[Federal Register Volume 77, Number 54 (Tuesday, March 20, 2012)]
[Proposed Rules]
[Pages 16188-16191]
[FR Doc No: 2012-6628]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-0268; Directorate Identifier 2011-NM-129-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain The Boeing Company Model 737-600, -700, -700C, -800, and -900
series airplanes. This proposed AD was prompted by reports of
incorrectly installed bolts common to the rear spar termination fitting
on the horizontal stabilizer. This proposed AD would require inspecting
for a serial number that starts with the letters ``SAIC'' on the left-
and right-side horizontal stabilizer identification plate; a detailed
inspection for correct bolt protrusion and chamfer of the termination
fitting bolts of the horizontal stabilizer rear spar, if necessary;
inspecting to determine if certain bolts are installed, if necessary,
and related investigative and corrective actions if necessary. This
proposed AD would also require

repetitive inspections for cracking of the termination fitting at
certain bolt locations, and repair if necessary. We are proposing this
AD to prevent loss of structural integrity of the horizontal stabilizer
attachment and loss of control of the airplane.

DATES: We must receive comments on this proposed AD by May 4, 2012.

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 http://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 proposed 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>; email<EMAIL_ADDRESS>
Internet https://www.myboeingfleet.com. You may review copies of the
referenced 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>.

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 proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Office (phone:<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

FOR FURTHER INFORMATION CONTACT: Nancy Marsh, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-
917-6440; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite 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-2012-0268;
Directorate Identifier 2011-NM-129-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    We received reports of incorrectly installed bolts common to the
rear spar terminal fitting of the horizontal stabilizer. During
manufacturing, the termination fitting bolts were installed without
proper thread protrusion due to missing washers. This resulted in an
unclamped condition between the horizontal stabilizer rear spar and the
termination fitting. Loose bolts attaching the horizontal stabilizer
termination fitting can lead to premature cracking of the fitting. This
condition, if not corrected, could result in the loss of structural
integrity of the horizontal stabilizer attachment and loss of control
of the airplane.

Relevant Service Information

    We reviewed Boeing Service Bulletin 737-55-1090, dated March 30,
2011. This service information describes procedures for inspecting for
a serial number that starts with the letters ``SAIC'' on the left- and
right-side horizontal stabilizer identification plate; a detailed
inspection for correct bolt protrusion and chamfer of the termination
fitting fasteners of the horizontal stabilizer rear spar, if necessary;
an inspection to determine if certain bolts are installed, if
necessary, and related investigative and corrective actions if
necessary. This service information also describes procedures for
repetitive high frequency eddy current (HFEC) and ultrasonic (UT)
inspections for cracking of the termination fitting at certain bolt
locations, and repair if necessary.
    The related investigative action is a detailed inspection for
damage (including chafing, galling, nicks, gouges, and exposed bare
metal) of the bolt shank. The corrective action includes installing new
hardware, replacing the bolt with a new bolt, and contacting The Boeing
Company for repair instructions and doing the repair.
    The initial compliance time for certain airplanes is before 32,000
total flight cycles or within 12 months after the original issue date
of the service information. For certain other airplanes, the initial
compliance time is before 36,000 total flight cycles or within 12
months after the original issue date of the service information.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of these same type
designs.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in the service information described previously, except as discussed
under ``Differences Between the Proposed AD and the Service
Information.''

Differences Between the Proposed AD and the Service Information

    Boeing Service Bulletin 737-55-1090, dated March 30, 2011, does not
specify doing an inspection for bolt type. This proposed AD would
require inspection for correct bolt type. If incorrect bolt type is
found, paragraph (k) of this proposed AD would require repair using a
method approved in accordance with paragraph (l).
    Figure 1 of Boeing Service Bulletin 737-55-1090, dated March 30,
2011, contains an error. The illustration of an identification plate
that points to the location of a part number should point to the serial
number and the example ``SAIC 1234'' should be located on the serial
number line. This proposed AD requires an inspection for an
identification plate with a serial number that starts with the letters
``SAIC.''
    Boeing Service Bulletin 737-55-1090, dated March 30, 2011,
specifies to contact the manufacturer for instructions on how to repair
certain conditions, but this proposed AD would require repairing those
conditions in one of the following ways:
     In accordance with a method that we approve; or
     Using data that meet the certification basis of the
airplane, and that have been approved by the Boeing Commercial
Airplanes Organization Designation Authorization (ODA) whom

we have authorized to make those findings.

Costs of Compliance

    We estimate that this proposed AD affects 373 airplanes of U.S.
registry.
    We estimate the following costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Inspection............................  1 work-hour x $85 per                 $0             $85         $31,705
                                         hour = $85 per
                                         inspection cycle.
Replacement of bolts..................  17 work-hours x $85 per            1,530           2,975       1,109,675
                                         hour = $1,445.
----------------------------------------------------------------------------------------------------------------

    We have received no definitive data that would enable us to provide
a cost estimate for the on-condition actions (contacting Boeing and
repairing cracks or damage) specified in this AD.
    According to the manufacturer, some of the costs of this proposed
AD may be covered under warranty, thereby reducing the cost impact on
affected individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

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 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) Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) 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

    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]

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

The Boeing Company: Docket No. FAA-2012-0268; Directorate Identifier
2011-NM-129-AD.

(a) Comments Due Date

    We must receive comments by May 4, 2012.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 737-600, -700, -
700C, -800, and -900 series airplanes, certificated in any category,
as identified in Boeing Service Bulletin 737-55-1090, dated March
30, 2011.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 55: Stabilizer.

(e) Unsafe Condition

    This AD was prompted by reports of incorrectly installed bolts
common to the rear spar termination fitting of the horizontal
stabilizer. We are issuing this AD to prevent loss of structural
integrity of the horizontal stabilizer attachment and loss of
control of the airplane.

(f) Compliance

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

(g) Inspecting the Horizontal Stabilizer and Corrective Actions

    Except as provided by paragraph (i) of this AD, at the
applicable times specified in paragraph 1.E., ``Compliance,'' of
Boeing Service Bulletin 737-55-1090, dated March 30, 2011: Do an
inspection for a serial number that starts with the letters ``SAIC''
on the identification plates of the left- and right-side horizontal
stabilizers, in accordance with the Accomplishment Instructions of
Boeing Service Bulletin 737-55-1090, dated March 30, 2011.
    (1) If a serial number starting with the letters ``SAIC'' is
found on a horizontal stabilizer identification plate: Except as
provided by paragraph (i) of this AD, at the applicable times
specified in paragraph 1.E., ``Compliance,'' of Boeing Service
Bulletin 737-55-1090, dated March 30, 2011, do a detailed inspection
for correct bolt protrusion and correct chamfer of the termination
fitting bolts of the horizontal stabilizer rear spar, in accordance
with the Accomplishment Instructions of Boeing Service Bulletin 737-
55-1090, dated March 30, 2011. Concurrently with the detailed
inspection, inspect to determine if bolts other than part number (P/
N) BACB30US14K() or BACB30US16K(), as applicable, are installed.
Before further flight, do all applicable related investigative and
corrective actions, in accordance with the Accomplishment
Instructions of Boeing Service Bulletin 737-55-1090, dated March 30,
2011.
    (2) If no SAIC serial number is found, no further action is
required by this AD.

(h) High Frequency Eddy Current and Ultrasonic Inspections of
Termination Fitting and Repair

    For any location where a new bolt having a P/N BACB30US14K() is
installed due to damage found during any inspection required by
paragraph (g) of this AD: Except as provided by paragraph (i) of
this AD, at the times specified in paragraph 1.E.,

``Compliance,'' of Boeing Service Bulletin 737-55-1090, dated March
30, 2011, do HFEC and ultrasonic inspections for cracking of the
forward and aft sides of the termination fitting, in accordance with
the Accomplishment Instructions of Boeing Service Bulletin 737-55-
1090, dated March 30, 2011. If any crack is found in any termination
fitting: Before further flight, repair in accordance with the
procedures specified in paragraph (l) of this AD. Repeat the HFEC
and ultrasonic inspections thereafter at intervals not to exceed
3,500 flight cycles.

(i) Exception to Compliance Time

    Where Boeing Service Bulletin 737-55-1090, dated March 30, 2011,
specifies a compliance time ``after the original issue date on the
service bulletin,'' this AD requires compliance within the specified
compliance time after the effective date of this AD.

(j) Exception to Service Bulletin

    Where Figure 1 of Boeing Service Bulletin 737-55-1090, dated
March 30, 2011, points to the location of a part number rather than
the serial number, this AD requires an inspection for an
identification plate with a serial number that starts with the
letters ``SAIC.''

(k) Exceptions to Corrective Actions

    If, during any inspection required by paragraphs (g) and (h) of
this AD, any bolts other than P/N BACB30US14K() or BACB30US16K(), as
applicable, are found: Before further flight, repair using a method
approved in accordance with the procedures specified in paragraph
(l) of this AD.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO),
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 ACO, send it to the
attention of the person identified in the Related Information
section of this AD. Information may be emailed to<EMAIL_ADDRESS>    (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.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD if it is approved by the
Boeing Commercial Airplanes Organization Designation Authorization
(ODA) that has been authorized by the Manager, Seattle ACO to make
those findings. For a repair method to be approved, the repair must
meet the certification basis of the airplane, and the approval must
specifically refer to this AD.

(m) Related Information

    (1) For more information about this AD, contact Nancy Marsh,
Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft
Certification Office (ACO), 1601 Lind Avenue SW., Renton, Washington
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    (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>; email
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com. You
may review copies of the referenced 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>.

    Issued in Renton, Washington, on March 8, 2012.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2012-6628 Filed 3-19-12; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Page 51045]
[FR Doc No: 2018-22018]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

Hazardous Materials: Notice of Applications for Special Permits

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: Notice of actions on special permit applications.

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SUMMARY: In accordance with the procedures governing the application
for, and the processing of, special permits from the Department of
Transportation's Hazardous Material Regulations, notice is hereby given
that the Office of Hazardous Materials Safety has received the
application described herein. Each mode of transportation for which a
particular special permit is requested is indicated by a number in the
``Nature of Application'' portion of the table below as follows: 1--
Motor vehicle, 2--Rail freight, 3--Cargo vessel, 4--Cargo aircraft
only, 5--Passenger-carrying aircraft.

DATES: Comments must be received on or before November 9, 2018.

ADDRESSES: Record Center, Pipeline and Hazardous Materials Safety
Administration U.S. Department of Transportation Washington, DC 20590.
    Comments should refer to the application number and be submitted in
triplicate. If confirmation of receipt of comments is desired, include
a self-addressed stamped postcard showing the special permit number.

FOR FURTHER INFORMATION CONTACT: Ryan Paquet, Director, Office of
Hazardous Materials Approvals and Permits Division, Pipeline and
Hazardous Materials Safety Administration, U.S. Department of
Transportation, East Building, PHH-30, 1200 New Jersey Avenue
Southeast, Washington, DC 20590-0001,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Copies of the applications are available for
inspection in the Records Center, East Building, PHH-30, 1200 New
Jersey Avenue Southeast, Washington DC or at http://regulations.gov.
    This notice of receipt of applications for special permit is
published in accordance with part 107 of the Federal hazardous
materials transportation law (49 U.S.C. 5117(b); 49 CFR 1.53(b)).

    Issued in Washington, DC, on October 2, 2018.
Donald P. Burger,
Chief, General Approvals and Permits Branch.

                                              Special Permits Data
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                                                                                Nature of the special permits
       Application No.                 Applicant          Regulation(s)  affected             thereof
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10867-M......................  MEGGITT SAFETY SYSTEMS,   173.302a(a).............  To modify the special permit
                                INC.                                                to update current revision
                                                                                letters of cylinder
                                                                                drawings. (modes 1,2,4,5).
11670-M......................  SCHLUMBERGER TECHNOLOGY   173.301(f), 173.302a,     To modify the special permit
                                CORP.                     173.201(c), 173.202(c),   to authorize manufacture,
                                                          173.203(c).               mark and sell of the
                                                                                approved packaging. (modes
                                                                                1,2,3,4).
15507-M......................  YIWU JINYU MACHINERY      173.304(a), 173.304(d)..  To modify the special permit
                                FACTORY.                                            to authorize additional
                                                                                hazmat and to allow an
                                                                                increase in burst pressures.
                                                                                (modes 1,2,3,4).
20292-M......................  NUANCE SYSTEMS LLC......  173.181, 173.302(a),      To authorize a new design of
                                                          173.187, 173.201,         the approved cylinders which
                                                          173.211.                  will operate at higher
                                                                                temperatures and authorize
                                                                                additional new cylinders.
                                                                                (modes 1,2,3).
6769-M.......................  CHEMOURS COMPANY FC LLC.  173.314, 173.315........  To modify the special permit
                                                                                to authorize additional tank
                                                                                cars as approved packaging.
                                                                                (modes 1,2).
10788-M......................  BEVIN BROS MANUFACTURING  173.302(a)..............  To modify the special permit
                                COMPANY.                                            to authorize brazing or
                                                                                welding of foot ring
                                                                                attachments to cylinders
                                                                                proceeding pressure testing.
                                                                                (modes 1,2,3,4,5).
11827-M......................  FUJIFILM ELECTRONIC       180.605(c)(1),            To modify the special permit
                                MATERIALS U.S.A., INC.    180.352(b)(3).            to authorize an additional
                                                                                hazardous material. (as
                                                                                authorized by the HMR).
11911-M......................  TRANSFER FLOW, INC......  177.834(h),               To modify the special permit
                                                          178.700(c)(1).            to authorize addition of
                                                                                better sealing refueling
                                                                                caps. (mode 1).
11970-M......................  UNIVATION TECHNOLOGIES,   173.242.................  To modify the special permit
                                LLC.                                                to authorize the pressure
                                                                                test being done
                                                                                pneumatically using
                                                                                nitrogen. (modes 1,2,3).
12124-M......................  W. R. GRACE & CO.--CONN.  173.242, 173.244........  To modify the special permit
                                                                                to authorize cargo vessel as
                                                                                an approved mode of
                                                                                transportation. modes 1,3).
13220-M......................  ENTEGRIS, INC...........  173.302(a), 173.302c(a).  To modify the special permit
                                                                                to include drawings and
                                                                                specifications for cylinders
                                                                                that have regional markings
                                                                                (e.g. European and China
                                                                                Markings) necessary for
                                                                                export into these regions.
                                                                                (modes 1,2,3).
14424-M......................  CHART, INC..............  172.301(c), 177.834(h)..  To update the permit with the
                                                                                most current tank drawings.
                                                                                (mode 1).
20288-M......................  DEPARTMENT OF DEFENSE     175.10(a)(18)(ii).......  To modify the special permit
                                (MILITARY SURFACE                                   to authorize civilian as
                                DEPLOYMENT &                                        well as military personnel
                                DISTRIBUTION COMMAND).                              to carry on 2 CUPS units.
                                                                                (mode 5).
20351-M......................  ROEDER CARTAGE COMPANY,   180.407(c), 180.407(c),   To modify the special permit
                                INCORPORATED.             180.407(e), 180.407(f).   to remove the requirement
                                                                                for periodic internal visual
                                                                                inspections and to authorize
                                                                                an additional tank dedicated
                                                                                to acetonitrile
                                                                                transportation. (mode 1).
20383-M......................  SACRAMENTO EXECUTIVE      172.101(j), 172.200,      To modify the special permit
                                HELICOPTERS, INC.         172.301(c),               to authorize additional 2.1
                                                          173.315(j)(1)(i).         and 2.2 hazmat items. (mode
                                                                                4).
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2018-22018 Filed 10-9-18; 8:45 am]
 BILLING CODE 4909-60-P


[Federal Register Volume 86, Number 26 (Wednesday, February 10, 2021)]
[Notices]
[Pages 8953-8955]
[FR Doc No: 2021-02712]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91063; File No. SR-DTC-2020-019]

Self-Regulatory Organizations; The Depository Trust Company;
Order Approving a Proposed Rule Change To Update the Distributions
Service Guide

February 4, 2021.

I. Introduction

    On December 21, 2020, The Depository Trust Company (``DTC'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ proposed rule change SR-DTC-2020-019.
The proposed rule change was published for comment in the Federal
Register on December 29, 2020.\3\ The Commission did not receive any
comment letters on the proposed rule change. For the reasons discussed
below, the Commission is approving the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 3490747 (December 21,
2020), 85 FR 85765 (December 29, 2020) (File No. SR-DTC-2020-019)
(``Notice'').
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II. Description of the Proposed Rule Change

    DTC proposes to amend its Corporate Actions Distributions Service
Guide (``Distributions Guide'') \4\ to (1) more clearly explain the
interim accounting process, generally, (2) provide an explanation for
the interim accounting process for a security being delisted, (3)
change how DTC manages interim accounting when an ex-date \5\ is
changed due to an unscheduled closure of a stock exchange, (4) remove
the statements that DTC's U.S. Tax Withholding (``UTW'') service is
available to subaccounts of U.S. Participants and that users of the UTW
service must enter into a Withholding Agent Agreement, and (v) make
certain conforming and technical changes, including updating the
copyright date, each described in greater detail below.
---------------------------------------------------------------------------

    \4\ DTC's Distributions Guide is available at http://
www.dtcc.com/~/media/Files/Downloads/legal/service-guides/
Service%20Guide%20Distributions.pdf. Capitalized terms not defined
herein are defined in the Rules, By-Laws, and Organization
Certification of DTC (``Rules''), available at http://www.dtcc.com/
~/media/Files/Downloads/legal/rules/dtc_rules.pdf.
    \5\ The ``ex-date'' or ``ex-dividend date'' is the day the stock
starts trading without the value of an already-declared dividend.
---------------------------------------------------------------------------

A. Changes to the General Description of Interim Accounting

    Interim accounting is an important part of the entitlements and
allocations process for distributions for DTC. The interim period (also
referred to in the Distributions Guide as the due bill period) is the
period during which a settling trade has due bills attached to it. A
due bill is an indication of a seller's obligation to deliver a pending
distribution (e.g., cash dividend, stock dividend, interest payment,
etc.) to the buyer in a securities transaction. For distributions that
are the subject of a due bill, the interim period extends from the
Interim Accounting Start Date (i.e., record date +1) \6\ up to the Due
Bill Redemption Date (which is typically ex-date +1 for equities and
payable date -1 for debt).\7\
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    \6\ The record date is the cut-off date used to determine which
shareholders are entitled to a corporate dividend. Typically, the
ex-date is the day before the record date.
    \7\ The payable date refers to the date that any declared stock
dividends are due to be paid out. Investors who purchased their
stock before the ex-date are eligible to receive dividends on the
payable date.
---------------------------------------------------------------------------

    Normally, the registered holder of a security on the close of
business on the record date is entitled to the distribution. There are
times, however, when that is not the case. Such times generally fall
into two categories. First, for equity issues, there are times when the
listed exchange will declare an ex-date that is not one business day
prior to the record date (e.g., an ex-date that equals payable date
+1). At such times, a buyer is entitled to the distribution when the
registered holder of an equity issue sells the security prior to the
ex-date. Second, for most bonds, the buyer of the security is entitled
to the interest payment (i.e., the distribution) on trades that settle
up to and including the day before the payable date, even though the
buyer is not the record date holder.
    With DTC's interim accounting process, during a due bill period,
DTC tracks all settled activity, where the receiver (typically a buyer)
is entitled to a distribution, and adjusts Participants' record-date
positions, crediting the receiver and debiting the deliverer (typically
a seller) the distribution amount.\8\ DTC states that this process
helps ensure accurate payment on the payable date and eliminate time-
consuming and costly paper processing.\9\
---------------------------------------------------------------------------

    \8\ The physical movement of securities (such as, deposits,
withdrawals-by-transfer, and certificates-on-demand) are not
transactions that are included in the interim accounting process;
thus, they do not result in adjustments between Participants. See
Notice, 85 FR at 85766.
    \9\ Id.
---------------------------------------------------------------------------

    DTC proposes to amend the Distributions Guide to provide greater
clarity and transparency regarding the foregoing description of the
interim accounting process.

B. Interim Accounting on a Security Being Delisted

    In certain scenarios, listed exchanges might not announce an ex-
date that is on or after the date the corresponding security is being
delisted. In such instances, if the listed exchange does not declare an
ex-date, but instead provides direction that trades in a particular
security up to a specified date include the distribution, then DTC
captures interim accounting based on the exchange's direction.\10\ The
current Distributions Guide does not clearly describe the foregoing
process. DTC proposes to update the Distributions Guide to clearly
describe the process. DTC also proposes to update the copyright date of
the Distributions Guide.
---------------------------------------------------------------------------

    \10\ DTC states that on the rare occasions, a corporate action
event (e.g., a merger) would occur during an interim period that
would require DTC to make special processing arrangements. See id.
---------------------------------------------------------------------------

C. Interim Accounting for an Ex-Date Change Due to Unscheduled Closing
of a Stock Exchange

    Occasionally, there is an unscheduled closing of one or more stock
exchanges (due to, e.g., a national day of mourning, an event causing
significant market disruption or regional impact, etc.). During an
unscheduled closing, a listed exchange typically moves ex-dates that
were scheduled for that date to the next open business day, which is
usually the record date. Such a move is necessary because ex-dates must
occur on a business day that the listed exchange is open.\11\
---------------------------------------------------------------------------

    \11\ See, e.g., FINRA Rule 11140--Transactions in Securities
``Ex-Dividend,'' ``Ex-Rights'' or ``Ex-Warrants'' available at
https://www.finra.org/rules-guidance/rulebooks/finra-rules/11140.
---------------------------------------------------------------------------

    Currently, when an exchange moves ex-dates due to unscheduled
closing of the exchange, DTC continues to apply the interim accounting
process described above.\12\ According to DTC, when there is an
unscheduled closure, the intent of the exchange is for the final day of
trading with a due bill to fall on the business day prior to the
unscheduled closure, so that there would be no executed trades in the
security on the day of closure.\13\ However, because this scenario
causes ex-dates and record dates to coincide,

and because the interim accounting process is based on a two-day
settlement cycle, an unintended consequence is the application of due
bills to activity one day after record date.\14\ Since DTC continues to
apply its standard interim accounting process, Participants are
required to perform adjustments to reverse the interim accounting on
activity to which the interim accounting should not have applied,
creating unnecessary work for the Participants.\15\ In order to avoid
the need for such adjustments, DTC proposes to no longer apply the
interim accounting process when an exchange moves an ex-date due to an
unexpected closure of the exchange.
---------------------------------------------------------------------------

    \12\ Notice, 85 FR at 85767.
    \13\ DTC has participated in various conversations with
exchanges, industry representatives, and Participants to better
understand and help address this issue. See id.
    \14\ Id.
    \15\ Id.
---------------------------------------------------------------------------

D. UTW Service

    DTC states that its UTW service is designed to help ensure that the
appropriate non-resident alien withholding tax is applied to U.S.-
sourced income paid to DTC's direct non-U.S. Participants.\16\ DTC
further states that the applicable withholding tax is determined based
on the type of income being paid along with the tax forms provided by
the Participant.\17\
---------------------------------------------------------------------------

    \16\ Id.
    \17\ Id.
---------------------------------------------------------------------------

    The Distributions Guide currently provides that the UTW service is
available to non-U.S. Participants, including subaccounts of U.S.
Participants, and that users of the UTW service must enter into a
Withholding Agent Agreement.\18\ DTC believes that U.S. tax regulations
\19\ require DTC to withhold U.S. tax on payments it makes to its non-
U.S. Participants.\20\ However, according to DTC, U.S. tax regulations
do not contemplate a process under which DTC would withhold tax
obligations of its U.S. Participants.\21\ DTC also acknowledges its
obligations apply regardless of whether there is or is not an agreement
between DTC and its Participants to do so.\22\ DTC proposes to revise
the Distributions Guide to reflect its understanding of the foregoing
U.S. tax regulations.
---------------------------------------------------------------------------

    \18\ Distributions Guide, U.S. Tax Withholding, pg 23, supra
note 4.
    \19\ See 26 CFR 1.1441-7(a).
    \20\ See Notice, 85 FR at 85767.
    \21\ Id.
    \22\ Id.
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III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \23\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and rules and regulations thereunder applicable
to such organization. After carefully considering the proposed rule
change, the Commission finds that the proposed rule change is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to DTC. In particular, the Commission
finds that the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act \24\ and Rule 17Ad-22(e)(21) promulgated under
the Act,\25\ for the reasons described below.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(2)(C).
    \24\ 15 U.S.C. 78q-1(b)(3)(F).
    \25\ 17 CFR 240.17Ad-22(e)(21).
---------------------------------------------------------------------------

A. Consistency With Section 17A(b)(3)(F)

    Section 17A(b)(3)(F) of the Act \26\ requires, in part, that the
rules of a clearing agency be designed, in general, to protect
investors and the public interest. As described above, the proposed
rule change would update the Distributions Guide to more clearly
explain the interim accounting process and, more specifically, provide
an explanation of the interim accounting process for a security being
delisted, as well as update the copyright date. Additionally, as
described above, the proposed rule change would amend the Distributions
Guide for consistency with DTC's understanding of relevant U.S. tax
regulations. The Commission believes that these changes would provide
DTC's Participants and the public with greater clarity and transparency
regarding DTC's interim accounting process, which, in turn, is
generally to the benefit of investors and the public. Accordingly, the
Commission believes that the proposed rule change is designed, in
general, to protect investors and the public interest, consistent with
Section 17A(b)(3)(F) of the Act.\27\
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78q-1(b)(3)(F).
    \27\ Id.
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act \28\ also requires, in part, that
the rules of a clearing agency be designed to remove impediments to and
perfect the mechanism of a national system for the prompt and accurate
clearance and settlement of securities transactions. As described
above, the proposed rule change would change how DTC manages interim
accounting when an exchange moves an ex-date due to an unscheduled
closure of the exchange, so that DTC will no longer capture interim
activity that results from such a scenario. As a result, Participants
would no longer need to perform adjustments to reverse the interim
accounting on activity to which the interim accounting should not have
otherwise applied. By eliminating this need, the proposed rule change
should help streamline DTC's interim accounting process for tracking
due bills associated with Participants' securities transactions.
Because interim accounting is part of DTC's broader mechanism for the
clearance and settlement of securities transactions, the Commission
believes that by streamlining DTC's interim accounting process, the
proposed rule change is designed to remove impediments and perfect the
mechanism of the system for the prompt and accurate clearance and
settlement of securities transactions, consistent with Section
17A(b)(3)(F) of the Act.\29\
---------------------------------------------------------------------------

    \28\ Id.
    \29\ Id.
---------------------------------------------------------------------------

B. Consistency With Rule 17Ad-22(e)(21)

    Rule 17Ad-22(e)(21) under the Act \30\ requires that DTC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to, in part, be efficient and effective in meeting
the requirements of its Participants and the markets it serves. As
described above, the proposed rule change would amend the Distributions
Guide to (1) provide greater general clarity and transparency regarding
DTC's interim accounting process, (2) explain the interim accounting
process for a security being delisted, (3) no longer apply interim
accounting when an exchange changes an ex-date due to an unscheduled
closure of the exchange, and (4) remove the statements that the UTW
service is available to subaccounts of U.S. Participants and that users
of the UTW service must enter into a Withholding Agent Agreement.
---------------------------------------------------------------------------

    \30\ 17 CFR 240.17Ad-22(e)(21).
---------------------------------------------------------------------------

    The foregoing proposed changes would improve the Distributions
Guide by clarifying DTC's interim accounting processes, as well as the
application and requirements of the UTW service. As a result, the
proposed changes would help better inform DTC's Participants regarding
those matters. Moreover, as described above, the proposed change to no
longer apply interim accounting when there is an unscheduled closure of
an exchange would provide efficiencies to Participants by obviating the
need for them to make unnecessary interim accounting adjustments.
    Accordingly, for the reasons stated above, the Commission believes
that the proposed rule change is designed to enhance DTC's efficiency
and effectiveness in meeting the requirements of its Participants and
the

markets it serves, consistent with Rule 17Ad-22(e)(21) under the
Act.\31\
---------------------------------------------------------------------------

    \31\ Id.
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule changes are consistent with the requirements of the Act
and in particular with the requirements of Section 17A of the Act \32\
and the rules and regulations promulgated thereunder.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\33\ that proposed rule change SR-DTC-2020-019, be, and hereby is,
approved.\34\
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(2).
    \34\ In approving the proposed rule change, the Commission
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
---------------------------------------------------------------------------

    \35\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02712 Filed 2-9-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 62 (Monday, April 1, 2019)]
[Notices]
[Pages 12244-12245]
[FR Doc No: 2019-06235]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2466-034]

Appalachian Power Company; Notice of Intent To File License
Application, Filing of Pre-Application Document (Pad), Commencement of
Pre-Filing Process, and Scoping; Request for Comments on the Pad and
Scoping Document, and Identification of Issues and Associated Study
Requests

    a. Type of Filing: Notice of Intent to File License Application for
a New License and Commencing Pre-filing Process.
    b. Project No.: 2466-034.
    c. Dated Filed: January 28, 2019.
    d. Submitted By: Appalachian Power Company (Appalachian).
    e. Name of Project: Niagara Hydroelectric Project.
    f. Location: On the Roanoke River near the City of Roanoke, Roanoke
County, Virginia. The project does not occupy federal lands.
    g. Filed Pursuant to: 18 CFR part 5 of the Commission's
Regulations.
    h. Potential Applicant Contact: Jon Magalski, Environmental
Specialist Consultant, Appalachian Power Company, 1 Riverside Plaza,
Columbus, OH<PHONE_NUMBER>, [email protected].
    i. FERC Contact: Allyson Conner at<PHONE_NUMBER> or email at
[email protected].
    j. Cooperating agencies: Federal, state, local, and tribal agencies
with jurisdiction and/or special expertise with respect to
environmental issues that wish to cooperate in the preparation of the
environmental document should follow the instructions for filing such
requests described in item o below. Cooperating agencies should note
the Commission's policy that agencies that cooperate in the preparation
of the environmental document cannot also intervene. See 94 FERC ]
61,076 (2001).
    k. With this notice, we are initiating informal consultation with:
(a) The U.S. Fish and Wildlife Service and/or NOAA Fisheries under
section 7 of the Endangered Species Act and the joint agency
regulations thereunder at 50 CFR, Part 402, and (b) the State Historic
Preservation Officer, as required by section 106, National Historic
Preservation Act, and the implementing regulations of the Advisory
Council on Historic Preservation at 36 CFR 800.2.
    l. With this notice, we are designating Appalachian as the
Commission's non-federal representative for carrying out informal
consultation, pursuant to section 7 of the Endangered Species Act and
section 106 of the National Historic Preservation Act.
    m. On January 28, 2019, Appalachian filed with the Commission a
Pre-Application Document (PAD; including a proposed process plan and
schedule), pursuant to 18 CFR 5.6 of the Commission's regulations.
    n. A copy of the PAD is available for review at the Commission in
the Public Reference Room or may be viewed on the Commission's website
(http://www.ferc.gov), using the ``eLibrary'' link. Enter the docket
number, excluding the last three digits in the docket number field to
access the document. For assistance, contact FERC Online Support at
[email protected],<PHONE_NUMBER> (toll free), or (202) 502-
8659 (TTY). A copy is also available for inspection and reproduction at
the address in paragraph h.
    Register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    o. With this notice, we are soliciting comments on the PAD and
Commission's staff Scoping Document 1 (SD1), as well as study requests.
All comments on the PAD and SD1, and study requests should be sent to
the address above in paragraph h. In addition, all comments on the PAD
and SD1, study requests, requests for cooperating agency status, and
all communications to and from Commission staff related to the merits
of the potential application must be filed with the Commission.
    The Commission strongly encourages electronic filing. Please file
all documents using the Commission's eFiling system at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit brief
comments up to 6,000 characters, without prior registration, using the
eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You
must include your name and contact information at the end of your
comments. For assistance, please contact FERC Online Support at
[email protected]. In lieu of electronic filing, please send a
paper copy to: Secretary, Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426. The first page of any filing
should include docket number P-2466-034.
    All filings with the Commission must bear the appropriate heading:
``Comments on Pre-Application

Document,'' ``Study Requests,'' ``Comments on Scoping Document 1,''
``Request for Cooperating Agency Status,'' or ``Communications to and
from Commission Staff.'' Any individual or entity interested in
submitting study requests, commenting on the PAD or SD1, and any agency
requesting cooperating status must do so by May 25, 2019.
    p. Although our current intent is to prepare an environmental
assessment (EA), there is the possibility that an Environmental Impact
Statement (EIS) will be required. Nevertheless, this meeting will
satisfy the NEPA scoping requirements, irrespective of whether an EA or
EIS is issued by the Commission.

Scoping Meetings

    Commission staff will hold two scoping meetings in the vicinity of
the project at the time and place noted below. The daytime meeting will
focus on resource agency, Indian tribes, and non-governmental
organization concerns, while the evening meeting is primarily for
receiving input from the public. We invite all interested individuals,
organizations, and agencies to attend one or both of the meetings, and
to assist staff in identifying particular study needs, as well as the
scope of environmental issues to be addressed in the environmental
document. The times and location of these meetings are as follows:

Evening Scoping Meeting

    Date and Time: Wednesday, April 24, 2019 at 6:30 p.m.
    Location: Vinton Library, 300 S Pollard Street, Vinton, VA 24179,
(540) 857-5043.

Daytime Scoping Meeting

    Date and Time: Thursday, April 25, 2019 at 9:00 a.m.
    Location: Vinton Library, 300 S Pollard Street, Vinton, VA 24179,
(540) 857-5043.
    SD1, which outlines the subject areas to be addressed in the
environmental document, was mailed to the individuals and entities on
the Commission's mailing list. Copies of SD1 will be available at the
scoping meetings, or may be viewed on the web at http://www.ferc.gov,
using the ``eLibrary'' link. Follow the directions for accessing
information in paragraph n. Based on all oral and written comments, a
Scoping Document 2 (SD2) may be issued. SD2 may include a revised
process plan and schedule, as well as a list of issues, identified
through the scoping process.

Environmental Site Review

    The applicant and Commission staff will conduct an environmental
site review of the project on Wednesday, April 24, 2019 at 10:00 a.m.
All participants should meet at Niagara Dam located at 1495 Niagara
Road, Vinton, VA 24179; thereafter, participants should be prepared to
drive or carpool to other locations within the project boundary. To
attend the environmental site review, please RSVP via email to Jon
Magalski at [email protected]. Persons not providing an RSVP by April
19, 2019, will not be allowed on the environmental site review.

Meeting Objectives

    At the scoping meetings, staff will: (1) Initiate scoping of the
issues; (2) review and discuss existing conditions and resource
management objectives; (3) review and discuss existing information and
identify preliminary information and study needs; (4) review and
discuss the process plan and schedule for pre-filing activity that
incorporates the time frames provided for in Part 5 of the Commission's
regulations and, to the extent possible, maximizes coordination of
federal, state, and tribal permitting and certification processes; and
(5) discuss the appropriateness of any federal or state agency or
Indian tribe acting as a cooperating agency for development of an
environmental document.
    Meeting participants should come prepared to discuss their issues
and/or concerns. Please review the PAD in preparation for the scoping
meetings. Directions on how to obtain a copy of the PAD and SD1 are
included in item n of this document.

Meeting Procedures

    The meetings will be recorded by a stenographer and will be placed
in the public record of the project.

    Dated: March 26, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-06235 Filed 3-29-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: September 22, 2009 (Volume 74, Number 182)]
[Notices]
[Page 48245]
[DOCID:fr22se09-50]

=======================================================================
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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 13505-000]

Lock+\TM\ Hydro Friends Fund XVII, LLC; Notice of Preliminary
Permit Application Accepted for Filing and Soliciting Comments, Motions
To Intervene, and Competing Applications

September 15, 2009.
    On June 9, 2009, Lock+\TM\ Hydro Friends Fund XVII, LLC filed an
application for a preliminary permit, pursuant to section 4(f) of the
Federal Power Act, proposing to study the feasibility of the Enceladus
Hydroelectric Project, located on the Kentucky River, in Lee County,
Kentucky. The sole purpose of a preliminary permit, if issued, is to
grant the permit holder priority to file a license application during
the permit term. A preliminary permit does not authorize the permit
holder to perform any land disturbing activities or otherwise enter
upon lands or waters owned by others without the owners' express
permission.
    The proposed project would consist of the following:
    (1) 2 lock frame modules; (2) 18 hydropower turbines; (3) flow
control doors; (4) a conduit; (5) transmission line; and (6)
appurtenant facilities. The proposed Enceladus Project would have an
average annual generation of 284,018,400 kilowatt-hours.
    Applicant Contact: Wayne F. Krause, Hydro Green Energy, LLC,
Lock+\TM\ Hydro Friends Fund, LLC, 5090 Richmond Avenue 390,
Houston, TX 77056.
    FERC Contact: Allyson Conner,<PHONE_NUMBER>.
    Deadline for filing comments, motions to intervene, competing
applications (without notices of intent), or notices of intent to file
competing applications: 60 days from the issuance of this notice.
Comments, motions to intervene, notices of intent, and competing
applications may be filed electronically via the Internet. See 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
(http://www.ferc.gov/docs-filing/ferconline.asp) under the ``eFiling''
link. For a simpler method of submitting text only comments, click on
``Quick Comment.'' For assistance, please contact FERC Online Support
at<EMAIL_ADDRESS>call toll-free at<PHONE_NUMBER>; or,
for TTY, contact<PHONE_NUMBER>. Although the Commission strongly
encourages electronic filing, documents may also be paper-filed. To
paper-file, mail an original and eight copies to: Kimberly D. Bose,
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426.
    More information about this project, including a copy of the
application, can be viewed or printed on the ``eLibrary'' link of the
Commission's Web site at http://www.ferc.gov/docs-filing/elibrary.asp.
Enter the docket number (P-13505) in the docket number field to access
the document. For assistance, contact FERC Online Support.

Kimberly D. Bose,
Secretary.
[FR Doc. E9-22711 Filed 9-21-09; 8:45 am]

BILLING CODE 6717-01-P