[Federal Register Volume 77, Number 51 (Thursday, March 15, 2012)]
[Notices]
[Pages 15422-15426]
[FR Doc No: 2012-6256]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66565; File No. SR-EDGX-2012-07]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing of Proposed Rule Change Relating to a Corporate Transaction in
Which Its Indirect Parent, SIX Swiss Exchange AG, Will Transfer Its
Indirect Ownership Interest in ISE Holdings, Inc. to a Newly Formed
Swiss Corporation, Eurex Global Derivatives AG

March 9, 2012.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Exchange Act''), and Rule 19b-4 thereunder,\2\ notice is
hereby given that on March 8, 2012, EDGX Exchange, Inc. (the
``Exchange'' or ``EDGX'') filed with the U.S. Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to (i) make changes to its corporate
structure in connection with the transfer of SIX Swiss Exchange AG's
(``SIX'') 50% indirect ownership interest of International Securities
Exchange Holdings, Inc. (``ISE Holdings'') to a newly formed Swiss
corporation, Eurex Global Derivatives AG (``EGD''), which will become a
wholly-owned subsidiary of Deutsche B[ouml]rse AG (``Deutsche
B[ouml]rse''), effectively granting Deutsche B[ouml]rse a 100% indirect
ownership interest in ISE Holdings and, in turn, International
Securities Exchange, LLC (``ISE'') (the ``Transaction''), (ii) amend
and restate the Amended and Restated Trust Agreement (``Trust''), (iii)
file the form of EGD Corporate Resolution (``Resolution''), (iv) file
the form of Agreement and Consent by and between EGD and Eurex
Z[uuml]rich AG (``Eurex Z[uuml]rich'') (``Agreement and Consent'') and
(v) amend and restate the Amended and Restated Bylaws of ISE Holdings
(``Bylaws''). The text of the proposed rule change is available on the
Exchange's Web site www.directedge.com, at the principal office of the
Exchange, 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 Exchange has included
statements concerning the purpose of, and basis for, the Proposed Rule
Change. The text of these statements may be examined at the places
specified in Item IV below. The Exchange has prepared summaries, set
forth in Sections A, B and C below, of the most significant aspects of
such statements.

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

1. Purpose
    The Exchange proposes to (i) make changes to its corporate
structure in connection with the Transaction, (ii) amend and restate
the Trust, (iii) file the form of Resolution, (iv) file the form of
Agreement and Consent, and (v) amend and restate the Bylaws.
Background
    On December 17, 2007, ISE Holdings, the direct parent of ISE,
became a direct wholly-owned subsidiary of U.S. Exchange Holdings, Inc.
(``U.S. Exchange Holdings''), which, in turn, is a wholly-owned
subsidiary of Eurex Frankfurt AG (``Eurex Frankfurt'').\3\ Eurex
Frankfurt is a wholly-owned subsidiary of Eurex Z[uuml]rich, which, in
turn, is jointly owned by Deutsche B[ouml]rse and SIX. SIX is owned by
SIX Group AG (``SIX Group'').
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    \3\ See Securities and Exchange Act Release No. 56955 (December
13, 2007); 72 FR 71979 (December 19, 2007) (SR-ISE-2007-101).
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    On December 23, 2008, ISE merged the ISE Stock Exchange, LLC, with
and into Maple Merger Sub, LLC, a wholly-owned subsidiary of Direct
Edge Holdings LLC (``Direct Edge'').\4\ As part of the same
transaction, ISE Holdings purchased a 31.54% equity interest in Direct
Edge.
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    \4\ See Securities and Exchange Act Release No. 59135 (December
22, 2008); 73 FR 79954 (December 30, 2008) (SR-ISE-2008-85).
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    On May 7, 2009, Direct Edge's direct subsidiaries, the Exchange and
EDGA Exchange, Inc. (``EDGA''), each filed a Form 1 Application with
the Commission, to own and operate a registered national securities
exchange.\5\ On March 12, 2010, the Commission granted the Form 1
exchange registration applications of the Exchange and EDGA.\6\ ISE and
EDGA will be separately filing a proposed rule change in connection
with the Transaction that will be substantially the same as the
Exchange's proposed rule change.
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    \5\ See Securities and Exchange Act Release No. 60651 (September
11, 2009); 74 FR 47827 (September 17, 2009) (File Nos. 10-193 and
10-194).
    \6\ See Securities and Exchange Act Release No. 61698 (March 12,
2010); 75 FR 13151 (March 18, 2010) (approving File Nos. 10-194 and
10-196).
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    On June 7, 2011, Deutsche B[ouml]rse, SIX Group, and SIX signed a
definitive agreement for the Transaction, which would give Deutsche
B[ouml]rse a 100% indirect ownership interest in the currently jointly-
owned Eurex Z[uuml]rich. Deutsche B[ouml]rse currently has a 50% direct
ownership interest in Eurex Z[uuml]rich, and, after the Transaction
closes, Deutsche B[ouml]rse will have a 100% direct ownership interest
in EGD, which will have a 50% direct ownership interest in Eurex
Z[uuml]rich.\7\ Accordingly, SIX and SIX Group will no longer have an
indirect ownership interest in the Exchange, ISE, or EDGA. Therefore,
the Exchange is proposing to take the following actions with respect to
the Trust, the Resolution, the Bylaws, all of which were previously
approved by the Commission, and the Agreement and Consent, to reflect
the ownership changes proposed by the Transaction.
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    \7\ ISE Holdings will continue to be the sole member of ISE.
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    EGD acknowledges that, to the extent it becomes aware of possible
violations of the rules of the Exchange or the Securities Exchange Act
of 1934 (``Exchange Act''), it will be responsible for referring such
possible violations to the Exchange. In addition, EGD will become a
party to an agreement among Deutsche B[ouml]rse, Eurex Frankfurt, Eurex
Z[uuml]rich, SIX, SIX Group, U.S. Exchange

Holdings, ISE Holdings, and the Exchange to provide for adequate
funding for the Exchange's regulatory responsibilities, and, following
consummation of the Transaction, SIX and SIX Group will no longer be
parties to such agreement.
Trust
    The Exchange proposes to amend certain provisions of the Trust in
connection with the Transaction. The Trust serves four general
purposes: (i) To accept, hold and dispose of Trust Shares \8\ on the
terms and subject to the conditions set forth therein, (ii) to
determine whether a Material Compliance Event \9\ has occurred or is
continuing; (iii) to determine whether the occurrence and continuation
of a Material Compliance Event requires the exercise of the Call
Option; \10\ and (iv) to transfer Deposited Shares from the Trust to
the Trust Beneficiary \11\ as provided in Section 4.2(h) therein.
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    \8\ Under the Trust, the term ``Trust Shares'' means either
Excess Shares or Deposited Shares, or both, as the case may be. The
term ``Excess Shares'' means that a Person obtained an ownership or
voting interest in ISE Holdings in excess of certain ownership and
voting restrictions pursuant to Article FOURTH of the Amended and
Restated Certificate of Incorporation of ISE Holdings (the
``Certificate''), through, for example, ownership of one of the non-
U.S. Upstream Owners or U.S. Exchange Holdings, without obtaining
the approval of the Commission. The term ``Deposited Shares'' means
shares that are transferred to the Trust pursuant to the Trust's
exercise of the Call Option.
    \9\ Under the Trust, the term ``Material Compliance Event''
means, with respect to a non-U.S. Upstream Owner, any state of
facts, development, event, circumstance, condition, occurrence or
effect that results in the failure of any of the non-U.S. Upstream
Owners to adhere to their respective commitments under the
resolutions in any material respect.
    \10\ Under the Trust, the term ``Call Option'' means the option
granted by the Trust Beneficiary to the Trust to call the Voting
Shares as set forth in Section 4.2 therein.
    \11\ Under the Trust, the term ``Trust Beneficiary'' means U.S.
Exchange Holdings.
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    Accordingly, the Exchange proposes to update the recitals of the
Trust, remove references to SIX and SIX Group from the definition of
``Affected Affiliate'' in Section 1.1 of the Trust, add a reference to
EGD in the definition of ``Affected Affiliate'' in Section 1.1 of the
Trust, remove SIX's address from the notice provisions in Section 8.8
of the Trust, and add EGD's address to the notice provisions in Section
8.8 of the Trust. The Exchange also proposes to correct several
typographical errors in the Trust.
Resolution
    Each of Deutsche B[ouml]rse, Eurex Frankfurt, Eurex Z[uuml]rich,
SIX, and SIX Group (the ``non-U.S. Upstream Owners'') have taken
appropriate steps to incorporate provisions regarding ownership,
jurisdiction, books and records, and other issues related to their
control of the Exchange, ISE, and EDGA. Specifically, each of the non-
U.S. Upstream Owners have adopted resolutions, which were previously
approved by the Commission, to incorporate these concepts with respect
to itself, as well as its board members, officers, employees, and
agents (as applicable). Accordingly, EGD as a 50% owner of Eurex
Z[uuml]rich, and thus a ``non-U.S. Upstream Owner,'' will adopt the
Resolution to incorporate provisions regarding ownership, jurisdiction,
books and records, and other issues related to its control of the
Exchange, ISE, and EDGA, with respect to itself, as well as to its
board members, officers, employees, and agents (as applicable).\12\
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    \12\ The form of Resolution is substantially similar to the
resolutions previously adopted by each of the non-U.S. Upstream
Owners. The form of Resolution differs from the resolutions
previously adopted by each of the non-U.S. Upstream Owners in that
the Resolution would explicitly reference the Exchange and EDGA, and
the FINMA procedure would allow EGD to provide information relating
to the activities of the Exchange, ISE, or EDGA to the Commission
through Eurex Z[uuml]rich, which will provide such information to
FINMA, whereas the resolutions previously adopted by each of the
non-U.S. Upstream Owners incorporated the Exchange and EDGA by
reference, and the FINMA procedure allows SIX, SIX Group, and Eurex
Z[uuml]rich to provide information relating to the activities of the
Exchange, ISE, and EDGA to the Commission directly through FINMA.
See supra note 4.
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    The Resolution would provide that EGD shall comply with the U.S.
federal securities laws and the rules and regulations thereunder and
shall cooperate with the Commission and with the Exchange, ISE, and
EDGA. In addition, the Resolution would provide that the board members,
including each person who becomes a board member, would so consent to
comply and cooperate and EGD would take reasonable steps to cause its
officers, employees, and agents to also comply and cooperate.
    The Resolution would also provide that, where necessitated by Swiss
law, EGD will provide information related to the activities of the
Exchange, ISE, or EDGA, including books and records of EGD related to
the activities of the Exchange, ISE, or EDGA, to the Commission
promptly, through Eurex Z[uuml]rich, which will, in turn, provide such
information to the Swiss Financial Market Supervisory Authority FINMA
(``FINMA''), which will provide such information to the Commission.\13\
Moreover, oral exchanges between EGD and the Commission related to the
activities of the Exchange, ISE, or EDGA will include, at all times,
the participation of Eurex Z[uuml]rich and FINMA, through its oversight
of Eurex Z[uuml]rich as a regulated legal entity, where necessitated by
Swiss law. These procedures collectively are referred to as the ``FINMA
procedure.'' The Exchange notes that the transmission of information
between EGD and Eurex Z[uuml]rich is dealt with in the Agreement and
Consent.
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    \13\ Due to EGD's status as an unregulated Swiss corporation,
FINMA cannot directly compel EGD to produce such information. As
such, it is necessary to include Eurex Z[uuml]rich (which is
regulated by FINMA) as an additional conduit in the FINMA procedure.
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    Swiss law designed to protect Swiss sovereignty raises concerns
about the ability of EGD to provide the Commission with direct access
to information, including books and records, related to the activities
of the Exchange, ISE, or EDGA.\14\ In order not to run afoul of Swiss
law, the Commission and FINMA have developed the FINMA procedure under
which FINMA undertakes to serve as a conduit for unfiltered delivery of
books and records of EGD related to the activities of the Exchange,
ISE, or EDGA.\15\
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    \14\ See Art. 271 of Swiss Criminal Code.
    \15\ Application of the FINMA procedure would be limited to
issues arising in the context of the Transaction and the
Commission's oversight of the Exchange, ISE, and EDGA. Information-
sharing and cooperation between the Commission and FINMA in
securities enforcement matters will continue to be governed by the
letters of cooperation between the Commission and FINMA.
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    Notwithstanding the FINMA procedure, EGD would remain fully
responsible for meeting all of its obligations as an owner of the
Exchange, ISE, or EDGA. The Exchange notes that if EGD does not comply
with the FINMA procedure, such noncompliance may trigger a Material
Compliance Event and the exercise of the Call Option under the
Trust.\16\
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    \16\ See supra notes 7 and 8.
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    The Resolution will provide that, to the extent that EGD is
involved in the activities of the Exchange, ISE, or EDGA, it will be
deemed to irrevocably submit to the jurisdiction of the United States
federal courts and the Commission for the purposes of any suit, action
or proceeding pursuant to the United States federal securities laws,
and the rules or regulations thereunder, commenced or initiated by the
Commission arising out of, or relating to, the activities of the
Exchange, ISE, or EDGA (and will be deemed to agree that (i) ISE
Holdings may serve as the U.S. agent for purposes of service of process
in such suit, action or proceeding with respect to ISE; and (ii) Direct
Edge may serve as the U.S. agent for purposes of service of process in
such suit, action or

proceeding with respect to the Exchange or EDGA), and will be deemed to
waive, and agree not to assert by way of motion, as a defense or
otherwise in any such suit, action or proceeding, any claims that it is
not personally subject to the jurisdiction of the Commission, that such
suit, action or proceeding is an inconvenient forum or that the venue
of such suit, action or proceeding is improper, or that the subject
matter thereof may not be enforced in or by such courts or agency.
    In addition, the Resolution will provide that for so long as EGD
directly or indirectly controls the Exchange, ISE, or EDGA: (a) The
books, records, officers, directors (or equivalent) and employees of
EGD will be deemed to be the books, records, officers, directors and
employees of the Exchange, ISE, or EDGA for purposes of and subject to
oversight pursuant to the Exchange Act to the extent that such books
and records are related to, or such officers, directors (or equivalent)
and employees are involved in, the activities of the Exchange, ISE, or
EDGA; and (b) EGD's books and records related to the activities of the
Exchange, ISE, or EDGA will at all times be made available for
inspection and copying by the Commission, the Exchange, ISE, or EDGA
subject, where necessitated by Swiss law, to the FINMA procedure.
    Additionally, the Resolution would provide that EGD shall, to the
extent it is involved in the activities of the Exchange, ISE, or EDGA,
give due regard to the preservation of the independence of the self-
regulatory function of the Exchange, ISE, and EDGA and to their
respective obligations to investors and the general public, and shall
not take any actions that would interfere with the effectuation of any
decisions by the board of directors of the Exchange, ISE, or EDGA
relating to their respective regulatory responsibilities (including
enforcement and disciplinary matters) or that would interfere with the
ability of the Exchange, ISE, or EDGA to carry out their respective
responsibilities under the Exchange Act. The Resolution also would
provide that the EGD board members, including each person who becomes a
board member, would consent to the requirements and that EGD would take
reasonable steps to cause its officers and employees to agree to the
requirements.
    Furthermore, the Resolution would provide that, to the fullest
extent permitted by applicable law, all confidential information that
shall come into the possession of EGD pertaining to the self-regulatory
function of the Exchange, ISE, or EDGA contained in the books and
records of the Exchange, ISE, or EDGA shall: (a) Not be made available
to any persons other than to those officers, directors (or equivalent),
employees and agents of EGD that have a reasonable need to know the
contents thereof; (b) be retained in confidence by EGD and the
officers, directors (or equivalent), employees, and agents of EGD; and
(c) not be used for any commercial purposes. In addition, the
Resolution would provide that the terms regarding such confidential
information shall not be interpreted so as to limit or impede: (i) The
rights of the Commission, the Exchange, ISE, or EDGA to have access to
and examine such confidential information pursuant to the U.S. federal
securities laws and the rules and regulations thereunder; or (ii) the
ability of any officers, directors, employees, or agents of EGD to
disclose such confidential information to the Commission, the Exchange,
ISE, or EDGA subject, where necessitated by Swiss law, to the FINMA
procedure. The Resolution would also provide that the EGD board
members, including each person who becomes a board member, would
consent to these requirements regarding confidential information and
that EGD would take reasonable steps to cause its officers, employees,
and agents to agree to the requirements.
    The Resolution would provide that the board members of EGD would,
in discharging his or her responsibilities, to the extent such board
member is involved in the activities of the Exchange, ISE, or EDGA and
to the fullest extent permitted by applicable law, take into
consideration the effect that EGD's actions would have on the ability
of: (a) The Exchange, ISE, and EDGA to carry out their respective
responsibilities under the Exchange Act; and (b) the Exchange, ISE,
EDGA, and EGD: (i) To engage in conduct that fosters and does not
interfere with the ability of the Exchange, ISE, EDGA, or EGD to
prevent fraudulent and manipulative acts and practices in the
securities markets; (ii) to promote just and equitable principles of
trade in the securities markets; (iii) to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities; (iv) to remove impediments to and perfect the mechanisms
of a free and open market in securities and a U.S. national securities
market system; and (v) in general, to protect investors and the public
interest.
    Finally, the Resolution will provide that EGD will provide
notification of certain ownership levels and that EGD will take
reasonable steps to cause ISE Holdings and Direct Edge to be in
compliance with their respective ownership limits and voting limits.
The Resolution would provide that before any amendment to or repeal of
any provision of the Resolution, the Agreement and Consent, or any
action by EGD that would have the effect of amending or repealing any
provision of the Resolution or the Agreement and Consent becomes
effective, it must be submitted to the board of directors of the
Exchange, ISE, and EDGA, and, if it must be filed with, or filed with
and approved by, the Commission before it may become effective, under
Section 19 of the Exchange Act and the rules promulgated thereunder,
then it will not become effective until filed with, or filed with and
approved by, the Commission, as the case may be.
Agreement and Consent
    EGD will also sign an Agreement and Consent with Eurex Z[uuml]rich
establishing the FINMA procedure, which will ensure that EGD will (1)
cooperate with the Commission, the Exchange, ISE, and EDGA; (2) comply
with U.S. federal securities laws; (3) comply with the inspection and
copying of EGD's books and records; (4) agree that EGD's books,
records, officers, directors and employees be deemed to be those of the
Exchange, ISE, or EDGA; (5) maintain confidentiality of information
pertaining to the self-regulatory function of the Exchange, ISE, or
EDGA; (6) preserve the independence of the self-regulatory function of
the Exchange, ISE, and EDGA; (7) take reasonable steps to cause EGD's
officers, directors and employees to consent to the applicability to
him or her of the Resolution; and (8) take reasonable steps to cause
EGD's agents to cooperate with the Commission, the Exchange, ISE, or
EDGA. The form of the Agreement and Consent is attached hereto as
Exhibit 5C.
    Finally, the Agreement and Consent would provide that before any
amendment to or repeal of any provision of the Agreement and Consent or
any action by EGD that would have the effect of amending or repealing
any provision of the Agreement and Consent becomes effective, it must
be submitted to the board of directors of the Exchange, ISE, and EDGA,
and, if it must be filed with, or filed with and approved by, the
Commission before it may become effective, under Section 19 of the
Exchange Act and the rules promulgated thereunder, then it will not
become effective until filed with, or filed with and approved by, the
Commission, as the case may be.

Bylaws \17\
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    \17\ On January 17, 2012, the Commission approved a proposed
rule change by the Exchange relating to a corporate transaction in
which Deutsche B[ouml]rse and NYSE Euronext would become
subsidiaries of Alpha Beta Netherlands Holding N.V. (the
``Combination''). See Securities Exchange Act Release No. 66171
(January 17, 2012), 77 FR 3297 (January 23, 2012) (SR-EDGX-2011-33).
As part of that proposed rule change, the Exchange submitted
proposed amendments to the Bylaws. The Commission's approval was
conditioned on the Combination being consummated. The Combination
was not consummated and, therefore, the proposed rule change,
including the proposed amendments to the Bylaws, did not become
effective.
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    The Certificate currently restricts any person, either alone or
together with its related persons, from having voting control, either
directly or indirectly, over more than 20% of the outstanding capital
stock of ISE Holdings and from directly or indirectly owning of record
or beneficially more than 40% of the outstanding capital stock of ISE
Holdings (or in the case of any ISE member [sic], acting alone or
together with its related persons, from directly or indirectly owning
of record or beneficially more than 20% of the outstanding capital
stock of ISE Holdings).\18\ If a person were to obtain a voting or
ownership interest in excess of the voting or ownership restrictions
without obtaining the approval of the Commission, the shares of ISE
Holdings would automatically transfer to the Trust. The Certificate and
the Bylaws provide that the board of directors of ISE Holdings may
waive these voting and ownership restrictions in an amendment to the
Bylaws if it makes certain findings and the amendment to the Bylaws has
been filed with, and approved by, the Commission under Section 19(b) of
the Exchange Act.\19\
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    \18\ See Certificate, Article FOURTH, Section III.
    \19\ 15 U.S.C. 78s(b).
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    Acting pursuant to this waiver provision, the board of directors of
ISE Holdings has approved the amendment to the Bylaws set forth in
Exhibit 5D (the ``Bylaws Amendment'') in order to permit EGD to
indirectly own 50% of the outstanding common stock of ISE Holdings as
of and after consummation of the Transaction. In adopting such
amendment, the board of directors of ISE Holdings made the necessary
determinations and approved the submission of the proposed rule change
to the Commission. The Exchange will continue to operate and regulate
its market and members exactly as it has done prior to the Transaction.
In addition, the Transaction will not impair the ability of ISE
Holdings, the Exchange, ISE, EDGA, or any facility thereof, to carry
out their respective functions and responsibilities under the Exchange
Act. Moreover, the Transaction will not impair the ability of the
Commission to enforce the Exchange Act. The Exchange will operate in
the same manner following the Transaction as it operates today. Thus,
the Commission will continue to have plenary regulatory authority over
the Exchange, as is the case currently with the Exchange. The ISE
Holdings board of directors also determined that ownership of ISE
Holdings by EGD is in the best interests of ISE Holdings, its
shareholders, the Exchange, ISE, and EDGA. In addition, neither EGD,
nor any of its related persons, is (1) an ISE Member; (2) an EDGA
Member; (3) an EDGX Member; or (4) subject to any ``statutory
disqualification.'' The Exchange is requesting approval by the
Commission of the Bylaws Amendment in order to allow the Transaction to
take place.
2. Statutory Basis
    The Exchange believes that this filing is consistent with Section
6(b) \20\ of the Exchange Act in general, and furthers the objectives
of Section 6(b)(1) \21\ in particular, in that it enables the Exchange
to be so organized as to have the capacity to be able to carry out the
purposes of the Exchange Act and to comply, and to enforce compliance
by its exchange members and persons associated with its exchange
members, with the provisions of the Exchange Act, the rules and
regulations thereunder, and the rules of the Exchange. Moreover, the
Transaction will not impair the ability of the Commission to enforce
the Exchange Act. The Exchange will operate in the same manner
following the Transaction as it operates today. Thus, the Commission
will continue to have plenary regulatory authority over the Exchange,
as is the case currently with the Exchange. The proposed rule change is
consistent with and will facilitate an ownership structure that will
continue to provide the Commission with appropriate oversight tools to
ensure that the Commission will have the ability to enforce the
Exchange Act with respect to the Exchange, its direct and indirect
parents, and EGD, including its directors, officers, employees and
agents to the extent they are involved in the activities of the
Exchange.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(1).
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    The Exchange also believes that this filing furthers the objectives
of Section 6(b)(5) \22\ of the Exchange Act because the proposed rule
change summarized herein would be consistent with and facilitate a
governance and regulatory structure that is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to, and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest. Specifically, the Exchange
believes that the proposed rule change will provide the Commission and
the Exchange with access to necessary information that will allow the
Exchange to efficiently and effectively enforce compliance with the
Exchange Act, as well as allow the Commission to provide proper
oversight, which will ultimately promote just and equitable principles
of trade and protect investors. In addition, the Exchange believes the
proposed rule change will preserve the independence of the Exchange's
self-regulatory function and ensure that the Exchange will be able to
obtain any information it needs in order to detect and deter any
fraudulent and manipulative acts in its marketplace and carry out its
regulatory responsibilities under the Exchange Act.
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    \22\ 15 U.S.C. 78f(b)(5).
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    Finally, the Exchange is not proposing any changes to the
Exchange's operational or trading structure in connection with the
Transaction. Instead, the Exchange represents that the proposed rule
change consists of administrative amendments to ISE Holding's corporate
documents and the Resolution and the Agreement and Consent relating to
EGD. The Trust, the Resolution, and the Bylaws are similar to corporate
documents that were previously approved by the Commission.\23\
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    \23\ See supra notes 1 and 2.
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    The Exchange 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 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
    (A) By order approve or disapprove 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 email to<EMAIL_ADDRESS>Please include
File Number SR-EDGX-2012-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-EDGX-2012-07. 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-EDGX-2012-07 and should be
submitted on or before April 5, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6256 Filed 3-14-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 3, 2008 (Volume 73, Number 171)]
[Notices]
[Page 51545-51546]
[DOCID:fr03se08-138]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58424; File No. SR-OPRA-2008-03]

Options Price Reporting Authority; Notice of Filing and Immediate
Effectiveness of Proposed Amendment to the Options Price Reporting
Authority's Academic Waiver Policy

August 26, 2008.
    Pursuant to Section 11A of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that
on August 11, 2008, the Options Price Reporting Authority (``OPRA'')
submitted to the Securities and Exchange Commission (``Commission'') an
amendment to the Plan for Reporting of Consolidated Options Last Sale
Reports and Quotation Information (``OPRA Plan'').\3\ The proposed
amendment would revise OPRA's ``Academic Waiver Policy.'' \4\ The
Commission is publishing this notice to solicit comments from
interested persons on the proposed OPRA Plan amendment.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The OPRA Plan is a national market system plan approved by
the Commission pursuant to Section 11A of the Act and Rule 608
thereunder (formerly Rule 11Aa3-2). See Securities Exchange Act
Release No. 17638 (March 18, 1981), 22 S.E.C. Docket 484 (March 31,
1981). The full text of the OPRA Plan is available at http://
www.opradata.com.
    The OPRA Plan provides for the collection and dissemination of
last sale and quotation information on options that are traded on
the participant exchanges. The seven participants to the OPRA Plan
are the American Stock Exchange LLC, the Boston Stock Exchange,
Inc., the Chicago Board Options Exchange, Incorporated, the
International Securities Exchange, LLC, the NASDAQ Stock Market LLC,
the NYSE Arca, Inc., and the Philadelphia Stock Exchange, Inc.
    \4\ OPRA has not previously filed the Policy pursuant to Rule
608 of Regulation NMS under the Act, and OPRA is proposing to
formalize the Policy as part of its national market system plan by
so filing it.
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I. Description and Purpose of the Plan Amendment

    Pursuant to its Academic Waiver Policy, OPRA waives its fees for
universities that wish to use its data for research and educational
instruction purposes. An OPRA academic waiver is only for OPRA's own
data fees, and only for devices or User IDs used by students and
faculty for research purposes and in classroom environments. As is
stated in the Policy, even if a university receives an academic waiver,
the university must execute an OPRA Professional Subscriber Agreement
and, if the university will control entitlement of its devices or User
IDs, the university must also execute an Indirect Circuit Connection
Rider, describe its use of OPRA data and its entitlement control
process on ``Exhibit A'' to the Rider, and make reports to OPRA in
accordance with the Rider of its devices or User IDs that are entitled
to receive OPRA data.
    The purpose of the revisions of OPRA's Academic Waiver Policy is,
in general, to update the language of the Policy and emphasize certain
aspects of the Policy. The proposed revisions do not change the Policy
in any fundamental respect.
    Among the changes that OPRA is proposing in order to update the
language of the Policy are changes to eliminate a reference to ``annual
administration fees'' (since OPRA's fees do not include an annual
administration fee) and to incorporate references to ``User IDs'' in
addition to ``devices'' (since OPRA permits its Vendors, and its
Professional Subscribers that pay ``device-based fees'' and control
their own enablement processes, to make reports to OPRA with respect to
the ``User IDs'' that they enable for access to OPRA data as an
alternative to the ``devices'' that they enable).
    Among the aspects of the Policy that are emphasized in the revised
Policy are that academic institutions that control their own enablement
processes must make reports to OPRA with respect to the devices or User
IDs that they have enabled for OPRA data, just as other OPRA
Subscribers that control their own enablement process must.
    The text of the proposed amendment to the OPRA Plan is available at
OPRA, the Commission's Public Reference Room, and http://opradata.com.

II. Implementation of the OPRA Plan Amendment

    Pursuant to paragraph (b)(3)(i) of Rule 608 under the Act,\5\ OPRA
designated this amendment as establishing or changing a fee or other
charge collected on behalf of all of the OPRA participants in
connection with access to, or use of, OPRA facilities, and pursuant to
(b)(3)(iii) of Rule 608 under the Act,\6\ OPRA designated this
amendment as one involving solely technical or ministerial matters
thereby qualifying the amendment for effectiveness upon filing. OPRA
states that it will implement the revised form of the Academic Waiver
Policy upon filing with the Commission.
---------------------------------------------------------------------------

    \5\ 17 CFR 242.608(b)(3)(i).
    \6\ 17 CFR 242.608(b)(3)(iii).
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    The Commission may summarily abrogate the amendment within sixty
days of its filing and require refiling and approval of the amendment
by Commission order pursuant to Rule 608(b)(2) under the Act \7\ if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or the
maintenance of fair and orderly markets, to remove impediments to, and
perfect the mechanisms of, a national market system, or otherwise in
furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \7\ 17 CFR 242.608(b)(2).
---------------------------------------------------------------------------

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed OPRA
Plan amendment 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

No. SR-OPRA-2008-03 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OPRA-2008-03. 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 plan amendment that are
filed with the Commission, and all written communications relating to
the proposed plan amendment 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 Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of OPRA. 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-OPRA-2008-03 and should be
submitted on or before September 24, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(29).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-20316 Filed 9-2-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Rules and Regulations]
[Pages 20242-20243]
[FR Doc No: 2011-8466]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2010-0743; FRL-9279-1]

Revisions to the California State Implementation Plan; Sacramento
Metropolitan Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is finalizing approval of a revision to the Sacramento
Metropolitan Air Quality Management District's portion of the
California State Implementation Plan (SIP). This revision was proposed
in the Federal Register on October 5, 2010, and concerns emissions of
oxides of nitrogen (NOX) from the landfill gas flare at the
Kiefer Landfill in Sacramento, California. We are approving portions of
a Permit to Operate that limit NOX emissions from this
facility under the Clean Air Act as amended in 1990 (CAA or the Act).

DATES: This rule is effective on May 12, 2011.

ADDRESSES: EPA has established docket number EPA-R09-OAR-2010-0743 for
this action. Generally, documents in the docket for this action are
available electronically at http://www.regulations.gov or in hard copy
at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While
all documents in the docket are listed at http://www.regulations.gov,
some information may be publicly available only at the hard copy
location (e.g., copyrighted material, large maps, multi-volume
reports), and some may not be available in either location (e.g.,
confidential business information (CBI)). To inspect the hard copy
materials, please schedule an appointment during normal business hours
with the contact listed in the FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Mae Wang, EPA Region IX, (415) 947-
4124<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and
``our'' refer to EPA.

Table of Contents

I. Proposed Action
II. Public Comments and EPA Responses
III. EPA Action
IV. Statutory and Executive Order Reviews

I. Proposed Action

    On October 5, 2010 (75 FR 61369), EPA proposed to approve portions
of the Permit to Operate for the Kiefer Landfill into the California
SIP. The submitted portions of the Permit to Operate for the Kiefer
Landfill (Permit No. 17359), which was issued by the Sacramento
Metropolitan Air Quality Management District (SMAQMD), relate to the
control of NOX emissions from the air pollution control
landfill gas flare. The SMAQMD originally issued Permit No. 17359 on
August 7, 2006, and later revised it on November 13, 2006. We are
proposing to act on the submitted portions of Permit No. 17359, as
revised on November 13, 2006. The California Air Resources Board (CARB)
submitted this SIP revision to EPA on July 11, 2007.
    We proposed to approve the submitted conditions of SMAQMD Permit
No. 17359 into the SMAQMD portion of the California SIP because we
determined that they complied with the relevant CAA requirements for
SIP approval. Our proposed action contains more information on the
submitted portions of the permit and our evaluation.

II. Public Comments and EPA Responses

    EPA's proposed action provided a 30-day public comment period.
During this period, we did not receive any comments.

III. EPA Action

    No comments were submitted that change our assessment that the
submitted conditions of SMAQMD Permit No. 17359 comply with the
relevant CAA requirements. Therefore, as authorized in section
110(k)(3) of the Act, EPA is fully approving these conditions into the
California SIP. Specifically, we are approving permit conditions 1, 6,
10, 11, 16, 20, 27, 28, and 29, or portions thereof, which together
establish an enforceable NOX limitation satisfying RACT for
the air pollution control landfill gas flare at the Kiefer Landfill.
Please see the docket for a copy of the complete submitted document.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve State choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves State law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by State
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement

Act of 1995 (15 U.S.C. 272 note) because application of those
requirements would be inconsistent with the CAA; and
     Does not provide EPA with the discretionary authority to
address disproportionate human health or environmental effects with
practical, appropriate, and legally permissible methods under Executive
Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the State, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by June 13, 2011. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements (see section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Reporting and recordkeeping requirements.

    Dated: February 15, 2011.
Jared Blumenfeld,
Regional Administrator, Region IX.

    Part 52, Chapter I, Title 40 of the Code of Federal Regulations is
amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart F--California

0
2. Section 52.220 is amended by adding paragraph (c)(382) to read as
follows:

Sec.  52.220  Identification of plan.

* * * * *
    (c) * * *
    (382) New and amended regulations for the following APCDs were
submitted on July 11, 2007, by the Governor's designee.
    (i) Incorporation by reference.
    (A) Sacramento Metropolitan Air Quality Management District.
    (1) Permit to Operate for the Kiefer Landfill (``Permit to Operate
No. 17359 (Rev01)''), as revised on November 13, 2006.
* * * * *
[FR Doc. 2011-8466 Filed 4-11-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 122 (Friday, June 24, 2016)]
[Notices]
[Pages 41371-41373]
[FR Doc No: 2016-14953]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2016-0023]

Pipeline Safety: Public Workshop on Underground Natural Gas
Storage Safety

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

ACTION: Notice of public meeting.

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

SUMMARY: This notice announces a public meeting to solicit input and
obtain background information concerning underground natural gas
storage safety. PHMSA and the National Association of Pipeline Safety
Representatives (NAPSR) are co-sponsoring this one-day workshop. The
workshop will bring federal and state regulators, emergency responders,
industry, and interested members of the public together to participate
in understanding and shaping the future for maintaining the safety of
underground natural gas storage facilities.
    PHMSA and NAPSR recognize that the October, 2015, Southern
California Gas Company's (SoCal Gas) Aliso Canyon underground natural
gas storage

facility leak on Well SS25 located in the Porter Ranch area near Los
Angeles, California, has drawn concerns regarding natural gas storage
well safety and the environmental effects of an incident. Currently,
throughout the United States, approximately 400 interstate and
intrastate underground natural gas storage facilities are operating
with more than four trillion cubic feet of natural gas working
capacity.

DATES: The public workshop will be held on July 14, 2016. Name badge
pick up and on-site registration will be available starting at 7:30
a.m., with the workshop taking place from 8:00 a.m. until approximately
4:30 p.m. mountain time. Online preregistration for the workshop is
available until July 10, 2016. Refer to the meeting Web site for the
latest information about the meeting including agenda and the webcast.
http://primis.phmsa.dot.gov/meetings/MtgHome.mtg?mtg=115. Presentations
and a recording of proceedings will be available within 30 days after
the event.

ADDRESSES: The workshop will be held at the Renaissance Boulder
Flatiron Hotel located at 500 Flatiron Boulevard, Broomfield, Colorado
80021. The hotel can be contacted at 1-303-464-8400.
    Registration: Members of the public may attend this free workshop.
Please note that the public workshop will also be webcast for those who
cannot attend in person. To help assure that adequate space is
provided, attendees, both in person and by webcast, should register in
advance at the PHMSA public meeting Web site at: http://primis.phmsa.dot.gov/meetings/MtgHome.mtg?mtg=115. Onsite registration
will also be available for those attending in person. Presentations
will also be available online at the meeting page Web site within 30
days following the meeting.
    Comments: Members of the public may submit written comments either
before or after the workshop. Comments should reference Docket No.:
PHMSA-2016-0023. Comments may be submitted in the following ways:
     E-Gov Web site: http://www.regulations.gov. This site
allows the public to enter comments on any Federal Register notice
issued by any agency. Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management System, U.S. Department of
Transportation (DOT), 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590.
     Hand Delivery: DOT Docket Management System, Room W12-140,
on the ground floor of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC between 9:00 a.m. and 5:00 p.m., Monday through Friday,
except Federal holidays.
    Instructions: Identify the docket number (PHMSA-2016-0023) at the
beginning of your comments. If you submit your comments by mail, submit
two copies. If you wish to receive confirmation that PHMSA has received
your comments, include a self-addressed stamped postcard. Internet
users may submit comments at http://www.regulations.gov.

    Note:  Comments will be posted without changes or edits to
http://www.regulations.gov including any personal information
provided. Please see the Privacy Act Statement below for additional
information.

Privacy Act Statement

    Anyone may search the electronic form of all comments received for
any of our dockets. You may review DOT's complete Privacy Act Statement
in the Federal Register published April 11, 2000, (65 FR 19476) or
visit http://dms.dot.gov.

Information on Services for Individuals With Disabilities

    For information on facilities or services for individuals with
disabilities, or to request special assistance at the meeting, please
contact Kenneth Lee, Engineering and Research Division, at (202) 366-
2694 or<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: Kenneth Lee, Engineering and Research
Division, at<PHONE_NUMBER> or<EMAIL_ADDRESS>about the subject
matter in this notice.

SUPPLEMENTARY INFORMATION: PHMSA and NAPSR recognize that many of the
existing underground natural gas storage facilities across the country
have wells that have similar characteristics to the SoCal Gas Well
SS25. Many, like Well SS25, are over 50 years old. They may flow
through both the tubing and production casing with no subsurface safety
valve or isolation zone with completion fluid to offset the high
pressure effects of a possible casing corrosion leak. Many were
originally constructed using production techniques such as having pipe
sections that were joined by threaded couplings, not girth welds. They
typically do not have a corrosion resistant internal or external
protective coating. The workshop will have discussions on the aging
effects on well safety including safety practices in well design,
operations, and maintenance measures including downhole assessments and
the type of preventative and mitigative measures to implement.
Underground natural gas storage wells have operating pressures from
about 200 pounds per square inch (psi) to 4,500 psi. By comparison, the
maximum U.S. pipeline pressures are a maximum of about 2,000 psi and
most are below 1,000 psi. Unlike line pipe, which for natural gas
pipeline operations, has a design factor of 0.72 or less, most wells
were not installed with consistent standards such as design safety
factors to contain the well pressure.
    On February 5, 2016, (81 FR 6334) PHMSA issued Advisory Bulletin
ADB-2016-02. The advisory bulletin recommended that operators of
underground natural gas storage facilities review their operating,
maintenance, and emergency response activities to ensure that the
integrity of underground natural gas storage facilities is properly
maintained. This bulletin informed operators about recommended
practices and urged operators to take all necessary actions to prevent
and mitigate breach of integrity, leaks, or failures at their
underground natural gas storage facilities and to ensure the safety of
the public and operating personnel and to protect the environment.
Operators were advised to:
    (1) Verify that the pressure required to inject intended natural
gas volumes does not exceed the design pressure limits of the
reservoir, wells, wellheads, piping, casing, tubing, or associated
facilities;
    (2) Monitor all wells for the presence of annular gas or liquids on
a periodic basis;
    (3) Inspect the wellhead assembly and attached pipelines for each
of the wells used;
    (4) Conduct periodic functional tests of all surface and subsurface
safety valve systems and wellhead pipeline isolation valve(s) for
proper function and ability to shut-off or isolate the well and
remediate improperly functioning valves;
    (5) Perform risk assessments in a manner that reviews, at a
minimum, the API RP 1171 criteria to evaluate the need for subsurface
safety valves on new, removed, or replaced tubing strings or production
casing;
    (6) Conduct ongoing assessments for the verification and
demonstration of the mechanical integrity of each well and related
piping and equipment;
    (7) Develop and implement a corrosion monitoring and integrity
evaluation program for piping, wellhead, casing, and tubing including
the usage of the appropriate well log evaluations;

    (8) Develop and implement procedures for the evaluation of well and
attendant storage facilities that include analysis of facility flow
erosion, hydrate potential, individual facility component capacity and
fluid disposal capability at intended gas flow rates and pressures, and
analysis of the specific impacts that the intended operating pressure
range could have on the corrosive potential of fluids in the system;
    (9) Identify potential threats and hazards associated with
operation of the underground storage facility;
    (10) Perform ongoing verification and demonstration of the
integrity of the underground storage reservoir or cavern using
appropriate monitoring techniques for integrity changes such as the
monitoring of pressure and periodic pressure surveys, inventory
(injection and withdrawal of all products), product levels, cavern
subsidence, and the findings from adjacent production and water wells,
and observation wells;
    (11) Ensure that emergency procedures are reviewed, conducted, and
updated at least annually; and
    (12) Ensure records of the processes, procedures, assessments,
reassessments, and mitigation measures are maintained for the life of
the storage well.
    The Aliso Canyon incident has highlighted the concern about the
current lack of minimum federal regulations related to the downhole
operation of underground natural gas storage wells. The full extent of
the damage, both to people and the environment, caused by the Aliso
Canyon incident will not be known until much later.
    This workshop is a forum for PHMSA to collect input regarding
safety concerns of the public and the challenges industry faces in
conducting daily operations, maintenance, integrity verification, well
monitoring, threat and hazard identification, assessments, remediation,
site security, emergency response and preparedness, and recordkeeping.

    Issued in Washington, DC, on June 20, 2016, under authority
delegated in 49 CFR 1.97.
Alan K. Mayberry,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. 2016-14953 Filed 6-23-16; 8:45 am]
 BILLING CODE 4910-60-P