[Federal Register Volume 78, Number 162 (Wednesday, August 21, 2013)]
[Notices]
[Page 51716]
[FR Doc No: 2013-20347]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP13-528-000]

Northern Natural Gas Company; Notice of Application

    Take notice that on August 1, 2013, Northern Natural Gas Company
(Northern), 1111 South 103rd Street, Omaha, Nebraska 68124, filed an
application pursuant to section 7(c) of the Natural Gas Act and part
157 of the Commission's regulations to construct and operate certain
compression, pipeline and meter station facilities, with appurtenances,
located in Nebraska and Iowa. The estimated cost for the facilities
proposed herein is $70,880,412. Northern states that the installation
of the proposed facilities will allow it to serve up to 88,430
dekatherms per day of incremental peak day capacity, all as more fully
set forth in the application which is on file with the Commission and
open to public inspection. The filing may also be viewed on the web 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 at
<EMAIL_ADDRESS>or call toll-free,<PHONE_NUMBER> or TTY,
(202) 502-8659.
    Any questions regarding this application should be directed to
Michael T. Loeffler, Senior Director, Certificates and External Affairs
for Northern, 1111 South 103rd Street, Omaha, Nebraska 68124, or call
(402) 398-7103, or by email<EMAIL_ADDRESS>    Pursuant to section 157.9 of the Commission's rules, 18 CFR 157.9,
within 90 days of this Notice the Commission staff will either:
Complete its environmental assessment (EA) 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 EA for this
proposal. The filing of the 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.
    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the comment date stated below file with the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must
submit 7 copies of filings made in the proceeding with the Commission
and must mail a copy to the applicant and to every other party. Only
parties to the proceeding can ask for court review of Commission orders
in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Persons who wish to comment only on the environmental review of
this project should submit an original and two copies of their comments
to the Secretary of the Commission. Environmental commentors will be
placed on the Commission's environmental mailing list, will receive
copies of the environmental documents, and will be notified of meetings
associated with the Commission's environmental review process.
Environmental commentors will not be required to serve copies of filed
documents on all other parties. However, the non-party commentors will
not receive copies of all documents filed by other parties or issued by
the Commission (except for the mailing of environmental documents
issued by the Commission) and will not have the right to seek court
review of the Commission's final order.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the ``eFiling'' link
at http://www.ferc.gov. Persons unable to file electronically should
submit an original and 5 copies of the protest or intervention to the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426.
    Comment Date: September 4, 2013.

    Dated: August 14, 2013.
Kimberly D. Bose,
Secretary.
[FR Doc. 2013-20347 Filed 8-20-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 85 (Friday, May 1, 2020)]
[Proposed Rules]
[Pages 25353-25356]
[FR Doc No: 2020-09115]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0345; Product Identifier 2019-NM-154-AD]
RIN 2120-AA64

Airworthiness Directives; AVOX System Inc. (formerly Scott
Aviation) Oxygen Cylinder and Valve Assemblies; and Oxygen Valve
Assemblies

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain AVOX System Inc. (formerly Scott Aviation) oxygen cylinder
and valve assemblies; and oxygen valve assemblies; installed on but not
limited to various transport airplanes. This proposed AD was prompted
by reports of cylinder and valve assemblies having oxygen leakage from
the valve assembly vent hole, caused by the absence of a guide that
maintains appropriate spacing between certain parts. This proposed AD
would require an inspection of the oxygen valve assemblies, and oxygen
cylinder and valve assemblies, to determine the serial number of the
valve, cylinder, and entire assembly. For assemblies and parts with
certain serial numbers, this AD would require a detailed inspection for
correct spacing of the gap between the bottom of the packing retainer
and top of the valve body on the assemblies, and replacement of
assemblies having unacceptable gaps. The FAA is proposing this AD to
address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by June 15,
2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this NPRM, contact AVOX
Systems Inc., 225 Erie Street, Lancaster, NY 14086; telephone 716-683-
5100; internet https://www.safran-aerosystems.com. You may view this
service information at the FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call 206-
231-3195.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0345; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, the regulatory evaluation, any comments received, and other
information. The street address for Docket Operations is listed above.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Darren Gassetto, Aerospace Engineer,
Mechanical Systems and Administrative Services Section, FAA, New York
ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2020-0345;
Product Identifier 2019-NM-154-AD'' at the beginning of your comments.
The FAA specifically invites comments on the overall regulatory,
economic, environmental, and energy aspects of this NPRM. The FAA will
consider all comments received by the closing date and may amend this
NPRM because of those comments.
    The FAA will post all comments, without change, to https://www.regulations.gov, including any personal information you provide.
The FAA will also post a report summarizing each substantive verbal
contact received about this NPRM.

Discussion

    The FAA has received reports of cylinder and valve assemblies
having oxygen leakage from the valve assembly vent hole, caused by the
absence of a guide that maintains appropriate spacing between certain
parts. It was determined that this guide was not installed during
manufacturing, resulting in the O-ring and backup ring not being
sufficiently constrained with the valve assembly. This condition, if
not addressed, could result in oxygen leakage from the cylinder,
leading to decreased or insufficient oxygen supply during a
depressurization event; and heating or flow friction, which could cause
an ignition event in the valve assembly.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed AVOX Systems Inc., Alert Service Bulletins
10015804-35-01, Revision 02, dated October 16, 2019; 10015804-35-02,
Revision 2, dated October 31, 2019; and 10015804-35-03, Revision 02,
dated October 15, 2019. This service information describes procedures
for an inspection to determine the serial number of the oxygen cylinder
and valve assemblies; and the oxygen valve assemblies; a detailed
inspection for correct spacing of the gap between the bottom of the
packing retainer and top of the valve body on the assemblies. These
documents are distinct since they apply to different assembly part
numbers. This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

FAA's Determination

    The FAA is proposing this AD because the FAA evaluated all the
relevant information and determined the unsafe condition described
previously is likely to exist or develop in other products of the same
type design.

Proposed AD Requirements

    This proposed AD would require an inspection of the oxygen valve
assemblies, and oxygen cylinder and valve assemblies, to determine the
serial number of the valve, cylinder, and entire assembly. For
assemblies and parts with certain serial numbers, this AD would require
a detailed inspection for correct spacing of the gap between the bottom
of the packing retainer and top of the valve body on the assemblies,
and replacement of assemblies having unacceptable gap (removing
affected assemblies and installing serviceable assemblies). This
proposed AD would also require reporting and the return of affected
parts to the manufacturer.

Clarification of Inspection Terminology

    In this proposed AD, the ``visual inspection'' specified in the
AVOX Systems Inc., service bulletins is referred to as a ``detailed
inspection.''

The FAA has included the definition for a detailed inspection in this
proposed AD.

Clarification of Inspection Requirements

    AVOX Systems Inc., Alert Service Bulletins 10015804-35-01, Revision
02, dated October 16, 2019; 10015804-35-02, Revision 2, dated October
31, 2019; and 10015804-35-03, Revision 02, dated October 15, 2019,
specify to inspect to determine the serial number of the oxygen
cylinder and valve assemblies; and the oxygen valve assemblies.
However, the valve and cylinder that are part of those assemblies must
also be inspected, not just the assemblies themselves. Therefore, in
this proposed AD, the FAA specifies to inspect the oxygen valve
assemblies, and oxygen cylinder and valve assemblies, to determine the
serial number of the valve, cylinder, and entire assembly.

Costs of Compliance

    The FAA estimates that this proposed AD affects up to 3,034 oxygen
cylinder and valve assemblies; and oxygen valve assemblies; installed
on various transport category airplanes of U.S. registry. The FAA
estimates the following costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
              Action                    Labor cost              Parts cost            product        operators
----------------------------------------------------------------------------------------------------------------
Serial number inspection.........  1 work-hour x $85     None...................             $85        $257,890
                                    per hour = $85.
Reporting........................  1 work-hour x $85     $0.....................              85         257,890
                                    per hour = $85.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary follow-on
actions that would be required based on the results of the proposed
inspection. The FAA has no way of determining the number of aircraft
that might need these actions:

                                              On-Condition Costs *
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                 Action                           Labor cost                  Parts cost              product
----------------------------------------------------------------------------------------------------------------
Detailed inspection.....................  1 work-hour x $85 per hour  None......................             $85
                                           = $85.
----------------------------------------------------------------------------------------------------------------
* The FAA has received no definitive data on the cost of on-condition replacements.

    According to the manufacturer, some or all of the costs of this
proposed AD may be covered under warranty, thereby reducing the cost
impact on affected individuals. The FAA does not control warranty
coverage for affected individuals. As a result, the FAA has included
all known costs in our cost estimate.

Paperwork Reduction Act

    A federal agency may not conduct or sponsor, and a person is not
required to respond to, nor shall a person be subject to penalty for
failure to comply with a collection of information subject to the
requirements of the Paperwork Reduction Act unless that collection of
information displays a current valid OMB control number. The control
number for the collection of information required by this proposed AD
is 2120-0056. The paperwork cost associated with this proposed AD has
been detailed in the Costs of Compliance section of this document and
includes time for reviewing instructions, as well as completing and
reviewing the collection of information. Therefore, all reporting
associated with this proposed AD is mandatory. Comments concerning the
accuracy of this burden and suggestions for reducing the burden should
be directed to Information Collection Clearance Officer, Federal
Aviation Administration, 10101 Hillwood Parkway, Fort Worth, TX 76177-
1524.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

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

AVOX Systems Inc. (formerly Scott Aviation): Docket No. FAA-2020-
0345; Product Identifier 2019-NM-154-AD.

(a) Comments Due Date

    The FAA must receive comments by June 15, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to AVOX Systems Inc. (formerly Scott Aviation)
oxygen cylinder and valve assemblies having part number (P/N)
89794077, 89794015, 891511-14, 806835-01, 807982-01, or 808433-01;
and oxygen valve assemblies (body and gage assemblies) having P/N
807206-01. These assemblies might be installed on, but not limited
to, the aircraft identified in paragraphs (c)(1) through (12) of
this AD, certificated in any category.
    (1) Airbus SAS Model A300 B2-1A, B2-1C, B2K-3C, B2-203, B4-2C,
B4-103, and B4-203 airplanes.
    (2) Airbus SAS Model A300 B4-601, B4-603, B4-620, B4-622, B4-
605R, B4-622R, F4-605R, F4-622R, and C4-605R Variant F airplanes.
    (3) Airbus SAS Model A310-203, -204, -221, -222, -304, -322, -
324, and -325 airplanes.
    (4) Airbus SAS Model A318-111, -112, -121, and -122 airplanes.
    (5) Airbus SAS Model A319-111, -112, -113, -114, -115, -131, -
132, -133, and -151N airplanes.
    (6) Airbus SAS Model A320-211, -212, -214, -216, -231, -232, -
233, -251N, -252N, -253N, -271N, -272N, and -273N airplanes.
    (7) Airbus SAS Model A321-111, -112, -131, -211, -212, -213, -
231, -232, -251N, -252N, -253N, -271N, -272N, -251NX, -252NX, -
253NX, -271NX, and -272NX airplanes.
    (8) Airbus SAS Model A330-201, -202, -203, -223, -243, -301, -
302, -303, -321, -322, -323, -341, -342, -343, and -941 airplanes.
    (9) Airbus Model A340-211, -212, -213, -311, -312, -313, -541,
and -642 airplanes.
    (10) ATR--GIE Avions de Transport R[eacute]gional Model ATR42-
200, -300, -320, and -500 airplanes.
    (11) ATR--GIE Avions de Transport R[eacute]gional Model ATR72-
101, -102, -201, -202, -211, -212, and -212A airplanes.
    (12) The Boeing Company Model 747-8 series airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 35, Oxygen
System.

(e) Unsafe Condition

    This AD was prompted by reports of cylinder and valve assemblies
having oxygen leakage from the valve assembly vent hole, caused by
the absence of a guide that maintains appropriate spacing between
certain parts. The FAA is issuing this AD to address oxygen leakage
from the cylinder, which could result in decreased or insufficient
oxygen supply during a depressurization event; and heating or flow
friction, which could cause an ignition event in the valve assembly.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Definition of Detailed Inspection

    For the purposes of this AD, a detailed inspection is an
intensive examination of a specific item, installation, or assembly
to detect damage, failure, or irregularity. Available lighting is
normally supplemented with a direct source of good lighting at an
intensity deemed appropriate. Inspection aids such as mirror,
magnifying lenses, etc., may be necessary. Surface cleaning and
elaborate procedures may be required.

(h) Identification of Affected Cylinder and Valve Assemblies

    Within 60 days after the effective date of this AD, inspect the
oxygen valve assemblies, and oxygen cylinder and valve assemblies,
to determine if the serial number of the valve, cylinder, and entire
assembly, is listed in Appendix 1, ``Affected Shipments,'' of the
applicable service information identified in paragraphs (h)(1)
through (3) of this AD. A review of airplane maintenance records is
acceptable in lieu of this inspection if the serial numbers can be
conclusively determined from that review.
    (1) AVOX Systems Inc., Alert Service Bulletin 10015804-35-01,
Revision 02, dated October 16, 2019.
    (2) AVOX Systems Inc., Alert Service Bulletin 10015804-35-02,
Revision 2, dated October 31, 2019.
    (3) AVOX Systems Inc., Alert Service Bulletin 10015804-35-03,
Revision 02, dated October 15, 2019.

(i) Inspection of the Gap, Parts Marking Actions, and Replacement

    If, during any inspection or records review required by
paragraph (h) of this AD, any oxygen valve assembly, valve or
cylinder of an oxygen cylinder and valve assembly, or oxygen
cylinder and valve assembly having an affected serial number is
found: Before further flight, do a detailed inspection for correct
spacing of the gap between the bottom of the packing retainer and
top of the valve body, in accordance with paragraph 3.C. of the
Accomplishment Instructions of the applicable service information
identified in paragraphs (h)(1) through (3) of this AD.
    (1) If the gap is found to be acceptable, before further flight,
do the parts marking actions in accordance with paragraph 3.D.(1) of
the Accomplishment Instructions of the applicable service
information identified in paragraph (h)(1) through (3) of this AD.
    (2) If the gap is found to be unacceptable, as defined in the
applicable service information identified in paragraphs (h)(1)
through (3) of this AD, before further flight, remove the affected
assembly, in accordance with paragraphs 3.D.(2) or 3.D.(3), as
applicable, of the Accomplishment Instructions of the applicable
service information identified in paragraphs (h)(1) through (3) of
this AD; and replace with a serviceable assembly.

(j) Reporting and Return of Parts

    (1) Report the results of the inspection required by paragraph
(i) of this AD within the applicable time specified in paragraph
(j)(1)(i) or (ii) of this AD. Report the results in accordance with
the paragraph 3.D.(1)(a), of the Accomplishment instructions of the
applicable service information identified in paragraphs (h)(1)
through (3) of this AD.
    (i) If the inspection was done on or after the effective date of
this AD: Submit the report within 30 days after the inspection.
    (ii) If the inspection was done before the effective date of
this AD: Submit the report within 30 days after the effective date
of this AD.
    (2) If, during an inspection required by paragraph (i) of this
AD, any gap is found to be unacceptable, within the applicable time
specified in paragraph (j)(2)(i) or (ii) of this AD, return the
assembly to the manufacturer in accordance with paragraph 3.D.(2) or
3.D.(3), as applicable, of the Accomplishment Instructions of the
applicable service information identified in paragraphs (h)(1)
through (3) of this AD.
    (i) If the inspection was done on or after the effective date of
this AD: Return the assembly within 30 days after the inspection.
    (ii) If the inspection was done before the effective date of
this AD: Return the assembly within 30 days after the effective date
of this AD.

(k) Parts Installation Limitation

    As of the effective date of this AD, no AVOX Systems Inc.,
oxygen valve assembly, or valve or cylinder that is part of an
oxygen cylinder and valve assembly, or oxygen cylinder and valve
assembly having an affected serial number identified in Appendix 1,
``Affected Shipments,'' of any AVOX Systems Inc., service
information identified in paragraphs (h)(1) through (3) of this AD,
may be installed on any airplane unless the requirements of
paragraph (i) of this AD have been accomplished on that affected
assembly.

(l) Credit for Previous Actions

    This paragraph provides credit for the actions specified in
paragraphs (h) or (i) of this AD, if those actions were performed
before the effective date of this AD using the service information
specified in paragraphs (l)(1) through (5) of this AD.
    (1) AVOX Systems Inc., Service Bulletin 10015804-35-01, dated
March 6, 2019.
    (2) AVOX Systems Inc., Alert Service Bulletin 10015804-35-01,
Revision 01, dated July 9, 2019.
    (3) AVOX Systems Inc., Alert Service Bulletin 10015804-35-02,
Revision 1, dated September 4, 2019.
    (4) AVOX Systems Inc., Service Bulletin 10015804-35-03, dated
April 11, 2019.
    (5) AVOX Systems Inc., Alert Service Bulletin 10015804-35-03,
Revision 1, dated May 21, 2019.

(m) Paperwork Reduction Act Burden Statement

    A federal agency may not conduct or sponsor, and a person is not
required to respond to, nor shall a person be subject to a penalty
for failure to comply with a collection of information subject to
the requirements of the Paperwork Reduction Act unless that
collection of information displays a current valid OMB Control
Number. The OMB Control Number for this information collection is
2120-0056. Public reporting for this collection of information is
estimated to be approximately 1 hour per response, including the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and
reviewing the collection of information. All responses to this
collection of information are mandatory as required by this AD; the
nature and extent of confidentiality to be provided, if any. Send
comments regarding this burden estimate or any other aspect of this
collection of information, including suggestions for reducing this
burden to Information Collection Clearance Officer, Federal Aviation
Administration, 10101 Hillwood Parkway, Fort Worth, TX 76177-1524.

(n) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, New York ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the certification office, send it to ATTN: Program
Manager, Continuing Operational Safety, FAA, New York ACO Branch,
1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516-
228-7300; fax<PHONE_NUMBER>.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(o) Related Information

    (1) For more information about this AD, contact Darren Gassetto,
Aerospace Engineer, Mechanical Systems and Administrative Services
Section, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact AVOX
Systems Inc., 225 Erie Street, Lancaster, NY 14086; telephone 716-
683-5100; internet https://www.safran-aerosystems.com. You may view
this service information at the FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.

    Issued on April 23, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-09115 Filed 4-30-20; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25254-25256]
[FR Doc No: 2022-09118]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP22-166-000]

Tennessee Gas Pipeline Company, L.L.C.; Notice of Request Under
Blanket Authorization and Establishing Intervention and Protest
Deadline

    Take notice that on April 13, 2022, Tennessee Gas Pipeline Company,
L.L.C. (Tennessee), 1001 Louisiana Street, Houston, Texas 77002, filed
in the above referenced docket a prior notice pursuant to sections
157.205, 157.208, and 157.210 of the Commission's regulations under the
Natural Gas Act (NGA) and its blanket certificate issued in Docket No.
CP82-413-000 requesting authorization to install one new CAT 3616, gas
driven, 5,000 horsepower reciprocating compressor package and
associated piping, valves, and ancillary equipment at its existing
Compressor Station 409 located in Hidalgo County, Texas (Compressor
Station 409 Project). Tennessee states that the project will increase
the north to south firm transportation capacity on Tennessee's system
in Zone 0 by 69,500 dekatherms per day (Dth/d). Tennessee states that
the change in capacity will enable Tennessee to extend the existing
primary firm transportation path of Mex Gas Supply, S.L., a non-
affiliated Tennessee shipper, to the Agua Dulce, Texas area. Also, the
project will enable Tennessee to offer an additional 7,500 Dth/d of
unsubscribed incremental firm capacity between the Agua Dulce, Texas
area and the Mexico border. Tennessee estimates the cost of the
Compressor Station 409 Project to be approximately $23.2 million, all
as more fully set forth in the request which is on file with the
Commission and open to 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 (http://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, due to the proclamation declaring a National Emergency
concerning the Novel

Coronavirus Disease (COVID-19), issued by the President on March 13,
2020. For assistance, contact the Federal Energy Regulatory Commission
at [email protected] or call toll-free,<PHONE_NUMBER> or TYY,
(202) 502-8659.
    Any questions concerning this request should be directed to Debbie
Kalisek, Senior Regulatory Analyst, Tennessee Gas Pipeline Company,
L.L.C., 1001 Louisiana Street, Houston, Texas 77002, by telephone at
(713) 420-3292, or by email at [email protected].

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 21, 2022. 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,\1\ any person \2\ 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.
---------------------------------------------------------------------------

    \1\ 18 CFR 157.205.
    \2\ Persons include individuals, organizations, businesses,
municipalities, and other entities. 18 CFR 385.102(d).
---------------------------------------------------------------------------

    Protests must comply with the requirements specified in section
157.205(e) of the Commission's regulations,\3\ and must be submitted by
the protest deadline, which is June 21, 2022. A protest may also serve
as a motion to intervene so long as the protestor states it also seeks
to be an intervenor.
---------------------------------------------------------------------------

    \3\ 18 CFR 157.205(e).
---------------------------------------------------------------------------

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 \4\ and the regulations under the NGA \5\ by the
intervention deadline for the project, which is June 21, 2022. 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/resources/guides/how-to/intervene.asp.
---------------------------------------------------------------------------

    \4\ 18 CFR 385.214.
    \5\ 18 CFR 157.10.
---------------------------------------------------------------------------

    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 21, 2022. 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
CP22-166-000 in your submission. The Commission encourages electronic
filing of submissions.
    (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.''
    The Commission's eFiling staff are available to assist you at (202)
502-8258 or [email protected]
    (2) You can file a paper copy of your submission. Your submission
must reference the Project docket number CP22-166-000.

To mail via USPS, use the following address: Kimberly D. Bose,
Secretary, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426

To mail via any other courier, use the following address: Kimberly D.
Bose, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852

    Protests and motions to intervene must be served on the applicant
either by mail or email (with a link to the document) at:
[email protected], 1001 Louisiana Street, Suite 1000,
Houston, Texas, 77002. 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.

    Dated: April 22, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-09118 Filed 4-27-22; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 70 (Wednesday, April 11, 2012)]
[Notices]
[Pages 21823-21826]
[FR Doc No: 2012-8712]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66747; File No. SR-NASDAQ-2012-047]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the Investor Support Program and the Extended Hours Investor
Program Under Rule 7014 and To Amend the Liquidity Provider Rebate
Schedule Under Rule 7018

April 5, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 30, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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

    NASDAQ proposes (i) to modify the Investor Support Program and the
Extended Hours Investor Program under Rule 7014, and (ii) to amend
NASDAQ's liquidity provider rebate schedule under Rule 7018. NASDAQ
will implement the proposed change on April 2, 2012. The text of the
proposed rule change is available at nasdaq.cchwallstreet.com, at
NASDAQ's principal office, 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 self-regulatory organization
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
Investor Support Program
    NASDAQ is proposing to make a minor modification to the Investor
Support Program (the ``ISP'') under Rule 7014. The ISP enables NASDAQ
members to earn a monthly fee credit for providing additional liquidity
to NASDAQ and increasing the NASDAQ-traded volume of what are generally
considered to be retail and institutional investor orders in exchange-
traded securities (``targeted liquidity''). The goal of the ISP is to
incentivize members to provide such targeted liquidity to the NASDAQ
Market Center.\3\ The Exchange noted in its original filing to
institute the ISP \4\ that maintaining and increasing the proportion of
orders in exchange-listed securities executed on a registered exchange
(rather than relying on any of the available off-exchange execution
methods) would help raise investors' confidence in the fairness of
their transactions and would benefit all investors by deepening
NASDAQ's liquidity pool, supporting the quality of price discovery,
promoting market transparency and improving investor protection.
---------------------------------------------------------------------------

    \3\ The Commission has recently expressed its concern that a
significant percentage of the orders of individual investors are
executed at over the counter (``OTC'') markets, that is, at off-
exchange markets; and that a significant percentage of the orders of
institutional investors are executed in dark pools. Securities
Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594
(January 21, 2010) (Concept Release on Equity Market Structure,
``Concept Release''). In the Concept Release, the Commission has
recognized the strong policy preference under the Act in favor of
price transparency and displayed markets. The Commission published
the Concept Release to invite public comment on a wide range of
market structure issues, including high frequency trading and un-
displayed, or ``dark,'' liquidity. See also Mary L. Schapiro,
Strengthening Our Equity Market Structure (Speech at the Economic
Club of New York, Sept. 7, 2010) (``Schapiro Speech,'' available on
the Commission Web site) (comments of Commission Chairman on what
she viewed as a troubling trend of reduced participation in the
equity markets by individual investors, and that nearly 30 percent
of volume in U.S.-listed equities is executed in venues that do not
display their liquidity or make it generally available to the
public).
    \4\ Securities Exchange Act Release No. 63270 (November 8,
2010), 75 FR 69489 (November 12, 2010) (NASDAQ-2010-141) (notice of
filing and immediate effectiveness).
---------------------------------------------------------------------------

    On March 1, 2012, the Exchange added an additional method for
members to qualify for an ISP rebate that included a criterion focused
on liquidity provision through Public Customer Orders in the NASDAQ
Options Market.\5\ The Exchange is now proposing a minor modification
to this recently introduced aspect of the ISP (the ``Options Tier'').
---------------------------------------------------------------------------

    \5\ Securities Exchange Act Release No. 66544 (March 8, 2012),
77 FR 15163 (March 14, 2012) (SR-NASDAQ-2012-032).
---------------------------------------------------------------------------

    The Options Tier recognized the extent to which members that
represent retail and/or institutional investors are active in trading
both cash equities and options on behalf of such customers. In fact, to
an increasing extent the customers that such members represent
simultaneously trade different asset classes within a single investment
strategy. NASDAQ also notes that cash equities and options markets are
linked, with liquidity and trading patterns on one market affecting
those on the other. Accordingly, pricing incentives that encourage
market participant activity in both markets recognize that activity in
the options markets also supports price discovery and liquidity
provision in the NASDAQ Market Center. The NASDAQ Market Center fee
schedule for order execution and routing in Rule 7018 also recognizes
the convergence between cash equities and options trading through
liquidity provider rebate tiers available to members active in both the
NASDAQ Market Center and the NASDAQ Options Market.
    Participants in the ISP are required to designate specific NASDAQ
order entry ports for use under the ISP and to meet specified criteria
focused on market participation, liquidity provision, and high rates of
order execution. For members qualifying for the Options Tier, NASDAQ
pays a credit of $0.0003 per share with respect to shares of displayed
liquidity executed at a price of $1 or more and entered through ISP-
designated ports, and $0.0001 per share with respect to all other
shares of displayed liquidity executed at a price of $1 or more. The
specific criteria for the Options Tier are as follows:
    (1) The member's Participation Ratio \6\ for the month exceeds its
Baseline Participation Ratio \7\ by at least 0.30%.

In general terms, the Baseline Participation Ratio is the ratio of
shares of liquidity provided by the member in NASDAQ for the month of
August 2010 or August 2011 (whichever is lower) to the total
consolidated volume for that month. To the extent that a member's
participation in NASDAQ equals or exceeds its Baseline Participation
Ratio (i.e., to the extent that the member at least matches its
participation in NASDAQ during the lower of August 2010 or August
2011), the member may be eligible for the program. Exceeding the
Baseline Participation Ratio by specified amounts may qualify the
member for higher credits under the ISP. The requirement reflects the
expectation that a member participating in the program must maintain or
increase its participation in NASDAQ as compared with an historical
baseline.
---------------------------------------------------------------------------

    \6\ ``Participation Ratio'' is defined as follows: ``[F]or a
given member in a given month, the ratio of (A) the number of shares
of liquidity provided in orders entered by the member through any of
its Nasdaq ports and executed in the Nasdaq Market Center during
such month to (B) the Consolidated Volume.'' ``Consolidated Volume''
is defined as follows: ``[F]or a given member in a given month, the
consolidated volume of shares of System Securities in executed
orders reported to all consolidated transaction reporting plans by
all exchanges and trade reporting facilities during such month.''
``System Securities'' means all securities listed on NASDAQ and all
securities subject to the Consolidated Tape Association Plan and the
Consolidated Quotation Plan.
    \7\ ``Baseline Participation Ratio'' is defined as follows:
``[W]ith respect to a member, the lower of such member's
Participation Ratio for the month of August 2010 or the month of
August 2011, provided that in calculating such Participation Ratios,
the numerator shall be increased by the amount (if any) of the
member's Indirect Order Flow for such month, and provided further
that if the result is zero for either month, the Baseline
Participation Ratio shall be deemed to be 0.485% (when rounded to
three decimal places).'' ``Indirect Order Flow'' is defined as
follows: ``[F]or a given member in a given month, the number of
shares of liquidity provided in orders entered into the Nasdaq
Market Center at the member's direction by another member with
minimal substantive intermediation by such other member and executed
in the Nasdaq Market Center during such month.''
---------------------------------------------------------------------------

    (2) The member's ``ISP Execution Ratio'' for the month must be less
than 10. The ISP Execution Ratio is defined as ``the ratio of (A) the
total number of liquidity-providing orders entered by a member through
its ISP-designated ports during the specified time period to (B) the
number of liquidity-providing orders entered by such member through its
ISP-designated ports and executed (in full or partially) in the Nasdaq
Market Center during such time period; provided that: (i) No order
shall be counted as executed more than once; and (ii) no Pegged Orders,
odd-lot orders, or MIOC or SIOC orders shall be included in the
tabulation.'' \8\ Thus, the definition requires a ratio between the
total number of orders that post to the NASDAQ book and the number of
such orders that actually execute that is low, a characteristic that
NASDAQ believes to be reflective of retail and institutional order
flow.
---------------------------------------------------------------------------

    \8\ These terms have the meanings assigned to them in Rule 4751.
MIOC and SIOC orders are forms of ``immediate or cancel'' orders and
therefore cannot be liquidity-providing orders.
---------------------------------------------------------------------------

    (3) The shares of liquidity provided through ISP-designated ports
during the month are equal to or greater than 0.2% of Consolidated
Volume during the month, reflecting the ISP goals of encouraging higher
levels of liquidity provision.
    (4) At least 80% of the liquidity provided by the member during the
month is provided through ISP-designated ports. This requirement is
designed to mitigate ``gaming'' of the program by firms that do not
generally represent retail or institutional order flow but that
nevertheless are able to channel a portion of their orders that they
intend to execute through ISP-designated ports and thereby receive a
credit with respect to those orders.
    (5) The member has an average daily volume during the month of
100,000 or more contracts of liquidity provided through one or more of
its Nasdaq Option Market market participant identifiers (``MPIDs''),
provided that such liquidity is provided through Public Customer
Orders, as defined in Chapter I, Section 1 of the Nasdaq Options Market
Rules. That rule defines Public Customer Order as an order for the
account of a person that is not a broker or a dealer. Thus, in keeping
with the goal of the ISP to encourage participation by retail and
institutional investors and the members that represent them in exchange
markets, the criterion focused on options requires a specified level of
liquidity provision through orders that are directly identified under
Nasdaq Options Market rules as having characteristics consistent with
this goal.
    (6) The member's ratio between shares of liquidity provided through
ISP-designated ports and total shares accessed, provided, or routed
through ISP-designated ports during the month is at least 0.80. This
additional criterion reflects a goal of ensuring that the qualifying
member is using its ISP-designated ports substantially for liquidity
provision, in keeping with the ISP's overall goal of drawing liquidity-
providing orders to exchange markets. In this proposed rule change,
NASDAQ is proposing to reduce the required ratio to 0.70. NASDAQ
believes that the change will encourage more members to seek to qualify
for the Options Tier. Therefore, even though the change will reduce the
liquidity requirement for qualifying members, NASDAQ believes that the
change is still consistent with the Exchange's goal of drawing
liquidity-providing orders to exchange markets.
Extended Hours Investor Program
    NASDAQ is also proposing to make a similar change to its Extended
Hours Investor Program (the ``EHIP''). The EHIP is designed to
encourage greater use of NASDAQ's facilities for trading before the
market open at 9:30 a.m., after the market close at 4 p.m., and
throughout the trading day. The goal of the program is to encourage the
development of a deeper, more liquid trading book during pre-market and
post-market hours, while also recognizing the correlation observed by
NASDAQ between levels of liquidity provided during these trading
sessions and levels provided during regular trading hours.
    Under the program, a member is required to designate one or more
MPIDs for use under the program. The member then qualifies for an extra
rebate of $0.0002 per share executed with respect to all displayed
liquidity provided through a designated MPID that executes at a price
of $1 or more during the month if the following conditions are met:
    (1) the MPID's ``EHIP Execution Ratio'' for the month is less than
10. The EHIP Execution Ratio is defined as ``the ratio of (A) the total
number of liquidity-providing orders entered by a member through an
EHIP-designated MPID during the specified time period to (B) the number
of liquidity-providing orders entered by such member through such EHIP-
designated MPID and executed (in full or partially) in the Nasdaq
Market Center during such time period; provided that: (i) no order
shall be counted as executed more than once; and (ii) no Pegged Orders,
odd-lot orders, or MIOC or SIOC orders \9\ shall be included in the
tabulation.'' Thus, the requirement stipulates that a high proportion
of potentially liquidity-providing orders entered through the MPID
actually execute and provide liquidity. This requirement is designed to
focus the availability of the program on members representing retail
and institutional customers.
---------------------------------------------------------------------------

    \9\ See supra n.8.
---------------------------------------------------------------------------

    (2) The member must provide (i) an average daily volume of 2
million or more shares of liquidity during the month using orders that
are entered through its designated MPID and executed prior to NASDAQ's
Opening Cross, or (ii) an average daily volume of 3 million or more
shares of liquidity during the month using orders that are entered
through its designated MPID and executed prior to the Nasdaq Opening
Cross and/or after the Nasdaq Closing Cross. NASDAQ has observed that
members that provide higher volumes of liquidity-providing orders
during the pre-market or post-market hours generally do so throughout
the rest of the trading day. Accordingly, the program pays a credit
with respect to all liquidity-providing orders, but only in the event
that comparatively large

volumes of such orders execute outside of regular market hours.
    (3) The ratio between shares of liquidity provided through the MPID
and total shares accessed, provided, or routed through the MPID during
the month is at least 0.80. This requirement reflects the program's
goal of encouraging members that provide high levels of liquidity in
the pre-market and/or after-hours trading sessions to also do so during
the rest of the trading day. In this proposed rule change, NASDAQ
proposes to reduce the required ratio to 0.70. NASDAQ believes that the
change will encourage more members to seek to qualify for the EHIP.
Therefore, even though the change will reduce the liquidity requirement
for qualifying members, NASDAQ believes that the change is still
consistent with the Exchange's goal of using the EHIP to encourage high
levels of liquidity provision throughout the trading day.
Rebate Schedule
    Finally, NASDAQ is amending Rule 7018(a) to make a minor
modification to two of its liquidity-provider rebate tiers.\10\
Currently, NASDAQ pays a rebate of $0.0010 per share executed for non-
displayed quotes/orders, and $0.0025 per share executed for other
quotes/orders, if a member satisfies the following criteria: (i) the
member provides shares of liquidity in all securities during the month
representing more than 0.10% of Consolidated Volume \11\ during the
month, through one or more of its NASDAQ Market Center MPIDs, and (ii)
the member has an average daily volume during the month of more than
115,000 contracts of liquidity accessed or provided through one or more
of its NASDAQ Options Market MPIDs. NASDAQ is proposing to reduce the
options contract requirement from 115,000 to 100,000, to reflect lower
overall trading volumes in options markets and thereby make the rebate
tier available to a wider number of market participants. Similarly,
NASDAQ pays a rebate of $0.0015 per share executed for non-displayed
quotes/orders, and $0.0029 per share executed for other quotes/orders,
if a member satisfies the following criteria: (i) the member provides
shares of liquidity in all securities during the month representing
more than 0.15% of Consolidated Volume during the month, through one or
more of its Nasdaq Market Center MPIDs, and (ii) the member has an
average daily volume during the month of more than 115,000 contracts of
liquidity accessed or provided through one or more of its Nasdaq
Options Market MPIDs. NASDAQ is also proposing to reduce the options
contract requirement of this tier from 115,000 to 100,000, for
identical reasons.
---------------------------------------------------------------------------

    \10\ Rule 7018(a) governs executions of securities priced at $1
or more. Fees and rebates applicable to securities priced under $1
are unchanged.
    \11\ ``Consolidated Volume'' is defined as ``the total
consolidated volume reported to all transaction reporting plans by
all exchanges and trade reporting facilities.''
---------------------------------------------------------------------------

2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\12\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\13\ 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 any
facility or system which NASDAQ operates or controls, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The ISP encourages members to add targeted liquidity that is
executed in the NASDAQ Market Center. Although the proposed change
lowers the amount of liquidity that a member must provide through ISP-
designated ports in order to qualify for the Options Tier, NASDAQ
believes that the change may result in an even greater amount of
targeted liquidity being provided to the NASDAQ Market Center and the
NASDAQ Options Market, because more members will seek to qualify for
the tier by routing targeted liquidity to NASDAQ rather than other
trading venues.
    The rule change proposal, like the original ISP, is not designed to
permit unfair discrimination, but rather is intended to promote
submission of liquidity-providing orders to NASDAQ, which benefits all
NASDAQ members and all investors. Thus, the modified Options Tier will
make the incentive provided by the tier available to a wider range of
market participants, and thereby seeks to benefit all market
participants by encouraging more members to provide targeted liquidity
to the Exchange.
    Likewise, the proposal, like the ISP, is consistent with the Act's
requirement for the equitable allocation of reasonable dues, fees, and
other charges. Members who choose to significantly increase the volume
of liquidity-providing orders that they submit in order to qualify for
the modified Options Tier would be benefitting all investors, and
therefore providing credits to them, as contemplated by the ISP, is
equitable. Moreover, NASDAQ believes that the level of the credit
available through the Options Tier--$0.0003 per share for displayed
liquidity provided through ISP-designated ports and $0.0001 per share
for other displayed liquidity--is reasonable, in that it is comparable
to the added rebates of $0.0001, $0.0003, or $0.0004 per share executed
provided under other ISP tiers, and does not reflect a disproportionate
increase above the rebates provided to all members with respect to the
provision of displayed liquidity under Rule 7018, which range from
$0.0020 to $0.00295 per share executed. NASDAQ further notes that by
modifying the Options Tier, NASDAQ is effectively reducing fees for
members qualifying for the modified tier without making any offsetting
fee increases.
    The EHIP is not unfairly discriminatory because it is intended to
promote submission of liquidity-providing orders to NASDAQ, which
benefits all NASDAQ members and all investors. The proposed
modifications to the program will make the EHIP incentive available to
a wider range of market participants, and thereby seeks to benefit all
market participants by encouraging more members to provide liquidity to
the Exchange. Likewise, the EHIP, and the proposed modifications to the
EHIP, are consistent with the Act's requirement for the equitable
allocation of reasonable dues, fees, and other charges. Members that
choose to significantly increase the volume of EHIP-eligible liquidity-
providing orders that they submit to NASDAQ would be benefitting all
investors, and therefore providing credits to such members, as
contemplated in the proposed modified program, is equitable. Although
the liquidity-provision requirements of the program are being reduced,
NASDAQ believes that the modification may increase the overall level of
liquidity provision by encouraging more members to participate.
Moreover, NASDAQ believes that the level of the credit--$0.0002 per
share, in addition to credits ranging from $0.0020 to $0.00295 per
share for displayed liquidity under NASDAQ's regular transaction
execution fee and rebate schedule--is reasonable. NASDAQ further notes
that by modifying the EHIP, NASDAQ is effectively reducing fees for
members qualifying for the modified tier without making any offsetting
fee increases.
    With respect to the amendment to the rebate tiers in Rule 7018 for
members active on both the NASDAQ Market Center and the NASDAQ Options
Market, NASDAQ has noted in its prior

filings with regard to these tiers that they are responsive to the
convergence of trading in which members simultaneously trade different
asset classes within a single strategy.\14\ NASDAQ also notes that cash
equities and options markets are linked, with liquidity and trading
patterns on one market affecting those on the other. Accordingly,
pricing incentives that encourage market participant activity in both
markets recognize that activity in the options markets also supports
price discovery and liquidity provision in the NASDAQ Market Center.
---------------------------------------------------------------------------

    \14\ Securities Exchange Act Release No. 64003 (March 2, 2011),
76 FR 12784 (March 8, 2011) (SR-NASDAQ-2011-028); Securities
Exchange Act Release No. 59879 (May 6, 2009), 74 FR 22619 (May 13,
2009) (SR-NASDAQ-2009-041).
---------------------------------------------------------------------------

    NASDAQ believes that the modifications to the tiers are reasonable
because by reducing the levels of Nasdaq Options Market activity
required to qualify for the tiers, the change will ensure that the
tiers remain accessible by a range of market participants, despite
reduced trading volumes in options markets. NASDAQ further believes
that the change is consistent with an equitable allocation of fees
because it will provide for the continued availability of pricing
incentives designed to benefit the market by encouraging liquidity
provision. Finally, NASDAQ believes that the modified tiers are not
unreasonably discriminatory, because the change provides for continued
availability of the incentive offered through the tiers without
modifying other rebate tiers that provide alternative means to achieve
the same rebate levels but without use of the NASDAQ Options Market.
    Finally, NASDAQ notes that it operates in a highly competitive
market in which market participants can readily favor competing venues
if they deem fee levels at a particular venue to be excessive, or
rebate opportunities available at other venues to be more favorable. In
such an environment, NASDAQ must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. NASDAQ believes that the proposed rule change
reflects this competitive environment because the changes are intended
to increase the availability of rebates that are designed to attract
liquidity and thereby enhance NASDAQ's market quality.

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

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Because the market
for order execution is extremely competitive, members may readily opt
to disfavor NASDAQ's execution services if they believe that
alternatives offer them better value. For this reason and the reasons
discussed in connection with the statutory basis for the proposed rule
change, NASDAQ does not believe that the proposed changes will impair
the ability of members or competing order execution venues to maintain
their competitive standing in the financial markets. In fact, because
the proposed changes increase the availability of rebates, NASDAQ
believes that the changes will enhance the degree of competition
between NASDAQ and other trading venues.

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

    Written comments were neither solicited nor received.

III. 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.\15\ 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 necessary or appropriate in the public interest,
for the protection of investors, or 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.
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    \15\ 15 U.S.C. 78s(b)(3)(a)(ii).
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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-NASDAQ-2012-047 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-NASDAQ-2012-047. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2012-047 and should
be submitted on or before May 2, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-8712 Filed 4-10-12; 8:45 am]
BILLING CODE 8011-01-P