[Federal Register: December 23, 2008 (Volume 73, Number 247)]
[Proposed Rules]
[Page 78716-78720]
[DOCID:fr23de08-30]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 312

[EPA-HQ-SFUND-2008-0873; FRL-8755-7]
RIN 2050-AG47

Amendment to Standards and Practices for All Appropriate
Inquiries Under CERCLA

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to amend the Standards and Practices for All
Appropriate Inquiries to reference a standard practice recently made
available by ASTM International, a widely recognized standards
development organization. Specifically, EPA is proposing to amend the
All Appropriate Inquiries Final Rule to reference ASTM International's
E2247-08 ``Standard Practice for Environmental Site Assessments: Phase
I Environmental Site Assessment Process for Forestland or Rural
Property'' and allow for its use to satisfy the statutory requirements
for conducting all appropriate inquiries under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA). In the
``Rules and Regulations'' section of this Federal Register, EPA is
amending the All Appropriate Inquiries Final Rule to reference the ASTM
E2247-08 Standard as a direct final rule without a prior proposed rule.
If we receive no adverse comment, we will not take further action on
this proposed rule.

DATES: Written comments must be received by January 22, 2009.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
SFUND-2008-0873 by one of the following methods:
     http://www.regulations.gov: Follow the on-line
instructions for submitting comments.
     E-mail<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER>.
     Mail: Superfund Docket, Environmental Protection Agency,
Mailcode: 2822T, 1200 Pennsylvania Ave., NW., Washington, DC 20460.
Please include a total of two copies.
     Hand Delivery: EPA Headquarters West Building, Room 3334,
located at 1301 Constitution Ave., NW., Washington, DC. Such deliveries
are only accepted during the Docket's normal hours of operation, and
special arrangements should be made for deliveries of boxed
information. The EPA Headquarters Public Reading Room hours of
operation are 8:30 a.m. to 4:30 p.m. Eastern Standard Time, Monday
through Friday, excluding federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-SFUND-
2008-0873. Please reference Docket number EPA-HQ-SFUND-2008-0873 when
submitting your comments.
    EPA's policy is that all comments received will be included in the
public docket without change and may be made available online at http:/
/www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit information that you consider to
be CBI or otherwise protected through http://www.regulations.gov or e-
mail. The http://www.regulations.gov Web site is an ``anonymous
access'' system, which means EPA will not know your identity or contact
information unless you provide it in the body of your comment. If you
send an e-mail comment directly to EPA without going through http://
www.regulations.gov your e-mail address will be automatically captured
and included as part of the comment that is placed in the public docket
and made available on the Internet. If you submit an electronic
comment, EPA recommends that you include your name and other contact
information in the body of your comment and with any disk or CD-ROM you
submit. If EPA cannot read your comment due to technical difficulties
and cannot contact you for clarification, EPA may not be able to
consider your comment. Electronic files should avoid the use of special
characters, any form of encryption, and be free of any defects or
viruses. For additional information about EPA's public docket visit the
EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm
    Docket: You may use EPA Dockets at http://www.epa.gov/edocket/ to
access the index listing of the contents of the official public docket,
and to access those documents in the public docket that are available
electronically. Once in the system, select ``search,'' then key in the
docket identification number.
    All documents in the docket are listed in the http://
www.regulations.gov index. Certain types of information claimed as CBI,
and other information whose

disclosure is restricted by statute, will not be available for public
viewing in EPA's electronic public docket. EPA's policy is that
copyrighted material, such as ASTM Internationals' E2247-08 ``Standard
Practice for Environmental Site Assessments: Phase I Environmental Site
Assessment Process for Forestland or Rural Property'' will not be
placed in EPA's electronic public docket but will be publicly available
only in printed form in the official public docket. Publicly available
docket materials are available either electronically in http://
www.regulations.gov or in hard copy at the HQ EPA Docket Center, EPA/
DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC.
The Public Reading Room at this docket facility is open from 8:30 a.m.
to 4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Public Reading Room is<PHONE_NUMBER>, and the
telephone number for the Superfund Docket is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: For general information, contact the
CERCLA Call Center at<PHONE_NUMBER> or TDD<PHONE_NUMBER> (hearing
impaired). In the Washington, DC, metropolitan area, call<PHONE_NUMBER>
or TDD<PHONE_NUMBER>. For more detailed information on specific aspects
of this rule, contact Patricia Overmeyer, Office of Brownfields and
Land Revitalization (5105T), U.S. Environmental Protection Agency, 1200
Pennsylvania Avenue, NW., Washington, DC 20460-0002,<PHONE_NUMBER>, or
<EMAIL_ADDRESS>
Regulated Entities

    Today's action offers certain parties the option of using an
available industry standard to conduct all appropriate inquiries at
certain properties. Parties purchasing large tracts (greater than 120
acres) of forested land and parties purchasing large rural properties
may use the ASTM E2247-08 standard practice to comply with the all
appropriate inquiries requirements of CERCLA. Today's proposed rule
will not require any entity to use this standard. Any party who wants
to claim protection from liability under CERCLA may follow the
regulatory requirement of the All Appropriate Inquiries Final Rule at
40 CFR part 312, or use the ASTM E1527-05 Standard Practice for Phase I
Environmental Site Assessments to comply with the all appropriate
inquiries provision of CERCLA.
    Entities potentially affected by this action, or who may choose to
use the newly referenced ASTM standard to perform all appropriate
inquiries, include public and private parties who, as bona fide
prospective purchasers, contiguous property owners, or innocent
landowners, are purchasing large tracts of forested lands or large
rural properties and intend to claim a limitation on CERCLA liability
in conjunction with the property purchase. In addition, any entity
conducting a site characterization or assessment on a property that
consists of large tracts of forested land or a large rural property
with a brownfields grant awarded under CERCLA Section 104(k)(2)(B)(ii)
may be affected by today's action. This includes state, local and
Tribal governments that receive brownfields site assessment grants. A
summary of the potentially affected industry sectors (by NAICS codes)
is displayed in the table below.

------------------------------------------------------------------------
              Industry category                        NAICS code
------------------------------------------------------------------------
Real Estate..................................                        531
Insurance....................................                      52412
Banking/ Real Estate Credit..................                      52292
Environmental Consulting Services............                      54162
State, Local and Tribal Government...........             926110, 925120
Federal Government...........................     925120, 921190, 924120
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    The list of potentially affected entities in the above table may
not be exhaustive. Our aim is to provide a guide for readers regarding
those entities that EPA is aware potentially could be affected by this
action. However, this action may affect other entities not listed in
the table. If you have questions regarding the applicability of this
action to a particular entity, consult the person listed in the
preceding section entitled FOR FURTHER INFORMATION CONTACT.

Why Is EPA Issuing This Proposed Rule?

    This document proposes to amend the All Appropriate Inquiries Final
Rule at 40 CFR part 312 to reference ASTM International's E2247-08
``Standard Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process for Forestland or Rural
Property'' and allow for its use to satisfy the statutory requirements
for conducting all appropriate inquiries under the Comprehensive
Environmental Response Compensation and Liability Act (CERCLA). We have
published a direct final rule amending the All Appropriate Inquiries
regulations to reference the ASTM E2237-08 standard and allow for its
use to comply with the final rule in the ``Rules and Regulations''
section of this Federal Register because we view this as a
noncontroversial action and anticipate no adverse comment. We have
explained our reasons for this action in the preamble to the direct
final rule.
    If we receive no adverse comment, we will not take further action
on this proposed rule. If we receive adverse comment, we will withdraw
the direct final rule and it will not take effect. We will address all
public comments in any subsequent final rule based on this proposed
rule. We do not intend to institute a second comment period on this
action. Any parties interested in commenting must do so at this time.
For further information, please see the information provided in the
ADDRESSES section of this document.

Preamble

I. Statutory Authority
II. Background
III. This Action
IV. Administrative Requirements

I. Statutory Authority

    EPA is proposing to amend the All Appropriate Inquiries Final Rule
that sets federal standards for the conduct of ``all appropriate
inquiries'' at 40 CFR part 312. The All Appropriate Inquiries Final
Rule sets forth standards and practices necessary for fulfilling the
requirements of CERCLA section 101(35)(B) as required to obtain CERCLA
liability relief and for conducting site characterizations and
assessments with the use of brownfields grants per CERCLA section
104(k)(2)(B)(ii).

II. Background

    On January 11, 2002, President Bush signed the Small Business
Liability Relief and Brownfields Revitalization Act (``the Brownfields
Amendments''). In general, the Brownfields

Amendments to CERCLA provide funds to assess and cleanup brownfields
sites; clarifies CERCLA liability provisions related to innocent
purchasers of contaminated properties; and provides funding to enhance
State and Tribal cleanup programs. In part, subtitle B of the
Brownfields Amendments revises some of the provisions of CERCLA section
101(35) and limits Superfund liability under section 107 for bona fide
prospective purchasers and contiguous property owners, in addition to
clarifying the requirements necessary to establish the innocent
landowner defense under CERCLA. The Brownfields Amendments clarified
the requirement that parties purchasing potentially contaminated
property undertake ``all appropriate inquiries'' into prior ownership
and use of property prior to purchasing the property to qualify for
protection from CERCLA liability.
    The Brownfields Amendments required EPA to develop regulations
establishing standards and practices for how to conduct all appropriate
inquiries. EPA promulgated regulations that set standards and practices
for all appropriate inquiries on November 1, 2005 (70 FR 66070). In the
final regulation, EPA referenced, and recognized as compliant with the
final rule, the ASTM E1527-05 ``Standard Practice for Environmental
Site Assessments: Phase I Environmental Site Assessment Standard
Process.'' Therefore, the final rule (40 CFR part 312) allows for the
use of the ASTM E1527-05 standard to conduct all appropriate inquiries,
in lieu of following requirements included in the final rule.
    Since EPA promulgated the All Appropriate Inquiries Final Rule
setting standards and practices for the conduct of all appropriate
inquiries, ASTM International published a new Phase I site assessment
standard specifically tailored to conducting site assessments of large
tracts of rural and forestland property. This standard, ASTM E2247-08,
``Standard Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process for Forestland or Rural
Property,'' was reviewed by EPA, in response to a request for its
review by ASTM International, and determined by EPA to be compliant
with the requirements of the All Appropriate Inquiries Final Rule.
    With today's action, EPA is proposing to amend the All Appropriate
Inquiries Final Rule to allow for the use of the recently revised ASTM
standard, E2247-08, for conducting all appropriate inquiries, as
required under CERCLA for establishing the innocent landowner defense,
as well as qualifying for the bona fide prospective purchaser and
contiguous property owner liability protections.
    With today's action, EPA is proposing to establish that, parties
seeking liability relief under CERCLA's landowner liability
protections, as well as recipients of brownfields grants for conducting
site assessments, will be considered to be in compliance with the
requirements for all appropriate inquiries, as required in the
Brownfields Amendments to CERCLA, if such parties comply with the
procedures provided in the ASTM E2247-08, ``Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment
Process for Forestland or Rural Property.'' EPA determined that it is
reasonable to make this determination based upon the Agency's finding
that the ASTM E2247-08 standard is compliant with the all appropriate
inquiries regulation. The Agency notes that today's action will not
require any party to use the ASTM E2247-08 standard. Any party
conducting all appropriate inquiries to comply with the CERCLA
requirements at section 101(35)(B) for the innocent land defense, the
contiguous property owner liability protection, or the bona fide
prospective purchaser liability protection may continue to follow the
provisions of the All Appropriate Inquiries Final Rule at 40 CFR part
312 or use the ASTM E1527-05 Standard.
    In proposing today's action, the Agency is allowing for the use of
an additional recognized standard or customary business practice, to
comply with a federal regulation. Today's proposed action does not
require any person to use the newly recognized standard. Today's
proposed action merely will allow for the use of the ASTM E2247-08
``Standard Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process for Forestland or Rural
Property'' for those parties purchasing relatively large tracts of
rural property or forestlands who want to use the ASTM E2247-08
standard in lieu of the following specific requirements of the All
Appropriate Inquiries Final Rule or the ASTM E1527-05 standard.
    The Agency notes that there are no significant differences between
the regulatory requirements and the two ASTM standards. To facilitate
an understanding of the slight differences between the All Appropriate
Inquiries Final Rule, the ASTM E1527-05 Phase I Environmental Site
Assessment Standard and the ASTM E2247-08 ``Standard Practice for
Environmental Site Assessments: Phase I Environmental Site Assessment
Process for Forestland or Rural Property,'' as well as the
applicability of the E2247-08 standard for certain types of properties,
EPA developed, and placed in the docket for today's proposed action,
the document ``Comparison of All Appropriate Inquiries Regulation and
ASTM E2247-08 Phase I Environmental Site Assessment Process or
Forestland or Rural Property.'' The document provides a cross walk
between the federal regulation and the two ASTM standards.
    By proposing today's action, EPA is fulfilling the intent and
requirements of the National Technology Transfer and Advancement Act
(NTTAA).

III. This Action

    EPA is proposing this action because the Agency wants to provide
additional flexibility for brownfields grant recipients or other
entities that may benefit from the use of the ASTM E2247-08 standard.
We believe that today's proposed action will allow for the use of a
tailored standard developed by a recognized standards developing
organization and that was reviewed by EPA and determined to be
equivalent to the Agency's final rule. Today's action does not disallow
the use of the previously recognized standard (ASTM E1527-05) and it
will not alter the requirements of the previously promulgated final
rule. In addition, today's proposal potentially will increase
flexibility for some parties who may make use of the new standard,
without placing any additional burden on those parties who prefer to
use either the ASTM E1527-05 standard or follow the requirements of the
All Appropriate Inquiries Final Rule when conducting all appropriate
inquiries.

IV. Administrative Requirements

A. Executive Order 12866: Regulatory Planning and Review

    This proposed action is not a ``significant regulatory action''
under the terms of Executive Order (EO) 12866, entitled ``Regulatory
Planning and Review'' (58 FR 51735 (October 4, 1993)) and is therefore
not subject to review by the Office of Management and Budget under the
EO.

B. Paperwork Reduction Act

    This proposed action includes no information collection
requirements and therefore no associated burdens. The proposed action
will not result in any change to the current regulation other than to
allow for the use of an additional standard.

C. Regulatory Flexibility Act

    Today's proposed action is not subject to the Regulatory
Flexibility Act (RFA), which generally requires an agency to prepare a
regulatory flexibility analysis for any rule that will have a
significant economic impact on a substantial number of small entities.
(5 U.S.C. 601 et seq.). Although the proposed rule is subject to the
APA, the Agency has invoked the ``good cause'' exemption under 5 U.S.C.
553(b), therefore it is not subject to the notice and comment
requirements under the APA or any other statute. Today's action does
not change the current regulatory status quo and it has no economic
impact. Therefore, it is not subject to the regulatory flexibility
provisions of the Regulatory Flexibility Act.

D. Unfunded Mandates Reform Act

    This proposed rule does not contain a Federal mandate that may
result in expenditures of $100 million or more for State, local, and
tribal governments, in the aggregate, or the private sector in any one
year. This action merely proposes to allow for the use of a voluntary
consensus standard. This action would not require the newly recognized
standard be used by any entity. The proposed rule includes no new
regulatory requirements and will result in no additional burden to any
entity. Thus, this proposed rule is not subject to the requirements of
sections 202 or 205 of the Unfunded Mandates Reform Act. This proposed
rule is also not subject to the requirements of section 203 of UMRA
because it contains no regulatory requirements that might significantly
or uniquely affect small governments. This proposed action imposes no
enforceable duty on any State, local or tribal governments or the
private sector.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255 (August
10, 1999)), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the EO to
include regulations that have ``substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government.''
    This proposed rule does not have federalism implications. It will
not result in substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government, as specified in EO 13132. Thus, EO 13132 does not apply to
this rule.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implications, as specified in EO
13175 (65 FR 67249, (November 9, 2000)). Today's action does not change
any current regulatory requirements and therefore does not impose any
impacts upon tribal entities. Thus, EO 13175 does not apply to this
action.

G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks

    This action is not subject to EO 13045 (62 F.R. 19885, (April 23,
1997)) because it is not economically significant as defined in EO
12866, and EPA interprets EO 13045 (62 FR 19885, (April 23, 1997)) as
applying only to those regulatory actions that concern health or safety
risks, such that the analysis required under section 5-501 of the EO
has the potential to influence the regulation. This action is not
subject to EO 13045 because it does not establish an environmental
standard intended to mitigate health or safety risks.

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355
(May 22, 2001)), because it is not a significant regulatory action
under EO 12866.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law No. 104-113, 12(d) (15 U.S.C. 272
note) directs EPA to use voluntary consensus standards in its
regulatory activities unless to do so would be inconsistent with
applicable law or otherwise impractical. Voluntary consensus standards
are technical standards (e.g., materials specifications, test methods,
sampling procedures, and business practices) that are developed or
adopted by voluntary consensus standards bodies. NTTAA directs EPA to
provide Congress, through OMB, explanations when the Agency decides not
to use available and applicable voluntary consensus standards.
    This action does involve technical standards. Therefore, the
requirements of section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272) apply. The NTTAA was signed
into law on March 7, 1996 and, among other things, directs the National
Institute of Standards and Technology (NIST) to bring together federal
agencies as well as state and local governments to achieve greater
reliance on voluntary standards and decreased dependence on in-house
standards. It states that use of such standards, whenever practicable
and appropriate, is intended to achieve the following goals: (a)
Eliminate the cost to the government of developing its own standards
and decrease the cost of goods procured and the burden of complying
with agency regulation; (b) provide incentives and opportunities to
establish standards that serve national needs; (c) encourage long-term
growth for U.S. enterprises and promote efficiency and economic
competition through harmonization of standards; and (d) further the
policy of reliance upon the private sector to supply Government needs
for goods and services. The Act requires that federal agencies adopt
private sector standards, particularly those developed by standards
developing organizations (SDOs), wherever possible in lieu of creating
proprietary, non-consensus standards.
    Today's proposed action is compliant with the spirit and
requirements of the NTTAA. Today's proposed action allows for the use
of the ASTM International standard known as Standard E2247-08 and
entitled ``Standard Practice for Environmental Site Assessments: Phase
I Environmental Site Assessment Process for Forestland or Rural
Property.''

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    EPA has determined that this proposed rule will not have
disproportionately high and adverse

human health or environmental effects on minority or low-income
populations because it does not affect the level of protection provided
to human health or the environment. Today's proposed action will not
change any regulatory requirements or impose any new requirements.

List of Subjects in 40 CFR Part 312

    Administrative practice and procedure, Hazardous substances.

    Dated: December 17, 2008.
Stephen L. Johnson,
Administrator.
[FR Doc. E8-30537 Filed 12-22-08; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 54 (Tuesday, March 20, 2018)]
[Rules and Regulations]
[Pages 12113-12114]
[FR Doc No: 2018-05586]

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

========================================================================

Federal Register / Vol. 83, No. 54 / Tuesday, March 20, 2018 / Rules
and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 73

[Docket No. FAA-2018-0102; Airspace Docket No. 17-AWP-20]

Modification to Restricted Areas R-2501E, R-2501N, R-2501W, and
R-2501S; Bullion Mountains, CA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule, technical amendment.

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SUMMARY: This action amends the internal subdivision of R-2501 at
United States Marine Corps (USMC) Air Ground Combat Center, Twentynine
Palms, CA. Restricted Areas R-2501E, R-2501N, R-2501S, and R-2501W;
Bullion Mountains, CA will be deleted and reestablished as restricted
areas R-2501A, R-2501B, R-2501C, R-2501D, and R-2501E. This action does
not alter the overall vertical or lateral boundary of the restricted
area complex, designated altitudes, times of designation, controlling
agency, using agency, or activities conducted within the Twentynine
Palms complex.

DATES: Effective date 0901 UTC, May 24, 2018.

FOR FURTHER INFORMATION CONTACT: Kenneth Ready, Airspace Policy Group,
Office of Airspace Services, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it removes restricted areas R-2501E, R-2501N, R-2501S, and
R-2501W; Bullion Mountains, CA and realigns the internal boundaries of
the Twentynine Palms Complex to restricted areas R-2501A, R-2501B, R-
2501C, R-2501D, and R-2501E; Bullion Mountains, CA.

Background

    In January 2015, a Special Use Airspace (SUA) review team comprised
of members from the FAA and the USMC convened for the purpose of
evaluating the safety and efficiency of R-2501 as an integral part of
the National Airspace System (NAS). The team recognized that R-2501 is
situated in a highly dynamic and increasingly strategic area within the
NAS due to its close proximity to multiple large capacity terminal
areas in Southern California, numerous arrival and departure routings,
and expected future enhancements such as METROPLEX procedures to
promote efficiency.
    Although it was the consensus of the Team for the retention of R-
2501, there was also agreement that improvements to the scheduling and
coordination processes must be made to enhance efficiency to the NAS
and allow more frequent access to non-participating aircraft while
maintaining the availability of R-2501 to meet mission requirements.
Accordingly, a functional working group was convened from team members
to collaboratively identify where efficiencies and improvements could
be made in meeting these objectives.
    One major potential improvement decided upon was to redesign the
internal subdivisions of R-2501 from their current ``puzzle piece''
depiction to reflect a more layered configuration oriented along a
northwest-southeast axis without actually changing the existing
peripheral boundary of the restricted area. Thus, the aggregate
geographical footprint of R-2501 will remain unchanged, while only the
internal sectorization is altered. After several negotiations between
the FAA and USMC, a final prototype was agreed on and placed into
operational use in July 2017 through an update to the joint-use Letter
of Procedure between Los Angeles Air Route Traffic Control Center
(ARTCC) and USMC. Immediate and continued feedback has been positive
from all concerned and the FAA is taking action to legally change the
existing internal boundaries of R-2501N, R-2501E, R-2501S, R-2501W to
reflect the new boundaries of R-2501A, R-2501B, R-2501C, R-2501D, and
R-2501E. The internal alterations improve airspace efficiency by better
compartmentalizing the cumulative impact to the NAS and thus enhance
joint-use procedures.

The Rule

    This action amends 14 CFR part 73 by removing restricted areas R-
2501N, R-2501E, R-2501S, R-2501W and establishing R-2501A, R-2501B, R-
2501C, R-2501D, and R-2501E; Bullion Mountains, CA. This action does
not alter the overall outer vertical or lateral boundary of the
Twentynine Palms complex. The FAA is taking this internal boundary
realignment action to allow critical commercial air routes into the Los
Angeles basin without impacting training at USMC Air Ground Combat
Center, Twentynine Palms, CA.
    This is an administrative change that does not alter the
boundaries, designated altitudes, or activities conducted within the
restricted areas; therefore, notice and public procedure under 5 U.S.C.
553(b) are unnecessary.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that only affects air traffic procedures
and air navigation, it is certified that this rule, when promulgated,
does not have a significant economic impact on a substantial number of
small entities under the criteria of the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action of amending the internal
subdivision of certain Restricted Ares within the Twentynine Palms
complex, qualifies for categorical exclusion under the National
Environmental Policy Act and in accordance with FAA Order 1050.1F,
Environmental Impacts: Policies and Procedures, paragraph 5-6.5.d,
``Modification of the technical description of special use airspace
(SUA) that does not alter the dimensions, altitudes, or times of
designation of the airspace (such as changes in designation of the
controlling or using agency, or correction of typographical errors).''
This airspace action is an administrative change to the internal
subdivision of Restricted Areas within the Twentynine Palms complex. It
does not alter the dimensions, altitudes, time of designation, or use
of the airspace. Therefore, this airspace action is not expected to
result in any significant environmental impacts. In accordance with FAA
Order 1050.1F, paragraph 5-2 regarding Extraordinary Circumstances,
this action has been reviewed for factors and circumstances in which a
normally categorically excluded action may have a significant
environmental impact requiring further analysis, and it is determined
that no extraordinary circumstances exist that warrant preparation of
an environmental assessment.

List of Subjects in 14 CFR Part 73

    Airspace, Prohibited areas, Restricted areas.

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 73 as follows:

PART 73--SPECIAL USE AIRSPACE

0
1. The authority citation for part 73 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  73.25   [Amended]

0
2. Section 73.25 is amended as follows:

R-2501E Bullion Mountains, CA [Removed]

R-2501N Bullion Mountains, CA [Removed]

R-2501S Bullion Mountains, CA [Removed]

R-2501W Bullion Mountains, CA [Removed]

R-2501A Bullion Mountains, CA [New]

    Boundaries. Beginning at lat. 34[deg]43'00 N, long.
116[deg]26'23'' W; to lat. 34[deg]43'00'' N, long. 116[deg]17'03''
W; to lat. 34[deg]39'24'' N, long. 116[deg]29'19'' W; to lat.
34[deg]40'30'' N, long. 116[deg]29'43'' W; to the point of
beginning.
    Designated altitudes. Unlimited.
    Time of designation. Continuous.
    Controlling agency. FAA, Los Angeles ARTCC.
    Using agency. Commanding General Marine Corps Base, Twentynine
Palms, CA.

R-2501B Bullion Mountains, CA [New]

    Boundaries. Beginning at lat. 34[deg]39'24'' N, long.
116[deg]29'19'' W; to lat. 34[deg]43'00'' N, long. 116[deg]17'03''
W; to lat. 34[deg]41'15'' N, long. 116[deg]04'33'' W; to lat.
34[deg]41'00'' N, long.116[deg]03'03'' W; to lat. 34[deg]31'30'' N,
long. 116[deg]26'48'' W; to lat. 34[deg]36'00'' N, long.
116[deg]28'03'' W; to the point of beginning.
    Designated altitudes. Unlimited.
    Time of designation. Continuous.
    Controlling agency. FAA, Los Angeles ARTCC.
    Using agency. Commanding General, Marine Corps Base, Twentynine
Palms, CA.

R-2501C Bullion Mountains, CA [New]

    Boundaries. Beginning at lat. 34[deg]31'30'' N, long.
116[deg]26'48'' W; to lat. 34[deg]41'00'' N, long. 116[deg]03'03''
W; to lat. 34[deg]35'30'' N, long. 115[deg]58'03'' W; to lat.
34[deg]34'40'' N, long.115[deg]54'58'' W.; to lat. 34[deg]33'41'' N,
long. 115[deg]50'24'' W; to lat. 34[deg]21'35'' N, long.
116[deg]21'38'' W; to lat. 34[deg]30'00'' N, long. 116[deg]26'23''
W; to the point of beginning.
    Designated altitudes. Unlimited.
    Time of designation. Continuous.
    Controlling agency. FAA, Los Angeles ARTCC.
    Using agency. Commanding General, Marine Corps Base, Twentynine
Palms, CA.

R-2501D Bullion Mountains, CA [New]

    Boundaries. Beginning at lat. 34[deg]21'35'' N, long.
116[deg]21'38'' W; to lat. 34[deg]33'41'' N, long. 115[deg]50'24''
W; to lat. 34[deg]33'00'' N, long. 115[deg]47'03'' W; to lat.
34[deg]25'00'' N, long.115[deg]47'03'' W; to lat. 34[deg]25'00'' N,
long. 115[deg]44'03'' W; to lat. 34[deg]17'00'' N, long.
115[deg]44'03'' W; to lat. 34[deg]14'01'' N, long. 115[deg]59'00''
W; to lat. 34[deg]14'00'' N, long. 116[deg]17'03'' W; to lat.
34[deg]19'30'' N, long. 116[deg]20'29'' W; to the point of
beginning.
    Designated altitudes. Unlimited.
    Time of designation. Continuous.
    Controlling agency. FAA, Los Angeles ARTCC.
    Using agency. Commanding General, Marine Corps Base, Twentynine
Palms, CA.

R-2501E Bullion Mountains, CA [New]

    Boundaries. Beginning at lat. 34[deg]17'00'' N, long.
115[deg]44'03'' W; to lat. 34[deg]14'00'' N, long. 115[deg]44'03''
W; to lat. 34[deg]14'01'' N, long. 115[deg]59'00'' W; to the point
of beginning.
    Designated altitudes. Unlimited.
    Time of designation. Continuous.
    Controlling agency. FAA, Los Angeles ARTCC.
    Using agency. Commanding General, Marine Corps Base, Twentynine
Palms, CA.
* * * * *

    Issued in Washington, DC, on March 12, 2018.
Rodger A. Dean, Jr.,
Manager, Airspace Policy Group.
[FR Doc. 2018-05586 Filed 3-19-18; 8:45 am]
BILLING CODE 4910-13-P


UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on January 31, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2004-19346

________________________________________________________________________
_________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Joint Application of   Continental Airlines, Inc. and Czech Airlines
    filed   10/7/04  for:

XX  Exemption for Continental Airlines under 49 U.S.C. 40109 to provide
the following service:

Scheduled foreign air transportation of persons, property, and mail
between any point or points in the United States and any point or points
in the Czech Republic directly and via intermediate points, and beyond
the Czech Republic to any point or points in third countries Continental
is authorized to serve by certificate or exemption, and to integrate
this authority with its existing certificate and exemption authority.
Initially the carrier intends to use this authority pursuant to a
code-share arrangement with Czech Airlines but seeks broad authority to
operate its own flights serving the Czech Republic and other points, as
well as offering code-share service.

XX  Statement of authorization for Continental Airlines under 14 CFR
Part 212 to:

Display the “OK” code of Czech Airlines on flights operated by
Continental Airlines between (1) points in the United States; (2) points
in the United States and points in the Czech Republic (either nonstop or
via intermediate points in third countries), (3) points in the United
States and points in third countries, and (4) points in the Czech
Republic and points in third countries.

XX  Statement of authorization for Czech Airlines under 14 CFR Part 212
to:

Display the “CO” code of Continental Airlines on flights operated by
Czech Airlines between (1) points in the Czech Republic; (2) points in
the Czech Republic and points in the United States (either nonstop or
via intermediate points in third countries), (3) points in the Czech
Republic and points in third countries, and (4) points in the United
States and points in third countries.

Applicant reps: R. Bruce Keiner, Jr.<PHONE_NUMBER>  DOT Analyst: Gerald
Caolo<PHONE_NUMBER>

                         (Continental)

                         Allan I. Mendelson<PHONE_NUMBER>

                         (Czech Airlines)

D I S P O S I T I O N

XX  Granted  (subject to conditions, see below)

The above action with respect to Continental’s exemption authority was
effective when taken: January 31, 2005, through   January 31, 2007

The statements of authorization granted to Continental and Czech were
effective when taken:  January 31, 2005, and will remain in effect
indefinitely, subject to the conditions listed below.

Action taken by:   Paul L. Gretch, Director

		    Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and the Czech Republic.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  XX Continental’s
certificates of public convenience and necessity

	   XX  Standard exemption conditions (Attachment B)

___________________________________________________

Conditions:

Conditions: The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority requested should be construed as
conferring upon Continental rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless the carrier notifies the Department of its intent to
serve that market and unless and until the Department has completed any
necessary carrier selection procedures to determine which carriers(s)
should be authorized to exercise such rights; and (b) should there be a
request by any carrier to use the limited-entry route rights that are
included in Continental’s authority by virtue of the route integration
exemption granted here, but that are not then being used by Continental,
the holding of such authority by route integration will not be
considered as providing any preference for Continental in a competitive
carrier selection proceeding to determine which carrier(s) should be
entitled to use the authority at issue.

The authority to serve intermediate and beyond points is limited to
countries with which the United States has signed open-skies agreements
and/or countries for which the carrier holds authority to serve under
certificates or exemptions issued by the Department, and for which it
holds route integration authority by virtue of either the present action
or other action of the Department.

The statements of authorization granted are subject to the following
conditions:

(a)	The statement of authorization will remain in effect only as long as
(i) Continental Airlines and Czech Airlines continue to hold the
necessary underlying authority to operate the code-share services at
issue, and (ii) the code-share agreement providing for the code-share
operations remains in effect.

(b)	Continental Airlines and/or Czech Airlines must promptly notify the
Department (Office of International Aviation) if the code-share
agreement providing for the code-share operations is no longer effective
or if the carriers decide to cease operating all or a portion of the
approved code-share services.  Such notices should be filed in Docket
OST-2004-19346.

(c) 	Continental Airlines and/or Czech Airlines must notify the
Department no later than 30 days before they begin any new code-share
service under the code-share services authorized here.  Such notice
shall identify the market(s) to be served, which carrier will be
operating the aircraft in the code-share market added, and the date on
which the service will begin.  Such notices should be filed in Docket
OST-2004-19346.

(d)	The code-sharing conducted under this authority must comply with
Part 257 and with any amendments to the Department’s regulations
concerning code-share arrangements that may be adopted.
Notwithstanding any provisions in the contract between the carriers, our
approval here is expressly conditioned upon the requirements that the
subject foreign air transportation be sold in the name of the carrier
holding out such service in the computer reservation systems and
elsewhere; and that the carrier selling such transportation (i.e., the
carrier shown on the ticket) accept responsibility for the entirety of
the code-share journey for all obligations established in its contract
of carriage with the passenger; and that the passenger liability of the
operating carrier be unaffected.  Further, the operating carrier shall
not permit the code of its U.S. air carrier code-sharing partner to be
carried on any flights that enter, depart, or transit the airspace of
any area for whose airspace the Federal Administration has issued a
flight prohibition.

(e)	The authority to operate to third countries is subject to the
condition that any service provided under the statement of authorization
shall be consistent with all applicable agreements between the United
States and the foreign countries involved.  Furthermore, (i) nothing in
the award of this blanket statement of authorization should be construed
as conferring upon Continental rights (including code-share, fifth
freedom intermediate and/or beyond rights) to serve markets where U.S.
carrier entry is limited unless Continental notifies the Department of
its intent to serve such a market and unless and until the Department
has completed any necessary carrier selection procedures to determine
which carrier(s) should be authorized to exercise such rights; and (ii)
should there be a request by any carrier to use the limited-entry route
rights that are included in Continental’s authority by virtue of the
blanket statement of authorization granted here, but that are not then
being used by Continental, the holding of such authority will not be
considered as providing any preference for Continental in a competitive
carrier selection proceeding to determine which carrier(s) should be
entitled to use the authority at issue.

(f)	The authority granted here is specifically conditioned so that
neither Continental Airlines nor Czech Airlines shall give any force or
effect to any contractual provisions between themselves that are
contrary to these conditions.

___________________________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found Continental Airlines qualified to
provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted, we denied all requests in the referenced
Docket.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp

Attachment A

Proposed Initial Routes

“CO” code on flights operated by Czech Airlines

Prague	Amsterdam, Netherlands

	Berlin, Germany

	Bratislava, Slovak Republic

	Brussels, Belgium

	Cologne, Germany

	Dusseldorf, Germany

	Frankfurt, Germany

	Hamburg, Germany

	Hanover, Germany

	Ljubljana, Slovenia

	Karlovy, Czech Republic

	Kosice, Slovak Republic

	Milan, Italy

	Munich, Germany

	New York/Newark

	Ostrava, Czech Republic

	Paris, France

	Sliac, Slovak Republic

	Split, Croatia

	Sofia, Bulgaria

	Stuttgart, Germany

	Zagreb, Croatia

“OK” code on flights operated by Continental Airlines

New York/Newark	Boston

	Chicago

	Cleveland

	Denver

	Houston

	Kansas City

	Las Vegas

	Los Angeles

	Memphis

	Miami

	New Orleans

	Omaha

	Phoenix

	Pittsburgh

	San Diego

	San Francisco

	Seattle

	Washington

Attachment B

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544.
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

									  05/2004

 Continental states in it application that the Czech code will also be
displayed on flights operated by Continental’s code-share partner,
ExpressJet Airlines, Inc. ExpressJet does not require a statement of
authorization since it only operates small aircraft as defined in
section 298.2 of the Department’s regulations (Section 212.1).  See
Attachment A for the routes Continental and Czech Airlines initially
propose to serve.

 This condition applies only with respect to flights operated under this
exemption by Continental.  It is not applicable to flights operated by
Czech Airlines on which Continental is holding out service on a
code-share basis with Czech Airlines.

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

 The notice in paragraph (c) above can be used for this notification.

 PAGE

 PAGE   5


[Federal Register Volume 77, Number 72 (Friday, April 13, 2012)]
[Notices]
[Pages 22372-22374]
[FR Doc No: 2012-8879]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66773; File No. SR-CME-2012-09]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change To Comply With Revisions to CFTC Regulations Governing
Derivatives Clearing Organizations

April 9, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 29, 2012, the Chicago Mercantile Exchange Inc. (``CME'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I and II below, which items
have been prepared primarily by CME. The Commission is publishing this
Notice and Order to solicit comments on the proposed rule change from
interested persons and to approve the proposed rule change on an
accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change

    CME proposes to amend certain of its rules to comply with pending
revisions to Commodity Futures Trading Commission (``CFTC'')
Regulations governing derivatives clearing organizations (``DCOs'').
The text of the proposed rule change is available at the CME's Web site
at http://www.cmegroup.com/market-regulation/rule-filings.html.

II. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CME included statements
concerning the purpose and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change

    CME is registered as a DCO with the CFTC and operates a substantial
business clearing futures and swaps contracts subject to the
jurisdiction of the CFTC. CME proposes to amend certain of its rules to
comply with pending changes to CFTC Regulations that require DCOs to
make corresponding rule changes. The changes that are the subject of
this filing will become effective on May 7, 2012.
1. Amendments To Comply With CFTC Regulations 39.12(a)(5)(B)
    The CFTC adopted a number of new regulations designed to implement
the core principles for DCOs in the Commodity Exchange Act (``CEA''),
as amended by the Dodd-Frank Act. Certain of these new DCO regulations
become effective on May 7, 2012, including CFTC Regulation
39.12(a)(5)(B), which provides that: ``(B) A derivatives clearing
organization shall require clearing members that are not

futures commission merchants to make the periodic financial reports
provided pursuant to paragraph (a)(5)(i) of this section available to
the Commission [CFTC] upon the Commission's [CFTC's] request or, in
lieu of imposing this requirement, a derivatives clearing organization
may provide such financial reports directly to the Commission [CFTC]
upon the Commission's [CFTC's] request.''
    In order to comply with CFTC Regulation 39.12(a)(5)(B), CME
proposes to amend CME Rule 970.B by adding new language that makes
clear that non-FCM clearing members are required to make available to
the CFTC upon request copies of financial reports required to be
submitted to the CME audit department.
2. Amendments To Comply With CFTC Regulations 39.13(h)(5)(B)-(C)
    New CFTC Regulations effective on May 7, 2012, also include CFTC
Regulation 39.13(h)(5), which requires each DCO to adopt rules that:
``(B) Ensure that it has the authority to request and obtain
information and documents from its clearing members regarding their
risk management policies, procedures, and practices, including, but not
limited to, information and documents relating to the liquidity of
their financial resources and their settlement procedures; and (C)
Require its clearing members to make information and documents
regarding their risk management policies, procedures, and practices
available to the Commission [CFTC] upon the Commission's [CFTC's]
request.''
    In order to comply with Regulation 39.13(h)(5), CME proposes to
amend CME Rule 982 and CME Rule 8F010 to make clear that clearing
members will be required upon request to make appropriate information
available regarding risk management policies, procedures, and
practices.
3. Amendments To Comply With CFTC Regulation 39.12(a)(2)(iii)
    New CFTC Regulations effective May 7, 2012, also include CFTC
Regulation 39.12(a)(2)(iii) which provides that a DCO ``shall not set
minimum capital requirements of more than $50 million for any person
that seeks to become a clearing member in order to clear swaps.'' In
order to comply with this Regulation, CME proposes to amend CME Rule
8F04 to conform it to the new standard described above. Note that CME
plans to make additional changes in the near future to the relevant
chapters in its rulebook governing interest rate swap and credit
default swap clearing member obligations and qualifications.
    CME also made two separate filings, CME Submissions 12-067 and 12-
097, with its primary regulator, the CFTC, with respect to the proposed
rule changes.
    CME believes the proposed changes are consistent with the
requirements of the Act. CME, a DCO, is required to implement the
proposed changes to comply with recent changes to CFTC regulations. CME
notes that the policies of the CEA with respect to clearing are
comparable to a number of the policies underlying the Exchange Act,
such as promoting market transparency for derivatives markets,
promoting the prompt and accurate clearance of transactions, and
protecting investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe that the proposed rule change will have any
impact or impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    CME has not solicited and does not intend to solicit comments
regarding this proposed rule change. CME has not received any
unsolicited written comments from interested parties.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
     Electronic comments may be submitted by using the
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or send an email to<EMAIL_ADDRESS>Please include
File No. SR-CME-2012-09 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street
NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CME-2012-09. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CME. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CME-2012-09 and should be
submitted on or before May 4, 2012.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    Section 19(b) of the Act \3\ directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to such
organization. The Commission finds that the proposed rule change is
consistent with the requirements of the Act, in particular the
requirements of Section 17A of the Act, and the rules and regulations
thereunder applicable to CME.\4\ Specifically, the Commission finds
that the proposed rule change is consistent with Section 17A(b)(3)(F)
of the Act which requires, among other things, that the rules of a
clearing agency be designed to assure the safeguarding of securities
and funds which are in the custody and control of the clearing agency
because the proposed rule change should allow CME to better monitor the
financial status and risk management procedures of its clearing
members.\5\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b).
    \4\ 15 U.S.C. 78q-1. In approving this proposed rule change, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    In its filing, CME requested that the Commission approve this
proposed rule change on an accelerated basis for good cause shown. CME
cites as the reason for this request CME's operation as a

DCO, which is subject to regulation by the CFTC under the CEA. This
rule change is being made according to regulations promulgated by the
CFTC, which were previously subject to notice and comment. Not
approving this request on an accelerated basis would have a significant
impact on CME's operations as a DCO.
    The Commission finds good cause for approving the proposed rule
change prior to the 30th day after the date of publication of notice in
the Federal Register because the proposed rule change allows CME to
implement the regulations of another federal regulatory agency, the
CFTC, in accordance with those regulations' effective date.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-CME-2012-09) is approved on an
accelerated basis.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-8879 Filed 4-12-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Page 62645]
[FR Doc No: 2014-24809]

-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2014-0003]

Notice of Adjustment of Minimum Project Worksheet Amount

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: FEMA gives notice that the minimum Project Worksheet Amount
under the Public Assistance program for disasters and emergencies
declared on or after October 1, 2014, will be increased.

DATES: Effective Date: October 1, 2014, and applies to major disasters
and emergencies declared on or after October 1, 2014.

FOR FURTHER INFORMATION CONTACT: William Roche, Recovery Directorate,
Federal Emergency Management Agency, 500 C Street SW., Washington, DC
20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Robert T. Stafford Disaster Relief and
Emergency Assistance Act 42 U.S.C. 5121-5207 and 44 CFR 206.202(d)(2)
provide that FEMA will annually adjust the minimum Project Worksheet
amount under the Public Assistance program to reflect changes in the
Consumer Price Index for All Urban Consumers published by the
Department of Labor.
    FEMA gives notice of an increase to $3,040 for the minimum amount
that will be approved for any Project Worksheet under the Public
Assistance program for all major disasters and emergencies declared on
or after October 1, 2014.
    FEMA bases the adjustment on an increase in the Consumer Price
Index for All Urban Consumers of 1.3 percent for the 6-month period
from February 2014 to August 2014. This is based on information
released by the Bureau of Labor Statistics at the U.S. Department of
Labor on September 17, 2014.

Catalog of Federal Domestic Assistance No. 97.036, Disaster Grants--
Public Assistance (Presidentially Declared Disasters).

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2014-24809 Filed 10-17-14; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 78, Number 100 (Thursday, May 23, 2013)]
[Notices]
[Pages 30941-30944]
[FR Doc No: 2013-12268]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 30524; File No. 812-13783]

Frank Russell Company, et al.; Notice of Application

May 17, 2013.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from section 15(a) of
the Act and rule 18f-2 under the Act, as well as from certain
disclosure requirements.

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SUMMARY:  Summary of the Application: Applicants, including an
actively-managed open-end exchange traded fund, request an order that
would permit them to enter into and materially amend subadvisory
agreements without shareholder approval and would grant relief from
certain disclosure requirements.

Applicants: Frank Russell Company (``Russell''), Russell Investment
Management Company (``RIMCo''), Russell Investment Company (``RIC''),
Russell Investment Funds (``RIF''), and Russell Exchange Traded Funds
Trust (``RET'', and together with RIC and RIF, the ``Trusts'')
(collectively, the ``Applicants'').

DATES: Filing Dates: The application was filed on June 9, 2010, and
amended on November 22, 2010, April 27, 2012, November 22, 2012, and
March 15, 2013.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on June 11, 2013, and should be accompanied by proof of service on
applicants, in the form of an affidavit or, for lawyers, a certificate
of service. Hearing requests should state the nature of the writer's
interest, the reason for the request, and the issues contested. Persons
who wish to be notified of a hearing may request notification by
writing to the Commission's Secretary.

ADDRESSES: Elizabeth M. Murphy, Secretary, U.S. Securities and Exchange
Commission, 100 F Street NE., Washington, DC 20549-1090. Applicants:
1301 Second Avenue, 18th Floor, Seattle, Washington 98101.

FOR FURTHER INFORMATION CONTACT: Barbara T. Heussler, Senior Counsel,
at<PHONE_NUMBER>, or Jennifer L. Sawin, Branch Chief, at (202) 551-
6821 (Division of Investment Management, Exemptive Applications
Office).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. RIC and RIF are organized as Massachusetts business trusts and
are registered under the Act as open-end management investment
companies. RIC is comprised of forty-two separate registered funds and
RIF is comprised of ten separate registered funds, each with its own
investment objective, policies and restrictions. RET is organized as a
Delaware statutory trust and is registered under the Act as an open-end
management investment company. RET is comprised of one separate
registered fund and twelve separate funds in registration, each with
its own investment objective, policies and restrictions.\1\
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    \1\ Applicants request relief with respect to existing or future
series of the Trusts and any other existing or future registered
open-end management investment company or series thereof that: (a)
is advised by RIMCo or an entity controlling, controlled by, or
under common control with RIMCo or its successors (each such entity,
together with RIMCo, an ``Adviser''); (b) uses the manager-of-
managers structure described in the application (``Managers of
Managers Structure''); and (c) complies with the terms and
conditions of the application (the ``Funds'' and each, individually,
a ``Fund''). Every existing registered open-end investment company
that currently intends to rely on the requested order is named as an
Applicant. For the purposes of the requested order, ``successor'' is
limited to an entity or entities that result from a reorganization
into another jurisdiction or a change in the type of business
organization. Every existing or future entity that intends to rely
on the order in the future will do so only in accordance with the
terms and conditions in the application. If the name of any Fund
contains the name of a Money Manager (as defined below), the name of
the Fund's Adviser, or a trademark or trade name that is owned or
publicly used to identify that Adviser, will precede the name of the
Money Manager.
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    2. RIMCo, a corporation organized under the laws of the State of
Washington, is registered as an investment adviser under the Investment
Advisers Act of 1940, as amended (``Advisers Act''). RIMCo serves as
the investment adviser of the Funds and RIMCo or another Adviser will
serve as investment adviser to the future Funds, in each case pursuant
to an investment advisory agreement with the Fund (each an ``Advisory
Agreement'').\2\ The Advisory Agreements have been approved (and future
Advisory Agreements will be approved) by the applicable board of
trustees of a Trust (the ``Board''),\3\ including a majority of the
trustees who are not ``interested persons,'' (as defined in section
2(a)(19) of the Act) of the applicable Trust, the applicable Fund,
RIMCo or other Adviser, or any Money Manager (as defined below) (the
``Independent Trustees'') and by shareholders in the manner required by
sections 15(a) and 15(c) of the Act and rule 18f-2 thereunder. With
respect to new Funds offered in the future, the applicable Advisory
Agreement will be approved by the Board and the initial shareholder of
the Fund in the manner required by sections 15(a) and 15(c) of the Act
and rule 18f-2 thereunder. Applicants are not seeking any exemptions
from the provisions of the

Act with respect to the Advisory Agreements.
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    \2\ Other Advisers are or will be registered as investment
advisers under the Advisers Act.
    \3\ The term ``Board'' also includes the board of trustees or
directors of a future Fund, if different.
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    3. Under the terms of an Advisory Agreement, and subject to the
authority of the applicable Board, RIMCo will provide or oversee the
provision of investment advisory and portfolio management services for
a Fund, including the development of the investment program for the
Fund all in accordance with the investment objectives, policies and
limitations of each such Fund. For the advisory services it provides to
the Funds, RIMCo receives the fee specified in the Advisory Agreements
from the Funds based on each Fund's average daily net assets. The
Advisory Agreement will permit the Adviser to: (a) Select certain money
managers that are not Affiliated Money Managers \4\ (each a
``Discretionary Money Manager'') to manage all or a portion of the
assets of the Funds pursuant to portfolio management agreements (each
agreement with a Money Manager (as defined below) a ``Portfolio
Management Agreement''); (b) select certain money managers that are not
Affiliated Money Managers (each a ``Non-Discretionary Money Manager''
and together with the Discretionary Money Managers, the ``Money
Managers'') to provide model portfolios to an Adviser pursuant to a
Portfolio Management Agreement, which such Adviser would utilize in
connection with the management of a Fund. Each Money Manager to a Fund
is, or will be, an ``investment adviser'' as defined in section
2(a)(20)(B) of the Act and registered as an investment adviser under
the Advisers Act unless not subject to such registration. An Adviser
will continuously supervise and monitor each Money Manager for
adherence to its specific strategy. An Adviser will evaluate Money
Managers, allocate assets to Discretionary Money Managers, implement
the model portfolios of Non-Discretionary Money Managers, oversee the
Money Managers, and make recommendations about the hiring, termination
and replacement of Money Managers to the applicable Board, at all times
subject to the authority of the applicable Board. A Fund's Adviser will
manage the portion of the Fund's assets that the Adviser determines not
to allocate to one or more Discretionary Money Managers, including
implementing model portfolios of Non-Discretionary Money Managers.
Assets not allocated to a Discretionary Money Manager may also include
a Fund's liquidity reserves and assets which may be managed directly by
the Adviser. The applicable Adviser will compensate each Money Manager
out of the fees that are paid to such Adviser under the Advisory
Agreement.
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    \4\ If an Adviser wishes to use money managers that would be
``affiliated persons'' (as defined in Section 2(a)(3) of the Act) of
a Trust, the Funds or of any Adviser (other than by reason of
serving as a Subadviser to the Funds) (``Affiliated Money
Manager''), shareholder approval of the Portfolio Management
Agreement with any Affiliated Money Manager will be obtained. The
requested relief will not extend to Affiliated Money Managers.
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    4. Applicants request an order to permit an Adviser, subject to the
approval of the applicable Board, including a majority of the
Independent Trustees, to enter into and materially amend Portfolio
Management Agreements with Money Managers without shareholder
approval.\5\
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    \5\ Pursuant to a prior order obtained by RIMCo, RIC, and RIF,
RIMCo has entered into Portfolio Management Agreements with certain
Money Managers to provide investment advisory services to the RIC
and RIF Funds. The relief granted pursuant to the application would
supersede the Prior Order. See In the Matter of Frank Russell
Investment Company, et al., Investment Company Act Release No. 21108
(June 2, 1995) (notice) and 21169 (June 28, 1995) (order) (``Prior
Order''). Except for Portfolio Management Agreements covered by the
Prior Order, all Portfolio Management Agreements have been approved
by the shareholders of the applicable Fund in the manner required by
section 15(a) of the Act and rule 18f-2 thereunder.
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    5. Applicants also request an order exempting them from certain
disclosure requirements described below that may require the Funds to
disclose fees paid by the Advisor to the Money Managers. An exemption
is requested to permit the Funds to disclose (as both a dollar amount
and as a percentage of each Fund's net assets) (i) the aggregate fees
paid to an Adviser and any Affiliated Money Managers, and (ii) the
aggregate fees paid to Money Managers (collectively, ``Aggregate Fee
Disclosure''). Any Fund that employs an Affiliated Money Manager will
provide separate disclosure of any fees paid to the Affiliated Money
Manager.
    6. Applicants state that the requested relief is no longer novel
insofar as the requested order seeks exemptions to include as Funds
open-end investment companies, the shares of which will be traded on
the national securities exchanges, as defined in section 2(a)(26) of
the Act (``ETFs''). Applicants note that the requested relief is
substantially identical to multimanager relief recently granted by the
Commission to other ETFs. Applicants believe that the requested relief
is equally appropriate for ETFs as for mutual funds, and that the
operations of the Funds under the requested order address the concerns
historically considered by the Commission when granting identical
relief to mutual funds. Applicants believe that similar to shareholders
of a mutual fund who may ``vote with their feet'' by redeeming their
individual shares at net asset value (``NAV'') if they do not approve
of a change in subadviser or subadvisory agreement, shareholders of a
Fund that is an ETF will be able to sell shares in the secondary market
at negotiated prices that usually closely track the relevant Fund's NAV
if they do not approve of a change. Applicants state that each Fund
that is an ETF intends to ensure that shareholders who purchase its
shares in the secondary market receive a prospectus and all of the
information that would have been provided with a proxy statement,
except for the modifications discussed below, under the Modified Notice
and Access Procedures and that Applicants' prospectus delivery
obligation is satisfied by relying on the same mechanisms currently
used by the Funds.

Applicants' Legal Analysis

    1. Section 15(a) of the Act provides, in relevant part, that it is
unlawful for any person to act as an investment adviser to a registered
investment company except pursuant to a written contract that has been
approved by a vote of a majority of the company's outstanding voting
securities. Rule 18f-2 under the Act provides that each series or class
of stock in a series investment company affected by a matter must
approve the matter if the Act requires shareholder approval.
    2. Form N-1A is the registration statement used by open-end
investment companies. Item 19(a)(3) of Form N-1A requires disclosure of
the method and amount of the investment adviser's compensation.
    3. Rule 20a-1 under the Act requires proxies solicited with respect
to an investment company to comply with Schedule 14A under the
Securities Exchange Act of 1934 (``Exchange Act''). Items 22(c)(1)(ii),
22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A, taken together,
require a proxy statement for a shareholder meeting at which the
advisory contract will be voted upon to include the ``rate of
compensation of the investment adviser,'' the ``aggregate amount of the
investment adviser's fees,'' a description of the ``terms of the
contract to be acted upon,'' and, if a change in the advisory fee is
proposed, the existing and proposed fees and the difference between the
two fees.
    4. Regulation S-X sets forth the requirements for financial
statements required to be included as part of investment company
registration statements and shareholder reports filed with the
Commission. Sections 6-

07(2)(a), (b) and (c) of Regulation S-X require that investment
companies include in their financial statements information about
investment advisory fees.
    5. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction or any class or classes of
persons, securities, or transactions from any provisions of the Act, or
from any rule thereunder, if such exemption is necessary or appropriate
in the public interest and consistent with the protection of investors
and the purposes fairly intended by the policy and provisions of the
Act. Applicants state that the requested relief meets the necessary
standards for the reasons discussed below.
    6. Applicants state that the shareholders expect the Adviser and
the applicable Board to select the Money Managers for the Funds that
they believe are best suited to achieve each Fund's investment
objective. Applicants assert that, from the perspective of the
investor, the role of the Money Managers with respect to the Funds is
substantially equivalent to the role of a traditional individual
portfolio manager for a fund that does not employ a manager-of-managers
structure. In the absence of exemptive relief from Section 15(a) of the
Act, when a new Money Manager is proposed for retention by a Fund or a
Trust on behalf of the Fund, shareholders would be required to approve
the Portfolio Management Agreement with that Money Manager. Similarly,
if an existing Portfolio Management Agreement were to be amended in any
material respect, approval by the shareholders of the Fund would be
required. In addition, a Fund would be prohibited from continuing to
retain an existing Money Manager whose Portfolio Management Agreement
had been ``assigned'' as a result of a change of control of the Money
Manager unless shareholder approval had been obtained. Applicants state
that obtaining shareholder approval would be costly and slow, and
potentially harmful to the Fund and its shareholders. Applicants also
note that the Advisory Agreement is and will remain fully subject to
the requirements of section 15(a) of the Act and rule 18f-2 under the
Act, including the requirement for shareholder voting.\6\
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    \6\ In addition, any subadvisory agreement with any Affiliated
Money Manager is subject to section 15(a) of the Act and rule 18f-2
under the Act.
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    7. If a new Money Manager is hired, the Funds will inform
shareholders of the hiring of a new Money Manager pursuant to the
following procedures (``Modified Notice and Access Procedures''): (a)
Within 90 days after a new Money Manager is hired for any Fund, that
Fund will send its shareholders either a Multi-manager Notice or a
Multi-manager Notice and Multi-manager Information Statement; \7\ and
(b) the Fund will make the Multi-manager Information Statement
available on the Web site identified in the Multi-manager Notice no
later than when the Multi-manager Notice (or Multi-manager Notice and
Multi-manager Information Statement) is first sent to shareholders, and
will maintain it on that Web site for at least 90 days. In the
circumstances described in the Application, a proxy solicitation to
approve the appointment of new Money Managers provides no more
meaningful information to shareholders than the proposed Multi-manager
Information Statement. Moreover, as indicated above, the applicable
Board would comply with the requirements of Sections 15(a) and 15(c) of
the 1940 Act before entering into or amending Portfolio Management
Agreements.
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    \7\ A ``Multi-manager Notice'' will be modeled on a Notice of
Internet Availability as defined in rule 14a-16 under the Exchange
Act, and specifically will, among other things: (a) Summarize the
relevant information regarding the new Money Manager; (b) inform
shareholders that the Multi-manager Information Statement is
available on a Web site; (c) provide the Web site address; (d) state
the time period during which the Multi-manager Information Statement
will remain available on that Web site; (e) provide instructions for
accessing and printing the Multi-manager Information Statement; and
(f) instruct the shareholder that a paper or email copy of the
Multi-manager Information Statement may be obtained, without charge,
by contacting the Funds.
    A ``Multi-manager Information Statement'' will meet the
requirements of Regulation 14C, Schedule 14C and Item 22 of Schedule
14A under the Exchange Act for an information statement, except as
modified by the requested order to permit Aggregate Fee Disclosure.
Multi-manager Information Statements will be filed electronically
with the Commission via the EDGAR system.
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    8. Applicants assert that many Money Managers use a ``posted'' rate
schedule to set their fees. Applicants state that while Money Managers
are willing to negotiate fees lower than those posted in the schedule,
they are reluctant to do so where the fees are disclosed to other
prospective and existing customers. Applicants submit that the
requested Aggregate Fee Disclosure relief will allow an Adviser to
negotiate more effectively with each Money Manager.

Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. Before a Fund may rely on the requested order, the operation of
the Fund in the manner described in the application will be approved by
a majority of the Fund's outstanding voting securities, as defined in
the Act, or in the case of a Fund whose public shareholders purchase
shares on the basis of a prospectus containing the disclosure
contemplated by condition 2 below, by the initial shareholder(s) before
offering shares of that Fund to the public.
    2. Each Fund relying on the requested order will disclose in its
prospectus the existence, substance, and effect of any order granted
pursuant to the application. Each Fund will hold itself out to the
public as utilizing the Manager of Managers Structure. The prospectus
will prominently disclose that the applicable Adviser has ultimate
responsibility (subject to oversight by the applicable Board) to
oversee the Money Managers and recommend their hiring, termination, and
replacement.
    3. Funds will inform shareholders of the hiring of a new Money
Manager within 90 days after the hiring of the new Money Manager
pursuant to the Modified Notice and Access Procedures.
    4. An Adviser will not enter into a Portfolio Management Agreement
with any Affiliated Money Manager without such agreement, including the
compensation to be paid thereunder, being approved by the shareholders
of the applicable Fund.
    5. At all times, at least a majority of each Board will be
Independent Trustees, and the nomination of new or additional
Independent Trustees will be placed within the discretion of the then-
existing Independent Trustees.
    6. Whenever a money manager change is proposed for a Fund with an
Affiliated Money Manager, the applicable Board, including a majority of
the Independent Trustees, will make a separate finding, reflected in
the applicable Board minutes, that such change is in the best interests
of the Fund and its shareholders, and does not involve a conflict of
interest from which the applicable Adviser or the Affiliated Money
Manager derives an inappropriate advantage.
    7. Independent legal counsel, as defined in rule 0-1(a)(6) under
the Act, will be engaged to represent the Independent Trustees. The
selection of such counsel will be within the discretion of the then
existing Independent Trustees.
    8. Each Adviser will provide the Board, no less frequently than
quarterly, with information about the profitability of such Adviser on
a per-Fund basis. The information will reflect the impact on
profitability of the hiring or termination of any money manager during
the applicable quarter.

    9. Whenever a money manager is hired or terminated, the applicable
Adviser will provide the applicable Board with information showing the
expected impact on the profitability of such Adviser.
    10. Each Adviser will provide general management services to each
Fund, including overall supervisory responsibility for the general
management and investment of each Fund's assets, and, subject to review
and approval of the Board, will: (a) Set each Fund's overall investment
strategies; (b) evaluate, select and recommend Money Managers to manage
all or a part of each Fund's assets and/or provide model portfolios for
the Funds; (c) in the case of Discretionary Money Managers, allocate
and, when appropriate, reallocate each Fund's assets among one or more
Money Managers; (d) monitor and evaluate the performance of Money
Managers; and (e) implement procedures reasonably designed to ensure
that the Money Managers comply with each Fund's investment objective,
policies and restrictions.
    11. No trustee or officer of a Trust or the Funds, or director,
manager or officer of an Adviser, will own, directly or indirectly
(other than through a pooled investment vehicle that is not controlled
by such person), any interest in a Money Manager, except for (a)
ownership of interests in such Adviser or any entity that controls, is
controlled by, or is under common control with such Adviser, or (b)
ownership of less than 1% of the outstanding securities of any class of
equity or debt of any publicly traded company that is either a Money
Manager or an entity that controls, is controlled by or is under common
control with a Money Manager.
    12. Each Fund will disclose in its registration statement the
Aggregate Fee Disclosure.
    13. In the event the Commission adopts a rule under the Act
providing substantially similar relief to that in the order requested
in the application, the requested order will expire on the effective
date of that rule.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12268 Filed 5-22-13; 8:45 am]
BILLING CODE 8011-01-P