[Federal Register: October 3, 2008 (Volume 73, Number 193)]
[Notices]
[Page 57696-57702]
[DOCID:fr03oc08-114]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 28419; 812-13458]

WisdomTree Asset Management, Inc. and WisdomTree Trust; Notice of
Application

September 29, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940 (``Act'') for an exemption from sections
2(a)(32), 5(a)(1) and 22(d) of the Act and rule 22c-1 under the Act,
and under sections 6(c) and 17(b) of the Act for an exemption from
section 17(a) of the Act, and under section 12(d)(1)(J) for an
exemption from sections 12(d)(1)(A) and (B) of the Act.

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Applicants: WisdomTree Asset Management, Inc. (the ``Advisor'') and
WisdomTree Trust (the ``Trust'').

Summary of Application: Applicants request an order that permits: (a)
Series of certain open-end management investment companies that utilize
active management investment strategies to issue shares (``Shares'')
redeemable in large aggregations only (``Creation Units''); (b)
secondary market transactions in Shares to occur at negotiated market
prices; (c) certain affiliated persons of the series to deposit
securities into, and receive securities from, the series in connection
with the purchase and redemption of Creation Units; and (d) certain
registered management investment companies and unit investment trusts
outside of the same group of investment companies as the series to
acquire Shares.

Filing Dates: The application was filed on December 5, 2007 and amended
on April 15, 2008 and September 26, 2008.

Hearing or Notification of Hearing: An order granting the requested
relief 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 October 24, 2008, 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: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090. Applicants, 380 Madison Avenue,
21st Floor, New York, New York 10017.

FOR FURTHER INFORMATION CONTACT: Laura J. Riegel, Senior Counsel at
(202) 551-6873, or Marilyn Mann, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Room, 100 F Street, NE., Washington, DC
20549-1520 (tel.<PHONE_NUMBER>).

Applicants' Representations

    1. The Trust is an open-end management investment company
registered under the Act and organized as a Delaware statutory trust.
The Trust will offer four new series: WisdomTree U.S. Equity Fund,
WisdomTree International Equity Fund, WisdomTree Domestic Total Return
Bond Fund, and WisdomTree International Total Return Bond
(collectively, the ``New Funds''). The New Funds may invest in equity
securities or fixed income securities traded in the U.S. or non-U.S.
markets. Applicants request that the order apply to any future series
of the Trust or of other open-end management companies that also may
invest in equity securities or fixed-income securities traded in the
U.S. or non-U.S. markets (``Future Funds''). Any Future Fund will be
(a) advised by the Advisor or an entity controlling, controlled by, or
under common control with the Advisor, and (b) comply with the terms
and conditions of the order. The New Funds and Future Funds together
are the ``Funds.'' Each Fund will operate as an actively-managed
exchange-traded fund (``ETF'').
    2. The Advisor, a Delaware corporation, is registered as an
investment adviser under the Investment Advisers Act of 1940
(``Advisers Act'') and serves as investment adviser to each Fund. The
Advisor and the Trust may retain one or

more subadvisers to the Funds (each, a ``Subadvisor''). Any Subadvisor
will be registered as an investment adviser under the Advisers Act.
ALPS Distributors, Inc., a Colorado corporation, is registered as a
broker-dealer under the Securities Exchange Act of 1934 (``Exchange
Act'') and will serve as the principal underwriter and distributor for
the Funds (``Distributor'').\1\
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    \1\ All entities that currently intend to rely on the order are
named as applicants. Any other entity that relies on the order in
the future will comply with the terms and conditions of the
application. An Investing Fund (as defined below) may rely on the
order only to invest in Funds and not in any other registered
investment company.
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    3. Shares of the Funds will be sold at a price of between $25 and
$100 per Share in Creation Units of between 50,000 and 100,000 Shares.
All orders to purchase Creation Units must be placed with the
Distributor by or through a party that has entered into an agreement
with the Trust, the Distributor and the transfer agent to the Trust
(``Authorized Participant''). An Authorized Participant must be either:
(a) A broker-dealer or other participant in the continuous net
settlement system of the National Securities Clearing Corporation
(``NSCC''), or (b) a participant in the Depository Trust Company
(``DTC,'' and such participant, ``DTC Participant''). Shares of each
Fund generally will be sold in Creation Units in exchange for an in-
kind deposit by the purchaser of a portfolio of securities designated
by the Advisor (the ``Deposit Securities''), together with the deposit
of a specified cash payment (``Cash Component''). The Cash Component is
an amount equal to the difference between (a) the net asset value
(``NAV'') per Creation Unit of the Fund and (b) the total aggregate
market value per Creation Unit of the Deposit Securities.\2\ Applicants
state that in some circumstances it may not be practicable or
convenient for a Fund to operate exclusively on an ``in-kind'' basis.
The Trust reserves the right to permit, under certain circumstances, a
purchaser of Creation Units to substitute cash in lieu of depositing
some or all of the Deposit Securities.
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    \2\ In addition to the list of names and amount of each security
constituting the current Deposit Securities, it is intended that, on
each day that a Fund is open, including as required by section 22(e)
of the Act (``Business Day''), the Cash Component effective as of
the previous Business Day, will be made available. The Exchange (as
defined below) intends to disseminate, every 15 seconds, during
regular trading hours, through the facilities of the Consolidated
Tape Association, an approximate amount per Share representing the
sum of the estimated Cash Component, plus the current value of the
Deposit Securities, on a per Share basis.
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    4. An investor purchasing a Creation Unit from a Fund will be
charged a fee (``Transaction Fee'') to prevent the dilution of the
interests of the remaining shareholders resulting from costs in
connection with the purchase of Creation Units.\3\ The maximum
Transaction Fees relevant to each Fund will be fully disclosed in the
prospectus (``Prospectus'') of such Fund and the method of calculating
these Transaction Fees will be fully disclosed in its statement of
additional information (``SAI''). All orders to purchase Creation Units
will be placed with the Distributor by or through an Authorized
Participant and it will be the Distributor's responsibility to transmit
such orders to the Trust. The Distributor also will be responsible for
delivering the Prospectus to those persons purchasing Creation Units,
and for maintaining records of both the orders placed with it and the
confirmations of acceptance furnished by it. In addition, the
Distributor will maintain a record of the instructions given to the
Trust to implement the delivery of Shares.
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    \3\ Where a Fund permits a purchaser to substitute cash in lieu
of depositing a portion of the requisite Deposit Securities, the
purchaser may be assessed a higher Transaction Fee to cover the cost
of purchasing such Deposit Securities, including brokerage costs.
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    5. Purchasers of Shares in Creation Units may hold such Shares or
may sell such Shares into the secondary market. Shares will be listed
and traded at negotiated prices on a national securities exchange as
defined in section 2(a)(26) of the Act (``Exchange''). It is expected
that one or more member firms of a listing Exchange will be designated
to act as a specialist and maintain a market for Shares on the Exchange
(the ``Specialist''), or if Nasdaq is the listing Exchange, one or more
member firms of Nasdaq will act as a market maker (``Market Maker'')
and maintain a market for Shares.\4\ Prices of Shares trading on an
Exchange will be based on the current bid/offer market. Shares sold in
the secondary market will be subject to customary brokerage commissions
and charges.
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    \4\ If Shares are listed on the Nasdaq, no particular Market
Maker will be contractually obligated to make a market in Shares,
although Nasdaq's listing requirements stipulate that at least two
Market Makers must be registered as Market Makers in Shares to
maintain the listing. Registered Market Makers are required to make
a continuous, two-sided market at all times or be subject to
regulatory sanctions.
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    6. Applicants expect that purchasers of Creation Units will include
institutional investors and arbitrageurs. The Specialist, or Market
Maker, in providing a fair and orderly secondary market for the Shares,
also may purchase Creation Units for use in its market-making
activities. Applicants expect that secondary market purchasers of
Shares will include both institutional investors and retail
investors.\5\ Applicants expect that the price at which the Shares
trade will be disciplined by arbitrage opportunities created by the
ability to continually purchase or redeem Creation Units at their NAV,
which should ensure that the Shares will not trade at a material
discount or premium in relation to their NAV.
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    \5\ Shares will be registered in book-entry form only. DTC or
its nominee will be the registered owner of all outstanding Shares.
DTC or DTC Participants will maintain records reflecting beneficial
owners of Shares.
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    7. Shares will not be individually redeemable, and owners of Shares
may acquire those Shares from a Fund, or tender such Shares for
redemption to the Fund, in Creation Units only. To redeem, an investor
will have to accumulate enough Shares to constitute a Creation Unit.
Redemption orders must be placed by or through an Authorized
Participant. An investor redeeming a Creation Unit generally will
receive (a) a portfolio of securities designated to be delivered for
Creation Unit redemptions on the date that the request for redemption
is submitted (``Fund Securities''), which may not be identical to the
Deposit Securities required to purchase Creation Units on that date,
and (b) a ``Cash Redemption Amount,'' that is cash in an amount equal
to the difference between the NAV of the Shares being redeemed and the
market value of the Fund Securities. An investor may receive the cash
equivalent of a Fund Security in certain circumstances, such as if the
investor is constrained from effecting transactions in the security by
regulation or policy. A redeeming investor will pay a Transaction Fee,
calculated in the same manner as a Transaction Fee payable in
connection with purchases of Creation Units.
    8. Neither the Trust nor any individual Fund will be marketed or
otherwise held out as an ``open-end investment company'' or a ``mutual
fund.'' Instead, each Fund will be marketed as an ``actively-managed
exchange-traded fund.'' All marketing materials that describe the
method of obtaining, buying or selling Shares, or refer to
redeemability, will prominently disclose that Shares are not
individually redeemable and that the owners of Shares may purchase or
redeem Shares from a Fund in Creation Units only. The same approach
will be followed in the SAI, shareholder reports and any marketing or
advertising materials issued or circulated in connection with the
Shares. The Funds will provide

copies of their annual and semi-annual shareholder reports to DTC
Participants for distribution to beneficial owners of Shares.
    9. The Funds' Web site will include the Prospectus and information
about the Funds that is updated on a daily basis, including the mid-
point of the bid-ask spread at the time of the calculation of NAV
(``Bid/Ask Price''). On each Business Day, before the commencement of
trading in Shares on the Exchange, each Fund will disclose the
identities and quantities of the securities (``Portfolio Securities'')
and other assets held in the Fund portfolio that will form the basis
for the Fund's calculation of NAV at the end of the Business Day.\6\
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    \6\ Applicants note that under accounting procedures followed by
the Funds, trades made on the prior Business Day (``T'') will be
booked and reflected in NAV on the current Business Day (``T + 1'').
Accordingly, the Funds will be able to disclose at the beginning of
the Business Day the portfolio that will form the basis for the NAV
calculation at the end of the Business Day.
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Applicants' Legal Analysis

    1. Applicants request an order under section 6(c) of the Act
granting an exemption from sections 2(a)(32), 5(a)(1) and 22(d) of the
Act and rule 22c-1 under the Act; and under sections 6(c) and 17(b) of
the Act granting an exemption from sections 17(a) of the Act, and under
section 12(d)(1)(J) for an exemption from sections 12(d)(1)(A) and (B)
of the Act.
    2. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction, or any class of persons,
securities or transactions, from any provision of the Act, if and to
the extent that 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.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from section 17(a) of the Act if evidence establishes that
the terms of the transaction, including the consideration to be paid or
received, are reasonable and fair and do not involve overreaching on
the part of any person concerned, and the proposed transaction is
consistent with the policies of the registered investment company and
the general provisions of the Act. Section 12(d)(1)(J) 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 provision of section 12(d)(1) if the exemption
is consistent with the public interest and the protection of investors.

Sections 5(a)(1) and 2(a)(32) of the Act

    3. Section 5(a)(1) of the Act defines an ``open-end company'' as a
management investment company that is offering for sale or has
outstanding any redeemable security of which it is the issuer. Section
2(a)(32) of the Act defines a redeemable security as any security,
other than short-term paper, under the terms of which the holder, upon
its presentation to the issuer, is entitled to receive approximately
his proportionate share of the issuer's current net assets, or the cash
equivalent. Because Shares will not be individually redeemable,
applicants request an order that would permit each Fund, as a series of
an open-end management investment company, to issue Shares that are
redeemable in Creation Units only. Applicants state that investors may
purchase Shares in Creation Units from each Fund and redeem Creation
Units from each Fund. Applicants further state that because the market
price of Shares will be disciplined by arbitrage opportunities,
investors should be able to sell Shares in the secondary market at
prices that do not vary substantially from their NAV.

Section 22(d) of the Act and Rule 22c-1 Under the Act

    4. Section 22(d) of the Act, among other things, prohibits a dealer
from selling a redeemable security that is currently being offered to
the public by or through a principal underwriter, except at a current
public offering price described in the prospectus. Rule 22c-1 under the
Act generally requires that a dealer selling, redeeming, or
repurchasing a redeemable security do so only at a price based on its
NAV. Applicants state that secondary market trading in Shares will take
place at negotiated prices, not at a current offering price described
in the Prospectus, and not at a price based on NAV. Thus, purchases and
sales of Shares in the secondary market will not comply with section
22(d) of the Act and rule 22c-1 under the Act. Applicants request an
exemption under section 6(c) from these provisions.
    5. Applicants assert that the concerns sought to be addressed by
section 22(d) of the Act and rule 22c-1 under the Act with respect to
pricing are equally satisfied by the proposed method of pricing Shares.
Applicants maintain that while there is little legislative history
regarding section 22(d), its provisions, as well as those of rule 22c-
1, appear to have been designed to (a) prevent dilution caused by
certain riskless-trading schemes by principal underwriters and contract
dealers, (b) prevent unjust discrimination or preferential treatment
among buyers resulting from sales at different prices, and (c) assure
an orderly distribution of investment company shares by eliminating
price competition from dealers offering shares at less than the
published sales price and repurchasing shares at more than the
published redemption price.
    6. Applicants believe that none of these purposes will be thwarted
by permitting Shares to trade in the secondary market at negotiated
prices. Applicants state that (a) secondary market trading in Shares
does not involve the Funds as parties and cannot result in dilution of
an investment in Shares, and (b) to the extent different prices exist
during a given trading day, or from day to day, such variances occur as
a result of third-party market forces, such as supply and demand.
Therefore, applicants assert that secondary market transactions in
Shares will not lead to discrimination or preferential treatment among
purchasers. Finally, applicants contend that the proposed distribution
system will be orderly because arbitrage activity will ensure that the
difference between the market price of Shares and their NAV remains
narrow.

Section 12(d)(1) of the Act

    7. Section 12(d)(1)(A) of the Act prohibits a registered investment
company from acquiring shares of an investment company if the
securities represent more than 3% of the total outstanding voting stock
of the acquired company, more than 5% of the total assets of the
acquiring company, or, together with the securities of any other
investment companies, more than 10% of the total assets of the
acquiring company. Section 12(d)(1)(B) of the Act prohibits a
registered open-end investment company, its principal underwriter, or
any other broker or dealer from selling its shares to another
investment company if the sale will cause the acquiring company to own
more than 3% of the acquired company's voting stock, or if the sale
will cause more than 10% of the acquired company's voting stock to be
owned by investment companies generally.
    8. Applicants request that the order permit certain investment
companies registered under the Act to acquire Shares beyond the
limitations in section 12(d)(1)(A) and permit the Funds, any principal
underwriter for the Funds, and any broker or dealer registered under
the Exchange Act (``Brokers''), to sell Shares beyond the limitations
in

section 12(d)(1)(B). Applicants request that these exemptions apply to:
(1) any Fund that is currently or subsequently part of the same ``group
of investment companies'' as the New Funds within the meaning of
section 12(d)(1)(G)(ii) of the Act as well as any principal underwriter
for the Funds and any Brokers selling Shares of a Fund to an Investing
Fund (as defined below); and (2) each management investment company or
unit investment trust registered under the Act that is not part of the
same ``group of investment companies'' as the Funds within the meaning
of section 12(d)(1)(G)(ii) of the Act and that enters into a FOF
Participation Agreement (as defined below) with a Fund (such management
investment companies are referred to herein as ``Investing Management
Companies,'' such unit investment trusts are referred to herein as
``Investing Trusts,'' and Investing Management Companies and Investing
Trusts are ``Investing Funds''). Investing Funds do not include the
Funds. Each Investing Trust will have a sponsor (``Sponsor'') and each
Investing Management Company will have an investment adviser within the
meaning of Section 2(a)(20)(A) of the Act (``Investing Fund Advisor'')
that does not control, is not controlled by or under common control
with the Advisor. Each Investing Management Company may also have one
or more investment advisers within the meaning of Section 2(a)(20)(B)
of the Act (each, an ``Investing Fund Subadvisor'').
    9. Applicants assert that the proposed transactions will not lead
to any of the abuses that section 12(d)(1) was designed to prevent.
Applicants submit that the proposed conditions to the requested relief
address the concerns underlying the limits in section 12(d)(1), which
include concerns about undue influence, excessive layering of fees and
overly complex structures.
    10. Applicants believe that neither the Investing Funds nor an
Investing Fund Affiliate would be able to exert undue influence over
the Funds.\7\ To limit the control that an Investing Fund may have over
a Fund, applicants propose a condition prohibiting the Investing Fund
Advisor or Sponsor; any person controlling, controlled by, or under
common with the Investing Fund Advisor or Sponsor; and any investment
company or issuer that would be an investment company but for sections
3(c)(1) or 3(c)(7) of the Act that is advised or sponsored by the
Investing Fund Advisor or advised or sponsored by the Sponsor, or any
person controlling, controlled by, or under common control with the
Investing Fund Advisor or Sponsor (``Investing Fund's Advisory Group'')
from controlling (individually or in the aggregate) a Fund within the
meaning of section 2(a)(9) of the Act. The same prohibition would apply
to any Investing Fund Subadvisor; any person controlling, controlled
by, or under common control with the Investing Fund Subadvisor; and any
investment company or issuer that would be an investment company but
for section 3(c)(1) or 3(c)(7) of the Act (or portion of such
investment company or issuer) advised or sponsored by the Investing
Fund Subadvisor or any person controlling, controlled by, or under
common control with the Investing Fund Subadvisor (``Investing Fund's
Subadvisory Group'').
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    \7\ An ``Investing Fund Affiliate'' is an Investing Fund
Advisor, Investing Fund Subadvisor, Sponsor, promoter, and principal
underwriter of an Investing Fund, and any person controlling,
controlled by, or under common control with any of those entities. A
``Fund Affiliate'' is an investment adviser, promoter, or principal
underwriter of a Fund, and any person controlling, controlled by, or
under common control with any of those entities.
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    11. Applicants propose other conditions to limit the potential for
undue influence over the Funds, including that no Investing Fund or
Investing Fund Affiliate (except to the extent it is acting in its
capacity as an investment adviser to a Fund) will cause a Fund to
purchase a security in any offering of securities during the existence
of any underwriting or selling syndicate of which a principal
underwriter is an Underwriting Affiliate (``Affiliated Underwriting'').
An ``Underwriting Affiliate'' is a principal underwriter in any
underwriting or selling syndicate that is an officer, director, member
of an advisory board, Investing Fund Advisor, Investing Fund
Subadvisor, employee or Sponsor of an Investing Fund, or a person of
which any such officer, director, member of an advisory board,
Investing Fund Advisor, Investing Fund Subadvisor, employee, or Sponsor
is an affiliated person (except any person whose relationship to the
Fund is covered by section 10(f) of the Act is not an Underwriting
Affiliate).
    12. Applicants do not believe that the proposed arrangement will
involve excessive layering of fees. The board of directors or trustees
of each Investing Management Company, including a majority of the
disinterested directors or trustees, before approving any advisory
contract under section 15 of the Act, will be required to determine
that the advisory fees charged to the Investing Management Company are
based on services provided that will be in addition to, rather than
duplicative of, the services provided under the advisory contract(s) of
any Fund in which the Investing Management Company may invest. In
addition, the Investing Fund Advisor, trustee of an Investing Trust
(``Trustee'') or Sponsor, as applicable, will waive fees otherwise
payable to it by the Investing Fund in an amount at least equal to any
compensation received from a Fund by the Investing Fund Advisor,
Trustee or Sponsor, or an affiliated person of the Investing Fund
Advisor, Trustee or Sponsor (other than any advisory fees), in
connection with the investment by the Investing Fund in the Funds.
Applicants also state that any sales charges and/or service fees
charged with respect to shares of an Investing Fund will not exceed the
limits applicable to a fund of funds set forth in Conduct Rule 2830 of
the NASD (``Rule 2830'').
    13. Applicants submit that the proposed arrangement will not create
an overly complex fund structure. Applicants note that a Fund will be
prohibited from acquiring securities of any investment company, or of
any company relying on section 3(c)(1) or 3(c)(7) of the Act, in excess
of the limits contained in section 12(d)(1)(A) of the Act.
    14. To ensure that Investing Funds are aware of the terms and
conditions of the requested order, the Investing Funds must enter into
an agreement with the respective Funds (``FOF Participation
Agreement''). The FOF Participation Agreement will include an
acknowledgement from the Investing Fund that it may rely on the order
only to invest in the Funds and not in any other investment company.
The FOF Participation Agreement will further require any Investing Fund
that exceeds the 5% or 10% limitation in section 12(d)(1)(A)(ii) or
(iii), respectively, to disclose in its Prospectus that it may invest
in ETFs and disclose, in ``plain English,'' in its Prospectus the
unique characteristics of the Investing Funds, including but not
limited to the expense structure and any additional expenses of
investing in investment companies.

Section 17(a) of the Act

    15. Section 17(a) of the Act generally prohibits an affiliated
person of a registered investment company, or an affiliated person of
such a person (``second tier affiliate''), from selling any security to
or purchasing any security from the company. Section 2(a)(3) of the Act
defines ``affiliated person'' to include any person directly or
indirectly owning, controlling, or holding with power to vote 5% or
more of the outstanding voting securities of the

other person and any person directly or indirectly controlling,
controlled by, or under common control with, the other person. Section
2(a)(9) of the Act provides that a control relationship will be
presumed where one person owns more than 25% of another person's voting
securities. The Funds may be deemed to be controlled by the Advisor or
an entity controlling, controlled by or under common control with the
Advisor and hence affiliated persons of each other. In addition, the
Funds may be deemed to be under common control with any other
registered investment company (or series thereof) advised by the
Advisor or an entity controlling, controlled by or under common control
with the Advisor (an ``Affiliated Fund'').\8\
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    \8\ Applicants acknowledge that the receipt of compensation by
(a) an affiliated person of an Investing Fund, or an affiliated
person of such person, for the purchase by the Investing Fund of
Shares of a Fund of Shares of a Fund or (b) an affiliated person of
a Fund, or an affiliated person of such person, for the sale by the
Fund of Shares to an Investing Fund, is subject to section 17(e)(1)
of the Act. The FOF Participation Agreement will also include this
acknowledgement.
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    16. Applicants request an exemption from section 17(a) under
sections 6(c) and 17(b), to permit in-kind purchases and redemptions by
persons that are affiliated persons or second tier affiliates of the
Funds solely by virtue of one or more of the following: (1) Holding 5%
or more, or more than 25%, of the Shares of the Trust or one or more
Funds; (2) an affiliation with a person with an ownership interest
described in (1); or (3) holding 5% or more, or more than 25%, of the
shares of one or more Affiliated Funds. Applicants also request an
exemption in order to permit each Fund to sell Shares to and redeem
Shares from, and engage in the in-kind transactions that would
accompany such sales and redemptions with, any Investing Fund of which
it is an affiliated person or second tier affiliate because of one or
more of the following: (1) The Investing Fund holds 5% or more of the
Shares of the Trust or one or more Funds; (2) an Investing Fund
described in (1) is an affiliated person of the Investing Fund; or (3)
the Investing Fund holds 5% or more of the shares of one or more
Affiliated Funds.
    17. Applicants contend that no useful purpose would be served by
prohibiting affiliated persons or second tier affiliates of a Fund from
purchasing or redeeming Creation Units through ``in-kind''
transactions. The deposit procedure for in-kind purchases and the
redemption procedure for in-kind redemptions will be the same for all
purchases and redemptions. Deposit Securities and Fund Securities will
be valued under the same objective standards applied to valuing
Portfolio Securities. Therefore, applicants state that in-kind
purchases and redemptions will afford no opportunity for the affiliated
persons and second tier affiliates described above to effect a
transaction detrimental to the other holders of Shares. Applicants also
believe that in-kind purchases and redemptions will not result in
abusive self-dealing or overreaching by these persons of the Fund.
    18. Applicants also submit that the sale of Shares to and
redemption of Shares from an Investing Fund satisfies the standards for
relief under sections 17(b) and 6(c) of the Act. Applicants note that
the consideration paid for the purchase or received for the redemption
of Shares directly from a Fund by an Investing Fund (or any other
investor) will be based on the NAV of the Shares. In addition, the
securities received or transferred by the Fund in connection with the
purchase or redemption of Shares will be valued in the same manner as
the Fund's Portfolio Securities and thus the transactions will not be
detrimental to the Investing Fund. Applicants also state that the
proposed transactions will be consistent with the policies of each
Investing Fund and Fund and with the general purposes of the Act.
Applicants state that the FOF Participation Agreement will require an
Investing Fund to represent that its ownership of Shares issued by a
Fund is consistent with the investment policies set forth in the
Investing Fund's registration statement.

Applicants' Conditions

    The applicants agree that any order of the Commission granting the
requested relief will be subject to the following conditions:

A. Actively-Managed Exchange-Traded Fund Relief

    1. Each Prospectus will clearly disclose that, for purposes of the
Act, Shares are issued by a registered investment company and that the
acquisition of Shares by investment companies and companies relying on
sections 3(c)(1) or 3(c)(7) of the Act is subject to the restrictions
of section 12(d)(1) of the Act, except as permitted by an exemptive
order that permits registered investment companies to invest in a Fund
beyond the limits in section 12(d)(1), subject to certain terms and
conditions, including that the registered investment company enter into
a FOF Participation Agreement with the Fund regarding the terms of the
investment.
    2. As long as the Funds operate in reliance on the requested order,
the Shares of the Funds will be listed on an Exchange.
    3. Neither the Trust nor any Fund will be advertised or marketed as
an open-end investment company or a mutual fund. Each Fund's Prospectus
will prominently disclose that the Fund is an actively managed
exchange-traded fund. Each Prospectus will prominently disclose that
the Shares are not individually redeemable shares and will disclose
that the owners of the Shares may acquire those Shares from the Fund
and tender those Shares for redemption to the Fund in Creation Units
only. Any advertising material that describes the purchase or sale of
Creation Units or refers to redeemability will prominently disclose
that the Shares are not individually redeemable and that owners of the
Shares may acquire those Shares from the Fund and tender those Shares
for redemption to the Fund in Creation Units only.
    4. The Web site for the Funds, which is and will be publicly
accessible at no charge, will contain the following information, on a
per Share basis, for each Fund: (a) the prior Business Day's NAV and
the Bid/Ask Price, and a calculation of the premium or discount of the
Bid/Ask Price against such NAV; and (b) data in chart format displaying
the frequency distribution of discounts and premiums of the daily Bid/
Ask Price against the NAV, within appropriate ranges, for each of the
four previous calendar quarters (or for the life of the Fund, if
shorter).
    5. The Prospectus and annual report for each Fund will also
include: (a) the information listed in condition A.4(b), (i) in the
case of the Prospectus, for the most recently completed year (and the
most recently completed quarter or quarters, as applicable) and (ii) in
the case of the annual report, for the immediately preceding five years
(or for the life of the Fund, if shorter), and (b) calculated on a per
Share basis for one-, five- and ten-year periods (or for the life of
the Fund, if shorter), the cumulative total return and the average
annual total return based on NAV and Bid/Ask Price.
    6. On each Business Day, before commencement of trading in Shares
on the Exchange, the Fund will disclose on its Web site the identities
and quantities of the Portfolio Securities and other assets held by the
Fund that will form the basis for the Fund's calculation of NAV at the
end of the Business Day.
    7. The Advisor or Subadvisor, directly or indirectly, will not
cause any Authorized Participant (or any investor on whose behalf an
Authorized

Participant may transact with the Fund) to acquire any Deposit Security
for the Fund through a transaction in which the Fund could not engage
directly.
    8. The requested order will expire on the effective date of any
Commission rule under the Act that provides relief permitting the
operation of actively-managed exchange-traded funds.

B. Section 12(d)(1) Relief

    1. The members of the Investing Fund's Advisory Group will not
control (individually or in the aggregate) a Fund within the meaning of
section 2(a)(9) of the Act. The members of the Investing Fund's
Subadvisory Group will not control (individually or in the aggregate) a
Fund within the meaning of section 2(a)(9) of the Act. If, as a result
of a decrease in the outstanding voting securities of a Fund, the
Investing Fund's Advisory Group or the Investing Fund's Subadvisory
Group, each in the aggregate, becomes a holder of more than 25 percent
of the outstanding voting securities of a Fund, it will vote its Shares
of the Fund in the same proportion as the vote of all other holders of
the Fund's Shares. This condition does not apply to the Investing
Fund's Subadvisory Group with respect to a Fund for which the Investing
Fund Subadvisor or a person controlling, controlled by or under common
control with the Investing Fund Subadvisor acts as the investment
adviser within the meaning of section 2(a)(20)(A) of the Act.
    2. No Investing Fund or Investing Fund Affiliate will cause any
existing or potential investment by the Investing Fund in a Fund to
influence the terms of any services or transactions between the
Investing Fund or an Investing Fund Affiliate and the Fund or a Fund
Affiliate.
    3. The board of directors or trustees of an Investing Management
Company, including a majority of the disinterested directors or
trustees, will adopt procedures reasonably designed to assure that the
Investing Fund Advisor and any Investing Fund Subadvisor are conducting
the investment program of the Investing Management Company without
taking into account any consideration received by the Investing
Management Company or an Investing Fund Affiliate from a Fund or a Fund
Affiliate in connection with any services or transactions.
    4. Once an investment by an Investing Fund in the securities of a
Fund exceeds the limit in section 12(d)(1)(A)(i) of the Act, the board
of trustees (``Board'') of a Fund, including a majority of the
disinterested Board members, will determine that any consideration paid
by the Fund to the Investing Fund or an Investing Fund Affiliate in
connection with any services or transactions: (i) Is fair and
reasonable in relation to the nature and quality of the services and
benefits received by the Fund; (ii) is within the range of
consideration that the Fund would be required to pay to another
unaffiliated entity in connection with the same services or
transactions; and (iii) does not involve overreaching on the part of
any person concerned. This condition does not apply with respect to any
services or transactions between a Fund and its investment adviser(s),
or any person controlling, controlled by or under common control with
such investment adviser(s).
    5. The Investing Fund Advisor, or Trustee or Sponsor, as
applicable, will waive fees otherwise payable to it by the Investing
Fund in an amount at least equal to any compensation (including fees
received pursuant to any plan adopted by a Fund under rule 12b-l under
the Act) received from a Fund by the Investing Fund Advisor, or Trustee
or Sponsor, or an affiliated person of the Investing Fund Advisor, or
Trustee or Sponsor, other than any advisory fees paid to the Investing
Fund Advisor, or Trustee or Sponsor, or its affiliated person by the
Fund, in connection with the investment by the Investing Fund in the
Fund. Any Investing Fund Subadvisor will waive fees otherwise payable
to the Investing Fund Subadvisor, directly or indirectly, by the
Investing Management Company in an amount at least equal to any
compensation received from a Fund by the Investing Fund Subadvisor, or
an affiliated person of the Investing Fund Subadvisor, other than any
advisory fees paid to the Investing Fund Subadvisor or its affiliated
person by the Fund, in connection with the investment by the Investing
Management Company in the Fund made at the direction of the Investing
Fund Subadvisor. In the event that the Investing Fund Subadvisor waives
fees, the benefit of the waiver will be passed through to the Investing
Management Company.
    6. No Investing Fund or Investing Fund Affiliate (except to the
extent it is acting in its capacity as an investment adviser to a Fund)
will cause a Fund to purchase a security in an Affiliated Underwriting.
    7. The Board of the Fund, including a majority of the disinterested
Board members, will adopt procedures reasonably designed to monitor any
purchases of securities by the Fund in an Affiliated Underwriting, once
an investment by an Investing Fund in the securities of the Fund
exceeds the limit of section 12(d)(1)(A)(i) of the Act, including any
purchases made directly from an Underwriting Affiliate. The Board will
review these purchases periodically, but no less frequently than
annually, to determine whether the purchases were influenced by the
investment by the Investing Fund in the Fund. The Board will consider,
among other things: (i) Whether the purchases were consistent with the
investment objectives and policies of the Fund; (ii) how the
performance of securities purchased in an Affiliated Underwriting
compares to the performance of comparable securities purchased during a
comparable period of time in underwritings other than Affiliated
Underwritings or to a benchmark such as a comparable market index; and
(iii) whether the amount of securities purchased by the Fund in
Affiliated Underwritings and the amount purchased directly from an
Underwriting Affiliate have changed significantly from prior years. The
Board will take any appropriate actions based on its review, including,
if appropriate, the institution of procedures designed to assure that
purchases of securities in Affiliated Underwritings are in the best
interest of shareholders.
    8. Each Fund will maintain and preserve permanently in an easily
accessible place a written copy of the procedures described in the
preceding condition, and any modifications to such procedures, and will
maintain and preserve for a period of not less than six years from the
end of the fiscal year in which any purchase in an Affiliated
Underwriting occurred, the first two years in an easily accessible
place, a written record of each purchase of securities in Affiliated
Underwritings once an investment by an Investing Fund in the securities
of the Fund exceeds the limit of section 12(d)(1)(A)(i) of the Act,
setting forth from whom the securities were acquired, the identity of
the underwriting syndicate's members, the terms of the purchase, and
the information or materials upon which the Board's determinations were
made.
    9. Before investing in a Fund in excess of the limits in section
12(d)(1)(A), an Investing Fund will execute a FOF Participation
Agreement with the Fund stating that their respective boards of
directors or trustees and their investment advisers, or Trustee and
Sponsor, as applicable, understand the terms and conditions of the
order, and agree to fulfill their responsibilities under the order. At
the time of its investment in shares of a Fund in excess of the limit
in section 12(d)(1)(A)(i), an Investing Fund will

notify the Fund of the investment. At such time, the Investing Fund
will also transmit to the Fund a list of the names of each Investing
Fund Affiliate and Underwriting Affiliate. The Investing Fund will
notify the Fund of any changes to the list as soon as reasonably
practicable after a change occurs. The Fund and the Investing Fund will
maintain and preserve a copy of the order, the FOF Participation
Agreement, and the list with any updated information for the duration
of the investment and for a period of not less than six years
thereafter, the first two years in an easily accessible place.
    10. Before approving any advisory contract under section 15 of the
Act, the board of directors or trustees of each Investing Management
Company, including a majority of the disinterested directors or
trustees, will find that the advisory fees charged under such contract
are based on services provided that will be in addition to, rather than
duplicative of, the services provided under the advisory contract(s) of
any Fund in which the Investing Management Company may invest. These
findings and their basis will be recorded fully in the minute books of
the appropriate Investing Management Company.
    11. Any sales charges and/or service fees charged with respect to
shares of an Investing Fund will not exceed the limits applicable to a
fund of funds as set forth in Rule 2830 of the NASD.
    12. No Fund will acquire securities of any investment company or
company relying on section 3(c)(1) or 3(c)(7) of the Act in excess of
the limits contained in section 12(d)(1)(A) of the Act.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23411 Filed 10-2-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: October 16, 2007 (Volume 72, Number 199)]
[Proposed Rules]
[Page 58598-58599]
[DOCID:fr16oc07-37]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 67

[Docket No. FEMA-B-7739]

Proposed Flood Elevation Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Proposed rule.

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

SUMMARY: Comments are requested on the proposed Base (1 percent annual-
chance) Flood Elevations (BFEs) and proposed BFE modifications for the
communities listed in the table below. The purpose of this notice is to
seek general information and comment regarding the proposed regulatory
flood elevations for the reach described by the downstream and upstream
locations in the table below. The BFEs and modified BFEs are a part of
the floodplain management measures that the community is required
either to adopt or show evidence of having in effect in order to
qualify or remain qualified for participation in the National Flood
Insurance Program (NFIP). In addition, these elevations, once
finalized, will be used by insurance agents, and others to calculate
appropriate flood insurance premium rates for new buildings and the
contents in those buildings.

DATES: Comments are to be submitted on or before January 14, 2008.

ADDRESSES: The corresponding preliminary Flood Insurance Rate Map
(FIRM) for the proposed BFEs for each community are available for
inspection at the community's map repository. The respective addresses
are listed in the table below.
    You may submit comments, identified by Docket No. FEMA-B-7739, to
William R. Blanton, Jr., Chief, Engineering Management Section,
Mitigation Directorate, Federal Emergency Management Agency, 500 C
Street, SW., Washington, DC 20472,<PHONE_NUMBER>, or (e-mail)
<EMAIL_ADDRESS>

FOR FURTHER INFORMATION CONTACT: William R. Blanton, Jr., Chief,
Engineering Management Section, Mitigation Directorate, Federal
Emergency Management Agency, 500 C Street, SW., Washington, DC 20472,
(202) 646-3151 or (e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) proposes to make determinations of BFEs and modified BFEs for
each community listed below, in accordance with section 110 of the
Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR
67.4(a).
    These proposed BFEs and modified BFEs, together with the floodplain
management criteria required by 44 CFR 60.3, are the minimum that are
required. They should not be construed to mean that the community must
change any existing ordinances that are more stringent in their
floodplain management requirements. The community may at any time enact
stricter requirements of its own, or pursuant to policies established
by other Federal, State, or regional entities. These proposed
elevations are used to meet the floodplain management requirements of
the NFIP and are also used to calculate the appropriate flood insurance
premium rates for new buildings built after these elevations are made
final, and for the contents in these buildings.
    Comments on any aspect of the Flood Insurance Study and FIRM, other
than the proposed BFEs, will be considered. A letter acknowledging
receipt of any comments will not be sent.
    Administrative Procedure Act Statement. This matter is not a
rulemaking governed by the Administrative Procedure Act (APA), 5 U.S.C.
553. FEMA publishes flood elevation determinations for notice and
comment; however, they are governed by the Flood Disaster Protection
Act of 1973, 42 U.S.C. 4105, and the National Flood Insurance Act of
1968, 42 U.S.C. 4001 et seq., and do not fall under the APA.
    National Environmental Policy Act. This proposed rule is
categorically excluded from the requirements of 44 CFR part 10,
Environmental Consideration. An environmental impact assessment has not
been prepared.
    Regulatory Flexibility Act. As flood elevation determinations are
not within the scope of the Regulatory Flexibility Act, 5 U.S.C. 601-
612, a regulatory flexibility analysis is not required.
    Executive Order 12866, Regulatory Planning and Review. This
proposed rule is not a significant regulatory action under the criteria
of section 3(f) of Executive Order 12866, as amended.
    Executive Order 13132, Federalism. This proposed rule involves no
policies

that have federalism implications under Executive Order 13132.
    Executive Order 12988, Civil Justice Reform. This proposed rule
meets the applicable standards of Executive Order 12988.

List of Subjects in 44 CFR Part 67

    Administrative practice and procedure, Flood insurance, Reporting
and recordkeeping requirements.
    Accordingly, 44 CFR part 67 is proposed to be amended as follows:

PART 67--[AMENDED]

    1. The authority citation for part 67 continues to read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376.

Sec.  67.4  [Amended]

    2. The tables published under the authority of Sec.  67.4 are
proposed to be amended as follows:

----------------------------------------------------------------------------------------------------------------
                                                                  *Elevation in feet
                                                                 (NGVD) +Elevation in
                                                                 feet (NAVD)
         Flooding source(s)            Location of referenced     Depth in feet above      Communities affected
                                             elevation                  ground
                                                              --------------------------
                                                                Effective     Modified
----------------------------------------------------------------------------------------------------------------
                             Unincorporated Areas of Richland County, South Carolina
----------------------------------------------------------------------------------------------------------------
Congaree River** (with levee).......  Approximately 2.7 miles         None         *128  Unincorporated Areas of
                                       downstream of the                                  Richland County.
                                       confluence of Gills
                                       Creek.
                                      Approximately 0.5 mile          *155         *152
                                       upstream of the CSX
                                       Transportation
                                       crossing.
Congaree River** (without levee)....  Approximately 42.2              None         *131  Unincorporated Areas of
                                       miles upstream of the                              Richland County.
                                       mouth.
                                      Approximately 2.3 miles         *149         *140
                                       upstream of the
                                       Southeastern Beltway
                                       (West Bound).
----------------------------------------------------------------------------------------------------------------
* National Geodetic Vertical Datum.
+ North American Vertical Datum.
 Depth in feet above ground.
** BFEs to be changed include the listed upstream and downstream BFEs, and all BFEs located on the stream reach
 between the two listed herein. Please check the Flood Insurance Rate Map (see below) for exact locations of all
 BFEs to be changed.

                                     Unincorporated Areas of Richland County

Maps are available for inspection at the Planning Management Director's Office, 2020 Hampton Street, Columbia,
 SC.

Send comments to William R. Blanton, Jr., Chief, Engineering Management Section, Mitigation Directorate, Federal
 Emergency Management Agency, 500 C Street, SW., Washington, DC 20472,<PHONE_NUMBER>, or (e-mail)
<EMAIL_ADDRESS>----------------------------------------------------------------------------------------------------------------

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

    Dated: October 11, 2007.
David I. Maurstad,
Federal Insurance Administrator of the National Flood Insurance
Program, Department of Homeland Security, Federal Emergency Management
Agency.
 [FR Doc. E7-20356 Filed 10-15-07; 8:45 am]

BILLING CODE 9110-12-P


"King, Heidi R."<EMAIL_ADDRESS> 12/21/2007 11:38 AM

To

Janet Cakir/RTP/USEPA/US@EPA

cc

"Johansson, Robert"<EMAIL_ADDRESS>Ron Evans/RTP/USEPA/US@EPA, Norm Possiel/RTP/USEPA/US@EPA, Pat Dolwick/RTP/USEPA/US@EPA

Subject

RE: Requested Maps of AirQuality Modeling from Ozone Final RIA - 2020 with .079 and w126 after modeled controls

Hi Janet,

Yes, it was .079 we were looking for, and I see them in the attached

slides in pink.  Thank you!

Have a great holiday,

Heidi

202 395 4551

-----Original Message-----

From<EMAIL_ADDRESS><EMAIL_ADDRESS> Sent: Friday, December 21, 2007 11:34 AM

To: King, Heidi R.

Cc: Johansson, Robert<EMAIL_ADDRESS> <EMAIL_ADDRESS><EMAIL_ADDRESS> Subject: Requested Maps of AirQuality Modeling from Ozone Final RIA -

2020 with .079 and w126 after modeled controls

Heidi,

     When we briefed you and the interagency group on the air quality

modeling results of our modeled control strategy, we recieved a request

to add .070 to our results maps.  We were also asked to provide the w126

results from the modeled control strategy.  I've attached these maps

below for you to distribute to the group.  Please let me know if you

need any further information or have any trouble with the files.

Thanks,

Janet

(See attached file: W126slide.ppt)(See attached file: 2020cc_084 & 070

for 5 NAAQS.ppt) _______________________________________

Janet F. Cakir, Ph.D.

Environmental Protection Specialist

Air Benefits Cost Group

109 TW Alexander Dr., (C439-02)

Research Triangle Park, NC 27711

Tel:<PHONE_NUMBER>

Fax:<PHONE_NUMBER>

email<EMAIL_ADDRESS>


[Federal Register: March 12, 2008 (Volume 73, Number 49)]
[Rules and Regulations]
[Page 13111-13113]
[DOCID:fr12mr08-16]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2005-22623; Directorate Identifier 2004-NM-80-AD;
Amendment 39-15418; AD 2008-06-06]
RIN 2120-AA64

Airworthiness Directives; Boeing Model 767 Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all
Boeing Model 767 airplanes. This AD requires the following actions for
the drive mechanism of the horizontal stabilizer: Repetitive detailed
inspections for discrepancies and loose ball bearings; repetitive
lubrication of the ballnut and ballscrew; repetitive measurements of
the freeplay between the ballnut and the ballscrew; and corrective
action if necessary. This AD also requires initial and repetitive
inspections of the ballscrew-to-ballnut freeplay for certain airplanes.
This AD results from a report of extensive corrosion of a ballscrew in
the drive mechanism of the horizontal stabilizer on a similar airplane
model. We are issuing this AD to prevent an undetected failure of the
primary load path for the ballscrew in the drive mechanism of the
horizontal stabilizer and subsequent wear and failure of the secondary
load path, which could lead to loss of control of the horizontal
stabilizer and consequent loss of control of the airplane.

DATES: This AD becomes effective April 16, 2008.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of April 16,
2008.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-
2207.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The address for the
Docket Office (telephone<PHONE_NUMBER>) is the Document Management
Facility, U.S. Department of Transportation, Docket Operations, M-30,
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Kelly McGuckin, Aerospace Engineer,
Systems and Equipment Branch, ANM-130S, FAA, Seattle Airplane
Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    The FAA issued a supplemental notice of proposed rulemaking (NPRM)
to amend 14 CFR part 39 to include an AD that would apply to all Boeing
Model 767 airplanes. That supplemental NPRM was published in the
Federal Register on August 21, 2007 (72 FR 46576). That supplemental
NPRM proposed to require the following actions for the drive mechanism
of the horizontal stabilizer: Repetitive detailed inspections for
discrepancies and loose ball bearings; repetitive lubrication of the
ballnut and ballscrew; repetitive measurements of the freeplay between
the ballnut and the ballscrew; and corrective action if necessary. That
supplemental NPRM also proposed to require initial and repetitive
inspections of the ballscrew-to-ballnut freeplay for certain airplanes.

Comments

    We provided the public the opportunity to participate in the
development of this AD. We have considered the comments received.

Supportive Comment

    Boeing concurs with the content of the supplemental NPRM.

Request To Allow the Use of New Tool Kits

    Japan Airlines (JAL) asks that we allow use of new tool kits
A55001-42 (the horizontal stabilizer lock equipment) and A55001-34, as
specified in the tool change bulletin (Boeing Message Number 1-
203914627-1). JAL notes that Boeing plans to revise Boeing Service
Bulletin 767-27A0194 to permit the usage of both A55001-34 and A55001-
42 tool kits.
    We acknowledge JAL's concern and we have verified with Boeing that
tool kit A55001-42 is acceptable to use when accomplishing the actions
required by the AD. Tool kit A55001-34 is identified in Boeing Service
Bulletins 767-27A0194 and 767-27A0195, both Revision 2, both dated July
13, 2006. Those service bulletins are referred to in the supplemental
NPRM as the appropriate sources of service information for
accomplishing the specified actions. Therefore, the tool kits
identified by JAL can be used when accomplishing the actions required
by the AD. No change to the AD is necessary in this regard.

Conclusion

    We have carefully reviewed the available data, including the
comments received, and determined that air safety and the public
interest require adopting the AD as proposed in the supplemental NPRM.

Costs of Compliance

    There are about 941 airplanes of the affected design in the
worldwide fleet. This AD affects about 411 airplanes of U.S. registry.
The following table provides the estimated costs for U.S.

operators to comply with this AD, per cycle.

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Number of U.S.-
       Repetitive actions           Work hours     Average labor     Cost per       registered      Fleet cost
                                                   rate per hour     airplane        airplanes
----------------------------------------------------------------------------------------------------------------
Detailed inspection.............               1             $80             $80             411         $32,880
Lubrication.....................               1              80              80             411          32,880
Freeplay measurement............               3              80             240             411          98,640
----------------------------------------------------------------------------------------------------------------

    The ballscrew-to-ballnut freeplay inspection will take about 1 work
hour per airplane, at an average labor rate of $80 per work hour. Based
on these figures, the estimated cost of this inspection on U.S.
operators is $32,880, or $80 per airplane, per inspection cycle.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. 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.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We have determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect 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.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979); and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket. See the ADDRESSES
section for a location to examine the regulatory evaluation.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The Federal Aviation Administration (FAA) amends Sec.  39.13 by
adding the following new airworthiness directive (AD):

2008-06-06 Boeing: Amendment 39-15418. Docket No. FAA-2005-22623;
Directorate Identifier 2004-NM-80-AD.

Effective Date

    (a) This AD becomes effective April 16, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to all Boeing Model 767-200, -300, -300F,
and -400ER series airplanes, certificated in any category.

Unsafe Condition

    (d) This AD was prompted by a report of extensive corrosion of a
ballscrew in the horizontal stabilizer of a similar airplane model.
We are issuing this AD to prevent an undetected failure of the
primary load path for the ballscrew in the drive mechanism of the
horizontal stabilizer and subsequent wear and failure of the
secondary load path, which could lead to loss of control of the
horizontal stabilizer and consequent loss of control of the
airplane.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

Repetitive Detailed Inspections/Lubrications/Freeplay Measurement/
Corrective Action

    (f) Do all the applicable actions, including any applicable
corrective action, specified in Work Packages 1, 2, and 3 of the
Accomplishment Instructions of Boeing Service Bulletin 767-27A0194
(for Model 767-200, -300, and -300F series airplanes) or Boeing
Service Bulletin 767-27A0195 (for Model 767-400ER series airplanes),
both Revision 1, both dated July 21, 2005; or both Revision 2, both
dated July 13, 2006; as applicable. Do the actions at the applicable
compliance time specified in Table 1 of paragraph 1.E.
``Compliance'' of the service bulletins; except, where the service
bulletins specify a compliance time relative to the original issue
date of the service bulletin, this AD requires compliance relative
to the effective date of this AD. Where the service bulletins
specify a compliance time relative to the delivery date of the
airplane, this AD requires compliance relative to the date of
issuance of the original standard airworthiness certificate or the
date of issuance of the original export certificate of
airworthiness. Do all applicable corrective actions before further
flight. Repeat the actions at the applicable repeat interval
specified in Table 1 of paragraph 1.E ``Compliance'' of the
applicable service bulletin. As of the effective date of this AD
only Revision 2 of the service bulletins may be used.

Repetitive Ballscrew-to-Ballnut Freeplay Inspections

    (g) For airplanes on which the A55001-22 lock equipment was used
to do the ballscrew-to-ballnut freeplay inspection, and the
maintenance records do not show that the tool was correctly adjusted
in accordance with Appendix A, Step 1.E.3, of Boeing Service
Bulletin 767-27A0194 or 767-27A0195, both Revision 1, both dated
July 21, 2005: Do the ballscrew-to-ballnut freeplay inspection
specified in Work Package 3 of the Accomplishment Instructions of
the applicable service bulletin, including any applicable corrective
action, at the time specified in Table 1 of paragraph 1.E.
``Compliance'' of Boeing Service Bulletin 767-27A0194 or 767-
27A0195, both Revision 2, both dated July 13, 2006, as applicable.
Do all applicable corrective actions before further flight. Repeat
the

inspection thereafter at the intervals specified in Table 1 of
paragraph 1.E ``Compliance'' of the applicable service bulletin.

Previously Accomplished Actions

    (h) For airplanes on which the drive mechanism of the horizontal
stabilizer was replaced before the effective date of this AD with a
drive mechanism that was not new or overhauled, and the detailed and
freeplay inspections were not accomplished in accordance with Boeing
Alert Service Bulletin 767-27A0194 or 767-27A0195, both dated August
21, 2003: Within 3,500 flight hours or 24 months after the effective
date of this AD, whichever is first, accomplish the inspections and
perform all applicable corrective actions before further flight in
accordance with Work Package 3 of the Accomplishment Instructions of
Boeing Service Bulletin 767-27A0194 or Boeing Service Bulletin 767-
27A0195, both Revision 1, both dated July 21, 2005; or both Revision
2, both dated July 13, 2006; as applicable. As of the effective date
of this AD only Revision 2 of the service bulletins may be used.
    (i) For Model 767 airplanes that have line numbers 002 through
175 inclusive: Accomplishing the initial inspection, applicable
corrective action, and lubrication before the effective date of this
AD in accordance with Boeing Alert Service Bulletin 767-27A0185,
dated July 10, 2003; is considered acceptable for compliance with
the applicable actions required by paragraph (f) of this AD.

    Note 1: Boeing Service Bulletins 767-27A0194 and 767-27A0195,
both Revision 2, both dated July 13, 2006, refer to the applicable
Boeing 767 Airplane Maintenance Manuals as additional sources of
service information for accomplishing the detailed inspections,
lubrications, freeplay measurements, and corrective action.

Parts Installation

    (j) As of the effective date of this AD, no person may install
on any airplane a horizontal stabilizer trim actuator unless it is
new or has been overhauled as specified in Boeing Service Bulletins
767-27A0194 and 767-27A0195, both Revision 2, both dated July 13,
2006; or has been inspected, lubricated, and measured in accordance
with paragraph (f) of this AD.

Alternative Methods of Compliance (AMOCs)

    (k)(1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested in
accordance with the procedures found in 14 CFR 39.19.
    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your appropriate principal inspector (PI) in the FAA
Flight Standards District Office (FSDO), or lacking a PI, your local
FSDO.

Material Incorporated by Reference

    (l) You must use Boeing Service Bulletin 767-27A0194, Revision
2, dated July 13, 2006; or Boeing Service Bulletin 767-27A0195,
Revision 2, dated July 13, 2006; as applicable; to perform the
actions that are required by this AD, unless the AD specifies
otherwise. The Director of the Federal Register approved the
incorporation by reference of these documents in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Contact Boeing Commercial
Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207 for a copy
of this service information. You may review copies at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington 98057-3356; or at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on February 28, 2008.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
 [FR Doc. E8-4677 Filed 3-11-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register: June 2, 2008 (Volume 73, Number 106)]
[Notices]
[Page 31523-31524]
[DOCID:fr02jn08-115]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57873; File No. SR-NASDAQ-2008-044]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change To Amend Nasdaq Rule 4420(g)

May 27, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 13, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared substantially by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons and is granting
accelerated approval to the proposed rule change.
---------------------------------------------------------------------------

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

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

    Nasdaq proposes to amend Nasdaq Rule 4420(g) for the purpose of
adding new text clarifying that securities listed under the rule are
done so pursuant to Rule 19b-4(e) of the Act.\3\ Nasdaq also proposes
to remove the maximum term limitation set forth in the rule and to
allow securities listed under the rule to be based on multiple
underlying securities. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, and
http://www.nasdaq.com.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(e).
---------------------------------------------------------------------------

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

    In its filing with the Commission, Nasdaq included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. Nasdaq 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 the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Nasdaq proposes an amendment to Nasdaq Rule 4420(g) to clarify that
Selected Equity-linked Debt Securities (``SEEDS'') listed on the Nasdaq
Global Market are listed pursuant to Rule 19b-4(e) of the Act.\4\ Rule
19b-4(e) allows self-regulatory organizations (``SROs'') to, among
other things, list and trade new derivative securities products without
going through the rule change process under Section 19(b) of the
Act.\5\ Specifically, Rule 19b-4(e) provides that the listing and
trading of derivatives securities products is not deemed a proposed
rule change under Rule 19b-4(c)(1). To qualify for this exemption from
Rule 19b-4(c)(1), an SRO must have existing, Commission-approved
trading rules, procedures, and listing standards for the product class
that would include the new derivative securities product. In addition,
the SRO must have a surveillance program for the product class.
---------------------------------------------------------------------------

    \4\ Id.
    \5\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

    Nasdaq adopted its listing rules for SEEDS in 1994,\6\ prior to the
Commission's amendment to Rule 19b-4 of the Act, which added paragraph
(e) and its exemption from the Section 19(b) rule change filing
requirement. Subsequent to the Commission's amendment of Rule 19b-4 in
1998,\7\ Nasdaq did not amend its rule relating to the listing of SEEDS
to clarify that such securities are considered derivative securities
products and, as such, may be listed and traded without submitting a
proposed rule change under Section 19(b). Nasdaq has adopted listing
rules for derivative securities products subsequent to the Commission's
adoption of the 1998 amendment to Rule 19b-4(e) that specifically note
that such listing is pursuant to Rule 19b-4(e).\8\ Accordingly, Nasdaq
is filing this rule change proposal to make clear in its rules that
SEEDS listed under Rule 4420(g) are done so pursuant to Rule 19b-4(e)
of the Act.
---------------------------------------------------------------------------

    \6\ Securities Exchange Act Release No. 34758 (September 30,
1994), 59 FR 50943 (October 6, 1994), (SR-NASD-94-49).
    \7\ Securities Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998), (File No. S7-13-98).
    \8\ See e.g., Securities Exchange Act Release No. 45920 (May 13,
2002), 67 FR 35605 (May 20, 2002) (SR-NASD-2002-45).
---------------------------------------------------------------------------

    Nasdaq is also proposing to amend 4420(g) to conform the rule to
the analogous rule of the American Stock Exchange LLC (``Amex'').\9\
Nasdaq notes that Amex requires its Equity Linked Term Notes to have
only a minimum term of one year, with no maximum term limit;\10\
however, Nasdaq limits SEEDS based on a domestic security to a term of
one to seven years, and limits SEEDS based on a non-U.S. security or
sponsored ADR to a maximum term of three years.\11\ Amex's listing
rules also allow Equity Linked Term Notes to be linked up to thirty
underlying equity securities if all of the underlying equity securities
individually satisfy the applicable listing standards. As such, Nasdaq
is proposing to allow SEEDS to be listed on up to thirty equity
securities and have only a minimum term of one year, with no maximum
term.
---------------------------------------------------------------------------

    \9\ Section 107B of the Amex Company Guide.
    \10\ Like the Amex, The New York Stock Exchange also requires
equity-linked debt securities to have only a minimum term of one
year, with no maximum term. See Paragraph 703.21 NYSE Listed Company
Manual.
    \11\ Rule 4420(g)(2)(D).

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

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) \12\ of the Act, in general, and furthers the
objectives of Section 6(b)(5),\13\ in particular, in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanisms of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. Nasdaq believes that the clarification of Nasdaq Rule 4420(g)
is needed to avoid further confusion surrounding the part of the Act
that such securities are listed. In addition, Nasdaq believes that
eliminating the maximum term of SEEDS and allowing SEEDS to be linked
to multiple securities provides issuers with flexibility to create such
securities and allows Nasdaq to compete effectively with the other
markets, while maintaining high standards and protecting investors.
Nasdaq notes that the Commission has already determined, through its
approval of the Amex rules, that linking Equity Linked Term Notes to up
to thirty underlying securities without a maximum term is consistent
with Section 6(b)(5) of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2008-044 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2008-044. This
file number should be included on the subject line if e-mail 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 inspection
and copying 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. 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-NASDAQ-2008-044 and should
be submitted on or before June 23, 2008.

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

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\14\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\15\ which
requires that the rules of an exchange be designed, among other things,
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \14\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds good cause for approving this proposal before
the 30th day after the publication of notice thereof in the Federal
Register. The proposed rule change seeks to clarify that the Exchange's
listing and trading of SEEDS is subject to Rule 19b-4(e) under the Act
and would conform the Exchange's rules to those of other exchanges.\16\
In addition, the proposed changes relating to the number of securities
that may underlie SEEDS and the term of a SEED seek to conform the
Exchange's rules to those of other exchanges that have been previously
approved by the Commission.\17\ Therefore, Commission does not believe
that this proposal raises any novel regulatory issues and believes that
accelerating approval of this proposal is appropriate and would ensure
that the Exchange's rules clearly reflect the standards for listing and
trading SEEDS and conform Nasdaq's rules to those of other exchanges
without delay.
---------------------------------------------------------------------------

    \16\ See e.g., Chicago Board Options Exchange Rule 31.5(I) and
NYSE Arca Rule 5.2(j)(2).
    \17\ See supra notes 9-10 and accompanying text.
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-NASDAQ-2008-044), be, and it
hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-12196 Filed 5-30-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 76, Number 118 (Monday, June 20, 2011)]
[Proposed Rules]
[Pages 35805-35806]
[FR Doc No: 2011-15167]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 167

[USCG-2009-0576]

Port Access Route Study: The Approaches to San Francisco

AGENCY: Coast Guard, DHS.

ACTION: Notice of availability of study results.

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SUMMARY: The Coast Guard announces the availability of a Port Access
Route Study (PARS) evaluating the continued applicability of and the
potential need for modifications to the current vessel routing in the
approaches to San Francisco. The study was completed in February, 2011.
This notice summarizes the study recommendations which include
enhancements to existing vessel routing measures.

SUPPLEMENTARY INFORMATION:
    Viewing the comments and ``Port Access Route Study Approaches to
San Francisco Bay'' February 2011. To view the comments and the PARS
San Francisco go to http://www.regulations.gov, click on the ``read
comments'' box, which will then become highlighted in blue. In the
``Keyword'' box insert ``USCG-2009-0576'' and click ``Search.'' Click
the ``Open Docket Folder'' in the ``Actions'' column. If you do not
have access to the Internet, you may view the docket online by visiting
the Docket Management Facility in Room W12-140 on the ground floor of
the Department of Transportation West Building, 1200 New Jersey Avenue,
SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays. We have an agreement with the
Department of Transportation to use the Docket Management Facility.
    Privacy Act: Anyone can search the electronic form of comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review a
Privacy Act, system of records notice regarding our public dockets in
the January 17, 2008, issue of the Federal Register (73 FR 3316).

FOR FURTHER INFORMATION CONTACT: If you have questions concerning this
notice, contact Lieutenant Lucas Mancini, Eleventh Coast Guard
District, telephone<PHONE_NUMBER>, e-mail<EMAIL_ADDRESS>If
you have questions on viewing the docket contact, Renee V. Wright,
Program Manager, Docket Operations,<PHONE_NUMBER>.
    Definitions: The following definitions should help the reader to
understand terms used throughout this document:
    Marine Environment, as defined by the Ports and Waterways Safety
Act, means the navigable waters of the United States and the land
resources therein and thereunder; the waters and fishery resources of
any area over which the United States asserts exclusive fishery
management authority; the seabed and subsoil of the Outer

Continental Shelf of the Unites States, the resources thereof and the
waters superjacent thereto; and the recreational, economic, and scenic
values of such waters and resources.
    Precautionary area means a routing measure comprising an area
within defined limits where vessels must navigate with particular
caution and within which the direction of traffic flow may be
recommended.
    Traffic lane means an area within defined limits in which one-way
traffic is established. Natural obstacles, including those forming
separation zones, may constitute a boundary.
    Traffic Separation Scheme or TSS means a routing measure aimed at
the separation of opposing streams of traffic by appropriate means and
by the establishment of traffic lanes.
    Vessel routing system means any system of one or more routes or
routing measures aimed at reducing the risk of casualties; it includes
traffic separation schemes, two-way routes, recommended tracks, areas
to be avoided, no anchoring areas, inshore traffic zones, roundabouts,
precautionary areas, and deep-water routes.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    The Coast Guard published a notice of study in the Federal Register
on December 10, 2009 (74 FR 65543), entitled ``Port Access Route Study:
Off San Francisco'' and completed the study in February, 2011.
    The study area encompassed the traffic separation scheme off San
Francisco and extended to the limit of the Coast Guard San Francisco
Vessel Traffic Service (VTS) area of responsibility in order to analyze
traffic patterns of vessels departing from or approaching the current
traffic lanes. The VTS area covers the seaward approaches within a 38
nautical mile radius of Mount Tamalpais (37[deg] 55.8'N, 122[deg]
34.6'W). The coverage area is annotated on National Oceanic and
Atmospheric Administration (NOAA) chart number 18645.
    The primary purpose of the study was to reconcile the need for safe
access routes with other reasonable waterway uses, to the extent
practical. The goal of the study was to help reduce the risk of marine
casualties and increase the efficiency of vessel traffic in the study
area. When vessels follow predictable and charted routing measures,
congestion may be reduced, and mariners may be better able to predict
where vessel interactions may occur and act accordingly. The Coast
Guard studied whether extending the traffic separation scheme would
increase the predictability of vessel movements and what the impact
might be on fishing vessels operating in the area. The study also
assessed potential impacts on the Gulf of the Farallons and Cordell
Bank National Marine Sanctuaries and the marine environment if the
traffic lanes were extended or modified. The Coast Guard announced the
notice of study in the Federal Register on December 10, 2009 (74 FR
65543), entitled ``Port Access Route Study: Off San Francisco.'' Due to
the lack of a substantive number of comments in response to the
original notice and our strong desire to engage the public in the study
process, we announced a public meeting to be held October 20, 2010 at
the Executive Inn and Suites in Oakland California. The Coast Guard
also sent out a press release to local media and news outlets to help
solicit public comment.
    The recommendations of the PARS are based in large part on the
comments received, public outreach, and consultation with other
government agencies.

Study Recommendations

    The PARS evaluated 5 separate concerns that resulted in 7
recommendations intended to improve the safety of vessel traffic in the
study area, as well as adhere to governing regulations regarding the
National Marine Sanctuaries. The actual PARS should be consulted for a
detailed explanation of each recommendation. The PARS also contains a
chartlet of the proposed changes to the TSS. It can be accessed as
described in the Viewing the comments and ``Port Access Route Study
Approaches to San Francisco Bay'' February 2011 section of this notice.
The PARS recommendations include:
     Extend the northern TSS 17nm to the northern end of the
VTS San Francisco area of responsibility.
     Add a dog leg turn in the northern TSS just below the 38th
parallel to keep vessels on a predictable path in a prime area for
fishing.
     Change the current flared configuration of the northern
TSS to a 3 mile wide approach. The 3 mile wide TSS would consist of 1
nautical mile wide lanes, separated by a 1 nautical mile wide
separation zone.
     Extend the western TSS 3nm seaward to the 200 fathom
contour at the edge of the continental shelf.
     Shift the seaward end of the outbound lane closest to the
Farallon Islands in the western TSS 3.7 nautical miles to the south. No
shift in the inbound lane of the western TSS.
     Change the current flared configuration of the western TSS
to a 3 mile wide approach. The 3 mile wide TSS would consist of 1
nautical mile wide lanes, separated by a 1 nautical mile wide
separation zone.
     Extend the southern TSS 8.5NM to the southern end of the
VTS San Francisco area of responsibility.

Conclusion

    The PARS contains 7 recommendations, which would require the
approval of the International Maritime Organization for implementation.
The Coast Guard will follow the Federal rulemaking process for
implementation of any of the proposed changes to the traffic separation
schemes. This process will also include section 7 consultations with
the National Marine Fisheries Service in accordance with the Endangered
Species Act. This will provide ample opportunity for additional
comments on proposed changes to the existing vessel routing system
through a notice of proposed rulemaking (NPRM) published in the Federal
Register.

    Dated: May 20, 2011.
J.R. Castillo,
Rear Admiral, U.S. Coast Guard, Commander, Eleventh Coast Guard
District.
[FR Doc. 2011-15167 Filed 6-17-11; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 84, Number 59 (Wednesday, March 27, 2019)]
[Notices]
[Page 11628]
[FR Doc No: 2019-05871]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2019-11]

Petition for Exemption; Summary of Petition Received; Patient
AirLift Services, Inc.

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice.

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

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Federal Aviation Regulations. The
purpose of this notice is to improve the public's awareness of, and
participation in, the FAA's exemption process. Neither publication of
this notice nor the inclusion or omission of information in the summary
is intended to affect the legal status of the petition or its final
disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before April 16, 2019.

ADDRESSES: Send comments identified by docket number FAA-2011-0324
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Linda Lane<PHONE_NUMBER>, Office of
Rulemaking, Federal Aviation Administration, 800 Independence Avenue
SW,Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on March 20, 2019.
Lirio Liu,
Executive Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2019-0324.
    Petitioner: Patient AirLift Services, Inc.
    Section(s) of 14 CFR Affected: Sec.  61.113(c).
    Description of Relief Sought: The petitioner is requesting an
extension to its relief from Sec.  61.113(c) of Title 14, Code of
Federal Regulations (14 CFR) which allows PALS to reimburse its
volunteer pilots for fuel costs incurred in conducting charitable
flights. The petitioner requests to expand its relief to include
humanitarian purposes in addition to flights for medical purposes. The
petitioner states the proposed humanitarian flights will include
transporting emergency personnel, equipment, and supplies in time of
emergency or public need.

[FR Doc. 2019-05871 Filed 3-26-19; 8:45 am]
 BILLING CODE 4910-13-P