[Federal Register Volume 79, Number 22 (Monday, February 3, 2014)]
[Notices]
[Pages 6244-6246]
[FR Doc No: 2014-02132]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71416; File No. SR-Phlx-2014-05]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Inbound
Routing of Options Orders

January 28, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 15, 2014, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to permit the Exchange to receive inbound
orders in options routed through Nasdaq Execution Services, LLC
(``NES'') from affiliated exchanges, as described in detail below.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange 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
    The purpose of the filing is to permit the receipt of inbound
orders routed from affiliated exchanges in options through NES. The
Exchange filed a proposed rule change to use NES rather than Nasdaq
Options Services LLC (``NOS'') for the outbound routing of options
orders and the Exchange also updated its equities and options rules to
reflect the use of a third party unaffiliated routing broker.\3\
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    \3\ See SR-Phlx-2014-04.
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    Now, the Exchange proposes to continue to receive orders from its
affiliated exchanges. Specifically, the Exchange proposes to receive
options orders, through NES directly from the options market of NASDAQ
OMX BX, Inc. (``BX'') \4\ as well as from The NASDAQ Options Market
(``NOM''),\5\ under the same terms and conditions as NOS currently
does. BX and NASDAQ have filed to use NES for outbound routing,\6\ as
well as to receive options orders routed from PHLX through NES.\7\
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    \4\ Securities Exchange Act Release No. 67956 (June 13, 2013),
78 FR 36810 (June 19, 2013) (SR-Phlx-2013-42).
    \5\ Securities Exchange Act Release No. 65399 (September 26,
2011), 76 FR 60955 (September 30, 2011) (SR-Phlx-2011-111). NOM is a
facility of The NASDAQ Stock Market LLC (``NASDAQ'').
    \6\ See SR-BX-2014-003 and SR-NASDAQ-2014-007.
    \7\ See SR-BX-2014-004 and SR-NASDAQ-2014-008.
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    NOS and NES are broker-dealers and members of NASDAQ, PHLX and BX.
Currently, NOS provides all options routing functions for BX Options,
PHLX, and the NOM. BX, NASDAQ, NOM, PHLX and NOS are affiliates.\8\
Accordingly, the affiliate relationship between PHLX and NOS, its
member, raises the issue of an exchange's affiliation with a member of
such exchange. Specifically, in connection with prior filings, the
Commission has expressed concern that the affiliation of an exchange
with one of its members raises the potential for unfair competitive
advantage and potential conflicts of interest between an exchange's
self-regulatory obligations and its commercial interests.\9\ Similarly,

under this proposal, the affiliate relationship between PHLX and NES
raises this issue.
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    \8\ See Securities Exchange Act Release Nos. 58324 (August 7,
2008), 73 FR 46936 (August 12, 2008) (SR-BSE-2008-02; SR-BSE-2008-
23; SR-BSE-2008-25; SR-BSECC-2008-01) (order approving NASDAQ OMX's
acquisition of BX); and 58179 (July 17, 2008), 73 FR 42874 (July 23,
2008) (order approving NASDAQ OMX's acquisition of PHLX).
    \9\ See Securities Exchange Act Release Nos. 59153 (December 23,
2008), 73 FR 80485 (December 31, 2008) (SR-NASDAQ-2008-098); and
62736 (August 17, 2010), 75 FR 51861 (August 23, 2010) (SR-NASDAQ-
2010-100). See also Securities Exchange Act Release No. 58135 (July
10, 2008), 73 FR 40898 (July 16, 2008) (SR-NASDAQ-2008-061)
(Permitting NOS to be affiliated with PHLX).
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    Recognizing that the Commission has previously expressed concern
regarding the potential for conflicts of interest in instances where a
member firm is affiliated with an exchange of which it is a member, the
Exchange previously proposed, and the Commission approved, limitations
and conditions on NOS's affiliation with the Exchange.\10\ Also
recognizing that the Commission has expressed concern regarding the
potential for conflicts of interest in instances where a member firm is
affiliated with an exchange to which it is routing orders, the Exchange
previously proposed, and the Commission approved,\11\ NOS's affiliation
with the Exchange to permit the Exchange to accept inbound orders that
NOS routes in its capacity as a facility of BX and NASDAQ, subject to
certain limitations and conditions. The Exchange now proposes to permit
PHLX to accept inbound options orders that NES (rather than NOS) routes
in its capacity as a facility of BX and NASDAQ, subject to the same
limitations that currently apply to PHLX accepting inbound orders from
BX and NOM through NOS, as follows:
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    \10\ See Securities Exchange Act Release No. 59995 (May 28,
2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32).
    \11\ See Securities Exchange Act Release No. 67956 (June 13,
2013), 77[sic] FR 36810 (June 19, 2013) (SR-Phlx-2013-42).
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     First, the Exchange and FINRA maintain a Regulatory
Contract, as well as an agreement pursuant to Rule 17d-2 under the Act
(``17d-2 Agreement'').\12\ Pursuant to the Regulatory Contract and the
17d-2 Agreement, FINRA will be allocated regulatory responsibilities to
review NES's compliance with certain Exchange rules.\13\ Pursuant to
the Regulatory Contract, however, PHLX retains ultimate responsibility
for enforcing its rules with respect to NES.
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    \12\ 17 CFR 240.17d-2.
    \13\ NES is also subject to independent oversight by FINRA, its
designated examining authority, for compliance with financial
responsibility requirements.
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     Second, FINRA will monitor NES for compliance with the
Exchange's trading rules, and will collect and maintain certain related
information.\14\
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    \14\ Pursuant to the Regulatory Contract, both FINRA and the
Exchange will collect and maintain all alerts, complaints,
investigations and enforcement actions in which NES (in its capacity
as a facility of BX and Nasdaq routing orders to PHLX) is identified
as a participant that has potentially violated applicable Commission
or Exchange rules. The Exchange and FINRA will retain these records
in an easily accessible manner in order to facilitate any potential
review conducted by the Commission's Office of Compliance
Inspections and Examinations.
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     Third, FINRA will provide a report to the Exchange's chief
regulatory officer (``CRO''), on a quarterly basis, that: (i)
Quantifies all alerts (of which FINRA is aware) that identify NES as a
participant that has potentially violated Commission or Exchange rules,
and (ii) lists all investigations that identify NES as a participant
that has potentially violated Commission or Exchange rules.
     Fourth, the Exchange has in place PHLX Rule 985(c), which
requires The NASDAQ OMX Group, Inc., as the holding company owning both
the Exchange and NES, to establish and maintain procedures and internal
controls reasonably designed to ensure that NES does not develop or
implement changes to its system, based on non-public information
obtained regarding planned changes to the Exchange's systems as a
result of its affiliation with the Exchange, until such information is
available generally to similarly situated Exchange members, in
connection with the provision of inbound order routing to the Exchange.
    By meeting the above conditions, the Exchange will have set up
mechanisms that protect the independence of the Exchange's regulatory
responsibility with respect to NES, as well as demonstrate that NES
cannot use any information advantage it may have because of its
affiliation with the Exchange.
    For several weeks, the Exchange has been working with the Financial
Regulatory Authority (``FINRA'') and The Options Clearing Corporation
(``OCC'') to secure the necessary approvals for NES to perform these
functions. The Exchange has now secured those approvals. The Exchange
seeks to complete this process and implement this proposal in January
or February.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \15\ in general, and furthers the objectives of Section
6(b)(5) of the Act \16\ in particular, in that it is designed 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, because the proposed rule change will allow the Exchange to
continue to receive inbound orders from an affiliate (NES rather than
NOS), acting in its capacity as a facility of BX and NASDAQ, in a
manner consistent with prior approvals and established protections. The
Exchange believes that these conditions establish mechanisms that
protect the independence of the Exchange's regulatory responsibility
with respect to NES, as well as ensure that NES cannot use any
information it may have because of its affiliation with the Exchange to
its advantage.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Receiving orders through NES
rather than NOS does not raise any issues of intra-market competition
because it involves inbound routing from an affiliated exchange. Nor
does it result in a burden on competition among exchanges, because
there are many competing options exchanges that provide routing
services, including through an affiliate.

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

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \17\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\18\
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    \17\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection

of investors; or (iii) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.

IV. 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 email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2014-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2014-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 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-Phlx-2014-05 and should be
submitted on or before February 24, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02132 Filed 1-31-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 75, Number 5 (Friday, January 8, 2010)]
[Proposed Rules]
[Page 1024]
[FR Doc No: X10-40108]

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Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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

Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 /
Proposed Rules

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 721

[EPA-HQ-OPPT-2008-0252; FRL-8804-3]
RIN 2070-AB27

Proposed Significant New Use Rules on Certain Chemical
Substances; Reopening of Comment Period

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule; reopening of comment period.

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SUMMARY: EPA issued a proposed rule in the Federal Register of November
6, 2009, concerning proposed significant new use rules for certain
chemical substances. EPA has received a request to extend the comment
period. This document reopens the comment period for 30 days.

DATES: Comments, identified by docket identification (ID) number EPA-
HQ-OPPT-2008-0252, must be received on or before February 8, 2010.

ADDRESSES: Follow the detailed instructions as provided under ADDRESSES
in the Federal Register document of November 6, 2009.

FOR FURTHER INFORMATION CONTACT: For general information contact: Colby
Lintner, Regulatory Coordinator, Environmental Assistance Division
(7408M), Office of Pollution Prevention and Toxics, Environmental
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; e-mail address: TSCA-
<EMAIL_ADDRESS>    For technical information contact: Jim Alwood, Chemical Control
Division (7405M), Office of Pollution Prevention and Toxics,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; e-mail
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: This document reopens the public comment
period established in the Federal Register of November 6, 2009 (74 FR
57430) (FRL-8436-8). In that document, EPA proposed significant new use
rules for certain chemical substances. EPA received a request to extend
the comment period. EPA is hereby reopening the comment period for 30
days.
    To submit comments, or access the docket, please follow the
detailed instructions as provided under ADDRESSES in the November 6,
2009 Federal Register document. If you have questions, consult the
technical person listed under FOR FURTHER INFORMATION CONTACT.

List of Subjects in 40 CFR Part 721

    Environmental protection, Chemicals, Hazardous substances,
Reporting, and recordkeeping requirements.

    Dated: December 17, 2009.
Barbara A. Cunningham,
Acting Director, Office of Pollution Prevention and Toxics.

[FR Doc. 2010-115 Filed 1-7-10; 8:45 am]
BILLING CODE 6560-50-S


[Federal Register Volume 79, Number 92 (Tuesday, May 13, 2014)]
[Notices]
[Pages 27355-27357]
[FR Doc No: 2014-10895]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72114; File No. SR-FINRA-2014-004]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving a Proposed Rule Change Relating to
Amendments to FINRA Rule 5110 (Corporate Financing Rule--Underwriting
Terms and Arrangements) As Amended

May 7, 2014.
    On January 24, 2014, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend FINRA Rule 5110 (Corporate Financing
Rule--Underwriting Terms and Arrangements). On February 4, 2014, FINRA
filed Amendment No. 1 to the proposed rule change. The proposed rule
change was published for comment in the Federal Register on February
11, 2014.\3\ The Commission received one

comment letter on the proposal.\4\ On March 31, 2014, FINRA responded
to the comment letter.\5\ This order approves the proposed rule change,
as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 71486 (February 5,
2014), 79 FR 8226 (SR-FINRA-2014-004) (``Notice'').
    \4\ See Letter from Stephen E. Roth and Susan S. Krawczyk,
Sutherland Asbill & Brennan LLP, on behalf of the Committee of
Annuity Insurers (``CAI''), Washington, District of Columbia to
Elizabeth M. Murphy, Secretary, Commission, dated March 4, 2014
(``CAI Letter'').
    \5\ See Letter from Kathryn M. Moore, Associate General Counsel,
FINRA, to Kevin O'Neill, Deputy Secretary, Commission (``FINRA
Letter'').
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I. Description of the Proposed Rule Change \6\
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    \6\ A more detailed description of the proposal is contained in
the Notice. See supra note 4.
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    FINRA Rule 5110, among other things, regulates underwriting
compensation, requires the filing of specified information in
connection with public offerings in which members will participate, and
prohibits unfair arrangements in connection with public offerings of
securities. FINRA proposes to amend the Rule's provisions regarding
unfair arrangements to: (1) Expand the circumstances under which
members and issuers may negotiate termination fees and rights of first
refusal (``ROFR''), with specified conditions; (2) exempt from the
filing requirements exchange-traded funds formed as grantor or
statutory trusts; and (3) codify the electronic filing requirement.
Termination Fees and Rights of First Refusal
    Rule 5110(f) (Unreasonable Terms and Arrangements) sets forth terms
and arrangements that, when proposed in connection with a public
offering of securities, are considered unfair and unreasonable. Rule
5110(f)(2)(D) addresses fees in connection with a public offering of
securities that is not completed according to the terms of the
agreement between the issuer and underwriter (``terminated offering'').
Specifically, Rule 5110(f)(2)(D) generally provides that it is unfair
and unreasonable for a member to arrange for the payment of any
compensation by an issuer in connection with a terminated offering
(``termination fee'' or ``tail fee''). Rule 5110(f)(2)(D) further
clarifies that this prohibition does not include compensation
negotiated and paid in connection with a separate transaction that
occurs in lieu of the proposed offering, or reimbursement of out-of-
pocket accountable expenses actually incurred by the member.\7\
Currently, Rule 5110(f)(2)(E) provides that, in the event an issuer
terminates an offering with an underwriter and subsequently consummates
a similar transaction, a termination fee may be permissible under
certain circumstances.
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    \7\ Rule 5110(f)(2)(C) prohibits payment of commissions or
reimbursement of expenses to an underwriter prior to the
commencement of the sale of the securities being offered, except for
a reasonable advance against out-of-pocket accountable expenses
actually anticipated to be incurred by the underwriter. If the
expenses are not actually incurred, any advance received must be
returned to the issuer. Paragraph (D) currently provides that the
reimbursement of out-of-pocket accountable expenses actually
incurred by the member will not be presumed to be unfair or
unreasonable under normal circumstances. The proposed amendment
modifies paragraph (D) to specify that out-of-pocket accountable
expenses must be bona fide.
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    FINRA is proposing to amend Rule 5110(f)(2) (Prohibited
Arrangements) to generally permit termination fees where: (1) The
agreement between the participating member and the issuer specifies
that the issuer has a right of ``termination for cause'' (i.e., where a
member fails materially to perform the underwriting services
contemplated in the written agreement); \8\ (2) the agreement specifies
that an issuer's exercise of its right of ``termination for cause''
eliminates any obligations with respect to the payment of any
termination fee; \9\ (3) the amount of any specified termination fee is
reasonable in relation to the services contemplated in the written
agreement; and (4) the agreement specifies that the issuer is not
responsible for paying the termination fee unless an offering or other
type of transaction is consummated by the issuer (without involvement
of the member) within two years of the date the issuer terminates the
engagement with the member. FINRA indicated that the change to the rule
would provide members with additional flexibility to negotiate
termination fees.
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    \8\ The specific meaning of ``termination for cause'' would be
dictated by the agreement. For purposes of this proposal, FINRA has
defined a ``termination for cause'' to include a member's material
failure to perform the underwriting services contemplated in the
written agreement, but events that are outside the participating
member's control are not required to be included in the definition.
    \9\ Members would continue to be permitted to receive
reimbursement of out-of-pocket, bona fide, accountable expenses
actually incurred by the participating member in connection with a
terminated offering.
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    Current Rule 5110(f)(2)(F) and (G) addresses ROFRs, which provide a
member with the right to underwrite or participate in future public
offerings, private placements or other financings of the issuer. Rule
5110(f)(2)(F) deems as unfair and unreasonable any ROFR provided to a
member that: (1) Has a duration of more than three years from the date
of effectiveness or commencement of sales of the public offering, or
(2) provides more than one opportunity to waive or terminate the ROFR
in consideration of any payment or fee.\10\ Rule 5110(f)(2)(G)
prohibits any payment or fee to waive or terminate a ROFR regarding
future public offerings, private placements or other financings that
exceed specified values or that is not paid in cash.
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    \10\ Historically, FINRA has interpreted the Rule to permit
ROFRs only in the case of successful offerings.
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    FINRA also proposes amendments to permit ROFRs in both successful
and terminated offerings. ROFRs would be permissible where: (1) The
agreement between the participating member and issuer specifies that
the issuer has a right of termination for cause (i.e., where a member
fails materially to perform the underwriting services contemplated in
the written agreement); (2) an issuer's exercise of its right of
termination for cause eliminates any obligations with respect to the
provision of any ROFR; and (3) any fees arising from services provided
under a ROFR are customary for those types of services. The Rule would
continue to provide that the duration of any ROFR must be less than
three years from the date of commencement of sales of the public
offering (in the case of a successful offering). In the case of a
terminated offering, the duration must be less than three years from
the date the issuer terminates the engagement. The agreement may not
provide for more than one opportunity to waive or terminate the ROFR in
consideration of any payment or fee.\11\
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    \11\ FINRA is proposing to redesignate Rule 5110(f)(2)(G) as
Rule 5110(f)(2)(F), which prohibits any payment or fee to waive or
terminate a ROFR regarding future public offerings, private
placements or other financings that exceed specified values or that
is not paid in cash.
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Filing Requirements for Certain Exchange-Traded Funds
    Rule 5110(b)(8) (Exempt Offerings) generally provides an exemption
for investment companies from the filing requirements of the Rule.\12\
Due to this exemption, exchange-traded funds (``ETFs'') that are
structured as investment companies generally are exempt. However, this
exemption does not include certain other ETFs that are not investment
companies. FINRA

proposes to add an exemption for these ETFs that are not included in
the definition of an ``investment company'' because the creation
structure of ETFs is not a distribution model that Rule 5110 was
designed to address. Specifically, FINRA is proposing to exempt
offerings of securities issued by a pooled investment vehicle, whether
formed as a trust, partnership, corporation, limited liability company
or other collective investment vehicle, that is not registered as an
investment company under the Investment Company Act and has a class of
equity securities listed for trading on a national securities exchange,
provided that such equity securities may be created or redeemed on any
business day at their net asset value per share.
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    \12\ Rule 5110(b)(8)(C) exempts from the Rule's filing
requirements securities of ``open-end'' investment companies as
defined in Section 5(a)(1) of the Investment Company Act of 1940
(``Investment Company Act'') and securities of any ``closed-end''
investment company as defined in Section 5(a)(2) of the Investment
Company Act that: (1) Make periodic repurchase offers pursuant to
Rule 23c-3(b) under of the Investment Company Act; and (2) offer
their shares on a continuous basis pursuant to Rule 415(a)(1)(xi) of
SEC Regulation C.
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Electronic Filing
    Rule 5110(b) (Filing Requirements) generally provides that no
member or person associated with a member shall participate in any
manner in a public offering of securities subject to Rules 2310, 5110
or 5121 unless the specified documents and information relating to the
offering have been filed with and reviewed by FINRA. FINRA proposes to
amend the Rule to make clarifying, non-substantive changes regarding
documents filed through FINRA's electronic filing system.\13\
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    \13\ The effective date of the electronic filing requirements
under Rule 5110 was July 12, 2002. See Notice supra note 4.
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II. Discussion of Comments and FINRA's Response

    In response to the Commission's request for comment on the proposed
rule change,\14\ the Commission received one comment letter from the
CAI.\15\ CAI stated that it has no objection to FINRA's proposed rule
change, but CAI stated its belief that, consistent with the proposal to
treat different types of ETFs the same, FINRA should also exempt
different types of insurance contracts from the filing requirements of
the Corporate Financing Rule.\16\ The commenter points out that in its
current form, Rule 5110(b)(8) provides exemptions for only three types
of insurance contracts,\17\ but not for other offerings of insurance
contracts.\18\ Consequently, CAI proposes that ``FINRA also consider an
additional `catch-all' exemption for offerings of insurance contracts
not explicitly described in existing exemptions from the Corporate
Financing Rule in order to clarify and confirm that offerings of
insurance contracts are not subject to the filing requirements of the
Corporate Financing Rule.'' \19\ CAI states that these presently non-
exempt contracts share a number of features with the contract types
that are exempt from the Corporate Financing Rule.\20\ CAI therefore
proposes that FINRA amend Rule 5110(b)(8) to exempt offerings of
insurance premium funding programs and any other types of insurance
contracts issued by an insurance company (not otherwise covered in an
exemption above), except contracts which are exempt securities pursuant
to Section 3(a)(8) of the Securities Act of 1933.\21\
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    \14\ See Notice supra note 4.
    \15\ See supra note 5.
    \16\ See supra note 5, at 2.
    \17\ See supra note 5, at 2-3. Specifically, these contracts
are: exempted securities, as defined in Section 3(a)(12) of the Act;
variable contracts, as defined in FINRA Rule 2320(b); and modified
guaranteed annuity contracts and modified guaranteed life insurance
policies. See id.
    \18\ Such insurance contracts could include annuity and life
insurance contracts using an indexed method for crediting interest,
synthetic guaranteed withdrawal benefit products (also known as
contingent annuities), and combination long-term care insurance with
cash value annuities and life insurance products. See supra note 5,
at 3.
    \19\ See supra note 5, at 1-2.
    \20\ See supra note 5, at 4.
    \21\ See id.
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    In its response, FINRA stated that it appreciates CAI's comments,
but considers the comments to be outside the scope of the proposal.\22\
FINRA stated that it will separately consider the comments and
determine whether any future action is appropriate.\23\
---------------------------------------------------------------------------

    \22\ See supra note 6, at 2.
    \23\ See id.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    The Commission has carefully reviewed the proposed rule change, the
comment letter, and FINRA's response to the comment letter, and
believes that FINRA has adequately addressed the comment letter. The
Commission finds that the proposed rule change is consistent with the
Act and the rules and regulations thereunder applicable to a national
securities association.\24\ In particular, the Commission finds that
the proposed rule change is consistent with Section 15A(b)(6) of the
Act,\25\ which, among other things, requires that FINRA rules be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, 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.
---------------------------------------------------------------------------

    \24\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \25\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    As discussed above, FINRA proposes to amend Rule 5110(f) to expand
the circumstances under which members and issuers may negotiate
termination fees and ROFR. The Commission believes that the proposed
rule change is reasonable because it may provide more flexibility to
issuers and participating members in negotiating termination fees and
terms and arrangements for ROFR, while also promoting the protection of
issuers where a member fails materially to perform the underwriting
services contemplated in the written agreement.
    Additionally, as discussed above, FINRA proposes to amend Rule
5110(b) to extend the exemption from the filing requirements of Rule
5110(b)(8) that is generally afforded to ETFs structured as investment
companies to ETFs formed as grantor or statutory trusts. The Commission
believes that extending this exemption to these ETFs is reasonable
because it will ensure that similarly situated ETFs are treated the
same under Rule 5110.
    Lastly, FINRA proposes amendments to Rule 5110 to codify the
electronic filing requirement. The Commission believes that this
amendment is reasonable because it will provide clarification regarding
the manner by which documents are filed with FINRA.
    For the reasons stated above, the Commission finds that the rule
change is consistent with the Act and the rules and regulations
thereunder.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\26\ that the proposed rule change (SR-FINRA-2014-004) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10895 Filed 5-12-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 64 (Monday, April 4, 2022)]
[Notices]
[Pages 19563-19565]
[FR Doc No: 2022-06983]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94544; File No. SR-ICC-2022-002]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change Relating to the ICC Risk Parameter
Setting and Review Policy

March 29, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 22, 2022, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change, as described in Items I, II and III below, which Items have
been prepared primarily by ICC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

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

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The principal purpose of the proposed rule change is to make
changes to ICC's Risk Parameter Setting and Review Policy. These
revisions do not require any changes to the ICC Clearing Rules (the
``Rules'').

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change,
security-based swap submission, or advance notice and discussed any
comments it received on the proposed rule change, security-based swap
submission, or advance notice. The text of these statements may be
examined at the places specified in Item IV below. ICC has prepared
summaries, set forth in sections (A), (B), and (C) below, of the most
significant aspects of these statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(a) Purpose
    ICC proposes revising its Risk Parameter Setting and Review Policy,
which describes the process of setting and reviewing the risk
management model core parameters and the performance of sensitivity
analyses related to certain parameter settings. ICC believes that such
revisions will facilitate the prompt and accurate clearance and
settlement of securities transactions and derivative agreements,
contracts, and transactions for which it is responsible. ICC proposes
to make such changes effective following Commission approval of the
proposed rule change. The proposed revisions are described in detail as
follows.
    ICC proposes to amend the ``Univariate Level Parameters''
subsection (Subsection 1.7.1), which describes the univariate level
parameters associated with the integrated spread response model
component. For single name risk factors, ICC proposes to clarify how
the end-of-day (``EOD'') recovery rate is derived from quotes. The
proposed changes describe how the EOD recovery rate would deviate when
the single name risk factor is distressed. The proposed language
further specifies the role of the established EOD recovery rate upon
using the ISDA Standard Model in terms of price-to-spread mapping.
Finally, ICC proposes to update the revision history to reflect the
proposed changes accordingly. Overall, the proposed amendments are
intended to serve as clarifications and would not change the
methodology.
(b) Statutory Basis
    ICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \3\ and the regulations
thereunder applicable to it, including the applicable standards under
Rule 17Ad-22.\4\ In particular, Section 17A(b)(3)(F) of the Act \5\
requires that the rule change be consistent with the prompt and
accurate clearance and settlement of securities transactions and
derivative agreements, contracts and transactions cleared by ICC, the
safeguarding of securities and funds in the custody or control of ICC
or for which it is responsible, and the protection of investors and the
public interest. The revisions are limited to clarification changes and
would not amend the methodology. As described above, for single name
risk factors, ICC proposes to clarify how the EOD recovery rate is
derived from quotes. The proposed changes also describe how the EOD
recovery rate would deviate when the single name risk factor is
distressed and the role of the established EOD recovery rate in respect
of the ISDA Standard Model. Such changes would ensure transparency and
clarity in the Risk Parameter Setting and Review Policy with respect to
ICC's parameter setting and calibration process to support the
effectiveness of ICC's risk management system. The proposed rule change
is therefore consistent with the prompt and accurate clearing and
settlement of the contracts cleared by ICC, the safeguarding of
securities and funds in the custody or control of ICC or for which it
is responsible, and the protection of investors and the public
interest, within the meaning of Section 17A(b)(3)(F) of the Act.\6\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1.
    \4\ 17 CFR 240.17Ad-22.
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
    \6\ Id.

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

    Rule 17Ad-22(e)(4)(ii) \7\ requires each covered clearing agency to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to effectively identify, measure,
monitor, and manage its credit exposures to participants and those
arising from its payment, clearing, and settlement processes, including
by maintaining additional financial resources at the minimum to enable
it to cover a wide range of foreseeable stress scenarios that include,
but are not limited to, the default of the two participant families
that would potentially cause the largest aggregate credit exposure for
the covered clearing agency in extreme but plausible market conditions.
ICC believes that the proposed changes provide additional clarity in
the Risk Parameter Setting and Review Policy, which strengthens ICC's
process for reviewing and setting the model core parameters and, in
turn, serves to promote the soundness of ICC's risk management model,
its ability to manage risks and maintain appropriate financial
resources. Such changes enhance the readability and transparency of the
Risk Parameter Setting and Review Policy, which would strengthen the
documentation and ensure that it remains up-to-date, clear, and
transparent. As such, the proposed amendments would strengthen ICC's
ability to maintain its financial resources and withstand the pressures
of defaults, consistent with the requirements of Rule 17Ad-
22(e)(4)(ii).\8\
---------------------------------------------------------------------------

    \7\ 17 CFR 240.17Ad-22(e)(4)(ii).
    \8\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(4)(vi)(B) \9\ requires each covered clearing agency
to establish, implement, maintain, and enforce written policies and
procedures reasonably designed to effectively identify, measure,
monitor, and manage its credit exposures to participants and those
arising from its payment, clearing, and settlement processes, including
by testing the sufficiency of its total financial resources available
to meet the minimum financial resource requirements, including by
conducting a comprehensive analysis on at least a monthly basis of
underlying parameters and assumptions. Under the proposed changes, the
Risk Parameter Setting and Review Policy continues to provide a clear
framework for ICC to set and review the model core parameters and
perform sensitivity analyses related to certain parameter settings on
at least a monthly basis. The proposed changes provide additional
clarity with respect to the univariate level parameters and do not
change ICC's methodology. As such, ICC believes the proposed rule
change is consistent with the requirements of Rule 17Ad-
22(e)(4)(vi)(B).\10\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17Ad-22(e)(4)(vi)(B).
    \10\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(6)(i) \11\ requires each covered clearing agency to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to cover its credit exposures to its
participants by establishing a risk-based margin system that, at a
minimum, considers, and produces margin levels commensurate with, the
risks and particular attributes of each relevant product, portfolio,
and market. As described above, the proposed clarifications would
promote clarity and transparency in the documentation. In ICC's view,
the proposed changes thus enhance and strengthen ICC's process for
reviewing and setting the model core parameters, which in turn serves
to promote the soundness of ICC's risk management model and system,
which will continue to consider and produce margin levels commensurate
with the risks and particular attributes of each relevant product,
portfolio, and market, consistent with the requirements of Rule 17Ad-
22(e)(6)(i).\12\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.17Ad-22(e)(6)(i).
    \12\ Id.
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition. The proposed changes to
ICC's Risk Parameter Setting and Review Policy will apply uniformly
across all market participants. Therefore, ICC does not believe the
proposed rule change imposes any burden on competition that is
inappropriate in furtherance of the purposes of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. 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 email to [email protected]. Please include
File Number SR-ICC-2022-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ICC-2022-002. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Credit and on ICE
Clear Credit's website at https://www.theice.com/clear-credit/regulation. All comments received will be posted without change.
Persons submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions.

You should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-ICC-2022-002
and should be submitted on or before April 25, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06983 Filed 4-1-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 10, 2010 (Volume 75, Number 46)]
[Notices]
[Page 11162-11164]
[DOCID:fr10mr10-73]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

March 3, 2010.
    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG10-24-000.
    Applicants: El Cajon Energy, LLC.

    Description: Self Certification Notice of Exempt Wholesale
Generator Status of El Cajon Energy, LLC.
    Filed Date: 03/03/2010.
    Accession Number: 20100303-5015.
    Comment Date: 5 p.m. Eastern Time on Wednesday, March 24, 2010.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER99-705-005; ER97-3583-004.
    Applicants: Golden Spread Electric Cooperative, Inc.; GS Electric
Generating Cooperative Inc.
    Description: Golden Spread Electric Cooperative, Inc et al. submits
an Updated Market Power Analysis.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0221.
    Comment Date: 5 p.m. Eastern Time on Friday, April 30, 2010.

    Docket Numbers: ER01-560-015; ER00-1780-011; ER00-840-012; ER01-
137-010; ER01-2641-015; ER01-2690-013; ER01-557-015; ER01-559-015;
ER01-596-009; ER02-1942-012; ER02-2509-010; ER02-553-013; ER02-77-013;
ER02-963-013; ER03-720-014; ER05-524-008; ER09-43-002; ER94-389-034;
ER98-1767-018; ER99-2992-011; ER99-3165-012.
    Applicants: Big Sandy Peaker Plant, LLC, Tenaska Alabama II
Partners, L.P., Tenaska Alabama Partners, L.P., Tenaska Georgia
Partners, L.P., Tenaska Frontier Partners, Ltd., High Desert Power
Project LLC, Tenaska Power Services Co., Wolf Hills Energy, LLC,
Rolling Hills Generating L.L.C., Tenaska Washington Partners, L.P.,
Lincoln Generating Facility, LLC, Alabama Electric Marketing, LLC,
California Electric Marketing, LLC, Crete Energy Venture, LLC, Kiowa
Power Partners, L.L.C., Tenaska Gateway Partners, Ltd., Tenaska
Virginia Partners, LP, University Park Energy, LLC, New Covert
Generating Co., LLC, New Mexico Electric Marketing, LLC, Texas Electric
Marketing, LLC.
    Description: Supplement to Clarify July 30, 2009 Quarterly Report
Pursuant to 18 CFR Section 35.42(d) of Alabama Electric Marketing, LLC,
et. al.
    Filed Date: 03/02/2010.
    Accession Number: 20100302-5088.
    Comment Date: 5 p.m. Eastern Time on Tuesday, March 23, 2010.

    Docket Numbers: ER04-1220-001.
    Applicants: Caprock Wind LLC.
    Description: Caprock Wind LLC submits its application requesting
that the Commission make a finding that it qualifies as a Category 1
Seller in the Southwest Power Pool Region.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0216.
    Comment Date: 5 p.m. Eastern Time on Monday, March 22, 2010.

    Docket Numbers: ER05-1389-006; ER07-645-003; ER07-301-003.
    Applicants: San Juan Mesa Wind Project, LLC; Sleeping Bear, LLC;
Wildorado Wind, LLC.
    Description: San Juan Mesa Wind Project, LLC et al. submits the
Updated Market Power Analysis for the Southwest Power Pool Region.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0217.
    Comment Date: 5 p.m. Eastern Time on Friday, April 30, 2010.

    Docket Numbers: ER07-751-002.
    Applicants: LEA POWER PARTNERS, LLC.
    Description: Lea Power Partners, LLC submits the Updated Market
Power Analysis and Order 697 Compliance Filing.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0215.
    Comment Date: 5 p.m. Eastern Time on Friday, April 30, 2010.

    Docket Numbers: ER10-45-001.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc submits revised pages to its
Open Access Transmission Tariff.
    Filed Date: 03/02/2010.
    Accession Number: 20100302-0222.
    Comment Date: 5 p.m. Eastern Time on Tuesday, March 23, 2010.

    Docket Numbers: ER10-149-003; ER05-487-008; ER03-1332-007; ER03-
1333-008; ER01-1972-011; ER09-832-006; ER10-1-002.
    Applicants: Elk City Wind, LLC; FPL Energy Cowboy Wind, LLC; FPL
Energy Oklahoma Wind, LLC; FPL Energy Sooner Wind, LLC; Gray County
Wind Energy, LLC; NextEra Energy Power Marketing, LLC; High Majestic
Wind Energy Center, LLC.
    Description: NextEra Companies submits triennial market power
update for the Southwest Power Pool Region with respect to each
company's authority as applicable, to sell energy et al.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0218.
    Comment Date: 5 p.m. Eastern Time on Friday, April 30, 2010.

    Docket Numbers: ER10-607-002; ER10-608-002; ER10-609-002; ER10-610-
002; ER10-611-002; ER10-612-002.
    Applicants: Coalinga Cogeneration Company; Kern River Cogeneration
Company; Salinas River Cogeneration Company; Mid-Set Cogeneration
Company; Sycamore Cogeneration Company; Sargent Canyon Cogeneration
Company.
    Description: Coalinga Cogeneration Company et al. submits revised
tariff sheets to supplement the 1/20/2010 filing.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0223.
    Comment Date: 5 p.m. Eastern Time on Monday, March 22, 2010.

    Docket Numbers: ER10-815-000.
    Applicants: Avista Corporation.
    Description: Avista Corp submits a non-conforming Long-Term Firm
Point-to-Point Service Agreement.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0219.
    Comment Date: 5 p.m. Eastern Time on Monday, March 22, 2010.

    Docket Numbers: ER10-816-000.
    Applicants: Xcel Energy Services Inc.
    Description: Public Service Company of Colorado submits Second
Revised Sheet 324 et al.
    Filed Date: 03/01/2010.
    Accession Number: 20100302-0220.
    Comment Date: 5 p.m. Eastern Time on Monday, March 22, 2010.

    Docket Numbers: ER10-818-000.
    Applicants: Entergy Power, LLC.
    Description: Entergy Power, LLC submits Rate Schedule No 49.
    Filed Date: 03/02/2010.
    Accession Number: 20100303-0201.
    Comment Date: 5 p.m. Eastern Time on Tuesday, March 23, 2010.

    Docket Numbers: ER10-819-000.
    Applicants: ISO New England Inc.
    Description: Iso New England Inc submits letter re-reconciled
tariff sheets for compliance with Order 614.
    Filed Date: 03/02/2010.
    Accession Number: 20100303-0202.
    Comment Date: 5 p.m. Eastern Time on Tuesday, March 23, 2010.

    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    The Commission encourages electronic submission of protests and

interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please e-mail<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2010-5057 Filed 3-9-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 199 (Friday, October 14, 2011)]
[Notices]
[Pages 63914-63915]
[FR Doc No: 2011-26600]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2305-036]

Sabine River Authority of Texas and Sabine River Authority, State
of Louisiana; Notice of Application Tendered for Filing With the
Commission and Establishing Procedural Schedule for Licensing and
Deadline for Submission of Final Amendments

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: New Major License.
    b. Project No.: 2305-036.
    c. Date Filed: September 30, 2011.
    d. Applicant: Sabine River Authority of Texas and Sabine River
Authority, State of Louisiana (Sabine River Authorities).
    e. Name of Project: Toledo Bend Hydroelectric Project.
    f. Location: On the Sabine River, affecting lands and waters in
Panola, Shelby, Sabine, and Newton Counties, Texas, and De Soto,
Sabine, and Vernon Parishes, Louisiana. The project occupies about
3,600 acres of United States lands under the jurisdiction of the Forest
Service.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact:

Mr. Melvin T. Swoboda, Licensing Manager, Toledo Bend Project Joint
Operation, P.O. Box 579, Orange, Texas 77631-0579,<PHONE_NUMBER>;
<EMAIL_ADDRESS>Mr. Jerry L. Clark, General Manager, Sabine River Authority of Texas,
P.O. Box 579, Orange, Texas 77631-0579.<PHONE_NUMBER><EMAIL_ADDRESS>

Mr. James Pratt, Executive Director, Sabine River Authority, State of
Louisiana, 15091 Texas Highway, Many, Louisiana 71449-5718, 318-256-
4112<EMAIL_ADDRESS>Mr. Charles R. Sensiba, Van Ness Feldman, P.C., 1050 Thomas Jefferson
Street, NW., Washington, DC 20007,<PHONE_NUMBER>.

    i. FERC Contact: Alan Mitchnick at<PHONE_NUMBER> or e-mail at
<EMAIL_ADDRESS>    j. This application is not ready for environmental analysis at this
time.
    k. The Project Description: The existing Toledo Bend Project
(figure 2) consists of: (1) A rolled, earth-fill embankment,
approximately 11,250 feet long (including saddle dikes) with a top
width of 25 feet and maximum height of approximately 112 feet; (2) an
approximately 185,000-surface acre, 85-mile-long reservoir, with an
active storage capacity of 4,477,000 acre-feet at full pool (172 feet)
and 1,200 miles of shoreline; (3) a 838-foot-long spillway located
along the north dam abutment in Louisiana, comprised of a concrete,
gravity-type, gated weir with a concrete chute and stilling basin and a
discharge channel on the left abutment with eleven 40-foot by 28-foot
tainter gates; (4) a 80-foot-wide, 55-foot-high powerhouse located in
the right abutment, containing two vertical Kaplan turbines with an
authorized installed capacity of 81 megawatts (MW); and (5) a 220-foot-
long, concrete tailrace segment leading into a 2-mile-long, excavated
channel that eventually merges with the Sabine River; (6) a 138-
kilovolt, primary transmission line leading from the powerhouse to the
project switchyard, located immediately adjacent to the tailrace; and
(7) a station transformer, located to the immediate south of and
adjacent to the powerhouse. The Sabine River Authorities propose to
construct a 1.3-MW minimum flow turbine-generator at the project
spillway.
    l. Locations of the Application: A copy of the application is
available for review at the Commission in the Public Reference Room or
may be viewed on the Commission's Web site at http://www.ferc.gov using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
assistance, contact FERC Online Support at<EMAIL_ADDRESS>or toll-free at 1-866-208-3676, or for TTY,<PHONE_NUMBER>. A copy is
also available for inspection and reproduction at the address in item
(h) above.
    m. You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via e-mail of new filings and
issuances related to this or other pending projects. For assistance,
contact FERC Online Support.
    n. Procedural Schedule: The application will be processed according
to the following preliminary Hydro Licensing Schedule. Revisions to the
schedule may be made as appropriate.

------------------------------------------------------------------------
                        Milestone                           Target date
------------------------------------------------------------------------
Notice of Acceptance/Notice of Ready for Environmental        11/29/2011
 Analysis...............................................
Filing of recommendations, preliminary terms and               1/28/2012
 conditions, and fishway prescriptions..................
Commission issues Draft EIS.............................       7/26/2012
Comments on Draft EIS due...............................       9/24/2012
Modified Terms and Conditions due.......................      11/23/2012
Commission Issues Final EIS.............................       2/21/2013
------------------------------------------------------------------------

    o. Final amendments to the application must be filed with the
Commission no later than 30 days from the issuance date of the notice
of ready for environmental analysis.

    Dated: October 7, 2011.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-26600 Filed 10-13-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: June 23, 2010 (Volume 75, Number 120)]
[Rules and Regulations]
[Page 35616-35619]
[DOCID:fr23jn10-5]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0707; Directorate Identifier 2009-CE-035-AD;
Amendment 39-16339; AD 2010-13-08]
RIN 2120-AA64

Airworthiness Directives; Air Tractor, Inc. Models AT-802 and AT-
802A Airplanes

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

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) to
supersede AD 2006-08-09, which applies to all Air Tractor, Inc. (Air
Tractor) Models AT-802 and AT-802A airplanes. AD 2006-08-09 currently
requires you to repetitively inspect (using the eddy current method)
the two outboard fastener holes in both of the wing main spar lower
caps at the center splice joint for cracks and repair or replace any
cracked spar cap. Since we issued AD 2006-08-09, we have determined we
need to clarify the serial numbers (SNs) of the Models AT-802 and AT-
802A airplanes affected by that AD. Additionally, we are adding an
option of modifying the wing main spar lower caps to extend the safe
life limit on the affected airplanes. Consequently, this AD would keep
the actions of AD 2006-08-09, clarify the affected SNs, and add a
modification option to extend the safe life limit. We are issuing this
AD to detect and correct cracks in the wing main spar lower cap at the
center splice joint, which could result in failure of the spar cap and
lead to wing separation and loss of control of the airplane.

DATES: This AD becomes effective on July 28, 2010.
    As of April 21, 2006 (71 FR 19994, April 19, 2006) the Director of
the Federal Register approved the incorporation by reference of Snow
Engineering Co. Process Specification 197, page 1, revised
June 4, 2002; pages 2 through 4, dated February 23, 2001; and page 5,
dated May 3, 2002; Snow Engineering Co. Process Specification
204, Rev. C, dated November 16, 2004; Snow Engineering Co.
Service Letter 215, page 5, titled ``802 Spar Inspection Holes
and Vent Tube Mod,'' dated November 19, 2003; Snow Engineering Co.
Service Letter 240, dated September 30, 2004; Snow Engineering
Co. Drawing Number 20975, Sheet 2, Rev. A, dated September 1, 2004;
Snow Engineering Co. Drawing Number 20975, Sheet 3, dated January 6,
2005; and Snow Engineering Co. Drawing 20995, Sheet 2, Rev. C, dated
September 28, 2004, listed in this AD.

ADDRESSES: For service information identified in this AD, contact Air
Tractor, Inc., P.O. Box 485, Olney, Texas 76374; telephone: (940) 564-
5616; fax:<PHONE_NUMBER>; E-mail<EMAIL_ADDRESS>Internet:
http://www.airtractor.com.
    To view the AD docket, go to U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue, SE., Washington, DC 20590, or on the Internet at
http://www.regulations.gov. The docket number is FAA-2009-0707;
Directorate Identifier 2009-CE-035-AD.

FOR FURTHER INFORMATION CONTACT: Andy McAnaul, Aerospace Engineer,
10100 Reunion Pl., Ste. 650, San Antonio, Texas 78216; telephone: (210)
308-3365; fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    On July 31, 2009, we issued a proposal to amend part 39 of the
Federal Aviation Regulations (14 CFR part 39) to include an AD that
would apply to all Air Tractor Models AT-802 and AT-802A airplanes.
This proposal was published in the Federal Register as a notice of
proposed rulemaking (NPRM) on August 6, 2009 (74 FR 39243). The NPRM
proposed to supersede AD 2006-08-09 to clarify the SNs of the Models
AT-802 and AT-802A airplanes affected by that AD. Additionally, we
proposed to add an option of modifying the wing main spar lower caps to
extend the safe life limit on the affected airplanes.

Comments

    We provided the public the opportunity to participate in developing
this AD. We received no comments on the proposal or on the
determination of the cost to the public.

Conclusion

    We have carefully reviewed the available data and determined that
air safety and the public interest require adopting the AD as proposed
except for minor editorial corrections. We have determined that these
minor corrections:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Costs of Compliance

    We estimate that this AD affects 187 airplanes in the U.S.
registry.
    We estimate the following costs to do the inspection:

----------------------------------------------------------------------------------------------------------------
           Labor cost                Parts cost        Total cost per airplane      Total cost on U.S. operators
----------------------------------------------------------------------------------------------------------------
$500 to $800...................  Not applicable...                  $500 to $800            $93,500 to $149,600
----------------------------------------------------------------------------------------------------------------

     We estimate the following costs to do any necessary repairs for
two spars that may be required based on the results of the inspection
or the modification as an option. We have no way of determining the
number of airplanes that may need this repair:

------------------------------------------------------------------------
                                                            Total cost
         Labor cost (two spars)             Parts cost      (two spars)
                                            (two spars)    per airplane
------------------------------------------------------------------------
225 work-hours x $80 per hour = $18,000.          $7,500         $25,500
------------------------------------------------------------------------

     We estimate the following costs to do any necessary spar cap
replacement (two spars) that would be required based on the results of
the inspection. We have no way of determining the number of airplanes
that may need this replacement:

------------------------------------------------------------------------
                                                            Total cost
         Labor cost (two spars)             Parts cost      (two spars)
                                            (two spars)    per airplane
------------------------------------------------------------------------
495 work-hours x $80 per hour = $39,600.         $39,100         $78,700
------------------------------------------------------------------------

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 AD.

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 the 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 summary of the costs to comply with this AD (and
other information as included in the Regulatory Evaluation) and placed
it in the AD Docket. You may get a copy of this summary by sending a
request to us at the address listed under ADDRESSES. Include ``Docket
No. FAA-2009-0707; Directorate Identifier 2009-CE-035-AD'' in your
request.

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 Federal Aviation Administration amends part 39 of the Federal
Aviation Regulations (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 FAA amends Sec.  39.13 by removing Airworthiness Directive (AD)
2006-08-09, amendment 39-14565 (71 FR 27784, May 12, 2006), and adding
the following new AD:

2010-13-08 Air Tractor, Inc.: Amendment 39-16339; Docket No. FAA-
2009-0707; Directorate Identifier 2009-CE-035-AD.

Effective Date

    (a) This AD becomes effective on July 28, 2010.

Affected ADs

    (b) This AD supersedes AD 2006-08-09, Amendment 39-14565.

Applicability

    (c) This AD affects Models AT-802 and AT-802A airplanes, all
serial numbers (SNs) beginning with -0001, that are:
    (1) Certificated in any category;
    (2) Engaged in agricultural dispersal operations, including
those airplanes that have been converted from fire fighting to
agricultural dispersal or airplanes that convert between fire
fighting and agricultural dispersal;
    (3) Not equipped with the factory-supplied computerized fire
gate (part number (P/N) 80540); and
    (4) Not engaged in only full-time fire fighting.

Unsafe Condition

    (d) This AD results from our determination that we need to
clarify the SNs of the Models AT-802 and AT-802A airplanes affected
by AD 2006-08-09. Additionally, we are adding an option to modify
the wing main spar lower caps to extend the safe life limit on the
affected airplanes. We are issuing this AD to detect and correct
cracks in the wing main spar lower cap at the center splice joint,
which could result in failure of the spar cap and lead to wing
separation and loss of control of the airplane.

Compliance

    (e) For Models AT-802 and AT-802A airplanes, SNs -0001 through -
0091, do the following actions, unless already done, using the wing
main spar lower cap hours time-in-service (TIS) schedule found in
Table 1 of this AD to do the initial and repetitive inspections:
    (1) Install access cover plates following Snow Engineering Co.
Service Letter 215, page 5, titled ``802 Spar Inspection
Holes and Vent Tube Mod,'' dated November 19, 2003.
    (2) Eddy current inspect for cracks the center splice joint
outboard two fastener holes in both the right and left wing main
spar lower caps following Snow Engineering Co. Process Specification
197, page 1, revised June 4, 2002; pages 2 through 4, dated
February 23, 2001; and page 5, dated May 3, 2002.

                                            Table 1--Inspection Times
----------------------------------------------------------------------------------------------------------------
                                                                                Repetitively inspect
                                                                                thereafter at
               SNs                     Condition               Initially inspect:             intervals not to
                                                                                exceed:
----------------------------------------------------------------------------------------------------------------
(i) AT-802 and AT-802A, SNs -     As manufactured....  Upon accumulating 1,700 hours TIS   850 hours TIS.
 0001 through -0091.                                    after April 21, 2006 (the
                                                        effective date of AD 2006-08-09)
                                                        or within the next 50 hours TIS
                                                        after April 21, 2006 (the
                                                        effective date of AD 2006-08-09),
                                                        whichever occurs later.
(ii) AT-802 and AT-802A, serial   Modified with        If performing the                   1,700 hours TIS.
 numbers SNs -0001 through -0091.  cold[dash]worked     cold[dash]working procedure in
                                   fastener holes       Service Letter 244,
                                   following Service    dated April 25, 2005, it includes
                                   Letter 244, dated April   inspection.
                                   25, 2005.
----------------------------------------------------------------------------------------------------------------

     (f) One of the following must do the eddy current inspections
required in paragraph (e)(2) of this AD:
    (1) A level 2 or 3 inspector certified in eddy current
inspection using the guidelines established by the American Society
for Nondestructive Testing or MIL-STD-410; or
    (2) A person authorized to perform AD work and who has completed
and passed the Air Tractor, Inc. training course on eddy current
inspection on wing lower spar caps.
    (g) If cracks are found during any inspection required in
paragraph (e)(2) of this AD, repair or replace any cracked spar cap
before further flight after the inspection in which cracks are
found. For repair or replacement, do whichever of the following that
applies:
    (1) For cracks that can be repaired by incorporating the
modification specified in paragraph (j) of this AD, do the actions
following the procedures in paragraph (j) of this AD before further
flight after the inspection in which cracks are found.
    (2) For cracks that cannot be repaired by incorporating the
modification specified in paragraph (j) of this AD, replace the
lower spar caps and associated parts listed following the procedures
identified in paragraph (h) of this AD before further flight after
the inspection in which cracks are found.
    (h) For all AT-802 and AT-802A airplanes, replace the wing main
spar lower caps, the center joint splice blocks and hardware, the
wing attach angles and hardware, and install the steel web splice
plate (P/N 21106-1 for SNs -0001 through -0091, and P/N 20094-2 for
all SNs beginning with -0092). Do the replacement upon accumulating
the safe life hours TIS on the wing main spar lower caps as listed
in Table 2 of this AD or within 50 hours TIS after April 21, 2006
(the effective date of AD 2006-08-09), whichever occurs later. For
SNs -0001 through -0091, you may extend the safe life hours TIS of
the wing main spar lower caps to 8,000 hours TIS before doing the
replacement if you modified your wing as specified in paragraph (j)
of this AD.
    (1) Use the following service information for replacement:
    (i) For Models AT-802 and AT-802A airplanes, SNs -0001 through -
0091, follow Drawing Number 20975, Sheet 3, dated January 6, 2005;
and Snow Engineering Co. Process Specification 204, Rev. C,
dated November 16, 2004.
    (ii) For Models AT-802 and AT-802A airplanes, SNs beginning with
-0092, follow Snow Engineering Co. Drawing Number 20975, Sheet 2,
Rev. A, dated September 1, 2004; and Snow Engineering Co. Process
Specification 204, Rev. C, dated November 16, 2004.
    (2) The following presents the safe life and replacement times
as required in paragraph (h) of this AD:

                Table 2--Safe Life and Replacement Times
------------------------------------------------------------------------
                  SNs                     Wing spar lower cap safe life
------------------------------------------------------------------------
AT-802-0001 through AT-802-0059........  4,132 hours TIS.
AT-802-0060 through AT-802-0091........  4,188 hours TIS.
All beginning with AT-802-0092.........  8,163 hours TIS.
AT-802A-0001 through AT-802A-0059......  4,969 hours TIS.
AT-802A-0060 through AT-802A-0091......  4,531 hours TIS.
All beginning with AT-802A-0092........  8,648 hours TIS.
------------------------------------------------------------------------

     (i) After replacing the wing main spar lower caps and hardware,
installing the web splice plate, and cold working the fastener holes
by following Snow Engineering Co. Drawing Number 20975, Sheet 3,
dated January 6, 2005 (SNs -0001 through -0091); or Snow Engineering
Co. Drawing Number 20975, Sheet 2, Rev. A, dated September 1, 2004
(all SNs beginning with -0092); and Snow Engineering Co. Process
Specification 204, Rev. C, dated November 16, 2004, the new
safe life for the wing main spar lower caps is as follows:

          Table 3--New Safe Life for Wing Main Spar Lower Caps
------------------------------------------------------------------------
                  SNs                     Wing spar lower cap safe life
------------------------------------------------------------------------
All beginning with AT-802-0001.........  8,163 hours TIS.
All beginning with AT-802A-0001........  8,648 hours TIS.
------------------------------------------------------------------------

     (j) For Models AT-802 and AT-802A airplanes, SNs -0001 through
-0091, in lieu of replacing the wing main spar lower cap at the safe
life hours TIS listed in Table 2 in paragraph (h) of this AD, you
may extend the safe life of the wing main spar lower caps by doing
the following actions. Between 3,200 hours TIS and the safe life
hours TIS for your airplane currently listed in Table 2 of this AD,
do the following, unless already done:
    (1) Modify the wing by installing P/N 20997-2 web plate and P/N
20985-1 and 20985-2 extended 8-bolt splice blocks following Snow
Engineering Co. Drawing 20995, Sheet 2, Rev. C, dated September 28,
2004.
    (2) Cold-work the outboard two fastener holes in both the left
and right hand lower spar caps at the center splice following Snow
Engineering Co. Service Letter 240, dated September 30,
2004.
    (3) Do an eddy current inspection of the wing center splice
joint outboard two fastener holes in both the right and left wing
main spar lower caps for cracks at the time of modification
following Snow Engineering Co. Process Specification 197,
page 1, revised June 4, 2002; pages 2 through 4, dated February 23,
2001; and page 5, dated May 3, 2002.
    (4) If, before July 28, 2010 (the effective date of this AD), an
airplane has already been modified following paragraph (j)(1) of
this AD but did not receive cold working in the outboard two
fastener holes in both the left and right hand lower spar caps
following paragraph (j)(2) of this AD, do the following:
    (i) Initially do an eddy current inspection within the next
2,400 hours TIS after the modification, using the procedure in
paragraph (j)(3) of this AD, and repetitively thereafter at
intervals not to exceed every 1,200 hours TIS until the wing spar
lower cap reaches 8,000-hour TIS safe life.
    (ii) At any time after the modification, you may do the cold
working in the outboard two fastener holes in both the left and
right hand

lower spar caps following paragraph (j)(2) of this AD to terminate
the repetitive eddy current inspections required in paragraph
(j)(4)(i) of this AD.
    (5) If you have modified your airplane following paragraph
(j)(1) of this AD prior to 3,200 hours TIS, you must do the
following to reach the extended 8,000-hour TIS safe life:
    (i) If you did not cold work the outboard two fastener holes in
both the left and right hand lower spar caps following paragraph
(j)(2) of this AD, you must do the repetitive eddy current
inspections following paragraph (j)(4)(i) of this AD until you
accumulate 4,800 hours TIS after the modification on the wing spar
lower cap. Upon accumulation of 4,800 hours TIS after the
modification on the wing spar lower cap, do the repetitive eddy
current inspections at intervals not to exceed every 600 hours TIS
until you reach the extended safe life of 8,000-hour TIS.
    (ii) If you did cold work the outboard two fastener holes in
both the left and right hand lower spar caps following paragraph
(j)(2) of this AD, upon accumulation of 4,800 hours TIS after the
modification on the wing spar lower cap do the repetitive eddy
current inspections at intervals not to exceed every 600 hours TIS
until you reach the 8,000-hour TIS safe life.
    (6) For the initial and repetitive eddy current inspections
required in paragraphs (j)(3), (j)(4)(i), (j)(5)(i) and (j)(5)(ii)
of this AD, follow the instructions as specified in Snow Engineering
Co. Process Specification 197, page 1, revised June 4,
2002; pages 2 through 4, dated February 23, 2001; and page 5, dated
May 3, 2002. For any cracks found, follow the instructions for
repair or replacement as specified in paragraph (g) of this AD.
    (k) If any cracks are found as a result of any inspection
required in paragraphs (e)(2), (j)(3), (j)4)(i), (j)(5)(i), and
(j)(5)(ii) of this AD, report any cracks you find within 10 days
after the cracks are found or within 10 days after April 21, 2006
(the effective date of AD 2006-08-09), whichever occurs later.
    (1) Include in your report the aircraft SN, aircraft hours TIS,
wing spar cap hours TIS, crack location and size, corrective action
taken, and a point of contact name and phone number. Send your
report to Andy McAnaul, Aerospace Engineer, ASW-150 (c/o MIDO-43),
10100 Reunion Place, Suite 650, San Antonio, Texas 78216; telephone:
(210) 308-3365; facsimile:<PHONE_NUMBER>.
    (2) The Office of Management and Budget (OMB) approved the
information collection requirements contained in this regulation
under the provisions of the Paperwork Reduction Act and assigned OMB
Control Number 2120-0056.

Special Permit Flight

    (l) Under 14 CFR part 39.23, we are allowing special flight
permits for the purpose of compliance with this AD under the
following conditions:
    (1) Only operate in day visual flight rules (VFR).
    (2) Ensure that the hopper is empty.
    (3) Limit airspeed to 135 miles per hour (mph) indicated
airspeed (IAS).
    (4) Avoid any unnecessary g-forces.
    (5) Avoid areas of turbulence.
    (6) Plan the flight to follow the most direct route.

Alternative Methods of Compliance (AMOCs)

    (m) The Manager, Fort Worth Airplane Certification Office, ASW-
150, FAA, has the authority to approve AMOCs for this AD, if
requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Andy McAnaul, Aerospace Engineer, ASW-150, FAA
San Antonio MIDO-43, 10100 Reunion Pl., Ste. 650, San Antonio, Texas
78216; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>. 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.
    (n) AMOCs approved for AD 2006-08-09 are not approved for this
AD.

Related Information

    (o) To get copies of the service information referenced in this
AD, contact Air Tractor, Inc., P.O. Box 485, Olney, Texas 76374;
telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; E-mail:
<EMAIL_ADDRESS>Internet: http://www.airtractor.com. To view
the AD docket, go to U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, or on the Internet at
http://www.regulations.gov.

Material Incorporated by Reference

    (p) You must use Snow Engineering Co. Process Specification
197, page 1, revised June 4, 2002; pages 2 through 4, dated
February 23, 2001; and page 5, dated May 3, 2002; Snow Engineering
Co. Process Specification 204, Rev. C, dated November 16,
2004; Snow Engineering Co. Service Letter 215, page 5,
titled ``802 Spar Inspection Holes and Vent Tube Mod,'' dated
November 19, 2003; Snow Engineering Co. Service Letter 240,
dated September 30, 2004; Snow Engineering Co. Drawing Number 20975,
Sheet 2, Rev. A, dated September 1, 2004; Snow Engineering Co.
Drawing Number 20975, Sheet 3, dated January 6, 2005; and Snow
Engineering Co. Drawing 20995, Sheet 2, Rev. C, dated September 28,
2004, to do the actions required by this AD, unless the AD specifies
otherwise.
    (1) On April 21, 2006 (71 FR 19994, April 19, 2006), the
Director of the Federal Register approved the incorporation by
reference of Snow Engineering Co. Process Specification
197, page 1, revised June 4, 2002; pages 2 through 4, dated
February 23, 2001; and page 5, dated May 3, 2002; Snow Engineering
Co. Process Specification 204, Rev. C, dated November 16,
2004; Snow Engineering Co. Service Letter 215, page 5,
titled ``802 Spar Inspection Holes and Vent Tube Mod,'' dated
November 19, 2003; Snow Engineering Co. Service Letter 240,
dated September 30, 2004; Snow Engineering Co. Drawing Number 20975,
Sheet 2, Rev. A, dated September 1, 2004; Snow Engineering Co.
Drawing Number 20975, Sheet 3, dated January 6, 2005; and Snow
Engineering Co. Drawing 20995, Sheet 2, Rev. C, dated September 28,
2004, under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact Air
Tractor, Inc., P.O. Box 485, Olney, Texas 76374; telephone: (940)
564-5616; fax:<PHONE_NUMBER>; E-mail<EMAIL_ADDRESS>
Internet: http://www.airtractor.com.
    (3) You may review copies of the service information
incorporated by reference for this AD at the FAA, Central Region,
Office of the Regional Counsel, 901 Locust, Kansas City, Missouri
64106. For information on the availability of this material at the
Central Region, call<PHONE_NUMBER>.
    (4) You may also review copies of the service information
incorporated by reference for this AD 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/code_of_federal_regulations/
ibr_locations.html.

    Issued in Kansas City, Missouri on June 15, 2010.
Sandra J. Campbell,
Acting Manager, Small Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-14990 Filed 6-22-10; 8:45 am]
BILLING CODE 4910-13-P