[Federal Register Volume 88, Number 102 (Friday, May 26, 2023)]
[Notices]
[Pages 34149-34150]
[FR Doc No: 2023-11296]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP23-475-000]

PPG Shawville Pipeline, LLC; Notice of Application and
Establishing Intervention Deadline

    Take notice that on May 8, 2023, PPG Shawville Pipeline, LLC (PPG
Shawville), 3500 East College Ave., Suite 1300, Box 6, State College,
PA 16801, filed an application under section 7(b) of the Natural Gas
Act (NGA) requesting: (1) permission for PPG Shawville, an existing
interstate natural gas pipeline, to abandon its natural gas gathering
facilities and services by transfer to PPG Gathering LLC; and (2)
confirmation that, once owned and operated by PPG Gathering LLC, the
facilities that are the subject of the Application and the services to
be provided by PPG Gathering LLC will be exempt from the Commission's
jurisdiction under section 1(b) of the Natural Gas Act, all as more
fully set forth in the application which is on file with the Commission
and open for public inspection.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (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. At this time,
the Commission has suspended access to the Commission's Public
Reference Room. For assistance, contact the Federal Energy Regulatory
Commission at [email protected] or call toll-free, (886) 208-
3676 or TTY,<PHONE_NUMBER>.
    Any questions regarding this application may be directed to Josh
Hull, PPG Shawville Pipeline LLC, 3500 East College Ave., Suite 1300,
Box 6, State College, PA 16801, or by phone<PHONE_NUMBER>, or by email
at [email protected].
    Pursuant to section 157.9 of the Commission's Rules of Practice and
Procedure,\1\ within 90 days of this Notice the Commission staff will
either: complete its environmental review and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review. If a Notice of Schedule
for Environmental Review is issued, it will indicate, among other
milestones, the anticipated date for the Commission staff's issuance of
the final environmental impact statement (FEIS) or environmental
assessment (EA) for this proposal. The filing of an EA in the
Commission's public record for this proceeding or the issuance of a
Notice of Schedule for Environmental Review will serve to notify
federal and state agencies of the timing for the completion of all
necessary reviews, and the subsequent need to complete all federal
authorizations within 90 days of the date of issuance of the Commission
staff's FEIS or EA.
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    \1\ 18 CFR (Code of Federal Regulations) 157.9.
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Public Participation

    There are three ways to become involved in the Commission's review
of this project: you can file a protest to the project, you can file a
motion to intervene in the proceeding, and you can file comments on the
project. There is no fee or cost for filing protests, motions to
intervene, or comments. The deadline for filing protests, motions to
intervene, and comments is 5:00 p.m. Eastern Time on June 12, 2023. How
to file protests, motions to intervene, and comments is explained
below.

Protests

    Pursuant to section 157.205 of the Commission's regulations under
the NGA,\2\ any person \3\ or the Commission's staff may file a protest
to the request. If no protest is filed within the time allowed or if a
protest is filed and then withdrawn within 30 days after the allowed
time for filing a protest, the proposed activity shall be deemed to be
authorized effective the day after the time allowed for protest. If a
protest is filed and not withdrawn within 30 days after the time
allowed for filing a protest, the instant request for authorization
will be considered by the Commission.
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    \2\ 18 CFR 157.205.
    \3\ Persons include individuals, organizations, businesses,
municipalities, and other entities. 18 CFR 385.102(d).

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    Protests must comply with the requirements specified in section
157.205(e) of the Commission's regulations,\4\ and must be submitted by
the protest deadline, which is June 12, 2023. A protest may also serve
as a motion to intervene so long as the protestor states it also seeks
to be an intervenor.
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    \4\ 18 CFR 157.205(e).
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Interventions

    Any person has the option to file a motion to intervene in this
proceeding. Only intervenors have the right to request rehearing of
Commission orders issued in this proceeding and to subsequently
challenge the Commission's orders in the U.S. Circuit Courts of Appeal.
    To intervene, you must submit a motion to intervene to the
Commission in accordance with Rule 214 of the Commission's Rules of
Practice and Procedure \5\ and the regulations under the NGA \6\ by the
intervention deadline for the project, which is June 12, 2023. As
described further in Rule 214, your motion to intervene must state, to
the extent known, your position regarding the proceeding, as well as
your interest in the proceeding. For an individual, this could include
your status as a landowner, ratepayer, resident of an impacted
community, or recreationist. You do not need to have property directly
impacted by the project in order to intervene. For more information
about motions to intervene, refer to the FERC website at https://www.ferc.gov/how-guides.
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    \5\ 18 CFR 385.214.
    \6\ 18 CFR 157.10.
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    All timely, unopposed motions to intervene are automatically
granted by operation of Rule 214(c)(1). Motions to intervene that are
filed after the intervention deadline are untimely and may be denied.
Any late-filed motion to intervene must show good cause for being late
and must explain why the time limitation should be waived and provide
justification by reference to factors set forth in Rule 214(d) of the
Commission's Rules and Regulations. A person obtaining party status
will be placed on the service list maintained by the Secretary of the
Commission and will receive copies (paper or electronic) of all
documents filed by the applicant and by all other parties.

Comments

    Any person wishing to comment on the project may do so. The
Commission considers all comments received about the project in
determining the appropriate action to be taken. To ensure that your
comments are timely and properly recorded, please submit your comments
on or before June 12, 2023. The filing of a comment alone will not
serve to make the filer a party to the proceeding. To become a party,
you must intervene in the proceeding.

How To File Protests, Interventions, and Comments

    There are two ways to submit protests, motions to intervene, and
comments. In both instances, please reference the Project docket number
CP23-475-000 in your submission.
    (1) You may file your protest, motion to intervene, and comments by
using the Commission's eFiling feature, which is located on the
Commission's website (www.ferc.gov) under the link to Documents and
Filings. New eFiling users must first create an account by clicking on
``eRegister.'' You will be asked to select the type of filing you are
making; first select General'' and then select ``Protest'',
``Intervention'', or ``Comment on a Filing''; or \7\
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    \7\ Additionally, you may file your comments electronically by
using the eComment feature, which is located on the Commission's
website at www.ferc.gov under the link to Documents and Filings.
Using eComment is an easy method for interested persons to submit
brief, text-only comments on a project.
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    (2) You can file a paper copy of your submission by mailing it to
the address below. Your submission must reference the Project docket
number CP23-475-000.

To mail via USPS, use the following address: Kimberly D. Bose,
Secretary, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426
To send via any other courier, use the following address: Kimberly D.
Bose, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852

    The Commission encourages electronic filing of submissions (option
1 above) and has eFiling staff available to assist you at (202) 502-
8258 or [email protected].
    Protests and motions to intervene must be served to the applicant
by mail to: Josh Hull, PPG Shawville Pipeline LLC, 3500 East College
Ave., Suite 1300, Box 6, State College, PA 16801 or by email at
[email protected].
    Any subsequent submissions by an intervenor must be served on the
applicant and all other parties to the proceeding. Contact information
for parties can be downloaded from the service list at the eService
link on FERC Online.

Tracking the Proceeding

    Throughout the proceeding, additional information about the project
will be available from the Commission's Office of External Affairs, at
(866) 208-FERC, or on the FERC website at www.ferc.gov using the
``eLibrary'' link as described above. The eLibrary link also provides
access to the texts of all formal documents issued by the Commission,
such as orders, notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. For more information and to register, go to
www.ferc.gov/docs-filing/esubscription.asp.
    Intervention Deadline: 5:00 p.m. Eastern Time on June 12, 2023.

    Dated: May 22, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023-11296 Filed 5-25-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: May 9, 2007 (Volume 72, Number 89)]
[Rules and Regulations]
[Page 26310-26316]
[DOCID:fr09my07-12]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 180

[EPA-HQ-OPP-2005-0535; FRL-8127-2]

Clethodim; Pesticide Tolerance

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This regulation establishes tolerances for combined residues
of clethodim and certain of its metabolites in or on asparagus; flax,
seed; herb, subgroup 19A; hop, dried cones; leafy greens subgroup 4A;
safflower, meal; safflower, seed; sesame, seed; and vegetable, legume,
group 6, except soybean. The Interregional Research Project Number 4
(IR-4) requested these tolerances under the Federal Food, Drug, and
Cosmetic Act (FFDCA).

DATES: This regulation is effective May 9, 2007. Objections and
requests for hearings must be received on or before July 9, 2007, and
must be filed in accordance with the instructions provided in 40 CFR
part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION).

ADDRESSES: EPA has established a docket for this action under docket
identification (ID) number EPA-HQ-OPP-2005-0535. To access the
electronic docket, go to http://www.regulations.gov, select ``Advanced

Search,'' then ``Docket Search.'' Insert the docket ID number where
indicated and select the ``Submit'' button. Follow the instructions on
the regulations.gov web site to view the docket index or access
available documents. All documents in the docket are listed in the
docket index available in regulations.gov. Although listed in the
index, some information is not publicly available, e.g., Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available in the electronic docket at http://www.regulations.gov,or, if

only available in hard copy, at the OPP Regulatory Public Docket in Rm.
S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington,
VA. The Docket Facility is open from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal holidays. The Docket telephone number
is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Sidney Jackson, Registration Division
(7505P), Office of Pesticide Programs, Environmental Protection Agency,
1200 Pennsylvania Ave., NW., Washington, DC 20460-0001; telephone
number:<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Action Apply to Me?

    You may be potentially affected by this action if you are an
agricultural producer, food manufacturer, or pesticide manufacturer.
Potentially affected entities may include, but are not limited to those
engaged in the following activities:
     Crop production (NAICS code 111), e.g., agricultural
workers; greenhouse, nursery, and floriculture workers; farmers.
     Animal production (NAICS code 112), e.g., cattle ranchers
and farmers, dairy cattle farmers, livestock farmers.
     Food manufacturing (NAICS code 311), e.g., agricultural
workers; farmers; greenhouse, nursery, and floriculture workers;
ranchers; pesticide applicators.
     Pesticide manufacturing (NAICS code 32532), e.g.,
agricultural workers; commercial applicators; farmers; greenhouse,
nursery, and floriculture workers; residential users.
    This listing is not intended to be exhaustive, but rather to
provide a guide for readers regarding entities likely to be affected by
this action. Other types of entities not listed in this unit could also
be affected. The North American Industrial Classification System
(NAICS) codes have been provided to

assist you and others in determining whether this action might apply to
certain entities. If you have any questions regarding the applicability
of this action to a particular entity, consult the person listed under
FOR FURTHER INFORMATION CONTACT.

B. How Can I Access Electronic Copies of this Document?

    In addition to accessing an electronic copy of this Federal
Register document through the electronic docket at http://www.regulations.gov
, you may access this Federal Register document

electronically through the EPA Internet under the ``Federal Register''
listings at http://www.epa.gov/fedrgstr. You may also access a

frequently updated electronic version of EPA's tolerance regulations at
40 CFR part 180 through the Government Printing Office's pilot e-CFR
site at http://www.gpoaccess.gov/ecfr.

C. Can I File an Objection or Hearing Request?

    Under section 408(g) of the FFDCA, any person may file an objection
to any aspect of this regulation and may also request a hearing on
those objections. You must file your objection or request a hearing on
this regulation in accordance with the instructions provided in 40 CFR
part 178. To ensure proper receipt by EPA, you must identify docket ID
number EPA-HQ-OPP-2005-0535 in the subject line on the first page of
your submission. All requests must be in writing, and must be mailed or
delivered to the Hearing Clerk as required by 40 CFR part 178 on or
before July 9, 2007.
    In addition to filing an objection or hearing request with the
Hearing Clerk as described in 40 CFR part 178, please submit a copy of
the filing that does not contain any CBI for inclusion in the public
docket that is described in ADDRESSES. Information not marked
confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA
without prior notice. Submit this copy, identified by docket ID number
EPA-HQ-OPP-2005-0535, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.

Follow the on-line instructions for submitting comments.
     Mail: Office of Pesticide Programs (OPP) Regulatory Public
Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket's normal hours of operation (8:30 a.m. to 4
p.m., Monday through Friday, excluding legal holidays). Special
arrangements should be made for deliveries of boxed information. The
Docket telephone number is<PHONE_NUMBER>.

II. Petition for Tolerance

    In the Federal Register of April 21, 2006 (71 FR 20669) (FRL-8056-
8), EPA issued a notice pursuant to section 408(d)(3) of FFDCA, 21
U.S.C. 346a(d)(3), announcing the filing of pesticide petitions (PP
3E6555, 5E6977, 4E6836, 5E6978, and 4F6895) by the Interregional
Research Project 4 (IR-4), 500 College Road East, Suite 201 W,
Princeton, NJ 08540. The petition requested that 40 CFR 180.458 be
amended by establishing a tolerance for combined residues of the
herbicide clethodim, (E)-()-2-[1-[[(3-chloro-2-
propenyl)oxy]imino]propyl]-5-[2(ethylthio)propyl]-3-hydroxy-2-
cyclohexen-1-one and its metabolites containing the 2-cyclohexene-1-one
moiety in or on flax, seed at 0.5 parts per million (ppm) (PP 3E6555);
herb, subgroup 19A at 10.0 ppm (4E6836); asparagus at 2.0 ppm and hop,
dried cones at 0.5 ppm (5E6977); leafy greens subgroup 4A at 2.0 ppm
(5E6978); and sesame, seed at 0.40 ppm; vegetable, legume, group 6 at
3.0 ppm; safflower, meal at 10.0 ppm; and safflower, seed at 5.0 ppm
(4F6895). That notice referenced a summary of the petitions prepared by
Valent U.S.A. Corporation, 133 N. California Blvd., Walnut Creek, CA
94596, the registrant, which is available to the public in the docket,
http://www.regulations.gov.

    There were no comments received in response to the notice of
filing.
    Based upon review of the data supporting the petition, EPA has
recommended certain changes to the petitions including:
     Revised tolerance levels for certain commodities, and:
     A specific tolerance expression to be applied to all new
uses in an effort to harmonize tolerances with Codex Maxium Residue
Limits. The reasons for these changes are explained in Unit V.

III. Aggregate Risk Assessment and Determination of Safety

    Section 408(b)(2)(A)(i) of the FFDCA allows EPA to establish a
tolerance (the legal limit for a pesticide chemical residue in or on a
food) only if EPA determines that the tolerance is ``safe.'' Section
408(b)(2)(A)(ii) of the FFDCA defines ``safe'' to mean that ``there is
a reasonable certainty that no harm will result from aggregate exposure
to the pesticide chemical residue, including all anticipated dietary
exposures and all other exposures for which there is reliable
information.'' This includes exposure through drinking water and in
residential settings, but does not include occupational exposure.
Section 408(b)(2)(C) of the FFDCA requires EPA to give special
consideration to exposure of infants and children to the pesticide
chemical residue in establishing a tolerance and to ``ensure that there
is a reasonable certainty that no harm will result to infants and
children from aggregate exposure to the pesticide chemical residue. . .
.'' These provisions were added to the FFDCA by the Food Quality
Protection Act (FQPA) of 1996.
    Consistent with FFDCA section 408(b)(2)(D), and the factors
specified in section 408(b)(2)(D), EPA has reviewed the available
scientific data and other relevant information in support of this
action. EPA has sufficient data to assess the hazards of and to make a
determination on aggregate exposure for the petitioned for tolerances
for combined residues of clethodim on flax, seed at 0.6 ppm; herb,
subgroup 19A at 12.0 ppm (4E6836); asparagus at 1.7 ppm and hop, dried
cones at 0.5 ppm; leafy greens subgroup 4A at 2.0 ppm (5E6978); and
sesame, seed at 0.35 ppm; vegetable, legume (except soybean), group 6
at 3.5 ppm; safflower, meal at 10.0 ppm; and safflower, seed at 5.0
ppm. EPA's assessment of exposures and risks associated with
establishing the tolerance follows.

A. Toxicological Profile

    EPA has evaluated the available toxicity data and considered their
validity, completeness, and reliability as well as the relationship of
the results of the studies to human risk. EPA has also considered
available information concerning the variability of the sensitivities
of major identifiable subgroups of consumers, including infants and
children. Specific information on the studies received and the nature
of the adverse effects caused by clethodim as well as the no-observed-
adverse-effect-level (NOAEL) and the lowest-observed-adverse-effect-
level (LOAEL) from the toxicity studies can be found at http://www.regulations.gov.
 The referenced document is available in the docket

established by this action, which is described under ADDRESSES, and is
identified as ``Clethodim: Human Health Risk Assessment for Proposed
Uses on Herb Sugbroup 19A, Leafy Greens......and Flax seed, dated 03/
07/2007'' in that docket.

    Additionally, clethodim toxicological data are discussed in the
final rule published in the Federal Register of March 14, 2001(66 FR
14829) (FRL-6770-8).

B. Toxicological Endpoints

    For hazards that have a threshold below which there is no
appreciable risk, the toxicological level of concern (LOC) is derived
from the highest dose at which NOAELs are observed in the toxicology
study identified as appropriate for use in risk assessment. However, if
a NOAEL cannot be determined, the LOAEL of concern identified is
sometimes used for risk assessment. Uncertainty/safety factors (UF) are
used in conjunction with the LOC to take into account uncertainties
inherent in the extrapolation from laboratory animal data to humans and
in the variations in sensitivity among members of the human population
as well as other unknowns. Safety is assessed for acute and chronic
risks by comparing aggregate exposure to the pesticide to the acute
population adjusted dose (aPAD) and chronic population adjusted dose
(cPAD). The aPAD and cPAD are calculated by dividing the LOC by all
applicable uncertainty/safety factors. Short-term, intermediate-term,
and long-term risks are evaluated by comparing aggregate exposure to
the LOC to ensure that the margin of exposure (MOE) called for by the
product of all applicable uncertainty/safety factors is not exceeded.
    For non-threshold risks, the Agency assumes that any amount of
exposure will lead to some degree of risk and estimates risk in terms
of the probability of occurrence of additional adverse cases.
Generally, cancer risks are considered non-threshold. For more
information on the general principles EPA uses in risk characterization
and a complete description of the risk assessment process, see http://www.epa.gov/fedrgstr/EPA-PEST/1997/November/Day-26/p30948.htm
.

    A summary of the toxicological endpoints for clethodim used for
human risk assessment can be found at http://www.regulations.gov in document

``Clethodim: Human Health Risk Assessment for Proposed Uses on Herb
Sugbroup 19A, Leafy Greens......and Flax seed, dated 03/07/2007'' at
page 14 in Docket ID EPA-HQ-OPP-2005-0535.

C. Exposure Assessment

    1. Dietary exposure from food and feed uses. In evaluating dietary
exposure to clethodim, EPA considered exposure under the petitioned-for
tolerances as well as all existing clethodim tolerances in (40 CFR
180.458). EPA assessed dietary exposures from clethodim in food as
follows:
    i. Acute exposure. Quantitative acute dietary exposure and risk
assessments are performed for a food-use pesticide, if a toxicological
study has indicated the possibility of an effect of concern occurring
as a result of a 1-day or single exposure. No such effects were
identified in the toxicological studies for clethodim; therefore, a
quantitative acute dietary exposure assessment is unnecessary.
    ii. Chronic exposure. In conducting the chronic dietary (food and
water) exposure assessment, EPA used the food consumption data from the
U.S. Department of Agriculture's (USDA) Nationwide Continuing Surveys
of Food Intake by Individuals (CSFII) from 1994-1996 and 1998. The
chronic dietary exposure assessment was based on the assumption of
tolerance-level residues for existing and proposed tolerances; and
incorporated percent crop treated (PCT) information for certain
registered uses.
    iii. Cancer. Clethodim was negative for carcinogenicity in feeding
studies in rats and mice and was classified as ``not likely'' to be a
human carcinogen. Therefore, a quantitative exposure assessment to
evaluate cancer risk is unnecessary.
    iv. Anticipated residue and PCT information. Section 408(b)(2)(F)
of FFDCA states that the Agency may use data on the actual percent of
food treated for assessing chronic dietary risk only if:
    a. The data used are reliable and provide a valid basis to show
what percentage of the food derived from such crop is likely to contain
such pesticide residue;
    b. The exposure estimate does not underestimate exposure for any
significant subpopulation group; and
    c. Data are available on pesticide use and food consumption in a
particular area, the exposure estimate does not understate exposure for
the population in such area. In addition, the Agency must provide for
periodic evaluation of any estimates used. To provide for the periodic
evaluation of the estimate of PCT as required by section 408(b)(2)(F)
of FFDCA, EPA may require registrants to submit data on PCT.
    The Agency used PCT information as follows:

----------------------------------------------------------------------------------------------------------------
                 Commodity                               Percent of Crop Treated (Weighted Average)
----------------------------------------------------------------------------------------------------------------
Beets                                                                                1
----------------------------------------------------------------------------------------------------------------
Broccoli                                                                                10
----------------------------------------------------------------------------------------------------------------
Cabbage                                                                                1
----------------------------------------------------------------------------------------------------------------
Cantaloupes                                                                                1
----------------------------------------------------------------------------------------------------------------
Carrots                                                                                10
----------------------------------------------------------------------------------------------------------------
Celery                                                                                5
----------------------------------------------------------------------------------------------------------------
Cotton                                                                                1
----------------------------------------------------------------------------------------------------------------
Cucumbers                                                                                1
----------------------------------------------------------------------------------------------------------------
Dry beans                                                                                5
----------------------------------------------------------------------------------------------------------------
Lettuce                                                                                1
----------------------------------------------------------------------------------------------------------------
Onions                                                                                10
----------------------------------------------------------------------------------------------------------------
Peanuts                                                                                5
----------------------------------------------------------------------------------------------------------------

Potatoes                                                                                5
----------------------------------------------------------------------------------------------------------------
Pumpkins                                                                                5
----------------------------------------------------------------------------------------------------------------
Soybeans                                                                                5
----------------------------------------------------------------------------------------------------------------
Squash                                                                                5
----------------------------------------------------------------------------------------------------------------
Strawberries                                                                                1
----------------------------------------------------------------------------------------------------------------
Sugar beets                                                                                45
----------------------------------------------------------------------------------------------------------------
Sunflowers                                                                                20
----------------------------------------------------------------------------------------------------------------
Sweet potatoes                                                                                1
----------------------------------------------------------------------------------------------------------------
Tomatoes                                                                                1
----------------------------------------------------------------------------------------------------------------
Watermelons                                                                                5
----------------------------------------------------------------------------------------------------------------

    EPA uses an average PCT for chronic dietary risk analysis. The
average PCT figure for each existing use is derived by combining
available federal, state, and private market survey data for that use,
averaging by year, averaging across all years, and rounding up to the
nearest multiple of five percent except for those situations in which
the average PCT is less than one. In those cases < 1% is used as the
average and < 2.5% is used as the maximum. EPA uses a maximum PCT for
acute dietary risk analysis. The maximum PCT figure is the single
maximum value reported overall from available federal, state, and
private market survey data on the existing use, across all years, and
rounded up to the nearest multiple of five percent. In most cases, EPA
uses available data from USDA/National Agricultural Statistics Service
(NASS), Proprietary Market Surveys, and the National Center for Food
and Agriculture Policy (NCFAP) for the most recent six years.
    The Agency believes that the three conditions listed above have
been met. With respect to Condition 1, PCT estimates are derived from
sources as discussed above including Federal and private market survey
data, which are reliable and have a valid basis. The Agency is
reasonably certain that the percentage of the food treated is not
likely to be an underestimation. As to Conditions 2 and 3, regional
consumption information and consumption information for significant
subpopulations is taken into account through EPA's computer-based model
for evaluating the exposure of significant subpopulations including
several regional groups. Use of this consumption information in EPA's
risk assessment process ensures that EPA's exposure estimate does not
understate exposure for any significant subpopulation group and allows
the Agency to be reasonably certain that no regional population is
exposed to residue levels higher than those estimated by the Agency.
Other than the data available through national food consumption
surveys, EPA does not have available information on the regional
consumption of food to which clethodim may be applied in a particular
area.
    2. Dietary exposure from drinking water.The Agency lacks sufficient
monitoring data to complete a comprehensive dietary exposure analysis
and risk assessment for clethodim in drinking water. Because the Agency
does not have comprehensive monitoring data, drinking water
concentration estimates are made by reliance on simulation or modeling
taking into account data on the environmental fate characteristics of
clethodim. Further information regarding EPA drinking water models used
in pesticide exposure assessment can be found at http://www.epa.gov/oppefed1/models/water/index.htm
.

    Surface water and ground water contamination may occur from the
sulfoxide and sulfone degradates of clethodim, as well as from parent
clethodim. However, the risk of water contamination is primarily
associated with clethodim sulfone and clethodim sulfoxide rather than
parent clethodim based on greater persistence and mobility for these
degradates. Parent clethodim may move from the treated field to surface
water or ground water through run-off or leaching which occurs shortly
after application (e.g. rainfall). Also, the sulphoxide and sulphone
degradates may migrate by runoff or leaching for longer periods of time
since they are more persistent. All residues of clethodim (parent and
degradates) are very mobile in soil.
    The only significant routes of dissipation of clethodim are
microbial degradation in soil and movement by leaching or runoff.
Parent clethodim is moderately persistent to hydrolysis at pH 5 with
half-lives of 26-42 days and stable at pH 7 and 9 with half-lives
greater than 300 days. Even though acceptable water and soil photolysis
studies show half-lives of 1.5 to 9.3 days, this may not be an
important route of dissipation because of suspended sediment and
shading. Photolysis is only an important route of dissipation in
shallow, well-mixed surface water with no shading. The half-lives in
aerobic soil are 2-3 days for parent clethodim, and 30-38 days for
total toxic residues (parent + sulphoxide + sulphone). The sulphoxide
and sulphone metabolites are more persistent than parent clethodim and
are formed in significant quantities in soil. All residues of clethodim
(parent and metabolites) are very mobile in soil with five out of six
soil desorption coefficients (Kd) less than one. The field dissipation
studies show that parent clethodim was only found at levels at or near
the quantitation limit of 0.02 ppm, which is consistent with the rapid
degradation in soil. Clethodim sulphoxide had an apparent half-life of
2.5 to 3.7 days, indicating that movement from the treated field may
have been an important route of dissipation.
    In surface water, parent clethodim may move from the treated field
to surface water or ground water through run-off or leaching which
occurs shortly after application (e.g. rainfall). Also, the sulphoxide
and sulphone degradates may migrate by runoff or leaching for longer
periods of time since they are

more persistent. All residues of clethodim (parent and degradates) are
very mobile in soil.
    In ground water, parent clethodim is mobile, but has a short
metabolic half-life in soil under aerobic conditions. Therefore, parent
compound should not be a ground water concern in most environments.
While it is expected that parent clethodim can be transformed to
sulphoxide or sulphone products quickly by soil metabolism (t[frac12] =
1 - 3 days), it may be more persistent since it is leached below the
more biologically active top soil. In such instances (i.e., leaching
rainfall shortly after application) parent clethodim concentrations may
be higher than estimated and correspondingly, the concentration of the
degradates sulphoxide and sulphone would be lower. In the event that
parent clethodim did reach ground water, the available routes of
disappearance would be dilution, some metabolism to persistent
degradates, and slow hydrolysis with the rate depending on the pH of
the ground water. Estimates are provided for both parent clethodim and
total toxic clethodim (parent + sulphoxide + sulphone).
    Based on the (FQPA Index Reservoir Screening Tool (FIRST)) model,
Tier 1 surface water concentrations for parent clethodim and total
toxic residues (parent + sulphoxide + sulphone) were estimated in
drinking water. These estimates are based on a maximum application rate
of 0.5 lb ai/acre per year (2 applications). The peak FIRST estimated
environmental concentration (EEC) for clethodim and it's degradates,
sulphoxide and sulphone for acute exposures are estimated to be 38.9
parts per billion (ppb) for surface water. The EECs for chronic
exposures are estimated to be 7.6 ppb for surface water. For drinking
water derived from ground water, the Screening Concentration in Ground
water (SCI-GROW) model estimates a total toxic clethodim concentration
of 1.39 ug/L sources were not included, as the EEC's for this water
source are minimal in comparison to surface water.
    Modeled estimates of drinking water concentrations were directly
entered into the dietary exposure model. For acute dietary risk
assessment, the water concentration value of 38.9 ppb was used to
access the contribution to drinking water. For chronic dietary risk
assessment, the water concentration of value 7.6 ppb was used to access
the contribution to drinking water.
    3. From non-dietary exposure. The term ``residential exposure'' is
used in this document to refer to non-occupational, non-dietary
exposure (e.g., for lawn and garden pest control, indoor pest control,
termiticides, and flea and tick control on pets).
    Although clethodim is registered for use in non-crop areas and for
commercial use on ornamentals, no residential exposure is expected from
these uses because these uses are clearly intended for commercial and
institutional applications on commercially grown ornamentals and not
for ornamentals in a residential setting. Therefore, non-occupational
exposure assessment of clethodim was not performed.
    4. Cumulative effects from substances with a common mechanism of
toxicity. Section 408(b)(2)(D)(v) of the FFDCA requires that, when
considering whether to establish, modify, or revoke a tolerance, the
Agency consider ``available information'' concerning the cumulative
effects of a particular pesticide's residues and ``other substances
that have a common mechanism of toxicity.''
    Unlike other pesticides for which EPA has followed a cumulative
risk approach based on a common mechanism of toxicity, EPA has not made
a common mechanism of toxicity finding as to clethodim and any other
substances and clethodim does not appear to produce a toxic metabolite
produced by other substances. For the purposes of this tolerance
action, therefore, EPA has not assumed that clethodim has a common
mechanism of toxicity with other substances. For information regarding
EPA's efforts to determine which chemicals have a common mechanism of
toxicity and to evaluate the cumulative effects of such chemicals, see
the policy statements released by EPA's Office of Pesticide Programs
concerning common mechanism determinations and procedures for
cumulating effects from substances found to have a common mechanism on
EPA's website at http://www.epa.gov/pesticides/cumulative.

D. Safety Factor for Infants and Children

    1. In general. Section 408 of FFDCA provides that EPA shall apply
an additional (10X) tenfold margin of safety for infants and children
in the case of threshold effects to account for prenatal and postnatal
toxicity and the completeness of the data based on toxicity and
exposure unless EPA determines based on reliable data that a different
margin of safety will be safe for infants and children. This additional
margin of safety is commonly referred to as the FQPA safety factor. In
applying this provision, EPA either retains the default value of 10X
when reliable data do not support the choice of a different factor, or,
if reliable data are available, EPA uses a different additional FQPA
safety factor value based on the use of traditional uncertainty/safety
factors and/or special FQPA safety factors, as appropriate.
    2. Prenatal and postnatal sensitivity. There is no evidence of
susceptibility following in utero and/or postnatal exposure to
clethodim in the developmental toxicity studies in rats or rabbits, and
in the 2-generation rat reproduction study.
    There are no residual uncertainties concerning pre- and postnatal
toxicity and no neurotoxicity concerns.
    3. Conclusion. EPA has determined that reliable data show that it
would be safe for infants and children to reduce the FQPA safety factor
to 1X. That decision is based on the following findings:
    i. The toxicity data base for clethodim is complete.
    ii. There is no indication that clethodim is a neurotoxic chemical
and there is no need for a developmental neurotoxicity study or
additional uncertainty factors to account for neurotoxicity.
    iii. There is no evidence that clethodim results in increased
susceptibility in in utero rats or rabbits in the prenatal
developmental studies or in young rats in the two-generation
reproduction study.
    iv. There are no residual uncertainties identified in the exposure
databases. The dietary (food and drinking water) exposure assessment
will not underestimate the potential exposure for infants, children,
and/or women of childbearing age. There is no potential for residential
exposure.

E. Aggregate Risks and Determination of Safety

    Safety is assessed for acute and chronic risks by comparing
aggregate exposure to the pesticide to the aPAD and cPAD). The aPAD and
cPAD are calculated by dividing the LOC by all applicable uncertainty/
safety factors. For linear cancer risks, EPA calculates the probability
of additional cancer cases given aggregate exposure. Short-term,
intermediate, and long-term risks are evaluated by comparing aggregate
exposure to the LOC to ensure that the margin of exposure MOE called
for by the product of all applicable uncertainty/safety factors is not
exceeded.
    1. Acute risk. There were no effects observed in oral toxicity
studies including developmental toxicity studies in rats and rabbits
that could be attributable to a single dose (exposure).

Therefore, clethodim is not expected to pose an acute risk.
    2. Chronic risk. Using the exposure assumptions described in this
unit for chronic exposure, EPA has concluded that exposure to clethodim
from food and water will utilize 29% of the cPAD for the general U.S.
population group and 84% of the cPAD for children 1-2 years old, the
subpopulation group with greatest exposure. There are no residential
uses for clethodim that result in chronic residential exposure to
clethodim.
    3. Short-term risk. Short-term aggregate exposure takes into
account residential exposure plus chronic exposure to food and water
(considered to be a background exposure level).
    Clethodim is not registered for use on any sites that would result
in residential exposure. Therefore, the aggregate risk is the sum of
the risk from food and water which do not exceed the Agency's level of
concern.
    4. Intermediate-term risk. Intermediate-term aggregate exposure
takes into account residential exposure plus chronic exposure to food
and water (considered to be a background exposure level).
    Clethodim is not registered for use on any sites that would result
in residential exposure. Therefore, the aggregate risk is the sum of
the risk from food and water, which do not exceed the Agency's level of
concern.
    5. Aggregate cancer risk for U.S. population. Clethodim is
classified as a ``not likely'' to be carcinogenic in humans based on
the results of a carcinogenicity study in mice and the combined chronic
toxicity and carcinogenicity study in the rat. Therefore, clethodim is
not expected to pose a cancer risk to humans.
    6. Determination of safety. Based on these risk assessments, EPA
concludes that there is a reasonable certainty that no harm will result
to the general population, or to infants and children from aggregate
exposure to clethodim residues.

IV. Other Considerations

A. Analytical Enforcement Methodology

    For plants, adequate methodology is available for enforcement of
the proposed tolerances through the use of FDA Multiresidue Methods.
The analytical method used to assay clethodim residues in/on
commodities that are the subject of this action was RM-26B-3 (a
modification of RM-26B-2) or RE 45601 (also adapted from Valent (the
registrant) method RM-26B), which was validated for the analyses of
residues of clethodim sulfoxide and its metabolite (5-hydroxy clethodim
sulfone) in/on green onions, leaf lettuce, and cabbage. Samples were
analyzed for combined clethodim residues (dimethylester sulfone (DME)
and 5-hydroxy dimethylester sulfone (DME-OH)) by gas chromatography
with flame photometric detection in the sulfur mode (GC/FPD-S). In the
analytical results, DME and DME-OH were reported as clethodim
equivalents. Only one crop, hops, dried cones, had residues below the
limit of quantitation (LOQ) < 0.50 ppm) for combined total residues of
clethodim (DME and DME-OH). The concurrent recoveries of clethodim (DME
and DME-OH) for the submitted trials were generally within the accepted
range of 70-120%. An exception was the concurrent recovery of DME-OH in
succulent pea at 62%. There is no reason to believe that the residues
of clethodim were unstable, or that the analytical method was not
reliable under the conditions of these studies.
    For livestock, Analytical Method RM-26B-3 (a modification of RM-
26B-2) has been successfully validated for use with livestock
commodities and has been submitted to the FDA for publication in PAM
II.
    IR-4 (petitioner) has previously submitted data describing the
testing of clethodim and its metabolites through FDA Multiresidue
Methods. These data, which have been forwarded to FDA for review
indicate that adequate recoveries of clethodim, clethodim sulphoxide,
and 5-OH clethodim sulphone have been obtained under FDA's multiresidue
protocols.
    Accordingly, EPA concludes that Adequate enforcement methodology
(GC/FPD-S) is available to enforce the tolerance expression. The method
may be requested from: Chief, Analytical Chemistry Branch,
Environmental Science Center, 701 Mapes Rd., Ft. Meade, MD 20755-5350;
telephone number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>

B. International Residue Limits

    There are currently Codex MRLs established for clethodim and its
metabolites containing 5-(2-ethylthiopropyl)cyclohexene-3-one and 5-(2-
ethylthiopropyl)-5-hydroxycyclohexene-3-one moieties and their
sulphoxides and sulphones, expressed as clethodim, in or on bean, dry
at 2 ppm; beans, except broad bean and soya bean at 0.5 ppm; field peas
(dry) at 2 ppm; and soya bean (dry) at 10 ppm. Based on newly submitted
field trial data, the Agency is establishing a new crop group
tolerance, i.e., on vegetables, legume, group (crop group 6), except
soybean. Because the Agency is establishing the tolerances on legume
vegetables as a crop group, it cannot harmonize the crop group
tolerance with the varying Codex MRLs for individual legume vegetables.
    There are established Canadian MRLs for clethodim residues and its
metabolites containing the 2-cyclohex-1-enone moiety on soybean at 10.0
ppm, beans, 0.5, chickpea at 0.5 ppm; lentils at 0.5 ppm; pea, dry at
0.5 ppm and flax seed at 0.3 ppm. In addition, Mexican MRLs are
established for clethodim on bean, kidney at 2.0 ppm and soya bean at
10 ppm. Harmonization with Canadian and Mexican MRLs is not possible
based on the MRL calculations of the newly submitted data.

V. Conclusion

    The Agency has revised the proposed tolerance expression to make it
consistent with the existing tolerance expression in 40 CFR 180.458
(a)(3). Clethodim is defined as the combined residues of clethodim and
its metabolites containing the 5-(2-ethylthiopropyl)cyclohexen-3-one
and 5-(2-ethylthiopropyl)-5-hydroxycyclohexen-3-one moieties and their
sulphoxides and sulphones. In addition, the Agency revised tolerance
levels proposed by IR-4 for certain commodities to reflect tolerance
levels supported by current data bases.
    Therefore, tolerances are established for the combined residues of
the herbicide clethodim, (E)-()-2-[1-[[(3-chloro-2-
propenyl)oxy]imino]propyl]-5-[2-(ethylthio)propyl]-3-hydroxy-2-
cyclohexen-1-one and its metabolites containing the 5-(2-
ethylthiopropyl)cyclohexen-3-one and 5-(2-ethylthiopropyl)-5-
hydroxycyclohexen-3-one moieties and their sulphoxides and sulphones in
or on flax, seed at 0.6 ppm; herb, subgroup 19A at 12.0 ppm; asparagus
at 1.7 ppm; hop, dried cones at 0.5 ppm; leafy greens subgroup 4A at
2.0 ppm; and sesame, seed at 0.35 ppm; vegetable, legume group 6,
except soybean at 3.5 ppm; safflower, meal at 10.0 ppm; and safflower,
seed at 5.0 ppm.

VI. Statutory and Executive Order Reviews

    This final rule establishes a tolerance under section 408(d) of
FFDCA in response to a petition submitted to the Agency. The Office of
Management and Budget (OMB) has exempted these types of actions from
review under Executive Order 12866, entitled Regulatory Planning and
Review (58 FR 51735, October 4, 1993). Because this rule has been
exempted from review under Executive Order 12866, this rule is not

subject to Executive Order 13211, Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use (66 FR 28355,
May 22, 2001) or Executive Order 13045, entitled Protection of Children
from Environmental Health Risks and Safety Risks (62 FR 19885, April
23, 1997). This final rule does not contain any information collections
subject to OMB approval under the Paperwork Reduction Act (PRA), 44
U.S.C. 3501 et seq., nor does it require any special considerations
under Executive Order 12898, entitled Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations (59 FR 7629, February 16, 1994).
    Since tolerances and exemptions that are established on the basis
of a petition under section 408(d) of FFDCA, such as the tolerance in
this final rule, do not require the issuance of a proposed rule, the
requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et
seq.) do not apply.
    This final rule directly regulates growers, food processors, food
handlers and food retailers, not States or tribes, nor does this action
alter the relationships or distribution of power and responsibilities
established by Congress in the preemption provisions of section
408(n)(4) of FFDCA. As such, the Agency has determined that this action
will not have a substantial direct effect on States or tribal
governments, on the relationship between the national government and
the States or tribal governments, or on the distribution of power and
responsibilities among the various levels of government or between the
Federal Government and Indian tribes. Thus, the Agency has determined
that Executive Order 13132, entitled Federalism (64 FR 43255, August
10, 1999) and Executive Order 13175, entitled Consultation and
Coordination with Indian Tribal Governments (65 FR 67249, November 6,
2000) do not apply to this rule. In addition, This rule does not impose
any enforceable duty or contain any unfunded mandate as described under
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Public Law
104-4).
    This action does not involve any technical standards that would
require Agency consideration of voluntary consensus standards pursuant
to section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272
note).

VII. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report to each House of the Congress and to
the Comptroller General of the United States. EPA will submit a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Comptroller General of the
United States prior to publication of this final rule in the Federal
Register. This final rule is not a ``major rule'' as defined by 5
U.S.C. 804(2).

List of Subjects in 40 CFR Part 180

    Environmental protection, Administrative practice and procedure,
Agricultural commodities, Pesticides and pests, Reporting and
recordkeeping requirements.

    Dated: May 1, 2007.
Lois Rossi,
Director, Registration Division, Office of Pesticide Programs.

0
Therefore, 40 CFR chapter I is amended as follows:

PART 180--[AMENDED]

0
1. The authority citation for part 180 continues to read as follows:

    Authority: 21 U.S.C. 321(q), 346a and 371.

0
2. Section 180.458 is amended by alphabetically adding the following
commodities to the table in paragraph (a)(3) to read as follows:

Sec.  180.458  Clethodim; tolerances for residues.

    (a) * * *
    (3) * * *

------------------------------------------------------------------------
                   Commodity                        Parts per million
------------------------------------------------------------------------
Asparagus......................................                      1.7
------------------------------------------------------------------------
                                * * * * *
Flax seed......................................                      0.6
------------------------------------------------------------------------
                                * * * * *
Herb subgroup 19A..............................                     12.0
------------------------------------------------------------------------
                                * * * * *
Hop, dried cones...............................                      0.5
------------------------------------------------------------------------
                                * * * * *
Leafy greens subgroup 4A.......................                      2.0
------------------------------------------------------------------------
                                * * * * *
Safflower, meal................................                     10.0
------------------------------------------------------------------------
Safflower, seed................................                      5.0
------------------------------------------------------------------------
Sesame, seed...................................                     0.35
------------------------------------------------------------------------
                                * * * * *
Vegetable, legume group 6, except soybean......                      3.5
------------------------------------------------------------------------

* * * * *
[FR Doc. E7-8938 Filed 5-8-07; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register: May 19, 2010 (Volume 75, Number 96)]
[Notices]
[Page 28086-28088]
[DOCID:fr19my10-115]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62095; File No. SR-CBOE-2010-042]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Suspension of Seat Market

May 13, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on May 6, 2010, the Chicago Board Options
Exchange, Incorporated (``CBOE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the CBOE. CBOE has filed the proposal
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(3) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    CBOE proposes to amend its rules governing the sale and transfer of
Exchange memberships by adding new Interpretation and Policy .02 to
Rule 3.14. The rule proposal is available on the Exchange's Web site
(http://www.cboe.org/legal), at the Exchange's Office of the Secretary,
at the Commission's Public Reference Room, and on the Commission's Web
site at http://www.sec.gov.

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

    In its filing with the Commission, CBOE 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 those 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 parts of such
statements.

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

1. Purpose
    The purpose of the proposed rule change is to provide for a fair
and orderly market in shares of common stock of CBOE Holdings, Inc.
(``CBOE Holdings Common Stock'') in the unique circumstances presented
during the brief period, anticipated to be three business days, between
the commencement of the initial public offering of such shares and the
effectiveness of the demutualization of the Exchange. The timetable for
the demutualization of the Exchange and the public offering of CBOE
Holdings Common Stock is such that, although the demutualization
transaction will have been approved in a vote of the Exchange
membership prior to the commencement of the public offering, the
demutualization will not become effective until just prior to the
closing of the public offering, which is expected to occur three
business days after the commencement of the offering. This timetable
avoids having to address difficult administrative issues that would
otherwise arise on account of the need to issue special ``Class A'' and
``Class B'' shares of CBOE Holdings Common Stock to Exchange membership
owners and to participants in the settlement of the ``Exercise Right''
litigation, respectively, upon the effectiveness of the
demutualization. Upon the closing of the public offering, both of these
special share Classes will be converted into the same classes of shares
of CBOE Holding Common Stock. By essentially eliminating the time
interval between the effectiveness of the demutualization and the
closing of the public offering, the Exchange is able to avoid difficult
issues that would otherwise have to be addressed as a result of having
both Class A and Class B shares of CBOE Holdings Common Stock
outstanding prior to just before the closing of the public offering.
    As is customary in underwritten public offerings, immediately upon
the commencement of the public offering of shares of CBOE Holdings
common stock the shares will begin to be traded on a when-issued basis
on the exchange where the shares are listed. However, because the
effectiveness of the demutualization will not occur until just before
the closing of the public offering for the reason explained above,
Exchange memberships will continue to be outstanding concurrently with
the when-issued trading of the same class of shares into which they
will ultimately be converted. It is essential to the orderliness of the
public offering of shares of CBOE Holdings Common Stock and consistent
with the ability of the underwriters to engage in stabilization
transactions in those shares under Rule 104 of Regulation M under the
Securities Exchange Act of 1934,\5\ that while there is when-issued
trading in shares of CBOE Holdings Common Stock in the listed market
for these shares, there must not be an alternative market in the same
class of shares or in interests that are equivalent to those shares. If
there were to continue to be a market for Exchange memberships during
this brief period, it would amount to an alternative market for the
class of shares being offered, since upon the effectiveness of the
demutualization all outstanding Exchange memberships will be converted
into shares of CBOE Holdings Common Stock. The Exchange believes that
such a seat market would be outside of the scope of Regulation M \6\
and the underwriters' ability to stabilize the price of the shares
being offered. Accordingly, the existence of such an alternative market
would jeopardize the orderliness of the public offering. For this
reason, the Exchange believes that it is necessary to suspend the
operation of the Exchange's seat market during this brief period. A
rule change is needed to accomplish this suspension, since it is for a
longer period than the Board of Directors is authorized to declare
under existing Interpretation and Policy .01 under Exchange Rule 3.14.
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    \5\ 17 CFR 242.104.
    \6\ 17 CFR 242.104.
---------------------------------------------------------------------------

    There should be no adverse consequences to Exchange members as a
result of suspending the CBOE seat market for a brief, three-day
period. Before the public offering commences, and as a condition of the
offering, the demutualization of the Exchange will have been approved
by a vote of the Exchange membership, although as explained above the
demutualization will not become effective until after the public
offering has been completed and just prior to its closing. During this
period, the ownership interests in the Exchange will, for all practical
purposes, be represented by the shares of CBOE Holdings common stock
into which memberships will be converted in accordance with the terms
and upon the effectiveness of the demutualization, which will have been
approved by CBOE's membership. Once this happens, Exchange memberships
will cease to exist and the purchase and sale of Exchange memberships
will no longer be possible. Thus the effect of the proposed rule change
is simply to accelerate the termination of the seat market by three
days prior to the time it would have ended in any event.
    In the unlikely event that the demutualization, having been
approved by the membership, does not become effective as anticipated,
the public offering will not close and Exchange memberships will remain
outstanding. In that event, the seat market will once again resume
operation, subject only to the authority of the Board to delay its
resumption for no more than one business day under existing
Interpretation and Policy .01 of Rule 3.14, if the Board determines
that under the circumstances such a delay is needed in the interest of
a fair and orderly market in memberships.
2. Statutory Basis
    By providing for a fair and orderly public offering of shares of
CBOE Holdings Common Stock and eliminating any possibility that the
market in Exchange memberships could be used to manipulate the when-
issued market in such shares, the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general, and furthers the
objectives of Section 6(b)(5) \8\ in particular, in that it would
prevent fraudulent and manipulative acts and practices, would promote
just and equitable principles of trade and would protect investors and
the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE 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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(3) of Rule 19b-4
thereunder.\10\ At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2010-042 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-CBOE-2010-042. 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the CBOE. 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-CBOE-2010-042 and should be
submitted on or before June 9, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11944 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 24 (Wednesday, February 5, 2014)]
[Notices]
[Pages 6954-6956]
[FR Doc No: 2014-02379]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71445; File No. SR-EDGX-2014-01]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Chapter IX of Its Rulebook

January 30, 2014.
    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 January 16, 2014, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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 substantially 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 amend Chapter IX of its rulebook to
incorporate certain rules of the Financial Industry Regulatory
Authority, Inc. (``FINRA'') and the NASDAQ Stock Market LLC
(``NASDAQ'') relating to arbitration and mediation, in addition to
making certain non-substantive changes. The text of the proposed rule
change is available on the Exchange's Internet Web site at
www.directedge.com, at the Exchange's principal office, and at the
Public Reference Room of the Commission.

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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
Background and General Description of Proposed Rule Change
    On July 30, 2007, the National Association of Securities Dealers,
Inc. (``NASD''), the New York Stock Exchange LLC, and NYSE Regulation,
Inc. (``NYSER'') consolidated their member firm regulation operations
into a combined organization, FINRA, and entered into a plan to
allocate to FINRA regulatory responsibility for common rules and common
members (``17d-2 Agreement'').\3\ The 17d-2 Agreement was entered into
in accordance with the requirements of Rule 17d-2 of the Commission,\4\
which permits self-regulatory organizations (``SROs'') to allocate
regulatory responsibilities with respect to common members and common
rules. On January 5, 2010, the Exchange and FINRA entered into a
Regulatory Services Agreement (``RSA''), whereby FINRA was retained to
perform certain regulatory services on behalf of the Exchange for non-
common rules. On May 13, 2013, the Exchange and FINRA amended the RSA
and retained FINRA to perform market surveillance functions as of July
2013. Accordingly, since Exchange launch in July 2010, FINRA has been
performing all arbitration, mediation, and other dispute resolution
services, as may be needed from time to time, on behalf of EDGX.
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    \3\ See Securities Exchange Act Release No. 56148 (July 26,
2007), 72 FR 42146 (Aug. 1, 2007).
    \4\ 17 CFR 240.17d-2.
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    To facilitate FINRA's performance of these functions under the RSA
and to further harmonize the rules of FINRA and the Exchange generally,
the Exchange is proposing to conform the text of its rules governing
arbitration and mediation (Chapter IX) to the FINRA Code of Arbitration
Procedure for Customer Disputes (12000 Series), FINRA Code of
Arbitration Procedure for Industry Disputes (13000 Series) and the
FINRA Code of Mediation (14000 Series).
    The Exchange proposes to make the following changes to its current
rules in Chapter IX of its rulebook.
Proposed Amendments to Current Rules
    The Exchange proposes to amend current Rule 9.1 (Code of
Arbitration) to make the rule substantially similar to NASDAQ Rule
10100.\5\ The Exchange proposes to replace the reference to NASD Code
of Arbitration with FINRA Code of Arbitration,\6\ clarify the meaning
of ``Exchange arbitrations,'' \7\ and add a sentence stating that
Members must comply with FINRA arbitration rules as if they were rules
of the Exchange.
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    \5\ See NASDAQ Rule 10100.
    \6\ See FINRA Rule 12000 Series (Code of Arbitration Procedure
for Customer Disputes); FINRA Rule 13000 (Code of Arbitration
Procedure for Industry Disputes.
    \7\ They would be defined as ``every claim, dispute or
controversy arising out of or in connection with matters eligible
for submission under Rule 9.2.''
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    The Exchange proposes to replace current Rule 9.2 (Jurisdiction)
with amended Rule 9.2 (Matters Eligible for Submission), which is
substantially similar to FINRA Rule 10101 and NASDAQ Rule 10101.\8\
Amended Rule 9.2 will state that the Exchange adopts the FINRA Code of
Arbitration for any dispute, claim or controversy arising out of or in
connection with the business of any Member, or arising out of the
employment or termination of employment of associated person(s) with
any Member: Between or among Members; between or among Members and
associated persons; and between or among Members or associated persons
and public customers, or others, except for any type of dispute, claim,
or controversy that is not permitted to be arbitrated under the FINRA
Code of Procedure.
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    \8\ See FINRA Rules 10101 and NASDAQ Rule 10101.
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    The Exchange proposes to amend current Rule 9.3 (Predispute
Arbitration

Agreements) to incorporate FINRA Rule 2268 \9\ by reference, instead of
restating the predispute arbitration agreement rules in full.
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    \9\ See FINRA Rule 2268.
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    The Exchange proposes to amend current Rule 9.5 (Payment of
Awards), to re-name its title as ``Failure to Act under Provisions of
FINRA Code of Arbitration,'' to expand the rule to include additional
conduct deemed inconsistent with just and equitable principles of trade
and a violation of Rule 3.1 (Business Conduct of Members), using the
language of FINRA/NASDAQ IM-10100, and FINRA IM-12000 and IM-13000.\10\
These prohibited acts include: Failure to submit a dispute for
arbitration under the FINRA Code of Arbitration as required by the
FINRA Code of Arbitration; failure to comply with any injunctive order
issued pursuant to the FINRA Code of Arbitration; failure to appear or
to produce any document in his or her or its possession or control as
directed pursuant to provisions of the FINRA Code of Arbitration;
failure to honor an award, or comply with a written and executed
settlement agreement, obtained in connection with an arbitration
submitted for disposition under the FINRA Code of Arbitration where
timely motion has not been made to vacate or modify such award pursuant
to applicable law; or, failure to comply with a written and executed
agreement obtained in connection with a mediation submitted for
disposition pursuant to the FINRA Code of Mediation.\11\ Rule 9.5(b) is
proposed to be amended to provide that action by Members requiring
associated persons to waive the arbitration of disputes contrary to the
provisions of the FINRA Code of Arbitration is a violation of Exchange
Rule 3.1.
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    \10\ See FINRA Rules IM-10100, IM-12000, and IM-13000. See also
NASDAQ Rule IM-10100.
    \11\ See FINRA Rule 14000 Series (Code of Mediation Procedure).
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    The Exchange proposes to amend current Rule 9.6 to extend the
application of the rule (currently applicable to arbitration) to
mediation.
    The Exchange proposes to add proposed Rule 9.7 (Mediation) to state
that FINRA's mediation services, as governed by the 14000 Series of
FINRA's Rules (the Code of Mediation Procedure), are also available to
Members who voluntarily agree to submit matters for mediation. The
Exchange also proposes to incorporate by reference the FINRA Code of
Mediation into its rules so that Members have the same obligations to
comply as if such rules and interpretations were part of the Exchange's
rules.
    The Exchange proposes to add Rule 9.8 (Regulatory Services
Agreement) to state that FINRA staff will perform arbitrations and
mediations on behalf of the Exchange pursuant to a regulatory services
agreement (``RSA'') with FINRA in accordance with the FINRA Codes of
Arbitration and Mediation.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\12\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\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 foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and 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.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    The proposed changes will provide greater harmonization between
Exchange and FINRA rules of similar purpose, resulting in less
burdensome and more efficient regulatory compliance for dual members.
As previously noted, the proposed rule text is substantially similar to
FINRA's/NASDAQ's current rule text, which has already been approved by
the Commission. As such, the proposed rule change will foster
cooperation and coordination with persons engaged in facilitating
transactions in securities and will remove impediments to and perfect
the mechanism of a free and open market and a national market system.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address any competitive issues but rather is designed
to provide greater harmonization between Exchange and FINRA rules of
similar purpose for arbitration and mediation matters, resulting in
less burdensome and more efficient regulatory compliance for dual
members and facilitating FINRA's performance of its regulatory
functions under the RSA.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \14\ of the Act and Rule 19b-4(f)(6) \15\ thereunder. The
proposed rule change effects a change that (A) does not significantly
affect the protection of investors or the public interest; (B) does not
impose any significant burden on competition; and (C) by its terms,
does not become operative for thirty (30) days after the date of the
filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest;
provided that the self-regulatory organization has given the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at least
five (5) business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    The Exchange provided the Commission with written notice of its
intent to file the proposed rule change, along with a brief description
and text of the proposed rule change, at least five (5) business days
prior to the date of filing.\16\ The proposed rule change is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, and, in general, to protect
investors and the public interest.
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    \16\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange believes that the proposed rule change meets the
criteria of subparagraph (f)(6) of Rule 19b-4 \17\ because the proposed
rule change would not significantly affect investors or the public
interest; rather, the proposed rule change will promote greater
harmonization between the Exchange and FINRA rules of similar purpose,
resulting in greater uniformity and less burdensome and more efficient
regulatory compliance. Additionally, the proposed rule change does not
raise any new policy issues not previously considered by the Commission
nor impose any significant burden on competition because it would
result in

less burdensome and more efficient regulatory compliance for common
members and facilitating FINRA's performance of its regulatory
functions under the 17d-2 Agreement. Accordingly, the Exchange has
designated this rule filing as non-controversial under Section
19(b)(3)(A) of the Act \18\ and paragraph (f)(6) of Rule 19b-4
thereunder.\19\ In addition, in its guidance on the proposed rules of
SROs,\20\ the Commission concluded that filings based on the rules of
another SRO already approved by the Commission are eligible for
immediate effectiveness under Rule 19b-4(f)(6). The Commission noted
that ``a proposed rule change appropriately may be filed as an
immediately effective rule so long as it is based on and similar to
another SRO's rule and each policy issue raised by the proposed rule
(i) has been considered previously by the Commission when the
Commission approved another exchange's rule (that was subject to notice
and comment), and (ii) the rule change resolved such policy issue in a
manner consistent with such prior approval.'' \21\ As discussed herein,
the rule changes proposed herein are based on parallel NASDAQ and FINRA
rules on arbitration and mediation. The proposed rule change would
allow greater consistency between EDGX and FINRA rules, which should
benefit EDGX and FINRA members, regulators, and the investing public.
In addition, the Exchange requests the Commission waive the 30-day
operative delay to provide greater harmonization between Exchange and
FINRA rules, resulting in less burdensome and more efficient regulatory
compliance for common members and facilitating FINRA's performance of
its regulatory functions.
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ See Securities and Exchange Act Release No. 58092 (July 3,
2008), 73 FR 40144 (July 11, 2008).
    \21\ Id. at 40149.
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    Based on the foregoing, the Commission believes that the proposed
rule change should become immediately effective and waives the 30-day
pre-operative waiting period contained in Rule 19b-4(f)(6)(iii) under
the Act so that the Exchange may immediately implement this rule
change.\22\
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    \22\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within sixty (60) days of the filing of such proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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-EDGX-2014-01 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-EDGX-2014-01. 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-EDGX-2014-01 and should be
submitted on or before February 26, 2014.
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    \23\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02379 Filed 2-4-14; 8:45 am]
BILLING CODE 8011-01-P