extent the regulations address risks of general applicability to all
oil and gas wells and where it is not impossible to comply with both
the State regulations and PHMSA requirements.''
    Second, EDF asked PHMSA to require interstate operators in states
having adopted ``storage'' regulations to identify all State rules that
an operator believes are ``storage'' rules and address those rules in
their risk management plans as part of the operators' preventive and
mitigative measures to address ``special risks intrinsic to gas
storage.'' According to EDF, this would serve to preserve the efforts
made by some states to ensure safety and environmental protections
imposed in the face of no minimum Federal standards.
8. Response to Comments on the States' Regulation of Interstate UNGSFs
    As noted earlier, EDF and other commenters have pointed out that a
number of interstate UNGSF operators in states with mature regulatory
programs in place have been ``voluntarily'' obeying State rules. PHMSA
acknowledges EDF's concern that some interstate operators may choose to
no longer voluntarily comply with State UNGSF regulations that go
beyond the new minimum Federal standards embodied in the final rule.
However, the Federal standards do not disincentivize the voluntary
compliance that was previously occurring before the IFR went into
effect, provided that the voluntary compliance is compatible with the
Federal standards. Therefore, it seems unlikely that an interstate
operator who is already voluntarily complying with existing State
safety-related standards would stop doing so because of this final rule
unless voluntary compliance were to result in non-compliance with the
Federal standard. Further, this is the same situation that exists with
other State regulations that may affect gas and hazardous liquid
pipelines and with which interstate operators may or may not choose to
comply. For these reasons, PHMSA declines to modify the final rule to
require interstate operators to take such State regulations into
account in their IM plans or other procedures. The agency believes it
would be inconsistent and impracticable to require operators to
evaluate and include in their plans and procedures certain provisions
of State regulations for UNGSFs but not for other pipeline facilities.
This would put PHMSA in the untenable position of elevating certain
State regulations for all interstate UNGSF operators but not for other
State pipeline regulations. If PHMSA learns of State regulations that
should be applied more broadly for all interstate UNGSF operators, it
may consider amending its regulations through notice-and-comment
rulemaking to make them applicable uniformly among all interstate
operators.

I. Definitions and Terminology

    The IFR added a definition for ``underground natural gas storage
facility'' at 49 CFR 191.3 based on the definition provided in section
12 of the PIPES Act. The IFR's definition included the wellhead,
downhole components, and associated onsite structures that lay within
the scope of PHMSA's regulatory authority. The IFR provided no
additional definitions.
1. Comments Regarding Definitions and Terminology
    Several commenters asked that PHMSA modify the definition of
``underground natural gas storage facility'' in the final rule and to
clarify or define other terms not defined in the IFR. Two commenters
requested that

PHMSA create separate definitions for interstate and intrastate
facilities. They said that clarification in the final rule would
prevent jurisdictional confusion at the State level and enable their
organizations to apply the rules more predictably.
    Operators recommended a revised definition of ``underground natural
gas storage facility,'' while others asked that PHMSA clarify the terms
``workover'' and ``modified well.''
    The Associations recommended that PHMSA revise the definition of
``underground natural gas storage facility'' to avoid confusion with
other subparts of 49 CFR part 192. They were concerned that the
definition in the IFR included ``piping, rights-of-way, property,
buildings, compressor units, separators, metering equipment, and
regulator equipment,'' terminology that could imply components of a
UNGSF were covered by both the underground natural gas storage
regulations at Sec.  192.12 and other provisions in part 192. They
recommended that the definition of ``underground natural gas storage
facility'' be amended to exclude ``facilities covered by part 192 of
this chapter.''
    The Associations further noted that the definition of a UNGSF
included the term ``solution-mined salt cavern reservoir.'' They stated
that the term ``reservoir'' is inaccurate in reference to salt caverns
and recommended that PHMSA use the term ``a solution-mined salt
cavern'' for technical accuracy. Similarly, the GPTC recommended that
the final rule revise the definition of UNGSF to align with the scope
of the RPs 1170 and 1171.
    Similarly, PG&E recommended that PHMSA replace the definition of
``underground natural gas storage facility'' at Sec.  192.3 with the
following:

    ``Underground gas storage facility means a facility that stores
natural gas in an underground facility incidental to natural gas
transportation, which is constructed from a depleted hydrocarbon
reservoir, an aquifer reservoir, or a solution-mined salt cavern. In
addition to the reservoir, this also includes the injection,
withdrawal, monitoring, observation wells, and associated wellhead
equipment within the facility.''

PG&E also recommended that PHSMA remove the phrase ``including
injection, withdrawal, monitoring, or observation well for an
underground natural gas storage facility'' from the criteria for
submitting a safety-related condition report under Sec.  191.23. The
company stated that because such equipment was already included in the
definition of ``underground natural storage facility,'' operators might
incorrectly conclude that two reports were required since the equipment
was already covered under other provisions of part 191.
    Northern Natural Gas, stated that the definition of a ``modified
well'' was not clear and could be interpreted to include some minor or
routine operations, such as the replacement of downhole equipment,
casing repairs, or tubing changes.
2. PHMSA's Response to Comments Regarding Definitions and Terminology
    PHMSA agrees with the commenters' suggestion to revise the
definition of ``underground natural gas storage facility,'' and,
therefore, is amending it in this final rule. The revised definition
will better articulate the point of demarcation between facilities that
constitute the UNGSFs and those that are part of other gas pipeline
facilities. Traditionally, compressor units, buildings, and separators
have been considered part of the ``topside'' pipe domain and are
already regulated by other sections of part 192. These components can
be connected to or from UNGSFs. PHMSA considers a UNGSF to include all
components up to the valve assembly (and their flanges) that route gas
at the wellhead to or from the connected pipeline(s). The valve
assembly may be a single manual or automated valve or a combination of
valves (e.g., manual and emergency shutdown) and will be located near
the wellhead.
    With respect to the need for separate definitions for intrastate
and interstate UNGSFs, PHMSA sees no need for such definitions. The use
of the phrase ``incidental to natural gas transportation'' in 49 CFR
192.3 makes clear that the scope of PHMSA's jurisdiction over UNGSFs
does not depend upon whether a facility is ``interstate'' or
``intrastate'' but whether it is tied to ``transporting gas,'' as that
term is defined under 49 U.S.C. 60101(a)(21). This means that UNGSFs
may include gas storage facilities that can be used occasionally or
partially for production operations, such as enhanced recovery, gas
lift, and for production equipment such as power generation and
powering compressors and pumps.
    Other commenters requested that PHMSA clarify common terms used
throughout RPs 1170 and 1171, such as ``wellhead,'' ``workover,'' or
``modified well.'' For similar reasons, the final rule does not provide
definitions for technical terms generally known to industry, such as
``wellhead,'' ``modified well,'' and ``workover.'' PHMSA will work with
operators on a case-by-case basis should the need arise to determine
the appropriate application of such terminology under the modified
regulatory text in the final rule.

J. Requests for Additional or More Stringent Requirements

    PHMSA received several comments from private citizens related to
additional or more stringent requirements for UNGSFs that do not fit
into the other categories already discussed. Gas Free Seneca, EDF, and
several private citizens asked PHMSA to require the widespread use of
subsurface safety valves. Some called for a plan to decommission
UNGSFs. Others called for a moratorium on new facilities.
    The widespread use of subsurface safety valves may have value but
would require further study and research as to their effective use at
each type of UNGSF over other safety enhancements or alternatives. In
PHMSA's ongoing discussions with operators, the failure rates of
subsurface safety valves during testing are variable. Additionally,
once installed, an operator would have to re-open the well to make any
repairs to the subsurface safety valve, requiring a workover rig to
retrieve the valve. Given these factors, PHMSA would require additional
certainty and a strong safety case before promulgating a Federal
requirement for the widespread use of subsurface safety valves.
    As for a moratorium, PHMSA does not have the authority to site
UNGSF facilities (and, by extension, to ban new facilities) or to
abrogate the power of states to issue permits. Therefore, a moratorium
would be outside the scope of PHMSA's authority and contrary to the
PIPES Act.
    PHMSA recognizes that there are inherent risks to operating a
UNGSF; however, Federal and State regulations minimize these risks by
requiring operators to adhere to clear performance standards designed
to maintain the integrity of the wellhead and reservoir or cavern.
Furthermore, the addition of requirements in this final rule related to
IM and recordkeeping will add greater rigor to the risk-management
practices than in the IFR. In summary, the IFR and this final rule
constitute the first large-scale application of PHMSA's regulation
jurisdiction to UNGSFs. As operators begin applying the RPs and
assessing the integrity of their facilities and as PHMSA gains
experience in regulating UNGSFs, the need for any additional
prescriptive measures will become apparent.

IV. Rulemaking Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This final rule is published under the authority of the Federal
Pipeline Safety Law (49 U.S.C. 60101 et seq.), as amended by the PIPES
Act (Pub. L. 114-183, June 22, 2016). Section 60102 authorizes the
Secretary of Transportation to issue regulations governing the design,
installation, inspection, emergency plans and procedures, testing,
construction, extension, operation, replacement, and maintenance of
pipeline facilities. The Secretary has delegated her authority in this
area to the Administrator of PHMSA (49 CFR 1.97). PHMSA is issuing the
amendments to the requirements for UNGSF involved in pipeline
transportation under this authority.

B. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule is a significant action under section 3(f) of E.O.
12866. Therefore, the Office of Management and Budget (OMB) has
reviewed it.
    PHMSA prepared a regulatory impact analysis (RIA) for the final
rule, which details the potential for incremental benefits and costs.
The RIA, which is available in the docket for this final rule, Docket
No. PHMSA-2016-0016, provides an estimate of the annualized cost
savings of the final rule and the other alternatives considered
relative to the baseline. Given the final rule does not impose any
costs relative to the baseline (IFR), PHMSA determined that the final
rule is not economically significant under Executive Order 12866
because the estimated annual impact is less than $100 million.
    Under the final rule, PHMSA expects operators to continue
performing the same preventative safety measures that they are
performing under the IFR. Because PHMSA does not expect the final rule
to change operator safety-related actions, PHMSA does not expect
changes to the benefits relative to the IFR. Implementation of the IFR
already achieved benefits that will remain in place, including the
potential prevention of catastrophic natural gas releases due to the
failure of storage wells and the associated impacts on human health,
property, and the environment, including climate change.
    PHMSA does anticipate cost savings once the final rule becomes
effective. Using the IFR as a baseline, the final rule will reduce
recordkeeping and reporting burdens, and burdens associated with
technical evaluations of non-mandatory RPs. The estimated annualized
cost savings as a result of these changes is $8,452,365 to $12,810,620
when discounted to present value at 7 percent.

C. Executive Order 13771

    This final rule is considered an E.O. 13771 deregulatory action.
Details on the estimated cost savings of this proposed rule can be
found in the rule's economic analysis.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, as amended by the
Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996,
requires Federal agencies to consider the impact of their rules on
small entities, analyze alternatives that minimize those impacts, and
make their analyses available for public comments. The Act is concerned
with three types of small entities: Small businesses, small nonprofits,
and small government jurisdictions.
    The RFA describes the regulatory flexibility analyses and
procedures that Federal agencies must complete unless they certify that
the rule, if promulgated, would not have a significant economic impact
on a substantial number of small entities. A statement of factual basis
must support this certification, e.g., by addressing the number of
small entities affected by the proposed action, calculating expected
cost impacts on these entities, and evaluating economic impacts.
    PHMSA estimated that this final rule would affect 130 operators. Of
these 130 operators, there are 14 small entities. However, this final
rule is a deregulatory action that will reduce the burden of
information collections. Therefore, PHMSA has determined that this
final rule will not have a significant economic impact on any small
entities.

E. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act (UMRA) of 1995, Public
Law 104-4, requires that Federal agencies assess the effects of their
regulatory actions on State, local, and Tribal governments and the
private sector. Under Section 202 of UMRA, PHMSA must prepare a written
statement, including a cost-benefit analysis, for proposed and final
rules with ``Federal mandates'' that might result in expenditures by
State, local, and Tribal governments, in the aggregate, or by the
private sector, of $100 million (adjusted annually for inflation) or
more in any one year (i.e., $153 million in 2016 dollars). This final
rule will not result in such expenditure. Accordingly, PHMSA is not
required to provide a written statement in accordance with the UMRA.

F. National Environmental Policy Act

    PHMSA has analyzed this final rule in accordance with section
102(2)(c) of the National Environmental Policy Act (42 U.S.C. 4332),
the Council on Environmental Quality regulations (40 CFR 1500-1508),
and DOT Order 5610.1C. PHMSA has published the results of this analysis
in an Environmental Assessment (EA) as required by 40 CFR part 1502.
    Based on the EA, PHMSA has determined this final rule would not
significantly affect the quality of the human environment. To assess
the impact of these regulations on the human environment, PHMSA
considered three alternative scenarios, including adopting the IFR
without amendments, the API RPs as written, and the provisions in this
final rule. PHMSA concludes that this action will not significantly
affect the quality of the human environment.
    To the extent that the measures taken to comply with the IFR did
not involve additional environmental impacts and instead served to
reduce the risk of natural gas incidents, PHMSA expects this final rule
to continue these positive environmental impacts. The information in
this Environmental Assessment report supports a Finding of No
Significant Impact (FONSI) for this final rule.

G. Executive Order 13132

    E.O. 13132 (``Federalism'') (64 FR 43255, Aug. 10, 1999) requires
PHMSA to develop an accountable process to ensure ``meaningful and
timely input by State and local officials in the development of
regulatory policies that have federalism implications.'' E.O. 13132
defines policies that have federalism implications to include
regulations that have ``substantial direct effects on the states, on
the relationship between the national government and the states, or the
distribution of power and responsibilities among the various levels of
government.''
    Section 6 of E.O. 13132 limits regulations that impose substantial
direct compliance costs on a State unless the Federal government
provides the funds necessary to pay the direct compliance costs
incurred by State and local governments. PHMSA also may not issue
regulations that preempt State law unless the agency consults with
State and local officials early in the process of developing the
regulation.
    PHMSA has concluded that this action will not have federalism

implications because it does not impose any direct compliance costs on
State or local governments. This final rule reduces the burden from
information collection and therefore does not impose any direct
compliance costs.
    With respect to preemption, E.O. 13132 requires agencies to
determine if their regulatory actions would preempt State law or impose
a substantial direct cost in compliance on them. Congress explicitly
addressed the preemption of State underground storage regulations in
the PIPES Act in section 60141(e). A State authority may adopt
additional or more stringent safety standards for intrastate
underground natural gas storage facilities as long as they are
compatible with Federal requirements. This statement is consistent with
the existing statute governing PHMSA's preemption of State regulation
over intrastate pipeline transportation facilities at 49 U.S.C.
60104(c).
    As noted in the IFR and the discussion above, interstate facilities
would not be subject to any regulatory safety requirements with respect
to their wellhead and downhole facilities in the absence of Federal
action. Even before the issuance of the IFR, the Federal Pipeline
Safety Laws preempted any State regulation purporting to affect
interstate pipeline transportation facilities. States with existing
underground natural gas storage regulations may continue to implement
those additional, and possibly more stringent, regulations on
intrastate gas storage facilities to the extent that the State
regulations are compatible with the new Federal regulations outlined in
this final rule. Interstate underground storage facilities are now
subject to the new Federal regulations, whereas previously, those
facilities were not subject to any regulatory safety requirements.

H. Executive Order 13175

    E.O. 13175 (``Consultation and Coordination with Indian Tribal
Governments'') reaffirms the Federal Government's commitment to the
Tribal sovereignty, self-determination, and self-government. To that
end, the agencies must consult with Tribal governments as they develop
policy on issues that may affect those communities. This final rule
imposes no substantial direct compliance costs or burdens on Tribal
governments. So, the requirements of E.O. 13175 do not apply.

I. Executive Order 13211

    E.O. 13211 (``Actions Concerning Regulations That Significantly
Affect Energy Supply, Distribution, or Use'') requires Agencies to
prepare a Statement of Energy Effects when undertaking certain actions.
Such Statements of Energy Effects shall describe the effects of certain
regulatory actions on energy supply, distribution, or use, notably: (i)
Any adverse effects on energy supply, distribution, or use (including a
shortfall in supply, price increases, and increased use of foreign
supplies) should the proposal be implemented, and (ii) reasonable
alternatives to the action with adverse energy effects and the expected
effects of such alternatives on energy supply, distribution, and use.
    In a memorandum on E.O. 13211, OMB outlines the criteria for
assessing whether a regulation constitutes a ``significant energy
action'' and would have a ``significant adverse effect on the supply,
distribution or use of energy.'' \33\ Of the potentially adverse
effects on the supply, distribution, relevant to this final rule, only
one of the criteria is applicable to this final rule: The ability of
interstate operators to pass costs on to consumers. However, because
this final rule results in cost savings, it would not increase the cost
of energy distribution.
---------------------------------------------------------------------------

    \33\ E.O. 13211 was issued May 18, 2002. The Office of
Management and Budget later released an Implementation Guidance
memorandum on July 13, 2002.
---------------------------------------------------------------------------

J. National Technology Transfer and Advancement Act of 1995

    The National Technology Transfer and Advancement Act of 1995, 15
U.S.C. 272, directs Federal agencies to use voluntary consensus
standards instead of government-written standards when appropriate. The
OMB Circular A-119, ``Federal Participation in the Development and Use
of Voluntary Consensus Standards and in Conformity Assessment
Activities,'' sets the policy for Federal use and development of
voluntary consensus standards. As defined in OMB Circular A-119,
voluntary consensus standards are technical standards developed or
adopted by domestic and international organizations. These
organizations use agreed-upon procedures to update and revise their
published standards every three to five years to reflect modern
technology and best technical practices.
    Accordingly, PHMSA has the responsibility for determining, via
petitions or otherwise, which standards it should add, update, revise,
or remove from 49 CFR subchapter D. PHMSA handles these changes to
incorporate by reference materials via the rulemaking process, which
allows the public and regulated entities to provide input. During the
rulemaking process, PHMSA must also obtain approval from the Office of
the Federal Register to incorporate by reference any new materials.
    PHMSA worked to make the materials incorporated by reference
reasonably available to interested parties. PHMSA is prohibited from
issuing a regulation that incorporates by reference any document unless
that document is available to the public, free of charge (Pub. L. 113-
30, Aug. 9, 2013).
    To meet these requirements, PHMSA negotiated agreements with all
but one of the respective standards developing organizations (SDO) with
standards already incorporated by reference in the PSRs to make
viewable copies of those standards available to the public at no cost.
PHMSA has an agreement in place with API, who voluntarily made the RP
1171 and RP 1170 available on API's public website. API's mailing
address and the website are listed in 49 CFR part 192.

K. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 \34\ (PRA), Public Law 104-13,
is implemented by OMB and requires that agencies submit a supporting
statement to OMB for any information collection that solicits the same
data from more than nine parties. The PRA seeks to ensure that Federal
agencies balance their need to collect information with the paperwork
burden imposed on the public by the collection.
---------------------------------------------------------------------------

    \34\ Substantially amending the PRA of 1980 (Pub. L. 96-511).
---------------------------------------------------------------------------

    The definition of ``information collection'' includes activities
required by regulations, such as for permit development, monitoring,
recordkeeping, and reporting. The term ``burden'' refers to the ``time,
effort, or financial resources'' the public expends to provide
information to or for a Federal agency or to fulfill statutory or
regulatory requirements otherwise. The PRA paperwork burden is measured
in terms of annual time and financial resources the public devotes to
meet one-time and recurring information requests.\35\ Information
collection activities may include:
---------------------------------------------------------------------------

    \35\ 44 U.S.C. 3502(2); 5 CFR 1320.3(b).
---------------------------------------------------------------------------

     Reviewing instructions;
     Using technology to collect, process, and disclose
information;
     Adjusting existing practices to comply with requirements;
     Searching data sources;
     Completing and reviewing the response; and
     Transmitting or disclosing information.

    Agencies must provide information to OMB on the parties affected,
the annual reporting burden, the annualized cost of responding to the
information collection, and whether the request significantly affects a
substantial number of small entities. An agency may not conduct or
sponsor, and a person is not required to respond to, an information
collection unless it displays a currently valid OMB control number. OMB
has previously approved the information collection requirements
contained in IFR under the provisions of the PRA. Since issuing the
IFR, PHMSA has estimated changes in reporting and recordkeeping burden
and submitted a revised information collection request to OMB for
approval. Below is a summary the information collections requested or
approved for this final rule.
1. Incident Reporting
    PHMSA is finalizing the IFR's revision to 49 CFR 191.15 that
requires operators to give notice upon the discovery of incidents
meeting the definition at 49 CFR 191.3. Operators must submit DOT Form
PHMSA-F7100.2 as soon as practicable but not more than 30 days after
they detect the event. On August 16, 2017, OMB approved the use of this
form, ``Incident and Annual Reports for Gas Pipeline Operators,'' under
Control No. 2137-0522.
2. Safety-Related Conditions Reporting
    PHMSA is finalizing the IFR's revision to Sec.  191.23 that
requires operators to report a safety-related condition no later than
ten working days after its discovery. PHMSA estimates it will receive
four annual responses at an annual burden of 24 hours from each
operator. This estimate remains unchanged from the IFR's estimate.
    On August 16, 2017, OMB approved this information collection,
``Reporting Safety-related conditions on Gas, Hazardous Liquid, and
Carbon Dioxide Pipelines, and Liquefied Natural Gas Facilities,'' under
Control No. 2137-0578, expiring on August 31, 2019. There is no form
dedicated to this information collection. Instead, PHMSA will accept
safety-related condition reports in a variety of formats by mail or
fax. Instructions for filing are in Sec.  191.25, ``Filing safety-
related condition reports.''
3. Annual Reporting
    PHMSA is finalizing the IFR's amendment to Sec.  191.17, related to
annual reporting. Operators must submit data Form 7100.4-1,
``Underground Natural Gas Storage Annual Report,'' no later than every
March 15. The annual report must include data from the previous
calendar year. For example, the first annual report was due no later
than March 15, 2018, and must have included data from the 2017 calendar
year. OMB approved this information collection, ``Incident and Annual
Reports for Gas Pipeline Operators,'' on August 16, 2017, under Control
No. 2137-0522, expiring on August 31, 2020.
    In the IFR, PHMSA estimated a reporting burden of 8 hours to
complete each annual report form. That estimate included times for
reviewing instructions, gathering the necessary data, and responding to
each question. However, PHMSA revised the hourly burden estimate from 8
hours to 20 hours per response based on public comments, which are
available for review in Docket No. PHMSA-2016-0016.
4. National Registry of Operators and Notification of Changes
    This information collection consists of two parts. The first part
requires operators to obtain or validate an Operator Identification
Number (OPID) from PHMSA. Under the IFR, PHMSA expected to receive 24
OPID requests and 25 ad hoc notifications. PHMSA estimated that each
operator would take 1 hour to complete the OPID Assignment form, PHMSA
F 1000.1. PHMSA is making no changes to these estimates in this final
rule.
    The IFR revised Sec.  191.22 to require operators to notify PHMSA,
not less than 60 days prior, of certain events. OMB approved this
information collection on July 5, 2017, and it will expire on July 31,
2020. PHMSA estimates that this final rule will result in no additional
hourly or cost burdens beyond those estimated in the IFR. PHMSA
estimates the combined annual burden for OPID Assignment and Operator
Notification at 49 hours. (OMB Control No. 2137-0627).
5. Recordkeeping
    As discussed throughout this rulemaking, operators must create and
maintain records and in accordance with RP 1170 and RP 1171. Operators
must also create and maintain written procedure manuals for integrity
and program operations. Because of these requirements in the IFR, and
codified in this final rule, 136 entities will be required to keep
records. PHMSA estimates that it will take operators approximately 1.6
hours annually to maintain the required records. The cost and hourly
burden are based on 136 companies with a loaded labor cost of $88 per
hour. OMB approved this information collection under OMB Control No.
2137-0634 on October 11, 2018, and it will expire on October 31, 2021.
No additional collection or recordkeeping requirements would be imposed
on the public by modifying the requirements of this final rule.

L. Privacy Act

    In accordance with the Privacy Act of 1974, 5 U.S.C. 552(a), anyone
can search the electronic form of all documents received into any of
our dockets by the name of the individual submitting the document (or
signing the document, if submitted on behalf of an association,
business, labor union, etc.). The complete Privacy Act statement is in
the Federal Register published on April 11, 2000, (65 FR 19477-78), or
at the website: https://www.transportation .gov/dot-website-privacy-
policy.

M. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is the unique identifier for
each regulatory action listed in the Unified Agenda of Federal
Regulations. The Regulatory Information Service Center publishes the
Unified Agenda in April and October of each year. Use the RIN number to
find this rulemaking in the Unified Agenda. The RIN number for this
rulemaking is RIN 2137-AF22.

List of Subjects

49 CFR Part 191

    Underground natural gas storage facility reporting requirements.

49 CFR Part 192

    Definitions, Incorporation by reference, Underground natural gas
storage facility safety.

49 CFR Part 195

    National Registry of Operators.

    In consideration of the foregoing, PHMSA is amending 49 CFR parts
191, 192, and 195 as follows:

PART 191--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE;
ANNUAL REPORTS, INCIDENT REPORTS, AND SAFETY-RELATED CONDITION
REPORTS

0
1. The authority citation for part 191 continues to read as follows:

    Authority: 49 U.S.C. 5121, 60102, 60103, 60104, 60108, 60117,
60118, 60124, 60132, and 60141; and 49 CFR 1.97.

0
2. In Sec.  191.1, revise paragraph (a) to read as follows:

Sec.  191.1   Scope.

    (a) This part prescribes requirements for the reporting of
incidents, safety-

related conditions, annual pipeline summary data, National Registry of
Operators information, and other miscellaneous conditions by operators
of underground natural gas storage facilities and natural gas pipeline
facilities located in the United States or Puerto Rico, including
underground natural gas storage facilities and pipelines within the
limits of the Outer Continental Shelf, as that term is defined in the
Outer Continental Shelf Lands Act (43 U.S.C. 1331).
* * * * *

0
3. In Sec.  191.3, the definitions of ``Incident'' and ``Underground
natural gas storage facility'' are revised to read as follows:

Sec.  191.3   Definitions.

* * * * *
    Incident means any of the following events:
    (1) An event that involves a release of gas from a pipeline, gas
from an underground natural gas storage facility (UNGSF), liquefied
natural gas, liquefied petroleum gas, refrigerant gas, or gas from an
LNG facility, and that results in one or more of the following
consequences:
    (i) A death, or personal injury necessitating in-patient
hospitalization;
    (ii) Estimated property damage of $50,000 or more, including a loss
to the operator and others, or both, but excluding the cost of gas
lost; or
    (iii) Unintentional estimated gas loss of three million cubic feet
or more.
    (2) An event that results in an emergency shutdown of an LNG
facility or a UNGSF. Activation of an emergency shutdown system for
reasons other than an actual emergency within the facility does not
constitute an incident.
    (3) An event that is significant in the judgment of the operator,
even though it did not meet the criteria of paragraph (1) or (2) of
this definition.
* * * * *
    Underground natural gas storage facility (UNGSF) means an
underground natural gas storage facility or UNGSF as defined in Sec.
192.3 of this chapter.

0
4. In Sec.  191.15, revise paragraphs (c) and (d) to read as follows:

Sec.  191.15   Transmission systems; gathering systems; liquefied
natural gas facilities; and underground natural gas storage facilities:
Incident report.

* * * * *
    (c) Underground natural gas storage facility. Each operator of a
UNGSF must submit DOT Form PHMSA F7100.2 as soon as practicable but not
more than 30 days after the detection of an incident required to be
reported under Sec.  191.5.
    (d) Supplemental report. Where additional related information is
obtained after an operator submits a report under paragraph (a), (b),
or (c) of this section, the operator must make a supplemental report as
soon as practicable, with a clear reference by date to the original
report.

0
5. In Sec.  191.17, revise paragraph (c) to read as follows:

Sec.  191.17   Transmission systems; gathering systems; liquefied
natural gas facilities; and underground natural gas storage facilities:
Annual report.

* * * * *
    (c) Underground natural gas storage facility. Each operator of a
UNGSF must submit an annual report through DOT Form PHMSA 7100.4-1.
This report must be submitted each year, no later than March 15, for
the preceding calendar year.

0
6. Revise Sec.  191.22 to read as follows:

Sec.  191.22   National Registry of Operators.

    (a) OPID request. Effective January 1, 2012, each operator of a gas
pipeline, gas pipeline facility, UNGSF, LNG plant, or LNG facility must
obtain from PHMSA an Operator Identification Number (OPID). An OPID is
assigned to an operator for the pipeline, pipeline facility, or
pipeline system for which the operator has primary responsibility. To
obtain an OPID, an operator must submit an OPID Assignment Request DOT
Form PHMSA F 1000.1 through the National Registry of Operators in
accordance with Sec.  191.7.
    (b) OPID validation. An operator who has already been assigned one
or more OPIDs by January 1, 2011, must validate the information
associated with each OPID through the National Registry of Operators at
https://portal.phmsa .dot.gov, and correct that information as
necessary, no later than June 30, 2012.
    (c) Changes. Each operator of a gas pipeline, gas pipeline
facility, UNGSF, LNG plant, or LNG facility must notify PHMSA
electronically through the National Registry of Operators at https://portal.phmsa.dot.gov of certain events.
    (1) An operator must notify PHMSA of any of the following events
not later than 60 days before the event occurs:
    (i) Construction of any planned rehabilitation, replacement,
modification, upgrade, uprate, or update of a facility, other than a
section of line pipe, that costs $10 million or more. If 60-day notice
is not feasible because of an emergency, an operator must notify PHMSA
as soon as practicable;
    (ii) Construction of 10 or more miles of a new pipeline;
    (iii) Construction of a new LNG plant, LNG facility, or UNGSF; or
    (iv) Maintenance of a UNGSF that involves the plugging or
abandonment of a well, or that requires a workover rig and costs
$200,000 or more for an individual well, including its wellhead. If 60-
days' notice is not feasible due to an emergency, an operator must
promptly respond to the emergency and notify PHMSA as soon as
practicable.
    (2) An operator must notify PHMSA of any of the following events
not later than 60 days after the event occurs:
    (i) A change in the primary entity responsible (i.e., with an
assigned OPID) for managing or administering a safety program required
by this part covering pipeline facilities operated under multiple
OPIDs;
    (ii) A change in the name of the operator;
    (iii) A change in the entity (e.g., company, municipality)
responsible for an existing pipeline, pipeline segment, pipeline
facility, UNGSF, or LNG facility;
    (iv) The acquisition or divestiture of 50 or more miles of a
pipeline or pipeline system subject to part 192 of this subchapter; or
    (v) The acquisition or divestiture of an existing UNGSF, or an LNG
plant or LNG facility subject to part 193 of this subchapter.
    (d) Reporting. An operator must use the OPID issued by PHMSA for
all reporting requirements covered under this subchapter and for
submissions to the National Pipeline Mapping System.

0
7. Revise Sec.  191.23 to read as follows:

Sec.  191.23   Reporting safety-related conditions.

    (a) Except as provided in paragraph (b) of this section, each
operator shall report in accordance with Sec.  191.25 the existence of
any of the following safety-related conditions involving facilities in
service:
    (1) In the case of a pipeline (other than an LNG facility) that
operates at a hoop stress of 20% or more of its specified minimum yield
strength, general corrosion that has reduced the wall thickness to less
than that required for the maximum allowable operating pressure, and
localized corrosion pitting to a degree where leakage might result.
    (2) In the case of a UNGSF, general corrosion that has reduced the
wall thickness of any metal component to less than that required for
the well's maximum operating pressure, or localized corrosion pitting
to a degree where leakage might result.
    (3) Unintended movement or abnormal loading by environmental
causes, such as an earthquake, landslide, or flood, that impairs the
serviceability of a pipeline or the

structural integrity or reliability of a UNGSF or LNG facility that
contains, controls, or processes gas or LNG.
    (4) Any crack or other material defect that impairs the structural
integrity or reliability of a UNGSF or an LNG facility that contains,
controls, or processes gas or LNG.
    (5) Any material defect or physical damage that impairs the
serviceability of a pipeline that operates at a hoop stress of 20% or
more of its specified minimum yield strength, or the serviceability or
the structural integrity of a UNGSF.
    (6) Any malfunction or operating error that causes the pressure of
a pipeline or underground natural gas storage facility or LNG facility
that contains or processes natural gas or LNG to rise above its maximum
well operating pressure (or working pressure for LNG facilities) plus
the margin (build-up) allowed for operation of pressure limiting or
control devices.
    (7) A leak in a pipeline, UNGSF, or LNG facility containing or
processing gas or LNG that constitutes an emergency.
    (8) Inner tank leakage, ineffective insulation, or frost heave that
impairs the structural integrity of an LNG storage tank.
    (9) Any safety-related condition that could lead to an imminent
hazard and causes (either directly or indirectly by remedial action of
the operator), for purposes other than abandonment, a 20% or more
reduction in operating pressure or shutdown of operation of a pipeline,
UNGSF, or an LNG facility that contains or processes gas or LNG.
    (10) [Reserved]
    (11) Any malfunction or operating error that causes the pressure of
a UNGSF using a salt cavern for natural gas storage to fall below its
minimum allowable operating pressure, as defined by the facility's
State or Federal operating permit or certificate, whichever pressure is
higher.
    (b) A report is not required for any safety-related condition
that--
    (1) Exists on a master meter system or a customer-owned service
line;
    (2) Is an incident or results in an incident before the deadline
for filing the safety-related condition report;
    (3) Exists on a pipeline (other than an UNGSF or an LNG facility)
that is more than 220 yards (200 meters) from any building intended for
human occupancy or outdoor place of assembly, except that reports are
required for conditions within the right-of-way of an active railroad,
paved road, street, or highway; or
    (4) Is corrected by repair or replacement in accordance with
applicable safety standards before the deadline for filing the safety-
related condition report, except that reports are required for
conditions under paragraph (a)(1) of this section other than localized
corrosion pitting on an effectively coated and cathodically protected
pipeline.
    (5) Exists on an UNGSF, where a well or wellhead is isolated,
allowing the reservoir or cavern and all other components of the
facility to continue to operate normally and without pressure
restriction.

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE:
MINIMUM FEDERAL SAFETY STANDARDS

0
8. The authority citation for part 192 continues to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110,
60113, 60116, 60118, 60137, and 60141; and 49 CFR 1.97.

0
9. In Sec.  192.3, revise the definition of ``Underground natural gas
storage facility'' to read as follows:

Sec.  192.3   Definitions.

* * * * *
    Underground natural gas storage facility (UNGSF) means a gas
pipeline facility that stores natural gas underground incidental to the
transportation of natural gas, including:
    (1)(i) A depleted hydrocarbon reservoir;
    (ii) An aquifer reservoir; or
    (iii) A solution-mined salt cavern.
    (2) In addition to the reservoir or cavern, a UNGSF includes
injection, withdrawal, monitoring, and observation wells; wellbores and
downhole components; wellheads and associated wellhead piping; wing-
valve assemblies that isolate the wellhead from connected piping beyond
the wing-valve assemblies; and any other equipment, facility, right-of-
way, or building used in the underground storage of natural gas.
* * * * *

0
10. Republished Sec.  192.7(b)(10) and (11) continue to read as
follows:

Sec.  192.7  What documents are incorporated by reference partly or
wholly in this part?

* * * * *
    (b) * * *
    (10) API Recommended Practice 1170, ``Design and Operation of
Solution-mined Salt Caverns Used for Natural Gas Storage,'' First
edition, July 2015 (API RP 1170), IBR approved for Sec.  192.12.
    (11) API Recommended Practice 1171, ``Functional Integrity of
Natural Gas Storage in Depleted Hydrocarbon Reservoirs and Aquifer
Reservoirs,'' First edition, September 2015, (API RP 1171), IBR
approved for Sec.  192.12.
* * * * *

0
11. Revise Sec.  192.12 to read as follows:

Sec.  192.12  Underground natural gas storage facilities.

    Underground natural gas storage facilities (UNGSFs), as defined in
Sec.  192.3, are not subject to any requirements of this part aside
from this section.
    (a) Salt cavern UNGSFs. (1) Each UNGSF that uses a solution-mined
salt cavern for natural gas storage and was constructed after March 13,
2020, must meet all the provisions of API RP 1170 (incorporated by
reference, see Sec.  192.7), the provisions of section 8 of API RP 1171
(incorporated by reference, see Sec.  192.7) that are applicable to the
physical characteristics and operations of a solution-mined salt cavern
UNGSF, and paragraphs (c) and (d) of this section prior to commencing
operations.
    (2) Each UNGSF that uses a solution-mined salt cavern for natural
gas storage and was constructed between July 18, 2017, and March 13,
2020, must meet all the provisions of API RP 1170 (incorporated by
reference, see Sec.  192.7) and paragraph (c) of this section prior to
commencing operations, and must meet all the provisions of section 8 of
API RP 1171 (incorporated by reference, see Sec.  192.7) that are
applicable to the physical characteristics and operations of a
solution-mined salt cavern UNGSF, and paragraph (d) of this section, by
March 13, 2021.
    (3) Each UNGSF that uses a solution-mined salt cavern for natural
gas storage and was constructed on or before July 18, 2017, must meet
the provisions of API RP 1170 (incorporated by reference, see Sec.
192.7), sections 9, 10, and 11, and paragraph (c) of this section, by
January 18, 2018, and must meet all provisions of section 8 of API RP
1171 (incorporated by reference, see Sec.  192.7) that are applicable
to the physical characteristics and operations of a solution-mined salt
cavern UNGSF, and paragraph (d) of this section, by March 13, 2021.
    (b) Depleted hydrocarbon and aquifer reservoir UNGSFs. (1) Each
UNGSF that uses a depleted hydrocarbon reservoir or an aquifer
reservoir for natural gas storage and was constructed after July 18,
2017, must meet all provisions of API RP 1171 (incorporated by
reference, see Sec.  192.7), and paragraphs (c) and (d) of this
section, prior to commencing operations.
    (2) Each UNGSF that uses a depleted hydrocarbon reservoir or an
aquifer reservoir for natural gas storage and was

constructed on or before July 18, 2017, must meet the provisions of API
RP 1171 (incorporated by reference, see Sec.  192.7), sections 8, 9,
10, and 11, and paragraph (c) of this section, by January 18, 2018, and
must meet all provisions of paragraph (d) of this section by March 13,
2021.
    (c) Procedural manuals. Each operator of a UNGSF must prepare and
follow for each facility one or more manuals of written procedures for
conducting operations, maintenance, and emergency preparedness and
response activities under paragraphs (a) and (b) of this section. Each
operator must keep records necessary to administer such procedures and
review and update these manuals at intervals not exceeding 15 months,
but at least once each calendar year. Each operator must keep the
appropriate parts of these manuals accessible at locations where UNGSF
work is being performed. Each operator must have written procedures in
place before commencing operations or beginning an activity not yet
implemented.
    (d) Integrity management program--(1) Integrity management program
elements. The integrity management program for each UNGSF under this
paragraph (d) must consist, at a minimum, of a framework developed
under API RP 1171 (incorporated by reference, see Sec.  192.7), section
8 (``Risk Management for Gas Storage Operations''), and that also
describes how relevant decisions will be made and by whom. An operator
must make continual improvements to the program and its execution. The
integrity management program must include the following elements:
    (i) A plan for developing and implementing each program element to
meet the requirements of this section;
    (ii) An outline of the procedures to be developed;
    (iii) The roles and responsibilities of UNGSF staff assigned to
develop and implement the procedures required by this paragraph (d);
    (iv) A plan for how staff will be trained in awareness and
application of the procedures required by this paragraph (d);
    (v) Timelines for implementing each program element, including the
risk analysis and baseline risk assessments; and
    (vi) A plan for how to incorporate information gained from
experience into the integrity management program on a continuous basis.
    (2) Integrity management baseline risk-assessment intervals. No
later than March 13, 2024, each UNGSF operator must complete the
baseline risk assessments of all reservoirs and caverns, and at least
40% of the baseline risk assessments for each of its UNGSF wells
(including wellhead assemblies), beginning with the highest-risk wells,
as identified by the risk analysis process. No later than March 13,
2027, an operator must complete baseline risk assessments on all its
wells (including wellhead assemblies). Operators may use prior risk
assessments for a well as a baseline (or part of the baseline) risk
assessment in implementing its initial integrity management program, so
long as the prior assessments meet the requirements of API RP 1171
(incorporated by reference, see Sec.  192.7), section 8, and continue
to be relevant and valid for the current operating and environmental
conditions. When evaluating prior risk-assessment results, operators
must account for the growth and effects of indicated defects since the
time the assessment was performed.
    (3) Integrity management re-assessment intervals. The operator must
determine the appropriate interval for risk assessments under API RP
1171 (incorporated by reference, see Sec.  192.7), subsection 8.7.1,
and this paragraph (d) for each reservoir, cavern, and well, using the
results from earlier assessments and updated risk analyses. The re-
assessment interval for each reservoir, cavern, and well must not
exceed seven years from the date of the baseline assessment for each
reservoir, cavern, and well.
    (4) Integrity management procedures and recordkeeping. Each UNGSF
operator must establish and follow written procedures to carry out its
integrity management program under API RP 1171 (incorporated by
reference, see Sec.  192.7), section 8 (``Risk Management for Gas
Storage Operations''), and this paragraph (d). The operator must also
maintain, for the useful life of the UNGSF, records that demonstrate
compliance with the requirements of this paragraph (d). This includes
records developed and used in support of any identification,
calculation, amendment, modification, justification, deviation, and
determination made, and any action taken to implement and evaluate any
integrity management program element.

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

0
12. The authority citation for part 195 continues to read as follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60116,
60118, 60132, 60137, and 49 CFR 1.97.

0
13. In Sec.  195.64:
0
a. Revise the section heading;
0
b. Remove ``National Registry of Pipeline and LNG Operators'' and add
``National Registry of Operators'' in its place everywhere it appears;
and
0
c. Remove the website address ``http://opsweb.phmsa.dot.gov'' in
paragraphs (b) and (c) and add ``https://portal.phmsa.dot.gov'' in its
place.
    The revision reads as follows:

Sec.  195.64  National Registry of Operators.

* * * * *

    Issued in Washington, DC, on January 10, 2020, under authority
delegated in 49 CFR 1.97.
Howard R. Elliott,
Administrator.
[FR Doc. 2020-00565 Filed 2-11-20; 8:45 am]
 BILLING CODE 4910-60-P


R. Bruce Keiner, Jr.

(202) 624-2615

<EMAIL_ADDRESS> March 22, 2002

016

18272.222

Mr. Paul L. Gretch

Director

Office of International Aviation

Department of Transportation

400 Seventh Street, S.W.

Room 6402

Washington, DC 20590

Re:	Applications of Continental and KLM, Docket OST-01-10880

Dear Mr. Gretch:

By Notice of Action Taken dated November 29, 2001, the Department granted the applications of Continental and KLM for codeshare authority.  This is to notify the Department, pursuant to condition (c) of the Notice of Action Taken, that Continental and KLM intend to cease codeshare service on the following route segment effective April 1, 2002:

	Route	Operating Carrier

Amsterdam-Antwerp	KLM Cityhopper

Continental and KLM exel will codeshare between Amsterdam and Antwerp as soon as KLM exel receives a statement of authorization permitting such codesharing.

							Respectfully submitted,

R. Bruce Keiner,  Jr.

					Counsel for

Continental Airlines, Inc.

cc:	Teresa Bingham, Mary Street, George Wellington

1893672

(…continued)

(continued…)

  STYLEREF "Recipient Name"  Mr. Paul L. Gretch

  DATE \@ "MMMM d, yyyy" \* MERGEFORMAT  June 5, 2002

Page   PAGE  2


[Federal Register Volume 85, Number 37 (Tuesday, February 25, 2020)]
[Notices]
[Pages 10784-10786]
[FR Doc No: 2020-03645]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88235; File No. SR-CBOE-2020-012]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending its
Financial Incentive Programs for Global Trading Hours (GTH) Lead
Market-Makers (LMMs) in VIX Options

February 19, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 10, 2020, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its financial incentive programs for Global Trading Hours
(``GTH'') Lead Market-Makers (``LMMs'') in VIX options. The text of the
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, 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 included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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 amend its GTH VIX LMMs Incentive Program,
effective February 10, 2020.
    By way of background, pursuant to the Fees Schedule, an LMM in VIX
will receive a rebate for that month in the amount of a pro-rata share
of a compensation pool equal to $20,000 times the number of LMMs in
that class (or pro-rated amount if an appointment begins after the
first trading day of the month or ends prior to the last trading day of
the month) if the LMM(s): provide continuous electronic quotes during
GTH that meet or exceed the following heightened quoting standards in
at least 99% of the VIX series 90% of the time in a given month:

------------------------------------------------------------------------
                                                                Maximum
                        Premium level                          allowable
                                                                 width
------------------------------------------------------------------------
$0.00-$100.00...............................................      $10.00
$100.01-$200.00.............................................      $16.00
Greater than $200.000.......................................      $24.00
------------------------------------------------------------------------

    Additionally, a GTH LMM in VIX is not currently obligated to
satisfy the heightened quoting standards described in the table above.
Rather, an LMM is eligible to receive the rebate if they satisfy the
heightened quoting standards above, which the Exchange believes
encourage LMMs to provide liquidity during GTH. The Exchange may also
consider other exceptions to this quoting standard based on
demonstrated legal or regulatory requirements or other mitigating
circumstances.
    The Exchange now proposes to amend the GTH VIX LMM Program to
separate the quoting standard for VIX and VIX Weeklys (``VIXW''); adopt
a separate rebate for VIXW, increasing the total available rebate;
eliminate the current compensation pool structure; and update the
period in which the heightened quoting standard will apply for the
month of February 2020. First, the Exchange proposes to separate the
quoting standard for VIX and VIXW and adopt a separate rebate for
VIXW.\3\ As proposed, if the LMM meets the heightened quoting standard
described above for VIX, the LMM will continue to receive a rebate of
$20,000 for VIX, and if the LMM separately meets the heightened quoting
standard described above for VIXW, the LMM will receive an additional
rebate of $5,000 for VIXW (for a total increased rebate of $25,000 per
month for meeting the standard for both VIX and VIXW). The Exchange
notes this is substantively identical to the format of the Exchange's
current GTH SPX/SPXW LMM program and the manner in which a GTH SPX/SPXW
LMM may meet the heightened quoting requirements today.\4\ The Exchange
also notes that like that of a SPX/SPXW LMM, an LMM appointed in VIX
also holds an appointment in VIXW.
---------------------------------------------------------------------------

    \3\ The Exchange also proposes to update the title of the
program accordingly to ``GTH VIX/VIXW LMM Program''.
    \4\ See Cboe Options Fees Schedule, ``GTH SPX/SPXW LMM Incentive
Program''.
---------------------------------------------------------------------------

    Next, the Exchange proposes to eliminate the current compensation
pool structure and provide instead a straight rebate per product per
LMM, which is also consistent with the manner in which the GTH SPX/SPXW
LMM program is administered. More specifically, if a GTH VIX/VIXW LMM
meets the heightened quoting standard, it will receive the applicable
rebate per product, described above. The Exchange also proposes to
eliminate the example of how the compensation pool works as it is no
longer necessary given the elimination of the compensation pool
structure. The Exchange believes the program as amended will continue
to encourage the provision of liquidity in VIX and VIXW options during
GTH, including during the open. Also, as is the case today, GTH VIX/
VIXW LMM(s) will still not be obligated to satisfy the amended
heightened quoting standard. Additionally, the Exchange notes that a
VIX/VIXW GTH LMM may need to undertake expenses to be able to quote at
a significantly heightened standard in VIX/VIXW, such as purchase more
logical connectivity based on its increased capacity needs.
    Finally, for the month of February 2020, the Exchange proposes to
apply the heightened quoting standard from February 10 to February 29,
in light of the mid-month proposal to modify the rebate quoting
standard. The Exchange also notes the previous LMM term expired January
31, 2020, and the Exchange intends to appoint a new LMM effective
February 10, 2020. Such LMM will be eligible for the full financial
payment for the month February 2020, if the LMM meets the heightened
quoting standard from February 10 to February 29. The Exchange also
proposes to remove obsolete language regarding applicability of the
program in November 2019.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
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. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\7\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that separating the quoting standard for VIX
and VIXW, and adopting a separate rebate for VIXW of $5,000 is
reasonable because it provides an additional rebate for GTH VIX LMM(s),
who also hold appointments in VIXW, for meeting the heightened quoting
standard and takes into consideration costs an LMM may incur. The
Exchange also believes the proposed amount for meeting the requirements
in VIXW series will continue to incentivize an appointed LMM to meet
the GTH quoting standards for VIXW, and continue to meet the GTH
quoting standard for VIX, thereby providing liquid and active markets,
which facilitates tighter spreads and increased trading opportunities
to the benefit of all market participants. The proposed change also
provides harmonization between the GTH LMM programs (i.e., conforms to
the format of the GTH SPX/SPXW LMM Program \8\). The Exchange believes
amending the GTH VIX/VIXW LMM Program by removing the compensation pool
and providing for a straight rebate per product is reasonable as a GTH
VIX/VIXW GTH LMM will continue to be eligible to receive the current
financial payment for VIX and proposed payment for VIXW. The Exchange
believes the straight rebate simplifies administration of the Program's
rebates for market participant and the monthly payment will continue to
be commensurate with the heightened quoting standard, while still
acting as an incentive for a GTH VIX LMM to provide liquid and active
markets in VIX and VIXW during GTH. The Exchange believes that it is
reasonable to apply the quoting standard from February 10 to February
29 for the month of February 2020, in light of the mid-month proposal
to modify the heighted quoting standard and in light of the fact that
the previous LMM term expired January 31, 2020 and the Exchange intends
to appoint a new LMM effective February 10, 2020 (i.e., there was no
GTH LMM appointed as of February 3, this timeframe will have no impact
on rebates available to any market participants).
---------------------------------------------------------------------------

    \8\ See supra note 4.
---------------------------------------------------------------------------

    The Exchange believes it is equitable and not unfairly
discriminatory to continue to only offer this financial incentive to
GTH VIX (and VIXW, as proposed) LMM(s) because it benefits all market
participants trading VIX/VIXW during GTH to encourage the LMM(s) to
satisfy the heightened quoting standard, which ensures, and may even
provide increased, liquidity, which thereby may

provide more trading opportunities and tighter spreads. Indeed, the
Exchange notes that the GTH VIX/VIXW LMM(s) serve a crucial role in
providing quotes and the opportunity for market participants to trade
VIX/VIXW, which can lead to increased volume, providing a robust
market. The Exchange ultimately wishes to ensure a GTH LMM is
adequately incentivized to provide liquid and active markets in VIX/
VIXW during GTH to encourage liquidity. The Exchange believes that the
program, even as amended, will continue to encourage increased quoting
to add liquidity in VIX, thereby protecting investors and the public
interest. The Exchange also notes that a VIX GTH LMM may have added
costs each month that it needs to undertake in order to satisfy that
heightened quoting standard (e.g., having to purchase additional
logical connectivity). The Exchange believes the proposed amendments
are equitable and not unfairly discriminatory because they apply to any
TPH that is appointed as a GTH VIX/VIXW LMM equally. Additionally, if a
GTH VIX/VIXW LMM does not satisfy the heightened quoting standard for
any given month, then it simply will not receive the offered payment
for that month.

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 intramarket or intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
First, the Exchange believes the proposed rule change does impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act because it applies uniformly
to similarly situated GTH VIX/VIXW LMMs, which market participants play
a crucial role in providing active and liquid markets in VIX/VIXW
during GTH. The Exchange does not believe that the proposed rule change
will impose any burden on intermarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act because VIX/
VIXW options are a proprietary product that will only be traded on Cboe
Options. To the extent that the proposed changes make Cboe Options a
more attractive marketplace for market participants at other exchanges,
such market participants are welcome to become Cboe Options market
participants.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CBOE-2020-012 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-CBOE-2020-012. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2020-012 and should be submitted on
or before March 17, 2020.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020-03645 Filed 2-24-20; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: November 19, 2007 (Volume 72, Number 222)]
[Proposed Rules]
[Page 64960-64961]
[DOCID:fr19no07-16]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2007-29332; Directorate Identifier 2007-NM-172-AD]
RIN 2120-AA64

Airworthiness Directives; ATR Model ATR42 and ATR72 Airplanes

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

ACTION: Notice of proposed rulemaking (NPRM); reopening of comment
period.

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

SUMMARY: This document announces a reopening of the comment period for
the above-referenced NPRM. The NPRM proposed the adoption of a new
airworthiness directive for all ATR Model ATR42 and ATR72 airplanes.
That NPRM invites comments concerning the proposed requirements for
revising the Airworthiness Limitations Section of the Instructions for
Continued Airworthiness to incorporate new limitations for fuel tank
systems. This reopening of the comment period is necessary to provide
additional opportunity for public comment on the proposed requirements
of that NPRM.

DATES: We must receive comments on this proposed AD by December 19,
2007.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this AD, contact ATR, 316
Route de Bayonne, 31060 Toulouse, Cedex 03, France.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD

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

FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer,
International Branch, ANM-116, FAA, Transport Airplane Directorate,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-1137; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: We proposed to amend 14 CFR part 39 with a
notice of proposed rulemaking (NPRM) for an AD for all ATR Model ATR42
and ATR72 airplanes. The NPRM was published in the Federal Register on
September 28, 2007 (72 FR 55113). The NPRM proposed to require revising
the Airworthiness Limitations Section of the Instructions for Continued
Airworthiness to incorporate new limitations for fuel tank systems. The
NPRM action invites comments on the overall regulatory, economic,
environmental, and energy aspects of the proposed AD.

Actions Since NPRM Was Issued

    Since we issued the NPRM, the DOT's Docket Management System (DMS)
was replaced by the Federal Docket Management System (FDMS). FDMS is a
government-wide, electronic docket management system, which contains
the public dockets and is the method used for submitting comments on
the overall regulatory, economic, environmental, and energy aspects of
proposed rulemaking actions. However, due to the service disruption
caused by the transition from DOT's DMS to the FDMS, the docket
material was not posted on the FDMS until November 1, 2007. Therefore,
we have determined that the public was not provided adequate
opportunity to submit comments on the NPRM. As a result, we have
decided to reopen the comment period for 30 days to receive additional
comments.
    No part of the regulatory information has been changed; therefore,
the NPRM is not republished in the Federal Register.

Comments Due Date

    We must receive comments on this AD action by December 19, 2007.

    Issued in Renton, Washington, on November 8, 2007.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
 [FR Doc. E7-22546 Filed 11-16-07; 8:45 am]

BILLING CODE 4910-13-P