex

ALABAMA ..................................... 0.7121ALASKA ........................................ 1.3426ARIZONA ...................................... 0.8747ARKANSAS .................................. 0.6966CALIFORNIA ................................ 1.0142COLORADO ................................. 0.8415CONNECTICUT ............................ 1.1905DELAWARE .................................. 0.8572FLORIDA ...................................... 0.8730GEORGIA ..................................... 0.7767HAWAII ......................................... 0.9618IDAHO ........................................... 0.8953ILLINOIS ....................................... 0.7700INDIANA ....................................... 0.7806IOWA ............................................ 0.7532KANSAS ....................................... 0.7446KENTUCKY .................................. 0.7793LOUISIANA ................................... 0.7384MAINE ........................................... 0.8328MARYLAND .................................. 0.8061MASSACHUSETTS ...................... 1.1654MICHIGAN .................................... 0.8826MINNESOTA ................................. 0.8309MISSISSIPPI ................................. 0.6957MISSOURI .................................... 0.7249MONTANA .................................... 0.8255NEBRASKA .................................. 0.6995NEVADA ....................................... 0.9702NEW HAMPSHIRE ....................... 0.9547NEW JERSEY .............................. (1)NEW MEXICO .............................. 0.8318NEW YORK .................................. 0.8402NORTH CAROLINA ...................... 0.7936NORTH DAKOTA ......................... 0.7719OHIO ............................................. 0.8453OKLAHOMA .................................. 0.7400OREGON ...................................... 0.9607PENNSYLVANIA .......................... 0.8613PUERTO RICO ............................. 2 0.4333RHODE ISLAND ........................... (1)SOUTH CAROLINA ...................... 0.7650SOUTH DAKOTA ......................... 0.7168TENNESSEE ................................ 0.7340TEXAS .......................................... 0.7591UTAH ............................................ 0.8983VERMONT .................................... 0.9035VIRGINIA ...................................... 0.7815VIRGIN ISLANDS ......................... 2 0.5734WASHINGTON ............................. 0.9635WEST VIRGINIA ........................... 0.8488WISCONSIN ................................. 0.8447


TABLE VI.—WAGE INDEX FOR RURALAREAS—Continued

Non-urban areas Wageindex

WYOMING .................................... 0.8457

1 All counties within State are classifiedurban.

2 Approximate value for area.

V. Impact StatementFor notices such as this, we generally

prepare a regulatory flexibility analysisthat is consistent with the RegulatoryFlexibility Act (RFA) (5 U.S.C. 601through 612) unless we certify that anotice will not have a significanteconomic impact on a substantialnumber of small entities. For purposesof the RFA, all SNFs are considered tobe small entities. Individuals and Statesare not included in the definition of asmall entity.

The purpose of the July 21, 1995 finalrule was to allow SNFs that providefewer than 1,500 days of care toMedicare beneficiaries in a costreporting period to have the option ofreceiving prospectively determinedpayment rates in the following costreporting period. In our analysis of theimpact of the July 21 final rule (60 FR37593), we noted that Medicarepayments to SNFs constitute only about5.3 percent of total SNF revenues andindicated that the rule would have onlya small impact on those revenues. Weestimate that the prospectivelydetermined payment rates contained inthis notice will result in a cost to theMedicare program of $10 to $20 millionfor FY 1997. These costs represent thedifference between estimated aggregatepayments to SNFs that elect to be paidunder the prospectively determinedpayment rates and estimated aggregatepayments to the same SNFs if paid ona reasonable cost basis under the routineSNF cost limits. Thus, we continue tobelieve that this optional paymentsystem will have a positive impact onsmall entities, while easing their costreporting burden.

In addition, section 1102(b) of the Actrequires us to prepare a regulatoryimpact analysis if a final notice such as

this may have a significant impact onthe operations of a substantial numberof small rural hospitals. Such ananalysis must conform to the provisionsof section 604 of the RFA. For purposesof section 1102(b) of the Act, we definea small rural hospital as a hospital thatis located outside of a MetropolitanStatistical Area and has fewer than 50beds.

We are not preparing analyses foreither the RFA or section 1102(b) of theAct because we have determined, andwe certify, that this final notice will nothave a significant economic impact ona substantial number of small entities ora significant impact on the operations ofa substantial number of small ruralhospitals.

In accordance with the provisions ofExecutive Order 12866, this final noticewas reviewed by the Office ofManagement and Budget.

Under the provisions of Public Law104–121, we have determined that thisnotice is not a major rule.

VI. Other Required Information

A. Collection of InformationRequirements

This final notice with commentperiod does not impose informationcollection and recordkeepingrequirements. Consequently, it need notbe reviewed by the Office ofManagement and Budget under theauthority of the Paperwork ReductionAct of 1995 (44 U.S.C. 3501 et seq.).

B. Waiver of Proposed Notice and 30-Day Delay in the Effective Date

In adopting notices such as this, weordinarily publish a proposed notice inthe Federal Register with a 60-dayperiod for public comment as requiredunder section 1871(b)(1) of the Act. Wealso normally provide a delay of 30 daysin the effective date for documents suchas this. However, we may waive theseprocedures if we find good cause thatprior notice and comment or a delay inthe effective date are impracticable,unnecessary, or contrary to the publicinterest.

As discussed in section II of thisnotice, we have used the same basic

methodology to develop this schedule ofrates that was used in setting the ratespublished in section 2828 of theProvider Reimbursement Manual forcost reporting periods beginning inFederal fiscal year 1993. As discussedabove, section 13503(b) of OBRA 1993delayed the update to the schedule ofprospectively determined payment ratesuntil Federal fiscal year 1996. However,the delay in passing the proposedFederal fiscal year 1996 budgetlegislation, which contained provisionsaffecting the Federal fiscal year 1996and Federal fiscal year 1997prospectively determined paymentrates, resulted in a delay in publishingupdated Federal fiscal year 1996 rates.Regardless of that delay and inconformance with the clear direction ofsection 1888(d) of the Act and§ 413.320, this notice announces theupdate to the schedule of prospectivelydetermined payment rates for SNFinpatient service costs for cost reportingperiods beginning in Federal fiscal year1997. However, given the publishingtime constraints mandated in § 413.320,it would not have been possible topublish a proposed notice and stillimplement the updated prospectivelydetermined payment rates set forth inthis notice. To do so would have beenimpractical, unnecessary, and contraryto the public interest. Therefore, we findgood cause to waive publication of aproposed notice and the 30-day delay inthe effective date of this notice withcomment period. However, we areproviding a 60-day period for publiccomment, as indicated at the beginningof this notice.

C. Response to Comments

Because of the large number of itemsof correspondence we normally receiveon Federal Register documentspublished for comment, we are not ableto acknowledge or respond to themindividually. We will consider allcomments we receive by the date andtime specified in the DATES section ofthis notice, and, if we proceed with asubsequent document, we will respondto the comments in that document.

APPENDIX.—DERIVATION OF ‘‘MARKET BASKET’’ INDEX FOR SNF ROUTINE SERVICE COSTS

Category of costsRelative 1

importance1993

Price variable used 2

Payroll Expense ......................... 64.0 Percentage changes in average hourly earnings of employees in nursing and personal care fa-cility. (SIC 805) Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Employment andEarnings (monthly). Table C–2.


APPENDIX.—DERIVATION OF ‘‘MARKET BASKET’’ INDEX FOR SNF ROUTINE SERVICE COSTS—Continued

Category of costsRelative 1

importance1993

Price variable used 2

Employee Benefits ..................... 7.8 Supplements to wages and salaries per worker in nonagricultural establishments. For supple-ments to wages. Source: U.S. Dept. of Commerce, Bureau of Economic Analysis, Survey ofCurrent Business. Table 1.11.

For total employment. Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Employmentand Earnings (monthly). Table B–4.

Food ........................................... 7.6 Processed foods and feeds component of producer price index. Source: U.S. Dept. of Labor,Bureau of Labor Statistics, Monthly Labor Review, Table 23.

Food and beverage component of Consumer Price Index, all urban. Source: U.S. Dept. ofLabor, Bureau of Labor Statistics, Monthly Labor Review, Table 22.

Other business services ............. 5.1 Services component of Consumer Price Index, all urban. Source: U.S. Dept. of Labor, Bureauof Labor Statistics, Monthly Labor Review, Table 23.

Fuel and other utilities ................ 4.0 A. Implicit price deflator-consumption of fuel oil and coal (derived from fuel oil component ofConsumer Price Index). Source: U.S. Dept. of Commerce, Bureau of Economic Analysis,Survey of Current Business (monthly), Table 7.11.

B. Implicit price deflator-consumer of electricity (derived from electricity component ofConsumer Price Index). Source: U.S. Dept. of Commerce, Bureau of Economic Analysis.

C. Implicit price deflator for natural gas (derived from utility (piped) gas component ofConsumer Price Index). Source: Same as electricity above.

D. Water and sewage maintenance component of the Consumer Price Index. Source: U.S.Dept. of Labor, Bureau of Labor Statistics, Monthly Labor Review, Table 23.

Supplies ...................................... 3.1 All Item Consumer Price Index, all urban. Source: U.S. Dept. of Labor, Bureau of Labor Statis-tics, Monthly Labor Review, Table 23.

Drugs .......................................... 2.2 Pharmaceutical preparations, ethical component of producer price index. Source: U.S. Dept. ofLabor, Bureau of Labor Statistics, Producer Prices and Price Indexes (monthly), Table 6.

Health services ........................... 1.6 Physician services component of Consumer Price Index for all urban consumers. Source: U.S.Dept. of Labor, Bureau of Labor Statistics, Monthly Labor Review, Table 23.

Miscellaneous ............................. 4.6 All Item Consumer Price Index, all urban. Source: U.S. Dept. of Labor, Bureau of Labor Statis-tics, Monthly Labor Review, Table 23.

1 The basic weights for all major categories of skilled nursing home costs were obtained from the DHEW-National Center for Health Statistics(NCHS) National Nursing Home Surveys (NNHS) for 1972 and 1976 for home certified for participation in the Medicare program. See NursingHome Costs 1972, United States: National Nursing Home Survey, August 1973–April 1974, DHEW, NCHS: National Nursing Home Survey: 1977Summary for the United States, Vital and Health Statistics, Series 13, Number 43.

A Laspeyres price index was constructed using 1977 weights and price variables indicated in this table. In calendar year 1977 each ‘‘price’’variable has an index of 100.0. The relative routine service cost weights change each period in accordance with price changes for each pricevariable. Cost categories with relatively higher ‘‘price’’ increases get relatively higher cost weights and vice versa.

2 Forecasted by DRI/McGraw Hill, Health Care Costs, First Quarter, 1992, 1750 K St., NW, Washington D.C. 20006.

Authority: Secs. 1102, 1814(b), 1861(v)(1),1866(a), 1871, and 1888 of the SocialSecurity Act (42 U.S.C. 1302, 1395f(b),1395x(v)(1), 1395cc(a), 1395hh, and 1395yy);sec. 13503(b) and (c) of Pub. L. 103–66 (42U.S.C. 1395x(v)(1)(B) and 1395yy (note)) and42 CFR 413.1, 413.24, and 413.300 through413.321).(Catalog of Federal Domestic AssistanceProgram No. 93.773, Medicare—HospitalInsurance)

Dated: July 1, 1996.Bruce C. Vladeck,Administrator, Health Care FinancingAdministration.

Dated: August 2, 1996.Donna E. Shalala,Secretary.[FR Doc. 96–22376 Filed 8–30–96; 8:45 am]BILLING CODE 4120–01–P

National Institutes of Health

National Cancer Institute: Opportunityfor a Cooperative Research andDevelopment Agreement (CRADA) forthe Scientific and CommercialDevelopment of Fusion Proteins ThatInclude Antibody and Non-AntibodyPortions

AGENCY: National Cancer Institute,National Institutes of Health, PHS,DHHS.ACTION: Notice.

SUMMARY: The Department of Health andHuman Services (DHHS) seeks one ormore companies that can collaborativelypursue the pre-clinical and clinicaldevelopment of Fusion Proteins ThatInclude Antibody and Non-AntibodyPortions. The following disease statesare of interest: neoplasia,arteriosclerosis, tumor vascularization,fibrotic diseases, psoriasis and woundhealing. The National Cancer Institute,Laboratory of Cellular and MolecularBiology has developed an assay systemto identify receptor agonists andantagonists using fusion protein

technology. The selected sponsor willbe awarded a CRADA with the NationalCancer Institute for the co-developmentof agents identified using the fusionprotein technology.ADDRESS: Questions about thisopportunity may be addressed to JeremyA. Cubert, M.S., J.D., Office ofTechnology Development, NCI, 6120Executive Blvd. MSC 7182, Bethesda,MD 20892–7182, Phone: (301) 496–0477, Facsimile: (301) 402–2117, fromwhom further information may beobtained.DATE: In view of the important priorityof developing new agents for thetreatment or prevention of cancer,interested parties should notify thisoffice in writing no later than October18, 1996. Respondents will then beprovided an additional 30 days for thefiling of formal proposals.SUPPLEMENTARY INFORMATION:‘‘Cooperative Research andDevelopment Agreement’’ or ‘‘CRADA’’means the anticipated joint agreement tobe entered into by NCI pursuant to theFederal Technology Transfer Act of


1986 and amendments (including 104P.L. 133) and Executive Order 12591 ofOctober 10, 1987 to collaborate on thespecific research project describedbelow.

The Government is seeking one ormore companies which, in accordancewith the requirements of the regulationsgoverning the transfer of agents inwhich the Government has taken anactive role in developing (37 CFR404.8), can further develop theidentified compounds and relateddiagnostic methods through FederalFood and Drug Administration approvaland to a commercially available statusto meet the needs of the public and withthe best terms for the Government. Thegovernment has applied for domesticand foreign patent applications directedto Fusion Proteins That IncludeAntibody and Non-Antibody Portions.

The Fusion Proteins comprise an IgGsequence covalently joined at the IgGhinge and Fc domain to a non-antibodyeffector domain such as a ligand, toxin,or receptor. The effector domain or IgGnon-antibody portion may be linked toa heterologous signal peptide tofacilitate secretion. The resulting fusionprotein exhibits the effector propertiesof both the antibody and non-antibodyportions. Applications of thistechnology include development ofdiagnostic methods to monitor bindingand expression of a protein of interestin vitro, in vivo and in situ (i.e.immunohistochemistry). In addition,the technology can be used to identifyagonists and antagonists that modulatethe binding of an effector molecule to itstarget. Fusion proteins may also beemployed as a therapeutic to deliverradiation, a cytotoxic agent or a drugdirectly to a target cell.

The LCMB, Division of BasicSciences, NCI is interested inestablishing a CRADA with one or morecompanies to assist in the developmentof diagnostic, screening and therapeuticapplications of the technology. TheGovernment will provide all availableexpertise and information to date andwill jointly pursue pre-clinical andclinical studies as required, giving thecompany full access to existing data anddata developed pursuant to the CRADA.The successful company will providethe necessary scientific, financial andorganizational support to establishclinical efficacy and possiblecommercial status of subject compoundsand/or diagnostic and therapeuticapplications.

The expected duration of the CRADAwill be two (2) to five (5) years.

The role of the National CancerInstitute, includes the following:

1. Construction of fusion proteinscomprising a molecule of interestcovalently joined to an IgG hinge andFC antibody regions.

2. Expression and harvesting of theresulting fusion protein fromconditioned medium of a suitabletransfectant such as NIH 3T3 cells.

3. Develop a screen of ligand-HFc onreceptor or receptor-HFc on ligand toidentify putative agonists andantagonists.

4. Conduct in vitro studies to identifyputative agonists and/or antagonists byscreening libraries of compounds.

5. Conduct in vitro and in vivostudies to characterize the properties ofputative agonists and/or antagonists.

6. Evaluation of test results.7. Preparation of manuscripts for

publication.Relevant Government intellectual

property rights are available forlicensing through the Office ofTechnology Transfer, National Institutesof Health.FOR FURTHER INFORMATION CONTACTSusan Rucker, J.D., NIH Office ofTechnology Transfer, 6011 ExecutiveBlvd, Suite 325, Rockville, MD 20852,Phone: (301) 496–7056 (ext. 245);Facsimile: (301) 402–0220.

The role of the collaborator company,includes the following

For agonist/antagonist screening:1. Provide growth factor or receptor

cDNA clones for fusion proteinconstruction if not available in NCI/LCMB clone bank

2. Scale-up production of fusionproteins constructed by NCI ifrequired

3. Conduct in vitro studies to identifyputative antagonists/agonists byscreening libraries of compounds

4. Conduct in vitro and in vivo studiesto characterize the properties ofputative antagonists/agonists

5. Conduct clinical studies of bestcandidatesFor ligand-mediated histochemical

experiments:1. Test conditioned medium for

suitability in histochemicalexperiments

2. Screen tumor samples or biopsies forreactivity

3. Conduct clinical studies of diagnostictestCriteria for choosing the company

include its demonstrated experienceand commitment to the following:

1. Scientific expertise in anddemonstrated commitment to thetreatment of neoplasia, arteriosclerosis,fibrotic diseases and related disorders.

2. Scientific expertise in anddemonstrated commitment to thedevelopment of drug delivery systems.

3. Experience in preclinical andclinical drug development.

4. Experience and ability to produce,package, market and distributepharmaceutical products.

5. Experience in the monitoring,evaluation and interpretation of the datafrom investigational agent clinicalstudies under an IND.

6. A willingness to cooperate with theNCI in the collection, evaluation,publication and maintaining of datafrom pre-clinical studies and clinicaltrials regarding the subject compounds.

7. Provide defined financial andpersonnel support for the CRADA to bemutually agreed upon.

8. An agreement to be bound by theDHHS rules involving human andanimal subjects.

9. The aggressiveness of thedevelopment plan, including theappropriateness of milestones anddeadlines for preclinical and clinicaldevelopment.

10. Provisions for equitabledistribution of patent rights to anyCRADA inventions. Generally the rightsof ownership are retained by theorganization which is the employer ofthe inventor, with (1) an irrevocable,nonexclusive, royalty-free license to theGovernment and (2) an option for thecollaborator to elect an exclusive ornonexclusive license to Governmentowned rights under terms that complywith the appropriate licensing statutesand regulations.

Dated: August 14, 1996.Thomas D. Mays,Director, Office of Technology Development,OD, NCI.[FR Doc. 96–22393 Filed 8–30–96; 8:45 am]BILLING CODE 4140–010–M

National Institute on Deafness andOther Communication Disorders;Notice of Closed Meeting

Pursuant to Section 10(d) of theFederal Advisory Committee Act, asamended (5 United States CodeAppendix 2), notice is hereby given ofthe following meeting:

Name of Committee: National Institute onDeafness and Other CommunicationDisorders Special Emphasis Panel.

Date: September 10–11, 1996.Time: September 10–8 am to 5 pm;

September 11–8 am to adjournment.Place: Holiday Inn, Chevy Chase, 5520

Wisconsin Avenue, Chevy Chase, MD 20815.Contact Person: Mary Nekola, Ph.D.,

Scientific Review Administrator, NIDCD/DEA/SRB, EPS Room 400C, 6120 ExecutiveBoulevard, MSC 7180, Bethesda, MD 20892–7180, 301–496–8683.

Purpose/Agenda: To review and evaluategrant applications. The meeting will be


closed in accordance with the provisions setforth in sections 552b(c)(4) and 552b(c)(6),Title 5, United States Code. The applicationsand/or proposals and the discussion couldreveal confidential trade secrets orcommercial property such as patentablematerial and personal informationconcerning individuals associated with theapplications and/or proposals, the disclosureof which could constitute a clearlyunwarranted invasion of personal privacy.

This notice is being published less thanfifteen days prior to the meeting due to theurgent need to meet timing limitationsimposed by the review and funding cycle.(Catalog of Federal Domestic AssistanceProgram No. 93.173 Biological ResearchRelated to Deafness and CommunicationDisorders)

Dated: August 28, 1996.Susan K. Feldman,Committee Management Officer, NIH.[FR Doc. 96–22392 Filed 8–30–96; 8:45 am]BILLING CODE 4140–01–M

Division of Research Grants; Notice ofClosed Meetings

Pursuant to Section 10(d) of theFederal Advisory Committee Act, asamended (5 U.S.C. Appendix 2), noticeis hereby given of the following Divisionof Research Grants Special EmphasisPanel (SEP) meetings:

Purpose/Agenda: To review individualgrant applications.

Name of SEP: Microbiological andImmunological Sciences.

Date: September 11, 1996.Time: 11:00 a.m.Place: NIH, Rockledge 2, Room 4190,

Telephone Conference.Contact Person: Dr. Garrett Keefer,

Scientific Review Administrator, 671Rockledge Drive, Room 4190, Bethesda,Maryland 20892, (301) 435–1152.

Name of SEP: Clinical Sciences.Date: September 16, 1996.Time: 1:00 p.m.Place: NIH, Rockledge 2, Room 4100,

Telephone Conference.Contact Person: Dr. Jeanne Ketley,

Scientific Review Administrator, 671Rockledge Drive, Room 4100, Bethesda,Maryland 20892, (301) 435–1788.

This notice is being published less than 15days prior to the above meetings due to theurgent need to meet timing limitationsimposed by the grant review and fundingcycle.

The meetings will be closed in accordancewith the provisions set forth in secs.552b(c)(4) and 552b(c)(6), Title 5, U.S.C.Applications and/or proposals and thediscussions could reveal confidential tradesecrets or commercial property such aspatentable material and personal informationconcerning individuals associated with theapplications and/or proposals, the disclosureof which would constitute a clearlyunwarranted invasion of personal privacy.(Catalog of Federal Domestic AssistanceProgram Nos. 93.306, 93.333, 93.337, 93.393–

93.396, 93.837–93.844, 93.846–93.878,93.892, 93.893, National Institutes of Health,HHS)

Dated: August 28, 1996.Susan K. Feldman,Committee Management Officer, NIH.[FR Doc. 96–22391 Filed 8–30–96; 8:45 am]BILLING CODE 4140–01–M


Bureau of Land Management

[WO–310–1310–01–24–1A]

Extension of Currently ApprovedInformation Collection; OMB ApprovalNumber 1004–0074

AGENCY: Bureau of Land Management,Interior.ACTION: Notice and request forcomments.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995, theBureau of Land Management (BLM) isannouncing its intention to request anextension of approval for the collectionof information which will be used todetermine the highest qualified bonusbid submitted for a competitive oil andgas or geothermal lease (Form 3000–2)and enable the BLM to completeenvironmental reviews in compliancewith the National Environmental PolicyAct of 1969 (Form 3200–9). Theinformation supplied allows the BLM todetermine whether a bidder is qualifiedto hold a lease and to conductgeothermal resource operations underthe terms of the Mineral Leasing Act of1920 and the Geothermal Steam Act of1969.DATE: Comments must be submitted onor before November 4, 1996.ADDRESSES: Comments may be mailedto: Regulatory Management Team (420),Bureau of Land Management, 1849 CStreet NW, Room 401 LS Bldg.,Washington, D.C. 20240.

Comments may be sent via Internet to:[email protected].

Comments may be hand delivered tothe Bureau of Land ManagementAdministrative Record, Room 401, 1620L Street N.W., Washington, D.C.

Comments will be available for publicreview at the L Street address duringregular business hours (7:45 a.m. to 4:15p.m., Monday through Friday).FOR FURTHER INFORMATION CONTACT:Gloria J. Austin, (202) 452–0340.SUPPLEMENTARY INFORMATION: Inaccordance with 5 CFR 1320.8(d), theBLM is required to provide a 60-daynotice in the Federal Registerconcerning a proposed collection of

information to solicit comments on (a)whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation will have practical utility;(b) the accuracy of the agency’s estimateof the burden of the proposedcollection, including the validity of themethodology and assumptions used; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon those who are to respond, includingthrough the use of appropriateautomated, electronic, mechanical, orother technological collectiontechniques or other forms of informationtechnology.

The Mineral Leasing Act of 1920, asamended (30 U.S.C. 181 et seq.) givesthe Secretary of the Interiorresponsibility for oil and gas leasing onapproximately 600 million acres ofpublic lands and national forests, andprivate lands where minerals have beenreserved by the Federal Government.The Federal Onshore Oil and GasLeasing Reform Act of 1987 was passedby Congress to require that all publiclands that are available for oil and gasleasing be offered first by competitiveoral bidding. The Department of theInterior Appropriations Act of 1981 (43U.S.C. 6508) provides for thecompetitive leasing of the lands in theNational Petroleum Reserve-Alaska(NPR–A). The Geothermal Steam Act of1970 (30 U.S.C. 1001–1025) authorizesthe Secretary of the Interior to issueleases for geothermal development. Thelands available for exploration andleasing include public, withdrawn,reserved, and acquired landsadministered by the Bureau of LandManagement (BLM). The NationalEnvironmental Policy Act (NEPA) of1969 established a national policy toprotect the environment.

The regulations within 43 CFR Group3100 outline procedures for obtaining alease to explore for, develop, andproduce oil and gas resources located onFederal lands. The regulations within 43CFR Group 3200 provide for theissuance of geothermal leases and theexploration, development andutilization of Federally-ownedgeothermal resources. The BLM needsthe information requested on the twoforms to process bids for oil and gas andgeothermal lands and to completeenvironmental reviews required by theNEPA.

The information will be used todetermine the highest qualified bonusbid submitted for a competitive oil andgas or geothermal resources parcel on


form 3000–2, ‘‘Competitive Oil and Gasor Geothermal Resources Lease Bid’’. Inthe case of form 3200–9, ‘‘Notice ofIntent to conduct Geothermal ResourcesExploration Operations’’, theinformation will be used to enable theBLM to complete environmentalreviews in compliance with theNational Environmental Policy Act of1969. The BLM needs the informationrequested to determine the eligibility ofan applicant to hold, explore for,develop and produce oil and gas andgeothermal resources on Federal lands.

The forms are submitted in person orby mail to the proper BLM Office. ForForm 3000–2, the name and address ofthe bidder is needed to identify thebidder and allow the authorized officerto ensure that the bidder meets therequirements of the regulations. Thetotal bid and payment submitted withbid is necessary to determine thespecific bid and that the bid isaccompanied by one-fifth of the amountbid as required by the regulations for aGeothermal bid or the minimumacceptable bid, first year’s rental andadministrative fee as required by theregulations for an oil and gas bid. ForForm 3200–9, names and addresses areneeded to identify entities who will beconducting operations on the land. Thedescription of land is necessary todetermine the area to be entered ordisturbed by the proposed explorationoperation. Dates of commencement andcompletion are necessary to determinehow long the applicant/operator/contractor intends to conduct operationson the land. The forms were developedin 1990 and 1986 respectively and theinformation required from the publicremains the same.

Based on past experience conductingoil and gas and geothermal lease salesand administering geothermalexploration operations, the BLMestimates that the public reportingburden for completing to be two hours.The bidder/lessee/operator/contractorhas access to records, plats, and mapsnecessary for providing landdescriptions. The estimate includes timespent researching bids and assemblinginformation as well as the time ofclerical personnel.

It is estimated that approximately 393Form 3000–2 will be filed annually fora total of 786 reporting hours andapproximately 50 form 3200–9 will befiled annually for a total of 100reporting hours. Respondents vary fromindividuals and small businesses tolarge corporations.

Any interested member of the publicmay request and obtain, without charge,a copy of Form 3000–2 or 3200–9 bycontacting the person identified under

FOR FURTHER INFORMATION CONTACT. Allresponses to the notice will besummarized and included in the requestfor Office of Management and Budgetapproval. All comments will alsobecome part of the public record.

Dated: August 23, 1996.Annetta Cheek,Leader, Regulatory Management Team.[FR Doc. 96–22362 Filed 8–30–96; 8:45 am]BILLING CODE 4310–84–M

[UTU–72033]

Utah; Proposed Reinstatement ofTerminated Oil and Gas Lease

In accordance with Title IV of theFederal Oil and Gas RoyaltyManagement Act (P.L. 97–451), apetition for reinstatement of oil and gaslease UTU–72033 for lands in San JuanCounty, Utah, was timely filed andrequired rentals accruing from July 1,1996, the date of termination, have beenpaid.

The lessees have agreed to new leaseterms for rentals and royalties at rates of$10 per acre and 162⁄3 percent,respectively. The $500 administrativefee has been paid and the lessees havereimbursed the Bureau of LandManagement for the cost of publishingthis notice.

Having met all the requirements forreinstatement of the lease and set out inSection 31 (d) and (e) of the MineralLeasing Act of 1920 (30 U.S.C. 188), theBureau of Land Management isproposing to reinstate lease UTU–72033,effective July 1, 1996, subject to theoriginal terms and conditions of thelease and the increased rental androyalty rates cited above.Robert Lopez,Group Leader, Minerals Adjudication Group.[FR Doc. 96–22390 Filed 8–30–96; 8:45 am]BILLING CODE 4310–DQ–M

[CA–056–1430–01 and CA–059–1430–01;CACA 7337, CACA 7366, and CAS 585]

Termination of Classifications ofPublic Lands for Small TractClassification Number 506, Recreationand Public Purpose, and Multiple-UseManagement, and Opening Order;California

AGENCY: Bureau of Land Management,Interior.ACTION: Notice.

SUMMARY: This notice terminates thefollowing classifications of public lands,either in their entirety or in part: CACA7337—Small Tract ClassificationNumber 506, CACA 7366—Recreation

and Public Purposes, and CAS 585—Multiple-Use Management. The landswill be opened to the operation of thepublic land laws including the mininglaws, subject to valid existing rights, theprovisions of existing withdrawals,other segregations of record, and therequirements of applicable law. Thelands have been and remain open to theoperation of the mineral leasing laws.EFFECTIVE DATE: Termination of theclassifications are effective onSeptember 3, 1996. The lands will beopen to entry at 10 a.m. on October 3,1996.FOR FURTHER INFORMATION CONTACT:Kathy Gary or Duane Marti, BLMCalifornia State Office (CA–931), 2135Butano Drive, Sacramento, California95825–0451; telephone number 916–979–2858.


(1). CACA 7337—Small Tract ActClassification Number 506

On January 4, 1957, 1,581.65 acres ofpublic lands were classified as suitablefor lease under the Act of June 1, 1938,as amended (43 U.S.C. 682a–e). Thelands were segregated fromappropriation under the public landlaws and the general mining laws. Theclassification decision was published inthe Federal Register on January 11,1957 (22FR245). On March 25, 1992,that classification was terminated for allbut 180 acres, which are describedbelow. The decision to terminate theclassification, in part, was published inthe Federal Register on February 24,1992 (57FR6331).

Pursuant to the Federal Land Policyand Management Act of 1976, asamended (43 U.S.C. 1701 et seq.), andthe regulations contained in 43 CFR2091.7–1(b)(2), Small Tract ActClassification Number 506 is herebyterminated in its entirety and thesegregation for the following describedland is hereby terminated:

Mount Diablo MeridianT. 33 N., R. 10W.,

Sec. 13, lots 4 through 18, inclusive,W1⁄2NE1⁄4, E1⁄2NE1⁄4NW1⁄4,E1⁄2NW1⁄4NE1⁄4NW1⁄4.

The area described aggregates 180 acres inTrinity County.

The classification no longer serves aneeded purpose as to the land describedabove and is hereby terminated.

(2). CACA 7366—Recreation and PublicPurposes Classification Number C3–1131

On May 20, 1971, 231.85 acres ofpublic lands were classified as suitablefor lease or sale under the Recreation


and Public Purposes Act of June 14,1926, as amended (43 U.S.C. 869 etseq.). The land was segregated fromappropriation under the public landslaws and the general mining laws.

Pursuant to the Federal Land Policyand Management Act of 1976, asamended (43 U.S.C. 1701 et seq.), andthe regulations contained in 43 CFR2091.7–1(b)(1), Recreation and PublicPurposes Classification Number C3–1131 is hereby terminated, in part, andthe segregation for the followingdescribed land is hereby terminated:T. 33N., R. 9W.,

Sec. 5, NE1⁄4SE1⁄4Sec. 6, lots 7, 11, 18 and 19;Sec. 18, lot 91 and tract 86.The areas described aggregate 168.69 acres

in Trinity County.

The classification no longer serves aneeded purpose as to the land describedabove and is hereby terminated.

(3). CAS 585—Classification of PublicLands for Multiple-Use Management

On January 25, 1968, approximately103,683 acres of public lands wereclassified for multiple-use managementunder the Act of September 19, 1964 (43U.S.C. 1411–18). The lands weresegregated from appropriation onlyunder the agricultural land laws (43U.S.C., Chs. 7 and 9, 25 U.S.C. 334) andfrom sale under section 2455 of theRevised Statutes (43 U.S.C. 1171).

Pursuant to the Federal Land Policyand Management Act of 1976, asamended (43 U.S.C. 1701 et seq.), andthe regulations contained in 43 CFR2091.7–1(b)(3) and 2461.5(c)(2), theclassification of public lands formultiple-use management, CAS 585, ishereby terminated in its entirety and thesegregation for the following describedland is hereby terminated:

Mount Diablo MeridianAll public lands inT. 42 N., R. 9 E.,

Secs. 1, 2 ,3, 10, 11, 12, 14, and 15;T. 41 N., R. 10 E.,

Secs. 1 to 3, inclusive, and 10 to 13,inclusive;

T. 42 N., R. 10 E.,Secs. 1 to 12, inclusive;

T. 40 N., R. 11 E.,Secs. 1 to 4, inclusive, 9 to 16, inclusive,

21 to 27, inclusive, 34, and 35;T. 41 N., R. 11 E.,

Secs. 1 to 29, inclusive, and 32 to 36,inclusive;


T. 40 N., R. 12 E.,Secs. 3 to 10, inclusive, 15 to 20, inclusive,

22, and 30;T. 41 N., R. 12 E.,

Secs. 4 to 9, inclusive, 16 to 22, inclusive,24, 25, and 28 to 34, inclusive;

T. 42 N., R. 12 E.,

Secs. 5 to 7, inclusive, 28, 29, 32, 33, and34;


T. 39 N., R. 13 E.,Secs. 1 to 5, inclusive, 11, and 12;

Tps. 40 to 41 N., R. 13 E.,T. 42 N., R. 13 E.,

Sec. 1, SE1⁄4NE1⁄4;Secs. 23 to 26, inclusive, and 35;

T. 43 N., R. 13 E.,Secs. 2, 3, 10, 13, and 15;Secs. 19 to 24, inclusive, and 26 to 30,

inclusive;T. 44 N., R. 13 E.,

Secs. 1, 2, 3, 10, and 11;Secs., 14 to 16, inclusive, 22, 23, 26, 27,

34, and 35;T. 45 N., R. 13 E.,

Secs. 27, 34, and 35;T. 39 N., R. 14 E.,

Secs. 5 and 6;T. 40 N., R. 14 E.,

Secs. 4 to 9, inclusive, 16 to 20, inclusive,and 29 to 32, inclusive;

T. 42 N., R. 14 E.,Secs. 6 to 8, inclusive, 17, 19, 30, and 31;

T. 43 N., R. 14 E.,Secs. 4, 5, 7, and 17 to 19, inclusive;

T. 44 N., R. 14 E.,Secs. 3, 17, 19 to 21, inclusive, 28 to 32,

inclusive;Sec. 33, NE1⁄4NE1⁄2;

T. 46 N., R. 14 E.,Sec. 33;

T. 47 N., R. 14 E.,Sec. 25.The areas described aggregate

approximately 103,683 acres in ModocCounty.

The classification no longer serves aneeded purpose as to the landsdescribed above and is herebyterminated.

At 10 a.m. on October 3, 1996, thelands described above will be opened tothe operation of the public land lawsgenerally, subject to valid existingrights, the provision of existingwithdrawals, other segregations ofrecord, and the requirement ofapplicable law. All valid applicationsreceived at or prior to 10 a.m. onOctober 3, 1996 shall be considered assimultaneously filed at that time. Thosereceived thereafter shall be consideredin the order of filing.

At 10 a.m. on October 3, 1996, thelands described above will be opened tolocation and entry under the UnitedStates mining laws, subject to validexisting rights, the provisions of existingwithdrawals, other segregations ofrecord, and the requirements ofapplicable law. Appropriation of any ofthe lands described in this notice underthe general mining laws prior to the dateand time of restoration is unauthorized.Any such attempted appropriation,including attempted adverse possessionunder 30 U.S.C. 38 (1988), shall vest norights against the United States. Acts

required to establish a location and toinitiate a right of possession aregoverned by State law where not inconflict with Federal law. The Bureau ofLand Management will not intervene indisputes between rival locators overpossessory rights since Congress hasprovided for such determination in localcourts.

Dated: August 23, 1996.Ed Hastey,State Director.[FR Doc. 96–22270 Filed 8–30–96; 8:45 am]BILLING CODE 4310–40–P

[ID–957–1220–00]

Idaho: Filing of Plats of Survey

The plat of the following describedland was officially filed in the IdahoState Office, Bureau of LandManagement, Boise, Idaho, effective9:00 a.m. August 22, 1996.

The plat representing the dependentresurvey of a portion of thesubdivisional lines, the subdivision ofsection 28, and the survey of lot 1 insection 28, T. 9 N., R. 36 E., BoiseMeridian, Idaho, Group No. 971, wasaccepted, August 22, 1996.

This survey was executed to meetcertain administrative needs of theBureau of Land Management. Allinquiries concerning the survey of theabove described land must be sent to theChief, Cadastral Survey, Idaho StateOffice, Bureau of Land Management,3380 Americana Terrace, Boise, Idaho,83706–2500.

Dated: August 22, 1996.Duane E. Olsen,Chief Cadastral Surveyor for Idaho.[FR Doc. 96–22269 Filed 8–30–96; 8:45 am]BILLING CODE 4310–GG–M

Minerals Management Service

[FES 96–43]

Notice of Availability of the FinalEnvironmental Impact Statement forthe Proposed Outer Continental ShelfOil and Gas Leasing Program for 1997–2002

The Minerals Management Servicehas prepared a final EnvironmentalImpact Statement (EIS) relating to theProposed Outer Continental Shelf Oiland Gas Leasing Program for 1997–2002pursuant to section 102(2)(C) of theNational Environmental Policy Act of1969.

Information on the availability of thefinal EIS can be obtained from: RegionalDirector, Alaska Region, Minerals


Management Service, 949 East 36thAvenue, Anchorage, Alaska 99508–4302, attention: Public Information,telephone (907) 271–6070 or (800) 764–2627. For availability of the final EISalong the Pacific Coast, contact:Regional Director, Pacific Region,Minerals Management Service, 770Paseo, Camarillo, California 93010,attention: Public Information, telephone(805) 389–7520 or (800) 672–2627. Foravailability of the final EIS along theGulf of Mexico Coast and Atlantic Coast,contact Regional Director, Gulf ofMexico Region, Minerals ManagementService, 1201 Elmwood Park Boulevard,New Orleans, Louisiana 70123–2394,attention: Public Information, telephone(504) 736–2519 or (800) 200–GULF.Information on the availability of thefinal EIS can be obtained from Chief,Environmental Projects CoordinationBranch, Minerals Management Service,381 Elden Street, Herndon, Virginia20170–4817, telephone (703) 787–1674.

Copies of the final EIS will beavailable for review in public librarieslocated throughout the coastal States.Information regarding the locations oflibraries where copies of the final EISwill be available may be obtained fromthe offices listed above.

Lucy R. Querques,Acting Associate Director for OffshoreMinerals Management.

Approved: August 27, 1996.Willie R. Taylor,Director, Office of Environmental Policy andCompliance.[FR Doc. 96–22338 Filed 8–30–96; 8:45 am]BILLING CODE 4310–MR–M

National Park Service

Notice of Request for Reinstatement,With Change, of a PreviouslyApproved Information Collection

AGENCY: National Park Service, DOI.ACTION: Notice and request forcomments.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995, thisnotice announces the National ParkService’s (NPS’) intention to request areinstatement of, and revisions to, apreviously approved informationcollection for certain activities related to36 CFR 61, Procedures for State, Tribal,and Local Historic PreservationPrograms. The proposed revisions arebased on program changes made since1989.DATES: Comments to this notice must bereceived by November 4, 1996 to beassured of consideration.

ADDITIONAL INFORMATION OR COMMENTS:Contact John W. Renaud, ProjectCoordinator, Branch of State, Tribal, andLocal Programs, Heritage PreservationServices Division, National ParkService, U.S. Department of the Interior,P.O. Box 37127, Washington D.C.20013–7127, (202) 343–1059.

SUPPLEMENTARY INFORMATION:Title: 36 CFR 61, Procedures for State,

Tribal, and Local Government HistoricPreservation Programs.

OMB Number: 1024–0038.Type of Request: Reinstatement, with

change, of a previously approvedcollection for which approval hasexpired.

Abstract: This information collectionhas an impact on State and localgovernments that wish to participateformally in the national historicpreservation program and who wish toapply for Historic Preservation Fundgrant assistance. The National ParkService uses the information to ensurecompliance with the National HistoricPreservation Act and government-widegrant requirements.

Estimate of Burden: Public reportingburden for this collection of informationis estimated to average 14.06 hours perresponse.

Respondents: State and LocalGovernments.

Estimated Number of Respondents:363. This is the gross number ofrespondents for all of the documentsincluded in this information collection.The net number of States and localgovernments participating in thisinformation collection annually is 119.

Estimated Number of Responses perRespondent: 1.07.

Estimated Total Annual Burden onRespondents: 5,384 hours.

Copies of this information collectioncan be obtained from Mr. John W.Renaud, Project Coordinator, at (202343–1059).

Send comments regarding theaccuracy of the burden estimate, ways tominimize the burden, including throughthe use of automated collection or otherforms of information technology, or anyother aspect of this collection ofinformation to:

Mr. John W. Renaud, ProjectCoordinator, Branch of State, Tribal, andLocal Programs, Heritage PreservationServices, National Park Service, U.S.Department of the Interior, P.O. Box37127, Washington, DC 20013–7127.

All responses to this notice will besummarized and included in the request

for OMB approval. All comments willalso become a matter of public record.Terry N. Tesar,Information Collection Coordinator.[FR Doc. 96–22329 Filed 8–30–96; 8:45 am]BILLING CODE 4310–70–M

Draft General Management Plan/Environmental Impact Statement,Independence National Historical Park,PA; Notice of Public Meeting

Pursuant to Council onEnvironmental Quality regulations andNational Park Service policy, theNational Park Service (NPS) announcestwo public meetings to gather publiccomments on a September, 1996Supplement to the draft IndependenceNational Historical Park GeneralManagement Plan/EnvironmentalImpact Statement and newsletter.

In accordance with section 102(2)(C)of the National Environmental PolicyAct of 1969, the National Park Servicehas prepared a general managementplan/environmental impact statementfor Independence National HistoricalPark which was on public review duringSeptember, October, and November,1995. A Supplement has been producedand will be distributed to cooperatingagencies, interested groups, individuals,and institutions. The Supplement, aswell as the GMP/EIS, are available bytelephoning 215–597–1841 and also willbe available at the IndependenceNational Historical Park Visitor Center,Third and Chestnut Streets duringpublic meetings.

Further written public comments willbe accepted on the GMP/EIS andSupplement up to October 18, 1996 andoral comments will be accepted at thepublic meetings to be held in theIndependence National Historical ParkVisitor Center between the hours of 2:00p.m. and 4:00 p.m. on September 24,1996 and again on September 25, 1996between the hours of 7:00 p.m. and 9:00p.m. The Visitor Center is located atThird and Chestnut Streets,Philadelphia, Pennsylvania.

The GMP/EIS analyzes the issues,needs, and concerns of IndependenceNational Historical Park and attempts toaddress them. Examples of such itemsinclude preservation and use of historicstructures, visitor orientation andcirculation, facilities use anddevelopment, park interpretation, andthe proposed redevelopment of theIndependence Mall. Six alternatives foraddressing these issues, needs andconcerns are outlined within thedocument. The Supplement addressesrevisions to the preferred alternative


being considered as a result of publiccomment on the plan.

Written comments may be sent toIndependence National Historical Park,313 Walnut Street, Philadelphia,Pennsylvania 19106.

Dated: August 20, 1996.Warren D. Beach,Associate Field Director, Northeast FieldArea.[FR Doc. 96–22330 Filed 8–30–96; 8:45 am]BILLING CODE 4310–70–M

AGENCY FOR INTERNATIONALDEVELOPMENT

Submission for OMB EmergencyReview; Comment Request

U.S. Agency for InternationalDevelopment has submitted thefollowing information collection (ICR),utilizing emergency review procedures,to the Office of Management Budget(OMB) for review and clearanceaccordance with the PaperworkReduction Act of 1995 (P.L. 104–13, 44U.S.C. Chapter 35). OMB approval hasbeen requested by September 20, 1996.A copy of this ICR, with applicablesupporting documentation, may beobtained by calling Mary Ann Ball, M/AS/ISS, (202) 736–4743 or via [email protected].

Written comments and questionsabout ICR listed below should beforwarded to Victoria Wassmer, OMBDesk Officer, Room 10202, NewExecutive Office Building, Washington,D.C. 20503.

The Office of Management and Budgetis particularly interested in commentswhich: (a) Evaluate whether thecollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information will havepractical utility; (b) Evaluate theaccuracy of the agency’s estimate of theburden of the proposed collection ofinformation, including the validity ofthe methodology and assumptions used;(c) Enhance the quality, utility, andclarity of the information to becollected; and (d) Minimize the burdenof the collection of information on therespondents, including the use ofautomated collection techniques orother forms of information technology.SUPPLEMENTARY INFORMATION:

Title: Financial Status Report.OMB Number: None.Type of Review: New Collection.Description: USAID for Eastern

Europe and Newly Independent States(ENI), requests a class deviation from 22CFR 226.52 concerning the use of

standard forms 269–269A and 272/272Afor financial reporting. 22 CFR226.52(b)(1) states that ‘‘whenadditional information is needed tocomply with legislative requirements,USAID shall issue instructions torequire recipients to submit suchinformation in the ‘‘remarks’’ sectionthat is not legislatively required and,therefore seeks a class deviation to thestatute from the Office of Managementand Budget (OMB) in accordance with22 CFR 2276.4. The ENI Bureau wantsto require that grant and cooperativeagreement recipients working inmultiple countries submit expenditurereports by country.ANNUAL REPORTING BURDEN:

Number of Respondents: 80.Total Annual Responses: 640.Total Annual Hours requested: 320.Dated: August 13, 1996.

Genease E. Pettigrew,Chief, Information Support Services Division,Office of Administrative Services, Bureau ofManagement.[FR Doc. 96–22389 Filed 8–30–96; 8:45 am]BILLING CODE 6116–01–M

DEPARTMENT OF JUSTICE

Antitrust Division

United States v. Universal ShippersAssociation, Inc.; Proposed FinalJudgment and Competitive ImpactStatement

Notice is hereby given pursuant to theAntitrust Procedures and Penalties Act,15 U.S.C. § 16(b)–(h), that a proposedFinal Judgment, Stipulation, andCompetitive Impact Statement havebeen filed with the United StatesDistrict Court for the Eastern District ofVirginia in United States v. UniversalShippers Association, Inc., Civil No. 96–1154–A as to Universal ShippersAssociation, Inc.

The Complaint alleges that thedefendant and Lykes Bros. SteamshipCo., Inc. entered into a contractcontaining an ‘‘automatic ratedifferential clause,’’ which requiredLykes to charge competing shippers ofwine and spirits from Europe to theUnited States rates for oceantransportation services that were at least5% higher than Universal’s for anylesser volume of cargo. This clauserequired maintenance of a 5%differential in favor of Universal at alltimes, thereby placing shippers whocompete with Universal at a competitivedisadvantage.

The proposed Final Judgment enjoinsthe defendant from maintaining,agreeing to, or enforcing an automatic

rate differential clause in any of itscontracts, and also requires defendant toestablish an antitrust complianceprogram.

Public comment on the proposedFinal Judgment is invited within thestatutory 60-day comment period. Suchcomments and responses thereto will bepublished in the Federal Register andfiled with the Court. Comments shouldbe directed to Roger W. Fones, Chief,Transportation, Energy and AgricultureSection, Suite 500, U.S. Department ofJustice, Antitrust Division, 325 SeventhStreet, N.W., Washington, D.C. 20530(telephone: 202/307–6351).Rebecca P. Dick,Deputy Director, Office of Operations,Antitrust Division.

Stipulation

It is stipulated by and between theundersigned parties, by their respectiveattorneys that:

1. The Court has jurisdiction over thesubject matter of this action and overeach of the parties thereto, and venue ofthis action is proper in the EasternDistrict of Virginia;

2. The parties consent that a FinalJudgment in the form hereto attachedmay be filed and entered by the Court,upon the motion of any party or uponthe Court’s own motion, at any timeafter compliance with the requirementsof the Antitrust Procedures andPenalties Act (15 U.S.C. § 16), andwithout further notice to any party orother proceedings, provided thatPlaintiff has not withdrawn its consent,which it may do at any time before theentry of the proposed Final Judgment byserving notice thereof on Defendantsand by filing that notice with the Court;

3. In the event Plaintiff withdraws itsconsent or if the proposed FinalJudgment is not entered pursuant to thisStipulation, this Stipulation shall be ofno effect whatsoever, and the making ofthis Stipulation shall be withoutprejudice to any party in this or in anyother proceeding.

This 22nd day of August, 1996.


For the Plaintiff United States of America:Roger W. Fones,Chief, Transportation, Energy and AgricultureSection.Donna N. Kooperstein,Assistant Chief, Transportation, Energy andAgriculture Section.Michele B. Cano,Attorney, Transportation, Energy andAgriculture Section.Dennis E. Szybala,Assistant United States Attorney V.S.B. #22785.

For the Defendant Universal ShippersAssociation, Inc.:Ronald N. Cobert, Esquire,Grove, Jaskiewicz and Cobert, Suite 400, 1730M Street, N.W., Washington, D.C. 20036–4579.

Final JudgmentPlaintiff, United States of America,

filed its Complaint on August 22, 1996.United States of America and UniversalShippers Association, Inc., by theirrespective attorneys, have consented tothe entry of this Final Judgment withouttrial or adjudication of any issue of factor law. This Final Judgment shall not beevidence against nor an admission byany party with respect to any issue offact or law. Therefore, before the takingof any testimony and without trial oradjudication of any issue of fact or lawherein, and upon consent of the parties,it is hereby

Ordered, Adjudged, and Decreed, asfollows:

I

JurisdictionThis Court has jurisdiction over the

subject matter of this action and overeach of the parties consenting hereto.The Complaint states a claim uponwhich relief may be granted against thedefendant under Section 1 of theSherman Act, 15 U.S.C. § 1.

II

DefinitionsAs used herein, the term:(A) Automatic rate differential clause

means any provision in a contract thedefendant has with an ocean commoncarrier or conference that requires theocean common carrier or conference tomaintain a differential in rates, whetherexpressed as a percentage or as aspecific amount, between rates chargedby the ocean common carrier orconference to the defendant under thecontract and rates charged by the oceancommon carrier or conference to anyother shipper of the same or competingcommodities for lesser volumes.

(B) Contract means any contract forthe provision of ocean linertransportation services, including a

service contract. ‘‘Contract’’ does notinclude any contract for charter servicesor for ocean common carriage providedat a tariff rate filed pursuant to 46 U.S.C.App. § 1707.

(C) Conference means an associationof ocean common carriers permitted,pursuant to an approved or effectiveagreement, to engage in concertedactivity and to utilize a common tariffin accordance with 46 U.S.C. App.§ 1701, et seq.

(D) Defendant means UniversalShippers Association, Inc., each of itspredecessors, successors, divisions, andsubsidiaries, each other person directlyor indirectly, wholly or in part, ownedor controlled by it, and each partnershipor joint venture to which any of themis a party, and all present and formeremployees, directors, officers, agents,consultants or other persons acting foror on behalf of any of them.

(E) Service contract means anycontract between a shipper and anocean common carrier or conference inwhich the shipper makes a commitmentto provide a certain minimum quantityof cargo over a fixed time period, andthe ocean common carrier or conferencecommits to a certain rate or rateschedule as well as a defined servicelevel.

(F) Shipper means the owner of cargotransported or the person for whoseaccount the ocean transportation ofcargo is provided or the person to whomdelivery of cargo is made; ‘‘shipper’’also means any group of shippers,including a shippers’ association.

(G) Shippers’ association means agroup of shippers that consolidates ordistributes freight on a nonprofit basisfor the members of the group in orderto secure carload, truckload, or othervolume rates or service contracts.

III

Applicability

(A) This Final Judgment applies to thedefendant, and to each of itssubsidiaries, successors, assigns,officers, directors, employees, andagents.

IV

Prohibited Conduct

Defendant is restrained and enjoinedfrom maintaining, adopting, agreeing to,abiding by, or enforcing an automaticrate differential clause in any contract.

V

Nullification

Any automatic rate differential clausein any of defendant’s contracts shall benull and void by virtue of this Final

Judgment. Promptly upon entry of thisFinal Judgment, defendant shall notifyin writing each ocean common carrier orconference with whom defendant has acontract containing an automatic ratedifferential clause that this FinalJudgment prohibits such clause.

VI

Compliance MeasuresDefendant is ordered:(A) To send, promptly upon entry of

this Final Judgment, a copy of this FinalJudgment to each ocean common carrieror conference whose contract withdefendant contains an automatic ratedifferential clause;

(B) To provide a copy of this FinalJudgment to each director and officer atthe time they take office, and to thoseemployees that negotiate contracts, andto maintain a record or log of signaturesof those persons that they received,read, understand to the best of theirability, and agree to abide by this FinalJudgment and that they have beenadvised and understand thatnoncompliance with the Final Judgmentmay result in disciplinary measures andalso may result in conviction of theperson for criminal contempt of court;

(C) To maintain an antitrustcompliance program which shallinclude an annual briefing of thedefendant’s Board of Directors, officersand non-clerical employees on thisFinal Judgment and the antitrust laws.

VII

Plaintiff Access(A) To determine or secure

compliance with this Final Judgmentand for no other purpose, dulyauthorized representatives of theplaintiff shall, upon written request ofthe Assistant Attorney General in chargeof the Antitrust Division, and onreasonable notice to the defendant madeto its principal office, be permitted,subject to any legally recognizedprivilege:

(1) Access during the defendant’soffice hours to inspect and copy alldocuments in the possession or underthe control of the defendant, who mayhave counsel present, relating to anymatters contained in this FinalJudgment; and

(2) Subject to the reasonableconvenience of the defendant andwithout restraint or interference from it,to interview officers, employees oragents of the defendant, who may havecounsel present, regarding such matters.

(B) Upon the written request of theAssistant Attorney General in charge ofthe Antitrust Division made to thedefendant’s principal office, the


1 Independent carriers and conferences may alsoenter into service contracts with non-vesseloperating common carriers (‘‘NVOCCs’’). AnNVOCC offers transportation services to shippersbut does not operate the vessels. NVOCCs typicallyconsolidate the freight of small shippers and thenarrange for carriage of the consolidated freight.

defendant shall submit such writtenreports, under oath if requested, relatingto any matters contained in this FinalJudgment as may be reasonablyrequested, subject to any legallyrecognized privilege.

(C) No information or documentsobtained by the means provided inSection VIII shall be divulged by theplaintiff to any person other than a dulyauthorized representative of theExecutive Branch of the United States,except in the course of legal proceedingsto which the United States is a party, orfor the purpose of securing compliancewith this Final Judgment, or asotherwise required by law.

(D) If at the time information ordocuments are furnished by thedefendant to plaintiff, the defendantrepresents and identifies in writing thematerial in any such information ordocuments to which a claim ofprotection may be asserted under Rule26(c)(7) of the Federal Rules of CivilProcedure, and defendant marks eachpertinent page of such material,‘‘Subject to claim of protection underRule 26(c)(7) of the Federal Rules ofCivil Procedure,’’ then 10 days noticeshall be given by plaintiff to defendantprior to divulging such material in anylegal proceeding (other than a grand juryproceeding) to which defendant is not aparty.

VIII

Further Elements of the Final Judgment

(A) This Final Judgment shall expireten years from the date of entry.

(B) Jurisdiction is retained by thisCourt for the purpose of enabling theparties to this Final Judgment to applyto this Court at any time for furtherorders and directions as may benecessary or appropriate to carry out orconstrue this Final Judgment, to modifyor terminate any of its provisions, toenforce compliance, and to punishviolations of its provisions.

(C) Entry of this Final Judgment is inthe public interest.

Dated: llll.lllllllllllllllllllll

United States District Judge

Competitive Impact Statement

Pursuant to Section 2(b) of theAntitrust Procedures and Penalties Act,15 U.S.C. § 16(b)–(h), the United Statessubmits this Competitive ImpactStatement relating to the proposed FinalJudgment submitted for entry againstand with the consent of defendantUniversal Shippers Association, Inc.(‘‘Universal’’) in this civil proceeding.

I

Nature and Purpose of the Proceeding

On August 22, 1996, the United Statesfiled a civil antitrust Complaint allegingthat Universal Shippers Association,Inc. (‘‘Universal’’) entered into anagreement with an ocean commoncarrier that unreasonably restrainscompetition for ocean transportationservices in violation of Section 1 of theSherman Act, 15 U.S.C. § 1.

On the same date, the United Statesand Universal filed a Stipulation bywhich they consented to the entry of aproposed Final Judgment designed toundo the challenged agreement andprevent any recurrence of suchagreements in the future.

Entry of the proposed Final Judgmentwill terminate this action, except thatthe Court will retain jurisdiction overthe matter for any further proceedingsthat may be required to interpret,enforce or modify the Judgment or topunish violations of any of itsprovisions.

II

Practices Giving Rise to the AllegedViolation

Defendant Universal is a Delawarecorporation with its principal place ofbusiness in Bedford, Virginia. Ashippers’ association is a group of oceantransportation customers (‘‘shippers’’)that consolidates or distributes freightfor its members on a nonprofit basis inorder to secure volume discounts.Universal is itself a shippers’association and is composed of membershippers’ associations and largeindependent distillers that ship theirown products. Universal accounts forabout half of the wine and spiritscarried across the North Atlantic.

Prices in the ocean shipping industryare not set in a vigorously competitivemarket. The ocean shipping industry iscomprised of both conference andindependent ocean common carriers. Aconference is a legal cartel of oceancommon carriers; its members receiveimmunity from the antitrust laws (46U.S.C. App. § 1701, et seq., ‘‘1984Shipping Act’’) to agree on prices andengage in other otherwise illegalconcerted activity. There are over 15carriers that serve the North Atlantictrade between the United States andEurope, but the majority of these aremembers of the Trans-AtlanticConference Agreement (‘‘TACA’’).TACA is a conference that has receivedantitrust immunity to jointly fix pricesand limit capacity in the North Atlantictrade. Their prices are set forth in tariffsfiled with the Federal Maritime

Commission (‘‘FMC’’) and are availableto all shippers. Lykes Bros. SteamshipCo., Inc. (‘‘Lykes’’) is not a member ofTACA. Lykes is an ocean commoncarrier that provides oceantransportation services for cargoworldwide, including services in theNorth Atlantic trade between the UnitedStates and Northern Europe. It operatesas an independent carrier in the NorthAtlantic, offering transportation servicesto all shippers at tariff prices that it setsindependently. In trades with asignificant conference, such as theNorth Atlantic trade, independents aswell as the conference possess somedegree of market power over freightrates because there are relatively fewseparate sellers.

Under the 1984 Shipping Act,independent carriers or conferencesmay enter into service contracts withshippers or shippers’ associations. In aservice contract, a shipper or shippers’association commits to provide a certainminimum quantity of cargo over a fixedperiod, and the ocean carrier orconference commits to a certain priceschedule based on that volume. Servicecontract prices are typically lower thanthe tariff prices.1

Universal entered into a servicecontract with Lykes on or about October26, 1993, for the ocean transportation ofwine and spirits from Northern Europeto the United States. The Lykes/Universal contract contained thefollowing ‘‘automatic rate differentialclause’’:

Carrier guarantees that rates and charges inthis Contract shall at all times be at least 5%lower than any other tariff, Time Volume orother service contract rates for similarcommodities at a lesser volume andessentially similar transportation service. Asnecessary, Carrier shall reduce rates/chargesin this Contract as necessary to honor thisguarantee, promptly informing theAssociation and the FMC.

This clause requires Lykes to chargecompeting shippers or shippers’associations that purchase lesservolumes than Universal a rate that is atleast 5% higher than Universal’s.

Other shippers and shippers’associations compete with Universaland its members for importing winesand spirits into the United States.Universal’s competitors seek tominimize their costs by, inter alia,obtaining the lowest possible rates forthe ocean transportation of wine and


spirits. But the automatic ratedifferential clause limited Lykes’incentive to offer to Universal’scompetitors transportation rates asfavorable as Lykes could otherwiseoffer. To comply with the clause, Lykesmust either offer these shippers pricesthat are at least 5% higher than theprices in Universal’s service contract, orit must lower Universal’s price for all ofUniversal’s service contract shipmentsin order to maintain the 5% differential.The latter is not an attractive alternativefor Lykes, given Universal’s volume.And in either case, Universal’scompetitors pay prices 5% higher thanUniversal—regardless of Lykes’ cost ofproviding them with transportation—which adversely affects their ability tocompete with Universal.

Where there are few separate sellers,as is the case here, an automatic ratedifferential clause in effect places a taxon the buyer’s competitors. There is adanger that this tax will protect thebuyer from competition from firmswhose costs may otherwise be lowerthan its own, thus erecting barriers tocompetition. It is the raising of thesebarriers to competition with Universal,which already has a substantial marketpresence, that constitutes theunreasonable restraint of trade in thiscase.

III

Explanation of the Proposed FinalJudgment

The Plaintiff and Universal havestipulated that the Court may enter theproposed Final Judgment aftercompliance with the AntitrustProcedures and Penalties Act, 15 U.S.C.§ 16 (b)–(h). The proposed FinalJudgment provides that its entry doesnot constitute any evidence against oradmission of any party concerning anyissue of fact or law.

Under the provisions of Section 2(e)of the Antitrust Procedures andPenalties Act 15 U.S.C. § 16(e), theproposed Final Judgment may not beentered unless the Court finds that entryis in the public interest. Section VIII(C)of the proposed Final Judgment setsforth such a finding.

The proposed Final Judgment isdesigned to eliminate the automaticdifferential clause from defendant’scontracts for the provision of ocean linertransportation services with oceancommon carriers or conferences. UnderSection IV of the proposed FinalJudgment, Universal is restrained andenjoined from maintaining, adopting,agreeing to, abiding by, or enforcing anautomatic rate differential clause in anycontract with an ocean common carrier

or conference. Section VIII(A) of theproposed Final Judgment provides for aterm of ten years. Section V nullifiesany automatic rate differential clausescurrently in effect in any of Universal’scontracts with an ocean common carrieror conference.

Section VI(A) of the proposed FinalJudgment requires Universal to send acopy of the Final Judgment to eachocean common carrier whose contractwith Universal contains an automaticrate differential clause. Section IV(B)requires Universal to provide a copy ofthe Final Judgment to each director andofficer at the time they take office, andto those employees that negotiatecontracts for the provision of ocean linertransportation services, and to maintaina record and log of those signatures thatthey received, read, understand, andagree to abide by the Final Judgment.Section VI also obligates Universal tomaintain an antitrust complianceprogram that meets the obligationsspecified in Section VI(C). In addition,Section VII of the Final Judgment setsforth a series of measures by which theplaintiff may have access to informationneeded to determine or secureUniversal’s compliance with the FinalJudgment.

The relief in the proposed FinalJudgment removes the contractualclause that requires the ocean commoncarrier or conference to place in essencea 5% ‘‘tax’’ on the shipping costs ofUniversal’s competitors. It restores toUniversal’s competitors the ability tocompete for the lowest shipping prices.

IV

Alternative to the Proposed FinalJudgment

The alternative to the proposed FinalJudgment would be a full trial on themerits of the case. In the view of theDepartment of Justice, such a trialwould involve substantial costs to boththe United States and Universal and isnot warranted because the proposedFinal Judgment provides relief that willfully remedy the violations of theSherman Act alleged in the UnitedStates’ Complaint.

V

Remedies Available to Private LitigantsSection 4 of the Clayton Act, 15

U.S.C. § 15, provides that any personwho has been injured as a result ofconduct prohibited by the antitrust lawsmay bring suit in federal court torecover three times the damage suffered,as well as costs and reasonableattorney’s fees. Entry of the proposedFinal Judgment will neither impair norassist in the bringing of such actions.

Under the provisions of Section 5(a) ofthe Clayton Act, 15 U.S.C. § 16(a), theproposed Final Judgment has no primafacie effect in any subsequent actionthat may be brought against thedefendant in this matter.

VI

Procedures Available for Modification ofthe Proposed Final Judgment

As provided by the AntitrustProcedures and Penalties Act, anyperson believing that the proposedJudgment should be modified maysubmit written comments to Roger W.Fones, Chief; Transportation, Energy,and Agriculture Section; Department ofJustice, Antitrust Division; Liberty PlaceBuilding, Suite 500; 325 Seventh Street,N.W.; Washington, D.C. 20530, withinthe 60-day period provided by the Act.Comments received, and theGovernment’s responses to them, will befiled with the Court and published inthe Federal Register. All comments willbe given due consideration by theDepartment of Justice, which remainsfree, pursuant to Paragraph 2 of theStipulation, to withdraw its consent tothe proposed Final Judgment at anytime before its entry if the Departmentshould determine that somemodification of the Judgment iswarranted in the public interest. Theproposed Judgment itself provides thatthe Court will retain jurisdiction overthis action, and that the parties mayapply to the Court for such orders asmay be necessary or appropriate for themodification, interpretation, orenforcement of the Judgment.

VII

Determinative DocumentsNo materials and documents of the

type described in Section 2(b) of theAntitrust Procedures and Penalties Act,15 U.S.C. § 16(b), were considered informulating the proposed Judgment,consequently, none are filed herewith.

Dated: August 22, 1996.Respectfully submitted,

Michele B. Cano,Attorney, Antitrust Division, U.S. Departmentof Justice, 325 Seventh Street, N.W., Suite500, Washington, D.C. 2530, (202) 307–0813.Dennis E. Szybala,Assistant United States Attorney, V.S.B.#22785.

Certificate of ServiceI hereby certify that, on this day

August 22, 1996, I have caused to beserved, by hand delivery, a copy of theforegoing Complaint, Stipulation,proposed Final Judgment, andCompetitive Impact Statement oncounsel for Universal Shippers


Association, Inc. at the address below:Ronald N. Cobert, Esq., Grove,Jaskiewicz and Cobert, 1730 M Street,N.W., Suite 400, Washington, D.C.20036–4579.Michele B. Cano,United States Department of Justice, AntitrustDivision, 325 Seventh Street, N.W., Suite 500,Washington, D.C. 20530.[FR Doc. 96–22274 Filed 8–30–96; 8:45 am]BILLING CODE 4410–01–M

Notice Pursuant to the NationalCooperative Research and ProductionAct of 1993—The ATM Forum

Notice is hereby given that, on August1, 1996, pursuant to § 6(a) of theNational Cooperative Research andProduction Act of 1993, 15 U.S.C.§ 4301 et seq. (‘‘the Act’’), the ATMForum (‘‘Forum’’) has filed writtennotifications simultaneously with theAttorney General and the Federal TradeCommission disclosing changes in itsmembership. The notifications werefiled for the purpose of extending theAct’s provisions limiting the recovery ofantitrust plaintiffs to actual damagesunder specified circumstances.Specifically, the changes are as follows:CYLINK Corporation, Sunnyvale, CA;California Eastern Labs, Santa Clara, CA;Canon, Inc., Tokyo, JAPAN; Global One,Reston, VA; Lucent Technologies,Holmdel, NJ; Netro Corporation, SantaClara, CA; and Vebacom, Koln,GERMANY have been added to theventure. Company name changesinclude the following: ABB HAFO toMitel Semiconductor AB; AnritsuWiltron to Anritsu Corporation; andCellstream Networks to SentientNetworks. Stratacom has withdrawnfrom the venture. The followingmembers have changed from auditingmembers to principal members: CoreelMicrosystems; Olivetti Research; andUNI Inc.

No changes have been made in theplanning activities of the Forum.Membership remains open, and themembers intend to file additionalwritten notifications disclosing allchanges in membership.

On April 19, 1993, the Forum filed itsoriginal notification pursuant to § 6(a) ofthe Act. The Department of Justicepublished a notice in the FederalRegister pursuant to § 6(b) of the Act onJune 2, 1993 (58 FR 31415). The lastnotification was filed on May 3, 1996.The Department of Justice published a

notice in the Federal Register on June3, 1996 (61 FR 27935).Constance K. Robinson,Director of Operations, Antitrust Division.[FR Doc. 96–22273 Filed 8–30–96; 8:45 am]BILLING CODE 4410–01–M

Drug Enforcement Administration

Importation of Controlled Substances;Notice of Application

Pursuant to Section 1008 of theControlled Substances Import andExport Act (21 U.S.C. 958(i)), theAttorney General shall, prior to issuinga registration under this Section to abulk manufacturer of a controlledsubstance in Schedule I or II and priorto issuing a regulation under Section1002(a) authorizing the importation ofsuch a substance, providemanufacturers holding registrations forthe bulk manufacture of the substancean opportunity for a hearing.

Therefore, in accordance with Section1311.42 of Title 21, Code of FederalRegulations (CFR), notice is herebygiven that on July 16, 1996, Calbiochem-Novabiochem Corporation, 10394Pacific Center Court, Attn: ReceivingInspector, San Diego, California 92121–4340, made application to the DrugEnforcement Administration to beregistered as an importer of the basicclasses of controlled substances listedbelow:

Drug Sched-ule

Tetrahydrocannabinols (7370) ....... IMescaline (7381) ............................ I

Drug Sched-ule

Amphetamine (1100) ...................... IIPhencyclidine (7471) ...................... IIPhenylacetone (8501) .................... IICocaine (9041) ............................... II

The firm plans to import smallquantities of the listed controlledsubstances to make reagents fordistribution to the biomedical researchcommunity.

Any manufacturer holding, orapplying for, registration as a bulkmanufacturer of these basic classes ofcontrolled substances may file writtencomments on or objections to theapplication described above and may, atthe same time, file a written request fora hearing on such application inaccordance with 21 CFR 1301.54 insuch form as prescribed by 21 CFR1316.47.

Any such comments, objections, orrequests for a hearing may be addressedto the Deputy Assistant Administrator,Office of Diversion Control, DrugEnforcement Administration, UnitedStates Department of Justice,Washington, D.C. 20537, Attention: DEAFederal Register Representative (CCR),and must be filed no later than (30 daysfrom publication).

This procedure is to be conductedsimultaneously with and independentof the procedures described in 21 CFR1311.42 (b), (c), (d), (e), and (f). As notedin a previous notice at 40 FR 43745–46(September 23, 1975), all applicants forregistration to import basic classes ofany controlled substances in Schedule Ior II are and will continue to be requiredto demonstrate the Deputy AssistantAdministrator, Office of DiversionControl, Drug EnforcementAdministration that the requirementsfor such registration pursuant to 21U.S.C. 958(a), 21 U.S.C. 823(a), and 21CFR 1311.42 (a), (b), (c), (d), (e), and (f)are satisfied.

Dated: August 21, 1996.Gene R. Haislip,Deputy Assistant Administrator, Office ofDiversion Control, Drug EnforcementAdministration.[FR Doc. 96–22353 Filed 8–30–96; 8:45 am]BILLING CODE 4410–09–M

Importation of Controlled Substances;Notice of Application

Pursuant to Section 1008 of theControlled Substances Import andExport Act (21 U.S.C. 958(i)), theAttorney General shall, prior to issuinga registration under this Section to abulk manufacturer of a controlledsubstance in Schedule I or II and priorto issuing a regulation under Section1002(a) authorizing the importation ofsuch a substance, providemanufacturers holding registrations forthe bulk manufacture of the substancean opportunity for a hearing.

Therefore, in accordance with Section1311.42 of Title 21, Code of FederalRegulations (CFR), notice is herebygiven that on July 25, 1996, RadianInternational LLC, 8501 North MopacBlvd., P.O. Box 201088, Austin, Texas78720, made application to the DrugEnforcement Administration to beregistered as an importer of the basicclasses of controlled substances listedbelow:

Drug Sched-ule

3,4-Methylenedioxy-N-ethylamphetamine (7404).

I


Drug Sched-ule

3,4-Methylenedioxymethamphetami-ne (7405).

I

4-Methoxyamphetamine (7411) ..... IBenzoylecgonine (9180) ................. II

The firm plans to import the listedcontrolled substances to makedeuterated and non-deuterated drugreference standards for analytical andforensic laboratories.

Any manufacturer holding, orapplying for, registration as a bulkmanufacturer of this basic class ofcontrolled substance may file writtencomments on or objections to theapplication described above and may, atthe same time, file a written request fora hearing on such application inaccordance with 21 CFR 1301.54 insuch form as prescribed by 21 CFR1316.47.

Any such comments, objections, orrequests for a hearing may be addressedto the Deputy Assistant Administrator,Office of Diversion Control, DrugEnforcement Administration, UnitedStates Department of Justice,Washington, D.C. 20537, Attention: DEAFederal Register Representative (CCR),and must be filed no later than (30 daysfrom publication).

This procedure is to be conductedsimultaneously with and independentof the procedures described in 21 CFR1311.42 (b), (c), (d), (e), and (f). As notedin a previous notice at 40 FR 43745–46(September 23, 1975), all applicants forregistration to import basic classes ofany controlled substances in Schedule Ior II are and will continue to be requiredto demonstrate to the Deputy AssistantAdministrator, Office of DiversionControl, Drug EnforcementAdministration that the requirementsfor such registration pursuant to 21U.S.C. 958(a), 21 U.S.C. 823(a), and 21CFR 1311.42 (a), (b), (c), (d), (e), and (f)are satisfied.


Importer of Controlled SubstancesNotice of Registration

By Notice dated June 27, 1996, andpublished in the Federal Register onJuly 5, 1996, (61 FR 35265), ResearchTriangle Institute, Kenneth H. Davis, Jr.,Hermann Building, East Institute Drive,

P.O. Box 12194, Research Triangle Park,North Carolina 27709, made applicationto the Drug Enforcement Administration(DEA) to be registered as an importer ofthe basic classes of controlledsubstances listed below:

Drug Sched-ule

Marihuana (7360) ........................... ICocaine (9041) ............................... II

No comments or objections have beenreceived. DEA has considered thefactors in Title 21, United States Code,Section 823(a) and determined that theregistration of Research TriangleInstitute to import the listed controlledsubstances is consistent with the publicinterest and with United Statesobligations under international treaties,conventions, or protocols in effect onMay 1, 1971, at this time. Therefore,pursuant to Section 1008(a) of theControlled Substances Import andExport Act and in accordance with Title21, Code of Federal Regulations, Section1311.42, the above firm is grantedregistration as an importer of the basicclasses of controlled substances listedabove.


Office of Justice Programs

Bureau of Justice Statistics

Agency Information CollectionActivities: Proposed Collection;Comment Request

ACTION: Notice of Information CollectionUnder Review: Capital PunishmentAnnual Data Collection.

Office of Management and Budget(OMB) approval is being sought for theinformation collection listed below.This proposed information collectionwas previously published in the FederalRegister and allowed 60 days for publiccomment.

The purpose of this notice is to allowan additional 30 days for publiccomments from the date listed at the topof this page in the Federal Register.This process is conducted in accordancewith Code of Federal Regulations, Part1320.10. Written comments and/orsuggestions regarding the item(s)contained in this notice, especiallyregarding the estimated public burden

and associated response time, should bedirected to the Office of Managementand Budget, Office of Information andRegulatory Affairs, Attention:Department of Justice Desk Officer,Washington, DC, 20530. Additionally,comments may be submitted to OMB viafacsimile to 202–395–7285. Commentsmay also be submitted to the UnitedStates Department of Justice, JusticeManagement Division, InformationManagement and Security Staff,Attention: Department ClearanceOfficer, Suite 850, Washington Center,1001 G Street, NW, Washington, DC20530. Additionally, comments may besent to DOJ via facsimile to 202–514–1534.

Requests written comments andsuggestions from the public and affectedagencies concerning the proposedcollection of information address one ormore of the following four points:

(1) Evaluate whether the proposedcollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information will havepractical utility;

(2) Evaluate the accuracy of theagencies estimate of the burden of theproposed collection of information,including the validity of themethodology and assumptions used;

(3) Enhance the quality, utility, andclarity of the information to becollected; and

(4) Minimize the burden of thecollection of information on those whoare to respond, including through theuse of appropriate automated,electronic, mechanical, or othertechnological collection techniques orother forms of information technology,e.g., permitting electronic submission ofresponses.

Overview of this informationcollection:

(1) Type of Information collection:Reinstatement, without change, of apreviously approved collection forwhich approval has expired.

(2) Title of the Form/Collection:Capital Punishment Report of InmatesUnder Sentence of Death.

(3) Agency form number, if any, andthe applicable component of theDepartment of Justice sponsoring thecollection: Forms: NPS–8 Report ofInmates Under Sentence of Death; NPS–8A Update Report of Inmates UnderSentence of Death; NPS–8B Status ofDeath Penalty—No Statute in Force;NPS–8C Status of Death Penalty—Statute in Force. Bureau of JusticeStatistics, Office of Justice Programs,United States Department of Justice.

(4) Affected public who will be askedor required to respond, as well as a brief


abstract: Primary: State or Localgovernments. Others: Individuals orhouseholds, and Federal Government.Approximately 52 Attorneys Generaland 52 designated officials responsiblefor keeping records of inmates undersentence of death will be asked toprovide information on condemnedinmates’ demographic characteristics,legal status at the time of capital offense,capital offense for which imprisoned,number of death sentences imposed,criminal history information, reason forremoval if no longer under sentence ofdeath, method of execution, and causeof death other than by execution. Thisprogram analyzes capital punishmentstatutes, and persons under sentence ofdeath in State and Federal correctionalinstitutions. The Bureau of JusticeStatistics uses this information inpublished reports, and for the U.S.Congress, Executive Office of thePresident, practitioners, researchers,students, the media, and others in thecriminal justice community.

(5) An estimate of the total number ofrespondents and the amount of timeestimated for an average respondent torespond. 304 responses at 1 hour eachfor the NPS–8; 2,890 responses at 1⁄2hour each for the NPS–8A; and 52responses at 1⁄2 hour each for the NPS–8B or NPS–8C.

(6) An estimate of the total publicburden (in hours) associated with thecollection: 1,775 annual burden hours.

If additional information is requiredcontact: Mr. Robert B. Briggs, ClearanceOfficer, United States Department ofJustice, Information Management andSecurity Staff, Justice ManagementDivision, Suite 850, Washington Center,1001 G Street, NW, Washington, DC20530.

Dated: August 27, 1996.Robert B. Briggs,Department Clearance Officer, United StatesDepartment of Justice.[FR Doc. 96–22334 Filed 8–30–96; 8:45 am]BILLING CODE 4410–18–M

NATIONAL AERONAUTICS ANDSPACE ADMINISTRATION

[Notice 96–102]

NASA Advisory Council (NAC),Aeronautics Advisory Committee,Subcommittee on Human Factors;Meeting

AGENCY: National Aeronautics andSpace Administration.ACTION: Notice of meeting cancellation.

FEDERAL REGISTER CITATION OF PREVIOUSANNOUNCEMENT: 61 FR 40662, NoticeNumber 96–089, August 5, 1996.

PREVIOUSLY ANNOUNCED DATES OFMEETING: August 27, 1996, August 28,1996, and August 29, 1996. Meeting hasbeen canceled.FOR FURTHER INFORMATION CONTACT: Mr.P. Douglas Arbuckle, NationalAeronautics and Space Administration,Langley Research Center, Hampton, VA23681, 804/864–4072.

Dated: August 22, 1996.Leslie M. Nolan,Advisory Committee Management Officer.[FR Doc. 96–22339 Filed 8–30–96; 8:45 am]BILLING CODE 7510–01–M

[Notice 96–101]

NASA Advisory Council, AeronauticsAdvisory Committee, Air TrafficManagement Research andDevelopment Executive SteeringCommittee; 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 NASA Advisory Council,Aeronautics Advisory Committee, AirTraffic Management Research andDevelopment Executive SteeringCommittee meeting.DATES: September 25, 1996, 9:00 a.m. to5:00 p.m.; September 26, 1996, 8:30 a.m.to Noon.ADDRESSES: National Aeronautics andSpace Administration, Ames ResearchCenter, Building 262, Room 100, MoffettField, CA 94035.FOR FURTHER INFORMATION CONTACT:Mr. Herbert W. Schlickenmaier,National Aeronautics and SpaceAdministration, Headquarters,Washington, DC 20546, 202/358–4638.SUPPLEMENTARY INFORMATION: Themeeting will be open to the public upto the seating capacity of the room.Agenda topics for the meeting are asfollows:—National Perspective: NASA

Aeronautics Update—Report on Status of FAA–NASA

Interagency Air Traffic ManagementIntegrated Product Team

—Report on On-Going Air TrafficManagement-Related Research andTechnology at NASA

—Report on Advanced Air TrafficTechnology Element of NASAAdvanced Subsonic TechnologyProgramIt is imperative that the meeting be

held on these dates to accommodate the

scheduling priorities of the keyparticipants. Visitors will be requestedto sign a visitors register.

Dated: August 23, 1996.Leslie M. Nolan,Advisory Committee Management Officer.[FR Doc. 96–22340 Filed 8–30–96; 8:45 am]BILLING CODE 7510–01–M

[Notice 96–100]

Notice of Prospective Patent License

AGENCY: National Aeronautics andSpace Administration.ACTION: Notice of prospective patentlicense.

SUMMARY: NASA hereby gives noticethat Honeywell, Inc., of Glendale,Arizona, has requested an exclusivelicense to practice the inventiondescribed in U.S. Patent No. 5,173,944,entitled ‘‘Head Related TransferFunction Pseudo-Stereophony,’’ whichis assigned to the United States ofAmerica as represented by theAdministrator of the NationalAeronautics and Space Administration.Written objections to the prospectivegrant of a license should be sent to Mr.Ken Warsh, Patent Counsel, AmesResearch Center.DATES: Responses to this notice must bereceived by November 4, 1996.FOR FURTHER INFORMATION CONTACT: Mr.Ken Warsh, Patent Counsel, AmesResearch Center, Mail Code 202A–3,Moffett Field, CA 94035; telephone(415) 604–5104, fax (415) 604–1592.

Dated: August 26, 1996.Edward A. Frankle,General Counsel.[FR Doc. 96–22341 Filed 8–30–96; 8:45 am]BILLING CODE 7510–01–M

NATIONAL ARCHIVES AND RECORDSADMINISTRATION

Information Security Oversight Office

National Industrial Security ProgramPolicy Advisory Committee; Notice ofMeeting

In accordance with the FederalAdvisory Committee Act (5 U.S.C. App.2) and implementing regulation 41 CFR101–6, announcement is made of thefollowing committee meeting:

Name of Committee: National IndustrialSecurity Program Policy Advisory Committee(NISPPAC).

Date of Meeting: September 24, 1996.Time of Meeting: 10:00 a.m. to 12:00 p.m.Place of Meeting: National Archives and

Records Administration, Room 410, Seventh


Street and Pennsylvania Avenue, NW,Washington, DC.

Purpose: To discuss National IndustrialSecurity Program policy matters. The agendawill include a discussion on the currentstatus of the program, an update on reportingon security costs pertaining to industry, adiscussion of possible approaches to bringgreater consistency and uniformity to theNational Industrial Security ProgramOperating Manual chapter on automatedinformation systems security, and an updateon the most recent draft safeguardingdirective.

This meeting will be open to the public.However, due to space limitations and accessprocedures, the names and telephonenumbers of individuals planning to attendmust be submitted to the InformationSecurity Oversight Office (ISOO) no laterthan September 20, 1996. Written statementsfrom the public will be accepted in lieu ofan opportunity for comment.

FOR FURTHER INFORMATION CONTACT:Steven Garfinkel, Director, ISOO,National Archives Building, 700Pennsylvania Avenue, NW, Room 100,Washington, DC 20408, telephone (202)219–5250.L. Reynolds Cahoon,Assistant Archivist for Policy and IRMServices.[FR Doc. 96–22272 Filed 8–30–96; 8:45 am]BILLING CODE 6820–AF–M

OFFICE OF PERSONNELMANAGEMENT

[RI 30–9]

Submission for OMB Review;Comment Request for Reclearance ofInformation Collection

AGENCY: Office of PersonnelManagement.ACTION: Notice.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995(Public Law 104–13, May 22, 1995), thisnotice announces that the Office ofPersonnel Management will submit tothe Office of Management and Budget arequest for reclearance of the followinginformation collection. RI 30–9,Reinstatement of Disability AnnuityPreviously Terminated Because ofRestoration to Earning Capacity, informsformer disability annuitants of theirright to request restoration under title 5,U.S.C., Section 8337. It also specifiesthe conditions to be met and thedocumentation required for a person torequest reinstatement.

Approximately 200 forms arecompleted annually. The form takesapproximately 60 minutes to respond,including a medical examination. Theannual estimated burden is 200 hours.

Burden may vary depending on the timerequired for a medical examination.

For copies of this proposal, contactJim Farron on (202) 418–3208, or E-mailto [email protected]: Comments on this proposalshould be received on or before October3, 1996.ADDRESSES: Send or deliver commentsto—Lorraine E. Dettman, Chief, Operations

Support Division, Retirement andInsurance Service, U.S. Office ofPersonnel Management, 1900 E Street,NW, Room 3349, Washington, DC20415–0001

andJoseph Lackey, OPM Desk Officer,

Office of Information and RegulatoryAffairs, Office of Management andBudget, New Executive OfficeBuilding, NW., Room 3002,Washington, DC 20503

FOR INFORMATION REGARDINGADMINISTRATIVE COORDINATION—CONTACT:Mary Beth Smith-Toomey, ManagementServices Division, (202) 606–0623.U.S. Office of Personnel Management.Lorraine A. Green,Deputy Dierctor.[FR Doc. 96–22364 Filed 8–30–96; 8:45 am]BILLING CODE 6325–01–M

Excepted Service

AGENCY: Office of PersonnelManagement.ACTION: Notice.

SUMMARY: This gives notice of positionsplaced or revoked under Schedules Aand B, and placed under Schedule C inthe excepted service, as required byCivil Service Rule VI, Exceptions fromthe Competitive Service.FOR FURTHER INFORMATION CONTACT:Patricia Paige, (202) 606–0830.SUPPLEMENTARY INFORMATION: The Officeof Personnel Management published itslast monthly notice updating appointingauthorities established or revoked underthe Excepted Service provisions of 5CFR 213 on Monday, July 29, 1996 (61FR 39483). Individual authoritiesestablished or revoked under SchedulesA and B and established underSchedule C between July 1, 1996, andJuly 31, 1996, appear in the listingbelow. Future notices will be publishedon the fourth Tuesday of each month, oras soon as possible thereafter. Aconsolidated listing of all authorities asof June 30 will also be published.

Schedule ANo Schedule A authorities were

established or revoked in July 1996.

Schedule B

No Schedule B authorities wereestablished or revoked in July 1996.

Schedule C

The following Schedule C authoritieswere established July 1996:

Council on Environmental Quality

Special Assistant to the Chair.Effective July 12, 1996.

Department of Agriculture

Confidential Assistant to the UnderSecretary for Rural Economic andCommunity Development. Effective July3, 1996.

Special Assistant to theAdministrator, Farm Service Agency.Effective July 3, 1996.

Confidential Assistant to theAdministrator, Rural Business Service.Effective July 3, 1996.

Confidential Assistant to the Chief,Natural Resources Conservation Service.Effective July 3, 1996.

Director, Congressional Relations tothe Assistant Secretary forCongressional Relations. Effective July3, 1996.

Confidential Assistant to theAdministrator, Food, Nutrition andConsumer Service. Effective July 23,1996.

Confidential Assistant to theAdministrator, Agricultural ResearchService. Effective July 26, 1996.

Department of Commerce

Senior Advisor to the AssistantSecretary for Import Administration.Effective July 2, 1996.

Special Assistant to the SeniorAdvisor to the Department for PuertoRico Initiatives. Effective July 8, 1996.

Deputy Assistant Secretary for Policyand Planning to the Assistant to theSecretary and Director, Office of Policyand Strategic Planning. Effective July26, 1996.

Department of Defense

Office Director and SpecialCoordinator for Cooperative ThreatReduction to the Deputy AssistantSecretary of Defense for ThreatReduction Policy. Effective July 3, 1996.

Special Assistant to the AssistantSecretary of Defense, InternationalSecurity Policy. Effective July 11, 1996.

Department of Education

Special Assistant to the Director,Office of Educational Technology.Effective July 3, 1996.

Special Assistant to the DeputySecretary of Agriculture. Effective July31, 1996.


Department of EnergyDirector, Office of Scheduling and

Logistics to the Assistant Secretary forHuman Resources and Management.Effective July 30, 1996.

Department of Health and HumanServices

Director, Office of Scheduling to theChief of Staff, Office of the Secretary.Effective July 19, 1996.

Department of Housing and UrbanDevelopment

Assistant for Congressional Relationsto the Deputy Assistant Secretary forCongressional Relations, Office ofCongressional and IntergovernmentalAffairs. Effective July 10, 1996.

Special Assistant to the SeniorAdvisor to the Secretary. Effective July26, 1996.

Director, Office of ExecutiveScheduling to the Deputy Secretary.Effective July 30, 1996.

Deputy Assistant Secretary forIntergovernmental Relations to theAssistant Secretary for Congressionaland Intergovernmental Relations.Effective July 30, 1996.

Deputy Director, Office of ExecutiveScheduling to the Director, Office ofExecutive Scheduling. Effective July 30,1996.

Department of the InteriorSpecial Assistant to the Secretary of

the Interior. Effective July 30, 1996.Special Assistant to the Assistant

Secretary for Policy, Management andBudget. Effective July 31, 1996.

Special Assistant to the DeputySecretary. Effective July 31, 1996.

Department of JusticeChief of Staff to the Assistant

Attorney General, Office of JusticePrograms. Effective July 3, 1996.

Department of LaborSpecial Assistant to the Deputy

Assistant Secretary, Office ofCongressional and IntergovernmentalAffairs. Effective July 18, 1996.

Staff Assistant to the Chief of Staff.Effective July 29, 1996.

Department of the Navy (DOD)Special Assistant to the Principal

Deputy Secretary of the Navy(Manpower and Reserve Affairs).Effective July 15, 1996.

Department of StateSpecial Assistant to the Under

Secretary for Economic Affairs. EffectiveJuly 2, 1996.

Senior Women’s Coordinator to theUnder Secretary for Global Affairs.Effective July 10, 1996.

Special Assistant to the AssistantSecretary, International OrganizationalAffairs. Effective July 12, 1996.

Policy Advisor to the AssistantSecretary, Bureau of European andCanadian Affairs. Effective July 30,1996.

Department of Transportation

Special Assistant to the Secretary ofTransportation. Effective July 19, 1996.

Department of the Treasury

Special Assistant to the DeputyAssistant Secretary (Public Liaison).Effective July 3, 1996.

Senior Advisor, Public Affairs to theDirector of the U.S. Mint. Effective July3, 1996.

Public Affairs Specialist to theAssistant Secretary for Public Affairs.Effective July 26, 1996.

Export-Import Bank of the United States

Personal and Confidential Assistant tothe President and Chairman. EffectiveJuly 12, 1996.

National Credit Union Administration

Staff Assistant to the Board Member.Effective July 2, 1996.

Selective Service System

Special Assistant to the Director ofSelective Service. Effective July 10,1996.

Small Business Administration

Director of Scheduling to the Chief ofStaff. Effective July 2, 1996.

Senior Advisor to the DeputyAdministrator, Small BusinessAdministration. Effective July 3, 1996.

Special Assistant to the AssociateAdministrator for Communications andPublic Liaison. Effective July 19, 1996.

Special Assistant to the AssistantAdministrator for Field Operations.Effective July 22, 1996.

U.S. International Trade Commission

Confidential Assistant to theCommissioner. Effective July 23, 1996.

United States Tax Court

Trial Clerk to the Judge. Effective July12, 1996.



Authority: 5 U.S.C. 3301 and 3302; E.O.10577, 3 CFR 1954–1958 Comp., P.218.Office of Personnel Management.Lorraine A. Green,Deputy Director.[FR Doc. 96–22365 Filed 8–30–96; 8:45 am]BILLING CODE 6325–01–M

SECURITIES AND EXCHANGECOMMISSION

[Investment Company Act Release No.22175; 811–8708]

Arizona Limited Maturity MunicipalsPortfolio; Notice of Application

August 26, 1996.AGENCY: Securities and ExchangeCommission (‘‘SEC’’).ACTION: Notice of Application forDeregistration under the InvestmentCompany Act of 1940 (the ‘‘Act’’).

APPLICANT: Arizona Limited MaturityMunicipals Portfolio.RELEVANT ACT SECTION: Section 8(f).SUMMARY OF APPLICATION: Applicantrequests an order declaring that it hasceased to be an investment company.FILING DATE: The application was filedon June 28, 1996 and an amendmentthereto on August 14, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the application will beissued unless the SEC orders a hearing.Interested persons may request ahearing by writing to the SEC’sSecretary and serving applicant with acopy of the request, personally or bymail. Hearing requests should bereceived by the SEC by 5:30 p.m. onSeptember 20, 1996, and should beaccompanied by proof of service on theapplicant, in the form of an affidavit or,for lawyers, a certificate of service.Hearing requests should state the natureof the writer’s interest, the reason for therequest, and the issues contested.Persons may request notification of ahearing by writing to the SEC’sSecretary.ADDRESSES: Secretary, SEC, 450 FifthStreet, N.W., Washington, D.C. 20549.Applicant, 24 Federal Street, Boston,Massachusetts 02110.FOR FURTHER INFORMATION CONTACT:Diane L. Titus, Paralegal Specialist, at(202) 942–0584, or Alison E. Baur,Branch Chief, at (202) 942–0564(Division of Investment Management,Office of Investment CompanyRegulation).SUPPLEMENTARY INFORMATION: Thefollowing is a summary of theapplication. The complete applicationmay be obtained for a fee from the SEC’sPublic Reference Branch.

Applicant’s Representations1. Applicant is an open-end, non-

diversified management investmentcompany organized as a New York trust.Applicant is a master fund in a master-feeder structure.

2. On August 19, 1994, applicantregistered under the Act and filed a


1 Applicants request relief for such additionalFASF Portfolios, subject to the terms and conditionsset forth herein.

registration statement on Form N–1A.No registration was filed under theSecurities Act of 1933 (‘‘Securities Act’’)because applicant’s beneficial interestswere issued solely in private placementtransactions that did not involve anypublic offering within the meaning ofsection 4(2) of the Securities Act.

3. Applicant’s sole feeder fundterminated its operations and, therefore,applicant is doing the same. OnNovember 20, 1995, applicant’s Board ofTrustees unanimously approved theliquidation of applicant, effectiveJanuary 31, 1996. No shareholderapproval was requested by theDeclaration of Trust of Applicant, or byapplicable law.

4. By May 2, 1996, applicantredeemed both of its beneficial interestswhich were held by Eaton VanceArizona Limited Maturity MunicipalsFund, a series of Eaton VanceInvestment Trust, and Eaton VanceManagement. Each interest holderreceived cash equal to the net assetvalue of its interest in applicant.

5. Applicant has no securityholders,liabilities or assets. Applicant is not aparty to any litigation or administrativeproceeding. Applicant is not nowengaged, nor does it propose to engage,in any business activities other thanthose necessary for the winding up of itsaffairs.

6. Applicant will take all requiredactions to terminate its existence as aNew York trust upon receipt of an orderfrom the SEC that it has ceased to be aninvestment company.

For the SEC, by the Division of InvestmentManagement, under delegated authority.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–22360 Filed 8–30–96; 8:45 am]BILLING CODE 8010–01–M


First American Strategy Funds, Inc., etal.; Notice of Application

August 26, 1996.AGENCY: Securities and ExchangeCommission (‘‘SEC’’).ACTION: Notice of Application for anOrder under the Investment CompanyAct of 1940 (‘‘Act’’).

APPLICANTS: First American StrategyFunds, Inc. (‘‘FASF’’); First AmericanInvestment Funds, Inc. (‘‘FAIF’’); FirstAmerican Funds, Inc. (‘‘FAF’’); FirstBank National Association (‘‘FirstBank’’); SEI Financial ServicesCompany (‘‘SEI’’).

RELEVANT ACT SECTIONS: Order requestedunder section 6(c) of the Act for anexemption from section 12(d)(1) of theAct and under sections 6(c) and 17(b) ofthe Act for an exemption from section17(a) of the Act.SUMMARY OF APPLICATION: Applicantsrequest an order that would permitFASF to invest primarily in thesecurities of certain affiliatedinvestment companies in excess of thelimits of section 12(d)(1).FILING DATE: The application was filedon July 5, 1996, and amended on August22, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the application will beissued unless the SEC orders a hearing.Interested persons may request ahearing by writing to the SEC’sSecretary and serving applicants with acopy of the request, personally or bymail. Hearing requests should bereceived by the SEC by 5:30 p.m. onSeptember 20, 1996, and should beaccompanied by proof of service onapplicants, in the form of an affidavit,or, for lawyers, a certificate of service.Hearing requests should state the natureof the writer’s interest, the reason for therequest, and the issues contested.Persons may request notification of ahearing by writing to the SEC’sSecretary.ADDRESSES: Secretary, SEC 450 FifthStreet, N.W., Washington, D.C. 20549.Applicants: FASF, FAIF, FAF and SEI,680 East Swedesford Road, Wayne,Pennsylvania, 19087; First Bank, 601Second Avenue South, Minneapolis,Minnesota 55402.FOR FURTHER INFORMATION CONTACT:Mercer E. Bullard, Branch Chief, at (202)942–0564, or Elizabeth G. Osterman,Assistant Director, at (202) 942–0564(Division of Investment Management,Office of Investment CompanyRegulation).SUPPLEMENTARY INFORMATION: Thefollowing is a summary of theapplication. The complete applicationmay be obtained for a fee from the SEC’sPublic Reference Branch.

Applicants’ Representations1. FASF, a Minnesota corporation, is

registered as an open-end managementinvestment company under the Act. OnJuly 2, 1996, FASF filed a registrationstatement under the Securities Act of1933 for the offering of four series:Income Fund, Growth and IncomeFund, Growth Fund, and AggressiveGrowth Fund (collectively, ‘‘FASFPortfolios’’). Each FASF Portfolio willbe separately managed and pursue adistinct set of investment objectives andpolicies. The FASF Portfolios will

pursue their objectives by investingprimarily in series of FAIF and FAF(‘‘Underlying Portfolios’’). AdditionalFASF Portfolios may be organized in thefuture.1

2. The FASF Portfolios initially willoffer their shares in one class that willbe subject to an annual shareholderservicing fee equal to .25% of averagedaily assets. This class will not besubject to front-end or deferred salescharges, redemptions fees, or Rule 12b–1 distribution fees, although suchcharges and fees may be imposed in thefuture.

3. FAIF is organized under Marylandlaw and registered as an open-endmanagement investment companyunder the Act. FAIF offers its shares in20 series with varying investmentobjectives and policies. The series ofFAIF that are currently proposed to beused as Underlying Portfolios are:Equity Income Fund, Stock Fund,Diversified Growth Fund, EmergingGrowth Fund, Regional Equity Fund,Special Equity Fund, InternationalFund, Technology Fund, HealthSciences Fund, Real Estate SecuritiesFund, and Fixed Income Fund. FAF isorganized under Minnesota law andregistered as an open-end managementinvestment company under the Act.FAF offers its shares in three series.Each series holds itself out to the publicas a money market fund and is subjectto the requirements of rule 2a–7 underthe Act. The series of FAF that iscurrently proposed to be used as anUnderlying Portfolio is the PrimeObligations Fund. Additional series ofFAIF and FAF that comply with theconditions set forth herein may be usedas Underlying Portfolios in the future.

4. The Underlying Portfolios offertheir shares in several classes. TheFASF Portfolios initially will investonly in a class of an UnderlyingPortfolio which is not subject to front-end of deferred sales charges,redemption fees, rule 12b–1 distributionfees, or shareholder servicing fees. TheFASF Portfolios in the future may investin one or more classes of the UnderlyingPortfolios which bear such charges andfees.

5. First Bank, a national bankingassociation, is the investment adviserfor each of the FASF Portfolios and theUnderlying Portfolios. First Bank is awholly-owned subsidiary of First BankSystem, Inc. (‘‘FBS’’), a bank holdingcompany. First Bank’s investmentadvisory fees with respect to each FASFPortfolio and Underlying Portfolio are


2 SEI previously received an SEC order to permitthe operation of a ‘‘fund or funds’’ similar to thatproposed herein where all of the funds wereadvised or distributed by SEI. SEI InstitutionalManaged Trust, Investment Company Act ReleaseNo. 21539 (Nov. 22, 1995) (notice) and 21615 (Dec.20, 1995) (order).

3 Rule 11a–3 under the Act defines ‘‘group ofinvestment companies’’ as two or more companiesthat: (1) Hold themselves out to investors as relatedcompanies for purposes of investment and investorservices, and (2) have a common investment adviseror principal underwriter.

calculated as a per annum percentage ofnet assets of each Portfolio. With respectto one of the Underlying Portfolios(FAIF’s International Fund), First Bankhas engaged a subadviser, Marvin &Palmer Associates, Inc., which is notaffiliated with First Bank or any of itsaffiliates. First Trust NationalAssociation, a wholly-owned subsidiaryof FBS, is the custodian for the FASFPortfolios and the Underlying Portfolios.

6. SEI, which is not affiliated withFirst Bank, is principal underwriter foreach FASF Portfolio and UnderlyingPortfolio. Applicants request relief forSEI only in its capacity as principalunderwriter for the FASF Portfolios andUnderlying Portfolios and not in itscapacity as principal underwriter forother groups of investment companies.2Applicants request that the relief extendto any future principal underwriter forthe FASF Portfolios and the UnderlyingPortfolios, provided the conditions setforth herein are satisfied.

7. The investment objectives of theFASF Portfolios are intended to providediffering balances between theobjectives of current income and growthof capital. First Bank will allocate andre-allocate the FASF Portfolios’ assetsamong the Underlying Portfoliosaccording to initial percentage ranges asdescribed in the application.

8. The FASF Portfolios will investprimarily in Underlying Portfolioshares. The FASF Portfolios also mayinvest in cash and cash item fortemporary defensive purposes and tomaintain liquidity, and in futurescontracts and options on futures inorder to: remain fully invested inproportions consistent with theircurrent asset allocation strategy in a costeffective manner; re-allocate assetsamong asset categories whileminimizing transaction costs; maintaincash reserves while simulating fullinvestment; facilitate trading; or seekhigher investment returns when afutures contract is priced moreattractively than the underlying securityor index.

9. The FASF Portfolios may redeemUnderlying Portfolio shares through in-kind distributions of portfolio securitiesof Underlying Portfolios. The FASFPortfolio would hold such securitiesuntil its adviser determined that is wasappropriate to dispose of them. Such in-kind distributions would be made onlyin order to resolve potential conflicts of

interest between an FASF Portfolio andan Underlying Portfolio. For example,when a redemption by an FASFPortfolio would cause the UnderlyingPortfolio to incur sizable brokeragecommissions, the transaction may beeffected in-kind so that the brokeragecosts would be borne only by the FASFPortfolio and not by the UnderlyingPortfolio’s shareholders. Any such in-kind redemption would be made prorata and comply with paragraph (a)through (f) of rule 17a–7 under the Act,except that the consideration for thesecurities distributed by the UnderlyingPortfolio would be the UnderlyingPortfolio’s shares rather than cash.

10. Applicants request that any reliefgranted pursuant to the application alsoapply to any open-end managementinvestment company that is or will bepart of the same ‘‘group of investmentcompanies,’’ as defined in rule 11a–3under the Act, as FASF.3

Applicant’s Legal Analysis1. Section 12(d)(1)(A) of the Act

provides that no registered investmentcompany may acquire securities ofanother investment company if suchsecurities represent more than 3% of theacquired company’s outstanding votingstock, more than 5% of the acquiringcompany’s total assets, or if suchsecurities, together with the securities ofany other acquired investmentcompanies, represent more than 10% ofthe acquiring company’s total assets.Section 12(d)(1)(B) provides that noregistered open-end investmentcompany may sell its securities toanother investment company if the salewill cause the acquiring company toown more than 3% of the acquiredcompany’s voting stock, or if the salewill cause more than 10% of theacquired company’s voting stock to beowned by investment companies.

2. Section 6(c) of the Act provides thatthe SEC may exempt persons ortransactions from any provision of theAct if such exemption is necessary orappropriate in the public interest andconsistent with the protection ofinvestors and the purposes fairlyintended by the policy and provisions ofthe Act.

3. The restrictions in section 12(d)(1)were intended to prevent certain abusesperceived to be associated with thepyramiding of investment companies,including: (1) Unnecessary duplicationof costs (e.g. sales loads, advisory fees,

and administrative costs); (2) undueinfluence by the fund holding companyover its underlying funds; (3) the threatof large scale redemptions of thesecurities of the underlying investmentcompanies; and (4) unnecessarycomplexity. For the following reasons,applicants believe that the proposedarrangements will not give rise to thesedangers.

4. Applicants contend that theproposed structure will not raise thesales charge layering concernsunderlying section 12(d)(1). The FASFinitially will offer one class of sharesthat charges an annual shareholderservicing fee of .25% of average dailyassets. This class will not be subject toany front-end or deferred sales charges,redemption fees, or rule 12b–1distribution fees. The class ofUnderlying Portfolio shares in whichthe FASF Portfolios will invest initiallywill not be subject to any front-end ordeferred sales charges, redemption fees,rule 12b–1 distribution fees, orshareholder servicing fees. Althoughfuture classes of FASF Portfolios andclasses of Underlying Portfolios inwhich the FASF Portfolios invest maybe subject to such charges and fees, anysales charges or service fees relating tothe shares of an FASF Portfolio will notexceed the limits set forth in rule 2830of the NASD’s Conduct Rules whenaggregated with any sales charges orservice fees that the FASF Portfolio paysrelating to Underlying Portfolio shares.

5. With regard to concerns aboutlayering of advisory fees, applicantsstate that, before approving any advisorycontract under section 15 of the Act, theboard of directors of FASF, including amajority of the directors who are not‘‘interested persons,’’ as defined insection 2(a)(19) of the Act, will find thatany advisory fees charged under thecontract are based on services providedthat are in addition to, rather thanduplicative of, services provided underany Underlying Portfolio advisorycontract.

6. Applicants believe that, whileadministrative and other fees areexpected to be charged at both the FASFPortfolio and Underlying Portfoliolevels, overall expenses may be reducedunder the proposed arrangement.Applicants anticipate that the totalexpense ratio of the FASF Portfolios,including the expenses borne directly atthe FASF Portfolio level and indirectlyat the Underlying Portfolio level, will bedisclosed in the FASF Portfolios’prospectuses. Applicants contend thatinvestors will have a means fordetermining whether the layering ofadministrative and other expensesresults in total expense ratios which are


4 First American Investment Funds, Inc.,Investment Company Act Release Nos. 21722 (Jan.30, 1996) (notice) and 21784 (Feb. 27, 1996) (order).

out of line from those of other mutualfunds.

7. Applicants believe that the FASFPortfolios will provide a simple meansthrough which investors can obtainprofessional allocation services.Applicants also believe that anyadditional expenses associated withinvesting in FASF will be deemed bymany investors to be outweighed by thebenefits received by such investors inthe form of such asset allocationservices.

8. Applicants contend that the riskthat a ‘‘fund of funds’’ may be able tocontrol the management decisions of theunderlying funds by threatening largeredemptions is not relevant to theproposed arrangements. The FASFPortfolios and the Underlying Portfolioswill be part of the same ‘‘group ofinvestment companies,’’ as defined inrule 11a–3 under the Act, and the FASFPortfolios and Underlying Portfoliostherefore will share the same oraffiliated investment advisers orprincipal underwriters. Applicantsargue that, where the FASF Portfoliosand Underlying Portfolios have acommon investment adviser andinvestment decisions for the UnderlyingPortfolios already are controlled by theadviser for the FASF Portfolios, theadviser has no incentive to wield thiscontrol in a manner which isdetrimental to the UnderlyingPortfolios.

9. Applicants contend that the FASFPortfolios will be structured in a mannerintended to minimize problems relatedto the impact that large scaleredemptions may have on the orderlymanagement of the UnderlyingPortfolios. The FASF Portfoliosgenerally are designed for long-terminvestors, which applicants assertshould reduce the possibility of theFASF Portfolios being used as short-term trading vehicles and further protectthe FASF Portfolios and the UnderlyingPortfolios from unexpected largeredemptions.

10. Applicants believe that theproblem of unnecessarily complexinvestment vehicles is addressed by thecondition set forth herein that prohibitsUnderlying Portfolios from acquiringsecurities in another investmentcompany in excess of the limits ofsection 12(d)(1)(A), except as authorizedunder a prior SEC order that permitsseries of FAIF to invest in series of FAFin excess of the limits of section12(d)(1)(A)(ii) of the Act up to thegreater of $2.5 million or 5% of the

FAIF series’ assets (‘‘Cash SweepOrder’’).4

11. Section 17(a) of the Act makes itunlawful for an affiliated person of aregistered investment company to sellsecurities to, or purchase securitiesfrom, the company. Applicants believethat the FASF Portfolios and theUnderlying Portfolios could be deemed‘‘affiliated persons’’ of each other, asdefined in section 2(a)(3) of the Act, byvirtue of being under the control of acommon investment adviser, First Bank,or because an FASF Portfolio owns 5%or more of the shares of an UnderlyingPortfolio. Applicants believe thatpurchases by the FASF Portfolios ofUnderlying Portfolio shares and sales bythe Underlying Portfolios of their sharesto the FASF Portfolios may be deemedto be principal transactions betweenaffiliated persons under section 17(a).

12. Section 17(b) of the Act providesthat the SEC shall exempt a proposedtransaction from section 17(a) ifevidence establishes that: (1) The termsof the proposed transaction arereasonable and fair and do not involveoverreaching; (2) the proposedtransaction is consistent with thepolicies of the registered investmentcompany involved; and (3) the proposedtransaction is consistent with thegeneral provisions of the Act.

13. Applicants request an exemptionunder section 6(c) from the limits ofsections 12(d)(1) (A) and (B), and undersections 6(c) and 17(b) from section17(a), to permit the transactionsdescribed above. Applicants believe thatthe requested exemptions are fullyconsistent with the policies andpurposes of the Act and that, for thereasons provided above, it would beappropriate for the SEC to grant therequested relief under section 6(c).

14. Applicants also believe that thesection 17(b) standard has been satisfiedfor the following reasons. First, theconsideration paid for the sale andredemption of Underlying Portfolioshares will be based on the net assetvalues of the Portfolios, subject to anyapplicable sales charges. Second, theinvestment of assets of the FASFPortfolios in Underlying Portfolio sharesand the issuance of Underlying Portfolioshares will be effected in accordancewith each FASF Portfolio’s investmentrestrictions and will be consistent withthe policies as set forth in each FASFPortfolio’s registration statement.Finally, the Proposed arrangement doesnot involve overreaching by applicants

and is consistent with the purposes ofthe Act for the reasons discussed above.

Applicants’ ConditionsApplicants agree that the order

granting the requested relief shall besubject to the following conditions:

1. Each FASF Portfolio and eachUnderlying Portfolio will be part of thesame ‘‘group of investment companies,’’as defined in rule 11a–3 under the Act.

2. No Underlying Portfolio willacquire securities of any otherinvestment company in excess of thelimits contained in Section 12(d)(1)(A)of the 1940 Act, except as permittedunder the Cash Sweep Order.

3. A majority of the Board of Directorsof FASF will not be ‘‘interestedpersons,’’ as defined in section 2(a)(19)of the Act.

4. Any sales charges or service feescharged relating to the shares of anFASF Portfolio, when aggregated withany sales charges or service fees paid bythe FASF Portfolio relating to itsacquisition, holding or disposition ofshares of the Underlying Portfolios, willnot exceed the limits set forth in rule2830 of the NASD’s Conduct Rules.

5. Before approving any advisorycontract under section 15 of the Act, theBoard of Directors of FASF, including amajority of Directors who are not‘‘interested persons,’’ as defined insection 2(a)(19), will find that theadvisory fees charged under the contractare based on services provided that arein addition to, rather than duplicativeof, services provided under anyUnderlying Portfolio advisory contract.The finding, and the basis upon whichthe finding was made, will be recordedfully in the minute books of the FASFPortfolios.

6. Applicants agree to provide thefollowing information, in electronicformat, to the Chief Financial Analyst ofthe SEC’s Division of InvestmentManagement: monthly average totalassets of each FASF Portfolio andUnderlying Portfolio; monthlypurchases and redemptions (other thanby exchange) for each FASF Portfolioand each Underlying Portfolio; monthlyexchanges into and out of each FASFPortfolio and each Underlying Portfolio;month-end allocations of each FASFPortfolio’s assets among the UnderlyingPortfolios; annual expense ratios foreach FASF Portfolio and eachUnderlying Portfolio; and a descriptionof any vote taken by the shareholders ofany Underlying Portfolio, including astatement of the percentage of votes casefor and against the proposal by theFASF Portfolios and by the othershareholders of the UnderlyingPortfolio. The information will be


provided as soon as reasonablypracticable following each fiscal year-end of the FASF Portfolio (unless theChief Financial Analyst shall notifyapplicants in writing that suchinformation need no longer besubmitted).

For the Commission, by the Division ofInvestment Management, under delegatedauthority.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–22356 Filed 8–30–96; 8:45 am]BILLING CODE 8010–01–M


North Carolina Limited MaturityMunicipals Portfolio; Notice ofApplication


APPLICANT: North Carolina LimitedMaturity Municipals Portfolio.RELEVANT ACT SECTION: Section 8(f).SUMMARY OF APPLICATION: Applicantrequests an order declaring that it hasceased to be an investment company.FILING DATE: The application was filedon June 28, 1996 and an amendmentthereto on August 14, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the application will beissued unless the SEC orders a hearing.Interested persons may request ahearing by writing to the SEC’sSecretary and serving applicant with acopy of the request, personally or bymail. Hearing requests should bereceived by the SEC by 5:30 p.m. onSeptember 20, 1996, and should beaccompanied by proof of service on theapplicant, in the form of an affidavit or,for lawyers, a certificate of service.Hearing requests should state the natureof the writer’s interest, the reason for therequest, and the issues contested.Persons may request notification of ahearing by writing to the SEC’sSecretary.ADDRESSES: Secretary, SEC, 450 FifthStreet, N.W., Washington, D.C. 20549.Applicant, 24 Federal Street, Boston,Massachusetts 02110.FOR FURTHER INFORMATION CONTACT:Diane L. Titus, Paralegal Specialist, at(202) 942–0584, or Allison E. Baur,Branch Chief, at (202) 942–0564(Division of Investment Management,Office of Investment CompanyRegulation).

SUPPLEMENTARY INFORMATION: Thefollowing is a summary of theapplication. The complete applicationmay be obtained for a fee from the SEC’sPublic Reference Branch.

Applicant’s Representations

1. Applicant is an open-end, non-diversified management investmentcompany organized as a New York trust.Applicant is a master fund in a master-feeder structure.

2. On August 19, 1994, applicantregistered under the Act and filed aregistration statement on Form N–1A.No registration was filed under theSecurities Act of 1933 (‘‘Securities Act’’)because applicant’s beneficial interestswere issued solely in private placementtransactions that did not involve anypublic offering within the meaning ofsection 4(2) of the Securities Act.

3. Applicant’s sole feeder fundterminated its operations and, therefore,applicant is doing the same. OnNovember 20, 1995, applicant’s Board ofTrustees unanimously approved theliquidation of applicant, effectiveJanuary 31, 1996. No shareholderapproval was required by theDeclaration of Trust of Applicant, or byapplicable law.

4. By March 7, 1996, applicantredeemed both of its beneficial interestswhich were held by Eaton Vance NorthCarolina Limited Maturity MunicipalsFund, a series of Eaton VanceInvestment Trust, and Eaton VanceManagement. Each interest holderreceived cash equal to the net assetvalue of its interest in applicant.

5. Applicant has no securityholders,liabilities or assets. Applicant is not aparty to any litigation or administrativeproceeding. Applicant is not nowengaged, nor does it propose to engage,in any business activities other thanthose necessary for the winding up of itsaffairs.




Virginia Limited Maturity MunicipalsPortfolio; Notice of Application


APPLICANT: Virginia Limited MaturityMunicipals Portfolio.RELEVANT ACT SECTION: Section 8(f).SUMMARY OF APPLICATION: Applicantrequests an order declaring that it hasceased to be an investment company.FILING DATE: The application was filedon June 28, 1996 and an amendmentthereto on August 14, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the application will beissued unless the SEC orders a hearing.Interested persons may request ahearing by writing to the SEC’sSecretary and serving applicant with acopy of the request, personally or bymail. Hearing requests should be receiveby the SEC by 5:30 p.m. on September20, 1996, and should be accompaniedby proof of service on the applicant, inthe form of an affidavit or, for lawyers,a certificate of service. Hearing requestsshould state the nature of the writer’sinterest, the reason for the request, andthe issues contested. Persons mayrequest notification of a hearing bywriting to the SEC’s Secretary.ADDRESSES: Secretary, SEC, 450 FifthStreet, N.W., Washington, D.C. 20549.Applicant, 24 Federal Street, Boston,Massachusetts 02110.FOR FURTHER INFORMATION CONTACT:Diane L. Titus, Paralegal Specialist, at(202) 942–0584, or Alison E. Baur,Branch Chief, at (202) 942–0564(Division of Investment Management,Office of Investment CompanyRegulation).SUPPLEMENTARY INFORMATION: Thefollowing is a summary of theapplication. The complete applicationmay be obtained for a fee from the SEC’sPublic Reference Branch.

Applicant’s Representations

1. Applicant is an open-end, non-diversified management investmentcompany organized as a New York trust.Applicant is a master fund in a master-feeder structure.

2. On August 19, 1994, applicantregistered under the Act and filed aregistration statement on Form N–1A.No registration was filed under theSecurities Act of 1933 (‘‘Securities Act’’)


1 15 U.S.C. § 78s(b)(1).2 17 CFR 240.19b–4.

3 Amendment No. 1 is a technical amendmentclarifying the term ‘‘preceding month’’ as used inRules 24.16 and 24.17. See letter from TimothyThompson, Senior Attorney, CBOE to JohnAyanian, Attorney, Office of Market Supervision,Division of Market Regulation, Commission, datedAugust 20, 1996.

4 See Securities Exchange Act Release No. 37348(June 21, 1996), 61 FR 33788 (June 28, 1996) (FileNo. SR–CBOE–96–19).

5 RAES is the Exchange’s automatic executionsystem for small (generally less than 10 contracts)public customer market or marketable limit orders.When an order is entered through RAES, the systemautomatically attaches to the order its executionprice, determined by the prevailing market quote atthe time or the order’s entry into the system. A buyorder pays the offer; a sell order sells at the bid. Aneligible SPX market-maker who is signed onto thesystem at the time the order is received will bedesignated to trade with the public customer orderat the assigned price.

6 See Release No. 34–37348, supra note 4.

because applicant’s beneficial interestswere issued solely in private placementtransactions that did not involve anypublic offering within the meaning ofsection 4(2) of the Securities Act.

3. Applicant’s sole feeder fundterminated its operations and, therefore,applicant is doing the same. OnNovember 20, 1995, applicant’s Board ofTrustees unanimously approved theliquidation of applicant, effectiveJanuary 31, 1996. No shareholderapproval was required by theDeclaration of Trust of Applicant, or byapplicable law.

4. By March 7, 1996, applicantredeemed both of its beneficial interestswhich were held by Eaton VanceVirginia Limited Maturity MunicipalsFund, a series of Eaton VanceInvestment Trust, and Eaton VanceManagement. Each interest holderreceived cash equal to the net assetvalue of its interest in applicant.

5. Applicant has no security holders,liabilities or assets. Applicant is not aparty to any litigation or administrativeproceeding. Applicant is not nowengaged, nor does it propose to engage,in any business activities other thanthose necessary for the winding up of itsaffairs.



[Release No. 34–37612; File No. SR–CBOE–96–51]

Self-Regulatory Organizations; Noticeof Filing and Order GrantingAccelerated Approval of ProposedRule Change by the Chicago BoardOptions Exchange, IncorporatedRelating to Eligibility Requirements forParticipation on the RAES System inSPX Options

August 27, 1996.Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934(‘‘Act’’),1 and Rule 19b–4 2 thereunder,notice is hereby given that on July 26,1996, the Chicago Board OptionsExchange, Incorporated (‘‘CBOE’’ or‘‘Exchange’’) filed with the Securitiesand Exchange Commission

(‘‘Commission’’) the proposed rulechange as described in Items I and IIbelow, which Items have been preparedby the self-regulatory organization. OnAugust 22, 1996, the Exchange filedwith the Commission Amendment No. 1to the proposed rule change.3 TheCommission is publishing this notice tosolicit comments on the proposed rulechange from interested persons and togrant accelerated approval of theproposed rule change, as amended.

I. Self-Regulatory Organization’sStatement of the Terms of Substance ofthe Proposed Rule Change

The Exchange proposes to conformthe qualifications that membersparticipating through joint accountsmust meet in order to participate on theRetail Automatic Execution System(‘‘RAES’’) in Standard & Poor’s 500options (‘‘SPX’’) to those qualificationsthat must be met by market-makerstrading on RAES through theirindividual accounts.4 Pursuant to thechange, members of joints accounts whoexecute at least 50%, instead of 75% (asRule 24.16 currently states), of theirmarket-maker contracts for thepreceding calender month in SPX mayparticipate on RAES. The text of theproposed rule change is available at theOffice of the Secretary, CBOE and at theCommission.

II. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

In its filing with the Commission, theself-regulatory organization includedstatements concerning the purpose ofand basis for the proposed rule changeand discussed any comments it receivedon the proposed rule change. The textof these statements may be examined atthe places specified in Item IV below.The self-regulatory organization hasprepared summaries, set forth inSections A, B, and C below, of the mostsignificant aspects of such statements.

A. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

1. PurposeThe purpose of the proposed rule

change is to amend the qualifications formembers of joint accounts to participatein SPX RAES.5 Specifically, theExchange is proposing to specify thatmarket-makers participating in RAESthrough joint accounts must meet thesame eligibility requirements formarket-makers participating throughindividual accounts. Currently, the onedifference in the requirements is thateach member of a joint account thatparticipates on RAES must execute atleast 75% of his or her market-makercontracts for the preceding month inSPX, while those participating throughindividual accounts have a 50%requirement, as recently approved bythe Commission.6

The Exchange notes that at the timeit proposed to change the eligibilityrequirements for market-makersparticipating in RAES throughindividual accounts, the Exchangeintended to make the same eligibilitychange for market-makers participatingin RAES through joint accounts.Through an oversight, however, theExchange did not revise the Rule24.16(c)(i) language describing theeligibility requirements for market-makers participating in joint accounts.

The Exchange believes that therational for minimum eligibilityrequirements is the same for market-makers participating through individualaccounts and those participatingthrough joint accounts. Accordingly, theExchange believes that the minimumeligibility requirements for individualand joint accounts should be set at thesame threshold. In both cases, theeligibility requirements generally ensurethat those market-makers who aresatisfying the public customer orders atthe prevailing bid or offer are the samemarket-makers who have made acommitment to make markets on aregular basis at the SPX post.

The Exchange notes that whether aparticular market-maker participates in


7 See Release No. 34–37348, supra note 4.

8 15 U.S.C. § 78s(b)(2).9 17 CFR 200.30–3(a)(12).1 15 U.S.C. § 78s(b)(1) (1988).2 Securities Exchange Act Release No. 37433 (July

12, 1996), 61 FR 37783.

RAES through an individual or a jointaccount is a business decision of themarket-maker, and should not affect thatmarket-maker’s eligibility to participatein RAES. The Exchange believes thatwithout making this change to equalizethe eligibility requirements, thosemarket-makers who, for businessreasons, have decided to participatethrough joint accounts would havestricter eligibility requirements thanthose market-markers participating onRAES through individual accounts.

2. Statutory BasisBy equalizing the eligibility

requirements of all market-makers toparticipate on SPX RAES, the CBOEbelieves that the proposed rule changewill treat all market-makers more fairly.As such, the Exchange believes the ruleproposal is consistent with and furthersthe objectives of Section 6(b)(5) of theAct, in that it is designed to perfect themechanisms of a free and open marketand to protect investors and the publicinterest.

B. Self-Regulatory Organization’sStatement on Burden on Competition

The proposed rule change will imposeno burden on competition.

C. Self-Regulatory Organization’sStatement on Comments on theProposed Rule Change Received FromMembers, Participants or Others

No written comments were solicitedor received with respect to the proposedrule change.

III. Commission’s Findings and OrderGranting Accelerated Approval ofProposed Rule Change

The Exchange has requested that theproposed rule change be givenaccelerated effectiveness pursuant toSection 19(b)(2) of the Act. TheCommission finds that the proposedrule change is consistent with therequirements of the Act and the rulesand regulations thereunder applicable toa national securities exchange and, inparticular, with the requirements ofSection 6(b) of the Act. Specifically, theCommission believes that the proposalis consistent with the Section 6(b)(5)requirements that the rules of anexchange be designed to promote justand equitable principles of trade, toprevent fraudulent and manipulativeacts, and, in general, to protect investorsand the public interest.

The Commission believes that thepresence of an adequate number ofmarket-makers protects investors andcontributes to the maintenance of a fairand orderly market. The Commissionalso believes it is reasonable for the

Exchange to apply the same minimumeligibility requirements for participationin SPX RAES through joint accounts asapply to participation throughindividual accounts. The Commissionbelieves that the Exchange’s proposalhelp ensure continued availability ofRAES for SPX options, therebycontributing to the effective andefficient execution of public investororders at the best available prices. TheCommission believes that requiringmarket-makers, whether participatingthrough joint or individual accounts, toexecute at least 50% of their contractsin SPX in the preceding month toparticipate in SPX RAES is a reasonablemeans for achieving this goal.

The Commission finds good cause forapproving the proposed rule changeprior to the thirtieth day after the dateof publication of notice thereof in theFederal Register. Specifically, as statedabove, the Commission believes that thepresence of an adequate number ofmarket-makers protects investors andcontributes to the maintenance of a fairand orderly market. The Commissionalso believes that the CBOE proposal toconform its rules for eligibilityrequirements for market-makersparticipating on RAES through jointaccounts with the eligibilityrequirements for those participatingthrough individual accounts raises nonew regulatory issues. Additionally, asnoted above, the Exchange recentlyproposed the same minimum SPX RAESeligibility requirements for individualaccounts. The proposal regarding SPXRAES eligibility for individual accountswas published in the Federal Register,7and was subject to a full notice andcomment period. No comments werereceived on the proposal. Accordingly,the Commission believes, consistentwith Section 6(b)(5) of the Act, thatgood cause exists to approve theproposed rule change on an acceleratedbasis.

The Commission also finds goodcause for approving Amendment No. 1to the proposed rule change prior to thethirtieth day after the day of publicationof notice hereof in the Federal Register.Specifically, Amendment No. 1 clarifiesthat the ‘‘preceding month’’ reviewed bythe Exchange to determine both SPXand OEX RAES eligibility is thepreceding calendar month. TheCommission believes that theAmendment further clarifies andstrengthens the rule language, and raisesno new regulatory issues. Accordingly,the Commission believes, consistentwith Section 6(b)(5) of the Act, thatgood cause exists to approve

Amendment No. 1 to the proposed rulechange on an accelerated basis.

IV. Solicitation of CommentsInterested persons are invited to

submit written data, views, andarguments concerning the foregoing.Persons making written submissionsshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549. Copies of thesubmission, 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 atthe Commission’s Public ReferenceRoom. Copies of such filing will also beavailable for inspection and copying atthe principal office of the Exchange. Allsubmissions should refer to File No.SR–CBOE–96–51 and should besubmitted by September 24, 1996.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act,8 that theproposed rule change (SR–CBOE–96–51), as amended, is hereby approved onan accelerated basis.

For the Commission, by the Division ofMarket Regulation, pursuant to delegatedauthority.9

Margaret McFarland,Deputy Secretary.[FR Doc. 96–22358 Filed 8–30–96; 8:45 am]BILLING CODE 8010–01–M

[Release No. 34–37608; File No. SR–DTC–96–11]

Self-Regulatory Organizations; TheDepository Trust Company; OrderApproving a Proposed Rule ChangeSeeking Authority To Release ClearingData Relating to Participants

August 26, 1996.On May 28, 1996, The Depository

Trust Company (‘‘DTC’’) filed with theSecurities and Exchange Commission(‘‘Commission’’) a proposed rule change(File No. SR–DTC–96–11) pursuant toSection 19(b)(1) of the SecuritiesExchange Act of 1934 (‘‘Act’’).1 Noticeof the proposal was published in theFederal Register on July 19, 1996.2 No


3 For a complete description of the CMS, refer toSecurities Exchange Act Release No. 36091 (August5, 1995), 60 FR 30912 [File No. SR–NSCC–95–06](order approving the CMS).

4 15 U.S.C. § 78q–1(b)(3)(F) (1988).

5 Currently, DTC and NSCC operate pursuant toa netting and limited cross-guaranty agreement. Theagreement provides that in the event of a default ofa common member, any resources remaining afterthe failed common member’s obligations to theguaranteeing clearing agency have been satisfiedwill be made available to the other clearing agency.The guaranty is not absolute but rather is limitedto the extent of the resources relative to the failedmember remaining at the guaranteeing clearingagency. The principal resources will be the failedmember’s settlement net credit balances anddeposits to the clearing agencies’ clearing funds.For a complete description of DTC’s and NSCC’sagreement, refer to Securities Exchange Act ReleaseNo. 33548 (January 31, 1994), 59 FR 5638 [File Nos.SR–DTC–93–08 and SR–NSCC–93–07].

6 17 CFR 200.30–3(a)(12) (1996).1 15 U.S.C. § 78s(b)(1) (1988).2 Securities Exchange Act Release No. 37258 (May

30, 1996), 61 FR 29160.3 Letters from Jean M. Cawley, OCC, to Jerry W.

Carpenter, Assistant Director, Division of MarketRegulation (‘‘Division’’), Commission (March 20,1996, and July 22, 1996). Because the amendmentsare technical rather than substantive in nature, the

Commission believes it is not necessary to re-noticethe proposed rule change.

4 For a complete description of the batch ERDsystem and the transition to the on-line ERDsystem, refer to Securities Exchange Act Release No.31595 (December 11, 1992), 57 FR 61139 [SR–OCC–92–30] (order approving on an accelerated basis aproposed rule change relating to the conversion ofOCC’s current batch ERD system to an on-linesystem).

comment letters were received. For thereasons discussed below, theCommission is approving the proposedrule change.

I. Description of the ProposalThe rule change establishes Rule 2,

Section 6, of DTC’s rules to govern therelease of certain participantinformation which DTC obtained duringits ordinary course of business. The newrule authorizes DTC to releaseinformation relating to a participant’sparticipants fund deposit, collateral, netcredit balance, and net debit balance(referred to herein as ‘‘clearinginformation’’) to authorized parties.Such authorized parties include otherclearing agencies registered with theCommission at which the participant isa member; any clearing organizationthat is affiliated with or has beendesignated by a futures contract marketunder the oversight of the CommoditiesFutures Trading Commission of whichthe participant is a member; and uponthe request of the participant, to suchother entities as the participant maydesignate.

The rule change will permit DTC torelease clearing information to theNational Securities Clearing Corporation(‘‘NSCC’’) for use in its CollateralManagement Service (‘‘CMS’’).3 CMSprovides collateral informationregarding a participant to the participantand to other clearing agencies at whichthe participant is a member.

II. DiscussionSection 17A(b)(3)(F) of the Act

requires that the rules of a clearingagency be designed to assure thesafeguarding of securities and fundswhich are in the custody or control ofthe clearing agency or for which it isresponsible.4 The Commission believesthe proposed rule change is consistentwith DTC’s obligation under Section17A(b)(3)(F) because the proposal setsforth DTC’s responsibilities andobligations with regard to releasingparticipants’ clearing data and facilitatesDTC’s participation in NSCC’s CMS byenabling DTC to provide participantinformation to NSCC for use in its CMS.DTC’s and its participants’ participationin NSCC’s CMS should help DTC andother clearing agencies to better monitortheir members’ clearing fund, margin,and other similar by required depositsthat protect the clearing agencies againstloss should a member default on itsobligations. Furthermore, NSCC’s CMS

will be especially beneficial to thoseparticipating clearing entities that haveexecuted cross-guaranty agreements orother similar cross-guaranteearrangements.5

III. ConclusionOn the basis of the foregoing, the

Commission finds that the proposal isconsistent with the requirements ofSection 17A(b)(3)(F) of the Act and therules and regulations thereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–DTC–96–11) be, and hereby is,approved.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.6

Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–22357 Filed 8–30–96; 8:45 am]BILLING CODE 8010–01–M

[Release No. 34–37602; File No. SR–OCC–95–17]

Self-Regulatory Organizations; theOptions Clearing Corporation; OrderApproving a Proposed Rule ChangeModifying the Escrow Deposit Program

August 26, 1996.On November 2, 1995, the Options

Clearing Corporation (‘‘OCC’’) filed withthe Securities and ExchangeCommission (‘‘Commission’’) aproposed rule change (File No. SR–OCC–95–17) pursuant to Section19(b)(1) of the Securities Exchange Actof 1934 (‘‘Act’’).1 Notice of the proposalwas published in the Federal Registeron June 7, 1996.2 OCC amended theproposed rule change on March 22,1996, and on July 22, 1996.3 No

comment letters were received. For thereasons discussed below, theCommission is approving the proposedrule change.

I. Description of the ProposalOCC is modifying its escrow deposit

program to (i) permit escrow depositsfor stock put options and stock indexput options; (ii) delete provisionsregarding OCC’s batch system forprocessing escrow receipts; (iii) changeprovisions regarding the timing of therelease of escrow deposits; and (iv)delete provisions for bulk deposits forcall options and deposits of Treasurybills for put options. In addition, OCCis modifying other OCC rules and theOn-line Escrow Deposit Agreement toconform to this rule change.

Pursuant to OCC rules, clearingmembers may deposit, which depositmay be in the form of an escrow deposit,with an OCC approved custodian sharesof stock underlying certain options inlieu of margin. Escrow deposits arespecific deposits of assets held by OCCat an approved custodian for theaccount of a specific customer.Presently, OCC’s rules restrict escrowdeposits to short positions in stock calloption contracts and stock index calloption contracts. For stock call options,the underlying security may bedeposited in escrow, and for stock indexcall options, any combination of cash,short-term government securities, ormarginable equity securities may bedeposited in escrow.

Permitting escrow deposits withrespect to short positions in stock putoption contracts and short positions instock index put option contracts hadbeen deferred until sufficient interestexisted and an acceptable system wasdeveloped to process escrow depositsfor put options. After receiving requeststo expand its escrow program to includesuch deposits for stock and stock indexputs, OCC determined to make severalenhancements and modifications to itsescrow program.

First, OCC is expanding its escrowprogram to permit escrow deposits forshort positions in stock put optioncontracts and in stock index put optioncontracts and to process those depositsthrough its on-line Escrow ReceiptDepository (‘‘ERD’’) system.4 Toaccomplish the proposed expansion of


5 As defined in Rule 610, proposed Interpretation.02, short-term government securities is defined assecurities with a fixed principal amount issued orguaranteed by the United States and having oneyear or less to maturity. 6 15 U.S.C. § 78q–1(b)(3)(F) (1988).

7 17 CFR 200.30–3(a)(12) (1995).1 15 U.S.C. § 78s(b)(1) (1988).2 Letter from James C. Yong, First Vice President

and General Counsel, OCC, to Jerry W. Carpenter,Assistant Director, Division of Market Regulation(‘‘Division’’), Commission (February 5, 1996).

3 Securities Exchange Act Release No. 36960(March 13, 1996), 61 FR 11458.

4 Letter from James C. Yong, First Vice Presidentand General Counsel, OCC, to Jerry W. Carpenter,Esq., Assistant Director, Division, Commission(March 19, 1996).

5 Securities Exchange Act Release No. 37203 (May10, 1996), 61 FR 24995.

its escrow program, certain changes toOCC Rules 610 and 1801 are necessary.In general, the changes willaccommodate the deposit of anycombination of cash and short-termgovernment securities 5 for shortpositions in put contracts, will providefor the valuation and substitution ofdeposited assets, and in the event of thevalue of the property declines below aspecified amount, will permit OCC todisregard the escrow deposit andrequire the clearing member to depositmargin upon notice.

Second, OCC is eliminating its batchERD system for processing escrowreceipts. OCC contemplated theeventual replacement of the batch ERDsystem with its on-line ERD system.OCC believes that all its clearingmembers and custodian banks now havecompleted their transition to the on-linesystem because the batch ERD system isno longer used. Therefore OCC iseliminating references to escrowreceipts in Rule 610 and 1801 and to thebatch processing system described inRule 613(a).

Third, OCC is amending Rule 613 tomodify the time at which it releasesescrow deposits. OCC currently releasesan escrow deposit on the secondbusiness day following the expiration ofthe short position covered by thedeposit, and thereafter if assigned,collects margin for the position formerlycovered by the deposit until the nextbusiness day after the exercisesettlement date. With this proposed rulechange OCC will hold an escrow depositcovering a short position to which anexercise has been allocated until thebusiness day after the exercisesettlement date and will no longercollect margin.

Fourth, OCC is amending Rule 610 toeliminate bulk deposits of underlyingsecurities for call options and thedeposit of Treasury bills for put optionsbecause these capabilities have beenrarely, if ever, used by clearingmembers. Furthermore, the provisionsfor depositing Treasury bills for putoptions is being superseded by the newprovisions for providing escrowdeposits for put option contracts.

Finally, OCC is modifying rules thatrelate to the suspension and liquidationof a clearing member to conform toOCC’s escrow deposit programdescribed above. Specifically, OCC isamending Rule 1106(b)(2) to makeexplicit that OCC would make timelysettlement on an exercise assigned to a

covered short position of a suspendedclearing member even if the depositoryhad not turned over the depositedproperty to OCC at the time ofsettlement. OCC would be entitled toreimburse itself for the cost of effectingsuch settlement from the depositedproperty when such property is remittedto OCC. Similarly, Rule 1107(b)(2) isbeing amended to reflect the sameprinciples to assignments pending at thetime of a clearing member’s suspension.Also, OCC amended its Restated On-Line Escrow Deposit Agreement whichis to be executed between OCC and eachapproved escrow deposit bank. Theamended agreement parallels theprincipal purposes of the filing, whichare to provide for the expansion of theprogram to include escrow deposits forshort positions in stock and stock indexput options, the elimination of hardcopy receipts, and the modification ofthe time at which escrow deposits arereleased.

II. DiscussionThe Commission finds that the

proposed rule change is consistent withthe requirements of the Act and therules and regulations thereunder andparticularly with the requirements ofSection 17A(b)(3)(F).6 Section17A(b)(3)(F) requires that the rules of aclearing agency be designed to promotethe prompt and accurate clearance andsettlement of securities transactions andto assure the safeguarding of securitiesand funds in the custody or control ofthe clearing agency or for which it isresponsible. The Commission believesthat OCC’s proposed rule change meetsthese requirements by establishing aframework in which existing OCCsystems, rules, and procedures areextended to allow escrow deposits forshort positions in stock put optioncontracts and stock index put optioncontracts. The elimination of the batchERD system and the designation of theon-line ERD system as the means ofprocessing escrow deposits should makeprocessing such deposits more efficientand should promote the safeguarding ofthe deposits in the possession of OCC orfor which it is responsible. Byexpanding the escrow receiptframework to include short positions instock put and stock index put optioncontracts and by eliminatingunnecessary steps in the escrow receiptprocess (e.g., release of depositsfollowed by margin collection and bulkdeposits for put options), OCC iscreating more efficient procedures inorder to streamline the processing ofescrow receipts. As a result, the prompt

and accurate clearance and settlement ofsecurities transactions should bepromoted.

III. Conclusion

The Commission finds that theproposal is consistent with therequirements of the Act, particularlywith Section 17A(b)(3)(F) of the Act,and the rules and regulationsthereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–OCC–95–17) be, and hereby is,approved.



[Release No. 34–37603; File No. SR–OCC–95–20]

Self-Regulatory Organizations; TheOptions Clearing Corporation; OrderApproving a Proposed Rule ChangeRelating to the Issuance, Clearance,and Settlement of Buy-Write OptionsUnitary Derivatives

August 26, 1996.On December 27, 1995, the Options

Clearing Corporation (‘‘OCC’’) filed withthe Securities and ExchangeCommission (‘‘Commission’’) aproposed rule change (File No. SR–OCC–95–20) pursuant to Section19(b)(1) of the Securities Exchange Actof 1934 (‘‘Act’’).1 On February 5, 1996,OCC filed Amendment No. 1 to theproposed rule change.2 Notice of theproposed rule change, as amended, waspublished in the Federal Register onMarch 20, 1996.3 No comment letterswere received. On March 20, 1996, OCCfiled Amendment No. 2.4 Notice of theamendment was published in theFederal Register on May 15, 1996.5 Nocomment letters were received. For thereasons discussed below, the


6 For a complete description of the characteristicsof BOUNDs, refer to Securities Exchange ActRelease No. 36710 (January 11, 1996), 61 FR 1791[File Nos. SR–AMEX–94–56, SR–CBOE–95–14, andSR–PSE–95–01] (order approving proposed rulechanges relating to BOUNDs).

7 Open interest refers to the total number ofcontracts that have neither been closed out nor beenallowed to expire.

8 Generally, LEAPS are long-term equity optionsecurities that expire up to 39 months from the dateof issuance. For a complete description of LEAPS,refer to Securities Exchange Act Release No. 28890(February 15, 1991), 56 FR 7439 [File No. SR–CBOE–90–32] (order approving proposed rulechange regarding the listing of LEAPS).

9 It is possible that an obligation to pay or a rightto receive a dividend equivalent that accrued priorto the expiration date of a BOUND will remainoutstanding after the expiration date and even afterexpiration settlement has been completed. OCCsimply will continue to carry the dividendequivalent right or obligation in a manner similarto a settlement obligation of an exercised option. Itwill be margined and marked to the market eachday similar to other settlement obligations.

10 In the event the BOUND transaction cannot besettled through regular-way settlement (i.e., on thethird business day following the expiration date),the contract will be settled on a broker-to-brokerbasis.

Commission is approving the proposedrule change.

I. Description of the ProposalThe purpose of the proposed rule

change is to amend certain OCC By-Laws and Rules and to add new sectionsto OCC’s By-Laws and Rules to providefor the issuance, clearance, andsettlement of a new equity derivativesproduct referred to as Buy-WriteOptions Unitary Derivatives(‘‘BOUNDs’’). The Commission recentlyapproved proposed rule changes filedby the American Stock Exchange(‘‘Amex’’), the Chicago Board OptionsExchange (‘‘CBOE’’), and the PacificStock Exchange (‘‘PSE’’) (collectivelyreferred to as the ‘‘exchanges’’) to listand trade BOUNDs.6

The purchase of a BOUND is intendedto be substantially equivalent to a buy-write transaction (i.e., the simultaneouswriting of a call option and purchase ofthe underlying stock). However, unlikean actual buy-write transaction, thepurchase of a BOUND is effected in asingle exchange transaction. As with allOCC issued options, BOUNDs will becreated when an opening buy and anopening sell order are executed. Theexecution of every such order willincrease the open interest in BOUNDs.7

The exchanges have indicated thatBOUNDs will be listed on the samesecurities on which Long-Term EquityOptions Series (‘‘LEAPS’’) 8 are listedbecause the criteria used for stocksunderlying BOUNDs will be the samecriteria that is used for stocksunderlying LEAPS. The exchangesexpect that BOUNDs will be listed witha duration equal to that of LEAPS,which is currently thirty-nine monthsfrom the date of issuance.

A BOUND holder will be inessentially the same economic positionas a covered writer of a European-stylecall option. BOUND holders will profitfrom the stock’s movement up to thestrike price and will receive paymentsequivalent to any cash dividends paidon the underlying stocks (‘‘dividendequivalent’’). Non-cash distributionsmay be reflected either through the

delivery of the distributed property orby means of adjustments in the terms ofthe BOUNDs. The right of a BOUNDholder to receive and the obligation ofa BOUND writer to pay or deliver adividend equivalent will be fixed at theclose of trading on the business daypreceding the ex dividend date. Theactual payment of the dividendequivalent may occur days or weekslater to coincide with the payable datefor the corresponding dividend on theunderlying stock.9

BOUNDs are European style optionsbecause the holder cannot exercise aBOUND prior to expiration. In contrast,LEAPS are American style options,which can be exercised at any time priorto expiration. At the expiration of aBOUND, either delivery of theunderlying stock or payment of thestrike price is always required, andnotice of exercise is not required.Therefore, the concepts of exercise andassignment are not used in relation toBOUNDs.

Under the proposed rule change, theexpiration settlement date of a BOUNDcontract is the third business dayfollowing the expiration date. Theexpiration settlement date for aparticular BOUND contract will notdepend on whether the contract is to besettled by cash or by the delivery ofstock. BOUNDs to be settled in cash willbe settled through OCC’s cashsettlement system. BOUNDs that are tobe settled by delivery of stock ordinarilywill be settled in the same manner thatexercised stock options are settled (i.e.,through stock clearing corporations).10

Like put and call stock options,BOUNDs ordinarily will trade instandardized contract units of onehundred shares of underlying stock perBOUND contract. Positions in BOUNDswill be included in the formula todetermine a clearing member’s stockclearing fund contribution, andBOUNDs will be included with stockoptions for purposes of margincalculations. The clearing fund pool forBOUNDs will be the same fund poolused for stock options, and the rulechange amends the definition of a

‘‘stock clearing member’’ to be a clearingmember approved to clear transactionsin stock options and BOUNDs.Accordingly, stock clearing memberswill be qualified automatically to engagein transactions in BOUNDs without anyadditional qualification.

At expiration, if on the last day oftrading the underlying stock closes at orbelow the strike price, BOUND holderswill receive one hundred shares of theunderlying stock for each BOUNDcontract held, and BOUND writers willbe required to deliver one hundredshares of the underlying stock for eachBOUND contract written. If at expirationthe underlying stock closes above thestrike price, the BOUND holder willreceive a payment equal to one hundredtimes the BOUND’s strike price for eachBOUND contract held, and BOUNDwriters will be required to makepayment equal to one hundred times theBOUND’s strike price for each BOUNDcontract written. In either case, theBOUND holder ordinarily will be left inthe same economic position as acovered call writer that holds theposition until the expiration of the calloption.

Technically, there is no premium in aBOUND transaction because that termgenerally is used to denote the purchaseprice of an option. However, in order toaccommodate transactions in BOUNDs,the proposed rule change amends thedefinition of the term ‘‘premium’’ topermit the term to include the tradeprice with respect to BOUNDs.

Pursuant to the rule change, OCC willmargin BOUNDs as part of the stockoption product group and will includeBOUNDs in the same class group withput and call options on the sameunderlying stock. Special provisionshave been added to the definition of‘‘premium margin’’ to provide anappropriate definition of the term whenapplied to an expired but unsettledBOUND contract. The added provisionsreflect that premium margin withrespect to an expired long or shortposition in a BOUND may call for eitherthe marking price of such underlyingsecurity due to be settled by delivery orthe payment of the strike pricedepending upon the closing price of theunderlying stock when the BOUNDexpires. The definition of the term‘‘marking price’’ with respect to marginson options and BOUNDs has beenchanged to reflect that OCC will use thehighest reported asked quotation invaluing an underlying security if no lastsale price is available. The minimummargin required for the stock optionproduct group includes protectionagainst the bid/ask spread; therefore, itis not necessary to use a different


11 The exchange(s) must specify that an averageof prices will be used prior to the opening of tradingin any BOUNDs series.

12 OCC’s Securities Committee consists of onedesignated representative of each exchange and theChairman of OCC. 13 15 U.S.C. § 78q–1(b)(3)(F) (1988). 14 17 CFR 200.30–3(a)(12) (1996).

quotation for puts than for calls (i.e.,highest reported ask quotation for calloptions and the lowest reported bidquotation for put options).

The term ‘‘closing price’’ is definedunder the rule change to mean theclosing price for the underlying securityon the primary market on the businessday prior to the expiration date of theBOUND contract. However, theexchange(s) on which any series ofBOUNDs trades may provide that theclosing price of a BOUND be based onan average of prices of the underlyingsecurity near the close of trading onsuch business day.11 The rule changealso sets forth the steps OCC may takein the event the closing price for anunderlying security is unreported orotherwise unavailable. In addition toany other actions OCC may be entitledto take under its By-Laws and Rules,OCC may suspend settlementobligations for the affected BOUNDsuntil a closing price is available or untilOCC determines the closing price. OCChas the authority to determine theclosing price for BOUNDs by means ofa panel consisting of two designatedrepresentatives of each exchange onwhich the affected series is open fortrading and OCC’s Chairman.

The rule change adds a provision toOCC’s By-Laws to specify that theclosing price for the underlying securityof a BOUND is conclusively presumedto be accurate and shall be final forpurposes of determining settlementrights and obligations with respect to aBOUND. The rule change also adds anInterpretation to OCC’s By-Laws toprovide that except in extraordinarycircumstances OCC will not adjust anofficially reported closing price forexercise settlement purposes even if theclosing price is subsequently found tohave been erroneous.

OCC’s Securities Committee shallhave the authority to make adjustmentsin BOUNDs contracts through the sameprocedures as in the case of optionadjustments.12 BOUNDs ordinarily willbe adjusted according to existingadjustment rules, and adjustments areexpected to ordinarily conform toadjustments made with respect toLEAPs on the same underlying stock.Whenever additional shares or otherproperty are distributed with respect toshares of an underlying security (i.e., astock split or stock dividend) and thenumber of BOUND contractsoutstanding is adjusted to reflect the

number of shares distributed or the unitof trading for such BOUND contract isadjusted to include the distributedproperty, then such adjustment will notinclude the obligation to pay andreceived a dividend equivalent.However, when the strike price of aBOUND is reduced to reflect the valueof a distribution, the writer of theBOUND will be obligated to pay adividend equilvant to the holder of theBOUND. This will occur because, unlikein the case of adjusting an option, lowerthe strike price of a BOUND will notgive the holder the benefit of thedistribution because the holder does notpay the strike price (The strike price ofa BOUND caps the value that the holderwill receive upon expiration of theBOUND.) Therefore, it is appropriate togive the holder the benefit of certainextraordinary distributions through adividend equivalent at the time thedistribution is made and also to reducethe strike price so that the BOUNDholder cannot again receive the benefitof the distribution when the BOUNDexpires.

In the case of a cash-out merger ofsimilar transaction, a BOUND will beadjusted to require the writer to payexpiration an amount equal to the lesserof the price paid for the underlyingsecurity in the merger or the strike priceof the BOUND. Because there no longerwill be an underlying security, theexpiration date of the BOUND will beaccelerated so that the cash will be paidto the BOUND holder at or about thesame time that payment of the cash-outvalue is paid to holders of theunderlying security. While themechanics are somewhat different fromthe adjustment ordinarily made for thesame event in the case of an option, theeconomic result is quite similar.Because the value of an option becausefixed as the result of adjusting for acash-out merger, in-the-money optionsare effectively terminated because theyhave no time value and because holdershave every incentive to exercise themimmediately to receive the cash. Theexpiration date of the BOUND will beaccelerated because BOUNDs areEuropean style and cannot be exercisedprior to expiration.

II. DiscussionSection 17A(b)(3)(F) 13 requires that

the rules of a clearing agency bedesigned to assure the safeguarding ofsecurities and funds in the custody orcontrol of the clearing agency or forwhich it is responsible. TheCommission believes that OCC’sproposal is consistent with OCC’s

obligations under Section 17A(3)(F) toassure the safeguarding of securities andfunds in its custody or control becausethe proposal provides that OCC willprocess BOUNDs transactions inaccordance with its existing risk-reduction methodology. For example,under the proposal, BOUNDs will beincluded with stock options forpurposes of margin calculations, andpositions in BOUNDs will be includedin the formula to determine a clearingmember’s proportionate share ofcontribution to the clearing fund.Therefore, a clearing member’s activityin BOUNDs will be reflected in theamount of funds collected (e.g., marginand clearing fund deposits) by OCC tosafeguard it against losses resulting froma clearing member’s failure to settle.

III. Conclusion

On the basis of the foregoing, theCommission finds that the proposal isconsistent with the requirements ofSection 71A(b)(3)(F) of the Act and therules and regulations thereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–OCC–95–20) be, and hereby is,approved.



SOCIAL SECURITY ADMINISTRATION

Agency Information CollectionActivities: Proposed CollectionRequest

The Social Security Administrationpublishes a list of information collectionpackages that will require submission tothe Office of Management and Budget(OMB) for clearance in compliance withP.L. 104–13 effective October 1, 1995,The Paperwork Reduction Act of 1995.The information collection(s) listedbelow requires extension of the currentOMB approval(s).(Call the SSA Reports Clearance Officer on(410) 965–4125 for a copy of the form(s) orpackage(s), or write to her at the addresslisted below the information collections.)

1. Application for SupplementalSecurity Income—0960–0229. Theinformation on form SSA–8000 is usedby the Social Security Administration todetermine a claimant’s eligibility for


benefits and the amount payable inclaims for Supplemental SecurityIncome (SSI). The respondents arecertain applicants for SSI.

Number of Respondents: 1,316,678.Frequency of Response: 1.Average Burden Per Response:

25 minutes for paper application.35 minutes for automated collection

of information.Estimated Annual Burden: 581,533

hours.2. Statement of Living Arrangements,

In-Kind Support and Maintenance—0960–0174. The information on formSSA–8006 is used by the Social SecurityAdministration to determine if anapplicant or recipient meets the incomecriteria for eligibility to SupplementalSecurity Income (SSI) benefits. Therespondents are individuals who applyfor or are receiving SSI payments.

Number of Respondents: 438,400.Frequency of Response: 1.Average Burden Per Response: 7

minutes.Estimated Annual Burden: 51,147

hours.Written comments and

recommendations regarding theseinformation collections should be sentwithin 60 days from the date of thispublication, directly to the SSA ReportsClearance Officer at the followingaddress: Social Security Administration,DCFAM, Attn: Judith T. Hasche, 6401Security Blvd., 1–A–21 OperationsBldg., Baltimore, MD 21235.

In addition to your comments on theaccuracy of the agency’s burdenestimate, we are soliciting comments onthe need for the information; itspractical utility; ways to enhance itsquality, utility and clarity; and on waysto minimize burden on respondents,including the use of automatedcollection techniques or other forms ofinformation technology.

Dated: August 26, 1996.Judith T. Hasche,Reports Clearance Officer, Social SecurityAdministration.[FR Doc. 96–22191 Filed 8–30–96; 8:45 am]BILLING CODE 4190–29–M

COMMITTEE FOR THEIMPLEMENTATION OF TEXTILEAGREEMENTS

Cancellation of a Limit and GuaranteedAccess Level for Certain Cotton andMan-Made Fiber Textile ProductsProduced or Manufactured in Jamaica

August 27, 1996.AGENCY: Committee for theImplementation of Textile Agreements(CITA).

ACTION: Issuing a directive to theCommissioner of Customs cancelling alimit and guaranteed access level.

EFFECTIVE DATE: September 3, 1996.FOR FURTHER INFORMATION CONTACT:Naomi Freeman, International TradeSpecialist, Office of Textiles andApparel, U.S. Department of Commerce,(202) 482–4212.

SUPPLEMENTARY INFORMATION:Authority: Executive Order 11651 of March

3, 1972, as amended; section 204 of theAgricultural Act of 1956, as amended (7U.S.C. 1854); Uruguay Round AgreementsAct.

The United States Government hasdecided to cancel the limit andguaranteed access level (GAL) onimports of cotton and man-made fibernightwear in Categories 351/651 fromJamaica established for the periodbeginning on January 1, 1996 andextending through December 31, 1996.

In the letter published below, theChairman of CITA directs theCommissioner of Customs, effective onSeptember 3, 1996, to cancel the 1996limit and GAL for Categories 351/651.Also, U.S. Customs Service is directednot to sign the form ITA–370P for exportof U.S. formed and cut parts inCategories 351/651.

A description of the textile andapparel categories in terms of HTSnumbers is available in theCORRELATION: Textile and ApparelCategories with the Harmonized TariffSchedule of the United States (seeFederal Register notice 60 FR 65299,published on December 19, 1995). Alsosee 61 FR 1360, published on January19, 1996.

The letter to the Commissioner ofCustoms and the actions taken pursuantto it are not designed to implement allof the provisions of the Uruguay RoundAgreements Act and the Uruguay RoundAgreement on Textiles and Clothing, butare designed to assist only in theimplementation of certain of theirprovisions.Philip J. Martello,Acting Chairman, Committee for theImplementation of Textile Agreements.

Committee for the Implementation of TextileAgreementsAugust 27, 1996.Commissioner of Customs,Department of the Treasury, Washington, DC

20229.Dear Commissioner: This directive

amends, but does not cancel, the directiveissued to you on January 11, 1996, by theChairman, Committee for the Implementationof Textile Agreements. That directiveconcerns imports of certain cotton, wool,man-made fiber and other vegetable fiber

textiles and textile products, produced ormanufactured in Jamaica and exportedduring the period which began on January 1,1996 and extends through December 31,1996.

Effective on September 3, 1996, you aredirected to cancel the current limit andguaranteed access level for Categories 351/651.

Also effective on September 3, 1996, U.S.Customs Service is directed to no longer signthe form ITA–370P for export of U.S. formedand cut parts in Categories 351/651.

The Committee for the Implementation ofTextile Agreements has determined thatthese actions fall within the foreign affairsexception to the rulemaking provisions of 5U.S.C.553(a)(1).

Sincerely,Philip J. Martello,Acting Chairman, Committee for theImplementation of Textile Agreements.[FR Doc.96–22351 Filed 8–30–96; 8:45 am]BILLING CODE 3510–DR–F

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Dockets OST–96–1548]

Application of Valujet Airlines, Inc. foran Exemption

AGENCY: Department of Transportation.ACTION: Notice of Order to Show Cause(Order 96–8–45).

SUMMARY: The Department ofTransportation is directing all interestedpersons to show cause why it shouldnot issue an order finding ValuJetAirlines, Inc., fit, willing, and able, toresume air transportation operations.DATES: Persons wishing to fileobjections should do so no later thanSeptember 5, 1996.ADDRESSES: Objections and answers toobjections should be filed in DocketOST–96–1548 and addressed to theDocumentary Services Division (C–55,Room PL–401), U.S. Department ofTransportation, 400 Seventh Street,SW., Washington, DC 20590, and shouldbe served upon the parties listed inAttachment A to the order.FOR FURTHER INFORMATION CONTACT: Ms.Delores King, Air Carrier FitnessDivision (X–56, Room 6401), U.S.Department of Transportation, 400Seventh Street, SW., Washington, DC20590, (202) 366–2343.

Dated: August 29, 1996.Charles A. Hunnicutt,Assistant Secretary for Aviation andInternational Affairs.[FR Doc. 96–22594 Filed 8–30–96; 8:57 am]BILLING CODE 4910–62–P


White House Commission on AviationSafety and Security; Change to Noticeof Meeting

AGENCY: Office of the Secretary (OST),DOT.ACTION: Change to notice of meeting.

SUMMARY: The White HouseCommission on Aviation Safety andSecurity has had to change the time andplace of the meeting on September 5,1996 to discuss aviation safety andsecurity issues, and to close part of it tothe public.DATES: As changed, the open portion ofthe meeting will be held on Thursday,September 5, 1996, from 12:00 noon to1:00 PM; from 1:00 PM to 2:00 PM, themeeting will continue but will be closedto the public because matters will bediscussed that are classified in theinterest of national security.ADDRESSES: As changed, the meetingwill take place in the CommerceDepartment Auditorium, 14th Streetbetween Constitution and PennsylvaniaAvenues, NW, Washington, DC.FOR FURTHER INFORMATION CONTACT:Richard K. Pemberton, AdministrativeOfficer, Room 6210, General ServicesAdministration Headquarters Building,18th & F Streets, NW, Washington, DC20405; telephone 202.501.3863;telecopier 202.501.6160.

Issued in Washington, DC on August 27,1996.Thomas W. Herlihy,Acting General Counsel, Department ofTransportation.[FR Doc. 96–22419 Filed 8–30–96; 8:45 am]BILLING CODE 4910–62–P

Federal Aviation Administration

RTCA, Inc.; RTCA Special Committee188, Minimum Aviation SystemPerformance Standards for HighFrequency Data Link (HFDL)

Pursuant to section 10(a) (2) of theFederal Advisory Committee Act (P.L.92–463, 5 U.S.C., Appendix 2), notice ishereby given for an RTCA SpecialCommittee 188 meeting to be heldSeptember 23–26, 1996, starting at 9:30a.m. on Monday, September 23, and at9:00 am on September 23, 25, and 26.The meeting will be held at RTCA, Inc.,1140 Connecticut Avenue, N.W., Suite1020, Washington, DC, 20036.

September 23: Working Group 1MASPS; September 24: Working Group1 and begin Working Group 2 MOPS;September 25: Working Group 2,continued; September 26: PlenarySession.

The agenda of the Plenary Sessionwill be as follows: (1) IntroductoryRemarks; (2) Review and Approval ofMeeting Agenda; (3) Approval of theSummary of the Previous Meeting; (4)Presentations; (5) Reports from WorkingGroups 1 and 2; (6) Other Business; (7)Set Agenda for Next Meeting; (8) Dateand Place of Next Meeting.

Attendance is open to the interestedpublic but limited to space availability.With the approval of the chairman,members of the public may present oralstatements at the meeting. Personswishing to present statements or obtaininformation should contact the RTCASecretariat, 1140 Connecticut Avenue,N.W., Suite 1020, Washington, DC,20036; (202) 833–9339 (phone) or (202)833–9434 (fax). Members of the publicmay present a written statement to thecommittee at any time.

Issued in Washington, DC, August 27,1996.Janice L. Peters,Designated Official.[FR Doc. 96–22408 Filed 8–30–96; 8:45 am]BILLING CODE 4810–13–M

Notice of Intent to Rule on Application(96–01–C–00–MDT) to Impose and Usethe Revenue From a Passenger FacilityCharge (PCF) at HarrisburgInternational Airport, Harrisburg, PA

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of Intent to Rule onApplication.

SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a PFC at HarrisburgInternational Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before October 3, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Mr. Lawrence W. Walsh,Manager, Harrisburg Airports DistrictOffice, 3911 Hartzdale Dr., suite 1,Camp Hill, PA 17011.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. Charles H.Hostetter, Director of the Bureau ofAviation of the PennsylvaniaDepartment of Transportation at thefollowing address: 208 Airport Road,

Harrisburg International Airport,Middletown, Pennsylvania 17057.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the Bureau ofAviation of the PennsylvaniaDepartment of Transportation undersection 158.23 of Part 158.FOR FURTHER INFORMATION CONTACT:L.W. Walsh, Manager HarrisburgAirports District Office, 3911 HartzdaleDr., suite 1, Camp Hill, PA 17011. 717–782–4548. The application may bereviewed in person at this samelocation.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PFC atHarrisburg International Airport underthe provisions of the Aviation Safetyand Capacity Expansion Act of 1990(Title IX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).

On August 23, 1996, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by the Bureau of Aviation ofthe Pennsylvania Department ofTransportation was substantiallycomplete within the requirements ofsection 158.25 of Part 158. The FAAwill approve or disapprove theapplication, in whole or in part, no laterthan November 28, 1996.

The following is a brief overview ofthe application.

Application number: 96–01–C–00–MDT.

Level of the proposed PFC: $3.00.Proposed charge effective date:

February 1, 1997.Proposed charge expiration date:

September 1, 1999.Total estimated PFC revenue:

$4,047,000.Brief description of proposed projects:

The PFC funds will be utilized to fundthe local share of the following AIPproject.—Overlay of Runway 13–31—Phase II

Class or classes of air carriers whichthe public agency has requested not berequired to collect PFCs: Air Taxi/Commercial Operators filing FAA Form1800–31.

Any person may inspect theapplication in person at the FAA officelisted above under FOR FURTHERINFORMATION CONTACT and at the FAAregional Airports office located at:Fitzgerald Federal Building, John F.Kennedy International Airport, Jamaica,New York, 11430.

In addition, any person may, uponrequest, inspect the application, notice


and other documents germane to theapplication in person at the Bureau ofAviation of the PennsylvaniaDepartment of Transportation Airport.

Issued in Jamaica, New York on August 23,1996.Thomas Felix,Acting Manager, Planning & ProgrammingBranch, Eastern Region.[FR Doc. 96–22406 Filed 8–30–96; 8:45 am]BILLING CODE 4910–13–M

Notice of Intent to Rule on Application(96–02–C–00–JST) to Impose and Usethe Revenue from a Passenger FacilityCharge (PFC) at Johnstown-CambriaAirport, Johnstown, PA

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of intent to rule onapplication.

SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a PFC at Johnstown-Cambria County Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before October 3, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Mr. Lawrence W. Walsh,Manager, Harrisburg Airports DistrictOffice, 3911 Hartzdale Dr., suite 1,Camp Hill, PA 17011.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. WilliamL. Santoro, Manager of the Johnstown-Cambria Airport Authority at thefollowing address: Johnstown-CambriaAirport, 479 Airport Road, Suite 1,Johnstown, Pennsylvania 15904.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the Johnstown-Cambria Airport Authority undersection 158.23 of Part 158.FOR FURTHER INFORMATION CONTACT:L.W. Walsh, Manager HarrisburgAirports District Office, 3911 HartzdaleDr., suite 1, Camp Hill, PA 17011. 717–782–4548. The application may bereviewed in person at this samelocation.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PFC at

Johnstown-Cambria County Airportunder the provisions of the AviationSafety and Capacity Expansion Act of1990 (Title IX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).

On August 23, 1996, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by the Johnstown-CambriaAirport Authority was substantiallycomplete within the requirements ofsection 158.25 of Part 158. The FAAwill approve or disapprove theapplication, in whole or in part, no laterthan December 2, 1996.


Application number: 96–02–C–00–JST.


December 1, 1996.Proposed charge expiration date:

February 1, 1998.Total estimated PFC revenue:

$201,250.Brief description of proposed projects:

The PFC funds will be utilized to fundthe local share of the following AIPprojects.

—Purchase Tow Snow RemovalEquipment

—Seal Coat Terminal Apron—Conduct Terminal Building

Renovation Study

Class or classes of air carriers whichthe public agency has requested not berequired to collect PFCs: Air Taxi/Commercial Operators filing FAA Form1800–31.


In addition, any person may, uponrequest, inspect the application, noticeand other documents germane to theapplication in person at the Johnstown-Cambria Airport Authority.

Issued in Jamaica, New York on August 23,1996.Thomas Felix,Acting Manager, Planning & ProgrammingBranch Eastern Region.[FR Doc. 96–22407 Filed 8–30–96; 8:45 am]BILLING CODE 4910–13–M

Notice of Intent to Rule on Application(96–02–C–00–HTS) to impose and usethe revenue from a passenger facilitycharge (PFC) at Tri-State Airport,Huntington, West Virginia

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of Intent to Rule onApplication.

SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a PFC at Tri-State Airportunder the provisions of the AviationSafety and Capacity Expansion Act of1990 (Title IX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before October 3, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Mr. Elonza Turner, BeckleyAirports Field Office, Main Terminalbuilding, 176 Airport Circle, Beaver,West Virginia 25813–9350.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. Larry G.Salyers, Airport Director of the Tri-StateAirport Authority at the followingaddress: Tri-State Airport Authority,1449 Airport Road, Unit 1, Box,Huntington, West Virginia 26505.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the Tri-StateAirport Authority under section 158.23of Part 158.FOR FURTHER INFORMATION CONTACT:Mr. Elonza Turner, Beckley AirportsField Office, Main Terminal building176 Airport Circle, Beaver, WestVirginia 25813–9350 (Tel. 304–252–6216). The application may be reviewedin person at this same location.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PFC at Tri-State Airport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Public Law 101–508) and Part 158 ofthe Federal Aviation Regulations (14CFR Part 158).

On August 12, 1996, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by the Tri-State AirportAuthority was substantially completewithin the requirements of section158.25 of Part 158. The FAA will


1 The ICC Termination Act of 1995, Pub. L. No.104–88, 109 Stat. 803, which was enacted onDecember 29, 1995, and took effect on January 1,1996, abolished the Interstate CommerceCommission and transferred certain functions to theSurface Transportation Board (Board). This noticerelates to functions that are subject to the Board’sjurisdiction pursuant to 49 U.S.C. 10903.

2 The Douglas County Environmental Services(County) filed a request for an issuance of a noticeof interim trail use (NITU) for the line pursuant tosection 8(d) of the National Trails System Act, 16U.S.C. 1247(d). The Board will address the County’strail use request, and any others that may be filed,in a subsequent decision.

3 The Board will grant a stay if an informeddecision on environmental issues (whether raisedby a party or by the Board’s Section ofEnvironmental Analysis in its independentinvestigation) cannot be made before theexemption’s effective date. See Exemption of Out-of-Service Rail Lines, 5 I.C.C. 2d 377 (1989). Anyrequest for a stay should be filed as soon as possibleso that the Board may take appropriate action beforethe exemption’s effective date.

4 See Exempt. of Rail Abandonment—Offers ofFinan. Assist., 4 I.C.C. 2d 164 (1987).

5 The Board will accept late-filed trail userequests so long as the abandonment has not beenconsummated and the abandoning railroad iswilling to negotiate an agreement.

approve or disapprove the application,in whole or in part, no later thanDecember 6, 1996.


Application number: 96–02–C–00–HTS.


October 1, 1996.Proposed charge expiration date: July

1, 1998.Total estimated PFC revenue:

$366,600.Brief description of proposed projects:

The PFC funds will be utilized to fundthe local share of the followingproposed AIP project.—Repair Land Slide in Runway 30

Safety AreaClass or classes of air carriers which

the public agency has requested not tobe required to collect PFCs: Non-Scheduled Part 135 and 121 charteroperators.


In addition, any person may, uponrequest, inspect the application, noticeand other documents germane to theapplication in person at the Tri-StateAirport Authority.

Issued in Jamaica, New York on August 23,1996.Thomas Felix,Acting Manager, Planning & ProgrammingBranch, Eastern Region.[FR Doc. 96–22405 Filed 8–30–96; 8:45 am]BILLING CODE 4910–13–M

Surface Transportation Board 1

[STB Docket No. AB–3 (Sub-No. 138X]

Missouri Pacific Railroad Company—Abandonment and DiscontinuanceExemption—in Douglas County, NE

Missouri Pacific Railroad Company(MP) has filed a notice of exemptionunder 49 CFR 1152 Subpart F—ExemptAbandonments and Discontinuances ofTrackage Rights over approximately0.61-mile portion of the Omaha Belt

Line from milepost 485.55 to the end ofthe line at milepost 486.16, near Omaha,in Douglas County, NE.2

MP has certified that: (1) No localtraffic has moved over the line for atleast 2 years; (2) there is no overheadtraffic on the line; (3) no formalcomplaint filed by a user of rail serviceon the line (or by a state or localgovernment entity acting on behalf ofsuch user) regarding cessation of serviceover the line either is pending with theBoard or with any U.S. District Court orhas been decided in favor ofcomplainant within the 2-year period;and (4) the requirements at 49 CFR1105.7 (environmental reports), 49 CFR1105.8 (historic reports), 49 CFR1105.11 (transmittal letter), 49 CFR1105.12 (newspaper publication), and49 CFR 1152.50(d)(1) (notice togovernmental agencies) have been met.

As a condition to this exemption, anyemployee adversely affected by theabandonment shall be protected underOregon Short Line R. Co.—Abandonment—Goshen, 360 I.C.C. 91(1979). To address whether thiscondition adequately protects affectedemployees, a petition for partialrevocation under 49 U.S.C. 10502(d)must be filed.

Provided no formal expression ofintent to file an offer of financialassistance (OFA) has been received, thisexemption will be effective on October3, 1996, unless stayed pendingreconsideration. Petitions to stay that donot involve environmental issues,3formal expressions of intent to file anOFA under 49 CFR 1152.27(c)(2),4 andtrail use/rail banking requests under 49CFR 1152.29 5 must be filed bySeptember 13, 1996. Petitions to reopenor requests for public use conditionsunder 49 CFR 1152.28 must be filed bySeptember 23, 1996, with: Office of theSecretary, Case Control Branch, Surface

Transportation Board, 1201 ConstitutionAvenue, N.W., Washington, DC 20423.

A copy of any petition filed with theBoard should be sent to applicant’srepresentative: Joseph D. Anthofer,General Attorney, Missouri PacificRailroad Company, 1416 Dodge Street,Room 830, Omaha, NE 68179.

If the verified notice contains false ormisleading information, the exemptionis void ab initio.

MP has filed an environmental reportwhich addresses the abandonment’seffects, if any, on the environment andhistoric resources. The Section ofEnvironmental Analysis (SEA) willissue an environmental assessment (EA)by September 6, 1996. Interestedpersons may obtain a copy of the EA bywriting to SEA (Room 3219, SurfaceTransportation Board, Washington, DC20423) or by calling Elaine Kaiser, Chiefof SEA, at (202) 927–6248. Commentson environmental and historicpreservation matters must be filedwithin 15 days after the EA becomesavailable to the public.

Environmental, historic preservation,public use, or trail use/rail bankingconditions will be imposed, whereappropriate, in a subsequent decision.

Decided: August 28, 1996.By the Board, Joseph H. Dettmar, Acting

Director, Office of Proceedings.Vernon A. Williams,Secretary.[FR Doc. 96–22455 Filed 8–30–96; 8:45 am]BILLING CODE 4915–00–P

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco andFirearms

Proposed Collection; CommentRequest

ACTION: Notice and request forcomments.

SUMMARY: The Department of theTreasury, as part of its continuing effortto reduce paperwork and respondentburden, invites the general public andother Federal agencies to take thisopportunity to comment on proposedand/or continuing informationcollections, as required by thePaperwork Reduction Act of 1995,Public Law 104–13 (44 U.S.C.3506(c)(2)(A)). Currently, the Bureau ofAlcohol, Tobacco and Firearms withinthe Department of the Treasury issoliciting comments concerning theGrape Variety Names, Varietal (Grape-Type Labeling) and Approval of NewGrape Variety Names.


DATES: Written comments should bereceived on or before November 4, 1996to be assured of consideration.ADDRESSES: Direct all written commentsto Bureau of Alcohol, Tobacco andFirearms, Linda Barnes, 650Massachusetts Avenue, NW.,Washington, DC 20226, (202) 927–8930.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the form(s) and instructionsshould be directed to Charles N. Bacon,Wine, Beer and Spirits RegulationsBranch, 650 Massachusetts Avenue,NW., Washington, DC 20226, (202) 927–8518.SUPPLEMENTARY INFORMATION:

Title: Grape Variety Names, Varietal(Grape-Type Labeling) and Approval ofNew Grape Variety Names.

OMB Number: 1512–0513.Recordkeeping Requirement ID

Number: ATF REC 5100/2.Abstract: The type of grape wine may

be described in labeling and advertisingby using the variety name of the grapefrom which the wine is made. Grapevariety names have been listed inregulations to assure accuracy. Thiscollection provides ATF withinformation about new grape varieties inuse. This information collection isvoluntary. There is no record retentionrequirement.

Current Actions: There are no changesto this information collection and it isbeing submitted for extension purposesonly.

Type of Review: Extension.Affected Public: Business or other for-

profit.Estimated Number of Respondents: 5.Estimated Time Per Respondent: 2

hours.Estimated Total Annual Burden

Hours: 10.Request for Comments: Comments

submitted in response to this notice willbe summarized and/or included in therequest for OMB approval. Allcomments will become a matter ofpublic record. Comments are invited on:(a) Whether the collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation shall have practical utility;(b) the accuracy of the agency’s estimateof the burden of the collection ofinformation; (c) ways to enhance thequality, utility, and clarity of theinformation to be collected; and (d)ways to minimize the burden of thecollection of information onrespondents, including through the useof automated collection techniques orother forms of information technology.Also, ATF requests information

regarding any monetary expenses youmay incur while completing theseforms.

Dated: August 26, 1996.John W. Magaw,Director.[FR Doc. 96–22280 Filed 8–30–96; 8:45 am]BILLING CODE 4810–31–P

[Notice No. 837]

Appointments of Individuals to Serveas Members of the PerformanceReview Board (PRB); Senior ExecutiveService

SUMMARY: Pursuant to 5 U.S.C.4314(c)(4), this notice announces theappointment of members of thePerformance Review Board for theBureau of Alcohol, Tobacco andFirearms (ATF) for the rating periodbeginning July 1, 1995, and endingSeptember 30, 1996. This notice effectschanges in the membership of the ATFPRB previously appointed May 17, 1995(60 FR 26478).

The names and titles of the ATF PRBmembers are as follows:Stephen J. McHale, Chief Counsel,

Bureau of Alcohol, Tobacco andFirearms, Department of the Treasury

John A. Dooher, Director, WashingtonOffice, Federal Law EnforcementTraining Center, Department of theTreasury

Suellen P. Hamby, Executive Director,Treasury Executive Institute,Department of the Treasury.

FOR FURTHER INFORMATION CONTACT:Clarence Wheeler, Jr., PersonnelDivision, Bureau of Alcohol, Tobaccoand Firearms, 650 MassachusettsAvenue, NW., Washington, DC 20226;telephone (202) 927–8600.

Dated: August 27, 1996.John W. Magaw,Director.[FR Doc. 96–22345 Filed 8–30–96; 8:45 am]BILLING CODE 4810–31–M

Office of Thrift Supervision

Submission for OMB Review; commentrequest

August 27, 1996.The Office of Thrift Supervision

(OTS) has submitted the followingpublic information collectionrequirement(s) to OMB for review andclearance under the PaperworkReduction Act of 1995, Public Law 104–13. Copies of the submission(s) may beobtained by calling the OTS ClearanceOfficer listed. Comments regarding thisinformation collection should be

addressed to the OMB reviewer listedand to the OTS Clearance Officer, Officeof Thrift Supervision, 1700 G Street,N.W., Washington, D.C. 20552.

OMB Number: 1550–0029.Form Number: OTS Form 1583.Type of Review: Extension without

change.Title: Capital Distributions.Description: The information

collection provides uniform treatmentfor capital distributions made by savingsassociations. It ensures adequatesupervision of distributions of capital bysavings associations, thereby fosteringsafety and soundness of the thriftindustry.

Respondents: Savings and LoanAssociations and Savings Banks.

Estimated Number of Respondents:1,027.

Estimated Burden Hours PerResponse: 4.

Frequency of Response: 4.Estimated Total Reporting Burden:

16,432.Clearance Officer: Colleen M. Devine,

(202) 906–6025, Office of ThriftSupervision, 1700 G Street, N. W.,Washington, D.C. 20552.

OMB Reviewer: Alexander Hunt, (202)395–7860, Office of Management andBudget, Room 10226, New ExecutiveOffice Building, Washington, D.C.20503.Catherine C. M. Teti,Director, Records Management andInformation Policy.[FR Doc. 96–22283 Filed 8–30–96; 8:45 am]BILLING CODE 6720–01–P

[AC–44; OTS No. 4921]

Fulton Savings Bank, FSB, Fulton,Missouri; Approval of ConversionApplication

Notice is hereby given that on August15, 1996, the Director, CorporateActivities, Office of Thrift Supervision,or her designee, acting pursuant todelegated authority, approved theapplication of Fulton Savings Bank,FSB, Fulton, Missouri, to convert to thestock form of organization. Copies of theapplication are available for inspectionat the Dissemination Branch, Office ofThrift Supervision, 1700 G Street, N.W.,Washington, D.C. 20552, and theMidwest Regional Office, Office ofThrift Supervision, 122 W. JohnCarpenter Freeway, Suite 600, Irving,Texas 75039–2010.By the Office of Thrift Supervision.


Dated: August 28, 1996.Nadine Y. Washington,Corporate Secretary.[FR Doc. 96–22344 Filed 8–30–96; 8:45 am]BILLING CODE 6720–01–M

UNITED STATES INSTITUTE OFPEACE

Announcement of the 1997 SolicitedGrant Topics

AGENCY: United States Institute of Peace.ACTION: Notice.

SUMMARY: The Agency is SolicitingApplications for its 1997 Solicited GrantCompetition. The 1997 Themes/Topicsare:

• Solicitation A: Post-SettlementPeacebuilding.

• Solicitation B: Negotiation,Mediation, and ‘‘Track II’’ Diplomacy.Subtopic: Training of InternationalAffairs Professionals and Practitioners.Subtopic: Mediation.

• Solicitation C: Regional SecurityIssues And Conflicts. Subtopic:European Security. Subtopic: South andSoutheast Asia.

• Solicitation D: Cross CulturalNegotiation Country Studies.DATES: Application material availableupon request. Receipt date for return ofapplications: January 2, 1997.Notification of awards: March 1997.ADDRESSES: For Application Package:United States Institute of Peace, GrantProgram, Solicited Grants, 1550 MStreet, NW., Suite 700, Washington, DC20005–1708, (202) 429–6063 (fax), (202)429–1719 (TTY), E-mail: grant [email protected] FURTHER INFORMATION CONTACT: TheGrant Program, Phone (202) 429–3842.

Dated: August 19, 1996.Bernice J. Carney,Director, Office of Administration.[FR Doc. 96–22363 Filed 8–30–96; 8:45 am]BILLING CODE 3155–01–M

fede

ral r

egiste

r

46509

TuesdaySeptember 3, 1996

Part II

Department ofHousing and UrbanDevelopment24 CFR Part 3500Real Estate Settlement Procedures Act:Streamlining Regulatory Reform andEscrow Accounting Procedures; FinalRule and Proposed Rule


DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT

24 CFR Part 3500

[Docket No. FR–4023–F–03]

RIN 2502–AG69

Office of the Assistant Secretary forHousing-Federal HousingCommissioner; Real Estate SettlementProcedures Act; Streamlining FinalRule; Correction and Clarification

AGENCY: Office of the AssistantSecretary for Housing-Federal HousingCommissioner, HUD.ACTION: Correction to final rule andclarification.

SUMMARY: On March 26, 1996 (61 FR13232), the Department published afinal rule streamlining its regulationsunder the Real Estate SettlementProcedures Act (RESPA). That rule,when published, left unchangedreferences in the rule to ‘‘effectivedate[s]’’ in certain provisions. HUD’sintent was that these references shouldcontinue to refer to the effective date ofthe escrow accounting procedures rule,which was May 24, 1995, not to theeffective date of the streamlining rule.By this document, the text of thestreamlining rule is corrected to includeexpressly the May 24, 1995, effectivedate in the applicable provisions.

In addition, this document contains atechnical clarification of thestreamlining rule concerning the use oftoll-free numbers.EFFECTIVE DATE: October 8, 1996.FOR FURTHER INFORMATION CONTACT:David R. Williamson, Director, Office ofConsumer and Regulatory Affairs, Room5241, Department of Housing and UrbanDevelopment, 451 Seventh Street, SW,Washington, DC 20410, telephonenumber (202) 708–4560 (this is not atoll-free number); or for legal questions:Kenneth A. Markison, Assistant GeneralCounsel for GSE/RESPA, GrantMitchell, Senior Attorney for RESPA, orRichard S. Bennett, Attorney, Room9262, Department of Housing and UrbanDevelopment, 451 Seventh Street, SW,Washington, DC 20410, telephonenumber (202) 708–1550 (this is not atoll-free number). For hearing- or

speech-impaired persons, this numbermay be accessed via TTY (texttelephone) by calling the FederalInformation Relay Service at 1–800–877–8339.


CorrectionsThe March 26, 1996 (61 FR 13232)

streamlining rule left unchangedreferences in §§ 3500.17(b) and (c)(4)(i)to the ‘‘effective date of this rule’’, the‘‘effective date of this final rule’’, and‘‘effective date of this section’’. Thesereferences appeared in the definitions of‘‘phase-in period’’, ‘‘post rule account’’,and ‘‘pre-rule account’’. HUD is issuingthis correction to substitute the May 24,1995, effective date of the applicablerule escrow accounting procedures rule(60 FR 8812, February 15, 1995), for theunclear references in those provisions.

Technical ClarificationThe streamlining rule was first

corrected on April 29, 1996 (61 FR18674). Subsequently, some servicershave noted that the streamlining ruleremoved from the Code of FederalRegulations (CFR) a number of examplesof Initial and Annual Escrow AccountStatements. Each example of thestatements referenced ‘‘[Servicer’sname, address and toll-free number]’’under the format’s title. Some havequestioned whether the removal of theseformats from the CFR constitutes achange in the requirements pertaining totoll-free numbers.

The requirements have not changed.As the preamble to the streamlining rulemakes clear, while the Departmentremoved from codification several of theappendices that previouslyaccompanied part 3500, these materialshave been preserved and are available asPublic Guidance Documents. Becausethe removal of these formats fromcodification did not change anyrequirements, including those for toll-free numbers (see, e.g., paragraph6(b)(3)(B) of RESPA; 12 U.S.C.2605(b)(3)(B)), HUD does not believethat any change to the rule text isrequired to make this clarification.

List of Subjects in 24 CFR Part 3500Consumer protection, Condominiums,

Housing, Mortgages, Mortgage servicing,

Reporting and recordkeepingrequirements.

Accordingly, part 3500 of title 24 ofthe Code of Federal Regulations iscorrected by making the followingcorrecting amendments:

PART 3500—REAL ESTATESETTLEMENT PROCEDURES ACT

1. The authority citation is revised toread as follows:

Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C.3535(d).

2. Section 3500.17 is amended:a. In paragraph (b) by revising the

definitions of ‘‘Phase-in period’’, ‘‘Post-rule account’’, and ‘‘Pre-rule account’’;and

b. In paragraph (c)(4)(i) by revising thelast sentence, to read as follows:

§ 3500.17 Escrow Accounts.

* * * * *(b) * * *Phase-in period means the period

beginning on May 24, 1995, and endingon the conversion date, i.e., October 27,1997, by which date all servicers shalluse the aggregate accounting method inconducting escrow account analyses.

Post-rule account means an escrowaccount established in connection witha federally related mortgage loan whosesettlement date is on or after May 24,1995.* * * * *

Pre-rule account is an escrow accountestablished in connection with afederally related mortgage loan whosesettlement date is before May 24, 1995.* * * * *

(c) * * *(4) * * *(i) * * * After May 24, 1995,

refinancing transactions (as defined in§ 3500.2) shall comply with therequirements for post-rule accounts.* * * * *

Dated: August 27, 1996.Nicolas P. Retsinas,Assistant Secretary for Housing-FederalHousing Commissioner.[FR Doc. 96–22370 Filed 8–30–96; 8:45 am]BILLING CODE 4210–27–P


1 At times RESPA uses the term ‘‘lender’’ and atother times it uses the term ‘‘servicer.’’ A lendercreates a loan obligation, but may or may notservice the loan. Within this proposed rule, HUDuses the term ‘‘servicer’’ to include the lender whenthe lender performs the servicing function.

DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT

24 CFR Part 3500

[Docket No. FR–4079–P–01]

RIN 2502–AG75

Office of the Assistant Secretary forHousing-Federal HousingCommissioner Real Estate SettlementProcedures Act (Regulation X): EscrowAccounting Procedures

AGENCY: Office of the AssistantSecretary for Housing-Federal HousingCommissioner, HUD.ACTION: Proposed rule.

SUMMARY: This proposed rule addressesthree problems that have arisen inapplying HUD’s current escrowaccounting rule under the Real EstateSettlement Procedures Act (RESPA),proposes a minor additional change tothe RESPA rule, and provides publicnotice of certain technical clarificationsto the rule. This proposed rule includesseveral appendices, which in the finalrule are likely to be published as PublicGuidance Documents (rather thancodified appendices), in the interests ofregulatory streamlining. However, thesematerials are set forth in this proposedrule as appendices, for the convenienceof commenters during the reviewperiod.

The first problem addressed in thisrule involves the application ofrequirements respecting the method ofservicers’ disbursements from mortgageescrow accounts where the payee (i.e.,the entity to which escrow items areowed, such as a taxing jurisdiction)offers a choice of disbursements on anannual or installment basis. Because ofperceived ambiguities in the currentrule, there have been disparities inperformance among mortgage servicers.Some servicers switched to makingannual disbursements for escrow items,such as property taxes, where discountsfor these payments were available,while other servicers switched toinstallment disbursements for itemswhere installments were allowed. Thechoice of disbursement methods hasconsequences for borrowers, includingincreasing or decreasing the amountsrequired to be deposited into the escrowaccount at closing and during the life ofthe escrow account. The disbursementmethod may also have income taxramifications, depending on the timingof disbursements for deductible items.Because of these consequences, this ruleproposes several alternatives foraddressing this problem, including, asthe preferred option, offering the

borrower the choice of disbursementmethod.

The second problem involves caseswhere the servicer anticipates thatdisbursements for items such asproperty taxes will increasesubstantially in the second year of theescrow account. Because HUD’s currentescrow rule provides for calculatingescrow payments based on theprojection of escrow disbursements fora 12-month period, when escrow itemsincrease substantially after the initial12-month period, the result could bethat the servicer may require of theborrower a substantial increase inmonthly payments for the second year,not only to reflect the higherdisbursements, but to make up adeficiency or shortage in the escrowaccount. To avoid this type of surprisefor the borrower, who may not beprepared to make the higher payments,the rule proposes several solutions tothis problem, including, as a preferredoption, offering the borrower the choiceat closing of how the account is to becalculated.

A third problem that this ruleproposes to address, in the interest ofavoiding confusion, is the means ofdisclosure on the HUD–1 and HUD–1Asettlement forms of amounts requiredfor the escrow account. HUD is alsoproposing a minor additional change tothe RESPA rule and is clarifyingexisting regulations regarding mattersthat do not require substantivemodifications to the regulatorylanguage.DATES: Comment due date: November 4,1996.ADDRESSES: Interested persons areinvited to submit comments regardingthis proposed rule to the Rules DocketClerk, Office of General Counsel, Room10276, Department of Housing andUrban Development, 451 Seventh Street,SW, Washington, DC 20410–0500.Communications should refer to theabove docket number and title.Facsimile (FAX) comments are notacceptable. A copy of eachcommunication submitted will beavailable for public inspection andcopying between 7:30 a.m. and 5:30p.m. weekdays at the above address.FOR FURTHER INFORMATION CONTACT:David R. Williamson, Director, Office ofConsumer and Regulatory Affairs, Room5241, telephone 202–708–4560; or, forlegal questions, Richard S. Bennett,Attorney; Grant Mitchell, SeniorAttorney for RESPA; or Kenneth A.Markison, Assistant General Counsel forGSE/RESPA, Room 9262, telephone202–708–3137 (these are not toll-freetelephone numbers). For hearing- and

speech-impaired persons, thesetelephone numbers may be accessed viaTTY (text telephone) by calling theFederal Information Relay Service at 1–800–877–8339 (toll-free). The addressfor each of these persons is: Departmentof Housing and Urban Development,451 Seventh Street, SW, Washington,DC 20410–0500.


I. Background

Section 10 of the Real EstateSettlement Procedures Act of 1974(RESPA) (12 U.S.C. 2609) establishes thestatutory limits on the amounts thatmortgage servicers 1 may require aborrower to deposit into an escrowaccount if the servicer chooses toestablish one. (RESPA does not requirethe use of escrow accounts.) Section10(a)(1) prohibits a servicer, at the timethe escrow account is created, fromrequiring the borrower to makepayments to the escrow account thatexceed the maximum amountscalculated in accordance with thestatute. These maximum amounts arecalculated by analyzing how muchmoney will be needed to coverdisbursements for the mortgagedproperty, such as taxes and insurance,and to maintain a cushion no greaterthan one-sixth of the estimated totalannual disbursements from the account.Section 10(a)(2) prohibits the lender,over the rest of the life of the escrowaccount, from requiring the borrower tomake payments to the escrow accountthat exceed the amounts allowed underRESPA. The maximum monthly amountthat may be collected from the borroweris equal to one-twelfth of the totalannual escrow disbursements that thelender reasonably anticipates payingfrom that account during a year, plusthe amount necessary to maintain theone-sixth cushion. No provision ofSection 10 requires that the servicercollect the maximums allowable underthe statute; the servicer may alwayscollect less and is not required to collectany cushion at all.

Section 10 and section 6(g) of RESPA(12 U.S.C. 2605(g)) govern the timing ofdisbursements from escrow accounts. Inchoosing a disbursement date, section10 requires that the servicer follow‘‘normal lending practices of the lenderand local custom, provided that theselection of each such date constitutesprudent lending practice.’’ Section 6(g)


2 The choice of installment, rather than annual,disbursements often results in substantialreductions in up-front cash requirements for thebuyer. For example, if two equal installments couldbe paid 6 months apart instead of paying the entirebill on one of the installment dates, thenhomebuyers who close on their loans less than 6months before the date on which the entire billwould otherwise have been due could come tosettlement with 6 months less in tax deposits to theescrow account. This results from the accrued taxesbeing a half-year’s taxes less for those homebuyers.Assuming closings are evenly distributedthroughout the year, households with the option oftwo equal installment payments 6 months apart,will, on average, be able to reduce the average up-front cash required at settlement by 3-months’worth of taxes. In general, as the number ofinstallments grows, so does the average up-frontsavings.

requires servicers to ‘‘make paymentsfrom the escrow account for such taxes,insurance premiums, and other chargesin a timely manner as such paymentsbecome due.’’

On October 26, 1994 (59 FR 53890)(October 1994 rule), HUD published afinal rule implementing sections 6(g)and 10 of RESPA and changes to RESPAmade in section 942 of the NationalAffordable Housing Act (Pub. L. 101–625, approved November 28, 1990). Theeffective date of this rule was extendedto May 24, 1995, as a result of aFebruary 15, 1995, rulemaking (60 FR8812), which also modified and clarifiedthe October 1994 rule, because ofquestions on the rule. HUD issuedfurther clarifications and corrections onDecember 19, 1994 (50 FR 65442);March 1, 1995 (60 FR 11194); and May9, 1995 (60 FR 24734), and published anotice of software availability on April4, 1995 (60 FR 16985). Further, HUD’sRESPA regulations were streamlined onMarch 26, 1996 (61 FR 13232) to complywith the President’s regulatory reforminitiatives.

Today, HUD is proposing a ruleprimarily to address three problemsunder HUD’s existing escrowaccounting procedures. These problems,explained in greater detail below, aredesignated for purposes of discussionas:

1. Annual vs. InstallmentDisbursements;

2. Payment Shock; and3. Single-item Analysis with

Aggregate Adjustment.These problems were brought to

HUD’s attention by borrowers, membersof Congress, local government officials,and industry representatives.

This proposed rule is consistent withthree principles articulated by theSecretary in the preamble to the October1994 rule:

(1) Reduce the cost ofhomeownership, by ensuring that fundsare not held in escrow accounts inexcess of the amounts that are necessaryto pay expenses for the mortgagedproperty and allowed by law;

(2) Establish reasonable, uniformpractices for escrow accounting; and

(3) Provide servicers with clear,specific guidance on the requirements ofSection 10.

With respect to the first two identifiedproblems, HUD is proposing to revisethe escrow rules in ways that wouldgive borrowers more choices. For thesetwo problems, HUD is proposing torequire that disclosures be given toborrowers so that they can makeinformed choices as to their preferences.The proposal would require escrowaccounts to be maintained according to

those preferences. At the same time,HUD recognizes that providingborrowers this choice may imposeadditional burdens and costs onservicers, which are frequently passedon to borrowers. Thus, this proposedrule also highlights approaches thathave been proposed by industryrepresentatives. HUD seeks commentson all approaches and is also asking anumber of questions that are designed tohelp HUD make decisions amongalternatives for the final rule.

II. Annual vs. InstallmentDisbursements

A. Statement of ProblemThe first problem HUD is proposing to

address arises when a servicer isconfronted with the option of disbursingescrow items, such as taxes, either in anannual lump sum or in installmentsduring the year. In general, paymentsfrom an escrow account in installmentswork to the borrower’s benefit, because,on average, they result in lower up-frontpayments to establish the account (i.e.,lower closing costs).2 However,sometimes payees offer a discount to theborrower if disbursements are made onan annual basis. These discounts aremost commonly offered by taxingjurisdictions, which may offer adiscount for annual payments ofproperty taxes.

After publication of HUD’s October1994 rule (discussed below in thispreamble), many servicers who hadbeen disbursing escrow payments ininstallments switched to annualdisbursements where discounts wereavailable. There were manyconsequences of the switch that havebeen described to HUD, and otherconsequences that HUD speculates mayhave resulted.

Most of these actual or expectedconsequences would affect borrowers,and it is borrowers who have expressedthe greatest concern about this problem.After HUD issued the escrow rule, some

borrowers may have been required bytheir servicers to make up substantialshortages in their escrow accounts(generally in increased monthlypayments over a year), which arosewhen taxes were switched frominstallment disbursements to oneannual lump sum disbursement. Someborrowers with loans that wereswitched from installments to annualdisbursement may have faced financialhardship in meeting the higherpayments. Some borrowers may havebelieved that the outlay to make up theshortage created with the switch toannual disbursements simply was notworth the discount offered. Otherborrowers who were applying for loansmay have been unable to come up withthe cash required to close as a result ofthe escrow account being calculatedbased on annual disbursements insteadof installments.

In contrast, some borrowers whoseservicers switched from annual toinstallment disbursements may havepreferred to pay more at closing or tohave disbursements from an existingescrow account paid in annualdisbursements, in order to receive adiscount and thereby reduce the overallamount paid or to accelerate propertytax deductions on their income tax.Some of these borrowers may have losta significant portion of their propertytax deductions for the year in which theswitch was made and may have beenunhappy with that consequence.

Of course, although some borrowersmay have been adversely affected by achange in disbursement method, theremay have been others who benefited,perhaps unknowingly, from such achange. For example, a change frominstallment to annual disbursements totake advantage of a discount loweredthe total tax burden for manyhomeowners. Similarly, a change fromannual to installment disbursementsresulted in lower escrow payments and,possibly, refunds for manyhomeowners. HUD has not heard muchabout these positive effects. Finally, formany borrowers, HUD’s rulesapparently have not resulted in anychange to the disbursement method fortheir escrow accounts.

Some taxing jurisdictions may alsohave been adversely affected by achange in disbursement method. As aresult of the servicers changing fromannual to installment disbursements,some taxing jurisdictions may havefaced an unexpected temporary shortfallin receipts of property taxes. Othertaxing jurisdictions may have found thatservicers changed from installmentpayments to annual disbursements; thiscould have resulted in unexpected


3 The preamble to the October 1994 ruleexplained, ‘‘Unless there is a discount to theborrower for early payments, the regulation doesnot allow servicers to pay installment payments onan annual or other prepayment basis.’’ 59 FR 53893.

changes to receipts of property taxes orcould have led to shortfalls in incometax receipts as deductions increased forthe year the switch was made.

HUD recognizes that promulgatingnew rules that result in switchingaccounts from one disbursementmethod to another could again affectborrowers and taxing jurisdictions andis seeking a way to clear up the problemthat resulted from the prior rule whileminimizing any further disruption.

B. HUD’s Current RegulationsHUD’s regulation at 24 CFR

3500.17(k)(1) provides: ‘‘In calculatingthe disbursement date, the servicer shalluse a date on or before the earlier of thedeadline to take advantage of discounts,if available, or the deadline to avoid apenalty.’’ See also §§ 3500.17(b)(definition of ‘‘disbursement date’’),3500.17(c)(2) and (c)(3), and3500.17(d)(1)(i)(A) and (2)(i)(A). Somemortgage servicers have interpreted thisrule to require that a servicer, whenoffered an option of making adisbursement from the escrow accountin installments or in an annualdisbursement with a discount, choosethe lump sum annual disbursementwith a discount, no matter how smallthe discount is, even if the borrower andthe servicer would otherwise agree toforego the discount and have the escrowaccount computed for disbursements onan installment basis.

On the other hand, other servicershave interpreted HUD’s rule, in light ofpreamble language, to requireinstallments where available and allow,but not require, annual disbursement atthe servicer’s discretion where adiscount is offered for annualdisbursement.3 This approach is inkeeping with HUD’s intention that theregulations generally favor installmentpayments, because in many cases theyresult in lower up-front payments andlower average escrow balances for theborrower. HUD also sought for servicersto take advantage of discounts thatwould benefit borrowers.

In response to further questions onthis issue, HUD indicated in itsFebruary 1995 clarifications of the rulethat the rule’s focus had been to deal‘‘with a practice, previously engaged inby some servicers, of collecting andpaying a full-year’s taxes in advance,although they were billed on aninstallment basis.’’ 59 FR 8813. In thepreamble to a May 1995 rule, HUDstated that ‘‘servicers were permitted

(but not required) to makedisbursements on an annual basis if adiscount were available.’’ The preambleexplained:

[T]he Department received a number ofquestions regarding circumstances in whichthe payee offered an option of eitherinstallment payments or a one-time paymentwith a discount. The preamble to the October26, 1994, and February 15, 1995, rulesindicated that when a choice was available,servicers should make disbursements on aninstallment basis, rather than an annualbasis; however, servicers were permitted (butnot required) to make disbursements on anannual basis if a discount were available.Once the choice of payment basis is made,the disbursement date chosen for that basisdepends on discount and penalty dates.Section 3500.17(k) states that ‘‘[i]ncalculating the disbursement date, theservicer shall use a date on or before theearlier of the deadline to take advantage ofdiscounts, if available, or the deadline toavoid a penalty.’’ This provision is consistentwith the rule, which is designed to avoidexcessive upfront payments and balances inescrow accounts and, therefore, favorsinstallment payments, unless there arepenalties or discounts that make annualpayments advantageous for the consumer.Also, after settlement a servicer and borrowerare not prevented by this rule from mutuallyagreeing, on an individual case basis, to adifferent payment basis (installment orannual) or disbursement date.

60 FR 24734.HUD recognizes that the rule text and

the preamble language may have createdconfusion. Until such time as HUDpublishes a final rule on this subject,servicers should adhere to the followingapproach, consistent with HUD’s priorguidance: Where a payee offers theoption of installment disbursements ora discount for annual disbursements,the servicer should make disbursementson an installment basis, but may, at theservicer’s discretion (but is not requiredby RESPA to), make annualdisbursements, in order to takeadvantage of the discount for theborrower; HUD encourages (but does notrequire) servicers to follow thepreference of the borrower. Where thepayee offers the option of either annualdisbursements with no discount orinstallment payments, the servicer isrequired to make installment payments.

C. Possible Revisions to Regulations toAddress Problem

There are several rulemakingalternatives to address whether servicersare to make installment or annualdisbursements. These alternativespropose to distinguish between escrowaccounts for loans that settle on or afterthe effective date of a final rule andescrow accounts for loans that settle or

settled before the effective date of a finalrule.

Each alternative proposes that once adisbursement method has been selectedin accordance with the requirements ofthe alternative, servicers would beprohibited from switching disbursementmethods without the borrower’sconsent. This would mean that evenwhere one servicer acquires servicingfrom another servicer, the secondservicer would be required to apply thesame disbursement method as the firstservicer, as long as that option is offeredby the payee, unless the borrowerconsents to changing disbursementmethods. The reason for this approachis that many loans shifted disbursementdates as a result of the 1994 rule. HUDseeks to develop an approach with theminimum negative impact forborrowers, servicers, and third parties,such as taxing jurisdictions. HUD isconcerned that, if the approach adoptedresults in a large number of additionalshifts in the way escrows are disbursed,HUD will create new problems whileattempting to solve old ones. HUDbelieves the approach proposed, ifultimately adopted, would be theapproach that would minimizedisruption.

If borrowers could be involuntarilyswitched from annual disbursements toinstallment disbursements as a result ofa transfer of servicing or unilateralchange by the servicer, some borrowerswould face consequences they did notdesire. A switch could result in asurplus that a servicer would berequired to return to a borrower, butcould also reduce the amount of theborrower’s tax deduction for escrowitems, such as property taxes, in theyear of the switch. If a borrower couldbe involuntarily switched frominstallment disbursements to annualdisbursements as a result of a transfer ofservicing or unilateral change by theservicer, the transfer or change couldincrease the tax deductions for escrowitems such as property taxes in the yearof the switch, but could result inshortages for many borrowers.

The approach of prohibiting a servicerfrom switching disbursement methodswithout the borrower’s consent,including requiring a servicer to use thedisbursement method used by theformer servicer when there is a transferof servicing, does not mean that theborrower would have to consent to atransfer of servicing or would have vetoauthority over such a transfer. Transferof servicing is governed by section 6 ofRESPA and regulations at 24 CFR3500.21. However, this approach wouldmean that a borrower would have toconsent to a change in the disbursement


4 If the servicer is given a choice betweeninstallment or annual disbursements for otherescrow items (such as property or hazardinsurance), HUD’s rule would require the servicerto make disbursements by a date that avoids apenalty, but the servicer would otherwise be free tomake disbursements on such date as complies withnormal lending practice of the lender and localcustom, provided that the selection of each suchdate constitutes prudent lending practice.

method, including a change proposedby a subsequent servicer. HUD seekscomments on whether this policy wouldadversely affect the value, andefficiency of the transfer, of servicingrights.

This proposed rule contains the mainsubstance of proposed rule language toimplement the various alternativesdiscussed. Additional conformingamendments to the rule, appropriate towhichever alternative is ultimatelyadopted, would be required.

Alternative 1: Consumer Choice

New loans. For escrow accounts onany loan closed on or after the effectivedate of a final rule, servicers would berequired to give borrowers the choice ofmaking disbursements of property taxeson an installment or on an annual basis,when those options are offered by thetaxing jurisdiction. HUD’s proposal doesnot currently address the choicebetween installments and annualdisbursements for other escrow items,because the question has only beenraised to HUD in the context of propertytaxes; however, HUD would consideraddressing other escrow items,depending on comments received.4

This alternative would requireservicers, at some time beforesettlement, to provide a disclosure form(in the format of Appendix F) toborrowers whose property taxes will bepaid from an escrow account and whosetaxing jurisdictions offer the choicebetween disbursements on aninstallment or an annual basis. The formindicates some of the advantages anddisadvantages to the borrower ofinstallment and annual disbursementsand asks the borrower to make a choicebetween the two methods. If theborrower does not make a choice, theservicer will be required to makeinstallment disbursements of propertytaxes.

This alternative also provides thatonce the consumer has made a choice(or installments are required because theconsumer has failed to make a choice),the servicer and subsequent servicersare prohibited from changing themethod of disbursement for propertytaxes, as long as the taxing jurisdictionoffers a choice, without the borrower’sprior written consent.

Existing loans. For loans that settledprior to the effective date of a final rule,the servicer and subsequent servicerswould be prohibited from changing themethod of disbursement for propertytaxes without the borrower’s priorwritten consent where the taxingjurisdiction offers a choice betweeninstallments and annual disbursements.In addition, no later than the firstescrow analysis for such escrowaccounts performed after the effectivedate of a final rule, servicers would berequired to offer borrowers, in writing,an opportunity to switch from onemethod of disbursement for propertytaxes to another.

This approach provides the greatestflexibility to the borrower. However, itmay impose higher costs on servicers;servicers will likely need two differentdisbursement systems to reflect thedisbursement preferences of borrowers.

Alternative 2: Servicer FlexibilityUnder this alternative, HUD would

revise the rule to provide that a servicermust make disbursements by a date thatavoids a penalty, but the servicer isotherwise free to make disbursementson such date as complies with normallending practice of the lender and localcustom, provided that the selection ofeach such date constitutes prudentlending practice. Under this alternative,once the servicer has made a choice ofthe disbursement method, the servicerand subsequent servicers are prohibitedfrom changing the method ofdisbursement, as long as a choicecontinues to exist in the taxingjurisdiction, without the borrower’sprior written consent.

The benefit of this alternative is thatit is the least-intrusive regulatoryapproach for HUD to take. In addition,it provides flexibility to servicers. Thisalternative would also leave servicersfree to accommodate borrowers with aparticular preference, as long as theborrower’s preference is in accordancewith normal lending practice of thelender and local custom and constitutesprudent lending practice. Thedisadvantage of this alternative is that itwould not guarantee that servicerswould accommodate the preferences ofindividual borrowers and, therefore,provides less choice for borrowers.

Alternative 3: Keep, But Clarify, CurrentRequirements

Under this alternative, HUD wouldclear up any inconsistencies betweenthe regulatory text and the earlierpreamble language that have createdconfusion, as discussed above in thispreamble. The rule would be revised toprovide that, generally, servicers must

make disbursements from escrowaccounts on an installment basis, wherepayees offer that option as an alternativeto annual disbursements. Where a payeeoffers the option of installmentdisbursements or a discount for annualdisbursements, the servicer may, at theservicer’s discretion (but would not berequired as a result of RESPA to), makeannual disbursements, in order to takeadvantage of the discount for theborrower. Where the payee offers theoption of annual disbursements with nodiscount or installment payments, theservicer would be required to makeinstallment payments. Where a payeeoffers the option of installmentdisbursements or a discount for annualdisbursements, the rule would providethat HUD encourages (but does notrequire) servicers to follow thepreference of the borrower on whetherto make disbursements on an annual orinstallment basis.

In addition, the servicer andsubsequent servicers are prohibitedfrom changing the method ofdisbursement, as long as a choicecontinues to exist in the taxingjurisdiction, without the borrower’sprior written consent.

The advantage of this option is that,like Alternative 2 (discussed above inthis preamble), it provides flexibility toservicers. It would also allow servicersto accommodate borrowers with aparticular preference. The disadvantageof this alternative is that it would notguarantee that servicers wouldaccommodate the preferences ofindividual borrowers, providing lesschoice for borrowers.

D. Questions for CommentersWhile the description of each

alternative discussed under the heading‘‘Annual vs. Installment Disbursements’’in this preamble, indicates some of thepossible advantages and disadvantages,there could be other alternatives, as wellas unanticipated negative consequencesfor the industry, borrowers, taxingauthorities, or others. HUD seekscomments from the public on which, ifany, of these alternative approachesshould result from this rulemaking, orwhether other permissible approachesunder RESPA would better serve theinterests of the public and the intent ofthe statute. HUD also invitescommenters to comment on HUD’sproposed regulatory language and tosubmit specific regulatory language toimplement their proposals.

HUD is particularly interested incomments on the following issues:

1. How are servicers currentlyaddressing the problem of setting theappropriate disbursement date when


5 The increase in the monthly payment can bebroken down into two components. Any time anescrow account disbursement increases, it will havethe effect of raising the monthly borrower escrowpayment by approximately one-twelfth of thatincrease. In addition, the projection for the comingyear shows what the target balance (accruals plusthe cushion) should be at the beginning of thecoming year. To the extent that expecteddisbursements in the second year exceed what theywere in the first, the beginning target balance for the

second year may be in excess of the actual balanceat the end of the first year. If so, then there is ashortage to be made up as well. If the 12-monthapproach is taken to eliminate the shortage, thenmonthly payments will also rise by approximatelyone-twelfth of the shortage. If a cushion is used, thepayment increases will be slightly higher, until thecushion is built up.

6 HUD regulations at 24 CFR 3500.17(f)(1) (i) and(ii) provide that, aside from conducting an escrowaccount analysis when an escrow account isestablished and at completion of the escrowaccount computation year, a servicer may conductan escrow account analysis at other times. Theescrow account analyses conducted at other timesresult in short-year statements.

given a choice of annual or installmentdisbursements?

2. What would be the impact ofchanging the requirements on particularservicers operating under existingRESPA regulations, particularly withrespect to any changes in therequirements for loans settled before theeffective date of a final rule?

3. What are the discounts obtained byservicers for borrowers? How large arethe discounts? When mustdisbursements be made in order toreceive the discounts?

4. What would be the impact onservicers of requiring them to provideborrowers with a choice? Should this belimited to a one-time choice at closingor should the borrower be free to switchdisbursement methods during the life ofthe loan, and, if so, how often and underwhat circumstances?

5. What are the relative benefits anddisadvantages of an approach that treatsloans that settle on or after the effectivedate of a final rule differently from loansthat have settled before the effectivedate of a final rule—e.g., minimizing theneed for a servicer to switch from onemethod to another for existing loans, butpotentially requiring servicers to usedifferent disbursement methods fordifferent borrowers within a singletaxing authority?

6. Should the size of an availablediscount matter and, if so, how? ShouldHUD provide that once the discountmeets a certain percentage or otherthreshold that: (a) Annualdisbursements with a discount must beused; (b) it becomes the borrower’schoice whether to make disbursementsin that manner; or (c) it becomes theservicer’s choice whether to makedisbursements in that manner? Shouldthe threshold that determines whetherto take the discount be tied to aparticular market rate that varies overtime, e.g., some percentage above orbelow the discount rate, the rate on 3-month Treasury Bills, etc.? Should a‘‘reasonable servicer’’ standard beapplied, i.e., allowing a servicer tochoose whether to take advantage of thediscount if a reasonable person wouldmake such a decision with his or herown money?

7. If an approach is adopted in whichthe borrower’s preference forinstallments or annual disbursements iscontrolling, when should the servicergive the borrower the disclosure? If theborrower is required to designate whichoption is preferred before loan approval,how can the borrower be protected frompressure to select an option that ismerely the lender’s preference and notnecessarily in the borrower’s bestinterest? Because the method selected

could affect escrow payments due atclosing and each month thereafter, whattiming would be necessary for theservicer to prepare the closingdocuments and perform related work?How will the option selected affectunderwriting?

8. If an approach is adopted in whichthe borrower’s preference forinstallments or annual disbursements iscontrolling, should HUD prescribe adisclosure format as proposed? Is theinformation HUD proposes to provideon the disclosure format appropriate forproviding the borrower with a fair andinformed choice?

9. If an approach is adopted in whichthe borrower’s preference forinstallments or annual disbursements iscontrolling, what period of time isneeded for the servicer to change thedisbursement method?

10. The issue of annual or installmentdisbursements most often arises in thecontext of property taxes. If an approachis adopted in which the borrower’spreference for installments or annualdisbursements is controlling, shouldthis approach apply only todisbursements for property taxes, asproposed, or should it extend to otherescrow items for which a choicebetween installments and annualdisbursements may be offered? Whatshould be the rule for other escrowitems when a choice is offered?

11. What rules should apply to loansthat settle before the effective date of afinal rule? What rules should apply toloans that settle after the effective dateof the final rule, once those loans havesettled? What rules should apply whenthere is a transfer of servicing?

III. Payment Shock

A. Statement of Problem

Another problem HUD is proposing toaddress arises when disbursements forescrow items such as property taxdisbursements are expected by theservicer to be much higher in the secondyear of the escrow account than in thefirst year. As a result, the borrower willbe faced with a substantial increase inthe monthly escrow payment during thesecond year and, possibly, a lump sumpayment to eliminate a deficiency fromthe account.5 For purposes of this rule,

a substantial increase is defined as anincrease of 50 percent or more in themonthly escrow payment between thepayment under the initial escrowaccounting and the payment in thesecond year of the escrow account. Asubstantial increase in property taxes inthe second year often occurs in cases ofnew construction. In many jurisdictions,the taxes the locality charges for the firstyear are based on the assessed value ofthe unimproved property, while for thesecond year the taxes are based on theimproved value. A substantial increasein payments may also occur where a taxdisbursement that would normallyappear on the projection for the comingyear is paid prior to the borrower’s firstregular payment, i.e., these regularlyoccurring taxes do not appear in theprojection. Reassessments after aproperty is sold may also cause asubstantial second year increase. Whilethe servicer could alert the borrower atclosing that an increase will occur, if theservicer does not, the borrower may beunpleasantly surprised by the increase.

This situation results in severalproblems. Disclosures received atclosing show low payment amountsthroughout the first year when, in fact,the escrow payment will substantiallyincrease for the second year, or evenduring the first year if a short yearstatement is issued at the point whenthe higher disbursement shows up inthe 12-month projection.6 Someborrowers may be unable to meet theincreased escrow payments because theshortage will raise payments even more.A customer relations issue may becreated for servicers who have toexplain to borrowers why the paymentis increased so much.

These concerns have come largelyfrom industry representatives who haveresponded to numerous borrowerinquiries and complaints aboutincreases in escrow payments to reflecthigher disbursements and make upshortages. Mortgage servicers haveindicated that they would like to avoidany payment change in subsequentyears by collecting more money in thefirst year of servicing.


7 HUD’s current regulations address the issue ofestimating disbursement amounts for the 12-monthcomputation year:

To conduct an escrow account analysis, theservicer shall estimate the amount of escrowaccount items to be disbursed. If the servicer knowsthe charge for an escrow item in the nextcomputation year, then the servicer shall use thatamount in estimating disbursement amounts. If thecharge is unknown to the servicer, the servicer maybase the estimate on the preceding year’s charge asmodified by an amount not exceeding the mostrecent year’s change in the national Consumer PriceIndex for all urban consumers (CPI, all items). Incases of unassessed new construction, the servicermay base an estimate on the assessment ofcomparable residential property in the market area.

24 CFR 3500.17(c)(7).8 Surpluses generated by voluntary borrower

prepayments (frequently of principal, interest, andescrow account amounts) do not constitute aviolation of the escrow account limits, even if theyremain in the account in the next escrow accountcomputation year. 60 FR 8813.

9 Whether disbursements from escrow accountswill be made on an annual or installment basis andwhether there is a discount for annual disbursementwill affect the numbers to be filled in and,potentially, the number of calculations on theEscrow Accounting Method Selection Format.

10 The Mortgage Bankers Association indicated toHUD that it favors this alternative incorrespondence to HUD dated April 10, 1996.

B. Analysis Under HUD’s CurrentRegulations

Consistent with Section 10 of RESPA,HUD regulations specify the maximumamount that a servicer may legallyrequire borrowers to deposit in escrowaccounts. HUD regulations prescribethat in conducting an escrow accountanalysis, the servicer considers only thedisbursements that are expected to comedue for a 12-month period. See, e.g.,§§ 3500.17(b) (definition of ‘‘escrowaccount computation year’’) and3500.17(c) (limits on payments toescrow accounts). While the servicercan take into account expected changesto disbursements over the 12-monthperiod,7 even if the servicer knows thatpayments from an escrow account willsubstantially increase at a time morethan 12 months in the future, theservicer cannot, when preparing theinitial escrow account statement,calculate the borrower’s payments tocover the expected increases. However,HUD’s existing regulations(3500.17(f)(1)(ii)) allow the servicer toperform short year statements. Theregulations also allow borrowers tomake additional escrow paymentsvoluntarily to avoid a shortage in thefollowing year. HUD’s existingregulations provide that if the borrowermakes such additional payments, theymust normally be returned to theborrower if they result in a surplus thenext time the escrow account analysis isperformed. See 59 FR 53893 (voluntarilyescrowed funds not excluded from thetrial running balance calculations).8 Ifthe additional payments do not result ina surplus the next time the escrowaccount analysis is performed (i.e.,where disbursements will substantiallyincrease), the additional payments donot have to be returned to the borrower.

C. Possible Revisions to Regulations toAddress Problem

There are many possible ways torespond to the Payment Shock problemidentified. Just as in the case of theAnnual vs. Installment Disbursementsproblem discussed above in thispreamble, the Secretary believes thatproviding the consumer withinformation to make an informedchoice, and allowing the consumer’schoice to control, is likely the bestapproach for addressing this problem.Set forth below are three alternatives,some of which contain options withinthe alternatives. This proposed rulecontains the main substance ofproposed regulatory language toimplement the various alternativesdiscussed. Additional conformingamendments to the regulations wouldbe required, consistent with whicheveralternative is ultimately adopted.

Alternative 1: Consumer Choice

Under this alternative, when theservicer expects that the bills paid outof the escrow account will increasesubstantially after the first year, theservicer would provide to the borrower,at some time prior to closing, a writtendisclosure in the format of appendix Gto this proposed rule or a similar format.The borrower would make a choice fromseveral accounting options for his or heraccount on a format that would indicate,under each option, the amount due atclosing; the monthly escrow paymentsin the first, second, and third years; andthe corresponding surpluses anticipatedat the end of the first year.9 Theborrower would therefore have theopportunity to make a voluntary choiceto limit payment changes in the secondyear of the escrow account. As would beexplained on the disclosure format, ifthe borrower did not make a choice, theaccounting method would ‘‘default’’ tothe method prescribed under the currentregulations (which may result insubstantially increased payments in thesecond year). Once an escrowaccounting method is selected by choiceor default, that method may not bechanged without the consent of theborrower, even if the servicing rights aretransferred to another servicer.

Under this alternative, the followingaccounting methods (illustrated in ‘‘ThePayment Shock Problem,’’ Appendix H–1 to this proposed rule) would be

presented to the borrower for his or herselection:

Method A. Analysis of the accountusing the accounting method requiredunder the current rule, which results ina shortage at the end of the first year andhigher payments in the second year.

Method B. Analysis of the accountusing an accounting method that has thefollowing characteristics:—Requires an initial deposit of $0 into

the escrow account at closing;—Requires a monthly payment in the

first year equal to one-twelfth of theestimated total annual disbursementsfrom the escrow account for thesecond year;

—Causes surpluses or smaller shortagesat the end of the first year, whichcauses escrow payments to increase inthe second year less than underMethod A or not at all.Method C. Analysis of the account

using an alternative accountingmethod 10 that has the followingcharacteristics:—Requires an initial deposit into the

escrow account at closing greater thanthe initial deposits required underMethod B;

—Requires the same monthly paymentduring the first year as under MethodB, which is greater than underMethod A;

—Generates month-end balances suchthat the lowest month-end balance forthe first year equals one-sixth of theestimated total annual disbursementsfor the second year (the initial depositis not considered in finding thelowest month-end balance);

—Requires an initial deposit intoescrow at closing greater than theinitial deposits required underMethod B;

—Generates even larger balances at theend of the first year than underMethod B, eliminating shortages andincreasing surpluses that must bereturned to the borrower;

—Causes no increase in escrowpayments in the second year.Note: If the consumer selects Methods B or

C, the amounts held in escrow could begreater than allowed under Section 10. Inorder to permit these options, the Secretarywould invoke his exemption authority undersection 19(a) of RESPA, 12 U.S.C. 2617.

Alternative 2: Make No Change

Under this alternative, even where theservicer expects that the bills paid outof the escrow account will increasesubstantially after the first year, thecurrent requirements for escrow


analysis would continue to apply. Thisalternative would not specificallyprevent the problems of shortages at theend of the first year of the escrowaccount and substantial escrow paymentincreases in the second year as a resultof large increases in escrowdisbursements during the second year ofservicing. However, under the existingrule, servicers may disclose the problemto borrowers, and borrowers may makevoluntary overpayments to escrowaccounts. Servicers may also calculateshort-year statements. Thus, under theexisting rule, some methods areavailable to alleviate the payment shockproblem, although they are not required.

Alternative 3: Mandate First YearOverpayment

Under this alternative, when theservicer expects that the bills paid outof the escrow account will increasesubstantially after the first year, HUDwould require the servicer to calculatethe escrow account under a procedurethat has the characteristics describedunder Alternative 1, Method C,described above (illustrated in ‘‘ThePayment Shock Problem,’’ Appendix H–2 to this proposed rule). This approachwould result in requiring amounts heldin escrow to be greater than allowedunder Section 10. The Secretary could,however, mandate the use of this escrowaccounting method pursuant to hisexemption authority under section 19(a)of RESPA, 12 U.S.C. 2617.

D. Questions for Commenters

HUD seeks comments from the publicon which, if any, of these alternativeapproaches should result from thisrulemaking, or whether otherpermissible approaches would betterserve the interests of the public and theintent of the statute. Other possiblealternatives on which HUD wouldwelcome comment include:

1. As variations on Alternative 2,either:

(A) Require servicers to disclose toborrowers that it is anticipated that theywill have a substantial payment increasein the second year, so borrowers will beless surprised when such an increaseoccurs, but do not require servicers toindicate specifically to borrowersmethods of avoiding the shortage; or

(B) Require servicers to disclose toborrowers that it is anticipated that theywill have a substantial payment increasein the second year and to informborrowers of the amount of the expectedshortage at the end of the first year andof the opportunity to make additionalpayments to escrow ahead of scheduleto avoid Payment Shock.

2. As a variation on Alternative 1,Method C, calculate the cushion as one-sixth of the estimated annualdisbursements for the first year, insteadof 2 months of the escrow payments forthe first year.

3. For each new account for which itis anticipated that there will be asubstantial payment increase in thesecond year for one or more escrowitems, allow the servicer, with theconsent of the borrower, the option ofcalculating the escrow payments on a24-month basis. This would allow theservicer to look ahead to the second yearand estimate the payment that would bedue, thereby mitigating the deficiency orshortage after the first year, leaving asmaller deficiency or shortage after thesecond year. (Using an escrow accountperiod of more than one year hasprecedent. See the treatment of floodinsurance and water purification escrowfunds in § 3500.17(c)(9).) Under thisoption, since the amounts held inescrow would be greater than allowedunder Section 10, it would be necessaryfor the Secretary to invoke hisexemption authority under section 19(a)of RESPA, 12 U.S.C. 2617.

HUD invites commenters to submitspecific regulatory language toimplement their proposals and tocomment on HUD’s proposed regulatorylanguage. HUD is also interested incomments on the following issues:

1. How are servicers dealing withpayment increases in the second yearunder the current rule?

2. How should mortgage servicersdetermine whether bills paid out ofescrow accounts are expected toincrease substantially after the firstyear? Is it appropriate to define asubstantial increase as an increase of 50percent or more in the monthly escrowpayment between the payment underthe initial escrow accounting and thepayment in the second year of theescrow account, and is it appropriate forthis threshold to trigger additionalrequirements? What method should beused in calculating the expectedpayments?

3. What, if any, impact would there bein changing the requirements regardingpayment increases on servicersoperating under existing RESPAregulations?

4. What, if any, impact would there beon servicers if they are required toprovide borrowers a one-time choice atclosing? What would be the impact onservicers of requiring them to provideborrowers a choice at other times? Whatwould be the burden in having differentprocedures for different borrowers?

5. If the consumer choice option isadopted, what should be the timing of

the servicer’s inquiry to the borrowerand the borrower’s response? If theborrower is required to designate beforeloan approval which option he or sheprefers, would the borrower bepressured into selecting an option thatmay not be in the borrower’s bestinterest? Because the method selectedcould affect escrow payments due atclosing and each month thereafter, whattiming would be sufficient for theclosing agent to prepare the closingdocuments and perform related work?How would the option selected affectunderwriting?

6. If the consumer choice option isadopted, should HUD prescribe adisclosure format as proposed? Is theinformation HUD is proposing toprovide on the disclosure formatappropriate?

7. Should there be limits on theborrower’s opportunity to switch escrowaccounting methods? How frequentlyshould the borrower be allowed tochange methods and under whatcircumstances? Should the borrower beallowed to make only a one-time choiceat closing?

8. Should any alternatives be offeredto borrowers whose escrow paymentsare not expected to increasesubstantially after the first year?

IV. Single-Item Analysis WithAggregate Adjustment Problem

A. Statement of Problem and HUD’sCurrent Regulations

The October 1994 escrow ruleestablished a uniform nationwidestandard accounting method known asaggregate accounting. This replaced thecommon method of accounting in theindustry—treating each escrow accountitem as a separate or single item. Theamounts on the HUD–1 in the 1000series historically were shown in asingle-item mode—that is, the reserveamount for each separate escrowaccount item was listed.

When the October 1994 rule wasbeing developed, Federal Reserve Boardstaff indicated that it needed a single-item amount for private mortgageinsurance (PMI) reserves in order tomake annual percentage rate (APR)calculations under the Truth In LendingAct. For this reason, and in an effort toavoid altering the basic format of theHUD–1 or HUD–1A in the October 1994rule, the Department required that anaggregate adjustment (either zero or anegative number) be made after eachindividual item was listed in the 1000series, so that the reserve amount forescrow account items conformed to theaggregate accounting method. Before theOctober 1994 escrow rule, Section L of


the HUD–1 and HUD–1A only showedpositive numbers, that is, payments thatwere being allocated to varioussettlement costs. After publication of theOctober 1994 final rule, the Departmentreceived complaints that the itemizationof the reserve amounts with an aggregateadjustment was confusing and theinformation was not useful toborrowers. Settlement agents and othersindicated that individual itemization ofreserves in the 1000 series imposed anadditional paperwork and explanationburden, when the only relevant numberfor calculations is the aggregate depositamount.

B. Possible Revisions to AddressProblem

This rule proposes a method ofcorrecting the problem: HUD would nolonger require the single-item listing ofescrow deposits on the HUD–1 or HUD–1A. The rule would create a new optionin the instructions for the 1000 series ofthese forms to reflect the aggregatedeposit. As proposed, the settlementagent could also continue to itemize the1000-series reserves, at the settlementagent’s discretion. If the charges are notitemized, an asterisk (*) would have tobe placed next to each item in the 1000series for which a reserve is taken. Theamount collected would be described as‘‘Aggregate Escrow Deposit for ItemsMarked (*) Above’’ on a line at the endof the 1000 series. In the discussion‘‘Clarifications of Existing Rule’’ in PartV of this preamble, HUD has made clearthat entries on the Good Faith Estimatemay be based on single-item analysis,with a maximum 1-month cushion. Therule is proposed to be amended to makeclear that the use of the estimatingmethod remains available after the endof the phase-in period (October 24,1997).

Federal Reserve Board staff hasindicated that it generally concurs withthis approach, inasmuch as the PMInumber for APR calculations isotherwise available. HUD seekscomments from the public on thisproposal, as well as other approachesthat would be permissible under RESPAand might better serve the interests ofthe public and the intent of the statute.HUD also invites commenters to submitspecific regulatory language toimplement their proposals.

V. Additional Proposed ChangeHUD proposes to add information to

the Good Faith Estimate format to helpmake purchasers of pre-1978 residentialdwellings aware that, pursuant to 42U.S.C. 4852d (implemented by HUD inregulations published on March 6, 1996,61 FR 9064), they have the right to

arrange for a timely paint inspection orrisk assessment for the presence of lead-based paint or lead-based paint hazardsbefore becoming obligated under a salescontract. Generally, a prospectivepurchaser has 10 days to conduct sucha lead-based paint evaluation of theproperty. A prospective purchaser,however, may waive in writing theopportunity to conduct this evaluation.Therefore, HUD proposes to addlanguage to the Good Faith Estimateformat (appendix C) to reference a lead-based paint inspection or riskassessment and to add a reference tosuch inspections or assessments in theinstructions for completing the 1300series of the HUD–1 or HUD–1A. HUDanticipates that a more detailedexplanation of purchasers’ rights in thisregard will be contained in the nextrevision of the HUD Settlement Costsbooklet.

VI. Clarifications to Existing RuleThe following paragraphs discuss

clarifications of the escrow rule that donot require substantive modifications tolanguage in the existing provisions.These clarifications are in response toquestions that have been raised aboutthe escrow rule.

(a) Question: Does the rule permit acushion to be taken on private mortgageinsurance (PMI) premium payments?

Answer: Yes. Nothing in the ruledistinguishes these payments from anyother payments into the escrow accountand, thus, a cushion may be based onsuch payments. The question arisesbecause Federal HousingAdministration (FHA) program rules doprohibit a cushion on the FHA MortgageInsurance Premium (MIP), but the FHAlimitation is applicable only to the FHAmortgage insurance.

(b) Question: During the phase-inperiod under the escrow rule foraccounts existing prior to May 24, 1995,there is an alternative approachpermitted for disclosing potentialescrow charges under § 3500.8(c)(2),involving the use of single-item analysiswith a 1-month cushion. In the finalrule of February 15, 1995 (60 FR 8812),the clarifications indicated that for GoodFaith Estimate purposes, as well as forthe HUD–1 or HUD–1A, a single-itemanalysis with a maximum 1-monthcushion is acceptable. See 60 FR at 8812and 8813. Is the single-item analysiswith a 1-month-cushion approachacceptable on the Good Faith Estimate,even when the aggregate approach issubsequently used on the HUD–1 orHUD–1A, and will this be true after thephase-in period ends?

Answer: Yes. The good faith estimateis an estimate and HUD does not impose

strict methodologies for deliveringinformation that frequently isunavailable or difficult to obtain. Aslong as the estimates are developed ingood faith, the use of single-itemanalysis with a maximum 1-monthcushion to establish a range or amountfor Good Faith Estimate purposes willbe acceptable. The Good Faith Estimateinstructions in § 3500.7(c)(2) areproposed to be amended to clarify thatthis method of estimation is availableafter the phase-in period has passed.

(c) Question: Appendix E assumesthat the same cushion applies to allescrow items. However, lenders mayprefer to use, for instance, a 2-monthcushion for hazard insurance and a 1-month cushion for property taxes. Isthat permissible?

Answer: Yes. The rule does notrequire that the cushion be the samefraction of annual anticipateddisbursements for each escrow item,provided, of course, that no cushionexceeds the limit of 2 months’disbursements.

(d) Question: When filling out theHUD–1, it is necessary to calculate theaggregate adjustment so that the amountthe borrower has to pay into the escrowaccount at closing will not exceed theRESPA limits (which are defined interms of aggregate accounting, whereasthe rest of the 1000 series of the HUD–1 is reported using single-itemaccounting). The aggregate adjustment isthe difference between the depositcalculated under the aggregateaccounting method and the sum of thedeposits that would be calculated usingsingle-item accounting. Must the samecushion be used when making theaggregate calculations as was used whenmaking the single-item calculations?

Answer: Yes. So, for example, if a 1-month cushion were taken for taxes anda 2-month cushion were taken forinsurance in making the single-itementries, then the cushion in making theaggregate calculations would be the sumof one-twelfth of the projected taxes andone-sixth of the projected insurance.

Other Matters

Paperwork Reduction Act Statement

The proposed information collectionrequirements contained in § 3500.17and Appendices A and C of this rulewill be submitted to the Office ofManagement and Budget (OMB) forreview in accordance with thePaperwork Reduction Act of 1995 (44U.S.C. 3501–3520).

(a) In accordance with 5 CFR1320.5(a)(1)(iv), the Department issetting forth the following concerningthe proposed collection of information:


(1) Title of the information collectionproposal: Escrow account taxdisbursement method disclosure;escrow account tax calculationprocedure disclosure; and changes tolines pertaining to lead-based paint riskassessments or inspections in settlementstatements and good faith estimates.

(2) Summary of the collection ofinformation: The escrow account taxdisbursement method disclosure willallow the consumer to choose whethertaxes are paid on an annual, asemiannual, or other basis. The escrowaccount tax calculation proceduredisclosure allows consumers to choosethe procedure that is used to calculatethe escrow account, when it isanticipated that the second-year chargesfor an item will be substantially higherthan the first-year charges.

(3) Description of the need for theinformation and its proposed use: (i)Escrow account tax disbursementmethod disclosure. The Real EstateSettlement Procedures Act (RESPA) at12 U.S.C. 2609 provides for escrowaccounts. The implementing regulationsat 24 CFR 3500.17(k) provide that theservicer shall use as the disbursementdate a date on or before the earlier of thedeadline to take advantage of discounts,if available, or the deadline to avoid apenalty. Consequently, some lenderschanged disbursement methods andsome borrowers were adversely affectedby the change. The proposed rulesuggests three alternatives in addressingthis problem. One alternative willrequire an escrow tax disbursementmethod disclosure which will allow the

consumer to choose whether taxes arepaid on annual, semi-annual or otherbasis. The other two alternatives do notrequire a new disclosure.

(ii) Escrow account tax calculationprocedure disclosure. Another problemthe rule addresses is where the chargesfor an item are expected to besubstantially higher the second yearthan in the first year. The increasedcharges may result in payment shock aswell as a deficiency in the escrowaccount and substantially increasedescrow payments the following year. Forexample, in the case of newconstruction, the real estate tax amountmay be estimated on the unimprovedvalue of the property. Frequently,borrowers are then required to pay taxesbased on the improved value of theproperty.

Current regulations limit the amountthat the lender may require the borrowerto deposit in an escrow account atsettlement and the amount the lendermay require the borrower to maintain inan account. The regulations at 24 CFR3500.17 prescribe the method fordetermining these amounts. Theproposed rule offers three alternativesolutions. One alternative requires adisclosure that allows the consumer tochoose the procedure for calculatingescrow payments. Another alternativewould require lenders to calculate theescrow under a new procedure which isalso a consumer choice under the firstalternative. Both of these alternativeswould require lenders to makeadjustments to escrow calculation

software. The third alternative does notrequire an additional burden.

(iii) Changes for lead-based paint. Inaddition, information is proposed to beadded in the Good Faith Estimate formatto make purchasers of pre-1978residential dwellings aware that,pursuant to 42 U.S.C. 4852d, they havethe right to arrange for a lead-basedpaint inspection or risk assessment.

(4) Description of the likelyrespondents, including the estimatednumber of likely respondents, andproposed frequency of response to thecollection of information: The 2,000respondents for both disclosures aremortgage lenders/servicers. (i) It isestimated that respondents must give aone-time disclosure to 34.9 millionborrowers who establish or maintainmortgage loan escrow accounts. (ii) It isestimated that respondents must give aone-time disclosure to 1 millionborrowers who are identified as havinga substantially increased tax charge thesecond year of the loan. (iii) Settlementstatements and good faith estimatescurrently provide for inclusion of costsassociated for lead-based paintinspection costs, but not as a discreteline item. The number of respondentswill not change as a result of this rule.

(5) Estimate of the total reporting andrecordkeeping burden that will resultfrom the collection of information:(There is no additional burden expectedto result from specifying a discrete linefor lead-based paint risk assessment orinspection costs in the settlementstatements (appendix A) or good faithestimate format (appendix C).)

REPORTING BURDEN

Reference Number of re-spondents

Frequencyof response

Est. ave. re-sponse time

(hrs.)

Annual burdenhrs.

Disbursement Disclosure ..................................................................................... 34.9 mill ............ 1 0.0833 2,908,332Method C Calculation .......................................................................................... 2,000 ................ 1 10 20,000Calculation and Disclosure (Borrower Choice) ................................................... 1.0 mill .............. 1 0.3333 333,000

RECORDKEEPING BURDEN

No. recordkeepersHrs. perrecord-keeper

Annual bur-den hours

Disbursement Disclosure: 2,000 ...................................................................................................................................... 1,454 2,908,000Calculation Disclosure: 2,000 .......................................................................................................................................... 42 84,000

Total Burden Hours ............................................................................................................................................... .................... 6,253,332

(b) In accordance with 5 CFR1320.8(d)(1), the Department issoliciting comments from members ofthe public and affected agencies

concerning the proposed collection ofinformation to:

(1) Evaluate whether the proposedcollection of information is necessaryfor the proper performance of the

functions of the agency, includingwhether the information will havepractical utility;


(2) Evaluate the accuracy of theagency’s estimate of the burden of theproposed collection of information;

(3) Enhance the quality, utility, andclarity of the information to becollected; and

(4) Minimize the burden of thecollection of information on those whoare to respond; including through theuse of appropriate automated collectiontechniques or other forms of informationtechnology, e.g., permitting electronicsubmission of responses.

Interested persons are invited tosubmit comments regarding theinformation collection requirements inthis proposal. Under the provisions of 5CFR part 1320, OMB is required to makea decision concerning this collection ofinformation between 30 and 60 daysafter today’s publication date. Therefore,a comment on the informationcollection requirements is best assuredof having its full effect if OMB receivesthe comment within 30 days of today’spublication. This time frame does notaffect the deadline for comments to theagency on the proposed rule, however.Comments must refer to the proposal byname and docket number (FR–4079) andmust be sent to:Joseph F. Lackey, Jr., HUD Desk Officer,

Office of Management and Budget,New Executive Office Building,Washington, DC 20503

andReports Liaison Officer, Office of the

Assistant Secretary for Housing,Federal Housing Commissioner,Department of Housing and UrbanDevelopment, 451—7th Street, SW,Room 9116, Washington, DC 20410Status: Extension of currently

approved collection (2502–0501).

Executive Order 12866

The Office of Management and Budgetreviewed this proposed rule underExecutive Order 12866, RegulatoryPlanning and Review. Any changesmade to the rule as a result of thatreview are clearly identified in thedocket file, which is available for publicinspection at the Office of the RulesDocket Clerk, Office of General Counsel,Room 10276, Department of Housingand Urban Development, 451 SeventhStreet, SW, Washington, DC 20410–0500.

Regulatory Flexibility Act

The Secretary, in accordance with theRegulatory Flexibility Act (5 U.S.C.605(b)), has reviewed this rule beforepublication and by approving it certifiesthat this proposed rule does not have asignificant economic impact on a

substantial number of small entities.There are no anticompetitivediscriminatory aspects of this proposedrule with regard to small entities, norare there any unusual procedures thatwould need to be complied with bysmall entities. The requirements ofRESPA must be uniformly adhered to byall lenders and servicers. To the extentthat small entities are affected by any ofthe provisions in the proposed rule, theimpact is expected to be relativelyinsignificant and will be reviewed indeveloping the final rule.

However, this proposed rule describespossible alternative requirements andseeks comments to help the Departmentmake a final decision regarding thesealternatives. Although a complete andthorough analysis of all the possiblepermutations in the rule is impractical,the proposed rule provides sufficientinformation for the public to provide theDepartment with informed commentsand, to the extent feasible, otherwiseaddresses areas that would be includedin a regulatory flexibility analysis.

Environmental Impact

A Finding of No Significant Impactwith respect to the environment hasbeen made in accordance with HUDregulations in 24 CFR part 50 thatimplement section 102(2)(C) of theNational Environmental Policy Act of1969 (42 U.S.C. 4332). The finding isavailable for public inspection duringregular business hours in the Office ofthe General Counsel, Rules DocketClerk, room 10276, 451 Seventh Street,SW, Washington, DC 20410.

Executive Order 12612, Federalism

The General Counsel, as theDesignated Official under section 6(a) ofExecutive Order 12612, Federalism, hasdetermined that the policies containedin this proposed rule will not havesubstantial direct effects on States ortheir political subdivisions, or therelationship between the FederalGovernment and the States, or on thedistribution of power andresponsibilities among the variouslevels of government. As a result, therule is not subject to review under theOrder. Promulgation of this ruleexpands coverage of the applicableregulatory requirements pursuant tostatutory direction.

Executive Order 12606, The Family

The General Counsel, as theDesignated Official under ExecutiveOrder 12606, The Family, hasdetermined that this proposed rule doesnot have potential for significant impact

on family formation, maintenance, andgeneral well-being, and, thus, is notsubject to review under the order. Nosignificant change in existing HUDpolicies or programs will result frompromulgation of this rule, as thosepolicies and programs relate to familyconcerns.


Consumer protection, Condominiums,Housing, Mortgages, Mortgage servicing,Reporting and Recordkeepingrequirements.

For the reasons stated in thepreamble, part 3500 of Title 24 of theCode of Federal Regulations is proposedto be amended as follows.

PART 3500—REAL ESTATESETTLEMENT PROCEDURES ACT


Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C.3535(d).

2. Appendix A is amended in SectionL under the text heading ‘‘Line ItemInstructions’’ as follows:

a. By revising the paragraph beginningwith the phrase ‘‘Lines 1301 and 1302’’;

b. In the paragraph beginning with thephrase ‘‘Lines 1303–1305’’, by removingthe number ‘‘1303’’ and adding in itsplace the number ‘‘1304’’; and

c. By adding a new paragraph after theparagraph beginning with the phrase‘‘Lines 1301 and 1302’’, to read asfollows:

Appendix A to Part 3500—Instructionsfor Completing HUD–1 and HUD–1ASettlement Statements; Sample HUD–1and HUD–1A Statements

* * * * *Lines 1301 and 1302 are used for fees for

survey, pest inspection, radon inspection, orother similar inspections.

Line 1303 is used for lead-based painthazard risk assessments, lead-based paintinspections, or other lead-based paintevaluations.

* * * * *

3. Appendix C, Sample Form of GoodFaith Estimate, is amended in the chartby adding a new row, with threecolumns, after the row with the phrase‘‘Pest inspection......’’ in the firstcolumn, to read as follows:

Appendix C to Part 3500—SampleForm of Good Faith Estimate

* * * * *


Item 2 HUD–1 or HUD–1A Amount or range

* * * * * * *Lead-based paint inspection ........................................................................................................................ 1303 $

* * * * * * *

2 Footnote remains unchanged.

Annual Vs. Installment Disbursements[Items 4–5]

4. Section 3500.17 is amended byrevising the definition of ‘‘disbursementdate’’ in paragraph (b) and by revisingparagraphs (c)(2) and (3), to read asfollows:

§ 3500.17 Escrow accounts.* * * * *

(b) * * *Disbursement date means the date on

which the servicer actually pays anescrow item from the escrow account.* * * * *

(c) * * *(2) Escrow analysis at creation of

escrow account. Before establishing anescrow account, the servicer shallconduct an escrow account analysis todetermine the amount the borrowershall deposit into the escrow account,subject to the limitations of paragraph(c)(1)(i) of this section and the amountof the borrower’s periodic paymentsinto the escrow account, subject to thelimitations of paragraph (c)(1)(ii) of thissection. In conducting the escrowaccount analysis, the servicer shallestimate the disbursement amountsaccording to paragraph (c)(7) of thissection. Pursuant to paragraph (k) of thissection, the servicer shall use a date onor before the deadline to avoid a penaltyas the disbursement date for the escrowitem. Upon completing the initialescrow account analysis, the servicershall prepare and deliver an initialescrow account statement to theborrower, as set forth in paragraph (g) ofthis section. The servicer shall use theescrow account analysis to determinewhether a surplus, shortage, ordeficiency exists since settlement andshall make any adjustments to theaccount pursuant to paragraph (f) of thissection.

(3) Subsequent escrow accountanalyses. For each escrow account, theservicer shall conduct an escrowaccount analysis at the completion ofthe escrow account computation year todetermine the borrower’s monthlyescrow account payments for the nextcomputation year, subject to thelimitations of paragraph (c)(1)(ii) of thissection. In conducting the escrowaccount analysis, the servicer shall

estimate the disbursement amountsaccording to paragraph (c)(7) of thissection. Pursuant to paragraph (k) of thissection, the servicer shall use a date onor before the deadline to avoid a penaltyas the disbursement date for the escrowitem. The servicer shall use the escrowaccount analysis to determine whether asurplus, shortage, or deficiency existsand shall make any adjustments to theaccount pursuant to paragraph (f) of thissection. Upon completing an escrowaccount analysis, the servicer shallprepare and submit an annual escrowaccount statement to the borrower, asset forth in paragraph (i) of this section.* * * * *

5. Section 3500.17 is further amendedand, if applicable, Appendix F is addedto part 3500 in accordance with one ofthe following alternatives:

a. Under ALTERNATIVE 1 (ConsumerChoice): By revising paragraph (k) andadding Appendix F to part 3500, to readas follows; or

b. Under ALTERNATIVE 2 (ServicerFlexibility): By revising paragraph (k), toread as follows; or

c. Under ALTERNATIVE 3 (Keep, ButClarify, Current Requirements): Byrevising paragraph (k), to read asfollows:

§ 3500.17 Escrow accounts.

* * * * *

[Alternative 1 (Consumer Choice)]

(k) Timely payments. (1) If the termsof any federally related mortgage loanrequire the borrower to make paymentsto an escrow account, the servicer shallpay the disbursements in a timelymanner, that is, on or before thedeadline to avoid a penalty, as long asthe borrower’s payment is not more than30 days overdue.

(2) The servicer shall advance fundsto make disbursements in a timelymanner, as long as the borrower’spayment is not more than 30 daysoverdue. Upon advancing funds to paya disbursement, the servicer may seekrepayment from the borrower for thedeficiency pursuant to paragraph (f) ofthis section.

(3) For those borrowers whoseproperty taxes will be paid from anescrow account where the applicable

taxing jurisdiction offers the choicebetween disbursements on aninstallment or an annual basis, at sometime before closing the servicer shallprovide to the borrower an EscrowAccount Property Tax DisbursementAlternatives Selection sheet in theformat of Appendix F to this part andshall provide the borrower with anopportunity to make a selection.

(4) For a loan that settles on or after[INSERT EFFECTIVE DATE OF FINALRULE], when the taxing jurisdictionoffers the servicer the option of makingdisbursements for property taxes on aninstallment or an annual basis, theservicer must make disbursements forproperty taxes on an installment basis,unless the borrower has indicated onthe Escrow Account Property TaxDisbursement Alternatives Selectionsheet that disbursements for propertytaxes are to be made on an annual basis.The servicer and subsequent servicersare prohibited from changing themethod of disbursement for propertytaxes from the method the borrowerselected on the Escrow AccountProperty Tax Disbursement AlternativesSelection sheet, without the borrower’sprior written consent.

(5) For a loan that has settled prior to[INSERT EFFECTIVE DATE OF FINALRULE], when the taxing jurisdictionoffers the servicer the option of makingdisbursements for property taxes on aninstallment or an annual basis, theservicer and subsequent servicers areprohibited from changing the method ofdisbursement for property taxes fromthe method that was used on [INSERTDATE OF PUBLICATION OF FINALRULE] or the date of settlement(whichever is later), without theborrower’s prior written consent, as longas such method of disbursementcomplies with normal lending practiceof the lender and local custom andconstitutes prudent lending practice. Inaddition, no later than the first escrowaccount analysis performed after[INSERT EFFECTIVE DATE OF FINALRULE], a servicer shall offer a borrower,in writing, the opportunity to switchfrom one disbursement method forproperty taxes to the other.

(6) If the payee for escrow items otherthan property taxes offers the servicer


the option of making disbursements onan installment or an annual basis, theservicer must make disbursements by adate that avoids a penalty, but mayotherwise make disbursements on eitheran installment or an annual basis as theservicer prefers, as long as such methodof disbursement complies with normallending practice of the lender and localcustom and constitutes prudent lendingpractice.* * * * *

Appendix F—Escrow Account PropertyTax Disbursement AlternativesSelection Format

Your property taxes will be disbursed outof your escrow account by your loan servicer.Your jurisdiction provides the option ofpaying the property taxes in installmentpayments spread out over the year, or in oneannual lump sum payment.

You are being offered alternative methodsfor these property taxes to be paid. They aredescribed below.

As shown by the choices below, if youchoose installment payments, the amountyou have to deposit into your escrow accountat closing may be less. On the other hand, ifyou choose annual payments, the totalamount of property taxes you will pay maybe less if your taxing jurisdiction provides adiscount for annual payments. Thealternative you choose could also affect theamount of your tax deductions during thefirst year of the loan, if you itemize—youmay wish to consult a tax advisor.

If you do not make a selection,disbursements will be made on aninstallment basis.

ESCROW ACCOUNT PROPERTY TAXDISBURSEMENT ALTERNATIVES

Install-mentpay-

ments

Annualpay-

ments

Property tax bill for next12 months.

llll llll

Due at closing .............. llll llll

Monthly escrow pay-ment first year.

llll llll

I prefer the indicated option (check one andsign below)

b Installment Paymentsb Annual Payments

lllllllllllllllllllll

Borrower’s Signature

[Or Alternative 2 (Servicer Flexibility)]


(2) The servicer shall advance fundsto make disbursements in a timelymanner as long as the borrower’spayment is not more than 30 daysoverdue. Upon advancing funds to paya disbursement, the servicer may seekrepayment from the borrower for thedeficiency, pursuant to paragraph (f) ofthis section.

(3) If the payee for escrow items(including property taxes) offers theservicer the option of makingdisbursements on an installment basisor a lump sum annual basis, the servicermust make disbursements by a date thatavoids a penalty, but may otherwisemake disbursements on either aninstallment basis or a lump sum annualbasis as the servicer prefers, as long assuch method of disbursement complieswith normal lending practice of thelender and local custom and constitutesprudent lending practice.

(4) The servicer and subsequentservicers are prohibited from changingthe method of disbursement as long asa choice continues to exist, without theborrower’s prior written consent.* * * * *

[Or Alternative 3 (Keep, But Clarify,Current Requirements)]


(2) The servicer shall advance fundsto make disbursements in a timelymanner as long as the borrower’spayment is not more than 30 daysoverdue. Upon advancing funds to paya disbursement, the servicer may seekrepayment from the borrower for thedeficiency pursuant to paragraph (f) ofthis section.

(3) If the payee for escrow items(including property taxes) offers theservicer the option of makingdisbursements on an installment or alump sum annual basis, the servicershall make disbursements by a date thatavoids a penalty. If such payee does notoffer a discount for disbursements on alump sum annual basis, the servicermust make disbursements on aninstallment basis. If, however, the payeeoffers a discount for disbursements on alump sum annual basis, the servicermay, at the servicer’s discretion (but isnot required by RESPA to), make lumpsum annual disbursements in order totake advantage of the discount for theborrower, as long as such method ofdisbursement selected by the servicer

complies with normal lending practiceof the lender and local custom andconstitutes prudent lending practice.Where the payee offers the option ofinstallment disbursements or a discountfor lump sum annual disbursements,HUD encourages, but does not require,the servicer to follow the preference ofthe borrower as to whether to makedisbursements on a lump sum annual orinstallment basis, if such preference isknown to the servicer.

(4) The servicer and subsequentservicers for an escrow account areprohibited from changing the method ofdisbursement as long as a choice ofdisbursement methods exists, withoutthe borrower’s prior written consent.* * * * *

Payment Shock [Item 6]6. Except with respect to Alternative

2 in this amendatory instruction,§ 3500.17 is further amended and, ifapplicable, appendices are added to part3500, in accordance with eitherAlternative 1 or Alternative 3, asfollows:

a. Under ALTERNATIVE 1 (ConsumerChoice): By adding, in alphabeticalorder, a definition of ‘‘Substantialincrease’’; by revising the introductorytext of paragraph (c); by revisingparagraph (d); by adding newparagraphs to be designated later; andby adding Appendices G and H–1, toread as follows; or

b. ALTERNATIVE 2 (Make NoChange); or

c. Under ALTERNATIVE 3 (MandateFirst Year Overpayment): By adding, inalphabetical order, in paragraph (b), adefinition of ‘‘Substantial increase’’; byrevising the introductory text ofparagraph (c); by revising paragraph (d);by adding new paragraphs, to bedesignated later; and by addingAppendix H–2, to read as follows:

§ 3500.17 Escrow accounts.* * * * *

Alternative 1 (Consumer Choice)(b) * * *Substantial increase means an

increase of 50 percent or more in themonthly escrow payment in the secondyear of an escrow account is projectedas compared to the payment under theinitial escrow accounting.* * * * *

(c) Limits on payments to escrowaccounts; acceptable accountingmethods to determine limits. Except asotherwise provided in paragraph (l) ofthis section, the following applies:* * * * *

(d) Methods of escrow accountanalysis. Paragraph (c) of this section


prescribes acceptable accountingmethods except as otherwise providedin paragraph (l) of this section. Thefollowing sets forth the steps servicersshall use to determine whether their useof an acceptable accounting methodconforms with the limitations inparagraph (c)(1) of this section. Thesteps set forth in this section derivemaximum limits. Servicers may useaccounting procedures that result inlower target balances. In particular,servicers may use a cushion less thanthe permissible cushion or no cushionat all. This section does not require theuse of a cushion.* * * * *

(l) Rules of special applicabilitywhen servicer expects a substantialincrease in bills paid out of escrowaccount after the first year for loans thatsettle on or after [INSERT EFFECTIVEDATE OF FINAL RULE].

(X) Opportunity for Selection ofEscrow Account Method. When aservicer expects that there will be asubstantial increase in the bills paid outof an escrow account after the first year,at some time before closing, the servicershall provide to the borrower an EscrowAccounting Method Selection sheet inthe format of Appendix G to this partand shall provide the borrower with anopportunity to make a selection. Theservicer must perform the escrowaccounting in accordance with themethod selected by the borrower. If theborrower does not make a selection, theservicer must perform the escrowaccounting in accordance with MethodA.

(XX) No Change in EscrowAccounting Method without BorrowerConsent. (1) Once an escrow accountingmethod is determined by the process inparagraph (X) of this section, theservicer and subsequent servicers areprohibited from changing the escrowaccounting method unless eitherparagraph (l)(XX) (i) or (ii) applies:

(i) The borrower provides his or herprior written consent; or

(ii) The servicer no longer projectsthat there will be a substantial increasein bills paid out of the escrow accountafter the 12-month period covered in theprojection for the coming year.

(2) If the servicer changes escrowaccount methods in reliance onparagraph (l)(XX)(ii) of this section,

the servicer may switch only to theescrow accounting procedure inparagraph (d) of this section.

(XXX) Limits on payments to escrowaccounts; acceptable accountingmethods to determine limits whenservicer expects substantial increase inbills paid out of escrow account afterthe first year for loans which settle onor after [INSERT EFFECTIVE DATE OFRULE]. When the servicer expects asubstantial increase in bills paid out ofthe escrow account after the first year,the servicer may deviate from therequirements of paragraph (c) of thissection to the extent necessary tocomply with paragraph (XXXX) of thissection.

(XXXX) Methods of escrow accountanalysis for the initial statement whenthe servicer expects a substantialincrease in bills paid out of the escrowaccount after the first year. When theservicer expects a substantial increase inthe bills paid out of the escrow accountafter the first year, the servicer shall usethe following steps in producing theprojection for the initial statement:

(1) Method A. When a servicer usesMethod A in conducting the initialescrow account analysis, paragraph (d)of this section applies.

(2) Method B. When a servicer usesMethod B in conducting the initialescrow account analysis, the targetbalances may not exceed the balancescomputed according to the followingarithmetic operations: The servicerprojects a trial balance for the accountas a whole over the next computationyear (a trial running balance) with abeginning balance of 0. The servicermay include as disbursements onlythose amounts that are expected to bepaid in the 12-month period covered bythe projection. In doing so, the servicerassumes that it will make estimateddisbursements on or before the deadlineto avoid a penalty. The servicer does notuse pre-accrual on the disbursementdates. The servicer also assumes that theborrower will make monthly paymentsequal to one-twelfth of the estimatedtotal annual escrow accountdisbursements for the second year.

(3) Method C. When a servicer usesMethod C in conducting the initialescrow account analysis, the targetbalances may not exceed the balancescomputed according to the followingarithmetic operations:

(i) The servicer first projects a trialbalance for the account as a whole overthe next computation year (a trialrunning balance). The servicer mayinclude as disbursements only thoseamounts that are expected to be paid inthe 12-month period covered by theprojection. In doing so, the servicerassumes that it will make estimateddisbursements on or before the deadlineto avoid a penalty. The servicer does notuse pre-accrual on these disbursementdates. The servicer also assumes that theborrower will make monthly paymentsequal to one-twelfth of the estimatedtotal annual escrow accountdisbursements for the second year.

(ii) The servicer then examines themonthly trial balances and adds to theinitial deposit an amount just sufficientto bring the lowest monthly trial balance(not considering the initial deposit) tozero, and adjusts all other monthlybalances and the initial depositaccordingly.

(iii) The servicer then adds to theinitial deposit the permissible cushion.The cushion is one-sixth of theestimated total annual escrow accountdisbursements for the second year or alesser amount specified by State law orthe mortgage document.

(4) The steps set forth in thisparagraph (XXXX) derive maximumlimits. Servicers may use accountingprocedures that result in lower targetbalances. In particular, servicers mayuse a cushion less than the permissiblecushion or no cushion at all. Thisparagraph (XXXX) does not require theuse of a cushion.* * * * *

Appendix G—Sample EscrowAccounting Method Selection Format

The bills paid out of your escrow accountare expected to increase substantially afterthe first year. Under normal escrow practices,your monthly escrow payment in the secondyear could be much higher than in the first,both to pay the larger bills and to make upfor a shortage at the end of the first year. (SeeMethod A.) You may voluntarily choose tomake higher payments during the first yearto reduce or eliminate the monthly paymentincrease in the second year. (See Methods Bor C.) You are being offered alternativeescrow payment schedules. They aredescribed below. If you do not make aselection, Method A will be used.

ESCROW ACCOUNT ALTERNATIVES

Method A Method B Method C

Due at closing ................................................................................................................................................ lllll lllll lllll

Monthly escrow payment first year ................................................................................................................ lllll lllll lllll

Estimated surplus refunded at end of first year ............................................................................................. lllll lllll lllll

Estimated monthly escrow payment second year ......................................................................................... lllll lllll lllll


ESCROW ACCOUNT ALTERNATIVES—Continued

Method A Method B Method C

Estimated monthly escrow payment third year .............................................................................................. lllll lllll lllll

I prefer the indicated method (check one andsign below)

A b

B b

C b

lllllllllllllllllllll

Borrower’s Signature

Appendix H–1—The Payment ShockProblem

Instructions and Sample MathematicalCalculations for Completing EscrowAccounting Method Selection Format

Assumptions

Disbursements

Year 1$720 for insurance—disbursed in April$288 for property taxes—disbursed in

November

Year 2$720 for insurance—disbursed in April$2,880 for property taxes—disbursed in

NovemberFirst Payment: June 15

Method A[Demonstrates calculation for completingMethod A of Escrow Accounting MethodSelection Format (Appendix G).]

Assumption: Cushion selected by servicerequals one-sixth of estimated total annualdisbursements.

Step 1.—Projection for Year 1See 24 CFR 3500.17(k) for instructions and

Appendix E to Part 3500 for samplecalculation (example below uses aggregateanalysis).

Year 1 Pay-ment Disburs Bal-

ance

Initial deposit: 252Jun ................. 84 0 336Jul .................. 84 0 420Aug ................ 84 0 504Sep ................ 84 0 588Oct ................. 84 0 672Nov ................ 84 288 468Dec ................ 84 0 552Jan ................. 84 0 636Feb ................ 84 0 720Mar ................ 84 0 804Apr ................. 84 720 168May ................ 84 0 252

Step 2.—Projection for Year 2


ance

Starting balance: 1680Jun ................. 300 0 1980Jul .................. 300 0 2280Aug ................ 300 0 2580


ance

Sep ................ 300 0 2880Oct ................. 300 0 3180Nov ................ 300 2880 600Dec ................ 300 0 900Jan ................. 300 0 1200Feb ................ 300 0 1500Mar ................ 300 0 1800Apr ................. 300 720 1380May ................ 300 0 1680

Shortage (or surplus) = Desired startingbalance—Actual starting balance

= 1680¥252= 1428

Additional Monthly Escrow Payment =Shortage/12

= 1428/12= 119

Monthly escrow payment = Shortage/12 + Disbursements/12

= 119 + 300= 419

Step 3.—Projection for Year 3Same as year 2. Since there is no shortage

or surplus, the monthly payment is $300per month.

Method A Summary To Appear onDisclosureDue at closing = $252Monthly escrow payment first year = $84/

monthEstimated surplus refunded at end of first

year = $0Estimated monthly escrow payment second

year = $419Estimated monthly escrow payment third

year = $300

Method B[Demonstrates calculation for completingMethod B of Escrow Accounting MethodSelection Format (Appendix G).]

Assumption: On the initial statement, theinitial deposit equals $0 and the monthlydeposit equals 1⁄12 of second year’s estimatedtotal annual disbursements. Any subsequentanalysis uses the escrow accountingtechnique in 24 CFR 3500.17(c)(3).



ance

Initial deposit: 0Jun ................. 300 0 300Jul .................. 300 0 600Aug ................ 300 0 900Sep ................ 300 0 1200Oct ................. 300 0 1500Nov ................ 300 288 1512Dec ................ 300 0 1812Jan ................. 300 0 2112Feb ................ 300 0 2412


ance

Mar ................ 300 0 2712Apr ................. 300 720 2292May ................ 300 0 2592


Projection same as for Method A.Shortage/Surplus = Desired starting

balance ¥ Actual balance= 1680–2592= ¥912 (912 surplus)This $912 surplus is refunded to borrower

at end of Year 1. Thus, the borrower startsYear 2 with the desired starting balance of1680 and the monthly payment is $300.


Same as year 2. Since there is no shortageor surplus, the monthly payment is $300 permonth.

Method B Summary To Appear on Disclosure

Due at closing = $0Monthly escrow payment first year = $300/




year = $300

Method C

[Demonstrates calculation for completingMethod C of Escrow Accounting MethodSelection Format (Appendix G).]

Assumption: On the initial statement, thecushion selected by servicer equals 1⁄6 ofestimated total annual disbursements for thesecond year and the Monthly deposit equals1⁄12 of estimated total annual disbursementsfor the second year. Any subsequent analysisuses the escrow accounting technique in 24CFR 3500.17(c)(3).



ance

Initial deposit: 300Jan ................. 300 0 600Feb ................ 300 0 900Mar ................ 300 0 1200Apr ................. 300 0 1500May ................ 300 0 1800Jun ................. 300 288 1812Jul .................. 300 0 2112Aug ................ 300 0 2412Sep ................ 300 0 2712Oct ................. 300 0 3012Nov ................ 300 720 2592Dec ................ 300 0 2892



Projection same as for methods A and B.Shortage/Surplus = Desired starting

balance ¥ Actual balance= 1680–2892= ¥1212 (1212 surplus)This $1212 surplus is refunded to borrower

at end of Year 1. Thus, the borrower startsYear 2 with the desired starting balance of$1680 and the monthly payment is $300.



Method C Summary To Appear on Disclosure

Due at closing = $300Monthly escrow payment first year = $300/




year = $300

Comparative Illustrations

1. The escrow account methods for theexample shown in the text, with insurancedisbursed in the eleventh month and taxesdisbursed in the sixth month of the escrowcycle, are shown below:

Methods

A B C

Due at closing ... 252 0 300Monthly escrow

payment firstyear ................ 84 300 300

Estimated sur-plus refundedat end of firstyear ................ 0 912 1212

Estimatedmonthly es-crow paymentsecond year ... 419 300 300

Estimatedmonthly es-crow paymentthird year ........ 300 300 300

2. The following set of options shows theresulting values if, as before, insurance weredisbursed in the eleventh month of theescrow cycle, but taxes were disbursed in thefirst rather than the sixth month of theescrow cycle. Note how payments change asthe month in which the taxes are disbursedchanges and all other factors remainconstant.

Methods

A B C



Methods

A B C




3. The final set of options shows theresulting values if, as before, insurance weredisbursed in the eleventh month of theescrow cycle, but taxes were disbursed in thelast month of the escrow cycle.

Methods

A B C






[or Alternative 3 (Mandate First YearOverpayment)]

(b) * * *Substantial increase means an

increase of 50 percent or more in themonthly escrow payment in the secondyear of an escrow account is projectedas compared to the payment under theinitial escrow accounting.* * * * *

(c) Limits on payments to escrowaccounts; acceptable accountingmethods to determine limits. Except asprovided in paragraph (l) of thissection, the following applies:* * * * *

(d) Methods of escrow accountanalysis. Paragraph (c) of this sectionprescribes acceptable accountingmethods except as otherwise providedin paragraph (l) of this section. Thefollowing sets forth the steps servicersshall use to determine whether their useof an acceptable accounting methodconforms with the limitations inparagraph (c)(1) of this section. Thesteps set forth in this section derivemaximum limits. Servicers may use

accounting procedures that result inlower target balances. In particular,servicers may use a cushion less thanthe permissible cushion or no cushionat all. This section does not require theuse of a cushion.* * * * *

(l) Rules of special applicabilitywhere servicer expects substantialincrease in bills paid out of escrowaccount after the first year for loanswhich settle on or after [INSERTEFFECTIVE DATE OF FINAL RULE].

(X) Limits on payments to escrowaccounts; acceptable accountingmethods to determine limits whenservicer expects substantial increase inbills paid out of escrow account afterthe first year for loans which settle onor after [INSERT EFFECTIVE DATE OFFINAL RULE]. When the servicerexpects a substantial increase in billspaid out of escrow account after the firstyear, the servicer may deviate from therequirements of paragraph (c) of thissection to the extent necessary tocomply with paragraph (XX) of thissection.

(XX) Methods of escrow accountanalysis for the initial statement whenthe servicer expects a substantialincrease in the bills paid out of theescrow account after the first year.When the servicer expects a substantialincrease in the bills paid out of theescrow account after the first year, theservicer shall use the following steps inproducing the projection for the initialstatement:

(1) When a servicer uses this methodof escrow accounting in conducting theinitial escrow account analysis, thetarget balances may not exceed thebalances computed according to thefollowing arithmetic operations:

(i) The servicer first projects a trialbalance for the account as a whole overthe next computation year (a trialrunning balance). The servicer mayinclude as disbursements only thoseamounts that are expected to be paid inthe 12-month period covered by theprojection. In doing so, the servicerassumes that it will make estimateddisbursements on or before the deadlineto avoid a penalty. The servicer does notuse pre-accrual on these disbursementdates. The servicer also assumes that theborrower will make monthly paymentsequal to one-twelfth of the estimatedtotal annual escrow accountdisbursements for the second year.

(ii) The servicer then examines themonthly trial balances and adds to theinitial deposit an amount just sufficientto bring the lowest monthly trial balance(not considering the initial deposit) tozero, and adjusts all other monthly


balances and the initial depositaccordingly.

(iii) The servicer then adds to theinitial deposit the permissible cushion.The cushion is one-sixth of theestimated total annual escrow accountdisbursements for the second year or alesser amount specified by State law orthe mortgage document.

(2) The steps set forth in thisparagraph (XX) derive maximum limits.Servicers may use accountingprocedures that result in lower targetbalances. In particular, servicers mayuse a cushion less than the permissiblecushion or no cushion at all. Thisparagraph (XX) does not require the useof a cushion.* * * * *

Appendix H–2

The Payment Shock ProblemInstructions and Sample MathematicalCalculations for Alternative EscrowAccounting Method

Assumptions

Disbursements:

Year 1$720 for insurance—disbursed in April$288 for property taxes—disbursed in

November

Year 2$720 for insurance—disbursed in April$2,880 for property taxes—disbursed in

NovemberFirst Payment: June 15

Assumption: On the initial statement, thecushion selected by servicer equals 1⁄6 ofestimated total annual disbursements for thesecond year and the Monthly deposit equals1⁄12 of estimated total annual disbursementsfor the second year. Any subsequent analysisuses the escrow accounting technique in 24CFR 3500.17(c)(3).



ance

Initial deposit ............ ............ 300Jan ................. 300 0 600Feb ................ 300 0 900Mar ................ 300 0 1200Apr ................. 300 0 1500May ................ 300 0 1800Jun ................. 300 288 1812Jul .................. 300 0 2112Aug ................ 300 0 2412Sep ................ 300 0 2712Oct ................. 300 0 3012Nov ................ 300 720 2592Dec ................ 300 0 2892



ance

Starting balance: ............ ............ 1680


ance

Jun ................. 300 0 1980Jul .................. 300 0 2280Aug ................ 300 0 2580Sep ................ 300 0 2880Oct ................. 300 0 3180Nov ................ 300 2880 600Dec ................ 300 0 900Jan ................. 300 0 1200Feb ................ 300 0 1500Mar ................ 300 0 1800Apr ................. 300 720 1380May ................ 300 0 1680

Shortage/Surplus = Desired startingbalance¥Actual balance

= 1680¥2892= ¥1212 (1212 surplus)This $1212 surplus is refunded to borrower

at end of Year 1. Thus, the borrower startsYear 2 with the desired starting balance of$1680 and the monthly payment is $300.



Single-Item Analysis With AggregateAdjustment Problem [Items 7–9]

7. Section 3500.7 is amended byrevising paragraph (c)(2), to read asfollows:

§ 3500.7 Good Faith Estimate.

* * * * *(c) * * *(2) The borrower will normally pay or

incur at or before settlement, basedupon common practice in the locality ofthe mortgaged property. Each suchestimate must be made in good faith andbear a reasonable relationship to thecharge a borrower is likely to berequired to pay at settlement and mustbe based upon experience in the localityof the mortgaged property. Reserves tobe deposited with the lenders for the1000 series in the HUD–1 and HUD–1Amay be estimated using a 1-monthsingle item amount for each item. Foreach charge for which the lenderrequires a particular settlement serviceprovider to be used, the lender shallmake its estimate based upon thelender’s knowledge of the amountscharged by such provider.

8. Section 3500.8 is amended byrevising paragraph (c), to read asfollows:

§ 3500.8 Use of HUD–1 and HUD–1Asettlement statements.

* * * * *(c) Aggregate Accounting At

Settlement. Servicers may chooseOption 1 or Option 2 of this paragraph:

(1) Option 1. The servicer may choosethe method in either paragraph (c)(1)(i)or (ii) of this section:

(i) After computing individualdeposits in the 1000 series using single-item accounting, the servicer shall makean adjustment based on aggregateaccounting. This adjustment equals thedifference in the deposit required underaggregate accounting and the sum of thedeposits required under single-itemaccounting, with both sets ofcalculations using the same cushion.The computation steps for bothaccounting methods are set out in§ 3500.17(d). The adjustment willalways be a negative number or zero(–0–). The settlement agent shall enterthe aggregate adjustment amount on aline at the end of the 1000 series of theHUD–1 or HUD–1A statement.

(ii) The settlement agent may initiallycalculate the 1000-series deposits for theHUD–1 and HUD–1A settlementstatement using single-item analysiswith a maximum 1-month cushion(unless the mortgage loan documentsindicate a smaller amount). In theescrow account analysis conductedwithin 45 days of settlement, however,the servicer shall adjust the escrowaccount to reflect the aggregateaccounting balance. Appendix A to thispart contains instructions forcompleting the HUD–1 or HUD–1Asettlement statements using single itemanalysis with an aggregate adjustmentand the alternative process during thephase-in period. Appendix E to this partillustrates the arithmetic steps foraggregate analysis.

(2) Option 2. The servicer maycomplete the aggregate computation, asset forth in 24 CFR 3500.17(d), andrecord the aggregate deposit by insertingthe words ‘‘Aggregate Escrow Depositfor Items Marked (*) Above’’ on a lineat the end of the 1000 series and placingthe total on that line. While noindividual deposits are to be recordedon the other lines of the 1000 series, anasterisk (*) shall be placed next to eachitem in the 1000 series for which areserve has been collected.

9. Appendix A is amended in SectionL, under the text heading ‘‘Line ItemInstructions,’’ by revising in thediscussion of ‘‘Lines 1000–1008’’ thesecond paragraph and the secondsentence of the third paragraph and byadding a new fourth paragraph, to readas follows:

Appendix A to Part 3500—Instructionsfor Completing HUD–1 and HUD–1ASettlement Statements; Sample HUD–1and HUD–1A Statements

* * * * *Lines 1000–1008. * * *The servicer shall pick Option 1 or Option

2. Option 1. After itemizing individualdeposits in the 1000 series using single-item


accounting, the settlement agent shall makean adjustment based on an aggregate analysisto reflect the difference between the depositrequired under aggregate accounting and thesum of the deposits required under single-item accounting, with both sets ofcalculations using the same cushion. Thecomputation steps for both accountingmethods are set out in 24 CFR 3500.17(d).The adjustment will always be either anegative number or zero (-0-). The servicershall enter the aggregate adjustment amounton a final line in the 1000 series of the HUD–1 or HUD–1A statement.

* * * If a servicer has not yet conductedthe escrow account analysis to determine theaggregate accounting starting balance, thesettlement agent may initially calculate the1000 series deposits for the HUD–1 andHUD–1A settlement statement using single-item analysis with a maximum 1-monthcushion (unless the mortgage loan documentsindicate a smaller amount). * * *

Option 2. The servicer may complete theaggregate computation, as set forth in 24 CFR3500.17(d), and record the aggregate depositby inserting the words ‘‘Aggregate EscrowDeposit for Items Marked (*) Above’’ on a

line at the end of the 1000 series and placingthe total on that line. While no individualdeposits are to be recorded on the other linesof the 1000 series, an asterisk (*) shall beplaced next to each item in the 1000 seriesfor which a reserve has been collected.* * * * *

Dated: July 5, 1996.Nicolas P. Retsinas,Assistant Secretary for Housing—FederalHousing Commissioner.[FR Doc. 96–22371 Filed 8–30–96; 8:45 am]BILLING CODE 4210–27–P

i

Reader Aids Federal Register

Vol. 61, No. 171


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FEDERAL REGISTER PAGES AND DATES, SEPTEMBER

46373–46528......................... 3

CFR PARTS AFFECTED DURING SEPTEMBER

At the end of each month, the Office of the Federal Registerpublishes separately a List of CFR Sections Affected (LSA), whichlists parts and sections affected by documents published sincethe revision date of each title.

ii Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids

REMINDERSThe items in this list wereeditorially compiled as an aidto Federal Register users.Inclusion or exclusion fromthis list has no legalsignificance.

RULES GOING INTOEFFECT TODAY

DEFENSE DEPARTMENTAir Force DepartmentIndustrial labor relations

activities; CFR partremoved; published 9-3-96

ENVIRONMENTALPROTECTION AGENCYAir programs; fuels and fuel

additives:Deposit control gasoline

additives; certificationstandards; published 7-5-96

Hazardous waste:Identification and listing--

Exclusions; published 9-3-96

FEDERAL HOUSINGFINANCE BOARDFederal home loan bank

system:Bank or trust company

deposits; definitionmodification; published 8-2-96

HEALTH AND HUMANSERVICES DEPARTMENTFood and DrugAdministrationFood additives:

Peroxyacetic acid, aceticacid, and hydrogenperoxide; published 9-3-96

Peroxyacetic acid, aceticacid, hydrogen peroxideand 1-hydroxyethylidene-1,1-diphosphonic acid(HEDP); published 9-3-96

Medical devices:Protective restraints;

premarket notificationprocedures and currentgood manufacturingpractices requirements;exemptions revocation;published 3-4-96

HEALTH AND HUMANSERVICES DEPARTMENTHealth Care FinancingAdministrationMedicaid:

Health maintenanceorganizations, competitivemedical plans, and healthcare prepayment plans--Prepaid health care

organizations; physicianincentive plan

requirements; correction;published 9-3-96

Medicare:Special enrollment periods

and waiting period;published 8-2-96

INTERIOR DEPARTMENTFish and Wildlife ServiceHunting and fishing:

Refuge-specific regulations;published 9-3-96

INTERIOR DEPARTMENTNational Park ServiceSpecial regulations:

Lassen Volcanic NationalPark, CA; boating, fishing,and limit of catch;published 9-3-96

JUSTICE DEPARTMENTImmigration andNaturalization ServiceImmigration:

Fees for motions to reopenor reconsider when filedconcurrently with anyapplication for relief underimmigration laws for whicha fee is chargeable;published 9-3-96

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Airbus; published 7-29-96Boeing; published 7-29-96Fokker; published 7-29-96McDonnell Douglas;

published 7-29-96Pratt & Whitney; published

8-19-96Saab; published 8-19-96

Child restraint systems:Booster seats and vest- and

harness-type systems,approval withdrawn; andlap held systems; existingprohibition emphasis;published 6-4-96

TRANSPORTATIONDEPARTMENTNational Highway TrafficSafety AdministrationMotor vehicle content labeling;

passenger cars and lightvehicles; domestic andforeign content information;published 9-3-96

Motor vehicle safetystandards:Child restraint systems--

Child harnesses andbackless restraints usein aircraft;manufacturers labelingrequirements; published6-4-96

COMMENTS DUE NEXTWEEK

AGRICULTUREDEPARTMENTAgricultural MarketingServiceCranberries grown in

Massachusetts et al.;comments due by 9-11-96;published 8-12-96

Peanuts, domesticallyproduced; comments due by9-12-96; published 8-28-96

AGRICULTUREDEPARTMENTAnimal and Plant HealthInspection ServiceExportation and importation of

animals and animalproducts:Rinderpest and foot-and-

mouth disease; diseasestatus change--Czech Republic and Italy;

comments due by 9-9-96; published 7-9-96

AGRICULTUREDEPARTMENTFood Safety and InspectionServiceMeat and poultry inspection:

Shingle packed bacon; netweight statements;labeling requirementremoved; comments dueby 9-13-96; published 8-14-96

COMMERCE DEPARTMENTCensus BureauForeign trade statistics:

Customs entry records;collection of CanadianProvince of Origininformation; commentsdue by 9-9-96; published7-10-96

COMMERCE DEPARTMENTNational Oceanic andAtmospheric AdministrationFishery conservation and

management:Alaska; fisheries of

Exclusive Economic Zoneand repeal of NorthPacific fisheries researchplan; comments due by 9-9-96; published 7-12-96

North Pacific fisheriesresearch plan;implementation; commentsdue by 9-13-96; published8-2-96

Northeastern United Statesfisheries; comments dueby 9-12-96; published 7-24-96

Ocean salmon off coasts ofWashington, Oregon, and

California; comments dueby 9-9-96; published 8-23-96

Pacific Coast groundfish;comments due by 9-12-96; published 8-28-96

DEFENSE DEPARTMENTAcquisition regulations:

Allowable individualcompensation; commentsdue by 9-9-96; published7-10-96

ENERGY DEPARTMENTEnergy Efficiency andRenewable Energy OfficeConsumer products; energy

conservation program:Appliance standards; revised

product data sheets;comments due by 9-9-96;published 8-27-96

Refrigerators, refrigerator-freezers, and freezers;comments due by 9-11-96; published 8-12-96

ENVIRONMENTALPROTECTION AGENCYAir pollution control; new

motor vehicles and engines:Highway heavy-duty

engines; emissionscontrol; comments due by9-12-96; published 7-19-96

Air programs; fuels and fueladditives:Reformulated gasoline

standards--Nitrogen oxides;


Air quality implementationplans:Preparation, adoption, and

submittal--Air quality models

guideline; commentsdue by 9-11-96;published 8-12-96

Transportation conformityrule; flexibility andstreamlining; commentsdue by 9-9-96; published7-9-96

Air quality implementationplans; approval andpromulgation; variousStates:Illinois; comments due by 9-

9-96; published 8-8-96Massachusetts; comments

due by 9-9-96; published8-8-96

Pennsylvania; commentsdue by 9-9-96; published7-10-96

Washington; comments dueby 9-9-96; published 8-8-96

Air quality implementationplans; √A√approval and

iiiFederal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids

promulgation; variousStates; air quality planningpurposes; designation ofareas:Colorado; comments due by

9-9-96; published 8-23-96Illinois; comments due by 9-

9-96; published 8-8-96Air quality planning purposes;

designation of areas:Nevada; comments due by

9-11-96; published 8-12-96

Clean Air Act:State operating permits

programs--New Hampshire;


Hazardous waste programauthorizations:Delaware; comments due by

9-9-96; published 8-8-96Hazardous waste:

State underground storagetank program approvals--Connecticut; comments

due by 9-9-96;published 8-9-96

Delaware; comments dueby 9-9-96; published 8-5-96

Pesticide programs:Risk/benefit information;

reporting requirements;comments due by 9-11-96; published 8-12-96

FARM CREDITADMINISTRATIONFarm credit system:

Capital adequacy andcustomer eligibility;miscellaneousamendments; commentsdue by 9-12-96; published8-13-96

FEDERALCOMMUNICATIONSCOMMISSIONRadio stations; table of

assignments:Michigan; comments due by

9-9-96; published 8-14-96Pennsylvania; comments

due by 9-9-96; published8-20-96

FEDERAL HOUSINGFINANCE BOARDFederal home loan bank

system:Budgets approval;

comments due by 9-9-96;published 8-9-96

FEDERAL TRADECOMMISSIONTextile Fiber Products

Identification Act:Teijin Ltd.; generic fiber

name application;comments due by 9-9-96;published 7-9-96

HEALTH AND HUMANSERVICES DEPARTMENTFood and DrugAdministrationFederal regulatory review:

Food additives; commentsdue by 9-10-96; published6-12-96

Food standards; commentsdue by 9-10-96; published6-12-96

Human drugs:Internal analgesic,

antipyretic, andantirheumatic products(OTC); tentative finalmonograph; commentsdue by 9-11-96; published6-13-96

HOUSING AND URBANDEVELOPMENTDEPARTMENTPublic and Indian housing:

Public housing families;strengthening role offathers; regulatorydevelopment; commentsdue by 9-13-96; published7-30-96

HOUSING AND URBANDEVELOPMENTDEPARTMENTFederal Housing EnterpriseOversight OfficeRisk-based capital; comments

due by 9-9-96; published 6-11-96

INTERIOR DEPARTMENTIndian Affairs BureauHousing improvement

program:Administrative guidelines

simplification; commentsdue by 9-13-96; published7-15-96

Land and water:Land acquisitions--

Navajo partitioned landgrazing regulations;comments due by 9-9-96; published 6-10-96

Practice and procedure:Employment preference;


INTERIOR DEPARTMENTLand Management BureauRange management:

Wild free-roaming horsesand burros; adoption fees;comments due by 9-9-96;published 7-10-96

JUSTICE DEPARTMENTImmigration andNaturalization ServiceImmigration:

Resettlement assistanceeligibility; paroled Cubanor Haitian nationals;


Spouses and unmarriedchildren of refugees/asylees; procedures forfiling derivative petitions;comments due by 9-9-96;published 7-9-96

JUSTICE DEPARTMENTClassified national security

information and access toclassified information;comments due by 9-10-96;published 7-12-96

LEGAL SERVICESCORPORATIONClass actions; funding

restriction; comments dueby 9-12-96; published 8-13-96

Eviction proceedings ofpersons engaged in illegaldrug activity; representationfunding restriction;comments due by 9-12-96;published 8-13-96

Redistricting; fundingrestriction; comments dueby 9-12-96; published 8-13-96

Use of funds from sourcesother than Corporation (non-LSC funds); comments dueby 9-12-96; published 8-13-96

NATIONAL CREDIT UNIONADMINISTRATIONCredit unions:

Share insurance paymentand appeals; commentsdue by 9-10-96; published7-12-96

NUCLEAR REGULATORYCOMMISSIONRulemaking petitions:

IsoStent, Inc.; commentsdue by 9-10-96; published6-27-96

PERSONNEL MANAGEMENTOFFICEAllowances and diffferentials:

Cost-of-living allowances inAlaska, Hawaii, PuertoRico, Guam, and U.S.Virgin Islands; partnershippilot project; commentsdue by 9-11-96; published8-12-96

Health benefits, Federalemployees:Opportunities to enroll and

change enrollment;comments due by 9-9-96;published 7-9-96

POSTAL SERVICEPostal electronic commerce

services; development;comments due by 9-13-96;published 8-14-96

SECURITIES ANDEXCHANGE COMMISSIONSecurities:

Beneficial ownershipreporting requirements;comments due by 9-9-96;published 7-11-96

TRANSPORTATIONDEPARTMENTCoast GuardLoad lines:

Great Lakes certificateextension; comments dueby 9-9-96; published 7-9-96

TRANSPORTATIONDEPARTMENTComputer reservation systems:

Prohibition of participatingsystems from engaging inlevel of participation thatwould be lower than levelof participation in anyother system; commentsdue by 9-13-96; published8-14-96

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Airbus; comments due by 9-10-96; published 7-30-96

AlliedSignal Inc.; commentsdue by 9-9-96; published7-10-96

Boeing; comments due by9-9-96; published 7-9-96

Fokker; comments due by9-9-96; published 7-9-96

McDonnell Douglas;comments due by 9-9-96;published 7-9-96

Pratt & Whitney; commentsdue by 9-10-96; published7-12-96

Short Brothers PLC;comments due by 9-9-96;published 7-29-96

Short Brothers plc;comments due by 9-11-96; published 8-1-96

Airworthiness standards:Special conditions--

Cessna model 550airplane (serial number550-0801, etc.);comments due by 9-13-96; published 8-14-96

Class D airspace; commentsdue by 9-9-96; published 7-29-96

Class E airspace; commentsdue by 9-13-96; published7-29-96

TRANSPORTATIONDEPARTMENTFederal HighwayAdministrationMotor carrier safety and

hazardous materialsadministration:Proceeding, investigations,

and disqualifications and

iv Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids

penalties; practice rules;comments due by 9-13-96; published 8-6-96

Motor vehicle safetystandards:Parts and accessories

necessary for safeoperation--Antilock brake systems on

air-braked truck tractors,single-unit trucks,buses, trailers, andconverter dollies;comments due by 9-10-96; published 7-12-96

TRANSPORTATIONDEPARTMENTNational Highway TrafficSafety AdministrationMotor vehicle safety

standards:

Occupant crash protection--Safety belt fit

improvement; Type 2safety belts foradjustable seats inautomobiles with grossweight of 10,000pounds or less;comments due by 9-12-96; published 7-29-96

TREASURY DEPARTMENTAlcohol, Tobacco andFirearms BureauAlcohol, tobacco, and other

excise taxes:Liquors and articles from

Puerto Rico and VirginIslands; Federal regulatoryreview; comments due by9-11-96; published 6-13-96

Alcoholic beverages:

Distilled spirits; labeling andadvertising--

Grape brandy, unaged;comments due by 9-11-96; published 6-13-96

TREASURY DEPARTMENT

Internal Revenue Service

Estate and gift taxes:

Generation-skipping transfertax; comments due by 9-10-96; published 6-12-96

Sale of seized property;setting of minimum price;comments due by 9-11-96; published 6-13-96

VETERANS AFFAIRSDEPARTMENT

Adjudication; pensions,compensation, dependency,etc.:

Diseases associated withexposure to herbicideagents--

Prostate cancer and acuteand subacute peripheralneuropathy; commentsdue by 9-9-96;published 8-8-96

vFederal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / 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) 512-2250.Title Stock Number Price Revision Date

1, 2 (2 Reserved) ......... (869–028–00001–1) ...... $4.25 Feb. 1, 19963 (1995 Compilation

and Parts 100 and101) .......................... (869–028–00002–9) ...... 22.00 1 Jan. 1, 1996

4 .................................. (869–028–00003–7) ...... 5.50 Jan. 1, 19965 Parts:1–699 ........................... (869–028–00004–5) ...... 26.00 Jan. 1, 1996700–1199 ...................... (869–028–00005–3) ...... 20.00 Jan. 1, 19961200–End, 6 (6

Reserved) ................. (869–028–00006–1) ...... 25.00 Jan. 1, 19967 Parts:0–26 ............................. (869–028–00007–0) ...... 22.00 Jan. 1, 199627–45 ........................... (869–028–00008–8) ...... 11.00 Jan. 1, 199646–51 ........................... (869–028–00009–6) ...... 13.00 Jan. 1, 199652 ................................ (869–028–00010–0) ...... 5.00 Jan. 1, 199653–209 .......................... (869–028–00011–8) ...... 17.00 Jan. 1, 1996210–299 ........................ (869–028–00012–6) ...... 35.00 Jan. 1, 1996300–399 ........................ (869–028–00013–4) ...... 17.00 Jan. 1, 1996400–699 ........................ (869–028–00014–2) ...... 22.00 Jan. 1, 1996700–899 ........................ (869–028–00015–1) ...... 25.00 Jan. 1, 1996900–999 ........................ (869–028–00016–9) ...... 30.00 Jan. 1, 19961000–1199 .................... (869–028–00017–7) ...... 35.00 Jan. 1, 19961200–1499 .................... (869–028–00018–5) ...... 29.00 Jan. 1, 19961500–1899 .................... (869–028–00019–3) ...... 41.00 Jan. 1, 19961900–1939 .................... (869–028–00020–7) ...... 16.00 Jan. 1, 19961940–1949 .................... (869–028–00021–5) ...... 31.00 Jan. 1, 19961950–1999 .................... (869–028–00022–3) ...... 39.00 Jan. 1, 19962000–End ...................... (869–028–00023–1) ...... 15.00 Jan. 1, 19968 .................................. (869–028–00024–0) ...... 23.00 Jan. 1, 19969 Parts:1–199 ........................... (869–028–00025–8) ...... 30.00 Jan. 1, 1996200–End ....................... (869–028–00026–6) ...... 25.00 Jan. 1, 199610 Parts:0–50 ............................. (869–028–00027–4) ...... 30.00 Jan. 1, 199651–199 .......................... (869–028–00028–2) ...... 24.00 Jan. 1, 1996200–399 ........................ (869–028–00029–1) ...... 5.00 Jan. 1, 1996400–499 ........................ (869–028–00030–4) ...... 21.00 Jan. 1, 1996500–End ....................... (869–028–00031–2) ...... 34.00 Jan. 1, 199611 ................................ (869–028–00032–1) ...... 15.00 Jan. 1, 199612 Parts:1–199 ........................... (869–028–00033–9) ...... 12.00 Jan. 1, 1996200–219 ........................ (869–028–00034–7) ...... 17.00 Jan. 1, 1996220–299 ........................ (869–028–00035–5) ...... 29.00 Jan. 1, 1996300–499 ........................ (869–028–00036–3) ...... 21.00 Jan. 1, 1996500–599 ........................ (869–028–00037–1) ...... 20.00 Jan. 1, 1996600–End ....................... (869–028–00038–0) ...... 31.00 Jan. 1, 199613 ................................ (869–028–00039–8) ...... 18.00 Mar. 1, 199614 Parts:1–59 ............................. (869–028–00040–1) ...... 34.00 Jan. 1, 1996

Title Stock Number Price Revision Date

60–139 .......................... (869–028–00041–0) ...... 30.00 Jan. 1, 1996140–199 ........................ (869–028–00042–8) ...... 13.00 Jan. 1, 1996200–1199 ...................... (869–028–00043–6) ...... 23.00 Jan. 1, 19961200–End ...................... (869–028–00044–4) ...... 16.00 Jan. 1, 1996

15 Parts:0–299 ........................... (869–028–00045–2) ...... 16.00 Jan. 1, 1996300–799 ........................ (869–028–00046–1) ...... 26.00 Jan. 1, 1996800–End ....................... (869–028–00047–9) ...... 18.00 Jan. 1, 1996

16 Parts:0–149 ........................... (869–028–00048–7) ...... 6.50 Jan. 1, 1996150–999 ........................ (869–028–00049–5) ...... 19.00 Jan. 1, 19961000–End ...................... (869–028–00050–9) ...... 26.00 Jan. 1, 1996

17 Parts:1–199 ........................... (869–028–00052–5) ...... 21.00 Apr. 1, 1996200–239 ........................ (869–028–00053–3) ...... 25.00 Apr. 1, 1996240–End ....................... (869–028–00054–1) ...... 31.00 Apr. 1, 1996

18 Parts:1–149 ........................... (869–028–00055–0) ...... 17.00 Apr. 1, 1996150–279 ........................ (869–028–00056–8) ...... 12.00 Apr. 1, 1996280–399 ........................ (869–028–00057–6) ...... 13.00 Apr. 1, 1996400–End ....................... (869–028–00058–4) ...... 11.00 Apr. 1, 1996



21 Parts:1–99 ............................. (869–028–00065–7) ...... 16.00 Apr. 1, 1996100–169 ........................ (869–028–00066–5) ...... 22.00 Apr. 1, 1996170–199 ........................ (869–028–00067–3) ...... 29.00 Apr. 1, 1996200–299 ........................ (869–028–00068–1) ...... 7.00 Apr. 1, 1996300–499 ........................ (869–028–00069–0) ...... 50.00 Apr. 1, 1996*500–599 ...................... (869–028–00070–3) ...... 28.00 Apr. 1, 1996600–799 ........................ (869–028–00071–1) ...... 8.50 Apr. 1, 1996800–1299 ...................... (869–028–00072–0) ...... 30.00 Apr. 1, 19961300–End ...................... (869–028–00073–8) ...... 14.00 Apr. 1, 1996

22 Parts:1–299 ........................... (869–028–00074–6) ...... 36.00 Apr. 1, 1996300–End ....................... (869–028–00075–4) ...... 24.00 Apr. 1, 1996

23 ................................ (869–028–00076–2) ...... 21.00 Apr. 1, 1996

24 Parts:0–199 ........................... (869–028–00077–1) ...... 30.00 May 1, 1996200–219 ........................ (869–028–00078–9) ...... 14.00 May 1, 1996220–499 ........................ (869–028–00079–7) ...... 13.00 May 1, 1996500–699 ........................ (869–028–00080–1) ...... 14.00 May 1, 1996700–899 ........................ (869–028–00081–9) ...... 13.00 May 1, 1996900–1699 ...................... (869–028–00082–7) ...... 21.00 May 1, 19961700–End ...................... (869–028–00083–5) ...... 14.00 May 1, 1996

25 ................................ (869–028–00084–3) ...... 32.00 May 1, 1996

26 Parts:§§ 1.0-1–1.60 ................ (869–028–00085–1) ...... 21.00 Apr. 1, 1996§§ 1.61–1.169 ................ (869–028–00086–0) ...... 34.00 Apr. 1, 1996§§ 1.170–1.300 .............. (869–028–00087–8) ...... 24.00 Apr. 1, 1996§§ 1.301–1.400 .............. (869–028–00088–6) ...... 17.00 Apr. 1, 1996§§ 1.401–1.440 .............. (869–028–00089–4) ...... 31.00 Apr. 1, 1996§§ 1.441-1.500 .............. (869-028-00090-8) ...... 22.00 Apr. 1, 1996§§ 1.501–1.640 .............. (869–028–00091–6) ...... 21.00 Apr. 1, 1996§§ 1.641–1.850 .............. (869–028–00092–4) ...... 25.00 Apr. 1, 1996§§ 1.851–1.907 .............. (869–028–00093–2) ...... 26.00 Apr. 1, 1996§§ 1.908–1.1000 ............ (869–028–00094–1) ...... 26.00 Apr. 1, 1996§§ 1.1001–1.1400 .......... (869–028–00095–9) ...... 26.00 Apr. 1, 1996§§ 1.1401–End .............. (869–028–00096–7) ...... 35.00 Apr. 1, 19962–29 ............................. (869–028–00097–5) ...... 28.00 Apr. 1, 199630–39 ........................... (869–028–00098–3) ...... 20.00 Apr. 1, 199640–49 ........................... (869–028–00099–1) ...... 13.00 Apr. 1, 199650–299 .......................... (869–028–00100–9) ...... 14.00 Apr. 1, 1996300–499 ........................ (869–028–00101–7) ...... 25.00 Apr. 1, 1996

vi Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids


500–599 ........................ (869–028–00102–5) ...... 6.00 4 Apr. 1, 1990600–End ....................... (869–028–00103–3) ...... 8.00 Apr. 1, 1996

27 Parts:1–199 ........................... (869–028–00104–1) ...... 44.00 Apr. 1, 1996200–End ....................... (869–028–00105–0) ...... 13.00 Apr. 1, 1996

28 Parts: .....................1-42 ............................. (869–026–00108–1) ...... 27.00 July 1, 199543-end ......................... (869-026-00109-0) ...... 22.00 July 1, 1995

29 Parts:0–99 ............................. (869–028–00108–4) ...... 26.00 July 1, 1996100–499 ........................ (869–028–00109–2) ...... 12.00 July 1, 1996500–899 ........................ (869–026–00112–0) ...... 36.00 July 1, 1995900–1899 ...................... (869–026–00113–8) ...... 17.00 July 1, 19951900–1910 (§§ 1901.1 to

1910.999) .................. (869–026–00114–6) ...... 33.00 July 1, 19951910 (§§ 1910.1000 to

end) ......................... (869–026–00115–4) ...... 22.00 July 1, 19951911–1925 .................... (869–026–00116–2) ...... 27.00 July 1, 19951926 ............................. (869–026–00117–1) ...... 35.00 July 1, 19951927–End ...................... (869–026–00118–9) ...... 36.00 July 1, 1995

30 Parts:1–199 ........................... (869–026–00119–7) ...... 25.00 July 1, 1995200–699 ........................ (869–026–00120–1) ...... 20.00 July 1, 1995*700–End ...................... (869–028–00119–0) ...... 38.00 July 1, 1996

31 Parts:0–199 ........................... (869–026–00122–7) ...... 15.00 July 1, 1995200–End ....................... (869–026–00123–5) ...... 25.00 July 1, 199532 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 ........................... (869–026–00124–3) ...... 32.00 July 1, 1995191–399 ........................ (869–026–00125–1) ...... 38.00 July 1, 1995400–629 ........................ (869–026–00126–0) ...... 26.00 July 1, 1995630–699 ........................ (869–028–00125–4) ...... 14.00 5 July 1, 1991700–799 ........................ (869–026–00128–6) ...... 21.00 July 1, 1995800–End ....................... (869–026–00129–4) ...... 22.00 July 1, 1995

33 Parts:1–124 ........................... (869–026–00130–8) ...... 20.00 July 1, 1995125–199 ........................ (869–026–00131–6) ...... 27.00 July 1, 1995200–End ....................... (869–026–00132–4) ...... 24.00 July 1, 1995

34 Parts:1–299 ........................... (869–026–00133–2) ...... 25.00 July 1, 1995300–399 ........................ (869–026–00134–1) ...... 21.00 July 1, 1995400–End ....................... (869–026–00135–9) ...... 37.00 July 5, 1995

35 ................................ (869–026–00136–7) ...... 12.00 July 1, 1995

36 Parts1–199 ........................... (869–026–00137–5) ...... 15.00 July 1, 1995200–End ....................... (869–026–00138–3) ...... 37.00 July 1, 1995

37 ................................ (869–026–00139–1) ...... 20.00 July 1, 1995

38 Parts:0–17 ............................. (869–026–00140–5) ...... 30.00 July 1, 199518–End ......................... (869–026–00141–3) ...... 30.00 July 1, 1995

39 ................................ (869–026–00142–1) ...... 17.00 July 1, 1995

40 Parts:1–51 ............................. (869–026–00143–0) ...... 40.00 July 1, 199552 ................................ (869–026–00144–8) ...... 39.00 July 1, 199553–59 ........................... (869–026–00145–6) ...... 11.00 July 1, 199560 ................................ (869-026-00146-4) ...... 36.00 July 1, 199561–71 ........................... (869–026–00147–2) ...... 36.00 July 1, 199572–85 ........................... (869–026–00148–1) ...... 41.00 July 1, 199586 ................................ (869–026–00149–9) ...... 40.00 July 1, 1995*87–135 ........................ (869–028–00149–1) ...... 35.00 July 1, 199687–149 .......................... (869–026–00150–2) ...... 41.00 July 1, 1995150–189 ........................ (869–026–00151–1) ...... 25.00 July 1, 1995190–259 ........................ (869–026–00152–9) ...... 17.00 July 1, 1995260–299 ........................ (869–026–00153–7) ...... 40.00 July 1, 1995300–399 ........................ (869–026–00154–5) ...... 21.00 July 1, 1995400–424 ........................ (869–028–00155–6) ...... 33.00 July 1, 1996


425–699 ........................ (869–026–00156–1) ...... 30.00 July 1, 1995700–789 ........................ (869–026–00157–0) ...... 25.00 July 1, 1995790–End ....................... (869–026–00158–8) ...... 15.00 July 1, 199541 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 ........................... (869–026–00159–6) ...... 9.50 July 1, 1995101 ............................... (869–026–00160–0) ...... 29.00 July 1, 1995102–200 ........................ (869–028–00161–1) ...... 17.00 July 1, 1996201–End ....................... (869–026–00162–6) ...... 13.00 July 1, 199542 Parts:1–399 ........................... (869–026–00163–4) ...... 26.00 Oct. 1, 1995400–429 ........................ (869–026–00164–2) ...... 26.00 Oct. 1, 1995430–End ....................... (869–026–00165–1) ...... 39.00 Oct. 1, 199543 Parts:1–999 ........................... (869–026–00166–9) ...... 23.00 Oct. 1, 19951000–3999 .................... (869–026–00167–7) ...... 31.00 Oct. 1, 19954000–End ...................... (869–026–00168–5) ...... 15.00 Oct. 1, 199544 ................................ (869–026–00169–3) ...... 24.00 Oct. 1, 199545 Parts:1–199 ........................... (869–022–00170–7) ...... 22.00 Oct. 1, 1995200–499 ........................ (869–026–00171–5) ...... 14.00 Oct. 1, 1995500–1199 ...................... (869–026–00172–3) ...... 23.00 Oct. 1, 19951200–End ...................... (869–026–00173–1) ...... 26.00 Oct. 1, 199546 Parts:1–40 ............................. (869–026–00174–0) ...... 21.00 Oct. 1, 199541–69 ........................... (869–026–00175–8) ...... 17.00 Oct. 1, 199570–89 ........................... (869–026–00176–6) ...... 8.50 Oct. 1, 199590–139 .......................... (869–026–00177–4) ...... 15.00 Oct. 1, 1995140–155 ........................ (869–026–00178–2) ...... 12.00 Oct. 1, 1995156–165 ........................ (869–026–00179–1) ...... 17.00 Oct. 1, 1995166–199 ........................ (869–026–00180–4) ...... 17.00 Oct. 1, 1995200–499 ........................ (869–026–00181–2) ...... 19.00 Oct. 1, 1995500–End ....................... (869–026–00182–1) ...... 13.00 Oct. 1, 199547 Parts:0–19 ............................. (869–026–00183–9) ...... 25.00 Oct. 1, 199520–39 ........................... (869–026–00184–7) ...... 21.00 Oct. 1, 199540–69 ........................... (869–026–00185–5) ...... 14.00 Oct. 1, 199570–79 ........................... (869–026–00186–3) ...... 24.00 Oct. 1, 199580–End ......................... (869–026–00187–1) ...... 30.00 Oct. 1, 199548 Chapters:1 (Parts 1–51) ............... (869–026–00188–0) ...... 39.00 Oct. 1, 19951 (Parts 52–99) ............. (869–026–00189–8) ...... 24.00 Oct. 1, 19952 (Parts 201–251) .......... (869–026–00190–1) ...... 17.00 Oct. 1, 19952 (Parts 252–299) .......... (869–026–00191–0) ...... 13.00 Oct. 1, 19953–6 ............................... (869–026–00192–8) ...... 23.00 Oct. 1, 19957–14 ............................. (869–026–00193–6) ...... 28.00 Oct. 1, 199515–28 ........................... (869–026–00194–4) ...... 31.00 Oct. 1, 199529–End ......................... (869–026–00195–2) ...... 19.00 Oct. 1, 199549 Parts:1–99 ............................. (869–026–00196–1) ...... 25.00 Oct. 1, 1995100–177 ........................ (869–026–00197–9) ...... 34.00 Oct. 1, 1995178–199 ........................ (869–026–00198–7) ...... 22.00 Oct. 1, 1995200–399 ........................ (869–026–00199–5) ...... 30.00 Oct. 1, 1995400–999 ........................ (869–026–00200–2) ...... 40.00 Oct. 1, 19951000–1199 .................... (869–026–00201–1) ...... 18.00 Oct. 1, 19951200–End ...................... (869–026–00202–9) ...... 15.00 Oct. 1, 199550 Parts:1–199 ........................... (869–026–00203–7) ...... 26.00 Oct. 1, 1995200–599 ........................ (869–026–00204–5) ...... 22.00 Oct. 1, 1995600–End ....................... (869–026–00205–3) ...... 27.00 Oct. 1, 1995

CFR Index and FindingsAids .......................... (869–028–00051–7) ...... 35.00 Jan. 1, 1996

viiFederal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids


Complete 1996 CFR set ...................................... 883.00 1996

Microfiche CFR Edition:Subscription (mailed as issued) ...................... 264.00 1996Individual copies ............................................ 1.00 1996Complete set (one-time mailing) ................... 264.00 1995Complete set (one-time mailing) ................... 244.00 1994Complete set (one-time mailing) ................... 223.00 19931 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, 1996. 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, 1996. The CFR volume issued July 1, 1991, should be retained.

viii Federal Register / Vol. 61, No. 171 / Tuesday, September 3, 1996 / Reader Aids

TABLE OF EFFECTIVE DATES AND TIME PERIODS—SEPTEMBER 1996

This table is used by the Office of theFederal Register to compute certaindates, such as effective dates andcomment deadlines, which appear inagency documents. In computing these

dates, the day after publication iscounted as the first day.

When a date falls on a weekend orholiday, the next Federal business dayis used. (See 1 CFR 18.17)

A new table will be published in thefirst issue of each month.

DATE OF FRPUBLICATION

15 DAYS AFTERPUBLICATION





September 3 September 18 October 3 October 18 November 4 December 2









September 16 October 1 October 16 October 31 November 15 December 16

September 17 October 2 October 17 November 1 November 18 December 16










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