[Federal Register Volume 76, Number 193 (Wednesday, October 5, 2011)]
[Notices]
[Pages 61764-61768]
[FR Doc No: 2011-25677]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 29824; File No. 812-13869]

Principal Funds, Inc., et al.; Notice of Application

September 29, 2011.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order pursuant to (a) section
6(c) of the Investment Company Act of 1940 (``Act'') granting an
exemption from sections 18(f) and 21(b) of the Act; (b) section
12(d)(1)(J) of the Act granting an exemption from section 12(d)(1) of
the Act; (c) sections 6(c) and 17(b) of the Act granting an exemption
from sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d)
section 17(d) of the Act and rule 17d-1 under the Act to permit certain
joint arrangements.

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SUMMARY OF THE APPLICATION:  Applicants request an order that would
permit certain registered open-end management investment companies to
participate in a joint lending and borrowing facility.

APPLICANTS:  Principal Funds, Inc. (``PFI''), Principal Variable
Contracts Funds, Inc. (``PVC,'' each of PFI and PVC a ``Company'' and
collectively the ``Companies''), and Principal Management Corporation
(``PMC'').

FILING DATES:  The application was filed on February 16, 2011, and
amended on August 12, 2011. Applicants have agreed to file an amendment
during the notice period, the substance of which is reflected in this
notice.

HEARING OR NOTIFICATION OF HEARING:  An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on October 24, 2011, and should be accompanied by proof of service
on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090; Applicants: c/o Principal
Financial Group, 680 8th Street, Des Moines, Iowa 50392.

FOR FURTHER INFORMATION CONTACT: Bruce R. MacNeil, Senior Counsel, at
(202) 551-6817 or Daniele Marchesani, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's website by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. Each Company is organized as a Maryland corporation and is
registered under the Act as an open-end management investment company.
Each Company consists of multiple series (``Funds''). The Funds are
offered directly to the public as well as to certain separate accounts
of Principal Life Insurance Company (``Principal Life''). PMC, an Iowa
corporation, is an indirect wholly-owned subsidiary of Principal
Financial Group, Inc., the ultimate parent entity of Principal Life.
PMC is registered as an investment adviser under the Investment
Advisers Act of 1940 (``Advisers Act'') and serves as the investment
manager to the Funds. As investment manager, PMC provides investment
advisory and certain corporate administrative services to the Funds.\1\
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    \1\ Applicants request that the relief apply to: (a) Any Funds;
(b) any other registered open-end investment company or series
thereof (included in the term ``Funds'') for which PMC or a person
controlling, controlled by, or under common control (within the
meaning of section 2(a)(9) of the Act) with PMC serves as investment
adviser; and (c) any successor entity to PMC. The term ``successor''
is limited to entities that result from a reorganization into
another jurisdiction or a change in the type of business
organization. All entities that currently intend to rely on the
requested relief are named as applicants. Any other entity that
relies on the order in the future will comply with the terms and
conditions set forth in the application.
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    2. At any particular time, while some Funds are making short-term
loans to banks or other entities by entering into repurchase
agreements, or purchasing other short-term instruments, either directly
or through the Joint Account (as defined below), other Funds may need
to borrow money from the same or similar banks for temporary purposes
to satisfy redemption requests, to cover unanticipated cash shortfalls
such as a trade ``fail'' in which cash payment for a security sold by a
Fund has been delayed, or for other temporary purposes.\2\
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    \2\ Each Fund may deposit uninvested cash balances in a joint
trading account administered by PMC (the ``Joint Account'') for
purposes of investing those balances in short-term instruments to
the extent consistent with each participating Fund's investment
objectives, policies and restrictions. In addition, under a ``Cash
Management Program,'' PMC may invest a Fund's available cash and
cash flows from investments in the Fund in stock index futures
contracts or in the Joint Account. Finally, the Companies, on behalf
of certain Funds, have entered into a credit agreement with certain
lenders where such Funds have access to a joint line of credit (the
``Credit Agreement'').
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    3. When a Fund borrows money from a bank or under the Credit
Agreement, it pays interest on the loan at a rate that is higher than
the rate that is earned by other (non-borrowing) Funds on investments
in repurchase agreements or other short-term instruments of the same
maturity as the bank loan or loan under the Credit Agreement.
Applicants assert that this differential represents

the profit earned by the lender on loans and is not attributable to any
material difference in the credit quality or risk of such transactions.
    4. The Companies seek to enter into master interfund lending
agreements (``Interfund Lending Agreements'') with each other on behalf
of the Funds that would permit each Fund to lend money directly to and
borrow money directly from other Funds through a credit facility for
temporary purposes (an ``Interfund Loan''). The Companies' money market
Funds will not participate as borrowers in the proposed credit
facility. Applicants state that the proposed credit facility would both
reduce the Funds' potential borrowing costs and enhance the ability of
the lending Funds to earn higher rates of interest on their short-term
lendings. Although the proposed credit facility would reduce the Funds'
need to borrow from banks, the Funds would be free to establish and
maintain committed lines of credit or other borrowing arrangements with
unaffiliated banks.
    5. Applicants anticipate that the proposed credit facility would
provide a borrowing Fund with significant savings at times when the
cash position of the borrowing Fund is insufficient to meet temporary
cash requirements. This situation could arise when shareholder
redemptions exceed anticipated volumes and certain Funds have
insufficient cash on hand to satisfy such redemptions. When the Funds
liquidate portfolio securities to meet redemption requests, they often
do not receive payment in settlement for up to three days (or longer
for certain foreign transactions). However, redemption requests
normally are effected immediately. The proposed credit facility would
provide a source of immediate, short-term liquidity pending settlement
of the sale of portfolio securities.
    6. Applicants also anticipate that a Fund could use the proposed
credit facility when a sale of securities ``fails'' due to
circumstances beyond the Fund's control, such as a delay in the
delivery of cash to the Fund's custodian or improper delivery
instructions by the broker effecting the transaction. ``Sales fails''
may present a cash shortfall if the Fund has undertaken to purchase a
security using the proceeds from securities sold. Alternatively, the
Fund could ``fail'' on its intended purchase due to lack of funds from
the previous sale, resulting in additional cost to the Fund, or sell a
security on a same-day settlement basis, earning a lower return on the
investment. Use of the proposed credit facility under these
circumstances would enable the Fund to have access to immediate short-
term liquidity.
    7. While bank borrowings could generally supply needed cash to
cover unanticipated redemptions and sales fails, under the proposed
credit facility, a borrowing Fund would pay lower interest rates than
those that would be payable under short-term loans offered by banks. In
addition, Funds making short-term cash loans directly to other Funds
would earn interest at a rate higher than they otherwise could obtain
from investing their cash in repurchase agreements or purchasing shares
of a money market fund. Thus, applicants assert that the proposed
credit facility would benefit both borrowing and lending Funds.
    8. The interest rate to be charged to the Funds on any Interfund
Loan (the ``Interfund Loan Rate'') would be the average of the ``Repo
Rate'' and the ``Bank Loan Rate,'' both as defined below. The Repo Rate
for any day would be the highest rate available to a lending Fund,
directly or through the Joint Account, from investment in overnight
repurchase agreements. The Bank Loan Rate for any day would be
calculated by PMC each day an Interfund Loan is made according to a
formula established by each Fund's board of directors (the ``Board'')
and intended to approximate the lowest interest rate at which bank
short-term loans would be available to the Funds. The formula would be
based upon a publicly available rate (e.g., federal funds plus 25 basis
points) and would vary with this rate so as to reflect changing bank
loan rates. The initial formula and any subsequent modifications to the
formula would be subject to the approval of each Fund's Board. In
addition, each Fund's Board would periodically review the continuing
appropriateness of using the formula to determine the Bank Loan Rate,
as well as the relationship between the Bank Loan Rate and current bank
loan rates that would be available to the Funds.
    9. The proposed credit facility would be administered by one or
more investment, administrative and fund accounting personnel from PMC,
a portfolio manager for the Companies' money market Funds, which are
sub-advised by Principal Global Investors, LLC, an affiliate of PMC,
and a representative of the corporate treasury of Principal Life
(collectively, the ``Credit Facility Team''). No other portfolio
manager of any Fund will serve as a member of the Credit Facility Team.
Under the proposed credit facility, the portfolio managers for each
participating Fund could provide standing instructions to participate
daily as a borrower or lender. The Credit Facility Team on each
business day would collect data on the uninvested cash and borrowing
requirements of all participating Funds. Once it had determined the
aggregate amount of cash available for loans and borrowing demand, the
Credit Facility Team would allocate loans among borrowing Funds without
any further communication from the portfolio managers of the Funds
(other than the money market Fund portfolio manager acting in his or
her capacity as a member of the Credit Facility Team). All allocations
made by the Credit Facility Team will require the approval of at least
one member of the Credit Facility Team, who is a high level employee,
other than the money market Fund portfolio manager. Applicants
anticipate that there typically will be far more available uninvested
cash each day than borrowing demand. Therefore, after the Credit
Facility Team has allocated cash for Interfund Loans, any remaining
cash will be invested by PMC in the Joint Account or pursuant to the
Cash Management Program in accordance with the instructions of the
portfolio managers.
    10. The Credit Facility Team would allocate borrowing demand and
cash available for lending among the Funds on what the Credit Facility
Team believes to be an equitable basis, subject to certain
administrative procedures applicable to all Funds, such as the time of
filing requests to participate, minimum loan lot sizes, and the need to
minimize the number of transactions and associated administrative
costs. To reduce transaction costs, each loan normally would be
allocated in a manner intended to minimize the number of participants
necessary to complete the loan transaction. The method of allocation
and related administrative procedures would be approved by each Fund's
Board, including a majority of directors who are not ``interested
persons'' of the Fund, as that term is defined in section 2(a)(19) of
the Act (``Independent Directors''), to ensure that both borrowing and
lending Funds participate on an equitable basis.
    11. PMC would: (a) Monitor the Interfund Loan Rate and the other
terms and conditions of the loans; (b) limit the borrowings and loans
entered into by each Fund to ensure that they comply with the Fund's
investment policies and limitations; (c) ensure equitable treatment of
each Fund; and (d) make quarterly reports to each Fund's Board
concerning any transactions by the Funds under the proposed credit
facility and the Interfund Loan Rate charged.

    12. PMC, through the Credit Facility Team, would administer the
proposed credit facility as a disinterested fiduciary as part of its
duties under the relevant advisory or administrative contract with each
Fund and would receive no additional fee as compensation for its
services in connection with the administration of the proposed credit
facility. PMC may collect standard pricing, record keeping, bookkeeping
and accounting fees associated with the transfer of cash and/or
securities in connection with repurchase and lending transactions
generally, including transactions effected through the proposed credit
facility. Such fees would be no higher than those applicable for
comparable bank loan transactions.
    13. No Fund may participate in the proposed credit facility unless:
(a) The Fund has obtained shareholder approval for its participation,
if such approval is required by law; (b) the Fund has fully disclosed
all material information concerning the credit facility in its
prospectus and/or statement of additional information; and (c) the
Fund's participation in the credit facility is consistent with its
investment objectives, limitations and organizational documents.
    14. In connection with the credit facility, applicants request an
order under section 6(c) of the Act exempting them from the provisions
of sections 18(f) and 21(b) of the Act; under section 12(d)(1)(J) of
the Act exempting them from section 12(d)(1) of the Act; under sections
6(c) and 17(b) of the Act exempting them from sections 17(a)(1),
17(a)(2), and 17(a)(3) of the Act; and under section 17(d) of the Act
and rule 17d-1 under the Act to permit certain joint arrangements.

Applicants' Legal Analysis

    1. Section 17(a)(3) of the Act generally prohibits any affiliated
person of a registered investment company, or affiliated person of an
affiliated person, from borrowing money or other property from the
registered investment company. Section 21(b) of the Act generally
prohibits any registered management company from lending money or other
property to any person, directly or indirectly, if that person controls
or is under common control with that company. Section 2(a)(3)(C) of the
Act defines an ``affiliated person'' of another person, in part, to be
any person directly or indirectly controlling, controlled by, or under
common control with, such other person. Section 2(a)(9) of the Act
defines ``control'' as the ``power to exercise a controlling influence
over the management or policies of a company,'' but excludes
circumstances in which ``such power is solely the result of an official
position with such company.'' Applicants state that the Funds may be
under common control by virtue of having common investment advisers
and/or by having common directors and officers.
    2. Section 6(c) of the Act provides that an exemptive order may be
granted where an exemption is necessary or appropriate in the public
interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from section 17(a) provided that the terms of the
transaction, including the consideration to be paid or received, are
fair and reasonable and do not involve overreaching on the part of any
person concerned, and the transaction is consistent with the policy of
the investment company as recited in its registration statement and
with the general purposes of the Act. Applicants believe that the
proposed arrangements satisfy these standards for the reasons discussed
below.
    3. Applicants assert that sections 17(a)(3) and 21(b) of the Act
were intended to prevent a party with strong potential adverse
interests to, and some influence over the investment decisions of, a
registered investment company from causing or inducing the investment
company to engage in lending transactions that unfairly inure to the
benefit of such party and that are detrimental to the best interests of
the investment company and its shareholders. Applicants assert that the
proposed credit facility transactions do not raise these concerns
because: (a) PMC, through the Credit Facility Team, would administer
the program as a disinterested fiduciary as part of its duties under
the relevant advisory or administrative contract with each Fund; (b)
all Interfund Loans would consist only of uninvested cash reserves that
the lending Fund otherwise would invest in the Joint Account or
pursuant to the Cash Management Program; (c) the Interfund Loans would
not involve a significantly greater risk than other such investments;
(d) the lending Fund would receive interest at a rate higher than it
could otherwise obtain through such other investments; and (e) the
borrowing Fund would pay interest at a rate lower than otherwise
available to it under its bank loan agreements and avoid the up-front
commitment fees associated with committed lines of credit. Moreover,
applicants assert that the other terms and conditions that applicants
propose also would effectively preclude the possibility of any Fund
obtaining an undue advantage over any other Fund.
    4. Section 17(a)(1) of the Act generally prohibits an affiliated
person of a registered investment company, or any affiliated person of
such a person, from selling securities or other property to the
investment company. Section 17(a)(2) of the Act generally prohibits an
affiliated person of a registered investment company, or any affiliated
person of such a person, from purchasing securities or other property
from the investment company. Section 12(d)(1) of the Act generally
prohibits a registered investment company from purchasing or otherwise
acquiring any security issued by any other investment company except in
accordance with the limitations set forth in that section.
    5. Applicants state that the obligation of a borrowing Fund to
repay an Interfund Loan could be deemed to constitute a security for
the purposes of sections 17(a)(1) and 12(d)(1) of the Act. Applicants
also state that a pledge of assets in connection with an Interfund Loan
could be construed as a purchase of the borrowing Fund's securities or
other property for purposes of section 17(a)(2) of the Act. Section
12(d)(1)(J) of the Act provides that the Commission may exempt persons
or transactions from any provision of section 12(d)(1) if and to the
extent that such exemption is consistent with the public interest and
the protection of investors. Applicants contend that the standards
under sections 6(c), 17(b), and 12(d)(1)(J) are satisfied for all the
reasons set forth above in support of their request for relief from
sections 17(a)(3) and 21(b) and for the reasons discussed below.
Applicants also state that the requested relief from section 17(a)(2)
of the Act meets the standards of section 6(c) and 17(b) because any
collateral pledged to secure an Interfund Loan would be subject to the
same conditions imposed by any other lender to a Fund that imposes
conditions on the quality of or access to collateral for a borrowing
(if the lender is another Fund) or the same or better conditions (in
any other circumstance).
    6. Applicants state that section 12(d)(1) was intended to prevent
the pyramiding of investment companies in order to avoid imposing on
investors additional and duplicative costs and fees attendant upon
multiple layers of investments. Applicants submit that the proposed
credit facility does not involve these abuses. Applicants note that
there will be no duplicative costs or fees to the Funds or their
shareholders, and that PMC will receive no additional

compensation for its services in administering the credit facility.
Applicants also note that the purpose of the proposed credit facility
is to provide economic benefits for all the participating Funds and
their shareholders.
    7. Section 18(f)(1) of the Act prohibits open-end investment
companies from issuing any senior security except that a company is
permitted to borrow from any bank, provided, that immediately after the
borrowing, there is asset coverage of at least 300 per centum for all
borrowings of the company. Under section 18(g) of the Act, the term
``senior security'' generally includes any bond, debenture, note or
similar obligation or instrument constituting a security and evidencing
indebtedness. Applicants request exemptive relief under section 6(c)
from section 18(f)(1) to the limited extent necessary to implement the
proposed credit facility (because the lending Funds are not banks).
    8. Applicants believe that granting relief under section 6(c) is
appropriate because the Funds would remain subject to the requirement
of section 18(f)(1) that all borrowings of a Fund, including combined
interfund and bank borrowings, have at least 300% asset coverage. Based
on the conditions and safeguards described in the application,
applicants also submit that to allow the Funds to borrow from other
Funds pursuant to the proposed credit facility is consistent with the
purposes and policies of section 18(f)(1).
    9. Section 17(d) of the Act and rule 17d-1 under the Act generally
prohibit an affiliated person of a registered investment company, or
any affiliated person of such a person, when acting as principal, from
effecting any joint transaction in which the investment company
participates, unless, upon application, the transaction has been
approved by the Commission. Rule 17d-1(b) under the Act provides that
in passing upon an application filed under the rule, the Commission
will consider whether the participation of the registered investment
company in a joint enterprise on the basis proposed is consistent with
the provisions, policies and purposes of the Act and the extent to
which such participation is on a basis different from or less
advantageous than that of the other participants.
    10. Applicants assert that the purpose of section 17(d) is to avoid
overreaching by and unfair advantage to insiders. Applicants assert
that the proposed credit facility is consistent with the provisions,
policies and purposes of the Act in that it offers both reduced
borrowing costs and enhanced returns on loaned funds to all
participating Funds and their shareholders. Applicants note that each
Fund would have an equal opportunity to borrow and lend on equal terms
consistent with its investment policies and fundamental investment
limitations. Applicants assert that each Fund's participation in the
proposed credit facility would be on terms that are no different from
or less advantageous than that of other participating Funds.

Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. The Interfund Loan Rate will be the average of the Repo Rate and
the Bank Loan Rate.
    2. On each business day, the Credit Facility Team will compare the
Bank Loan Rate with the Repo Rate and will make cash available for
Interfund Loans only if the Interfund Loan Rate is: (a) More favorable
to the lending Fund than the Repo Rate; and (b) more favorable to the
borrowing Fund than the Bank Loan Rate.
    3. If a Fund has outstanding bank borrowings, any Interfund Loans
to the Fund: (a) Will be at an interest rate equal to or lower than the
interest rate of any outstanding bank loan; (b) will be secured at
least on an equal priority basis with at least an equivalent percentage
of collateral to loan value as any outstanding bank loan that requires
collateral; (c) will have a maturity no longer than any outstanding
bank loan (and in any event not over seven days); and (d) will provide
that, if an event of default by the Fund occurs under any agreement
evidencing an outstanding bank loan to the Fund, that event of default
will automatically (without need for action or notice by the lending
Fund) constitute an immediate event of default under the Interfund
Lending Agreement entitling the lending Fund to call the Interfund Loan
(and exercise all rights with respect to any collateral) and that such
call will be made if the lending bank exercises its right to call its
loan under its agreement with the borrowing Fund.
    4. A Fund may make an unsecured borrowing through the proposed
credit facility if its outstanding borrowings from all sources
immediately after the interfund borrowing total 10% or less of its
total assets, provided that if the Fund has a secured loan outstanding
from any other lender, including but not limited to another Fund, the
Fund's interfund borrowing will be secured on at least an equal
priority basis with at least an equivalent percentage of collateral to
loan value as any outstanding loan that requires collateral. If a
Fund's total outstanding borrowings immediately after an interfund
borrowing would be greater than 10% of its total assets, the Fund may
borrow through the proposed credit facility only on a secured basis. A
Fund may not borrow through the proposed credit facility or from any
other source if its total outstanding borrowings immediately after such
borrowing would be more than 33\1/3\% of its total assets.
    5. Before any Fund that has outstanding interfund borrowings may,
through additional borrowings, cause its outstanding borrowings from
all sources to exceed 10% of its total assets, the Fund must first
secure each outstanding Interfund Loan by the pledge of segregated
collateral with a market value at least equal to 102% of the
outstanding principal value of the loan. If the total outstanding
borrowings of a Fund with outstanding Interfund Loans exceed 10% of its
total assets for any other reason (such as a decline in net asset value
or because of shareholder redemptions), the Fund will within one
business day thereafter: (a) Repay all of its outstanding Interfund
Loans; (b) reduce its outstanding indebtedness to 10% or less of its
total assets; or (c) secure each outstanding Interfund Loan by the
pledge of segregated collateral with a market value at least equal to
102% of the outstanding principal value of the loan until the Fund's
total outstanding borrowings cease to exceed 10% of its total assets,
at which time the collateral called for by this condition (5) shall no
longer be required. Until each Interfund Loan that is outstanding at
any time that a Fund's total outstanding borrowings exceed 10% is
repaid or the Fund's total outstanding borrowings cease to exceed 10%
of its total assets, the Fund will mark the value of the collateral to
market each day and will pledge such additional collateral as is
necessary to maintain the market value of the collateral that secures
each outstanding Interfund Loan at least equal to 102% of the
outstanding principal value of the Interfund Loan.
    6. No Fund may lend to another Fund through the proposed credit
facility if the loan would cause its aggregate outstanding loans
through the proposed credit facility to exceed 15% of the lending
Fund's current net assets at the time of the loan.
    7. A Fund's Interfund Loans to any one Fund shall not exceed 5% of
the lending Fund's net assets.
    8. The duration of Interfund Loans will be limited to the time
required to receive payment for securities sold, but in no event more
than seven days. Loans effected within seven days of each other will be
treated as separate loan

transactions for purposes of this condition.
    9. A Fund's borrowings through the proposed credit facility, as
measured on the day when the most recent loan was made, will not exceed
the greater of 125% of the Fund's total net cash redemptions for the
preceding seven calendar days or 102% of the Fund's sales fails for the
preceding seven calendar days.
    10. Each Interfund Loan may be called on one business day's notice
by a lending Fund and may be repaid on any day by a borrowing Fund.
    11. A Fund's participation in the proposed credit facility must be
consistent with its investment objectives and limitations and
organizational documents.
    12. The Credit Facility Team will calculate total Fund borrowing
and lending demand through the proposed credit facility, and allocate
loans on an equitable basis among the Funds, without the intervention
of any portfolio manager of the Funds (other than the money market Fund
portfolio manager acting in his or her capacity as a member of the
Credit Facility Team). All allocations will require the approval of at
least one member of the Credit Facility Team, who is a high level
employee, other than the money market Fund portfolio manager. The
Credit Facility Team will not solicit cash for the proposed credit
facility from any Fund or prospectively publish or disseminate loan
demand data to portfolio managers (except to the extent that the money
market fund portfolio manager on the Credit Facility Team has access to
loan demand data). Any amounts remaining after satisfaction of
borrowing demand will be invested in the Joint Account or pursuant to
the Cash Management Program in accordance with the instructions of the
portfolio managers.
    13. PMC will monitor the Interfund Loan Rate and the other terms
and conditions of the Interfund Loans and will make a quarterly report
to the Board of each Company concerning the participation of the Funds
in the proposed credit facility and the terms and other conditions of
any extensions of credit under the credit facility.
    14. The Board of each Fund, including a majority of the Independent
Directors, will:
    (a) Review, no less frequently than quarterly, the Fund's
participation in the proposed credit facility during the preceding
quarter for compliance with the conditions of any order permitting such
transactions;
    (b) establish the Bank Loan Rate formula used to determine the
interest rate on Interfund Loans and review, no less frequently than
annually, the continuing appropriateness of the Bank Loan Rate formula;
and
    (c) review, no less frequently than annually, the continuing
appropriateness of the Fund's participation in the proposed credit
facility.
    15. In the event an Interfund Loan is not paid according to its
terms and such default is not cured within two business days from its
maturity or from the time the lending Fund makes a demand for payment
under the provisions of the Interfund Lending Agreement, PMC will
promptly refer such loan for arbitration to an independent arbitrator,
selected by the Board of each Fund involved in the loan, who will serve
as arbitrator of disputes concerning Interfund Loans.\3\ The arbitrator
will resolve any problem promptly, and the arbitrator's decision will
be binding on both Funds. The arbitrator will submit, at least
annually, a written report to the Board of each Fund setting forth a
description of the nature of any dispute and the actions taken by the
Funds to resolve the dispute.
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    \3\ If the dispute involves Funds with different Boards of
Directors, the respective Board of each Fund will select an
independent arbitrator that is satisfactory to each Fund.
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    16. Each Fund will maintain and preserve for a period of not less
than six years from the end of the fiscal year in which any transaction
by it under the proposed credit facility occurred, the first two years
in an easily accessible place, written records of all such transactions
setting forth a description of the terms of the transactions, including
the amount, the maturity and the Interfund Loan Rate, the rate of
interest available at the time each Interfund Loan is made on overnight
repurchase agreements and commercial bank borrowings and such other
information presented to the Fund's Board in connection with the review
required by conditions 13 and 14.
    17. PMC will prepare and submit to the Board of each Fund for
review an initial report describing the operations of the proposed
credit facility and the procedures to be implemented to ensure that all
Funds are treated fairly. After the commencement of the proposed credit
facility, PMC will report on the operations of the proposed credit
facility at each Board's quarterly meetings.
    Each Fund's chief compliance officer, as defined in Rule 38a-
1(a)(4) under the Act, shall prepare an annual report for its Board
each year that the Fund participates in the proposed credit facility,
which report evaluates the Fund's compliance with the terms and
conditions of the application and the procedures established to achieve
such compliance. Each Fund's chief compliance officer will also
annually file a certification pursuant to Item 77Q3 of Form N-SAR as
such Form may be revised, amended, or superseded from time to time, for
each year that the Fund participates in the proposed credit facility,
that certifies that the Fund and PMC have established procedures
reasonably designed to achieve compliance with the terms and conditions
of the application. In particular, such certification will address
procedures designed to achieve the following objectives:
    (a) That the Interfund Loan Rate will be higher than the Repo Rate,
but lower than the Bank Loan Rate;
    (b) compliance with the collateral requirements as set forth in the
application;
    (c) compliance with the percentage limitations on interfund
borrowing and lending;
    (d) allocation of interfund borrowing and lending demand in an
equitable manner and in accordance with procedures established by the
Board of each Fund; and
    (e) that the Interfund Loan Rate does not exceed the interest rate
on any third party borrowings of a borrowing Fund at the time of the
Interfund Loan.
    Additionally, each Fund's independent public accountants, in
connection with their audit examination of the Fund, will review the
operation of the proposed credit facility for compliance with the
conditions of the application and their review will form the basis, in
part, of the auditor's report on internal accounting controls in Form
N-SAR.
    18. No Fund will participate in the proposed credit facility upon
receipt of requisite regulatory approval unless it has fully disclosed
in its prospectus and/or statement of additional information all
material facts about its intended participation.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-25677 Filed 10-4-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 181 (Wednesday, September 22, 2021)]
[Notices]
[Page 52664]
[FR Doc No: 2021-20485]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PL21-3-000]

Technical Conference on Greenhouse Gas Mitigation: Natural Gas
Act Sections 3 and 7 Authorizations; Notice of Technical Conference

    Take notice that the Federal Energy Regulatory Commission
(Commission) will convene a Commission staff-led technical conference
to discuss methods natural gas companies may use to mitigate the
effects of direct and indirect greenhouse gas emissions resulting from
Natural Gas Act sections 3 and 7 authorizations. The technical
conference will be held on Friday, November 19, 2021, from
approximately 9:00 a.m. to 5:00 p.m. Eastern time. The conference will
be held virtually.
    The conference will be open for the public to attend virtually, and
there is no fee for attendance. Supplemental notices will be issued
prior to the conference with further details regarding the agenda and
how to participate as a panelist. Information on this technical
conference will also be posted on the Calendar of Events on the
Commission's website, www.ferc.gov, prior to the event. Transcripts
will be available for a fee from Ace Reporting,<PHONE_NUMBER>.
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations, please
send an email to<EMAIL_ADDRESS>call toll-free<PHONE_NUMBER>
(voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER> with
the required accommodations.
    For more information about this technical conference, please
contact<EMAIL_ADDRESS>For information related to logistics,
please contact Sarah McKinley at<EMAIL_ADDRESS>or (202) 502-
8368. This notice is issued and published in accordance with 18 CFR
2.1.

    Dated: September 16, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-20485 Filed 9-21-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)]
[Rules and Regulations]
[Pages 3939-3941]
[FR Doc No: 2018-01317]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0621; Product Identifier 2017-NM-049-AD; Amendment
39-19169; AD 2018-02-16]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

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

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Bombardier, Inc., Model DHC-8-400 series airplanes. This AD was
prompted by reports that operation of fuselage doors was interrupted
due to corrosion in certain door roller bearings. This AD requires a
one-time detailed inspection of the bearings for corrosion, and
replacement if necessary. We are issuing this AD to address the unsafe
condition on these products.

DATES: This AD is effective March 5, 2018.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of March 5,
2018.

ADDRESSES: For service information identified in this final rule,
contact Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt
Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>; email [email protected]; internet
http://www.bombardier.com. You may view this referenced service
information at the FAA, Transport Standards Branch, 1601 Lind Avenue
SW, Renton, WA. 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-2017-0621.

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-2017-
0621; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The street address for the Docket Office (telephone
800-647-5527) is Docket Management Facility, U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Aziz Ahmed, Aerospace Engineer,
Airframe and Mechanical Systems Section, FAA, New York ACO Branch, 1600
Stewart Avenue, Suite 410, Westbury, NY 11590; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain Bombardier, Inc.,
Model DHC-8-400 series airplanes. The NPRM published in the Federal
Register on June 21, 2017 (82 FR 28269) (``the NPRM''). The NPRM was
prompted by reports that operation of fuselage doors was interrupted
due to corrosion in certain door roller bearings. The NPRM proposed to
require a one-time detailed inspection of the bearings for corrosion,
and replacement if necessary. We are issuing this AD to detect and
correct bearing corrosion and prevent door operation interruptions that
could inhibit safe evacuation of the airplane in an emergency.
    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian Airworthiness Directive CF-
2016-18, dated June 6, 2016 (referred to after this as the Mandatory
Continuing Airworthiness Information, or ``the MCAI''), to correct an
unsafe condition for certain Bombardier, Inc., Model DHC-8-400 series
airplanes. The MCAI states:

    A number of translating fuselage door operation interruptions
has been reported. In one case, the Aft Service door could not be
opened. It was found that the door lift latch bearings had corroded,
which prevented the door from opening.

    The translating doors are classified as emergency exits. The
inability to open an emergency exit could inhibit evacuation in the
event of an emergency. This [Canadian] AD is issued to mandate a
one-time inspection of the translating door bearings to check for
corrosion, replace bearings if required, and apply Corrosion
Inhibiting Compound (CIC).

    You may examine the MCAI in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0621.

Comments

    We gave the public the opportunity to participate in developing
this AD. The following presents the comments received on the NPRM and
the FAA's response to each comment. The Air Line Pilots Association,
International (ALPA) supported the NPRM.

Request To Remove Certain Service Information Procedures

    Horizon Air requested that we change the language in paragraph (g)
of the proposed AD to exclude the ``Job Set-Up'' and ``Close Out''
sections of the Accomplishment Instructions, because accomplishing
those sections does not correct the unsafe condition, and requiring
them restricts an operator's ability to perform other maintenance in
conjunction with the requirements of the AD. Horizon Air requested that
the final rule mandate only paragraph 3.B., ``Procedure,'' of the
Accomplishment Instructions of Bombardier Service Bulletin 84-52-88,
dated April 14, 2016.
    We agree with the commenter's request to exclude the ``Job Set-up''
and ``Close Out'' sections of the Accomplishment Instructions of
Bombardier Service Bulletin 84-52-88, dated April 14, 2016, because
they are not required to address the unsafe condition identified in
this AD. We have revised paragraph (g) of this AD to require only
accomplishment of paragraph 3.B., ``Procedure,'' of the Accomplishment
Instructions of Bombardier Service Bulletin 84-52-88, dated April 14,
2016.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
this AD with the change described previously and minor editorial
changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.
    We also determined that these changes will not increase the
economic burden on any operator or increase the scope of this AD.

Related Service Information Under 1 CFR part 51

    Bombardier has issued Service Bulletin 84-52-88, dated April 14,
2016. This service information describes procedures for identification
of corrosion in fuselage door bearings, replacement if necessary, and
CIC application. 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.

Costs of Compliance

    We estimate that this AD affects 143 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
----------------------------------------------------------------------------------------------------------------
Inspection and CIC application.....  8 work-hours x $85 per hour              $0            $680         $97,240
                                      = $680 for 3 doors.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary replacements
that would be required based on the results of the inspection. We have
no way of determining the number of aircraft that might need this
replacement:

                                        On-condition CostsEstimated Costs
----------------------------------------------------------------------------------------------------------------
                Action                            Labor cost              Parts cost        Cost per product
----------------------------------------------------------------------------------------------------------------
Replacement...........................  4 work-hours x $85 per hour =             $432  $772 per door.
                                         $340 per door.
----------------------------------------------------------------------------------------------------------------

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 transport category airplanes to
the Director of the System Oversight Division.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:

    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under 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):

2018-02-16 Bombardier, Inc.: Amendment 39-19169; Docket No. FAA-
2017-0621; Product Identifier 2017-NM-049-AD.

(a) Effective Date

    This AD is effective March 5, 2018.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Bombardier, Inc., Model DHC-8-400, -401, and
-402 airplanes, certificated in any category, serial numbers 4001
and 4003 through 4488 inclusive, except those incorporating
Bombardier ModSum IS4Q5200050.

(d) Subject

    Air Transport Association (ATA) of America Code 52, Doors.

(e) Reason

    This AD was prompted by reports of interrupted operation of
translating fuselage doors caused by corrosion in the door lift and
latch shaft roller bearings. We are issuing this AD to detect and
correct bearing corrosion and prevent door operation interruptions
that could inhibit safe evacuation of the airplane in an emergency.

(f) Compliance

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

(g) Inspection and Replacement of Bearings

    Within 6,000 flight hours or 36 months after the effective date
of this AD, whichever occurs earlier, do a detailed visual
inspection of all translating fuselage door lift and latch shaft
roller bearings for signs of corrosion, damaged seals, and loss of
lubricant; replace any corroded bearings; and apply corrosion-
inhibiting compound (CIC); in accordance with paragraph 3.B.,
``Procedure,'' of the Accomplishment Instructions of Bombardier
Service Bulletin 84-52-88, dated April 14, 2016.

(h) Credit for Previous Actions

    This paragraph provides credit for actions required by paragraph
(g) of this AD, if those actions were performed before the effective
date of this AD using Bombardier Service Bulletin 84-52-85, dated
September 23, 2015; or Bombardier Service Bulletin 84-52-85,
Revision A, dated January 22, 2016.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO 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 ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. 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.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc.'s TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(j) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian Airworthiness Directive CF-2016-18, dated June 6,
2016, for related information. This MCAI may be found in the AD
docket on the internet at http://www.regulations.gov by searching
for and locating Docket No. FAA-2017-0621.
    (2) For more information about this AD, contact Aziz Ahmed,
Aerospace Engineer, Airframe and Mechanical Systems Section, FAA,
New York ACO Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY
11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
    (3) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (k)(3) and (k)(4) of this AD.

(k) 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 this AD specifies otherwise.
    (i) Bombardier Service Bulletin 84-52-88, dated April 14, 2016.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Bombardier, Inc., Q-Series Technical Help Desk, 123 Garratt
Boulevard, Toronto, Ontario M3K 1Y5, Canada; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>; email [email protected]; internet
http://www.bombardier.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 1601 Lind Avenue SW, Renton, WA. 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 Renton, Washington, on January 17, 2018.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2018-01317 Filed 1-26-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 77, Number 162 (Tuesday, August 21, 2012)]
[Proposed Rules]
[Pages 50419-50420]
[FR Doc No: 2012-20543]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2012-0648; Airspace Docket No. 12-ANM-19]

Proposed Amendment of Class E Airspace; Pullman, WA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to modify Class E airspace at Pullman/
Moscow Regional Airport, Pullman, WA. Controlled airspace is necessary
to accommodate aircraft using Area Navigation (RNAV) Global Positioning
System (GPS) standard instrument approach procedures at Pullman/Moscow
Regional Airport, Pullman, WA. Also, the Pullman navigation aid would
be removed from the airspace designation. The FAA is proposing this
action to enhance the safety and management of aircraft operations at
the airport.

DATES: Comments must be received on or before October 5, 2012.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590;
telephone<PHONE_NUMBER>. You must identify FAA Docket No. FAA-2012-
0648; Airspace Docket No. 12-ANM-19, at the beginning of your comments.
You may also submit comments through the Internet at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation
Administration, Operations Support Group, Western Service Center, 1601
Lind Avenue SW., Renton, WA 98057; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA 2012-0648 and Airspace Docket No. 12-ANM-19) and be submitted in
triplicate to the Docket Management System (see ADDRESSES section for
address and phone number). You may also submit comments through the
Internet at http://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to FAA
Docket No. FAA-2012-0648 and Airspace Docket No. 12-ANM-19''. The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Northwest Mountain Regional Office of the Federal
Aviation Administration, Air Traffic Organization, Western Service
Center, Operations Support Group, 1601 Lind Avenue SW., Renton, WA
98057.
    Persons interested in being placed on a mailing list for future
NPRMs should contact the FAA's Office of Rulemaking,<PHONE_NUMBER>,
for a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) Part 71 by modifying Class E surface airspace and
Class E airspace extending upward from 700 feet above the surface at
Pullman/Moscow Regional Airport, Pullman, WA. Controlled airspace is
necessary to accommodate aircraft using the RNAV (GPS) standard
instrument approach procedures at Pullman/Moscow Regional Airport,
Pullman, WA. This action would enhance the safety and management of
aircraft operations at the airport. Also, for clarity, the Pullman VHF
Omni-Directional Radio Range/Distance Measuring Equipment (VOR/DME)
would be removed from the regulatory text.
    Class E airspace designations are published in paragraph 6002 and
6005, respectively, of FAA Order 7400.9V, dated August 9, 2011, and
effective September 15, 2011, which is incorporated by reference in 14
CFR 71.1. The Class E airspace designation listed in this document will
be published subsequently in this Order.
    The FAA has determined this proposed regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this proposed regulation; (1) is not a ``significant
regulatory action'' under Executive Order 12866; (2) is not a
``significant rule'' under DOT Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3) does not warrant preparation of a
regulatory evaluation as the anticipated impact is so minimal. Since
this is a routine matter that will only affect air traffic procedures
and air navigation, it is certified this proposed rule, when
promulgated, would not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes
the authority for the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of the
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would modify controlled airspace at Pullman/Moscow Regional
Airport, Pullman, WA.

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1E, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR Part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

    1. The authority citation for 14 CFR Part 71 continues to read as
follows:

    Authority:  49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854,
24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal
Aviation Administration Order 7400.9V, Airspace Designations and
Reporting Points, dated August 9, 2011, and effective September 15,
2011 is amended as follows:

Paragraph 6002 Class E Airspace Designated as Surface Areas.

* * * * *

ANM WA E2 Pullman, WA [Modified]

Pullman/Moscow Regional Airport, WA
    (Lat. 46[deg]44'38'' N., long. 117[deg]06'35'' W.)

    Within a 4-mile radius of Pullman/Moscow Regional Airport, and
within 1.7 miles each side of the Pullman/Moscow Regional Airport
046[deg] bearing extending from the 4-mile radius to 8 miles
northeast of the airport, and within 1.7 miles each side of the
Pullman/Moscow Regional Airport 227[deg] bearing extending from the
4-mile radius to 6 miles southwest of the airport. This Class E
airspace area is effective during the specific dates and times
established in advance by a Notice to Airmen. The effective date and
time will thereafter be continuously published in the Airport/
Facility Directory.

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ANM WA E5 Pullman, WA [Modified]

Pullman/Moscow Regional Airport, WA
    (Lat. 46[deg]44'38'' N., long. 117[deg]06'35'' W.)

    That airspace extending upward from 700 feet above the surface
within a 10-mile radius of the Pullman/Moscow Regional Airport, and
within 1.7 miles each side of the Pullman/Moscow Regional Airport
229[deg] bearing extending from the 10-mile radius to 13 miles
southwest of the airport, and that airspace bounded by a line
beginning at the intersection of the 10-mile radius of the airport
and the Pullman/Moscow Regional Airport 307[deg] bearing to the
intersection of the of the 23-mile radius of the airport and the
Pullman/Moscow Regional Airport 328[deg] bearing extending clockwise
within a 23-mile radius of the Pullman/Moscow Regional Airport;
thence to the intersection of the 23-mile radius of the airport and
the Pullman/Moscow Regional Airport 064[deg] bearing of the airport
to the intersection of the 10-mile radius of the airport and the
Pullman/Moscow Regional Airport 066[deg] bearing of the airport;
thence to the point of origin. That airspace extending upward from
1,200 feet above the surface bounded by a line beginning at lat.
46[deg]46'00'' N., long. 117[deg]51'00'' W.; to lat. 47[deg]06'00''
N., long. 117[deg]29'00'' W.; to lat. 47[deg]10'00'' N., long.
117[deg]13'00'' W.; to lat. 47[deg]07'00'' N., long. 116[deg]50'00''
W.; to lat. 46[deg]57'00'' N., long. 116[deg]28'00'' W.; to lat.
46[deg]38'00'' N., long. 116[deg]41'00'' W.; to lat. 46[deg]31'00''
N., long. 116[deg]23'00'' W., to lat. 46[deg]12'00'' N., long.
116[deg]25'00'' W.; to lat. 46[deg]19'00'' N., long. 116[deg]57'00''
W.; to lat. 46[deg]24'00'' N., long. 117[deg]30'00'' W.; thence to
the point of origin.

    Issued in Seattle, Washington, on August 14, 2012.
John Warner,
Manager, Operations Support Group, Western Service Center.
[FR Doc. 2012-20543 Filed 8-20-12; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: May 24, 2006 (Volume 71, Number 100)]
[Notices]
[Page 29929]
[DOCID:fr24my06-54]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP06-319-001]

Distrigas of Massachusetts LLC; Notice of Tariff Filing

May 18, 2006.
    Take notice that on May 11, 2006, Distrigas of Massachusetts LLC
(DOMAC) tendered for filing as part of its FERC Gas Tariff, First
Revised Volume No. 1, Twenty-First Revised Sheet No. 94 to become
effective as of June 1, 2006.
    DOMAC filed a replacement Twenty-First Revised Sheet No. 94 to
correct two errors in the revised Index of Customers filed on April 28,
2006.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken, but will
not serve to make protestants parties to the proceeding. Such protests
must be filed in accordance with the provisions of Section 154.210 of
the Commission's regulations (18 CFR 154.210). Anyone filing a protest
must serve a copy of that document on all the parties to the
proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
[FR Doc. E6-7956 Filed 5-23-06; 8:45 am]

BILLING CODE 6717-01-P


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on April 21, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20658

________________________________________________________________________
________________________________________________________

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

Applicant:  Eurowings Luftverkehrs AG						Date Filed:  March 14, 2005

Relief requested:   Exemption from 49 U.S.C. § 41301 and blanket
statement of authorization pursuant to 14 CFR Part 212 of the
Department’s regulations to display the designator code of US Airways,
Inc. on all flights operated by Eurowings on behalf of Deutsche
Lufthansa AG (Lufthansa German Airlines) within Europe.

If renewal, date and citation of last action:  New authority

Applicant representatives:  David Heffernan<PHONE_NUMBER>

DOT Analyst:  Shelita A. Smith<PHONE_NUMBER>

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved							Action date:  April 21, 2005

Effective dates of exemption authority granted:  April 21, 2005 –
April 21, 2007

Effective dates of statement of authorization granted:  April 21, 2005
– Indefinite, subject to code-share conditions attached.

Basis for approval (bilateral agreement/reciprocity):  The U.S.-Germany
Air Transport Agreement

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

   X    Standard exemption conditions (attached)             X   Code
share conditions  (attached)

The code-share operations authorized here are subject to the following
conditions:

(a)  The statement of authorizations will remain in effect only as long
as (i) Eurowings Luftverkehrs and US Airways continue to hold the
necessary underlying authority to operate the code-share services at
issue, and (ii) the code-share agreement providing for the code-share
operations remains in effect.

(b)  Eurowings Luftverkehrs AG and/or US Airways must promptly notify
the Department (Office of International Aviation) if the code-share
agreement providing for the code-share operations is no longer effective
or the carriers decide to cease operating any or all of the approved
code-share services.  Such notices should be filed in Docket

OST-2005-20658.

(c)  Eurowings Luftverkehrs AG and/or US Airways must notify the
Department no later than 30 days before they begin any new code-share
service under the code-share services authorized here.  Such notice
shall identify the market(s) to be served and the date on which the
service will begin.  Such notices should be filed in Docket
OST-2005-20658.

(d)  The code-sharing operations conducted under this authority must
comply with 14 CFR Part 257 and with any amendments to the
Department’s regulations concerning code-share arrangements that may
be adopted.  Notwithstanding any provisions in the contract between the
carriers, our approval here is expressly conditioned upon the
requirements that the subject foreign air transportation be sold in the
name of the carrier holding out such service in computer reservation
systems and elsewhere; that the carrier selling such transportation
(i.e., the carrier shown on the ticket) accept responsibility for the
entirety of the code-share journey for all obligations established in
its contract of carriage with the passenger; and that the passenger
liability of the operating carrier be unaffected.  Further, the
operating carrier shall not permit the code of its U.S. carrier
code-sharing partner to be carried on any flight that enters, departs or
transits the airspace of any area for whose airspace the Federal
Aviation Administration has issued a flight prohibition.

(e)  The authority to operate to third countries is subject to the
condition that any service provided under the statement of authorization
shall be consistent with all applicable agreements between the United
States and the foreign countries involved.  Furthermore, (i) nothing in
the award of this blanket statement of authorization should be construed
as conferring upon US Airways rights (including code-share,
fifth-freedom intermediate and/or beyond rights) to serve markets where
U.S. carrier entry is limited unless US Airways notifies the Department
of its intent to serve such a market and unless and until the Department
has completed any necessary carrier selection procedures to determine
which carrier(s) should be authorized to exercise such rights; and (ii)
should there be a request by any carrier to use the limited-entry route
rights that are included in US Airways’ authority by virtue of the
blanket statement of authorization granted here, but that are not then
being used by US Airways,  the holding of such authority will not be
considered as providing any preference for US Airways in a competitive
carrier selection proceeding to determine which carrier(s) should be
entitled to use the authority at issue.

(f)  The authority granted here is specifically conditioned so that
neither carrier shall give any force or effect to any contractual
provisions between themselves that are contrary to these conditions.

(g)  We may amend, modify, or revoke the authority granted at any time
without hearing at our discretion.

Special conditions/Partial grant/Denial basis/Remarks:

Action taken by:  Paul L. Gretch, Director

		   Office of International Aviation

________________________________________________________________________
________________________________________________________

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

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

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

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

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

Foreign Carrier Exemption Conditions

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

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

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

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

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

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

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

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

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

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

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

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

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

  We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

  The notice in paragraph (c) above can be used for this notification.

05/2004


[Federal Register Volume 80, Number 33 (Thursday, February 19, 2015)]
[Notices]
[Pages 8862-8863]
[FR Doc No: 2015-03435]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP15-441-000.

    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/09/15
Negotiated Rates--United Energy Trading, LLC (HUB) to be effective 2/6/
2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5096.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-442-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/09/15
Negotiated Rates--Sequent Energy Management (HUB) 3075-89 to be
effective 2/6/2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5102.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-443-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/09/15
Negotiated Rates--Mercuria Energy Trading Gas LLC (HUB) 7540-89 to be
effective 2/6/2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5105.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-444-000.
    Applicants: American Midstream (Midla), LLC.
    Description: Section 4(d) rate filing per 154.204: Midla Imbalance
Resolution to be effective 4/1/2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5163.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-445-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/09/15
Negotiated Rates--NJR Energy Services Company to be effective 2/9/2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5165.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-446-000.
    Applicants: Rockies Express Pipeline LLC.
    Description: Section 4(d) rate filing per 154.204: Neg Rate 2015-
02-09 ConocoPhillips to be effective 2/9/2015.
    Filed Date: 2/9/15.
    Accession Number: 20150209-5210.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-447-000.
    Applicants: Gulf South Pipeline Company, LP.
    Description: Section 4(d) rate filing per 154.204: Amendment to Neg
Rate Agmt (Sequent 34693-27) to be effective 2/10/2015.
    Filed Date: 2/10/15.
    Accession Number: 20150210-5040.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-448-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/10/15
Negotiated Rates--ConEdison Energy Inc. (HUB) 2275-89 to be effective
2/9/2015.
    Filed Date: 2/10/15.
    Accession Number: 20150210-5060.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-449-000.
    Applicants: Iroquois Gas Transmission System, L.P.
    Description: Section 4(d) rate filing per 154.204: 02/10/15
Negotiated Rates--Mercuria Energy Trading Gas LLC (HUB) 7540-89 to be
effective 2/9/2015.
    Filed Date: 2/10/15.
    Accession Number: 20150210-5141.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-450-000.
    Applicants: Enable Gas Transmission, LLC.
    Description: Section 4(d) rate filing per 154.204: Negotiated Rate
Filing--February 2015--LER 0222 Att A to be effective 2/10/2015.
    Filed Date: 2/10/15.
    Accession Number: 20150210-5152.
    Comments Due: 5 p.m. ET 2/23/15.

    Docket Numbers: RP15-451-000.
    Applicants: Enable Mississippi River Transmission, L.
    Description: Section 4(d) rate filing per 154.204: Negotiated Rate
Filing to Amend LER 5680's Attachment A_2-10-15 to be effective 2/10/
2015.
    Filed Date: 2/10/15.
    Accession Number: 20150210-5220.
    Comments Due: 5 p.m. ET 2/23/15.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: February 11, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-03435 Filed 2-18-15; 8:45 am]
BILLING CODE 6717-01-P