[Federal Register Volume 88, Number 159 (Friday, August 18, 2023)]
[Notices]
[Pages 56702-56705]
[FR Doc No: 2023-17752]

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

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2021-0109; Notice No. 2023-04]

Hazardous Materials: Frequently Asked Questions--Incident
Reporting

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

ACTION: Notice.

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

SUMMARY: On March 22, 2022, PHMSA announced an initiative to convert
historical letters of interpretation (LOI) applicable to the Hazardous
Materials Regulations that have been issued to specific stakeholders
into broadly applicable frequently asked questions (FAQ). On December
9, 2022, PHMSA finalized the first set of FAQ and announced the topic
for the next FAQ. This notice contains the second set of FAQ.

DATES:  Interested persons are invited to submit comments on or before
September 18, 2023. Comments received after that date will be
considered to the extent practicable.

ADDRESSES: You may submit comments identified by the Docket Number
PHMSA-2021-0109 by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management System; U.S. Department of
Transportation, West Building, Ground Floor, Room W12-140, Routing
Symbol M-30, 1200 New Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Docket Management System; Room W12-140 on
the ground floor of the West Building, 1200 New Jersey Avenue SE,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Instructions: All submissions must include the agency name and
Docket Number (PHMSA-2021-0109) for this notice. To avoid duplication,
please use only one of these four methods. All comments received will
be posted without change to the Federal Docket Management System (FDMS)
and will include any personal information you provide.
    Docket: For access to the dockets to read background documents or
comments received, go to http://www.regulations.gov or DOT's Docket
Operations Office (see ADDRESSES).
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public. DOT posts these comments, without edit,
including any personal information the commenter provides, to http://www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at http://www.dot.gov/privacy.
    Confidential Business Information (CBI): CBI is commercial or
financial information that is both customarily and actually treated as
private by its owner. Under the Freedom of Information Act (FOIA) (5
U.S.C. 552), CBI is exempt from public disclosure. If your comments
responsive to this notice contain commercial or financial information
that is customarily treated as private, that you actually treat as
private, and that is relevant or responsive to this notice, it is
important that you clearly designate the submitted

comments as ``CBI.'' Please mark each page of your submission
containing CBI as ``PROPIN.'' Submissions containing CBI should be sent
to Arthur Pollack, Standards and Rulemaking Division,<PHONE_NUMBER>,
Pipeline and Hazardous Materials Safety Administration, U.S. Department
of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-
0001. Any commentary that PHMSA receives which is not specifically
designated as CBI will be placed in the public docket for this notice.

FOR FURTHER INFORMATION CONTACT: Arthur Pollack, Standards and
Rulemaking Division,<PHONE_NUMBER>, Pipeline and Hazardous Materials
Safety Administration, U.S. Department of Transportation, 1200 New
Jersey Avenue SE, Washington, DC 20590-0001.

SUPPLEMENTARY INFORMATION:

I. Background

    The March 22, 2022, notice announced an initiative to convert
historical LOI applicable to the Hazardous Materials Regulations (HMR)
\1\ that have been issued to specific stakeholders into broadly
applicable FAQ 2 3 to facilitate better public understanding
and awareness of the HMR. PHMSA also requested comment on the
initiative and solicited input on the prioritization of future sets of
FAQ. FAQ are not substantive rules--themselves--and do not create
legally enforceable rights, assign duties, or impose new obligations
not otherwise contained in the existing regulations and standards.
Instead, FAQ are intended as an aid to demonstrate compliance with the
relevant regulations. An individual who can demonstrate compliance with
the FAQ is likely to be able to demonstrate compliance with the
relevant regulations. If a different course of action is taken by an
individual, the individual must be able to demonstrate that its conduct
is in accordance with the regulations.
---------------------------------------------------------------------------

    \1\ 49 CFR parts 171-180
    \2\ Hazardous Materials: Frequently Asked Questions--
Applicability of the Hazardous Material Regulations. 87 FR 16308
(March 22, 2022), available at: https://www.federalregister.gov/documents/2022/03/22/2022-05958/hazardous-materials-frequently-asked-questions-applicability-of-the-hazardous-material-regulations.
    \3\ Hazardous Materials: Frequently Asked Questions-
Applicability of the Hazardous Material Regulations (Dec. 9, 2022),
available at: https://www.federalregister.gov/documents/2022/12/09/2022-26808/hazardous-materials-frequently-asked-questions-applicability-of-the-hazardous-material-regulations.
---------------------------------------------------------------------------

II. Purpose of the FAQ Initiative

    This initiative provides additional value to PHMSA's Online Code of
Federal Regulations (oCFR) tool.\4\ The oCFR tool is an interactive
web-based application that allows users to navigate between all content
connected to an HMR citation, including LOI. The oCFR tool includes the
ability to sort, filter, and export search results. Upon completion of
this initiative, PHMSA's Office of Hazardous Materials Safety (OHMS)
will be able to achieve efficiencies for other more complex or novel
requests for LOI and devote resources to other hazardous materials
transportation safety projects. This initiative will allow resources to
be made available for other improvement-related operations such as
petitions for rulemakings, public outreach and engagement, and
economically beneficial regulatory and policy improvements. In the
section of this notice titled ``Frequently Asked Questions: Immediate
notice of certain hazardous materials incidents and detailed hazardous
materials incident reports,'' PHMSA is publishing its second set of FAQ
developed under this initiative.
---------------------------------------------------------------------------

    \4\ PHMSA's Online CFR (oCFR), available at: https://www.phmsa.dot.gov/standards-rulemaking/hazmat/phmsas-online-cfr-ocfr.
---------------------------------------------------------------------------

III. Frequently Asked Questions

    Immediate notice of certain hazardous materials incidents and
detailed hazardous materials incident reports.
    The requirements for incident reporting and notification are
outlined under Subpart B to Part 171 of the HMR. Specifically,
Sec. Sec.  171.15 and 171.16 address immediate notice of certain
hazardous materials incidents and detailed hazardous materials incident
reports. Section 171.15 provides criteria requiring immediate
notification of unintentional hazardous materials releases to the
National Response Center. Each person making a report under Sec.
171.15 is also required to fill out DOT Form F 5800.1 within 30 days of
discovery of the incident as required by Sec.  171.16. Over the years,
OHMS has received more than fifty requests for LOI concerning the
provisions of Sec. Sec.  171.15 and 171.16. Therefore, as noted above,
to facilitate better public understanding and awareness of the HMR, the
FAQ pertaining to incident reporting and notification are as follows:
    1. Question: Who is responsible for completing and submitting a
detailed hazardous materials incident report?
    Answer: As specified in Sec.  171.16(a), each person in physical
possession of a hazardous material when an incident occurs must file a
Hazardous Materials Incident Report on DOT Form F 5800.1 to the
Department. See Sec.  171.16(b) for information on providing and
retaining copies of the incident report, details of where to obtain the
forms, and where to file the forms.
    2. Question: How long do I have to submit a written incident
report?
    Answer: In accordance with Sec.  171.16(a), a person must submit a
detailed incident report within 30 days of discovery of the incident to
the Department.
    3. Question: Who is responsible for providing immediate notice by
telephone if an incident occurs that meets the criteria in Sec.
171.15(b)?
    Answer: As specified in Sec.  171.15(a), each person in physical
possession of a hazardous material when an incident occurs must provide
notice by telephone to the National Response Center (NRC) 1-800-424-
8802 (toll free) or 1-202-267-2675 (toll call). Any person who performs
or is contractually responsible to perform any of the HMR functions is
legally responsible under the regulations for their proper performance.
    4. Question: How long do I have to provide notice by telephone to
the National Response Center (NRC) when an incident occurs that meets
the criteria in Sec.  171.15(b)?
    Answer: In accordance with Sec.  171.15(a), a person must provide
notice by telephone as soon as practical but no later than 12 hours
after the occurrence of any incident described in Sec.  171.15(b). Any
reporting delay beyond what is necessary to safely secure the scene of
the incident is not permitted.
    5. Question: If an incident occurs resulting in the closure of an
access road (i.e., on-ramp, off-ramp, jug-handle, or slip-road) to a
major highway, is the closure of the access road leading to a highway
considered a ``road closure'' and subject to the hazmat reporting
requirements in Sec.  171.15?
    Answer: The answer is yes. Components of a highway, such as access
roads and interchange areas that provide access to highways--including
interstate highways--are considered components of a ``major
transportation artery or facility,'' and are thus subject to the
requirements in Sec.  171.15(b)(1)(iv).
    6. Question: Is an incident report required if, during the loading/
unloading operation, the consignee discovers or observes a leak from a
cargo tank motor vehicle (CTMV) or other bulk packaging?
    Answer: If an incident occurs while the carrier that delivered the
hazardous material is observing or participating in the unloading
operation, the incident

must be reported because the carrier is deemed to be in possession of
the hazardous material at that point--i.e., the incident occurred
during transportation. For these incidents, the carrier transporting
the CTMV or other bulk packaging must complete a DOT Form F 5800.1
hazardous materials incident report.
    However, if an incident occurs or is discovered while a consignee
is unloading a hazardous material from a transport vehicle or emptying
a bulk packaging after the carrier has delivered the material and left
the premises, the incident is not required to be reported because the
incident occurs or is discovered after transportation has ended. As
such, the consignee is not required to file a DOT Form F 5800.1 report
for an undeclared shipment or a damaged or leaking shipment that is
discovered after the carrier has delivered the hazardous material.
Please note that it is possible that a release of this nature is
subject to local, state, or federal reporting requirements. We suggest
you contact the U.S. Environmental Protection Agency (EPA) at 1-800-
424-9346. Additionally, if a person is injured or killed Occupational
Safety & Health Administration (OSHA) reporting may be required--OSHA's
24-hour hotline is 1-800-321-6742. See 29 CFR 1904.39 for requirements
specific to reporting fatalities, hospitalizations, amputations, and
losses of an eye as a result of work-related incidents to OSHA.
    7. Question: Under Sec.  171.16, a hazardous materials incident
report (DOT Form F 5800.1) must be filed when an undeclared hazardous
material is discovered. What is an ``undeclared hazardous material''?
    Answer: As defined in Sec.  171.8, an undeclared hazardous material
is a hazardous material that is subject to any hazardous communication
requirements and is offered for transportation in commerce without any
visible indication to the person accepting the hazardous material for
transportation that a hazardous material is present. Additionally,
undeclared hazardous materials provide no indication on either an
accompanying shipping document, or the outside of a transport vehicle,
freight container, or package to the person accepting the hazardous
material for transportation that a hazardous material is present.
    8. Question: What information is required on the incident report
form for an undeclared shipment?
    Answer: The nature of an undeclared shipment is such that complete
information about the shipment may not be known at the time of
discovery. If the undeclared shipment is discovered because material
was released from the package during transportation, then the
information in Part II and Part III of the incident report should be
completed to the extent that specific information is known. Similarly,
Parts IV and V of the report concerning the consequences of the
incident should also be completed. If the undeclared shipment is
discovered and no material was released from the package, then the
person filing the report should provide as much information as
possible, including the carrier information in item 10 of Part II, the
shipper/offeror information in item 11 of Part II, and the shipment
origin and destination information in items 12 and 13 of Part II. For
all reports related to undeclared shipments, the events that led to the
discovery of the undeclared shipment should be included in Part VI of
the report. Finally, for all reports related to undeclared shipments,
Part VIII should be completed to provide contact information. For
information that is not known at the time the undeclared shipment is
discovered, an indication on the report that the information is not
known is acceptable.
    9. Question: Is immediate notification to the National Response
Center (NRC) required if a package of radioactive material is damaged
during transportation but the radioactive material itself has not been
released from its inner packaging--which provides shielding--and the
damage does not result in radioactive contamination or excessive
radiation exposure?
    Answer: The answer is yes. Under Sec.  171.15, if a radioactive
material package is broken, even if the inner packaging remains intact,
an immediate notification to the NRC is required. See also About
Incident Reporting (June 25, 2019), available at: https://www.phmsa.dot.gov/hazmat-program-management-data-and-statistics/data-operations/incident-reporting.
    10. Question: Must the person who files an incident report keep a
copy of the incident report?
    Answer: The answer is yes. A copy, written or electronic, of the
incident report must be available within 24 hours of a request for the
report by an authorized representative or special agent of the
Department of Transportation (DOT) and must be retained for two years.
See Sec.  171.16(b)(3) for requirements specific to retention of an
incident report.
    11. Question: Where must I keep a copy of an incident report after
I file it with PHMSA?
    Answer: The report must be accessible through your company's
principal place of business or, if maintained elsewhere, be made
available at your principal place of business within 24 hours of a
request for the report if maintained at other than the reporting
person's principal place of business. See Sec.  171.16(b)(3) for
requirements specific to retention of an incident report.
    12. Question: Where can a filer get a copy of the DOT Form F
5800.1?
    Answer: Electronic copies are available at: https://www.phmsa.dot.gov/hazmat-program-development/data-operations/incident-report-form. In addition, the Guide for preparing HazMat Incidents
Reports is available at: https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/reporting_instructions_rev.pdf
    13. Question: How much hazardous materials may be unintentionally
released during the hookup and breakdown of loading and unloading hoses
before a person would be required to submit a Hazardous Materials
Incident Report on DOT Form F 5800.1?
    Answer: There are exceptions to release reporting, provided the
incident is not otherwise subject to immediate telephone notification
pursuant to Sec.  171.15. For example, as provided in Sec.
171.16(d)(1), the incident reporting requirements do not apply to a
release of a minimal amount of hazardous materials from: (1) a vent,
for materials for which venting is authorized; (2) the routine
operation of a seal, pump, compressor, or valve; or (3) the connection
or disconnection of loading or unloading lines, provided that the
release does not result in property damage.
    14. Question: Is a carrier required to file an incident report in
accordance with Sec.  171.16 for a release from a motor vehicle fuel
tank or from a motor vehicle's hydraulic, cooling, or lubrication
systems?
    Answer: The answer is no. The HMR govern the transportation of
hazardous materials in commerce. Fluids in a motor vehicle's fuel tank,
hydraulic, cooling, and lubrication system are not ``transported in
commerce.'' See Sec.  171.1 pertaining to applicability of the HMR; see
also 49 U.S.C. 5101 et seq. Therefore, the reporting requirements in
Sec. Sec.  171.15 and 171.16 do not apply. Please note that it is
possible that a release of this nature is subject to local, state, or
federal reporting requirements. We suggest you contact the U.S.
Environmental Protection Agency (EPA) at 1-800-424-9346.
    15. Question: Is an incident report required if a box, drum, or
similar packaging is discovered to be leaking

after the shipment is delivered to the consignee?
    Answer: Incidents that are discovered after transportation--i.e.,
any movement of hazardous materials by any mode, and any loading,
unloading, or storage incidental thereto--has ended, are not subject to
the incident reporting requirements under the HMR. See Sec.  171.1(c)
for provisions pertaining to transportation functions.
    16. Question: Is immediate notice required under Sec.  171.15 for
an incident that leads to a ``road closure'' when no hazardous material
is released as a result of the incident?
    Answer: The answer is yes. Regardless of whether a hazardous
material is actually released, if a major transportation artery or
facility is closed or shut down for one hour or more, the incident must
be reported in accordance with Sec.  171.15. In addition, under Sec.
171.16(a)(1), any time immediate notice is required under Sec.
171.15(b), a written report is also required within 30 days of the
discovery of an incident.
    17. Question: When an incident occurs involving a package of
hazardous material containing only a residue of hazardous material, as
described in Sec.  173.29, is an incident report required?
    Answer: A package containing only a residue of hazardous material
is not excepted from incident reporting. See 173.29(a). Section
171.16(d) provides exceptions from incident reporting, which include
some scenarios that could apply to a packaging containing only a
residue. However, there are no specific provisions that apply to empty
packagings containing a residue of a hazardous material. There are
scenarios where an incident report must be filed, such as when a
Packing Group (PG) II hazardous material released from a drum
containing only residue of the hazardous material.
    18. Question: A discovery of a hazardous materials incident is made
after transportation has ended. May the consignee file an incident
report?
    Answer: The answer is yes. A person may file an incident report for
a hazardous material release or incident--even when not required--if
any of the circumstances set forth in Sec.  171.15(b) or Sec.
171.16(a) have occurred.

IV. Future FAQ Topics

    With the completion of this set of FAQ specific to incident
reporting, PHMSA will begin consideration for its next set of FAQ based
on public input received. As such, PHMSA will continue concurrent work
on future FAQ notices and subsequent topics may include FAQ pertaining
to classification, hazard communication, hazardous substances,
hazardous wastes, modal-specific requirements, or packaging. Finally,
PHMSA will consider comments and concerns received before finalizing
the above FAQ on the website.

    Issued in Washington, DC, on August 14, 2023, under authority
delegated in 49 CFR 1.97.
William S. Schoonover,
Associate Administrator for Hazardous Materials Safety, Pipeline and
Hazardous Materials Safety Administration.
[FR Doc. 2023-17752 Filed 8-17-23; 8:45 am]
BILLING CODE 4910-60-P


[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Notices]
[Page 41855]
[FR Doc No: 2011-17971]

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

SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

 In the Matter of Maxicare Health Plans, Inc., MetroConnect Inc.,
Microislet, Inc., Mobicom Corp., MTI Technology Corp., and North
American Scientific, Inc.; Order of Suspension of Trading

July 13, 2011.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Maxicare Health Plans, Inc. because it has not filed any periodic
reports since the period ended September 30, 2006.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
MetroConnect Inc. because it has not filed any periodic reports since
the period ended December 31, 2008.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Microislet, Inc. because it has not filed any periodic reports since
the period ended June 30, 2008.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities
Mobicom Corp. because it has not filed any periodic reports since the
period ended September 30, 2008.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
MTI Technology Corp. because it has not filed any periodic reports
since it filed a registration statement on July 7, 2007.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
North American Scientific, Inc. because it has not filed any periodic
reports since it filed a registration statement on January 31, 2009.
    The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed companies.
    Therefore, it is ordered, pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that trading in the securities of the
above-listed companies is suspended for the period from 9:30 a.m. EDT
on July 13, 2011, through 11:59 p.m. EDT on July 26, 2011.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2011-17971 Filed 7-13-11; 4:15 pm]
BILLING CODE 8011-01-P


[Federal Register: February 19, 2008 (Volume 73, Number 33)]
[Proposed Rules]
[Page 9055-9058]
[DOCID:fr19fe08-12]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0179; Directorate Identifier 2007-NM-367-AD]
RIN 2120-AA64

Airworthiness Directives; Bombardier Model DHC-8-102, DHC-8-103,
DHC-8-106, DHC-8-201, DHC-8-202, DHC-8-301, DHC-8-311, and DHC-8-315
Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: We propose to adopt a new airworthiness directive (AD) for the
products listed above. This proposed AD results from mandatory
continuing airworthiness information (MCAI) originated by an aviation
authority of another country to identify and correct an unsafe
condition on an aviation product. The MCAI describes the unsafe
condition as:

    Bombardier Aerospace has completed a system safety review of the
aircraft fuel system against fuel tank safety standards * * *.
    [A]ssessment showed that supplemental maintenance tasks
[inspections of fuel tank bonding jumpers, wiring harnesses, and
drain valve components, among other items and actions; and
applicable corrective actions] are required to prevent potential
ignition sources inside the fuel system, which could result in a
fuel tank explosion. * * *

    The proposed AD would require actions that are intended to address
the unsafe condition described in the MCAI.

DATES: We must receive comments on this proposed AD by March 20, 2008.

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 W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov
; or in person at the Docket Operations office

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 Operations office (telephone<PHONE_NUMBER>) is
in the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Rocco Viselli, Aerospace Engineer,
Airframe and Propulsion Branch, ANE-171, FAA, New York Aircraft
Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, New
York 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2008-0179;
Directorate Identifier 2007-NM-367-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov
, including any personal information you provide. We

will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian Airworthiness Directive CF-
2007-32, dated December 17, 2007 (referred to after this as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    Bombardier Aerospace has completed a system safety review of the
aircraft fuel system against fuel tank standards introduced in
Chapter 525 of the Airworthiness Manual through Notice of Proposed
Amendment (NPA) 2002-043. The identified non-compliances were then
assessed using Transport Canada Policy Letter No. 525-001, to
determine if mandatory corrective action is required.
    The assessment showed that supplemental maintenance tasks
[inspections of fuel tank bonding jumpers, wiring harnesses, and
drain valve components, among other items and actions; and
applicable corrective actions] are required to prevent potential
ignition sources inside the fuel system, which could result in a
fuel tank explosion. Revisions have been made to Part 2
``Airworthiness Limitations List'' of the DHC-8 Maintenance Program
Manuals to introduce the required maintenance tasks.

The corrective action is revising the Airworthiness Limitations Section
of the Instructions for Continued Airworthiness to incorporate new
limitations for fuel tank systems. You may obtain further information
by examining the MCAI in the AD docket.
    The FAA has examined the underlying safety issues involved in fuel
tank explosions on several large transport airplanes, including the
adequacy of existing regulations, the service history of airplanes
subject to those regulations, and existing maintenance practices for
fuel tank systems. As a result of those findings, we issued a
regulation titled ``Transport Airplane Fuel Tank System Design Review,
Flammability Reduction and Maintenance and Inspection Requirements''
(66 FR 23086, May 7, 2001). In addition to new airworthiness standards
for transport airplanes and new maintenance requirements, this rule
included Special Federal Aviation Regulation No. 88 (``SFAR 88,''
Amendment 21-78, and subsequent Amendments 21-82 and 21-83).
    Among other actions, SFAR 88 requires certain type design (i.e.,
type certificate (TC) and supplemental type certificate (STC)) holders
to substantiate that their fuel tank systems can prevent ignition
sources in the fuel tanks. This requirement applies to type design
holders for large turbine-powered transport airplanes and for
subsequent modifications to those airplanes. It requires them to
perform design reviews and to develop design changes and maintenance
procedures if their designs do not meet the new fuel tank safety
standards. As explained in the preamble to the rule, we intended to
adopt airworthiness directives to mandate any changes found necessary
to address unsafe conditions identified as a result of these reviews.
    In evaluating these design reviews, we have established four
criteria intended to define the unsafe conditions associated with fuel
tank systems that require corrective actions. The percentage of
operating time during which fuel tanks are exposed to flammable
conditions is one of these criteria. The other three criteria address
the failure types under evaluation: Single failures, single failures in
combination with a latent condition(s), and in-service failure
experience. For all four criteria, the evaluations included
consideration of previous actions taken that may mitigate the need for
further action.
    We have determined that the actions identified in this AD are
necessary to reduce the potential of ignition sources inside fuel
tanks, which, in combination with flammable fuel vapors, could result
in fuel tank explosions and consequent loss of the airplane.

Relevant Service Information

    Bombardier (de Havilland) has issued temporary revisions (TRs) to
Part 2 ``Airworthiness Limitations List'' (AWL) of the de Havilland
Dash 8 Series Maintenance Program Manuals (MPMs). The TRs are listed in
the table titled ``TRs to the DHC-8 MPMs.''

                          TRs to the DHC-8 MPMs
------------------------------------------------------------------------
               MPM                      TR Nos.             TR date
------------------------------------------------------------------------
Dash 8 Series 100 Product         AWL-110...........  August 31, 2007.
 Support Manual 1-8-7.
Dash 8 Series 200 Product         AWL 2-43..........  August 31, 2007.
 Support Manual 1-82-7.
Dash 8 Series 300 Product         AWL 3-109           August 31, 2007.
 Support Manual 1-83-7.
------------------------------------------------------------------------

    The actions described in this service information are intended to
correct the unsafe condition identified in the MCAI.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.
    This proposed AD would also allow accomplishing the AWL revision in
accordance with later revisions of the Maintenance Program Manual (MPM)
as an acceptable method of compliance if the limit or interval is part
of a later approved MPM revision or the limit or interval is approved
as an alternative method of compliance (AMOC) in accordance with the
procedures specified in paragraph (g) of this proposed AD.
    In most ADs, we adopt a compliance time allowing a specified amount
of time after the AD's effective date. In this case, however, the FAA
has already issued regulations that require operators to revise their
maintenance/inspection programs to address fuel tank safety issues. The
compliance date for these regulations is December 16, 2008. To provide
for coordinated implementation of these regulations and this proposed
AD, we are using this same compliance date in this proposed AD.

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have proposed different actions in this AD from those
in the MCAI in order to follow FAA policies. Any such differences are
highlighted in a Note within the proposed AD.

Costs of Compliance

    Based on the service information, we estimate that this proposed AD
would affect about 122 products of U.S. registry. We also estimate that
it would take about 1 work-hour per product to comply with the basic
requirements of this proposed AD. The average labor rate is $80 per
work-hour. Based on these figures, we estimate the cost of the proposed
AD on U.S. operators to be $9,760, or $80 per product.

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.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    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); and
    3. 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.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

    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]

    2. The FAA amends Sec.  39.13 by adding the following new AD:

Bombardier, Inc. (Formerly de Havilland, Inc.): Docket No. FAA-2008-
0179; Directorate Identifier 2007-NM-367-AD.

Comments Due Date

    (a) We must receive comments by March 20, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to all Bombardier Model DHC-8-102, DHC-8-
103, DHC-8-106, DHC-8-201, DHC-8-202, DHC-8-301, DHC-8-311, and DHC-
8-315 airplanes, certificated in any category, all serial numbers.

    Note 1: This AD requires revisions to certain operator
maintenance documents to include new inspections. Compliance with
these inspections is required by 14 CFR 91.403(c). For airplanes
that have been previously modified, altered, or repaired in the
areas addressed by these inspections, the operator may not be able
to accomplish the inspections described in the revisions. In this
situation, to comply with 14 CFR 91.403(c), the operator must
request approval for an alternative method of compliance according
to paragraph (g) of this AD. The request should include a
description of changes to the required inspections that will ensure
the continued operational safety of the airplane.

Subject

    (d) Air Transport Association (ATA) of America Code 28: Fuel.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    Bombardier Aerospace has completed a system safety review of the
aircraft fuel system against fuel tank standards introduced in
Chapter 525 of the Airworthiness Manual through Notice of Proposed
Amendment (NPA) 2002-043. The identified non-compliances were then
assessed using Transport Canada Policy Letter No. 525-001, to
determine if mandatory corrective action is required.
    The assessment showed that supplemental maintenance tasks
[inspections of fuel tank bonding jumpers, wiring harnesses, and
drain valve components, among other items and actions; and
applicable corrective actions] are required to prevent potential

ignition sources inside the fuel system, which could result in a
fuel tank explosion. Revisions have been made to Part 2
``Airworthiness Limitations List'' of the DHC-8 Maintenance Program
Manuals to introduce the required maintenance tasks.

The corrective action is revising the Airworthiness Limitations
Section of the Instructions for Continued Airworthiness to
incorporate new limitations for fuel tank systems.

Actions and Compliance

    (f) Unless already done, do the following actions.
    (1) Within 60 days after the effective date of this AD, or
before December 16, 2008, whichever occurs first, revise the
Airworthiness Limitations Section (ALS) of the Instructions for
Continued Airworthiness to incorporate the fuel system limitations
tasks identified in the de Havilland temporary revisions (TRs) to
Part 2 ``Airworthiness Limitations List'' of the Dash 8 Series
Maintenance Program Manuals (``the MPMs''). The TRs are listed in
Table 1 of this AD. For the tasks identified in the TRs, the initial
compliance times start from the later of the times specified in
paragraphs (f)(1)(i) and (f)(1)(ii) of this AD, and the repetitive
inspections must be accomplished thereafter at the interval
specified in the TRs to the MPM, except as provided by paragraphs
(f)(2), (f)(3), (f)(4), and (g)(1) of this AD.
    (i) The effective date of this AD.
    (ii) The date of issuance of the original Canadian standard
airworthiness certificate or the date of issuance of the original
Canadian export certificate of airworthiness.

                      Table 1.--Temporary Revisions
------------------------------------------------------------------------
                                                          Maintenance
              Model                 de Havilland TR     Program Manual
                                                             (MPM)
------------------------------------------------------------------------
DHC-8-102, DHC-8-103, and DHC-8-  AWL-110, dated      Dash 8 Series 100
 106 airplanes.                    August 31, 2007.    MPM, Product
                                                       Support Manual
                                                       (PSM) 1-8-7, Part
                                                       2,
                                                       ``Airworthiness
                                                       Limitations
                                                       List''.
DHC-8-201, and DHC-8-202          AWL 2-43, dated     Dash 8 Series 200
 airplanes.                        August 31, 2007.    MPM, PSM 1-82-7,
                                                       Part 2,
                                                       ``Airworthiness
                                                       Limitations
                                                       List''.
DHC-8-301, DHC-8-311, and DHC-8-  AWL 3-109, dated    Dash 8 Series 300
 315 airplanes.                    August 31, 2007.    MPM, PSM 1-83-7,
                                                       Part 2,
                                                       ``Airworthiness
                                                       Limitations
                                                       List''.
------------------------------------------------------------------------

    Note 2: The actions required by paragraph (f)(1) of this AD may
be done by inserting a copies of the applicable TR listed in Table 1
of this AD into the Airworthiness Limitations section of the
applicable MPM listed in Table 1 of this AD. When the applicable TR
has been included in general revisions of the applicable MPM, the
general revisions may be inserted in the MPM, provided the relevant
information in the general revision is identical to that in the
applicable TR.

    (2) For airplanes that have accumulated 4,000 total flight
hours, or 24 months since new as of the effective date of this AD:
For those tasks with 6,000 flight hours/36 month inspection
intervals, do the initial inspection within 2,000 flight hours or 12
months after the effective date of this AD, whichever occurs first.
Thereafter, repeat the inspection at intervals not to exceed 6,000
flight hours or 36 months, whichever occurs first.
    (3) For airplanes that have accumulated 12,000 total flight
hours, or 72 months since new as of the effective date of this AD:
For those tasks with 18,000 flight hours/108 month inspection
intervals, do the initial inspection within 6,000 flight hours or 36
months after the effective date of this AD, whichever occurs first.
Thereafter, repeat the inspection at intervals not to exceed 18,000
flight hours or 108 months, whichever occurs first.
    (4) After accomplishing the actions specified in paragraphs
(f)(1), (f)(2), and (f)(3) of this AD, no alternative inspections or
inspection intervals may be used unless the inspections or
inspection intervals are part of a later revision of Part 2
``Airworthiness Limitations List'' of the applicable de Havilland
Dash 8 Series MPM listed in Table 2 of this AD, that is approved by
the Manager, New York Aircraft Certification Office (ACO), FAA, or
the Transport Canada Civil Aviation (TCCA) (or its delegated agent);
or unless inspections or inspection intervals are approved as an
alternative method of compliance (AMOC) in accordance with the
procedures specified in paragraph (g)(1) of this AD.

                             Table 2.--MPMs
------------------------------------------------------------------------
                                            Maintenance Program Manual
                 Model                                (MPM)
------------------------------------------------------------------------
                                         ...............................
DHC-8-102, DHC-8-103, and DHC-8-106      Dash 8 Series 100 MPM, Product
 airplanes.                               Support Manual (PSM) 1-8-7,
                                          Part 2, ``Airworthiness
                                          Limitations List,'' Revision
                                          17, dated April 19, 2005.
DHC-8-201, and DHC-8-202 airplanes.....  Dash 8 Series 200 MPM, PSM 1-82-
                                          7, Part 2, ``Airworthiness
                                          Limitations List,'' Revision
                                          5, dated August 15, 2001.
DHC-8-301, DHC-8-311, and DHC-8-315      Dash 8 Series 300 MPM, PSM 1-83-
 airplanes.                               7, Part 2, ``Airworthiness
                                          Limitations List,'' Revision
                                          16, dated August 15, 2001.
------------------------------------------------------------------------

FAA AD Differences

    Note 3: This AD differs from the MCAI and/or service information
as follows: No differences.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO, FAA, has the authority to approve AMOCs for this AD, if
requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Rocco Viselli, Aerospace Engineer, Airframe and
Propulsion Branch, ANE-171, FAA, New York Aircraft Certification
Office, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before using any
approved AMOC on any airplane to which the AMOC applies, notify your
appropriate principal inspector (PI) in the FAA Flight Standards
District Office (FSDO), or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI Canadian Airworthiness Directive CF-2007-32,
dated December 17, 2007, and the temporary revisions listed in Table
1 of this AD.

    Issued in Renton, Washington, on February 11, 2008.
Stephen P. Boyd,
Assistant Manager, Transport Airplane Directorate, Aircraft
Certification Service.
 [FR Doc. E8-3000 Filed 2-15-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Notices]
[Pages 44012-44014]
[FR Doc No: 2016-15943]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER10-1651-003.
    Applicants: Golden State Water Company.
    Description: Updated Market Power Analysis of Golden State Water
Company.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5266.
    Comments Due: 5 p.m. ET 8/29/16.

    Docket Numbers: ER10-2882-025; ER10-2886-025; ER13-1101-020; ER13-
1541-019; ER14-661-011; ER14-787-013; ER15-54-005; ER15-55-005; ER15-
1475-006; ER15-2593-005; ER16-452-005; ER16-705-003; ER16-706-003.
    Applicants: RE Garland LLC, RE Garland A LLC, RE Tranquillity LLC,
Desert Stateline LLC, North Star Solar, LLC, Lost Hills Solar, LLC,
Blackwell Solar, LLC, Macho Springs Solar, LLC, SG2 Imperial Valley
LLC, Campo Verde Solar, LLC, Spectrum Nevada Solar, LLC, Southern
Turner Cimarron I, LLC, Southern Power Company.
    Description: Triennial Market Power Update for Southwest Region of
Southern Power Company, et al.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5269.
    Comments Due: 5 p.m. ET 8/29/16.

    Docket Numbers: ER10-3140-024.
    Applicants: Inland Empire Energy Center, LLC.

    Description: Triennial Market Power Analysis of Inland Empire
Energy Center, LLC.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5265.
    Comments Due: 5 p.m. ET 8/29/16.

    Docket Numbers: ER10-3300-013.
    Applicants: La Paloma Generating Company, LLC.
    Description: Supplement to April 26, 2016 Notice of Change in
Status of La Paloma Generating Company, LLC.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5271.
    Comments Due: 5 p.m. ET 7/19/16.

    Docket Numbers: ER16-341-001; ER16-343-001; ER16-498-001; ER16-499-
001; ER16-500-001; ER16-645-001.
    Applicants: RE Astoria LLC, RE Astoria 2 LLC, RE Mustang LLC, RE
Mustang 3 LLC, RE Mustang 4 LLC, RE Barren Ridge 1 LLC.
    Description: Triennial Market Power Analysis for Southwest Region
of the Recurrent MBR Sellers, et al.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5277.
    Comments Due: 5 p.m. ET 8/29/16.

    Docket Numbers: ER16-1635-002.
    Applicants: Arizona Public Service Company.
    Description: Tariff Amendment: Rate Schedule No. 281 to be
effective 7/6/2016.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5240.
    Comments Due: 5 p.m. ET 7/19/16.

    Docket Numbers: ER16-1644-001; ER14-608-001.
    Applicants: MRP Generation Holdings, LLC, High Desert Power
Project, LLC.
    Description: Updated Market Power Analysis for the Southwest Region
of MRP Generation Holdings, LLC, et al.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5274.
    Comments Due: 5 p.m. ET 8/29/16.

    Docket Numbers: ER16-2048-000.
    Applicants: Exelon West Medway II, LLC.
    Description: Baseline eTariff Filing: Certificate of Concurrence
Filing to be effective 10/1/2016.
    Filed Date: 6/28/16.
    Accession Number: 20160628-5243.
    Comments Due: 5 p.m. ET 7/19/16.

    Docket Numbers: ER16-2049-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1888R5 Westar Energy, Inc.
NITSA and NOA to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5007.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2050-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 3208 WAPA-UGP and Otter Tail
Power Company Att AO to be effective 6/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5008.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2051-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 3181 Basin Electric and
Otter Tail Power Attachment AO to be effective 6/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5018.
    Comments Due: 5 p.m. ET 7/20/16.
    Docket Numbers: ER16-2052-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1885R5 Westar Energy, Inc.
NITSA and NOA (Bronson) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5037.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2053-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1891R5 Westar Energy, Inc.
NITSA and NOA (Mulberry) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5038.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2054-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1892R5 Westar Energy, Inc.
NITSA and NOA (Robinson) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5039.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2055-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1893R5 Westar Energy, Inc.
NITSA and NOA (Savonburg) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5040.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2056-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1895R5 Westar Energy, Inc.
NITSA and NOA (Wathena) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5041.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2057-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1897R5 Westar Energy, Inc.
NITSA and NOA (Elwood) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5042.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2058-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 2066R5 Westar Energy, Inc.
NITSA and NOA (Muscotah) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5048.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2059-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1894R5 Westar Energy, Inc.
NITSA and NOA (Vermillion) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5050.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2060-000.
    Applicants: Southwest Power Pool, Inc.
    Description: Sec.  205(d) Rate Filing: 1889R5 Westar Energy, Inc.
NITSA and NOA (Mindenmines) to be effective 9/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5057.
    Comments Due: 5 p.m. ET 7/20/16.

    Docket Numbers: ER16-2061-000.
    Applicants: Public Service Company of New Mexico.
    Description: Initial rate filing: Executed NITSA and NOA between
PNM and Kit Carson Electric Cooperative to be effective 7/1/2016.
    Filed Date: 6/29/16.
    Accession Number: 20160629-5062.
    Comments Due: 5 p.m. ET 7/20/16.

    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 (202)
502-8659.

    Dated: June 29, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-15943 Filed 7-5-16; 8:45 am]
 BILLING CODE 6717-01-P


4/ 7/ 04 1 Scenario Specific Field Drainage and Water Body Sizes Donna Randall and Marietta Echeverría Office of Pesticide Programs,

Environmental Fate and Effects Division 4/ 7/ 04 2 CA Almond, ChemB 4/ 7/ 04 3 Overview ° National/ Regional Risk Assessment Context  Crop scenarios  " Standard" surface water body and field size dimensions ° Sources of national/ regional information ° Options evaluated for use of this information ° Proposed scenario specific values 4/ 7/ 04 4 National/ Regional Risk Assessment Concept At Level I and II a given crop scenario is used as a surrogate to assess the risk from pesticide use on that crop across the U. S. or given region 4/ 7/ 04 5 Crop Scenarios ° Crop scenario  selected combination of climatological, soil, and cropping practice conditions ° Four categories ( national, regional,

organophosphate cumulative, or local)

 Cropping practice and climatological conditions

representative of main crop growing area  Soil series  vulnerable to soil erosion within main crop growing area represented  Set of " standard" crop scenarios have been developed  Developed on an as needed basis 4/ 7/ 04 6 " Standard" Surface Water Body and Field Size Dimensions Treated Field Drainage Area ( DA)  10 ha Surface Area 1 ha Depth 2 meters Relationship based on DA/ VC 1.5 acres/ acre ft ( 5 m2/ m3)

Volume Capacity ( VC)

20,000 m3 4/ 7/ 04 7 Origin of " Standard" Water Body Dimensions and Field Size ° Evaluation of original model performed using data from a site in Georgia ° Size of water body selected as representative for the southeast  Depth ( 6 ft  2 m, rounded)

 Surface area ( 2 acres  1 ha, rounded)

° Field size back calculated using USDA ( 1982)

DA/ VC information for the southeast  ( 2 acres)( 6 ft)( 2 acres/ acre ft) = 24 acres  rounded to 10 ha  Due to rounding  DA/ VC of " standard" is 1.5 acres/ acre ft 4/ 7/ 04 8 Other Model Considerations Regarding Field Size ° Additional model assumptions dependent on 10 ha  Homogeneous soil series across treated field  100 percent planted in the same crop  100 percent of area treated  Sufficient drainage area to support a small,

permanent surface water body 4/ 7/ 04 9 Sources of National/ Regional DA/ VC Ratios and Water Depths ° Small water sources used for irrigation, recreation, fire protection,

livestock watering, fish production,

waterfowl and other wildlife ( USDA,

1997)

° Drinking water reservoirs (> 956,000 m3) ( Ruddy and Hite, 1990) 4/ 7/ 04 10 USDA Recommended DA/ VC for Small Permanent Water Body 4/ 7/ 04 11 USDA Recommended Depth for a Small Permanent Water Body 4/ 7/ 04 12 Development of Scenario

Specific Values 4/ 7/ 04 13 Runoff Direct Precipitation Overflow Evaporation Minimum Level Maximum Level Varying Volume Water Body 4/ 7/ 04 14 Minimum Depth Maximum Depth ( Dmax)

Volume capacity ( VC)

Surface area ( SA)

Drainage area ( DA)

Size Parameters Affecting Volume 4/ 7/ 04 15 Outline 1. Options for assigning size parameter values 2. Sensitivity of VVWM to Dmax 3. Comparison of VVWM using " standard" size values and scenariospecific values 4/ 7/ 04 16 Assigning Size Parameter Values For CA fruit and FL sugarcane:

° Dmax was set to USDA recommended minimum depth value ° DA/ VC ratio was set to highest USDA recommended drainage area per unit storage capacity 4/ 7/ 04 17 ( b) FL sugarcane CA fruit Depth Guidelines and Crop Scenarios 4/ 7/ 04 18 ( b) FL sugarcane CA fruit DA/ VC Guidelines and Crop Scenarios 4/ 7/ 04 19 Options for Assigning Size Parameter Values ° With the scenario specific Dmax and DA/ VC and relationship VC = SA × Dmax:

1. Set SA to 1 ha, derive VC and DA 2. Set VC to 20000 m3, derive SA and DA 3. Set DA to 10 ha, derive VC and SA ° CA fruit, FL sugarcane with short lived ChemA and long lived ChemB 4/ 7/ 04 20 10 20 18 10 328 400 DA ( ha) 10156 20000 18288 609 20000 24384 VC ( m3) 5553 10936 10000 250 8202 10000 SA ( m2)  1.8

 2.4

Dmax ( m)  3

 50

DA/ VC ( acre/ acre ft) Option 3 Option 2 Option 1 Option 3 Option 2 Option 1 FL sugarcane CA fruit Parameters Parameter Values 4/ 7/ 04 21 Summary of Results ° Differences in water body volume magnitude, but no difference in temporal pattern ° Chemical mass and water body volume affected proportionally ° No difference in concentration 4/ 7/ 04 22 CA Fruit, ChemB 4/ 7/ 04 23 CA Fruit, ChemB 4/ 7/ 04 24 Outline 1. Options for assigning size parameter values 2. Sensitivity of VVWM to Dmax 3. Comparison of VVWM using " standard" size values and scenario specific values 4/ 7/ 04 25 Sensitivity of VVWM to Dmax ° Dmax was set to the ( 1) minimum,

( 2) average and ( 3) maximum value from range ° DA set to 10 ha ° VC derived from DA/ VC ratio ° SA derived from VC and Dmax 4/ 7/ 04 26 Parameter Values  10156

 609.4

VC ( m3) 2.13 1.98 1.83 3.05 2.74 2.44 Dmax ( m) 4760 5216 5553 199.9 222.1 249.9 SA ( m2)  10

 10

DA( ha)  3

 50

DA/ VC ( acre/ acre ft) Max.

Avg.

Min.

Max.

Avg.

Min. FL sugarcane CA fruit Parameters 4/ 7/ 04 27 Summary of Results ° Concentration using minimum > average > maximum depth value ° Inverse relationship with volume during dry periods, larger surface area greater evaporation ° Average difference in daily concentration:

 CA fruit: ~ 10 25%

 FL sugarcane: ~ 2 5% 4/ 7/ 04 28 CA Fruit, ChemB 4/ 7/ 04 29 CA Fruit, ChemB 4/ 7/ 04 30 Outline 1. Options for assigning size parameter values 2. Sensitivity of VVWM to Dmax 3. Comparison of VVWM using " standard" size values and scenariospecific values 4/ 7/ 04 31 Scenario Specific CA Fruit 4/ 7/ 04 32 Scenario Specific CA Fruit, ChemA 4/ 7/ 04 33 Scenario Specific CA Fruit, ChemB 4/ 7/ 04 34 Scenario Specific FL sugarcane 4/ 7/ 04 35 Scenario Specific FL sugarcane, ChemA 4/ 7/ 04 36 Scenario Specific FL sugarcane, ChemB 4/ 7/ 04 37 Proposed Approach &

Summary 4/ 7/ 04 38 Proposed Scenario Specific Approach ° Retain historic standard field area 10 ha for all crop scenarios  Other options result in field areas > 500 acres

Runoff model not appropriate for this size field

Gross failure of soil series homogeneity assumption

Would require a percent crop treated adjustment ° Initial ( and maximum) water depth set to the minimum value at the crop scenario location from the USDA ( 1997) water depth map ° Volume calculated from maximum DA/ VC ratio value at the crop scenario location from USDA ( 1997) DA/ VC map 4/ 7/ 04 39 Examples of Proposed Scenario Specific Water Body Size Values 1523 714 2.1 20 R KS sorghum 2539 1190 2.1 12 OP, R TX sorghum 10156 5553 1.8 3 R FL sugarcane 609 250 2.4 50 OP, R CA fruit ( m3)

( m2)

( m)

( acre/

acre ft)

Category Crop scenario VC SA Dmax DA/ VC ° Currently there are over 60 crop scenarios


[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]
[Notices]
[Pages 58877-58880]
[FR Doc No: 2012-23483]

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

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 30206 ; 812-13988-01]

Neuberger Berman Alternative Funds, et al.; Notice of Application

 September 18, 2012.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940, as amended (``Act'') for an exemption
from section 15(a) of the Act and rule 18f-2 under the Act, as well as
from certain disclosure requirements.

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

Summary of Application: Applicants request an order that would permit
them to enter into and materially amend subadvisory agreements without
shareholder approval and would grant relief from certain disclosure
requirements.

Applicants: Neuberger Berman Alternative Funds (the ``Trust''),
Neuberger Berman Management LLC (``NB Management'') and NB Alternative
Investment Management LLC (``NBAIM'').

DATES: Filing Dates: The application was filed on December 8, 2011, and
amended on January 19, 2012, April 9, 2012, and August 16, 2012.
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 12, 2012, and should be accompanied by proof of service
on the 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: Trust and NB
Management, 605 Third Avenue 2nd Floor, New York, 10158-0180; NBAIM,
605 Third Avenue 22nd Floor, New York, New York 10158-0180.

FOR FURTHER INFORMATION CONTACT: Emerson S. Davis, Senior Counsel, at
(202) 551-6868, 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 Web site 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. The Trust, a Delaware statutory trust organized as a series
investment company, is registered under the Act as an open-end
management investment company.\1\ NB Management is, and any

Manager will be, registered as an investment adviser under the
Investment Advisers Act of 1940 (``Advisers Act''). A Manager will
serve as the investment adviser to each Fund pursuant to an investment
advisory agreement (the ``Management Agreement'') approved by the board
of trustees of the Trust (``Board''),\2\ including a majority of the
trustees who are not ``interested persons,'' as defined in section
2(a)(19) of the Act, of the Trust, the Adviser or the Manager
(``Independent Trustees'') and by the initial shareholder of the Fund.
Like NB Management, NBAIM is a wholly-owned indirect subsidiary of
Neuberger Berman Group and is registered as an investment adviser under
the Advisers Act.\3\
---------------------------------------------------------------------------

    \1\ Applicants request relief with respect to existing and
future registered open-end management investment company or series
thereof that: (a) Is advised by NB Management or NBAIM, or any
entity controlling, controlled by or under common control with NB
Management or NBAIM or their respective successors (NB Management,
NB Management's successor, and any such affiliated entity that may
in the future act in the same role as NB Management, each a
``Manager''; NBAIM, NBAIM's successor, and any such affiliated
entity that may in the future act in the same role as NBAIM, each an
``Adviser''); (b) uses the multi-manager structure described in the
application (the ``Manager of Managers Structure'') and (c) complies
with the terms and conditions of the application (each, a ``Fund and
collectively, the ''Funds''). For the purposes of the requested
order, ``successor'' is limited to an entity or 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. If the name of
any Fund contains the name of a Sub-Adviser (as defined below), the
name of the Manager or Adviser that serves as the primary adviser to
the Fund will precede the name of the Sub-Adviser.
    \2\ The term ``Board'' also includes the board of trustees or
directors of a future Fund.
    \3\ Any Adviser will be registered as an investment adviser
under the Advisers Act.
---------------------------------------------------------------------------

    2. Under the terms of each Management Agreement, the Manager,
subject to the oversight of the Board, will be responsible for the
overall management of the assets of each Fund. For the investment
management services that it provides to the Fund, the Manager will
receive the fee specified in the Management Agreement from such Fund
based on the Fund's average daily net assets.
    3. The Manager may delegate certain portfolio management
responsibilities for one or more Funds to the Adviser pursuant to an
investment advisory agreement (the ``Investment Advisory Agreement'')
between the Manager and the Adviser. The ultimate responsibility to
provide continuous investment management of the assets of each Fund
rests with the Manager, and the Manager has the authority to terminate
the Adviser at any time. For the services it will provide to a Fund,
the Adviser will receive a fee specified in the Investment Advisory
Agreement based on the Fund's average daily net assets, which fee will
be paid by the Manager out of the fee paid to the Manager. Any Adviser
of a Fund will be controlled or under common control with the Manager
of the Fund.
    4. The Management Agreement also permits the Manager to retain one
or more Sub-Advisers for the purpose of managing the investment of all
or a portion of the assets of a Fund.\4\ Each Sub-Adviser will be
registered as an investment adviser under the Advisers Act. The Manager
will evaluate and allocate assets to and oversee the Sub-Advisers, and
make recommendations to the Board about their hiring, termination and
replacement, at all times subject to the authority of the Board. The
Manager will compensate each Sub-Adviser out of the fee paid to the
Manager under the Management Agreement. For Funds where the Adviser is
used, the Adviser will have the responsibility to evaluate and
recommend to the Manager Sub-Advisers to manage the assets of a Fund.
It will also have the authority to allocate and, when appropriate,
reallocate the Fund's assets among Sub-Advisers. The Adviser will not
have any authority to select any Sub-Adviser.
---------------------------------------------------------------------------

    \4\ Currently the Trust offers the Neuberger Berman Absolute
Return Multi-Manager Fund (the ``NB ARMM Fund''), which seeks
capital appreciation with an emphasis on absolute return. The
Manager and Adviser have entered into a sub-advisory agreement
(``Sub-Advisory Agreement'') with the following Sub-Advisers for the
NB ARMM Fund: The Boston Company Asset Management, LLC, Cramer
Rosenthal McGlynn, LLC, GAMCO Asset Management Inc., Levin Capital
Strategies, L.P., MacKay Shields LLC, Sound Point Capital
Management, L.P., Turner Investments, L.P., and Visium Asset
Management, LP.
---------------------------------------------------------------------------

    5. Applicants request an order to permit the Manager, subject to
Board approval, to select certain Sub-Advisers to manage all or a
portion of the assets of a Fund pursuant to Sub-Advisory Agreements and
materially amend Sub-Advisory Agreements without obtaining shareholder
approval. The requested relief will not extend to any Sub-adviser that
is an affiliated person, as defined in section 2(a)(3) of the Act, of
the Trust, a Fund, the Manager or the Adviser, other than by reason of
serving as a Sub-adviser to the Fund (``Affiliated Sub-Adviser''). The
Applicants also are not seeking any exemptions from the provisions of
the 1940 Act with respect to the requirement that the Investment
Advisory Agreement be approved by the shareholders of the relevant
Funds.
    6. Applicants also request an exemption from certain disclosure
provisions described below that may require the Funds to disclose fees
paid by the Manager to each Sub-Adviser. Applicants seek an order to
permit each Fund to disclose (as both a dollar amount and as a
percentage of the respective Fund's net assets): (a) The aggregate fees
paid to the Manager and any Affiliated Sub-Advisers; and (b) the
aggregate fees paid to Sub-Advisers (collectively, ``Aggregate Fee
Disclosure''). Any Fund that employs an Adviser or Affiliated Sub-
Adviser will provide separate disclosure of any fees paid to such
Adviser or Affiliated Sub-Adviser.

Applicants' Legal Analysis

    1. Section 15(a) of the Act provides, in relevant part, that it is
unlawful for any person to act as an investment adviser to a registered
investment company except pursuant to a written contract that has been
approved by a vote of a majority of the company's outstanding voting
securities. Rule 18f-2 under the Act provides that each series or class
of stock in a series investment company affected by a matter must
approve that matter if the Act requires shareholder approval.
    2. Form N-1A is the registration statement used by open-end
investment companies. Item 19(a)(3) of Form N-1A requires disclosure of
the method and amount of the investment adviser's compensation.
    3. Rule 20a-1 under the Act requires proxies solicited with respect
to an investment company to comply with Schedule 14A under the
Securities Exchange Act of 1934 (``Exchange Act''). Items 22(c)(1)(ii),
22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A, taken together,
require a proxy statement for a shareholder meeting at which the
advisory contract will be voted upon to include the ``rate of
compensation of the investment adviser,'' the ``aggregate amount of the
investment adviser's fees,'' a description of the ``terms of the
contract to be acted upon,'' and, if a change in the advisory fee is
proposed, the existing and proposed fees and the difference between the
two fees.
    4. Regulation S-X sets forth the requirements for financial
statements required to be included as part of a registered investment
company's registration statement and shareholder reports filed with the
Commission. Sections 6-07(2)(a), (b) and (c) of Regulation S-X require
that a registered investment company to include in its financial
statement information about investment advisory fees.
    5. Section 6(c) of the Act provides that the Commission may exempt
any person, security, or transaction or any class or classes of
persons, securities, or transactions from any provisions of the Act, or
from any rule thereunder, if such 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. Applicants state that the requested relief meets this

standard for the reasons discussed below.
    6. Applicants assert that the shareholders will rely on the
Adviser's expertise to select one or more Sub-Advisers best suited to
achieve a Fund's investment objectives. Applicants assert that, from
the perspective of the shareholder, the role of the Sub-Advisers is
substantially equivalent to that of the individual portfolio managers
employed by traditional advisory firms. Applicants state that requiring
shareholder approval of each Sub-Advisory Agreement would subject a
Fund to unnecessary expenses and delays associated with conducting a
formal proxy solicitation. Applicants note that the Management
Agreement, Investment Advisory Agreement, and any Sub-Advisory
Agreement with an Affiliated Sub-Adviser will remain subject to section
15(a) of the Act and rule 18f-2 under the Act.
    7. If a new Sub-Adviser is retained in reliance on the requested
order, the Funds will inform shareholders of the hiring of a new Sub-
Adviser pursuant to the following procedures (``Modified Notice and
Access Procedures''): (a) Within 90 days after a new Sub-Adviser is
hired for any Fund, that Fund will send its shareholders either a
Multi-manager Notice or a Multi-manager Notice and Multi-manager
Information Statement; \5\ and (b) the Fund will make the Multi-manager
Information Statement available on the Web site identified in the
Multi-manager Notice no later than when the Multi-manager Notice (or
Multi-manager Notice and Multi-manager Information Statement) is first
sent to shareholders, and will maintain it on that Web site for at
least 90 days. In the circumstances described in the application, a
proxy solicitation to approve the appointment of new Sub-Advisers
provides no more meaningful information to shareholders than the
proposed Multi-manager Information Statement. Moreover, as indicated
above, the Board would comply with the requirements of Sections 15(a)
and 15(c) of the 1940 Act before entering into or amending Subadvisory
Agreements.
---------------------------------------------------------------------------

    \5\ A ``Multi-manager Notice'' will be modeled on a Notice of
Internet Availability as defined in rule 14a-16 under the Exchange
Act, and specifically will, among other things: (a) Summarize the
relevant information regarding the new Sub-Adviser; (b) inform
shareholders that the Multi-manager Information Statement is
available on a Web site; (c) provide the Web site address; (d) state
the time period during which the Multi-manager Information Statement
will remain available on that Web site; (e) provide instructions for
accessing and printing the Multi-manager Information Statement; and
(f) instruct the shareholder that a paper or email copy of the
Multi-manager Information Statement may be obtained, without charge,
by contacting the Funds.
    A ``Multi-manager Information Statement'' will meet the
requirements of Regulation 14C, Schedule 14C and Item 22 of Schedule
14A under the Exchange Act for an information statement, except as
modified by the requested order to permit Aggregate Fee Disclosure.
Multi-manager Information Statements will be filed electronically
with the Commission via the EDGAR system.
---------------------------------------------------------------------------

    8. Applicants assert that the requested disclosure relief would
benefit shareholders of the Funds because it would improve the
Adviser's ability to negotiate the fees paid to Sub-Advisers.
Applicants state that the Adviser may be able to negotiate rates that
are below a Sub-Adviser's ``posted'' amounts if the Adviser is not
required to disclose the Sub-Advisors' fees to the public. If one Sub-
Adviser is aware of the advisory fee paid to another Sub-Adviser, the
Sub-Adviser is unlikely to decrease its advisory fee below that amount.

Applicants' Conditions

    Applicants agree that any order granting the requested relief will
be subject to the following conditions:
    1. Before a Fund may rely on the requested order, the operation of
the Fund in the manner described in the application will be approved by
a majority of the Fund's outstanding voting securities, as defined in
the Act, or in the case of a Fund whose public shareholders purchase
shares on the basis of a prospectus containing the disclosure
contemplated by condition 2 below, by the initial shareholder(s) before
offering shares of that Fund to the public.
    2. Each Fund relying on the requested order will disclose in its
prospectus the existence, substance, and effect of any order granted
pursuant to the application. Each Fund relying on the requested order
will hold itself out to the public as utilizing the Manager of Managers
Structure described in the application. The prospectus will prominently
disclose that the Manager has ultimate responsibility (subject to
oversight by the Board) to oversee the Sub-Advisers and recommend their
hiring, termination, and replacement. The role of the Adviser, if any,
will also be disclosed.
    3. Funds will inform shareholders of the hiring of a new Sub-
Adviser within 90 days after the hiring of the new Sub-Adviser pursuant
to the Modified Notice and Access Procedures.
    4. The Manager will not enter into a Sub-Advisory Agreement with
any Affiliated Sub-Adviser without such agreement, including the
compensation to be paid thereunder, being approved by the shareholders
of the applicable Fund.
    5. At all times, at least a majority of the Board will be
Independent Trustees, and the nomination and selection of new or
additional Independent Trustees will be placed within the discretion of
the then-existing Independent Trustees.
    6. Whenever a sub-adviser change is proposed for a Fund with an
Affiliated Sub-Adviser, the Board, including a majority of the
Independent Trustees, will make a separate finding, reflected in the
applicable Board minutes, that such change is in the best interests of
the Fund and its shareholders, and does not involve a conflict of
interest from which the Manager, the Adviser or the Affiliated Sub-
Adviser derives an inappropriate advantage.
    7. Independent legal counsel, as defined in rule 0-1(a)(6) under
the Act, will be engaged to represent the Independent Trustees. The
selection of such counsel will be within the discretion of the then-
existing Independent Trustees.
    8. The Manager will provide the Board, no less frequently than
quarterly, with information about the profitability of the Manager, and
if applicable, the Adviser, on a per-Fund basis. The information will
reflect the impact on profitability of the hiring or termination of any
Sub-Adviser during the applicable quarter.
    9. Whenever a Sub-Adviser is hired or terminated, the Manager will
provide the Board with information showing the expected impact on the
profitability of the Manager, and if applicable, the Adviser.
    10. The Manager will provide general management services to each
Fund, including overall supervisory responsibility for the general
management and investment of each Fund's assets and, subject to review
and approval of the Board, will, either alone or together with a Fund's
Adviser: (a) Set each Fund's overall investment strategies; (b)
evaluate, select and recommend Sub-Advisers to manage all or a part of
each Fund's assets; (c) allocate and, when appropriate, reallocate each
Fund's assets among one or more Sub-Advisers; (d) monitor and evaluate
the performance of Sub-Advisers; and (e) implement procedures
reasonably designed to ensure that the Sub-Advisers comply with each
Fund's investment objective, policies and restrictions.
    11. No trustee or officer of the Trust or a Fund, or director,
manager, or officer of the Manager or Adviser, will own directly or
indirectly (other than through a pooled investment vehicle that is not
controlled by such person), any interest in a Sub-Adviser, except for
(a) ownership of interests in the

Manager or the Adviser or any entity that controls, is controlled by,
or is under common control with the Manager or the Adviser, or (b)
ownership of less than 1% of the outstanding securities of any class of
equity or debt of any publicly traded company that is either a Sub-
Adviser or an entity that controls, is controlled by, or is under
common control with a Sub-Adviser.
    12. Each Fund will disclose in its registration statement the
Aggregate Fee Disclosure.
    13. In the event that the Commission adopts a rule under the Act
providing substantially similar relief to that in the order requested
in the application, the requested order will expire on the effective
date of that rule.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-23483 Filed 9-21-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 143 (Friday, July 24, 2020)]
[Notices]
[Pages 44907-44908]
[FR Doc No: 2020-16062]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2019-N-5969]

John Seil Lee: Final Debarment Order

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is issuing an order
under the Federal Food, Drug, and Cosmetic Act (FD&C Act) debarring
John Seil Lee for a period of 10 years from importing or offering for
import any drug into the United States. FDA bases this order on a
finding that Mr. Lee was convicted of one felony count under Federal
law for conspiracy to import merchandise contrary to law and to defraud
the United States and of one felony count under Federal law for
importing merchandise contrary to law. The factual basis supporting
both of Mr. Lee's convictions, as described below, is conduct relating
to the importation into the United States of a drug or controlled
substance. Mr. Lee was given notice of the proposed debarment and was
given an opportunity to request a hearing to show why he should not be
debarred. As of March 15, 2020 (30 days after receipt of the notice),
Mr. Lee had not responded. Mr. Lee's failure to respond and request a
hearing constitutes a waiver of his right to a hearing concerning this
matter.

DATES: This order is applicable July 24, 2020.

ADDRESSES: Submit applications for termination of debarment to the
Dockets Management Staff, Food and Drug Administration, 5630 Fishers
Lane, Room 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Jaime Espinosa (ELEM-4029), Division
of Enforcement, Office of Strategic Planning and Operational Policy,
Office of Regulatory Affairs, Food and Drug Administration, 12420
Parklawn Dr., Rockville, MD 20857,<PHONE_NUMBER>, or at
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    Section 306(b)(1)(D) of the FD&C Act (21 U.S.C. 335a(b)(1)(D))
permits debarment of an individual from importing or offering for
import any drug into the United States if FDA finds, as required by
section 306(b)(3)(C) of the FD&C Act, that the individual has been
convicted of a felony for conduct relating to the importation into the
United States of any drug or controlled substance.
    On August 20, 2019, Mr. Lee was convicted, as defined in section
306(l)(1)(A) of the FD&C Act, in the U.S. District Court for the
Central District of California, when the court accepted his plea of
guilty and entered judgment against him for the felony offenses of
conspiracy to commit offense or to defraud the United States in
violation of 18 U.S.C. 371 and smuggling goods into

the United States; principals in violation of 18 U.S.C. 545 and 2(b).
    FDA's finding that debarment is appropriate is based on the felony
convictions referenced herein. The factual basis for these convictions
is as follows: As contained in count 1 of the information in Mr. Lee's
case, filed on January 7, 2019, to which Mr. Lee pleaded guilty,
between 2011 and 2017 Mr. Lee owned, controlled, and operated four
businesses for the purpose of manufacturing and distributing male
sexual enhancement pills that he marketed as herbal remedies but that
contained undisclosed tadalafil, a prescription drug product. Until
February 22, 2017, Mr. Lee conspired with others to import bulk
tadalafil, with labeling that was false and misleading, from suppliers
in China contrary to law. Mr. Lee had his Chinese suppliers ship the
bulk tadalafil under false labeling to commercial mailboxes that he
controlled in New Jersey and Pennsylvania. Mr. Lee then had the
commercial mailbox companies that received the Chinese shipment
repackage the tadalafil shipments and forward them to mailboxes Mr. Lee
controlled in California. After receiving the bulk tadalafil in
California, Mr. Lee caused it to be manufactured into at least 5 and a
half million pills that he sold to distributors across the United
States. The pills Mr. Lee manufactured contained levels of tadalafil
significantly higher than the levels in FDA-approved prescription drugs
such as Cialis. Mr. Lee sold at least $11 million worth of these pills
to distributors in packages with labeling that did not disclose the
presence of tadalafil. When, as on a number of occasions, FDA announced
that a brand of pills sold by one of Mr. Lee companies contained
undeclared tadalafil, he would establish a new company and/or begin
manufacturing identical pills with different brand names in an effort
to evade FDA regulators.
    As contained in count 2 of the information in Mr. Lee's case, to
which Mr. Lee pleaded guilty, on or about February 9, 2017, Mr. Lee
fraudulently and knowingly, and contrary to law, imported two parcels
of the bulk drug tadalafil with labeling that was false and misleading
as to the parcels' contents, labels that did not contain accurate
statements of the quantity of the contents in terms of weight, measure,
and numerical count, and labeling that did not bear adequate directions
for use, contrary to sections 301(a) and 502(a)(1), (b), and (f) of the
FD&C Act (21 U.S.C. 331(a), 352(a)(1), (b), and (f)).
    As a result of these convictions, FDA sent Mr. Lee, by certified
mail on February 10, 2020, a notice proposing to debar him for a 10-
year period from importing or offering for import any drug into the
United States. The proposal was based on a finding under section
306(b)(3)(C) of the FD&C Act that Mr. Lee's felony conviction for one
felony count under Federal law for conspiracy to import merchandise
contrary to law and to defraud the United States was for conduct
relating to the importation into the United States of any drug or
controlled substance because he conspired to illegally import bulk
tadalafil and repackage it into pills that he resold across the United
States. The proposal was also based on a finding under section
306(b)(3)(C) of the FD&C Act that Mr. Lee's felony conviction for one
felony count under Federal law for importing merchandise contrary to
law was for conduct relating to the importation into the United States
of any drug or controlled substance because he also fraudulently and
knowingly imported two parcels of bulk drug tadalafil into the United
States contrary to sections 301(a) and 502(a)(1), (b), and (f) of the
FD&C Act.
    In proposing a debarment period, FDA weighed the considerations set
forth in section 306(c)(3) of the FD&C Act that it considered
applicable to Mr. Lee's offenses, and concluded that these felony
offenses warrant the imposition of a 10-year period of debarment.
    The proposal informed Mr. Lee of the proposed debarment and offered
Mr. Lee an opportunity to request a hearing, providing him 30 days from
the date of receipt of the letter in which to file the request, and
advised him that failure to request a hearing constituted a waiver of
the opportunity for a hearing and of any contentions concerning this
action. Mr. Lee received the proposal and notice of opportunity for a
hearing on February 14, 2020. Mr. Lee failed to request a hearing
within the timeframe prescribed by regulation and has, therefore,
waived his opportunity for a hearing and waived any contentions
concerning his debarment (21 CFR part 12).

II. Findings and Order

    Therefore, the Assistant Commissioner, Office of Human and Animal
Food Operations, under section 306(b)(3)(C) of the FD&C Act, under
authority delegated to the Assistant Commissioner, finds that Mr. John
Seil Lee has been convicted of two felony counts under Federal law for
conduct relating to the importation into the United States of any drug
or controlled substance. FDA finds that each offense should be accorded
a debarment period of 5 years as provided by section 306(c)(2)(A)(iii)
of the FD&C Act. Under section 306(c)(2)(A) of the FD&C Act, in the
case of a person debarred for multiple offenses, FDA may determine
whether the periods of debarment shall run concurrently or
consecutively. FDA has concluded that the 5-year period of debarment
for each of the two offenses for which Mr. Lee was convicted will run
consecutively, resulting in a total debarment period of 10 years.
    As a result of the foregoing finding, Mr. Lee is debarred for a
period of 10 years from importing or offering for import any drug into
the United States, effective (see DATES). Pursuant to section 301(cc)
of the FD&C Act, the importing or offering for import into the United
States of any drug or controlled substance by, with the assistance of,
or at the direction of Mr. Lee is a prohibited act.
    Any application by Mr. Lee for termination of debarment under
section 306(d)(1) of the FD&C Act should be identified with Docket No.
FDA-2019-N-5969 and sent to the Dockets Management Staff (see
ADDRESSSES). The public availability of information in these
submissions is governed by 21 CFR 10.20(j).
    Publicly available submissions will be placed in the docket and
will be viewable at http://www.regulations.gov or at the Dockets
Management Staff (see ADDRESSES) between 9 a.m. and 4 p.m., Monday
through Friday.

    Dated: July 17, 2020.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2020-16062 Filed 7-23-20; 8:45 am]
BILLING CODE 4164-01-P