[Federal Register: June 1, 2007 (Volume 72, Number 105)]
[Notices]
[Page 30648-30652]
[DOCID:fr01jn07-125]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55816; File No. SR-DTC-2006-16]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of Proposed Rule Change Amending FAST and DRS Limited
Participant Requirements for Transfer Agents

May 25, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 12, 2006, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') and on March 29, 2007, and May 3,
2007, amended the proposed rule change described in Items I, II, and
III below, which items have been prepared primarily by the DTC.\2\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ The exact text of the DTC's proposed rule change is set
forth in its filing, which can be found at http://www.dtc.org/impNtc/mor/index.html#2006
.

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

    DTC proposes to amend its rules to update, standardize, and restate
the requirements for the Fast Automated Securities Transfer Program
(``FAST''), to delineate the responsibilities of DTC and the transfer
agents with respect to the securities held by transfer agents as part
of the FAST program, and to restate the requirements for transfer
agents participating in the Direct Registration System (``DRS'').

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 DTC 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. DTC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\3\
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    \3\ The Commission has modified portions of the text of the
summaries prepared by the DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    Prior to the establishment of the FAST program, transfers of
securities to or from DTC occurred by sending securities back and forth
between DTC and transfer agents. In the case of securities being
deposited with DTC, DTC sent the certificates to the transfer agent for
registration into the name of DTC's nominee, Cede & Co., and the
transfer agent returned the reregistered certificates to DTC. In the
case of securities being withdrawn from DTC, DTC sent the certificates
registered in the name of Cede & Co. to the transfer agent for
reregistration into the name designated by the withdrawing DTC
participant, and the transfer agent returned the reregistered security
to DTC for delivery to the withdrawing participant. This process
exposed securities to risk of loss during transit between DTC and
transfer agents and resulted in the expense of making physical
deliveries of securities.
    Under the FAST program, transfer agents hold FAST-eligible
securities registered in the name of Cede & Co. in the form of balance
certificates. As additional securities are deposited or withdrawn from
DTC, transfer agents adjust the denomination of the balance
certificates as appropriate and electronically confirm theses changes
with DTC. Such ``FAST agents'' are holding in custody those securities
that would otherwise be held at DTC for the benefit of DTC's
participants. As such, the FAST program reduces the movement of
certificates between DTC and the transfer agents and therefore reduces
the costs and risks associated with the creation, movement, and storing
of certificates to DTC, DTC participants, issuers, and transfer
agents.\4\
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    \4\ For a description of DTC's current rules relating to FAST,
see Securities Exchange Act Release Nos. 34-13342 (March 8, 1977)
[File No. SR-DTC-76-3]; 34-14997 (July 26, 1978) [File No. SR-DTC-
78-11]; 34-21401 (October 16, 1984) [File No. SR-DTC-84-8]; 34-31941
(March 3, 1993) [SR-DTC-92-15]; and 34-46956 (December 6, 2002)
[File No. SR-DTC-2002-15].
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    The FAST program has grown substantially since first being
introduced in 1975.\5\ Recent changes in the rules of the major
securities exchanges are expected to further accelerate this growth.\6\
Those exchange

rules require, as a listing prerequisite, that issues be eligible for
processing through DRS. Since becoming a FAST agent is a criterion for
transfer agents' eligibility for participation in DRS, DTC anticipates
significant growth in the FAST program as DRS becomes more widely used
or eventually becomes mandatory.
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    \5\ DTC introduced the FAST program in 1975 with 400 issues and
10 agents. Currently, there are over 930,000 issues and
approximately 90 agents in FAST.
    \6\ Securities Exchange Act Release Nos. 54289 (August 8, 2006),
71 FR 47278 (August 16, 2006) [File No. SR-NYSE-2006-29]; 54290
(August 8, 2006), 71 FR 47262 (August 16, 2006) [File No. SR-Amex-
2006-40]; 54288 (August 8, 2006), 71 FR 47276 (August 16, 2006)
[File No. SR-NASDAQ-2006-08]; 54410 (September 7, 2006), 71 FR 54316
(September 14, 2006) [File No. SR-NYSE Arca-2006-31]; 55482 (March
15, 2007), 72 FR 13544 (March 22, 2007) [File No. SR-Phlx-2006-69];
55481 (March 15, 2007), 72 FR 13544 (March 22, 2007) [File No. SR-
CHX-2006-33]; and 55480 (March 15, 2007), 72 FR 13544 (March 22,
2007) [File No. SR-BSE-2006-46].
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    DRS allows investors to hold a security as the registered owner in
electronic form on the books of the issuer rather than holding
indirectly through a financial intermediary that holds the security in
``street name'' or holding through the use of a certificate. Through
the use of FAST, DRS also allows for the transfer of a DRS position
from the books of the issuer to a financial intermediary through the
facilities of DTC.\7\
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    \7\ For a description of DTC's rules relating to DRS, see
Securities Exchange Act Release Nos. 34-37931 (November 7, 1996)
[File No. SR-DTC-96-15]; 34-41862 (September 10, 1999) [File No. SR-
DTC-99-16]; 34-42366 (January 28, 2000) [File No. SR-DTC-00-01]; 34-
42704 (April 19, 2000) [File No. SR-DTC-00-04]; 34-43586 (November
17, 2000) [File No. SR-DTC-00-09]; 34-44969 (August 14, 2001) [File
No. SR-DTC-2001-07]; 34-45232 (January 3, 2002) [SR-DTC-2001-18];
34-45430 (February 11, 2002) [File No. SR-DTC-2002-01]; and 34-48885
(December 5, 2003) [File No. SR-DTC-2002-17]; 34-52422 (September
14, 2005) [File No. SR-DTC-2005-11].
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(1) Proposed Amendments to DTC's FAST Requirements
    Despite the FAST program's robust past growth and expected future
growth, the transfer agent eligibility requirements for FAST have not
substantially changed since the implementation of FAST and do not: (i)
Take into account the increased volume and value of securities
processed by the transfer agents, (ii) reflect the current availability
of improved technology and other safeguards which would enhance the
safety and soundness of securities held at the transfer agents in the
name of Cede & Co. on behalf of DTC participants, and (iii) require the
use of standardized audit reports to certify transfer agents' processes
and controls.
    In light of the FAST program's growth, DTC has reexamined the
requirements of the FAST program with a view toward ensuring that the
assets in the custody of transfer agents, which ultimately belong to
DTC's participants and their customers, are adequately protected. As
more fully described below, DTC has identified aspects of the FAST
program's requirements that need updating, including: (i) Insurance
requirements (to take into account transaction volumes and values
conducted by transfer agents), (ii) safekeeping requirements (to
clarify and to enhance security and fire protection standards and to
take into consideration technological advances that allow for
economical security improvements), (iii) regulatory and bookkeeping
requirements (to ensure compliance with applicable laws and regulations
and utilize standardized audit reports certifying as to transfer
agents' processes and controls), and (iv) fees (to clarify transfer
agents' responsibilities). Taking these aspects into account, DTC
proposes to amend and to restate the requirements for FAST transfer
agents as set forth below in order to improve the soundness and safety
of securities assets held for DTC on behalf of DTC participants and to
provide better defined requirements as more issuers and transfer agents
participate in the immobilization and dematerialization of securities.
As a result, DTC proposes the following minimum requirements for
transfer agents participating in the FAST program.
    1. Transfer agent must be registered with the Commission, except
where the transfer agent's participation in the FAST program is limited
to acting solely for municipal issues (transfer agents must provide DTC
with evidence of such), and follow all applicable rules under the
Exchange Act, as well as all other applicable federal and state laws,
rules, and regulations, applicable to transfer agents, including OFAC
regulations. In addition, the transfer agent must provide DTC with a
written notification as soon as practicable, if its regulator has taken
any regulatory action against the transfer agent with respect to an
alleged violation of such laws, rules, or regulations. Any regulatory
reports or information furnished to DTC, including that required
pursuant to this Item No. 1 and Item No. 14 below, shall be held as
confidential by DTC and will not be used for any purpose other than to
manage the risk of DTC and its Participants. All other information
furnished to DTC pursuant to the requirements set forth herein shall be
held in at least the same degree of confidence as may be required by
law or the rules and regulations of the Commission.\8\
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    \8\ The Commission notes that records relating to Commission
examinations are highly confidential and are included herein only as
one part of DTC's risk management system. Review of Commission
examination records is a supplement to DTC's risk management
program.
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    2. The transfer agent must execute and fulfill the requirements of
the appropriate form of Balance Certificate Agreement with DTC (in the
appropriate form).\9\
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    \9\ DTC currently maintains three forms of the Balance
Certificate Agreement: one for transfer agents, one for issuers
acting as their own agent, and one for parties using a processing
agent. DTC is consolidating these forms into a single form, as
attached as Exhibit 2 to its filing.
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    3. When applying for FAST status, the transfer agent must include
the name and CUSIP of a minimum of one issue it wishes to add to the
FAST program. Issues eligible for the FAST program must be: (i) Traded
on an exchange registered under Section 6 of the Exchange Act, (ii)
municipal securities, or (iii) transferred by a transfer agent that
already acts as a FAST transfer agent for at least five (5) other
issues that are traded on an exchange. The above provisions
notwithstanding, DTC reserves the complete discretion to include or
exclude any particular issue in the FAST program.
    4. The transfer agent must sign and fulfill requirements of the
Operational Criteria for the FAST Transfer Agent Processing \10\ and
must comply with all applicable provisions of DTC's Operational
Arrangements (``OA'') \11\ as amended from time to time.
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    \10\ The Operational Criteria for the FAST Transfer Agent
Processing is attached as Exhibit 2(b) to DTC's filing.
    \11\ For more information relating to DTC's OA, see Securities
Exchange Act Release Nos. 34-45994 (May 29, 2002), 67 FR 39452 [File
No. SR-DTC-2002-02]; 34-24818 (August 19, 1987), 52 FR 31833 [File
No. DTC-87-10]; 34-25948 (July 27, 1988), 53 FR 29294 [File No. DTC-
88-13]; 34-30625 (April 23, 1992), 57 FR 18534 [File No. DTC-92-06];
34-35649 (April 26, 1995), 60 FR 21576 [File No. DTC-94-19]; and 34-
39894 (April 21, 1998), 63 FR 23310 [File No. DTC-97-23].
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    5. In order to provide for the operational proficiency and
efficiency of the program, on being accepted as a FAST transfer agent,
the transfer agent must complete DTC's training on FAST functionality.
    6. In order to protect against a risk of loss, the transfer agent
must carry and provide evidence of a minimum of the following Bankers
Blanket Bond Standard Form 24, or similar coverage, in proportion to
transaction volume the agent processes, as follows:
    a. $10 million with a deductible of no more than $50,000 for a
transfer agent with 25,000 or fewer transfer transactions per year as
reported to the Commission.
    b. $25 million with a deductible of no more than $100,000 for a
transfer agent with over 25,000 transfer transactions per year as
reported to the Commission.

    In addition, the transfer agent must: (i) Carry a minimum of $1
million in Errors and Omissions insurance with a deductible of no more
than $25,000 and must show evidence of the policy on applying for FAST
status and (ii) have a ``mail'' insurance policy of $10 million or more
and show evidence of the policy on applying for FAST status. The Errors
and Omissions coverage shall identify DTC as an additional insured. The
``mail'' coverage shall identify DTC as a loss payee but shall not be
invalidated by any act or neglect of the insured.
    In the event that a transfer agent can demonstrate that its
existing coverage and/or capitalization would provide similar
protections to DTC as the requirements set forth herein, it may apply
to DTC for a waiver of the deductibles set out above. DTC shall have
sole discretion as to whether or not to grant any such waiver.
    7. In order to facilitate consistent protection against losses
relating to securities in a transfer agent's control, the transfer
agent must notify DTC as soon as practicable of notice of any actual
lapse in insurance coverage or change in business practices, such as
increasing volumes or other business changes that would result in the
transfer agent requiring additional insurance coverage as outlined
above. Such notice shall be delivered to:
    DTC, Inventory Management--1SL, 55 Water Street, New York, New York
10041.
    And with a copy to:
    DTC, General Counsel's Office, 55 Water Street--22nd Floor, New
York, New York 10041.
    8. The transfer agent must provide proof to DTC of the new or
substitute policy for all required insurance at least 30 days prior to
any expiration or change in insurance limits of a previous insurance
policy.
    9. To further facilitate Item No. 7 above, the terms of the
insurance coverage noted above must state that the insurance provider
must notify DTC within five (5) days of notice of any threatened or
actual lapse in the above coverage requirements.
    10. The transfer agent must establish and maintain electronic
communications with DTC to balance FAST positions on a daily schedule.
    11. The transfer agent must provide on an annual basis to DTC
within ten (10) business days of filing with the SEC an accountant's
report (pursuant to Exchange Act Rule 17Ad-13, Annual Study of
Evaluation of Internal Accounting Controls) attesting to the soundness
of controls to safeguard securities assets and reliability and
integrity of computer systems, including confidentiality of customer
account or other non-public information. To the extent that a transfer
agent obtains a SAS-70 audit report, the transfer agent shall provide
DTC with a copy of the report within ten (10) business days of the
transfer agent's receipt of the report. In addition, the transfer agent
must provide, within the same time frame as required for such report, a
report from an external certified public accountant:
    a. Certifying that the transfer agent is complying with all of
DTC's requirements relating to FAST agents including and without
limitation to (a) those listed herein, (b) the Operational Criteria for
FAST Transfer Agent Processing, (c) the Operational Agreement and (d)
the Balance Certificate Agreement;
    b. certifying that the agent meets any SEC requirements for
business continuity planning; and
    c. containing an SSAE 10 report (or the equivalent) attesting to
the soundness of the transfer agent's control in meeting the
requirements set forth herein; however an SSAE-10 need not be provided
if the transfer agent has provided a SAS-70 audit report in accordance
with the provisions of this paragraph 11.
    12. FAST agents must safeguard all the securities assets as stated
under SEC Rule 17Ad-12 and with at least the following additional DTC
requirements:
    a. Maintaining a theft and fireproof safe of no less than 350
pounds with a minimum anti-theft test rating of UL 687 and a minimum
fire rating of UL 72;
    b. maintaining a theft and fire central monitoring alarm system
protecting the entire premises;
    c. all certificates will be maintained in a secure location,
accessible only by authorized personnel; and
    d. certificates shall not be left unattended unless stored in a
secure location or a ``locked'' safe.
    13. Personnel with access to the safe and the codes for the
centralized monitoring system will be governed by the Commission's Rule
17f-2, which includes but is not limited to rules for fingerprinting
staff that physically handle certificates.
    14. The transfer agent upon application must provide DTC with a
copy of the two most recent Commission examination reports as well as
any follow-up correspondence. In addition, the transfer agent on an
ongoing basis must provide DTC with notice of any alleged material
deficiencies documented by the Commission within 5 business days of the
transfer agent being notified of such material deficiencies.
    15. During regular business hours upon advance notice, DTC reserves
the right to visit and inspect to the extent pertaining to their
position the transfer agent's facilities, books, and records but is not
obligated to do so.
    16. The transfer agent may only charge DTC fees (i.e., deposit,
withdrawal, ``rush,'' cancellation, registration, or other transfer
fees) that: (a) Are contractually agreed to by the issuer, (b) are the
same for all other registered holders, and (c) do not violate the
regulations of the relevant securities exchange relating to transfer
agent fees.
    17. Existing FAST agents shall have a period of six (6) months from
the date of the Commission's approval of this rule filing within which
they must comply with these requirements, including the submission to
DTC of a signed Balance Certificate Agreement, signed Operational
Criteria, and all supporting documentation referenced herein. If an
agent is not compliant with these requirements upon the expiration of
such period, DTC shall have the right, using sole discretion, to
terminate or to continue the agent's FAST status.
    18. An agent acting on behalf of a transfer agent or an issuer
acting on its own behalf shall have the same rights and
responsibilities under these requirements as if it were the transfer
agent.
(2) Proposed Amended and Restated Eligibility Requirements for DRS
Limited Participants
    DTC is proposing the following restatement of the eligibility
requirements for DRS Limited Participants \12\ and the DRS eligibility
requirements for DRS issues to promote consistency with the FAST
program requirements as well as to further ensure the soundness of the
DRS system as follows. In order to be eligible to be a DRS Limited
Participant, a transfer agent must:
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    \12\ DRS Limited Participants are transfer agents that
participate in DRS through DTC. They are bound to certain provisions
of the DTC rules. Securities Exchange Act Release No. 34-37931
(November 7, 1996) [File No. SR-DTC-96-15].
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    1. Participate in the FAST program and abide by the rules outlined
in the FAST requirements above.
    2. Execute a DTC Limited Participant Account agreement.
    3. Deliver transaction advices directly to investors relating to
DRS Withdrawal-by-Transfer requests and provide DTC with a file (in a
format and using functionality as specified by DTC from time to time)
containing the transaction advice delivery date.

    4. Complete DTC's program on training of DRS and Profile
Modification System (``Profile'') functionality.
    5. Participate in the Profile surety or insurance programs to
initiate Profile transactions.\13\
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    \13\ In DRS, instructions to transfer shares are sent by a
broker-dealer that is a DTC participant or by a transfer agent that
is a DRS Limited Participant through Profile. Profile provides
screen based indemnification against false instructions from the
party submitting the instructions through DRS. The indemnity is
supported by either a surety bond or an insurance policy.
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    6. Implement program changes related to DTC systems modifications
within a reasonable time upon receiving notification from DTC of such
modifications.
    7. Implement program changes to support and expand DRS processing
capabilities as agreed to by the DRS Ad Hoc Committee.
    8. Mail a transfer advice or statement to shareholders within three
(3) business days of each DRS account transaction that affects the
shareholder's position or more often as required by the Commission's
regulations.
    Existing DRS Limited Participants shall have a period of six (6)
months from the date of the Commission's approval of this rule filing
within which they must comply with these requirements. If an agent is
not compliant with these requirements upon the expiration of such
period, DTC shall have the right using its sole discretion to terminate
or to continue the agent's status as a DRS Limited Participant.
(3) Eligibility Requirements for DRS Issues
    In order for an issue to be eligible as a DRS issue, the following
eligibility requirements must be met:
    1. The issue must be transferred by a transfer agent accepted as a
DTC DRS Limited Participant.
    2. The issue must be included in the FAST program and may not be
added to DRS if ``out of balance'' positions exist.
    3. The issuer or transfer agent for the issue must mail a
transaction advice or statement within three (3) business days of each
DRS account transaction that affects the shareholders position or more
often as required by Commission regulations.
(4) DTC's Proposed Standard of Care Obligations With Respect to FAST
    DTC is proposing to establish a clearer demarcation of
responsibility and liability with respect to the FAST program.
Historically, DTC believes the Commission has left to user-governed
clearing agencies the question of how to allocate losses associated
with, among other things, clearing agency functions.\14\ In conjunction
with its approval of these standards, the Commission noted that while
it had ``called on registered clearing agencies to undertake, by rule,
to deliver all fully-paid securities in their control to, or as
directed by, the participant for whom the securities are held,'' given
that registered clearing agencies had demonstrated a high level of
responsibility in safeguarding securities and funds, a standard of care
based on a strict standard of liability was not required either with
respect to failures of the clearing agency or a sub-custodian. DTC
notes that securities in the FAST program are held by a transfer agent
and are not within the immediate custody and control of DTC. As such,
after a transfer agent is accepted to the FAST program, DTC is
proposing the addition of a clarifying provision to Rule 6 to state
that DTC will not be liable for the acts or omissions of FAST Agents or
other third parties, unless caused directly by DTC's gross negligence,
willful misconduct, or violation of federal securities laws for which
there is a private right of action. In addition, DTC proposes that
under no circumstance shall DTC be liable for selecting or accepting
any third party as an agent of DTC, including a transfer agent
participating in the FAST Program.
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    \14\ Securities Exchange Act Release Nos. 34-20221 (September
23, 1983) and 34-22940 (February 24, 1986). In this regard, DTC
adopted a uniform standard with respect to certain of its
procedures, or Service Guides, such that DTC is not liable for any
loss incurred by a participant other than one caused directly by
gross negligence or willful misconduct on the part of DTC. See
Securities Exchange Act Release No. 34-44719 (August 17, 2001) [File
No. SR-DTC-2001-01].
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    DTC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act, as amended,\15\ and the rules
and regulations thereunder because it improves standards relating to
the eligibility of transfer agents and issues for its FAST and DRS
programs. As such, it assures the safeguarding of securities and funds
which are in the custody or control of DTC or for which it is
responsible.
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    \15\ 15 U.S.C. 78q-s.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Commission requests
comments as to whether the rule change will effect competition.

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

    DTC has neither solicited nor received written comments on the
proposed rule change.

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

    Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period: (i) As the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
    (A) By order approve such proposed rule change or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
) or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number SR-DTC-2006-16 in the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2006-16. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written

communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of
such filings also will be available for inspection and copying at the
principal office of the DTC and on the DTC's Web site, http://www.dtcc.com.
 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-DTC-
2006-16 and should be submitted on or before June 22, 2007.

    For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-10553 Filed 5-31-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: December 29, 2008 (Volume 73, Number 249)]
[Rules and Regulations]
[Page 79316-79318]
[DOCID:fr29de08-8]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Chapter I

[Docket No. RM07-9-00]

Review of FERC Form Nos. 6 and 6-Q

    December 18, 2008.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice Terminating Proceeding.

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SUMMARY: The Federal Energy Regulatory Commission is terminating its
notice of inquiry regarding the need for changes or revisions to the
Commission's reporting requirements. This notice specifically addresses
FERC Form Nos. 6 (Annual Report of Oil Pipeline Companies) and 6-Q
(Quarterly Report of Oil Pipeline Companies).

DATES: Effective Date: December 29, 2008.

FOR FURTHER INFORMATION CONTACT:
Jenifer Lucas (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426,<PHONE_NUMBER>. E-mail<EMAIL_ADDRESS>Dave Lengenfelder (Technical Information), Office of Enforcement,
Federal Energy Regulatory Commission, 888 First St., NE., Washington,
DC 20426,<PHONE_NUMBER>. E-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    1. On February 15, 2007, the Commission issued a Notice of Inquiry
(NOI) in this proceeding, seeking comments from filers and users of
various financial forms, including FERC Form Nos. 6 (Annual Report of
Oil Pipeline Companies) and 6-Q (Quarterly Report of Oil Pipeline
Companies), addressing whether the forms should be modified.\1\ The
FERC Form No. 6 contains data such as a balance sheet, cost-of-service
information, income statement, and

statement of cash flow for oil pipeline companies. Similarly, the FERC
Form No. 6-Q contains the same type of information but for each of the
first three quarters of each year. Interested parties filed comments
addressing possible modifications to the forms, and on July 18, 2007,
the Commission's Staff conducted a public workshop to discuss the
topic.
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    \1\ Assessment of Information Requirements for FERC Financial
Forms, FERC Stats. & Regs. ] 35,554 (2007).
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    2. As discussed below, the Commission will not modify FERC Form
Nos. 6 and 6-Q at this time. Accordingly, the Commission is terminating
Docket No. RM07-9-000.\2\
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    \2\ Following the issuance of the NOI, the Commission issued a
Notice of Proposed Rulemaking addressing FERC Form Nos. 2, 2-A, and
3-Q. On March 21, 2008, the Commission issued Order No. 710 revising
these forms. Revisions to Forms, Statements, and Reporting
Requirements for Natural Gas Pipelines, Order No. 710, 73 FR 19389
(April 10, 2008), FERC Stats & Regs. ] 31,267 (2008) order on reh'g,
Order No. 710-A, 123 FERC ] 61,278 (2008). Additionally, on
September 19, 2008, the Commission issued Order No. 715 revising
FERC Form Nos. 1, 1-F, and 3-Q. Revisions to Forms, Statements and
Reporting Requirements for Electric Utilities and Licensees, Order
No. 715, 73 FR 58720 (October 7, 2008), FERC Stats. & Regs. ] 31,277
(2008). This order addresses the sole remaining aspect of the NOI:
The financial forms relating to oil pipeline companies.
---------------------------------------------------------------------------

Summary of Significant Comments

    3. The Association of Oil Pipelines (AOPL), Shell Pipeline Company
L.P., Enbridge, Inc., Plains Pipeline L.P., and Magellan Pipeline
Company LLC (collectively, Carriers) argued for few if any changes to
FERC Form No. 6. In contrast, the Air Transport Association of America,
Inc., the Society for the Preservation of Oil Pipeline Shippers,
Anadarko Petroleum Corporation, Crowley Energy Consulting and Tesoro
Refining & Marketing Company (collectively, Shippers) sought
significant changes to the information required by FERC Form No. 6.
    4. The Carriers argue that the Commission has analyzed and either
revised or affirmed the form repeatedly since 1994, most recently in
2006,\3\ finding that it satisfies applicable ratemaking requirements
and provides the information necessary for shippers to challenge the
oil pipelines' rates. The Carriers emphasize that oil pipelines are
required to file extensive information, including total annual cost of
service, operating revenues, and throughput in barrels and barrel-
miles. In the Carriers' view, this information is adequate to permit
shippers to compare the level of an oil pipeline's cost of service with
their rates, and to compare the shippers' own changes in rates to
changes in average barrel-mile rates.
---------------------------------------------------------------------------

    \3\ Five-Year Review of Oil Pipeline Pricing Index, 114 FERC ]
61,293 (2006).
---------------------------------------------------------------------------

    5. The Shippers contend that FERC Form No. 6 does not provide an
adequate basis for supporting complaints regarding oil pipeline rates,
and thus it impedes the Commission's statutory duty to monitor cost-
based rates, analyze costs of different services and classes of assets,
and compare costs across lines of business. In particular, Shippers
argue that the current reporting system is not useful in an environment
where certain oil pipelines may own several pipeline systems. At a
minimum, assert Shippers, each oil pipeline reporting financial and
rate data on more than one pipeline system (or more than one segment of
a pipeline system) should be required to segregate cost and revenue
information for each system.\4\ Shippers maintain that this would
facilitate examinations of possible cross-subsidies. Shippers further
argue that oil pipelines should file workpapers that fully support the
data reported on FERC Form No. 6, including cost-of-service
calculations.
---------------------------------------------------------------------------

    \4\ FERC Form No. 6 reflects aggregated data. AOPL contends that
providing cost-of-service and revenue information for each segment
would be an undue burden because the oil pipeline companies do not
break down costs by segment, and they would be forced to estimate
amounts that they do not track separately.
---------------------------------------------------------------------------

Commission Analysis

    6. In Order No. 561, the Commission responded to Congress'
direction that the Commission ``promulgate new regulations to provide a
simplified and generally applicable ratemaking methodology for oil
pipelines, and to streamline procedures in oil pipeline proceedings.''
\5\ The Commission's regulations evidence this light-handed regulation
in part by encouraging the settlement of disputes in oil pipeline rate
matters.\6\ Order No. 561 also established price caps for oil pipeline
rates and instituted an annual indexing process for rates tied to the
Producer Price Index for Finished Goods minus one percent.
---------------------------------------------------------------------------

    \5\ Revisions to Oil Pipeline Regulations Pursuant to the Energy
Policy Act of 1992, Order No. 561, FERC Stats. & Regs. ] 30,985, at
30,940 (1993), order on reh'g, Order No. 561-A, FERC Stats. & Regs.
] 31,000 (1994), aff'd, Association of Oil Pipe Lines v. FERC, 83
F.23d 1424 (D.C. Cir. 1996).
    \6\ 18 CFR 343.5.
---------------------------------------------------------------------------

    7. The Commission has reviewed the comments addressing possible
changes to FERC Form Nos. 6 and 6-Q. These forms provide cost and
revenue data that are intended to be a screening tool used to assess on
an ongoing basis the justness and reasonableness of an oil pipeline's
rates. The information provided is not intended to be at the level of
detail necessary to litigate a case. Rather, the information need only
be of sufficient detail for a complainant to make a prima facia case
that existing rates are not just and reasonable.\7\ Indeed, the
information provided in FERC Form No. 6 has been adequate to allow
shippers over the last 10 years to file numerous complaints challenging
rates.\8\ Further, in a recent five-year review of the oil pipeline
pricing index, the Commission's Staff was able to track industry cost
changes by using data from the Annual Cost of Service Based Analysis
Schedule.\9\
---------------------------------------------------------------------------

    \7\ Cost-of-Service Reporting and Filing Requirements for Oil
Pipelines, Order No. 571, FERC Stats. & Regs. ] 31,006, at 31,168-69
(1994), aff'd, Association of Oil Pipe Lines v. FERC, 83 F.23d 1424
(D.C. Cir. 1996).
    \8\ See SFPP, L.P., 63 FERC ] 61,014 (1993); Texaco Refining and
Marketing, Inc. v. SFPP, LP, 86 FERC ] 61,035 (1999); ARCO Products
Co. v. SFPP, L.P., 91 FERC ] 61,142 (2000); ARCO a subsidiary of BP
America, Inc. v. Calnev Pipe Line, L.L.C., 97 FERC ] 61,057 (2001);
Chevron Products Co. v. SFPP, L.P., 114 FERC ] 61,133 (2006);
Williams Energy Services, LLC v. Mid-America Pipeline Company, LLC,
116 FERC ] 61,175 (2006). In setting these cases for hearing, the
Commission based its finding on an analysis of the entire carrier
system.
    \9\ Five-Year Review of Oil Pricing Index, 114 FERC ] 61,293
(2006).
---------------------------------------------------------------------------

    8. Additionally, the Commission has through various orders already
revised FERC Form No. 6 to make carrier costs more transparent. For
example, the Commission added the page 700, Annual Cost of Service
Based Analysis Schedule, which includes the filer's operating and
maintenance expenses, depreciation expense, AFUDC depreciation,
amortization of deferred earnings, rate base, rate of return, income
tax allowances, total cost of service, total operating revenues, and
throughput in barrels and barrel-miles for the end of the current and
previous calendar years.\10\ In Order No. 571, moreover, the Commission
rejected requests that the data reported on the Annual Cost of Service
Based Analysis Schedule include separate cost of service information
for each individual system, and explained that the schedule was not
intended to require a pipeline to demonstrate with precision its cost-
of-service attributed to each individual system it operates.\11\ In
this regard,

Shippers did not provide sufficient justification for the Commission to
further modify the requirements of FERC Form Nos. 6 and 6-Q.
---------------------------------------------------------------------------

    \10\ See Order No. 571, FERC Stats. & Regs. ] 31,006; Revisions
to and Electronic Filing of the FERC Form No. 6 and Related Uniform
Systems of Account, Order No. 620, FERC Stats. & Regs. ] 31,115
(2000), order on reh'g, Order No. 620-A, 94 FERC ] 61,130 (2001).
    \11\ Order No. 571, FERC Stats. & Regs. ] 31,006, at 31,168-69.
Accord Five-Year Review of Oil Pricing Index, 114 FERC
61,293, at P 51-52 (2006). See also Order No. 620, FERC Stats. &
Regs. ] 31,115, at 31,958-59 (``Consistent with our decision in
Order No. 571, the Commission denies suggestions by shippers that
pipelines be required to file separate cost of service information
for each individual system and additional information specifying
debt and equity components.'')
---------------------------------------------------------------------------

    9. The Commission recognizes that FERC Form No. 6 contains only
enough information for a threshold determination of whether the
existing rates are just and reasonable. However, the Commission
concludes that FERC Form Nos. 6 and 6-Q continue to provide sufficient
information to allow shippers to file a complaint requesting a
determination of the justness and reasonableness of a pipeline's rates.
Accordingly, the Commission concludes that no changes to FERC Form Nos.
6 and 6-Q are warranted at this time, and the Commission terminates
Docket No. RM07-9-000.

The Commission Orders

    Docket No. RM07-9-000 is hereby terminated, as discussed in the
body of this order.

    By the Commission.
Kimberly D. Bose,
Secretary.
 [FR Doc. E8-30621 Filed 12-24-08; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 141 (Monday, July 23, 2018)]
[Rules and Regulations]
[Pages 34758-34761]
[FR Doc No: 2018-15668]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2018-0590; Product Identifier 2018-NE-24-AD; Amendment
39-19319; AD 2018-13-07]
RIN 2120-AA64

Airworthiness Directives; Rolls-Royce plc Turbofan Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: We are adopting a new airworthiness directive (AD) for all
Rolls-Royce plc (RR) Trent 1000-A, Trent 1000-C, Trent 1000-D, Trent
1000-E, Trent 1000-G, and Trent 1000-H turbofan engine models. This AD
requires inspecting the intermediate-pressure compressor (IPC) stage 1
rotor blades, IPC stage 2 rotor blades, and IPC stage 2 dovetail posts,
and removing any cracked parts from service. This AD was prompted by
crack findings on the IPC rotor blades, which could lead to separations
resulting in engine failures. We are issuing this AD to address the
unsafe condition on these products.

DATES: This AD is effective August 7, 2018.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of August 7,
2018.
    We must receive comments on this AD by September 6, 2018.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this final rule, contact
Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England,
DE24 8BJ; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email:
royce.com">[email protected]royce.com; internet: https://customers.rolls-royce.com/public/rollsroycecare. You may view this service information
at the FAA, Engine & Propeller Standards Branch, 1200 District Avenue,
Burlington, MA 01803. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available on the
internet at http://www.regulations.gov by searching for and locating
Docket No. FAA-2018-0590.

Examining the AD Docket

    You may examine the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2018-
0590; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the mandatory continuing airworthiness information
(MCAI), the regulatory evaluation, any comments received, and other
information. The street address for Docket Operations (phone: 800-647-
5527) is listed above. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Kevin M. Clark, Aerospace Engineer,
ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone:
781-238-7088; fax:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European

Community, has issued EASA AD 2018-0128, dated June 12, 2018 (referred
to hereinafter as ``the MCAI''), to address an unsafe condition for the
specified products. The MCAI states:

    Occurrences were reported on RR Trent 1000 `Pack B' engines,
where some IPC Rotor 1 and Rotor 2 blades were found cracked.
    This condition, if not detected and corrected, could lead to in-
flight blade release, possibly resulting in reduced control of the
aeroplane.
    To address this potential unsafe condition, RR issued the NMSB
and the applicable NMSB to provide instructions to inspect IPC Rotor
1 blades, IPC Rotor 2 blades (front and rear face) and IPC shaft
Stage 2 dovetail posts.
    For the reason described above, this [EASA] AD requires a one-
time inspection of the affected parts and, depending on the
findings, accomplishment of applicable corrective action(s).

    You may obtain further information by examining the MCAI in the AD
docket on the internet at http://www.regulations.gov by searching for
and locating Docket No. FAA-2018-0590.

Related Service Information Under 1 CFR Part 51

    We reviewed RR Alert Non-Modification Service Bulletin (NMSB) Trent
1000 72-AK130, Initial Issue, dated June 11, 2018. The NMSB describes
procedures for performing a one-time inspection of the IPC stage 1
rotor blades, IPC stage 2 rotor blades, and IPC stage 2 dovetail posts,
and lists engine serial numbers. This service information is reasonably
available because the interested parties have access to it through
their normal course of business or by the means identified in the
ADDRESSES section.

Other Related Service Information

    We reviewed RR NMSB Trent 1000 72-K099, Initial Issue, dated June
11, 2018; RR NMSB Trent 1000 72-K100, Initial Issue, dated June 11,
2018; and RR NMSB Trent 1000 72-K129, Initial Issue, dated June 11,
2018. RR NMSB Trent 1000 72-K099 describes procedures for an ultrasonic
inspection of the IPC stage 1 rotor blades. RR NMSB Trent 1000 72-K100
describes procedures for a visual borescope inspection of the IPC stage
2 rotor blades and IPC stage 2 dovetail posts. RR NMSB Trent 1000 72-
K129 describes procedures for an ultrasonic inspection of the IPC stage
2 rotor blades.

FAA's Determination

    This product has been approved by EASA and is approved for
operation in the United States. Pursuant to our bilateral agreement
with the European Community, EASA has notified us of the unsafe
condition described in the MCAI and service information referenced
above. We are issuing this AD because we evaluated all the relevant
information provided by EASA and determined the unsafe condition
described previously is likely to exist or develop in other products of
the same type design.

AD Requirements

    This AD requires inspecting the IPC stage 1 rotor blades, IPC stage
2 rotor blades, and IPC stage 2 dovetail posts, and removing any
cracked parts from service.

FAA's Justification and Determination of the Effective Date

    No domestic operators use this product. Therefore, we find good
cause that notice and opportunity for prior public comment are
unnecessary. In addition, for the reason stated above, we find that
good cause exists for making this amendment effective in less than 30
days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety and was not preceded by notice and an opportunity for public
comment. However, we invite you to send any written data, views, or
arguments about this final rule. Send your comments to an address
listed under the ADDRESSES section. Include the docket number FAA-2018-
0590 and Product Identifier 2018-NE-24-AD at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this final rule. We will
consider all comments received by the closing date and may amend this
final rule because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this final rule.

Costs of Compliance

    We estimate that this AD affects 0 engines installed on airplanes
of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Inspect IPC blades and dovetail post..  20 work-hours x $85 per               $0          $1,700              $0
                                         hour = $1,700.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to engines, propellers, and
associated appliances to the Manager, Engine and Propeller Standards
Branch, Policy and Innovation Division.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national

government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2018-13-07 Rolls-Royce plc: Amendment 39-19319; Docket No. FAA-2018-
0590; Product Identifier 2018-NE-24-AD.

(a) Effective Date

    This AD is effective August 7, 2018.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Rolls Royce plc (RR) Trent 1000-A, Trent
1000-C, Trent 1000-D, Trent 1000-E, Trent 1000-G, and Trent 1000-H
turbofan engine models.

(d) Subject

    Joint Aircraft System Component (JASC) Code 7230, Turbine Engine
Compressor Section.

(e) Unsafe Condition

    This AD was prompted by reports of intermediate-pressure
compressor (IPC) rotor blade cracks, which could lead to separations
resulting in engine failures. We are issuing this AD to prevent
failure of the IPC. The unsafe condition, if not addressed, could
result in failure of one or more engines, loss of thrust control,
and loss of the airplane.

(f) Compliance

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

(g) Required Actions

    (1) Inspect the IPC stage 1 rotor blades, at the applicable
compliance times specified in paragraphs (g)(1)(i), (ii), or (iii)
after the effective date of this AD, whichever comes first:
    (i) Within 30 days for the serial number IPC modules installed
in the referenced serial number engines listed in Group 1 in
Appendix 1 of RR Alert Non-Modification Service Bulletin (NMSB)
Trent 1000 72-AK130, dated June 11, 2018, using the Accomplishment
Instructions, paragraph 3.A.(1)(a), of RR Alert NMSB Trent 1000 72-
AK130, dated June 11, 2018.
    (ii) Within 60 days for all IPC modules not listed in Group 1 in
Appendix 1 of RR Alert NMSB Trent 1000 72-AK130, dated June 11,
2018, using the Accomplishment Instructions, paragraph 3.A.(1)(a),
of RR Alert NMSB Trent 1000 72-AK130, dated June 11, 2018. Those
serial number IPC modules specifically identified in Group 2 in
Appendix 1 of RR Alert NMSB Trent 1000 72-AK130, dated June 11,
2018, do not require inspection.
    (iii) At the next engine shop visit, using the Accomplishment
Instructions, paragraph 3.A.(2)(a), of RR Alert NMSB Trent 1000 72-
AK130, dated June 11, 2018.
    (2) For IPC modules with 1,000 or more flight cycles, inspect
the IPC stage 2 rotor blades and IPC stage 2 dovetail posts within
30 days of the effective date of this AD or at the next engine shop
visit, whichever comes first.
    (i) For IPC stage 2 rotor blades and IPC stage 2 dovetail posts
inspected on-wing, use Accomplishment Instructions, paragraphs
3.B.(1)(a) and 3.C.(1)(a), of RR Alert NMSB Trent 1000 72-AK130,
dated June 11, 2018.
    (ii) For IPC stage 2 rotor blades and IPC stage 2 dovetail posts
inspected in shop, use Accomplishment Instructions, paragraphs
3.B.(2)(a) and 3.C.(2)(a), of RR Alert NMSB Trent 1000 72-AK130,
dated June 11, 2018.
    (3) For engines that are in an engine shop visit on the
effective date of this AD, inspect IPC stage 1 rotor blades, IPC
stage 2 rotor blades, and IPC stage 2 dovetail posts before
returning the engine to service.
    (4) If any IPC stage 1 rotor blade, IPC stage 2 rotor blade, or
an IPC shaft stage 2 dovetail post is found cracked during any
inspection required by this AD, remove the part from service and
replace the part with a part eligible for installation before
further flight.

(h) Definition

    An ''engine shop visit'' is the induction of an engine into the
shop for maintenance involving the separation of pairs of major
mating engine flanges (lettered flanges). The separation of engine
flanges solely for the purpose of transportation of the engine
without subsequent engine maintenance does not constitute an engine
shop visit.

(i) Special Flight Permits

    (1) Special flight permits, as described in Section 21.197 and
Section 21.199 of the Federal Aviation Regulations (14 CFR 21.197
and 21.199), are subject to the requirements of paragraph (i)(1)(i)
of this AD.
    (i) Operators who are prohibited from further flight due to an
IPC stage 1 rotor blade, IPC stage 2 rotor blade, or an IPC stage 2
dovetail post being found cracked, may perform a one-time non-
revenue ferry flight to a location where the engine can be removed
from service. This ferry flight must be performed without
passengers, involve non-extended operations (ETOPS), and consume no
more than three flight cycles.
    (ii) Reserved.
    (2) Reserved.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, ECO Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to the attention of the person
identified in paragraph (k)(1) of this AD. You may email your
request to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For more information about this AD, contact Kevin M. Clark,
Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].
    (2) Refer to European Aviation Safety Agency (EASA) AD 2018-
0128, dated June 12, 2018, for more information. You may examine the
EASA AD in the AD docket on the internet at http://www.regulations.gov by searching for and locating it in Docket No.
FAA-2018-0590.

(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Rolls-Royce plc (RR) Alert Non-Modification Service Bulletin
(NMSB) Trent 1000 72-AK130, Initial issue, dated June 11, 2018.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby,
England, DE24 8BJ; phone: 011-44-1332-242424; fax: 011-44-1332-
249936; email: royce.com">[email protected]royce.com; internet: https://customers.rolls-royce.com/public/rollsroycecare.
    (4) You may view this service information at FAA, Engine &
Propeller Standards Branch, 1200 District Avenue, Burlington,

MA. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Burlington, Massachusetts, on July 17, 2018.
Robert J. Ganley,
Manager, Engine and Propeller Standards Branch, Aircraft Certification
Service.
[FR Doc. 2018-15668 Filed 7-20-18; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: June 17, 2010 (Volume 75, Number 116)]
[Notices]
[Page 34520]
[DOCID:fr17jn10-140]

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DEPARTMENT OF TRANSPORTATION

[DOT Docket No. DOT-OST-2010-0074]

The Future of Aviation Advisory Committee (FAAC) Aviation Safety
Subcommittee; Notice of Meeting

AGENCY: Office of the Secretary of Transportation, Department of
Transportation.

ACTION: The Future of Aviation Advisory Committee (FAAC): Aviation
Safety Subcommittee; notice of meeting.

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

SUMMARY: The Department of Transportation (DOT), Office of the
Secretary of Transportation, announces a meeting of the FAAC Aviation
Safety Subcommittee, which will be held July 6, 2010, in Chicago,
Illinois. This notice announces the date, time, and location of the
meeting, which will be open to the public. The purpose of the FAAC is
to provide advice and recommendations to the Secretary of
Transportation to ensure the competitiveness of the U.S. aviation
industry and its capability to manage effectively the evolving
transportation needs, challenges, and opportunities of the global
economy. The Aviation Safety Subcommittee will develop a list of
priority safety issues to be referred to the full committee for
deliberation. The Subcommittee will also discuss a plan of action and
timeline for further work and identification of priority issues for the
second Subcommittee meeting.

DATES: The meeting will be held on July 6, 2010, at 1 p.m. c.d.t.

ADDRESSES: The meeting will be held at 100 North Riverside Plaza,
Chicago, Illinois 60606.
    Public Access: The meeting is open to the public. (See below for
registration instructions.)
    Public Comments: Persons wishing to offer written comments and
suggestions concerning the activities of the advisory committee or
Subcommittee should file comments in the Public Docket (Docket Number
DOT-OST-2010-0074 at http://www.Regulations.Gov) or alternatively
through the<EMAIL_ADDRESS>e-mail. If comments and suggestions are
intended specifically for the Aviation Safety Subcommittee, the term
``Aviation Safety'' should be listed in the subject line of the
message. In order to ensure that such comments can be considered by the
Subcommittee before its July 6, 2010, meeting, public comments must be
filed by close of business on Monday, June 28, 2010.

SUPPLEMENTARY INFORMATION:

Background

    Under section 10(a)(2) of the Federal Advisory Committee Act (5
U.S.C. App. 2), we are giving notice of an FAAC Aviation Safety
Subcommittee meeting taking place on July 6, 2010, at 1 p.m. c.d.t., at
100 North Riverside Plaza, Chicago, Illinois 60606. The Subcommittee
will--
    1. Develop a list of priority safety issues to be referred to the
full committee for deliberation.
    2. Discuss a plan of action and timeline for further work and
identification of priority issues for the second Subcommittee meeting.

Registration

    Due to space constraints and planning considerations, persons
desiring to attend must pre-register through e-mail to<EMAIL_ADDRESS>
The term ``Registration: Safety Subcommittee'' must be listed in the
subject line of the message, and admission will be limited to the first
25 to pre-register and receive a confirmation of their pre-
registration. No arrangements are being made for audio or video
transmission, or for oral statements or questions from the public at
the meeting. Minutes of the meeting will be posted on the FAAC Web site
at http://www.dot.gov/FAAC.

Request for Special Accommodation

    The DOT is committed to providing equal access to this meeting for
all participants. If you need alternative formats or services because
of a disability, please send a request to<EMAIL_ADDRESS>with the term
``Special Accommodations'' listed in the subject line of the message by
close of business on June 25, 2010.

FOR FURTHER INFORMATION CONTACT: Tony Fazio, Deputy Director, Office of
Accident Investigation and Prevention, Federal Aviation Administration,
800 Independence Ave., SW., Washington DC; telephone<PHONE_NUMBER>;
<EMAIL_ADDRESS>
    Issued in Washington, DC, on June 14, 2010.
Pamela Hamilton-Powell,
Designated Federal Official, Future of Aviation Advisory Committee.
[FR Doc. 2010-14668 Filed 6-16-10; 8:45 am]
BILLING CODE P


[Federal Register Volume 82, Number 166 (Tuesday, August 29, 2017)]
[Notices]
[Page 41077]
[FR Doc No: 2017-18229]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.

Extension:
    Form N-54A. SEC File No. 270-182, OMB Control No. 3235-0237

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
    Under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.)
(the ``Investment Company Act''), certain investment companies can
elect to be regulated as business development companies, as defined in
Section 2(a)(48) of the Investment Company Act (15 U.S.C. 80a-
2(a)(48)). Under Section 54(a) of the Investment Company Act (15 U.S.C.
80a-53(a)), any company defined in Section 2(a)(48)(A) and (B) may
elect to be subject to the provisions of Sections 55 through 65 of the
Investment Company Act (15 U.S.C. 80a-54 to 80a-64) by filing with the
Commission a notification of election, if such company has: (1) A class
of equity securities registered under Section 12 of the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act''); or (2)
filed a registration statement pursuant to Section 12 of the Exchange
Act for a class of equity securities. The Commission has adopted Form
N-54A (17 CFR 274.53) as the form for notification of election to be
regulated as business development companies.
    The purpose of Form N-54A is to notify the Commission that the
investment company making the notification elects to be subject to
Sections 55 through 65 of the Investment Company Act, enabling the
Commission to administer those provisions of the Investment Company Act
to such companies.
    The Commission estimates that on average approximately 12 business
development companies file these notifications each year. Each of those
business development companies need only make a single filing of Form
N-54A. The Commission further estimates that this information
collection imposes a burden of 0.5 hours, resulting in a total annual
PRA burden of 6 hours. Based on the estimated wage rate, the total cost
to the business development company industry of the hour burden for
complying with Form N-54A would be approximately $2,070.
    The collection of information under Form N-54A is mandatory. The
information provided under the form is not kept confidential. 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.
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information collected; and (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
    Please direct your written comments to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to<EMAIL_ADDRESS>
    Dated: August 23, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18229 Filed 8-28-17; 8:45 am]
 BILLING CODE 8011-01-P