[Federal Register Volume 76, Number 114 (Tuesday, June 14, 2011)]
[Notices]
[Pages 34801-34802]
[FR Doc No: 2011-14730]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[ Docket Number FRA-2010-0174]

Petition for Modification of Single Car Air Brake Test Procedures

    In accordance with Part 232 of Title 49 of the Code of Federal
Regulations (CFR), this document provides the public notice that by a
document dated November 19, 2010, the Port Authority Trans-Hudson
Corporation (PATH) has requested the Federal Railroad Administration
(FRA) grant a modification of the single car air brake test procedures
as prescribed in 49 CFR 232.305(a). FRA assigned the request Docket
Number FRA-2010-0174.
    PATH operates a fleet of 25 flat cars in consist with revenue cars
utilized as locomotives in ``work'' trains, where the friction brakes
operate in conjunction with the RT2 system of straight air brake
employed on PATH cars. The single car air brake test described in
Association of American Railroads (AAR) S-486 (incorporated by
reference in 49 CFR 232.305) is intended for freight cars with
automatic brake systems that are significantly different than the RT2
system utilized by PATH. As such, PATH believes that a brake system
inspection and testing procedure similar to that performed on PATH MU
locomotives is required since a conventional AAR S-486 single car air
brake test cannot be performed on these flat cars.
    PATH requests a modification to the single car air brake test
procedure required in 49 CFR 232.305 by the adoption of ``Procedure for
the Inspection/Testing of PATH Flat Cars'' (05/04/11 revision), Docket
Number FRA-2010-0174-0004.1; and ``Procedure for the Inspection/Testing
of PATH Flat Cars Addendum Brake Rigging Inspection and Slack
Adjustment'' (05/04/11), Docket Number FRA-2010-0174-0005.1.
    Copies of these documents and the petition, as well as any written
communications concerning the petition, is available for review online
at http://www.regulations.gov and in person at the Department of
Transportation's Docket Operations Facility, 1200 New Jersey Avenue,
SE., W12-140, Washington, DC 20590. The Docket Operations Facility is
open from 9 a.m. to 5 p.m., Monday through Friday, except Federal
Holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. All communications
concerning these proceedings should identify the appropriate docket
number (e.g., Docket Number FRA-2010-0174) and may be submitted by any
of the following methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue, SE., Room W12-140,
Washington, DC 20590, between 9 a.m.

and 5 p.m., Monday through Friday, except Federal Holidays.
    Communications received by August 15, 2011 will be considered by
FRA before final action is taken. Pursuant to 232.307(d), if no comment
objecting to the requested modification is received during the 60-day
comment period, or if FRA does not issue a written objection to the
requested modification, the modification will become effective August
29, 2011.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the comment,
if submitted on behalf of an association, business, labor union, etc.).
You may review DOT's complete Privacy Act Statement in the Federal
Register published on April 11, 2000 (Volume 65, Number 70; Pages
19477-78) or online at http://www.dot.gov/privacy.html.

    Issued in Washington, DC on June 9, 2011.
Robert C. Lauby,
Deputy Associate Administrator for Regulatory & Legislative Operations.
[FR Doc. 2011-14730 Filed 6-13-11; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register: November 9, 2005 (Volume 70, Number 216)]
[Notices]
[Page 68070-68071]
[DOCID:fr09no05-78]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

Open Meeting of the Federal Interagency Committee on Emergency
Medical Services (FICEMS)

AGENCY: Federal Emergency Management Agency (FEMA), Department of
Homeland Security.

ACTION: Notice of open meeting.

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SUMMARY: FEMA announces the following open meeting.
    Name: Federal Interagency Committee on Emergency Medical Services
(FICEMS).
    Date of Meeting: December 1, 2005.
    Place: 3rd Floor Conference Center, Potomac Room, Parklawn
Building, 5600 Fishers Lane Rockville, Maryland 20857.
    Times: 10:30 a.m.--Main FICEMS Meeting; 1 p.m.--FICEMS Ambulance
Safety Subcommittee.
    Proposed Agenda: Review and submission for approval of previous
FICEMS Committee Meeting Minutes; Ambulance Safety Subcommittee and
Counter-terrorism Subcommittee report; Action Items review;
presentation of member agency reports; and reports of other interested
parties.

SUPPLEMENTARY INFORMATION: This meeting will be open to the public with
limited seating available on a first-come, first-served basis. See the
Response and Security Procedures below. For those driving, parking is
$7.00 per day.
    Response Procedures: Committee Members and members of the general
public who plan to attend the meeting should contact Mr. Mike McKay, on
or before Tuesday, November 29, 2005, via mail at NATEK Incorporated,
21355 Ridgetop Circle, Suite 200, Dulles, Virginia 20166-8503, or by
telephone at<PHONE_NUMBER>, or via facsimile at<PHONE_NUMBER>, or via
e-mail at<EMAIL_ADDRESS>This is necessary to be able to create
and provide a current roster of visitors to HRSA Security per
directives.
    Security Procedures: Increased security controls and surveillance
are in effect at the Parklawn Building/HRSA facilities. All visitors
must have a valid

picture identification card and their vehicles will be subject to
search by Security personnel. All visitors will be issued a visitor
pass which must be worn at all times while in the facility. Please
allow adequate time before the meeting to complete the security
process.
    Conference Call Capabilities: If you are not able to attend in
person, a toll free number has been set up for teleconferencing. The
toll free number will be available from 10 a.m. until 4 p.m. Members
should call in around 10:30 a.m. The number is 1-800-320-4330. The
FICEMS conference code is ``885721.''
    FICEMS Meeting Minutes: Minutes of the meeting will be prepared and
will be available upon request 30 days after they have been approved at
the next FICEMS Committee Meeting on March 2, 2006. The minutes will
also be posted on the United States Fire Administration Web site at
http://www.usfa.fema.gov/fire-service/ems/ficems.shtm within 30 days

after their approval at the March 2, 2006 FICEMS Committee Meeting.

    Dated: November 2, 2005.
R. David Paulison,
Acting Director, Federal Emergency Management Agency, Department of
Homeland Security.
[FR Doc. 05-22318 Filed 11-8-05; 8:45 am]

BILLING CODE 9110-17-U


[Federal Register: July 8, 2009 (Volume 74, Number 129)]
[Rules and Regulations]
[Page 32414-32417]
[DOCID:fr08jy09-7]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0933; Directorate Identifier 2007-NM-261-AD;
Amendment 39-15956; AD 2009-14-06]
RIN 2120-AA64

Airworthiness Directives; Boeing Model 777 Airplanes

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

ACTION: Final rule.

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SUMMARY: The FAA is superseding an existing airworthiness directive
(AD), which applies to all Boeing Model 777 airplanes. That AD
currently requires, for the drive mechanism of the horizontal
stabilizer, repetitive detailed inspections for discrepancies,
repetitive lubrication of the ballnut and ballscrew, repetitive
measurements of the freeplay between the ballnut and the ballscrew, and
corrective action if necessary. This new AD revises the compliance
times of the existing AD. This AD results from a report of extensive
corrosion of a ballscrew in the drive mechanism of the horizontal
stabilizer on a Boeing Model 757 airplane, which is similar in design
to the ballscrew on Model 777 airplanes. We are issuing this AD to
prevent an undetected failure of the primary load path for the
ballscrew in the drive mechanism of the horizontal stabilizer and
subsequent wear and failure of the secondary load path, which could
lead to loss of control of the horizontal stabilizer and consequent
loss of control of the airplane.

DATES: This AD becomes effective August 12, 2009.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of August 12,
2009.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-
544-5000, extension 1, fax<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
Internet https://www.myboeingfleet.com.

Examining the AD Docket

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

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

SUPPLEMENTARY INFORMATION:

Discussion

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 to include an AD that supersedes AD 2007-17-12, amendment
39-15170 (72 FR 49158, August 28, 2007). The existing AD applies to all
Boeing Model 777 airplanes. That NPRM was published in the Federal
Register on August 29, 2008 (73 FR 50896). That NPRM proposed to retain
the actions specified in the existing AD (i.e., for the drive mechanism
of the horizontal stabilizer, repetitive detailed inspections for
discrepancies, repetitive lubrication of the ballnut and ballscrew,
repetitive measurements of the freeplay between the ballnut and the
ballscrew, and corrective action if necessary) but with new initial
inspection compliance times.

New Service Information

    Since issuance of the NPRM, we have reviewed Boeing Service
Bulletin 777-27A0059, Revision 2, dated January 15, 2009. This revision
of the service bulletin is essentially the same as Revision 1 of the
service bulletin. (We referred to Boeing Alert Service Bulletin 777-
27A0059, Revision 1, August 18, 2005, as the appropriate source of
service information for doing the actions proposed in the NPRM.)
Revision 2 of the service bulletin specifies similar

compliance times as those proposed in the NPRM, adds clarifying
language regarding tooling, refers to the superseded AD, and defines
the phrase ``known serviceable condition'' for a horizontal stabilizer
trim actuator (HSTA), including defining the term ``overhaul.''

Explanation of Removed Service Bulletin Reference Paragraph and Note 1

    We have removed the ``Service Bulletin Reference'' paragraph (i.e.,
paragraph (f) of the NPRM) and Note 1 from this AD and included
references to Boeing Service Bulletin 777-27A0059, Revision 2, dated
January 15, 2009, in paragraphs (g), (h), (i), and (l) of this AD. We
have added Boeing Alert Service Bulletin 777-27A0059, Revision 1, dated
August 18, 2005, to paragraph (j) of this AD to give credit for actions
done before the effective date of this AD in accordance with Revision 1
of the service bulletin.

Comments

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

Requests for Clarification of ``Overhaul'' and ``Serviceable''

    The Air Transport Association, on behalf of one of its members,
American Airlines, requests that we clarify the meaning of ``overhaul''
and ``serviceable'' in both the NPRM and Boeing Alert Service Bulletin
777-27A0059, Revision 1, August 18, 2005.
    American Airlines states that the NPRM specifies to replace an HSTA
with a new or ``serviceable'' unit in accordance with Boeing Alert
Service Bulletin 777-27A0059, Revision 1, dated August 18, 2005, and
that the NPRM also states that no person shall install, on any
airplane, an HSTA that is not new or ``overhauled,'' unless a detailed
inspection, freeplay measurement, and lubrication of that actuator have
been performed in accordance with paragraphs (h), (i), and (j) of the
proposed AD (i.e., paragraphs (g), (h), and (i) of this final rule). In
addition, American Airlines states that the component maintenance
manual (CMM) for the subject HSTA does not have a defined ``overhaul''
work scope. American Airlines believes that the NPRM and the service
bulletin should provide the specific procedures and/or CMM requirements
for what constitutes an ``overhauled'' and/or ``serviceable'' HSTA.
    We agree with the commenters. Note 6 of paragraph 3.A. of Boeing
Service Bulletin 777-27A0059, Revision 2, dated January 15, 2009, now
defines the phrase ``known serviceable condition'' for an HSTA,
including defining the term ``overhaul.'' We have added the phrase
``known serviceable condition'' to paragraphs (f)(2) through (f)(4),
(g), and (h) of this AD in place of the words ``serviceable HSTA'' and
``new or overhauled'' in the NPRM to be in line with the usage in that
service bulletin. We have also changed paragraph (l) of this AD to
refer to the definition of ``known serviceable condition'' in that
service bulletin. In addition, new Note 1 referring to ``known
serviceable condition'' has been added to the final rule.

Conclusion

    We have carefully reviewed the available data, including the
comments that have been received, and determined that air safety and
the public interest require adopting the AD with the changes described
previously. We have determined that these changes will neither increase
the economic burden on any operator nor increase the scope of the AD.

Costs of Compliance

    There are about 596 airplanes of the affected design in the
worldwide fleet. This AD affects about 203 airplanes of U.S. registry.
The new requirements of this AD add no additional economic burden. The
current costs of the existing AD are repeated for the convenience of
affected operators, as follows.
    The maintenance records check takes about 1 work hour per airplane,
at an average labor rate of $80 per work hour. Based on these figures,
the estimated cost of the maintenance records check for U.S. operators
is $16,240, or $80 per airplane.
    The detailed inspection takes about 1 work hour per airplane, at an
average labor rate of $80 per work hour. Based on these figures, the
estimated cost of the inspection for U.S. operators is $16,240, or $80
per airplane, per inspection cycle.
    The freeplay measurement takes about 5 work hours per airplane, at
an average labor rate of $80 per work hour. Based on these figures, the
estimated cost of the freeplay measurement for U.S. operators is
$81,200, or $400 per airplane, per measurement cycle.
    The required lubrication takes about 1 work hour per airplane, at
an average labor rate of $80 per work hour. Based on these figures, the
estimated cost of the lubrication for U.S. operators is $16,240, or $80
per airplane, per lubrication cycle.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The Federal Aviation Administration (FAA) amends Sec.  39.13 by
removing amendment 39-15170 (72 FR 49158, August 28, 2007) and by
adding the following new airworthiness directive (AD):

2009-14-06 Boeing: Amendment 39-15956. Docket No. FAA-2008-0933;
Directorate Identifier 2007-NM-261-AD.

Effective Date

    (a) This AD becomes effective August 12, 2009.

Affected ADs

    (b) This AD supersedes AD 2007-17-12.

Applicability

    (c) This AD applies to all Boeing Model 777 airplanes,
certificated in any category.

Unsafe Condition

    (d) This AD results from a report of extensive corrosion of a
ballscrew in the drive mechanism of the horizontal stabilizer on a
Boeing Model 757 airplane, which is similar in design to the
ballscrew on Model 777 airplanes. We are issuing this AD to prevent
an undetected failure of the primary load path for the ballscrew in
the drive mechanism of the horizontal stabilizer and subsequent wear
and failure of the secondary load path, which could lead to loss of
control of the horizontal stabilizer and consequent loss of control
of the airplane.

Compliance

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

Restatement of Requirements of AD 2007-17-12 With Revised Compliance
Times and Updated Service Information

Maintenance Records Check

    (f) For airplanes that have received an original airworthiness
certificate or original export certificate of airworthiness prior to
the effective date of this AD: Within 180 days or 3,500 flight hours
after the effective date of this AD, whichever occurs first, perform
a maintenance records check or inspect to determine the status of
the horizontal stabilizer trim actuator (HSTA) as specified in
paragraph (f)(1), (f)(2), (f)(3), or (f)(4) of this AD, as
applicable:
    (1) The original HSTA delivered with the airplane has not been
removed and is still installed on the airplane;
    (2) The original HSTA has been replaced with an HSTA in a known
serviceable condition;
    (3) The original HSTA has been replaced with an HSTA that is not
in a known serviceable condition, and which has not received a
detailed inspection and freeplay measurement as described in
paragraphs (g) and (h) of this AD since that replacement; or
    (4) The original HSTA has been replaced with an HSTA that is not
in a known serviceable condition, and which has received a detailed
inspection and freeplay measurement as described in paragraphs (g)
and (h) of this AD since that replacement.

    Note 1:  The phrase ``known serviceable condition'' is defined
in section 3.A., Note 6, of Boeing Service Bulletin 777-27A0059,
Revision 2, dated January 15, 2009.

Detailed Inspection

    (g) Within the compliance times specified in paragraphs (g)(1),
(g)(2), (g)(3), and (g)(4) of this AD, as applicable: Perform a
detailed inspection for discrepancies of the horizontal stabilizer
trim actuator ballnut and ballscrew, in accordance with Part 1 of
the Accomplishment Instructions of Boeing Service Bulletin 777-
27A0059, Revision 2, dated January 15, 2009. Repeat the detailed
inspection thereafter at intervals not to exceed 3,500 flight hours
or 12 months, whichever occurs first. If any discrepancy is found
during any inspection required by this AD, before further flight,
replace the actuator with an actuator in a known serviceable
condition, in accordance with the Accomplishment Instructions of
Boeing Service Bulletin 777-27A0059, Revision 2, dated January 15,
2009.
    (1) For airplanes identified in paragraph (f)(1) of this AD:
Before the accumulation of 15,000 total flight hours, or within 18
months after the effective date of this AD, whichever occurs later.
    (2) For airplanes identified in paragraph (f)(2) or (f)(4) of
this AD: Before the accumulation of 15,000 flight hours since the
replacement of the HSTA, or within 18 months after the effective
date of this AD, whichever occurs later.
    (3) For airplanes identified in paragraph (f)(3) of this AD:
Before the accumulation of 3,500 flight hours since the replacement
of the HSTA, or within 12 months after the effective date of this
AD, whichever occurs later.
    (4) For airplanes that have received an original airworthiness
certificate or original export certificate of airworthiness on or
after the effective date of this AD: Before the accumulation of
15,000 total flight hours, or within 18 months after the issuance of
the original airworthiness certificate or original export
certificate of airworthiness, whichever occurs later.

Freeplay Measurement (Inspection)

    (h) Within the compliance times specified in paragraphs (h)(1),
(h)(2), (h)(3), and (h)(4) of this AD, as applicable: Perform a
freeplay measurement of the ballnut and ballscrew in accordance with
Part 2 of the Accomplishment Instructions of Boeing Service Bulletin
777-27A0059, Revision 2, dated January 15, 2009. Repeat the freeplay
measurement thereafter at intervals not to exceed 18,000 flight
hours or 60 months, whichever occurs first. If the freeplay is found
to exceed the limits specified in the service bulletin during any
measurement required by this AD, before further flight, replace the
actuator with an actuator in a known serviceable condition, in
accordance with the Accomplishment Instructions of Boeing Service
Bulletin 777-27A0059, Revision 2, dated January 15, 2009.
    (1) For airplanes identified in paragraph (f)(1) of this AD:
Before the accumulation of 15,000 total flight hours, or within 18
months after the effective date of this AD, whichever occurs later.
    (2) For airplanes identified in paragraph (f)(2) or (f)(4) of
this AD: Before the accumulation of 15,000 flight hours since the
replacement of the HSTA, or within 18 months after the effective
date of this AD, whichever occurs later.
    (3) For airplanes identified in paragraph (f)(3) of this AD:
Before the accumulation of 3,500 flight hours since the replacement
of the HSTA, or within 12 months after the effective date of this
AD, whichever occurs later.
    (4) For airplanes that have received an original airworthiness
certificate or original export certificate of airworthiness on or
after the effective date of this AD: Before the accumulation of
15,000 total flight hours, or within 18 months after the issuance of
the original airworthiness certificate or original export
certificate of airworthiness, whichever occurs later.

Lubrication

    (i) Within the compliance times specified in paragraphs (i)(1),
(i)(2), (i)(3), and (i)(4) of this AD, as applicable: Lubricate the
ballnut and ballscrew in accordance with Part 3 of the
Accomplishment Instructions of Boeing Service Bulletin 777-27A0059,
Revision 2, dated January 15, 2009. Repeat the lubrication
thereafter at intervals not to exceed 2,000 flight hours or 12
months, whichever occurs first.
    (1) For airplanes identified in paragraph (f)(1) of this AD:
Before the accumulation of 15,000 total flight hours, or within 18
months after the effective date of this AD, whichever occurs later.
    (2) For airplanes identified in paragraph (f)(2) or (f)(4) of
this AD: Before the accumulation of 15,000 flight hours since the
replacement of the HSTA, or within 18 months after the effective
date of this AD, whichever occurs later.
    (3) For airplanes identified in paragraph (f)(3) of this AD:
Before the accumulation of 3,500 flight hours since the replacement
of the HSTA, or within 12 months after the effective date of this
AD, whichever occurs later.
    (4) For airplanes that have received an original airworthiness
certificate or original export certificate of airworthiness on or
after the effective date of this AD: Before the accumulation of
15,000 total flight hours, or within 18 months after the issuance of
the original airworthiness certificate or original export
certificate of airworthiness, whichever occurs later.

Credit for Actions Accomplished According to Earlier Issues of the
Service Bulletin

    (j) Actions performed prior to the effective date of this AD, in
accordance with Boeing Alert Service Bulletin 777-27A0059, dated
September 18, 2003; or Boeing Alert Service

Bulletin 777-27A0059, Revision 1, dated August 18, 2005; are
considered acceptable for compliance with the corresponding actions
specified in paragraphs (g), (h), and (i) of this AD.

Credit for Hard-Time Replacement of HSTA

    (k) Any HSTA overhauled within the compliance times specified in
paragraphs (g), (h), and (i) of this AD or before the effective date
of this AD--as part of a ``hard-time'' replacement program that
includes removal of the HSTA from the airplane and overhaul of the
stabilizer ballscrew in accordance with original equipment
manufacturer component maintenance manual instructions--meets the
intent of one detailed inspection, one freeplay inspection, and one
lubrication of the HSTA. Therefore, any such HSTA is considered
acceptable for compliance with the initial accomplishment of the
actions specified in paragraphs (g), (h), and (i) of this AD, and
repetitions of those actions may be determined from the performance
date of that overhaul.

Parts Installation

    (l) As of the effective date of this AD, no person may install,
on any airplane, a horizontal stabilizer trim actuator that is not
in a ``known serviceable condition'' as defined in Note 6, section
3.A., of Boeing Alert Service Bulletin 777-27A0059, Revision 2,
dated January 15, 2009; unless a detailed inspection, freeplay
measurement, and lubrication of that actuator are performed in
accordance with paragraphs (g), (h), and (i) of this AD, as
applicable.

Alternative Methods of Compliance (AMOCs)

    (m)(1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, ATTN: Kelly McGuckin, Aerospace Engineer, Systems and Equipment
Branch, ANM-130S, FAA, Seattle ACO, 1601 Lind Avenue, SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>;
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19.
    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your appropriate principal inspector (PI) in the FAA
Flight Standards District Office (FSDO), or lacking a PI, your local
FSDO.

Material Incorporated by Reference

    (n) You must use Boeing Service Bulletin 777-27A0059, Revision
2, dated January 15, 2009, to do the actions required by this AD,
unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone
206-544-5000, extension 1, fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.
    (3) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER> or<PHONE_NUMBER>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_ register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Renton, WA, on June 24, 2009.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. E9-15639 Filed 7-7-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 95 (Tuesday, May 17, 2011)]
[Notices]
[Pages 28483-28489]
[FR Doc No: 2011-11967]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64464; File No. SR-NYSEArca-2011-24]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To List and Trade Shares of the Following Under
NYSE Arca Equities Rule 8.200: ProShares Short DJ-UBS Natural Gas,
ProShares Ultra DJ-UBS Natural Gas and ProShares UltraShort DJ-UBS
Natural Gas

May 11, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on April 28, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') 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 Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following
under NYSE Arca Equities Rule 8.200: ProShares Short DJ-UBS Natural
Gas, ProShares Ultra DJ-UBS Natural Gas and ProShares UltraShort DJ-UBS
Natural Gas. The text of the proposed rule change is available at the
Exchange, the Commission's Public Reference Room, and http://www.nyse.com.

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
    NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading
of Trust Issued Receipts (``TIRs'') either by listing or pursuant to
unlisted trading privileges (``UTP'').\3\ The Exchange proposes to list
and trade shares (``Shares'') of the following pursuant to NYSE Arca
Equities Rule 8.200: ProShares Short DJ-UBS Natural Gas, ProShares
Ultra DJ-UBS Natural Gas and ProShares UltraShort DJ-UBS Natural Gas
(each a ``Fund'' and, collectively, the ``Funds'').\4\ Each of the
Funds is a series of the ProShares Trust II (``Trust''), a Delaware
statutory trust. ProShare Capital Management LLC (``Sponsor'') is the
Trust's Sponsor, and Wilmington Trust Company is the Trust's trustee.
Brown Brothers Harriman & Co. (``Administrator'') serves as the
administrator, custodian and transfer agent of the Funds. SEI
Investments Distribution Co. (``Distributor'') serves as distributor of
the Shares.
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    \3\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
TIRs that invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Commentary .02(b)(4) to NYSE Arca
Equities Rule 8.200, means any combination of investments, including
cash; securities; options on securities and indices; futures
contracts; options on futures contracts; forward contracts; equity
caps, collars and floors; and swap agreements.
    \4\ See Post-Effective Amendment No. 1 dated May 28, 2010 (File
No. 333-163511) and Post-Effective Amendment No. 4 dated April 13,
2011 (File No. 333-163511) to the Funds' Registration Statement on
Form S-3 (``Registration Statements''). The description of the Funds
and the Shares contained herein are based on the Registration
Statements.
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    The Exchange notes that the Commission has previously approved the
listing and trading of other series of the Commodities and Currency
Trust (now known as ProShares Trust II) both on the American Stock
Exchange LLC \5\ and on NYSE Arca pursuant to unlisted trading
privileges (``UTP''),\6\ and listing on NYSE Arca.\7\ In addition, the

Commission has approved other exchange-traded investment products
linked to the performance of underlying commodities.\8\ The Exchange
further notes that the shares of other ProShares UltraFunds and
UltraShort Funds based on various securities indexes have previously
been approved by the Commission.\9\
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    \5\ See Securities Exchange Act Release No. 58161 (July 15,
2008), 73 FR 42380 (July 21, 2008) (SR-Amex-2008-39) (``Amex
Proposal'').
    \6\ See Securities Exchange Act Release No. 58163 (July 15,
2008), 73 FR 42391 (July 21, 2008) (SR-NYSEArca-2008-73).
    \7\ See Securities Exchange Act Release No. 58457 (September 3,
2008), 73 FR 52711 (September 10, 2008) (SR-NYSEArca-2008-91). The
series of the Trust approved for Exchange listing by the Commission
included the Ultra DJ-AIG Commodity ProShares, UltraShort DJ-AIG
Commodity ProShares, Ultra DJ-AIG Agriculture ProShares, UltraShort
DJ-AIG Agriculture ProShares, Ultra DJ-AIG Crude Oil ProShares,
UltraShort DJ-AIG Crude Oil ProShares, Ultra Gold ProShares,
UltraShort Gold ProShares, Ultra Silver ProShares, UltraShort Silver
ProShares, Ultra Euro ProShares, UltraShort Euro ProShares, Ultra
Yen ProShares and UltraShort Yen ProShares. See also Securities
Exchange Act Release No. 58647 (September 25, 2008), 73 FR 57399
(October 2, 2008) (SR-NYSEArca-2008-99) (notice of filing and
immediate effectiveness relating to the names of the Trust and the
funds of the Trust, among other matters).
    \8\ See, e.g., Securities Exchange Act Release Nos. 57456 (March
7, 2008), 73 FR 13599 (March 13, 2008) (SR-NYSEArca-2007-91) (order
granting accelerated approval for NYSE Arca listing the iShares GS
Commodity Trusts); 59781 (April 17, 2009), 74 FR 18771 (April 24,
2009) (SR-NYSEArca-2009-28) (order granting accelerated approval for
NYSE Arca listing the ETFS Silver Trust); 59895 (May 8, 2009), 74 FR
22993 (May 15, 2009) (SR-NYSEArca-2009-40) (order granting
accelerated approval for NYSE Arca listing the ETFS Gold Trust);
61219 (December 22, 2009), 74 FR 68886 (December 29, 2009) (order
approving listing on NYSE Arca of the ETFS Platinum Trust); 61220
(December 22, 2009), 74 FR 68895 (December 29, 2009) (order
approving listing on NYSE Arca of the ETFS Palladium Trust).
    \9\ See Securities Exchange Act Release Nos. 52553 (October 3,
2005), 70 FR 59100 (October 11, 2005) (SR-Amex-2004-62) (approving
the listing and trading of shares of the xtraShares Trust); 54040
(June 23, 2006), 71 FR 37629 (June 30, 2006) (SR-Amex2006-41)
(approving the listing and trading of shares of the ProShares
Trust); 55117 (January 17, 2007), 72 FR 3442 (January 25, 2007) (SR-
Amex 2006-101) (approving the listing and trading of shares of the
ProShares Trust); 56592 (October 1, 2007), 72 FR 57364 (October 9,
2007) (SR-Amex-2007-60) (approving the listing and trading of 6
funds of the ProShares Trust based on international equity indexes);
and 56998 (December 19, 2007), 72 FR 73404 (December 27, 2007) (SR-
Amex-2007-104) (approving the listing and trading of shares of the
ProShares Trust).
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    According to the Registration Statements, the Funds seek daily
investment results (before fees and expenses) that correspond to the
inverse (opposite) of the daily performance, a multiple of the daily
performance or an inverse multiple of the daily performance of the
benchmark index for each of the Funds (the ``Benchmark'' or ``Index''),
the Dow Jones-UBS Natural Gas Sub-Index.\10\
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    \10\ CME Group Index Services LLC (``CME Indexes''), a joint
venture between Dow Jones & Company, Inc. (``Dow Jones'' or ``Index
Provider'') and CME Group Inc. (``CME Group''), and UBS Securities
LLC (``UBS'') have entered into a non-exclusive license agreement
providing for the use of the Index in connection with the Funds.
    UBS, a co-sponsor of the Index, is a registered broker-dealer
and has represented to the Exchange that it will: (1) Implement and
maintain procedures reasonably designed to prevent the use and
dissemination by relevant personnel of UBS, in violation of
applicable laws, rules, and regulations, of material non-public
information relating to changes in the composition or method of
computation or calculation of the Index; and (2) periodically review
the requirements of such procedures as they relate to certain
personnel of UBS directly responsible for such changes.
    CME Indexes, a co-sponsor of the Index, is not engaged in the
business of trading in commodities or securities. CME Group,
together with its subsidiaries, operates derivatives exchanges. CME
Group maintains a Code of Conduct applicable to all personnel that
prohibits disclosure of any confidential information obtained during
the course of one's employment and the use or disclosure of any
material non-public information relating to changes to the
composition of the Index or changes to the Index methodology in
violation of applicable laws, rules or regulations. For a
transitional period, certain Dow Jones employees are providing
index-related services to CME Indexes. Dow Jones also maintains a
Code of Conduct applicable to all personnel that prohibits
disclosure of any confidential information relating to changes to
the composition of the Index or changes to the Index methodology
obtained during the course of one's employment and the use of any
material non-public information in violation of applicable laws,
rules or regulations.
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    The Index is comprised of New York Mercantile Exchange (``NYMEX'')
Natural Gas futures contracts (``Natural Gas Futures Contracts'').\11\
The Index is intended to reflect the performance of natural gas as
measured by the performance of Natural Gas Futures Contracts, including
roll costs, without regard to income earned on cash positions. It rolls
(or sells its existing position prior to settlement while purchasing a
new position further from settlement) the component Natural Gas Futures
Contracts every other month as follows in the table below. The roll for
each Index component occurs over a period of five NYMEX business days.
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    \11\ Natural gas futures volume on NYMEX for 2009 and 2010
(through December 31, 2010) was 47,864,639 contracts and 64,350,673
contracts, respectively. As of December 31, 2010, NYMEX open
interest for all natural gas futures was 772,104 contracts, and the
approximate value of all outstanding contracts was $35,664,257,310
billion. Open interest as of December 31, 2010 for the near month
contract was 166,757 contracts and the near month contract value was
$7,345,645,850 ($4.405 per MMBtu and 10,000 MMBtu per contract). The
position accountability limits for all months is 12,000 contracts
and the total value of contracts if position accountability limits
were reached would be approximately $528,600,000 million (based on
the $4.405 contract price). As of December 31, 2010, open interest
in natural gas swaps cleared on the NYMEX was approximately
1,493,013 contracts, with an approximate value of $16,463,384,003
($4.411 per MMBtu and 2,500 MMBtu per contract). Natural gas futures
are also traded on ICE Futures Europe (``ICE'') and the European
Energy Exchange.

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              Month                  Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
--------------------------------------------------------------------------------------------------------------------------------------------------------
Component Natural Gas Contract..      Mar       Mar       May       May       Jul       Jul       Sep       Sep       Nov       Nov       Jan       Jan
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Funds will utilize Natural Gas Futures Contracts and, under
limited circumstances, swap agreements, as described below, to produce
economically ``inverse,'' ``leveraged,'' and ``inverse leveraged''
investment results for the respective Funds.\12\ For each dollar
invested in the Funds, each Fund will seek the requisite exposure in
Natural Gas Futures Contracts to pursue its respective investment
objective. The Sponsor does not intend to invest directly in any
commodity.
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    \12\ Terms relating to the Funds, the Shares and the Index
referred to, but not defined, herein are defined in the Registration
Statements.
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    According to the Registration Statements, each of the Funds uses
investment techniques that include the use of any one or a combination
of Natural Gas Futures Contracts, and may include swap agreements. The
Funds' investment techniques may involve a small investment relative to
the amount of investment exposure assumed and may result in losses
exceeding the amounts invested. Such techniques, particularly when used
to create leverage, may expose the Funds to potentially dramatic
changes (losses or gains) in the value of their investments and
imperfect correlation between the value of the investments and the
security or index.
    If ProShares Short DJ-UBS Natural Gas is successful in meeting its
objective, its value on a given day (before fees and expenses) should
gain approximately as much on a percentage basis as its Benchmark when
the Benchmark falls on a given day. Conversely, its value on a given
day (before fees and expenses) should lose approximately as much on a
percentage basis as the Benchmark when the Benchmark rises on a given
day. If the ProShares Ultra DJ-UBS Natural Gas Fund is successful in
meeting its objective, its value (before fees and expenses) should gain
approximately twice as much on a percentage basis as the Benchmark when
it rises on a given day. Conversely, its value (before fees and
expenses) should lose approximately twice as much on a percentage basis
as the Benchmark when it declines on a given day. If the

ProShares UltraShort DJ-UBS Natural Gas Fund is successful in meeting
its objective, its value (before fees and expenses) should gain
approximately twice as much on a percentage basis as the Benchmark when
it declines on a given day. Conversely, its value (before fees and
expenses) should lose approximately twice as much on a percentage basis
as the Benchmark when it rises on a given day.
    In seeking to achieve each Fund's daily investment objective, the
Sponsor uses a mathematical approach to investing. Using this approach,
the Sponsor determines the type, quantity and mix of investment
positions that the Sponsor believes in combination should produce daily
returns consistent with a Fund's objective. The Sponsor relies upon a
pre-determined model to generate orders that result in repositioning
each Fund's investments in accordance with its daily investment
objectives.
    A number of factors may affect a Fund's ability to achieve a high
degree of correlation with its Benchmark, and there can be no guarantee
that a Fund will achieve a high degree of correlation. While the Funds
do not expect that their daily returns will deviate adversely from
their respective daily investment objectives, several factors may
affect their ability to achieve this correlation. Among these factors
are a Fund's expenses, including fees, transaction costs and the cost
of the investment techniques employed by that Fund, bid-ask spreads, a
Fund's Share prices being rounded to the nearest cent, changes to a
Benchmark that are not disseminated in advance and the need to conform
a Fund's portfolio holdings to comply with investment restrictions or
policies or regulatory or tax law requirements.
    The Funds will obtain exposure to the Index through Natural Gas
Futures Contracts. Any futures contracts held by the Funds are expected
to be the Natural Gas Futures Contracts. To the extent that Dow Jones
alters the construction or composition of the Index to include natural
gas futures contracts that trade on a different exchange, the Funds may
so invest in such futures contracts.
    According to the Registration Statements, each Fund seeks to
achieve its investment objective by investing under normal market
conditions in Natural Gas Futures Contracts. In the event position
accountability rules are reached with respect to Natural Gas Futures
Contracts, the Sponsor may, in its commercially reasonable judgment,
cause the Funds to obtain exposure through swaps referencing the Index
or particular Natural Gas Futures Contracts, or invest in other futures
contracts or swaps not based on the particular Natural Gas Futures
Contracts if such instruments tend to exhibit trading prices or returns
that correlate with the Index or any Natural Gas Futures Contract and
will further the investment objective of such Fund.\13\ Each Fund may
also invest in swaps if the market for a specific futures contract
experiences emergencies (e.g., natural disaster, terrorist attack or an
act of God) or disruptions (e.g., a trading halt or a flash crash) that
prevent such Fund from obtaining the appropriate amount of investment
exposure to the affected Natural Gas Futures Contracts directly or to
other futures contracts.\14\
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    \13\ To the extent practicable, the Funds will invest in swaps
cleared through the facilities of a centralized clearing house.
    \14\ According to the Registration Statements, the Sponsor will
also attempt to mitigate the Funds' credit risk by transacting only
with large, well-capitalized institutions using measures designed to
determine the creditworthiness of a counterparty. The Sponsor will
take various steps to limit counterparty credit risk, as described
in the Registration Statements.
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    The Sponsor expects the Funds to have a statistical correlation
\15\ over time of -.95 or better (for ProShares Short DJ-UBS Natural
Gas and ProShares UltraShort DJ-UBS Natural Gas) and +.95 or better
(for ProShares Ultra DJ-UBS Natural Gas) when correlating the daily
return of a Fund's Net Asset Value (``NAV'') against the daily return
of its relevant Index or Benchmark.
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    \15\ Correlation is the strength of the relationship between (1)
the change in a Fund's NAV and (2) the change in the underlying
Index or Benchmark. The statistical measure of correlation is known
as the ``correlation coefficient.'' A correlation coefficient of +1
indicates a perfect positive correlation while a value of -1
indicates a perfect negative (inverse) correlation. A value of zero
would mean that there is no correlation between the two variables.
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    Each Fund may also invest in cash, cash equivalents and/or U.S.
Treasury Securities or other high credit quality short-term fixed-
income or similar securities (such as shares of money market funds,
bank deposits, bank money market accounts, certain variable rate-demand
notes and repurchase agreements collateralized by government
securities) that will serve as collateral for any futures contracts or
swap agreements held by the Funds.
Futures Contracts Held by the Funds
    All open futures contracts held by the Funds will be traded on the
NYMEX and will be calculated at their then current market value, based
upon the settlement price for that particular futures contract traded
on the date with respect to which NAV is being determined; provided
that, if a futures contract could not be liquidated on such day, due to
the operation of daily limits or other rules of the exchange upon which
that position is traded or otherwise, the Sponsor may in its sole
discretion choose to determine a fair value price as the basis for
determining the market value of such position for such day. The Sponsor
will, in good faith, establish an appropriate methodology for
determining such fair value prices, based on factors it deems relevant,
including the prices of other instruments that provide an indication of
the fair value price of the future contracts. For example, the Sponsor
expects that such fair value determinations would be based on publicly
traded options prices of Natural Gas Futures Contracts, if available
and relevant.
Net Asset Value
    According to the Registration Statements, the NAV of each Fund is
calculated by the value of its total assets including, but not limited
to, all cash and cash equivalents or other debt securities, less total
liabilities, each determined on the basis of generally accepted
accounting principles. In particular, the NAV includes any unrealized
profit or loss on open Natural Gas Futures Contracts and swap
agreements, and any other credit or debit accruing to a Fund, but
unpaid or not received.
    The NAV per Share of each Fund will be computed by dividing the
value of the net assets of such Fund (i.e., the value of its total
assets, less total liabilities) by its total number of Shares
outstanding. Expenses and fees are accrued daily and taken into account
for purposes of determining NAV. The NAV of each Fund is calculated by
the Administrator and is determined each business day as described in
the Registration Statements.
Creation and Redemption of Shares
    According to the Registration Statements, the Funds create and
redeem Shares from time to time, but only in one or more Creation
Units. A Creation Unit is a block of 50,000 Shares of a Fund. Creation
Units may be created or redeemed only by Authorized Participants, as
described in the Registration Statements. Except when aggregated in
Creation Units, the Shares are not redeemable securities. Authorized
Participants may pay a fixed and variable transaction fee in connection
with each order to create or redeem a Creation Unit. Authorized
Participants may sell the Shares included in the Creation Units they
purchase from the Funds to other investors. On any business day, an

Authorized Participant may place an order with the Distributor to
create one or more Creation Units. An order to create or redeem Shares
must be placed by 1:30 p.m. Eastern Time (``E.T.''). The total cash
payment required to create each Creation Unit is the NAV of 50,000
Shares of the applicable Fund on the purchase order date plus the
applicable transaction fee.
    According to the Registration Statements, the procedures by which
an Authorized Participant can redeem one or more Creation Units mirror
the procedures for the creation of Creation Units. On any business day,
an Authorized Participant may place an order with the Distributor to
redeem one or more Creation Units. Individual shareholders may not
redeem directly from a Fund.
    By placing a redemption order, an Authorized Participant agrees to
deliver the Creation Units to be redeemed through the Depository Trust
Company's book-entry system to the applicable Fund not later than noon
E.T., on the third business day immediately following the redemption
order date (T+3). The redemption proceeds from a Fund consist of the
cash redemption amount. The cash redemption amount is equal to the NAV
of the number of Creation Unit(s) of such Fund requested in the
Authorized Participant's redemption order as of the time of the
calculation of such Fund's NAV on the redemption order date, less
transaction fees, as described in the Registration Statements.
Availability of Information Regarding the Shares
    The Web site for the Funds (http://www.proshares.com) and/or the
Exchange, which are publicly accessible at no charge, will contain the
following information: (a) The current NAV per Share daily and the
prior business day's NAV per Share; (b) calculation of the premium or
discount of the closing market price against the NAV per Share; (c) the
Prospectus; and (d) other applicable quantitative information.
    The NAV per Share will be calculated and disseminated daily. One or
more major market data vendors will disseminate for the Funds on a
daily basis information with respect to the ``Indicative Fund Value''
(as discussed below), recent NAV per Share and Shares outstanding. The
Exchange will also make available on its Web site (http://www.nyse.com)
daily trading volume of the Shares, closing prices of the Shares, and
the NAV per Share. The intra-day futures prices, closing price and
settlement prices of the futures contracts held by the Funds are also
available from the NYMEX, automated quotation systems, published or
other public sources, or on-line information services such as Bloomberg
or Reuters. Quotation and last-sale information for the Shares will be
available via the Consolidated Tape Association (``CTA'') high-speed
line.
Portfolio Disclosure
    Each Fund's total portfolio composition will be disclosed on the
Funds' Web site or another relevant Web site as determined by the Trust
and/or the Exchange. The Trust will provide Web site disclosure of
portfolio holdings daily and will include, as applicable, the names and
notional value (in U.S. dollars) of Natural Gas Futures Contracts and
swap agreements, if any, cash equivalents and amount of cash held in
the portfolio of each Fund. This public Web site disclosure of the
portfolio composition of each Fund will occur at the same time as the
disclosure by the Sponsor of the portfolio composition to Authorized
Participants, so that all market participants are provided portfolio
composition information at the same time. Therefore, the same portfolio
information will be provided on the public Web site as well as in
electronic files provided to Authorized Participants. Accordingly, each
investor will have access to the current portfolio composition of each
Fund through the Funds' Web site, and/or at the Exchange's Web site.
Availability of Information About the Benchmarks
    The daily closing Index level and the percentage change in the
daily closing Index level for the Index will be publicly available on
various Web sites, e.g., http://www.bloomberg.com. The Index level will
be disseminated by one or more major market data vendors and will be
updated at least every 15 seconds during the Exchange's Core Trading
Session, except for that period after the end of the NYMEX Natural Gas
pit trading session at 2:30 p.m. E.T., at which point the Index value
will be static. Data regarding the Index is also available from the
Index Provider to subscribers. In addition, data is available for the
Natural Gas Futures Contracts in the Index and for other futures
contracts from those futures exchanges that list and trade futures
contracts on such commodity. Several independent data vendors also
package and disseminate index data in various value-added formats
(including vendors displaying both Index constituents and Index levels
and vendors displaying Index levels only).
Dissemination of Net Asset Value and Indicative Fund Value
    The NAV for the Funds' Shares will be calculated by the
Administrator once a day and will be disseminated daily to all market
participants. The NAV calculation time for the Funds is 2:30 p.m.
E.T.\16\ The Exchange will obtain a representation (prior to listing of
the Funds) from the Trust that the NAV per Share will be calculated
daily and made available to all market participants at the same time.
In addition, the Sponsor will cause to be made available on a daily
basis the total payment required to create each Creation Unit of the
applicable Fund on the purchase order date in connection with the
issuance of the respective Shares.
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    \16\ The Commission previously has approved a commodity-based
trust security for which the NAV is calculated earlier than 4 p.m.
E.T. See, e.g., Securities Exchange Act Release Nos. 50603 (October
28, 2004), 69 FR 64614 (November 5, 2004) (SR-NYSE-2004-22) (order
approving listing of streetTRACKS Gold Trust; and 61219 (December
22, 2009), 74 FR 68886 (December 29, 2009) (SR-NYSEArca-2009-95)
(order approving listing of ETFS Platinum Trust).
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    In order to provide updated information relating to each Fund for
use by investors, professionals and persons wishing to create or redeem
the Shares, one or more major market data vendors will disseminate an
updated Indicative Fund Value (``IFV''). The IFV will be disseminated
on a per-Share basis at least every 15 seconds during Exchange's Core
Trading Session trading hours of 9:30 a.m. to 4 p.m. E.T. The IFV will
be calculated based on the cash required for creations and redemptions
for a Fund (prior calculated NAV) adjusted to reflect the price changes
of such Fund's holdings.
    The value of a Share may be influenced by non-concurrent trading
hours between NYSE Arca and NYMEX when the Shares are traded on NYSE
Arca after normal trading hours of NYMEX. The IFV will be updated
during the NYSE Arca Core Trading Session when Natural Gas Futures
Contracts held by the Funds are traded. However, a static IFV will be
disseminated between the close of trading of Natural Gas Futures
Contracts and the close of the NYSE Arca Core Trading Session.
Criteria for Initial and Continued Listing
    The Funds will be subject to the criteria in NYSE Arca Equity Rule
8.200 and Commentary .02 thereto for initial and continued listing of
the Shares.
    The minimum number of Shares for each Fund to be outstanding at the
start of trading will be 100,000 Shares. The Exchange believes that
this anticipated

minimum number of Shares for each Fund to be outstanding at the start
of trading is sufficient to provide adequate market liquidity and to
further the objectives of the Funds. The Exchange represents that, for
the initial and continued listing of the Shares, the Funds will be in
compliance with NYSE Arca Equities Rule 5.3 and Rule 10A-3 under the
Act.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. E.T. The Exchange has
appropriate rules to facilitate transactions in the Shares during all
trading sessions. As provided in NYSE Arca Equities Rule 7.6,
Commentary .03, the minimum price variation (``MPV'') for quoting and
entry of orders in equity securities traded on the NYSE Arca
Marketplace is $0.01, with the exception of securities that are priced
less than $1.00 for which the MPV for order entry is $0.0001.
    The trading of the Shares will be subject to NYSE Arca Equities
Rule 8.200, Commentary .02(e), which sets forth certain restrictions on
ETP Holders acting as registered Market Makers in Trust Issued Receipts
to facilitate surveillance. See ``Surveillance'' below for more
information.
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. Trading may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the underlying futures contracts, or
(2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present. In addition,
trading in Shares will be subject to trading halts caused by
extraordinary market volatility pursuant to the Exchange's ``circuit
breaker'' rule \17\ or by the halt or suspension of trading of the
underlying futures contracts.
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    \17\ See NYSE Arca Equities Rule 7.12.
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    The Exchange represents that the Exchange may halt trading during
the day in which an interruption to the dissemination of the Index
value, IFV or the value of the underlying futures contracts occurs. If
the interruption to the dissemination of the Index value, IFV or the
value of the underlying futures contracts persists past the trading day
in which it occurred, the Exchange will halt trading no later than the
beginning of the trading day following the interruption. In addition,
if the Exchange becomes aware that the NAV with respect to the Shares
is not disseminated to all market participants at the same time, it
will halt trading in the Shares until such time as the NAV is available
to all market participants.
Suitability
    Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to
Accounts) provides that an ETP Holder, before recommending a
transaction in any security, must have reasonable grounds to believe
that the recommendation is suitable for the customer based on any facts
disclosed by the customer as to its other security holdings and as to
its financial situation and needs. Further, the rule provides, with a
limited exception, that prior to the execution of a transaction
recommended to a non-institutional customer, the ETP Holder must make
reasonable efforts to obtain information concerning the customer's
financial status, tax status, investment objectives, and any other
information that such ETP Holder believes would be useful to make a
recommendation.
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin. Specifically, ETP Holders will be
reminded in the Information Bulletin that, in recommending transactions
in the Shares, they must have a reasonable basis to believe that (1)
the recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial situation,
needs, and any other information known by such member, and (2) the
customer can evaluate the special characteristics, and is able to bear
the financial risks, of an investment in the Shares. In connection with
the suitability obligation, the Information Bulletin will also provide
that members must make reasonable efforts to obtain the following
information: (1) The customer's financial status; (2) the customer's
tax status; (3) the customer's investment objectives; and (4) such
other information used or considered to be reasonable by such member or
registered representative in making recommendations to the customer.
    In addition, FINRA has implemented increased sales practice and
customer margin requirements for FINRA members applicable to leveraged
ETFs (which include the Shares) and options on leveraged ETFs, as
described in FINRA Regulatory Notices 09-31 (June 2009), 09-53 (August
2009) and 09-65 (November 2009) (``FINRA Regulatory Notices''). ETP
Holders that carry customer accounts will be required to follow the
FINRA guidance set forth in these notices.
    As disclosed in the Registration Statement, the Funds seek
leveraged, inverse, or leveraged inverse returns on a daily basis, and
the Funds do not seek to achieve their stated investment objective over
a period of time greater than one day because mathematical compounding
prevents the Funds from perfectly achieving such results. Accordingly,
results over periods of time greater than one day typically will not be
a leveraged multiple (+200%), the inverse (-100%) or a leveraged
inverse multiple (-200%) of the period return of the Benchmark and may
differ significantly from these multiples. The Exchange's Information
Bulletin regarding the Funds, described below, will provide information
regarding the suitability of an investment in the Shares, as stated in
the Registration Statement.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, including Trust Issued
Receipts, to monitor trading in the Shares. The Exchange represents
that these procedures are adequate to properly monitor Exchange trading
of the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable Federal securities laws.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange can obtain market surveillance information, including
customer identity information, with respect to transactions occurring
on the NYMEX, which is a member of the Intermarket Surveillance Group
(``ISG''). A list of ISG members is available at http://www.isgportal.org.\18\
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    \18\ The Exchange may obtain information from futures exchanges
with which the Exchange has entered into a surveillance sharing
agreement or that are ISG members. The Exchange notes that not all
components of the portfolio for the Funds may trade on markets that
are members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.

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    In addition, with respect to the Funds' futures contracts traded on
exchanges, not more than 10% of the weight of such futures contracts in
the aggregate shall consist of components whose principal trading
market is not a member of ISG or is a market with which the Exchange
does not have a comprehensive surveillance sharing agreement.
    The Exchange also has a general policy prohibiting the distribution
of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders in an Information Bulletin of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Bulletin will discuss the following: (1) The risks involved
in trading the Shares during the Opening and Late Trading Sessions when
an updated IFV will not be calculated or publicly disseminated; (2) the
procedures for purchases and redemptions of Shares in Creation Baskets
and Redemption Baskets (and that Shares are not individually
redeemable); (3) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (4) how
information regarding the IFV is disseminated; (5) a static IFV will be
disseminated between the close of trading Natural Gas Futures Contracts
on the NYMEX and the close of the NYSE Arca Core Trading Session; (6)
the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (7) trading information.
    In addition, the Information Bulletin will advise ETP Holders,
prior to the commencement of trading, of the prospectus delivery
requirements applicable to the Funds. The Exchange notes that investors
purchasing Shares directly from the Funds will receive a prospectus.
ETP Holders purchasing Shares from the Funds for resale to investors
will deliver a prospectus to such investors. The Information Bulletin
will reference the FINRA Regulatory Notices regarding sales practice
and customer margin requirements for FINRA members applicable to
leveraged ETFs and options on leveraged ETFs. The Information Bulletin
will also discuss any exemptive, no-action and interpretive relief
granted by the Commission from any rules under the Act.
    In addition, the Information Bulletin will reference that the Funds
are subject to various fees and expenses described in the Registration
Statements. The Information Bulletin will also reference that the
Commodity Futures Trading Commission has regulatory jurisdiction over
the trading of futures contracts traded on U.S. markets.
    The Information Bulletin will also disclose the trading hours of
the Shares of the Funds. The Bulletin will disclose that information
about the Shares of the Funds is publicly available on the Funds' Web
site.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \19\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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    \19\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule 8.200
and Commentary .02 thereto. The Exchange has in place surveillance
procedures that are adequate to properly monitor trading in the Shares
in all trading sessions and to deter and detect violations of Exchange
rules and applicable Federal securities laws. The Exchange may obtain
information via ISG from other exchanges that are members of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement. Any futures contracts held by the Funds are expected
to be the Natural Gas Futures Contracts, which are traded on NYMEX, an
ISG member. The intra-day futures prices, closing price and settlement
prices of the futures contracts held by the Funds are also available
from the NYMEX, automated quotation systems, published or other public
sources, or on-line information services. Quotation and last-sale
information for the Shares will be available via CTA. Each Fund's total
portfolio composition will be disclosed on the Funds' Web site or
another relevant Web site.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information is publicly available regarding the
Funds and the Shares, thereby promoting market transparency. The Index
level will be disseminated by one or more major market data vendors and
will be updated at least every 15 seconds during the Exchange's Core
Trading Session, except for that period after the end of the NYMEX
Natural Gas pit trading session at 2:30 p.m. E.T., at which point the
Index value will be static. The NAV per Share will be calculated daily
and made available to all market participants at the same time. One or
more major market data vendors will disseminate for the Funds on a
daily basis information with respect to the IFV, recent NAV per Share
and Shares outstanding. Trading in Shares of the Funds will be halted
if the circuit breaker parameters in NYSE Arca Equities Rule 7.12 have
been reached or because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.
Moreover, prior to the commencement of trading, the Exchange will
inform its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares. The
Information Bulletin will also reference the FINRA Regulatory Notices
regarding sales practice and customer margin requirements for FINRA
members applicable to leveraged ETFs and options on leveraged ETFs.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Funds' holdings,
IFV, and quotation and last-sale information for the Shares.

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

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

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-24 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-NYSEArca-2011-24. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of the
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-
NYSEArca-2011-24 and should be submitted on or before June 7, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-11967 Filed 5-16-11; 8:45 am]
BILLING CODE 8011-01-P