Janet Cakir/RTP/USEPA/US

12/04/2007 12:37 PM

To

<EMAIL_ADDRESS> cc

Ron Evans/RTP/USEPA/US@EPA

Subject

Fw: Materials for Tomorrow's Briefing for OMB on Modeling Results for the Ozone Final RIA

Rob,

     Here are the materials we will be using for our meeting tomorrow at 3:30 (see below).  The call-in information is:<PHONE_NUMBER> Conference Code<PHONE_NUMBER>

Let me know if you need anything further from me for tomorrow.

Thanks,

Janet

_______________________________________

Janet F. Cakir, Ph.D.

Environmental Protection Specialist

Air Benefits Cost Group

109 TW Alexander Dr., (C439-02)

Research Triangle Park, NC 27711

Tel:<PHONE_NUMBER>

Fax:<PHONE_NUMBER>

email<EMAIL_ADDRESS> ----- Forwarded by Janet Cakir/RTP/USEPA/US on 12/04/2007 12:35 PM -----

Janet Cakir/RTP/USEPA/US

12/04/2007 12:34 PM

To

Al McGartland/DC/USEPA/US@EPA, Allen Basala/RTP/USEPA/US@EPA, Amy Lamson/RTP/USEPA/US@EPA, Charles Fulcher/RTP/USEPA/US@EPA, Cynthia Morgan/DC/USEPA/US@EPA, Darryl Weatherhead/RTP/USEPA/US@EPA, David Misenheimer/RTP/USEPA/US@EPA, Douglas Solomon/RTP/USEPA/US@EPA, Elizabeth Kopits/DC/USEPA/US@EPA, <EMAIL_ADDRESS>Jim Ketcham-Colwill/DC/USEPA/US@EPA, Ken Adler/DC/USEPA/US@EPA, Kevin Culligan/DC/USEPA/US@EPA, Larry Sorrels/RTP/USEPA/US@EPA, Lillian Bradley/RTP/USEPA/US@EPA, Lydia Wegman/RTP/USEPA/US@EPA, Marc Houyoux/RTP/USEPA/US@EPA, Mark Corrales/DC/USEPA/US@EPA, Neal Fann/RTP/USEPA/US@EPA, Norm Possiel/RTP/USEPA/US@EPA, Pat Dolwick/RTP/USEPA/US@EPA, Rich Mason/RTP/USEPA/US@EPA, Ron Evans/RTP/USEPA/US@EPA, Rosalina Rodriguez/RTP/USEPA/US@EPA, Serpil Kayin/DC/USEPA/US@EPA, <EMAIL_ADDRESS>Tom Walton/RTP/USEPA/US@EPA

cc

Subject

Materials for Tomorrow's Briefing for OMB on Modeling Results for the Ozone Final RIA

Let me know if you have any trouble with the file....

Thanks,

Janet

_______________________________________

Janet F. Cakir, Ph.D.

Environmental Protection Specialist

Air Benefits Cost Group

109 TW Alexander Dr., (C439-02)

Research Triangle Park, NC 27711

Tel:<PHONE_NUMBER>

Fax:<PHONE_NUMBER>

email<EMAIL_ADDRESS>


[Federal Register Volume 88, Number 48 (Monday, March 13, 2023)]
[Notices]
[Pages 15500-15503]
[FR Doc No: 2023-05040]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97060; File No. SR-NASDAQ-2023-005]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing of Proposed Rule Change To Establish Listing Standards
Related to Recovery of Erroneously Awarded Executive Compensation

March 7, 2023.
    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 February 22, 2023, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to establish listing standards related to
recovery of erroneously awarded executive compensation as required by
SEC Rule 10D-1.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

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 Wall Street Reform and Consumer Protection Act of 2010 (the
``Dodd-Frank Act'') added Section 10D to the Securities Exchange Act of
1934.\3\ In October 2022, the SEC adopted final Rule 10D-1 \4\
instructing national securities exchanges to establish specific listing
standards that require each issuer to adopt and comply with a written
executive compensation recovery policy.\5\ Under Rule 10D-1, listed
companies must recover from current and former executive officers
incentive-based compensation received during the three fiscal years
preceding the date on which the issuer is required to prepare an
accounting restatement to correct a material error. As required by Rule
10D-1 and the Listing Standards Release, Nasdaq proposes to adopt
Listing Rule 5608 (the ``Rule''), titled, recovery of erroneously
awarded compensation.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78j-4.
    \4\ 17 CFR 240.10D-1.
    \5\ Securities Exchange Act Release No. 96159 (October 26,
2022), 87 FR 73076 (November 28, 2022)(``Listing Standards
Release'').
---------------------------------------------------------------------------

    Proposed Listing Rule 5608(a) would introduce the requirements of
the Rule in accordance with the Listing Standards Release. Nasdaq also
proposes to adopt Listing Rule 5608(b), which sets forth the
substantive requirements of Rule 10D-1(b), and Listing Rule 5608(d),
which sets forth the defined terms applicable to the Rule. As provided
in Rule 10D-1, Nasdaq proposes to define the term ``executive officer''
to include the issuer's president, principal financial officer,
principal accounting officer, any vice-president in charge of a
principal business unit, division or function and any other person
(including executive officers of a parent or subsidiary) who performs
similar policy-making functions for the issuer. The term ``policy-
making function'' is not intended to include policy-making functions
that are not significant.
    The recovery of erroneously awarded compensation is required on a
``no fault'' basis, without regard to whether any misconduct occurred
or an executive officer's responsibility for the erroneous financial
statements. A restatement due to material non-compliance with any
financial reporting requirement under the securities laws triggers
application of the recovery policy. As explained in the Listing

Standards Release, the determination regarding materiality of an error
should be based on facts and circumstances and existing judicial and
administrative interpretations. The proposed Rule requires recovery for
restatements that correct errors that are material to previously issued
financial statements (commonly referred to as ``Big R'' restatements),
as well as for restatements that correct errors that are not material
to previously issued financial statements but would result in a
material misstatement if the errors were left uncorrected in the
current report or the error correction was recognized in the current
period (commonly referred to as ``little r'' restatement).
    Under the proposed Rule, listed companies will be required to
recover the amount of incentive-based compensation received by an
executive officer that exceeds the amount the executive officer would
have received had the incentive-based compensation been determined
based on the accounting restatement. Incentive-based compensation is
deemed received \6\ in the fiscal period during which the financial
reporting measure specified in the incentive-based compensation award
is attained, even if the grant or payment of the incentive-based
compensation occurs after the end of that period. For incentive-based
compensation based on stock price or total shareholder return,
companies can use a reasonable estimate of the effect of the
restatement on the applicable measure to determine the amount to be
recovered.
---------------------------------------------------------------------------

    \6\ Nasdaq proposes to define the term ``received'' as provided
in Rule 10D-1.
---------------------------------------------------------------------------

    As provided in Rule 10D-1, Nasdaq proposes to define the term
``Incentive-based compensation'' to mean any compensation that is
granted, earned or vested based wholly or in part upon the attainment
of any financial reporting measure. The term ``financial reporting
measures'' is defined as measures that are determined and presented in
accordance with the accounting principles used in an issuer's financial
statements, and any measures that are derived wholly or in part from
such measures, as well as an issuer's stock price and total shareholder
return. Equity awards that vest exclusively upon completion of a
specified employment period, without any performance condition, and
bonus awards that are discretionary or based on subjective goals or
goals unrelated to financial reporting measures, do not constitute
incentive-based compensation.\7\ Incentive-based compensation received
by an executive officer before the issuer had a class of securities
listed on a national securities exchange or a national securities
association would not be subject to the compensation recovery policy.
---------------------------------------------------------------------------

    \7\ See the Listing Standards Release, at 73094.
---------------------------------------------------------------------------

    As also provided in Rule 10D-1, Nasdaq proposes to set forth the
circumstances where listed companies would have limited discretion not
to recover the excess incentive-based compensation. Specifically,
Nasdaq proposes to provide that a company is required to recover
compensation in compliance with its recovery policy, except to the
extent that pursuit of recovery would be impracticable because: (1) the
direct expense paid to a third party to assist in enforcing the policy
would exceed the amount to be recovered, (2) recovery would violate
home country law, where that law was adopted prior to November 28,
2022, based on an opinion of counsel acceptable to Nasdaq or (3)
recovery would cause a broad-based retirement plan to fail to meet the
tax-qualification requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C.
411(a) and regulations thereunder. Before concluding that pursuit is
impracticable, a company must first make a reasonable attempt to
recover the incentive-based compensation and provide that documentation
to Nasdaq. The listed company's board is required to apply on a ``no
fault'' basis any recovery policy consistently to executive officers
and a listed company is prohibited from indemnifying any current or
former executive officer for recovered compensation.
    As provided in Rule 10D-1, Nasdaq proposes to require each listed
company to file all disclosures with respect to its erroneously awarded
executive compensation recovery policy in accordance with the
requirements of the Federal securities laws, including the disclosure
required by the applicable Commission filings. As explained in the
Listing Standards Release, each listed company is required to file its
compensation recovery policy as an exhibit to its Exchange Act annual
report. In addition, the Commission's rules require disclosure pursuant
to Item 402 of Regulation S-K of the following items, among others, if,
during the prior fiscal year, either a triggering restatement occurred
or any balance of excess incentive-based compensation was outstanding:
     The date on which the listed issuer was required to
prepare an accounting restatement and the aggregate dollar amount of
erroneously awarded compensation attributable to such accounting
restatement (including an analysis of how the recoverable amount was
calculated) or, if the amount has not yet been determined, an
explanation of the reasons and disclosure of the amount and related
disclosures in the next filing that is subject to Item 402 of
Regulation S-K;
     The aggregate dollar amount of erroneously awarded
compensation that remains outstanding at the end of its last completed
fiscal year;
     If the financial reporting measure related to a stock
price or total shareholder return metric, the estimates used to
determine the amount of erroneously awarded compensation attributable
to such accounting restatement and an explanation of the methodology
used for such estimates;
     If recovery would be impracticable pursuant to Rule 10D-
1(b)(1)(iv), for each current and former named executive officer and
for all other current and former executive officers as a group,
disclose the amount of recovery forgone and a brief description of the
reason the listed registrant decided in each case not to pursue
recovery; and
     For each current and former named executive officer,
disclose the amount of erroneously awarded compensation still owed that
had been outstanding for 180 days or longer since the date the issuer
determined the amount owed.
    The additional disclosure requirements apply immediately following
the effective date of the applicable listing standards.
Covered Companies
    As provided in Rule 10D-1, Nasdaq proposes to apply the proposed
listing standards related to recovery of erroneously awarded executive
compensation to all listed companies (including but not limited to,
foreign private issuers, emerging growth companies, smaller reporting
companies, controlled companies and issuers of listed debt whose stock
is not also listed) except for certain registered investment companies
to the extent they do not provide incentive-based compensation to their
employees. As provided in Rule 10D-1, Nasdaq proposes to adopt Listing
Rule 5608(c) to provide certain exemptions from the requirements
related to recovery of erroneously awarded executive compensation.
Specifically Rule 5608(c) will exempt any security issued by a unit
investment trust, as defined in 15 U.S.C. 80a-4(2); and any security
issued by a management company, as defined in 15 U.S.C. 80a-4(3), that
is registered under section 8 of the Investment

Company Act of 1940 (15 U.S.C. 80a-8), if such management company has
not awarded incentive-based compensation to any executive officer of
the company in any of the last three fiscal years, or in the case of a
company that has been listed for less than three fiscal years, since
the listing of the company.
    For clarity, Nasdaq proposes to amend Listing Rule 5210 to indicate
that any company newly listing on Nasdaq must comply with the
requirements of proposed Listing Rule 5608 (Recovery of Erroneously
Awarded Compensation). Nasdaq also proposes to similarly amend Listing
Rule 5701 governing listing requirements for ``other securities,'' and
Listing Rule 5702 governing listing requirements for ``debt
securities.''
Compliance With Compensation Recovery Policy
    As described above, Nasdaq proposes to require that a company will
be subject to delisting if it does not adopt a compensation recovery
policy that complies with the applicable listing standard, disclose the
policy in accordance with Commission rules or comply with the policy's
recovery provisions. Rule 10D-1 requires that a listed company recover
the amount of erroneously awarded incentive-based compensation
reasonably promptly,\8\ but does not specify the time by which the
issuer must complete the recovery of excess incentive-based
compensation; rather, Nasdaq would determine whether the steps an
issuer is taking constitute compliance with its compensation recovery
policy. The issuer's obligation to recover erroneously awarded
incentive-based compensation reasonably promptly will be assessed on a
holistic basis with respect to each such accounting restatement
prepared by the issuer. In evaluating whether an issuer is recovering
erroneously awarded incentive-based compensation reasonably promptly,
the Exchange will consider whether the issuer is pursuing an
appropriate balance of cost and speed in determining the appropriate
means to seek recovery, and whether the issuer is securing recovery
through means that are appropriate based on the particular facts and
circumstances of each executive officer that owes a recoverable amount.
---------------------------------------------------------------------------

    \8\ In that regard, the Commission stated that it ``recognize[s]
that what is reasonable may depend on the additional cost incident
to recovery efforts. [The Commission] expect[s] that issuers and
their directors and officers, in the exercise of their fiduciary
duty to safeguard the assets of the issuer (including the time value
of any potentially recoverable compensation), will pursue the most
appropriate balance of cost and speed in determining the appropriate
means to seek recovery.'' The Listing Standards Release, at 73104.
---------------------------------------------------------------------------

    Nasdaq proposes to amend Listing Rule 5810(c)(2)(A)(iii) to provide
that a company that failed to comply with proposed Listing Rule 5608 is
required to submit to Nasdaq Staff a plan to regain compliance. The
administrative process for such deficiencies will follow the
established pattern used for similar corporate governance deficiencies,
and would allow Nasdaq Staff to provide the issuer up to 180 days to
cure the deficiency. Thereafter, Nasdaq Staff would be required to
issue a delisting letter,\9\ which the issuer could appeal to the
Hearings Panel, as provided in Listing Rule 5815. The Hearings Panel
could allow the issuer up to an additional 180 days to cure the
deficiency.
---------------------------------------------------------------------------

    \9\ Listing Rule 5810 provides that notifications of
deficiencies that allow for submission of a compliance plan may
result, after review of the compliance plan, in issuance of a Staff
Delisting Determination or a Public Reprimand Letter. However Nasdaq
believes that issuance of a Public Reprimand Letter is inconsistent
with the provisions of Rule 10D-1 and, therefore, proposes to amend
Listing Rule 5805(j) to provide that a Public Reprimand Letter may
not be issued for violations of a listing standard required by Rule
10D-1. Nasdaq also proposes to modify Listing Rules 5810-5825
accordingly.
---------------------------------------------------------------------------

Implementation and Transition
    As provided in Rule 10D-1, Nasdaq proposes to require that each
Company is required to (i) adopt a policy governing the recovery of
erroneously awarded compensation as required by this rule no later than
60 days following the effective date of this rule, and (ii) provide the
disclosures required by this rule and in the applicable Commission
filings on or after the effective date of this rule. Notwithstanding
the look-back requirement in Rule 5608(b)(1)(i)(D), as provided in the
Listing Standards Release, Nasdaq proposes to provide that a company is
only required to apply the recovery policy to incentive-based
compensation received on or after the effective date of this rule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As required by the Dodd-Frank Act and Rule 10D-1, Nasdaq is
proposing amendments to its listing rules relating to recovery of
erroneously awarded executive compensation. These proposals are,
generally, required by SEC Rule 10D-1. Nasdaq believes that these
proposals protect investors and the public interest by requiring
companies, with certain exemptions, that, in the event the company is
required to prepare an accounting restatement, the company will recover
reasonably promptly erroneously awarded incentive-based compensation
paid to its current or former executive officers based on any misstated
financial reporting measure. Nasdaq also believes that these new
requirements will help facilitate effective oversight of executive
compensation and promote accountability to investors by not allowing
executive officers to retain compensation that they were awarded
erroneously. Finally, Nasdaq agrees with the Commission that the
recovery requirement may provide executive officers with an increased
incentive to take steps to reduce the likelihood of inadvertent
misreporting and will reduce the financial benefits to executive
officers who choose to pursue impermissible accounting methods, which
the Commission expects will further discourage such behavior.\12\
---------------------------------------------------------------------------

    \12\ See the Listing Standards Release, at 73077.
---------------------------------------------------------------------------

    Nasdaq believes that the proposal to amend Listing Rule
5810(c)(2)(A)(iii) to provide that a company that failed to comply with
proposed Listing Rule 5608 is required to submit to Nasdaq Staff a plan
to regain compliance and be subject to the appeal process described
above, is consistent with the investor protection objectives of Section
6(b)(5) of the Act \13\ because the administrative process for such
deficiencies will follow the established pattern used for similar
corporate governance deficiencies and Nasdaq has developed expertise
administering this process.
---------------------------------------------------------------------------

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

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. The proposed amendments would
not impose any burden on competition, not necessary or appropriate in
furtherance of the purposes of the Act, because the proposed listing
standards will apply to all listed companies, except in limited
circumstances described above, as required by the Dodd-Frank Act and
the SEC Rule 10D-1.

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

    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 the 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-NASDAQ-2023-005 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2023-005. 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 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. 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-NASDAQ-2023-005, and should be submitted
on or before April 3, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05040 Filed 3-10-23; 8:45 am]
BILLING CODE 8011-01-P


that has been liquefied by reducing its temperature to -260 degrees
Fahrenheit at atmospheric pressure.
    LNG boil-off gas means natural gas in the gaseous phase that vents
from LNG storage tanks due to ambient heat leakage through the tank
insulation and heat energy dissipated in the LNG by internal pumps.
    Offshore means seaward of the terrestrial borders of the United
States, including waters subject to the ebb and flow of the tide, as
well as adjacent bays, lakes or other normally standing waters, and
extending to the outer boundaries of the jurisdiction and control of
the United States under the Outer Continental Shelf Lands Act.
    Oil well means a well completed for the production of crude oil
from at least one oil zone or reservoir.
    Onshore petroleum and natural gas production owner or operator
means the person or entity who holds the permit to operate petroleum
and natural gas wells on the drilling permit or an operating permit
where no drilling permit is issued, which operates an onshore petroleum
and/or natural gas production facility (as described in Sec.
98.230(a)(2). Where petroleum and natural gas wells operate without a
drilling or operating permit, the person or entity that pays the State
or Federal business income taxes is considered the owner or operator.
    Operating pressure means the containment pressure that
characterizes the normal state of gas or liquid inside a particular
process, pipeline, vessel or tank.
    Pump means a device used to raise pressure, drive, or increase flow
of liquid streams in closed or open conduits.
    Pump seals means any seal on a pump drive shaft used to keep
methane and/or carbon dioxide containing light liquids from escaping
the inside of a pump case to the atmosphere.
    Pump seal emissions means hydrocarbon gas released from the seal
face between the pump internal chamber and the atmosphere.
    Reservoir means a porous and permeable underground natural
formation containing significant quantities of hydrocarbon liquids and/
or gases.
    Residue Gas and Residue Gas Compression mean, respectively,
production lease natural gas from which gas liquid products and, in
some cases, non-hydrocarbon components have been extracted such that it
meets the specifications set by a pipeline transmission company, and/or
a distribution company; and the compressors operated by the processing
facility, whether inside the processing facility boundary fence or
outside the fence-line, that deliver the residue gas from the
processing facility to a transmission pipeline.
    Separator means a vessel in which streams of multiple phases are
gravity separated into individual streams of single phase.
    Transmission pipeline means high pressure cross country pipeline
transporting saleable quality natural gas from production or natural
gas processing to natural gas distribution pressure let-down, metering,
regulating stations where the natural gas is typically odorized before
delivery to customers.
    Turbine meter means a flow meter in which a gas or liquid flow rate
through the calibrated tube spins a turbine from which the spin rate is
detected and calibrated to measure the fluid flow rate.
    Vented emissions means intentional or designed releases of
CH4 or CO2 containing natural gas or hydrocarbon
gas (not including stationary combustion flue gas), including process
designed flow to the atmosphere through seals or vent pipes, equipment
blowdown for maintenance, and direct venting of gas used to power
equipment (such as pneumatic devices).

 Table W-1A to Subpart W of Part 98--Default Whole Gas Emission Factors
            for Onshore Petroleum and Natural Gas Production
------------------------------------------------------------------------
                                                             Emission
                                                           factor (scf/
      Onshore petroleum and natural gas production             hour/
                                                            component)
------------------------------------------------------------------------
                              Eastern U.S.
------------------------------------------------------------------------
Population Emission Factors--All Components, Gas
 Service:\1\
Valve...................................................           0.027
Connector...............................................           0.004
Open-ended Line.........................................           0.062
Pressure Relief Valve...................................           0.041
Low Continuous Bleed Pneumatic Device Vents \2\.........            1.80
High Continuous Bleed Pneumatic Device Vents \2\........            48.1
Intermittent Bleed Pneumatic Device Vents \2\...........            17.4
Pneumatic Pumps \3\.....................................            13.3
Population Emission Factors--All Components, Light Crude
 Service:\4\
Valve...................................................            0.04
Flange..................................................           0.002
Connector...............................................           0.005
Open-ended Line.........................................            0.04
Pump....................................................            0.01
Other \5\...............................................            0.23
Population Emission Factors--All Components, Heavy Crude
 Service:\6\
Valve...................................................          0.0004
Flange..................................................          0.0007
Connector (other).......................................          0.0002
Open-ended Line.........................................           0.004
Other \5\...............................................           0.002
------------------------------------------------------------------------
                              Western U.S.
------------------------------------------------------------------------
Population Emission Factors--All Components, Gas
 Service:\1\
Valve...................................................           0.123
Connector...............................................           0.017
Open-ended Line.........................................           0.032
Pressure Relief Valve...................................           0.196
Low Continuous Bleed Pneumatic Device Vents \2\.........            1.80
High Continuous Bleed Pneumatic Device Vents \2\........            48.1
Intermittent Bleed Pneumatic Device Vents \2\...........            17.4
Pneumatic Pumps \3\.....................................            13.3
Population Emission Factors--All Components, Light Crude
 Service:\4\
Valve...................................................            0.04
Flange..................................................           0.002
Connector (other).......................................           0.005
Open-ended Line.........................................            0.04
Pump....................................................            0.01
Other \5\...............................................            0.23

Population Emission Factors--All Components, Heavy Crude
 Service:\6\
Valve...................................................          0.0004
Flange..................................................          0.0007
Connector (other).......................................          0.0002
Open-ended Line.........................................           0.004
Other \5\...............................................          0.002
------------------------------------------------------------------------
\1\ For multi-phase flow that includes gas, use the gas service
  emissions factors.
\2\ Emission Factor is in units of ``scf/hour/device.''
\3\ Emission Factor is in units of ``scf/hour/pump.''
\4\ Hydrocarbon liquids greater than or equal to 20[deg]API are
  considered ``light crude.''.
\5\ ''Others'' category includes instruments, loading arms, pressure
  relief valves, stuffing boxes, compressor seals, dump lever arms, and
  vents.
\6\ Hydrocarbon liquids less than 20[deg]API are considered ``heavy
  crude.''

  Table W-1B to Subpart W of Part 98--Default Average Component Counts for Major Onshore Natural Gas Production
                                                    Equipment
----------------------------------------------------------------------------------------------------------------
                                                                                Open-ended       Pressure
                 Major equipment                      Valves        Connectors         lines       relief valves
----------------------------------------------------------------------------------------------------------------
                                                  Eastern U.S.
----------------------------------------------------------------------------------------------------------------
Wellheads.......................................               8              38             0.5               0
Separators......................................               1               6               0               0
Meters/piping...................................              12              45               0               0
Compressors.....................................              12              57               0               0
In-line heaters.................................              14              65               2               1
Dehydrators.....................................              24              90               2               2
----------------------------------------------------------------------------------------------------------------
                                                  Western U.S.
----------------------------------------------------------------------------------------------------------------
Wellheads.......................................              11              36               1               0
Separators......................................              34             106               6               2
Meters/piping...................................              14              51               1               1
Compressors.....................................              73             179               3               4
In-line heaters.................................              14              65               2               1
Dehydrators.....................................              24              90               2               2
----------------------------------------------------------------------------------------------------------------

  Table W-1C to Subpart W of Part 98--Default Average Component Counts For Major Crude Oil Production Equipment
----------------------------------------------------------------------------------------------------------------
                                                                                Open-ended         Other
         Major equipment              Valves          Flanges       Connectors         lines        components
----------------------------------------------------------------------------------------------------------------
                                                  Eastern U.S.
----------------------------------------------------------------------------------------------------------------
Wellhead........................               5              10               4               0               1
Separator.......................               6              12              10               0               0
Heater-treater..................               8              12              20               0               0
Header..........................               5              10               4               0               0
----------------------------------------------------------------------------------------------------------------
                                                  Western U.S.
----------------------------------------------------------------------------------------------------------------
Wellhead........................               5              10               4               0               1
Separator.......................               6              12              10               0               0
Heater-treater..................               8              12              20               0               0
Header..........................               5              10               4               0               0
----------------------------------------------------------------------------------------------------------------

 Table W-1D of Subpart W of Part 98--Designation Of Eastern And Western
                                  U.S.
------------------------------------------------------------------------
               Eastern U.S.                         Western U.S.
------------------------------------------------------------------------
Connecticut...............................  Alabama
Delaware..................................  Alaska
Florida...................................  Arizona
Georgia...................................  Arkansas
Illinois..................................  California
Indiana...................................  Colorado
Kentucky..................................  Hawaii
Maine.....................................  Idaho
Maryland..................................  Iowa
Massachusetts.............................  Kansas
Michigan..................................  Louisiana
New Hampshire.............................  Minnesota
New Jersey................................  Mississippi
New York..................................  Missouri
North Carolina............................  Montana

Ohio......................................  Nebraska
Pennsylvania..............................  Nevada
Rhode Island..............................  New Mexico
South Carolina............................  North Dakota
Tennessee.................................  Oklahoma
Vermont...................................  Oregon
Virginia..................................  South Dakota
West Virginia.............................  Texas
Wisconsin.................................  Utah
                                            Washington
                                            Wyoming
------------------------------------------------------------------------

  Table W-2 to Subpart W of Part 98--Default Total Hydrocarbon Emission
               Factors for Onshore Natural Gas Processing
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
             Onshore natural gas processing                    hour/
                                                            component)
------------------------------------------------------------------------
       Leaker Emission Factors--Compressor Components, Gas Service
------------------------------------------------------------------------
Valve\1\................................................           15.07
Connector...............................................            5.68
Open-Ended Line.........................................           17.54
Pressure Relief Valve...................................           40.27
Meter...................................................           19.63
------------------------------------------------------------------------
     Leaker Emission Factors--Non-Compressor Components, Gas Service
------------------------------------------------------------------------
Valve...................................................            6.52
Connector...............................................            5.80
Open-Ended Line.........................................           11.44
Pressure Relief Valve...................................            2.04
Meter...................................................            2.98
------------------------------------------------------------------------
\1\ Valves include control valves, block valves and regulator valves.

  Table W-3 to Subpart W of Part 98--Default Total Hydrocarbon Emission
        Factors for Onshore Natural Gas Transmission Compression
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
      Onshore natural gas transmission compression             hour/
                                                            component)
------------------------------------------------------------------------
       Leaker Emission Factors--Compressor Components, Gas Service
------------------------------------------------------------------------
Valve\1\................................................           15.07
Connector...............................................            5.68
Open-Ended Line.........................................           17.54
Pressure Relief Valve...................................           40.27
Meter...................................................           19.63
------------------------------------------------------------------------
     Leaker Emission Factors--Non-Compressor Components, Gas Service
------------------------------------------------------------------------
Valve\1\................................................            6.52
Connector...............................................            5.80
Open-Ended Line.........................................           11.44
Pressure Relief Valve...................................            2.04
Meter...................................................            2.98
------------------------------------------------------------------------
                Population Emission Factors--Gas Service
------------------------------------------------------------------------
Low Continuous Bleed Pneumatic Device Vents\2\..........            1.41
High Continuous Bleed Pneumatic Device Vents\2\.........            18.8
Intermittent Bleed Pneumatic Device Vents\2\............            18.8
------------------------------------------------------------------------
\1\ Valves include control valves, block valves and regulator valves.
\2\ Emission Factor is in units of ``scf/hour/device.''

  Table W-4 to Subpart W of Part 98--Default Total Hydrocarbon Emission
               Factors for Underground Natural Gas Storage
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
             Underground natural gas storage                   hour/
                                                            component)
------------------------------------------------------------------------
Leaker Emission Factors--Storage Station, Gas Service...................
------------------------------------------------------------------------
Valve \1\...............................................           15.07
Connector...............................................            5.68
Open-Ended Line.........................................           17.54
Pressure Relief Valve...................................           40.27
Meter...................................................           19.63
------------------------------------------------------------------------
       Population Emission Factors--Storage Wellheads, Gas Service
------------------------------------------------------------------------
Connector...............................................            0.01
------------------------------------------------------------------------
Valve...................................................            0.10
Pressure Relief Valve...................................            0.17
------------------------------------------------------------------------
Leaker Emission Factors--Storage Station, Gas Service...................
------------------------------------------------------------------------
Open-ended Line.........................................            0.03
------------------------------------------------------------------------
Population Emission Factors--Other Components, Gas Service..............
------------------------------------------------------------------------
Low Continuous Bleed Pneumatic Device Vents \2\.........            1.41
High Continuous Bleed Pneumatic Device Vents \2\........            18.8
Intermittent Bleed Pneumatic Device Vents \2\...........            18.8
------------------------------------------------------------------------
\1\ Valves include control valves, block valves and regulator valves.
\2\ Emission Factor is in units of ``scf/hour/device''

 Table W-5 to Subpart W of Part 98--Default Methane Emission Factors for
                   Liquefied Natural Gas (LNG) Storage
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
                       LNG Storage                             hour/
                                                            component)
------------------------------------------------------------------------
Leaker Emission Factors--LNG Storage Components, LNG Service............
------------------------------------------------------------------------
Valve...................................................            1.21
Pump Seal...............................................            4.06
Connector...............................................            0.35
Other \1\...............................................            1.80
------------------------------------------------------------------------
Population Emission Factors--LNG Storage Compressor, Gas Service........
------------------------------------------------------------------------
Vapor Recovery Compressor\2\............................            4.23
------------------------------------------------------------------------
\1\ ``other'' equipment type should be applied for any equipment type
  other than connectors, pumps, or valves.
\2\ Emission Factor is in units of ``scf/hour/compressor.''

 Table W-6 to Subpart W of Part 98--Default Methane Emission Factors for
                     LNG Import and Export Equipment
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
             LNG import and export equipment                   hour/
                                                            component)
------------------------------------------------------------------------
Leaker Emission Factors--LNG Terminals Components, LNG Service..........
------------------------------------------------------------------------
Valve...................................................            1.21
Pump Seal...............................................            4.06
Connector...............................................            0.35
Other \1\...............................................            1.80
------------------------------------------------------------------------
Population Emission Factors--LNG Terminals Compressor, Gas Service......
------------------------------------------------------------------------
Vapor Recovery Compressor \2\...........................            4.23
------------------------------------------------------------------------
\1\ ``other'' equipment type should be applied for any equipment type
  other than connectors, pumps, or valves.
\2\ Emission Factor is in units of ``scf/hour/compressor.''

 Table W-7 to Subpart W of Part 98--Default Methane Emission Factors for
                        Natural Gas Distribution
------------------------------------------------------------------------
                                                             Emission
                                                           Factor (scf/
                Natural gas distribution                       hour/
                                                            component)
------------------------------------------------------------------------
Leaker Emission Factors--Above Grade M&R at City Gate Stations \1\
 Components, Gas Service................................................
------------------------------------------------------------------------
Connector...............................................            1.72
Block Valve.............................................           0.566
Control Valve...........................................            9.48
Pressure Relief Valve...................................           0.274
Orifice Meter...........................................           0.215

Regulator...............................................           0.784
Open-ended Line.........................................          26.533
------------------------------------------------------------------------
Population Emission Factors--Below Grade M&R \2\ Components, Gas Service
 \3\....................................................................
------------------------------------------------------------------------
Below Grade M&R Station, Inlet Pressure > 300 psig......            1.32
Below Grade M&R Station, Inlet Pressure 100 to 300 psig.            0.20
Below Grade M&R Station, Inlet Pressure < 100 psig......            0.10
------------------------------------------------------------------------
Population Emission Factors--Distribution Mains, Gas Service \4\........
------------------------------------------------------------------------
Unprotected Steel.......................................           12.77
Protected Steel.........................................            0.36
Plastic.................................................            1.15
Cast Iron...............................................           27.67
------------------------------------------------------------------------
Population Emission Factors--Distribution Services, Gas Service \5\.....
------------------------------------------------------------------------
Unprotected Steel.......................................            0.19
Protected Steel.........................................            0.02
Plastic.................................................           0.001
Copper..................................................            0.03
------------------------------------------------------------------------
\1\ City gate stations at custody transfer and excluding customer
  meters.
\2\ Excluding customer meters.
\3\ Emission Factor is in units of ``scf/hour/station''.
\4\ Emission Factor is in units of ``scf/hour/mile''.
\5\ Emission Factor is in units of ``scf/hour/number of services''.

[FR Doc. 2010-28655 Filed 11-29-10; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 82, Number 155 (Monday, August 14, 2017)]
[Notices]
[Pages 37955-37958]
[FR Doc No: 2017-17049]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81344; File No. SR-NASDAQ-2017-068]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Revise the NASDAQ Options Market LLC Rules Regarding the Options
Regulatory Fee

August 8, 2017.
    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 July 26, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' 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.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to revise The NASDAQ Options Market LLC
(``NOM'') Rules at Chapter XV, Section 5 to: (i) Make adjustments to
the amount of its Options Regulatory Fee (``ORF''); and (ii) more
closely reflect the manner in which NOM assesses and collects its ORF.
    While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments [sic] become operative on August
1, 2017.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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
    NOM initially filed to establish its ORF in 2011.\3\ The Exchange
has amended its ORF several times since the inception of this fee.\4\
At this time, the Exchange proposes to: (i) Amend the amount of its
ORF; and (ii) revise NOM's Rules at Chapter XV, Section 5 to more
closely reflect the manner in which NOM assesses and collects its ORF.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 65913 (December 8,
2011), 76 FR 77883 (December 14, 2011) (SR-NASDAQ-2011-163) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Options Regulatory Fee).
    \4\ See Securities Exchange Act Release Nos. 76950 (January 21,
2016), 81 FR 4687 January 27, 2016)(SR-NASDAQ-2016-003); and 78360
(July 19, 2016), 81 FR 48475 (July 25, 2016) (SR-NASDAQ-2016-096).
---------------------------------------------------------------------------

    The Exchange supports a common approach for the assessment and
collection of ORF among the various options exchanges that assess such
a fee. Furthermore, the Exchange supports guidance from the Commission
regarding regulatory cost structures to ensure equal knowledge and
treatment among options markets assessing ORF.
Proposal 1--Amend the Amount of the ORF
    The Exchange assesses an ORF of $0.0021 per contract side. The
Exchange proposes to increase the ORF from $0.0021 per contract side to
$0.0027 per contract side as of August 1, 2017 to account for a
reduction in market volume. The Exchange's proposed change to the ORF
should balance the Exchange's regulatory cost [sic] against the
anticipated revenue. The Exchange regularly reviews its ORF to ensure
that the ORF, in combination with its other regulatory fees and fines,
does not exceed regulatory costs. The Exchange believes this adjustment
will permit the Exchange to cover a material portion of its regulatory
costs, while not exceeding regulatory costs.
    The Exchange notified its Participants of this ORF adjustment
thirty (30) calendar days prior to the proposed operative date.\5\
---------------------------------------------------------------------------

    \5\ See Options Trader Alert #2017-54.
---------------------------------------------------------------------------

Proposal 2--Reflect the Manner in Which NOM Assesses and Collects Its
ORF
    Currently, NOM assesses its ORF for each Customer option
transaction that is either: (1) Executed by a Participant on NOM; or
(2) cleared by a NOM Participant at The Options Clearing Corporation
(``OCC'') in the Customer range,\6\ even if the transaction was
executed by a non-member of NOM, regardless of the exchange on which
the transaction occurs.\7\ If the OCC clearing member is a NOM
Participant, ORF is assessed and collected on all cleared Customer
contracts (after adjustment for CMTA \8\); and (2) if the OCC clearing
member is not a NOM Participant, ORF is collected only on the cleared
Customer contracts executed at NOM, taking into account any CMTA
instructions which may result in collecting the ORF from a non-member.
---------------------------------------------------------------------------

    \6\ Exchange Rules require each member to record the appropriate
account origin code on all orders at the time of entry in order to
allow the Exchange to properly prioritize and route orders and
assess transaction fees pursuant to the Rules of the Exchange and
report resulting transactions to OCC.
    \7\ The Exchange uses reports from OCC when assessing and
collecting the ORF.
    \8\ CMTA or Clearing Member Trade Assignment is a form of
``give-up'' whereby the position will be assigned to a specific
clearing firm at OCC.
---------------------------------------------------------------------------

    By way of example, if Broker A, a NOM Participant, routes a
Customer

order to CBOE and the transaction executes on CBOE and clears in Broker
A's OCC Clearing account, ORF will be collected by NOM from Broker A's
clearing account at OCC via direct debit. While this transaction was
executed on a market other than NOM, it was cleared by a NOM
Participant in the Participant's OCC clearing account in the Customer
range, therefore there is a regulatory nexus between NOM and the
transaction. If Broker A was not a NOM Participant, then no ORF should
be assessed and collected because there is no nexus; the transaction
did not execute on NOM nor was it cleared by a NOM Participant.
    In the case where a Participant both executes a transaction and
clears the transaction, the ORF is assessed to and collected from the
Participant only once. In the case where a Participant executes a
transaction and a different Participant clears the transaction, the ORF
is assessed to and collected from the Participant who clears the
transaction and not the Participant who executes the transaction. In
the case where a non-member executes a transaction at an away market
and a Participant clears the transaction, the ORF is assessed to and
collected from the Participant who clears the transaction. In the case
where a Participant executes a transaction on NOM and a non-member
clears the transaction, the ORF is assessed to the Participant that
executed the transaction and collected from the non-member who cleared
the transaction. In the case where a Participant executes a transaction
at an away market and a non-member clears the transaction, the ORF is
not assessed to the Participant who executed the transaction or
collected from the non-member who cleared the transaction because the
Exchange does not have access to the data to make absolutely certain
that ORF should apply. Further, the data does not allow the Exchange to
identify the Participant executing the trade at an away market.
ORF Revenue and Monitoring of ORF
    The Exchange monitors the amount of revenue collected from the ORF
to ensure that it, in combination with other regulatory fees and fines,
does not exceed regulatory costs. In determining whether an expense is
considered a regulatory cost, the Exchange reviews all costs and makes
determinations if there is a nexus between the expense and a regulatory
function. For example, a cost related to Nasdaq's equity platform,
would not be considered an expense that is compared to ORF revenue. An
options surveillance employee's cost, however would be an expense that
is compared to ORF revenue. The Exchange notes that fines collected by
the Exchange in connection with a disciplinary manner offset ORF.
    The ORF is designed to recover a material portion of the costs to
the Exchange of the supervision and regulation of its Participants,
including performing routine surveillances, investigations,
examinations, financial monitoring, and policy, rulemaking,
interpretive, and enforcement activities.
    The Exchange believes that revenue generated from the ORF, when
combined with all of the Exchange's other regulatory fees, will cover a
material portion, but not all, of the Exchange's regulatory costs. The
Exchange will continue to monitor the amount of revenue collected from
the ORF to ensure that it, in combination with its other regulatory
fees and fines, does not exceed regulatory costs. If the Exchange
determines regulatory revenues exceed regulatory costs, the Exchange
will adjust the ORF by submitting a fee change filing to the
Commission.
    Finally, the Exchange notes that it is amending its rule text at
Chapter XV, Section 5 to remove certain rule text and include new text
to make clear the manner in which ORF is assessed and collected on NOM.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act \10\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using its facility and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the proposed clarifications in the Fee
Schedule to the ORF further the objectives of Section 6(b)(4) of the
Act and are equitable and reasonable since they expressly describe the
Exchange's existing practices regarding the manner in which the
Exchange assesses and collects its ORF.
Proposal 1--Amend the Amount of the ORF
    The Exchange believes that increasing the ORF from $0.0021 per
contract side to $0.0027 per contract side as of August 1, 2017 is
reasonable because the Exchange's collection of ORF needs to be
balanced against the amount of regulatory cost collected [sic] by the
Exchange. The Exchange believes that the proposed adjustments noted
herein will serve to balance the Exchange's regulatory cost against the
anticipated regulatory revenue. The Exchange regularly reviews its ORF
to ensure that the ORF, in combination with its other regulatory fees
and fines, does not exceed regulatory costs.
    The Exchange believes that increasing the ORF from $0.0021 per
contract side to $0.0027 per contract side as of August 1, 2017 is
equitable and not unfairly discriminatory because this modest increase
will serve to balance the Exchange's regulatory revenue against the
anticipated regulatory costs. The ORF seeks to recover the costs of
supervising and regulating members, including performing routine
surveillances, investigations, examinations, financial monitoring, and
policy, rulemaking, interpretive, and enforcement activities.
    Moreover, the Exchange believes the ORF ensures fairness by
assessing fees to those Participants that are directly based on the
amount of Customer options business they conduct. Regulating Customer
trading activity is much more labor intensive and requires greater
expenditure of human and technical resources than regulating non-
customer trading activity, which tends to be more automated and less
labor-intensive. As a result, the costs associated with administering
the Customer component of the Exchange's overall regulatory program are
materially higher than the costs associated with administering the non-
Customer component (e.g. Participant proprietary transactions) of its
regulatory program.
    The ORF is designed to recover a material portion of the costs of
supervising and regulating Participants' Customer options business
including performing routine surveillances, investigations,
examinations, financial monitoring, and policy, rulemaking,
interpretive, and enforcement activities. The Exchange will monitor the
amount of revenue collected from the ORF to ensure that it, in
combination with its other regulatory fees and fines, does not exceed
the Exchange's total regulatory costs. The Exchange has designed the
ORF to generate revenues that, when combined with all of the Exchange's
other regulatory fees, will be less than or equal to the Exchange's
regulatory costs, which is consistent with the Commission's view that
regulatory fees be used for regulatory purposes and not to support the
Exchange's business side. In this regard, the Exchange believes

that the proposed amount of the fee is reasonable.
Proposal 2--Reflect the Manner in Which NOM Assesses and Collects Its
ORF
    The Exchange believes it is reasonable and appropriate for the
Exchange to charge the ORF for options transactions regardless of the
exchange on which the transactions occur. The Exchange has a statutory
obligation to enforce compliance by Participants and their associated
persons under the Act and the rules of the Exchange and to surveil for
other manipulative conduct by market participants (including non-
members) trading on the Exchange. The Exchange cannot effectively
surveil for such conduct without looking at and evaluating activity
across all options markets. Many of the Exchange's market surveillance
programs require the Exchange to look at and evaluate activity across
all options markets, such as surveillance for position limit
violations, manipulation, front-running and contrary exercise advice
violations/expiring exercise declarations. The Exchange, because it
lacks access to information on the identity of the entering firm for
executions that occur on away markets, believes it is appropriate to
assess the ORF on its Participant's clearing activity, based on
information the Exchange receives from OCC, including for away market
activity. Among other reasons, doing so better and more accurately
captures activity that occurs away from the Exchange over which the
Exchange has a degree of regulatory responsibility. In so doing, the
Exchange believes that assessing ORF on Participant clearing firms in
certain instances equitably distributes the collection of ORF in a fair
and reasonable manner. Also, the Exchange and the other options
exchanges are required to populate a consolidated options audit trail
(``COATS'') \11\ system in order to surveil a Participant's activities
across markets.\12\
---------------------------------------------------------------------------

    \11\ COATS effectively enhances intermarket options surveillance
by enabling the options exchanges to reconstruct the market promptly
to effectively surveil certain rules.
    \12\ In addition to its own surveillance programs, the Exchange
works with other SROs and exchanges on intermarket surveillance
related issues. Through its participation in the Intermarket
Surveillance Group (``ISG''), the Exchange shares information and
coordinates inquiries and investigations with other exchanges
designed to address potential intermarket manipulation and trading
abuses. The Exchange's participation in ISG helps it to satisfy the
requirement that it has coordinated surveillance with markets on
which security futures are traded and markets on which any security
underlying security futures are traded to detect manipulation and
insider trading. See Section 6(h)(3)(I) of the Act. ISG is an
industry organization formed in 1983 to coordinate intermarket
surveillance among the SROs by co-operatively sharing regulatory
information pursuant to a written agreement between the parties. The
goal of the ISG's information sharing is to coordinate regulatory
efforts to address potential intermarket trading abuses and
manipulations.
---------------------------------------------------------------------------

    The Exchange believes that assessing the ORF to each Exchange
member for options transactions cleared by OCC in the Customer range
where the execution occurs on another exchange and is cleared by a NOM
member is an equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its
facilities. The ORF is collected by OCC on behalf of NOM from Exchange
clearing members for all Customer transactions they clear or from non-
members for all Customer transactions they clear that were executed on
NOM. The Exchange believes that this collection practice is reasonable
and appropriate because higher fees are assessed to those members that
require more Exchange regulatory services based on the amount of
Customer options business they conduct.
    Regulating Customer trading activity is more labor intensive and
requires greater expenditure of human and technical resources than
regulating non-Customer trading activity. Surveillance, regulation and
examination of non-Customer trading activity generally tends to be more
automated and less labor intensive. As a result, the costs associated
with administering the Customer component of the Exchange's overall
regulatory program are anticipated to be typically higher than the
costs associated with administering the non-Customer component of its
regulatory program. The Exchange proposes assessing higher fees to
those members that will require more Exchange regulatory services based
on the amount of Customer options business they conduct. Additionally,
the dues and fees paid by members go into the general funds of the
Exchange, a portion of which is used to help pay the costs of
regulation. The Exchange has in place a regulatory structure to
surveil, conduct examinations and monitor the marketplace for
violations of Exchange Rules. The ORF assists the Exchange to fund the
cost of this regulation of the marketplace.

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. The ORF is not intended to have
any impact on competition. Rather, it is designed to enable the
Exchange to recover a material portion of the Exchange's cost related
to its regulatory activities. The Exchange is obligated to ensure that
the amount of regulatory revenue collected from the ORF, in combination
with its other regulatory fees and fines, does not exceed regulatory
costs.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\13\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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 No. SR-NASDAQ-2017-068 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NASDAQ-2017-068. 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 No. SR-NASDAQ-2017-068, and should be
submitted on or before September 5, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17049 Filed 8-11-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: August 10, 2006 (Volume 71, Number 154)]
[Notices]
[Page 45817]
[DOCID:fr10au06-66]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Application and Soliciting Comments, Motions to
Intervene, and Protests

August 2, 2006.
    Take notice that the following application has been filed with the
Commission and is available for public inspection:
    a. Application Type: Shoreline Management Plan.
    b. Project No: 2576-083.
    c. Date Filed: July 27, 2006.
    d. Applicant: Northeast Generation Company (NGC).
    e. Name of Project: Housatonic River Hydroelectric Project.
    f. Location: The project is located on the Housatonic River, in
Fairfield, Litchfield and New Haven Counties, Connecticut.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)-825(r).
    h. Applicant Contact: Mr. Robert Gates, Station Manager--
Connecticut Hydro, 143 West St., Ext. Suite E, New Milford, CT 06776,
(860) 355-6527.
    i. FERC Contact: Any questions on this notice should be addressed
to Isis Johnson at<PHONE_NUMBER>, or by E-mail<EMAIL_ADDRESS>    j. Deadline for filing comments: September 1, 2006.
    All documents (original and eight copies) should be filed with: Ms.
Magalie R. Salas, Secretary, Federal Energy Regulatory Commission,
DHAC, PJ-12.1, 888 First Street, NE., Washington DC 20426. Please
include the project number (2576-083) on any comments or motions filed.
Comments, protests and interventions may be filed electronically via
the Internet in lieu of paper. See, 18 CFR 385.2001(a)(1)(iii) and the
instructions on the Commission's Web site under the ``e-Filing'' link.
The Commission strongly encourages electronic filings.
    k. Description of Proposal: NGC, licensee for the Housatonic River
Project, submitted a Shoreline Management Plan (SMP) as required by the
project license. The proposed SMP provides for the maintenance of safe
public access to lake shorelines and riverfront lands and waters, as
well as for the stewardship and development of shoreline/riverfront
areas. The SMP also contains provisions to promote the conservation of
land and water-related resources, in addition to promoting education
and public awareness of resource protection and management programs.
The SMP also includes guidelines for permitting new and existing
structures on project lands, and a fee schedule to recover the
administrative costs of implementing the permitting program.
    l. This filing 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 call toll-free 1-866-208-3676, or for

TTY, call<PHONE_NUMBER>.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Comments, Protests, or Motions to Intervene: Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210,
385.211, 385.214. In determining the appropriate action to take, the
Commission will consider all protests or other comments filed, but only
those who file a motion to intervene in accordance with the
Commission's Rules may become a party to the proceeding. Any comments,
protests, or motions to intervene must be received on or before the
specified comment date for the particular application.
    o. Filing and Service of Responsive Documents: Any filings must
bear in all capital letters the title ``COMMENTS'', ``RECOMMENDATIONS
FOR TERMS AND CONDITIONS'', ``PROTEST'', or ``MOTION TO INTERVENE'', as
applicable, and the Project Number of the particular application to
which the filing refers. A copy of any motion to intervene must also be
served upon each representative of the Applicant specified in the
particular application.
    p. Agency Comments: Federal, state, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-13049 Filed 8-9-06; 8:45 am]

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