[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48572-48577]
[FR Doc No: 2015-19874]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75646; File No. SR-MSRB-2015-07]

Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing of a Proposed Rule Change Consisting of
Revisions to the Content Outlines for the Municipal Fund Securities
Limited Principal Qualification Examination, Municipal Securities
Representative Qualification Examination and Municipal Securities
Principal Qualification Examination and Revisions to the Selection
Specifications for the Municipal Securities Principal Qualification
Examination

August 7, 2015.
    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 July 31, 2015, the Municipal Securities Rulemaking Board (the
``MSRB'' or ``Board'') filed with the Securities and Exchange
Commission (the ``SEC'' or ``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the MSRB. 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 MSRB filed with the Commission proposed revisions to the
content outlines for the Municipal Fund Securities Limited Principal
Qualification Examination (Series 51), Municipal Securities
Representative Qualification Examination (Series 52) and Municipal
Securities Principal Qualification Examination (Series 53). As a result
of changes to MSRB rules, revisions to the content outlines are
necessary to more accurately indicate the current rule requirements and
rule citations. Additionally, the MSRB is proposing revisions to the
selection specifications for the Series 53 qualification examination
(collectively, the ``proposed rule change'').\3\ The MSRB is not
proposing any textual changes to its rules.
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    \3\ The MSRB is also proposing changes to the question banks for
the Series 51, Series 52 and Series 53 examinations, but based upon
instructions from the Commission staff, the MSRB is submitting SR-
MSRB-2015-07 for immediate effectiveness pursuant to Section
19(b)(3)(A)(i) of the Act and Rule 19b-4(f)(6) thereunder, and is
not filing the question banks for Commission review. See letter to
Diane G. Klinke, General Counsel, MSRB, from Belinda Blaine,
Associate Director, Division of Market Regulation, SEC, dated July
24, 2000, attached as Exhibit 3d. The question banks are available
for Commission review. The selection specifications for the Series
53 examination, Exhibit 3e, have been omitted and filed separately
with the Commission for confidential treatment pursuant to Rule 24b-
2 of the Securities Exchange Act.
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    The text of the proposed rule change is available on the MSRB's Web
site at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2015-Filings.aspx, at the MSRB's principal office, and at the Commission's
Public Reference Room.

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

    In its filing with the Commission, the MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    Section 15B(b)(2)(A) of the Act \4\ authorizes the MSRB to
prescribe for municipal securities brokers or municipal securities
dealers and their associated persons standards of training, experience,
competence, and such other qualifications as the Board finds necessary
or appropriate in the public

interest or for the protection of investors and municipal entities or
obligated persons. The MSRB has developed examinations that are
designed to establish that persons associated with brokers, dealers and
municipal securities dealers that effect transactions in municipal
securities and municipal advisors who engage in municipal advisory
activities have attained specified levels of competence and knowledge.
The content outline for each examination serves as a guide to the
subject matter tested on the examination and provides learning
objectives associated with each subject matter to assist candidates in
preparing for the examination. Each content outline also provides
sample questions similar to the type of questions that may be found on
the examination. The arrangement of the subject matter in the content
outline reflects the various job functions performed within a broker,
dealer or municipal securities dealer. The MSRB periodically reviews
the content outline for each examination to determine whether revisions
are necessary or appropriate in view of changes pertaining to the
subject matter covered by the examination. Below is a summary of the
proposed revisions to the Series 51, Series 52 and Series 53 content
outlines.
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    \4\ 15 U.S.C. 78o-4(b)(2)(A).
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    The selection specifications for the Series 53 examination, which
the MSRB has submitted under separate cover with a request for
confidential treatment to the Commission's
    Secretary pursuant to Rule 24b-2 under the Act,\5\ describe
additional confidential information regarding the Series 53
examination.
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    \5\ 17 CFR 240.24b-2.
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MUNICIPAL FUND SECURITIES LIMITED PRINCIPAL QUALIFICATION EXAMINATION--
SERIES 51
    The Municipal Fund Securities Limited Principal Qualification
Examination is designed to determine whether an individual meets the
MSRB's qualification standards for municipal fund securities limited
principals applicable to the activities described in Rule G-
3(b)(iv).\6\ To do this, the examination measures a candidate's
knowledge of MSRB rules, rule interpretations and federal statutory
provisions applicable to the activities listed above. It also measures
the candidate's ability to apply these rules, interpretations and
federal statutory provisions to given fact situations in the context of
municipal fund securities activities. In addition to passing the Series
51 examination, to qualify as a municipal fund securities limited
principal, a candidate must also have previously or concurrently
qualified as a general securities principal or investment company/
variable contracts limited principal. Candidates are allowed one and
one-half hours to complete the Series 51 examination consisting of 60
multiple-choice questions.
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    \6\ MSRB Rule G-3(b)(iv) states that the municipal fund
securities limited principal has responsibility to oversee the
municipal securities activities of a securities firm or bank dealer
solely as such activities relate to transactions in municipal fund
securities. In this capacity, the municipal fund securities limited
principal manages, directs or supervises one or more of the
following activities relating to municipal fund securities as
described in Rule G-3(b)(i)(A)-(G):
    (A) Underwriting, trading or sales of municipal securities;
    (B) financial advisory or consultant services for issuers in
connection with the issuance of municipal securities;
    (C) processing, clearance, and, in the case of brokers, dealers
and municipal securities dealers other than bank dealers,
safekeeping of municipal securities;
    (D) research or investment advice with respect to municipal
securities;
    (E) any other activities which involve communication, directly
or indirectly, with public investors in municipal securities;
    (F) maintenance of records with respect to the activities
described in subparagraphs (A) through (E); or
    (G) training of municipal securities principals or municipal
securities representatives;
    provided, however, that the activities enumerated in
subparagraphs (D) and (E) above shall be limited to such activities
as they relate to the activities enumerated in subparagraphs (A) or
(B) above.
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    As a result of recent changes to MSRB rules, revisions to the
Series 51 content outline are necessary to indicate the current rule
requirements and rule citations. A summary of the changes to the
content outline for the Series 51 examination, detailed by major topic
headings, is provided below:
Introduction
     Footnote 2 will be changed to footnote 3.
     The rule citation and quotation in footnote 3 regarding
the ``Confidentiality of Qualification Examinations'' is being revised
from ``Rule G-3(e)'' to ``Rule G-3(f)'' to conform to amendments to
Rule G-3.
Part Three: General Supervision
Qualification and Registration
     The sub-topic ``Registration with the MSRB and payment of
initial fee and annual fee A-12; A-14'' is being revised to
``Registration requirements A-12(a)'' to reflect that the relevant
provision (which is now included in Rule A-12) is no longer included in
Rule A-14, as amended.
     The rule citation and sub-topic ``Notification to the MSRB
of change in status, name or address A-15'' is being revised to ``Form
A-12 updates and withdrawal A-12(j)'' to conform to recent amendments
of Rule A-12.
     The rule citation and sub-topic ``Requirement to submit
email contact to MSRB G-40'' is being revised to ``Designated contacts
A-12(f)'' to conform to recent amendments of Rule A-12.
Associated Persons
     The sub-topic ``financial and operations principals G-
3(d)(i) and (ii)'' is being rescinded to reflect that this registration
category is no longer referenced in Rule G-3.
     The sub-topic ``municipal advisor representatives G-3(d)''
and ``municipal advisor principals G-3(e)'' are being added to reflect
the new registration category as referenced in Rule G-3.
     The sub-topic ``Apprenticeship requirement G-3(a)(iii)''
is being rescinded to reflect that, as amended, Rule G-3 no longer has
this requirement.
     The sub-topic ``Restrictions on apprentices G-
3(a)(iii)(A)'' is being rescinded to reflect that, as amended, Rule G-3
no longer has this requirement.
Supervisory Responsibilities
     The rule citation for sub-topic ``1. Responsible for
municipal securities business and activities of associated persons'' is
being revised from ``G-27(b)(i)'' to ``G-27(b)(ii)'' to reflect the
reorganization of Rule G-27, as amended.
Part Four: Fair Practice and Conflicts of Interest
Conduct of Business
     The rule citation for sub-topic ``Prices and Commissions''
is being revised from ``G-30(b); G-18'' to ``G-30(b)'' to reflect that
the relevant requirements are included in Rule G-30, as amended.
     The rule citation for sub-topic ``Advertising, 1.
Definition'' is being revised from ``G-21(a)'' to ``G-21(a)(i)'' to
reflect the reorganization of Rule G-21, as amended.
Part Five: Sales Supervision
Opening Customer Accounts
     The rule citation for sub-topic ``Requirement to obtain
customer account information'' is being revised from ``G-19(a)'' to
``G-19'' to reflect the reorganization of Rule G-19, as amended.
     The sub-topic ``Transactions with employees and partners
of other dealers G-28'' is being revised to ``Transactions

with employees and partners of other municipal securities professionals
G-28'' to reflect the reorganization of Rule G-28, as amended.
Suitability
     The rule citation for sub-topic ``Knowledge of customer''
is being revised from ``G-19(b)'' to ``G-19 [Supp. .04 and .06]'' to
reflect that the relevant requirements are included in paragraphs .04
and .06 of the Supplementary Material of Rule G-19, as amended.
     The rule citation for sub-topic ``Suitability of
recommendations'' is being revised from ``G-19(c)'' to ``G-19 [Supp.
.05]'' to reflect that the relevant requirements are included in
paragraph .05 of the Supplementary Material of Rule G-19, as amended.
Improper Activities
     The title of topic ``Improper Activities'' is being
revised to ``Improper Use of Customer Assets.''
     The sub-topic and rule citation ``Churning G-19(e)'' are
being revised to ``Quantitative suitability G-19 [Supp. .05(c)]'' to
reflect that the relevant requirements are included in paragraph .05 of
the Supplementary Material of Rule G-19, as amended.
Part Six: Underwriting and Disclosure Obligations
Disclosures to Customers
     The sub-topic and related rule citation ``Material
disclosures at time of trade G-17'' are being revised to ``Time of
trade disclosure G-47'' to reflect that the requirements are included
in new Rule G-47.
Part Seven: Operations
Confirmation of Transactions
     The rule citation for sub-topic ``Periodic statements'' is
being revised from ``G-15(a)(viii)'' to ``G-15(a)(viii)(B)(1)'' to
reflect the reorganization of Rule G-15, as amended.
Sample Questions
     Sample question number 2 is being removed from the outline
because the topic (apprenticeship) is no longer tested on the
examination.
MUNICIPAL SECURITIES REPRESENTATIVE EXAMINATION--SERIES 52
    The Municipal Securities Representative Qualification Examination
is designed to determine whether an individual meets the MSRB's
qualification standards for municipal securities representatives by
measuring a candidate's knowledge of MSRB rules, rule interpretations
and federal statutory provisions applicable to the activities listed in
Rule G-3(a)(i).\7\ The Series 52 examination also measures a
candidate's ability to apply the rules and interpretations to given
fact situations in the context of a representative's municipal
securities activities. Candidates are allowed three and one-half hours
to complete the examination consisting of 115 multiple-choice
questions.
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    \7\ MSRB Rule G-3(a)(i) states:
     (A) The term ``municipal securities representative'' means a
natural person associated with a broker, dealer or municipal
securities dealer, other than a person whose functions are solely
clerical or ministerial, whose activities include one or more of the
following:
    (1) underwriting, trading or sales of municipal securities;
    (2) financial advisory or consultant services for issuers in
connection with the issuance of municipal securities;
    (3) research or investment advice with respect to municipal
securities; or
    (4) any other activities which involve communication, directly
or indirectly, with public investors in municipal securities;
    provided, however, that the activities enumerated in
subparagraphs (3) and (4) above shall be limited to such activities
as they relate to the activities enumerated in subparagraphs (1) and
(2) above.
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    As a result of recent changes to MSRB rules, revisions to the
Series 52 content outline are necessary to indicate the current rule
requirements and rule citations. A summary of the changes to the
content outline for the Series 52 examination, detailed by major topic
headings, is provided below:
Introduction
     The rule citation and quote in the ``Confidentiality''
section is being revised from ``Rule G-3(e)'' to ``Rule G-3(f)'' and
added as footnote 2, to conform to amendments to Rule G-3.
Part Four: Federal Legal Considerations
III. MSRB Rules
     The rule citation ``Professional Qualifications (G-2
through G-7)'' is being revised to ``Standards of Professional
Qualification and Professional Qualification Requirements (G-2 through
G-3)'' to conform to the current titles of the Rules, as amended.
     The rule citation ``Recordkeeping (G-8)'' is being revised
to ``Books and Records to be Made by Brokers, Dealers, Municipal
Securities Dealers, and Municipal Advisors (G-8)'' to conform to the
current title of Rule G-8, as amended.
     The rule citation ``Preservation of Records (G-9)'' is
being added, to reflect the relevant requirements included in Rule G-9.
     The rule citation ``Investor Brochure (G-10)'' is being
revised to ``Delivery of Investor Brochure (G-10)'' to conform to the
current title of Rule G-10.
     The rule citation ``New Issue Syndicate Practices (G-11)''
is being revised to ``Primary Offering Practices (G-11)'' to conform to
the current title of Rule G-11.
     The rule citation ``Conduct of Municipal Securities
Activities (G-17)'' is being revised to ``Conduct of Municipal
Securities and Municipal Advisory Activities (G-17)'' to conform to the
current title of Rule G-17, as amended.
     The rule citation ``Execution of Transactions (G-18)'' is
being revised to ``Best Execution (G-18)'' to conform to the current
title of Rule G-18, as amended.
     The rule citation ``Suitability of Recommendations and
Transactions; Discretionary Accounts (G-19)'' is being revised to
``Suitability of Recommendations and Transactions (G-19)'' to conform
to the current title of Rule G-19, as amended.
     The rule citation ``Disclosure of Control Relationships
(G-22)'' is being revised to ``Control Relationships (G-22)'' to
conform to the current title of Rule G-22, as amended.
     The rule citation ``Transactions with Employees of Other
Municipal Securities Professionals (G-28)'' is being revised to
``Transactions with Employees and Partners of Other Municipal
Securities Professionals (G-28)'' to conform to the current title of
Rule G-28, as amended.
     The rule citation ``Calculations (G-33)'' is being added
to reflect the requirements included in Rule G-33.
     The rule citation ``Broker's Broker (G-43)'' is being
added to reflect the requirements included in Rule G-43.
     The rule citation ``Time of Trade Disclosure (G-47)'' is
being added to reflect the requirements included in Rule G-47.
     The rule citation ``Transactions with Sophisticated
Municipal Market Professionals (G-48)'' is being added to reflect the
relevant requirements included in Rule G-48, as amended.
MUNICIPAL SECURITIES PRINCIPAL EXAMINATION--SERIES 53
    The Municipal Securities Principal Qualification Examination
(Series 53) is designed to determine whether an individual meets the
Board's qualification standards for municipal securities principals.
The Series 53 examination measures a candidate's knowledge of Board
rules, rule interpretations and federal statutory provisions applicable
to municipal securities activities. It also measures an

individual's ability to apply these rules and interpretations to given
fact situations. Candidates are allowed three hours to complete the
examination consisting of 100 multiple-choice questions.\8\
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    \8\ MSRB Rule G-3(b)(i) states:
    (i) Definition. The term ``municipal securities principal''
means a natural person (other than a municipal securities sales
principal), associated with a broker, dealer or municipal securities
dealer who is directly engaged in the management, direction or
supervision of one or more of the following activities:
    (A) underwriting, trading or sales of municipal securities;
    (B) financial advisory or consultant services for issuers in
connection with the issuance of municipal securities;
    (C) processing, clearance, and, in the case of brokers, dealers
and municipal securities dealers other than bank dealers,
safekeeping of municipal securities;
    (D) research or investment advice with respect to municipal
securities;
    (E) any other activities which involve communication, directly
or indirectly, with public investors in municipal securities;
    (F) maintenance of records with respect to the activities
described in subparagraphs (A) through (E); or
    (G) training of municipal securities principals or municipal
securities representatives;
     provided, however, that the activities enumerated in
subparagraphs (D) and (E) above shall be limited to such activities
as they relate to the activities enumerated in subparagraphs (A) or
(B) above.
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    The selection specifications for the Series 53 examination, which
the MSRB has submitted under separate cover with a request for
confidential treatment to the Commission's Secretary pursuant to Rule
24b-2 under the Act,\9\ describe additional confidential information
regarding the Series 53 examination. Due to the changes in the
selection specifications the weighting for 5 of the 6 topic areas of
the Series 53 content outline have changed. The first topic area,
Federal Regulation, remains the same at 4% of the exam. The second
topic area, General Supervision, is 23% of the exam. The third topic
area, Sales Supervision, is 25% of the exam. The fourth topic area,
Origination and Syndication, is 23% of the exam. The fifth topic area,
Trading, is 10% of the exam. The sixth topic area, Operations, is 15%
of the exam.
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    \9\ 17 CFR 240.24b-2.
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    As a result of recent changes to MSRB rules, revisions to the
Series 53 content outline are necessary to indicate the current rule
requirements and rule citations. A summary of the changes to the
content outline for the Series 53 examination, detailed by major topic
headings, is provided below:
Introduction
     The rule citation and quotation in footnote 2 regarding
``Confidentiality'' is being revised from ``Rule G-3(e)'' to ``Rule G-
3(f)'' to conform to amendments to Rule G-3.
Part One: Federal Regulations
Rules of the Securities and Exchange Commission
     The rule citation ``Dodd-Frank Wall Street Financial
Reform and Consumer Protection Act'' is being added to reflect the
current status of federal securities law.
Part Two: General Supervision
Definitional Rules
     The rule citation ``Associated person D-11'' is being
added to reflect the requirements included in Rule D-11, as amended.
     The rule citation ``Sophisticated Municipal Market
Professional (SMMP) D-15'' is being added to reflect the requirements
included in Rule D-15, as amended.
Qualification and Registration
     The rule citation ``Registration with the MSRB and payment
of initial fee A-12'' is being revised to ``Registration A-12'' to
conform to amendments to Rule A-12.
     The topic ``MSRB annual fee A-14'' is being removed to
reflect that the relevant provision of Rule A-14 is now included in
Rule A-12, as amended.
     The rule citation ``Assessments for Municipal Advisor
Professionals A-11'' is being added to reflect the new requirement in
Rule A-11.
     The topic ``Electronic mail contacts G-40'' is being
removed because Rule G-40 has been rescinded.
     The rule citation ``Notification to the MSRB of change in
status, name or address A-15'' is being removed to reflect that the
relevant provision of Rule A-15 is now included in Rule A-12, as
amended.
     The rule citation ``Limited representative--investment
company and variable contracts products G-3(a)(i)(C)'' is being added
to reflect the requirements included in Rule G-3, as amended.
     The rule citation ``Municipal advisor representative G-
3(d)'' is being added to reflect the requirements included in Rule G-3,
as amended.
     The rule citation ``Municipal advisor principal G-3(e)''
is being added to reflect the requirements included in Rule G-3, as
amended.
     The topic ``financial and operations principals G-3d(i)
and (ii)'' is being removed to reflect the rescission of the
requirement in Rule G-3d(i) and (ii), as amended.
     The rule citation ``Continuing education requirements G-
3(h)'' is being revised to ``Continuing education requirements G-3(i)''
to reflect the reorganization of Rule G-3, as amended.
     The rule citation ``Confidentiality of qualification
examinations G-3(e)'' is being revised to ``Confidentiality of
qualification examinations G-3(f)'' to reflect the reorganization of
Rule G-3, as amended.
     The topic ``Apprenticeship requirement G-3(a)(iii)'' is
being removed to reflect the rescission of the requirement.
Supervisory Responsibilities
     The rule citation ``Responsibility for municipal
securities business and activities of associated persons G-27(b)(i)''
is being revised to ``Responsibility for municipal securities business
and activities of associated persons G-27(b)'' to reflect the
reorganization of Rule G-27.
     The topic and rule citation ``Internal inspections G-
27(d)'' is being added to reflect the requirements included in Rule G-
27.
     The topic area ``Definition G-22(a)'' is being revised to
``Definition of control relationship G-22(a)'' to provide clarity to
the title of the topic area.
     The topic area ``Definitions G-20(e)'' is being revised to
``Definitions of `non-cash compensation', `cash compensation',
`offeror' and `primary offering' G-20(e)'' to provide clarity to the
title of the topic area.
     The topic area ``Prohibition from engaging in municipal
securities business'' is being revised to ``Political contributions and
prohibition from engaging in municipal securities business'' to provide
clarity to the title of the topic area.
     The topic area ``Definitions G-37(g)'' is being revised to
``Definitions including `municipal finance professional,' `municipal
securities businesses' and `issuer official' G-37(g)'' to provide
clarity to the title of the topic area.
     The topic area ``Period of prohibition G-37(b)'' is being
revised to ``Ban on municipal securities business; de minimis exemption
G-37(b)'' to conform to the title of Rule G-37.
     The topic area and rule citation ``Prohibition on
Soliciting and Coordinating Contributions G-37(c)'' is being added to
reflect the requirements included in Rule G-37.
     The topic area ``Definitions G-21(a)'' is being revised to
``Definitions; General standard for advertisements G-21(a)(iii)'' to
provide clarity to the title of the topic area.

Part Three: Sales Supervision
Opening Customer Accounts
     The rule citation ``Requirement to obtain customer account
information G-19(a)'' is being revised to ``Requirement to obtain
customer account information G-19'' to reflect the reorganization of
Rule G-19, as amended.
     The topic area ``Transactions with employees and partners
of other dealers'' is being revised to ``Transactions with employees
and partners of other municipal securities professionals'' to provide
clarity to the title of the topic area.
     The topic area ``Exemption for municipal fund securities
G-28(c)'' is being added to reflect the relevant requirements included
in Rule G-28.
Communications With Customers
     The topic area and rule citation ``Restrictions on
apprentices G-3(a)(iii)(A)'' is being removed to reflect the rescission
of the requirement in Rule G-3, as amended.
     The topic area and rule citation ``Tape recording of
conversations G-27(c)(ii)'' is being added to reflect the requirements
included in Rule G-27.
Suitability
     The rule citation for topic area ``Knowledge of customer
G-19(b)'' is being revised to ``Knowledge of customer G-19 [Supp.
.04]'' to reflect that the relevant requirements are included in
paragraph .04 of the Supplementary Material of Rule G-19, as amended.
     The rule citation for topic area ``Suitability of
recommendations G-19(c)'' is being revised to ``Suitability of
recommendations and transactions G-19'' to reflect that the relevant
requirements are included in Rule G-19, as amended.
     The topic area and rule citation ``Time of trade
disclosure G-47'' is being added to reflect the requirements included
in Rule G-47.
     The topic area and rule citation ``Sophisticated Municipal
Market Professionals (SMMP) G-48'' is being added to reflect the
requirements included in Rule G-48, as amended.
     The section header ``Improper Activities'' is being
revised to ``Supervisory Concerns'' to provide clarity to the title of
the section.
     The topic area and rule citation ``Churning G-19(e)'' is
being revised to ``Quantitative Suitability G-19 [Supp. .05]'' to
reflect that the relevant requirements are included in paragraph .05 of
the Supplementary Material of Rule G-19, as amended.
     The topic area ``Prohibition against soliciting and
coordinating political contributions G-37(c) and (d)'' is being revised
to ``Prohibition against soliciting and coordinating political
contributions; and circumvention of rule, G-37(c) and (d)'' to reflect
that the relevant requirements are included in Rule G-37.
Discretionary Accounts
     The topic area and rule citation ``Suitability G-19(d)''
is being moved to the suitability section in Part three of the content
outline.
     The topic area and rule citation ``Written supervisory
procedures G-27(c)(i)'' is being revised to ``Approval of transactions
G-27(c)(i)(G)(2)'' to reflect the reorganization of Rule G-27.
Customer Complaints
     The rule citation for topic area ``Review by a principal
G-27(c)(ii)'' is being revised to ``Review by a principal G-
27(c)(i)(B)'' to reflect the reorganization of Rule G-27.
Part Four: Orientation and Syndication
New Issue Syndicate Practices
     The topic area and rule citation ``Retail order period and
required disclosures G-11(k)'' are being added to reflect the
requirements included in Rule G-11.
     The topic area ``Definitions A-13(f)'' is being revised to
``Definition of primary offering A-13(f)'' to provide clarity to the
title of the topic area.
Part Five: Trading
Execution of Transactions
     The topic area ``Transactions as agent G-18'' is being
revised to ``Best execution G-18'' to reflect the requirements included
in Rule G-18.
     The topic area ``Prices and Commissions'' is being added
to reflect the requirements included in Rule G-30.
     The topic area and rule citation ``Principal transactions
G-30(a)'' is being moved from section two regarding general supervision
to section five regarding trading.
     The topic area and rule citation ``Agency transactions G-
30(b)'' is being moved from section two regarding general supervision
to section five regarding trading.
     The topic area and rule citation ``Time of trade
disclosure G-47'' is being added to reflect the requirements included
in Rule G-47, as amended.
Reports of Sales or Purchases
     The topic area ``Definitions G-14, RTRS Procedures, Sect.
(d)'' is being revised to ``Definitions relating to reporting
requirements for specific types of transactions'' to provide clarity to
the title of the topic area.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with
the provisions of Section 15B(b)(2)(A) of the Act,\10\ which authorizes
the MSRB to prescribe for municipal securities brokers or municipal
securities dealers and their associated persons standards of training,
experience, competence, and such other qualifications as the Board
finds necessary or appropriate in the public interest or for the
protection of investors and municipal entities or obligated persons.
Section 15B(b)(2)(A) of the Act \11\ also provides that the Board may
appropriately classify municipal securities brokers, municipal
securities dealers, and municipal advisors and persons associated with
municipal securities brokers, municipal securities dealers and
municipal advisors and require persons in any such class to pass tests
prescribed by the Board.
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    \10\ 15 U.S.C. 78o-4(b)(2)(A).
    \11\ Id.
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    The MSRB believes that the proposed revisions to the content
outline for the Series 51, Series 52, and Series 53 examinations and
changes to the selection specifications for the Series 53 examination
are consistent with the provisions of Section 15B(b)(2)(A) of the Act
\12\ in that the revisions will ensure that certain key concepts and
rules are tested on each of the examinations in order to test the
competency of individuals seeking to qualify as a municipal fund
securities limited principal, municipal securities representative and
municipal securities principal with respect to their knowledge of MSRB
rules and the municipal securities market.
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    \12\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The updated Series 51, Series
52, and Series 53 content outlines align with the functions and
associated tasks currently performed by municipal fund securities
limited principals, municipal securities representatives, and municipal
securities principals and tests knowledge of the most current laws,
rules, and regulations and skills relevant to those functions and
associated tasks. As such, the proposed rule change would make the
examinations more efficient and effective.

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

    Written comments were neither solicited nor received on the
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\ The examination content outlines for the Series
51, Series 52 and Series 53 examinations and the Series 52 selection
specifications will become operative on August 31, 2015.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-MSRB-2015-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MSRB-2015-07. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the MSRB. 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-MSRB-2015-07 and should be
submitted on or before September 3, 2015.

    For the Commission, pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-19874 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D. C. 20460 OFFICE OF PREVENTION, PESTICIDES AND TOXIC SUBSTANCES MEMORANDUM Date: 10/ 6/ 05 Subject: Imazaquin. Tolerance Reassessment Eligibility Decision ( TRED). Summary of Analytical Chemistry and Residue Data.

DP Number: 302944 Decision Number: PC Code: 128848 ( imazaquin acid), 128840 ( ammonium salt of imazaquin), and 129023 ( sodium salt of imazaquin) 40 CFR 180.426 Chemical Class: imidazole From: Danette Drew, Chemist Reregistration Branch 3 Health Effects Division ( 7509C)

Through: Catherine Eiden, Branch Chief Reregistration Branch 3 Health Effects Division ( 7509C)

To: Susan Stanton, Risk Assessor Reregistration Branch 3 Health Effects Division ( 7509C)

and Craig Doty, CRM Special Review Branch Special Review and Reregistration Branch ( 7508C) 2 of 20 Executive Summary Imazaquin is a pre plant, pre emergence, and early post emergence herbicide registered for use on the raw agricultural commodity soybeans. Except where otherwise noted, the term " imazaquin" in this document refers to the technical acid ( PC Code 128848), the ammonium salt of imazaquin ( PC Code 128840), and the monosodium salt of imazaquin ( PC Code 129023). The registered formulation classes of the herbicide are water dispersible granule ( WDG), wettable powder ( WP), emulsifiable concentrate ( EC), and soluble concentrate ( SC). The active ingredient in the products range from 1.7% to 70%. A maximum of 0.25 lb ai/ A may be applied per year using ground or aerial equipment. The maximum single application rate is 0.125 lb ai/ A. All product labels indicate a pre harvest interval ( PHI) of 90 days.

A petition for a temporary tolerance on corn was previously submitted ( PP# 5G04527). The Health Effects Division ( HED) recommended in favor of the establishment of a temporary tolerance for residues of imazaquin on/ in field corn grain, forage, and stover at 0.05 ppm provided a revised Section B and Section F are submitted. The conclusions and deficiencies of the petition review can be found in the memorandum dated 2/ 11/ 97 ( W. Wassell, D216732). A tolerance for imazaquin on corn has not been established.

The nature of the residue in plants is adequately understood for the use of imazaquin on soybeans. Based on the trace levels of radioactivity found in the soybean seed from an exaggerated application rate, the apparent extensive degradation of imazaquin into plant constituents, and the livestock grazing/ feeding prohibition of forage, straw and hay on current labels, the residue of concern for the use of imazaquin on soybeans is imazaquin, per se. If additional uses of imazaquin are proposed, then additional metabolism data may be required.

The nature of residue in livestock is adequately understood for the use of imazaquin on soybeans. Tolerances for imazaquin residues in livestock commodities need not be established as a result of the use on soybeans based on nondetectable residues in eggs, milk, and livestock tissues from the available animal metabolism studies and nondetectable residues in the submitted magnitude of residue studies in livestock feedstuffs. If additional uses or additional field studies result in detectable residues in feedstuffs, then additional animal metabolism studies may be required. The residue of concern in livestock commodities will be determined when tolerances for secondary residues in livestock commodities are deemed necessary. Additionally, label restrictions prohibit the grazing or feeding of soybean forage, hay or straw to livestock.

Method M 1410 has been accepted for tolerance enforcement purposes and is included in PAM, Vol II as Method I. The gas chromatography method uses acidic water and methanol in the extraction process. The previous analytical methods ( M 1283 and M 1245) were replaced by Method M 1410 because the analysis of freezer stability samples using Methods M 1283 and M 1245 showed that extraction with ethyl acetate only extracted about 50% of the residue. The crop field samples were analyzed using Methods M 1283 and M 1245; however, the fortification results indicated acceptable recovery.

Imazaquin has not been tested for recovery via FDA Multiresidue Protocols ( PAM Vol. I) and it is unknown whether it is recoverable by these methods. 3 of 20 Tolerances have been established under 40 CFR § 180.426 for imazaquin in or on soybeans at 0.05 ppm. In crop field trials conducted on soybeans using pre plant incorporated and post emergence treatments with diisoproyl amine salt of imazaquin at rates of 0.25 lb ae/ A ( 1x) to 2 lb ae/ A ( 8x; one trial), residues of imazaquin were < 0.05 ppm in all samples including seeds, foliage, and straw. Forage and hay samples were not collected. Processing studies are not required because residues were not detected in soybean samples treated at 8x the maximum application rate.

Residues of imazaquin are stable for up to 24 months on frozen soybean and corn. The storage duration of the crop field trial soybean samples from harvest to analysis was not provided.

Rotational crop restrictions are required based on the results of confined and limited field accumulation in rotational crop studies conducted with wheat, corn, carrots, and lettuce. Plantback intervals listed on current labels are adequate.

Regulatory Recommendations and Residue Chemistry Deficiencies A tolerance of 0.05 ppm has been established under 40 CFR § 180.426 for residues of imazaquin in or on soybeans. HED supports this tolerances, provided that the following deficiencies and data gaps are resolved:

1. The storage duration of the crop field trial soybean samples from harvest to analysis was not provided and should be submitted. Storage stability studies indicate that residues of imazaquin are stable on soybeans for up to 24 months of frozen storage.

2. Multiresidue method data were not submitted. The registrant should submit data pertaining to the recovery of imazaquin via FDA Multiresidue Protocols ( PAM Vol. I).

3. Residue data were not provided for soybean forage and hay; however, these data are not required provided current label restrictions prohibiting the grazing and feeding of forage, straw and hay to livestock are maintained.

Background The chemical structure and nomenclature of imazaquin are listed in Table 1, the chemical names and structures of the metabolites of imazaquin are presented in Table 2, and the physicochemical properties of imazaquin are presented in Table 3. 4 of 20 N N H N OH O O CH 3 CH( CH 3 ) 2 N N H N O O O CH 3 CH( CH 3 ) 2 NH 4 +

N N H N O O O CH 3 CH( CH 3 ) 2 Na + TABLE 1. Imazaquin and Salts Nomenclature Chemical structure Common name Imazaquin Molecular Formula C17H17N3O3 Molecular Weight 311.34 IUPAC name ( RS) 2( 4 isopropyl 4 methyl 5 oxo 2 imidazolin 2 yl) quinoline 3 carboxylic acid CAS name 2[ 4,5 dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1H imidazol 2 yl] 3 quinolinecarboxylic acid CAS # 81335 37 7 PC Code 128848 Chemical structure Common name Imazaquin, ammonium salt IUPAC name ( RS) 2( 4 isopropyl 4 methyl 5 oxo 2 imidazolin 2 yl) quinoline 3 carboxylic acid, monoammonium salt CAS name 2[ 4,5 dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1H imidazol 2 yl] 3 quinolinecarboxylic acid, monoammonium salt CAS # 81335 47 9 PC Code 128840 Chemical structure Common name Imazaquin, sodium salt IUPAC name ( RS) 2( 4 isopropyl 4 methyl 5 oxo 2 imidazolin 2 yl) quinoline 3 carboxylic acid, monosodium salt CAS name 2[ 4,5 dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1H imidazol 2 yl] 3 quinolinecarboxylic acid, monosodium salt CAS # 81335 46 8 TABLE 1. Imazaquin and Salts Nomenclature 5 of 20 N N H N OH O O CH 3 CH( CH 3 ) 2 N N H N OH O O CH 3 CH( CH 3 ) 2 OH N OH O O OH N OH O O OH PC Code 129023 TABLE 2. Chemical Names and Structures of Metabolites of Imazaquin1 Common Name Chemical Name Structure Imazaquin ±  2( 4,5 Dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1H imidazol 2 yl) 3 quinolinecarboxylic acid 5 Hydroxy imazaquin CL 343,684 2[ 4,5 dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1H imidazol 2 yl] 5 hydroxy 3 quinolinecarboxylic acid CL 263,875 quinoline 2,3 dicarboxylic acid 1. The metabolites were identified in field corn forage ( MRID 43671601) ( D216732, W. Wassell, 2/ 11/ 97).

TABLE 3. Physicochemical Properties of Imazaquin Parameter Value Reference Melting point 219 224 ° C ( decomposes) MRID 00146197; PP# 5F3273, RCB # 1265, 1/ 9/ 86, A. Smith pH 4.6 at 25 ° C Density, bulk density, or specific gravity 0.39 g/ mL untapped; 0.43 g/ mL tapped Water solubility at 25 ° C 60 ppm TABLE 3. Physicochemical Properties of Imazaquin Parameter Value Reference 6 of 20 Solvent solubility g/ 100 mL Acetone 0.30 DMF 6.80 DMSO 15.9 Ethanol 0.30 Heptane 0.02 Methanol 0.50 Methylene chloride 1.36 Toluene 0.04 Vapor pressure < 2 x 10 8 mm Hg at 45 ° C Dissociation constant, pKa 3.8 Octanol/ water partition coefficient 2.2 at 22 ° C UV/ visible absorption spectrum Not available 860.1200 Directions for Use Product List There are twelve active end use products ( EPs) containing imazaquin for use on soybeans. Seven of the products contain the imazaquin acid, four contain the ammonium salt of imazaquin, and one contains the sodium salt of imazaquin. All products are registered to BASF Corp. Additionally, there are three SLN registrations. The EPs are listed in Table 4.

TABLE 4. Imazaquin End Use Products ( EPs) with Food/ Feed Uses ( Only Soybeans)

End use products ( EPs) Formulation1,2 Product Name Registrant Company Imazaquin ( PC Code 128848)

241 3063 70% WDG Scepter ® 70 DG Herbicide BASF Corp.

241 361 5.4% SC Detail ® Herbicide BASF Corp.

241 369 35% WDG Imazaquin/ Imazathapyr DG BASF Corp.

241 376 1.9% EC Steel ® Herbicide BASF Corp.

241 407 2.8% EC Backdraft   Herbicide BASF Corp.

241 408 70% WP Backdraft   CP BASF Corp.

241 415 1.7% SC Backdraft   SL Herbicide BASF Corp.

LA010010 70% WDG Scepter ® 70 DG Herbicide BASF Corp.

MS010011 2.8% EC Backdraft   Herbicide BASF Corp.

MS020002 1.7% SC Backdraft   SL Herbicide BASF Corp.

Ammonium salt of imazaquin ( PC Code 128840)

241 307 4.72% EC ( 4.48% ae) TRI SCEPT ® BASF Corp.

241 289 17.3% SC ( 16.4% ae) Scepter ® BASF Corp.

241 292 17.3% SC ( 16.4% ae) Scepter ® BASF Corp. TABLE 4. Imazaquin End Use Products ( EPs) with Food/ Feed Uses ( Only Soybeans)

7 of 20 241 327 3.65% SC ( 3.46% ae) Squadron ® BASF Corp.

Sodium salt of imazaquin ( PC Code 129023)

241 321 5.61% SC ( 5.24% ae) Scepter O. T ® BASF Corp 1. WDG  water dispersiable granule; SC  soluble concentrate; EC  emulsifiable concentrate; WP = wettable powder 2. ae = acid equivalent 3. The registrant has indicated that the only product currently being marketed is the Scepter 70 DG ( 241 306). However, all products with active registrations are presented in this document.

Use Patterns For the purposes of re registration, the registered food/ feed uses of imazaquin have been reevaluated for soybeans. Table 5 presents a brief summary of the directions for use of imazaquin. All labels have geographic restrictions limiting use to approximately the eastern half of the United States. Rotational crop plant back intervals range from 3 months to 40 months, depending on rotated crop.( See product labels for specifics on geographical regions allowed and plant back intervals.)

TABLE 5. Directions For Use of Imazaquin Application Timing ° Application Type Max. Single Application Rate Max. Seasonal Rate Max. No. Applications/ cc & yr Restrictions SOYBEANS Preplant, Preemergence, Postemergence, Early Postemergence ° Broadcast, Soil Incorporated ° Ground, Aerial 0.125 lb ae/ A 0.25 lb ae/ A ( EPA Reg. No. 241 292) 2 ° 90 day preharvest interval ° Do not graze or feed treated soybean forage, hay, or straw to livestock ° Do not apply through any type of irrigation system. ° Rotational/ plant back crop restriction. ° Geographic restrictions.

PRODUCT NUMBERS CONTAINED IN THIS REPORT PC Code 128848: 241 306, 241 361, 241 369, 241 376, 241 407, 241 408, 241 415 PC Code 128840: 241 307, 241 289, 241 292, 241 327 PC Code 129023: 241 321 HOMEOWNER PRODUCTS CONTAINED IN THIS REPORT None A tabular summary of the chemistry science assessments is presented in Table 6. The conclusions listed in Table 6 regarding the re registration eligibility of imazaquin food/ feed uses are based on the use patterns registered by the producer. When end use product data call in's ( DCIs) are developed ( e. g., at issuance of the TRED), the Registration Division ( RD) should require that all end use product labels ( e. g., MAI labels, SLNs, and products subject to the generic data 8 of 20 exemption) be amended such that they are consistent with the basic producer labels.

TABLE 6. Residue Chemistry Science Assessment for Reregistration of Imazaquin .

GLN Data Requirements Current Tolerances ( ppm) [ § 180.426] Additional Data Needed? MRID Nos.

860.1200: Directions for Use N/ A = Not Applicable No1 See Table 5 860.1300: Nature of the Residue  Plants  soybeans N/ A No 131563, 131546, 1470122 42874001 3 860.1300: Nature of the Residue  Animals  Goats and poultry N/ A No 1470124 860.1340: Residue Analytical Method  Plant Commodities N/ A No 131563, 1470125  Animal Commodities N/ A No None 860.1360: Multiresidue Method N/ A Yes6 None submitted 860.1380: Storage Stability Data  Plant Commodities N/ A Yes7 147012, 436716048 860.1400: Magnitude of the Residue  Water, Fish, and Irrigated Crops N/ A N/ A N/ A 860.1460: Magnitude of the Residue  Food Handling N/ A N/ A N/ A 860.1480: Magnitude of the Residue  Meat, Milk, Poultry, Eggs N/ A No None 860.1500: Crop Field Trials  Soybean N/ A Yes9 131546, 13156, 14701210 860.1520: Processed Food/ Feed  Soybean meal, hulls, oil N/ A No N/ A 860.1650: Submittal of Analytical Reference Standards N/ A No 11 N/ A 860.1850: Confined Accumulation in Rotational Crops N/ A No 147012 12 860.1900: Field Accumulation in Rotational Crops N/ A No 42874001, 42874002 13 1. See Table 5. . 2. PP# G2979, R. Loranger, 3/ 28/ 84 and PP# 3273, A. Smith, 1/ 9/ 86. 3. PP# 5G4527, D216732, W. Wassell, 2/ 11/ 97. 4. PP# G2979, R. Loranger, 3/ 28/ 84; PP# 3273, A. Smith, 1/ 9/ 86. 5. PP# 3273, A. Smith, 1/ 9/ 86; PP# 5F3273, E. Greer, 2/ 26/ 86 ; A. Smith, 3/ 6/ 86; PP# G22979, R. Loranger, 3/ 28/ 84. 6. Multiresidue method data were not submitted. The registrant should submit data pertaining to the recovery of imazaquin via FDA Multiresidue Protocols ( PAM Vol. I). 7. The storage duration of the field samples was not provided. The submitted storage stability information indicate the residues are stable for 24 months in frozen storage. If the storage duration of the field samples was greater than 24 months, storage stability information should be submitted to cover the storage duration. 8. PP# 3273, A. Smith, 1/ 9/ 86; PP# 5G4527, D216732, W. Wassell, 2/ 11/ 97. 9. The storage duration of the crop field samples from harvest to analysis was not provided and should be 9 of 20 submitted. 10. PP# G2979, R. Loranger, 3/ 28/ 84; PP# 3273, A. Smith, 1/ 9/ 86. 11. Replenish standards as requested by the repository. 12. ACC No. 073703, RCB Nos. 1768,1769, M. Metzger; 2/ 2/ 87; D194l81 & D194180, G. Kramer, 6/ 17/ 94. 13. D194l81 & D194180, G. Kramer, 6/ 17/ 94.

860.1300 Nature of the Residue  Plants Soybean metabolism studies were conducted in Florida and New Jersey using post emergence and pre plant incorporated treatment methods. Both sites used carboxyl labeled imazaquin as the test substance. The New Jersey site also used benzene labels, however, not all of the benzene results were submitted. Diisopropyl amine salt of imazaquin was applied to all test plots at a rate of 0.38 lb ai/ A ( 1.5x). For the post emergence trials, the test substance was applied at the trifoliate leaf stage. For the pre plant incorporated trials, the test substance was applied to the soil and incorporated 2 inches. Plants were harvested at intervals of one week to 6.5 months, dividing the more mature samples into fodder, hulls, and seed.

For preplant application the soybean seed had total radioactivity residue ( TRR) of 0.01 to 0.02 ppm ( 14C carboxyl label) and 0.03 ppm ( 14C benzene label). The foliage had radioactivity at 0.43 to 0.50 ppm at one month; 0.05 ppm to 0.09 ppm at 2 months; 0.07 ppm to 0.12 ppm in mature foliage. The mature hulls had TRR at 0.04 ppm.

For early postemergence application soybean seed had TRR of 0.01 ppm to 0.05 ppm ( 14Ccarboxyl label) and 0.04 ppm ( 14C benzene label). The TRR on foliage was 0.24 to 0.60 ppm at one month and was 0.19 to 0.66 ppm in mature foliage.

Total radioactivity from 1 month up to maturity were similar between the carboxyl and benzene labeled imazaquin, indicating that loss of CO 2 from the carboxylic acid moiety is not a major degradation route as residues from the carboxyl label should be considerably lower in that case.

The residues were not chemically identified; however, some characterization involving the carboxyl label was accomplished by solvent fractionation of the activity and isolation of the protein portion of the seed. HED determined that the characterization was adequate to show that imazaquin was extensively degraded and reincorporated into native plant parts.

The characterization of radioactivity on foliage or straw was not presented in the study report. At a preregistration conference on 3/ 10/ 83, the registrant indicated that the methanol soluble activity of straw contained 8 metabolites ( each < 0.01 to 0.02 ppm) and the foliage contained at least 11 metabolites, with no parent compound present.

Based on the trace levels of radioactivity found in the soybean seed from an exaggerated application rate, the apparent extensive degradation of imazaquin into plant constituents, and the livestock grazing/ feeding prohibition of forage, straw and hay on current labels, the residue of concern for the use of imazaquin on soybeans is imazaquin, per se. If, in the future, additional uses of imazaquin are proposed, additional plant metabolism studies, using the 14C radiolabel in the imidazol ring, may be required. 10 of 20 Metabolism data were submitted for the petition for a temporary tolerance of imazaquin on corn. HED determined that for the purposes of a temporary tolerance on corn, the nature of residue in corn is the parent compound ( D216732, W. Wassell, 2/ 11/ 97). A brief description of the methodology and results of the corn metabolism study follows:

Following a single preplant incorporated ( PPI) or preemergence ( PRE) application of [ 14C] imazaquin to field corn plants at 0.5 lb ae/ A ( 4x the proposed maximum application rate), the total radioactive residues ( expressed as imazaquin equivalents) were 0.045 0.585 ppm in/ on forage, 0.012 0.024 ppm in/ on silage, 0.018 0.033 ppm in/ on fodder, and 0.007 0.016 ppm in/ on grain. The bulk of residue characterization and identification were conducted on immature forage samples ( 15 and 30 DAT) since this commodity contained the highest levels of radioactivity. Following extraction and HPLC analyses,

79 95% of TRR in forage were characterized/ identified. The principal component identified was the parent imazaquin which accounted for

23 34% of the TRR in forage. The metabolites, 5 hydroxy imazaquin ( CL 343,684) and quinoline 2,3 dicarboxylic acid ( CL 263,875) were also qualitatively identified in the aqueous fractions of corn forage. The remainder of the characterized radioactivity consisted of several metabolite regions ( designated as Metabolites A through I) mostly comprising < 10% of the TRR except for Metabolite F which comprised

21% of TRR ( 0.125 ppm) in 15 DAT PPI forage. Further analytical work to isolate and identify the polar Metabolite F was not successful but HPLC analysis of the isolated fraction characterized the metabolite to be multi component in nature.

The proposed metabolic pathway of imazaquin applied to corn is as follows: ( i) direct conjugation of the parent chemical; ( ii) hydroxylation of the parent chemical to its 5 hydroxy metabolite ( CL 343,684) followed by conjugation; and ( iii) degradation of the imidazoline ring system to quinoline 2,3 dicarboxylic acid ( CL 263,875) followed by conjugation. Plant residues, although substantive in the early growth stages, are comprised of a variety of metabolites which decline in content to < 0.01 ppm in mature field corn commodities.

860.1300 Nature of the Residue  Livestock Acceptable ruminant and poultry metabolism studies were submitted and evaluated in conjunction with PP# 5F3273 ( A. Smith, 1/ 9/ 86). The available ruminant metabolism study indicate that the total radioactive residues were nondetectable in milk, liver, kidney, muscle, and fat of lactating goats following oral administration of [ 14C] imazaquin at 0.25 and 0.75 ppm for seven consecutive days; the limits of detections were < 0.01 ppm for milk and < 0.05 ppm for tissues. The poultry metabolism study indicates that the total radioactive residues were also nondetectable (< 0.05 ppm) in egg white, egg yolk, muscle, liver, kidney, skin, and fat of laying hens following oral administration of [ 14C] imazaquin at 0.25 and 0.75 for seven consecutive days.

The nature of residue in livestock is adequately understood for the use of imazaquin on soybeans. Tolerances for imazaquin residues in livestock commodities need not be established as a result of the use on soybeans based on nondetectable residues in eggs, milk, and livestock tissues from the available animal metabolism studies and nondetectable residues in the submitted magnitude of residue studies in livestock feedstuffs. If additional uses or additional field studies result in detectable residues in feedstuffs, then additional animal metabolism studies may be required. The 11 of 20 residue of concern in livestock commodities will be determined when tolerances for secondary residues in livestock commodities are deemed necessary. Additionally, label restrictions prohibit the grazing or feeding of soybean forage, hay or straw to livestock. HED considers the feeding restrictions to be enforceable, and therefore acceptable, since soybeans are grown for seed and the feed items remain under the control of the grower.

860.1340 Residue Analytical Methods Method M 1410 is adequate for data collection and enforcement of tolerances on soybeans. The method is included in PAM II as Method I and replaces Methods M 1283 and M 1245 for their lack of extractability data. The initiation of freezer storage stability work using Methods M 1283 and M 1245 showed that ethyl acetate ( the previous extraction solvent) extracted only about 50% of the residue.

Briefly, in Method M 1410, the residues are extracted from the soybean tissue with acidic water and methanol. After filtration the extract is partitioned with methylene chloride. Once the methylene chloride is evaporated, the residue is dissolved in acetonitrile, which is washed three times with hexane. The acetonitrile is evaporated and the residue is dissolved in acetone. Ammonium chloride is used to precipitate the impurities and the residue is filtered and partitioned with methylene chloride. To clean the residue further, the methylene chloride is evaporated and residue is sent through a micro ion exchange column. The column uses 0.1 N of hydrochloric acid solution as the elutant and imazaquin is partitioned into the methylene chloride phase. Methylene chloride is evaporated again and the imazaquin is dissolved in methanol. Trimethylanilinium is added and quantization of the imazaquin occurs through gas chromatography ( A. Smith, 3/ 13/ 86).

At fortification levels ranging from 0.05 to 0.5 ppm for soybean straw and seed and 0.05 to 50 ppm for green plants, the Registrant obtained recoveries of 83 to 100% in soybean seed samples, 80 to 97% in green plant samples, and 83 to 102% in straw samples. Additionally, the Registrant provided data on the extractability of total carbon 14 from soybean seed, straw, and green plants treated with radiolabeled imazaquin. In seed, straw and green plants, the percent of carbon 14 extracted was 72%, 72%, and 33%.

An EPA method trial of Method M 1410 was conducted using soybeans fortified at 0.052 ppm and 0.1 ppm. Recoveries ranged from 79% to 85%. The detection limit was determined to be 0.01 ppm ( PP# 5F3273, E. Greer, 2/ 26/ 86).

Methods M 1283 and M 1245 were used to analyze soybean samples from the field trials. In these methods, plants and straw are extracted with acidic ethyl acetate, filtered, and the filtrate is evaporated before dissolving the residue on aqueous methanol. After a hexane wash the pesticide is partitioned into methylene chloride with the latter evaporated before dissolving the residue in acetone. Various impurities are removed by precipitation with ammonium chloride phosphoric acid solution. After filtering, the active ingredient is partitioned into methylene chloride, pH 7 phosphate buffer, and back into methylene chloride ( after acidification of the buffer). Final cleanup is done on a silica gel SEP PAK before dissolving in methanol in the presence of trimethylanilinium hydroxide ( TMAH). The latter results in on column methylation of imazaquin 12 of 20 ( presumably to form methyl ester) upon injection into the gas chromatograph. The detector of choice is nitrogen phosphorus specific. For soybeans, the cleanup procedure is shorter than that for other plant parts. After extraction with acidic ethyl acetate, the mixture is filtered and evaporated before precipitating between hexane and acetonitrile. The latter is evaporated and the residue partitioned between methylene chloride and pH 7 phosphate buffer. After acidifying the aqueous phase imazaquin is brought back into methylene chloride prior to GC determination. Recoveries from samples fortified at 0.05  1.0 showed acceptable recoveries ( 92 100% for plants, 80 90% for straw, and 86 105% for beans) ( R. Loranger, 3/ 28/ 84).

HED determined that methods M 1283 and M 1245 were adequate for enforcing a tolerance for imazaquin residues on soybeans.

860.1360 Multiresidue Methods Imazaquin and its metabolites have not been tested for recovery via FDA Multiresidue Protocols ( PAM Vol. I) and it is unknown whether these compounds are recoverable by the Multiresidue Protocols.

860.1380 Storage Stability Based on a storage stability study, imazaquin is stable in soybean plants and seeds stored at  10 ° F to  20 ° F for up to 24 months ( A. Smith 1/ 9/ 86). Additionally, data were submitted in conjunction with the corn use petition depicting the stability of imazaquin residues in/ on field corn commodities. These data show that imaquazin is stable in corn forage, grain, and stover stored frozen ( 20 ° C) for up to 24 months ( D216732, W. Wassell, 2/ 11/ 97).

The storage duration and conditions from harvest to analysis of the crop field trial soybean samples were not provided; therefore, a determination on the adequacy of the submitted storage stability data cannot be determined at this time. The registrant should submit the storage stability information from the soybean field trials.

860.1400 Water, Fish, and Irrigated Crops Imazaquin is not presently registered for direct use on water and aquatic food and feed crops; therefore, no residue chemistry data are required under these guideline topics.

860.1460 Food Handling Imazaquin is not presently registered for use in food handling establishments; therefore, no residue chemistry data are required under these guideline topics.

860.1480 Meat, Milk, Poultry, and Eggs 13 of 20 No studies pertaining to magnitude of the residue in eggs, milk, and meat were submitted. Several raw agricultural and processed commodities of soybean may be utilized as livestock feed items. Based on the results of the animal metabolism studies where livestock were dosed at 94x ( ruminant) and 68x ( poultry) the maximum theoretical dietary burden, there is no reasonable expectation of finite imazaquin residues to occur in meat, milk, poultry, and eggs ( Category 3 of 40 CFR § 180.6) as a result of the use pattern on soybean. Additionally, soybean seed samples treated at up to 8x maximum application rate, had no detectable residues (< 0.05 ppm;) of imazaquin. Soybean forage, hay, and straw are restricted as feed items. Therefore, livestock feeding studies or tolerances for meat, milk, poultry, and eggs are not required. However, HED reserves the right to request livestock feeding studies in the future if additional uses on crops with livestock feed items are proposed for registration.

Table 7. Maximum Theoretical Dietary Burden ( MTDB) for Cattle, Hogs, and Poultry Feedstuff Tolerance Level, ppm % Dry Matter ( DM) % of Diet Dietary Burden ppm*

Maximum Theoretical Dietary Burden for Beef and Dairy Cattle soybean, seed 0.05 89 15 0.008 Maximum Theoretical Dietary Burden for Poultry soybean, seed 0.05 89 20 0.011 Maximum Theoretical Dietary Burden for Hogs soybean, seed 0.05 89 25 0.014 * Dietary burden = ( tolerance level ÷ dry matter fraction) x (% of diet).

860.1500 Crop Field Trials American Cyanamid Company has submitted field trial data for diisopropyl amine salt of imazaquin on soybean. Eleven trials were conducted in AR( 2), IA( 2), LA, MS( 2), MO, NC, IN, and NJ. According to the current OPPTS Guideline 860.1500, 20 field trials ( or 15 if no quantifiable residues are detected) are required. However, given the geographical restrictions on current labels limiting use to specific states, and areas of states, in the eastern half of the U. S., 11 field trials on soybeans are considered adequate.

Pre emergence, as well as post emergence, ground and aerial treatments were examined in the submitted field trials. One or two applications were made where total application rates ranged from 0.25 lb ae/ A ( 1x) to 2 lb ae/ A ( 8x). Single application rates ranged from 0.125 lb ae/ A to 2 lb ae/ A. Seeds were harvested in all locations with PHIs ranging from 98 188 days. PHIs for straw ( collected at 5 locations) ranged from 98 147 days and PHIs for soybean foliage ( collected at 3 locations) were 30, 60, and 90 days ( R. Loranger, 3/ 28/ 84; A. Smith 1/ 9/ 86).

The storage duration from time of harvest to analysis was not provided. Additionally, it was noted that in several trials the plant parts were held at room temperature for 10 13 days prior to shipment to the analytical laboratory. Storage stability data submitted with the rotational crop studies indicate that imazaquin is stable in soybeans for up to 24 months. 14 of 20 Soybean plants, straw and soybean seed were analyzed using Method M 1283 and M 1245, respectively. The methods have since been replaced by Method 1410, however analysis of fortified samples ( 0.05  1.0 ppm) with Methods M 1286 and M 1245 showed acceptable recoveries ( 92 100% for plants, 80 90% for straw, and 86 105% for beans). Examination of the chromatograms and raw data shows no real difference between control and treated plots. Residues of imazaquin were < 0.05 ppm in all samples including seeds, foliage, and straw. Residue data for forage and hay were not provided; however, the labels restrict the grazing and feeding of forage, hay, and straw to livestock.

Residue data for aspirated grain fractions are not required as the early preharvest use of imazaquin is not expected to result in detectable residues in soybean seed.

860.1520 Processed Food and Feed Processed food and feed studies were not submitted for soybean meal, hulls, or oil; however, these studies are not required because residues were nondetectable in soybeans treated at 2 lb ai/ A ( 8x the current maximum application rate).

860.1650 Submittal of Analytical Reference Standards As of 8/ 16/ 04, an analytical reference standard for imazaquin is available at the EPA National Pesticide Standards Repository.

860.1850 Confined Accumulation in Rotational Crops A rotational crop residue study was conducted using phenyl 14C labeled imazaquin ( 37.97 mcCi/ mg) mixed with quinoline 13C labeled for a total activity of 19.0 mcCi/ mg. The chemical, formulated as the ammonium salt of imazaquin, was applied to soil at the rate of 0.19 lbs ai/ A and incorporated 2 inches. Soybeans were planted and grown to maturity, about 4.5 months. Winter wheat was planted 3 months after treatment and spring wheat and field corn were planted 8.5 months after treatment. Carrots and lettuce were also planted 9.5 months after treatment. Soybean plant residue were removed prior to follow crop planting only in one trial ( winter wheat) ( RCB Nos. 1768 and 1769, M. Metzger, 2/ 2/ 87). The total radioactive residue ( TRR) in corn RACs was below 0.01 ppm, except in fodder which was 0.02 ppm. The maximum TRR observed in the study was in winter wheat straw ( 0.07 ppm). Sixty percent of the wheat straw residue was extractable. The extractable residue was separated on HPLC into 7  9 unknown compounds, each at a level below 0.01 ppm ( D194l81 & D194180, G. Kramer, 6/ 17/ 94). Based on the results of the confined accumulation study, rotational crop restrictions on the current labels are adequate. No residues were identified in the rotational crop study.

860.1900 Field Accumulation in Rotational Crops 15 of 20 Field accumulation in rotational crop study was conducted by the American Cyanamid Company for the reduction of the rotational crop tolerances for imazaquin on soybeans followed by corn ( MRIDs 42874001 02). The study was in support of the reduction of the plant back interval to be readjusted to 9.5 months, instead of the 11 months already in place. Imazaquin was applied to the following soil types: loamy sand silt ( IL), loam ( IN), silty clay loam ( OH), silt loam ( GA), and silt loam ( IA) at a rate of 0.125 lb ae/ A in both pre plant incorporation and post emergence stages. The maximum applied rate was 0.25 lbs ae/ A. At three sites, imazaquin was applied at both PPI and post emergence stages. At the other three sites, imazaquin was applied at PPI or post emergence on separate plots. Soybeans were grown to maturity and harvested. Corn was planted 281 334 days ( 9.3 to 11 months) after final imazaquin treatment. Corn samples, after planting, were harvested at 40 41days for forage, 60 93 days for early silage, 84 110 days for late silage, and 111 181 days for grain and foddler. Imazaquin samples were analyzed using HPLC with UV detection in method M 2124. Method M2124 is adequate for collection of residue data for imazaquin per se from samples of field corn forage, silage, grain, and stover based on concurrent method recovery data submitted with the study ( 87 ± 6.1% for grain, 82 ± 5.5% for forage and 91 ± 19% for fodder). No detectable imazaquin residues were detected, i. e. all sample detections were < 0.05 ppm.

The corn samples were stored frozen for eight months. Storage stability is considered adequate based on the stabilty of imazaquin in corn for 24 months.

Based on the submitted confined accumulation and field accumulation in rotational crop studies, HED was in favor of the proposed label amendment to reduce the plant back interval from eleven months to nine and a half months for corn ( D194l81 & D194180, G. Kramer, 6/ 17/ 94).

Currently, labels specify PBIs from 3 to 11 months for most rotated crops. PBIs greater than 11 months are specified for some rotated crops, presumably because of phytotoxicity concerns. Based on the plant back intervals ( PBIs) used in the confined accumulation study and field accumulation study, where no residues of imazaquin were detected, the rotational crop restrictions on the current labels are adequate. According to a 6/ 28/ 88 memo from R. Taylor, the registrant requested reduced rotational crop intervals. EPA indicated that rotational crop tolerances would be necessary for the reduction of the restrictions and residue data would need to be submitted that would support the proposed tolerances.

Tolerance Reassessment for Imazaquin The tolerance for residues of imazaquin in/ on plant commodities is expressed in terms of residues of imazaquin per se 2[ 4,5 dihydro 4 methyl 4( 1 methylethyl) 5 oxo 1Himidazol 2 yl] 3 quinoline carboxylic acid. A summary of the imazaquin tolerance reassessment for soybeans is presented in Table 8.

Tolerances Listed Under 40 CFR § 180.426:

A tolerance has been established under 40 CFR § 180.426 for residues of imazaquin in or on soybeans. Provided that the deficiencies cited in this document are resolved, HED supports the current tolerance of 0.05 ppm. 16 of 20 TABLE 8. Tolerance Summary for Imazaquin Commodity Current Tolerance ( ppm) Reassessed Tolerance ( ppm) Comments ( correct commodity definition)

Soybeans 0.05 0.05 Soybean, seed Codex/ International Harmonization There are no Codex or Canadian maximum residue limits ( MRLs) for imazaquin. Currently in Canada, a default MRL of 0.1 ppm applies when specific MRLs have not been established. Based on this consideration and the fact that detectable residues of imazaquin are not expected in soybeans from its current U. S. uses, the lack of compatible Codex and Canadian MRLs should not present a significant trade concern for U. S. growers.

RDI: William Donovan ( 10/ 6/ 05) 17 of 20 BIBLIOGRAPHY Study Citations 131546 American Cyanamid Co. ( 1983) Product Chemistry: Scepter Herbicide. ( Compilation; unpublished study received Oct 14, 1983 under 241 EX 108; CDL: 072010 A)

131563 American Cyanamid Co. ( 1983) Residue Data Chemistry: Scepter Herbicide. ( Compilation; unpublished study received Oct 14, 1983 under 241 EX 108; CDL: 072013 A)

147012 American Cyanamid Co. ( 19??) Residue Chemistry: Scepter Herbicide. Unpublished compilation. 484 p.

159843 Gatterdam, P. ( 1986) Scepter Herbicide, Imazaquin ( AC 252,214): Residual Radioactivity in Follow Crops ( Winter Wheat, Spring Wheat... Derived Residues at Clayton, NC. Unpublished study pre pared by American Cyanamid Co. 177 p.

40622101 Gatterdam, P. ( 1988) Amended Data Submitted Under 40 CFR 158.130 Rotational Crops ( Confined) Guideline No. 165 1: Scepter Herbi cide: Report No. PD M Volume 23 16. Unpublished study prepared by American Cyanamid Co. 4 p.

41195000 Citation: American Cyanamid Co. ( 1989) Submission of Storage Stability Data to Support the Registration of SCEPTER O. T. Herbicide for Use in Soybeans.

42874001 Dixon, C. ( 1992) Imazaquin ( CL 252,214): Validation of HPLC Method M2124 for the Determination of CL 252,214 Residues in Corn Grain, Whole Grain Plants, and Corn Fodder: Lab Project Number: C3739: 0206: SC91PT01. Unpublished study prepared by American Cyanamid Co. 36 p.

42874002 Leonard, R. ( 1992) CL 252,214 ( Imazaquin): Residues of CL 252,214 in Field Corn Commodities ( Forage, Silage, Grain and Fodder) in Field Corn Planted Approximately ( sic) 9.5 Months after Application of SCEPTER Herbicide: Lab Project Number: C 3823: C 3824: C 3825. Unpublished study prepared by Huntingdon Analytical Service and American Cyanamid Co. 508 p.

43671601 Kao, L.; Robinson, R. ( 1995) CL 252,214: Metabolism of ( Carbon 14) CL 252,214 in Corn: Lab Project Number: M93P214OH1: MET 95 010: RPT00194. 18 of 20 Unpublished study prepared by Xeno Biotic Labs, Inc. and Battelle Memorial Institute. 332 p.

43671603 Leonard, R.; Baragary, N. ( 1995) CL 252,214 ( Imazaquin): Residues of CL 252,214 in Field Corn Commodities ( Forage, Silage, Grain and Fodder) in Field Corn Treated with Either a PPI or PE Application of SCEPTER 70DG Herbicide: Lab Project Number: RES 94 117: RES 94 118: RES 94 119. Unpublished study prepared by ABC Labs, Inc. and American Cyanamid Co. 493 p.

43671604 Dixon, C. ( 1995) CL 252,214 ( Imazaquin): Freezer Stability of Imazaquin ( CL 252,214) Residues in Typical Corn Substrates: Lab Project Number: SC92PT05: RES 94 165. Unpublished study prepared by American Cyanamid Co., Inc. 49 p 19 of 20 Agency Memoranda Citations.

Date DP Barcode CB No. ID Number From To MRID Nos. Subject 3/ 28/ 84     PP# 4G2979 R. Loranger R. Taylor and Toxicology Branch 131546, 131563 ( Accession Numbers 072010 and 072013) Scepter on Soybeans. Evaluation of Analytical Method and Residue Data.

2/ 26/ 86     PP# 5F3273 E. Greer C. Trichilo   Scepter in Soybeans 3/ 10/ 86   RCB No. 350   A. Smith R. Taylor   EPA registration No. 241 EIO:

Sceptor in Soybeans. Letter of December 18, 1985 3/ 13/ 86     A. Smith A. Murtagh   Method and materials for Method M 1410; GC method for the determination of imazaquin in soybean plants, straw, seed.

2/ 2/ 87   RCB Nos.

1768, 1769   M. Metzger R. Taylor 147012 ( Accession No.

073703) Imazaquin ( scepter Herbicide,

EPA Reg. No. 241 289; Scepter Herbicide Containing Surfactant,

EPA Reg. No. 241 292) on Soybeans. Amendment to Modify Rotational Crop Restrictions 5/ 5/ 88       J. Stokes RCB files   Discussion of additional residue data requirements for reduction of rotational crop restrictions and/ or establishment of rotational crop tolerances.

6/ 22/ 88       R. Taylor M. Galley   Scepter Herbicide EPA Registration No. 241  289 Scepter Herbicide Contains Surfactant EPA Registration No. 241  292 Scepter 7ODG Herbicide EPA Registration No. 241  306 Rotational Crop Restrictions 6/ 17/ 94 D194l81 &

D194180   000241 00306 &

000241 00289 G. F. Kramer R. Taylor 428740 02 Review of limited field trials whether rotational crop tolerances are needed for imazaquin. Agency Memoranda Citations.

Date DP Barcode CB No. ID Number From To MRID Nos. Subject 20 of 20 1/ 9/ 86   RCB No 1265   A. Smith R. Taylor 147012, 146197 ( Accession Nos.

073703, 073706,

073678) PP# 5F3273: Scepter on Soybeans.

Evaluation of Analytical Method and Residue Data.

2/ 11/ 97 D216732 CBTS No.

15784   W. Wassell D. McCall/ C.

Eiden 436716 01 through

04. PP# 5G04527. Imazaquin ( SCEPTER 70 DG) in/ on Field Corn. Review of Metabolism Data, Analytical Methods, and Residue Data.

Chemical No. 128848; Case:

286657


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on April 13, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-23236 and Undocketed

________________________________________________________________________
________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant: Aerolane, Lineas Aereas Nacionales del Ecuador S.A.
    d/b/a Lan Ecuador  (Docket OST-2005-23236)			Date Filed: December 2,
2005

Relief requested:  Exemption from 49 U.S.C. § 41301 to engage in
charter foreign air transportation of property and mail between a point
or points in Ecuador and a point or points in the United States and
between points in the United States and third countries, in accordance
with the provisions of the U.S.-Ecuador Air Transport Agreement, as
amended, and pursuant to 14 CFR Part 212 of the Department’s
regulations.

Applicant: Lan Airlines, S.A. and Lan Cargo, S.A. (Undocketed)		Date
Filed: December 2, 2005, as

										    amended December 29, 2005

Relief requested:  Amended statement of authorization under 14 CFR Part
212 for Lan Airlines, and initial statement of authorization for Lan
Cargo, to permit them to wet lease aircraft to Lan Ecuador for the
conduct of the operations described above.

If renewal, date and citation of last action: New authority for Lan
Ecuador and Lan Cargo.  Lan Airlines holds a statement of authorization,
granted on November 2, 2005, to wet lease aircraft to Lan Ecuador for
that carrier’s scheduled operations to and from the United States.

Applicant representative:  Charles J. Simpson, Jr. & Shannon M. Moyer
(202) 298-8660

DOT Analyst:  Shelita A. Smith<PHONE_NUMBER>

Responsive pleadings:  Continental Airlines, Inc. and Delta Air Lines,
Inc. filed answers to the applications.  Both carriers state that we
should either deny the requests or, in the alternative, grant them, in
whole or in part, for a period of fewer than 180 days.  They state that
Annex II to the U.S.-Ecuador Agreement, which provides for charter
operations, has expired, so Lan Ecuador’s request is extrabilateral in
nature.  They also state that the Government of Ecuador prevents U.S.
carriers from operating under cooperative marketing arrangements, such
as on a third-country code-share basis; that the Department has
previously noted the restrictive nature of the U.S.-Ecuador bilateral
relationship and has attempted to resolve this matter; but that there
has been no meaningful progress to date to resolve this issue.  They
state that, under these circumstances, the Department should grant no
new authority to Ecuadorian carriers until Ecuador is willing to grant
code-sharing authority to U.S. carriers.

Lan Ecuador filed a reply, stating that the services it seeks to conduct
are expressly contemplated by the U.S.-Ecuador Agreement, and that while
Annex II to that Agreement provides for charter operations, it does not
provide for code sharing by carriers of the parties.  It further states
that the objectors have not shown that the Government of Ecuador has
denied U.S. carriers authority similar to that requested by Lan Ecuador.
 It also states that while, as the objectors note, the expiration date
of Annex II has passed, its terms are still being observed by the
parties.  Finally, Lan Ecuador states that it needs to wet lease
aircraft to conduct operations to and from the United States because of
Ecuador’s Category 2 status under the FAA’s International Aviation
Safety Assessment (IASA) program.

DISPOSITION

Action:  Approved, subject to conditions (see below)					Action date:
April 13 2006

Effective dates of exemption authority granted:  April 13, 2006 –
April 13, 2007

Basis for approval (bilateral agreement/reciprocity):

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:

   X    Standard exemption conditions (attached)
Foreign air carrier permit   (          )

In the conduct of the services authorized, Lan Ecuador may conduct the
operations authorized herein only by using aircraft wet-leased from a
duly authorized and properly supervised U.S. or foreign air carrier.
Lan Ecuador may not conduct U.S. operations with its own aircraft and
crews without further action by the Department.  In addition, in
accordance with 14 CFR §212.9(d), Lan Ecuador shall not perform any
charter flight unless the Department has granted a statement of
authorization for such operation (see Order 84-6-90).

Special conditions/Partial grant/Denial basis/Remarks:

In reaching our decision here, we note that the cargo charter authority
which Lan Ecuador seeks is provided for in Annex II of the U.S.-Ecuador
Agreement, which states that both sides will authorize cargo charters
between Ecuador and the United States on the basis of reciprocity, and
will sympathetically consider requests to operate such charters to
points outside Ecuador and the United States.  Although the Annex has
expired by its terms, the United States and Ecuador are both continuing
to apply its terms as if it were still in place.  Thus, in our view, the
terms of Annex II form a basis for approval of this authority to Lan
Ecuador.  Moreover, as noted above, we are conditioning this authority,
as we have other grants of charter authority to carriers of Ecuador, on
the requirement that the carrier seek prior Department approval before
operating any charter flight to or from the United States (see Order
84-6-90).

With respect to the request of Lan Airlines and Lan Cargo for authority
to wet lease, we note, as we have in previous grants of authority to Lan
Ecuador, including grants of authority for Lan Airlines to wet lease to
Lan Ecuador, that the IASA Category 2 status of Ecuador leaves Lan
Ecuador no recourse but to conduct its operations by wet lease, and that
the U.S. carrier opponents have not shown any recent cases where Chile,
the homeland of Lan Airlines and Lan Cargo, has withheld wet-lease
authority from a U.S. carrier.

It is true, as Continental and Delta note, that we have not, to date,
been successful in our efforts to persuade the Government of Ecuador to
permit the kinds of cooperative marketing arrangements, most
specifically codesharing, that they seek.  Nevertheless, we find that,
in the circumstances presented, including in particular the above cited
provisions of Annex II (and the absence of comparable provisions on
codeshare), grant of the cargo charter authority Lan Ecuador requests,
as conditioned, is warranted in the public interest, as is the grant to
Lan Airlines and Lan Cargo of the statements of authorization to wet
lease to Lan Ecuador for these services.

Action taken by:  Paul L. Gretch, Director

		   Office of International Aviation

________________________________________________________________________
________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant is qualified to perform the
proposed operations; (2) our action was consistent with Department
policy; (3) grant of the authority was consistent with the public
interest; and (4) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted/deferred/dismissed, we denied

all requests in the referenced Docket.  We may amend, modify, or revoke
the authority granted in this Notice at any time without hearing at our
discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp"
http://dms.dot.gov//reports/reports_aviation.asp

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

05/2004


[Federal Register Volume 88, Number 141 (Tuesday, July 25, 2023)]
[Notices]
[Pages 47874-47875]
[FR Doc No: 2023-15683]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OW-2020-0017; FRL-11228-01-OW]

Agency Information Collection Activities; Submission to the
Office of Management and Budget for Review and Approval; Revision to
the Information Collection Request for the 2020 Drinking Water
Infrastructure Needs Survey and Assessment (DWINSA)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: The Environmental Protection Agency (EPA) has submitted an
information collection request (ICR), ``Revision to the Information
Collection Request for the 2020 Drinking Water Infrastructure Needs
Survey and Assessment (DWINSA)'' (EPA ICR Number 2616.02; OMB Control
Number 2040-0302) to the Office of Management and Budget (OMB) for
review and approval in accordance with the Paperwork Reduction Act.
This is a request for emergency approval of a revision to the currently
approved collection, allowing the Agency to conduct a one-time follow-
up to the lead service line (LSL) questionnaire of the 2020 DWINSA. A
fuller description of the proposed revision is given below, including
its estimated burden and cost to the public.

FOR FURTHER INFORMATION CONTACT: John Towe, Office of Water, Office of
Ground Water and Drinking Water, Environmental Protection Agency;
telephone number:<PHONE_NUMBER>; email address: [email protected].

SUPPLEMENTARY INFORMATION: This is a proposed revision of the ICR,
which is currently approved through December 31, 2023. An agency may
not conduct or sponsor and a person is not required to respond to a
collection of information unless it displays a currently valid OMB
control number.
    Abstract: Pursuant to section 3507(j) of the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501 et seq.), as implemented in the Office of
Management and Budget (OMB) regulations at 5 CFR 1320.13, EPA is
requesting emergency processing of a proposed information collection
revision.
    The purpose of this information collection revision is to better
identify the presence of LSL in States across the country. EPA's Office
of Ground Water and Drinking Water already collected data to comply
with sections 1452(h) and (i)(4) of the Safe Drinking Water Act (42
U.S.C. 300j-12) and the America's Water Infrastructure Act (AWIA) of
2018. This revised data collection effort will only include updates to
the lead service line (LSL) counts of the 2020 DWINSA. For the LSL
count update, EPA will collect and evaluate the number of LSL for water
systems that are in all 50 States, the U.S. territories (Guam, U.S.
Virgin Islands, Northern

Mariana Islands, and American Samoa), Puerto Rico, and the District of
Columbia. EPA will use an abbreviated version of the original DWINSA
2020 LSL questionnaire to collect LSL counts from previously surveyed
water systems. Participation in the one-time update is voluntary.
    Service line information is rapidly developing as States and water
systems develop inventories required under the Lead and Copper Rule
Revisions. This update of the LSL questionnaire allows water systems
and States that provided incomplete submissions to the original lead
service line questionnaire or are still developing their LSL
inventories to provide additional information to the data provided in
2021. This will result in a Bipartisan Infrastructure Law (BIL) Lead
Service Line Replacement (LSLR) allotment that reflects a more current
understanding of each State's needs. As mandated by section
1452(a)(1)(D)(ii) of the Safe Drinking Water Act, EPA intends for the
update to impact the LSLR allotments starting in FY 2024 (i.e., 3rd
year of BIL funding). In order to complete data collection within this
timeframe, the service line count update must be conducted as an
emergency revision to the original ICR.
    Form Numbers: None.
    Respondents/affected entities: The respondents for the LSL count
update to the 2020 Drinking Water Infrastructure Needs Survey and
Assessment are CWSs, NPNCWSs, and State agencies.
    Respondent's obligation to respond: Voluntary.
    Estimated number of respondents: 3,969 (total).
    Frequency of response: One time.
    Total estimated burden: 3,118.8 hours (per year). Burden is defined
at 5 CFR 1320.03(b)
    Total estimated cost: $194,265.4 (per year), which includes $0
annualized capital or operation & maintenance costs.
    Changes in the estimates: There is an increase of 3,118.8 hours in
the total estimated respondent burden compared with the ICR currently
approved by OMB. This increase is a result of the Agency conducting a
one-time follow-up to the original lead service line (LSL)
questionnaire of the 2020 DWINSA in order to help ensure Lead Service
Line Replacement (LSLR) allotments made from the Bipartisan
Infrastructure Law (BIL) more accurately reflect each State's needs.

Jennifer McLain,
Director, Office of Ground Water and Drinking Water.
[FR Doc. 2023-15683 Filed 7-24-23; 8:45 am]
BILLING CODE 6560-50-P